diff --git a/vp8/encoder/onyx_if.c b/vp8/encoder/onyx_if.c
index a51f754a3..c654eb394 100644
--- a/vp8/encoder/onyx_if.c
+++ b/vp8/encoder/onyx_if.c
@@ -4960,20 +4960,7 @@ int vp8_get_compressed_data(VP8_PTR ptr, unsigned int *frame_flags, unsigned lon
             {
                 if (cpi->source_encode_index ==  cpi->last_alt_ref_sei)
                 {
-#if VP8_TEMPORAL_ALT_REF
-
-                    if (cpi->oxcf.arnr_max_frames == 0)
-                    {
-                        cpi->is_src_frame_alt_ref = 1; // copy alt ref
-                    }
-                    else
-                    {
-                        cpi->is_src_frame_alt_ref = 0;
-                    }
-
-#else
                     cpi->is_src_frame_alt_ref = 1;
-#endif
                     cpi->last_alt_ref_sei    = -1;
                 }
                 else
diff --git a/vp8/encoder/ratectrl.c b/vp8/encoder/ratectrl.c
index b309d5364..582c617ef 100644
--- a/vp8/encoder/ratectrl.c
+++ b/vp8/encoder/ratectrl.c
@@ -1120,10 +1120,12 @@ void vp8_calc_pframe_target_size(VP8_COMP *cpi)
 
             }
             // If there is an active ARF at this location use the minimum
-            // bits on this frame unless it was a contructed arf.
-            else if (cpi->oxcf.arnr_max_frames == 0)
+            // bits on this frame even if it is a contructed arf.
+            // The active maximum quantizer insures that an appropriate
+            // number of bits will be spent if needed for contstructed ARFs.
+            else
             {
-                cpi->this_frame_target = 0;           // Minimial spend on gf that is replacing an arf
+                cpi->this_frame_target = 0;
             }
 
             cpi->current_gf_interval = cpi->frames_till_gf_update_due;