Organization: PCA

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 27, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

MCAA continued tracking new Trump nominees and appointees to job critical to MCAA members. 

Trump Announces Key Nominees, Chairs, and Acting Chairs of Several Agencies

On January 16th, 2025, President Trump nominated former Rep. Brandon Williams (R-NY), who lost re-election to New York’s 22nd Congressional District last November, as Undersecretary for Nuclear Security and National Nuclear Security Administrator. MCAA knows Williams from his time in Congress. On January 15th, President Trump announced Keith Sonderling as his nominee for Deputy Secretary of the Department of Labor. MCAA knows Sonderling well from Trump’s first term when he served as Commissioner on the Equal Employment Opportunity Commission and as Acting Wage and Hour Administrator at the Labor Department. These nominations followed Trump’s January 12th announcements of James P. Danly to be Deputy Energy Secretary (Danly served as General Counsel, Commissioner, and Chair of FERC during Trump’s first term); David Fotouhi as Deputy Environmental Protection Agency (EPA) Administrator (Fotouhi served as EPA’s Acting General Counsel during Trump’s first term); and Katharine MacGregor as Deputy Interior Secretary (MacGregor served as Deputy Assistant Secretary for Lands and Minerals Management at the Interior Department during Trump’s first term).

Last Monday, the Trump Labor Department (DOL) posted a new leadership organizational chart designating Vince Micone as the acting head of DOL, pending the confirmation of former Rep. Lori Chavez-DeRemer (R-OR) to be Secretary of Labor. MCAA is actively supporting her nomination. Acting Secretary Micone is a career civil servant who formerly served as Deputy Assistant Secretary for Operations in DOL’s Office of Administration and Management. Keith Sonderling, Trump’s pick for Deputy Labor Secretary, will serve as Senior Advisor to the Secretary while awaiting confirmation. Also on January 20th, President Trump designated Chairs and Acting Chairs of several other federal agencies of interest to MCAA, including: (1) Marvin Kaplan as Chair of the National Labor Relations Board; (2) Mark Christie as Chair of the Federal Energy Regulatory Commission; (3) David Wright as Chair of the Nuclear Regulatory Commission; (4) Andrea Lucas as Acting Chair of the Equal Employment Opportunity Commission; and (5) Andrew Ferguson as Chair of the Federal Trade Commission.

Trump Signs Energy-Related Executive Order

Among the many executive actions President Trump took last week was an Executive Order (EO) related to energy and critical minerals. The EO: (1) declares a national emergency related to energy, allowing Trump to use the Defense Production Act to bolster energy deployment; (2) accelerates permitting and regulations to expand domestic energy production; (3) expedites the permitting and development of domestic critical minerals to reduce dependence on China; and (4) facilitates the utilization of Alaska’s oil, gas, minerals, timber, and other resources. This follows the Trump Energy Department’s (DOE) announcement that it is ending the liquefied natural gas (LNG) pause instituted during the Biden Administration. DOE will now resume consideration of pending applications to export American LNG to countries without a free trade agreement with the United States.

Congress

Speaker Johnson Taps Rep. Foxx to Lead House Rules Committee in 119^th Congress

On January 14th, House Speaker Mike Johnson (R-LA) appointed Rep. Virginia Foxx (R-NC) as chair of the influential House Rules Committee. Foxx is one of the most stridently anti-union members of the House. She previously served as chair of the House Education and Workforce Committee in the last Congress but was term-limited as chair in the 119th Congress. Speaker Johnson also announced two changes to the committee’s Republican roster: Rep. Morgan Griffith (R-VA), a member of the conservative House Freedom Caucus, will replace Rep. Thomas Massie (R-KY) on the committee, and first-term Rep. Brian Jack (R-GA) will take the spot previously held by Rep. Guy Reschenthaler (R-PA). Conservative Freedom Caucus members Reps. Chip Roy (R-TX) and Ralph Norman (R-SC) will remain on the panel.

House Education & Workforce Approves Oversight Plan 

On January 15^th, the House Education and Workforce Committee approved its oversight plan for the next two years. The Committee’s oversight priorities include: (1) Wage and Hour oversight involving “workers, employers, and other stakeholders to consider how best to modernize federal wage and hour laws”; (2) Retirement Security and Pensions oversight focused on engaging with “workers, employers, retirees, and other stakeholders to consider how best to strengthen laws governing retirement security,” reviewing the “PBGC’s recovery efforts of amounts improperly paid under the Biden-Harris administration’s Special Financial Assistance program to multiemployer plans on the basis of deceased participants” and reviewing the Employee Benefits Secretary Administration’s enforcement activity and rulemakings implementing…ERISA; (3) Healthcare oversight dedicated to “ensuring employers have the flexibility and tools to offer workers and their families affordable, employer-sponsored health care coverage that fits their individual needs,” overseeing the “implementation of laws governing mental health and substance abuse treatment” and maintaining “the protection of ERISA preemption of state insurance law”; (4) Workplace Safety and Health oversight targeting “OSHA’s efforts” on “Biden-Harris administration regulatory efforts that burden job creators while doing little to improve workplace safety”; (5) National Labor Relations Board (NLRB) oversight dedicated to ensuring the NLRB is interpreting and implementing the National Labor Relations Act in a manner that supports workers and employers”; (6) Equal Employment Opportunity oversight scrutinizing the Equal Employment Opportunity Commission (EEOC) and the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) “to ensure proper implementation and enforcement of employment nondiscrimination laws with a specific focus on the EEOC’s implementation of the 2024 final rule on the Pregnant Workers Fairness Act and of the 2024 enforcement guidance on harassment in the workplace”; and (7) Union Accountability and Transparency Oversight focused on the Labor Department’s “implementation of the Labor Management Reporting and Disclosure Act and conducting oversight on unions, as needed, to ensure they are respecting the democratic rights of their members and properly managing their members’ dues, education funds, and pension programs.”

House Education and Workforce Committee Announces Subcommittee Chairs and Ranking Members

Also on January 15^th, House Education and Workforce Committee Chair Tim Walberg (R-MI) announced the following Subcommittee Chairs for the 119^th Congress: (1) Rep. Rick Allen (R-GA) as chair of the Health, Education, Labor, and Pensions Subcommittee; (2) Rep. Ryan Mackenzie (R-PA) as chair of the Workforce Protections Subcommittee; (3) Rep. Burgess Owens (R-UT) as chair of the Higher Education and Workforce Development Subcommittee; and (4) Rep. Kevin Kiley (R-CA) as chair of the Subcommittee on Early Childhood, Elementary, and Secondary Education. Separately, House Education and Workforce Committee Democratic Ranking Member Bobby Scott (D-VA) announced the following Subcommittee Ranking Members for the 119^thCongress: (1) Rep. Mark DeSaulnier (D-CA) will serve as Ranking Member of the Health, Education, Labor, and Pensions Subcommittee; (2) Rep. Ilhan Omar (D-MN) will serve as Ranking Member of the Workforce Protections Subcommittee; (3) Rep. Suzanne Bonamici (D-OR) will serve as Ranking Member of the Early Childhood, Elementary and Secondary Education Subcommittee; and (4) Rep. Alma Adams (D-NC) will serve as Ranking Member of the Higher Education and Workforce Development. 

House Transportation and Infrastructure Announces Subcommittee Chairs and Ranking Members 

Last Tuesday, House Transportation and Infrastructure Committee Chair Sam Graves (R-MO) announced the new Subcommittee Chairs, Ranking Members, and Subcommittee members for the 119^th Congress. The new Republican Subcommittee Chairs are: (1) Rep. Scott Perry (R-PA) as Chair of the Subcommittee on Economic Development, Public Buildings, and Emergency Management; (2) Rep. Daniel Webster (R-FL) as Chair of the Subcommittee on Railroads, Pipelines, and Hazardous Materials; (3) Rep. Mike Collins as Chair of the Subcommittee on Water Resources and the Environment; (4) Rep. David Rouzer (R-NC) as Chair of the Subcommittee on Highways and Transit; (5) Rep. Troy Nehls (R-TX) as Chair of the Subcommittee on Aviation; and (6) Rep. Mike Ezell (R-MS) as Chair of the Subcommittee on Coast Guard and Maritime Transportation. The new Democratic Subcommittee Ranking Members are: (1) Rep. Greg Stanton (D-AZ) as Ranking Member of the Subcommittee on Economic Development, Public Buildings, and Emergency Management; (2) Rep. Dina Titus (D-NV) as Ranking Member of the Subcommittee on Railroads, Pipelines, and Hazardous Materials; (3) Rep. Frederica Wilson (D-FL) as Ranking Member of the Subcommittee on Water Resources and the Environment; (4) Delegate Eleanor Holmes Norton (D-DC) as Ranking Member of the Subcommittee on Highways and Transit; (5) Rep. Steve Cohen (D-TN) as Ranking Member of the Subcommittee on Aviation; and (6) Rep. Salud Carbajal (D-CA) as Ranking Member of the Subcommittee on Coast Guard and Maritime Transportation.

Biden Administration

ERISA Industry Committee Files Lawsuit Against Mental Health Parity Final Rule

On January 17th, the ERISA Industry Committee (ERIC) filed a lawsuit against the U.S. Departments of Labor, Treasury, and Health and Human Services, seeking to invalidate the Biden Administration’s September 2024 final rule implementing the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA). This rule poses many practical administrative concerns for MCAA plans based on assessment we have received from the National Coordinating Committee on Multiemployer Plans (NCCMP) and we have been raising our concerns about this rule with the new Administration. The lawsuit alleges that the final rule is unlawful because it exceeds the departments’ authority under the MHPAEA and the Consolidated Appropriations Act of 2021, violates the due process clause of the Fifth Amendment, is “arbitrary and capricious,” and violates the Administrative Procedure Act. The lawsuit also claims that the January 1, 2025, effective date for many of the final rule’s provisions is arbitrary and capricious because it did not provide enough time for ERISA-governed plans to comply with the new and “vaguely worded” regulations. The lawsuit was filed the same day the Biden Labor Department, Health and Human Services Department, and Treasury Department issued their 2024 Report to Congress on enforcement and implementation of the MHPAEA, along with an associated fact sheet. The report is notable because it includes as an appendix the entirety of a settlement agreement entered into by a Boilermakers National Plan to settle claims by the federal government that it failed to meet its Mental Health Parity Obligations.   

MCAA Issues and Interests 

Safety and Health 

MCAA Joins with CISC to Submit Comments on OSHA Heat Injury and Illness Proposed Rule 

On January 14th, the MCAA and other members of the Construction Industry Safety Coalition (CISC) submitted joint comments to the Occupational Safety and Health Administration (OSHA) on its proposed rule regarding Heat Injury and Illness in Outdoor and Indoor Work Settings. In the letter, the MCAA and other CISC members urged OSHA to develop a construction-specific heat standard rather than applying the one-size-fits-all approach outlined in the proposed rule. We also detailed the job tasks, work activities, and environmental conditions that construction employees face, which justify the need for a specialized standard, similar to what OSHA has implemented for other health and safety issues. The letter also identified major problems in the proposed rule, including: (1) the unworkable heat triggers that require revision; (2) the problematic prescriptive requirements tied to those triggers; (3) the need for flexible acclimatization procedures that allow employers to create training and protocols tailored to unique climatic conditions in different regions; and (4) the importance of straightforward training requirements that emphasize “water, rest, and shade.”

OSHA Terminates Rulemaking Extending COVID-19 ETS to Construction Workers at Healthcare Facilities

On January 15th, OSHA terminated its June 21, 2021 interim final rule (IFR) implementing an emergency temporary standard (ETS) to protect healthcare and “healthcare support” workers from occupational exposure to COVID-19 in settings where COVID-19 cases were reasonably expected (e.g.,hospitals). The MCAA had been educating OSHA, the Small Business Administration (SBA), and other federal agencies about concerns we had with the IFR. The MCAA also participated in several SBA Advisory Committee meetings to discuss these concerns and their impact on our members—particularly regarding the IFR’s inclusion of healthcare facility maintenance staff (including HVAC contractors) in its definition of “healthcare support” workers. 

Project Labor Agreements (PLAs)

U.S. Federal Court of Claims Invalidates Bids Based on PLAs Pursuant to Biden PLA Executive Order and Related FAR Council Rules

On January 19th, the U.S. Federal Court of Claims invalidated project labor agreements (PLAs) on several federal construction contract bids, ruling that PLAs are set-aside programs requiring authorization by an act of Congress. The Associated General Contractors (AGC) praised the decision and announced plans to continue “conversations with the incoming Trump Administration about the need to officially revoke President Biden’s illegal project labor agreement Executive Order and FAR Council Rules” in light of the ruling. On January 20th, the Associated Builders and Contractors (ABC) issued a press release expressing their enthusiasm for the ruling and urged its members to “continue to file protests against individual federal agency PLA mandates on a case-by-case basis and expect similar outcomes.” ABC argued that “[t]his is the best solution to defeat the Biden rule on federal contracts until a court issues an injunction against the rule or the Trump Administration rescinds it via executive action.” The group also reported that its members secured 54% of the $205.56 billion in federal construction contracts worth $35 million or more during fiscal years 2009–2023.

MCAA Urges President Trump to Maintain MCAA-Supported Executive Order on PLAs

On January 13th, the MCAA joined other members of the Construction Employers of America (CEA) in a letter to President Trump urging him to reject the Associated Builders and Contractors’ (ABC) request to rescind President Biden’s MCAA-supported executive order (EO) creating a presumption that project labor agreements (PLAs) will be used for large-scale federal construction projects valued at $35 million or more. 

In the letter, the CEA emphasized that “nothing in [President Biden’s EO] or the Federal Acquisition Regulatory Council rules implementing it prevents any contractor from submitting a bid on a large-scale federal construction project.” The letter also highlights data confirming “the productivity advantages union craftworkers have over their open shop peers,” including “lower staffing levels.”

Following our advocacy push on PLAs last Monday, MCAA was relieved to see that President Trump’s Executive Order (EO) titled “Initial Rescissions of Harmful Executive Orders and Actions,” rescinding dozens of Biden-era EOs left President Biden’s EO on PLAs intact. But given the Court of Claims decision and similar bid protests MCAA expects on federal construction contracts with a PLA, this is an ongoing fight and the outcome remains uncertain.

Registered Apprenticeship

DOL White Paper Confirms Value of Jointly Trusteed Apprenticeship Programs

Last Monday, shortly before the end of President Biden’s term, the Biden Labor Department released a white paper it sponsored affirming the benefit of jointly trusteed (union) registered apprenticeship programs. Among the findings are: (1) the construction industry trained more apprentices than any other industry from 2019 through 2022 and joint labor-management (union) programs trained 70 percent of all construction apprentices; (2) joint-labor management construction programs had a 56% completion rate compared to 46% in employer-only construction programs; (3) joint labor-management programs graduated 87% of women, 80% of military veterans, and 75% of Black apprentices in construction; (4) in construction, workers from joint labor-management programs earned exit wages of $38 per hour, while those from employer-only programs earned $25 per hour; (5) exit wages from joint construction programs were between $36 and $39 per hour for White, Black, Hispanic, male, female, and veteran construction workers; (6) the states with the highest apprenticeship exit wages for union journey workers were Massachusetts ($45 per hour), Illinois ($44 per hour), and Hawaii ($40 per hour); and (7) prevailing wage laws statistically increased construction apprenticeship wages by $3 per hour. 

Pension Reform

Most of the activity of the last two weeks on pensions occurred on the regulatory front.

DOL EBSA Updates Enforcement Policy on Missing Participants 

On January 14^th, the Biden Department of Labor’s Employee Benefits Security Administration (EBSA) announced its updated enforcement policy on missing participants to provide retirement plan fiduciaries with an option to help manage small benefit amounts owed to individuals who cannot be located. Under the policy, EBSA will not act under the fiduciary provisions of ERISA against fiduciaries who transfer entire benefit payments owed to missing participants of $1,000 or less to state unclaimed property funds, if certain conditions are met. To qualify for relief under this policy, fiduciaries must meet the conditions set forth in the policy, including: (1) meeting conditions designed to protect the interest of the missing individuals; (2) adopting best practices for locating missing participants and beneficiaries; and (3) selecting state unclaimed property funds that meet the minimum standards outlined in the policy.

DOL EBSA Announces Updates to Voluntary Fiduciary Correction Program 

Also on January 14^th, the Biden Department of Labor’s Employee Benefits Security Administration (EBSA) announced updates to its Voluntary Fiduciary Correction Program (VFCP), providing employers and other plan officials with more efficient ways to voluntarily correct compliance issues in retirement, health and other employee benefit plans. The most significant change is a self-correction tool that employers and other plan officials can use to remedy delays in sending participant contributions, such as employee payroll deductions, and participant loan repayments to retirement plans. Employers and other plan officials can also fix mistakes related to participant loans from retirement plans, as provided by the SECURE 2.0 Act. In addition, EBSA’s 2025 update to the VFCP: (1) expands the scope of transactions eligible for correction; (2) clarifies transactions that are already eligible for correction; (3) simplifies administrative and procedural requirements; and (4) amends the VFCP class exemption so plan officials can avoid the imposition of excise taxes.

Federal Contracting 

Trump Rescinds 1965 Executive Order Imposing Affirmative Action for Federal Contractors

Last Tuesday, President Trump signed an Executive Order (EO) entitled Ending Illegal Discrimination and Restoring Merit-Based Opportunity that rescinds President Lyndon Johnson’s 1965 EO 11246—which authorized the affirmative action obligations federal contractors have complied with for almost 60 years. The White House released a fact sheet on the EO available here. Under Trump’s EO “[f]or 90 days from the date of this order, federal contractors may continue to comply with the regulatory scheme in effect on January 20, 2025.” The EO bars the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) from holding federal contractors and subcontractors responsible for taking “affirmative action” based on race, color, sex, sexual preference, religion, or national origin. Going forward, federal contractors will be required to certify that they “do not operate any programs promoting Diversity, Equity, and Inclusion (DEI) that violate any applicable federal anti-discrimination laws” and “to agree that [their] compliance in all respects with all applicable federal anti-discrimination laws is material to” whether they are in compliance with the Federal False Claims Act. 

President Trump’s EO further directs “all executive departments and agencies to terminate all discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements…and to combat illegal private-sector DEI preferences, mandates, policies, programs, and activities.” To this end, the U.S. Attorney General must, within 120 days of the order, “submit a report to the Assistant to the President for Domestic Policy containing recommendations for enforcing federal civil rights laws and taking other appropriate measures to encourage the private sector to end illegal discrimination and preferences, including DEI.” The report is to detail “sectors of concern” as far as improper DEI practices within each federal agency’s jurisdiction, examples of the most “egregious and discriminatory DEI practitioners” in each such sector and provide “a plan of specific steps or measures to deter DEI programs or principles (whether specifically denominated ‘DEI’ or otherwise)” that constitute illegal discrimination or preferences in the private sector. Each federal agency shall identify up to “nine potential civil compliance investigations of publicly traded corporations, large non-profit corporations or associations, foundations with assets of 500 million dollars or more, state and local bar and medical associations, and institutions of higher education with endowments over 1 billion dollars,” and well as litigation and sub regulatory guidance that would promote the EO’s purpose of ending affirmative action and DEI. The EO “does not apply to lawful federal or private-sector employment and contracting preferences for veterans of the U.S. armed forces.”

Following up on this executive order, last Wednesday, the Trump Labor Department’s Employment and Training Administration (ETA) issued Training and Employment Notice (TEN) 21-24 directing state workforce agencies, state apprenticeship agencies, and other stakeholders on changes the ETA is making to federal financial assistance awards to prohibit diversity, equity, and inclusion (DEI) activities prohibited by President Trump’s order. Per the TEN, “all recipients of federal financial assistance awards are directed to cease all activities related to “diversity, equity, and inclusion” (DEI) or ‘diversity, equity, inclusion, and accessibility’ (DEIA) under their federal awards, consistent with the requirements of the EOs.” The TEN goes on to state that ETA “like all federal agencies, will provide further guidance on specific programs and activities within those programs.”

Decarbonization

Since the November elections, MCAA and its allies urged the Biden Administration to obligate as much money as possible for clean energy projects authorized under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. We were pleased to see such efforts throughout the final days of the Biden Administration.

IRS Announces $6B in Tax Credits under Section 48C Qualifying Energy Project Tax Credit 

On January 11^th, the Biden Treasury Department and Internal Revenue Service (IRS) announced $6 billion in tax credits for the second round of the Inflation Reduction Act’sSection 48C Qualifying Energy Project Tax Credit for projects in 30 states. The 48C program is a competitive funding program and companies have the opportunity to apply for infrastructure project funding in the form of an investment tax credit for projects that: (1) expand U.S. clean energy manufacturing and recycling capacity ($3.8 billion in available tax credits); (2) expand U.S. critical minerals processing and refining capacity ($1.5 billion in available tax credits); and (3) drive process efficiency and reduce greenhouse gas emissions at U.S. industrial facilities ($700 million in available tax credits). 

DOE Opens Funding Opportunity for Regional Partnerships for Geothermal Data Projects 

On January 13^th, the Biden Energy Department (DOE) announced that it has opened an initial funding opportunity for six awards totaling $19 million for Regional Partnerships for Geothermal Data to support partnerships to identify regional data gaps and prioritize, plan, and execute geothermal data collection and dissemination activities. The aim of the funding opportunity is to incentivize and stimulate follow-up geothermal exploration and development activities. The funding opportunity is available here. 

FHWA Releases $635 Million for Natural Gas and EV Refueling Infrastructure

The Biden Transportation Department’s Federal Highway Administration (FHWA) announced $635 million in grants through the Bipartisan Infrastructure Law for 49 projects to construct more than 11,500 EV charging ports and hydrogen and natural gas fueling infrastructure across 27 States, four Tribes, and the District of Columbia. Of the total, $368 million will be allocated for 42 “community projects” that expand EV charging infrastructure within communities across the country and $268 million will go towards seven “corridor fast-charging projects” that build out the national charging and alternative-fueling network along designated Alternative Fuel Corridors. A full list of grant recipients under this announcement is available here.

Energy Department Releases $960 Million for Energy Grid Modernization

The Biden Energy Department announced updates on finalized projects awarded from its Grid Deployment Office for the month of January. The announcement includes: (1) a $360 million contract with Southern Spirit Transmission to construct a new 320-mile, 525 kV High-Voltage Direct-Current (HVDC) line to create substantial new transmission capacity between the Electric Reliability Council of Texas (ERCOT) grid and electric grids in the Southeastern United States; and (2) $600 million in funding for the California Harnessing Advanced Reliable Grid Enhancing Technologies for Transmission (CHARGE 2T) project to reconductor more than 100 miles of transmission lines with advanced conductor technologies and deploy dynamic line ratings (DLR) to quickly and significantly increase the state’s system capacity to integrate more renewable energy onto the grid, and supports process improvements and investments in the workforce.

DOE Announces Funding to Develop CO₂ Capture, Removal, and Conversion Test Centers

On January 14^th, the Biden Energy Department (DOE) announced $101 million in funding, subject to appropriations, for five projects to support the development of carbon dioxide capture, removal, and conversion test centers. The recipients receiving funding under this announcement include: (1) Holcim US, which plans to establish a domestic Cement Carbon Management Innovation Center at its Hagerstown Cement Facility in Maryland; and (2) Southern Company Services, Inc. of Birmingham, Alabama, which intends to maintain and operate the National Carbon Capture Center, a comprehensive test facility capable of evaluating carbon dioxide capture, removal, and conversion technologies under electric generating plant operating conditions. The recipients also include three universities in Illinois, North Dakota, and Wyoming, which plan to design and enhance carbon capture, removal and conversion test centers for power plants, natural gas and industrial facilities, and cement industry operations.

Interior Department Makes $1.5 Billion Available to Clean Up Orphaned Oil and Gas Wells

On January 15^th, The Biden Interior Department released final guidance on how states can apply for $1.5 billion (up to $40 million each) in Regulatory Improvement Grant funding available under the Bipartisan Infrastructure Law to clean up polluting and unsafe orphaned oil and gas wells across the country. States are eligible for two types of Regulatory Improvement Grants: (1) Plugging Standard Grants, which are intended to incentivize states to implement standards and procedures designed to ensure that wells located in the state are plugged in an effective manner that protects groundwater and other natural resources, public health and safety, and the environment; and (2) Program Improvement Grants, which are intended to incentivize states to implement other improvements to state programs designed to reduce future orphaned well burdens, such as financial assurance reform, alternative funding mechanisms for orphaned well programs, and reforms to programs relating to well transfer or temporary abandonment. Under the guidance, states are eligible to receive a Plugging Standards Regulatory Improvement Grant of $20 million, and a Program Improvement Regulatory Improvement Grant of $20 million, for a total of $40 million per state.

Energy Department Releases $23 Billion to Retool Energy Infrastructure 

On January 16^th, the Biden Energy Department’s Loan Office announced $22.92 billion in conditional financing to several energy utilities—including DTE Energy Company in Michigan, Consumers Energy Company in Michigan, and PacificCorp, a utility that serves six western states—for projects that retool or replace energy infrastructure that has stopped operating or that enables reductions in emissions blamed for global warming.

Interior Department Provides $223 Million for Water Infrastructure Projects

On January 14^th, the Biden Interior Department (DOI) announced $223 million from President Biden’s Investing in America Agenda for 18 projects in Arizona, California, Hawaii, Idaho, New Mexico, Oklahoma, Texas, and Washington State for water recycling and desalination projects aimed at addressing the impacts of drought. Projects under this announcement include water infrastructure projects such as water storage, conservation and conveyance, nature-based solutions, dam safety, water purification and reuse, and desalination. The full list of projects is available here.

Energy Department Released $38 Million to Support Hydrogen Hub Development

On January 17^th, the Biden Energy Department (DOE) announced $38.8 million to support planning, design, and community and labor engagement activities for two Hydrogen Hubs, including: (1) $18.8 million to the Mid-Atlantic Hydrogen Hub (Pennsylvania, Delaware, and New Jersey) for the development of hydrogen production facilities used in industrial applications (e.g., power generation and replacement fuel for process heaters) and heavy-duty transportation, including for refueling stations for trash trucks, street sweepers, cargo handling equipment, and fuel cell electric buses; and (2) $20 million for the Heartland Hydrogen Hub (Colorado, Minnesota, Montana, North Dakota, South Dakota, and Wisconsin) to leverage new and existing energy resources and infrastructure to produce commercial-scale quantities of clean hydrogen for low-carbon nitrogen fertilizer.

Other Interesting Things Since Our Last Report 

January 23, 2025

• During his virtual appearance before the World Economic Forum in Davos, in responding to a question about LNG markets, President Trump said he will expedite the construction of power plants for artificial intelligence (AI) through an emergency declaration. He added that, “we’re going to build electric generating facilities. I’m going to get the approval under emergency declaration. I can get the approvals done myself without having to go through years of waiting.” Trump added that the generating facilities can use whatever fuel they want, making clear that his administration would not hold the AI industry to any climate targets. He even suggested the facilities use coal for emergency backup power. During the speech, President Trump also promised countries and businesses lower taxes if they bring manufacturing to the U.S. and threatened to impose tariffs if they don’t. World Trade Organization Director-General Ngozi Okonjo-Iweala said that any tit-for-tat trade wars prompted by Trump’s tariff threats would have catastrophic consequences for global growth and urged states to refrain from retaliation. President Trump also foreshadowed a fight with the Federal Reserve over its independence, saying he will “demand that interest rates drop immediately.” 

• The U.S. Supreme Court issued an emergency stay temporarily halting a lower court injunction blocking implementation of the Corporate Transparency Act (CTA) and its beneficial ownership reporting requirements that compel millions of business entities to disclose personal information about the individuals who directly and indirectly own or control them. The case will now go back to the U.S. Fifth Circuit Court of Appeals for a trial on the merits of the legality of the CTA. While that case is pending, the Supreme Court will allow FinCEN to collect beneficial ownership disclosure information that it was supposed to begin getting on January 1, 2025 but for the injunction. Following the Supreme Court’s decision, FinCEN posted a notice on its website stating that “reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.” 

January 22, 2025

• Discussions on tax provisions—including the State and Local Tax (SALT) deduction limit—picked up steam as Rep. Mike Lawler (R-NY) met with President Trump on revising the SALT deduction and other tax provisions that GOP moderates want addressed as a condition of allowing a reconciliation tax package to move forward. Republican House members from New York, New Jersey, California, and other “blue states” have been clear they want more than a $10,000 increase. They are also discussing refinements to the SALT deduction, such as the eligibility of second properties, a marriage penalty, and some income restrictions to prevent “billionaires” from using any increased deduction.

January 21, 2025

• At the organizational meeting of the U.S. Senate Health, Education, Labor, and Pensions (HELP) Committee, Committee, Chair Bill Cassidy (R-LA), and Senate HELP Committee Ranking Member Bernie Sanders (I-VT) expressed a bipartisan commitment to prioritize legislation on the cost of prescription drugs and pharmacy benefit manager (PBM) reform in the 119^thCongress. Cassidy noted that while the PBM Reform Act and legislation to bring lower-cost generic drugs to market more quickly did not pass last Congress, committee leadership will again focus on advancing these bills. 

January 20, 2025 

• President Trump signed an Executive Order (EO) entitled, “Initial Rescissions of Harmful Executive Orders and Actions” that rescinds dozens of Biden-era EOs, including: (1) EO 13999, “Protecting Worker Health and Safety (January 21, 2021); (2) EO 14052, “Implementation of the Infrastructure Investment and Jobs Act (IIJA)” (November 15, 2021); (3) EO 14055, “No displacement of Qualified Workers Under Service Contracts” (November 18, 2021); (4) EO 14082, “Implementation of the Energy and Infrastructure Provisions of the Inflation Reduction Act of 2022 (IRA)” (September 12, 2021); and (5) Executive Order (EO) 14087 “Lowering Prescription Drug Costs for Americans” (October 14, 2022) that authorized the Medicare High Value Drug List Model that allows Medicare Part D prescription drug plan sponsors to offer “approximately 150 high-value generic drugs with a maximum copayment of $2 for a month’s supply,” thus lowering prescription drug costs for many Medicare beneficiaries. On January 21^st, the Trump Office of Management and Budget issued guidance partially walking back President Trump’s halt to implementation of the IRA and IIJA clarifying that the freeze on funding from these laws “only applies” to the subset of IRA and IIJA funds related to climate change mitigation and incentives for electric vehicle charging and not other projects funded through the laws. The “clarification” came after bipartisan complaints from Congress that Trump’s actions on Monday would kill lots of infrastructure jobs.

• President Trump said that he expects to put 25% tariffs on Canada and Mexico starting on February 1^st but declined to flesh out his plans for tariffs on Chinese imports. In response, Canadian Prime Minister Justin Trudeau warned that if Trump imposed tariffs on Canadian goods, Canada would impose retaliatory tariffs.

January 17, 2025

• MCAA members monitoring issues around noncompete agreements should know that the Biden Federal Trade Commission (FTC) finalized a consent order requiring building services contractor Guardian Service Industries, Inc. (Guardian) to stop enforcing a no-hire agreement prohibited building owners and competing building service contractors from hiring Guardian’s maintenance technicians, custodians, and concierges. The final consent order requires Guardian to cease and desist from, directly or indirectly, enforcing a no-hire agreement or communicating to any prospective or current customer that a Guardian employee is subject to a no-hire agreement. It is unclear whether the FTC will continue its aggressive enforcement against non-compete agreements under newly appointed Trump FTC Chair Andrew Ferguson.

January 16, 2025

• The Biden Internal Revenue Service (IRS) issued guidance (Rev. Rul. 2025-4) to D.C. and states that have mandatory paid family and medical leave programs, and for employees working in and employers operating in those states, on the income and employment tax treatment of contributions and benefits paid under these programs. The revenue ruling explains multiple tax treatment scenarios under these programs and the related reporting requirements, and also provides transition relief to D.C., states, and employers from certain withholding, payment, and information reporting requirements for state paid medical leave benefits paid during calendar year 2025. It is unclear if the Trump IRS will rescind or revise this guidance.

January 15, 2025

• The Biden Transportation Department’s Pipeline and Hazardous Materials Safety Administration (PHMSA) released a proposed rule establishing new standards for carbon dioxide gas pipelines. The proposal addresses: (1) design, installation, operation, maintenance, and reporting requirements for carbon dioxide gas pipelines; (2) requirements for pipeline operators when converting existing pipelines to transport carbon dioxide; (3) requirements for all carbon dioxide pipeline operators to provide training to emergency responders and ensure carbon dioxide detection and other equipment is available for local first responders to use and efficiently respond during an emergency; (4) implementation of more robust requirements for communicating with the public during an emergency; and (5) a requirement of more detailed vapor dispersion analyses to better protect the public and the environment in the case of a pipeline failure. An advanced copy of the proposed rule is available here and it will be open for comment for 60 days following publication in the Federal Register.

• In a unanimous 9-0 decision, the U.S. Supreme Court ruled in EMD Sales v. Carrera that the preponderance-of-the-evidence standard applies when an employer seeks to establish under the Fair Labor Standards Act (FLSA) that an employee is exempt from the minimum wage and overtime requirements of the FLSA. The decision reverses a Fourth Circuit Court of Appeals ruling that the FLSA requires employers to use a more onerous clear and convincing evidence standard to prevail on claims that an employee is exempt from FLSA minimum wage and overtime requirements.

January 14, 2025 

• The Biden Transportation Department’s Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a safety advisory notice to request that consumers, retailers, shippers, and DOT-regulated entities ensure their cylinders containing hazardous gases are in compliance with the hazardous materials regulations. PHMSA is issuing this notice after finding several instances of empty cylinders being sold by major retailers to consumers, shippers, and heating, ventilation, and air conditioning (HVAC) personnel and service technicians that were not manufactured to a DOT specification or UN standard and lack certification markings. The safety advisory notice is available here.

• The Biden Department of Homeland Security (DHS) announced the addition of 37 entities based in China to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List that requires U.S. Customs to bar their products from entry into the U.S. Tuesday’s announcement is the largest single expansion of the list to date. Eleven of the designated Chinese entities are in the energy sector, including companies engaged in: (1) the manufacturing of solar energy (e.g., silicon rods, wafers, and solar cell modules) and “green energy” technologies (e.g., energy power stations, batteries, and modules); (2) the development of coal, wind, photovoltaic, and oil and gas resources; and (3) critical minerals production and/or refining.

• The Biden Energy Department (DOE) announced that it has released the 179D Portal, a tool to estimate potential federal tax deductions for installing eligible energy-efficient technologies in commercial buildings. The Inflation Reduction Act revised the 179D deduction to enable two different pathways for compliance: (1) the traditional pathway based on modeled savings beyond a reference building code; and (2) an alternative pathway for buildings to reduce their energy use based on utility data from previous levels. The 179D Portal provides tools for both the traditional compliance pathway and for the alternative compliance pathway for qualifying upgrades beginning in tax year 2023.

• The deadline for REAL ID enforcement (which has been delayed multiple times) is set to begin on May 7^th. Once May 7^th arrives, people will need a REAL ID-compliant ID to board a domestic flight and if they are going into certain federal facilities or entering a nuclear power plant. Under a Transportation Security Administration (TSA) proposed rule released in September 2024, federal agencies may have leeway to phase in enforcement. This is being justified by the slow adoption of REAL IDs as only 56% of driver’s license and state IDs were compliant as of January 2024. TSA appears determined not to allow another deadline delay out of concern it would reduce the “urgency to obtain a REAL ID” which means Americans could be rushing to their DMVs to obtain Real ID compliant identification ahead of May.

January 13, 2025

• The Biden Administration concluded that China uses unfair policies and practices to dominate the global maritime, logistics, and shipbuilding sectors. Investigators with the Office of the U.S. Trade Representative determined that China targeted the shipbuilding and maritime industry for dominance, using financial support, barriers against foreign firms, forced technology transfers and intellectual property theft and procurement policies to give its shipbuilding and maritime industry an advantage.

• The Biden Centers for Medicare & Medicaid Services (CMS) announced that it has released the Calendar Year (CY) 2026 Advance Notice for the Medicare Advantage (MA) and the Medicare Part D Prescription Drug Programs that would update payment policies for these programs. CMS published a fact sheet on the Advanced Notice andis concurrently releasing the Draft CY 2026 Part D Redesign Program Instructions that continue to implement the redesign of the Medicare Part D program. The Inflation Reduction Act redesigned Medicare Part D to reduce prescription drug costs, including the first-ever cap on annual out-of-pocket prescription drug costs for all people with Medicare prescription drug coverage that went into effect on January 1, 2025.

Around the Country

Northeast 

• On January 16^th, Rep. Nick LaLota (R-NY) led a bloc of five House Republicans in announcing plans to vote together and oppose any broader Trump tax package unless it contains significant changes to the current State and Local Tax (SALT) cap provisions beyond just an increase of the cap from $10,000 to $20,000. The other members of the bloc are Reps. Andrew Garbarino (R-NY), Mike Lawler (R-NY), and Tom Kean Jr. (R-NJ), and Young Kim (R-CA) Given the small GOP majority, this bloc could sink any party-line tax bill seeking to enact the Trump tax cuts. 

West

• On January 17^th, the Biden Energy Department (DOE) announced that it closed a $15 billion loan guarantee to Pacific Gas & Electric Company (PG&E), a combined natural gas and electric utility serving northern and central California, for the company’s Project Polaris to support a portfolio of projects to expand hydropower generation and battery storage, upgrade transmission capacity through reconductoring (i.e., replacing cables or wires on an electric circuit) and grid enhancing technologies, and enable virtual power plants throughout PG&E’s service area. The Biden DOE noted that PG&E will partner with the International Brotherhood of Electrical Workers (IBEW) Local 1245 to train and employ members of underserved groups interested in operational roles through its existing Power Pathway.

• On January 13^th, the Biden General Services Administration announced a $183 million Energy Savings Performance Contract with Ameresco for energy retrofits, building electrification, and purchase of American-made low-embodied carbon materials at the Denver, CO Federal Center. The contract includes a centralized geothermal heat pump system and a solar photovoltaic system to supply year-round heating, cooling and electrical power for the 623-acre complex and allow for self-generated solar photovoltaic to electrify approximately half of the campus.

Northwest 

• On January 15^th, the Biden Transportation Department’s Federal Transit Administration (FTA) announced $79.7 million in Bipartisan Infrastructure Law funding through the Capital Investment Grants (CIG) program to King County Metro to support a 17-mile bus rapid transit line between the cities of Renton, Auburn, and Kent, Washington State, including for 41 new stations with shelters and lighting and two miles of exclusive bus-only lanes.

Midwest

• On January 17^th, Ohio Gov. Mike DeWine (R) appointed Lt. Gov. Jon Husted (R) to the Ohio U.S. Senate seat being vacated by Vice President J.D. Vance (R-OH). 

• On January 16^th, defense contractor Andriel Industries announced that it will spend $1 billion to build its 5 million square foot Arsenal-1 defense manufacturing facility near Rickenbacker International Airport in Columbus, Ohio. The company plans for the production of its autonomous vehicles, drones, and missiles to go online by July 2026. The project is expected to bring more than 4,000 direct jobs to Ohio and is the largest single job-creation project in Ohio history.

Southeast

• On January 22^nd, Rep. Nancy Mace (R-SC) said that she is “seriously considering” a gubernatorial run in South Carolina in 2026 and will make a final decision in the coming weeks. 

• On January 16^th, Florida Gov. Ron DeSantis (R) picked the state’s Republican attorney general, Ashley Moody, to replace Secretary of State Marco Rubio (R-FL) in the Senate.

• On January 16^th, a new poll found Georgia Gov. Brian Kemp (R) leading incumbent Democratic Sen. Jon Ossoff (D) in a hypothetical U.S. Senate race 46%-40% with 14% undecided.

• On January 15^th, Florida Sen. Rick Scott (R) was elected chair of the Senate GOP Steering Committee, which serves as a Senate version of the House Freedom Caucus. The committee hosts weekly lunches and includes many of the most conservative Republicans in the Senate, though there is no formal roster.

• On January 14^th, the Biden General Services Administration (GSA) announced the award of a $210 million Energy Savings Performance Contract to CEG Solutions, LLC to implement energy and water upgrades at the following GSA facilities in the National Capital Region: (1) the Markey National Courts Building; (2) the Dolley Madison House; (3) the Cosmos Club Tayloe House; (4) the National Building Museum; (5) the Sidney Yates Federal Building; (6) the Lyndon B. Johnson Federal Building; (7) the Mary E. Switzer Federal Building; and (8) the U.S. Tax Court Building. The upgrades include deep energy retrofits through energy conservation measures, building electrification and the use of American-made low-embodied carbon materials. Other energy conservation measures to be implemented include upgrades to building envelopes, chillers, lighting and controls, building automation systems, domestic water systems, and replacement of transformers.

• On January 13^th, Sen. Jim Justice (R-WV) was officially sworn in, replacing Sen. Joe Manchin (I-WV) in the U.S. Senate.

Southwest

• On January 22^nd, Rep. Andy Biggs (R-AZ) filed a statement of interest to run for governor of Arizona in 2026, setting up a potential primary battle with fellow Republican and Trump-backed candidate Karrin Taylor Robson who lost in the 2022 primary to Kari Lake. 

• On January 21^st, the Trump Administration announced that Oracle, OpenAI, and SoftBank have committed $500 billion as part of a private investment to build out artificial intelligence (AI) infrastructure in the U.S. The joint venture, called Stargate, will see each company initially commit $100 billion and will kick off with the construction of a data center in Texas.