All too often, it seems like common sense is not nearly common enough. This is particularly true when new regulations are promulgated that create increasingly impossible standards for businesses struggling under the weight of a sluggish economy. Surprisingly, this is not a commentary about such legislation.

Instead, H.R. 1633, the Farm Dust Regulation Prevention Act, is a rare, pragmatic bill. Introduced by Reps. Kristi Noem (R-S.D.) and Leonard Boswell (D-Iowa), it protects aggregate producers, farmers, and other rural businesses from the uncertainty surrounding current and future regulation of rural dust.

“H.R. 1633 achieves two important goals: regulatory certainty in the short term and common sense for rural America in the long term. The bill maintains the current coarse particulate matter standard for one year — a position Lisa Jackson has embraced with her plans to propose maintaining the standard — and it offers regulatory relief to rural America by recognizing that states and local communities are better equipped to monitor and control farm dust,” House Energy and Commerce Committee Chair Rep. Fred Upton (R-Mich.) said in a press release. “EPA would no longer be in the business of regulating rural dust, except in cases where it is not already being regulated and the benefits of EPA regulation outweigh the costs.”

While EPA Administrator Lisa Jackson has said she is prepared to retain the current PM10 standard without revision, H.R. 1633 provides additional protection against further regulatory burden. And, it’s not surprising that many want that protection. More than 185 organizations have opposed changes in the dust regulations, and House Minority Leader Eric Cantor (R-Va.) named a more stringent dust standard as one of the administration’s top 10 job-destroying regulations.

In late October, Pete Lien, president of Pete Lien and Sons, Inc., testified on behalf of the National Stone, Sand & Gravel Association and cautioned committee members about the costs needed to comply with further regulation. “Federal regulatory decision-makers must wield their authority with care, and should base regulatory decisions on published, peer-reviewed assessments of risk,” he said. “We are wary of rules that create more stringent or even unattainable standards without sufficient statistical, scientific, or analytical justification.”

I applaud the House for listening to Lien and advancing a bill that epitomizes what Upton called “government that works.” Now, let’s hope that the Senate has the common sense to pass it, and the President has the wisdom to sign it.

3 Things I Learned from this Issue

1. A certification creates an incentive for operators to use sustainable practices, page 25.

2. Hydraulic leaks aren’t as benign as many think, page 38.

3. To avoid citation, equipment must not only be maintained, but preserved from decline, page 46.

The next time you attend a social event, pay attention to the conversations taking place around the room. Sometimes, one or two outgoing people dominate the discussion. These are often folks who enjoy not only the courage of their convictions, but also a spotlight in which to showcase them. At a good party, these people engage others on a topic, and a broad conversation takes place. Conversely, an endless, one-sided monologue can send guests running for the door.

This is the scenario that comes to mind when I think of the current conversation surrounding transportation funding. In September, President Obama introduced the American Jobs Act, which has largely stalled in Congress. In early November, Speaker of the House John Boehner said that House Republicans will introduce a multiyear surface transportation bill before the end of the year. And, a few days after Boehner’s announcement, the Senate Environment & Public Works Committee unanimously passed a two-year transportation bill, Moving Ahead for Progress in the 21st Century (MAP-21).

So the President, the House, and the Senate are all talking about the same issue, adequate funding for our nation’s infrastructure. The question is: are any of them listening to one another? And if so, how soon will they stop talking and start acting?

In terms of the President’s initiative, it very closely mirrors his original stimulus bill. While the $50 billion in transportation funding sounds great, the breakdown puts a little over half of that toward highways, with significant portions allocated to mass transit and high-speed rail. At the same time, the bill includes nearly $400 billion in other spending.

Boehner is pitching an energy and infrastructure bill. “Let’s link the next bill to an expansion of American-made energy production,” he wrote on a Sept. 15 entry to his blog (see www.speaker.gov/Blog/). According to his comments, the new funding channel would allow for funding levels at or above current spending.

On the Senate side, S. 1813, or MAP-21, would maintain current funding levels. It reduces the core highway programs from seven to five, consolidates the 90 existing federal programs to less than 30, and — significantly — eliminates earmarks. It also focuses on expedited project delivery.

Looking at all three of these options: many good ideas are being brought forward. The President recognizes the need to put the construction industry back to work. Boehner is looking at new funding mechanisms. The Senate is looking to cut fat and streamline time tables.

The right elements are there. Now, the folks at this transportation party need to start talking to one another and, equally importantly, listening. Now is not the time for allegations of class warfare or Congress ignoring public opinion. It’s time for our elected officials to do what they were elected to do and enact responsible legislation.

3 things I learned from this issue:

1. A cellular gateway allows for high-speed data retrieval for remote monitoring of loading and ticketing, page 25.

2. 3D laser technology can quickly create detailed stockpile profiles, page 40.

3. Bill Langer retired from the USGS, but continues his conversations in Carved in Stone, page 52.

In January 2012, the Environmental Protection Agency (EPA) is expected to release a proposed rule that would legitimize its “Draft Guidance on Identifying Waters Protected by the Clean Water Act (CWA).” In case you haven’t read — or contributed — comments on this guidance, it goes well beyond the EPA’s stated goal of providing “additional clarification” with regards to its definition of “waters of the United States.”

The issue is one that merits scrutiny from aggregate operators, as it could have a significant economic impact. In fact, when writing about the costs associated with permitting for CWA compliance in Rapanos v. United States, Supreme Court Justice Antonin Scalia said that “the average applicant for an individual permit spends 788 days and $271,596 in completing the process, and the average applicant for a nationwide permit spends 313 days and $28,915, not counting costs of mitigation or design changes.”

A clear definition of “waters of the United States” is needed. The Rapanos opinion is a fractured one. The plurality outlined a two-part test that indicates jurisdiction applies to a “relatively permanent body of water connected to traditional interstate navigable water” and that the wetland “has a continuous surface connection with that water, making it difficult to determine where the ‘water’ ends and the ‘wetlands’ begin.” In Justice Kennedy’s concurring opinion, he suggested a single test. It requires that a wetland possess a “significant nexus” to traditional navigable water.

This led to significant confusion and inconsistent rulings with regard to what is and what is not a water of the United States. In comments submitted on behalf of the National Stone, Sand & Gravel Association, Holland and Knight’s Larry Liebesman points to the similarities between this ambiguous definition and that of “discharge of dredged material,” the catchphrase surrounding the Tulloch rules. Through Tulloch, the EPA and U.S. Army Corps of Engineers admitted that the definition required formal rulemaking. Equally importantly, such a formal process allows for public transparency and the frank discourse that prevents bad rules from being promulgated.

At this point, the EPA guidance has all the hallmarks of a bad rule. It would include areas that have only seasonal flow. It exceeds, rather than clarifies, the Supreme Court’s mixed definitions of waters of the United States. It allows the Corps to use desktop studies and data rather than site-specific documentation when determining jurisdiction.

With aggregate production down nearly 40 percent over the last five years, the industry does not need the EPA to codify an overly broad definition with costs that far exceed its benefits.

3 Things I Learned from this Issue

1. Making the right product is more important than making more product, page 10.

2. Non-profits can provide volunteers and investors for reclamation projects, page 17.

3. Using the narrowest possible shoe will extend the life of your dozer undercarriage, page 22.

By Therese Dunphy

If the industry were giving government entities a grade card this fall, it would be an interestingly mixed report. Consider important issues facing our government officials and determine how you would rate them.

In terms of transportation funding, Congress has been unable to do more than pass stop-gap measures, despite urging from President Obama for long-term bill. While Republicans are finally beginning to admit that additional funding is necessary, it appears that this project is going to be turned in late — two and a half years late. (Sounds like a CBS sitcom.) Grade: C. Sadly, late work seems to be the average.

The American Jobs Act could help fund construction projects as an interim measure, but it remains to be seen if all the folks involved can demonstrate qualities such as character and an ability to work together to pass this seemingly bi-partisan measure. These students seem to be more interested in fighting between players than winning the game. (See AggBeat, page 4.) Grade: Incomplete.

The Mine Safety and Health Administration (MSHA) has circumvented public notice and comment with regards to requirements that apply to continuity and resistance testing of cables and power cords. The agency is supposed to develop regulations using sections 101 and 508 of the Mine Act, which require public notice and allow for public comment before a final rule is developed. But MSHA may have found a nifty loophole as it uses Program Policy Letters to change regulatory requirements, then incorporates those changes into subsequent Program Policy Manuals. (See Rock Law, page 36). Grade: D.

The Federal Mine Safety and Health Review Commission has reviewed MSHA’s actions on this matter twice, with differing opinions. In 1994, Administrative Law Judge Hodgdon made the right call and ordered the Secretary to provide notice and comment for rulemaking, but she opted not to do so. Earlier this year, Administrative Law Judge Paez described the change as an interpretive matter and suggested that the time that passed between the two cases provided the operator with notice of the intended rule change. This is an alarming precedent that flouts the intent of the Mine Act. Grade: F.

In today’s business environment, those who don’t meet — or exceed — their performance expectations often find themselves unemployed. As November elections near, consider the performance of your government officials. If they aren’t doing the job we hired them to do, give them a failing grade card and their walking papers.

3 things I learned from this issue:

1. Blasting can be treated as the primary crushing with mechanical crushing serving as a conditioner, page 21.

2. On average, higher levels of green house gases are released by transporting aggregates than producing them, page 26.

3. If a hydraulic hammer’s hose jerks violently, it may indicate low nitrogen pressure, page 30.

By Therese Dunphy

Political cowardice. It seems to be the only logical conclusion to the question of why, two years after the expiration of SAFETEA-LU, Congress has yet to pass a new long-term transportation bill. While there have been considerable challenges, none are new or surprising. Clearly, fuel taxes impacted by increasing CAFE standards don’t offer a sustainable funding mechanism.

What does seem shocking is that elected officials who purport to want economic improvement fail to act on an issue that is such an economic drain. “Failure to Act: The Economic Impact of Current Investment Trends in Surface Transportation,” a new report from the American Society of Civil Engineers, notes that deficiencies in America’s surface transportation systems cost households and businesses nearly $130 billion in 2010.

And as the nation continues to underinvest, it falls further behind. Consider that China is spending 9 percent of its GDP on transportation infrastructure. Canada spends 4 percent of its GDP on transportation infrastructure. The United States? A mere 1.7 percent. As former Gov. Rendell (D-Pa.) pointed out in an Aug. 11 Wall Street Journal letter to the editor, the United States was ranked number one by the World Economic Forum in terms of infrastructure economic competiveness as recently as 2005. Today, it is ranked 15th.

In the meantime, The Council of State Governments reports that more than 150,000 miles (45 percent) of federal highways and major roads in the United States are not in good condition; more than 71,000 of the nation’s bridges are structurally deficient, with an additional 78,000 that are functionally obsolete; and more than 20 states are expected to reduce transportation investments because of lack of action on federal transportation reauthorization.

John Cooper, director of the Alabama Department of Transportation, told The Huntsville Times that the House transportation bill — which authorizes $35 billion a year, down from the current $50 billion-a-year level authorized this year — could spell a 20-percent cut in its $1 billion annual budget. “If we lose $200 million out of $1 billion that we have some discretion over, it will kill our capacity projects because it will take every penny we have to maintain the roads we have,” Cooper said.

As Congress’ so-called Super Committee works through its plans to reduce $1.5 trillion in debt over the next decade, it’s important we should remind its members that infrastructure spending is an investment, not an expense. Maybe we should arrange a cross-country bus tour for the panel’s 12 members. A few days of traveling America’s crumbling highways and structurally deficient bridges might convince them that this is one area of government spending that can’t afford any further reductions.

3 Things I Learned from this Issue

1. A surfactant foaming agent adheres to material through the processing stage and into the stockpiles, continuing to control dust, page 14.

2. If a motor has same frame size, horsepower, and rpm, it can be used in multiple pieces of equipment, page 19.

3. If part of a dredge hull is wearing thin, its life can be extended by welding a scab plate over the thin spot, page 24.

By Therese Dunphy

From golf courses to parks to wetlands to housing developments, many aggregate operators have found a second life for their properties once mining is complete. And it’s no surprise; many architects and developers are drawn to the dramatic visual vistas that come from former quarries. The most ambitious project I’ve seen to date, however, is the design of the Intercontinental’s Songjiang Hotel.

Designed for the site of an abandoned quarry near Shanghai, China’s “Quarry Hotel” is intended to sit below ground level, butting up against the bottom of the quarry. The design of the 400-bed resort is two levels higher than the 100-meter-deep quarry. Atkins Design Studio — architects for projects such as the Bahrain World Trade Center and Tianjin’s Pile of Boxes — produced the design as part of an international competition.

Waterfalls, underwater aquariums, and green areas are incorporated into the design to mirror the existing face of the quarry. A green roof and geothermal energy also bump the building’s sustainability quotient, while an extreme sports center with activities such as rock climbing and bungee jumping will be cantilevered over the quarry.

As the hotel market continues to look for unique properties to attract jaded travelers, this hotel looks to be a standout as a unique destination. Urban quarry operators should file this one in the idea folder as another option to leverage the post-mining value of their land, as well as a reason why communities should allow the development of such unique sites.

3 Things I Learned from this Issue

1. When setting up a drill, orient the machine so the wind carries dust away from its cooler intakes, page 22.

2. Zoning is more difficult than permitting because it involves more subjective responses from committee members, page 17.

3. Track-mounted crushers can produce 3,000 tons per hour, page 26.

By Therese Dunphy

Last month, our neighbors to the north brought the concept of green aggregates one step closer to the United States. Holcim (Canada) Inc. and Environmental Defence jointly established Socially and Environmentally Responsible Aggregates (SERA), a not-for-profit organization charged with developing rigorous, but voluntary, certification standards for responsibly sourced sand, stone, and gravel.

“We see this as shifting away from the combative nature of where the industry is with various stakeholders,” Bill Galloway, senior vice president at Holcim (Canada) Inc., told The Globe and Mail. By locating aggregate operations in areas that minimize environmental harm and using operating practices that avoid impacting neighbors, Galloway says that aggregate production can be green.

Along with announcing the formation of SERA, the two groups released draft standards for green certification. These include items such as the selection of greenfield sites that don’t include environmentally sensitive lands, creation of wildlife habitats, reduction of greenhouse gas emissions, greater use of recycled materials, attention to water quality issues, and involvement of local communities.

The draft standards are the result of two years of discussions between Holcim and Environmental Defence. Rick Smith, the activist group’s executive director, told the newspaper that operators receiving such a green stamp of approval would face less opposition from groups such as his own when seeking new permits. Typically, his organization is involved in three to six fights against aggregates operation at any given time. “A great amount of that sting would be taken out of this issue if this standard were broadly adopted by the industry,” Smith asserts.

To get the venture off to a strong start, SERA secured the services of BRE Global, the same group that helped develop the BES 6001 Framework Standard for the Responsible Sourcing of Construction Products in the United Kingdom. That certification was the first of its kind to offer third-party certification of a wide range of construction materials and products. Many U.K. operators — including Aggregate Industries, Cemex, Hanson, Lafarge, and Tarmac — have had their operations certified through BES 6001.

The idea is similar to one successfully pioneered by the lumber industry. Certainly, the fact that traditionally combative parties were able to collaborate on this process is a positive sign. Perhaps, it’s an idea that should cross the border, eh?

3 things I learned from this issue:

1. Loader scales can be used at the face to track blast yield, page 17.

2. A crusher liner can wear thin — or through — in some areas before hitting the halfway point of its predicted lifecycle, page 22.

3. Coyotes near a mine site can trigger an imminent danger order (I’m not kidding), page 30.

Don’t Undermine Safety

By Therese Dunphy

The winds of change are blowing through the Mine Safety and Health Administration’s (MSHA) Small Mine Office (SMO). According to Joe Main, assistant secretary of labor, mine safety and health, the office is being decentralized with compliance assistance shifting from a national office to regional MSHA offices.

On its surface, the idea makes sense: take training closer to the people who need it. However, many operators are worried about having the people they rely on for training sitting across the aisle from those responsible for issuing citations about their shortcomings (i.e., the very items for which they may seek compliance assistance). If fear of reprisal keeps operators who need help from asking for it, the reorganization will have the opposite of the desired effect. The success of this initiative is particularly important during a time when federal budget cuts continue to impact operator training. MSHA is not conducting its regular noise and dust training workshops, and state training grants are not being fully funded. Historically, these have been two mainstays in the agency’s regional training program.

In the Administration section of the Mine Act, training and education provisions clearly indicate that the Secretary “shall expand programs for the education and training of operators and agents there of, and miners in… the recognition, avoidance, and prevention of accidents or unsafe or unhealthful working conditions in coal and other mines.” The Mine Act also notes, “The Secretary shall, to the greatest extent possible, provide technical assistance to operators in meeting the requirements of this Act and in further improving the health and safety conditions and practices in coal or other mines.”

To date, the SMO budget accounts for about half a percent of MSHA’s overall budget. At the same time, MSHA’s own data indicates the fatality rate for mines assisted by the SMO is nearly four times lower than the industry average for small mines. The agency’s investment in the SMO is one that has paid an enormous return on investment. Whether or not the agency considers them to be valid, operator concerns must be quickly addressed and mitigated. Otherwise, an atmosphere of fear could undermine a program that has significantly contributed to the safety of the nation’s aggregate operations.

3 Things I Learned From This Issus

1. Nearly a third of 2010 fatalities in metal/non-metal mines involved mobile equipment, page 19.

2. A minimum safe distance from a highwall is the same number of feet from the face as the face is high, page 25.

3. When designing a plant, consider travel paths in relation to conveyors to improve safety, page 21.

By Therese Dunphy

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty,” –Winston Churchill

Throughout the last several years, many aggregate producers may have been pessimists rather than optimists, but the tide may be turning on the age old question of whether the glass is half full or half empty.

A new quarterly study from Wells Fargo Equipment Finance, Inc. shows a two-year growth trend in the optimism quotient of those participating in its Construction Industry Survey. In 2009, the index dropped to a record low of 42 and rebounded to 66 in 2010. For the first quarter of 2011, respondents expressed more favorable sentiments pushing the index to 96, a level not seen since before 2007.

While Wells Fargo depicts these results as cautiously optimistic, it’s worth noting that 37 percent of respondents project increased local non-residential construction activity in 2011 compared to 2010. At the other end of the spectrum, only 14.5 percent expect a decrease in this category. In terms of residential construction activity in 2011 compared to 2010, 28.4 percent anticipate an increase and 16.4 percent forecast a decrease. In both categories, respondents overwhelmingly look for construction activity to improve in the second quarter of 2012 or later.

Respondents also expect equipment sales to be brisk, with nearly two thirds of distributors who say sales of new equipment will rise and more than 54 percent of distributors who call for used equipment sales to increase.

For operators hesitating to sign a purchase order, those predictions may seem wildly optimistic, but they aren’t without merit. The report notes that Volvo CE’s unit sales rose by 70 percent in 2010 compared to 2009. John Deere is projecting equipment sales to be up 18 to 20 percent for the fiscal year. Atlas Copco’s CMT division reported operating profits that were up 51 percent in 2010. And, Cat announced a 202-percent increase in profits between 2010 and 2009.

If these measures hold, operators should re-examine what opportunities the future holds.

3 Things I learned from this issue

1. The grinding action of a rod mill creates a manufactured sand that closely resembles river sand.

2. Aggregate producers should consider selling virgin aggregate to municipalities and taking stockpiled RAP off their hands. High-quality unused RAP is worth about $40 per ton.

3. When quartz is struck or rubbed together, it lights up. Cool.

By Therese Dunphy

Garth Brooks, Lady Gaga, and Britney Spears all performed while the construction industry flocked to Las Vegas for ConExpo-Con/Agg 2011, but the most entertaining show may have been Steve Forbes’ keynote address during the National Stone, Sand & Gravel Association’s general session on March 24.

Forbes, the CEO of Forbes, Inc. and editor-in-chief of Forbes magazine, offered keen insights into the economic and political issues at play in the U.S. and world markets and suggested strategies on how to influence business conditions. “You’re going into some serious headwinds,” Forbes said, adding that he doesn’t believe that Congress will pass an increase to the fuel tax. Instead, he offered a four-pronged approach for dialogue between operators and Congress.

1. Push for a dedicated Highway Trust Fund. Make sure it serves the purpose for which it was intended and nothing else.

2. Tell Congress that the industry is open to public-private partnerships. Although financing of such projects may be a challenge in the current economy, Forbes predicted improved market conditions in the next 24 months.

3. Make sure Congress knows that we are against earmarks. In the light of an enormous federal deficit, Congress needs to know that we don’t want wasteful spending; we want transparent and responsible spending.

4. Start educating new members of Congress on the industry’s role in America’s health, and draw the correlation between transportation and the overall economy. “We’re in a new era,” Forbes advised. “Help them understand what you do. Even though things are bad, we need infrastructure. There is a word called investment, and when it’s used properly, it’s a powerful tool.”

Forbes advocated a two-year bill that would allow time to educate Congress as well as for the economy to recover before passing a long-term funding bill. While that might be a hard pill to swallow, remember that 680 days of extensions were enacted before the passage of SAFETEA-LU, and that bill expired Sept. 30, 2009.

While President Obama has modeled his economic policy after FDR, Forbes pointed to a more recent president as having the right economic blueprint — Ronald Reagan. From the post-World War II era until the rapid inflation of the late ’70s, the U.S. economy grew 3.3 percent a year, he said. When Reagan took office, that growth had come to a halt. Unemployment exceeded current levels, the stock market was down 70 percent, and mortgage rates were 18 percent. Reagan instituted tax cuts and deregulation policies that restored economic growth.

“We have the power to recover from setbacks and surge ahead,” Forbes said. “Get a few things right and the United States will again be the innovator and leader in the world.”

Forbes’ advice is sound. It may not be the road operators hoped to travel, but it may ultimately lead to the right destination.