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, January 13, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:
Congress
Speaker Mike Johnson (R-LA) Re-Elected Speaker on First Ballot
On January 3rd, Speaker Mike Johnson (R-LA) was re-elected as House Speaker, securing enough support to remain Speaker on the first ballot. During the vote, Reps. Ralph Norman (R-SC) and Keith Self (R-TX) originally voted against Johnson, but ultimately flipped their votes to him before the vote closed after reportedly receiving phone calls from President-elect Trump. Rep. Thomas Massie (R-KY) was the only Republican House member to vote against Johnson. Following the vote, Johnson vowed to tackle the size of government, lead House Republicans in holding “the bureaucracy accountable” and move the United States “to a more sustainable fiscal trajectory.” Johnson also committed to set up a “working group comprised of independent experts” to work with President-elect Trump’s Department of Government Efficiency “to implement recommended government and spending reforms to protect the American taxpayer.”
Senate Finalizes Committee Assignments
On December 20th, Senate Majority Leader John Thune (R-SD) unveiled the Republican Conference’s committee assignments for the 119th Congress. Sen. Bill Cassidy (R-LA) will be the new chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee and will be joined by new Committee members Sens. Tim Scott (R-SC), Josh Hawley (R-MO), Jim Banks (R-IN), Mike Crapo (R-ID), and Marsha Blackburn (R-TN). Sen. Mike Crapo (R-ID) will take over as chair of the Senate Finance Committee and will be joined by new Committee member Sen. Roger Marshall (R-KS). Sen. Rand Paul (R-KY) will serve as the new chair of the Senate Homeland Security and Governmental Affairs Committee (HSGAC) and will be joined by new Committee members Sens. Joni Ernst (R-IA), Bernie Moreno (R-OH), and Tim Scott (R-SC). Thune also announced several new Chairs of committees that are important to MCAA, including: (1) Sen. Lindsey Graham as chair of the Senate Budget Committee; (2) Sen. Mike Lee (R-UT) as chair of the Senate Energy Committee; and (3) Sen. Shelley Moore Capito (R-WV) as Chair of the Senate Environment and Public Works Committee. Sen. Susan Collins (R-ME) will also serve as chair of the Senate Appropriations Committee and will be joined by new Committee members Sens. Markwayne Mullin (R-OK) and Mike Rounds (R-SD).
On January 2nd, Senate Democratic Leader Chuck Schumer (D-NY) announced the new Senate Democratic Committee Assignments for the 119th Congress. Newly elected Sen. Andy Kim (D-NJ) will serve on the Senate HELP Committee, Senate Banking Committee, Senate Commerce Committee, and Senate HSGAC. Sen. Bernie Sanders (I-VT) will remain top Democrat on the Senate HELP Committee and, in addition to Senator Kim, will be joined by new Committee member Sen. Lisa Blunt Rochester (D-DE). Sen. Ron Wyden (D-OR) will also remain the top Democrat on the Senate Finance Committee and will be joined by new Committee members Sens. Raphael Warnock (D-GA) and Bernie Sanders (I-VT). Sen. Gary Peters (D-MI) will serve as Homeland Security & Governmental Affairs Committee (HSGAC) Ranking Member and be joined by new Committee members Sens. Andy Kim (D-NJ), Ruben Gallego (D-AZ), and Elissa Slotkin (D-MI). Schumer also announced changes in the Ranking Democrats for several Senate committees of interest to MCAA, including: (1) Sen. Jeff Merkley (D-OR) as Ranking Member on Senate Budget; (2) Sen. Martin Heinrich (D-NM) as Ranking Member on Senate Energy; and (3) Sen. Sheldon Whitehouse (D-RI) as Ranking Member on Senate Environment and Public Works. Sen. Patty Murray (D-WA) remains the top Democrat on the Senate Appropriations Committee and will be joined by new Committee members Sens. Kirsten Gillibrand (D-NY) and Jon Ossoff (D-GA).
Senate Begins Confirmation Hearings for Trump Cabinet Nominees This Week
The Senate is expected to hold several confirmation hearings for Trump nominees this week, including: (1) Trump Interior Secretary nominee former North Dakota Gov. Doug Burgum before the Senate Energy and Natural Resources Committee on January 14, 2025; (2) Trump Energy Secretary nominee Liberty Energy CEO Chris Wright before the Senate Energy and Natural Resources Committee on January 15, 2025; (3) Trump Transportation Secretary nominee former Rep. Sean Duffy (R-WI), before the Senate Commerce Committee on January 15, 2025; (4) Trump Homeland Security Secretary nominee South Dakota Gov. Kristi Noem (R) before the Senate Homeland Security and Government Affairs Committee (HSGAC) on January 15, 2025; (5) Trump Treasury Secretary nominee hedge fund manager Scott Bessent before the Senate Finance Committee on January 16, 2025; and (6) Trump Attorney General nominee former Florida Attorney General Pam Bondi before the Senate Judiciary Committee on January 15-16, 2025.
House Democrats Fill Six Open Spots on House Energy and Commerce Committee
Last Tuesday, the House Democratic Steering and Policy Committee filled six open slots on the House Energy and Commerce Committee, which has jurisdiction over many issues of interest to MCAA. The Steering Committee selected: (1) Rep. Alexandria Ocasio-Cortez (D-NY); (2) Rep. Kevin Mullen (D-CA); (3) Rep. Troy Carter (D-LA); (4) Rep. Jennifer McClellan (D-VA); (5) Rep. Greg Landsman (D-OH); and (6) Rep. Jake Auchincloss (D-MA).
House Votes to Finalize Rules Package for the 119th Congress Making it Harder to Remove the Speaker
On January 3rd, the House adopted a new rules package for the 119th Congress by a vote of 215-209. It includes several notable changes to the rules of the House. Most notably, it raises the threshold to introduce a motion to vacate that forces a vote on removing the Speaker of the House so that instead of any single House member being able to force such a vote, such a motion will have to be introduced by a Republican and be joined by eight additional Republican co-sponsors.
The rules package also directs the House to consider a dozen to-be-introduced bills, including:
- A bill reversing President Biden’s moratorium on hydraulic fracturing.
- A bill requiring the Secretary of Homeland Security to take into custody aliens who have been charged in the United States with theft and certain other crimes and empowering state Attorneys General to sue when they believe federal authorities are not properly enforcing or applying immigration law. (This bill, entitled the Laken Riley Act, passed the House last week by a vote of 264-159, with 48 Democrats joining all Republicans in support. The Senate last Thursday voted 84-9 to move to debate and potentially amend the bill ahead of a vote on final passage sometime this week.)
To appease budget hawks, the new rules also require the Director of the Congressional Budget Office, “to the extent practicable,” to prepare an estimate of whether a bill or joint resolution reported by a committee (other than the Committee on Appropriations), or amendment or conference report, would cause, relative to current law, a net increase in direct spending in excess of $2.5 billion in any of the four consecutive ten fiscal year periods beginning with the first fiscal year that is ten fiscal years after the current fiscal year. Moreover, a point of order may be raised to prevent consideration of any bill or joint resolution reported by a committee, or amendment thereto or conference report thereon, that would cause such a net increase in direct spending. Finally, the new rules also authorize subpoenas of Attorney General Merrick Garland and other Justice Department officials as part of House Republicans’ investigations into the Biden family’s finances.
MCAA Issues and Interests
Project Labor Agreements
ABC Leads 22 Organizationsxz∂√ƒ in Letter to President-elect Trump Urging Him to Rescind MCAA-Supported Executive Order on PLAs
Last Thursday, the Associated Builders and Contractors (ABC) led 22 organizations—including the U.S. Chamber of Commerce and the Construction Industry Round Table—in a letter to President-elect Donald Trump urging him to repeal President Biden’s MCAA-supported Executive Order and related implementation rules creating a presumption that project labor agreements (PLAs) will be used on large-scale federal construction projects valued at $35 million or more. Notably, the Associated General Contractors of America did not join ABC’s letter. The letter argues that “PLAs exacerbate the construction industry’s estimated skilled labor shortage of more than half a million workers by unfairly discouraging competition from quality non-union contractors and their employees, who comprise 89.3% of the private U.S. construction workforce.” The ABC-led letter calls on President-elect Trump to undo President Biden’s “rampant special-interest favoritism” by issuing a new executive order “that restricts government-mandated PLAs and to restore robust fair and open competition on federal and federally assisted construction projects.” MCAA previously filed comments on the rulemaking to implement President Biden’s PLA Executive Order and contributed to the Construction Employers of America’s (CEA) comments supporting the Executive Order in October 2022. The policy team is currently taking the lead on a group letter for the Construction Employers of America to President-elect Trump rebutting ABC’s letter and reminding him that he declined ABC’s pleas to attack PLAs during his first term and has used PLAs on some of the most recognizable properties he developed.
Registered Apprenticeship
Biden DOL Withdraws Rulemaking on “National Apprenticeship System Enhancements”
On December 27th, the Department of Labor’s Employment and Training Administration (ETA) published the withdrawal of its rulemaking on “National Apprenticeship System Enhancements.” The withdrawal of this rulemaking is the culmination of a joint effort between the MCAA and the UA dating back to our organizations’ joint comments opposing key elements of the rule that were submitted to the ETA in March 2024.
Independent Contractors and Misclassification of Workers
IRS Guidance Regarding Worker Classification Issues Under Section 530 of the Revenue Act of 1978
As the MCAA policy team and its CEA allies continue engaging Congress and various federal agencies regarding the misclassification of construction workers as independent contractors, we wanted to be sure you were aware of several relevant developments last week at the Internal Revenue Service (IRS) below.
Last Wednesday, the IRS issued Revenue Procedure 2025-10 modifying and superseding its Revenue Ruling and guidance previously issued regarding the application of Section 530 of the Revenue Act of 1978. Section 530 relieves employers from paying large employment tax assessments when the IRS determines that they misclassified workers as independent contractors instead of employees. Revenue Procedure 2025-10 discusses facts that may vitiate the “good faith” of an employer’s assertion under Section 530 that it deemed a worker to be a non-employee such that it can rely on Section 530. Such facts include: (1) claiming income tax deductions, or treating payments made to or on behalf of the workers as excludable from income under provisions of the tax code applicable only to employees; (2) claiming employer credits, such as credits for paid sick and/or family leave under laws like the Families First Coronavirus Response Act, the Employee Retention Credit, or any other tax credits specified in future guidance that are calculated with respect to wages or compensation paid to an employee; (3) treating the individual as an employee for purposes of collectively bargained agreements entered into by the taxpayer; (4) permitting participation of the individual in any qualified pension, profit sharing, or stock bonus plan; (5) permitting participation of the individual in any nonqualified deferred compensation plan if such participation is limited to employees of the taxpayer; and (6) providing state unemployment insurance or worker’s compensation insurance coverage for such individual if the requirements for obtaining such state unemployment or worker’s compensation insurance is that coverage is limited to individuals performing services for the taxpayer as common law employees. The Revenue Procedure goes on to clarify several other key elements of the Section 530 Safe Harbor that seem likely to curtail the ability of employers to use it.
Separately, the IRS also issued Revenue Ruling 2025-3 further clarifying the application of Section 530 of the Revenue Act of 1978 by illustrating the application of the Section 530 Safe Harbor to five common workplace compensation scenarios. The IRS also reminds the public that Section 530 relief does not extend to individual workers, who remain liable for their personal income taxes and the employee share of FICA taxes that may result from the reclassification of a worker.
On a related legislative note, last Wednesday, the IRS National Taxpayer Advocate Erin Collins also released her 2024 Annual Report to Congress, known as “The Purple Book.” Among the 69 legislative recommendations was a recommendation to amend current law to encourage and authorize independent contractors and service recipients to enter into voluntary withholding agreements (recommendation #63). Recognizing that some businesses may be reluctant to withhold due to concerns that the IRS may cite the existence of withholding agreements to challenge underlying worker classification arrangements, Collins suggested Congress address these fears by amending the law to give both businesses and independent contractors reassurance “that entering into a voluntary withholding agreement will not affect worker classification.”
Decarbonization
Treasury Releases Final Rules for Clean Hydrogen Production Credit
Last Friday, following a lobbying effort by the MCAA policy team over the last few months, the Treasury Department released final rules for the section 45V Clean Hydrogen Production Tax Credit established by the Inflation Reduction Act. In general terms, the final rules clarify how producers of hydrogen, including those using electricity from various sources, natural gas with carbon capture, renewable natural gas (RNG), and coal mine methane can determine eligibility for the credit. To qualify for the full credit, projects must also meet the MCAA-supported prevailing wage and apprenticeship standards. The rules enable pathways for hydrogen produced using both electricity and methane, providing investment certainty while ensuring that clean hydrogen production meets the law’s lifecycle emissions standards.
On a related note, last Tuesday, the Energy Department (DOE) announced that its Hydrogen and Fuel Cell Technologies Office (HFTO) is seeking applications for hydrogen and fuel cell project reviewer experts to review federal funding applications for clean hydrogen programs and to review the merit of ongoing projects. DOE seeks applicants with expertise in hydrogen production, storage, and delivery technologies, hydrogen and energy infrastructure, and integrated energy systems, and community engagement (e.g.,workforce, labor, and other community concerns), among other things. Those interested in applying to be an HFTO reviewer must email a copy of their most recent resume and a brief summary of their experience along with LinkedIn profile (if available) to H2Reviewer@ee.doe.gov.
Treasury Releases Final Rules for Clean Electricity Investment and Production Tax Credits
Last Tuesday, the Treasury Department made public final rules for the Clean Electricity Investment (Section 48E) and Clean Electricity Production (Section 45Y) Credits that were also the subject of significant lobbying on the part of the MCAA policy team. Together, these Clean Electricity Credits provide clarity and certainty around what clean electricity zero-emissions technologies qualify for the credits—including wind, solar, hydropower, marine, and hydrokinetic, geothermal, nuclear, and certain waste energy recovery property. The final rules also provide guidance to clarify how combustion and gasification technologies can qualify in the future—including on how lifecycle analysis assessments will be conducted. The existing Production Tax Credit and Investment Tax Credit will be available to projects that began construction before 2025. Qualifying projects placed in service after December 31, 2024, will be eligible for the new Clean Electricity Credits. To receive the full value of the credits, taxpayers must meet standards for paying prevailing wages and employing registered apprentices. The final rules are scheduled for publication in the Federal Register and will take effect on January 15, 2025.
Treasury Releases Final Rules and Guidance for Clean Electricity Low-Income Communities Bonus Credit Program
Last Wednesday, the Treasury Department and the Internal Revenue Service cleared final rules and a procedural guidance document for the Section 48E(h) Clean Electricity Low-Income Communities Bonus Credit Amount Program allocating bonuses to 1.8 gigawatts of clean electricity generation serving low-income communities from 2025 through at least 2032. The final rules expand the types of clean energy investments eligible for these tax credits beyond solar and wind technologies to other zero-emission technologies, including hydropower, geothermal, and nuclear. The final rule also clarifies eligibility requirements for qualified low-income residential building projects and provides a pathway for emerging clean energy businesses to receive priority in applying for the program. The final rule is scheduled to be published in the Federal Register on Monday, January 13, 2025.
DOE Releases FY25 Geothermal Research Funding
On January 2nd, the Department of Energy’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs announced the release of the fiscal year 2025 Phase I, Release 2 Notice of Funding Opportunity (NOFO) for Geothermal Research. Under this NOFO, there will be approximately $65,000,000 available for qualified small businesses to carry out projects on two topics: one on geothermal heating and cooling and a second on enhanced geothermal systems. The geothermal heating topic areas are: (1) low-impact drilling systems for geothermal heat pumps (GHPs); (2) rapid site assessment for GHPs; and (3) geothermal heating and cooling for protected agriculture, like greenhouses and other controlled farming environments. The enhanced geothermal topic area focuses on improving elastomeric materials used in harsh downhole geothermal environments. Applications should focus on improving elastomeric materials specifically for use in geothermal wells, including for use in seals, o-rings, zonal isolation devices, pumps, valves, motors, and wellbore monitoring tools. Letters of intent are due by January 14, 2025 and full applications are due by February 26, 2025. Full applications can be submitted to Grants.gov by entering Catalog of Federal Domestic Assistance No. 81.049.
Other Interesting Things Since Our Last Report
January 9, 2025
- The Energy Department announced more than $136 million for 66 projects to support research and development of technologies to reduce energy demand and improve productivity, including: (1) projects that improve energy and material efficiency, utilize advanced energy sources, and develop technologies which utilize sustainable chemical feedstocks; (2) projects that develop technologies to address industrial emissions for cement and concrete, asphalt, and glass; and (4) developments in energy-intensive pulp, paper, and wood products manufacturing through dewatering and drying technologies and fiber preparation, pulping, and chemical recovery processes. A full list of projects is available here.
- BlackRock, the world’s biggest asset manager, said it will leave the Net Zero Asset Managers Initiative, a coalition of top corporations that pledged to reach zero-carbon emissions by 2050. BlackRock’s departure followed a week after Morgan Stanley, Citigroup, and Bank of America withdrew from an aggressive climate change coalition focused on decarbonizing industries these banks serve. That followed withdrawals over the past month by Wells Fargo and Goldman Sachs from the United Nations-backed coalition, known as the Net-Zero Banking Alliance. JPMorgan Chase, the largest bank in the nation by assets and the only major U.S. bank left in the coalition, is also considering withdrawing from it. Members of the coalition, launched in 2021, had vowed to align “lending, investment and capital markets activities with net-zero greenhouse gas emissions by 2050.” The recent exodus from these decarbonization coalitions reflects a broad pullback by companies ahead of the second Trump administration from environmental, social and corporate-governance initiatives that Trump has strongly criticized.
January 8, 2025
January 7, 2025
- The Health and Human Services Department announced fiscal year 2025 allocation decisions for $700 million in funding from the President’s Bipartisan Infrastructure Law to support 67 construction projects to develop Tribal water infrastructure, including drinking water sources, sewage systems, and effective solid waste disposal facilities.
- The Federal Trade Commission (FTC) announced that three oil companies—XCL Resource Holdings, Verdun Oil Company II, and EP Energy LLC—agreed to pay a record $5.6 million penalty to settle allegations that they illegally coordinated before a merger between them was complete in 2021 and 2022. The FTC says XCL halted EP’s oil development activities “at a time when the United States was experiencing significant supply shortages and spiking crude oil prices” due to the COVID-19 pandemic.
Janaury 6, 2025
- The Energy Department (DOE) announced $45 million in funding for six projects in Alaska, Illinois, Texas, Utah, Virginia, and Wyoming to create regional consortia to accelerate the development of critical mineral and materials supply chains, including for novel nonfuel carbon-based products from secondary and unconventional feedstocks (e.g., coal and coal by-products, effluent waters from oil and gas development, acid mine drainage) for American manufacturing and production of technologies essential to clean energy.
January 2, 2025
- Beginning on January 2nd, an estimated 19 million Medicare beneficiaries will see their out of pocket spending under Medicare Part D prescription drug plans capped at $2,000 for 2025 after the provision was included in the Inflation Reduction Act in 2022. This annual cap will be indexed to the rate of inflation going forward every year. President Biden issued a statement marking implementation of the cap, calling it a “game changer for the American people” and will help Americans “afford the quality health care they need.” MCAA is working to educate policy makers about the pressure this price cap is placing on self-insured plans and how it is shifting the costs of drugs onto plans rather than lowering the overall cost of drugs.
December 30, 2024
- The Department of Labor (DOL) announced the award of $65 million to 18 colleges in Alabama, California, Colorado, Michigan, Missouri, Montana, Nebraska, New Jersey, Ohio, Oregon, Texas, Virginia, Washington, and West Virginia to support programs at community colleges that scale “affordable, high-quality” workforce training in “critical industry sectors” such as clean energy, advanced manufacturing, semiconductors, and biotechnology. Administered by DOL’s Employment and Training Administration, the fifth round of Strengthening Community Colleges Training Grants are intended to enhance career pathway programs and support equitable outcomes for marginalized and underrepresented populations. The full list of grant awards is available here.
Around the Country
Northeast
West
- On January 8th, the Interior Department (DOI) announced $514 million in funding from the President’s Bipartisan Infrastructure Law for five water storage and conveyance projects. Projects funded under this announcement include: (1) $250 million for the Arkansas Valley Conduit Project to fund the installation of nearly 10 miles of pipeline; (2) $129 million for the Sites Reservoir Project to develop up to 1.5 million acre-feet of new water storage on the Sacramento River system located near Maxwell, California; (3) $125 million for the B.F. Sisk Dam Raise and Reservoir Expansion Project in California to enhance off-stream storage capabilities; (4) $7 million for the Anderson Ranch Dam Raise Project to raise the Anderson Ranch Dam in Idaho by 6 feet to add 29,000 acre-feet of storage; and (5) $3 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 December 31st, the Environmental Protection Agency (EPA) announced the issuance of four Underground Injection Control Class VI well permits to Carbon TerraVault JV Storage Company Sub 1, LLC (CTV), a subsidiary of California Resources Corporation. The four Class VI UIC permits are for the first permitted Class VI injection wells in California and represent the first such permits issued by EPA’s Pacific Southwest Region. Class VI UIC wells are used to inject carbon dioxide into deep rock formations for permanent underground storage. This technology, called carbon capture and underground storage or geologic sequestration, can be used to reduce carbon dioxide emissions to the atmosphere and mitigate climate change. The permits authorize CTV to construct four deep injection wells in the Elk Hills Oil Field, approximately 20 miles west of Bakersfield, California. The wells will be constructed to depths of more than a mile below surface level, into the Monterey Formation. CTV plans to inject about 1.5 million metric tons of carbon dioxide per year for 26 years, totaling almost 38 million metric tons of carbon dioxide removed andstored.
Northwest
- On January 2nd, the Labor Department announced the award of $627,124 to the Washington State Employment Security Department to continue providing disaster-relief jobs and employment and training services for people in southwest Washington communities affected significantly by the health and economic effects of widespread opioid use, addiction, and overdose.
Midwest
Southeast
Southwest
- On January 9th, the Environmental Protection Agency (EPA) announced $100 million in funding from the President’s Inflation Reduction Act’s Community Change Grants program through three separate announcements of infrastructure projects in Louisiana, Texas, and New Mexico. In Louisiana, the EPA awarded $40 million to the Urban Restoration Enhancement Corporation and Stay Ready NOLA Inc. to: (1) construct solar farms, permeable surfaces, and offer workforce development programs for jobs in solar energy and maintenance; and (2) train community navigators to assess eligible households for home upgrades related to HVAC replacement, building shell improvements, installation of energy-efficient appliances, fortified roofing, and installation of solar energy storage. In Texas, the EPA awarded $33 million to organizations in Waco and McLennan counties, the city of Presidio, and 10 additional counties across southeast Texas to install solar and provide HVAC and energy efficiency upgrades, develop detention ponds to capture water runoff, and train and educate communities on how to engage in government processes on permitting decisions for infrastructure projects. Finally, in New Mexico, the EPA awarded $23 million to the Santa Fe Indian School Inc. and the Global Center for Cultural Entrepreneurship to construct stormwater detention ponds, install permeable pavements, and conduct community engagement and workforce development programs.
