Archives: News Items

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, December 23, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Transition 

MCAA-Supported Labor Secretary-Designate Chavez-DeRemer Begins Hill Meetings 

Last week, President-elect Donald Trump’s MCAA-supported Labor Secretary-designate Rep. Lori Chavez-DeRemer (R-OR) began making the rounds on Capitol Hill to secure support for her nomination as the MCAA policy team continues reaching out to Senate offices in support of her nomination. As Chavez-DeRemer made the rounds on the Hill this week, Trump ally Steve Bannon sent out a warning to Republican Senators that if they do not “toe the line” and vote for Trump’s nominees “they will get a MAGA primary” in the next election. Bannon’s threat comes as incoming Senate Health, Education, Labor, and Pensions Committee Chair Bill Cassidy (R-LA) already faces a GOP primary challenge from Louisiana State Treasurer John Fleming, who launched his challenge after Cassidy publicly questioned Rep. Chavez-DeRemer’s nomination over concerns about her co-sponsorship of the Protecting the Right to Organize Act during the 118^th Congress. 

Biden Administration

Biden Designates NLRB Member Gwynne Wilcox as Chair of the New NLRB

Last Tuesday, President Joe Biden designated Gwynne Wilcox as Chair of the National Labor Relations Board (NLRB) following the Senate’s failure two weeks ago to confirm previous Chair Lauren McFerran to another five-year term. Chair Wilcox is the first Black woman to Chair the NLRB and the first Black woman to serve on the Board since its inception in 1935. She was confirmed by the Senate on September 6, 2023, for a second term ending on August 27, 2028. Prior to her appointment, Wilcox was a senior partner at Levy Ratner, P.C., a New York City labor and employment law firm, and served as Associate General Counsel of SEIU 1199 United Healthcare Workers East and as a labor representative to the NYC Office of Collective Bargaining.

EEOC Fact Sheet on Application of Federal Employment Discrimination Laws to “Wearables”

Last Thursday, the Equal Employment Opportunity Commission (EEOC) published a new fact sheet entitled “Wearables in the Workplace: The Use of Wearables and Other Monitoring Technology Under Federal Employment Discrimination Laws,” which discusses the application of federal employment discrimination laws to the use of wearable technologies (wearables) that can be used to track an employee’s location, heart rate, electrical brain activity, or fatigue. The fact sheet says that federal employment discrimination laws apply to an employer’s collection and use of information from wearables and addresses the need for employers to provide reasonable accommodations under the Americans with Disabilities Act (ADA) and the Pregnant Workers Fairness Act related to wearables. It also warns employers that using watches, rings, glasses, helmets, and other wearables to collect information about a worker’s health and biometric data may constitute a “medical examination” as defined under the ADA. Additionally, the fact sheet notes that if a wearable requires an employee to provide health information (including while setting up the device) an employer may be making “disability-related inquiries” for ADA purposes. Moreover, the EEOC explains that an employer’s improper use of information collected by wearables may raise concerns under other federal anti-discrimination laws—especially if employers use data from wearables to determine sex, age, genetic information, disability, or race to take an adverse action against an employee. The document provides examples of practices employers should avoid when directing use of wearables by their workers.

Congress

Senate Passes MCAA-Supported Water Resources Development Act, Sending Bill to Biden 

Last Wednesday, the MCAA realized a significant win as the Senate voted 97-1 to overwhelmingly pass the Water Resources Development Act (WRDA) that the MCAA and our partners in the United Association (UA) have been lobbying to enact since this summer. Sen. Mike Lee (R-UT) was the lone senator to oppose the bill, which now heads to President Joe Biden to be signed into law.

The legislation provides critical water resources infrastructure improvements, including: (1) $17 billion to the U.S. Army Corps of Engineers (USACE) for water-related infrastructure projects for flood management, ecosystem restoration, and navigation; (2) $2.1 billion for a coastal risk management system in the South Shore of Staten Island, including a levee and vertical flood wall; (3) $320 million to the USACE for design and construction of the North Feeder Stormwater Treatment Area in southern Florida; (4) $50 million to the USACE to implement studies and projects to control and reuse stormwater related to flood control efforts; (5) $200 million for water and wastewater infrastructure in San Diego County, California; and (6) $100 million for water and wastewater projects in New York. The bill also authorizes from 2025-2029: (1) $35 million in assistance to communities with decommissioned nuclear plants; (2) $50 million for workforce training grants; (3) $75 million for assistance to coal communities; and (4) $20 million for critical supply chain site development.

House Paid Leave Working Group Seeks Feedback on Bills to Expand Paid Family Leave

Last Tuesday, the bipartisan House Paid Family Leave Working Group released two discussion drafts of legislation to expand paid family leave and requested feedback on the drafts in the form of written comments that may be submitted to PaidLeave.Feedback@mail.house.gov by Friday, Janaury 10, 2025. The first bill, the Paid Family Leave Public-Private Partnerships Act, would establish a competitive grant program run by the U.S. Department of Labor as an incentive for states to establish their own paid family leave programs that utilize a public-private partnership model. Draft bill text is available here and a summary is available here. The second bill, the Interstate Paid Leave Action Network Act, is intended to coordinate and harmonize paid leave benefits across states to make it easier for people to access paid family leave and for states to connect with one another. Draft bill text is available here and a summary is available here.

House Lawmakers, As Well As Senate Democrats, Finalize Committee Leadership Rosters 

Last week, House Republicans and Democrats, as well as Senate Democrats, finalized their committee leadership assignments for the 119^th Congress, which will still need to be ratified by votes in the full House and Senate. The House Republican roster of incoming Committee Chairs is available here, the House Democratic roster of incoming Committee Ranking Members is available here, and the Senate Democratic list of Committee Ranking Members is available here. While Senate Republicans have not released their finally roster of Committee Chairs for the 119^th Congress, incoming Senate Majority Leader John Thune (R-SD) said last week that he hoped to finalize Committee assignments before the holidays, noting that “it always takes time to get those sorts of agreements.” 

Decarbonization 

As the MCAA policy team continues to engage the White House and Congress on issues surrounding decarbonization, there were several items that we wanted to make you aware of from last week:

DOE Requests Comments on Environmental Impact Statements for Three Hydrogen Hubs

Last Wednesday, the MCAA saw progress on scalable deployment of hydrogen stemming from the ongoing implementation of the Bipartisan Infrastructure Law with the Energy Department’s release of requests for comments on impact statements (EISs) for three hydrogen hubs across the country. The hydrogen hubs are: (1) the Appalachian Hydrogen Hub (in Ohio, Pennsylvania, and West Virginia); (2) the Pacific Northwest Hydrogen Hub (in Washington, Oregon, and Montana); and (3) the California Hydrogen Hub. Comments on these EISs are due by March 3, 2025 and can be submitted through the federal eRulemaking portal here using: (1) Docket No. DOE-HQ-2024-0082 for the Appalachian Hydrogen Hub; (2) Docket No. DOE-HQ-2024-0094 for the Pacific Northwest Hydrogen Hub; and (3) Docket No. DOE-HQ-2024-0087 for the California Hydrogen Hub. The requests for comment also note upcoming public meetings about each of these hydrogen hubs. 

For the Appalachian Hydrogen Hub, the Energy Department hold one virtual public scoping meeting on Thursday, January 16, 2025 from 6 p.m.–8 p.m. EST. The Department will also hold three in-person public scoping meetings on the Appalachian Hydrogen Hub. Dates, times, and locations are to be determined and will be shared no less than 15 days before the meetings along with details on how to participate in the virtual and in-person public scoping meetings on the DOE’s dedicated web page for this EIS: DOE/EIS-0569: Appalachian Hydrogen Hub | Department of Energy.

For the Pacific Northwest Hydrogen Hub, the Energy Department will hold one virtual public scoping meeting on Wednesday, January 22, 2024 at 6 p.m.–8 p.m. Pacific Time. The Department will also hold two in-person public scoping meetings. Dates, times, and locations for the in-person meetings are to be determined no less than 15 days before the meetings. Detailed information for registering and participating in the virtual and in-person public scoping meetings will be available on the DOE’s web page for this EIS: DOE/EIS-0571: Pacific Northwest Hydrogen Hub | Department of Energy.

For the California Hydrogen Hub, the Energy Department will hold one virtual public scoping meeting on Tuesday, January 28, 2025 from 4:30 p.m.–7:30 p.m. Pacific Time. The Department will also hold three in-person public scoping meetings. Dates, times, and locations and how to register and participate in the virtual and in-person meetings are to be determined and will be shared no less than 15 days before the meetings on the web page for this EIS:  DOE/EIS-0570: California Hydrogen Hub | Department of Energy. In addition, the Department will have an open virtual public meeting space available for the public. This public meeting space will open on Monday January 20, 2025, and stay open through the duration of the scoping period. 

Biden Administration Releases Its Long-Awaited Study on Liquefied Natural Gas Exports

MCAA did suffer a setback on the decarbonization front last Tuesday when the Biden Administration released its long-awaited study on liquefied natural gas (LNG) exports that was announced when the Administration paused the issuance of LNG export licenses in January 2024. The study will make it more difficult for the incoming Trump Administration to approve new export licenses and provides opponents of LNG with helpful data to contest new export permits. Specifically, the Biden Administration concluded that increases in LNG exports displace more renewable energy than coal globally and that unrestricted LNG exports would raise wholesale U.S. natural gas prices by 30%, increasing costs for the typical American household by well over $100 a year by 2050. In a media call, Biden Energy Secretary Jennifer Granholm summed up the report, saying that increasing LNG exports “would surely generate more wealth for the LNG industry, but American consumers and communities and the climate would pay the price.” The Biden Energy Department’s statement on the final analysis of authorizations for the export of LNG to non-free-trade-agreement countries is available here. While the report is final, the Department plans to publish it for a 60-day comment period “to inform decision-making going forward.”

Infrastructure Funding Continues to Flow from President Biden’s “Investing in America” Agenda

As the end of President Biden’s term draws near, MCAA has been pressing the Biden Administration to press forward with funding awards under MCAA-supported laws like the Bipartisan Infrastructure Law, the Inflation Reduction Act, and the CHIPS and Science Act. Last week the Biden Administration responded to these pleas with several significant new awards. These included a $15 billion low interest loan last Tuesday from the Energy Department’s Loan Program Office to California utility company Pacific Gas and Electric (PG&E) to support hundreds of projects that are part of the company’s Project Polaris, which includes refurbishing PG&E’s hydroelectric infrastructure and upgrading power lines to support renewable energy projects, data centers, and electric vehicle infrastructure.

Additionally, last Wednesday, the Energy Department’s Office of Clean Energy Demonstrations (OCED) announced the opening of applications for up to $1.3 billion in funding to design, construct, and operate large-scale point-source carbon capture projects and other carbon capture, utilization, and storage (CCUS) technologies. This funding is provided by OCED’s Carbon Capture Demonstration Projects Program and the Carbon Capture Large-Scale Pilot Projects Program. Specifically, OCED plans to fund up to 11 projects across three main topic areas: (1) up to $750 million for commercial-scale carbon capture demonstration projects integrated with carbon dioxide (CO2) transportation and storage infrastructure at up to one coal-fired power plant and up to two industrial facilities that advance technical maturity, reduce uncertainty in cost and performance, and increase the potential for the technology to be replicated and deployed at additional facilities; (2) up to $450 million for large-scale carbon capture pilot projects that demonstrate transformative technological advances in carbon capture, enabling increased capture efficiency, reduced cost, and improved environmental performance; and (3) up to $100 million for the planning and design of shared CO₂ transport and storage infrastructure that networks of nearby carbon capture projects can use. The full notice of funding opportunity (NOFO) is available here. OCED will host an informational webinar on the NOFO on January 15, 2025 and registration is required.

These awards issued despite an interim report from the Energy Department’s Office of the Inspector General urging the Department’s loan office to immediately halt issuing billions in loans to clean energy projects until it can ensure that contracting officers and their representatives are “complying with conflicts of interest regulations and enforcing conflict of interest contractual obligations.”

This is the last MCAA Government Affairs Update of 2024. The reports will resume January 10, 2025, after Congress reconvenes for the 119^th Congress.

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, December 16, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Transition

Senate Republicans Express Reservations About MCAA-Supported Nominee for Labor Secretary

The day after Thanksgiving, MCAA issued a statement of support for President-elect Trump’s pick for U.S. Secretary of Labor, outgoing Rep. Lori Chavez DeRemer (R-OR). In its statement, the MCAA explained that Rep. Chavez-DeRemer has worked with business and labor to support the U.S. workforce and noted that she’s been a strong advocate for the construction industry while serving as a member of the House Education and the Workforce and House Transportation and Infrastructure Committees, as well as through her membership in the Congressional Building Trades Caucus and the Congressional Apprenticeship Caucus. 

Several Senate Republicans on the Health, Education, Labor, and Pensions (HELP) Committee, however, have expressed reservations about Rep. Chavez-DeRemer’s nomination. Sen. Tommy Tuberville (R-AL) said DeRemer is “pro-union” and “checks all the boxes for the left.” Incoming HELP Committee Chair Sen. Bill Cassidy (R-LA) said, “I need to know more, because she’s pro-union and I’m from a right-to-work state” and fellow Committee member Sen. Rand Paul (R-KY) expressed similar concerns. Cassidy’s remarks came as Louisiana’s Republican State Treasurer, John Fleming, announced a primary challenge against him on December 4^th. It is unclear if this primary challenge will make Cassidy more hesitant to question the President’s nominee for Labor Secretary or cause him to double down on his concerns about her to burnish his conservative credentials. MCAA is reaching out to these and other offices to support Rep. Chavez-DeRemer.

Additional Cabinet, Independent Agency, and White House Staff Picks 

Over the last several weeks, President-elect Trump rounded out his Cabinet selections by nominating former Sen. Kelly Loeffler (R-GA) to be the next head of the Small Business Administration. Trump also announced additional sub-Cabinet-level nominees, including: (1) finance professor Michael Faulkender as Deputy Treasury Secretary; (2) former Missouri GOP Congressman and IRS critic Billy Long to lead the Internal Revenue Service; (3) former Border Patrol head Rodney Scott to lead U.S. Customs and Border Protection; (4) Caleb Vitello to run Immigration and Customs Enforcement; (5) outgoing Rep. Dan Bishop (R-NC) to be Deputy Director of the Office of Management and Budget (OMB). Trump also named additional picks to run some independent federal agencies, including the Federal Trade Commission (FTC), where he named current Commissioner Andrew Ferguson to be FTC Chair and announced plans to nominate Mark Meador, a former staffer for Sen. Mike Lee (R-UT), to become the third Republican on the FTC. The new Republican FTC majority will decide the fate of the FTC’s ruling banning non-compete clauses and whether it takes further action on “Right to Repair.”

Biden Administration

MCAA has been urging the Biden Administration to prioritize the release of funding for numerous projects under the Inflation Reduction Act. The Administration seems to be making this a priority. For example, on December 3^rd, the Interior Department announced $849 million from the Bipartisan Infrastructure Law to support 77 projects in Arizona, California, Colorado, Idaho, Montana, New Mexico, North Dakota, Oregon, South Dakota, Utah and Washington State to improve water conveyance and storage, increase safety, improve hydropower generation, and provide water treatment. A full list of projects awarded funding under this announcement is available here.

Congress

Razor Thin GOP House Majority in 119^th Congress

With all 2024 races called, the House of Representatives will have a Republican majority of 220 seats compared to 215 for Democrats in the 119^thCongress. When the next Congress begins, the House Republican majority will immediately shrink because Rep. Matt Gaetz (R-FL), who withdrew as Trump’s nominee for Attorney General, said he will not take his seat despite winning reelection in November. Moreover, President-elect Trump selected Rep. Michael Waltz (R-FL) to be his National Security Advisor—a job that does not require Senate confirmation—and he is expected to depart for the Administration when Trump is sworn in on January 20^th. This will leave Republicans with a majority of 218 to 215, but it will drop to 217 to 215 (a one seat majority) when Trump’s pick for United Nations (UN) Ambassador, Rep. Elise Stefanik (R-NY), is confirmed by the Senate. The special elections to fill the Florida congressional seats of Gaetz and Waltz (which are districts Republicans are strongly favored to retain) will not be held until April 1, 2025. And New York’s Democratic Governor cannot set a date for a special election to fill Rep. Stefanik’s seat until she is confirmed by the Senate and resigns from the House. The thin margin House Republicans will have throughout most of the first quarter of 2025 is creating growing concern in the GOP that President-elect Trump’s plans for major legislative victories in his first 100 days are in peril. And the public arguments of the last two weeks between Senate GOP leaders and their House counterparts about how best to advance Trump’s legislative priorities is exacerbating concerns about how productive the first 100 days will be beyond the expected flood of executive actions Trump plans launch as soon as he is sworn in as president.

Senate Democratic Leadership for the 119^th Congress

On December 3^rd, Senate Democrats held their leadership elections for the 119^th Congress and nominated Sen. Chuck Schumer (D-NY) to remain Senate Democratic Leader and Sen. Dick Durbin (D-IL) to remain Senate Democratic Whip. In addition to retaining their two top leaders, Democrats promoted Sen. Amy Klobuchar (D-MN) to Democratic Steering and Policy Committee Chair and Sen. Cory Booker (D-NJ) to be Strategic Communications Committee Chair. Sens. Elizabeth Warren (D-MA) and Mark Warner (D-VA) were retained as Vice Chairs of the Democratic Caucus. Rounding out the Senate Democratic leadership are: (1) Sen. Bernie Sanders (I-VT) as Outreach Chair; (2) Sen. Tammy Baldwin (D-WI) as Senate Democratic Conference Secretary; (3) Sen. Catherine Cortez Masto (D-NV) as Vice Chair of Outreach; (4) Sen. Brian Schatz (D-HI) as Deputy Democratic Conference Secretary; and (5) Sen. Chris Murphy (D-DE) as Deputy Democratic Conference Secretary.

Democrats expect that retaining seasoned veterans at the top of their leadership will give them an advantage in procedural maneuvering against a Republican caucus that has new top leaders in Sens. John Thune (R-SD) and John Barrasso (R-WY).

House Committee Leadership for the 119^th Congress

Last week, the House Republican and Democratic Steering Committees named their choices for Committee Chairs and Ranking Members for the 119^thCongress. Of interest to the MCAA, last Thursday, the House GOP Steering Committee selected Rep. Tim Walberg (R-MI) as the next Chair of the House Education and the Workforce Committee. Walberg defeated Rep. Burgess Owens (R-UT) and will succeed current Chair Rep. Virginia Foxx (R-NC).

In addition to nominating Rep. Walberg, the GOP Steering Committee named their choices for several other committee chairs that will be important to MCAA in the 119^th Congress, including: (1) Rep. Sam Graves (R-MO) to continue as Chair of the House Transportation and Infrastructure Committee; (2) Rep. Brett Guthrie (R-KY) as Chair of the House Energy and Commerce Committee; (3) Rep. Bruce Westerman (R-AR) to continue as Chair of the House Natural Resources Committee; (4) Rep. Jason Smith (R-MO) to continue as Chair of the House Ways and Means Committee; (5) Rep. Tom Cole (R-OK) as the next Chair of the House Appropriations Committee; (6) Rep. Mark Green (R-TN) to continue as Chair of the House Homeland Security Committee; and (7) Rep. James Comer (R-KY) to continue as Chair of the House Oversight and Accountability Committee.

Separately, the House Democratic Steering and Policy Committee began naming their choices for Committee Ranking Democratic Members in the 119^th Congress. Rep. Frank Pallone (D-NJ) will continue as Ranking Member of the House Energy and Commerce Committee. Rep. Rosa DeLauro (D-CT) will continue as Ranking Member of the House Appropriations Committee. Rep. Richard Neal (D-MA) will continue as Ranking Member of the House Ways and Means Committee. Rep. Jim McGovern (D-MA) will continue as Ranking Member of the House Rules Committee. The House Democratic Steering Committee will also need to decide the contested races to lead several other committees that matter to MCAA, including the races for: (1) Ranking Member of the House Natural Resources Committee between Rep. Melanie Stansbury (D-NM) and Rep. Jared Huffman (D-CA); and (2) Ranking Member of the House Oversight and Accountability Committee between Rep. Alexandria Ocasio-Cortez (D-NY) and Rep. Gerry Connolly (D-VA).

House Passes MCAA-Supported Water Resources Development Act (WRDA)

MCAA is pleased to report that last Wednesday, the House voted 399-18 to overwhelmingly pass the bipartisan, bicameral agreement to reauthorize the Water Resources Development Act (WRDA), which the MCAA, the UA have been lobbying to pass since earlier this summer. The legislation is now pending in the Senate and Majority Leader Schumer (D-NY) has pledged to pass it week before the end of the 118^th Congress on Friday. 

This legislation provides critical water resources infrastructure improvements, including: (1) $17 billion to the U.S. Army Corps of Engineers (USACE) for water-related infrastructure projects related to flood management, ecosystem restoration, and navigation; (2) $2.1 billion for a coastal risk management system in the South Shore of Staten Island, including a levee and vertical flood wall; (3) $320 million to the USACE for design and construction of the North Feeder Stormwater Treatment Area in southern Florida; (4) $50 million to the USACE to implement studies and projects to control and reuse stormwater related to flood control efforts; (5) $200 million for water and wastewater infrastructure in San Diego County, California; and (6) $100 million for water and wastewater projects in New York. The bill would also authorize from 2025-2029: (1) $35 million in assistance to communities with decommissioned nuclear plants; (2) $50 million for workforce training grants; (3) $75 million for assistance to coal communities; and (4) $20 million for critical supply chain site development. 

A House Transportation and Infrastructure Committee summary of the bill is available here. A more detailed section-by-section summary is available here, and the bill text is available here.

House and Senate Release 2025 Legislative Calendars

Next Congress, both the House and Senate plan to be in session many more days than they were during the 118^th Congress. On December 4^th, House Majority Leader Steve Scalise (R-LA) released the House legislative calendar for 2025, which envisions the House being in session for 33 weeks next year. On December 5^th, the Senate released its legislative calendar for 2025, featuring 36 weeks in which the chamber will be in session. According to the Senate calendar, Senators will be working five-day weeks, including Friday votes, straight through March 17^th. 

MCAA Issues and Interests 

Registered Apprenticeship

Biden DOL Withdraws Apprenticeship Rulemaking 

On November 27^th, the MCAA realized a significant lobbying victory when the Labor Department’s Employment and Training Administration (ETA) withdrew its final rule on “National Apprenticeship System Enhancements” from White House Office of Information and Regulatory Affairs review. The withdrawal means the rulemaking will not be finalized. MCAA has been lobbying against this rule since it was proposed and joined the UA in submitting joint comments opposing the key elements of the rule in March.

Safety and Health 

OSHA Issues Final Rule on PPE in Construction 

Last Thursday, the Occupational Safety and Health Administration (OSHA) published its final rule on Personal Protective Equipment (PPE) in Construction that the MCAA and the other union contractor associations that comprise the Construction Employers of America have been pushing the Biden Administration to finalize. The final rule revises OSHA’s PPE in construction regulations to “explicitly require” that PPE must fit properly on affected employees. The final rule sets a standard identical to the longstanding proper fit requirement applicable to general industry and maritime. It is effective on January 13, 2025. 

MCAA Developing Comments on OSHA Heat Injury and Illness Rule—Comment Deadline Extended 

MCAA continued working with the Construction Industry Safety Coalition (CISC) on comments expressing our concerns about OSHA’s proposed rule on heat injury and illness in indoor and outdoor work settings. On December 2^nd, OSHA announced that it has extended the comment deadline from December 30, 2024 to January 14, 2025. With the final comment deadline coming six days before the end of the Biden Administration on January 20, 2025, the fate of this rule will be left to the incoming Trump Administration. OSHA also announced that it would hold an informal hearing on the proposed rule well into the Trump Administration on June 16, 2025 at 9:30am ET. Additional information on how to access the informal hearing will be made available on the OSHA website here. Those interested in testifying or questioning other witnesses must submit a Notice of Intention to Appear here on or before May 2, 2025. 

Decarbonization

IRS Releases Final Rules on Section 48 Clean Energy Tax Credit

Last Thursday, the Internal Revenue Service (IRS) released its final rule for the Section 48 “Energy Credit”—also known as the Investment Tax Credit (ITC)—to provide clean energy project developers clarity and certainty to undertake major investments in clean power infrastructure. Among other things, this final rule: (1) clarifies that hydrogen energy storage property does not need to store hydrogen that is solely used for energy and not for other purposes; (2) clarifies which property is qualified biogas property; (3) clarifies that the owner of underground coils can claim the ITC if they own at least one heat pump used in conjunction with the coils; and (4) revises the definition of energy project to require ownership of the energy properties. The MCAA lobbying team provided a detailed memorandum on the final rule to the Government Affairs Committee.

EPA Final Rule Regarding the Phasedown of HFCs in the Variable Refrigerant Flow Air Conditioning Subsector 

As MCAA lays groundwork to get the incoming Trump Administration to reconsider some of the decarbonization rules issued by the Biden Administration, last Thursday, the Biden EPA published a final rule to amend the deadlines for compliance with the “Technology Transitions” regulations under the American Innovation and Manufacturing (AIM) Act in connection with the variable refrigerant flow air conditioning sector. Variable refrigerant flow (VRF) and variable refrigerant volume (VRV) systems are direct expansion multi-split systems that incorporate a split system air conditioner or heat pump incorporating a single refrigerant circuit that is a common piping network to two or more indoor evaporators, each capable of independent control, or compressor units. Under the final rule, the EPA is extending the installation compliance date for new VRF systems to January 1, 2027. The agency is also providing until January 1, 2028, for the installation of certain new VRF air conditioning and heat pump systems if a building permit that approves the use of a HFC or a HFC blend in such a system was issued prior to October 5, 2023, provided that the system uses components manufactured in the United States or imported into the United States prior to January 1, 2026. The EPA asserts that this action will “mitigate the potential for stranded inventory of variable refrigerant flow systems.” The final rule is effective beginning January 13, 2025. 

Biden Administration to Finalize Section 45Z Guidance Before the End of Biden’s Term

In the course of our work on decarbonization, the MCAA lobbying team was told that the Biden Treasury Department anticipates issuing guidance regarding the Section 45Z, Clean Fuel Production Credit before the end of President Biden’s term. The Section 45Z credit is designed to incentivize the domestic production of fuels with 50% lower lifecycle greenhouse gas emissions than petroleum. The tax credits are seen as potentially significant sources of revenue for biofuels producers and are intended to help spur the production of sustainable aviation fuel.

DOE Report Discusses How to Reduce Cost of Producing Clean Hydrogen through Electrolysis

Because the MCAA has been a consistent advocate of developing cost-effective hydrogen as an alternative source of energy, we got early notice that the Energy Department released a report on December 4^th highlighting ways to reduce the cost of producing clean hydrogen through electrolysis. The report, entitled “Hydrogen Shot: Water Electrolysis Technology Assessment,” presents an assessment of key electrolysis technologies, including the status of the technology and potential approaches for realizing the significant cost reductions needed to achieve the Administration’s Hydrogen Shot goal of reducing clean-hydrogen production costs to $1 per kilogram. The report is the second of three assessments of clean-hydrogen production pathways. The first report, “Hydrogen Shot Technology Assessment: Thermal Conversion Approaches,” examines hydrogen production processes that use heat to convert fossil and/or waste feedstocks with carbon capture and sequestration. The third and final report in this series will provide similar technology assessments of hydrogen production from advanced pathways, which include processes that use sunlight to directly split water without the use of electricity. The report comes as MCAA is lobbying to retain the hydrogen tax credit program and prevent it from being used to pay for tax cuts Congress will consider next year.

Broad Support for the Nuclear Tax Credits 

Our lobbying to preserve the nuclear tax credits has revealed bipartisan support for retaining them. In speaking with the Trump transition team, we sense that one area of continuity between the Biden and Trump Administrations may be support for nuclear power. We are not alone in this view. It is giving companies the confidence to announce major plans to develop nuclear power. For example, on December 2^nd, GE Vernova announced plans to deploy as many as 57 of its small modular BWRX-300 nuclear reactors across the United States, Canada, the United Kingdom, and Europe by 2035 to meet the surging electricity demand with these less expensive nuclear plants. On December 3^rd, Facebook parent company Meta issued a Request for Proposal (RFP) seeking developers that can bring nuclear reactors providing one to four gigawatts of power online starting in the early 2030s to support data centers and the communities around them. The plans for more nuclear power come as nuclear experts warn that as more data centers are built in the U.S. to accommodate the rise of artificial intelligence, more natural gas will be needed in the short term as power demand is “rising so fast” that gas will need to serve as a bridge form of energy until small, modular reactors and larger nuclear plants can be built and brought online. 

In related news, last Wednesday the Energy Department (DOE) announced that it updated the Federal Energy Management Program’s (FEMP) Best Practices Guide for Energy-Efficient Data Center Design, a data center design guide that focuses on the new or improved technologies that have emerged to make data centers as energy-efficient as possible, with priorities on reusing waste heat and maximizing the use of energy drawn from renewable systems on-site or within the grid region. The guide expands on sections focused on how to improve the efficiency of electrical systems, air- and liquid-cooling systems, and IT equipment. This comes as executives from Exxon and Chevron said they are evaluating ways to supply lower carbon power for data center operators. In particular, Chevron is looking to add carbon capture to natural gas-fired power plants supplying data centers.

Biden Energy Department Continues Support for Nuclear in its Final Days

The Biden Energy Department (DOE) is focused on doing all it can before the Administration ends to advance nuclear power. To this end, it announced selection of six companies to sign contracts to procure low enriched uranium (LEU) for the build-out of new uranium production capacity in the United States. The companies are: (1) American Centrifuge Operating, LLC in Bethesda, Maryland; (2) General Matter, Inc. in San Francisco, California; (3) Global Laser Enrichment, LLC in Wilmington, North Carolina; (4) Louisiana Energy Services, LLC in Eunice, New Mexico; (5) Laser Isotope Separation Technologies, Inc. in Oak Ridge, Tennessee; and (6) Orano Federal Services, LLC in Bethesda, Maryland. Through these contracts, DOE will acquire LEU generated by new domestic sources, either at entirely new facilities or from projects that expand existing capacity, and all contracts will last up to 10 years with awardees receiving a minimum contract of $2 million.

In another positive development last week, the Biden Energy Department’s Loans Program Office committed to disbursing the remaining $340 billion in Inflation Reduction Act financing under the control of the Office. The Office underwrites innovative clean energy projects that are considered too risky for private investors, including advanced nuclear reactor development, large-scale carbon capture and storage projects, next-generation solar technologies, and early-stage offshore wind farms. 

Federal Contracting 

DOGE to Target Federal Contractors as Part of Cost-Cutting Mission 

As the incoming Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, begins to lay out its priorities, the MCAA policy team is working to dissuade the DOGE from weakening federal prevailing wage standards in the name of reducing costs. Musk and Ramaswamy have indicated a desire to scrutinize federal contracts and have suggested conducting large-scale audits of federal contracts during which companies would be subject to a temporary suspension of payments. Ramaswamy has also pledged “massive cuts” among federal contractors who he accused of “overbilling the government.” However, it is not yet clear how DOGE will decide which contracts to scrutinize, how it will review the contracts, or how it will determine whether to recommend any for termination or modification.  

Other Interesting Things Since Our Last Report 

Thursday, December 12^th

• The Environmental Protection Agency (EPA) announced $1.6 billion in funding from the President’s Inflation Reduction Act for 105 organizations through the Community Change Grants Program to advance local projects that reduce pollution through the replacement of water systems, increase community climate resilience, and build community capacity through workforce training programs in construction. Funding recipients under this announcement include: (1) the Energy Coordinating Agency of Philadelphia, which will provide pre-apprenticeship programs for in-demand positions in clean energy sectors such as sustainable construction, HVAC installation, and solar installation, provide assessments and whole home repairs for 189 households to make energy efficiency and other improvements, and develop a Resilience Hub in South Philadelphia to serve as a workforce development center, disaster and emergency response center, and community education space; (2) the City of Springfield, Massachusetts, which will support a workforce development program for HVAC-R technicians, convert two city-owned buildings to non-grid clean energy sources and expand their use as community resilience hubs and emergency shelter locations, invest in a community solar project, retrofit 30 one- to four-unit homes to reduce energy use and improve indoor air quality, and complete home rehabilitation projects to remove lead and other pollution hazards; (3) Washington, DC, which will invest in local workforce development to expand the number of contractors with skills and experience in multifamily housing retrofits; (4) the City of Evansville, Indiana & Welborn Baptist Foundation, Inc., which will electrify and expand the on-demand micro transit program including adopting solar power at the bus transit facilities and invest in publicly accessible EV charging infrastructure, among other things; and (5) The Working Lands Trust, Inc. & Democracy Green, which will remove lead pipes from homes and communities in low-income areas.

• The Department of Labor (DOL) released comprehensive data collected by its Occupational Safety and Health Administration (OSHA) on the more than 890,000 workplace injuries and illnesses at over 91,000 workplaces in calendar year 2023, including incident level details on the conditions and circumstances of injury and illness events. In addition, OSHA has produced a video explaining the workplace injury and illness data collected by the Injury Tracking Application, which is used by certain employers to submit injury and illness reports. 

• President-elect Trump’s economic advisors are discussing doubling the State and Local Tax (SALT) deduction from $10,000 to $20,000. But they are opposed to making the SALT deduction unlimited as some members of the New York and New Jersey congressional delegation are advocating because it would amount to “the biggest tax cut for millionaires and billionaires ever.” They think doubling the SALT deduction limit to $20,000 “would solve the problem for middle-class families in blue states” like New York, New Jersey, and California. 

• House Republicans are looking into whether pharmacy benefit manager (PBM) CVS Caremark violated federal antitrust laws by threatening independent pharmacies to keep them from using money-saving tools outside the PBM’s network. In a letter to CVS obtained by The Hill, House Judiciary Committee Chair Jim Jordan (R-OH) asked the company for documents and communications about pharmaceutical hubs, a type of digital pharmacy service that can streamline the process of accessing and managing complex, high-cost specialty medications for patients. This investigation comes as Sens. Josh Hawley (R-MO) and Elizabeth Warren (D-MA) plan to introduce legislation to break up health insurance companies that own pharmacy-benefit managers by forcing the companies to divest their PBM businesses within three years. 

Wednesday, December 11^th

• In a 49-50 vote, the Senate voted down the confirmation of National Labor Relations Board Chair Lauren McFerran to serve another five year term. McFerran’s current term ends later this month. All Republicans were joined by independent Sens. Kyrsten Sinema (I-AZ) and Joe Manchin (I-WV) in opposing McFerran in a vote that ensures the NLRB majority will swing to Republicans under the incoming Trump Administration. Following the failure of the McFerran nomination, cloture on the nomination of Republican Joshua Ditelberg to be a member of the NLRB was withdrawn. The defeat of these Biden NLRB nominees came the same day a federal judge in the District of Columbia ruled that National Labor Relations Board administrative law judges’ protections against being fired by the President violate the U.S. Constitution. The ruling is the latest in a growing split among the federal courts regarding the power of the President to fire administrative judges at the NLRB. This legal issue is central to the degree of control a presidential administration can exert over the NLRB and its interpretation and enforcement of federal labor law.

• In a two-page memo to his Senate Republican colleagues, Senator-elect Jim Banks (R-IN) urged Republican lawmakers to be more pro-worker and pro-American industry and less pro-Wall Street. Banks’ “Working Families First” roadmap says Republicans “should focus on priorities like building out access to apprenticeships and technical training or expanding Pell Grant opportunities to prepare for the workforce.” Banks also says, “Republicans owe the American people a detailed strategy to incentivize domestic investment…and elevate the industrial base to the top tier of our national defense strategy.” The key pillars are of his plan are to: (1) Fight for Working Families; (2) Strengthen American Industry; (3) Refocus the Pentagon on the Warfighter; (4) Restore Traditional Values and Stop Wokeness; (5) Put an End to the Border Crisis; (6) Defend American Workers from China; (7) Unleash U.S. Building Power; and (8) Dismantle Needless Bureaucracy. Banks goes on to urge dispensing with “red tape” that impedes “our ability to build new roads, bridges, or other vital infrastructure” adding that “smart regulatory reforms should be aimed at allowing us to make full use of our abundant natural resources and reforming our expensive and needlessly drawn-out federal permitting processes.” Banks also wants the Senate GOP to “prioritize slashing regulations so we can lower housing costs, create jobs, spur private investment, and ensure American communities can thrive.

• House Democrats’ top Super PAC, the House Majority PAC, revealed its 2026 midterm target list showing the congressional seats it is focused on taking from Republicans to capture the majority in the 2026 midterm election.

• The CDC reported that drug overdose deaths dropped a record 19.3% in the 12-month period ending July 2024 from the previous 12-month period.  

Tuesday, December 10^th

• The Commerce Department confirmed a $6.1 billion grant to Micron Technology under the President’s CHIPS and Science Act for the construction of two chip factories in Clay, New York and Boise, Idaho, as well as an expansion of an existing facility in Manassas, Virginia. Vice President Kamala Harris issued a statement on the announcement, highlighting the impact of the CHIPS and Science Act and that Micron “is building these facilities by utilizing project labor agreements and registered apprenticeship programs, which will further strengthen local economies, support workers, and ensure the construction is completed on time and within budget.” Relatedly, the Biden Office of Management and Budget (OMB) issued a blog post on a new Request for Information (RFI) to “gauge the best ways to incentivize government contractors, especially of commercial IT products and services, to scale up their use of domestically manufactured chips.” OMB explained that responses to the RFI may inform follow-on actions in support of the government-wide effort to leverage existing manufacturing capacity as well as domestically manufactured chips and components in the future.

• The American Petroleum Institute released a “5 Point Roadmap” detailing policy proposals that will realize President-elect Donald Trump’s “Drill Baby Drill” vision. It includes swiftly authorizing liquefied natural gas exports, expanding drilling on federal lands, making pipeline permitting easier, repealing strict vehicle emissions and fuel economy standards, and keeping current corporate tax rates in place.

• The National Labor Relations Board (NLRB) issued its decision in Endurance Environmental Solutions, LLC restoring the “clear and unmistakable” waiver standard, which requires employers to demonstrate that a union clearly and unmistakably waived its right to bargain over the subject of a unilaterally implemented change in working conditions. In Endurance, the NLRB overruled its 2019 decision in MV Transportation Inc. in which the NLRB had adopted the “contract coverage” test, which required the Board to examine the plain language of the parties’ collective-bargaining agreement to determine whether a unionized employer’s change in a term or condition of employment was within the compass or scope of contractual language granting the employer the right to act unilaterally. The NLRB explained that the return to the “clear and unmistakable” waiver standard better accomplishes the central statutory policy goal of the National Labor Relations Act to promote industrial peace by “encouraging the practice and procedure of collective bargaining.”

• The U.S. Department of Agriculture (USDA) announced $6.3 billion for rural and Tribal communities in 44 states to expand access to a clean and reliable electric grid and provide safe drinking water. Of this funding, the USDA is providing $5.7 billion through the Electric Infrastructure Loan and Loan Guarantee Program to help utility providers and electric cooperatives build and improve electric infrastructure and smart-grid technologies in 23 states. Examples of projects receiving funding under this announcement include: (1) $293 million to Rappahannock Electric Cooperative in Virginia to build and improve 880 miles of line, connecting more than 11,000 consumers, with nearly $160 million of this funding to be used for smart grid technologies; and (2) $432 million to Carroll Electric Cooperative Corporation in Arkansas to build and improve nearly 900 miles of line and for smart grid technologies. Separately, USDA is also investing nearly $642 million to expand access to clean and reliable drinking water, sanitary waste disposal and storm water drainage for people in 41 states through the Water and Waste Disposal Loans and Grants Program and the Solid Waste Management Grants Program. This funding announcement includes $25 million to Rock Rapids Municipal Utilities in Iowa to make improvements to its wastewater treatment facility and alleviate an imminent sanitary hazard to meet water treatment quality standards.

Thursday, December 5^th

• The Occupational Safety and Health Administration (OSHA) announced it is seeking nominations for two-year membership terms on the Advisory Committee on Construction Safety and Health (ACCSH), which consists of 15 members that advise the Secretary of Labor and the Assistant Secretary of Labor for OSHA in the formulation of standards affecting the construction industry and on policy matters arising in the administration of the safety and health provisions of the Construction Safety Act and the OSH Act. The current ACCSH membership list can be found here. The categories of ACCSH membership for which OSHA is seeking nominations are: (1) five members who are qualified by experience and affiliation to present the viewpoint of employers in the construction industry; (2) five members who are qualified to present the viewpoint of employees in the construction industry; (3) two representatives of state safety and health agencies; and (4) two public members, qualified by knowledge and experience to make a useful contribution to the work of ACCSH, such as those who have professional or technical experience and competence with occupational safety and health in the construction industry. Nomination packages are due by January 2, 2025 and should be submitted through the federal eRulemaking portal using Docket ID OSHA-2024-0002, and must include: (1) the nominee’s contact information and current employment or position; (2) the nominee’s résumé or curriculum vitae, including prior membership on ACCSH and other relevant organizations and associations; (3) the category of membership (employer, employee, public, state safety and health agency) that the nominee is qualified to represent; (4) a summary of the background, experience, and qualifications that addresses the nominee’s suitability for each of the nominated membership categories; (5) articles or other documents the nominee has authored that indicate the nominee’s knowledge, experience, and expertise in occupational safety and health, particularly as it pertains to the construction industry; and (6) a statement that the nominee is aware of the nomination, is willing to regularly attend and participate in ACCSH meetings and has no conflicts of interest that would preclude membership on ACCSH.

Wednesday, December 4^th

• Conversions of office space into residential buildings are gaining traction as office vacancy rates rise and office property valuations plunge, making the economics of conversions more viable. Over 70 conversion projects with more than 10,000 apartments have been completed this year. An additional 94 projects are under way as many cities are offering subsidies and incentives to boost conversions, which are seen as a way to revitalize depressed business districts and provide much-needed housing. 

Around the Country 

Northeast 

• On December 10^th, Environmental Protection Agency, the Justice Department, and the Pennsylvania Department of Environmental Protection announced a proposed settlement with PennEnergy Resources, LLC (PennEnergy) resolving alleged Clean Air Act and Pennsylvania Air Pollution Control Act violations, specifically by failing to capture and control air emissions from five of its oil and gas production facilities in Butler County, Pennsylvania. If accepted by the court, the consent decree specifies that PennEnergy will undertake various projects to assess, modify and improve monitoring and maintenance of vapor control systems, which are estimated to cost $1.2 million. In addition, PennEnergy also agreed to pay a $2 million civil penalty. 

• On December 8^th, Sen. George Helmy (D-NJ) resigned from the U.S. Senate, clearing the way for Sen. Andy Kim (D-NJ) to be sworn into the Senate on December 9^th. Kim has assumed office and already been named a member of the powerful Senate Banking, Housing and Urban Affairs.

• On December 3^rd, the Energy Department announced that it has closed a $303.5 million loan guarantee to Eos Energy Enterprises, Inc. to finance the construction of two state-of-the-art facilities in Pennsylvania that will be able to produce enough stationary batteries per year to meet the electricity needs of approximately 130,000 homes. These facilities will produce next-generation utility- and industrial-scale zinc-bromine battery energy storage systems in Turtle Creek, Pennsylvania. Pending additional DOE approvals and completion of an Environmental Assessment, two additional facilities in Duquesne, Pennsylvania may also be included as part of the loan guarantee. The project is expected to create and maintain up to 1,000 jobs, including both salaried employees and a manufacturing workforce unionized by the United Steelworkers.

• On December 2^nd, Greystar Real Estate Partners, the country’s largest apartment owner, opened a six-building modular apartment complex in Coraopolis, Pennsylvania, complete with a gym, amphitheater, and bocce courts. The company is also planning to build six more modular apartment communities. The modular units are assembled in Greystar’s modular factory in Knox, Pennsylvania before being shipped to the location where an apartment complex is being built. Greystar said it chose to pursue modular construction to combat what it called “chronic delays” in traditional apartment development construction.

West

• On December 9^th, Gov. Gavin Newsom (D-CA) appointed Sen.-elect Adam Schiff (D-CA) to the U.S. Senate following the resignation of Sen. Laphonza Butler (D-CA) on December 8^th. This means Schiff will serve out the remainder of Butler’s term in the 118^th Congress before being sworn in to his own full six-year term. 

• On December 4^th, the Associated Press called California’s 13^th Congressional District for Democrat Adam Gray, who defeated incumbent Rep. John Duarte (R-CA).
  
• On November 27^th, the Associated Press called California’s 45^th Congressional District for Democrat Derek Tran, who defeated incumbent Rep. Michelle Steel (R-CA). 

Northwest 

• On December 11^th, the U.S. Coast Guard issued an updated to its Notice of Availability in the Federal Register for its Programmatic Environmental Impact Statement (PEIS) regarding the expansion and modernization of Base Seattle in Washington State, which will extend its availability for public review from December 15, 2024 until January 10, 2025. The PEIS considers multiple alternatives for expansion and modernization of the Base, including the acquisition of additional land, the demolition and construction of facilities, and utility upgrades among other improvements required to support Coast Guard personnel and assets. 

• On December 11^th, the Energy Department (DOE) announced that Austin, Texas-based Aalo Atomics plans to build a new experimental reactor facility at the Idaho National Laboratory (INL) in Idaho Falls, Idaho. Aalo Atomics is developing a 10-megawatt-electric sodium-cooled microreactor inspired by DOE’s MARVEL microreactor design currently under development at INL. The company is working to optimize the reactor for mass manufacturing and plans to use existing commercial supply chains to deliver clean, low-cost heat to power everything from data centers to industrial facilities.

Midwest 

• On December 4^th, Detroit Mayor Mike Duggan (D) said that he will leave the Democratic Party to run for Michigan governor as an independent. 

• On December 2^nd, the Farmington, Minnesota City Council approved a final plat and planned unit development for Denver-based company Tract to build a $5 billion data center development that will include up to 12 data centers across some 340 acres. 

• On December 2^nd, the Energy Department announced a conditional loan of $7.54 billion to Samsung SDI Co. Ltd. and Stellantis NV to construct battery manufacturing plants in Indiana. The loan would fund as many as two lithium-ion battery cell and module manufacturing plants in Kokomo, Indiana for use in electric vehicles manufactured by Stellantis.

• On November 27^th, the Associated Press called Iowa’s 1^st Congressional District for incumbent Rep. Mariannette Miller-Meeks, who defeated Democrat Christina Bohannon. 

Southeast

• On December 9^th, the National Aeronautic and Space Administration awarded an eight-year, $823 million contract to Nova Space Solutions to provide facility and other support services—including facility operations, maintenance, and engineering support—at the John C. Stennis Space Center in Mississippi and Marshall Space Flight Center’s Michoud Assembly Facility in Louisiana.  

• On December 9^th, Kentucky Gov. Andy Beshear (D) was elected Chair of the Democratic Governors Association for 2026. Beshear will serve as vice chair in 2025, when Kansas Gov. Laura Kelly will continue as the group’s chair. 

• On December 8^th, President-elect Trump’s daughter-in-law Lara Trump resigned as co-chair of the Republican National Committee amid speculation that she could be named to replace Florida Sen. Marco Rubio (R), who has been nominated to be Trump’s Secretary of State.

Southwest

• On December 11^th, President-elect Trump tapped former Arizona gubernatorial and U.S. Senate candidate Kari Lake to lead Voice of America, a congressionally funded broadcaster than provides independent news reporting around the world. 

• On December 10^th, an administrative law judge with the National Labor Relations Board ruled that Honeywell, Inc. subsidiary National Technology and Engineering Solutions of Sandia LLC (NTESS), which operates Sandia National Laboratories in Albuquerque, New Mexico, violated federal labor law by stopping union dues deductions and refusing to provide wage step increases to eligible employees. The case stems from stalled negotiations between NTESS and an affiliate of the Office & Professional Employees International Union, leading to the first time that a collective bargaining agreement had expired without either an agreement to extend or a new agreement in place. The company relied on a decision from the Trump-era NLRB that permitted employers, after a contract ended, to stop taking dues from workers’ paychecks and transferring them to unions.

Alaska and Hawaii

• On December 9^th, the Interior Department’s Bureau of Land Management issued a Notice of Sale to auction oil and gas drilling rights in 400,000 acres of the Arctic National Wildlife Refuge in northern Alaska—the smallest amount possible under federal law. The auction is one of two sales that Congress mandated in 2017 as an offset for the Tax Cuts and Jobs Act.