Backend Category: Advocacy

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, November 25, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration Appointments 

Cabinet, Independent Agency, and White House Staff Picks

Over the last two weeks, President-elect Trump announced nominees for his incoming Cabinet, for independent federal agencies, and for positions on his White House staff. For his Cabinet, Trump has selected: (1) Liberty Energy CEO Chris Wright as Energy Secretary; (2) former Rep. Lee Zeldin (R-NY) as EPA Administrator; (3) North Dakota Gov. Doug Burgum (R) as Interior Secretary and “Energy Czar”; (4) Fox News host and former Rep. Sean Duffy (R-WI) as Transportation Secretary; (5) Trump transition co-chair Howard Lutnick as Commerce Secretary; (6) Robert F. Kennedy, Jr. as Health and Human Services Secretary; (7) South Dakota Gov. Kristi Noem as Homeland Security Secretary; (8) Former Florida Attorney General Pam Bondi for U.S Attorney General following the withdrawal of former Rep. Matt Gaetz from consideration; (9) Fox News host Pete Hegseth as Defense Secretary; (10) former Rep. Tulsi Gabbard (D) as Director of National Intelligence; (11) Sen. Marco Rubio (R-FL) as Secretary of State; (12) Rep. Elise Stefanik as Ambassador to the United Nations; (13) former Trump Director of National Intelligence John Ratcliffe as CIA Director; (14) Trump transition co-chair Linda McMahon as Education Secretary; and (15) former Rep. Doug Collins (R-GA) as Veterans Affairs Secretary.

Teamsters President Sean O’Brien is also urging Trump to consider GOP Rep. Lori Chavez-DeRemer (who recently lost re-election to Oregon’s 5^th Congressional District) as his next Labor Secretary. It is confirmed that she will be interviewed for the job, but there are still several candidates for this position. 

For independent agencies, Trump has nominated: (1) Federal Communications Commission (FCC) member Brendan Carr to be the next FCC Chair; and (2) TV doctor and former Pennsylvania Republican U.S. Senate candidate Dr. Mehmet Oz to be the next Administrator of the Centers for Medicare and Medicaid Services. 

With regard to senior White House staff, Trump announced that: (1) his campaign manager, Susie Wiles, will serve as White House Chief of Staff; (2) campaign and former Trump White House aide Stephen Miller will serve as Deputy Chief of Staff for Policy; (3) former Acting Immigration and Customs Enforcement head Tom Homan will serve as “Border Czar”; (4) James Braid will serve as White House Director of Legislative Affairs; (5) William McGinley will serve as White House Counsel; (6) longtime Trump aide Dan Scavino will serve as Assistant to the President and Deputy Chief of Staff; (7) James Blair will serve as Deputy Chief of Staff for Legislative, Political, and Public Affairs; (8) Taylor Budowich will serve as Deputy Chief of Staff for Communications and Personnel; (9) Sergio Gor will serve as the head of the White House Personnel Office; (10) Trump campaign communications director Steven Cheung will serve as White House Communications Director; (11) Trump campaign spokesperson Karoline Leavitt will serve as White House Press Secretary; (12) Trump attorney Will Scharf will serve as White House Staff Secretary; (13) Rep. Mike Waltz (R-FL) will serve as National Security Advisor; and (14) tech entrepreneurs Elon Musk and Vivek Ramaswamy will serve as the co-heads of the newly-created Department of Government Efficiency. 

Congress

Senate Republican Leadership Elections for the 119^th Congress

On November 13^th, Senate Republicans held their leadership elections for the 119^th Congress and elected: (1) Senate Minority Whip John Thune (R-SD) as the next Senate Majority Leader; (2) Senate GOP Conference Chair John Barrasso (R-WY) as the next Senate Majority Whip; (3) Sen. Tom Cotton (R-AR) as the next Senate GOP Conference Chair; (4) Sen. Shelley Moore Capito (R-WV) as GOP Policy Committee Chair; (5) Sen. James Lankford (R-OK) as GOP Conference Vice Chair; and (6) Sen. Tim Scott (R-SC) as Chair of the National Republican Senatorial Committee. During a press conference following his election, incoming Senate Majority Leader Thune also said that the Senate filibuster will remain in place under the Republican Senate majority. 

Senate Committee Leadership for the 119^th Congress

As lawmakers look to the 119^th Congress, Sen. Bill Cassidy (R-LA) announced on November 14^th that he will serve as the next Chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee next Congress after serving as the Ranking Member during the 118^th Congress. Cassidy’s announcement followed a statement earlier that day from Sen. Rand Paul (R-KY) that he would not pursue the chairmanship on the Senate HELP Committee and would instead become chair of the Senate Homeland Security and Governmental Affairs Committee. 

In other Senate committee news of interest to MCAA: (1) Sen. Ted Cruz (R-TX) will be the incoming chair of the Senate Commerce Committee after serving as the Ranking Member during the 118^th Congress; (2) Sen. Mike Lee (R-UT) will be the incoming chair of the Senate Energy and Natural Resources Committee; and (3) Sen. Susan Collins (R-ME) will be the incoming chair of the Senate Appropriations Committee after serving as the Ranking Member during the 118^th Congress. 

House Republican Leadership Elections for the 119^th Congress

On November 13^th, House Republicans held their leadership elections and nominated Speaker Mike Johnson (R-LA) for another term in the 119^th Congress. The House GOP Caucus filled out its leadership nominations with: (1) Rep. Steve Scalise (R-LA) as House Majority Leader; (2) Rep. Tom Emmer (R-MN) as House Majority Whip; (3) Rep. Lisa McClain (R-MI) as GOP Conference Chair; (4) Rep. Blake Moore (R-UT) as GOP Conference Vice Chair; and (5) Rep. Richard Hudson (R-NC) as Chair of the National Republican Congressional Committee. After the leadership elections, House Republicans announced a deal on rules for the 119th Congress that will raise the threshold for triggering a vote to remove the Speaker to nine members, up from the current one member threshold. In exchange, centrist Republicans agreed to drop their efforts to punish members who defied leaders and the will of the conference.

In addition to nominating leadership positions, last Wednesday, House Republicans named the members of the GOP Steering Committee, which holds power to set most House GOP committee assignments and to select committee chairs. Louisiana is going to be a powerful voting bloc, holding seven of the 37 Steering Committee votes with Speaker Mike Johnson (R-LA) wielding four votes, House Majority Leader Steve Scalise (R-LA) wielding two votes, and Rep. Julia Letlow (R-LA) having one vote. Among the committees with contested races for Chair that the Steering Committee will decide are the battle to lead the House Education and the Workforce Committee and the fight to chair the House Energy and Commerce Committee. Rep. Burgess Owens (R-UT) is currently viewed as having the edge over Rep. Tim Wahlberg (R-MI) to be the next chair of House Education and the Workforce, while Reps. Brett Guthrie (R-KY) and Bob Latta (R-OH) are the leading contenders to chair House Energy and Commerce. Additionally, because she is term-limited atop the Education and Workforce Committee, Rep. Virginia Foxx (R-NC) (who is vehemently anti-union) could seek to chair the House Rules Committee in the 119^th Congress. The Rules Committee Chair is selected by the House Speaker, and not the Steering Committee. Rep. Pete Sessions (R-TX), who chaired the House Rules Committee from 2013 to 2018, is also in the mix to potentially reclaim the Rules Committee gavel in the 119^th Congress. 

House Democrat Leadership Elections 

On November 19^th, House Democrats held their leadership elections and nominated: (1) Rep. Hakeem Jeffries (D-NY) as House Minority Leader; (2) Rep. Katherine Clark (D-MA) as Minority Whip; (3) Rep. Pete Aguilar (D-CA) as Democratic Caucus Chair; (4) Rep. Ted Lieu (D-CA) as Democratic Caucus Vice Chair; (5) Rep. Joe Neguse (D-CO) as Assistant Democratic Leader; and (6) Rep. Debbie Dingell (D-MI) as Democratic Policy and Communications Committee Chair. Additionally, while it has not yet been decided, Rep. Suzan DelBene (D-WA) is favored to continue as Chair of the Democratic Congressional Campaign Committee.

MCAA Issues and Interests 

Registered Apprenticeship

House Lawmakers Introduce Bill to Resurrect IRAPs Without a Construction Exemption

On November 15^th, Rep. Bob Good (R-VA) (who lost his primary for Virginia’s 10^th Congressional District election earlier this year) and Rep. Mary Miller (R-IL) (who won re-election to Illinois’ 15^th Congressional District this month) introduced the “Developing America’s Workforce Act,” (H.R. 10122), legislation that would reinstate the first Trump Administration’s Industry-Recognized Apprenticeship Programs (IRAPs) with one important change—it would eliminate the “construction exemption” that MCAA and its allies secured in the Trump-era final rule before having it rescinded during the Biden Administration. Notably, this legislation is similar to legislation introduced earlier this year by incoming Senate Majority Leader John Thune (R-SD) entitled, the “Training America’s Workforce Act,” (S. 1213), which would also reinstate IRAPs without the construction exemption. While these bills are unlikely to move during the lame duck session of Congress, they will certainly re-emerge during the 119^th Congress with the support of incoming Senate leader Thune and Rep. Miller (R-IL), who also serves as a member of the House Education and the Workforce Committee. 

Independent Contractors and Misclassification of Workers 

IRS Advisory Committee Meeting to Discuss Employee Misclassification Following MCAA-Supported Independent Contractor Rule 

Last Wednesday, the MCAA policy team attended a meeting of the Internal Revenue Service Advisory Council (the Council) at IRS headquarters to review the IRSAC’s 2024 report and recommendations to IRS leadership on measures to improve tax administration on a range of issues. Of interest to the MCAA, among other proposals, the Council’s Information Reporting Subcommittee made recommendations (beginning on page 105 of the report) regarding the misclassification of workers as independent contractors versus employees and challenges arising from discrepancies between the worker classification standards the IRS applies compared to the Department of Labor (DOL). 

The Council recommended that the IRS: (1) work with DOL to define employee versus independent contractor and produce a guide to explain the differences; (2) work within the definitions established by DOL to eliminate gaps and improve clarity to prevent misclassification; and (3) seek legislative changes that permit the IRS to require prospective reclassification of currently misclassified workers, issue generally applicable guidance on the proper classification of workers, require notice to independent contractors of the tax and other consequences of being a contractor versus an employee, and disclose information to the Department of Labor about workers who are reclassified.

Pension Reform

EBSA Seeks Information to Populate Retirement Savings Lost and Found Database

Last Tuesday, the Labor Department’s (DOL) Employee Benefits Security Administration (EBSA) issued an information collection request (ICR) and an associated fact sheet requesting information from retirement plan administrators that will allow EBSA to begin populating the Retirement Savings Lost and Found Database—an online search tool to help workers locate lost retirement savings they earned. The SECURE 2.0 Act directed EBSA to establish the Retirement Savings Lost and Found Database by December 29, 2024. To populate the database, DOL needs retirement plan administrators, recordkeepers and other service providers to collaborate to voluntarily provide plan information as a first step towards making the database available to the public. This information includes: (1) the name and plan number as reflected on the most recent Form 5500 Annual Return/Report of Employee Benefit Plan or Form 5500-SF Short Form Annual Return/Report of Employee Benefit Plan (individually and collectively, Form 5500); (2) the name, employer identification number (EIN), mailing address, and telephone number of the plan administrator as reflected on the most recent Form 5500; (3) the name, EIN, and telephone number of the plan sponsor as reflected on the most recent Form 5500; (4) the name and Social Security Number of any separated vested participant aged 65 or older who is owed a vested benefit, including deceased participants who would have been age 65 or older if they had survived and whose beneficiary is entitled to a benefit, separated vested participants aged 65 or older whose benefits were conditionally forfeited under Treasury Regulation section 1.411(a)-4(b)(6), and separated vested participants aged 65 or older who are in pay status; and (5) with respect to participants previously reported to the Retirement Savings Lost and Found Database who were owed a benefit that has since been paid, notification once their benefit has been paid and the date of the payment. Information may be submitted on the DOL Retirement Savings Lost and Found Database here.

Biden Withdraws Nominee to Lead PBGC 

On November 14^th, President Joe Biden withdrew the nomination of Deva Kyle to serve as the next Director of the Pension Benefit Guaranty Corporation. Kyle had originally been scheduled for a confirmation hearing in the Senate Finance Committee on November 14^th before her nomination was abruptly withdrawn. The White House did not provide an explanation for the withdrawal of the nomination, but it was clear Republicans were not going to cooperate in advancing her because they would prefer to have president-elect Trump appoint the next leader of the pension insurance agency.

PBGC Releases FY 2024 Annual Report

On November 18^th, the Pension Benefit Guaranty Corporation (PBGC) released its fiscal year (FY) 2024 Annual Report highlighting that the Multiemployer Program had assets of $4.5 billion and liabilities of $2.3 billion, as of September 30, 2024. The net financial position of the Multiemployer Program improved in FY 2024, to a positive net position of $2.1 billion, compared with the program’s positive net position of $1.5 billion in FY 2023. The report also explains that the Multiemployer Program is likely to remain solvent for more than 40 years, primarily due to the enactment of the Special Financial Assistance (SFA) Program as part of the American Rescue Plan Act. Finally, PBGC notes that it has provided $163 million in traditional financial assistance to 98 insolvent multiemployer plans covering 62,881 participants receiving guaranteed benefits.

Taxes and Reauthorization of the 2017 Tax Cuts and Jobs Act 

House Majority Leader Scalise Details GOP Priorities for Reconciliation Bill 

On November 19^th, House Majority Leader Steve Scalise (R-LA) laid out his party’s biggest legislative priorities for a reconciliation bill next Congress, including: (1) funding the U.S.-Mexico border wall; (2) cutting various Democratic policies and some spending programs enacted under President Biden, including the Inflation Reduction Act; and (3) locking in the tax cuts that were included in the 2017 Tax Cuts and Jobs Act. Additionally, Majority Whip Tom Emmer (R-MN) announced that Republican leaders would be doing listening sessions with members on reconciliation next month. This comes as President-elect Trump’s team and congressional Republicans are discussing ways to pay for tax cuts in the next Congress, including: (1) tariffs at rates of 10% and 20% on imported goods; (2) cuts to the Inflation Reduction Act; (3) changes to international business taxes, including the Global Intangible Low-Taxed Income and the Alternative Minimum Tax for corporations; and (4) cancelling the Employee Retention Tax Credit.

Buffalo Event with House Ways and Means Chair Smith (R-MO) and Rep. Tenney (R-NY)

On Sunday November 17^th, an MCAA representative joined House Ways & Means Chair Jason Smith (R-MO) and House Ways & Means Committee Member Claudia Tenney (R-NY) at the Buffalo Bill vs. Kansas City Chiefs game. It gave MCAA a chance to advocate its views on maintaining several provisions from the 2017 Tax Cut and Jobs Act that are set to expire next year, including maintaining the corporate tax rate, the 20% business pass through deduction, and favorable depreciation of new and used business equipment. MCAA also made its case for limiting efforts to pay for various tax proposals at the expense of the following tax credits and incentive programs enacted over the last four years: the 45U nuclear credit, the Section 45V hydrogen credit, the 45Q carbon oxide sequestration credit, and the Civil Nuclear Credit Program and the Inflation Reduction Act’s bonus credit for satisfying prevailing wage and apprenticeship requirements. This advocacy will continue throughout the lame duck session of Congress and into the next Congress when renewing the 2017 tax law will be a priority for the Trump Administration and the Republican Congress.

OSHA Proposed Rule on Heat Injury and Illness Prevention 

Meeting with CISC to Discuss Joint Comments on Proposed Heat Injury and Illness Rule

Last Thursday, MCAA participated in a call with the Small Business Administration (SBA) Office of Advocacy to continue pressing concerns about the adverse impacts of the Occupational Safety and Health Administration’s (OSHA’s) proposed rule on Prevention of Heat Injury and Illness in Outdoor and Indoor Work Settings. Following the election, MCAA believes there is an increased chance of having this pending rule reconsidered when the new Administration takes office. While we ramp up this advocacy, MCAA is continuing to work with the Construction Industry Safety Coalition (CISC) on detailed comments on behalf of the entire construction industry highlighting issues with the proposed rule.

Decarbonization

House Passes MCAA-Supported HEATS Act

During the week of November 11^th, the MCAA policy team’s lobbying paid off as the House passed the Harnessing Energy at Thermal Sources (HEATS) Act (H.R. 7409) by a vote of 225-181. This bill would exempt geothermal exploration and development projects on state- or privately-owned land from federal permitting and compliance requirements if the United States’ ownership interest of a property’s subsurface geothermal estate is less than 50%. The bill’s sponsor, Rep. Young Kim (R-CA), was very appreciative of the MCAA’s support. Given the short time remaining in the 118^th Congress and the small amount of support from House Democrats, however, it is unlikely that this bill will pass the Senate by unanimous consent and even more unlikely that the Senate will devote the precious remaining floor time to advancing the bill given the priority being given to confirming Biden appointees. We are, however, continuing to confer with Rep. Kim’s staff to see if there is a viable path to getting this bill to President Biden’s desk before the end of this Congress. And we are of course prepared to renew efforts on it next Congress.

Relatedly, last Wednesday, the House passed by a vote of 244-171 the MCAA-supported Committing Leases for Energy Access Now (CLEAN) Act legislation that would require the Department of the Interior (DOI) to increase the frequency of lease sales under the Geothermal Steam Act and establish deadlines for consideration of geothermal drilling permits. The bill also seeks to speed up the permit process for lease sales by setting a 30-day deadline for the DOI to notify an applicant if a permit has been approved.

DOE Announces $2.2 Billion for Two Hydrogen Hubs in the Midwest and Along the Gulf Coast

Last Wednesday, the Energy Department (DOE) announced $2.2 billion in award commitments for the Gulf Coast and Midwest Regional Clean Hydrogen Hubs (H2Hubs) to help accelerate the commercial-scale deployment of low-cost, clean hydrogen. The DOE’s H2Hubs program was created by the Bipartisan Infrastructure Law to kickstart a national network of clean hydrogen producers, consumers, and related infrastructure while supporting the production, storage, delivery, and end-use of clean hydrogen. DOE is committing up to $1.2 billion of federal cost share for the Gulf Coast Hydrogen Hub, led by HyVelocity, LLC, to produce clean hydrogen from both water through electrolysis and from natural gas while utilizing carbon capture and storage. The Gulf Coast Hydrogen Hub is expected to create approximately 45,000 direct jobs over the project’s lifetime. Separately, DOE is committing up to $1 billion of federal cost share for the Midwest Hydrogen Hub, led by the Midwest Alliance for Clean Hydrogen LLC, to leverage energy sources (e.g., renewable wind energy, natural gas, and nuclear energy) to support the decarbonization of industries including steel and glass production, manufacturing, power generation, refining, and heavy-duty transportation across Illinois, Indiana, Iowa, and Michigan. The Midwest Hydrogen Hub anticipates creating approximately 12,000 direct jobs over the project’s lifetime.

Democrats Urge Changes to Clean Hydrogen Production Credit

Last Tuesday, Democratic Reps. Suzan DelBene (WA), Frank Mrvan (IN), Rick Larsen (WA), Marilyn Strickland (WA), Raul Ruiz (CA), Kim Schrier (WA), Jimmy Panetta (CA), Marc Veasey (TX), Adam Smith (WA), Ami Bera (CA), and Mike Levin (CA), who all represent states that are part of federally-supported hydrogen hubs, sent a letter to Treasury Secretary Janet Yellen and Internal Revenue Service Commissioner Danny Werfel urging changes to the proposed Section 45V clean hydrogen production credit rules implementing the Inflation Reduction Act’s support for hydrogen infrastructure. Specifically, the members warned that “[i]f the guidance is too restrictive, it would severely hamper our ability to compete globally and could allow countries like China to surpass us in this critical technology.” The members specifically recommended that the 45V credit rules include more flexible “incrementality requirements,” including counting any curtailed capacity from hydropower and nuclear facilities. They also urged a more gradual implementation timeline in the final rule that takes into account regional variations in energy availability and grid capacity.

EPA Releases Methane Emissions Final Rule

On November 12^th, the Environmental Protection Agency (EPA) released a final rule to require oil and gas companies for the first time to pay a federal fee if they emit methane above certain levels. As outlined by the EPA, excess methane produced in 2024 could result in a fee of $900 per ton, with fees rising to $1,200 per ton in 2025 and $1,500 per ton by 2026. The EPA argues that the fee will encourage deployment of available technologies to reduce methane emissions and other harmful air pollutants. This comes as the American Petroleum Institute (API) urged the incoming Trump Administration to work with Congress to repeal these fees on methane emissions from drilling operations and to also do away with vehicle emissions standards meant to move the auto industry to produce more electric vehicles and lift a pause on export permits for liquefied natural gas facilities.

Rep. Palmer (R-AL) Introduces CRA to Rescind AMPC Final Rule 

Last Tuesday, Rep. Gary Palmer (R-AL) introduced a Congressional Review Act resolution (H.J. Res. 222) to nullify the Internal Revenue Service’s October 28, 2024 final rule implementing the Inflation Reduction Act’s Section 45X Advanced Manufacturing Production Credit (AMPC). This credit is aimed at incentivizing the production of certain “eligible components” for energy systems in the U.S., including certain components for solar and wind energy, inverters, qualifying battery components, and critical minerals.

Biden Administration Releases Report on Sustainable Aviation Fuel 

On November 13^th, the Energy Department (DOE) announced the release of its “Pathways to Commercial Liftoff: Sustainable Aviation Fuel (SAF),” which analyzes the technical and commercial readiness of several SAF production pathways and highlights actionable steps that both the public and private sector can take to make the United States a global leader in SAF production by 2030. Among other things, the report finds that the biggest barrier is that SAF costs two to ten times more than fossil jet fuel, depending on the feedstock and conversion technology used to produce it, and that SAF liftoff by 2030 will require accelerated deployment of production technologies and feedstocks that are readily available today. The SAF Liftoff report complements two conditional commitments announced by DOE in October 2024 to scale domestic SAF production: (1) a $1.44 billion loan guarantee to Montana Renewables, LLC that, if finalized, will help finance the expansion of a renewable fuels facility in Great Falls, Montana, that will utilize vegetable oils, fats, and greases to produce SAF, renewable diesel, and renewable naphtha; and (2) a $1.46 billion loan guarantee to Gevo Net-Zero 1, LLC that will help finance the first of a kind large-scale corn starch-to-jet fuel facility in Lake Preston, South Dakota.

Biden Administration Releases Roadmap to Triple U.S. Nuclear Capacity by 2050

On November 12^th, the Biden Administration laid out a roadmap for plans to triple U.S. nuclear capacity by mid-century. The plan sets a goal of 200 gigawatts of new capacity by 2050, more than three times the 2020 capacity. The plan calls for the development of large and small modular nuclear plants, as well as upgrades to existing reactors and restarting retired ones. This includes adding 35 gigawatts of new capacity by 2035 and a goal of 15 gigawatts per year by 2040.

Federal Contracting 

OFCCP Publishes Latest Corporate Scheduling Announcement List 

Last Wednesday, the Labor Department’s Office of Federal Contract Compliance Programs (OFCCP) announced the publication of the latest Corporate Scheduling Announcement List (CSAL) for supply and service contractors (which can be accessed on the OFCCP’s webpage). The CSAL for supply and service contractors is a list of 2,000 federal contractors and subcontractors that have been selected for a compliance evaluation, which the OFCCP may begin scheduling immediately. OFCCP encourages contractors to take advantage of the agency’s compliance assistance offerings and to contact their local field and regional offices for technical assistance as they prepare for the evaluation. OFCCP has also published the methodology for developing this list as well as frequently asked questions (FAQs) where answers to other matters related to this topic are included.

Other Interesting Things Since Our Last Report 

Thursday, November 18^th

• President-elect Trump is looking to revive the Keystone XL pipeline on his first day back in the White House. Trump’s renewed interest in the pipeline, however, faces challenges. For example, TC Energy, the pipeline’s developer, said it would no longer pursue its construction. In addition, portions of the pipeline that were already put in the ground have been dug up and replacing that pipe would require any company that wants to rebuild it to again obtain local permits for the project.

• The Biden Labor Department (DOL) issued a press release highlighting DOL-commissioned research that found that a national paid family and medical leave program would reduce poverty across all communities and diminish the poverty gap among workers, especially Black and Hispanic workers who experience some of the highest poverty rates. The research also includes four state-specific reports estimating the costs and benefits of proposed paid family and medical leave policies in Maryland, Michigan, Pennsylvania and Washington State. Only 13 states and Washington, D.C. currently have paid family and medical leave programs. As of March 2023, only 27% of civilian workers had access to paid family leave through their employer and 41% of civilian workers had access to short-term disability insurance through their employer. The reports and more information on the studies are available here.

• Senate Judiciary Subcommittee Ranking Member Lee (R-UT) is reportedly urging the Trump Administration to use federal competition laws “where it’s warranted” but said he did not want to see the next Department of Justice use antitrust “as a Swiss army knife tool of sorts, to pursue all sorts of policy agenda items that have nothing to do with competition” (i.e., using competition law to advance labor and employment law matters like banning non-competition agreements). 

• House Education and the Workforce Committee Chair Virginia Foxx (R-NC) sent a letter to the Department of Labor (DOL) Inspector General following reports that DOL, under the guise of an Employee Benefits Security Administration (EBSA) investigation, secretly shared confidential information involving at least six employee benefit pension plans with a plaintiff’s attorney for use against plan fiduciaries. In the letter, Foxx said that DOL “appears to be working in concert with plaintiffs’ attorneys” to supply “confidential information to plaintiffs’ attorneys for use in private litigation against plan fiduciaries.”

Wednesday, November 17^th

• Senate Minority Leader Mitch McConnell (R-KY) declared that Republicans are planning to make vigorous use the Congressional Review Act to kill Biden Administration rules. McConnell did not detail any specific rulemakings that would be targeted but did generally reference as examples rules involving “job-killing energy policies.”

• Commerce Secretary Gina Raimondo is working to commit every unspent dollar in the CHIPS and Science Act’s $50 billion microchip-subsidy program before President-elect Donald Trump takes over in January to cement a Biden Administration priority before the Trump Administration can reverse course and pull back funding.

Tuesday, November 16^th

• The Labor Department (DOL) published a blog post highlighting results from a recent Gallup poll that found support for unions has reached 70%, just one point below the highest level recorded since 1965, while disapproval of unions has fallen to 23 percent, the lowest level in 57 years.

Monday, November 15^th

• President-elect Trump confirmed that he plans to declare a national emergency and use the military for mass deportations of immigrants in the U.S. illegally. Trump’s team is reportedly working to craft executive orders that can withstand legal challenges from immigration advocates to avoid court losses like the one he suffered over his 2017 Muslim ban. Trump also plans to quickly end the Biden Administration’s special visa-free parole process for immigrants from Cuba, Haiti, Nicaragua and Venezuela. On November 17^th, incoming Senate Homeland Security Committee Chair Rand Paul (R-KY) denounced the possibility of using the U.S. military for deportations, saying he would not support “an emergency to put the Army into our cities,” calling it “a huge mistake.”

• The White House formally requested Congress pass a $98.6 billion supplemental spending bill for disaster relief this year, with President Biden declaring that additional resources “are critical to continue to support” communities impacted by Hurricanes Helene and Milton and other disasters, including the Maui wildfires and the Francis Scott Key Bridge collapse in Baltimore.

Friday, November 15^th

• A federal judge for the U.S. District Court for the Eastern District of Texas struck down the Department of Labor’s (DOL) final rule on “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees,” that would have made about 4 million more salaried U.S. workers eligible for overtime pay. U.S. District Judge Sean Jordan said that the rule improperly bases eligibility for overtime pay on workers’ wages rather than their job duties. The rule would have required employers to pay overtime premiums to salaried workers who earn less than $1,128 per week, or about $58,600 per year, when they work more than 40 hours in a week, beginning Jan. 1, 2025, and it had temporarily raised the threshold to about $44,000 per year on July 1. The previous threshold of about $35,500, which was set in 2019, will now be back in effect. DOL can seek review of the ruling in the New Orleans-based 5th U.S. Circuit Court of Appeals, which is widely regarded as the most conservative federal appeals court.

Thursday, November 14^th

• The White House Office of Information and Regulatory Affairs (OIRA) announced that it is reviewing the Occupational Safety and Health Administration’s (OSHA) final rule on “Personal Protective Equipment in Construction.” This rulemaking would specifically require that the PPE construction employers are required to provide properly fit workers. Under the rule, “proper fit” means the PPE is the appropriate size to provide an employee with the necessary protection from hazards and does not create additional safety and health hazards arising from being either too small or too large. OIRA review is typically the final step in the regulatory process before an item is published in the Federal Register.

• National Labor Relations Board (NLRB) member David Prouty suggested that NLRB Chair Lauren McFerran will likely leave the agency in December if the Senate fails to confirm her to a third term during the lame duck Congressional session. This would clear the way for a Republican Board majority early in the Trump administration.

Wednesday, November 13^th

• The National Labor Relations Board (NLRB) issued a decision in the Amazon.com Services, LLC ruling that employer-mandated “captive audience” meetings violate the National Labor Relations Act (NLRA). In its ruling, the NLRB overruled Babcock & Wilcox Co. and explained that such meetings violate Section 8(a)(1) of the NLRA because they have a reasonable tendency to interfere with and coerce employees in the exercise of their rights to join a union. However, the NLRB clarified that an employer may lawfully hold meetings with workers to express their views on unionization so long as workers are provided with reasonable advance notice of: (1) the subject of any such meeting; (2) that attendance is voluntary with no adverse consequences for failure to attend; and (3) that no attendance records of the meeting will be kept. The NLRB made clear that this new standard will be applied prospectively only, to appropriately accommodate the reasonable reliance employers may have previously placed on Babcock & Wilcox. NLRB Members Prouty and Wilcox joined Chairman McFerran in issuing the decision. Member Kaplan dissented. On Thursday, House Education and the Workforce Committee Chair Virginia Foxx (R-NC) responded to the NLRB’s ruling, saying the decision is “a blatant attempt to interfere with the lawful right of employers to communicate with their employees and tilt the playing field in the favor of Big Labor.”

• The Environmental Protection Administration (EPA) released its third annual progress report (available here) highlighting key EPA accomplishments under the national strategy to eliminate per- and polyfluoroalkyl substances or “forever chemicals” in communities across the country.

• More than 100 trade groups have signed a letter led by the ERISA Industry Committee, a trade group for large employer health plans, to push for legislation to increase the accountability of pharmacy benefit managers (PBMs). Among other priorities, the letter suggests banning spread pricing (i.e., charging a health plan sponsor more for a prescription drug than they charge to a pharmacy), requiring 100% pass-through to plan sponsors and patients of rebates, discounts, fees, and other payments from drug manufacturers, and de-linking PBM profits from list prices for drugs. 

Tuesday, November 12^th

• The Centers for Medicare & Medicaid Services (CMS) released the 2025 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs, and the 2025 Medicare Part D income-related monthly adjustment amounts. Tables with Part B Immunosuppresive Drug Coverage and full Part B Coverage, Part A deductible and coinsurance amounts for calendar years 2024 and 2025, and Part D income-related monthly adjustment amounts are all available here. 

• The Pharmaceutical Research and Manufacturers of America (PhRMA) launched a major ad campaign pressing lawmakers to move forward on long-debated pharmacy benefit manager (PBM) reforms amid uncertainty over what will be included in a potential lame-duck health care package. PhRMA’s new national ad, launched Monday (Nov. 11), claims PBMs treat medicines as profit centers, pushing up costs for both patients and the health care system, and calls for PBMs to pass drug rebates and discounts directly to patients to help lower out-of-pocket costs.

Monday, November 11^th

• At an event in New York, Senate Majority Leader Chuck Schumer (D-NY) expressed confidence that the CHIPS and Science Act will survive under a Republican-led Congress. Schumer noted that the law passed with several Republican votes, including former Senate Minority Leader Mitch McConnell (R-KY) and 24 Republicans in the House. Moreover, Speaker Mike Johnson (R-LA) has walked back earlier remarks that the legislation may be targeted for repeal next Congress.

Around the Country 

Northeast 

• On November 21^st, Sen. Bob Casey (D-PA) conceded the Pennsylvania U.S. Senate to Republican Dave McCormick following a statewide recount.

• On November 21^st, the Department of Justice (DOJ), the Environmental Protection Agency (EPA), and the Commonwealth of Pennsylvania announced two separate settlement agreements with oil and gas operators XTO Energy and Hilcorp Energy Company to resolve claims the companies violated the Clean Air Act and Pennsylvania’s Air Pollution Control Act with their production operations in the state. XTO agreed to pay a $4 million civil penalty and undertake a project to eliminate methane emissions from orphaned wells and nearly 120 tons of volatile organic compound emissions annually. Hilcorp agreed to pay a $1.275 million penalty and will undertake a project to retrofit at least 164 pneumatic controllers that emit pollution with non-emitting process controllers at eight of the company’s facilities located in Lawrence and Mercer Counties, Pennsylvania.

• On November 20^th, the National Labor Relations Board (NLRB) announced that on November 4, 2024, Region 29-Brooklyn obtained a settlement agreement against Maxwell Plumb Mechanical Corp. (Maxwell), a plumbing and HVAC company located in Glendale, New York to resolve three unfair labor practice charges filed by Plumbers Local No. 1 of the United Association (UA) alleging that Maxwell required employees to sign an unlawful “stay-or-pay” contract or “training repayment agreement provision” (i.e., a requirement that employees reimburse the employer for training costs if the employees stop working for them), unlawfully terminated three employees, and unlawfully interfered with employees’ union and protected activities. Pursuant to the settlement agreement, Maxwell must reinstate three unlawfully terminated employees and provide $81,000 in compensation for backpay and financial damages that they suffered because of Maxwell’s conduct. In addition, the settlement requires Maxwell to post a Notice to Employees with information about their rights under the National Labor Relations Act.

• On November 18^th, Democratic Rep. Jared Golden (ME) defeated Maine state Rep. Austin Theriault (R) in the race for Maine’s 2^nd Congressional District.

• On November 15^th, the Department of Transportation (DOT) announced nearly $1.5 billion from the Bipartisan Infrastructure Law for 19 projects along the Northeast Rail Corridor (NEC) that will repair and replace infrastructure along the NEC. Selected projects receiving funding under this announcement include: (1) up to $397.2 million for the Mid-Atlantic OCS Replacement Program Phase 1 in Pennsylvania to replace and upgrade the catenary power system on an 18-mile segment of the Amtrak-owned Keystone Line between the Zoo substation in Philadelphia and the Paoli substation in Paoli, PA; (2) up to $24 million for the Washington Union Station Expansion Project in Washington, DC to construct a new bus facility, parking garage, and train hall, and improve bicycle and pedestrian infrastructure; (3) up to $13.4 million for the County-Newark Catenary Upgrades Project in New Jersey to replace and upgrade the catenary system along a 23-mile stretch of the Northeast Corridor between New Brunswick and Newark, NJ; and (4) up to $2.5 million for the Hartford Station Relocation Project in Connecticut for construction of a new Hartford train station and multimodal hub with associated realignment and double tracking of 2.1 miles of the New Haven-Hartford-Springfield corridor in Hartford, CT. The full list of projects is available here.

• On November 14^th, Sen. Susan Collins (R-ME) said she plans to run for a sixth term in the U.S. Senate, buoying Republicans’ hopes of retaining her seat in a 2026 cycle that features a tough map for Republicans. 

• On November 13^th, the White House announced three upcoming projects in Philadelphia, PA that will be covered by the Geographic and Economic Hiring Preferences Pilot Program, which establishes goals for hiring 50% of apprentices and 20% of journeypersons on public works projects from economically disadvantaged neighborhoods. The projects include: (1) two federally funded transportation projects identified by the City of Philadelphia’s Streets Department; and (2) an $87 million lead service line project from the Philadelphia Water Department.

• On November 13^th, Rep. Marc Molinaro (R-NY) announced he is entertaining the idea of returning to Congress by moving to New York’s 21^st Congressional District following Rep. Elise Stefanik’s (R-NY) nomination to be United Nations Ambassador. Molinaro lost recently lost re-election to New York’s 19^th Congressional District to Democrat Josh Riley. 

West

• On November 21^st, Rep. Robert Garcia (D-CA) announced the launch of the pro-housing “Yes In My Back Yard” (YIMBY) Caucus to promote the development of affordable housing units nationwide. The YIMBY Caucus will focus on encouraging new housing development, removing zoning rules and other barriers to the construction of new homes, and investing in the infrastructure needed to address the affordable housing crisis.

• On November 18^th, the Interior Department (DOI) announced $125 million in funding from the President’s Bipartisan Infrastructure Law to support projects in California and Utah through DOI’s new Large-Scale Water Recycling Program, which funds water infrastructure projects including water purification and reuse, water storage and conveyance, desalination, and dam safety. The projects include: (1) $60.4 million for the City of San Buenaventura’s Ventura Water Program, estimated to produce 3,600 acre-feet of recycled water annually; (2) $30 million for the Los Angeles Groundwater Replenishment Project, estimated to produce 26,000 acre-feet annually; (3) $26.2 million for the Metropolitan Water District of Southern California Pure Water Southern California, estimated to produce 118,590 acre-feet annually; and (4) $10.8 million for the Inland Empire Utilities Agency of California Advanced Treatment of Recycled Water to Enhance Chino Basin Resiliency Project, estimated to produce 15,000 acre-feet annually.

• On November 13^th, California State Rep. Dave Min (D) defeated Republican Scott Baugh in California’s 47^th Congressional District.   

• On November 13^th, California Rep. Mike Levin (D) defeated Republican Matt Gunderson in the race for California’s 49^th Congressional District.

• On November 12^th, California Rep. Ken Calvert (R) defeated Democrat Will Rollins in the race for California’s 41^st Congressional District.

Northwest 

• On November 19^th, the Oregon Capitol Chronicle reported that the Teamsters Council in Oregon, Idaho and Southwest Washington was one of about 20 unions to back Rep. Lori Chavez-DeRemer (R-OR) in her unsuccessful run for reelection, and that her father was a Teamster. The article goes on to detail that she is one of only three House Republicans to cosponsor the Richard L. Trumka Protecting the Right to Organize (PRO) Act, a Democratic priority which would weaken state “right-to-work” laws to allow unions to collect dues from all employees, increase penalties for employers who violate labor law and strengthen employees’ legal rights to join a union.

Midwest 

• On November 20^th, Rep. Marcy Kaptur (D-OH) defeated Republican Derrick Merrin in Ohio’s 9^thCongressional District.

• On November 18^th, Wisconsin Republican Eric Hovde conceded defeat to Democratic Sen. Tammy Baldwin (WI) in the Wisconsin U.S. Senate race.

• On November 5^th, Nebraska voters approved a ballot initiative that requires employers with fewer than 20 employees to provide up to 40 hours (five days) of sick leave annually, and larger employers with more than 20 employees to provide up to 56 hours (seven days) of sick leave annually. 

Southeast

• On November 18^th, Florida Gov. Ron DeSantis (R-FL) said that he will likely decide by January on who will replace Sen. Marco Rubio (R-FL), who was recently nominated to be President-elect Trump’s Secretary of State. This comes as Sen. Rick Scott (R-FL) said he has talked with RNC co-chair Lara Trump about her interest in filling Rubio’s Senate seat. Lara Trump reportedly made it clear that she would love to be appointed to Rubio’s seat.

• On November 13^th, Dominion Energy Inc.’s CEO Bob Blue said that the huge increase in power demand from data centers and artificial intelligence (AI) creates a conflict between maintaining a reliable grid and cutting carbon emissions. Virginia, where Dominion is based, is the global center of the rapidly expanding data-center industry and the company projects that its power demand will double by 2039. To help meet that increase, Dominion plans to build large amounts of solar, wind—including the biggest offshore wind farm in the US—and gas power, as well as battery storage. 

• On November 5^th, Missouri voters approved a ballot initiative that requires employers to provide one hour of paid sick time for every 30 hours worked, up to five days per year for small businesses (i.e., those with fewer than 15 employees) and seven days per year for larger businesses. 

Southwest

• On November 15^th, the Department of Commerce announced the award of up $6.6 billion in funding to TSMC Arizona Corporation (TSMC Arizona), a subsidiary of Taiwan Semiconductor Manufacturing Company Limited (TSMC), under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. This award will support TSMC’s investment of more than $65 billion to construct three leading-edge semiconductor fabrication facilities in Phoenix, Arizona. The first fabrication facility is set to open and start production in the first half of 2025, the second fabrication facility is expected to open and start production in 2028, and the third fabrication facility is set to open and begin production by the end of the decade. The facilities are projected to create over 20,000 accumulated construction jobs and over 6,000 direct manufacturing jobs.

• On November 15^th, the Environmental Protection Agency (EPA) announced a Water Infrastructure Finance and Innovation Act (WIFIA) loan of $156 million to the City of Pflugerville, Texas to support drinking water infrastructure upgrades. This WIFIA loan will enable Pflugerville to plan, design, and construct three drinking water projects. The city will expand its water treatment plant and increase the capacity of the existing drinking water distribution system by upsizing pipes, constructing a new secondary Colorado River Raw Water Line, and upgrading pump stations. 

• On November 12^th, the Labor Department (DOL) announced that its Wage and Hour Division renewed a memorandum of understanding with the Travis County District Attorney’s Office in Austin, Texas for another five-year term to improve the protection of the county’s workforce and enforcement of wage laws, and to level the playing field for responsible employers.

• On November 12^th, Exxon Mobil Corp agreed to sell conventional oil drilling assets in the Permian Basin of Texas and New Mexico to privately-owned Hilcorp Energy for around $1 billion.

• On November 12^th, Rep. Ruben Gallego (D-AZ) defeated Republican Kari Lake in the Arizona U.S. Senate race.

Alaska and Hawaii 

• On November 21^st, Republican Nick Begich defeated Rep. Mary Peltola (D-AK) in the race for Alaska’s at-large Congressional District. 

• On November 5^th, Alaska voters approved a ballot initiative that requires employers to grant an hour of paid sick leave for every 30 hours workers, with a cap of 40 hours for small companies and 56 for larger companies.

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, September 30, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

MCAA Issues and Interests

Independent Contractors and Misclassification of Workers 

Foxx Subpoenas Acting DOL Secretary Su Regarding Biden Administration Efforts on Employee Misclassification 

While MCAA has been applauding the Biden Labor Department’s aggressive efforts to fight the misclassification of workers in our industry and the broader construction industry, last Monday Rep. Virginia Foxx (R-NC), the Chair of the House Education and Workforce Committee, expressed her displeasure with DOL’s efforts on this front by subpoenaing Acting Labor Secretary Julie Su for information about the Biden DOL’s “efforts to eliminate the independent contractor model and classify as many workers as possible as employees.” In the subpoena, Foxx seeks: (1) the total number of instances of misclassification that Labor Department inspectors have found; (2) the total number of misclassification enforcement investigations initiated, including the industry of those involved; and (3) the total number of misclassification enforcement investigations in which the Labor Department has collaborated with the National Labor Relations Board and the Federal Trade Commission. The subpoena requests responses by October 7, 2024.

Growing Speculation As To Who Will Run the Department of Labor

This week, speculation to who may be Secretary of Labor and hold other cabinet posts if Vice President Harris is elected President reached a new level. There is widespread speculation that California Senator Laphonza Butler, who chose not to run for a full term to replace Senator Diane Feinstein after being appointed to fill the remainder of her term, is being considered as a replacement for Julie Su at the Labor Department. In Republican circles, some of the names being discussed for Labor Secretary if President Trump wins include Patrick Pizzella, who was Deputy Secretary of Labor in Trump’s first term and Virginia Labor Secretary Brian Slater, who served at the Departments of Labor and Transportation during Trump’s first term.  

Pension Reform

PBGC Seeks Nominations for Employer Representatives to Agency’s Advisory Committee by October 28, 2024

Last Thursday, September 27^th, the Pension Benefit Guaranty Corporation (PBGC) requested nominations by October 28, 2024 to fill three seats on the agency’s Advisory Committee that are set to expire after the November elections in February 2025. Two of the seats represent employers—like MCAA members—who maintain PBGC-insured defined benefit pension plans and one seat representing the general public. The PBGC Advisory Committee is responsible for advising the PBGC on investment policy and other matters related to the PBGC’s mission to provide insurance to both multiemployer and single employer defined benefit pension plans. Overall, the Advisory Committee comprises seven members: two representing employee organizations, two representing employers who maintain pension plans, and three representing the public. If anyone within MCAA is interested in serving, nominations should: (1) state the person’s qualifications to serve on the Advisory Committee, including any specialized knowledge or experience, such as current or past service as a trustee of a defined benefit multiemployer pension plan relevant to the nominee’s proposed Advisory Committee position representing employers who maintain pension plans; (2) state that the candidate will accept appointment to the Advisory Committee if offered; (3) include the nominee’s full name, work affiliation, mailing address, phone number, and email address; (4) include the nominator’s full name, mailing address, phone number, and email address; and (5) include the nominator’s signature. Nominations are due by October 28, 2024 and can be submitted by email to OfficeOfTheDirector@pbgc.org. 

Non-Compete Agreements

FTC Appeals Ruling Temporarily Blocking Final Rule Banning Non-Compete Agreements 

MCAA has long voiced its concerns about the Federal Trade Commission’s (FTC) final rule banning most noncompete agreements.  The regulation is currently on hold after two district courts enjoined its enforcements. MCAA is closely monitoring the ongoing litigation over this final rule. Last Wednesday, September 26^th, the FTC filed a notice of appeal to the U.S. Eleventh Circuit Court of Appeals seeking to overturn a Florida District Court’s ruling temporarily blocking the FTC’s final rule banning most non-compete agreements. The appeal comes as the FTC faces a separate October 19^th deadline to appeal to the U.S. Fifth Circuit Court of Appeals the Texas Federal District Court injunction against this regulation. 

Decarbonization

There were several developments on the decarbonization front last week:

Harris Campaign Evasive on “Green New Deal”

While Vice President Harris has been clear that if she is elected President she will seek an exception to the Senate filibuster to enact legislation to protect reproductive rights, her campaign is being notably silent and evasive as to whether she would also seek an exception to the filibuster to enact “Green New Deal” legislation. She vowed to do when she was running for President in 2019. Reporters are trying to pin her campaign down on whether she still supports doing so. 

EPA Announces Final Rule to Minimize Releases of HFCs by Addressing Leaks from Refrigerant-Containing Equipment and Offering Related Webinars for Stakeholders

As mentioned above, on Monday September 23^rd, the Environmental Protection Agency (EPA) announced its final rule establishing the Emissions Reduction and Reclamation (ER&R) program under the American Innovation and Manufacturing (AIM) Act to minimize releases of hydrofluorocarbons (HFCs) from leaks in air conditioners and refrigeration systems and to maximize the reuse of existing HFCs. The final ER&R program includes requirements for repairing leaking equipment, the installation and use of automatic leak detection systems on large refrigeration systems, using reclaimed HFCs to service certain existing equipment, and removal of HFCs from disposable cylinders before they are discarded. The regulations also establish a standard that limits the amount of new HFCs that can be contained in reclaimed HFC refrigerants. Additionally, the EPA is establishing alternative standards under the Resource Conservation and Recovery Act for ignitable spent refrigerants when recycled for reuse. The EPA also released a fact sheet, a frequently asked questions page, a regulatory impact analysis addendum, and a pre-publication copy of the final rule. Additionally, the EPA will hold webinars on October 17, 2024 (register here) and October 22, 2024 (register here) on the final rule that will include a Q&A period to address questions about the new regulations and their impact on stakeholder operations, and cover the phasedown and key dates in the AIM Act timeline.

Treasury and DOE Announce Receipt of 50K Applications for Clean Energy Projects through the Section 48(e) Low-Income Communities Bonus Credit Program

Last Tuesday, September 24^th, the Energy (DOE) and Treasury Departments announced the receipt of more than 50,000 applications requesting over six gigawatts of capacity for clean energy projects across the U.S. in the 2024 program year of the Inflation Reduction Act’s Section 48(e) Low-Income Communities Bonus Credit Program. The agencies also announced that applications will continue to be accepted on a rolling basis until October 10, 2024. The closure of the application window for the 2023 program year follows Treasury’s publication earlier this month of proposed guidance for the Clean Electricity Low-Income Communities Bonus Credit Program, which builds upon and opens the Low-Income Communities Bonus Credit Program to additional clean energy technologies beyond wind and solar, such as hydropower and geothermal. 

CFTC Approves Final Guidance Regarding the Listing of Voluntary Carbon Credit Derivative Contracts 

Late on Friday September 20^th, the Commodity Futures Trading Commission (CFTC) approved final guidance regarding the listing for trading of voluntary carbon credit derivative contracts. The guidance applies to designated contract markets (DCMs), which are CFTC-regulated derivatives exchanges, and outlines factors for DCMs to consider when addressing certain requirements under the Commodity Exchange Act (CEA) and CFTC regulations that are relevant to the listing for trading of voluntary carbon credit derivative contracts. The guidance also outlines factors for consideration when addressing certain requirements under the CFTC’s Part 40 Regulations that relate to the submission of new derivative contracts and contract amendments to the CFTC. The final guidance is available here.

Other Interesting Things Since Our Last Report 

Thursday, September 26^th

• Political data website FiveThirtyEight debuted its polling averages for 2024 Senate races and, as discussed above, three of the five most competitive races are in Florida, Texas, and Nebraska, where Republican incumbents led by fewer than five points in each. These three races are polling more competitively than high-profile swing-state Senate races in Nevada, Michigan, and Pennsylvania, where Democrats are trying to retain Senate seats. 

Wednesday, September 25^th

• The Labor Department (DOL) announced $71 million in grants to support 27 organizations serving 14 states and the District of Columbia to improve job quality and expand access to good jobs in critical sectors, including: (1) nearly $38 million through the second round of the Building Pathways to Infrastructure Jobs Grant Program for 13 public-private partnerships between unions, employers, workforce development partners, and state apprenticeship agencies in California, Colorado, Georgia, Illinois, Maryland, Nevada, New York, Pennsylvania, and Texas to train workers for good-paying infrastructure, advanced manufacturing, professional, scientific, and technical services jobs that support the renewable energy, transportation, and broadband infrastructure sectors; and (2) nearly $20 million in Workforce Pathways for Youth demonstration grants to six national organizations that provide workforce development and training programs to youth aged 14 to 21 years. A full list of recipients receiving funding through this award is available here.
  
• The Environmental Protection Agency (EPA) announced $49 million in funding for technical assistance providers in rural, small, and Tribal communities to provide training on water infrastructure and management best practices, assess water quality challenges, help communities navigate the federal funding application process, and strategically invest in reliable infrastructure solutions. The EPA identified four priorities for this funding, including: (1) acquisition of financing and funding through the Bipartisan Infrastructure Law and other funding opportunities; (2) assistance to communities with households relying on septic systems and other decentralized systems; (3) improvement of technical, managerial, and financial capacity; and (4) training and technical assistance to Tribes across all areas of their Clean Water Infrastructure. The notice of funding opportunity (NOFO) is available here and a frequently asked questions (FAQ) page for the Water Technical Assistance Program NOFOs is available here.
  
• The Department of Justice released a revised version of its guidance entitled, “Evaluation of Corporate Compliance Programs” that federal prosecutors use to assess a company’s compliance program when it comes under investigation for bribery, fraud, or other criminal offenses. The revised guidance includes, among other things, new language on consideration of a company’s use of artificial intelligence, how companies should handle whistleblowers, and how they should incorporate data and lessons learned from prior misconduct within their business and at other companies. 

• House Minority Leader Hakeem Jeffries (D-NY) went after Trump for reversing course on the state and local tax (SALT) deduction, noting it was “Trump and extreme MAGA Republicans” who imposed the “draconian cap on the state and local tax deduction that has cost middle class Americans thousands of dollars in increased taxes.”

Tuesday, September 24^th

• The Labor Department announced the release of its Artificial Intelligence (AI) & Inclusive Hiring Framework, a new tool designed to help employers reduce the risks of creating unintentional forms of discrimination and barriers to accessibility as they implement AI hiring technology and to help workers and job seekers navigate the potential benefits and challenges they may face when encountering AI-enabled technologies. The framework (available here) has 10 focus areas, including practices, goals and sample activities that employers can adopt in their AI governance and disability-inclusive hiring initiatives. Each area has information on maximizing benefits and managing risks for workers and job seekers when an organization assesses, acquires, or deploys an AI hiring technology.
  
• The Interior Department (DOI) announced $92 million in funding from the President’s Bipartisan Infrastructure Law for 19 projects to restore and protect aquatic ecosystems in California, Idaho, Nevada, New Mexico, Oregon, and Washington State, including infrastructure projects related to water storage, dam safety, water purification and reuse, and desalination. A full list of projects funded through this announcement is available here. 
  
• Former President Trump said if he were elected, he would reward U.S.-based manufacturers with expanded research and development (R&D) tax credits, which would allow businesses to “write off 100% of the cost of heavy machinery and other equipment in the first year.” If implemented, this proposal would reverse a major component of Trump’s 2017 Tax Cuts and Jobs Act, which phased out such R&D tax credits.

• White House climate adviser Ali Zaidi said the Biden Administration is racing to push out the billions of dollars in clean energy investments included in the Inflation Reduction Act—a pledge that comes as Trump is vowing to dismantle the whole effort. 

• Senate Republicans privately told their biggest donors that the Montana Senate race is nearly in the bag and that Ohio is trending in Republicans’ direction, explaining that Trump holds a nine-point lead in the state and GOP Senate candidate Bernie Moreno is only trailing incumbent Sen. Brown (D-OH) by two points. 

• The Congressional Leadership Fund (CLF), the top House GOP super PAC, announced $18.5 million in ad reservations to aid: (1) Rep. Mariannette Miller-Meeks (R-IA) in Iowa’s 2st Congressional District; (2) Republican Scott Baugh in California’s 47^th Congressional District; (3) Rep. Mike Lawler (R-NY) in New York’s 17^th Congressional District; (4) Rep. Anthony D’Esposito (R-NY) in New York’s 4^th Congressional District; (5) Rep. Marc Molinaro (R-NY) in New York’s 19^th Congressional District; and (6) Republican Tom Barrett in Michigan’s 7^th Congressional District. CLF also added $2.6 million in California which could be used to help incumbent Reps. Mike Garcia (R-CA-27), Michelle Steel (R-CA-45), or Ken Calvert (R-CA-41).

Monday, September 23^rd

• The U.S. Climate Alliance, a coalition of 24 governors, announced a pledge to train one million new apprentices for climate and clean power industries over the next decade by working with labor unions and industry, among others. The program, dubbed the Governors’ Climate-Ready Workforce Initiative, aims to boost clean energy jobs by ensuring paths to career growth and good salaries and targeting underrepresented populations to take clean jobs, including as heat pump installers, solar panel manufacturers, and electric vehicle technicians. The news comes one year after the alliance pledged to install 20 million new heat pumps by 2030, a goal that Washington Gov. Jay Inslee (D) said is ahead of schedule.

Friday, September 20^th

• The Department of Energy (DOE) announced the availability of $3 billion in funding from the Bipartisan Infrastructure Law for 25 projects across 14 states to extract, process, and recycle critical minerals and materials and manufacture key battery components, as well as support next-generation battery manufacturing. The selected projects span strategic segments across the supply chain by building and expanding commercial-scale facilities to both extract and recycle critical minerals including lithium, graphite, and manganese, as well as to manufacture components of batteries. The selected projects also cover traditional and next-generation lithium-ion chemistries, as well as non-lithium-ion technologies, to ensure that the U.S. has a diverse portfolio of domestic battery technologies that can strengthen our overall energy security. The projects, once fully contracted, are projected to support over 8,000 construction jobs and over 4,000 operating jobs. DOE notes that more than half of the awardees have committed to or already have signed a Project Labor Agreement commitment with union partners including, among others, the United Association (UA), North America’s Building Trades Unions (NABTU), the United Brotherhood of Carpenters (UBC), and the United Food and Commercial Workers International Union (UFCW). The full list of award recipients can be accessed here.

Around the Country 

Northeast 

• Last week, the New York Congressional delegation did not show much support for New York City Mayor Adams after federal prosecutors unveiled a 57-page indictment against him alleging that he engaged in widespread corruption, including by conspiring with the Turkish government to receive illegal foreign campaign contributions. The indictment also accuses Adams of seeking and accepting improper benefits since at least 2014, when he was Brooklyn Borough President. Senate Majority Leader Chuck Schumer (D-NY) was asked about Adams’ indictment but put his phone to his ear and told a reporter he couldn’t talk because he was on the phone with his doctor. House Democratic Leader Hakeem Jeffries (D-NY) issued a statement saying that, “Adams is entitled to the presumption of innocence” and that “a jury of the Mayor’s peers will now evaluate the charges in the indictment and ultimately render a determination.” Progressive Rep. Alexandria Ocasio-Cortex (D-NY) called on Adams to resign “for the good of the City.” At a press conference on Thursday in response to the indictment, Adams was drowned out by protestors from the Black Lives Matter Greater New York Chapter, whose members shouted, “You’re a disgrace to Black people in this City.” The indictment comes as former New York Gov. Andrew Cuomo (D) is signaling to allies that he is preparing a run for mayor of New York City. 

• On September 25^th, the Energy Department (DOE) announced $17 million in grants to 22 local governments and the state of New York through the Bipartisan Infrastructure Law’s Energy Efficiency and Conservation Block Grant (EECBG) Program. The funding will be used to, among other things, help low-income households complete energy assessments and efficiency upgrades and to help municipal facilities conduct electrification studies, purchase electric vehicle charging stations, and install solar arrays and battery storage systems. A full list of projects funded under this award and to date through the EECBG is available here.

• On September 24^th, the New York Times published an article accusing Rep. Anthony D’Esposito (R-NY) of giving his lover and his fiancée’s daughter part-time jobs in his district office on Long Island, a potential violation of House ethics rules. D’Esposito reportedly hired the pair shortly after taking office in 2023, together paying them nearly $30,000 in taxpayer funds. The report could be a drag on D’Esposito’s tight re-election effort in New York’s 4^th Congressional District—one of the most hotly contested House races in the country.

West

• On September 26^th, the Labor Department announced that it recovered $69,050 in back wages and an equal amount in liquidated damages for 27 plumbers employed by Bulletproof Plumbing and Heating Inc. of Colorado Springs, CO who were not paid overtime wages. 

• On September 25^th, nuclear startup Oklo announced that the Energy Department granted approval for the company to conduct site investigations for its plans to build a prototype of its small scale nuclear power plant at the Idaho National Laboratory. Oklo’s design is being viewed as a key to powering data centers and many tech leaders have invested in the company. The site investigations will focus on infrastructure planning, environmental surveys and geotechnical assessments. The project still requires approval from the Nuclear Regulatory Commission (NRC), but Oklo’s goal is to break ground at the Idaho site in 2026 and have the reactor up and running by 2027.

• On September 25^th, the Interior Department (DOI) announced $9.9 million in funding to address dangerous and polluting abandoned mine lands in Colorado. Projects receiving funding will support jobs in coal communities that close dangerous mine shafts, reclaim unstable slopes, improve water quality by treating acid mine drainage, and restore water supplies damaged by mining. Awards can also enable economic revitalization by reclaiming hazardous land for recreational facilities and other redevelopment, such as advanced manufacturing and renewable energy deployment.

Northwest 

• On September 23^rd, the Energy Department (DOE) announced up to $112.5 million in funding to accelerate the design, fabrication, and testing of multiple wave energy converters (WECs), which harness power from ocean waves. The funding will help identify and mature high-potential WEC technologies, reduce financial risks for developers and incentivize investors, progress technologies at smaller scales while developing toward utility scale, and increase learning for installation, operations, and maintenance. WECs with utility applications will be tested at PacWave South, a test facility for wave energy technology located off the coast of Newport, Oregon. The full funding opportunity is available here and an informational webinar will be held on October 9, 2024 to discuss the funding opportunity and areas of focus. (Registration is available here by clicking “informational webinar.”)

Midwest 

• On September 24^th, the Commerce Department announced a $123 million grant for Polar Semiconductor to expand its manufacturing facility in Bloomington, Minnesota, which will allow the company to nearly double its U.S. production capacity of power and sensor chips. President Biden hailed the announcement, which is the first Commercial Fabrication Facilities Award under the CHIPS and Science Act (CHIPS Act). The award is expected to create over 160 manufacturing and construction jobs in Minnesota. Consistent with language approved as part of the CHIPS Act, this grant requires that all laborers and mechanics employed on the project be paid Davis-Bacon prevailing wages.

• On September 23^rd, National Economic Advisor Lael Brainard travelled to Detroit, MI to convene the Michigan Workforce Hub and announced new actions to support automakers and auto workers, including: (1) the launch of a joint effort with the Michigan Department of Labor, IBEW, and AFL-CIO Workforce Development Institute for an accelerated Commercial Driver’s License to Registered Apprenticeship Program pilot; (2) a partnership between DOL’s Women’s Bureau and Accelerator for America in the city of Lansing to increase representation of women in construction and skilled trades through the Leveraging Infrastructure Networks for Equity Initiative; (3) a joint DOE-industry effort to provide $23.6 million in funding for the Battery Workforce Challenge to “invest in equipment, technical support, mentorship, internships, and job placements and train up to 14,000 workers across the country for careers across the EV value chain—including technicians, electricians, skilled trades, and engineers”; (4) $1 billion in financing for small- and medium-sized auto suppliers; and (5) a new DOL pilot program to train workers in Wayne County for jobs in the auto supply chain.

Southeast

• On September 26^th, the Environmental Protection Agency (EPA) announced that it will hold a joint meeting with the Justice Department (DOJ) on October 10—11, 2024 to receive community input on mid- and long-term solutions to improve Jackson, Mississippi’s drinking water system to assist the agency’s oversight of the system. On November 29, 2022, a District Court in Mississippi entered an Interim Stipulated Order agreed to by the EPA, DOJ, the Mississippi State Department of Health, and the City of Jackson to, among other things, create a Priority Projects List with steps needed to stabilize the City’s drinking water system, remedy problems that contributed to the water crisis and establish sustainable practices, and to delay further litigation while the parties worked on a longer-term solution. The meeting will be held at the Mississippi e-Center at Jackson State University located at 1230 Raymond Road, Jackson, MS 39204 in the e-Logistics Room on October 10, 2024 at 6pm CT and in the California Room on October 11, 2024 at 10am CT.

Southwest

• On September 26^th, a new poll found incumbent Sen. Ted Cruz (R-TX) leading Rep. Colin Allred (D-TX) by just four points (49%-45%) in the Texas U.S. Senate race. 

• On September 23^rd, former GOP Rep. Liz Cheney (WY) endorsed Democratic Rep. Colin Allred (D-TX) in his U.S. Senate race against incumbent Sen. Ted Cruz (R-TX).

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, September 23, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

MCAA Issues and Interests 

Registered Apprenticeship

House Advances USA Workforce Investment Act

On September 11^th, House Ways and Means passed out of Committee the “USA Workforce Investment Act” (H.R. 9461), that would allow a credit against tax for charitable donations to nonprofit organizations providing workforce training. The MCAA and our union partners opposed the bill because it was drafted to not allow a tax credit for contributions to registered apprenticeship plans created through a collectively bargained agreement. MCAA is also concerned that the bill lacks any meaningful quality standards for workforce training programs that may receive this credit.   

Despite our efforts, the bill advanced out of Committee on a party-line vote of 22-15. The MCAA was able to help persuade Rep. Brian Fitzpatrick (R-PA), Rep. Nicole Malliotakis (R-NY), and Rep. Mike Carey (R-OH)  to abstain from voting on the bill, and to get all Democrats on the Committee to oppose the bill. While we are disappointed that the bill advanced out of Committee, we believe our outreach demonstrated that this bill has problems since three Republicans left the markup to avoid voting on it and made their concerns about it clear to the Chairman. The government relations team is confident we can turn back the effort to move the bill before the November elections.

DOL National Apprenticeship Modernization Rule

In addition to our work on the “USA Workforce Investment Act,” over the last two weeks and throughout the August recess, the MCAA policy team continued our outreach to the Department of Labor regarding changes we requested to the Department’s rulemaking on “National Apprenticeship System Enhancements” in joint comments that we filed with the UA in March 2024. The final rule has been pending review by the White House Office of Information and Regulatory Affairs (OIRA) since June 14, 2024. We have been stressing the concerns highlighted in the joint comments the MCAA and the UA submitted on this rulemaking. We are also urging retention of some provisions of the proposed rule that we like. Given the long delay in the review at OIRA, we are confident some changes are being made and will continue pressing our concerns given that it is unclear whether some or all our concerns will be addressed. 

Project Labor Agreements and Davis-Bacon Prevailing Wage

Over the last two weeks, the MCAA continued its outreach from the August Congressional recess to oppose pending Congressional Review Act (CRA) resolutions to rescind MCAA-supported rulemakings on project labor agreements from the Federal Acquisition Regulatory Council and on Davis-Bacon prevailing wage from the Department of Labor. As lawmakers race to fund the federal government ahead of the September 30^th funding deadline, punt several must-pass bills like the National Defense Authorization Act to the lame duck session of Congress in November and December, and work to depart D.C. ahead of October to campaign, we are growing confident that we may be able to prevent these CRA resolutions from being considered. We are, however, continuing to closely monitor litigation against these rulemakings. 

Pension Reform

IRS Extends Deadlines for Retirement Plans to Update Plan Documents 

As we continue to engage Congress regarding the prospects for pension reform in the coming debate next Congress over reauthorizing provisions of the 2017 Tax Cuts and Jobs Act, we wanted to share that on September 12^th, the Internal Revenue Service (IRS) announced that it is extending deadlines for collectively bargained retirement plans and other retirement plans to update their documents to align with the revisions mandated by the SECURE Act; the SECURE 2.0 Act; the Coronavirus Aid, Relief, and Economic Security (CARES) Act; and the Taxpayer Certainty and Disaster Tax Relief Act. Collectively bargained plans now have until December 31, 2028, to amend their documents to be in compliance with these requirements.

Decarbonization

There were several developments on the decarbonization front over the last two weeks:

IRS Releases Proposed Rule on Alternative Fuel Vehicle Refueling Property Credit 

On September 19^th, the Internal Revenue Service (IRS) released a proposed rule regarding the “Section 30C Alternative Fuel Vehicle Refueling Property Credit.”  Comments on the proposed rule are due by November 18, 2024.

To qualify for the Section 30C credit detailed in the proposed rule, refueling property must be used to store or dispense “clean-burning fuel” or to recharge electric motor vehicles placed in service after December 31, 2022, and before January 1, 2033, within a low-income community or within a non-urban Census tract. “Clean-burning fuels” eligible for the Section 30C tax credit are: (1) electricity, (2) any fuel for which at least 85 percent of the volume consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquified natural gas, liquefied petroleum gas, or hydrogen; (3) any mixture that consists of two or more of the following: biodiesel, diesel fuel, or kerosene and at least 20 percent of the volume of which consists of biodiesel determined without regard to any kerosene in such mixture; and (4) any transportation fuel as defined under section 45Z(d)(5) of the Internal Revenue Code.

The credit amount for property not subject to depreciation is 30% of the cost of the qualified property placed in service during the tax year. The credit amount for depreciable property is 6% of the cost of the qualified property placed in service during the tax year but may be increased to 30% of the cost of the qualified property if the prevailing wage and apprenticeship requirements are satisfied. The proposed rule provides guidance on how to calculate the credit, including what constitutes an “item” of qualified alternative fuel vehicle refueling property, the additional costs considered in determining the cost of the item, and how to treat dual-use property.

An eligible census tract that qualifies for the credit is any population census tract that is a low-income community or any population census tract that is not an urban area. The proposed rule provides guidance for determining whether a population census tract is an eligible census tract. In conjunction with the release of the proposed rule, the IRS also issued Notice 2024-64 that modifies Notice 2024-20 published on February 12, 2024 to provide guidance on eligible census tracts and referring taxpayers to Appendix A and Appendix B containing eligible census tracts designated by a unique identifier called an 11-digit census tract GEOID. Notice 2024-64 modifies Notice 2024-20 by updating the mapping tools that taxpayers can use to identify the 11-digit census tract GEOID for a location where a property is placed in service. Notice 2024-64 also extends the applicability period of Notice 2024-20, as amended. More information is available on the IRS’ Alternative Fuel Vehicle Refueling Property Credit Website.

Phasedown of HFCs

As we continue to engage with federal agencies on the hydrofluorocarbons (HFCs) phasedown pursuant to the American Innovation and Manufacturing (AIM) Act of 2020, we learned that on September 13^th, the White House Office of Information and Regulatory Affairs completed its review of the Environmental Protection Agency’s (EPA) final rule entitled, “Phasedown of Hydrofluorocarbons: Management of Certain Hydrofluorocarbons and Substitutes Under Subsection (h) of the American Innovation and Manufacturing Act of 2020.” EPA’s proposed rulemaking covers practices, processes, or activities regarding the servicing, repair, disposal, or installation of equipment, for the purposes of maximizing the reclamation and minimizing the release of certain HFCs from equipment and ensuring the safety of technicians and consumers. Among other provisions, EPA proposed emissions reduction requirements for certain equipment containing HFCs and their substitutes as well as requirements for the reclaiming of HFCs.

EPA Issues Enforcement Alert Regarding Compliance Issues Related to Importation of HFCs

Relatedly, on September 9^th, the EPA issued an Enforcement Alert providing information on common compliance issues the agency has observed related to the importation of bulk hydrofluorocarbons (HFCs). So far in fiscal year 2024, the EPA has completed nine civil settlements to resolve claims of unlawful imports of HFCs. The most recent settlements were against five companies—Clean Venture, Inc.; HVAC Services; Liferafts Incorporated of Puerto Rico; Little Leaf Farms, LLC; and Parker Engineering and Mechanical, Inc. Each of these companies imported HFCs without allowances in violation of the AIM Act. The enforcement actions are authorized by the AIM Act of 2020.

Other Interesting Things Since Our Last Report

Thursday, September 19^th

• Ten GOP governors from Louisiana, New Hampshire, Tennessee, Virginia, Arkansas, Indiana, South Dakota, Oklahoma, Georgia, and Wyoming announced the formation of the Governors Coalition for Energy Choice, a coalition aimed at opposing Biden Administration renewable energy mandates and reducing regulations around energy production. The organization’s mission statement says the coalition aims to “ensure continued energy choice, minimize permitting and other regulatory barriers, limit expensive energy mandates, focus on affordability and reliability of energy infrastructure, and coordinate to positively manage energy resources and the environment.”

• The Federal Energy Regulatory Commission (FERC) announced that it has proposed to require new or modified critical infrastructure (CIP) standards to address the growing risks posed by malicious actors seeking to compromise the reliable operation of the bulk-power system. The proposal would direct the North American Electric Reliability Corporation (NERC) to require entities to identify current supply chain risks to their grid-related cybersecurity systems at specified intervals, assess and take steps to validate the accuracy of the information received from vendors during the procurement process, and document, track, and respond to these risks to their systems. FERC also proposed to approve a CIP reliability standard that requires internal network security monitoring inside an entity’s electronic security perimeter. FERC’s move comes after Wednesday’s announcement that the Biden Justice Department disrupted a group of Chinese hackers who were working at the direction of the Chinese government to infiltrate critical infrastructure in the U.S.

• CNBC reported that Port of New York/New Jersey executives have begun preparations for a complete work stoppage by the International Longshoreman’s Association (ILA). A strike by the ILA when its contract expires at the end of this month would shut down five of the 10 busiest ports in North America, and a total of 36 ports along the East and Gulf Coasts of the U.S. Between 43% and 49% of all U.S. imports and billions of dollars in trade monthly are at stake as the October 1st deadline for a new contract approaches. The Biden Administration already said it will not invoke the Taft-Hartley Act to force ILA members to go back to work and is urging the parties to return to the bargaining table.  

Wednesday, September 18^th

• The International Brotherhood of Teamsters announced that they would not endorse any candidate in the November presidential election, but publicly released polling data of its members that showed the members supported former President Trump over Vice President Kamala Harris 59% to 34%. After the national leaders of the Teamsters decided against an endorsement, Teamsters Joint Councils 7 and 42 — which are made up of 39 local unions representing 300,000 Teamsters in California, Nevada, Hawaii and Guam endorsed Vice President Harris, saying she and running mate Tim Walz have “a history of supporting expanded labor protections for workers, like the proposed Protect the Right to Organize Act and a Minnesota law that will ban employers from forcing workers to attend anti-labor meetings.” The move represents a rift within the Teamsters’ membership in liberal states out West, where Trump remains unpopular, and the union’s membership base in the Midwest and South.

• House Speaker Mike Johnson (R-LA) outlined his economic agenda for the first 100 days under a second Trump administration during a speech at the America First Policy Institute. Among other priorities, Johnson said Republicans would: (1) extend the tax cuts included in the 2017 Tax Cuts and Jobs Act; (2) repeal “wasteful” tax credits included in the Inflation Reduction Act (IRA), as well as “anti-energy” regulations; (3) use the tax code to deter illegal immigration and eliminate immigration loopholes; and (4) support a robust Child Tax Credit and the “dignity of work.” Speaker Johnson’s remarks come as the IRA spurs clean energy investments in Republican-led congressional districts across the country, prompting many Republican lawmakers to voice support for keeping at least some of the IRA’s tax credits. House Speaker Johnson (R-LA) reflected this when he said, “you’ve got to use a scalpel and not a sledgehammer because there’s a few provisions in there that have helped overall.”
  
• The Biden Administration is working to award all the grants from the President’s Inflation Reduction Act (IRA) before a new president takes office amid Trump’s threats to cancel the law’s unspent funds. The Biden Administration has awarded $90 billion in grants to climate, clean energy, and other projects so far under the IRA, which amounts to 70% of the law’s roughly $120 billion in total funding and over 80% of what the law made available before 2025.

• As the Department of Labor’s sweeping heat injury and illness rule covering both outdoor and indoor workplaces remains open for public comments and the MCAA team works with the Construction Industry Safety Coalition to provide input on the rule, new technologies are already being deployed in workplaces to save workers from becoming overheated and dehydrated. Among them are mobile apps that detect heat stress and offer tips on how to cool down, wearable devices that nudge workers when they’re dehydrated, clothing made with cooling fabrics, and machines that distribute cool air indoors more effectively.
  
• Rep. Andy Harris (R-MD) was elected as the new chair of the conservative House Freedom Caucus, officially replacing Rep. Bob Good (R-VA), who lost a Republican primary for Virginia’s 5^th Congressional District earlier this year.

Tuesday, September 17^th

• Rep. Eric Burlison (R-MO) introduced H. J. Res. 203, a Congressional Review Act resolution to nullify the National Labor Relations Board’s (NLRB) final rule on “Representation-Case Procedures: Election Bars; Proof of Majority Support in the Construction Industry Collective-Bargaining Relationships.” The NLRB’s final rule restored three NLRB policies that facilitate union organizing, including the NLRB’s policy on voluntary recognition in the construction industry, the blocking charge policy, and the policy on construction industry bargaining relationships.
  
• The Labor Department (DOL) issued a blog post announcing a new online resource on Substance Use Disorder (SUD) in the Workplace, which clarifies that people with SUD may be protected under the Americans with Disabilities Act and the Rehabilitation Act and entitled to accommodations to help them continue recovery or stay productive while in treatment. The new resource contain a toolkit to help employers develop recovery-ready workplace policies, a guide for employers on supporting workers with SUD, and a companion guide for workers.

Monday, September 16^th

• The Energy Department (DOE) announced $90 million in funding for competitive awards to help states, cities, tribal nations, and their partners implement updated energy codes for residential and commercial buildings. Funded by the President’s Bipartisan Infrastructure Law, these awards will support 25 new projects across the country to help ensure buildings meet the latest standards for energy efficiency. The funding is part of the $225 million Resilient and Efficient Codes Implementation (RECI) initiative that supports workforce development and other code-implementation solutions in high-impact states with substantial construction activity. The projects will also expand stakeholder engagement opportunities through tailored rural and regional collaboratives. Selected projects include: (1) $2.2 million for the National Association of State Energy Officials to establish a new and replicable approach to evaluate the impact of building energy codes on resilience and pilot the strategy in Arizona and Florida; (2) $1.6 million to the New Buildings Institute, South-Central Partnership for Energy Efficiency as a Resource and Austin Energy to support the implementation of efficient and resilient energy codes in Texas and Oklahoma, including access to training on the latest codes; and (3) $1.6 million to the Rhode Island Office of Energy Resources and the Rhode Island Builders Association to provide energy code training and educational resources to building inspectors, design professionals, builders, and construction trades in Rhode Island to support implementation of the latest energy codes. A full list of projects supported under the RECI initiative is available here.

• The Centers for Medicare & Medicaid Services (CMS) released “Medicare Prescription Payment Plan” resources related to the Inflation Reduction Act’s new payment option to help anyone with a Medicare drug plan or Medicare health plan manage out-of-pocket costs for drugs covered under their plan by spreading payments across the calendar year. These resources are for Part D Medicare sponsors to share with enrollees to help them determine if the payment option might help them and include: (1) a webpage that explains the Medicare Prescription Payment Plan and provides a response tool to help Part D enrollees determine if the payment option might help them; (2) a fact sheet in English and Spanish (among other languages); and (3) a takeaway card in English and Spanish (among other languages). Additionally, CMS is developing a cost preview inside of the Medicare Plan Finder that is based on a consumer’s specific drug list, a set of consumer-selected Medicare Advantage or Part D plans, and consumer-selected pharmacies, including both retail locations and mail order options. This cost preview will be made available in time for open enrollment in the fall.
  
• CNBC reported that four years after the start of the COVID-19 pandemic, there are 900,000 fewer students enrolled in college than before the pandemic. Experts say this is due to growing worries over rising tuition costs and large student loan balances that are causing more high schoolers to make alternative plans. Roughly half (49%) believe a high school degree, trade program, two-year degree or other type of enrichment program is the highest level of education needed for their anticipated career path. Additionally, 56% say they believe that real world and on-the-job experience is more beneficial than obtaining a higher education degree.

• The Kaiser Family Foundation suggested that the outcome of the November presidential election could slow down the Biden Administration’s plans to replace lead water pipes nationwide, particularly if the Biden Environmental Protection Agency’s recent lead pipe replacement rule does not take effect by October and enforcement of the less-stringent Trump Administration rule takes its place.  

Friday, September 13^th

• Senate Health, Education, Labor, and Pensions (HELP) Ranking Member Bill Cassidy (R-LA) sent a letter to the Department of Labor (DOL) requesting responses from the Labor Department’s Office of Workers’ Compensation Programs (OWCP) following a May 2024 report from the DOL Office of Inspector General (OIG) that found that American energy workers are being prevented from and experiencing delays in receiving medical care under the Energy Employees Occupational Illness Compensation Program Act (EEOICPA). Per the OIG report, OWCP “has routinely overlooked or missed errors in benefits claims, including incomplete employment verification, insufficient evidence to link the claimant’s illness to their employment, or failure to follow the documented procedures for making a claim for benefits. Ranking Member Cassidy (R-LA) in his letter argued that “[t]hese errors can prevent qualified workers and their families from receiving EEOICPA health benefits, threatening the lives of these workers who need medical care.”

Thursday, September 12^th

• The Department of Energy (DOE) announced an additional $9 million in funding from the President’s Bipartisan Infrastructure Law through the Industrial Training and Assessment Centers (ITAC) Implementation Grants program to support 47 small- and medium-sized manufacturers (SMMs) across the country to implement a wide variety of energy and efficiency projects, including installing onsite solar and heat pumps, improving lighting and heating, and electrifying industrial equipment and fleets. More information about the ITAC program, including the types of projects selected under the grant program and a list of grant selectees is available here.
  
• Senior Biden Administration officials met with OpenAI CEO Sam Altman, Google Chief Investment Officer Ruth Porat, and Anthropic CEO Dario Amodei to discuss the development of data centers for artificial intelligence. The meeting reportedly focused meeting AI’s infrastructure, workforce, and permitting demands, as well as maintaining American leadership on AI and ensuring that the data centers that AI requires will be “built in the United States.”

• The House voted 217-192 to pass H.R. 7980, the “End Chinese Dominance of Electric Vehicles (EVs) in America Act,” to modify the Inflation Reduction Act’s EV tax credit to override Treasury regulations allowing EVs powered by batteries with minerals or technology from certain Chinese companies.  

• The Transportation Department’s (DOT) Federal Highway Administration (FHWA) announced a Request for Information (RFI) from stakeholders about electric vehicle (EV) charging technologies and infrastructure needs for medium- and heavy-duty vehicles. The RFI seeks input in four areas to support medium- and heavy-duty electric vehicles: (1) unique EV charger and station needs; (2) vehicle charging patterns; (3) charging technology and standardization; and (4) workforce, supply chain, and manufacturing to support charging of medium- and heavy-duty battery EVs in DOT vehicle classes four through eight, which include delivery vans, school buses, semi-tractor trucks, fire trucks, dump trucks, and tour buses.

• Roll Call released its updated list of the most endangered Senate incumbents, with Sens. Jon Tester (D-MT), Sherrod Brown (D-OH), and Bob Casey (D-PA) topping the list. This comes as the Cook Political Report shifted the Montana Senate race between Tester and Republican Tim Sheehy from “toss up” to “leans Republican.” Roll Call also released its updated list of the most endangered House incumbents and Reps. Brandon Williams (R-NY), John Duarte (R-CA), and Anthony D’Esposito (R-NY) were at the top of the list.

• The Koch-affiliated Libre Initiative Action endorsed: (1) Rep. John James (R-MI) in his re-election bid in Michigan’s 10^th Congressional District; and (2) Sen. George Logan (R-CT), who is challenging Rep. Jahana Hayes (D-CT) in Connecticut’s 5^th Congressional District.

Tuesday, September 10^th

• U.S. Department of Agriculture (USDA) Secretary Tom Vilsack said that he’d like to see guidance from the USDA on the 45Z tax credit (which would reward production of lower emitting transportation fuels) issued before the end of December, saying that, “It’s on the top of my list.” Vilsack also reiterated that the USDA is working on a rule to be used as part of the U.S. Treasury’s final guidance to the 45Z tax credit taking effect in 2025.

• House Oversight and Accountability Ranking Member Jamie Raskin (D-MD), Senate Budget Chair Sheldon Whitehouse (D-RI), and Senate Finance Chair Ron Wyden (D-OR) sent new letters to Chevron, ExxonMobil, Continental Resources, Chesapeake Energy, Occidental Petroleum, Venture Global LNG, Cheniere Energy, EQT Corporation, and the American Petroleum Institute demanding compliance with the Committees’ original requests for information regarding quid pro quo solicitations made by Trump. This comes after Trump reportedly offered to sign Executive Orders and take other official actions to benefit oil and gas companies in exchange for $1 billion in contributions to his presidential campaign.

Monday, September 9^th

• CNBC reported that there is a new urgency to build small modular nuclear reactors as demand for clean electricity is rising from artificial intelligence, manufacturing and electric vehicles while utilities across the country are retiring coal plants as part of the energy transition—raising worries about a looming electricity supply gap. 

• According to a new Gallup poll, 70% of Americans say they approve of labor unions, while 23% disapprove and 7% have no opinion. This is just one point shy of 71% reading in 2022, which marked the highest approval rating for unions since 1965.

Friday, September 6^th

• The Labor Department published a blog post related to the Bureau of Labor Statistics’ annual employment projections data, which predicted that over the next 10 years employment in the construction and extraction sectors will increase by 5.6%.

Around the Country

Northeast 

• On Friday, September 20^th, Constellation Energy issued a press release announcing a Microsoft and Constellation Energy power purchase deal that would enable the restart of a nuclear reactor at Pennsylvania’s Three Mile Island nuclear plant. The plan is to bring Three Mile Island’s dormant 835 megawatt Unit 1 that closed in 2019 back online by 2028 so it can be used to power a Microsoft data center. Microsoft has committed to a 20-year supply deal for power from this reactor unit. Constellation plans to invest $1.6 billion to revive the reactor. The deal is, however, contingent on approval by the U.S. Nuclear Regulatory Commission authorizing the restarting of the reactor.

• On September 18^th, Democratic Newark City Councilmember LaMonica McIver defeated Republican small businessman Carmen Bucco in a special election to fill the remainder of the late Rep. Donald Payne, Jr.’s (D-NJ) term in New Jersey’s 10^th Congressional District. McIver and Bucco will face a rematch in November for a full term.

• On September 17^th, a new poll found Maryland Democratic Senate candidate Angela Alsobrooks leading former Maryland GOP Governor Larry Hogan by 7 points (49%-42%) in the state’s U.S. Senate race. 

• On September 16^th, the Pennsylvania Supreme Court ruled that mail-in ballots with incorrect dates will not be counted in November. The court’s reversal is a win for Republicans and was attacked by the state’s American Civil Liberties Union Chapter, which labeled misdated ballots a “common trivial error on the external envelopes.”

• On September 10^th, Sen. Sarah McBride (D) won the Democratic primary for Delaware’s at-large House seat, putting her one step closer to becoming the first transgender member of Congress.
  
• On September 9^th, Sen. George Helmy (D-NJ), who previously served as chief of staff to NJ Gov. Phil Murphy (D), was sworn-in to fill the remainder of Sen. Bob Menendez’s (D-NJ) Senate term. Helmy will serve on the Senate Foreign Relations, Finance, and Banking Committees, the same assignments previously held by Menendez.

West

• On September 9^th, the Interior Department (DOI) announced that it is finalizing the following clean energy projects in Nevada: (1) the Greenlink West Transmission Project to create a system of new transmission lines and facilities crossing federal, state, Tribal and private lands from North Las Vegas to Reno through Clark, Esmeralda, Lyon, Mineral, Nye, Storey and Washoe Counties, and provide up to 4,000 megawatts of clean energy—enough to power at least 4.8 million homes; and (2) the Libra Solar Project, which includes a solar facility battery energy storage system expected to generate and store up to 700 megawatts of energy on approximately 5,778 acres of public lands in Mineral County. Additionally, DOI announced that it has opened a 90-day comment period for Draft Resource Management Plan Amendments and Environmental Impact Statements for the following proposed projects in Nevada: (1) the Greenlink North Transmission Project, which would designate a 210-mile-long by 3,500-foot-wide utility corridor and unlock up to 4,000 megawatts of clean energy; and (2) the Bonanza Solar Project, a proposed 300-megawatt solar facility that would include battery storage and a 5.4-mile gen-tie line on approximately 5,133-acres of public lands in Clark and Nye Counties, near Las Vegas. 

Northwest 

• On September 19^th, Oregon Gov. Tina Kotek (D) announced plans to use a new land use law to propose Hillsboro, Oregon, a suburb of Portland, for a semiconductor facility. Specifically, Kotek is proposing to expand Hillsboro’s city boundaries to incorporate half a square mile of new land to provide space for a new semiconductor research center.

Midwest 

• On September 19^th, the Environmental Protection Agency (EPA) announced partnerships with the cities of Monmouth, Elgin, and Maywood, Illinois to help identify drinking water lead pipes and accelerate their replacement through the Bipartisan Infrastructure Law’s Get the Lead Out Initiative, to achieve 100% replacement of lead service lines.

• On September 12^th, the Environmental Protection Agency (EPA) announced a collaboration with the city of Fostoria, Ohio to help identify lead in pipes used for drinking water, develop lead service line replacement plans, increase community outreach and education efforts, and apply for funding through the Get the Lead Out Initiative, funded entirely by the Bipartisan Infrastructure Law, to move the nation toward 100% lead service line replacement.
  
• On September 9^th, a new poll found that incumbent GOP Sen. Deb Fischer (NE) holds a one-point lead (39%-38%) against Independent Dan Osborn, a union steamfitter, with 23% of voters undecided. The poll also found incumbent GOP Rep. Don Bacon (NE) trailing his Democratic opponent Tony Vargas by six points (46%-40%) in the race for Nebraska’s 2^nd Congressional District.

Southeast

• On September 16^th, the Labor Department (DOL) announced $164,540 in proposed penalties against South Marine Systems of Westlake, which is based in Pascagoula, Mississippi. Federal safety inspectors found a welding crew working aboard a commercial iron ore vessel moored at the Port of Ashtabula in Ohio narrowly avoided disaster after a large fire erupted as they welded off paint in a cargo hold, an incident their employer could have avoided by following DOL safety regulations. Specifically, the Occupational Safety and Health Administration (OSHA) found the employer did not designate a competent person able to identify hazards and failed to have a marine chemist present to test for hazardous atmospheres before welding started, among other things. OSHA also determined South Marine Systems did not stop work when small fires began to assess hazardous conditions and risks. The United States Coast Guard (USCG) and National Transportation Safety Board have opened separate investigations of the incident.

• On September 12^th, the Labor Department (DOL) announced that it has recovered $44,816 in back wages for 12 employees of Walker White Inc., a subcontractor performing plumbing and HVAC work under a contract with the U.S. Army Corps of Engineers at Fort Jackson in South Carolina, after a DOL Wage and Hour Division investigation determined the company wrongly classified apprentices as laborers and did not pay the required prevailing wage rates, including the basic hourly rate and fringe benefits, in violation of the Davis-Bacon Act. Investigators also found the employer failed to pay overtime rates of time-and-one-half an employee’s basic rate of pay for hours over 40 in a workweek, a violation of the Contract Work Hours and Safety Standards Act.

Southwest

• The Interior Department (DOI) announced $16.73 million in Bipartisan Infrastructure Law funding to assist five Tribal Nations in cleaning up orphaned oil and gas wells on their homelands. This funding may be utilized to plug, remediate or reclaim orphaned wells on Tribal lands, restore soil and habitat in areas degraded due to orphaned wells, decommission or remove associated infrastructure, identify and characterize additional undocumented wells on Tribal land, and set up well-plugging capacity where not already established. This effort advances the Biden Administration’s Justice40 Initiative that sets a goal to deliver 40% of the overall benefits of certain federal investments to historically disadvantaged communities that have been marginalized by underinvestment and overburdened by pollution. The funding is going to the Chickasaw Nation in Oklahoma, Chippewa Cree Tribe of the Rocky Boy Reservation in Montana, The Comanche Reservation in Oklahoma, The Jicarilla Apache Nation in New Mexico, and the Osage Nation in Oklahoma.

• On September 16^th, Democrats said they are seeing signs they could make inroads in the traditionally deep-red state of Texas this year as Sen. Ted Cruz (R-TX) has struggled to cross the 50-percent mark in polling in his U.S. Senate race against Democratic challenger Rep. Colin Allred.

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, September 16, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information in a special Congressional Recess Report:

MCAA Issues and Interests

Project Labor Agreements, Prevailing Wage, and Registered Apprenticeship

President Biden Signs “Good Jobs” Executive Order 

On Friday, September 6^th, President Biden signed Executive Order (EO) 14126, “Investing in America and Investing in American Workers” also known as the “Good Jobs EO.” EO 14126 is intended to promote strong labor standards such as family-sustaining wages, workplace safety, and the free and fair opportunity to a join a union and encourages the Departments of Labor, Interior, Agriculture, Commerce, Labor, Housing and Urban Development, Transportation, Energy, Education, and Homeland Security, as well as the Environmental Protection Agency (implementing agencies) to implement these standards for any projects for which “federal financial assistance is received” through the Biden Administration’s Investing in America programs. This includes the American Rescue Plan Act, the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act. “Federal financial assistance” is defined as funds obtained from the federal government or borrowed on the credit of the federal government pursuant to grants (whether formula or discretionary), loans, or rebates, or projects undertaken pursuant to any federal program involving such grants, loans, or rebates. 

Among other things, EO 14126 calls on implementing agencies to adopt labor standards that: 

• Provide tools to promote high-wage jobs, including incentivizing specific high-wage standards for federal grants by mechanisms such as payment of wages tied to a particular metric (i.e., wages not less than prevailing wages, the upper quartile of industry pay, or union pattern wage scales) including for workers in the care workforce (i.e.,individuals working in the fields of child care and long-term care); policies to promote equal pay and eliminate discriminatory pay practices, such as pay transparency measures; and other policies aligned with the Good Jobs Principles established by the Department of Commerce and the Department of Labor on June 21, 2022; 

• Promote worker voice, including through project labor agreements, voluntary union recognition, neutrality with respect to union organizing, and collective bargaining agreements; 

• Promote worker economic security by directing federal agencies to consider prioritizing projects that supply the benefits that workers need—including child and dependent care, health insurance, paid leave, and retirement benefits; 

• Support workforce development through the use of joint labor-management partnerships that invest in union affiliated training programs, registered apprenticeships, and pre-apprenticeship programs that matriculate to registered apprenticeships; partnerships with organizations that deliver training such as community colleges, career and technical education programs, disability service organizations, the public workforce system, and the American Climate Corps; and the provision of supportive services necessary to complete training such as child care and transportation assistance; 

• Level the playing field by encouraging federal grantees to develop equitable workforce plans and offering projects that support fair hiring and management practices as the projects develop; and 

• Support workplace safety by encouraging structures that help ensure compliance with all workplace health and safety laws.

Implementing agencies shall carry out their responsibilities under this order consistent with their responsibilities under the Justice40 Initiative set forth in Executive Order 14008 of January 27, 2021.

EO 14126 also outlines strategies for agencies to enact these standards across their grant programs, including: (1) developing staff expertise to ensure every agency has in-house knowledge of strong labor standards and how their investments can promote and support good jobs; (2) conducting pre-award negotiations for key programs and projects as appropriate, and include ensuing commitments in grant agreements; (3) collecting data on job quality to further encourage best practices and increase accountability, including the collection of certified payrolls when applicable; (4) issuing guidance or best practices to promote and implement priorities; and (5) incentivizing these strong labor standards to the greatest extent possible by including application evaluation criteria related to strong labor standards and by referring alleged violations of law to other executive departments and agencies for a determination of whether circumstances warrant the issuance of financial penalties or collection of relief for workers harmed, withholding further federal financial assistance pending correction of a deficiency, recovery of some or all federal funds, or debarment. 

Finally, EO 14126 establishes the “Investing in Good Jobs Task Force,” which is responsible for coordinating policy development that supports efficient project delivery while also driving the creation of high-quality jobs and otherwise supporting the effective implementation of the Good Jobs EO. The Task Force will be co-chaired by the Secretary of Labor, the Assistant to the President for Economic Policy, and the Director of the National Economic Council and will develop best practices related to promoting adoption of the EO by federal agencies and will also provide technical assistance to the implementing agencies. The Task Force also includes members from the implementing agencies as well as the Assistant to the President and National Climate Advisor, the Senior Advisor to the President for International Climate Policy, the Chair of the Council on Environmental Quality, the Chair of the Council of Economic Advisers, the Assistant to the President and Director of the Domestic Policy Council, and the Assistant to the President and Director of the Gender Policy Council.

U.S. Department of Labor Appeals Ruling Blocking Part of MCAA-Supported Davis-Bacon Modernization Rule to the Fifth Circuit 

As we continue our work with DOL to ensure proper implantation of the Wage and Hour Division’s Davis-Bacon Modernization Rule, we wanted to be sure you saw that on August 23^rd, the U.S. Department of Labor appealed to the U.S. Court of Appeals for the Fifth Circuit a June 2024 Texas Court ruling that blocked parts of the agency’s MCAA-supported Davis-Bacon prevailing wage rule from applying to suppliers and truck drivers. In the June ruling, District Judge Sam Cummings found DOL’s Davis-Bacon rule’s application to “prefabrication companies, material suppliers, and truck drivers” were “blatantly unlawful.” Cummings also ruled that a provision in the rulemaking that applies prevailing wages to contracts that are silent on such requirements was unlawful. 

Independent Contractors and Misclassification of Workers 

Ed/Workforce Chair Foxx (R-NC) Threatens to Subpoena DOL for Failure to Answer Questions Regarding Attempts to “Eliminate Independent Contractor Model” 

On the misclassification front at the beginning of the August recess, House Education and the Workforce Committee Chair Virginia Foxx (R-NC) on August 9^th threatened to subpoena Acting Labor Secretary Julie Su for “failure to provide responses and data regarding worker misclassification.” In the letter, Foxx says, “the Committee on Education and the Workforce is continuing to seek information about the Biden-Harris administration’s efforts to eliminate the independent contractor model and classify as many workers as employees as possible in order to increase government control over workers.” Foxx goes on to say that “DOL’s responses to previous questions and requests for data leave the Committee without needed insights regarding DOL’s implementation of the Fair Labor Standards Act.” Foxx is seeking answers to several questions including: (1) how many instances of misclassification Wage and Hour Division (WHD) inspectors have found, including the total number of instances across each occupation that has been subject to investigation; (2) how many misclassification enforcement investigations WHD has initiated for each specific industry sector since January 20, 2021; and (3) whether DOL has initiated any investigations related to misclassification based on its coordination with the National Labor Relations Board and the Federal Trade Commission. Foxx concluded her letter saying that DOL’s “failure to provide complete responses to oversight on this matter could lead the Committee to take compulsory action.”

BLS to Release Survey Data This Year on Workers in the Gig Economy

On August 27^th, the Labor Department’s Bureau of Labor Statistics announced it is aiming to release new survey datalater this year that seeks to capture workers in the gig economy better than previous efforts that have produced an “inaccurate and dubious” picture of gig workers. This effort comes as a newly formed Work Arrangements Committee comprised of multiple federal agencies collaborates to improve the survey to answer the question of just how many workers are participating in the gig economy (public estimates have ranged from less than 5% to over 30% of the total workforce). Economists say that without better data on the gig economy, policymakers will be relying on inconsistent information when making decisions regarding federal benefit programs or evaluating labor policies, such as those seeking to clarify gig workers’ employment status. 

Pension Reform

Ed/Workforce Chair Foxx (R-NC) Sends Letter to DOJ Alleging 60 Pension Plans Received Payments for Deceased Beneficiaries in Special Financial Assistance Program 

As we continue to engage Congress on multiemployer pension reform, we wanted to be sure that you saw that on August 8^th, House Education and the Workforce Committee Chair Virginia Foxx (R-NC) sent a letter to the Justice Department (DOJ) to request information regarding DOJ efforts to hold the Pension Benefit Guaranty Corporation accountable for recovering funds for improper payments from the MCAA-supported Special Financial Assistance (SFA) to more than 60 union pension plans. In her letter to Attorney General Merrick Garland, Foxx said that “PBGC identified deceased participants on rolls of more than 60…multiemployer plans that received improper payments based on those rolls” and that “none of these other plans are reported to have restored the improper payments.” As a result, the Committee requested that DOJ provide: (1) all documents and communications related to DOJ’s decision to investigate Central States and the Graphic Communications National Pension Fund for payments to deceased beneficiaries; (2) all documents and communications related to any steps DOJ is taking to ensure that all other multiemployer pension plans that received improper SFA payments will repay those amounts; and (3) all documents and communications related to any multiemployer pension plans for which PBGC identified deceased participants on the plans’ application rolls but which DOJ has chosen not to investigate. Foxx also asked if DOJ is investigating or planning to investigate any of the more than 60 other multiemployer pension plans for which PBGC identified deceased participants on the plans’ applications for SFA payments and if so, to provide the names of those multiemployer pension plans that DOJ is investigating or plans to investigate to the Committee.

President Biden Names Three New Members to PBGC Advisory Committee 

We also wanted to highlight that on September 3^rd, President Biden appointed three new members to serve on the Pension Benefit Guaranty Corporation’s (PBGC) Advisory Committee, which includes representatives from labor, employers, and the general public that advise the PBGC on investment policy and other matters related to the agency’s mission. The three new members include: (1) Ilana Boivie, the assistant director of strategic resources for the International Association of Machinists and Aerospace Workers; (2) Lamont Everett (Monte) Tarbox, who served as president of the AFL-CIO Investment Trust until his retirement in 2024 and has over 30 years of experience as a chief investment officer and advisor serving large multiemployer pension funds; and (3) Kathryn J. Kennedy, a law professor and director of the Center for Tax Law and Employee Benefits at the University of Illinois Chicago School of Law. 

Decarbonization

There were also several developments on the decarbonization front over the August recess:

EPA Issues Enforcement Alert Regarding Its Efforts to Phasedown HFCs

On September 6^th, the Environmental Protection Agency (EPA) issued an Enforcement Alert regarding its work under the American Innovation and Manufacturing Act (AIM Act) to phase down production and consumption of hydrofluorocarbons (HFCs). The agency’s new alert, “EPA Targeting Illegal Imports of HFC Super-Pollutants to Combat Climate Change” provides information on common compliance issues observed with the importation of bulk HFCs and highlights recent civil and criminal enforcement actions. It also highlights EPA’s recent pursuit of entities that sought to unlawfully import HFCs without the required allowances, submitted false or misleading information, or failed to report required information under the AIM Act. The alert is intended to help address climate change and ensure that companies comply with the law and take the necessary steps to avoid potential EPA enforcement actions.

DOE Announces $31M for Projects to Advance Geothermal Energy 

Additionally, on August 26^th, the Department of Energy (DOE) announced the award of $66 million in funding from the Bipartisan Infrastructure Law to 17 states and territories from the Energy Efficiency Revolving Loan Fund (RLF) Capitalization Grant Program. The RLF Capitalization Grant Program provides funding to states and territories to establish or increase revolving funds enabling them to issue loans and grants for energy efficiency audits, upgrades, and retrofits to increase energy efficiency and improve the comfort of buildings. DOE explains that the RLF Capitalization Grant Program will help these states and territories to make capital available to fund energy efficiency projects in public buildings and will encourage financial institutions to enable families and small businesses to save money and reduce their energy costs. States receiving funding under this announcement include: (1) Texas, which will receive $22.4 million to establish a new revolving loan fund that operationally matches their existing Texas LoanSTAR revolving loan program; (2) Iowa, which will receive $7 million to create a new revolving loan fund for commercial and residential entities; (3) Georgia, which will receive $2.5 million to establish a new revolving loan fund for the residential sector, with a primary focus on providing benefits to low-income residents; and (4) Arizona, which will receive $1.7 million to provide grants and loans to fund energy efficiency projects, including audits and retrofits in the commercial sector. 

EPA Distributes $27 Billion in Grants under the Greenhouse Gas Reduction Fund

On August 16^th, the Environmental Protection Agency (EPA) announced that it has distributed $27 billion in grant funding from the Inflation Reduction Act under three competitions to Greenhouse Gas Reduction Fund recipients. The three programs will distribute funds as follows: (1) $14 billion for the National Clean Investment Fund (NCIF), which will establish national clean financing institutions that deliver accessible, affordable financing for clean technology projects nationwide; (2) $6 billion for the Clean Communities Investment Accelerator (CCIA), which will establish hubs that provide funding and technical assistance to community lenders working in low-income and disadvantaged communities, providing an immediate pathway to deploy projects in those communities while also building capacity of hundreds of community lenders to finance projects for years; and (3) $7 billion for the Solar for All program, which will create new or expand existing low-income solar programs, enabling over 900,000 households in low-income and disadvantaged communities to benefit from distributed solar energy. All entities with eligible projects that are interested in applying for funds from or working with an NCIF, CCIA, or Solar for All recipient should contact their relevant recipient directly to learn more about potential opportunities and their program timelines. More information about each of the three programs, and the funding recipients under each program, can be found here. 

EPA Announces Label Program to Encourage Manufacturing of Cleaner Construction Materials 

On August 7^th, the Environmental Protection Agency (EPA) announced plans to implement a new labeling program to boost clean American manufacturing by helping federal purchasers and other buyers find and buy cleaner, more climate-friendly construction materials and products. The label program will define what constitutes “clean” construction materials in support of the federal “Buy Clean Initiative,” which aims to grow the market for American-made, lower carbon construction materials. EPA’s label program will prioritize steel, glass, asphalt, and concrete because they represent most of the construction materials and products that government agencies purchase with federal funds. 

EPA will implement the program using a phased approach that all material categories will be able to follow at a cadence that aligns with the material’s market maturity and data availability. These phases are: (1) Data Quality Improvement to standardize and improve the quality of data underlying and provided by Environmental Product Declarations (EPDs); (2) Threshold Setting using robust EPDs, data, and other credible and representative industry benchmarks to determine thresholds for specific material categories and types; and (3) Labeling Materials and Products that meet EPA’s criteria. 

EPA also issued several supporting documents to help implement the label program, including Product Category Rule (PCR) Criteria – guidelines for developing EPDs, the disclosures that communicate climate and other environmental impacts of products. Other documents published outline key remaining data gaps, provide a methodology for assessing life cycle data quality, and describe other federal data quality improvement activities.

Other Interesting Things During the August Recess 

Friday, September 6^th

• Amazon filed a federal lawsuit in the U.S. District Court for the Western District of Texas challenging the constitutionality of the National Labor Relations Board (NLRB). In the lawsuit, the company argued that the NLRB “violates bedrock constitutional principles of separation of powers” by serving as both prosecutor and judge. It also contends that NLRB members are unconstitutionally protected from being fired by the president, and that the quasi-judicial structure of the agency undermines employers’ right to a jury trial under the Seventh Amendment. In response to the lawsuit, NLRB General Counsel Jennifer Abruzzo said that “it is nothing new for big companies to challenge the authority of the National Labor Relations Board to enforce workers’ rights so as not to be held accountable for their violations of the National Labor Relations Act.” The case is Amazon.comServices LLC v. NLRB. 

• The Department of the Interior (DOI) announced the availability of up to $43.5 million from the Bipartisan Infrastructure Law’s “Small Storage Program” for small water storage projects to create new sources of water for communities in the western United States. The Small Storage Program funds projects with a water storage capacity between 200 acre-feet and 30,000 acre-feet. Two application periods will be opened under this announcement for eligible projects, the first one of which will end on December 12, 2024 and the second which will end on July 15, 2025. The funding opportunity announcement is available on Grants.gov by searching for opportunity number R25AS00392. Eligible projects have completed and submitted a feasibility study to Reclamation for review for the first application period. Project sponsors may submit feasibility studies until April 30, 2025, to obtain eligibility to apply for funding under the second application period. 

• The Environmental Protection Agency (EPA) announced the availability of $7.5 billion of Water Infrastructure and Innovation Act (WIFIA) funding. The WIFIA program offers long-term loans to help communities implement critical water infrastructure projects. Examples of eligible projects (or combinations of projects) under this funding announcement include: (1) a wide range of wastewater, stormwater, and nonpoint source projects that are eligible under the Clean Water State Revolving Fund; (2) a wide range of drinking water infrastructure projects – including treatment, transmission and distribution, source, storage, consolidation/partnerships, and the creation of new systems – that are eligible under the Drinking Water State Revolving Fund; (3) repair, rehabilitation, or replacement of drinking water, wastewater, or stormwater infrastructure; (4) energy efficiency enhancements for a public water system or publicly owned treatment works; (5) desalination, aquifer storage and recovery, water recycling, or other projects to provide an alternative water supply and reduce aquifer depletion; (6) drought prevention, reduction, or mitigation projects; (7) acquisition of real property or an interest in real property; (8) a combination of drinking water and wastewater projects submitted by a state infrastructure financing authority; and (9) a combination of eligible projects, secured by a common security pledge, for which a single entity, or a combination of eligible entities, submits a single application. A complete list of eligible projects can be found on the EPA’s website. Letters of Intent are due by October 1, 2024 and should be submitted on the EPA’s SharePoint website. Applicants can gain access to the EPA’s SharePoint website by emailing wifia@epa.gov.

Thursday, September 5^th

• President Biden announced $7.3 billion in funding from the Inflation Reduction Act’s “Empowering Rural America (New ERA) Program,” which helps rural electric cooperatives transition to clean, affordable, and reliable energy and distribute power to communities, businesses, farms, and families in rural America. The 16 cooperatives receiving funding serve farmers, small businesses, and rural communities in Alaska, Arizona, California, Colorado, Florida, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Montana, Nebraska, New Jersey, New Mexico, Nevada, North Dakota, Ohio, Pennsylvania, South Dakota, Texas, Wisconsin, and Wyoming. The New ERA program will allow co-ops to build or purchase over 10 gigawatts of clean energy and make enabling investments in areas including transmission, substation upgrades, and distributed energy resource management software that will lower energy costs and enhance grid performance, resiliency, and reliability. These investments will support more than 4,500 permanent jobs and over 16,000 construction jobs. 

Tuesday, September 3^rd

• The Department of Energy (DOE) announced nearly $62 million in funding for 20 projects across 15 states to accelerate the research, development, demonstration, and deployment of next-generation clean hydrogen technologies. DOE explains that this funding will be used for projects to advance critical elements of hydrogen fueling infrastructure, develop and demonstrate hydrogen-powered container-handling equipment for use at ports, and improve processes essential to the efficient, timely, and equitable deployment of hydrogen technologies. Projects receiving funding under this announcement span the following topic areas: (1) Components for Hydrogen Fueling of Medium- and Heavy-Duty (MD/HD) Vehicles, which will develop advanced components to enable gaseous and liquid hydrogen fueling for medium- and heavy-duty hydrogen-powered vehicles; (2) Standardized Hydrogen Refueling Station of the Future, which will develop and demonstrate a low-cost, standardized, and replicable advanced “hydrogen fueling station of the future”; (3) Hydrogen Fuel Cell-Powered Port Equipment, which will design, develop, and demonstrate a hydrogen fuel cell “top loader” (for handling containers) and a mobile refueler at the Port of Oakland; (4) Enabling Permitting and Safety for Hydrogen Deployment, which will identify the primary challenges to siting, permitting, and installation across the value chain from hydrogen production through end-use, and explore opportunities to address them; and (5) Equitable Hydrogen Technology Community Engagement, which will improve the capacity of DOE and DOE-funded projects to conduct effective community-engagement activities.

Thursday, August 29^th

• The Internal Revenue Service (IRS) and Department of Energy (DOE) announced that they received over 800 project proposals seeking a total of nearly $40 billion in tax credits for Round 2 of the Qualifying Advanced Energy Project Tax Credit (48C) program. The IRS and DOE notified applicants on the 48C portal that applications are now open and after initial reviews were encouraged to apply for the next stage of evaluation to determine which projects will receive a tax credit. Specifically, the IRS encouraged more than 450 projects across 46 states and Washington, D.C. that span large, medium, and small businesses and non-profits, all of which must meet prevailing wage and apprenticeship requirements to receive a 30% investment tax credit. The IRS notes that there is up to $6 billion in tax credit allocations for the second round of the 48C program, including approximately $2.5 billion for projects located in 48C designated energy communities. Applicants who submitted a project proposal, whether they received an encourage or discourage letter, may now submit a full application on the 48C portal. Applications are due by October 18, 2024 and applicants are encouraged to use the application templates available in the 48C portal. The IRS also plans to hold a webinar for applicants on September 16, 2024, with registration information to be made available on the Section 48C webpage here.

Wednesday, August 28^th

• The Department of Energy (DOE) announced that it is awarding $12.62 million to 32 local governments, two states and one Tribe through the Energy Efficiency and Conservation Block Grant (EECBG) Program, which provides funding from the Bipartisan Infrastructure Law through formula grants to assist states, local governments, and tribes in implementing strategies to reduce energy use and fossil fuel emissions, and to improve energy efficiency. The selected projects include: (1) $2,068,370 to Arizona to sub-grant funds to local governments to deploy updated energy management systems to increase energy efficiency in 100 government buildings, support clean energy projects such as energy assessments and weatherization upgrades in municipal buildings, and create a centralized digital resource (in partnership with utilities and community based organizations) for Arizonans to find rebates, technical assistance, and other resources to complete energy efficiency projects; (2) $2,101,450 to Maryland to provide sub-grants to small and rural local governments to create or update energy efficiency plans and decarbonization strategies; (3) $777,930 to Charlotte, North Carolina to launch a Solarize Campaign that funds direct solar installation for 25 low-and-moderate income-households, provides technical assistance during the solar purchase and installation process for participating households, and educates the community about the benefits of solar; (4) $764,010 to Montgomery, Maryland to conduct retrofits in at least 12 low-income owner-occupied homes, including installing new HVAC systems, water heaters, appliances and performing electrical repairs, and pilot a program to procure safe cold storage equipment for edible food recovery to distribute to residents living with food insecurity; and (5) $512,750 to Albuquerque, New Mexico to connect smart metering in facilities to an online data analytics portal and add features to measure and visualize energy use and greenhouse gas emissions, and upgrade 200 incandescent bulbs to LED lights in 15 city facilities. The full list of projects is available here. 

Tuesday, August 27^th

• The Department of Energy (DOE) announced 19 state and local governments will receive over $240 million in funding from the Inflation Reduction Act to adopt and implement the latest energy efficient or innovative building codes. These improvements are intended to help save residents and commercial building operators money on their utility bills. The funding is part of the support that DOE is providing to states, localities, territories, and Tribes to advance both traditional and innovative building energy codes resulting in more resilient, efficient, and better buildings. Selected projects include, among others: (1) $19.8 million to Philadelphia, PA to design, develop, adopt, implement, and enforce a building performance standard to maximize emissions reductions from large buildings, while providing robust support programs that will ensure equitable outcomes with high compliance rates; (2) $20 million to Colorado to create a statewide program to provide technical assistance and resources to respond to the needs identified by disadvantaged communities when complying with Colorado’s building performance standard; (3) $19.9 million to Massachusetts to support implementation of their respective building performance standards through direct technical support and capacity building among existing building trades programs; (4) $19.9 million to New York City to support the successful implementation of the City’s building performance standard by increasing compliance support for multifamily buildings across the City, particularly those in disadvantaged communities, and by increasing in-house capacity to monitor, support, and enforce requirements; and (5) $18.1 million to Hawaii to develop and adopt a building performance standard with an objective of simultaneously reducing costs and making resources, jobs, and training available in disadvantaged communities over the course of its implementation. The full list of projects is available here.  

Friday, August 23^rd

• The Department of Energy (DOE) announced the award of $66 million in funding from the Bipartisan Infrastructure Law to 17 states and territories from the Energy Efficiency Revolving Loan Fund (RLF) Capitalization Grant Program. The RLF Capitalization Grant Program provides funding to states and territories to establish or increase revolving funds enabling them to issue loans and grants for energy efficiency audits, upgrades, and retrofits to increase energy efficiency and improve the comfort of buildings. DOE explains that the RLF Capitalization Grant Program will help these states and territories to make capital available to fund energy efficiency projects in public buildings and will encourage financial institutions to enable families and small businesses to save money and reduce their energy costs. States receiving funding under this announcement include: (1) Texas, which will receive $22,365,890 to establish a new revolving loan fund that operationally matches their existing Texas LoanSTAR revolving loan program; (2) Iowa, which will receive $7,068,920 to create a new revolving loan fund for commercial and residential entities; (3) Georgia, which will receive $2,453,810 to stablish a new revolving loan fund for the residential sector, with a primary focus on providing benefits to low-income residents; and (4) Arizona, which will receive $1,690,280 to provide grants and loans to fund energy efficiency projects, including audits and retrofits in the commercial sector. 

Thursday, August 22^nd

• The Environmental Protection Agency (EPA) announced $26 million in funding to address lead in drinking water at schools and childcare facilities. The funding will be used by all 50 states, U.S. territories, and Washington, D.C. to reduce lead exposure. The funding was authorized by the Water Infrastructure Improvements for the Nation Act and is provided to states, the District of Columbia, and participating territories as grants for lead testing and remediation in schools and childcare facilities. The grant program also requires recipients to follow the EPA’s “3Ts” of Training, Testing and Taking Action to build a voluntary implementation program to reduce lead levels in drinking water. 

Wednesday, August 21^st

• The Department of Energy (DOE) announced that it has selected 14 state and territorial weatherization offices to receive $53.6 million in Sustainable Energy Resources for Customers (SERC) grants, which provide low-income households with energy saving measures and materials not traditionally included in DOE’s Weatherization Assistance Program. In addition to standard weatherization measures, such as improving insulation and sealing cracks and gaps, SERC grantees will conduct expanded retrofits of low-income residential buildings and utilize a wide range of technologies, such as solar photovoltaic panels, cold climate air source heat pumps, and triple-pane windows. Among the selected grantees are: (1) New York, which received $25,136,550 for its project “New York State—Housing and Community Renewal SERC Subgrantee Applications”; (2) Georgia, which received $7,500,000 for its project, “Optimized Climate Control in Humid Regions”; (3) Ohio, which received $4,301,375 for its project, “Solar for Ohio’s Appalachian Region (SOAR) and Toledo Green and Healthy Homes Program”; (4) Kentucky, which received $3,222,300 for its project, “Kentucky SERC Project 2024”; and (5) New Mexico, which received $2,000,000 for its project, “SERC Measures for Northern New Mexico.”

Tuesday, August 20^th

• The Environmental Protection Agency (EPA) announced 16 recipients to receive $25.5 million in grants through the Drinking Water System Infrastructure Resilience and Sustainability Program to support drinking water systems in underserved, small, and disadvantaged communities while reducing impacts of climate change. The awards include, among others: (1) $5,255,974 to Newtok Village in Alaska to support construction and infrastructure relocation efforts to protect drinking water system infrastructure from erosion and flooding; (2) $4,651,170 to St. Paul Island City, Alaska to install emergency generators and update infrastructure, including computerized Supervisory Control and Data Acquisition capabilities, to protect drinking water system infrastructure from earthquakes, blizzards, cyclones, and flooding; (3) $3,868,000 to the Clarksburg Water Board in West Virginia to protect the drinking water system from effects of rising temperatures in summer months, when precursor organic compounds lead to increased trihalomethanes production, by installing mixing and aeration equipment in water storage tanks; (4) $3,700,214 to the City of Fresno, California to replace failing water pipes to protect drinking water system infrastructure from drought; and (5) $2,790,000 to Indian Wells Valley in California for water supply enhancement efforts to protect drinking water system infrastructure from drought, earthquakes, and climate change. The full list of awards is available here.

Friday, August 16^th

• The Federal Aviation Administration (FAA) announced $291 million from the Inflation Reduction Act’s “Fueling Aviation’s Sustainable Transition (FAST)” grant program for sustainable aviation fuels and technologies. The FAST grants include: (1) $244.5 million for 22 projects that produce, transport, blend, or store sustainable aviation fuel (SAF) and for scoping studies related to SAF infrastructure needs; and (2) $46.5 million for 14 projects that develop, demonstrate, or apply low-emission aviation technologies. Example grants awards include: (1) $16.8 million to Gevo, Inc. to convert an existing fuel facility in Luverne, Minnesota to a full integrated alcohol-to-jet facility for SAF production; (2) $8 million to JetZero, Inc. to develop key enabling technologies for a highly fuel efficient blended-wing-body airplane, with work to occur in Long Beach California, Wichita, Kansas, and Starkville, Mississippi; (3) $2.7 million to the University of Illinois Urbana-Champaign to build a fast test facility to mature high-power electrified airplane technologies; and (4) $240,000 to the City of Atlanta to conduct a study of regional supply chains, infrastructure, and distribution needs to enable SAF deployment at Hartsfield-Jackson Atlanta International Airport. The full list of grant awards is available here through an interactive map. 

Thursday, August 15^th

• The Department of Health and Human Services (HHS) announced that it reached agreements with all participating manufacturers on new negotiated, lower drug prices for the first 10 drugs selected for the Medicare drug price negotiation program that was included in the Inflation Reduction Act. The new prices will go into effect for people with Medicare Part D prescription drug coverage in 2026. The ten drugs selected for negotiation include: (1) Eliquis, which is used for the prevention and treatment of blood clots, was reduced from $521 for a 30-day supply to $231 (a 56% reduction); (2) Jardiance, which is used to treat diabetes, heart failure, and chronic kidney disease, was reduced from $573 for a 30-day supply to $197 (a 66% decrease); (3) Xarelto, which is used to prevent and treat blood clots and reduce the risk for patients with coronary and peripheral artery disease, was reduced from $517 for a 30-day supply to $197 (a 62% reduction; (4) Januvia, which is used to treat diabetes, was reduced from $527 for a 30-day supply to $113 (a 79% reduction); (5) Farxiga, which is used to treat diabetes, heart failure, and chronic kidney disease, was reduced from $556 for a 30-day supply, to $178.50 (a 68% reduction); (6) Entresto, which is used to treat heart failure, was reduced from $628 for a 30-day supply to $295 (a 53% reduction; (7) Enbrel, which is used to treat rheumatoid arthritis, psoriasis, and psoriatic arthritis, was reduced from $7,106 to $2,355 (a 67% reduction); (8) Imbruvica, which is used to treat blood cancers, was reduced from $14,924 for a 30-day supply to $9,319 (a 38% reduction; (9) Stelara, which is used to treat psoriasis, psoriatic arthritis, Crohn’s disease, and ulcerative colitis, was reduced from $13,836 for a 30-day supply to $4,695 (a 66% reduction); and (10) Fiasp, which is used to treat diabetes, was reduced from $495 for a 30-day supply to $119 (a 76% reduction). HHS notes that these 10 drugs are among those with the highest total spending in Medicare Part D. When the negotiated prices go into effect in 2026, HHS estimated that people enrolled in Medicare Part D are estimated to save $1.5 billion in out-of-pocket costs. 

• The Internal Revenue Service (IRS) issued a notice urging businesses that have received Employee Retention Credit (ERC) payments to recheck eligibility requirements and consider the second ERC Voluntary Disclosure Program (VDP) to resolve incorrect claims without penalties and interest. The second ERC VDP will run through November 22, 2024, and will allow businesses to correct improper payments and avoid future audits, penalties, and interest. Applicants that the IRS accepts into the program will need to repay only 85% of the credits they received. This second round is open for tax periods in 2021—employers can’t use the second VDP to disclose and repay ERC money from tax periods in 2020. If the IRS paid interest on the employer’s ERC refund claim, the employer does not need to repay that interest. Employers who are unable to repay the required 85% of the credit may be considered for an Installment Agreement on a case-by-case basis. The IRS will not charge program participants interest or penalties on any credits they timely repay. However, if an employer can’t repay the required 85% of the credit at the time they sign their closing agreement, they’ll be required to pay penalties and interest in connection with an alternative payment arrangement such as an installment agreement. The IRS has provided a set of Frequently Asked Questions about the second ERC Voluntary Disclosure Program to help employers understand the terms of the program. To apply, employers must file Form 15434, Application for Employee Retention Credit Voluntary Disclosure Program, and submit it through the IRS Document Upload Tool.

Wednesday, August 14^th

• The Interior Department (DOI) announced the availability of $775 million in funding from the Bipartisan Infrastructure Law for 21 states to clean up legacy pollution from oil and gas wells and well sites. Under the funding availability, 21 states have been invited to apply for portions of the $775 million in funding that will be distributed as formula grants. These formula grants may be used for, among other things, the following: (1) plugging, remediating, and reclaiming orphaned wells; (2) identifying orphaned wells; and (3) measuring and tracking emissions from orphaned wells. Moreover, the guidance released alongside the funding announcement encourages states to use project labor agreements and a unionized project workforce for the plugging, remediation and reclamation of wells, and requires states to: (1) measure methane emissions from orphaned wells plugged with formula grants; (2) screen for groundwater and surface water impacts caused by orphaned wells; and (3) include their prioritization methods for finding polluted wells that create burdens for nearby disadvantaged communities. The 21 states eligible to apply for the funding have until December 13, 2024 to submit applications. The full list of 21 states can be found here. 

Friday, August 9^th

• Sen. Ed Markey (D-MA) and Rep. Raul Grijalva (D-AZ) sent a letter to the Department of Transportation’s Maritime Administration (MARAD) calling for the approval criteria for deepwater terminals to be expanded to factor in criteria like public health, environmental justice, and impacts on climate change. In the interim, the lawmakers urged MARAD to pause licensing decisions for new and pending deepwater oil export projects—including Blue Marlin, Bluewater, and Gulflink offshore Texas—and reopen the record of decision for the recently approved Sea Port Oil Terminal (SPOT). 

Thursday, August 8^th

• The Financial Crimes Enforcement Network (FinCEN) announced the launch of a public service announcement (PSA) campaign as part of its ongoing efforts to educate the small business community about new beneficial ownership reporting requirements. To directly reach business owners, educate stakeholders about these reporting requirements, and encourage compliance, television and radio PSAs are now running nationwide in tandem with digital and print ads.

Wednesday, August 7^th

• The Department of Energy (DOE) announced nearly $85 million across four heat pump manufacturers—A.O. Smith, BITZER Scroll, Inc., Daikin Comfort Technologies North America, Inc., and Modine Manufacturing Company—to accelerate the manufacturing of electric heat pumps, heat pump hot water heaters, and heat pump components at five factories in New York, Tennessee, Texas, and Rhode Island. Together these investments will allow for U.S. manufacturing of an additional 155,000 residential heat pumps, 440,000 residential heat pump water heaters, 2,000 school heat pumps, and 20,000 large heat pump compressors each year. The projects, administered by DOE’s Office of Manufacturing and Energy Supply Chains, would collectively create over 500 good-paying jobs, including 220 jobs in disadvantaged communities. More information about the projects selected for award negotiations is available here.

Monday, August 5^th

• The Energy Department (DOE) announced selections for the 2024 Renew America’s Schools Prize and Grant, a three-phase, $190 million investment funded by the Bipartisan Infrastructure Law to help K-12 public schools make energy upgrades that will decrease energy use and costs and improve air quality. Projects include: (1) new heating, ventilation, and air conditioning systems; (2) building envelop and lighting upgrades; (3) alternative fuel (such as electric) vehicles and infrastructure; and (4) renewable energy technologies. The schools and school districts that received funding under the Renew America’s Schools Prize and Grant are available here.

• The Interior Department announced a nearly $105 million investment from the Bipartisan Infrastructure Law for 67 water conservation and efficiency projects in Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, Texas, Utah, and Wyoming that will enhance drought resilience. The eligible water infrastructure projects include water storage, rural water, water conservation and conveyance, dam safety, water purification and reuse, desalination, and nature-based solutions. The complete list of projects can be found on the Bureau of Reclamation’s website here. 

Around the Country 

Northeast

• On September 3^rd, the Department of the Interior (DOI) announced $76.4 million from the Bipartisan Infrastructure Law for Pennsylvania to plug approximately 550 orphaned oil and gas wells over the next five years. DOI said that this funding will help create good-paying union jobs, catalyze economic growth and revitalization, and reduce environmental and public health impacts from methane leaks. This announcement is part of an overall $660 million in Phase 1 formula grant funding being released on a rolling basis. As part of the award, Pennsylvania will detect and measure methane emissions from orphaned oil and gas wells, screen for groundwater and surface water impacts, and prioritize cleaning up wells near overburdened and disadvantaged communities.  

West

• On September 3^rd, the Department of the Interior (DOI) announced the availability of $55 million in funding from the Inflation Reduction Act to support a variety of projects designed to bolster water management flexibility and reliability in the western United States. Projects that will receive funding under this announcement include those aimed at developing new infrastructure, upgrading existing infrastructure, recharging aquifers, advancing water recycling and treatment, strengthening innovative technologies to address water scarcity challenges for water users, and constructing domestic water supply projects that benefit Tribes and disadvantaged communities. The window to submit applications for this funding will be open until October 7, 2024.

Midwest 

• On August 6^th, the Environmental Protection Agency (EPA) announced a $1 million Innovative Water Workforce Development Grant to Grand Rapids Community College in Grand Rapids, Michigan. The grants program supports career opportunities in the drinking water and wastewater utility sectors and expands public awareness about drinking water and wastewater utilities. Activities funded under the grant program include: (1) targeted apprenticeship, pre-apprenticeship, internship, and post-secondary bridge programs; (2) regional industry and workforce development collaborations to address water utility employment needs and coordinate candidate development; (3) occupational training, mentoring, or cross-training programs that ensure incumbent drinking water and wastewater utility workers are prepared for higher-level supervisory or management-level positions; and (4) integrated learning laboratories in secondary educational institutions. 

Southeast

• On August 7^th, the Environmental Protection Agency (EPA) announced a $171 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the Birmingham Water Works Board in Alabama. The loan is intended to support improvements to the drinking water supply in the city of Birmingham, including allowing the city to complete a major upgrade of its distribution system to prevent water loss and safely store treated drinking water for distribution to its customers. The EPA estimates that the project’s construction and operation will create about 1,200 jobs. 

Southwest

• On August 29^th, the Department of Energy (DOE) announced that Arizona has launched the first phase of the Inflation Reduction Act funded Home Energy Rebates Program to support low- and middle-income households with the costs of energy efficiency improvements and to help lower monthly energy bills. Arizona’s Home Energy & Appliance Rebates (HEAR) Program, the first phase of the federal program, will provide point-of-sale rebates between $4,000 and $8,000 for eligible homeowners of single-family homes to purchase and install ENERGY STAR-certified electric heat pumps for space heating and cooling. The second phase of the program, to be launched later, will provide up to $14,000 in rebates for lower- and middle-income homeowners and renters to upgrade equipment and appliances, including up to: (1) $4,000 for an electrical panel; (2) $2,500 for electrical wiring; (3) $1,750 for an ENERGY STAR-certified electric heat pump water heater; (4) $1,600 for insulation, air sealing, and mechanical ventilation products; and (5) $840 for an ENERGY STAR-certified electric heat pump clothes dryer and/or an electric stove, cooktop, range, or oven. Arizona is the second state to launch the HEAR portion of the rebate program after New York did so in May 2024.

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, August 5, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

MCAA Issues and Interests 

Registered Apprenticeship

MCAA Helps to Ensure Legislation Barring Educational Requirements in Federal Contract Solicitations Do Not Impact Apprenticeship Utilization Requirements 

Last week, the MCAA policy team was busy working with our allies in the Construction Employers of America to address concerns with the Senate Homeland Security and Governmental Affairs Committee regarding provisions in the Allowing Contractors to Choose Employees for Select Skills (ACCESS) Act (S. 4631) that was marked up in the Committee on Wednesday. The ACCESS Act would prohibit federal agency contract solicitations from requiring minimum educational requirements for federal contractor personnel—including on federal construction projects. The MCAA successfully advocated with its allies to secure changes in a manager’s amendment clarifying that language in the bill prohibiting the inclusion of minimum experience or educational requirements did not impact registered apprenticeship utilization requirements, such as those MCAA supported in the Inflation Reduction Act. Following unanimous adoption of the manager’s amendment, the Committee voted 10-1 to advance the bill to the full Senate for consideration. During the August recess, we will be advocating for the House of Representatives to adopt the Senate-passed version of this bill instead of trying to move the original text that MCAA and its allies opposed. 

Project Labor Agreements and Davis-Bacon Prevailing Wage

Last week, the MCAA policy team also continued our outreach to oppose Congressional Review Act resolutions to rescind the MCAA-supported rulemakings on project labor agreements from the Federal Acquisition Regulatory (FAR) Council and Davis-Bacon prevailing wage from the Labor Department. We plan to use the opportunity on Capitol Hill with lawmakers out of town for the August recess to continue this outreach with Congressional staff. As the days left on the legislative calendar continue to dwindle and the November elections loom, we remain confident that we may be able to prevent a legislative reversal of these rulemakings but are continuing our outreach efforts to leave no stone unturned. On Thursday, a recount confirmed that one of our leading opponents on these issues in the House of Representatives, House Freedom Caucus Chair Bob Good (R-VA) lost his Republican primary for Virginia’s 5^th Congressional District to state Sen. John McGuire by 374 votes. Good is expected to resign as Chair of the conservative House Freedom Caucus following the recount, but he is expected to keep working to undermine PLAs and Davis-Bacon for the remainder of this Congress from his post as Chair of the House Education and Workforce Committee’s Subcommittee on Health, Employment, Labor and Pensions. 

Pension Reform

Senate Fails to Invoke Cloture on Smith-Wyden Tax Bill 

MCAA’s effort to add two-pool withdrawal liability authorization suffered a setback as Senate Democratic leadership elected not to include this language in a proposed revision  to H.R. 7024, the House-passed “Tax Relief for American Families and Workers Act,” also known as the “Smith-Wyden tax deal.” On Thursday, the Senate voted 48-44 against invoking cloture on the modified version of this $79 billion tax package. As discussions around this vote developed over the course of last week, it was clear that this was not a substantive legislative effort, but rather a messaging vote ahead of the August recess by Senate Majority Leader Chuck Schumer (D-NY) to reinforce the message that Republicans are “anti-family” and against the middle class because they voted against a tax cut bill that would have expanded the Child Tax Credit. Given this dynamic, not even our best allies on pension issues felt it was worth the effort to press for inclusion of our two-pool withdrawal liability. There may be a run at actually passing some tax legislation to address expiring provisions when Congress returns in September and MCAA plans to use the August recess to assess the prospects for attaching two-pool withdrawal liability to any discrete tax measures that may move before Congress breaks for the elections at the end of September. 

Foxx Expands Investigation into Pensions Leveraging Funds to Support Organized Labor

Following up on an item discussed in our May 24^th Government Affairs report, on July 29^th, House Education and the Workforce Committee Chair Virginia Foxx (R-NC) announced the expansion of her investigation into the Biden Administration’s attempts to leverage pension assets to support organized labor by sending a letter to Internal Revenue Service (IRS) Commissioner Daniel Werfel and California Public Employees’ Retirement System (CalPERS) President and Vice Chair of Investment Theresa Taylor demanding answers regarding CalPERS’s commitments to divert pension holdings for the benefit of organized labor. Foxx previously sent similar letters back in May to Acting Labor Secretary Julie Su, North America’s Building Trades Unions (NABTU), the National Electrical Benefit Fund, the AFL-CIO, the International Association of Fire Fighters, and the National Education Association seeking information about an April 2024 White House meeting launching an initiative encouraging pension funds to leverage their investments to advance fair pay, apprenticeship utilization, and basic labor standards. 

In the July 29^th letter Chair Foxx sent to the IRS this week, she said the Agency “has an obligation to enforce the provisions of the [Internal Revenue] Code to ensure that taxpayers are not improperly subsidizing a retirement plan that does not comply with the Code’s exclusive benefit requirement. To the extent that CalPERS is using plan assets for the benefit of social or political causes, the plan’s tax status is no longer valid.” The letter to IRS Commissioner Werfel is available here and the letter to CalPERS President Taylor is available here. MCAA is closely monitoring Chair Foxx’s ongoing fishing expedition and conducting education intended to minimize the prospect of MCAA-affiliated plans being caught up in this investigation.

Decarbonization

EPA Sends Final Rule Regarding Phasedown of HFCs to White House for Review

As we continue engaging on decarbonization issues for MCAA, we wanted to be sure MCAA members were aware that last Wednesday, the White House Office of Information and Regulatory Affairs (OIRA) concluded its review of the Environmental Protection Agency’s (EPA) final rule entitled, “Phasedown of Hydrofluorocarbons: Correction to Address Vacated Provisions.” This final rule is intended to comply with a 2023 ruling from the U.S. Court of Appeals for the D.C. Circuit which concluded that the American Innovation and Manufacturing (AIM) Act did not give the EPA the authority to ban disposable HFC cylinders. Consistent with the court’s decision, this impending final rule removes regulatory provisions at 40 CFR part 84 prohibiting the use of disposable cylinders, implements a cylinder tracking system, and creates auditing obligations related to the cylinder tracking system. The conclusion of OIRA review is typically the final step before an item is published in the Federal Register, so we expect this final rule to issue soon, correcting the EPA’s overreach. 

FBI Warns Malicious Actors May Seek to Disrupt the Renewable Energy Industry

This week a new challenge related to decarbonization and promotion of “clean energy” surfaced as public notice increased of a Federal Bureau of Investigation (FBI) warning to energy companies and alternative energy developers that “malicious cyber actors may seek to disrupt power generating operations, steal intellectual property, or ransom information critical for normal functionality to advance geopolitical motives or financial gain within the U.S. renewable energy industry.” The FBI added that “with federal and local legislatures advocating for renewable energies, the industry will expand to keep pace, providing opportunities and targets for malicious cyber actors.”  While the examples of such malicious activity provided in the Notice mainly pertain to solar power, the Notice broadly urges “current and former employees of companies within the renewable industry to report cyber intrusions targeting either themselves or their organization, as well suspected elicitation attempts by foreign nationals outside of the organization.” The FBI also says that “[p]rivate industry partners can contact their local FBI office to report security concerns and request threat briefings.”  

Other Interesting Things Since Our Last Report 

Thursday, August 1^st

• House Education and the Workforce Committee Chair Virginia Foxx (R-NC) called on Department of Health and Human Services Secretary Xavier Becerra, Acting Labor Secretary Julie Su, and Treasury Secretary Janet Yellen to reconsider the Biden Administration’s pending proposed rules on mental health parity about which the multiemployer plan community has expressed significant concerns, along with the larger health insurance community. In her letter, Chair Foxx said that following the Supreme Court’s reversal of Chevron deference in “Loper Bright, the [departments] do not have the authority to create new tests for Non-Quantitative Treatment Limitations that Congress did not intend” and that “the proposed rule’s requirement that plans measure outcomes and vary reimbursement rates are without basis in law.” Foxx urged the department heads to work with Congress to ensure any mental health parity rules are workable, improve patient care, and do not result in employers ceasing to offer mental health benefits. 

• The General Services Administration’s (GSA) Green Proving Ground (GPG) program released a request for information (RFI) seeking “innovative, emerging, and sustainable technologies that enable energy efficiency and decarbonization in commercial buildings and contribute to a more efficient electric infrastructure.” The RFI is focused on the following issues related to decarbonization of commercial buildings: (1) Deep Energy Retrofits (renovations to reduce site energy use by at least 40%); (2) All-Electric Buildings and All-Electric Vehicle Fleets; (3) Healthy and Resilient Buildings; (4) Low-Embodied Carbon Building Materials; (5) Net-Zero Operations; and (6) Packages of Emerging and Sustainable Technology Solutions. Technologies selected for the GPG program will be piloted in one or more federal buildings and/or private sector facilities and evaluated by Biden Energy Department National Labs. The comment period on the RFI is open until September 13, 2024.  The agency will also host an informational webinar at 1pm ET on August 22, 2024 through Zoom, for which participants must register here.

• The House Financial Services Committee Republicans’ Environmental, Social, and Governance (ESG) Working Group—led by Oversight and Investigations Subcommittee Chairman Bill Huizenga—released its final staff report entitled “The Failure of ESG: An Examination of Environmental, Social, and Governance Factors in the American Boardroom and Needed Reforms.” The report focuses on GOP concerns about the use of the shareholder proposal process by a small group of activists—especially climate activists—to advance political and social objectives at the expense of other investors. It explores how these actors allegedly use undue influence on shareholder voting exerted by proxy advisory firms and federal policies and regulations that facilitate their efforts. The Working Group specifically raised concerns about the SEC exceeding its statutory authority by mandating non-material climate-related regulations and making harmful changes to the proxy process that facilitate exploitation by climate activists. Key priorities identified in the staff report to address House Republicans’ concerns include: (1) reforming the proxy voting system to safeguard the interests of retail investors; (2) promoting transparency, accountability, and accuracy in the proxy advisory system; (3) enhancing accountability in shareholder voting by aligning voting decisions with the economic interests of shareholders; (4) increasing transparency and oversight of large asset managers to ensure their practices reflect the pecuniary interest of retail investors; (5) improving ESG rating agency accountability and transparency to safeguard retail shareholders; (6) strengthening oversight and conduct thorough investigations into federal regulatory efforts that would contort our financial system into a vehicle to implement climate policy; (7) demanding transparency, responsibility, and adherence to statutory limits from financial and consumer regulatory agencies; and (8) protecting U.S. companies from burdensome European Union regulations and safeguarding American interests in global markets. 

Wednesday, July 31^st

• The Senate Energy and Natural Resources Committee voted 15-4 to advance the “compromise” bipartisan energy permitting legislation from Committee Chair Joe Manchin (I-WV) and Ranking Member John Barrasso (R-WY) that would, among other things, require the Interior Department to hold at least one offshore wind lease sale and one offshore oil and gas lease sale annually from 2025 through 2029, override the Biden Administration’s pause on liquefied natural gas exports, and open up electricity transmission development. 

• During a Senate Banking Committee hearing entitled, “Long-Term Economic Benefits and Impacts from Federal Infrastructure and Public Transportation investments,” Committee Chair Sherrod Brown (D-OH) hailed passage of the Bipartisan Infrastructure Law and CHIPS and Science Act, noting that “every state is benefiting” from “more than 60,000 infrastructure projects already underway across the country” that have “added 670,000 construction jobs to the U.S. economy.” Brown also said that the CHIPS and Science Act is “allowing [the U.S.] to build a new generation of chip facilities…around the country.”

• The Energy Department (DOE) announced $41 million for 14 projects that develop Renewables-to-Liquids (RtL) systems that operate at a renewable energy production site and use its electricity, carbon dioxide, and water to create liquids that can be used as renewable fuels or drop-in replacements for conventional fuels. Currently, low-carbon fuels are expensive at around $10 per gallon, so producers who use cheaper electricity sources like wind and solar independent from the grid to create these fuels can achieve lower overall costs. DOE’s Advanced Research Projects Agency-Energy (ARPA-E), will manage these projects through its Grid-free Renewable Energy Enabling New Ways to Economical Liquids and Long-term Storage (GREENWELLS) program, which aims to economically store at least 50% of incoming intermittent electrical energy in carbon-containing liquids. Projects funded under the announcement include: (1) $2 million to the Georgia Institute of Technology in Atlanta to work on an electrochemical reactor that responds quickly to dynamic changes in renewable energy to work with direct air capture systems that produce syngas for hydrocarbon production; (2) a $2.3 million grant to Emvolon in Woburn, Massachusetts to repurpose automotive engines as chemical reactors to convert renewable power and greenhouse gas emissions to liquid clean fuels; and (3) a $4 million award to Washington State University in Pullman, WA to develop a carbon dioxide hydrogenation process that converts carbon dioxide and hydrogen into liquid hydrocarbons using renewable energy sources. A full list of the grant awards is available here.
  
• President Joe Biden issued a National Security Memorandum to the heads of the Departments of the Treasury, Homeland Security, Justice, and other federal agencies directing a coordinated, whole-of-government approach for disrupting the supply chain for fentanyl and synthetic opioids that will be overseen by the National Security Council. Specifically, the memo directs federal agencies to “engage collectively and collaboratively, employing all available tools, in support of the shared goal of materially and sustainably disrupting the illicit fentanyl supply chain.” The Biden Administration also called on Congress to pass legislation to permanently schedule fentanyl-related substances as Schedule I drugs and give law enforcement at the border “the tools they need to more effectively track and target the millions of small-dollar shipments that cross our borders every day.”

Tuesday, July 30^th

• A new poll from Data for Progress found that 90% of respondents said they either strongly or somewhat support the Biden Labor Department’s proposed rule addressing heat injury and illness in indoor and outdoor work settings. Democrats were more likely than independents or Republicans to “strongly” support the rule, with 78% of self-identified Democrats supporting it, compared to 63% of independents and 56% of Republicans. However, when those who “strongly” or “somewhat” supported the rule were combined, more than 80% of all three groups supported it, including 96% of Democrats and 86% each of independents and Republicans.

• The Energy Department (DOE) announced that applications are open for $36 million in Enhancement & Innovation (E&I) competitive grants, which aim to expedite the shift to clean energy through demonstration projects for residential homes. Complementary to the Weatherization Assistance Program (WAP), which offers formula funding to state entities, the E&I program offers competitive funding and flexibility to allow a broader range of innovative weatherization activities, including the installation of renewable energy technologies, electrification, comprehensive workforce development, and more expansive health and safety measures. For example, a proposal could offer on-the-job weatherization training where trainees learn how to replace old wiring or repair a leaky roof. Additionally, the program encourages weatherization providers to hire, train, and retain employees within their local communities. An optional information webinar for potential applicants will take place on August 6, 2024 at 2pm ET and registration is required. Applications are due by September 27, 2024. DOE intends to announce E&I selections in late February 2025.

• The Federal Energy Regulatory Commission (FERC) released guidance providing updates to its permitting process for electric transmission facilities, which focuses on some of the basic concerns of landowners, tribal communities, environmental justice communities and other stakeholders as outlined in FERC’s Order No. 1977, which was issued in May 2024 to update the Commission’s regulations on applications for permits to site electric transmission facilities. The guidance is available here.

Monday, July 29^th

• House Education and the Workforce Committee Ranking Member Bobby Scott (D-VA) introduced the Labor Enforcement to Securely (LET’S) Protect Workers Act, legislation to: (1) increase civil monetary penalties for violations of minimum wage and overtime, worker health and safety, child labor and farmworker protection standards; (2) create new penalties for violations of the National Labor Relations Act, consistent with the Protecting the Right to Organize (PRO) Act; (3) set new penalties for retaliation against workers who exercise their family and medical leave rights; (4) close loopholes that allow employers to escape penalties for failing to keep records of workplace injuries if the Occupational Safety and Health Administration does not detect the violation within six months; (5) strengthen enforcement of mental health parity requirements for employer-sponsored health plans; and (6) improve mine safety and reliable funding of black lung benefits through new and increased civil monetary penalties and the option to shut down scofflaw operators. The bill text is available here, a fact sheet is available here, and the section-by-section is available here.

• The Energy Department (DOE) announced $24 million in funding from the President’s Bipartisan Infrastructure Law for 21 projects in Washington State, Idaho, California, Nevada, Utah, Arizona, Nebraska, Kansas, Oklahoma, Arkansas, Iowa, Wisconsin, Illinois, Alabama, Mississippi, Georgia, Florida, Ohio, West Virginia, North Carolina, South Carolina, Maryland, New York, New Jersey, Connecticut, Massachusetts, and Rhode Island to bolster development of clean energy workforce training programs—with a focus on jobs that do not require four-year college degrees—within union training programs, community colleges, and trade schools. Over 40% of the announced funding will directly support union job training. The selected projects will expand the DOE’s existing Industrial Training and Assessment Centers (ITAC), a network that trains energy-efficiency workers to help small- and medium-sized manufacturers reduce their carbon emissions and energy costs. A full list of the ITAC expansion selectees is available here.

• The Transportation Department’s (DOT) Office of the Inspector General announced that it is initiating an audit of the Federal Highway Administration’s Advanced Transportation Technologies and Innovative Mobility Deployment program, which is authorized to receive $60 million per year from fiscal year 2022 through 2026 to deploy, install, and operate advanced transportation technologies. Grant funds through the program may be used for workforce development, planning, construction, equipment and materials for funding activities, which include installing advanced transportation and congestion management technologies for public transportation systems, integrating corridor management systems, and technology for tolling and congestion pricing.

• The Environmental Protection Agency (EPA) announced a joint project with the U.S. Army to conduct sampling and testing of private drinking water wells located near Army installations for the presence of per-and polyfluoroalkyl substances (PFAS). The joint EPA-Army sampling and testing project, which is being implemented nationally, has identified a priority list of nine installations in Alabama, California, Georgia, Kentucky, Tennessee, North Carolina and Oklahoma. As initial work is completed, the EPA and the Army will evaluate additional installations for expansion of the pilot at the rest of the 235 locations. 

• The White House posted a fact sheet on new private sector investments in American maritime industries, including plans to support U.S. jobs in the shipbuilding sector and U.S. shipbuilding competitiveness. This includes Bollinger Shipyards’ plan to build three new polar icebreakers for the U.S. Coast Guard, a “major investment” in a U.S. shipyard by David Shipbuilding to expand capacity and plans by Konecranes to establish a consortium of U.S. partners to build ship-to-shore cranes in the U.S. for North American ports.

• Speaker of the House Mike Johnson (R-LA) and Minority Leader Hakeem Jeffries (D-NY) announced the 13 members of the Bipartisan House Task Force to investigate the attempted assassination of former President Donald Trump. The seven Republicans on the Committee are: Chairman Mike Kelly (PA-16); Rep. Mark Green (TN-7); Rep. David Joyce (OH-14); Rep. Laurel Lee (FL-15); Rep. Michael Waltz (FL-6); Rep. Clay Higgins (LA-3); and Rep. Pat Fallon (TX-4). The Democrats are: Ranking Member Rep. Jason Crow (CO-6); Rep. Lou Correa (CA-46); Rep. Madeleine Dean (PA-4); Rep. Chrissy Houlahan (PA-6); Rep. Glenn Ivey (MD-4); and Rep. Jared Moskowitz (FL-23).

• The Securities and Exchange Commission’s Division of Enforcement has an “active and ongoing” investigation of NuScale Power, the first company to have its small modular reactors certified by the Nuclear Regulatory Commission. NuScale’s stock was down as much as 15% Monday following the news.

Friday, July 26^th

• The Transportation Department (DOT) announced more than $374 million in funding through the third round of grants from the Airport Improvement Program (AIP), which funds a variety of projects including the construction of new and improved air facilities, repairs to runways and taxiways, maintenance of airfield lighting and signage, and purchasing equipment needed to operate and maintain airports. Grant funding from this announcement includes: (1) $6.9 million to Birmingham-Shuttlesworth International Airport in Alabama for rehabilitation and reconstruction of several taxiways; (2) $12.8 million to Huntsville International-Carl T. Jones Field in Alabama to shift a taxiway 200 feet and rehabilitate pavement and lighting on a runway; (3) $4.6 million to Miami International Airport in Florida to reconstruct the existing Central Terminal building to increase capacity; and (4) $7.2 million to Stillwater Regional Airport in Oklahoma for construction of a new terminal building to accommodate additional passengers. A full list of the grants through today’s announcement is available here, and an interactive map of AIP grant funding is available here.

Around the Country 

Northeast 

• On August 1^st, the Labor Department (DOL) announced the award of $24,030,695 to expand apprenticeship programs in Maryland through DOL’s Apprenticeship Building America grant program. The money is intended to provide more high-quality workforce training and a direct pipeline to in-demand jobs in Maryland’s growth sectors, including transportation, health care, and technology. Awards went to the following recipients across the state of Maryland: (1) $8,000,000 for the Amalgamated Transit Union to develop a national public transit registered apprenticeship ecosystem that connects frontline workers with 6,680 trainees enrolled in registered apprenticeships and pre-apprenticeships for occupations in public transit; (2) $3,990,486, for the Asian American Center of Frederick, MD to expand their training program to increase and diversify the healthcare workforce through pre-apprenticeships and apprenticeships for immigrants and other under-resourced populations; (3) $3,882,946 for the Baltimore Alliance for Careers in Healthcare, Inc. to establish a Registered Apprenticeship Hub to expand access to high-quality apprenticeship programs in the healthcare industry, with a focus on promoting diversity, equity, inclusion, and accessibility; (4) $3,947,276 to the University of Maryland Global Campus in Adelphi, MD to develop and implement a replicable national model for increasing employment in high-demand information technology fields that consists of pre-apprenticeship, apprenticeship, higher education and job placement programs; (5) $3,117,812 to Joe’s Movement Emporium, Mount Rainier, MD to grow sustainable, living wage jobs in media and creative technologies across multiple sectors, building opportunities for both small business owners and trainees; and (6) $1,092,175 to the Maryland Governor’s Workforce Investment Board, Baltimore, MD to increase staffing for the “Apprenticeship 2030: Maryland’s Workforce Future” program.

• On July 30^th, Rep. Bill Pascrell’s (D-NJ) office said that while Pascrell remains hospitalized, he is no longer receiving breathing assistance and that “his doctors are very encouraged by his progress, have begun to discuss discharge plans, and continue to anticipate a full recovery.” Pascrell has been hospitalized since July 14^th after going to the hospital with a fever. 

• On July 30^th, a new poll found that Vice President Harris leads Trump in Pennsylvania 47% to 43%. The poll also found Sen. Bob Casey (D-PA) leading his Republican challenger Dave McCormick 47% to 42%. 

• On July 29^th, the Interior Department’s (DOI) Bureau of Ocean Energy Management (BOEM) announced the availability of its final Environmental Impact Statement (EIS) for U.S. Wind’s proposed wind project offshore Maryland and Delaware. The project proposes to install up to 114 turbines, up to four offshore substation platforms, one meteorological tower, and up to four corridors for offshore export cables. BOEM estimates that the development and construction phases of the project, if approved, could support 2,679 jobs annually over seven years.

West

• On August 1^st, the Agriculture Department (USDA) announced a $400 million investment in at least 18 irrigation districts to help farmers across the West deploy innovative water saving technologies and farming practices. The funding is expected to help conserve up to 50,000 acre-feet in water use across 250,000 acres of irrigated land in production, while expanding and creating new, sustainable market opportunities. The preliminary selected districts (list available here) may receive up to $15 million each in the awards and will enter into sub-agreements with the producers participating within the district. USDA is working to finalize agreements with the preliminarily selected districts, which will include the details of each individual district’s water-saving strategies, commodities to be produced, and specific budgets. Following the finalization of those awards, producers within the participating districts will work directly through their irrigation districts to participate.

• On August 1^st, northern California’s Panattoni Development launched a new team that will build and operate data centers across North America with the goal of developing a gigawatt of data-center capacity over the next five years—the equivalent of what it takes to power about 876,000 homes. 

• On July 29^th, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo announced the appointment of Christy Kwon as the Regional Director of the Region 32-Oakland, CA office. Kwon began her career as an NRLB Field Attorney in Los Angeles (Region 31) and was appointed Regional Attorney of the NLRB’s Oakland office in 2019. 

Northwest 

• On August 1^st, ProPublica released a new report detailing how Washington State and other U.S. states are trying to address both facilitating the growth of data centers in their states and the power and water demands they create that threaten efforts to eliminate carbon emissions from electricity generation.

Midwest

• On August 1^st, a new poll found incumbent Sen. Sherrod Brown (D-OH) leading his Republican Senate opponent Bernie Moreno by four points (46%-42%).

• On July 29^th, Democrats’ House Majority PAC announced $24 million in additional spending to target the House seats occupied by Reps. Derrick Van Orden (R-WI), Bryan Steil (R-WI), and Mariannette Miller-Meeks (R-IA).

Southeast

• On August 1^st, the Environmental Protection Agency (EPA) announced the selection of West Virginia University Research Corporation (WVU) to receive $2,486,224 to support efforts to report and reduce climate pollution from the manufacturing of construction materials. WVU is one of 38 selectees across the country that were announced on July 16, 2024, as part of a $160 million grant rollout. WVU will provide technical assistance to construction material manufacturers in the region to develop environmental product declarations (EPDs). Their project will support businesses to create comprehensive life cycle assessments that show environmental impacts and enhance their competitiveness in supplying products for federal and institutional construction projects.

• On August 1^st, a recount in Virginia’s 5^th Congressional District confirmed that House Freedom Caucus Chair Bob Good (R-VA) lost his GOP primary to Trump-backed Virginia state senator John McGuire (R) by 374 votes. Rep. Good is rabidly anti-union and has been the lead sponsor of H.R. 720 the “Davis-Bacon Repeal Act.

• On August 1^st, Tennessee state Rep. Gloria Johnson won Tennessee’s Democratic U.S. Senate primary and will face incumbent Sen. Marsha Blackburn (R-TN) in November. 

• On August 1^st, Rep. Andy Ogles (R-TN) defeated Nashville Metro Councilmember Courtney Johnston in the Republican primary for Nashville’s 5^th Congressional District. 

• On July 29^th, a new poll found progressive Rep. Cori Bush (D-MO) trailing her Democratic primary challenger Wesley Bell 48%-42% in the race for Missouri’s 1^st Congressional District.

Southwest

• On July 30^th, Kari Lake won the Arizona GOP Senate primary and will face Democratic Rep. Ruben Gallego (AZ) in the November general election. 

• On July 30^th, Rep. Eli Crane (R-AZ) won the Republican primary in Arizona’s 2^nd Congressional District against Yavapai County Board of Supervisors member Jack Smith, who had the support of former Speaker Kevin McCarthy (R-CA).

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Friday, July 26, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

MCAA Issues and Interests 

Registered Apprenticeship

Raising Concerns with Congress Regarding the ACCESS Act 

The MCAA policy team was busy this week working with the Construction Employers of America (CEA) and North America’s Building Trades Unions to quickly educate members of Congress about H.R. 7887, the “Allowing Contractors to Choose Employees for Select Skills (ACCESS) Act” introduced by Reps. Nancy Mace (R-SC) and Raja Krishnamoorthi (D-IL). While this legislation is intended to prevent the federal government from imposing college degree requirements on employees of federal contractors, it was written much more broadly and could be read to preclude apprenticeship utilization requirements in federal contracts. 

The bill was scheduled for a vote on Monday through suspension of the rules (which requires a 2/3 majority vote for passage), but MCAA and its allies convinced lawmakers to delay the vote to give us time to continue discussions about problematic portions of this bill. Pushing the bill to Tuesday ultimately led to us defeating the bill on the House floor by a vote of 178-234. We are pleased that our contribution to the outreach on this bill convinced enough members to vote “no” to send a clear message about our concerns with the legislation.

The Senate companion bill was also scheduled for a markup in the Senate Homeland Security and Government Affairs Committee on Wednesday, but the bill was pushed to next week. The delay has given our coalition time to conduct outreach to senators regarding the problematic provisions in the bill in advance of the mark up and these efforts will continue through the weekend.

DOL Apprenticeship Rule

MCAA continues advocating for the changes requested to the U.S. Department of Labor’s proposed apprenticeship rule in joint comments we filed with the UA this spring. The battle over the ACCESS Act described above served as a helpful illustration of the importance of ensuring tight and clear language around anything having to do with registered apprenticeship. We are sensing that there will be some significant changes to the proposed rule when it is finalized, but feel far from secure that all our concerns will be addressed. So we are continuing to press our case.

Project Labor Agreements and Davis-Bacon Prevailing Wage

This week, the MCAA policy team continued our outreach to oppose Congressional Review Act resolutions to rescind the MCAA-supported rulemakings on project labor agreements from the Federal Acquisition Regulatory Council and Davis-Bacon Prevailing Wage from the Labor Department. These rules are subject to litigation and our lobbying has taken on increased importance in light of the Supreme Court’s reversal of the Chevron doctrine last month in Loper Bright Enterprises. With the upcoming August and October recesses shortening the legislative calendar, we are growing confident that we may be able to prevent a legislative reversal of these rules, but we are continuing to monitor the progress of litigation as we are less certain the rules can survive judicial challenges in a post-Chevron world. 

We are also closely tracking congressional legislative responses to the reversal of Chevron as both parties signal what they may do on this issue if they secure unified control of the federal government in the November elections. The GOP’s vision for a congressional response to the end of Chevron deference in embodied in Senate Health, Education, Labor, and Pensions (HELP) Committee Ranking Member Cassidy’s (R-LA) recently introduced bill, the Upholding Standards of Accountability (USA) Act. This bill would: (1) require the head of a federal agency signing a major rule to testify about the rule before the committee of jurisdiction within 30 days of the rule being published; (2) require each person nominated to a Senate-confirmed position to testify before the committee of jurisdiction prior to Senate confirmation; (3) require federal agencies to conduct retrospective reviews of cost-benefit analyses for major rulemakings within five years of each rule’s effective date; (4) clarify that federal agencies are permitted to communicate with Congress at all times regarding proposed rules; and (5) require timely, substantive responses to congressional oversight from federal agencies. By contrast, the Democratic response is illustrated in a bill introduced this week by Sen. Warren (D-MA) and several Democrats called the “Stop Corporate Capture Act,” which would codify the Chevron doctrine. The bill would also revise the federal regulatory process through measures such as streamlining White House review of agency regulations, authorizing agencies to reinstate rules rescinded under the Congressional Review Act, and requiring all rulemaking participants to disclose industry-funded research or other related conflicts of interest.

Independent Contractors and Misclassification of Workers 

NLRB Withdraws Appeal of Joint Employer Rule Injunction 

MCAA strongly supported the National Labor Relations Board (NLRB)’s joint employer rule dating to when it was proposed in September 2022. The rule reversed a 2020 regulation that curtailed the circumstances in which a higher level contractor could be deemed a joint employer of a subcontractor, such that it was jointly liable for labor law violations, such as unfair labor practices under the National Labor Relations Act. The 2022 proposal finalized in 2023 returned to a longstanding set of rules that removed some of the legal insulation higher level contractors gained by their subcontractors misclassifying their workers as independent contractors. Unfortunately, after the 2023 rule took effect, it was challenged in court and enjoined by a federal judge in Texas.

Last Friday, July 19^th, the NLRB voluntarily dismissed its appeal of the Texas federal judge’s decision enjoining this final rule, telling the Fifth Circuit that it would “like the opportunity to further consider the issues identified in the district court’s opinion” and that dismissal would “allow it to consider options for addressing the outstanding joint employer matters before it.” The NLRB also said that it “remains of the opinion” that the joint employer rule is lawful. As a result of the dismissal, the final joint employer rule remains effectively blocked. The Board’s action leaves open the question of the extent to which the NLRB can pursue a similar definition of joint employment through case adjudication.

California Supreme Court Ruling Encourages Proponents of the Independent Contractor Business Model

This week, opponents of the MCAA-supported Department of Labor final rule on the classification of workers as independent contractors made a renewed push to kill the Labor Department Rule that makes it harder to treat workers as contractors under federal wage and hour law. The renewed push came from the victory gig companies got this week from the California Supreme Court upholding the independent contractor status of Uber and Lyft drivers under California’s Prop 22. While the case only involved independent contractor classification under California state law, it is being used in Washington, D.C. as a rallying cry for the legitimacy of the independent business contractor model more generally. MCAA is countering this renewed push to kill the Labor Department Rule, hoping to run out the clock on pending Congressional Review Act resolutions to reverse it.

This week, we were also able to highlight our concerns about misclassification in our industry by sharing with legislators the news that the U.S. Department of Labor (DOL) recovered over $1.5 million in back wages and damages for 430 technicians employed by C&G HVAC after a Wage and Hour Division investigation determined that this heating, ventilation and air conditioning company operating in Dallas, Texas misclassified its workers as independent contractors.

Pension Reform

PBGC Releases Fiscal Year 2023 Projections Report 

As we continue to engage with the prospects for pension reform in the coming 2025 tax debate related to the impending expiration of the Tax Cut and Jobs Act of 2017, we wanted to be sure that you saw that on July 19^th, the Pension Benefit Guaranty Corporation (PBGC) released its Fiscal Year 2023 Projections Report showing an improved financial outlook for the Multiemployer Defined Benefit Pension insurance program. The new projections indicate that the Multiemployer Insurance Program, which covers about 11 million participants in about 1,360 plans, is now likely to remain financially sound for more than 40 years thanks to the MCAA-supported Special Financial Assistance Program. The PBGC notes that projected outcomes in this year’s report slightly improved compared to last year because of strong 2023 investment performance.

Decarbonization

Palmer Introduces CRAs on DOE Clean Energy Loan Rule and Energy Conservation Standards 

On Friday July 19^th, Rep. Gary Palmer (R-AL) introduced two separate Congressional Review Act (CRA) resolutions to rescind Energy Department (DOE) decarbonization rulemakings. The first CRA, H.J. Res. 191, seeks to overturn DOE’s final rule entitled, “Loan Guarantees for Clean Energy Projects.” The second CRA, H. J. Res. 189, seeks to overturn DOE’s final rule entitled, “Energy Conservation Program: Energy Conservation Standards for Air-Cooled Commercial Package Air Conditioners and Heat Pumps.” Neither CRA currently has any cosponsors. But similar efforts to repeal decarbonization rulemakings from the Energy Department and the EPA also found their way into the text of several pending House Appropriations bills. While these bills remain stalled, they are indicators of policy priorities that could move if Republicans gain unified control of Congress in November. 

Fiscal Hawks Question Decarbonization Incentives

As we engage Congress on concerns about the unintended consequences of certain decarbonization efforts, we are hearing growing concern among fiscal hawks in Congress about the EPA’s frantic race to meet a September 30, 2024 deadline for distributing the $27 billion in Inflation Reduction Act funds for climate friendly grants through the Greenhouse Gas Reduction Fund. There have been several EPA Inspector General reports about inadequate management of the massive program and the fact that the 35-person team overseeing this unprecedented grantmaking and awards process is just too small to ensure program integrity and avoid a repeat of fraud akin to what happened with certain government programs during COVID.

McKinsey Survey Finds Early Adopting EV Owners Want to Switch Back to Gas-Powered Cars

Something else that made a splash in Washington, D.C. on the decarbonization front was a July 25^th survey from McKinsey and Company finding that 46% of electric vehicle owners claimed they were likely to switch back to internal combustion engines. The McKinsey survey reinforced a recent Gallup poll finding that fewer owners of traditional internal combustion engine vehicles in the U.S. are considering an electric vehicle purchase. These datapoints are causing even many moderates in Congress to begin questioning decarbonization through electrification incentives. We are trying to parlay these concerns into deeper reflection about mandating electric water heaters and similar energy efficiency efforts that raise issues for our industry.

NLRB Issues Final Rule on 9(a) Recognition and Other Union Election Issues 

Today, The National Labor Relations Board (NLRB) issued its final rule on “Fair Choice—Employee Voice,” which restores three NLRB policies facilitating union organizing—including the NLRB’s policy on voluntary recognition in the construction industry. First, the final rule revives the NLRB’s prior approach to voluntary recognition in the construction industry, as reflected in case law. This would include restoring a six-month limitations period for election petitions challenging a construction employer’s voluntary recognition of a union under Section 9(a) of the National Labor Relations Act (NLRA), as established in Casale Industries. It would also include the principle established in Staunton Fuel that sufficiently detailed language in a collective bargaining agreement can serve as sufficient evidence that voluntary recognition was based on Section 9(a) of the Act.

Second, the final rule reinstates the Board’s long-established “blocking charge” policy as most recently reflected in a 2014 rule. Under this approach, when unfair labor practice charges are filed while an election petition is pending, a Regional Director may delay the election if the conduct alleged threatens to interfere with employee free choice.

Finally, this new rule eliminates the required notice-and-election procedure triggered by an employer’s voluntary recognition of a union based on a showing of majority support among employees. The final rule is effective on September 30, 2024 and will only be applied to cases filed after the effective date.

Other Interesting Things Since Our Last Report 

Thursday, July 25^th

• The Commerce Department reported that U.S. economic activity was considerably stronger than expected during the second quarter, boosted by a strong consumer and government spending. Real Gross Domestic Product (GDP) increased at a 2.8% annualized pace adjusted for seasonality and inflation. This blew past economists’ expectations for growth of 2.1% following a 1.4% rise in the first quarter. 

• There was detailed reporting this week about expectations that former President Trump is expected to draw heavily from the Senate GOP conference to fill his Cabinet if he wins a second term, including: (1) Sen. Bill Hagerty (R-TN) as a potential Treasury Secretary; (2) Sen. Marco Rubio (R-FL) as either CIA Director, Director of National Intelligence, or Secretary of State; (3) Sen. Tom Cotton (R-AR) as Defense Secretary; (4) Sen. Tommy Tuberville (R-AL) as Education Secretary; (5) Sen. Tim Scott (R-SC) as Health and Human Services Secretary or Housing and Urban Development Secretary; and (6) Sen. Eric Schmitt (R-MO) as Attorney General. Notably, all these Senators hail from states that currently have Republican governors, which presumably reduces concerns that their departures could affect the post-election partisan balance of power in the Senate. But the departure of these members would still scramble the politics for senior posts on important Senate Committees and require quick adjustments and relationship development. 

• The Environmental Protection Agency (EPA) announced over $325 million in funding from the President’s Inflation Reduction Act through the Community Change Grants Program (CCPG) for 21 projects that reduce pollution, increase community climate resilience, and build community capacity. These projects are the first selected applications under the CCPG program’s rolling application process, which is still accepting applications through November 21, 2024. Grants in this announcement include funds for water infrastructure, installation of electric vehicle chargers and solar systems, retrofitting public buildings with HVAC and solar systems, and other such projects including: (1) $20 million to the Coalition for Responsible Community Development and Los Angeles Trade-Technical College to build environmental justice workforce development trainings for lead abatement, welding, hybrid and electric vehicle maintenance, home weatherization, and residential energy audits; (2) over $14 million to Texas A&M University and the Black Belt Unincorporated Wastewater Program to install onsite wastewater treatment systems throughout 17 Black Belt counties in Alabama; (3) roughly $14 million to the Pittsburgh Conservation Corps and PowerCorpsPHL to expand workforce programs around urban forestry and wood waste reduction; and (4) nearly $20 million to the Midwest Tribal Energy Resources Association (MTERA) and Grid Alternatives to install home weatherization and energy efficiency upgrades across 35 tribes in Michigan, Minnesota, and Wisconsin.

Wednesday, July 24^th

• The Energy Department (DOE) awarded $371 million for 20 projects across 16 states through the President’s Inflation Reduction Act’s Transmission Siting and Economic Development (TSED) grant program. The TSED grant program provides funding to advance transmission projects by accelerating siting and permitting while supporting economic development efforts in communities impacted by transmission construction and operation. The program includes two distinct grants: (1) grants for siting and permitting activities; and (2) grants for economic development activities. The awards include: (1) $35 million to the Michigan Department of Labor and Economic Opportunity for specialized education and training through electric utility apprenticeship and pre-apprenticeship programs, as well as training for electric vehicle infrastructure construction and installation; (2) $50 million to the New Jersey Economic Development Authority for renewable transmission infrastructure, pre-apprenticeship, and apprenticeship training opportunities for electrical careers in partnership with the International Brotherhood of Electrical Workers (IBEW) Local Union 400, and to build new bike trails along transmission rights-of-way; (3) $50 million to Guymon Public Schools to construct a workforce development center that will provide general workforce trainings and classes for adults, and a new junior high school that will include an outdoor environmental science classroom and a specialized STEM lab; (4) $42.3 million to the Massachusetts Department of Energy to install a renewable energy-powered microgrid at the Barnstable High School and Intermediate School Complex that will support electric vehicle charging; (5) $15 million to the Northeast Oregon Economic Development District to fund economic development projects focused on workforce, infrastructure, housing, and business development; and (6) $8.38 million to the Virginia Department of Energy, through the Hampton Roads Energy Workforce Development Initiative, to provide training opportunities and job prospects to 350 people in the clean energy sector to serve the Hampton Roads area.

• The Internal Revenue Service (IRS) issued Notice 2024-60 providing initial guidance on the credit for the sequestration of carbon oxide as amended by the Inflation Reduction Act of 2022 (IRA). The notice describes information that must be included in a written report known as the lifecycle analysis (LCA) report and provides the procedures a taxpayer must follow to submit the report along with required supporting information to the IRS and the Biden Energy Department for review. Before the IRS allows a carbon sequestration credit, it must approve the analysis of greenhouse gas emissions documented in the LCA with respect to carbon capture property placed in service on or after February 18, 2018.  

• The Interior Department (DOI) announced more than $20.4 million from President Biden’s Investing in America agenda to support jobs in coal communities with abandoned mine lands by investing in projects that close dangerous mine shafts, reclaim unstable slopes, improve water quality by treating acid mine drainage, and restore water supplies damaged by mining. Awards can also enable economic revitalization by reclaiming hazardous land for recreational facilities and other redevelopment, such as advanced manufacturing and renewable energy deployment.
  
• The CEO of NextEra Energy said that renewable energy demand will triple over the next seven years as data center growth accelerates to facilitate the proliferation of artificial intelligence. NextEra has added 3,000 megawatts of renewable and storage projects to its order backlog in the second quarter. Of those, 860 megawatts (28%) come from agreements with Google to power data centers.

Tuesday, July 23^rd

• During a House Oversight and Accountability Committee hearing on pharmacy benefit managers (PBMs), Chair James Comer (R-KY) explained that an investigation by his Committee found that PBMs have devised formulas of preferred medicines that encouraged use of higher-priced drugs over lower-priced alternatives. Comer also said Committee investigators found that PBMs made patients pay more to use their local pharmacy rather than a mail-order pharmacy affiliated with the PBM. Chairman Comer said bluntly: “There’s a credibility issue with the PBMs. There’s a transparency issue with the PBMs. You have anticompetitive policies.” Among other things, the 51-page House Oversight Committee report released ahead of Tuesday’s hearing confirmed that PBMs often favor brand-name medicines, with higher prices and likely heftier rebates that can benefit the PBM, over lower-cost alternatives, costing patients, PBM clients and taxpayers money. The report is the product of a months-long investigation work by Republican Oversight Committee staff. Notably, the report cites favorably to the Biden-appointed Federal Trade Commission’s (FTC) report on PBMs that prompted the FTC to sue the largest PBMs for anticompetitive practices in drug pricing. 
  
• A Biden-appointed federal judge in Philadelphia, Kelley Hodge, refused to enjoin the Federal Trade Commission’s (FTC) final rule banning noncompetition agreements. Judge Hodge disagreed with a decision earlier this month by a federal judge in Texas enjoining the FTC from enforcing the rule against a coalition of business groups including the U.S. Chamber of Commerce, the country’s largest business lobby, and tax service firm Ryan while they pursue legal challenges. Judge Hodge reasoned that the FTC has the power to ban practices that it deems anticompetitive, including the use of so-called noncompete agreements that curb competition for labor. Not long after Judge Hodge’s ruling, The Senate Banking Subcommittee on Economic Policy noticed a hearing next Tuesday, July 30^th at 2:30PM, on “Banning Noncompete Agreements: Benefits for Workers, Businesses, and the Economy,” with witnesses: (1) Dr. Heidi Shierholz, PhD, President, Economic Policy Institute; and (2) R. James Toussaint, MD FAAOS, an orthopedic surgeon.
  
• The Equal Employment Opportunity Commission (EEOC) announced a virtual workshop on August 7, 2024 entitled, “Legal Updates and Pregnant Workers Fairness Act FAQs with EEOC Legal Counsel Carol Miaskoff.” During the workshop, Miaskoff will break down recent significant court rulings, pivotal EEOC litigation, and recent filings. The workshop will also address questions about the Pregnant Workers Fairness Act (PWFA) and the newly issued regulations that went into effect on June 18, 2024. Some of the top FAQs that will be discussed at the workshop include: (1) documentation that is necessary under the PWFA; (2) which post-pregnancy conditions are covered; and (3) how the PWFA and the Family and Medical Leave Act regulations relate to each other. The workshop will be held on August 7, 2024 from 1pm to 3pm ET and there is a $275/person fee to attend. Those interested in participating in the workshop should register here in advance. 

• President Biden announced the nomination of Matthew Marzano to serve as a member of the Nuclear Regulatory Commission. Marzano is currently an Idaho National Laboratory detailee on the Senate Environment and Public Works Committee where he advises the Committee on matters related to clean air, climate, and energy.

• Twenty-five Republican-led states sent a petition to the Supreme Court arguing that the Biden Administration’s final rule to limit greenhouse gas emissions from fossil fuel-fired power plants should be stayed following the D.C. Circuit Court’s decision to allow the rule to remain in force as legal challenges continue.

Monday, July 22^nd

• The Environmental Protection Agency (EPA) awarded $4.3 billion to 25 applicants that will fund projects in 30 states to cut pollution in various sectors, such as buildings, industry, electric power, transportation, agriculture lands, and waste and materials management. The funds are provided through the Climate Pollution Reduction Grants (CPRG) Program, which is part of the $27 billion Greenhouse Gas Reduction Fund established by the President’s Inflation Reduction Act. The awards include: (1) $1.06 billion for Green Buildings, including incentives for energy efficiency measures in nearly 700,000 residences, such as deploying an estimated 580,000 electric heat pumps, as well as energy efficiency measures and improvements in 50 million square feet of commercial buildings and in 250 public buildings; (2) $372 million for Clean Electric Power Projects, including incentives to start deployment of up to 19,000 megawatts of solar and wind generation by 2030 and re-development of brownfields and landfills to support renewable energy; (3) $1.18 billion for transportation projects, including charging infrastructure for zero-emission freight trucks along the nation’s busiest freight traffic corridors, as well as incentives to deploy light-duty electric vehicles, electric trucks, electric chargers, electric locomotives, and bikeshares and electric bikes; (4) $636 million to address industrial pollution, including $500 million for state-level grants to fund projects that reduce greenhouse gas emissions from industrial facilities and measures to reduce methane emissions from coal mines and oil and gas production; and (5) $121 million to address waste and materials management, including as many as 100 projects to capture methane from landfills and reduce emissions equivalent to approximately 4 million metric tons of CO₂ through 2030. The full list of recipients is available here. 

• The House passed H.R. 8812, the MCAA-supported Water Resources Development Act of 2024 (WRDA), by a strong, bipartisan vote of 359-13. The bill provides approximately $10 billion for 12 projects along coasts throughout the U.S. for flood control, navigation, hurricane and storm damage risk reduction, and ecosystem restoration. It also directs the Army Corps of Engineers to conduct 161 feasibility studies of potential water resources projects with an emphasis on drought resilience and water conservation efforts. The House-passed bill will now have to be reconciled with the Senate version (S. 4367) advanced in May by the Environment and Public Works (EPW) Committee. EPW Chair Tom Carper (D-DE) and Ranking Member Shelley Moore Capito (R-WV) filed their bill as an amendment to the 2025 National Defense Authorization Act (S. 4368), which is pending floor action in the Senate, but given the bipartisan support for WRDA, the Senate bill could also come to the floor as a stand-alone measure.

• Senate Energy and Natural Resources Chair Joe Manchin (I-WV) and Ranking Member John Barrasso (R-WY) reached an agreement on a permitting reform bill entitled, The Energy Permitting Reform Act, which is intended to speed up the buildout of both renewable and fossil fuel energy sources. Among other provisions, the bill sets a deadline for the Biden Energy Department to make decisions about whether to approve or reject a gas export project—effectively ending President Biden’s pause on gas export approvals. It also seeks to make it easier to extract oil and gas from public lands and to build renewable projects there. The bill would also require the federal government to give companies at least one opportunity each year to bid on changes to drill offshore and to bid on changes to build offshore wind farms between the years 2025 and 2029. This provision would expand offshore drilling beyond the Biden Administration’s current plans to offer up to three chances to bid on offshore drilling rights during that period. 

• In a bet on growing global demand for liquefied natural gas (LNG), Australia’s largest oil and gas company, Woodside Energy Group, Ltd., agreed to buy troubled U.S. liquefied natural gas export project developer Tellurian Inc. for $900 million, including the proposed U.S. Gulf Coast Driftwood LNG project.

Friday, July 19^th

• The Federal Trade Commission (FTC) and the Department of Justice (DOJ) announced that they have extended the comment period – from July 22, 2024 to September 20, 2024 – for a May 23, 2024 joint Request for Information (RFI) to gather public feedback on serial acquisitions and roll-up strategies (i.e., corporate consolidation by buying smaller firms in the same or similar sectors or industries) in all sectors and industries, including but not limited to housing, construction, agriculture, professional service markets, and distribution business. This RFI complements a parallel government inquiry that seeks to understand how certain health care market transactions by private equity firms and other corporations may increase consolidation and generate profits while threatening patients’ health, workers’ safety, quality of care, and affordable health care for patients and taxpayers. Text of the RFI is available here.

• In its 2025 Mid-Session Review, the White House Office of Management and Budget (OMB) predicted that the cumulative deficit will be about $1.2 trillion higher over the next decade than it estimated in its FY 2025 budget request in March, due in part to higher Medicaid spending, greater use of premium tax credits and cost-sharing reductions in the Affordable Care Act, and higher spending on veterans compensation and pensions.

Thursday, July 18^th

• The Labor Department announced the availability of $99 million in funding through the YouthBuild Program to support the delivery of pre-apprenticeships in high-demand industries including construction, infrastructure, clean energy, and healthcare. The YouthBuild Program grants provide occupational skills training, employment services, and academic support to individuals aged 16-24 in communities where they face persistent barriers to career skills and academic development. Administered through DOL’s Employment and Training Administration, the YouthBuild Program will fund individual grants for approximately 75 projects, with each grant ranging from $700,000 to $1.5 million.

Wednesday, July 17^th 

• Sen. Josh Hawley (R-MO) published an op-ed in “Compact Magazine” entitled, “The Promise of Pro-Labor Conservatism,” that applauded Teamster President Sean O’Brien’s speech at the RNC on Monday and accuses the “C-Suite” of selling out the United States, “shuttering factories in the homeland and gutting American jobs, while using the profits to push diversity, equity, and inclusion and the religion of the trans flag.” Hawley goes on to argue that “thanks to Donald Trump, there is much that Republicans and labor can already agree on” including that “China is ripping us off and strong tariffs must be maintained and expanded.” Hawley also advocated for Republicans to get to work on bipartisan labor reform saying that “thousands of Americans have voted to unionize in elections but can never get a contract done, often due to corporate tricks.” Hawley ended by saying he will “make sure that Republicans in Congress get to work in 2025” so maybe in a few years, a Teamsters president speaking at the RNC won’t be such a surprise.

Tuesday, July 16^th

• National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo sent a memo to all NLRB field offices reaffirming her commitment to seeking Section 10(j) injunctions after the Supreme Court’s recent decision in Starbucks Corp. v. McKinney, which set a uniform four-part test applicable to all Section 10(j) injunction petitions. General Counsel Abruzzo explained that, while the Supreme Court’s decision in Starbucks Corp. provides a uniform standard to be applied in all Section 10(j) injunctions nationwide, adoption of this standard will not have a significant impact on the NLRB’s Section 10(j) program as the agency has ample experience litigating injunctions under that standard and has a high rate of success in obtaining injunctions under the four-part test—a success rate equivalent to or higher than the success rate in circuit courts that applied the two-part test. 

• The Environmental Protection Agency (EPA) announced the award of nearly $160 million to 38 grant recipients to support efforts to report and reduce climate pollution from the manufacturing of construction materials and products. The grants will support the Federal Buy Clean Initiative, which leverages the federal government’s purchasing power to catalyze demand for clean construction materials used in federal buildings, highways, and infrastructure projects. The grant selections include a diverse range of projects to help measure and reduce greenhouse gas emissions. For example: (1) several projects will support workforce development to grow the number of sustainable construction professionals available to support the use of clean construction materials; (2) a project in Maine will help a company that manufactures insulation made from wood fiber track the quantity of energy and raw materials used in each of their processes; (3) a project in Illinois will help a nonprofit organization that sells reused architectural materials measure how much the salvaged materials reduce carbon emissions; (4) a large insulation manufacturer based in Indiana will use grant funding to measure and report greenhouse gas emissions for their full product portfolio; (5) a major university will use grant funds to research and document carbon emissions savings from reusing structural steel; and (6) a company in Georgia will receive funding to report the emissions savings gained by switching from higher-carbon components in cement and concrete to recycled and innovative materials. Summaries of the proposed grantee projects are available here. 

Monday, July 15^th

• The Department of Labor announced a final rule updating eligibility requirements for current and former nuclear weapons workers seeking to file claims related to beryllium sensitivity and making benefits available to people once deemed ineligible. Specifically, the final rule revises regulations governing the Energy Employees Occupational Illness Compensation Act (EEOICPA), which provides lump sum compensation and medical benefits to current and former nuclear weapons workers whose illness is the result of working in the nuclear weapons industry. In December 2023, the National Defense Authorization Act changed the eligibility requirements for those filing claims for beryllium sensitivity to allow previously ineligible claimants to obtain benefits under EEOICPA. Before the update, a claimant could only establish beryllium sensitivity by presenting one abnormal (i.e., the cells show a clear, significant reaction to beryllium) beryllium lymphocyte proliferation test performed on blood or lung lavage cells. Under the final rule, beryllium sensitivity can now also be established by submitting three borderline (i.e., the cells show a reaction to beryllium, but a less significant reaction than the abnormal test) beryllium lymphocyte proliferation tests of blood cells in the three-year period.

Around the Country 

Northeast 

• On July 24^th, the Transportation Department’s Federal Highway Administration (FHWA) announced final agency actions with respect to a project to rebuild the I-695 (Baltimore Beltway) Francis Scott Key Bridge over the Patapsco River in Baltimore, MD. As you are aware, the Francis Scott Key Bridge collapsed on March 26, 2024 following a collision with the container ship Dali. Specifically, the FHWA has issued a Categorical Exclusion (CE) classification and NEPA approval for the I-695 Francis Scott Key Bridge Rebuild Project, noting that because the replacement Key Bridge will be within the former bridge’s right-of-way and have the same capacity of four travel lanes, it is not anticipated to significantly impact community, natural, or cultural resources beyond what previously existed. Relatedly, the Maryland Department of Transportation announced that it has released a Request for Proposals inviting consultant teams to submit proposals for the $75 million General Engineering Consultant contract as part of the Francis Scott Key Bridge Rebuild. Interested bidders can access the Request for Proposals on the eMaryland Marketplace Advantage website. The General Engineering Consultant proposals are due by August 19, 2024. The Maryland Department of Transportation expects to award the contract in February 2025, which will have a Disadvantaged Business Enterprise goal of 31.5%.

• On July 16^th, Sen. Bob Menendez (D-NJ) was found guilty of bribery, acting as a foreign agent, and a slew of other charges in his federal corruption case. His sentencing in the case has been scheduled for October 29, 2024. On July 23^rd, Menendez announced he would resign from the Senate, effective August 20^th. Gov. Phil Murphy (D-NJ) must appoint a replacement to fill the remainder of Menendez’s term, which ends January 3, 2025. Murphy has said he would appoint a caretaker to the seat and possible candidates include: Lt. Governor Tahesha Way, former NJ Secretary of State Nina Mitchell Wells, and U.S. District Court Judge Esther Salas.

West

• On July 22^nd, the Interior Department (DOI) announced a request for applications (RFA) for $450 million in funding under the President’s Inflation Reduction Act for ecosystem and habitat restoration projects in the Upper Colorado River Basin that address impacts from drought. The RFA is available here. Monday’s announcement addresses the “Bucket 2 Environmental Drought Mitigation” (B2E Component) of this funding opportunity, which provides funding to public entities and tribes for projects that provide general environmental benefits or ecosystem/habitat restoration benefits that address issues directly caused by drought. The other component of this funding opportunity, “Bucket 2 Water Conservation” (B2W Component) aims to identify and fund projects that achieve verifiable, multi-year reductions in use of or demand for water supplies. The B2W component is still in development and a funding opportunity is expected to be announced later this year. 

• On July 17^th, the Bureau of Land Management (BLM) opened a public comment period regarding the sale of 20 acres of public land to Clark County, Nevada for below market value at just $100 an acre, which the county estimates will enable the development of nearly 150 affordable homes for households making less than 80% of area median income. Comments will be accepted until September 3, 2024 and can be submitted by mail to BLM Las Vegas Field Office, Assistant Field Manager, Division of Lands, 4701 North Torrey Pines Drive, Las Vegas, NV 89130. BLM is also considering an additional 562.5 acres of public land that have been identified by local governments in Southern Nevada that are appropriate for affordable housing in the Las Vegas Valley. The 562.5 acres could support the building of up to 15,000 or more additional affordable rental and homeownership units in Nevada. 

Midwest 

• On July 25^th, the Environmental Protection Agency (EPA) announced a partnership with the City of North Chicago to accelerate the replacement of local lead water pipes through the Get the Lead Out Initiative, a program funded entirely by the Bipartisan Infrastructure Law to help move the nation towards achieving 100% lead service line replacement.

• On July 22^nd, to increase America’s nuclear submarine force, the White House announced the Michigan Maritime Manufacturing (M3) initiative, a joint effort between the U.S. Navy and the state of Michigan to “build skilled workforce pipelines and programs to help meet our nation’s demand for over a hundred thousand new workers in the submarine and maritime industries over the next decade”. The initiative includes $16 million to implement an accelerated welding and computer numerical controlled (CNC) machining training program, up to $10.75 million over five years to increase the national hub-and-spoke network of advanced machining training centers, and $2 million in educational outreach to inspire interest in manufacturing jobs and maritime careers.

Southwest

• On July 23^rd, Rep. Austin Pfluger (R-TX) jumped into the race to lead the Republican Study Committee—the largest ideological caucus in Congress of either party—and will face Rep. Ben Cline (R-VA), a House Freedom Caucus member. 

• On July 19^th, Rep. Sheila Jackson Lee’s (D-TX) family announced that she passed away following a pancreatic cancer diagnosis two months ago.

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Friday, July 12, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

MCAA Issues and Interests 

Project Labor Agreements

MCAA Joins CEA in Letter Defending Project Labor Agreements

On June 26^th, ahead of a House Oversight Subcommittee hearing the next day entitled, “Cutting Competition in Contracting: The Administration’s Pricey Project Labor Agreement Mandate,” MCAA helped the Construction Employers of America (CEA) prepare and submit a detailed statement defending Project Labor Agreements (PLAs) generally, as well as the Federal Acquisition Regulatory (FAR) Council’s final rule on using PLAs for large-scale federal construction projects estimated at $35 million or more. In the letter, CEA explained opponents of PLAs were just using the hearing to “rehash tired arguments about PLAs that have been thoroughly discredited by presidential administrations of both parties, federal regulators, and credible scholars.” The letter detailed how the arguments against PLAs have been thoroughly debunked as recently as the Treasury Department’s final rule regarding “Increased Amounts of Credit or Deduction for Satisfying Certain Prevailing Wage and Registered Apprenticeship Requirements.” In that final rule, Treasury rejected the false assertions that PLAs increase costs and reduce the hiring of local contractors, minorities, women, and veterans on federal construction, as well as assertions that PLAs compel workers to become union members. The letter also notes exhaustive studies discrediting the assertion that PLAs increase the cost of federal construction projects. The letter was entered into the hearing record by Subcommittee Chair Gerry Connolly (D-VA). 

The hearing went as expected. Associated Builders and Contractors (ABC) Vice President of Regulatory, Labor, and State Affairs Ben Brubeck and Aric Dreher of Cianbro, a member of the Associated General Contractors of America (AGC), asserted that PLAs undermine recent federal investments in infrastructure and clean energy, result in project delays, increase project costs by 12-20%, and exacerbate the construction labor shortages since only 11% of workers are union members. House Republicans used the hearing to call for passage of the “Fair and Open Competition Act” and Rep. Clay Higgins’ (R-LA) Congressional Review Act resolution overturning the FAR Council’s final PLA rule—both of which MCAA is actively lobbying against. The CEA letter MCAA helped to prepare proved useful in clarifying the record because only two members supporting PLAs attended the hearing—Subcommittee Ranking Member Connolly (D-VA) and Rep. Ayanna Pressley (D-MA)—and after submitting our letter into the record, Connolly had to leave early due to an apparent COVID exposure. MCAA also contributed to the defense of PLAs at the hearing because the one minority witness defending PLAs at the hearing, Jacob Snyder of Enerfab, quoted extensively from MCAA’s Independent Project Analysis (IPA) Study confirming that union mechanical contractors were 15% more productive than non-union contractors, with a more than 40% reduction in risks of cost and schedule overruns, and a 4% reduction in total costs versus non-union projects. MCAA’s efforts before and after the hearing prevented it from being the catalyst opponents of PLAs hoped it would be.

Davis-Bacon Prevailing Wage

District Court Partially Enjoins Davis-Bacon Modernization Rule

As the MCAA policy team continues fighting off appropriations riders to curtail Davis-Bacon, legislative efforts to reverse the Labor Department’s final MCAA-supported Davis-Bacon Rule, we experienced a legal setback on Davis-Bacon. On June 24^th, U.S. District Court Judge Sam Cummings of the Northern District of Texas sided with the AGC and issued a preliminary injunction precluding enforcement of portions of the Davis-Bacon rule. Specifically, he found that the Labor Department likely went beyond its authority by expanding coverage to truck drivers and material suppliers, reasoning that the Davis-Bacon Act only applies to “mechanics and laborers employed directly on the site of the work.” Cummings also found that the Labor Department did not have the power to apply prevailing wage requirements to contracts that are silent on such requirements. Judge Cummings must still issue a decision on the merits of the challenge to the entire rule. And he will do so subject to the Loper Bright ruling directing him not to defer to the Labor Department’s interpretation of whether the rule is a lawful exercise of its authority under the Depression-era Davis-Bacon Act.  

Registered Apprenticeship

Key Committee Chair and Ranking Member Press Labor Secretary Su to Detail How Reversal of Chevron Deference Doctrine Will Impact the Pending Apprenticeship Rule and Other Regulatory Efforts

Since the Supreme Court’s decision in Loper Bright Enterprises overturning the Chevron deference doctrine, the Chair of the House Education and Workforce Committee, Virginia Foxx (R-NC) and Senate Health, Education, Labor, and Pensions (HELP) Committee Ranking Member Bill Cassidy (R-LA) sent a letter to Labor Department Acting Secretary Julie Su asking how the decision impacts the Department’s regulatory efforts, including the pending rulemaking on “National Apprenticeship System Enhancements,” about which MCAA filed joint comments with the UA expressing a range of concerns. In particular, Senator Cassidy said the pending apprenticeship rule turns a “two-page law into 135 pages of new regulatory requirements” and “drastically expand[s] regulatory burdens on states and apprenticeship sponsors, discourage[s] voluntary participation in the national apprenticeship system, and inject[s] political ideology into the national apprenticeship system through new diversity, equity, and inclusion policies.” Both letters press Secretary Su to detail how DOL will change its current regulatory practices in response to this critical change in federal administrative law.

DOL Announces New Grant Awards to Expand Registered Apprenticeship into Clean Energy 

As we continue to engage the U.S. Department of Labor (DOL) on the proposed rule on National Apprenticeship System Enhancements, the Department continues providing federal funding to expand apprenticeship programs. On July 11^th,  DOL announced $244 million in awards through two grant programs to help modernize, diversify, and expand the Registered Apprenticeship system into growing U.S. industries, including, among others, clean energy, advanced manufacturing, and supply chains. Nearly $195 million will be provided though the second round of grant funding under the Apprenticeship Building America Initiative, while $49 million will come through the second round of the competitive portion of the State Apprenticeship Expansion Formula grants program, which helps states and territories advance Registered Apprenticeship as a talent development strategy and create post-secondary education career pathways. This followed a separate DOL announcement awarding over $39 million in State Apprenticeship Expansion Formula grants to 46 states and territories to increase the capacity of Registered Apprenticeship programs across key industries, including clean energy and transportation.

Independent Contractors and Misclassification of Workers

MCAA continues fighting in Congress to prevent the reversal of the Labor Department’s MCAA-supported final rule clarifying the classification of workers under federal wage and hour law making it harder to classify workers in our industry as independent contractors instead of employees. Like our other regulatory victories, this rule is also facing litigation and is subject to new risks in the courts following the Supreme Court’s reversal of the Chevron deference doctrine. With each passing day of this session of Congress, our confidence grows that we can prevent a legislative reversal of this rule, but we are far less certain it will withstand the many court challenges pending against it following the Loper Bright decision.

Pension Reform

Biden Nominates Deva Kyle to Be Next PBGC Director 

On the pension reform front, the most significant development is that President Biden nominated attorney Deva Kyle to be the next Pension Benefit Guaranty Corporation (PBGC) Director to replace former Director Gordon Hartogensis, who stepped down at the end of April. Kyle is at New York union-side law firm Cohen, Weiss, and Simon, LLP, where she specializes in employee benefits. Kyle began her career as an attorney at the PBGC, where she became assistant chief counsel for large-exposure litigation and Chapter 11 bankruptcy cases. She then served as staff director in the PBGC’s Office of Policy and External Affairs and as acting Deputy Chief of Negotiations and Restructuring where she helped lead PBGC’s single and multiemployer insurance programs. In 2015, Kyle was detailed to the Treasury Department where she helped craft the Department’s Multiemployer Pension Reform Act program regulations and processes. Once the program was established, Kyle worked with the special master to oversee the first team of analysts, actuaries, and attorneys. Kyle also understands the legislative dynamics around pension reform because in 2017, the PBGC detailed her to serve as tax counsel for the House Ways and Means Committee, advising its members and members of the now-defunct Joint Select Committee on Solvency of Multiemployer Pension Plans on retirement policy and law. As her confirmation proceeds, we are hopeful that we will soon have a new PBGC Director who understands that need for further pension reform and possesses the legal and political experience to advance it.

House Ed/Workforce Subcommittee Hearing on EBSA with Administrator Gomez

At the end of June, the MCAA team was busy preparing for and responding to a June 27^th House Education and the Workforce Subcommittee on Health, Employment, Labor, and Pensions hearing with Employee Benefits Security Administration (EBSA) Assistant Secretary Lisa Gomez. During the hearing, Subcommittee Chair Bob Good (R-VA) criticized Gomez’s leadership and accused the Biden Administration of using EBSA to “promote their woke agenda.” In particular, Good singled out several rulemakings, including the EBSA’s 2022 MCAA-supported final rule on Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights. MCAA aided in the defense of this rulemaking.  

Heat Injury and Illness Rulemaking 

White House Concludes Review of Heat Injury and Illness Proposed Rule

As the MCAA policy team continues to engage on the Occupational Safety and Health Administration’s (OSHA) proposed rulemaking on “Heat Injury and Illness in Indoor and Outdoor Work Settings” we wanted to be sure that you saw that on July 2^nd, the White House announced it completed its review of the proposed rule ahead of its publication in the Federal Register and released unofficial text of the various components of this massive rulemaking: (1) the regulatory text of the rule; (2) the proposed rule’s background, health effects, risk assessment, and explanation of proposed requirements; and (3) the proposed rule’s preliminary economic analysis. In addition to these materials, OSHA also released a fact sheet on the proposed rule in both English and Spanish. While the Biden Administration’s Spring 2024 Regulatory Agenda for the Labor Department indicates that this rule will be published next month, the fact the DOL has already released the aforementioned documents indicates that they may formally publish the proposed rule in the Federal Register earlier than next month. This will kick off a 120 day comment process. MCAA is already collaborating with the Construction Industry Safety Coalition (CISC) to prepare thorough and thoughtful comments about this sweeping regulatory effort. CISC represents a wide array of the largest associations in both the union and non-union construction and maintenance industries and serves as a forum for advancing shared concerns about health and safety issues across these associations.

Decarbonization

President Biden Signs ADVANCE Act into Law

On the decarbonization front, we wanted to be sure that you saw that on July 9^th, President Biden signed the MCAA-supported “Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act” into law. This legislation boosts U.S. domestic nuclear energy production by: (1) directing the Nuclear Regulatory Commission (NRC) to develop processes for expedited review and licensing of nuclear reactors and fuels; (2) supporting the deployment of advanced nuclear reactors; and (3) streamlining the regulatory requirements for micro-reactors. In addition, the bill directs the NRC to report to Congress within six months on manufacturing and construction for nuclear energy projects detailing existing licensing issues and requirements, examining the requirements for nuclear-grade components in manufacturing and construction for nuclear energy projects, and identifying safety aspects of advanced manufacturing processes and advanced construction techniques that are not addressed by existing codes and standards.

House Passes Bills to Block DOE Energy Conservation Standards on Dishwashers and Refrigerators

Also on the decarbonization front, on Tuesday the House passed: (1) H.R. 7700, the “Stop Unaffordable Dishwasher Standards Act,” legislation to block efficiency standards for dishwashers, by a vote of 214-192; and (2) H.R. 7637, the “Refrigerator Freedom Act,” legislation to block efficiency standards for refrigerators, by a vote of 212-192. Additionally, Rep. Gary Palmer (R-AL) introduced two separate Congressional Review Act resolutions to overturn Energy Department (DOE) energy conservation for circulator pumps and consumer water heaters. 

Other Interesting Things Since Our Last Report 

Week of July 8 – July 12, 2024

Thursday, July 11^th

• The Energy Department (DOE) announced $1.7 billion in funding through the President’s Inflation Reduction Act Domestic Auto Manufacturing Conversion Grants program to support the conversion of 11 shuttered or at-risk auto manufacturing and assembly facilities in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia to manufacture electric vehicles and EV components. DOE notes that award selections are subject to negotiations to ensure that commitments to workers and communities are met. If awarded, the selected projects would collectively create over 2,900 new high-quality jobs and help ensure over 15,000 highly skilled union workers are retained across all eleven facilities. Project descriptions and a full list of selections can be found on the DOE website here.

• The Environmental Protection Agency (EPA) announced $20 million to 13 workforce development organizations in California, Colorado, Washington, D.C., Georgia, Hawaii, Kansas, Maryland, Michigan, Nevada, New Mexico, Oklahoma, and Pennsylvania through the Innovative Water Infrastructure Workforce Development Grant Program, which supports expanding the development of apprenticeship programs, labor standards, workforce development collaborations, occupational and cross-training programs, and other resources for workforce development in the drinking water and wastewater utility sector. Activities funded under this competition include: (1) targeted apprenticeship, pre-apprenticeship, and post-secondary bridge programs; (2) education programs designed for elementary, secondary, and higher education students; (3) regional industry and workforce development collaborations to address water utility employment needs and coordinate candidate development; (4) integrated learning laboratories in secondary educational institutions; and (5) leadership development, occupational training, mentoring, or cross-training programs that ensure incumbent drinking water and wastewater utility workers are prepared for higher-level supervisory or management-level positions. 

Wednesday, July 10^th

• The Biden Administration announced it is imposing a 25% tariff on Mexican imports containing steel from China and a 10% duty on products made with aluminum from China to prevent Chinese metals from entering the U.S. duty free. President Biden and Mexican President Andrés Manuel López Obrador issued a joint statement on “Actions to Protect North American Steel and Aluminum Markets” making clear that both countries will “implement policies to jointly prevent tariff evasion on steel and aluminum and strengthen North American steel and aluminum supply chains (Mexico, United States, and Canada).” President Biden issued proclamations on “Adjusting Imports of Steel into the United States” and “Adjusting Imports of Aluminum into the United States” that implement melt and pour and smelt and cast requirements, respectively, setting clear standards when aluminum and steel from Mexico can enter the United States tariff-free under Section 232 of the Trade Expansion Act of 1962.  

• The House Appropriations Committee voted 31-25 along party lines to advance the fiscal year 2025 Labor-Health and Human Services appropriations bill to the full House for a vote. The legislation proposes to cut the Biden Labor Department’s budget by 23% from its current levels. The proposed cuts include 12% reductions in the budgets for both the Wage and Hour Division—which enforces federal prevailing wage law and independent contractor classification standards under the Fair Labor Standards Act—and the Occupational Safety and Health Administration. The bill would also cut the National Labor Relations Board’s funding by $200 million and includes policy riders that would block enforcement of the Biden Administration’s final independent contractor rule, as well as completion of the pending proposed rule on National Apprenticeship System Enhancements. 

• The House Appropriations Committee advanced the fiscal year 2025 Energy-Water spending bill in a 30-26 vote. The bill provides $59.2 billion in discretionary funds and decreases Biden Energy Department (DOE) funding by $312 million, but also provides a $9 billion increase for advanced nuclear reactor demonstration projects. The Committee also approved an amendment from Energy-Water Subcommittee Chairman Chuck Fleischmann (R-TN) that would restrict funding for implementing DOE conservation standards for manufactured housing, air conditioners, consumer conventional cooking products, and electrical distribution transformers.

• The Federal Trade Commission (FTC) is preparing to sue the three largest pharmacy benefit managers (PBMs) over their tactics for negotiating prices for drugs like insulin following a two-year investigation into whether the companies steer patients away from less-expensive medicines. The FTC lawsuits will target PBMs’ business practices related to rebates brokered with drug manufacturers. News of the pending lawsuits follows the Biden FTC’s July 9^th release of a long-awaited report on pharmacy benefit managers blaming these companies’ outsized market power for increased drug costs for patients and the demise of independent pharmacies. 

• The Internal Revenue Service (IRS) issued Fact Sheet 2024-25 to provide frequently asked questions related to which entities must apply for registration for the Clean Fuel Production Credit under the Inflation Reduction Act that is available beginning on January 1, 2025. The IRS issued a notice on May 31^st providing guidance on the registration procedures for the Credit, including how to apply for registration and what information a clean fuel producer must submit with its application.

• The Transportation Department’s Maritime Administration announced $8.75 million in Small Shipyard Grant Program awards to 15 small shipyards in Alabama, Florida, Hawaii, Kentucky, Louisiana, Maryland, Mississippi, Oregon, Pennsylvania, Rhode Island, Texas, and Washington. The funds will help shipyards modernize, increase productivity, and expand local job opportunities. Grant recipient funding will support, among other priorities: (1) a project to increase lift capacity and serviceability in Tampa, Florida; (2) worker apprentice and training programs in Philadelphia, Pennsylvania; and (3) the purchase of construction equipment including cranes, welding systems and paint spray booths at shipyards in several states.

• The Labor Department (DOL) announced over $39 million in State Apprenticeship Expansion Formula grants to 46 states and territories to increase the capacity of Registered Apprenticeship programs across key industries, including clean energy and transportation. The full list of grants that were awarded under this announcement are available here.

• According to a new Decision Desk HQ forecast, Republicans have a two-thirds chance of retaining their House majority in November, a warning sign for Democrats as President Biden struggles to tamp down concerns over the impact of his candidacy down-ballot. 

Tuesday, July 9^th

• During a House Education and the Workforce Subcommittee on Health, Employment, Labor, and Pensions hearing entitled “Confronting Union Antisemitism: Protecting Workers from Big Labor Abuses,” Chair Bob Good (R-VA) accused labor unions of being “beholden to the radical Left instead of the workers they represent” and cited union support for anti-Israel efforts following the October 7^th Hamas attack on Israel. He noted that union member objections to unions’ conduct Good described as antisemitic led to a lawsuit by United Auto Workers members. Good claimed that, “as Jewish workers have recently experienced, current federal labor law and Supreme Court precedent fail to adequately protect individual employees’ right to refrain from union activity.” Good also stressed that unions sent $27.5 million in direct donations to President Biden, compared to less than $360,000 for Trump.

• The Homeland Security Department (DHS) issued a fact sheet highlighting actions to prevent forced labor in supply chains through the Uyghur Forced Labor Prevention Act (UFLPA) and initiatives to enforce the UFLPA’s provisions. Updates announced by DHS include designating new high priority sectors for enforcement of the UFLPA, which include two items of interest to some MCAA members—aluminum and polyvinyl chloride (PVC), used to make pipe and other construction materials and manufacturing components.

Week of July 1 – July 5, 2024

Friday, July 5^th

• The Biden Administration released the Spring 2024 Regulatory Agendas that summarize major regulatory plans across federal agencies, including the Labor Department, the National Labor Relations Board, the Treasury Department, Homeland Security Department, the Transportation Department, the Environmental Protection Agency, the Federal Trade Commission, the Nuclear Regulatory Commission, and the Federal Energy Regulatory Commission, among others. White House Office of Information and Regulatory Affairs (OIRA) Associate Administrator Sam Berger issued a blog post in response to the release of the Regulatory Agendas, noting that in the Spring 2024 edition, agencies have provided more details about “key advancements in public outreach and notable instances of public participation.”  Examples include the entries on the Biden Labor Department’s proposed apprenticeship rule and the Bureau of Land Management’s rulemaking on rights-of-way for solar and wind energy development leasing. 

Wednesday, July 3^rd

• A federal judge partially delayed the Federal Trade Commission’s noncompete rule—which is set to take effect on September 4, 2024—for a handful of employers. Wednesday’s order limits the preliminary injunction to plaintiffs in the case—Ryan, LLC, a tax services and software provider in Texas, as well as the U.S. Chamber of Commerce, the Business Roundtable, the Texas Association of Business, and the Longview Chamber of Commerce—but does not extend to the member companies of those groups. The judge is expected to issue a ruling by August 30^th regarding whether to issue a full, nationwide injunction against the rule and will have to consider the legality of the FTC’s rulemaking in light of the Supreme Court’s reversal of the Chevron deference doctrine.

Tuesday, July 2^nd

• The White House announced $504 million in funding for 12 Regional Technology and Innovation Hubs (Tech Hubs) to accelerate the growth of innovative industries. The Tech Hubs program—authorized by the CHIPS and Science Act—is focused on fostering innovation, creating new jobs, and supporting economic development in previously underinvested areas. The White House notes that the funding awarded to these 12 Tech Hubs will position American workers, businesses, and communities to lead the industries of the future, such as clean energy, semiconductors, biotechnology, artificial intelligence, quantum computing, and more. Examples of Tech Hubs receiving new funding under the Tech Hubs Program include: (1) the SC Nexus for Advanced Resilient Energy Tech Hub, which aims to help the U.S. be a global leader in advanced energy, with a focus on cyber-secure grid resilience technologies (GRT) and improving the clean energy supply chain by expanding opportunities for developing, testing, and deploying exportable electricity technologies with approximately $45 million in Tech Hubs awards serving South Carolina and Georgia; (2) the NY SMART I-Corridor Tech Hub, which aims to enhance regional semiconductor manufacturing capabilities while ensuring economic opportunity for underserved communities with approximately $40 million in Tech Hubs awards serving New York; (3) the Nevada Tech Hub, which aims to build a self-sustaining and globally competitive full lithium lifecycle cluster at the University of Nevada, Reno, spanning extraction, processing, manufacturing, and recycling with approximately $21 million in Tech Hubs awards serving Nevada; (4) the Tulsa Hub for Equitable & Trustworthy Autonomy Tech Hub, which aims to help the U.S. become a global leader in developing and commercializing autonomous systems for use cases ranging from agriculture and pipeline inspections to regional transportation with approximately $51 million in Tech Hubs awards serving Oklahoma; and (5) the Elevate Quantum Tech Hub, which seeks to solidify Colorado’s global leadership in quantum information technology (QIT) to enable progress in areas such as artificial intelligence, climate technology, and healthcare with approximately $41 million in Tech Hubs awards serving Colorado and New Mexico.

• U.S. District Judge for the Western District of Louisiana James Cain preliminarily enjoined the Department of Energy’s pause on natural gas exports. Judge Cain ruled that DOE failed to justify why it needed to pause approvals to review the process by which it permits projects and agreed with a challenge from 16 Republican-leaning states that DOE failed to consider their concerns about the “impact on national security, state revenues, employment opportunities, funding for schools and charities, and pollution allegedly caused by increased reliance on foreign energy sources.” The Biden Administration has not yet indicated if it would appeal the ruling. 

• The Federal Aviation Administration (FAA) announced a seventh round of the Bipartisan Infrastructure Law’s Airport Infrastructure Grants (AIG) totaling $289 million to 129 airports across 40 states. Funding under the AIG program is used for airport improvements such as terminal expansions, baggage system upgrades, runway safety enhancements, and air traffic infrastructure improvements. The full list of awards is available here.

• New analysis revealed that construction workers are four times more likely to commit suicide than the average American—and more than any other occupation. Construction workers are also six times as likely to die from suicide than on-the-job injuries and in just 2022 alone, according to data from the Centers for Disease Control and Prevention, more than 6,000 construction workers died of suicide across the U.S. Data also showed that nearly 50 per 100,000 male construction workers committed suicide, as did roughly 25 per 100,000 female construction workers—the tops of any occupational group. 

Week of June 24 – June 28, 2024

Friday, June 28^th

• President Biden sent a letter to Congress requesting roughly $4 billion in emergency funding to address the collapse of Baltimore’s Francis Scott Key Bridge, as well as recent tornadoes in the Midwest, wildfires in Hawaii, and hurricane recovery needs across the country. Of the nearly $4 billion request, President Biden sought $3.1 billion for the Transportation Department’s Emergency Relief Fund to cover the cost of repairing and rebuilding highways and roads that were damaged in recent disasters, as well as the cost of rebuilding the Francis Scott Key Bridge. Notably, the President called on Congress to cover 100% of the federal cost share for rebuilding the Key Bridge, “consistent with the response to past bridge collapses.” The President also requested: (1) $700 million for Housing and Urban Development grants; (2) $79.5 million for the Coast Guard; (3) $33 million for the Army Corps of Engineers; and (4) $25 million for the Department of Labor. 

• The Federal Aviation Administration (FAA) announced more than $123 million in funding from the Bipartisan Infrastructure Law for improvement projects at 235 airports in 35 states and the District of Columbia. This second round of Airport Improvement Program (AIP) grants fund a variety of projects such as construction of new and improved airport facilities, repairs to runways and taxiways, maintenance of airfield lighting and signage, and purchasing equipment needed to operate and maintain airports. An interactive map containing all the grant awards is available here.

Thursday, June 27^th

• The House Appropriations Committee Republicans released draft text for the fiscal year (FY) 2025 Energy-Water spending bill that the subcommittee will mark up today. The bill—which funds the Energy Department, Corps of Engineers, Bureau of Reclamation, and other related agencies—provides an overall increase of $999 million over FY 2024 funding levels. Republicans highlighted the draft bill’s $1.8 billion increase for nuclear energy, which they said includes support for small modular reactor demonstration projects. The bill also increases support for mining production technologies necessary to increase domestic production of critical minerals. A summary of the legislation is available here.

• The House Appropriations Committee Republicans released draft text for the fiscal year (FY) 2025 Interior-Environment spending bill that the subcommittee will mark-up today. The draft bill provides a total of $38.5 billion in non-defense funding for the Biden Environmental Protection Agency (EPA), Forest Service, and most portions of the Interior Department. Total funding under the bill is $72 million below FY 2024 enacted levels and $4.4 billion below President Biden’s budget request. In addition to a 23% cut for environmental programs and management, the bill would prohibit the EPA from imposing a fee on methane emissions from oil and gas producers. The bill also requires the Interior Department to resume quarterly offshore oil and gas leases and prohibits any funding from being used to cancel such leases in the Arctic National Wildlife Refuge or the National Petroleum Reserve in Alaska. A summary of the legislation is available here.

• The Energy Department (DOE) issued a request for proposals (RFP) for $2.7 billion to increase domestic sources for low-enriched uranium (LEU) to ensure an adequate fuel supply to maintain the current fleet of U.S. reactors and build a strong base to supply future deployments of new nuclear technologies. RFP applicants may propose projects that expand the capacity of existing enrichment facilities or fund development of new facilities. DOE intends to sell the LEU to utilities operating U.S. reactors to support clean energy generation and eliminate reliance on Russian imports. DOE plans to award two or more contracts under the RFP, which will last for up to 10 years. Proposals are due by 5:00 p.m. EDT on August 26, 2024. The RFP is available here and more information regarding DOE’s efforts to develop nuclear fuel supply chains for existing and future reactors is available here.
  
• House Education and the Workforce Chair Virginia Foxx (R-NC) announced that Rep. Michael Rulli (R-OH), who recently won a special election in Ohio’s 6^th Congressional District, has joined the committee and will serve on the Subcommittee on Higher Education and Workforce Development

Wednesday, June 26^th

• The Labor Department’s Occupational Safety and Health Administration (OSHA) announced the availability of $12.787 million in fiscal year (FY) 2024 funding for Susan Harwood Training Grants to develop and provide training and education programs for employers and workers on the recognition, avoidance, and prevention of safety and health hazards in the workplace and to inform workers of their rights and employers of their responsibilities under the Occupational Safety and Health Act. Applications for grant awards are due by July 26, 2024. The pre-announcement notices of funding opportunity are divided into three categories: (1) “Targeted Topic Training”; (2) “Training and Educational Materials”; and (3) “Capacity Building.” The complete Susan Harwood Training Grant Program solicitation for grant applications and all information needed to apply for these funding opportunities is available at http://www.grants.gov using the following Funding Opportunity Numbers: (1) SHTG-FY-24-01 (Targeted Topic Training grants); (2) SHTG-FY-24-02 (Training and Educational Materials Development grants); and (3) SHTG-FY-24-03 (Capacity Building grants). Additional information on the Susan Harwood Training Grant Program, including information regarding past grantees and recordings of free webinars from April 2024 on preparing competitive Susan Harwood Grant applications, can be found on the OSHA website.
  
• The Interior Department (DOI) announced that it has awarded $126.7 million through President Biden’s Investing in America agenda to Alaska, Arizona, Indiana, New York and Ohio to address legacy pollution from orphaned oil and gas wells. With this funding, the five states will collectively plug nearly 600 wells and inventory additional undocumented orphaned wells in preparation for future plugging activities.
  
• The Labor Department’s (DOL) Employment and Training Administration announced the selection of new Employment Navigator and Partnership Program (ENPP) partners in California, Colorado, Florida, Idaho, Maine, New York, and Washington, D.C. that will be onsite at military bases to aid service members who are transitioning from active duty to the civilian workforce, as well as their spouses, with personalized employment assistance. The program also connects participants with partner organizations to provide additional employment services before and after their military separation. The list of organizations receiving funding is available here.

Tuesday, June 25^th

• The Energy Department announced $63.5 million in awards through the Seeding Critical Advances for Leading Energy technologies with Untapped Potential (SCALEUP) program that will be divided among four projects: (1) AeroShield Materials in Waltham, Massachusetts effort to develop a manufacturing facility for the production of insulated glass units that make residential and commercial buildings more energy efficient; (2) Queens Carbon of Pine Brook, New Jersey to develop a facility to produce carbon-neutral supplemental cementitious materials; (3) Ion Storage Systems of Beltsville, Maryland to support domestic manufacturing of lithium-metal batteries for electric vehicles; and (4) Antora Energy of Sunnyvale, California to scale up production of its thermal battery technology.
  
• The Interior Department (DOI) announced that it has awarded $126.7 million to Alaska, Arizona, Indiana, New York and Ohio to address legacy pollution from orphaned oil and gas wells. With this funding, the five states will collectively plug nearly 600 wells and inventory additional undocumented orphaned wells in preparation for future plugging activities.

Monday, June 24^th

• The Treasury Department announced new financing initiatives to support affordable housing development. Specifically, the initiatives include: (1) a new Treasury program administered by the Community Development Financial Institutions fund to provide an additional $100 million over 3 years to support the financing of affordable housing; (2) an effort to provide greater interest rate predictability to state and local housing finance agencies; and (3) a call to action for the Federal Home Loan Banks to increase their spending on housing programs.  The announcement corresponded with a new Treasury blog post on “Rent, House Prices, and Demographics” discussing the fact that housing costs have risen faster than income over the last 2 decades, housing demand has outpaced housing supply since 2000, and that substantial fixes will require federal legislative and state and local actions.

• Reuters reported that a shortage of skilled labor and nagging inflation from strong wage growth on the U.S. Gulf Coast are pressuring liquefied natural gas developers and delaying some projects from reaching a financial go-ahead. With labor costs jumping as much as 20% since 2021, the fate of some projects has become less certain. The Reuters report cited Golden Pass LNG, one of the largest U.S. projects, which has been largely halted after its main contractor ran $2.4 billion over the original budget and filed for bankruptcy. Reuters also noted that Sempra LNG has revisited selecting Bechtel Corporation to build the Cameron LNG expansion projects to reduce costs, and it has also reduced its stake in a Texas project, Port Arthur LNG, citing higher construction costs. 

Around the Country 

Northeast 

• On July 11^th, House Freedom Caucus Chair Rep. Bob Good (R-VA) filed a petition for a recount in Virginia’s 5^th Congressional District after state election officials said he narrowly lost the GOP primary to Trump-backed State Sen. John McGuire (R-VA).

• On July 10^th, The Hill discussed a series of political earthquakes that have shaken New Jersey’s Democratic machine over the last year, including: (1) the indictments of Sen. Bob Menendez (D-NJ) and Democratic power broker George Norcross; (2) the failure of New Jersey First Lady Tammy Murphy’s U.S. Senate bid; and (3) a federal judge throwing out a ballot design, colloquially called “the line,” that upheld the power of the state’s political machine. The changes have been rooted, at least in part, in a generation of younger Democrats—like Democratic U.S. Senate candidate Rep. Andy Kim (D-NJ)—who have sought to challenge the party’s old guard. 

• On July 9^th, the Transportation Department (DOT) announced $11 billion in grants and financing through the President’s Bipartisan Infrastructure Law to construct the new Hudson Tunnel rail project and rehabilitate the North River Tunnel between New York and New Jersey. Of the $11 billion announced on Monday, $6.9 billion is funded through the Federal Transit Administration’s (FTA) Capital Investment Grants program (the largest grant ever signed by the FTA) and $4.1 billion is funded through three Railroad Rehabilitation and Improvement Financing loans financed with below-market interest rates through DOT’s Build America Bureau. The Hudson Tunnel Project Profile is available here.

• On June 28^th, the Bureau of Ocean Energy Management (BOEM) announced the final schedule for the sale of commercial wind energy leases on the Outer Continental Shelf (OCS) in the Central Atlantic Ocean in Lease Area OCS-A 0557 and Lease Area OCS-A 0558 offshore of Delaware, Maryland, and Virginia. Lease Area OCS-A 0557 consists of 101,443 acres and is approximately 26.4 nautical miles from the mouth of the Delaware Bay, while Lease Area OCS-A 0558 consists of 176,505 acres and is approximately 35 nautical miles from the mouth of the Chesapeake Bay. The lease sale auction will be held online and will begin at 9am ET on August 14, 2024.

• On June 27^th, the Senate Leadership Fund, a group tied to Senate Republican Leader Mitch McConnell (R-KY), announced a $24 million ad buy in Pennsylvania to aid Republican Dave McCormick in his bid to unseat incumbent Sen. Bob Casey (D-PA).

• On June 26^th, More Jobs, Less Government, a super PAC with ties to Sen. Daines (R-MT), announced plans for a month-long, $4 million TV and digital ad buy to support Montana Republican Tim Sheehy’s bid to unseat incumbent Sen. Jon Tester (D-MT). 

• On June 25^th, Westchester County, New York Executive George Latimer (D) defeated incumbent Rep. Jamaal Bowman (D-NY) in the Democratic primary for New York’s 16^th Congressional District and will face Scarsdale, New York Mayor Miriam Flisser (R) in the November general election.

• On June 25^th, Rep. Claudia Tenney (R-NY), a member of the House Ways and Means Committee, defeated conservative businessman Mario Fratto in the Republican primary for New York’s 24^th Congressional District and will face Democrat David Wagenhauser in November.

• On June 24^th, a new poll found Democrat Angela Alsobrooks (D-MD) leading Republican Larry Hogan 45%-34% in the race for retiring Sen. Ben Cardin’s (D-MD) U.S. Senate seat. 

West

• On July 10^th, incumbent Rep. Celeste Maloy (R-UT) appeared headed for a recount in the Republican primary race in Utah’s 2^nd Congressional District.

• On July 8^th, Rep. Greg Lopez (R-CO) was sworn into the House, filling the seat vacated by Rep. Ken Buck (R-CO). Lopez is the former mayor of Parker, CO and won the special election two weeks ago to represent Colorado’s 4^th Congressional District for the remainder of Rep. Buck’s term, which ends in January 2025. 

• On June 25^th, moderate Rep. John Curtis (R-UT) won the Republican U.S. Senate primary in Utah against a Trump-backed opponent and will face Democrat Caroline Gleich in November.

• On June 25^th, Republican Jeff Crank defeated Trump-backed Republican candidate Dave Williams in the Republican primary for Colorado’s 5^th Congressional District and will face Democrat River Gassen in November.

• On June 25^th, Rep. Lauren Boebert (R-NY) won the Republican primary for Colorado’s 4^th Congressional District despite the fact that she currently represents Colorado’s 3^rd Congressional District, and will face Democrat Trisha Calvarese in November.

Northwest 

• On June 26^th, the Environmental Protection Agency and the Biden Justice Department, as well as the Washington Department of Ecology, announced that they reached an agreement in principle with King County, Washington and the City of Seattle that commits the local governments to significant expansion of the work they agreed to perform in 2013 to reduce discharges of untreated combined sewage and stormwater into Lake Washington, Lake Union, the Duwamish River, and Puget Sound. The modifications include: (1) significant improvements to address overflows and the option to include outfalls at the King County’s Mouth of the Duwamish Wet Weather Treatment Facility; (2) increasing water storage by one million gallons at the West Duwamish/Terminal 115 CSO Control Project; (3) the provision of almost $300 million in loans under the Water Infrastructure Finance and Innovation (WIFIA) Act for the Ship Canal Water Quality Project; and (4) enhancing storage facility projects to increase stored volumes of wastewater at Montlake and University.

Midwest 

• On July 11^th, Sen. Sherrod Brown (D-OH) reported raising $12.8 million in the second quarter of 2024 for his U.S. Senate bid against Republican Bernie Moreno.

• On July 8^th, the Labor Department announced it will host an information session in Lisle, Illinois on July 18, 2024 from 9am to 4pm CT, focused on the benefits available under the Energy Employees Occupational Illness Compensation Program Act for current and former nuclear weapons workers employed at covered facilities. The meeting is open to the public and registration is not required.

• On June 27^th, a new poll found that incumbent Sen. Tammy Baldwin (D-WI) leads her Republican challenger Eric Hovde by five points (52%-47%) in the Wisconsin U.S. Senate race.

Southeast

• On July 8^th, the Labor Department’s Wage and Hour Division announced that it will join the Equal Employment Opportunity Commission for a series of online webinars that will take place on Tuesdays and Thursdays in August 2024 focused on workplace rights for expectant and new mothers to mark Breastfeeding Awareness Month. The webinar series will begin with an initial review of federal maternal health laws on August 1, 2024 and will be followed by webinars focused on state-specific resources and local laws in North Carolina, Alabama, South Carolina, Florida, Georgia, Tennessee, Kentucky, and Mississippi. The webinars will introduce panelists that will vary by state and include representatives from state Women, Infant, and Children offices, milk banks, support groups, lactation consultants, and more. Registration information for the webinar sessions is available here. 

• On June 27^th, the Federal Energy Regulatory Commission (FERC) authorized the construction of Venture Global’s CP2 liquefied natural gas export project in Calcasieu Parish, Louisiana. The CP2 terminal, however, is not yet fully authorized. Though FERC’s approval clears a major hurdle for the project, it still needs permission from the Biden Energy Department to ship natural gas abroad to countries that don’t have a free trade agreement with the U.S.

• On June 26^th, a new poll found Democrat Wesley Bell leading Rep. Cori Bush (D-MO)43%-42% ahead of the August 6^th Democratic primary in Missouri’s 1^st Congressional District.

Southwest

• On July 8^th, the Labor Department announced $810,703 in proposed penalties against Quala Services LLC, a tank cleaning company based in La Porte, Texas, after an Occupational Safety and Health Administration (OSHA) investigation prompted by an employee’s fatal injury in December 2023. OSHA cited Quala Services, whose employees clean tankers used to transport hazardous waste, with seven serious violations and failing to ensure that atmospheric testing was done inside the tank where the employee died.

• On July 9^th, Arizona Democratic Senate candidate Rep. Ruben Gallego (D-AZ) announced he raised $10.4 million for his U.S. Senate bid in the second quarter, bringing his total raised to $31 million.

• On June 27th, a new poll found that incumbent Sen. Ted Cruz (R-TX) leads his Democratic challenger Rep. Colin Allred (D-TX) by four points (43%-39%) in the Texas U.S. Senate race.

• On June 25^th, Rep. Greg Casar (D-TX) led 22 members of Congress in requesting the Biden Energy Department add Texas to the areas serviced by proposed federal corridors for electrical transmission. In May, the Biden Energy Department announced ten proposed National Interest Electric Transmission Corridors that, if implemented, could make federal funds available to expand grid capability in those areas. However, Texas, which relies on the self-contained Electric Reliability Council of Texas, was not among the proposed sites.

• On June 25^th, Trump-backed Republican candidate Mark Burns lost to nurse practitioner Sheri Biggs in the Republican primary for South Carolina’s 3^rd Congressional District. Biggs will face Democrat Byron Best in November.

• On June 25^th, the House Ethics Committee said it was reviewing separate accusations against Texas Republican Reps. Ronny Jackson and Wesley Hunt alleging they violated ethics rules by using campaign funds to pay membership dues at private social clubs. The committee released findings that Rep. Jackson’s campaign committee paid over $6,800 in membership dues to the Amarillo Club, a fine dining club and gym in downtown Amarillo, and separate findings that Rep. Hunt’s campaign paid over $5,400 in dues to the Oak Room, a private social club in Houston.

The Treasury Department and the Internal Revenue Service (IRS) have published final regulations regarding the prevailing wage and registered apprenticeship (PWA) requirements that taxpayers must satisfy to receive five times the base tax credit or deduction amounts with respect to certain clean energy facilities, properties, projects, technologies, or equipment under the Internal Revenue Code (the Code), as amended by the Inflation Reduction Act of 2022 (IRA). The overview below seeks to explain the portions of this lengthy final rule that we felt would be of most interest to MCAA. There are aspects of the rule that are not addressed in this document, and the MCAA public policy team is happy to answer questions about aspects of these lengthy regulations not addressed in this overview.

Please reach out to MCAA’s public policy team if you have any questions.

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Friday, June 21, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

MCAA Issues and Interests 

Project Labor Agreements

House Oversight Committee to Hold Hearing Attacking PLAs Next Thursday

As we continue to engage with various Congressional committees with jurisdiction over the MCAA’s priority issues, we wanted to be sure the GAC was aware that the House Oversight Subcommittee on Cybersecurity, Information Technology, and Government Innovation announced a hearing next Thursday, June 27, 2024, entitled, “Cutting Competition in Contracting: The Administration’s Pricey Project Labor Agreement Mandate.” The witnesses for the hearing are: (1) Ben Brubeck, Vice President of Regulatory, Labor, and State Affairs, with the Associated Builders and Contractors; (2) Glenn P. Ledet, Jr., Executive Director of the Louisiana Coastal Protection and Restoration Authority; and (3) Aric Dreher, Vice President and General Manager at Cianbro. The hearing coincides with the Associated Builders and Contractors’ legislative fly-in next week in Washington, D.C. from June 25-26, 2024. 

Davis-Bacon Prevailing Wage

MCAA Helps to Defeat Anti-Davis-Bacon Amendment to the NDAA

The MCAA policy team worked with its allies in CEA [Construction Employers of America] to defeat a proffered House Rules Committee amendment to the fiscal year 2025 National Defense Authorization Act (NDAA) from Rep. Paul Gosar (R-AZ). Rep. Gosar’s amendment would have required that the prevailing wages paid to federal contractors at the Defense Department be determined using wage averages from the Labor Department’s Bureau of Labor Statistics (BLS) instead of county-by-county wage surveys required under the Davis-Bacon Act and related rules. The MCAA opposed the amendment because use of the BLS data would have resulted in prevailing rates ALWAYS being an average of union and non-union rates in an area and precluded the union rate from ever prevailing—even in the markets where we prevail under the recently finalized Davis-Bacon modernization regulations. The amendment was clearly an attempt to undermine the revised definition of prevailing rate in these new, MCAA-supported rules. Working with our allies in the CEA, the policy team conducted significant outreach in opposition to Gosar’s amendment and it was not made in order because some number of House Republicans were prepared to vote against it. Following the defeat of Rep. Gosar’s amendment, Rep. Matt Gaetz (R-FL) also changed course and decided not to re-offer the amendment he put forward in the House Armed Services Committee effectively banning project labor agreements on Defense Department construction contracts. As we reported on May 24, 2024, we worked with CEA allies to defeat Gaetz’s amendment during the May markup of NDAA in the Armed Services Committee by a 26-31 vote in which 4 Republicans joined all Democrats in opposition. 

Treasury/IRS Release Final Rule on Prevailing Wage and Apprenticeship Requirements under the Inflation Reduction Act 

On June 18^th, the U.S. Treasury Department and the Internal Revenue Service (IRS) issued a final rule interpreting the prevailing wage and apprenticeship (PWA) requirements related to increased credit or deduction amounts for the construction, alteration, or repair of certain qualifying clean energy properties under the Inflation Reduction Act (IRA). This is the rulemaking MCAA Government Affairs Committee Chair Jim Gaffney testified on before the IRS in November 2023. The rule is set to be published in the Federal Register on Tuesday, June 25^th. A fact sheet on the final rule from the White House is available here and a fact sheet on the final rule from the IRS is available here. 

By satisfying the PWA requirements of this final rule, taxpayers can generally increase the base amount of IRA clean energy credits or deductions by five times the original credit. The final rule also explains statutory exceptions to the PWA requirements for many types of clean energy projects, such as the exception for projects that began before January 29, 2023. 

In addition to publishing the final rule and associated fact sheets, Treasury, the IRS, and the Department of Labor (DOL) released additional resources, including: (1) a Treasury/DOL blog post on Project Labor Agreements; (2) an IRS overview of the PWA requirements; (3) an IRS fact sheet on the PWA requirements; (4) a frequently asked questions document from the IRS; (5) a dedicated IRA PWA page on the DOL website; (6) a dedicated IRA apprenticeship page on the DOL website; (7) a DOL PWA frequently asked questions site; and (8) a Good Clean Energy Jobs Interactive Map from DOL.

The MCAA policy team is currently reviewing the over 300-page, pre-publication version of the rule and will be providing the Government Affairs Committee with an overview of it by the time it is published in the Federal Register next Tuesday.

Registered Apprenticeship

ETA Submits Final Rule on National Apprenticeship System Enhancements to OIRA for Review

We also wanted to be sure that you were aware that on June 18^th, the Labor Department’s Employment and Training Administration (ETA) submitted to the White House Office of Information and Regulatory Affairs (OIRA) its final rule on “National Apprenticeship System Enhancements.” This is the rulemaking on which the MCAA and the United Association submitted comments back in March 2024. 

The joint MCAA/UA comments in March highlighted to ETA the best-in-class apprenticeship programs that the MCAA and the UA sponsor. The letter also expressed support for portions of the proposed rule that advance the kind of successful apprenticeship programs we operate, ensure the quality of registered apprenticeship programs, and advance the safety and welfare of apprentices. Most of the letter, however, was dedicated to urging ETA to reconsider aspects of the proposed rule that the MCAA and the UA view as detrimental to high-quality registered apprenticeship programs in our industry. These include a provision authorizing exemptions from the minimum standards for registration of a program, creation of National Occupational Standards for our crafts, language that could be interpreted to override local standards on ratios and other issues, the creation of a new Career and Technical Education Apprenticeship system for construction and other industries, and non-compete language in the proposal that undermines lawful scholarship loan repayment agreements.

 Senate HELP Ranking Member Cassidy Details WIOA Reauthorization Priorities

As part of our ongoing advocacy and lobbying efforts regarding apprenticeship on behalf of the MCAA, the public policy team also monitored a Senate Health, Education, Labor, and Pensions (HELP) Committee hearing on June 12, 2024, entitled, “The Workforce Innovation and Opportunity Act: Supporting Efforts to Meet the Needs of Youth, Workers, and Employers.” During the hearing, Ranking Member Bill Cassidy (R-LA) said that Congress should focus on increasing options for training and skills development and should: (1) direct more funding to training and allow states to innovate to best serve workers and employers; (2) improve the state Eligible Training Provider List to make it easier for workers to connect to a broader array of quality workforce training providers than the registered apprenticeship program and other programs currently deemed eligible; (3) allow states the flexibility to implement innovative workforce development models that meet workers where they are and get them better connected with employers; and (4) increase the transparency and accountability of WIOA programs for improving employment outcomes, including earnings, to ensure they are best serving workers. Democrats on the Committee, led by Chairman Bernie Sanders (I-VT), focused their discussion on the importance of increasing job training opportunities for incarcerated individuals and doing more to provide training to high school students.

Independent Contractors and Misclassification of Workers 

D.C. AG Uncovers Elaborate Construction Misclassification Scheme in the Nation’s Capital

As we continue to engage on the MCAA’s priority issue of preventing the misclassification of construction and service workers as independent contractors, we wanted to be sure you were aware of a lawsuit filed by Washington, D.C. Attorney General Brian Schwalb against a Frederick, Maryland-based mechanical contractor for engaging in an elaborate misclassification scheme. On June 18^th, AG Schwalb filed a lawsuit against W.G./Welch Mechanical Contractors, LLC and Whiting Turner Contracting Co., as well as three labor brokers—Mechanical Plumbing Crew, Co., Ramirez Plumbing, Inc., and GINCO HVAC, LLC—for violating D.C.’s wage and hour laws. In the lawsuit, AG Schwalb detailed the misclassification scheme as follows: (1) a general contractor, such as Whiting-Turner, is hired by developers and property owners to oversee a project and sits atop a “contracting chain” and subcontracts out the installation of major building systems to trade subcontractors like Welch; (2) to boost its profits, Welch knowingly obtains workers from labor brokers like Mechanical Plumbing Crew, Ramirez, and GINCO that, in order to minimize their costs, misclassify workers as independent contractors to avoid paying minimum wage, overtime, and sick leave; and (3) these cost reductions from worker misclassification benefitted Whiting-Turner by giving them a significant cost advantage.

This case involving well-known contractors is something we plan to highlight in our ongoing education of Congress and regulators about misclassification of workers in the construction and service industries.  

Pension Reform

Sen. Warren Confirms Wyden-Smith Tax Deal is Dead in Senate

This year it became clear that the MCAA policy team’s work with our allies in the Construction Employers of America to attach two-pool withdrawal liability to the Wyden-Smith tax deal that passed the House earlier this year is at an impasse as this week Sen. Elizabeth Warren (D-MA)  publicly confirmed that the tax bill is all but dead in the Senate for the remainder of this Congress. In remarks on June 17^th at the Washington Center for equitable growth, Warren criticized her fellow Democrats for “kowtowing” to previous Republican tax cuts in an effort to broaden out the tax policy debate as it heats up ahead of the November elections. Notably, Warren trashed the bipartisan Wyden-Smith tax deal, saying Senate Republicans “tanked the [Wyden-Smith] deal because they believe they can get even more” after the 2024 elections and that “Democrats won’t have the spine to stop them.” We later followed up with other Senate offices that confirmed Sen. Warren’s assessment that the bill is likely dead.

During the same event, President Biden’s National Economic Council Deputy Director Daniel Hornung said that the expiration of the Trump-era Tax Cuts and Jobs Act at the end of 2025 provides a “generational opportunity to not just correct the failures of that legislation, but to fundamentally reorient our tax system towards shared growth and economic opportunity.” Hornung reiterated the Biden Administration’s key principles on taxes, including: (1) no tax increases for those making less than $400,000/year; (2) taxing capital gains at ordinary rates for taxpayers making $1 million; (3) applying a minimum tax to the wealthiest Americans’ income; and (4) closing the step-up in basis “loophole” for the wealthiest households. 

As the debate on taxes begins for next Congress, we are staring the process of discussing with our CEA allies and union partners what we can agree to push regarding pension reform. These efforts were, however, not helped by the fact that today the Teamsters announced that their President would speak at the Republican Presidential Convention in Milwaukee next month just hours after the Biden White House released a primer on the number of pension funds—including the Teamsters Central States Plan—that were saved by the President’s Special Financial Assistance Program that was part of the American Rescue Plan Act.  It is making many democrats feel there is not sufficient gratitude for pension reforms that have already been enacted.

Decarbonization

In this report, we actually have good news on the decarbonization front.

Senate Advances Legislation to Boost Domestic Nuclear Energy Production

The MCAA policy team was also busy this week adding to the chorus of voices that supported passage of the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act in the Senate. The bill passed that chamber by a vote of 88-2 and was sent to President Biden for his signature. The bill will boost U.S. domestic nuclear energy production by: (1) directing the Nuclear Regulatory Commission (NRC) to develop processes for expedited review and licensing of nuclear reactors and fuels; (2) supporting the deployment of advanced nuclear reactors; and (3) streamlining the regulatory requirements for micro-reactors. In addition, the bill directs the NRC to report to Congress within six months on manufacturing and construction for nuclear energy projects detailing existing licensing issues and requirements, examining the requirements for nuclear-grade components in manufacturing and construction for nuclear energy projects, and identifying safety aspects of advanced manufacturing processes and advanced construction techniques that are not addressed by existing codes and standards.

DOE Releases Fact Sheet Highlighting Nuclear Power in the U.S. 

Passage of the ADVANCE Act was aided by the Energy Department’s (DOE) June 11^th release of a fact sheet highlighting the benefits of nuclear power in the U.S. The fact sheet explains that: (1) nuclear power plants produced 775 billion kilowatt hours of electricity in 2023; (2) nuclear power provides nearly half of America’s clean energy; (3) nuclear energy is one of the most reliable sources of energy in America; (4) nuclear reactors help power 28 U.S. states; and (5) storage is not a problem because the small amount of used nuclear fuel produced by the U.S. nuclear energy industry over the last 60 years could fit on a football field at a depth of less than 10 yards. DOE also published a separate infographic version of the fact sheet, available here. It proved useful in counteracting some of the assertions a subset of environmentalists (a small minority) were making to oppose the ADVANCE Act.

Researchers Detect Reduction in Atmospheric Levels of Hydrocarbon Gases for First Time 

The case for the ADVANCE Act was also helped last week by a June 11^th report from reputable climate researchers saying for the first time ever they have detected a significant reduction in atmospheric levels of hydrofluorocarbon gases that deplete the ozone layer and warm the planet. The scientists say this represents a significant milestone in the international effort to preserve the layer of Earth’s stratosphere that blocks dangerous ultraviolet sunlight. 

Global Fossil Fuel Emissions Hit All Time High

From a Decarbonization perspective, we also found it interesting that yesterday the U.K.-based Energy Institute’s Statistical Review of World Energy Report found that global fossil fuel consumption and energy emissions hit an all-time high in 2023. The report found that global energy consumption was at a “record absolute high,” increasing 2 percent compared to the previous year. Global fossil fuel consumption also reached a record high, increasing 1.5 percent largely due to coal and oil, even though the share of fossil fuel in the overall energy mix marginally decreased. Overall energy emissions increased by 2 percent last year, exceeding 40 gigatonnes of CO₂ for the first time, the report said. The report comes as U.S. crude oil prices were trading about $82/barrel on June 20^th, with benchmark Brent up 3.8% as U.S. oil and gas inventories fell for the first time in weeks, suggesting an uptick in demand. We think this report reinforces our arguments that oil and gas are still very much needed as part of world’s portfolio of energy sources and that this is not going to change any time soon despite the talk about the growth of renewable.  

White House Releases Climate Adaptation Plans

Yesterday, there was also another decarbonization development that may lead to some work for MCAA members. The White House released updated “Climate Adaptation Plans” for 2024-2027 that were developed by more than 20 federal agencies to advance the Biden Administration’s National Climate Resilience Framework and “align climate resilience investments across the public and private sector through common principles and opportunities for action to build a climate-resilient nation.” This includes efforts to: (1) build facility climate resilience through retrofits and upgrades to federal buildings to better withstand climate hazards and provide emergency backup systems for power, water, and communications; (2) foster a climate-ready workforce and help federal agencies address employee exposure to climate hazards such as extreme heat, flooding, and wildfires; (3) develop climate-resilient supply chains by diversifying suppliers and encouraging climate-smart sourcing to enhance resilience to climate-related disruptions; and (4) integrate climate resilience into external funding opportunities, including incorporating climate-smart infrastructure practices throughout actions to implement the Inflation Reduction Act and the Bipartisan Infrastructure Law.

Federal Contracting 

Continuing Work to Pass Stauber Legislation on Equitable Adjustments for Federal Contractors

Despite our success keeping the Gosar amendment off the NDAA bill as discussed above, we were not successful in getting a vote on the Rep. Pete Stauber (R-MN) amendment that we wanted added to the NDAA bill regarding equitable adjustments for federal construction contractors (H.R. 2726, “Small Business Payment for Performance Act”). Although we did significant outreach in support of the amendment to the Rules Committee, the Small Business Committee (which has jurisdiction over H.R. 2726), and the House Armed Services Committee, Stauber’s amendment was not made in order. With a total of 1,357 amendments that were offered to NDAA, House leadership and the Armed Services Committee made a decision to include only those amendments that were tightly within the jurisdiction of the Armed Services Committee. Despite this setback, we are coordinating with Rep. Stauber’s staff on a path forward for the standalone bill and potential paths in the Senate.

Heat Injury and Illness Rulemaking 

White House Reviewing OSHA Heat Injury and Illness Rulemaking 

On June 11^th, the Occupational Safety and Health Administration (OSHA) transmitted its proposed rule on “Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings” to the White House Office of Information and Regulatory Affairs (OIRA) for review. While we will not know the details of the forthcoming proposed rule until it formally publishes, it is expected to address: (1) initial heat triggers (NIOSH says 80 degrees Fahrenheit) and high-heat triggers (NIOSH says 90 degrees Fahrenheit) for when federal requirements to protect workers from heat stress must be used; (2) requirements for employers to submit written heat exposure control plans and/or heat illness prevention plans that advise people in administrative positions, managers, and workers on heat injury and illness prevention policies; (3) mandates regarding training frameworks that describe how the heat illness prevention plan or exposure control plan should be implemented and how it should train individuals to identify heat hazards, how to mitigate those hazards, and how to provide emergency response; (4) requirements to engage in environmental monitoring to determine what actions and responses are triggered by temperature or heat index thresholds; (5) requirements to ensure sufficient workplace control measures are in place, including providing potable and palatable water, designated water and shade breaks, indoor air movement and humidity control, and regular rest breaks; (6) requirements for pre-shift meetings or employee notifications, as well as suggestions for effective means of communication with employees; (7) acclimatization for new or returning workers and during heat waves; and (8) recordkeeping. OIRA generally has 90 days to review an agency rule, which means that OSHA’s heat injury and illness rule could be published for comment in late summer or fall.

MCAA’s Raffi Elchemmas and Andrew Siff participated in a call with the Construction Industry Safety Coalition to prepare for a call the group is having with OIRA to discuss our views on and concerns about the rulemaking before it clears the White House.  

Other Interesting Things Since Our Last Report 

Thursday, June 20^th

• House Education and the Workforce Health, Employment, Labor, and Pensions Subcommittee Chair Bob Good (R-VA) announced a hearing on June 27, 2024 at 10:15am entitled, “Examining the Policies and Priorities of the Employee Benefits Security Administration.” Good said the hearing will “not only shine a light on EBSA’s misguided regulatory agenda, but it will also examine Assistant Secretary Lisa Gomez’s involvement in taxpayer funds erroneously paid to pensions plans for deceased participants” by the Pensions Benefit Guaranty Corporation.

• The Energy Department released the new Supply Chain Cybersecurity Principles, which were developed for energy infrastructure manufacturers and end users and create a framework to strengthen key technologies used to manage and operate electricity, oil, and natural gas systems around the world. Notable energy sector suppliers and manufacturers that have supported the principles include GE Vernova, Schneider Electric, Hitachi Energy, Schweitzer Engineering Laboratories, Rockwell Automation, Siemens, Siemens Energy, and Honeywell.  

• The General Services Administration announced plans to invest $80 million from the Inflation Reduction Act into smart building technologies that will help reduce emissions, increase efficiency and reduce costs, and enhance comfort across an estimated 560 federal buildings in 49 states, Puerto Rico, and Washington, D.C.

• The Homeland Security Department’s U.S. Citizenship and Immigration Services announced the extension of the validity of Employment Authorization Documents (EADs) issued to Temporary Protected Status beneficiaries under the designations for El Salvador, Honduras, Nicaragua, Nepal, and Sudan through March 9, 2025.

• The Washington Times published an editorial arguing that as more young people eschew four-year college degrees for vocational work, such as construction, our nation needs to “regain respect for working with one’s hands” and “should see and value the skill, both intellectual and physical, that such work manifests.”

• Citi Group released a new report finding that artificial intelligence (AI) is likely to displace more jobs in “white collar” industries, like banking and insurance, than “blue collar” industries, like natural resources and chemicals. The report finds that banking jobs face the highest probability of displacement as the technology is poised to upend consumer finance and make workers more productive. Citi predicts that 54% of jobs across the banking sector have a high potential to be automated with AI. The report lists the insurance industry as the sector with the second greatest potential for job displacement from AI, estimating that up to 48% of the jobs in the industry could be automated with AI. Following the insurance industry, Citi predicts that 43% of energy jobs and 34% of retail jobs have a high potential to be replaced by AI. Conversely, Citi found that jobs in the chemical and natural resources industries have the lowest potential for jobs to be automated.

• As part of a planned $100 million ad campaign to retake the U.S. Senate, the National Republican Senatorial Committee (NRSC) began placing multimillion-dollar reservations for TV and digital advertising in the fall for four states: Ohio, Nevada, Michigan, and Arizona. Ohio and Nevada are rated toss-ups by the nonpartisan election forecaster Cook Political Report, while the other two are viewed as competitive.

Tuesday, June 18^th

• The Transportation Department’s (DOT) Pipeline and Hazardous Materials Safety Administration announced a notice of funding opportunity for nearly $200 million through the Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant program available to municipal or community-owned utilities (excluding for-profit entities) seeking assistance in repairing, rehabilitating, or replacing high-risk, leak-prone natural gas distribution infrastructure. Funds can also be used to acquire equipment for reducing natural gas distribution pipeline incidents and fatalities, and to avoid economic loss from leaks. Resources, including the official NOFO and more information on the application process, is available on the NGDISM grants page. 

• The Energy Department (DOE) announced a notice of intent (NOI) to fund up to $900 million in grants through the Bipartisan Infrastructure Law to support the initial deployment of General III+ (Gen III+) Small Modular Reactor (SMR) technologies and spur follow-on reactor projects to strengthen the domestic nuclear industry. SMRs have the ability to meet smaller localized power demands and can also be scaled up for larger demand or used in complement with renewable energy. The funding will be offered in two tiers: (1) Tier 1 will provide up to $800 million for two first-mover teams (i.e., a company that gains a competitive advantage by being the first to bring a new product or service to the market) of utility, reactor vendor, constructor, and end-users or power off-takers (i.e., buys power from a project developer at a negotiated rate for a specified term) committed to deploying a first plant while at the same time facilitating a multi-reactor, Gen III+ SMR orderbook; and (2) Tier 2 will provide up to $100 million for additional Gen III+ SMR deployments by addressing key gaps that have hindered the domestic nuclear industry in areas such as design, licensing, supplier development, and site preparation. A webinar regarding the NOI will take place on July 9, 2024 at 1pm ET and registration is required. Additionally, DOE is offering meetings for Tier 1 project concepts, and registration is available by email to Gen3PlusSMR@hq.doe.gov.

• The Environmental Protection Agency (EPA) Office of the Inspector General (OIG) issued a fraud alert to highlight new regulatory requirements for EPA grant recipients and subrecipients to disclose both civil and criminal violations of federal law to the OIG under the Office of Management and Budget’s “Guidance for Federal Financial Assistance” regulations published on April 22, 2024. In a related podcast, the OIG Special Agent in Charge said that the EPA’s $27 billion in grant programs authorized under the Bipartisan Infrastructure Lawand Inflation Reduction Act are “open and ripe for fraud, especially at the subrecipient level,” because the grants get “passed down to multiple layers of subawards.” The OIG also detailed protections for EPA employees and contractors of EPA grantees and subgrantees who blow the whistle on fraud in these program. This is just the latest in a series of warnings the EPA IG has issued over these grant programs, including: (1) a May 16, 2024 press release in which the EPA IG indicated that a lack of internal controls may have cause the EPA to base its fiscal year 2023 allotment of $3 billion in Bipartisan Infrastructure Law funds for lead service line replacements on inaccurate and unverified data; and (2) a January 9, 2024 report in which the EPA IG said the EPA underreported $7 billion worth of fiscal year 2022 spending on a federal website because the agency did not follow its own procedures for configuring data or catching mistakes while relying on “manual, fragmented, and overly complex” processes. 

• President Biden announced a forthcoming Department of Homeland Security (DHS) rule to allow noncitizen spouses and children of U.S. citizens to apply for lawful permanent residence without having to first leave the country. In order to be eligible, noncitizens must have—as of June 17, 2024—resided in the U.S. for ten or more years and be legally married to a U.S. citizen, while satisfying all applicable legal requirements. Tuesday’s announcement will also allow some Deferred Action for Childhood Arrival recipients and other so-called “Dreamers” to more swiftly get work visas if they have earned a college degree at an accredited U.S. institution and received an offer of employment from a U.S. employer in a field related to their degrees. 

Monday, June 17^th

• The Biden campaign announced it will spend $50 million though the end of June on an ad blitz that includes its first television ad discussing Trump’s conviction, signaling that President Biden is seeking to make his GOP opponents woes a bigger issue heading into November. This comes as a new poll finds that 21% of independents say they are less likely to vote for Trump after his conviction in his New York hush money case. 

• The Wall Street Journal published an editorial from a graduate of Shawsheen Valley Technical High School in Billerica, Massachusetts entitled, Why I Skipped College to Be an HVAC Tech that details one young person’s decision to forgo a four-year college degree and the debt associated with it. 

Friday, June 14^th

• President Biden signed an Executive Order (E.O.) to formalize the White House Council on Supply Chain Resilience—which consists of the Departments of Labor, Energy, Transportation, Homeland Security, Treasury, State, Defense, Agriculture, and Defense, as well as the Environmental Protection Agency. The E.O. requires the Council to issue a report by the end of 2024 and every four years thereafter regarding, among other things: (1) federal incentives and any potential amendments to federal procurement regulations that may be necessary to attract and retain private sector investments in the supply chains for critical goods and materials and other essential goods, materials, and services; (2) education and workforce reforms needed to strengthen the domestic industrial base for critical goods and materials; (3) reforms to trade rules and agreements to support supply chain resilience, security, diversity, sustainability, and strength; and (4) steps to ensure that the federal government’s supply chain policies support small businesses, prevent monopolization, strengthen critical infrastructure, and empower workers to advocate for their rights and quality jobs.

Thursday, June 13^th

• The Senate voted 63-33 to confirm Judy Chang to the Federal Energy Regulatory Commission (FERC). This followed votes on Wednesday, June 12^th to confirm David Rosner and Lindsay See to FERC by votes of 67-27 and 83-12, respectively. Confirmation of these nominees ensures FERC has a quorum of voting commissioners to issue orders on a range of energy matters of interest to MCAA the Commission regulates, including the interstate transmission of oil, natural gas, and electricity, as well as permitting to build liquefied natural gas terminals, interstate natural gas pipelines, and hydropower projects. FERC Chair Willie Phillips issued a statement applauding the confirmation of the three new members, noting that “the Commission works best when it has five members.”
  
• The Interior Department (DOI) announced $142 million in funding from the Bipartisan Infrastructure Law to advance drought resilience and boost water supplies, with approximately $85 million going to California, Hawaii, Kansas, Nevada, and Texas for the planning, design, and construction of water recycling facilities that reclaim and reuse wastewater and impaired ground and surface water and $57.5 million going to four desalination projects in southern California to increase water management flexibility and make water supplies more reliable through the treatment of seawater or brackish water.

• The General Services Administration (GSA) transmitted to the White House Office of Information and Regulatory Affairs (OIRA) for review a proposed rule entitled, “General Services Administration Acquisition Regulation (GSAR); SGAR Case 2021-G530, Labor Requirements for Lease Acquisitions.” This proposed rule would extend the requirements of Executive Order 14026, “Increasing the Minimum Wage for Federal Contractors” and Department of Labor regulations at 29 CFR part 23 to lease acquisitions where the Davis-Bacon Act applies by requiring inclusion of related Federal Acquisition Regulation (FAR) requirements. Generally, the FAR does not apply to leasehold acquisitions of real property. GSA notes, however, that several FAR requirements have been adopted through GSAR part 570.

Tuesday, June 11^th

• Sen. Patty Murray (D-WA), House Education and the Workforce Ranking Member Bobby Scott (D-VA), and House Judiciary Committee Ranking Member Jerry Nadler (D-NY) reintroduced the Restoring Justice for Workers Act, which seeks to end forced arbitration clauses. Specifically, the legislation would: (1) prohibit the use of forced arbitration clauses in employment contracts and prohibit employers from requiring employees to waive their right to engage in join, class, or collective legal action; (2) reverse the Supreme Court’s 5-4 decision in Epic Systems, which dismantled workers’ right to band together to hold employers accountable; and (3) ensure that post-dispute arbitration agreements are not obtained by threat or coercion, that the agreement is understandable, and that the employee affirmatively consents to the agreement in writing and is fully aware of their rights in the workplace. 

• A group of House Democrats launched a task force to take on and publicize some policy ideas coming out of “Project 2025,” a policy roadmap that outlines policies Trump-aligned conservative groups envision enacting during a second Trump presidency. The group is led by Rep. Jared Huffman (D-CA) and includes, among others, Democratic Caucus Vice Chair Ted Lieu (D-CA), House Oversight Committee Ranking Member Jamie Raskin (D-MD), and Progressive Caucus Chair Pramila Jayapal (D-WA). The task force will liaise with liberal groups and help gather research, organize briefings, and coordinate messaging and legislative strategy among the Democratic Caucus.

• The Wall Street Journal reported that U.S. cities looking to convert half-filled office towers into residential buildings are studying Calgary, Alberta, Canada, which has one of the most aggressive programs in North America to promote these conversions—including paying developers up to $55 per square foot to redevelop empty office buildings into residences. 

Monday, June 10^th

• The Wall Street Journal (WSJ) published a lengthy piece entitled, A Reckoning for Biden’s Lawless Labor Chief, which argues against reconfirming National Labor Relations Board (NLRB) Chair Lauren McFerran, whose term ends in December 2024. The WSJ’s Editorial Board asserts that under McFerran’s tenure as chair, the NLRB has repeatedly disregarded the law and shed any veneer of fairness. 
  
• The Wall Street Journal reported that skepticism about the cost and value of four-year college degrees is growing and causing enrollment at vocational-focused colleges to rise 16% last year—the highest level since the National Student Clearinghouse began tracking such data in 2018. 

• Axios reported that Teamsters President Sean O’Brien requested to speak at both the Republican and Democratic national conventions this summer. The request comes after O’Brien invited several presidential candidates to speak before the Teamsters and indicated that he is delaying an endorsement decision until later in the year.

Around the Country 

Northeast 

• On June 17^th, New Jersey Attorney General Matthew Platkin charged George and Philip Norcross, the brothers of Rep. Donald Norcross (D-NJ), in a sweeping indictment alleging a 12-year corruption scheme that involved extortion and threats.

• On June 13^th, former Obama Secretary of State Hillary Clinton endorsed Westchester, New York County Executive George Latimer in his Democratic primary bid against far-left progressive Rep. Jamaal Bowman (D-NY) in New York’s 16^th Congressional District. 

• On June 12^th, Maine state Rep. Austin Theriault won the Republican nomination in Maine’s 2^nd Congressional District to face incumbent Rep. Jared Golden (D-ME) in November.

• On June 10^th, the main channel to the Port of Baltimore fully reopened, nearly 11 weeks after a cargo ship lost power and slammed into the Francis Scott Key Bridge, killing six construction workers and shutting down one of the nation’s busiest waterways.
  
• On June 7^th, a federal jury in Massachusetts convicted Jason Pecoy, a construction company manager for Kent Pecoy and Sons Construction, Inc., for conspiring to conceal income from the Internal Revenue Service by dealing in cash and then distributing the cash directly to vendors and subcontractors, keeping separate ledgers documenting the cash payments, and creating false contracts and cost estimates.

West

• On June 20^th, the Pension Benefit Guaranty Corporation (PBGC) announced that it has approved the application submitted to the Special Financial Assistance (SFA) Program by the Pacific Coast Shipyards Pension Plan (Pacific Coast Shipyards Plan), which is based in Pleasanton, California and covers 507 participants in the maritime construction industry. The Pacific Coast Shipyards Plan will receive approximately $18.9 million in SFA, including interest to the expected date of payment to the plan. The plan was projected to become insolvent and run out of money in 2032 and participants’ benefits would have been cut by roughly 35 percent below the amount payable under the terms of the plan without the SFA. 
  
• On June 18^th, One Nation, a top conservative group, announced a new ad against incumbent Democratic Sen. Jacky Rosen (NV) as part of a $6 million ad buy that will run through Labor Day. The ad urges Rosen to “vote against reckless spending and for struggling families” and attacks Rosen’s votes in favor of the Bipartisan Infrastructure Law and the Inflation Reduction Act.

• On June 12^th, the Environmental Protection Agency (EPA) announced $37 million in funding from the President’s Bipartisan Infrastructure Law to support the South Mission Storm Drain and Green Infrastructure project in San Diego, California. Through a $32 million low-interest loan and a $5 million grant to the State Revolving Fund Program, San Diego will upgrade storm drain infrastructure in the South Mission Beach neighborhood that dates to the 1940s and is inadequately sized, causing regular flooding in one of the city’s most densely populated neighborhoods.
  
• On June 11^th, Sen. Michael Bennet (D-CO) and Rep. Joe Neguse (D-CO) sent a letter to the Environmental Protection Agency requesting that the agency scrutinize existing and proposed pollution permits at the Wildcat Loadout, the Price River Terminal, and the Savage Energy Terminal in Utah’s Uinta Basin. The lawmakers expressed concerns that an expansion of these oil transport facilities could endanger residents and wildlife across state lines.

• On June 11^th, the Ninth Circuit Court of Appeals ruled Uber’s challenge to California’s AB-5 independent contractor law cannot move forward, saying the law does not illegally single out transportation gig workers, but merely changes regulations for all independent contractors. 

• On June 11^th, the Associated Press reported that Bill Gates and his energy company TerraPower are starting construction at a site in Kemmerer, Wyoming for a next-generation nuclear power plant. The company applied to the Nuclear Regulatory Commission in March for a construction permit for an advanced nuclear reactor that uses sodium, not water, for cooling. The work begun today is aimed at ensuring the site is ready so TerraPower can build the reactor as quickly as possible if the permit is approved.  

Northwest 

• On June 18^th, Washington State and Oregon filed a federal lawsuit challenging Federal Energy Regulatory Commission orders approving the Gas Transmission Northwest Xpress project intended to upgrade three compressor stations. In the lawsuit, the states said that the project will “increase air pollution, harm wildlife owned by the States of Washington and Oregon and increase safety hazards to state-owned property near the pipeline.” The states are asking the D.C. Circuit to review the commission’s approval order and two orders denying the states’ requests for rehearing. 

• On June 12^th, a federal jury in Portland found the operator of a local chain of check cashing businesses in Oregon guilty for his role in a multiyear scheme to obstruct the Internal Revenue Service (IRS) from collecting payroll and income taxes on construction workers’ wages. David Katz, the compliance officer for Check Cash Pacific, Inc., conspired with others in the construction industry to facilitate under-the-table payments to construction workers that evaded tax withholdings. To carry out the scheme, sham construction companies were created and used to cash more than $177 million in payroll checks at different Check Cash Pacific locations. The cash was used to pay construction workers under-the-table, with no taxes being withheld or reported to the IRS.

Midwest 

• On June 18^th, the National Labor Relations Board (NLRB) announced a ruling by NLRB Administrative Law Judge Sarah Karpinen that J.O. Mory, Inc. an HVAC company located in South Milford, Indiana, unlawfully: (1) violated the National Labor Relations Act by maintaining unlawful noncompete and solicitation policies; (2) terminated an employee for engaging in union activity protected under the National Labor Relations Act; and (3) maintained an unlawful “Union Free Statement” in a handbook that employees were forced to sign as a condition of employment. 

• On June 15^th, Indiana Republicans rejected State Rep. Julie McGuire (R) as Sen. Mike Braun’s (R-IN) choice for his lieutenant governor running mate and instead nominated Pastor Micah Beckwith, a far-right candidate who has used his podcast to promote uncompromising positions on abortion, gender, and sexuality.

• On June 12^th, Republican state Sen. Michael Rulli won a special election to fill former Rep. Bill Johnson’s (R-OH) seat in Ohio’s 6^th Congressional District. Rulli’s win provides an increase to Republicans’ narrow House majority that will grow to 219 Republicans to 213 Democrats when Rulli is sworn in. But there is consternation that Rulli only received 55% of the votes in an overwhelmingly Republican district that former Rep. Johnson repeatedly won by more than 30 points

• On June 11^th, the Agriculture Department’s Agricultural Research Service announced it is breaking ground on the construction of a world-class dairy research facility near Madison, Wisconsin that will consist of 18 buildings on a 42-acre site that will house robotic milking stations, chambers for measuring greenhouse gas emissions, an advanced animal nutrition unit and state-of-the-art laboratories for agronomy and dairy science, as well as offices and a visitor center.

Southeast

• As of June 21^st, the Republican primary in Virginia’s 5^thCongressional District between House Freedom Caucus Chair Rep. Bob Good (R-VA) and Trump-endorsed state Sen. John McGuire (R) remained too close to call and is likely headed to a recount

• On June 18^th, the Department of Labor’s Occupational Safety and Health Administration (OSHA) announced that it will hold a webinar on June 26, 2024 from 1-3pm ET for its Southeast Region (Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee) that will include presentations on whistleblower laws that OSHA enforces, the criteria for filing a whistleblower complaint and how to file one, claim processes and procedures, and what happens during an investigation on federal protections for whistleblowers in OSHA’s Southeast Region. Registration for the webinar is required and is available here through EventBrite. 

• On June 18^th, retired Navy Captain Hung Cao won the GOP Senate primary in Virginia and will face incumbent Sen. Tim Kaine (D) in November.

• On June 18^th, Army veteran Eugene Vindman, who was a key player in the first Trump impeachment, won the Democratic nomination for Virginia’s 7^th Congressional District currently represented by Rep. Abigail Spanberger (D) and will face Republican Derrick Anderson in November. 

• On June 18th, Virginia state Sen. Suhas Subramanyam won the Democratic primary in Virginia’s 10^th Congressional District, currently represented by Jennifer Wexton (D) and will face Republican Mike Clancy in November.

• On June 14^th, Rep. Garret Graves (R-LA), an ally of former Speaker Kevin McCarthy (R-CA), announced he will not seek reelection to Louisiana’s 6^thCongressional District following redistricting that made the district the second Black-majority congressional district in the state.

• On June 13^th, the Federal Energy Regulatory Commission granted final approval to Equitrans Midstream Corp. to start operations at its Mountain Valley Pipeline in West Virginia that will ship natural gas from the Marcellus Shale in West Virginia into Virginia. Despite the protests of environmental activists, FERC’s Office of Energy Projects provided the final confirmation that the pipeline follows all necessary safety and environmental regulations. 

• On June 13^th, a new poll found that Sen. Rick Scott’s (R-FL) lead over his Democratic challenger former Rep. Debbie Mucarsel-Powell (D-FL) has shrunk to just two points. 

• On June 12^th, Rep. Nancy Mace (R-SC) beat back a primary challenge in South Carolina’s 1^stCongressional District against a candidate who had the support of former House Speaker Kevin McCarthy (R-CA), who Mace voted to oust last October.

Southwest

• On June 20^th, a new study found that human-caused climate change turbocharged the odds of this month’s killer heat that has been baking the Southwestern United States, Mexico, and Central America. Specifically, World Weather Attribution, a collection of scientists that run rapid and non-peer reviewed climate attribution studies, said that sizzling daytime temperatures that triggered heat stroke in parts of the United States were 35 times more likely and 2.5 degrees hotter (1.4 degrees Celsius) because of the warming from the burning of coal, oil and natural gas. 

• On June 18^th, House Appropriations Committee Chair Rep. Tom Cole (R-OK) handily won an expensive Republican primary in Oklahoma’s 4^thCongressional District.

• On June 17^th, Texas, Louisiana, and Mississippi sued the federal government to block the Biden Administration’s proposed rule that would require the offshore oil and gas industry to provide nearly $7 billion in financial assurances to cover the costs of dismantling old offshore drilling infrastructure.

• On June 12^th, Trump-endorsed candidate former Army Capt. Sam Brown won the Nevada GOP Senate primary and will face incumbent Sen. Jacky Rosen (D-NV) in November

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Friday, June 7, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

MCAA Issues and Interests 

Project Labor Agreements

HELP Ranking Member Cassidy Issues Report Accusing Biden Administration of “Aiding Political Backers at the Expense of American Workers” 

As we continue to engage with various congressional committees with jurisdiction over the MCAA’s priority issues, we wanted to be sure the GAC was aware that on May 29^th, during the Memorial Day recess week, Senate Health, Education, Labor, and Pensions (HELP) Committee Ranking Member Bill Cassidy (R-LA) released a report accusing the Biden Administration of weaponizing its “executive authority over U.S. labor and employment policy to strip workers of opportunity, flexibility, pay, and protection against discrimination, in a bid to court the political backing of large labor unions.” 

In the report, Cassidy cites several examples of this “weaponization,” included FAR Council regulations implementing President Biden’s Executive Order expanding the federal government’s use of project labor agreements and DOL’s final rule modernizing Davis-Bacon prevailing wage. Cassidy characterized the PLA rule and the Davis-Bacon Modernization Rule as favors to unions meant to “ensure that government dollars easily flow to contractors that hire union labor, follow union work rules, and pay into union defined benefit and pension plans. Cassidy’s report also complained about the Department of Labor’s (DOL) final independent contractor rule, which he says “dismantles the gig economy and jeopardizes the ability of 27 million Americans to work as independent contractors.”  The Ranking Member also attacked the National Labor Relations Board’s final joint employer rule and DOL’s new “Worker Walkaround Rule,” which he says “allows outside union officials to inject themselves into workplaces that have not voted to be represented by the union.” Cassidy also decried the Office of Labor-Management Standards’ rescission of Trump-era financial disclosure rules for union-related trusts, which he said “will result in unchecked union corruption.”  The full report is available here. The report is notable because it reflects the view of the Senator likely to chair the Senate HELP committee on many MCAA issues care about should Republicans win control of the Senate in November.

Davis-Bacon Federal Prevailing Wage

This week, in addition continuing our outreach to oppose the Congressional Review Act (CRA) resolution to rescind the MCAA-supported final Davis-Bacon rule, we were rallying against the amendment Rep. Gosar filed on the NDAA bill when it is considered on the House floor.  We are hopeful we can dissuade he House Rules Committee from considering this amendment, but we are not taking any chances and are preparing for a battle if it is made in order. The strong, bipartisan votes against other anti-Davis-Bacon amendments this Congress gives us good insight into where we need to lobby to achieve a good outcome if Gosar’s amendment does make the cut to be considered.

Registered Apprenticeship

DOL Advisory Committee on Apprenticeship Holds Meeting to Start 2024-2026 Term 

This week, our effort on registered apprenticeship entailed devoting Tuesday and Wednesday to monitoring the full-day deliberations of the Department of Labor Advisory Committee on Apprenticeship’s (ACA) “Kickoff Meeting” for the 2024-2026 ACA Term. The UA is represented on the ACA by UA Training Director Raymond Boyd and the full list of ACA members for the 2024-2026 term is available here. Additionally, the PowerPoint presentation used to guide the two days of meetings is available here. 

On Tuesday, Office of Apprenticeship Administrator John Ladd said the goal of the ACA is to “expand, diversify, and modernize apprenticeship”—including through DOL’s recent proposed rule on “National Apprenticeship System Enhancements.” To that end, Ladd said DOL is focusing its apprenticeship efforts on equity and diversification by trying to get apprenticeship programs to reflect the communities they serve and expanding them to industries that have not used apprenticeships. Ladd said that DOL is embedding equity through tools such as the Diversity, Equity, and Inclusion technical assistance center that will aid apprenticeship programs in meeting their Equal Employment Opportunity obligations. Ladd also noted that DOL’s registered apprenticeship metrics show strong outcomes for employers and workers, such as a 90% retention rate, a $300,000 lifetime income advantage for workers who complete apprenticeships, and a $1.44 return on investment for every dollar employers spend. But he also said that more needs to be done to address completion rates that average 44% and to get women, minorities, and disabled individuals into apprenticeship programs. Ladd expects more attention to the demographic profile of apprenticeship programs since DOL launched a new “Apprenticeship Population Dashboard” showing the racial and ethnic composition of apprentices versus their prevalence in the overall workforce. This data series will be further developed to provide racial and ethnic data of apprentices by occupation to help address what ACA members called “occupational segregation.” 

On Wednesday, representatives from the Commerce Department highlighted that Commerce Secretary Gina Raimondo is focused on bringing more women into construction through a “Million Women in Construction Initiative” which seeks to get construction users to adopt principles to expand the number of women in construction. The Commerce representative also highlighted that the Department has identified $190 million to support workforce training in construction, mainly through project labor agreements and registered apprenticeship programs. A representative from the Transportation Department (DOT) explained that DOT is focused on apprenticeship as a means to fulfill the vision of recently enacted infrastructure laws like the Bipartisan Infrastructure Law, and the Inflation Reduction Act. During the discussion period of the meeting, attendees stressed the need to provide transportation for people in apprenticeship and pre-apprenticeship programs and the need to ensure people know they will not lose public benefits by participating in apprenticeship and pre-apprenticeship programs. In closing the meeting, Administrator Ladd said that DOL is about to announce a new round of apprenticeship grants and that the ACA will hold its next meeting in September and a notice with details on how to participate in the meeting will be published in advance of the meeting in the Federal Register.

Independent Contractors and Misclassification of Workers 

Senate HELP Ranking Member Cassidy Seeks Feedback on Federal Barriers to Providing Portable Benefits for Independent Contractors 

As we continue fighting the Congressional Review Act Resolution to kill the MCAA-supported independent contractor rule, we wanted to be sure you were aware that on Wednesday June 5th, Senate Health, Education, Labor, and Pensions (HELP) Committee Ranking Member Bill Cassidy (R-LA) issued a letter requesting feedback from stakeholders and the public by June 26, 2024 on ways to reformulate federal laws and regulations to facilitate independent the proliferation of independent contractor business models and the elimination of federal legal and regulatory barriers to independent contractors accessing portable workplace benefits, like retirement and healthcare, that have historically been tied to traditional employer-employee relationships. 

In his letter, Cassidy contends that “at least 27 million Americans engage in independent work” including subcontractors, housing contractors, truck drivers, physicians, and participants in the ‘gig economy,’ but federal labor and employment laws discourage and prevent workers from accessing commonplace workplace benefits.” As a result, Cassidy is seeking feedback on several topics to remove what he views as “regulatory barriers to portable benefits for independent contractors” as part of his long-standing effort to proliferate the independent contractor business model. Among the topics on which Cassidy is requesting feedback are: (1) the chief federal legal and regulatory obstacles preventing the provision of benefits to independent contractors; (2) the fringe benefits independent contractors value most; (3) criteria for who should be eligible for portable benefits; (4) how work hours should be measured to assign benefits where a worker is performing work for several clients at the same time; (5) how portable benefits should be funded; (6) current barriers that prevent independent contractors from banding together to have a larger risk pool to reduce insurance expenses; (7) the percentage of independent contractors covered by health insurance; (8) emerging portable benefit models or policies Congress should consider; (9) lessons that can be learned from current state portable benefit experiments; (10) lessons to be learned from previous federal policies, including the 2018 Trump-era Association Health Plans rule; and (11) whether Congress should consider expanding individual health coverage reimbursement arrangements to independent workers. 

Responses to the request for feedback are due by June 26, 2024, and can be submitted to IndependentWorkforce@help.senate.gov. We are currently assessing if there is a desire among CEA member associations to undertake a group response to Cassidy.

Pension Reform

Discussions heat up on Republican Plans for Using the Reconciliation Process

As Republican hopes grow that they will get unified control of the White House and Congress in November, serious talks are underway about what the GOP wants to accomplish through the partisan budget reconciliation process that allows changes in tax policy and other policies with a revenue impact by a simple majority vote free of the threat of a filibuster. You may recall that Democrats used this process to pass the Inflation Reduction Act.  

With the House-passed tax bill stalled in the Senate and no current prospects for it to be revived, we have started feeling out some moderate Republicans on the House and Senate tax writing committees about their willingness to support our two-pool withdrawal liability proposal in a reconciliation bill. These discussions are very preliminary, but we do not sense much interest at this stage. In fact, we are hearing that some anti-union Republicans want to use budget reconciliation to roll back the Special Financial Assistance Program enacted as part of the American Rescue Plan Act and to increase Pension Benefit Guaranty Corporation (PBGC) premiums for multiemployer plans.  

Decarbonization

Biden Administration Announces New Principles for High-Integrity Voluntary Carbon Markets 

On May 28^th, during the Memorial Day recess, the Biden Administration released a “Joint Statement of Policy and New Principles for Responsible Participation in Voluntary Carbon Markets (VCMs)” and an associated fact sheet detailing the Administration’s approach to advance high-integrity VCMs. VCMs are intended to give individuals, companies, non-profit organizations, governments and others the opportunity to buy and sell carbon offset credits representing the reduction of one metric ton of carbon dioxide of greenhouse gas emissions. The principles seek to ensure the integrity of carbon credits and include confirming: (1) that carbon credits and the activities that generate them meet credible atmospheric integrity standards and represent real decarbonization; (2) credit-generating activities avoid environmental and social harm and, where applicable, produce other “co-benefits”; (3) corporate buyers that use credits prioritize measurable emissions reductions within their own value chains; (4) credit users publicly disclose the nature of purchased and retired credits; (5) public claims by credit users accurately reflect the climate impact of retired credits and only rely on credits that meet high integrity standards; (6) market participants contribute to efforts that improve market integrity; and (7) policymakers and market participants facilitate efficient market participations and seek to lower transaction costs. 

White House Launches Federal-State Initiative to Bolster the U.S. Power Grid 

On May 28^th, the White House announced the launch of the “Federal-State Modern Grid Deployment Initiative,” with commitments from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Washington, and Wisconsin. The Initiative aims to bring together states, federal entities, and power sector stakeholders to help drive grid adaptation quickly and cost-effectively to meet power sector challenges and opportunities. Participating states have committed to prioritize efforts that support the adoption of modern grid solutions to expand grid capacity and build modern grid capabilities on both new and existing transmission and distribution lines. As part of the Initiative, the 21 states signing on as inaugural members will focus on: (1) meeting the shared challenges and opportunities of increased load growth, a rapidly changing energy landscape, aging infrastructure, and new grid-enhancing technologies – while delivering reliable, clean, and affordable energy to consumers; and (2) deploying innovative grid technologies to bolster the capacity of the U.S. electric grid and more effectively meet current and future demand, maximize benefits of new and existing transmission infrastructure, increase grid resilience to the growing impacts of climate change, and better protect consumers from variability in energy prices.

IRS Opens Applications for Low-Income Communities Bonus Credit Program 

On May 28^th, the Internal Revenue Service announced that the application for the 2024 Low-Income Communities Bonus Credit Program is now open. Created by the Inflation Reduction Act, the Low-Income Communities Bonus Credit Program provides a 10 or 20 percentage point increase to the energy investment credit for solar and wind facilities under five megawatts that apply for and receive an allocation of environmental justice solar and wind capacity limitation. Taxpayers that receive an allocation and properly place the facility in service may then claim the increased energy investment credit in the year that the facility is placed in service. Applications are being accepted from now until June 27, 2024 at 11:59pm ET. During the application window, all applications will be considered as submitted at the same date and time. Applications submitted after June 27^th will then be evaluated on a rolling basis.

IRS Guidance on the Inflation Reduction Act’s Clean Fuel Production Credit 

On May 31^st, the Internal Revenue Service (IRS) issued Notice 2024-49 to provide guidance on the Internal Revenue Code (IRC) section 45Z “Clean Fuel Production Credit.” The Inflation Reduction Act (IRA) implements the section 45Z tax credit for the production of clean transportation fuels beginning on January 1, 2025. Under the section 45Z credit, transportation fuel is divided into two broad categories – sustainable aviation fuel (SAF) and non-SAF transportation fuel. The value of the section 45Z credit will be equal to the product of: (1) the applicable amount per gallon (or gallon equivalent) for any transportation fuel that is produced by the taxpayer at a qualified facility during the taxable year; and (2) the emissions factor for such fuel as determined under the IRC. Notice 2024-49 includes an “Appendix A” that identifies primary feedstocks used to make transportation fuels that may be eligible for the section 45Z credit. Per Notice 2024-49, taxpayers must register with the IRS on or before January 1, 2025 to be eligible to claim the section 45Z credit for production beginning on January 1, 2025. As a result, the IRS states that taxpayers should apply for registration as soon as possible to give the agency sufficient time to process registration applications. The IRS also notes that it intends to issue additional guidance on the section 45Z credit “at a later date.” 

House Ways & Means Supply Chain Task Force Seeks Input on Tax Incentives in the Inflation Reduction Act and the 2017 Tax Cut & Jobs Act

This week, Rep. Carol Miller’s Request for Information related to her role on the House Ways and Means supply chain task force. It seeks input on various tax incentives, particularly from the 2017 Tax Cut & Jobs Act and the Inflation Reduction Act tax credits and deductions. The form the Congresswoman is using to gather information expressly states that she is “not looking to be the one” making recommendations on what should be done with individual credits/incentives” and that this “is purely an educational and information gathering exercise.” Thus, we do not think it critical MCAA reply.  Still, the fact that she is gathering this information is interesting, as is the fact that the Congresswoman is committed to keeping all responses private.

Congressional Review Act Resolution of Disapproval Introduced to Kill EPA’s Power Plant Decarbonization Rule

Yesterday, Rep. Troy Balderson (R-OH) and 138 of his House Republican colleagues introduced a Congressional Review Act (CRA) resolution of disapproval to nullify the Environmental Protection Agency’s “Power Plant Rule” that is intended to impose emissions reduction requirements on existing coal-fired power plants and newly constructed gas-fired power plants. Among the groups supporting the CRA resolution are: (1) the U.S. Chamber of Commerce; (2) the National Rural Electric Cooperative Association; (3) the National Association of Manufacturers; (4) the American Petroleum Institute; (5) the Competitive Enterprise Institute; (6) Americans for Prosperity; (7) the American Energy Institute; (8) the American Consumer Institute; (9) Americans for Tax Reform; (10) the Taxpayers Protection Alliance; and (11) the Small Business and Entrepreneurship Council. 

Other Interesting Things Since Our Last Report 

Thursday, June 6^th

• The Department of Energy released a Request for Information (RFI) on a proposed Fusion Energy Public-Private Consortium Framework (PPCF) that seeks to support development of a competitive fusion power industry in the U.S. by exploring the near-term feasibility of a fusion energy public-private consortium framework (PPCF). A webinar on this effort and the related RFI will be held July 11th at 3 pm ET and interested parties may register here to participate.

• The Department of Energy (DOE) released the DOE Fusion Energy Strategy 2024 and a $180 million funding opportunity for Fusion Innovative Research Engine (FIRE) Collaboratives, aimed at supporting the further creation of a fusion innovation ecosystem by forming teams that will have a collective goal of bridging the Department’s Fusion Energy Sciences (FES) program’s foundational science research with the practical needs of the growing commercial fusion energy industry.

• The Department of Energy (DOE) announced a “National Definition of a Zero Emissions Building” to advance public and private sector efforts to decarbonize the buildings sector, which is responsible for more than one-third of total U.S. greenhouse gas emissions. Development of this definition is a key element of DOE’s Decarbonizing the U.S. Economy by 2050: A National Blueprint for the Buildings Sector, which outlines a strategy to reduce U.S. building emissions by 65% by 2035 and by 90% by 2050. Part 1 of the definition of a Zero Emissions Building sets criteria for determining that a building generates zero emissions from energy use in building operations. Under the definition, at a minimum, a zero emissions building must be energy efficient, free of onsite emissions from energy use, and powered solely from clean energy. DOE notes that future parts of this definition may address emissions from embodied carbon (producing, transporting, installing, and disposing of materials) and additional considerations. Alongside the announcement, DOE also said that eight major green building certification programs in the U.S. have pledged to embed, align, or exceed the National Definition of a Zero Emissions Building in their certifications. The federal government will also use this definition in leasing net-zero emissions buildings, which will become the standard for federal leases beginning in 2030.

• The Interior Department (DOI) announced an initial $700 million investment from President Biden’s Investing in America agenda for long-term water conservation projects across the Lower Colorado River Basin to fund innovative projects like water distribution structures, advanced metering infrastructure, farm efficiency improvements, canal lining, turf removal, groundwater banking, desalination, recycling water, and water purification. This funding is for “Bucket 2” projects being funded by the Lower Colorado Basin System Conservation and Efficiency Program, which was established through the President’s Inflation Reduction Act.

• CQ/Roll Call published a lengthy piece on the potential impacts on Congress if the Supreme Court overturns the Chevron doctrine as expected in the Loper Bright Enterprises and Relentless, Inc. cases. The article explains that if Chevron is reversed, Congress will have to adopt a more precise and detailed approach to writing legislation to ensure that laws are written with enough specificity that they can be implemented without agency interpretation. Congress may also be forced to rewrite many laws in response to an anticipated wave of litigation as industry groups and others challenge existing regulations interpreting an array of statutes.  

• House Financial Services Committee Ranking Member Maxine Waters (D-CA) led 36 lawmakers in a letter to the Securities and Exchange Commission urging the agency to “remain focused on the risk that climate change poses to investors” and to enforce its existing climate risk guidance and rules while its final climate risk disclosure rule is stayed. 

• South Carolina Sen. Tim Scott (R) announced a $14 million campaign in Georgia, North Carolina, Arizona, Wisconsin, Michigan, Nevada, and Pennsylvania to win over Black and other nonwhite working class voters to Republicans.  

Wednesday, June 5^th

• The Interior Department announced $725 million through the President’s Bipartisan Infrastructure Law for 22 states and the Navajo Nation to reclaim abandoned mine lands to improve water quality by treating acid mine drainage, restore water supplies damaged by mining, reclaim unstable slopes, and close dangerous mine shafts. The funding will also support projects that redevelop hazardous lands, including for advanced manufacturing and renewable energy deployment. States and Tribes are encouraged to prioritize projects that employ current and former coal industry employees and that work with organizations supporting pre-apprenticeship, registered apprenticeship, and youth training programs. For projects totaling more than $1 million, contractors must certify in their application that they use a project labor agreement, and include a project workforce continuity plan detailing apprenticeships, worker training programs, and partnerships with unions in the application. A full list of states and the funding amounts is available here.

• The Energy Department announced the first proposed projects selected under the Cleanup to Clean Energy initiative, which is an effort to repurpose parts of DOE-owned lands formerly used in the nuclear weapons program to become sites for clean energy generation. DOE will begin lease negotiations with solar energy developers NorthRenew Energy Partners and Spitfire to create electricity generation projects within the 890-square-mile Idaho National Laboratory site with a goal of producing 400 megawatts of solar power, enough to power 400,000 homes. DOE has also issued requests for qualifications to lease land through the initiative in Washington State, New Mexico, Nevada, and South Carolina.

• House Education and the Workforce Committee Chair Virginia Foxx (R-NC) sent a letter to Equal Employment Opportunity (EEOC) Commission Chair Charlotte Burrows requesting the EEOC give the public an opportunity to comment and provide feedback before the Commission finalizes a joint memorandum with the National Labor Relations Board (NLRB) on workplace speech and conduct. In the letter, Foxx asks the EEOC: (1) whether it will post a draft of the EEOC-NLRB memorandum for public comment before a final memorandum is published and, if so, for how long; (2) whether EEOC will take the comments received into consideration and revise the draft memorandum as necessary; and (3) what the EEOC’s justification would be for failing to post the memorandum for public comment. 

• The House Education and the Workforce Subcommittee on Health, Employment, Labor, and Pensions announced that it will hold a hearing on June 12, 2024 at 10:15 AM entitled, “National Labor Relations Board (NLRB) Overreach: Trampling on Workers’ Rights and Fostering Unfairness” which Subcommittee Chair Bob Good (R-VA) said will look at the alleged “weaponization” of the NLRB under Chair Lauren McFerran to “weaken the rights of working Americans.” Rep. Good is a staunchly anti-union member of Congress who has led Republican attempts to repeal Davis-Bacon prevailing wage. He is also Chair of the House Freedom Caucus and is facing a strong Republican primary challenge for Virginia’s 5^thCongressional District from a Trump-endorsed state senator. The primary will be decided on June 18^th.
  
• Rep. Tim Walberg (R-MI) and Sen. Mike Braun (R-IN) introduced bicameral Congressional Review Act resolutions of disapproval to block the Biden Labor Department’s final Overtime Protection Rule that extends overtime to 3.6 million of the nation’s lower-paid salaried workers. The rule is set to take effect on July 1, 2024.

• The primary super PAC supporting Donald Trump said it raised nearly $70 million in May and plans to spend $100 million in paid media through Labor Day, with a particular focus on Pennsylvania, Georgia, Arizona, and Nevada. This comes as a new poll finds that Robert F. Kennedy, Jr. narrowly helps President Biden and hurts Trump’s chances at winning the White House in the battleground states of Pennsylvania, Michigan, and Wisconsin.

Tuesday, June 4^th

• President Joe Biden signed a proclamation to turn away migrants seeking asylum who cross the U.S.-Mexico border illegally between ports of entry at times when there is a high volume of daily encounters. The proclamation went into effect at 12:01 AM ET on June 4, 2024, and will continue until the Biden Homeland Security Department determines that there has been a seven-consecutive-calendar-day average of less than 1,500 encounters at the border. The proclamation is to be reinstated each time DHS determines that there has been a seven-consecutive-calendar-day average of 2,500 encounters or more. Whenever the proclamation kicks in, U.S. border officials will stop implementing credible fear interviews for asylum claims and work to quickly expel foreign nationals who have crossed the border between ports of entry. Migrants who are expelled under the proclamation will receive a minimum five-year bar on reentry to the United States and potentially be criminally prosecuted. Under the proclamation, Mexico will receive nationals of Cuba, Haiti, Nicaragua, and Venezuela, as well as its own nationals, in expedited deportations. The Biden Administration also said it will enhance its capabilities to return nationals of other countries, including extracontinental migrants from places such as China. The proclamation includes exceptions to ensure that the asylum restrictions do not apply to unaccompanied minors and to allow border officials to conduct credible fear interviews with migrants who manifest a fear of returning to their country because of persecution or potential torture situations.

• There were swift reactions from across the spectrum to Tuesday’s proclamation on immigration. Speaker Mike Johnson (R-LA) railed against it, calling it “weak” and “window dressing” and argued that President Biden and Homeland Security Secretary Mayorkas took a series of actions that “engineered the open border.” House Democrats—particularly those in the Congressional Hispanic Caucus (CHC)—also blasted the proclamation, with CHC Chair Nanette Barragan (D-CA) saying she was “disappointed that this is a direction that the President has decided to take.” The ACLU is promising to sue the Biden Administration over the proclamation, saying the “action takes the same approach as the Trump Administration’s asylum ban.” 

• The Interior Department and the Biden Agriculture Department announced $2.8 billion in fiscal year 2025 funding from the Great American Outdoors Act (GAOA) to improve recreation facilities, water and utility infrastructure, Bureau of Indian Affairs-funded schools, historic structures, and other essential infrastructure. The proposal includes 172 GAOA projects in all 50 U.S. states and Washington, D.C. that will support an estimated 20,000 jobs in urban, suburban, and rural areas. 

• GeoMap, a new collaboration that combines the subsurface expertise of dozens of scientists, released a map that shows that the vast fleet of U.S. military bases, coal plants, and industrial facilities sit atop layers of hot rock deep within the Earth that could be used to build out the U.S.’s geothermal capacity. 

• A June 3-4, 2024 New York Times/Siena College “recontact poll” that re-polled nearly 2,000 registered voters who had previously participated in two presidential surveys in April and May found that following Trump’s conviction in the New York hush money case Trump lost 7 points of support he had before the conviction with 3% now saying they will vote for President Biden and 4% now saying they are undecided. President Biden, meanwhile, lost 4 points of support, with 1.5% of respondents now saying they will back Trump and 2.5% saying they are now undecided. Overall, Trump still leads Biden 47% to 46% (down from the 48%-45% lead Trump held in previous polls).

• New polls found Donald Trump and President Biden neck-and-neck in Michigan, Pennsylvania, and Wisconsin. In Michigan, Trump and Biden are tied at 45%, in Pennsylvania, Trump leads Biden 45% to 43%, and in Wisconsin, Biden leads Trump 40%-38%.

Monday, June 3^rd

• The Interior Department (DOI) announced $130 million in funding for the Abandoned Mine Land Economic Revitalization (AMLER) Program to Kentucky, Pennsylvania, West Virginia, Alabama, Ohio, Virginia, and several Tribal territories for projects that return legacy coal mining sites to productive uses through economic and community development and the creation of good-paying union jobs.

• Eight Republicans—Sens. Mike Lee (UT), J.D. Vance (OH), Tommy Tuberville (AL), Eric Schmitt (MO), Marsha Blackburn (TN), Rick Scott (FL), Roger Marshall (KS), and Marco Rubio (FL)—are vowing to oppose all major legislation and Biden nominees led by the Democratic Senate following guilty verdicts against Trump in New York. 
  
• Rep. Sheila Jackson Lee (D-TX) announced she was diagnosed with pancreatic cancer and is undergoing treatment.

Friday, May 31^st

• The Federal Aviation Administration (FAA) announced the availability of $187 million in funding from the Bipartisan Infrastructure Law’s Airport Infrastructure Grants (AIG) program for airport improvements such as terminal expansions, that may create work for MCAA contractors. Funding recipients include: (1) the San Diego International Airport in California, which will receive $23.5 million for the construction of a new 1,210,000-square-foot terminal building; (2) the Pittsburgh International Airport in Pennsylvania, which will receive $20.5 million for the reconstruction of the existing terminal building to allow for more efficient movement of passengers and baggage, increased energy efficiencies and replacement of aging infrastructure; (3) the Gerald R. Ford International Airport in Lansing, Michigan, which will receive $4.5 million to expand the existing snow removal equipment building by an additional 37,317 square feet; and (4) the Cedar City Regional Airport in Utah, which will receive $2.8 million to expand the existing terminal by 3,650 square feet. The full list of recipients can be accessed here. 

• Sen. Joe Manchin (WV) officially filed to change his party affiliation from Democrat to “independent with no party affiliation.” In a statement, Manchin said partisanship on both sides of the political aisle jeopardized democracy and that he made the switch to “continue to fight for America’s sensible majority.” The party switch comes as Manchin has pushed back on rumors that he may run for governor of West Virginia or for the U.S. Senate again.

Thursday, May 30^th

• The Biden Administration released a new “Climate Capital Guidebook” to provide a comprehensive list of capital programs across the federal government that are available to climate-related start-ups, small- and medium-sized businesses, and their investors. The Guidebook includes financial and funding programs created and expanded by the Biden Administration, including those made possible by the Bipartisan Infrastructure Law, Inflation Reduction Act, and annual Congressional appropriations. The Guidebook inventories opportunities across the entire federal government, including the Department of Energy, the Department of Agriculture, the Small Business Administration, and the Export-Import Bank of the United States. Together, these programs comprise billions of dollars in grants, loans, loan guarantees, and other funding tools to spur the financing and deployment of new clean energy and climate projects—while also focusing on delivering cleaner air, good-paying jobs, and affordable clean energy to disadvantaged communities, energy communities, and other communities in need.

Wednesday, May 29^th 

• The White House announced several actions aimed at supporting the domestic nuclear energy industry, recognizing that “decarbonizing our power system, which accounts for a quarter of all the nation’s greenhouse gas emissions, represents a pivotal challenge requiring all the expertise and ingenuity our nation can deliver.” To help drive reactor deployment while ensuring ratepayers and project stakeholders are better protected, the Administration announced the creation of a Nuclear Power Project Management and Delivery working group that will draw on leading experts from across the nuclear and megaproject construction industry. The working group will engage a range of stakeholders, including labor organizations, project developers, engineering, procurement and construction firms, utilities, investors and others on how to best help further the Administration’s goal of delivering the efficient and cost-effective deployment of clean, reliable nuclear energy and ensuring that learnings translate to cost savings for future construction and deployment. Additionally, the U.S. Army will soon issue a Request for Information to inform the deployment of advanced reactors to power multiple Army sites in the United States. The White House notes that these efforts will help inform the regulatory and supply chain pathways that will enable additional deployments of advanced nuclear technology to provide clean, reliable energy for federal installations and other critical infrastructure. The Department of Energy released a new primer that highlights the expected enhanced safety of advanced nuclear reactors including passive core cooling capabilities and advanced fuel designs. Finally, the Idaho National Laboratory released a new advanced nuclear reactor capital cost reduction pathway tool that will help developers and stakeholders to assess cost drivers for new nuclear projects.

• The Equal Employment Opportunity Commission (EEOC) filed a lawsuit against 15 employers in 10 states for repeatedly failing to submit mandatory EEO-1 Component 1 data reports in prior years, including for reporting years 2021 and 2022. The 15 employers sued by the EEOC include companies in the construction, manufacturing, logistics, retail, restaurant, and janitorial services industries. Federal law requires employers with 100 or more employees to submit workforce data to the EEOC. The data collected includes workforce information by job category, sex, and race/ethnicity. The EEOC uses the workforce demographic data for a variety of purposes including enforcement, analytics and research, and employer self-assessment. A list of the employers sued for failure to file EEO-1 Component 1 data is available on the EEOC’s website here. Notice of these lawsuits comes as the 2023 EEO-1 Component 1 data collection is underway, with the 2023 reporting cycle having started on April 30, 2024.

Tuesday, May 28^th

• The Environmental Protection Agency (EPA) announced the selection of five recipients that will collectively receive $15 million in funding from the Inflation Reduction Act to reclaim and destroy hydrofluorocarbons. The funding ranges from $1,500,000 to $3,801,100 and will support efforts to effectively manage hydrofluorocarbons. The recipients of these grants are: (1) The University of Washington; (2) Texas A&M University; (3) Drexel University; (4) University of California-Riverside; and (5) the Air Conditioning, Heating and Refrigeration Technology Institute.

Around the Country 

Northeast 

• On June 4^th, Rep. Andy Kim (D-NJ) won the Democratic primary for New Jersey’s U.S. Senate seat and will face Republican Curtis Bashaw—who defeated a Trump-endorsed candidate in the GOP primary—as well as incumbent Sen. Bob Menendez (D-NJ), who appears determined to run for re-election as an independent.
  
• On June 4^th, Rep. Robert Menendez, Jr. (D-NJ) defeated Hoboken Mayor Ravi Bhalla in the Democratic primary for New Jersey’s 8^th Congressional District despite headwinds the younger Menendez faced from the ongoing corruption trial of his father, New Jersey Senator Robert Menendez (D).

West

• On June 5^th, environmental groups Earthjustice, GreenLatinos, 350 Colorado, and the Sierra Club took the first step to sue Suncor Energy, the owner of a refinery in Commerce City, Colorado, over concerns about high pollution and heat. The lawsuit accuses the refinery of exceeding pollution standards and limits over 1,000 times between 2019 and 2023.

• On May 30^th, the Interior Department announced $242 million in funding from the Bipartisan Infrastructure Law to bring clean, reliable drinking water to communities in the Western U.S. The selected projects include: (1) $8.5 million for the Verde Reservoirs Sediment Mitigation Project in Arizona to continue a feasibility study that will identify alternatives to address water storage lost due to sediment accumulation at Horseshoe Reservoir, manage future sediment accumulation in Horseshoe and Bartlett Reservoirs, and investigate the potential for operational flexibilities that could be created with increased storage capacity; (2) $75 million for the B.F. Sisk Dam Raise and Reservoir Expansion Project in California for the enhancement of off-stream storage capability; (3) $67.5 million for the Sites Reservoir Project in California for an off-stream storage project that will develop up to 1.5 million acre-feet of new water storage on the Sacramento River system located west of Maxwell, California; (4) $90 million for the Arkansas Valley Conduit Project in Colorado to continue construction of a safe, long-term water supply to an estimated 50,000 people in 39 rural communities along the Arkansas River; and (5) $1 million for the Cle Elum Pool Raise Project in Washington State to continue to increase the reservoir’s capacity an additional 14,600 acre-feet to be managed for instream flows for fish.

• On May 29^th, the Interior Department announced a $179 million investment from the Bipartisan Infrastructure Law’sLarge-Scale Water Recycling Program for four projects in California and Utah to help communities in those states create new sources of water to support water reliability. The projects receiving funding include: (1) $99 million for the Metropolitan Water District of Southern California for large-scale water recycling planning and design for the Pure Water Southern California facility; (2) $30 million for the city of Buenaventura’s Ventura Water Pure Program; (3) $30 million for the Los Angeles Groundwater Replenishment Project; and (4) $20.5 million for the Washington County, Utah Water Conservancy District Regional Reuse System. 

Northwest 

• On June 4^th, the General Services Administration announced the approval of $24 million in funding from the President’s Inflation Reduction Act for improvements to the Mike Mansfield Courthouse in Butte, Montana, which includes $8 million for low-embodied carbon construction materials and $16 million for emerging and sustainable technologies that could include geothermal or air-source heat pumps. 

• On June 4^th, former Navy Seal Tim Sheehy won the Republican nomination for U.S. Senate in Montana and will face incumbent Sen. Jon Tester (D) in November.

Southeast

• On May 30^th, the Department of the Interior (DOI) announced $30 million in funding from the Bipartisan Infrastructure Law for Louisiana and Arkansas to clean up orphaned oil and gas well sites across the two states. Louisiana will receive $25 million in funding to plug and reclaim approximately 540 orphaned oil and gas wells, while Arkansas will receive $5.59 million to plug and reclaim approximately 274 orphaned oil and gas well sites. As part of these awards, the two states will detect and measure methane emissions from orphaned oil and gas wells, screen for groundwater and surface water impacts, and seek to prioritize cleaning up wells near overburdened and disadvantaged communities.

Southwest

• On June 6^th, Reuters reported that the startup of Golden Pass LNG, the $11 billion liquefied natural gas project in Texas from QatarEnergy and ExxonMobil, has been delayed by at least six months due to construction turmoil. The delay comes after lead contractor Zachry Holdings filed for bankruptcy and quit the project, which is 75% complete. 

• On June 4^th, POLITICO reported that the Permian Basin in Texas, the nation’s most prolific oil-producing region, is now home to bitcoin miners and digital data centers—forcing more electricity demand onto a Texas power grid that is increasingly plagued by blackouts.

• On May 31^st, the White House announced “presidential permits” authorizing: (1) Maverick County, TX to construct, maintain, and operate a vehicular, pedestrian, and rail crossing located on the border with Mexico in Eagle Pass, TX; (2) Laredo, TX to expand and continue to maintain and operate a vehicular and pedestrian crossing at the World Trade Bridge Land Port of Entry; and (3) Cameron County, TX to construct, maintain, and operate a vehicular and pedestrian crossing located on the border with Mexico in Brownsville.

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Friday, May 24, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

MCAA Issues and Interests

Project Labor Agreements

MCAA Successfully Advocates for Defeat of Gaetz Anti-PLA Amendment During NDAA Markup

As the MCAA policy team continues its advocacy in support of project labor agreements, we were engaged this week in advocating to defeat a last-second amendment offered by Rep. Matt Gaetz (R-FL) during Wednesday’s markup of the fiscal year 2025 National Defense Authorization Act (NDAA). Gaetz’s amendment would have barred application of President Biden’s MCAA-supported Executive Order on Project Labor Agreements to Department of Defense construction projects. In the Armed Services Committee, Amendments do not have to be pre-filed like they must be in other committees. Fearing there could be surprise amendments on MCAA priorities like Davis-Bacon and PLAs during the House NDAA mark-up (as we have seen in past years) we monitored the Committee action. Within minutes of Rep. Gaetz offering the amendment,  the policy team reached out to Republican lawmakers on the House Armed Services Committee to make them aware of the MCAA’s strong opposition to the Gaetz amendment. Given the Republican majority on the Committee we knew we had to get some Republicans on our side to defeat the amendment. This lobbying effort proved successful when the Committee voted 26-31 to defeat the amendment after all Democrats and four moderate Republicans we targeted—Reps. Mike Turner (OH), Don Bacon (NE), Nick LaLota (NY), and Brad Finstad (MN)—voted in opposition. We were also pleased to see that MCAA longtime allies, Reps. George Norcross (NJ) and Andy Kim (NJ) rose in real time to argue against the amendment during the Committee proceedings. This gave us confidence that Committee Democrats would be unified so we could focus on the moderate Republicans the few hours we have between the amendment being offered and the vote on it.

Davis-Bacon Federal Prevailing Wage

This week, we continued our outreach to ensure opposition to the Congressional Review Act resolution to rescind the MCAA-supported Final Davis-Bacon rule.  We remain confident that we can defeat this Resolution if it is brought to a vote.

Registered Apprenticeship

This week we used some new data as an excuse to make another foray on our concerns about the impact aspects of DOL’s proposed apprenticeship rule could have on our high-quality apprenticeship training programs.  Specifically, we used the fact that this week Pew Research Center and Gallup published new surveys revealing that Americans are losing faith in the value of a college degree. According to the surveys, 29% of Americans say that college is not worth the cost and 49% say having a four-year college degree is less important for landing a high-paying job today than it was 20 years ago. We explained that the willingness of more young people to consider career tracks that do not involve college makes it more important than ever to maintain the quality and integrity of our programs. And then we reviewed how they are threatened by aspects of the DOL rulemaking. It was a good paradigm shift that gave us a renewed opportunity to hit this issue again. 

Independent Contractors and Misclassification of Workers

We continued our lobbying against the Congressional Review Act (CRA) resolution to nullify the MCAA-supported independent contractor rule. As we meet with lawmakers and staff we are also keeping an eye on the handful of lawsuits challenging the rule that are ongoing. We expect there could be a ruling in one or more of them before this summer. 

Pension Reform

As the MCAA policy team continues discussions with the House Education and the Workforce Committee regarding MCAA’s priority issues, including pension reform, we wanted to highlight that the acrimony on the committee around pensions reached a new level Wednesday. This resulted from House Education and the Workforce Committee Chair Virginia Foxx (R-NC) and Health, Employment, Labor, and Pensions Subcommittee Chair Bob Good (R-VA) ratcheting up their war on unions by sending letters to Acting Labor Secretary Su, NABTU President Sean McGarvey, National Electrical Benefit Fund (NEBF) Investments Executive Director Kevin McCormack, NEBF trustees Lonnie R. Stephenson, David Long, Kenneth W. Cooper and Dennis F. Quebe, AFL-CIO President Liz Shuler, IAFF General President Edward Kelly, and NEA President Rebecca S. Pringle attacking them and seeking information about an April 23, 2024 White House meeting launching an initiative encouraging pension funds to leverage their investments to advance fair pay and basic labor standards. 

The letters argue that “diverting pension fund assets to promote collective bargaining is contrary to statutory protections for pension funds subject to ERISA” and request documents and communications related to preparation for and participation in the April 23 meeting. It also requests as all legal opinions or memoranda used to justify the Labor Department’s position that the use of pension fund assets subject to ERISA to “promote labor union interests” is lawful.  

We are relieved that no MCAA funds were implicated in this foray, but we do need to watch what develops from it.

Reforms to Federal Contracting Process

Engaging on Senate Bill to Reauthorize Water Resources Development Act

As noted above, we made progress this week pressing for reauthorization of the 2024 Water Resources Development Act (WRDA). We also had activity on MCAA’s legacy work in connection with government contracting reform. Ahead of Wednesday’s markup in the Senate Environment and Public Works (EPW) Committee of the WRDA reauthorization bill we were informed that neither the Chair or Ranking Member would support our effort to attach S. 2928, the “Water Infrastructure Subcontractor and Taxpayer Protection Act,” as an amendment. This bill would establish payment and performance bonding requirements for projects funded under the Water Infrastructure Finance and Innovation Act (WIFIA). It is something that MCAA supported in the past through the alliance John McNerney started years ago with the coalition led by the Surety & Fidelity Association of America.

As we discussed during the GAC meeting a couple of weeks ago, we’ve been working with the larger coalition to have the text of S. 2928 included in the WRDA Reauthorization. Despite the coalition’s efforts and those of the primary sponsors (Sens. Mark Kelly (D-AZ) and Kevin Cramer (R-ND)) with Senate EPW Chair Tom Carper (D-DE) and Ranking Member Shelley Moore Capito (R-WV), S. 2928 was left out of the bipartisan base text that Carper and Capito released late last Friday night. Last weekend and early this week, the policy team did outreach to Sen. Kelly (D-AZ) (who sits on EPW) to request that he put the bill forward as an amendment to the WRDA text. While Kelly was willing to do so, he received pushback from both the EPW Committee’s majority and minority staffs, who said that any amendment that wasn’t strictly related to the Army Corps of Engineers’ WRDA jurisdiction would be opposed by Carper and Capito during the markup. S. 2928 certainly applies beyond these parameters set by the Chair and Ranking Member for WRDA amendments, and Kelly and Cramer declined to press the issue. The agreement between Carper and Capito on amendments played out during the markup, as the only real amendment adopted was to rename the bill after Chair Carper who is retiring at the end of the year, and the bill passed Committee with a 19-0 vote.

While S. 2928 was left out of WRDA as it heads to the Senate floor, the silver lining is that EPW Committee staff tell us they would devote time to help advance S. 2928 if Kelly and Cramer are willing to send up a letter making a special request for the Committee to process on the bill as a standalone measure. That letter is now being put together and we’ll be sure to provide an update on next steps. There’s also discussion about seeing if there is a pathway to include the House companion bill (H.R. 1740) in the House version of WRDA scheduled to be marked up by the House Transportation and Infrastructure Committee sometime in June as primary bill sponsor Rep. Mike Bost (R-IL) sits on that Committee.

Biden Attempts to Lock In Democrat Majority at NLRB Post-2024 Election

Yesterday, President Joe Biden renominated National Labor Relations Board (NLRB) Chair Lauren McFerran for a new five-year term that would end in 2029 and packaged her nomination with Republican Joshua Ditelberg to fill a term that ends in 2027. If the Senate confirms the nomination package, it will ensure Democrats retain a majority on the NLRB through the four years covering most of the term of whoever is elected President in November. Ditelberg is a partner in Seyfarth Shaw’s Chicago office. His practice focuses on labor and employment matters arising from corporate mergers, acquisitions, and divestitures; subcontracting and outsourcing; workforce reductions; facility closings, relocations, and consolidations; corporate reorganizations; bankruptcy; and Employee Stock Ownership Plans (ESOPs). He also co-chairs Seyfarth’s Workplace Restructuring and Transactions group. 

We are skeptical this package will be confirmed.  Within hours of the nominations being announced, some of the big business groups made known to Senate Republican leaders their view that they oppose locking in a majority of Biden-nominated NLRB members well into the next Presidential Administration. They do not want to foreclose the prospect of getting a more sympathetic majority if Trump should win and will press Republicans to filibuster this package if it gets through Committee and leader Schumer brings it to the Senate floor.

Water Infrastructure – EPA Issues Alert Regarding Cyber Threats to Drinking Water Systems

We wanted to be sure you saw that on Monday, the Environmental Protection Agency (EPA) issued an enforcement alert outlining urgent cybersecurity threats and vulnerabilities to community drinking water systems and the steps these systems need to take to comply with the Safe Drinking Water Act (SDWA). The alert is part of a government-wide effort, led by the National Security Agency and Cybersecurity and Infrastructure Security Agency, to reduce infrastructure and cybersecurity vulnerabilities. 

This alert follows a March meeting that that U.S National Security Advisor, Jake Sullivan, and EPA Administrator Michael Regan had with state officials about cyberattacks that foreign adversaries and criminal hacking groups are perpetrating against U.S. water infrastructure that have the potential to disrupt the critical lifeline of clean and safe drinking water, as well as impose significant costs on affected communities. Recent EPA inspections revealed that over 70% of water systems do not fully comply with requirements in the SDWA and that some of those systems have critical cybersecurity vulnerabilities, such as default passwords that have not been updated and single logins that can be easily compromised.

The EPA states that it will increase the number of planned inspections and will take civil and criminal enforcement actions to ensure that water systems are meeting their requirements to regularly assess resilience vulnerabilities and develop emergency response plans.

Decarbonization

IRS Opens Portal for Second Funding Round of Qualified Advanced Energy Credit Program

On Wednesday, the Internal Revenue Service announced that the Biden Energy Department’s Qualified Advanced Energy Credit Program Applicant Portal (Section 48C Portal) is now open for applicants to register for Round 2 funding allocations. Qualified Advanced Energy Projects are those that: (1) re-equip, expand, or establish an industrial or manufacturing facility for the production or recycling of specified advanced energy products such as fuel cells, microturbines, or energy storage systems and components; (2) re-equip any industrial or manufacturing facility with equipment designed to reduce greenhouse gas emissions by at least 20 percent; or (3) re-equip, expand or establish an industrial facility for the processing, refining or recycling of critical materials. Per this notice, the second round of funding brings the 48C program to $6 billion, with approximately $2.5 billion going to projects in designated 48C “energy communities” (a map of these communities is available here). Interested manufacturers, including small-, medium-, and large-sized manufacturers, must submit concept papers by 5:00 pm June 21, 2024 using the 48C Portal here. 

Other Interesting Things Since Our Last Report 

Thursday, May 24^th

• Sen. Rick Scott (R-FL) announced a bid to be the next Senate GOP leader, putting him in a three-way secret ballot race with Senate Minority Whip John Thune (R-SD) and Sen. John Cornyn (R-TX). 

• The Federal Trade Commission (FTC) issued a joint request for information (RFI) with the Justice Department’s Antitrust Division seeking information from the public on serial acquisitions and roll-up strategies (i.e., corporate consolidation by buying smaller firms in the same or similar sectors or industries) in all sectors and industries, including but not limited to construction, housing, agriculture, professional service markets, and distribution businesses. The FTC and the Justice Department state in the RFI that “[o]nce these serial acquisition strategies are identified, the Agencies are committed to using the full scope of their statutory authorities to protect free and fair competition and prevent undue consolidation.” Per the RFI, the FTC is seeking comments from all sectors of the economy to provide input on a series of questions that fall under the general topics of: (1) examples of serial acquisitions; (2) the effects of serial acquisitions; (3) serial acquisition business practices; (4) the claimed business objectives of the serial acquisition strategy; and (5) ownership and control in serial acquisitions. Text of the RFI is available here. 

• The Energy Department announced more than $25 million in funding from the Bipartisan Infrastructure Law through the Department’s Weatherization Assistance Program’s Enhance and Innovation Grant Program for 13 projects in New Hampshire, Oregon, Louisiana, Florida, Washington State, Michigan, New Mexico, Maine, Pennsylvania, New Jersey, Illinois, Maryland, and Georgia that collaborate with community partners to perform innovative and comprehensive energy-saving repairs and upgrades to make low-income homes more climate resilient and lower energy costs for families. The selected projects span three areas: (1) workforce development; (2) multifamily housing; and (3) single-family and manufactured housing.

• The Associated Builders and Contractors, the National Retail Federation, the National Federation of Independent Business, the International Franchise Association, and other business groups filed a lawsuit challenging the Department of Labor’s (DOL) final overtime rule in the U.S. District Court for the Eastern District of Texas. The employer groups assert that their members will have to “reclassify a massive amount of employees” under the revised new salary threshold and assert that the final rule “increases the minimum salary level threshold for exemption far beyond a level which the DOL is permitted to adopt” while also including “an unlawful automatic indexing provision that will further increase the salary threshold without the notice-and-comment rulemaking required by the Administrative Procedure Act.”

• The Senate voted 43-50 to reject the bipartisan immigration/border security bill, marking the second time the legislation has been blocked in a matter of months as Democrats look to shore up their record on immigration and give President Biden and incumbent Senators a boost in the process. Following the vote, President Biden issued a statement that the vote illustrated that Congressional Republicans “do not care about securing the border or fixing America’s broken immigration system” and that they “put partisan politics ahead of our country’s national security.” Senate Minority Leader Mitch McConnell (R-KY) responded saying, “The American people aren’t fooled. They know that the President’s summary reversal of commonsense border authorities is what invited this crisis. And they know the solution is not cynical Senate theater. The solution is a President who’s willing to exercise his authority, to use the tools he already has at his disposal, and to start cleaning up this mess. If Senate Democrats wanted to start fixing this crisis tomorrow, they would be urging the President to do exactly that.”  The vote comes as Senate Majority Leader Chuck Schumer (D-NY) is beginning to shift into campaign mode as he schedules a series of messaging votes in the Senate on hot-button issues like border security and access to contraception.

Wednesday, May 23^rd

• House Majority Leader Steve Scalise (R-LA) said that if former President Trump wins the presidency and Republicans win the Senate and keep the House, they will use the budget reconciliation process to retain the 2017 Tax Cuts and Jobs Act and to scale back Democratic-passed regulations on energy and other industries. Scalise said Republicans could also use reconciliation to shore up security at the U.S.-Mexico border by funding more border security agents, additional security technology, and the completion of a border wall. 

• The Department of Labor (DOL) announced a settlement highlighting one of the first federal court cases outlining the relationship between the First Amendment and the anti-retaliation provision of the Fair Labor Standards Act. The case establishes that the First Amendment does not protect Bevins & Sons Inc., a Milton, Vermont-based excavation contractor, posting disparaging comments on Facebook about a worker after the company illegally terminated him for complaining about unpaid wages and saying he would report the unpaid wages to the “labor board.” The employee recovered $25,000 in punitive damages for the company’s retaliatory acts and $3,310 in wages and damages. The settlement also resulted in 17 other employees being paid $17,356 in overtime wages and damages.

Tuesday, May 22^nd

• The Environmental Protection Agency (EPA) announced $25 million in Small, Underserved, and Disadvantaged Communities (SUDC) grant funding for states and territories to invest in clean and safe drinking water by upgrading infrastructure to comply with the Safe Drinking Water Act, reduce exposure to per- and poly-fluoroalkyl substances (PFAS), remove sources of lead, and address additional local drinking water challenges. To facilitate this work, the EPA also announced its selection of training and technical assistance providers that were awarded $30.7 million. These funds will be used to help water systems develop technical, financial, and managerial capacity and to assist private well owners in small and rural communities with improving water quality through actions such as testing for PFAS contamination.

• The Environmental Protection Agency (EPA) announced $14 million in funding through the Brownfields Job Training Programs for 20 grants of up to $500,000 each for non-profit and other eligible organizations to recruit, train, and retain a local workforce in environmental jobs, with priority given to unemployed and underemployed workers, including low-income individuals living in communities disproportionately impacted by solid and hazardous waste. The EPA will hold an outreach webinar here through Zoom on June 6, 2024 from 1:00 pm to 3:30 pm ET to explain the grant guidelines and to address commonly asked questions about this grant program.

Monday, May 21^st

• The Environmental Protection Agency (EPA) announced $300 million from the President’s Bipartisan Infrastructure Law for Multipurpose, Assessment, and Cleanup (MAC) projects in 178 communities, 31 Revolving Loan Fund (RLF) grant programs, and RLF technical assistance to help states, local governments, and non-profit organizations to clean up polluted brownfield sites across the country. This funding allows the MAC grants’ maximum award amounts to increase from $500,000 to a new maximum of $5 million per award. A full list of grant recipients selected for fiscal year 2024 funding is available here and additional resources related to the grant funding, including grant fact sheets and a map with locations receiving funding, is available here. 
  
• Pro-Israel super PAC Democratic Majority for Israel issued its first endorsements for three senators in battleground states—Sens. Bob Casey (D-PA), Jacky Rosen (D-NV), and Jon Tester (D-MT).

• The Democratic Congressional Campaign Committee (DCCC) announced it outraised the National Republican Congressional Committee (NRCC) in April with a record $12.4 million compared to $10 million for the NRCC. 
  

Around the Country 

Northeast 

• On May 23^rd, Philadelphia Congressman Dwight Evans (D-PA) said that he is in a rehabilitation facility recovering from a minor stroke and plans to return to voting in Washington, D.C. in about six weeks. 

• On May 21^st, the Department of Labor (DOL) announced that it secured $144,350 in overtime back wages and $15,000 in punitive damages from P&B Heating and Air Conditioning of West Babylon, New York for Fair Labor Standards Act violations and for retaliating against employees and threatening them with termination if they did not kick back the wage payments. DOL also obtained a temporary restraining order to forbid P&B Heating and Air Conditioning from retaliating against employees. 

• On May 21^st, Maryland GOP Senate candidate Larry Hogan released his first ad of the general election focused on abortion rights as he attempts to neutralize Democratic attacks on his abortion-rights record. 

West

• On May 22^nd, the Interior Department (DOI) announced $81 million in funding from the President’s Inflation Reduction Act for water conservation and drought resilience in California’s San Joaquin Valley to fund river restoration programs. Projects funded with this money include the creation of a “drought pool” providing water storage during drought seasons and establishing additional aquifer storage, work on recharge and recovery wells, improvements to existing surface storage, and expansion of conveyance capacity.

• On May 22^nd, the Environmental Protection Agency (EPA) announced over $225 million in funding from the President’s Bipartisan Infrastructure Law and annual appropriations for water infrastructure projects to improve access to safe and reliable drinking water and wastewater services for American Indian Tribes and Alaska Native Villages. The selected projects include: (1) the planning, design, and construction of wastewater collection and treatment systems; (2) lead service line replacement projects; and (3) training and technical assistance for sustainable water systems. 

• On May 22^nd, the Congressional Leadership Fund, the GOP’s main House super PAC, is earmarking $30 million for an advertising barrage in California to protect vulnerable incumbents like Reps. John Duarte, Mike Garcia, and David Valadao.

• On May 21^st, California Assemblymember Vince Fong (R) won the special election to fill former Speaker Kevin McCarty’s (R-CA) seat in California’s 20^th Congressional District.

• On May 21^st, Oregon state Rep. Maxine Dexter (D) defeated progressive Dr. Susheela Jayapal, Rep. Pramila Jayapal’s (D-WA) sister, in the Democratic primary for Oregon’s 3^rd Congressional District. This comes as Oregon state Rep. Janelle Bynum (D) defeated progressive Jamie McLeod-Skinner in the Democratic primary for Oregon’s 5^th Congressional District and will face Rep. Lori Chavez-DeRemer (R) in November.

Midwest 

• On May 22^nd, a Michigan farmworker became the second human to be infected with the current H5N1 bird flu virus. The farmworker had mild symptoms and has since recovered, Michigan health officials said. This comes as the Centers for Disease Control and Prevention (CDC) issued a readout of its call with state public health partners on avian influenza monitoring. The CDC recommends that influenza systems continue operating at enhanced levels during the summer and to increase the number of positive virus samples submitted for testing to help detect even rare cases of human avian influenza virus infection in the community. 

• On May 18^th, the Minnesota Republican Party unexpectedly endorsed Royce White to challenge Sen. Amy Klobuchar (D-MN) in the Minnesota U.S. Senate race. White is a former NBA player-turned-activist who is supported by Trump. He was a first-round NBA pick in 2012, but his career was cut short by “debilitating anxiety that included a fear of flying” and he ultimately played in just three NBA games for the Sacramento Kings. In 2022, White failed in his bid for the Republican nomination to run against Rep. Ilhan Omar (D) for Minnesota’s 5^thCongressional District.

Southeast

• On May 23^rd, U.S. Department of Commerce announced that it has committed $75 million from the CHIPS and Science Act to South Korean company Absolics to help pay for a factory in Covington, Georgia that will make glass components for computer chips. As part of the announcement, Absolics also said that it will spend more than $300 million on the first phase of the factory for which construction is already underway. 

• On May 23^rd, the U.S. Supreme Court preserved South Carolina’s Republican held 1^st Congressional District, rejecting a lower court ruling that said the district discriminated against Black voters. Notably, in a concurring opinion, Supreme Court Justice Clarence Thomas attacked the Brown v. Board of Education ruling, suggesting that the Supreme Court overreached its authority in the landmark decision that banned separating schoolchildren by race.

Southwest

• On May 23^rd, the Environmental Protection Agency (EPA) announced that the New Mexico Environment Department will receive $18.9 million in funding from the Bipartisan Infrastructure Law to assess the extent of emerging contaminants such as per- and poly-fluoroalkyl substances (PFAS) in public water systems and disadvantaged communities and implement measures to protect communities from these chemicals. 

• On May 23^rd, a new poll found that Kari Lake’s lead in the Arizona Republican Senate primary against Mark Lamb is narrowing, with Lake garnering 46% support compared to Lamb who received 21% support. The figure is a drop from a similar poll in February, which found Lake with 54 percent backing from Republican voters.

• On May 22^nd, the Environmental Protection Agency (EPA) announced the filing of a felony criminal charge and related civil complaint and consent decree under the Clean Air Act against TPC Group, LLC, a Texas-based petrochemical company, which has agreed to pay over $30 million in criminal fines and civil penalties and spend approximately $80 million to improve its risk management program and improve safety issues at TPC Group’s Port Neches and Houston, Texas facilities after two explosions at their Port Neches facility prompted evacuations of thousands of residents from the City of Port Neches and surrounding areas, released more than 11 million pounds of extremely hazardous chemicals, and caused more than $130 million in offsite property damage.