The EPA’s Tier 4 Implementation for Emission Reduction and Its Financial Impact on the Construction Industry

emissions reductionWith the Environmental Protection Agency’s Tier 4 emissions reduction standards firmly in place, builders and contractors in the construction industry will see a greater financial impact from Tier 4 implementation.

The EPA’s Tier 4 standards establish criteria for emissions by diesel-powered engines on construction equipment, ranging from small compressors to massive, earth-moving equipment.

In most cases, companies in the construction industry will see cost increases of 10 to 25 percent for Tier 4 equipment, according to Construction Global. Required improvements to diesel engines will account for most of the cost.

Increased maintenance costs for the higher-efficiency engines is also likely, especially since the equipment will require greater attention to maintenance, fluid replacement, filtering and other processes to maintain the Tier 4 emission standards.

Construction companies may be facing an unpleasant increase in basic costs, but there are some areas where Tier 4 equipment can reduce the expense of operating this type of machinery.

  • Since Tier 4 engines are designed for greater fuel efficiency and reduced environmental emissions, many of them can be expected to use up to 4 percent less fuel compared to the previous generation of Tier 4 Interim engines. Fuel savings could be even higher when compared to using lower-tier, less efficient equipment.
  • Companies can better manage costs by renting more Tier 4 equipment instead of purchasing it. Before undertaking a project, consult the project requirements to see if Tier 4 diesel equipment must be used. If so, plan on renting that particular equipment.
  • For companies that buy Tier 4 equipment, plan ahead to maintain the equipment’s resale value. Domestic purchasers may be more willing to buy used Tier 4 equipment. The engines can be reprogrammed to lower tier levels to make them more salable in overseas markets.
  • Make sure the appropriate company employees are properly trained on how to operate, repair and maintain Tier 4 engines.

Construction Monitor supplies the construction industry with timely and accurate building permit data, including information on Tier 4 implementation.

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