Construction Legislative Week in Review

May 2009 Archive

Card Check Remains A Top Priority for AGC

Thursday, May 21, 2009

The debate and speculation on the "so-called" Employee Free Choice Act (EFCA) remains a top priority for AGC.  The top Senate supporter of the bill,Senator Harkin (D-Iowa) has said that he is trying to work with Senator Specter(D-Pa.) to come up with a compromise on EFCA.  If he were able to forge such a compromise, Sen. Harkin said that he would seek to push the "compromise"directly to the Senate floor without Committee hearings which would limit any attempt to amend the bill.   If unable to come to a compromise, Sen.Harkin has called for the Senate to vote on legislation.

While there are rumors of a limited number of Senators working on a compromise, thedetails of any such compromise remain under wraps.  Possible components of such a compromise could include of using post-cards instead of secret ballot elections, so-called "quickie" elections to be held within a certain timeframeand increasing access to the workplace by union organizers. 

AGC remains firm in its belief that there can not be any compromise. We have a deep concern that even a genuine and well-intended proposal for a compromise could become a "Trojan horse" that EFCA's proponents would simply use to sneak EFCA past a cloture vote in the Senate.   Unless and until EFCA's proponents completely and irreversibly abandon that legislation, the risk of a compromise becoming a "Trojan horse" for EFCA will remain too great for this industry to entertain any discussion of compromise. 

Click here to send a letter of opposition on EFCA.  Top target states are Arkansas, Virginia, Colorado, Louisiana and Nebraska.   All Senators need to keep hearing about opposition to EFCA.

House Committee to Approve Climate Change Bill

Thursday, May 21, 2009

The House Energy and Commerce Committee tonight is expected to pass a bill to reduce U.S. greenhouse gas emissions by 83 percent from 2005 levels by 2050through a nationwide cap and trade program and a nationwide renewable energy standard.  The vote follows four days of debate and partisan votes on amendments.  Republicans on the panel opposed to the bill had readied as many as 450 amendments. 

Last Friday, Energy and Commerce Committee Chairman Henry Waxman (D-Calf.) released a 932-page revised bill that offers concessions to Democrats on the panel who expressed concerns over the cost of the bill to energy-intensive industries and consumers.  As a result, the bill gives away 85 percent of the emission allowances for free, leaving just 15 percent of the allowances available for auction.  President Obama has called for 100 percent auction of the allowances, although he supports the House bill.  The electric utility industry wins most of the free allowances with 35 percent, while the pulp,paper, cement and steel industries were able to secure 15 percent of the free allowances.  Even though the oil and gas industry represents about 30percent of U.S. emissions, the bill does little to address high fuel costs under the bill-refiners would only get 2 percent of the allowances for free starting in 2014 and ending in 2016. 

Chairman Waxman will likely achieve his goal of approving a cap and trade bill prior to Memorial Day, but hurdles remain for House passage of the measure.  The bill has been referred to eight other committees whose leadership and members may conduct additional hearings and amend the bill further.  The Senate has yet to propose similar legislation. AGC will continue to monitor developments closely.  

Health Care Reform Proposals Remain Underdevelopment

Thursday, May 21, 2009

The debate over health care reform heats up with the both the House and Senate beginning to outline policy priorities. Congressional leaders in the House and Senate remain committed to finalizing legislation before the August recess.However, neither body has released a legislative proposal and they must compete for time to debate the legislation with other priorities such as climate change.

The Senate Finance Committee has released broad policy options to set the outline of comprehensive health care reform. The policy options in the reports covered costs in the health care delivery system, expanding coverage to all Americans and the financing of health reform. This week the financing of health reform policy options was the last report to be released prior to the drafting of the legislation.  The options by the committee include: 1) reductions in current spending by reducing waste and inefficiencies; 2) modifying current tax treatment of health-related expenses including modifying the tax-free status of employer provided health coverage, modifying Health Savings Accounts and even the option of eliminating Flexible Spending Accounts; and 3) changing non-health tax provisions to promote wellness and health choices trough lifestyle changes.  While the Finance committee has released broad policy options,it must be worked in with other committees before it can be formally introduced.  

AGC and the AGC Health Care Task Force continue to await the release of legislative language before making formal recommendations to Congress.

AGC Preparing Recovery Act Comments to FAR Council

Thursday, May 21, 2009

On March 31, 2009, the FAR Councils issued a series of interim rules amending the Federal Acquisition Regulation (FAR) in order to implement several key provisions set forth in the American Recovery and Reinvestment Act of 2009.On a finding of "urgent and compelling reasons," the interim rules were issued without any opportunity for prior public comment.  The FAR Councils will, however, take into consideration public comments submitted on or before June 1, 2009 in formulation of the final rule.

Inorder to facilitate a dialogue between AGC members and the government, AGC hasset up a special portal located at the AGC Legislative Action Center and highlighted the key issues that must be addressed:

  • Recovery Act - Buy American Requirements for Construction Material
  • Recovery Act - Publicizing ContractActions
  • Recovery Act - Reporting Requirements
  • Recovery Act - Whistleblower Protections
  • Recovery Act - GAO/IG Access

The Office of Management and Budget (OMB) also issued its own guidance on April 23establishing government-wide guidance and standard award terms for agencies to include in financial assistance awards (namely, grants, cooperative agreements and loans) as part of their implementation of the Recovery Act. Public comments are due by June 22:

  • Recovery Act - OMB Interim Guidance

AGC has been working to solicit comments from members and is preparing to submit comments on behalf of the entire association by the June 1 deadline.

AGC Hosts First Session in Federal Contracting/Recovery Act Webinar Series

Thursday, May 21, 2009

On May 21, AGC held the first session in its new Federal Contracting: Stimulus at Work webinar series, entitled, The New and Old of Federal Contracting.The federal market has changed dramatically over the last six months. This program provided participants with an overview of the market basics for those new and experienced in Federal Contracting.

Due to the changing landscape in federal contracting, it is more important than ever that contractors - those experienced in federal work or those looking to move into the market - are aware of rule and regulation updates and the impact of the American Recovery and Reinvestment Act on the federal contracting process.  This webinar series will continue to provide an overview of the existing process and walk attendees through the evolution of federal contracting.

Webinars will take place on successive Thursdays on May 28, June 4 and June 11 from 1:30PM - 3:00 PM (ET).  Please click the links below for more information:

  • May 28 - The Contract Award Process
  • June 4 - How to Handle Claims and Disputes
  • June 11- The Recovery Act

Congress Awaits Crowded Schedule

Thursday, May 21, 2009

Next week Congress will enjoy a one week reprieve from a busy legislative calendar.Congressional leaders have indicated their intent to consider comprehensive health care reform legislation as well as climate change legislation prior to the August recess. Both issues will be contentious and will dominate the calendar in congress. As members of Congress return to their home states and districts next week it makes for a perfect opportunity for contractors to talk and work with them. AGC staff is available to help coordinate visits or supply additional information upon request.

House Energy and Commerce Committee Continue Negotiations on Climate Change, Prepare for Week-long Fight

Thursday, May 14, 2009

Democratic proponents of a bill that would create a cap and trade system to control greenhouse gas emissions are continuing negotiations within their own party in advance of a week-long markup of the legislation in the House Energy and Commerce Committee next week. 

Committee Chairman Henry Waxman (D-Calif.) earlier this week conceded to many of his Democrat colleagues' demands, including an agreement to give away credits to a variety of industries that would be most affected by a cap and trade scheme.  Waxman has committed to give away 35 percent of the emission allowance credits through 2025 for free to local electricity distribution companies and 15 percent of the credits for free to energy intensive industries, such as steel, aluminum, chemical and glass.  Under the original bill, these industries would have been required to purchase emission allowance credits, the cost of which could have been passed down to consumers in the form of higher prices.  President Obama has called for 100 percent auctioning of allowance credits. 

Waxman has also made concessions on the bill's renewable energy standard, which requires utilities to provide escalating amounts of power from wind, solar and biomass by reducing the standard from 25 percent - an Obama campaign pledge - to 20 percent by 2025.  The new agreement would also lower the overall greenhouse gas emission reduction target from 20 percent to 17 percent below 2005 levels by 2020, higher than the 14 percent cut the president has proposed. The bill would still require an 80 percent reduction below 2005 levels by 2050. 

Energy and Commerce Committee ranking member Joe Barton (R-Texas) is promising a fight once the markup begins on Monday, and he will likely have the support of the 22 other Republican members of the Committee.  Barton said Republicans are preparing to offer hundreds of amendments and to use other tools to slow down the markup. Moreover, despite his concessions so far, Waxman still has to convince about a dozen or so of Democrat "fence-sitters" to go along with his plan. 

Waxman has made Committee passage of his bill before Memorial Day a priority.  The Senate has yet to introduce comprehensive climate change legislation.

AGC Chapters Ask EPA for $30 Million to Clean Up Diesel Engines Nationwide

Thursday, May 14, 2009

Industry Would Voluntarily Contribute Additional $20M to Support Retrofit Effort

In an unprecedented nationwide effort to reduce emissions from construction equipment, 15 AGC Chapters have asked the U.S. Environmental Protection Agency (EPA) for more than $31 million in grant funding to clean up approximately 1,000 diesel machines that are currently in use on AGC-members' jobsites.  These AGC Chapters - representing 9 out of 10 EPA Regions - have leveraged an additional $20 million plus in matching funds and "in-kind" contributions by pulling together an impressive array of project partners.  The current grant competition is being funded by the American Recovery and Reinvestment Act (ARRA) of 2009.  If AGC's collective effort is fully funded, it would create and/or preserve more than 1,000 jobs.

Latest reports indicate that this will be an extremely fierce competition and grant requests far exceed the funding that is currently available.  Specifically, EPA will award approximately $156 million in ARRA funding via its National Clean Diesel Funding Assistance Program (a competitive grant program) to "eligible entities" like AGC Chapters to help construction companies and other diesel users reduce emissions from their fleets, as well as to promote economic recovery and preserve/create jobs.  AGC recently signed on to a letter urging the President and U.S. Congress to fully fund the 2010 national diesel grant competition at $200 million.

Diesel grant applications were due to EPA on April 28.  EPA is currently reviewing project proposals and will announce "winners" over the next 30 days.  Private construction companies cannot apply (on their own) for an EPA diesel retrofit grant.  Interested AGC members are encouraged to contact their local AGC Chapters to discuss future opportunities to apply for federal funding. 

National AGC and its Chapters are grateful for the assistance that the equipment dealers and engine/equipment manufacturers like Caterpillar, John Deere and Cummins provided for this effort - and particularly the assistance that Caterpillar Emissions Solutions provided in making an outside consultant available to review AGC Chapter applications.

House Approves Legislation to Modernize and Green America's Schools

Thursday, May 14, 2009

On May 14, the U.S. House of Representatives overwhelmingly approved legislation to modernize, upgrade and green America's schools by a vote of 275-155. The 21st Century Green High Performing Public School Facilities Act (H.R. 2187) invests billions of dollars in school repair and renovation projects that would create safer, healthier and more energy-efficient learning environments for students.  

The bill would authorize $6.4 billion for school renovation and modernization projects for fiscal year 2010, and would ensure that school districts quickly receive funds for projects that improve schools' teaching and learning climates, health and safety and energy efficiency. The measure distributes funds by allocating the same percentage of funds to school districts that they receive under Part A of Title I of the Elementary and Secondary Education Act, except that it guarantees each such district a minimum of $5,000.

Below are estimates of the amount of funding that each state and school district would receive to modernize, upgrade and repair school facilities under the Act, as calculated by the Congressional Research Service:
Click here to download state-level data (PDF, 10KB)
Click here to download school district-level data (PDF, 775KB)

Senate Commerce Chairman Introduces Bill Aimed at Reducing Auto Travel

Thursday, May 14, 2009

Senate Commerce Committee Chairman John D. Rockefeller (D-W.Va.) and Surface Transportation Subcommittee Chairman Frank Lautenberg (D-N.J.) today introduced The Federal Surface Transportation Policy and Planning Act of 2009, legislation to establish a strategic, comprehensive national transportation policy. 

The major goals of the bill are to:

  • Reduce national per capita motor vehicle miles traveled on an annual basis;
  • Reduce national motor vehicle-related fatalities by 50 percent by 2030;
  • Reduce national surface transportation-generated carbon dioxide levels by 40 percent by 2030;
  • Reduce national surface transportation delays per capita on an annual basis;
  • Increase the percentage of system-critical surface transportation assets that are in a state    of good repair by 20 percent by 2030;
  • Increase the total usage of public transportation, intercity passenger rail services and non-motorized transportation on an annual basis;
  • Increase the proportion of national freight transportation provided by non-highway or multi-modal services by 10 percent by 2020; and
  • Reduce passenger and freight transportation delays and congestion at international points of entry on an annual basis.

A  SAFETEA-LU reauthorization bill has not yet been introduced in the Senate and is currently being drafted by Environment and Public Works Committee staff.  The Senate Commerce Committee has jurisdiction over the safety issues in the reauthorization bill and therefore will have some influence over the final legislation.