From the Swamp to Seattle

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1 From the Swamp to Seattle (Federal Legislative and Regulatory Overview) AGC of Washington October 17, 2018 Jordan Howard Director of Federal & Heavy Construction Associated General Contractors of America

3 Broad Overview of the Environment in Washington Trump is shaking things up without developing a clear plan. The regulatory machine is being retooled. Congress has rolled back regulations Priorities?

Advocacy Challenges Thin Republican majorities Freedom Caucus U.S. system built to force compromise Checks and balances Senate filibuster requires 60 votes.

4 Advocacy Challenges Thin Republican majorities Freedom Caucus U.S. system built to force compromise Checks and balances Senate filibuster requires 60 votes. Polarization on left and right makes compromise difficult. Lack of delegation from President Trump Trump reviews applicants for top levels and third tier employees.

6 AGC of America Advocacy Goals for Top priority issues: Infrastructure Investment Environmental Permitting Reform Workforce Development Prior Approval for PAC Other issues: Civilian BRAC Composite Plans Contractor Blacklisting Procurement Reform Project Labor Agreements Regulatory Reform Silica

7 Infrastructure in 2019?

8 Infrastructure Investment Surface Transportation Current Funding $941 B Solutions Gap Total Needs: AGC Solutions $1.1 T $2.042 T $545 to 613B Highway Trust Fund: Increasing the gas tax by 20 cents would raise $340 billion over 10 years. Private Activity Bonds (PABs): Increasing the volume cap for transportation PABs by $5 billion would result in an additional $19 billion in investment. Dedicate Partial Revenue from Repatriation to Surface Transportation $125 billion Dedicate 15% of Customs Revenue to Infrastructure Investment $58.3 billion $100 Annual Registration Fee on Electric Cars, $50 on Hybrid Electric $2.971 billion One Cent Car and Four Cent Truck Vehicle Mile Traveled Fee $408 billion

10 AGC DE-REGULATORY HIGHLIGHTS U.S. DEPARTMENT OF LABOR REPEALED: Obama OSHA Rule that extends statute of limitations from 6 to 66 months for injury and illness record keeping rules REPEALED: Obama Blacklisting Rule for Federal Contractors SUSPENDED: Obama Overtime Rule doubling salary threshold RESCINDED: Obama Persuader Rule RESCINDED: Obama s Guidance Granting Walk Around Rights for Unions At Open Shop Jobsites RESCINDED: Withdrawal of 2015 and 2016 Guidance on Joint Employment and Independent Contractors RESCINDED: The Obama Persuader Rule IN QUESTION: OFCCP s Audit Selection Policy for Construction NATIONAL LABOR RELATIONS BOARD UNDER REVIEW: Joint Employer Standard (Proposed Rule) UNDER REVIEW: Ambush/Quickie Election (Proposed Rule) EQUAL EMPLOYMENT OPPORUNITY COMMISSION SUSPENDED: Obama Revised EEO-1 Report requiring contractors to report all employees comp. data and aggregate hours worked by race, ethnicity and gender within 12 pay bands and 10 job categories U.S. DEPARTMENT OF TRANSPORTATION WITHDRAWN: Local Hiring Proposed Rule and Pilot Program RESCINDED: National Performance Management relating to GHG U.S. ENVIRONMENTAL PROTECTION AGENCY UNDERWAY: Repeal & Replace of WOTUS Rule SUSPENDED: Pursuit to revise stormwater regulations governing postconstruction discharges SUSPENDED: Lead paint work practice rules for public/commercial buildings RESCINDED: Sue and Settle Policy w/ Environmentalists RESCINDED: Obama directive establishing preference for compensatory mitigation where unavoidable adverse impacts may occur. RESCINDED: NEPA Guidance encouraging agencies to quantify direct and indirect GHG emissions for construction projects during NEPA Review BLOCKED: A new prevention rule for hazardous substances U.S. DEPARTMENT OF THE INTERIOR WITHDRAWN: Obama policies requiring more mitigation than required by the Endangered Species Act; that of net conservation gain or no net loss of natural resources U.S. DEPARTMENT OF THE TREASURY WITHDRAWN: Rule eliminating Estate Tax valuation discounts for family members receiving interest in a family controlled business. U.S. DEPARTMENT OF JUSTICE NULLIFIED: Policy actively seeking to hold individuals criminal liable for company s environmental violations

12 Environmental Permitting & Review

13 AGC REGULATORY WORK U.S. DEPARTMENT OF COMMERCE Addressing Steel & Aluminum Tariffs Evaluating Tariffs on Chinese Construction Products and Materials U.S. DEPARTMENT OF LABOR New Apprenticeship Rule Reevaluating Youth Laws from Workforce Development Perspective Finalizing Crane Operator Certification Updating Existing Overtime Rules Updating and Reforming Davis-Bacon X Revisiting Federal Contractor Paid Sick Leave Rule Expansion of Association Health Plans Expansion of Retirement Plans U.S. DEPARTMENT OF TRANSPORTATION Modernizing Disadvantaged Business Enterprise Program Revisiting Agency s P3 Documents to Better Consider and Account for Contractor Risk Revising Commercial Truck Driver Hours of Service Rules Limiting Expansion of Buy America & Ensuring Waiver Process Works U.S. DEPARTMENT OF THE TREASURY Ensuring new regulations issued as a result of new Tax Reform Law work for Construction Contractors (199A Pass Thru Deduction) U.S. ENVIRONMENTAL PROTECTION AGENCY Preventing EPA from regulating stormwater discharges to groundwater under the Clean Water Act through the National Pollutant Discharge Elimination System Permit Working to ensure that revisions to Ozone and NAAQs standards/rules do not put areas at risk of non-attainment, jeopardizing federal-aid transportation funding U.S. ARMY CORPS OF ENGINEERS Improving admin. of the Clean Water Act 404 Permitting Streamlining Rivers & Harbors Act 408 Permission Process U.S. DEPARTMENT OF THE INTERIOR Modifying rules regarding critical habitats under the Endangered Species Act Addressing Obama-era mitigation policies Revisiting interpretation of Migratory Bird Treaty Act that criminalizes incidental takes of migratory birds/nests/eggs. U.S. DEPARTMENT OF JUSTICE Pressing for action against state and local govts that blacklist border wall construction contractors

14 Reform Environmental Permitting AGC message: Performing sequential and duplicative environmental reviews after the NEPA Record of Decision results in massive schedule, budget, and legal hurdles Merge the NEPA review process and the Clean Water Act Section 404 permitting process A reasonable and measured approach to citizen suit reform could prevent misuse of environmental laws

16 Successes Budget Agreement Appropriation Bills (1 st time in 20 years) NDAA FAA Reauthorization WRDA Disaster Recovery Opioids Bill

Disaster Relief Bill $89.3 billion for emergency supplemental disaster relief. $17.398 Billion to USACE for its restoration efforts in states impacted by recent disasters.

4 Billion in areas impacted by recent storms $4.

19 Disaster Relief Bill $89.3 billion for emergency supplemental disaster relief. $ Billion to USACE for its restoration efforts in states impacted by recent disasters. USACE Breakdown $15 Billion for the USACE Construction Account for repair to USACE projects, plus flood and storm damage reduction, including shore protection. $10.4 Billion in areas impacted by recent storms $4.5 Billion is to construct flood risk measures in areas NOT impacted by recent storm/hurricane events $608 Million for dredging and repair of navigation facilities (Operation & Maintenance) $770 Million for dredging and repair to USACE facilities (Mississippi River & Tributaries) $370 Million for eligible repairs $400 Million for construction of flood & storm damage reduction projects

Water Resources Development Act The bill authorizes 12 Chief s Reports, including one that will be funded by the Inland Waterways Trust Fund. Rehabilitation of USACE constructed dams.

Directs the National Academy of Sciences (NAS) to evaluate the current organizational structure of the Civil Works function of the Corps Reaffirming a federal commitment to State Revolving Funds;

20 Water Resources Development Act The bill authorizes 12 Chief s Reports, including one that will be funded by the Inland Waterways Trust Fund. Rehabilitation of USACE constructed dams. No new lockage fees and/or tolls on the inland waterways system. Authorizes three project modifications, including the Post Authorization Change Report (PACR) for Chickamauga Lock. Directs the National Academy of Sciences (NAS) to evaluate the current organizational structure of the Civil Works function of the Corps Reaffirming a federal commitment to State Revolving Funds; Authorization of capital grants for State Drinking Water Treatment Revolving Loan Funds; Establishing an innovative water infrastructure workforce development program; Authorization of feasibility studies and critical projects; Making publicly available USACE real estate assets as a means to help avoid sometimes lengthy Rivers and Harbors Act Section 408 approval processes, which delay Clean Water Act Section 404 permit issuance; and

21 Reprisals Against Bidders on Border Wall 23 state and local jurisdictions considering penalties. Ban on future contracts Divest in state pensions Concerned similar contractor discrimination on future federal construction projects. Examples: military bases, pipelines, healthcare clinics, etc. Seeking federal preemption.

22 2018 Midterm Elections

29 Questions, Comments, Advice? Jordan Howard Phone:

AGC-US Army Corps of Engineers MILCON/Civil Works Policy Meeting 2018 Federal Contractors Conference Pentagon City, VA May 3, 2018 MEETING AGENDA

AGC-US Army Corps of Engineers MILCON/Civil Works Policy Meeting 2018 Federal Contractors Conference Pentagon City, VA May 3, 2018 MEETING AGENDA MEETING AGENDA AGC US Army Corps of Engineers MILCON/Civil Works Introductions 8:30 AM 11:30 AM Shea DeLutis-Smith Chair, AGC Corps of Engineers Committee Military Construction Greg Ford Chair, AGC Corps