MCAA Government Affairs Update for July 15, 2024: 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 Friday, July 12, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

MCAA Issues and Interests 

Project Labor Agreements

MCAA Joins CEA in Letter Defending Project Labor Agreements

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

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

Davis-Bacon Prevailing Wage

District Court Partially Enjoins Davis-Bacon Modernization Rule

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

Registered Apprenticeship

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

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

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

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

Independent Contractors and Misclassification of Workers

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

Pension Reform

Biden Nominates Deva Kyle to Be Next PBGC Director 

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

House Ed/Workforce Subcommittee Hearing on EBSA with Administrator Gomez

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

Heat Injury and Illness Rulemaking 

White House Concludes Review of Heat Injury and Illness Proposed Rule

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

Decarbonization

President Biden Signs ADVANCE Act into Law

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

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

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

Other Interesting Things Since Our Last Report 

Week of July 8 – July 12, 2024

Thursday, July 11^th

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

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

Wednesday, July 10^th

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

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

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

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

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

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

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

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

Tuesday, July 9^th

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

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

Week of July 1 – July 5, 2024

Friday, July 5^th

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

Wednesday, July 3^rd

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

Tuesday, July 2^nd

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

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

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

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

Week of June 24 – June 28, 2024

Friday, June 28^th

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

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

Thursday, June 27^th

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

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

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

Wednesday, June 26^th

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

Tuesday, June 25^th

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

Monday, June 24^th

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

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

Around the Country 

Northeast 

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

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

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

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

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

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

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

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

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

West

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

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

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

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

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

Northwest 

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

Midwest 

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

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

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

Southeast

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

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

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

Southwest

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

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

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

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

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

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