The U.S. Department of Transportation reported Wednesday that Highway Trust Fund revenue fell by $3 billion in fiscal year 2008.  Americans drove 90 billion fewer miles, or 4.4 percent less, over the period September 2007 to September 2008.  As a result, the Highway Trust Fund collected only $31 billion in revenue, compared to $34 billion collected the previous year, while federal transportation spending increased by $2 billion.  September 2008 marked the 11th straight month of fewer miles driven.

AGC supported legislation enacted in September to transfer $8 billion from the General Fund of the U.S. Treasury into the Highway Trust Fund to prevent a shortfall of receipts and prevent a reduction in states’ federal highway funding through the expiration of SAFETEA-LU on September 30, 2009.  Whether this fix will be sufficient will depend largely on driving trends over the next several months.

Although Congress has spent the past several days of the lame duck session considering a rescue package for the automotive industry, there is continued discussion about enacting an economic stimulus package with substantial investment in infrastructure as early as January 2009. House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry Reid (D-Nev.) have both expressed a desire to pass a stimulus package. President-elect Barack Obama said he supports a stimulus measure with substantial funding for infrastructure and that if one is not passed before Congress adjourns, it would be the first issue he tackles after his inauguration.

AGC will continue to press Members of Congress in Washington to enact an economic recovery package with infrastructure investment as soon as possible to prevent further job losses in the industry and to create additional job opportunities for contractors and their workers. Construction has always been an engine of economic stimulus and can play that role once again. It is important for you to use the tools on AGC’s Legislative Action Center to contact your congressional delegation and urge them to support infrastructure investment in an economic recovery package.

It is critical to continue educating your Members of Congress in the coming weeks about the important economic contributions offered by the construction industry. New and returning members of the 111th Congress need the benefit of your expertise to be fully educated on issues directly affecting the construction industry.

EPA is seeking public input on regulating greenhouse gas emissions from buildings and construction equipment. AGC and many other industry groups are mobilizing members and chapters to stop EPA. We can only do this by sending as many individual comments as possible in response to EPA's Advanced Notice of Proposed Rulemaking (ANPR) on using the Clean Air Act to regulate greenhouse gas emissions.

Members can submit customized comments easily using a template comment letter on the AGC web site. Comments must be customized and received by November 28, 2008 to count. Click here to submit your customized comments today.

AGC’s primary concern is that using the Clean Air Act to regulate greenhouse gas emissions could halt building construction and jeopardize funding for highway and transportation projects. Once EPA controls a greenhouse gas under almost any section of the Act, most buildings in the U.S. that emit that “pollutant” would become subject to costly and time-consuming permitting and construction requirements under EPA’s Prevention of Significant Deterioration program. Another section of the Act would require EPA to develop standards for greenhouse gas emissions that states would need to incorporate into their implementation plans. Penalties for noncompliance include the loss of funding for future highway projects. AGC also is concerned with several proposed new requirements regarding fuel use and types, manufacturing of new equipment, and operating of equipment.

AGC previously reported that the EPA planned to issue an advance notice of proposed rulemaking (ANPR) to “discuss and solicit public input” on how to use the Clean Air Act to control greenhouse gas emissions. To read the full AGC article, which provides a background on the EPA’s decision to issue an ANPR and some of the potential impacts click here.

Two weeks after the election, two Senate races remain undecided.  In Minnesota, AGC-backed Senator Norm Coleman (R) and Democratic satirist Al Franken are separated by less than 250 votes. By Minnesota state law, a recount has been ordered and final results may not be known until the end of the year.  In Georgia, AGC-backed Senator Saxby Chambliss (R) received the most votes but fell short of the 50% threshold necessary to avoid a run-off against Jim Martin (D). A special election is scheduled for December 2.

AGC PAC supported both Coleman (R) and Chambliss (R) with the maximum level of support during the election cycle and has continued to support them during the recount and run-off respectively.  To learn more about these construction-friendly candidates and make contributions, visit http://twoseats.nrsc.org.

Democrats now enjoy a 58-40 majority after Mark Begich (D) was declared the winner this week in Alaska against seven-term incumbent Ted Stevens (R), bringing the Democrats closer to the 60-vote, filibuster proof majority. The races in Minnesota and Georgia remain the only undecided Senate seats.

Meetings for party leadership elections and respective Democratic and Republican caucuses in the House and Senate dominated behind-the-scenes during this week’s lame-duck session.

In the Senate, a resolution to the fate of Senator Joe Lieberman (D-Conn.) allowed him to remain chairman of the Homeland Security and Governmental Affairs Committee but forced him to relinquish his chairmanship of an Environment and Public Works subcommittee and his seat on the Committee. The move took place as a means of addressing concerns expressed by senior Senate Democrats about Senator Lieberman’s support for the Presidential candidacy of Senator John McCain (R-Ariz.).

In the House, Rep. Henry Waxman (D-Calif.) has ousted Rep. John Dingell (D-Mich.) as chairman of the Energy and Commerce Committee. The House Democratic Caucus held a secret-ballot vote and ousted Rep. Dingell by a 137-122 vote of the Democratic Caucus. The vote was widely viewed as a referendum on the Caucus’ future approach to energy and climate policy, as well as a test of the seniority system the party has long used to select committee chairmen and ranking members. It also strengthens House Speaker Nancy Pelosi (D-Calif.), who stayed neutral but whose allies supported Waxman’s agenda that will likely address climate change, energy, healthcare and other priorities of President-elect Barack Obama. Rep. Dingell will stay on as chairman emeritus.

As a result of Rep. Waxman’s victory, Rep. Edolphus Towns (D-N.Y.) is widely expected to succeed outgoing Chairman Waxman on the House Oversight and Government Reform Committee as Chairman. Towns is expected to face little opposition in his bid to succeed Waxman, who was very active in investigating the Bush Administration and supported sweeping contracting reform measures.

House Democrats voted on its leadership for the 111th Congress and chose the following:

• House Speaker: Nancy Pelosi (D-Calif.)
• Majority Leader: Steny Hoyer (D-Md.) 
•  Majority Whip: Jim Clyburn (D-S.C.) 
• Democratic Caucus Chairman: John Larson (D-Conn.) 
• Democratic Caucus Vice Chairman: Rep. Xavier Becerra (D-Calif.)
• Democratic Congressional Campaign Committee Chairman: Chris Van Hollen (D-Md.)

In addition, House Republicans elected the following leaders for the 111th Congress:

• Republican Leader:  Rep. John Boehner (R-Ohio) 
• Republican Whip:  Rep. Eric Cantor (R-Va.) 
• Conference Chairman:  Rep. Mike Pence (R-Ind.)
• Policy Committee Chairman:  Rep. Thaddeus McCotter (R-Mich.) 
• Conference Vice-Chair:  Rep. Cathy McMorris Rodgers (R-Wash.) 
•  Conference Secretary:  Rep. John Carter (R-Texas) 
•  National Republican Congressional Committee Chairman:  Rep. Pete Sessions (R-Texas)

The Senate Democratic Leadership for the 111th Congress is as follows:

• President Pro Tempore: Robert C. Byrd (D-W.V.)
• Assistant Majority Leader: Dick Durbin (D-Ill.)
• Conference of the Vice Chair: Charles E. Schumer (D-N.Y.)
• Conference Secretary: Patty Murray (D-Wash.)
• Policy Committee Chairman: Byron L. Dorgan (D-N.D.)
• Steering and Outreach Committee Chair: Debbie Stabenow (D-Mich.)
• Committee Outreach Chairman: Jeff Bingaman (D-N.M.)
• Rural Outreach Chair: Blanche L. Lincoln (D-Ark.)
• Chief Deputy Whip: Barbara Boxer (D-Calif.)
• Deputy Whip: Thomas R. Carper (D-Del.)
• Deputy Whip: Bill Nelson (D-Fla.)
• Deputy Whip: Russell D. Feingold (D-Wis.)

The Senate Republican Leadership for the 111th Congress is as follows:

• Republican Leader: Sen. Mitch McConnell (R-Ky.)
• Republican Whip: Sen. Jon Kyl (R-Ariz.)
• Republican Conference Chair: Sen. Lamar Alexander (R-Tenn.)
• Republican Policy Committee Chairman: Sen. John Ensign (R-Nev.)
• Republican Conference Vice Chair: John Thune (R-S.D.)
• National Republican Senatorial Committee Chairman: John Cornyn (R-Texas)

Despite a great deal of talk about Congress taking up economic stimulus legislation in a lame duck session, it still remains uncertain whether or not this will happen. The Senate is scheduled to be in session next week. In the House, Speaker Nancy Pelosi (D-Calif.) has expressed the desire to go back into session to address stimulus legislation but she has not yet officially called the House back into session.In a press conference this week, President-Elect Obama urged Congress to pass stimulus legislation as soon as possible. However, President Bush has expressed skepticism about the benefit from this legislation.

AGC continues to advocate for the inclusion of infrastructure funding as part of the economic stimulus package. Prior to adjournment the House passed a stimulus bill which included $34 billion in infrastructure funding, including: $12.8 billion for the federal-aid highway program; $3.6 billion for transit; $600 million for airport capital improvement projects; $7.5 billion for water infrastructure; $5 billion for the U.S. Army Corps of Engineers; $3 billion for public school reconstruction; $500 million for Amtrak; and $1 billion for public housing construction. A Senate bill that included $25 billion in infrastructure spending was blocked from passage on a procedural motion.

The House Ways and Means Committee, chaired by Representative Charlie Rangel (D-N.Y.), met October 29 for a hearing on economic recovery, job creation, and investment in America. Two panels testified before the committee with representatives from state and local governments, think tanks, and industry. To view the testimony AGC submitted for the hearing click here.

Your Senators and Representatives need to hear from you this week. Please go to AGC’s Legislative Action Center and send a message to your elected officials.

Congressional leaders are advocating for inclusion of infrastructure funding in the economic stimulus legislation and they have asked AGC for information about current conditions in the construction industry as well as the positive impact that would result from increased infrastructure funding. Please take a few minutes to complete this survey. This information will be very useful in our efforts on Capitol Hill.

On Election Day, the American public voted overwhelmingly in support of investing in the future of the country. Voters in 25 states expressed strong support for infrastructure investment by approving about $122 billion in bonds and tax increases for public works projects. Most  ballot initiatives addressed transportation and school funding; however many states and localities approved initiatives for improving water infrastructure and other building infrastructure, including libraries, hospitals, and parks.

More than 80% of the bond referendums passed, signaling the American public’s support to incur debt for increased infrastructure investment despite the recent economic woes. To view a list of ballot initiatives specific to the construction industry click here.

EPA is seeking public input on regulating greenhouse gas emissions from buildings and construction equipment. AGC and many other industry groups are mobilizing members and chapters to stop EPA. We can only do this by sending as many individual comments as possible in response to EPA’s Advanced Notice of Proposed Rulemaking (ANPR) on using the Clean Air Act to regulate greenhouse gas emissions.

Members can submit customized comments easily using a template comment letter on the AGC web site. Comments must be customized and received by November 28, 2008 to count. Click here to submit your customized comments today.

AGC’s primary concern is that using the Clean Air Act to regulate greenhouse gas emissions could halt building construction and jeopardize funding for highway and transportation projects. Once EPA controls a greenhouse gas under almost any section of the Act, most buildings in the U.S. that emit that “pollutant” would become subject to costly and time-consuming permitting and construction requirements under EPA’s Prevention of Significant Deterioration program. Another section of the Act would require EPA to develop standards for greenhouse gas emissions that states would need to incorporate into their implementation plans. Penalties for noncompliance include the loss of funding for future highway projects. AGC also is concerned with several proposed new requirements regarding fuel use and types, manufacturing of new equipment, and operating of equipment.

AGC previously reported that the EPA planned to issue an advance notice of proposed rulemaking (ANPR) to “discuss and solicit public input” on how to use the Clean Air Act to control greenhouse gas emissions. To read the full AGC article, which provides a background on the EPA’s decision to issue an ANPR and some of the potential impacts click here.

The Federal Acquisition Regulation (FAR) Council on November 12 issued a final rule on its "Contractor Business Ethics Compliance Program and Disclosure Requirements." The rulemaking becomes effective on December 12, 2008.

The rule amends the FAR to amplify the requirements for a contractor code of business ethics and conduct, an internal control system, and disclosure to the Government of certain violations of criminal law, violations of the civil False Claims Act, or significant overpayments. Specifically, the rule requires Federal contractors to:

• Establish and maintain specific internal controls to detect and prevent improper conduct in connection with the award or performance of any Government contract or subcontract; and,
• Timely disclose to the agency Office of the Inspector General, with a copy to the contracting officer, whenever, in connection with the award, performance, or closeout of a Government contract performed by the contractor or a subcontract awarded thereunder, the contractor has credible evidence of a violation of Federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in Title 18 of the United States Code; or a violation of the civil False Claims Act (31 U.S.C. 3729 3733).

The rule also provides as cause for suspension or debarment, knowing failure by a principal, until 3 years after final payment on any Government contract awarded to the contractor, to timely disclose to the Government, in connection with the award, performance, or closeout of the contract or a subcontract thereunder, credible evidence of:

• Violation of Federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in Title 18 of the United States Code;
• Violation of the civil False Claims Act; or
• Significant overpayment(s) on the contract, other than overpayments resulting from contract financing payments as defined in FAR 32.001, Definitions.