Revised Job Impact Statement 6 NYCRR Parts 248 and 200
1. Nature of Impact:
We are revising 6 NYCRR Part 248, "Use of Ultra Low Sulfur Diesel Fuel and Best Available Retrofit Technology for Heavy Duty Vehicles" (Part 248). This rule will continue to potentially impact job and employment opportunities, both negatively and positively.
2. Categories and numbers affected:
The revised regulation requires that covered vehicles have best available retrofit technology (BART) installed on or before December 31, 2013. This proposed revision will eliminate subcontractors from regulatory applicability.
BART refers to retrofit equipment, verified by EPA or the California Air Resources Board (CARB), including diesel particulate filters (DPFs), diesel oxidation catalysts (DOCs), or other devices that reduce particulate matter contained in diesel exhaust. In lieu of retrofitting HDVs, regulated entities and contractors have the option to comply with BART by replacing a HDV engine/vehicle with either a MY 2007 heavy duty vehicle (or subsequent model year vehicle), or replace with an alternative fuel vehicle, or retire the vehicle/engine. Other BART compliance options include obtaining a useful life waiver or a BART device waiver for the vehicle. Contractors may include affected small businesses and local governments. We are proposing to revise the definition "on behalf of" to read: "all heavy duty vehicles used to perform regulated entity work by a prime contractor. Those vehicles include, but are not limited to, heavy duty vehicles owned, operated or leased by a prime contractor." The regulatory requirements will continue to affect several categories of businesses and employment including BART device (DPF and DOC) manufacturers, device substrate manufacturers, authorized installers/distributors of verified BART devices, new engine/vehicle (post model year 2006) manufacturers, and contractors of state agencies/public authorities.
This rulemaking maintains existing requirements as to prime contractors (i.e., prime contractors like state government entities, would remain subject to both the ULSD requirements effective February 12, 2007 and the BART requirements) and thus is not expected to have any negative impacts on such prime contractors. It is conceivable that prime contractors may elect to reduce the number of their employees to cover the costs of purchasing/installing BART devices on their affected HDVs. As noted in the 2009 rulemaking, the population of prime contractor vehicles affected by the proposed amended regulation is unknown. As with that rulemaking, the Department remains unable to provide a specific estimate of the number of contract solicitations or awards that will occur because of the difficulty in predicting the number of affected prime contractors at this time. The Department expects the cost impact to those affected contractors to be similar to the impacts on government entities which, in turn, may result in somewhat higher bids proposed by prime contractors on state and public authority contract work to compensate for the increased cost to comply with the ULSD and BART requirements on their affected vehicles. But such increased costs will primarily occur only until December 31, 2013, when all affected HDVs are required to be BART compliant. Costs associated with regulatory compliance may preclude or prevent some businesses from bidding on state agency/public authority contracts. Again, there would be no reason to expect these impacts to change from those associated with the existing regulation.
As noted in the 2009 rulemaking, businesses and employment expected to continue to be positively impacted as a result of the existing regulation include BART device manufacturers, device substrate manufacturers, authorized installers/ distributors of verified BART devices, new engine/vehicle manufacturers and alternative fuel engine/vehicle manufacturers. However, these positive impacts may be reduced by this rulemaking. Both the addition of useful life waivers and the subtraction of subcontractors from applicability will reduce the number of vehicles required to retrofit. Businesses that may be created or continue to expand include those that manufacture, install, repair, or clean retrofit technologies. Again, since the proposed revised regulation deletes subcontractors from applicability, the degree to which these businesses are positively impacted may be slightly less appreciable as there is the potential for less retrofits which could negatively impact those BART device manufacturers and vendors.
The rulemaking proposes to remove trucks owned or operated by subcontractors from applicability and therefore should have a positive direct impact on subcontractors.
3. Regions of adverse impact:
4. Minimizing adverse impact:
DERA, including recent amendments, provides for waivers related to BART devices. In addition to the previously permitted waiver where BART is not applicable or available for a specific engine application, Part 248 is being revised to allow the department to issue a useful life waiver for a specific vehicle/engine upon request in lieu of retrofitting a vehicle pursuant to amended ECL 19-0323. However, the applicant must certify that the vehicle will be taken out of service in New York State by December 31, 2013. Waivers may be issued by the department only if specific regulatory criteria are met. This will reduce the number of vehicles required to be retrofit.
5. Self employment opportunities:
Entrepreneurial opportunities will continue to exist for those willing to become authorized representatives of BART device manufacturers in order to provide technical support for and any required maintenance of the device.