AGC's analysis of climate change legislation shows a significant impact on construction in the form of higher energy prices, higher raw materials prices, potential EPA regulation of land use (including local planning decisions) and transportation planning due to the proposed cap and trade program that would create a market for emissions allowances.

While climate change is a major focus of both President Obama and Congressional leaders, the committee process has thus far found a less than unanimous endorsement of cap and trade as the best way to regulate green house gases. The Senate chose to not endorse a cap and trade solution earlier by a vote of 67 to 31.

The U.S. Department of the Interior has published its complete project list which represents $750 million in stimulus funds.  Projects include, but are not limited to, new buildings, HVAC upgrades, energy efficiency projects, wastewater systems, hiking trails, fencing, photovoltaic systems, pipeline replacement, paving and roadwork.

The following agencies are under the jurisdiction of Interior and will be responsible for procuring the projects: Bureau of Reclamation, Bureau of Land Management, Bureau of Indian Affairs, U.S. Fish & Wildlife Service and the National Park Service.

For a complete listing of projects by state, please visit click here.  For the Interior's Recovery agenda, click here.

Next week there will be three hearings in both the House and Senate on workplace safety and enforcement efforts by the Occupational Safety and Health Administration. It is expected that Congress and the Obama Administration will seek various ways of expanding the role of OSHA as well as increase enforcement efforts during the next few years. The hearings next week are expected to be the start of these efforts.

AGC anticipates that OSHA to begin taking a much different approach towards employers than in the previous administration, with the focus moving away from working with employers to increased enforcement. AGC supports common-sense OSHA reform legislation that provides protection for small business while promoting a safe and healthy work environment. AGC is keeping close watch on these efforts and will continue to provide updates on any developments.

Key House Transportation committee leaders called on AGC and other groups to unite in supporting the House version of the budget resolution for transportation, which will set the baseline for the reauthorization of the SAFETEA-LU. The House version assumes a $323.9 billion base line for highways and transit over the next five years and the Senate version assumes only $242.3 billion.

Both versions assume a reserve fund for any additional revenues to fund in excess of the baseline amount. This decision really is the opening salvo in the debate over the transportation reauthorization. With mounting transportation needs, AGC is urging Congress to adopt the House budget language.

The federal government has agreed to even further delay implementation of the E-Verify rule for federal contractors.  Contracts and solicitations issued prior to June 30, 2009, will not contain the mandate.  An official announcement is expected to be published in this Friday’s Federal Register.

The Federal Acquisition Regulation (FAR) Council issued the final rule on November 14, 2008, requiring contracting officers to mandate contractor use of E-Verify in solicitations issued and contracts awarded after January 15, 2009.  In response to a legal challenge to the rule, the government agreed to suspend the rule until February 20 and again until May 21.  The plaintiffs in the lawsuit requested the extension after President Obama’s Chief of Staff Rahm Emanuel issued a memorandum directing federal agencies to consider extending by 60 days the effective dates of all regulations already issued but not yet in effect, in order to allow the new Administration a chance to review any "questions of law and policy raised."

Click here for a list of Frequently Asked Questions (FAQ's) for Federal Contractors & E-Verify. Visit the AGC Web site for critical components of the final rule.

In a move that stands to create and sustain thousands of jobs while improving aging water infrastructure, protecting the environment and promoting public health, the U.S. Environmental Protection Agency (EPA) has awarded the first round of its $6 billion in for water infrastructure as part of the American Reinvestment and Recovery Act of 2009.

To date, more than $2 billion has been released to the several states’ State Revolving Funds and Tribal Governments to finance clean water and drinking water infrastructure projects. Click here to see individual state funding.

The Federal Acquisition Regulation (FAR) Council on March 31 issued several new reporting requirements for contractors and procurement officials disbursing stimulus funds. In addition, the Office of Management and Budget (OMB) published Implementing Guidance for the American Recovery and Reinvestment Act of 2009 on April 3. 

The new FAR Interim rules, which apply to all direct-Federal contracts, require the following:

• Prime contractors who win work funded by the economic recovery package must file detailed public reports to the government on the nature of their work and job creation data;
• All construction, repair or maintenance projects must use only iron, steel and manufactured goods produced in the United States. The rule provides a number of narrow exceptions and waivers, such as cases when goods are not available domestically, or if the local price is not reasonable;
• Prohibits nonfederal employers from firing, demoting or discriminating against whistleblowers who alert the government to questionable uses of stimulus funds. Contractors who refuse to abide by this rule will not be eligible for stimulus contracts;
• Acquisition officials must issue public notices publicizing contract actions worth more than $25,000; and,
• Provide the Government Accountability Office with the authority to audit both contracts and subcontracts related to the stimulus, and to interview contractor and subcontractor employees. The same rights, except the ability to interview subcontractor workers, are granted to inspectors general.

This updated OMB guidance applies to Recovery projects that are federally-assisted (grants, SRF loans, etc.) rather than directly funded by the federal government. It seeks to clarify many key positions including the applicability of Buy America provisions, and reporting requirements. Updates to the guidance are based on ongoing input received from the public, Congress, state and local government officials, grant and contract recipients and federal personnel.

AGC is currently reviewing the rules in detail to ensure they are fair and reasonable for construction contractors performing work funded by the recovery plan. The FAR Council and OMB are both accepting comments on these rules through June 1, 2009.

AGC member company Pike Industries Inc., will begin work on Route 101 in New Hampshire next month, reported the local WMUR.  Company president Christian Zimmermann was prevented from laying off workers thanks to the project, which will be the first state highway project funded by the stimulus.  Read the article.

Pike Industries Inc., will host U.S. Department of Transportation Secretary Ray LaHood tomorrow, where they will announce 15 newly hired individuals as a result of the stimulus projects the company has been awarded.  Pike is also in the process of hiring another 30 people.

AGC is working with coalition partners to ask members of Congress to co-sponsor legislation that would permanently repeal the 3 percent withholding law enacted in 2006.  Effective January 1, 2012, federal, state and local governments with annual expenditures of $100 million or more are required to withhold 3 percent from payments for goods and services, including payments made under government contracts with construction companies. The law was intended to reduce the so-called "tax gap" and tax evasion. AGC has strongly opposed this legislation since it was introduced.

In February, Congress enacted a one-year delay in the effective date of the law (i.e., from 2011 to 2012) as part of H.R. 1, the American Recovery and Reinvestment Act.

On January 7, Representative Kendrick Meek (D-Fla.) introduced H.R. 275, a bill to repeal the 3 percent withholding law. On January 21, Senator Arlen Specter (R-Pa.) introduced a Senate version, S. 292. AGC has made enactment of this legislation a top priority and encourages members to contact their Representative and Senators using AGC’s Legislative Action Center.

In a letter sent to Rep. Lynn Woolsey, Chairwoman of the House Subcommittee on Workforce Protections, and Rep. Tom Price, the Subcommittee’ Ranking Member, AGC CEO Steve Sandherr made the point that construction jobs meet all the criteria of the loosely defined “green job.”

This criteria includes:

• Improving the environment;
• Offering good-paying jobs;
• Offering opportunities for advancement;
• Are jobs that cannot be outsourced; and
• Encouraging participation by a diverse population.

The letter was sent to the subcommittee in response to a March 31 hearing it held to “examine green jobs and their role in our nation’s economic recovery.”

AGC’s letter emphasized how large a role the construction industry plays in a green economy, how important it is to capture all of the green work that the industry does – including recycling at the highest levels of any industry – and the need to provide training for traditional crafts that may “benefit by, but do not need, training in green practices in order to work successfully on a green project.”

Further, AGC stressed the need for the federal government to avoid over-defining “green jobs” so that it excludes large segments of the industry and highlighted the many ways that AGC, its members and Chapters promote training and construction in environmentally sound and “green” practices.

The full text of the AGC letter is posted here.