MCAA Government Affairs Update for the Week of March 9, 2026: The Latest Developments Impacting Our Industry

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, March 9, 2026 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

• The war in Iran is disrupting global energy markets and pushing up fuel prices in the United States as Iran threatens vessels and energy infrastructure in the Strait of Hormuz—a key shipping route for a significant share of the world’s oil and liquefied natural gas. To address concerns about energy prices and global supply disruptions, last Friday the Trump Administration announced a $20 billion reinsurance facility designed to support Gulf shipping. The reinsurance facility is being funded through the U.S. International Development Finance Corporation and will partner with U.S. insurance companies that have already been identified to provide additional insurance capacity for vessels operating in the Middle East. The Trump Administration is also considering having U.S. naval forces escort oil and gas tankers as they are being attacked in the Strait. White House Chief of Staff Susie Wiles is pressing Cabinet members and White House advisers to develop policies and messaging to counter concerns about rising gas prices, but President Trump is downplaying the increases, saying he is not concerned about higher gasoline prices, emphasizing that the military operation against Iran takes priority over spikes in short-term fuel costs. Energy Secretary Chris Wright acknowledged that the U.S. is going “to have a transient bump…in gasoline prices,” but argued that this is a “very small price to pay to remove the nation that’s killed more American soldiers in the last 20 years than any nation on earth.” Last Friday, National Economic Council Director Kevin Hassett denied that the Administration is currently considering releasing oil from the Strategic Petroleum Reserve, and asserted that the White House has “many” tools available to respond to rising energy prices and expects market pressures to ease as the conflict stabilizes.

• Given the interest MCAA members have in the ENERGY STAR Program and its role in promoting energy-efficient appliances and benchmarking building energy performance, we wanted to be sure members were aware that last Thursday, the Environmental Protection Agency (EPA) and Department of Energy (DOE) signed a memorandum of agreement transferring primary management of the ENERGY STAR program for energy-efficient appliances and other consumer products to DOE. The agreement also transfers responsibility for the program’s widely used ENERGY STAR certification for commercial buildings, which is used in commercial real estate and construction markets to benchmark building energy performance to promote building design, operations, and retrofits to reduce energy consumption and operating costs. Under the agreement, DOE will assume primary responsibility for administering the voluntary labeling program authorized under the Energy Policy Act of 2005, including oversight of partnership agreements, trademarks, and program data systems, while the agencies develop a transition plan within 90 days. ENERGY STAR-certified buildings are generally required to demonstrate energy use at least 25% more efficient than comparable properties. The EPA and DOE said the change is intended to streamline federal oversight of the program.

• On the decarbonization front, MCAA members involved in offshore energy infrastructure and related industrial construction projects should be aware that the Interior Department last Thursday announced it will propose rolling back requirements on the offshore oil and gas industry imposed in a Biden-era April 2024 final rule on “Risk Management and Financial Assurance for OCS Lease and Grant Obligations” that the agency estimates will save industry about $484 million annually in compliance costs. The Biden-era final rule required operators on the Outer Continental Shelf to set aside about $6.9 billion in new supplemental financial assurance to cover potential costs associated with decommissioning offshore oil and gas infrastructure. The proposed changes would revise how the Bureau of Ocean Energy Management evaluates financial risk and lower the amount of supplemental financial assurance companies must set aside, which officials say will allow operators to redirect capital toward exploration, development, and production activities. The proposed rule will be published in the Federal Register with a 60-day public comment period.

• As the MCAA continues monitoring the fallout from the Supreme Court’s decision blocking President Trump’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA), last Wednesday, a U.S. Court of International Trade judge in New York ordered the Trump Administration to refund more than $130 billion in IEEPA tariffs that were invalidated by the U.S. Supreme Court. The ruling requires U.S. Customs and Border Protection (CBP) to issue refunds by recalculating the duties importers originally paid and excluding the tariffs invalidated by the Supreme Court. CBP subsequently told the court it cannot immediately comply with the order and will need roughly 45 days to develop a system capable of processing the unprecedented volume of refund requests. The administration is appealing the order, but the court denied a Justice Department request to pause the ruling pending the appeal. Following the ruling, a coalition of Democratic-led states filed a separate lawsuit in the Court of International Trade challenging the new global tariffs President Trump imposed under Section 122 after the Supreme Court struck down his IEEPA tariffs, arguing the administration is misapplying the statute. Treasury Secretary Scott Bessent said last Wednesday that the Trump Administration plans to implement a 15% global tariff, an increase over the current 10% the President imposed under Section 122. Separately, a Federal Reserve survey released last Tuesday found tariffs and inflation significantly increased operating costs for 4 in 10 small businesses in 2025.

• In response to growing state and local opposition to new data center development over concerns about electricity demand and potential impacts on power prices, President Trump last Wednesday issued a proclamation formalizing the “Ratepayer Protection Pledge,” a White House initiative announced at the State of the Union aimed at ensuring that the rapid expansion of artificial intelligence and data center infrastructure does not increase electricity costs for American households. Under the pledge, major technology companies including Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI agreed to build, bring, or purchase the additional electricity generation needed to power their data centers and to cover the cost of required grid and transmission upgrades rather than passing those expenses on to ratepayers. Participating companies will also negotiate separate rate structures with utilities and state regulators and commit to paying for the electricity and infrastructure brought online for their facilities even if the power is not fully used. The pledge also commits AI companies to coordinate with grid operators to improve system reliability, invest in local workforce development and job creation, and make backup generation resources available during grid emergencies.

• As the MCAA continues engagement with the Trump Administration on accelerating the deployment of nuclear technology, we wanted to highlight a proposed rule from the Nuclear Regulatory Commission (NRC) to streamline contested licensing hearings in response to requirements in the MCAA-supported ADVANCE Act and President Trump’s Executive Order 14300. The NRC proposal would “frontload” adjudications by requiring parties to submit all available evidence early in the process, establish firm hearing schedules, and limit late-filed contentions to new, materially different information raising critical issues. The NRC states the changes are intended to allow most adjudications to be completed within 8 to 14 months, helping meet the statutory goal of resolving licensing hearings within two years of docketing. The proposal comes after the NRC announced last Monday that Jeremy Bowen was appointed to lead the NRC’s new Office of Advanced Reactors, which will license and oversee new and advanced reactors and is responsible for the expeditious review of advanced reactor applications and deployment of innovative technology. In this role, Bowen will lead the team issuing permits and licenses for new reactor facilities and serve as the programmatic lead for construction inspection.

• As the MCAA continues educating members about implementation of the One Big Beautiful Bill Act (OBBBA), including provisions related to deductions for qualified overtime and qualified tips, we wanted to be sure that members were aware that last Monday, the Internal Revenue Service (IRS) published the long-awaited new Form 1040 Schedule 1-A and accompanying Form 1040 instructions for tax year 2025. The new form and instructionsoutline how taxpayers may calculate and claim deductions of up to $12,500 in qualified overtime compensation ($25,000 for joint filers)and up to $25,000 in qualified tips, both subject to income phaseouts beginning at $150,000 in modified adjusted gross income ($300,000 for joint filers). Workers may claim these deductions retroactively for tax year 2025 whether they itemize or take the standard deduction, though married taxpayers must file jointly to qualify. The instructions provide worksheets for calculating deductible amounts. They also discuss the “No Tax on Overtime” deduction on pages 106-108 and the “No Tax on Tips” deduction on pages 101-105, which is relevant to some MCAA members to the extent it applies to Home Heating and Air Conditioning Mechanics and Installers, Home Plumbers, Home Maintenance and Repair Workers, and Home Appliance Installers and Repairers.

• Ongoing MCAA engagement with the Department of Labor on apprenticeship, prevailing wage, and other workforce priorities comes amid continued leadership turbulence that may affect the department’s bandwidth, internal coordination, and pace of decision-making. Last Monday, Labor Secretary Lori Chavez-DeRemer’s Chief of Staff Jihun Han and Deputy Chief of Staff Rebecca Wright resigned after the White House told them to step down or face termination. Their departures come amidst an ongoing Department of Labor Inspector General (IG) investigation launched two months ago that has found evidence the two created a “toxic” workplace environment and misused departmental resources for personal travel. The IG also corroborated allegations involving Chavez-DeRemer and Wright related to taxpayer-funded travel to a December 2025 America First Policy Institute event in Palm Beach, Florida during which they disregarded the opinion of DOL ethics officials that they could not use taxpayer funds for portions of the five-day trip during which the Secretary had a single speaking engagement. The investigation has continued to expand, and another close aide to Chavez-DeRemer, director of advance Melissa Robey, was placed on administrative leave last Thursday.

• New guidance from the National Labor Relations Board (NLRB) signals a shift in enforcement posture. On February 27^th, National Labor Relations Board (NLRB) General Counsel Crystal Carey issued new guidance shifting the Board’s enforcement approach. The memo directs regional offices to prioritize settlements over litigation and to reserve enhanced remedies for only the most serious or repeat violations. It also instructs NLRB regional offices to deprioritize cases based solely on the existence of potentially unlawful workplace policies unless there is evidence the policy was enforced or caused harm. The guidance shortens investigative timelines by requiring charging parties to provide supporting evidence within two weeks, limits broad document requests, and narrows the use of federal court injunctions to cases with clear preliminary evidence.

• MCAA continues monitoring implementation of the American Innovation and Manufacturing (AIM) Act of 2020, which directs the Environmental Protection Agency (EPA) to phase down production and consumption of hydrofluorocarbons (HFCs) by 85% by 2036. Notably, a company called Choice Refrigerants, a Georgia-based refrigerants manufacturer, represented by the New Civil Liberties Alliance (NCLA) and the nation’s preeminent Supreme Court lawyer, Paul Clement, asked the U.S. Supreme Court to review a challenge to the AIM Act and the EPA’s implementation of it. The U.S. Court of Appeals for the D.C. Circuit previously upheld the law and the EPA’s implementation, finding that allocating market share under the phasedown is largely a technical matter within the agency’s discretion. In its petition for review, Choice Refrigerants argues the statute violates the U.S. Constitution’s nondelegation doctrine and the legislative vesting clause by allowing EPA to determine how a shrinking HFC market is divided among companies without meaningful congressional guidance. Choice Refrigerants is seeking amicus briefs to support its request for review in the U.S. Supreme Court. If review is granted, interested parties will have a chance to file amicus briefs on the legality of the AIM Act.

Congress

• Last Wednesday, the MCAA policy team was busy with the House Education and the Workforce Subcommittee on Higher Education and Workforce Development’s hearing entitled, “Building an AI Ready America: Strengthening Employer-Led Training,” examining how employer-led training programs, apprenticeships, and workforce systems can prepare workers for AI-driven changes in the labor market. This followed separate House Education and Workforce Subcommittee hearings on AI and the workforce that we detailed in our February 9 and February 16 reports. During the hearing, Republicans emphasized that AI is already transforming jobs across the economy and argued that workforce programs must better align with employer demand. Republicans advocated expanding earn-and-learn models including, but not limited to, registered apprenticeships, and prioritized skills-based hiring over traditional degree pathways. Democrats agreed that workforce development is critical but warned that the system remains underfunded and urged Congress to revive the bipartisan Workforce Innovation and Opportunity Act (WIOA) reauthorization negotiated last Congress rather than pursue partisan changes, including proposals to move adult education programs from the Department of Education to the Department of Labor. Tim House of the Wireless Infrastructure Association testified that the rapid expansion of AI infrastructure is intensifying demand for skilled workers and argued that employer-led registered apprenticeship programs are essential to building the workforce needed to deploy and maintain next-generation connectivity. Dr. Scott Ralls of Wake Technical Community College highlighted the role community colleges play in preparing workers for AI-driven industries, describing efforts to embed AI literacy across technical programs and expand community college apprenticeship partnerships in fields like HVAC, building automation, and electrical systems where demand is rising alongside the deployment of AI and electrification. Brent Parton of CareerWise USA emphasized that youth apprenticeships and other employer-led training models can help workers adapt to changing entry-level job requirements. He asserted that apprenticeship programs should be expanded earlier in students’ education and supported through modernization of federal workforce programs. Mary Kate Morley Ryan of Accenture stressed that AI is rapidly shortening the life cycle of workplace skills and called for continuous upskilling, stronger employer-education partnerships, expanded work-based learning programs, and modernization of WIOA to reduce administrative barriers and support apprenticeship and incumbent worker training.

• Last Monday, the Senate voted 84-6 on the motion to proceed to consideration of a compromise housing package entitled the 21st Century ROAD to Housing Act to address supply and affordability issues. It combines House- and Senate-passed housing bills. The bill would expand federal support for housing production by adding new construction as an eligible activity under the Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) program. It increases incentives for development in Opportunity Zones (e.g., low-income census tracts designated for tax-advantaged investment and development) and establishes multiple grant and pilot programs to encourage local housing production, redevelopment of vacant buildings, and infrastructure improvements tied to new housing supply. MCAA engaged on this legislation to ensure the bill preserves federal labor standards by specifying that prevailing wage requirements under Section 110 of the Housing and Community Development Act of 1974 apply to infrastructure improvements funded through the program and may not be waived by the HUD Secretary. We are also supportive of permitting reform provisions in the legislation that would streamline environmental reviews and scale back National Environmental Policy Act (NEPA) requirements for certain housing projects, similar to concepts in the MCAA-advocated SPEED Act. The package also includes a provision restricting certain purchases of single-family homes by large institutional investors that own 350 or more homes, while allowing exemptions for build-to-rent developments, renovation programs, and rent-to-own housing initiatives. As the Senate began debate on the bill, the National Association of Home Builders (NAHB) announced its opposition to the measure focusing on the White House-backed provision targeting institutional investors. NAHB argues that, as currently drafted, the language could “undermine the production of purpose-built single-family rental housing, which often serves families seeking rental homes with three or more bedrooms.” The Senate will resume consideration of the legislation, including amendments, this week.

• There were several developments in races for the U.S. Senate last week. In Texas, State Rep. James Talarico (D) defeated Rep. Jasmine Crockett (D-TX) in the state’s Democratic U.S. Senate primary. Talarico will face the winner of a Republican runoff on May 26^th between Sen. John Cornyn (R-TX) and Texas Attorney General Ken Paxton (R) after neither candidate secured a majority in last Tuesday’s GOP primary. Cornyn finished slightly ahead of Paxton in the first round. Following the Republican primary results, President Trump posted that the Texas GOP primary “cannot…be allowed to go on any longer,” saying he plans to endorse one of the candidates and will ask the other to drop out in order to unify the party ahead of the general election. It is generally believed that Trump plans to endorse Cornyn. Paxton suggested he would consider dropping out of the race if Senate Republicans eliminated the filibuster and passed the SAVE Act requiring proof of citizenship to register to vote, while Trump warned that refusing to step aside after an endorsement “would be bad for him.” In North Carolina, former Gov. Roy Cooper won the Democratic primary for U.S. Senate and will face Republican Michael Whatley in the race to replace retiring Sen. Thom Tillis (R-NC). In Montana, Sen. Steve Daines (R-MT) announced he will not seek re-election just minutes before the state’s filing deadline, effectively clearing the Republican field for Montana U.S. Attorney Kurt Alme, who filed to run shortly before the deadline and quickly secured endorsements from both Daines and President Trump. In Louisiana, Treasurer John Fleming (R), a candidate in the GOP primary for the Senate seat currently held by Sen. Bill Cassidy (R-LA), accused allies of Rep. Julia Letlow (R-LA) of attempting to push him out of the primary race by offering him a senior position at the Centers for Disease Control and Prevention (CDC), an allegation denied by former Trump CDC official Ralph Abraham, who recently joined Letlow’s campaign as chair. And in Georgia, the conservative Club for Growth PAC endorsed Rep. Mike Collins (R-GA) in Georgia’s crowded Republican U.S. Senate primary against incumbent Sen. Jon Ossoff (D-GA).

• There were several developments in races for the U.S. House last week. In Texas, State Rep. Steve Toth (R) defeated incumbent Rep. Dan Crenshaw (R-TX) in the GOP primary in the 2nd Congressional District, making Crenshaw the first Republican incumbent to lose a primary this cycle. Democratic incumbents Rep. Al Green (D-TX) and Rep. Christian Menefee (D-TX) advanced to a May runoff in the 18th Congressional District. In the 33rd Congressional District, Rep. Julie Johnson (D-TX) was forced into a Democratic runoff against former Rep. Colin Allred (D-TX). And in the 23rd Congressional District, Rep. Tony Gonzales (R-TX) announced he will not seek reelection after facing mounting controversy, including a congressional finding of “substantial reason to believe” he had a sexual relationship with a subordinate who later committed suicide and a referral to the House Ethics Committee. Gonzales acknowledged the relationship last week and said he will serve out the remainder of his current term, clearing the way for Republican candidate Brandon Herrera to advance to the November general election. In North Carolina, incumbent Rep. Valerie Foushee (D-NC) defeated Durham County Commissioner Nida Allam in the Democratic primary for North Carolina’s 4^th Congressional District. In the state’s 1st Congressional District, former Pentagon official and retired Army colonel Laurie Buckhout won the GOP primary and will face incumbent Rep. Don Davis (D-NC) in November after Republicans redrew the district to make it more favorable to the GOP. In California, Rep. Kevin Kiley (R-CA) announced he will run for California’s newly redrawn 6^th Congressional District rather than seek a safer bid in the more Republican-leaning 5^th District, avoiding a potential incumbent-versus-incumbent primary against Rep. Tom McClintock (R-CA). In Montana, Rep. Ryan Zinke (R-MT) announced he will not seek reelection to a fourth term in Montana’s 1st Congressional District but will serve out the remainder of his term. In Utah, Rep. Burgess Owens (R-UT) announced he will not seek reelection to Utah’s 4^th Congressional District after a court-ordered redistricting plan reduced Utah’s Republican-leaning House districts from four to three. And in Virginia, the state Supreme Court approved a special election to put Democrats’ redistricting plan before voters this spring, with early voting beginning on March 6 ahead of an April 21 election on a proposal expected to give Democrats 10 of the state’s 11 U.S. House seats, up from the six they currently hold.

Around the Country

• As data center development accelerates across the country, state and local officials are increasingly moving to establish regulatory guardrails governing their electricity demand, water consumption, and land-use impacts. In Pennsylvania, a state House committee last Monday advanced two bills responding to the rise in data centers, including one requiring facilities to submit annual reports on their water and electricity use and another directing the Department of Community & Economic Development to develop a model zoning ordinance to help municipalities regulate data centers. Meanwhile, a California government watchdog is urging state policymakers to establish rules governing the rapid expansion of data centers, warning that electricity demand from artificial intelligence infrastructure could drive up power costs for households. In Washington State, lawmakers last Monday defeated a sweeping bill opposed by major technology companies that would have required data centers to pay additional utility charges, comply with clean energy requirements, and curtail power use during periods of peak grid demand. At the same time, legislation is advancing in the Oklahoma state legislature that would require new “large load customers,” such as data centers, cryptocurrency mining operations, and artificial intelligence computing facilities, to secure their own electricity supply contracts and commit to covering energy infrastructure costs over a 10-year period, including posting collateral if the facility shuts down early. And at the local level, the Birmingham, Alabama City Council last Tuesday voted to impose a six-month moratorium on new hyperscale data centers requiring more than 20 megawatts of power while officials develop zoning and regulatory guidelines for the rapidly expanding industry amid concerns about electricity demand, water use, and other community impacts.

• MCAA members in Florida will be interested to know that last Thursday, the Occupational Safety and Health Administration (OSHA) cited Florida-based Hyvac Inc. for exposing workers to struck-by hazards following a fatal workplace incident at a mall expansion project in Bal Harbor Shops in August 2025. OSHA found the contractor failed to verify that HVAC piping was free of stored pressure and did not properly train employees on hazards associated with removing end caps from pressurized systems. The agency proposed $28,135 in penalties for two serious violations. This followed a separate OSHA citation last Wednesday against Florida-based PCE Petroleum Contractors Enterprises Inc. for 12 serious violations after a worker was fatally exposed to benzene and toluene while entering a fuel storage tank at a Lake Worth worksite in July 2025. OSHA found the company failed to implement required confined-space entry procedures, conduct atmospheric testing, and maintain proper respiratory and hazard communication programs for workers handling toxic chemicals. The agency proposed $60,242 in penalties, though the company has contested the citations before the Occupational Safety and Health Review Commission.

• MCAA members operating in Alaska should be aware that a federal offshore oil and gas lease sale in Alaska’s Cook Inlet Basin drew no bids, despite offering roughly 1 million acres for development. The sale was the first in a series mandated by the One Big Beautiful Bill Act, which requires multiple Cook Inlet lease sales through 2032. A simultaneous Alaska state lease sale also showed limited industry interest, receiving just one bid for a 20-acre tract totaling $600, highlighting continued weak demand for exploration opportunities in the region.

• MCAA members operating in Wyoming should know that last Tuesday, a federal district court in Washington, D.C. vacated the environmental impact statement (EIS) for the Converse County Oil and Gas Project in Wyoming, halting federal approvals for thousands of planned oil wells after finding that the Interior Department failed to fully evaluate alternatives under the National Environmental Policy Act (NEPA). Judge Tanya Chutkan ruled that the Bureau of Land Management’s (BLM) supplemental analysis did not adequately consider a phased development approach that the agency itself acknowledged could reduce greenhouse gas emissions and air quality impacts. The court concluded that the project, which is expected to include more than 5,000 wells, would produce significant emissions contributing to climate change and other environmental harms, and that vacating the EIS was necessary to ensure the project proceeds only after a more thorough environmental review. The ruling stems from litigation brought by environmental groups challenging BLM’s analysis of groundwater and other environmental impacts and could further delay development in one of the largest proposed oil drilling projects in Wyoming’s Powder River Basin.

• MCAA members operating in Indiana should be aware that last Tuesday, the Environmental Protection Agency (EPA) issued a carbon sequestration permit to One Carbon Partnership for its Cardinal Ethanol facility in Randolph County, Indiana. With this permit, One Carbon Partnership will construct a well to inject up to 450,000 metric tons of carbon dioxide per year for 30 years. One Carbon Partnership will also be required to monitor the well throughout the injection phase and for 50 years post-injection. The deep formation where the injected carbon would be permanently stored is between 3,100 and 3,659 feet beneath the surface and is protected by a 487-foot-thick confining zone composed of caprock.

• Last Tuesday, a federal judge in New York ruled that the Trump Administration cannot halt New York City’s congestion pricing program, rejecting the Department of Transportation’s attempt to revoke federal approval after the tolling system had already been implemented. The city’s Metropolitan Transportation Authority sued after the DOT moved to terminate the program, and the court found the Administration’s action was a final agency decision subject to judicial review. The congestion pricing system, which charges vehicles entering Manhattan below 60th Street during peak hours, is intended to reduce traffic and pollution while raising revenue for the MTA’s capital program that funds public transit infrastructure and construction projects. The ruling preserves a key funding stream for the MTA’s multibillion-dollar capital program, which supports ongoing transit infrastructure upgrades and construction projects. In its first year, the program generated roughly $468 million.