Chief Economist Ken Simonson breaks down the latest construction economic figures and materials trends in AGC's Data DIGest.  Take a look at these numbers and their implications here.

On August 19, the U.S. Environmental Protection Agency (EPA) extended by 60 days the public comment period for its proposed rule to classify coal combustion residuals (CCR) as either hazardous or non-hazardous waste. The new deadline to submit comments is November 19. CCRs are used widely in vertical and horizontal construction. AGC will hold an Environmental Network conference call on September 23 and EPA has announced a series of public hearings across the country.

The extension of the comment deadline allows AGC to more thoroughly review member responses to the association's survey (closed August 16) and to solicit additional input from members during a special Environmental Network conference call.  A preliminary review of the survey responses indicates that members will continue to use CCRs, such as fly ash, on projects where mandated by the specifications. Even so, a clear majority feared that a hazardous designation would increase liability for new construction and demolition that include fly ash materials, create a stigma against materials incorporating fly ash and introduce new and uncertain requirements for shipping, handling, use and disposal. Even with an exemption from the hazardous designation for the beneficial use of CCRs, members have expressed doubt that the public would differentiate between beneficial use, such as in wallboard or concrete, and the disposal practices that ignited public concern in December 2008 with the Kingston, Tenn., impoundment breach and spill.  AGC plans to further discuss these issues during the conference call.

Attend: EPA Hearings

EPA will host seven public hearings on the proposed rule. Each hearing will begin at 10:00 a.m. and continue until 9:00 p.m. Walk-ins and written comments will be accepted at each hearing, though attendees must register for the public hearing no later than three business days in advance to guarantee a time slot in which to speak. Interested attendees should prepare remarks focusing on one or two key points that take no longer than three minutes to express.  Some hearings have already been held.  The remaining hearings are:

September 16:   Hilton Chicago, 720 South Michigan Avenue, Chicago, Ill.
September 21:   Omni Hotel, 530 William Penn Place, Pittsburgh, Pa.
September 28:   Seelbach Hilton, 500 Fourth Street, Louisville, Ky.

To pre-register to speak at the hearings, please call EPA at (703) 308-8429 or sign up online at http://www.epa.gov/epawaste/nonhaz/industrial/special/fossil/ccr-rule/ccr-form.htm.

For More Information

More information about the proposed regulation is online at http://www.epa.gov/coalashrule. This Web page provides information on the proposed rule, a comparison of the two proposed options for regulation of CCRs, EPA webinars and public hearings. For more information or to offer additional insight and comments, please contact Melinda Tomaino at tomainom@agc.org or (703) 837-5415.

The Federal Acquisition Regulation Councils have released the final version of the rule governing the Buy American provisions for direct-federal procurements under the Recovery Act. While this rule does not govern the federally-assisted work done through grants and loans (like those administered by the DOT and the SRFs), it does provide a preview of what to expect from those forthcoming regulations.

AGC, in its comments on the interim rule, asked that the federal rule and the federally-assisted rules have the closest possible alignment to minimize the burden on contractors, and the government said "the Councils agree and note that the final rule was developed in close coordination with OMB grant officials." The rule does however concede that the two cannot be completely in sync because the Buy American Act of 1933 (which forms the basis of the rule) does not apply to grants, financial assistance, and loans. Furthermore, trade agreements do not apply uniformly.

One clarification that AGC expects to be carried into the OMB guidance is the proclamation that in cases where there are mixed Recovery Act and non-Recovery Act funds, and the Recovery funds are not segregated by line item, the law requires the mixed-fund contracts to be treated as if they were entirely funded by the Recovery Act. AGC will continue to watch for the OMB guidance for federally-assisted work and will analyze and disseminate it when it arrives.

Click here to read the final rule for federal contractors

For more information on the interim rule for federally-assisted work or other AGC analysis on Buy American, visit http://www.agc.org/buyamerican.

For more information, contact Scott Berry at (703) 837-5321 or berrys@agc.org.

November 11-13, 2010 at the Arizona Biltmore Hotel

Registration is now open for the 2010 AGC Joint Highway and Utilities Contractors Issues Meeting in Phoenix, Ariz. The meeting is scheduled for November 11-13, 2010 at the Arizona Biltmore Hotel. You can register online and also find out more information about the meeting here.

This year's meeting will address all of the top issues that impact contractors working in the highway, transportation and utilities market, including:

• Election 2010: How will the midterm election results impact your market, taxes and business operations
• Outlook for transportation reauthorization, SRF reauthorization, and clean water trust fund legislation
• Selling your company or your project by using social media
• New OSHA Regulations on Cranes and Derricks
• Case Studies Using BIM on Transportation and Utility Projects
• CM at Risk - Learn What Works and What Doesn't
• Increasing efficiency in joint highway and utilities projects
• Open-mic Sessions to dialogue with your fellow contractors about conditions across the country.

Separate tracks are again scheduled to address issues unique each of the two market sectors. Below is a tentative preliminary meeting schedule:

Thursday November 11, 2010
12:30 - 5:00 PM Ritchie Brothers Golf Tournament
5:30 - 7:00 PM Golf Tournament Reception

Friday November 12, 2010
7:00 AM - 4:30 PM Highway and Utilities Contractor Issues Meeting Session I
6:00 - 7:00 PM Issues Meeting Reception

Saturday November 13, 2010
7:00 AM - 12 Noon Highway and Utilities Contractor Issues Meeting Session II

For more information, contact Scott Berry at (703) 837-5321 or berrys@agc.org, or Brian Deery at (703) 837-5319 or deeryb@agc.org.

AGC of America, together with the National Association of State Facilities Administrators, Construction Owners Association of America, The Association of Higher Education Facilities Officers and the American Institute of Architects, just released Integrated Project Delivery For Public and Private Owners. This publication is available for free at www.agc.org/projectdelivery.

According to the Wall Street Journal, the government's new Lead Renovation, Repair, and Paint Program (covered by AGC's Environmental Observer) could add a significant cost burden to the already weakened construction industry.  The cost of employee certification, as well as new equipment, clothing, and other safety materials could be a hefty expense for many small businesses.  These businesses will have a tough time justifying increased costs to property owners, who are already investing less in home renovations. 

On the other hand, there is the possibility that increased awareness of the harmful effects of lead will increase business for renovation companies.  The Home Star Energy Retrofit Act, if passed by the Senate, would offer incentives to homeowners who make their homes more energy-efficient. Small businesses hope that the incentive to renovate, coupled with lead aweness, will encourage more renovation investment.

For the complete article, please click here.

The U.S. Environmental Protection Agency (EPA) recently announced it will delay enforcement of the new Lead Renovation, Repair and Painting Program (RRP) regulations.  The Agency issued a memorandum providing renovation firms and workers additional time to obtain necessary training and certifications to comply with its new lead paint rules. EPA's decision is a win for AGC of America and AGC of Maine; both trade groups worked to inform the Agency of the difficult timeline the rule would impose on contractors.

EPA announced it will not fine renovation workers if he or she enrolls in or applies to enroll in a certified renovator class by September 30, 2010, and completes training by December 31, 2010. The June 18 EPA memo is online at http://www.epa.gov/lead/pubs/giles_RRP_memo.pdf.

Unfortunately, in most states, there are few EPA-"accredited" trainers available to educate construction workers on these new requirements.  EPA states in its memo that it will pursue additional training opportunities in every state to meet the demand for classes.  In addition to the enforcement delays noted above, EPA will not take enforcement action for violations of the Lead RRP rule's firm certification requirement until October 1, 2010, according to EPA's memo.  (It should be noted, however, that only the certification requirements are being delayed; any failure to follow lead safe work processes would trigger an immediate violation.)

For more details on the Lead RRP Rule and AGC's action on lead, please refer to AGC's Environmental Observer here.