The Senate Environment and Public Works Committee today passed S.1005, the Water Infrastructure Financing Act of 2009 with a strong bipartisan vote of 17-2. The bill authorizes $38.9 billion for EPA water infrastructure programs over the next five years, and includes $20 billion for the Clean Water State Revolving Fund Program, $15 billion for the Drinking Water State Revolving Fund Program and $1.85 billion for Sewer Overflow Grants.  AGC supports this substantial increase in funding for our nation's water infrastructure.

Several amendments were adopted during the markup including adding Davis-Bacon prevailing wages, updating EPA affordability guidance, and authorizing a study on the presence of pharmaceuticals and personal care products in waters of the United States. Largely due to the diligence of AGC and the WIN Coalition colleagues, the bill does not include any Buy American Provisions.

AGC and the Water Infrastructure Network (WIN) Coalition will be working to raise awareness and garner support for passage by the full Senate and will be calling on AGC members to contact their Senators and urge support. This is companion legislation to H.R. 1262, the Water Quality Investment Act of 2009, which authorized $19.4 billion over five years in of appropriations for wastewater infrastructure projects, including $13.8 billion for the Clean Water State Revolving Loan Fund (SRF).

Senate Finance committee members continue to discuss employer and individual mandates, as well as expansion of federal health programs in health care reform legislation.  Proposals for financing range from raising taxes and taxing employee benefits to finding efficiencies within the system, as the plan could exceed $1 trillion. Any option will be subject to intense scrutiny and opposition from various interest groups.  The committee is expected to release draft legislation possibly next week.

Despite the intense debate in the Senate, House leaders on both sides of the aisle have been trying to draft their own set of principles for reform.  It is expected that the controversial issues will have to be addressed in the Senate where leaders remain committed to the ambitious timeline of passing the legislation by the August recess.

AGC continues to prepare to work with congressional leaders to represent the unique nature of construction companies and the consequences of such reform.  AGC recently conducted a survey of its members, which it will use to prioritize the industry's concerns with health care reform legislation and will deliver the message to Capitol Hill.

AGC continues to update its stimulus Web site to provide comprehensive information on the American Reinvestment and Recovery Act and the impact on the construction industry. Included on the site is a breakdown of construction spending by program, with additional details on allocations. The site also includes analysis of the various tax provisions within the legislation that affect the construction industry and an overview of some of the policy implications of the legislation. 

AGC has posted information on the Federal Acquisition Regulation (FAR) Council's recently-releases reporting requirements for contractors and procurement officials disbursing stimulus funds. AGC encourages individuals to view the information and participate in the public comment period by June 1.

The intent of the site is to provide members, and more broadly the construction community, the widest possible range of current information about the stimulus. AGC also aims to highlight the stimulus funds at work and AGC members hiring employees based on stimulus awards. The section, "Stimulus At Work" highlights the work our members are doing to help ensure the success of the stimulus package. Visit www.agc.org/stimulusatwork to share your success stories related to the stimulus.

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 this 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 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 21, May 28, June 4 and June 11 from 1:30 PM - 3:00 PM (ET).  Please click the links below for more information.

May 21 - The New and Old of Federal Contracting
May 28 - The Contract Award Process
June 4 - How to Handle Claims and Disputes
June 11 - The Recovery Act

The Obama Administration today released additional details regarding its fiscal year 2010 budget request to Congress.  The Administration released a blueprint of its budget in February.  For federal construction spending programs, the Administration proposes a total of $118.7 billion, a $724 million or 0.6 percent decrease below the $119.4 billion appropriated for FY 2009.

While the budget recommends a mix of increases and reductions in programs across market areas, it does, however, increase in funding for water and wastewater infrastructure construction.  Specifically, the budget recommends $2.4 billion for the Clean Water State Revolving Loan Fund (SRF) program and $1.5 billion for the Safe Drinking Water SRF program, together representing a 160 percent increase over FY 2009 funding levels. 

On a related note, Congress on April 29 approved its $3.5 trillion budget resolution for FY 2010.  No Republicans voted for the measure in either chamber.  The budget resolution, which provides a non-binding framework for future tax and spending legislation in Congress, assumes $764 billion in tax cuts over five years, and aims to cut the deficit in half by FY 2012 and by two-thirds by FY 2014.  The agreement sets discretionary funding at $1.1 trillion for FY 2010, $10 billion less than the amount President Obama recommended in his budget, and sets non-defense discretionary spending at $529.8 billion for FY 2010.

For a chart comparing the Administration's FY 2010 budget request, click here.

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.

In order to facilitate a dialogue between AGC members and the government, AGC has set 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 Contract Actions
• 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 23 establishing 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.

Senate Environment and Public Works Chairwoman Barbara Boxer (D-CA), Ranking Member James Inhofe (R-OK), Senate Water & Wildlife Subcommittee Chairman Ben Cardin (D- MD) and Ranking Member Senator Mike Crapo (R-IL) are expected shorty to introduce the Water Infrastructure Financing Act of 2009. This bi-partisan bill will authorize $38.9 billion for Environmental Protection Agency (EPA) water infrastructure programs over the next five years.

Highlights of the Senate bill include $20 billion for the Clean Water State Revolving Fund Program, $15 billion for the Drinking Water State Revolving Fund Program and $1.85 billion for Sewer Overflow Grants. AGC and the WIN Coalition worked closely with Senate staff on this companion legislation to H.R. 1262, the Water Quality Investment Act of 2009, which passed out of the House of Representatives on March 12 authorizing a total of $19.4 billion over five years for wastewater infrastructure projects. 

In addition to revising the SRF distribution formula for States, The Water Infrastructure Financing Act of 2009 creates a new Agricultural Pollution Control SRF, includes technical assistance grants for small systems and $250 million for Critical Water Infrastructure Projects (Watershed Improvements).

AGC is particularly pleased that the bill does not include any Buy American Provisions similar to those included in the American Recovery and Reinvestment Act. While the bill will not include any Davis Bacon provisions it is likely that amendments for and against the inclusion of Davis Bacon will be introduced in the full committee markup which will occur on Thursday May 14.

The Immigration and Customs Enforcement (ICE) agency issued new guidelines to field offices to specifically instruct agents to step up worksite enforcement on employers. The guidance seeks to refocus agents on employer enforcement because ICE believes that efforts focused on employers is the best way to fight what many consider to be one of the leading causes of illegal immigration. 

The guidance urges agents to "prioritize the criminal prosecution of actual employers who knowingly hire illegal workers" and to use administrative tools such as I-9 audits, civil fines and debarment proceedings to further these efforts.  This effort specifically seeks to reprioritize ICE's efforts to emphasize criminal prosecutions.

This week, AGC Chief Executive Officer Steve Sandherr wrote and OpEd for The Washington Examiner on the impact of the Employee Free Choice Act (EFCA) on union construction workers. The story illustrates AGC's concerns on the negative effect passage of EFCA could  have on union workers in our industry.

AGC continues to educate Members of Congress about the negative impact of EFCA on the construction industry for both union and open shop contractors. Click here to view the OpEd.