AGC joined industry partners this week in expressing concern to the Secretary of the Treasury on a provision in the recent tax reform law that may be interpreted as having the unintended consequence of creating a substantial disincentive for private investment in public infrastructure through the use of public-private partnerships (P3s). The letter highlights the fact that the interpretation of section 163(j) of the tax bill could cause substantially increased costs at all levels of government as they pursue P3 projects.  Section 163(j) would cause the effective tax rate on P3s to skyrocket by restricting the P3 project company’s deductions for interest payments.
AGC, along with our industry partners, is asking Treasury to issue guidance to clarify the intent of section 163(j) and offered suggested guidance that is consistent with the tax bill and its legislative intents.
For more information, contact Sean O’Neill at [email protected] or (202) 547-8892.

Includes Army Corps, Drinking and Wastewater Infrastructure Priorities
This week Congress took an important step in keeping its promise to authorize a water resources development bill (WRDA) entitled America’s Water Infrastructure Act of 2018. While not a spending bill, WRDA authorizes billions in funding for U.S. Army Corps of Engineers Civil Works projects, including navigation (dredging, locks), flood control (levees), hydropower (dams), recreation (parks), and water supply.  This bill would authorize about $2.4 billion of new federal spending on six projects involving disaster recovery.  Additionally, the bill includes several provisions impacting drinking water and wastewater infrastructure. AGC applauds Congress for returning to a regular two year authorization of WRDA and is advocating for reform.
Notable highlights from bill include:

• Five Year Plan – Requires the Corps of Engineers to provide Congress with a work plan and four-year projected budget on an annual basis


• P3 Pilot Program – Extends the authorizations of the non-federal implementation pilot programs at $50 million for both 2020 and 2021


• Authorized Projects – The Senate authorized fewer projects than in recent WRDA bills.  While the reason for this is unclear, it is expected that the House will authorize more projects


• Reauthorizes the Water Infrastructure Finance and Innovation Act (WIFIA)


• Language establishing a water infrastructure workforce development program


• A sense of Congress that the State Revolving Funds should continue receiving robust federal support

Disappointingly, the Senate bill does not include the AGC-supported Securing Required Funding for Water Infrastructure NOW (SRF-WIN) Act, which would authorize additional funding for WIFIA and allow for these funds to be accessed by State Revolving Funds for drinking and wastewater.  Nor does it include AGC’s recommendations that would have streamlined duplicative environmental reviews before the Corps of Engineers can initiate a water infrastructure project.
A summary of the bill can found here. AGC testified before the committee earlier this year that you view by clicking here.  You can read AGC’s list of water resources recommendations by clicking here.
For more information, contact Jordan Howard at [email protected] or (703) 837-5368.

On April 30, ahead of a midnight May 1 deadline, President Trump extended temporary relief from the steel and aluminum tariffs to three trading partners: Canada, Mexico, and the 28-member states of the European Union (EU). The decision to extend the temporary exemption window to June 1 staves off a potential trade spat with the EU. Unfortunately, it also creates greater uncertainty in steel and aluminum markets, which will likely contribute to continued steel and aluminum prices.
Of the seven trading partners shielded from the metals tariffs on March 23, South Korea is the only ally to achieve permanent exemption, having submitted to voluntary export restraints (VERs) on steel exports to the US earlier last month. The other three partners (Argentina,Australia, and Brazil) have negotiated their way off the temporary exemption list by reaching “agreements-in-principle” with the Administration. In short,the Administration has successfully driven them to the negotiating table.
AGC continues to urge the Administration to makepermanent the remaining exemptions and ultimately abandon the tariffs.
For more information, contact Collin Janich at [email protected] or (703) 837-5435.

A Brief Primer on Trade Actions Affecting the Industry
To help members navigate the Trump Administration’s recent trade actions, AGC has compiled a brief primer detailing the tariffs’ backgrounds, when they went into effect, their impact on the industry, and important dates to look for.
The primer can be found here.
For more information, contact Collin Janich at [email protected] or (703) 837-5435.

$25 Billion for Airport Construction Included
By a bipartisan vote of 393-13, the House last week approved HR 4, a five-year reauthorization of Federal Aviation Administration (FAA) programs which includes airport infrastructure improvement funding totaling $25.4 billion—a $5.3 billion increase compared to existing levels—over the next five years as part of the multi-year Federal Aviation Administration (FAA) reauthorization bill. The infrastructure funds would come through the Airport Improvement Program (AIP), which helps finance runway construction, among other critical airport construction projects. The additional $5.3 billion is part of an AGC-backed amendment to the FAA bill introduced by House Transportation and Infrastructure Committee Chairman Bill Shuster (R-Penn.).
Unfortunately—and over AGC’s objections—the House did not consider increasing or eliminating the cap on the Passenger Facility Charge (PFC). The PFC is a user fee charged to airline travelers that generates revenue for airport capital improvement projects. That user fee has been capped at $4.50 per enplanement since 2000. AGC urged that an amendment offered by Rep. Peter DeFazio (D-Ore.) and Rep. Massie (R-Ky.) to remove the cap be brought up for consideration, but the amendment was not approved.
The Senate has not yet indicated when it plans to consider its version of the FAA reauthorization bill, which passed the Senate Commerce Committee last June. The Senate bill includes AGC-supported language that increases the Disadvantaged Business Enterprise (DBE) size standard for the AIP program, while also ensuring that there is one size standard for all businesses participating in the AIP DBE program. AGC will continue to work with Congress to ensure that the final FAA bill addresses the construction industry’s priorities.
For more information, contact Brian Deery at [email protected] or (703) 837-5319.

AGC joined members of the Coalition for Crane Operator Safety this week in urging Congress to press the Occupational Safety and Health Administration (OSHA) to finalize a rule on the certification requirements for crane operators. AGC opposes attempts to block OSHA from funding such a rule. Currently, the long-delayed rule is under final review and could be issued ahead of a November deadline.
The rule originally called for certifications by both type and capacity of cranes, however concerns were raised because testing entities were not prepared to meet the new requirements leading to much uncertainty among employers and the need for a revised rule. Originally, the rule also mistakenly deemed certification as an operator having all the requisite skills to operate a crane safely. AGC is working with OSHA to address these outstanding issues prior to issuing a final rule.
AGC also met with the Administration last week in a similar effort to encourage swift finalization of a rule and thereby give the regulated industry time to come into compliance ahead of a November compliance deadline. AGC looks forward to a rule that will bring certainty to the requirements that employers must undertake and views a final rule as a proactive step to improve jobsite and public safety.
For more information, contact Jim Young at [email protected] or (202) 547-0133.

Three of OSHA’s top ten ‘serious’ violations (#1, #3, #7) are related to falls. Every day nearly 2,000 people are injured while using a ladder, and as many as 100 of them will suffer a long-term disability. Today, one person will die in a ladder-related accident. Fall-related accidents account for huge expenses to organizations, as well as long term effects for family, friends, co-workers, HR & legal departments and the C-suite. Reducing the number of ladder-related injuries is becoming top priority for the nation’s foremost companies, and Little Giant Ladders’ National Safety Director, Dave Francis, is leading the charge.
May 10, 2018
1:00 PM - 2:30 PM (ET)
Member Price: FREE
Non Member Price: FREE
Participants will identify key safety and legal issues facing organizations, expand their knowledge and professional skills to prevent fines and fatalities, engage a discourse concerning emerging issues of fall prevention and the profession.
To learn more and register click here.

The 17th Annual Transportation Construction Coalition (TCC) Legislative Fly-In is scheduled for May 15-16, 2018. This year's meeting will be held at the Grand Hyatt Hotel in Washington, DC.
The AGC meeting schedule is listed below. We have arranged for an informative set of speakers to get you up to speed on current Washington issues and prospects for legislative action this year.

Tuesday- May 15, 2018
9:30 AM – 11:00 AM	AGC-FHWA Meeting
11:00 AM – 2:00 PM	AGC Washington Issues Briefing (Lunch Included)
2:30 PM – 5:00 PM	TCC Legislative Briefing
6:00 PM	TCC Capitol Hill reception
Wed. - May 16, 2018
9:00 AM – 5:00 PM	Hill Visits

For more information, contact Brian Deery at [email protected] or (703) 837-5319.

May 1-3, 2018
Register today for the 2018 AGC Federal Contractors Conference taking place next week in Pentagon City, VA. The Federal Contractors Conference is the premier conference for federal construction contractors to discuss the latest projects, policies and contracting issues facing the industry with federal agencies, including the U.S. Army Corps of Engineers, Naval Facility Engineering Command, Air Force Civil Engineer Center, General Services Administration, Department of Veterans Affairs, Department of State, Natural Resources Conservation Service, and Bureau of Reclamation.
In addition to substantive discussions and presentations with federal agencies, attendees will hear from legal experts about the latest federal regulations that will impact their businesses and may have the opportunity to continue a dialogue with federal agencies after the conference. Leading federal construction attorneys will address executive orders, Small Business Administration and Federal Acquisition Regulation rules, and case law trends your company needs to know to work in the federal market. And, when the conference concludes, AGC member attendees will have the opportunity to participate in ongoing dialogue and meetings with agency headquarters later in the year.
For more information and to register, go to http://meetings.agc.org/fedcon/registration/.

On April 26, AGC urged the House of Representatives to authorize airport infrastructure improvement funding totaling $25.4 billion—a $5.3 billion increase compared to existing levels—over the next five years as part of the multi-year Federal Aviation Administration (FAA) reauthorization bill. The infrastructure funds would come through the Airport Improvement Program (AIP), which helps finance runway construction, among other critical airport construction projects. The House is expected to vote no later than April 27 on the additional $5.3 billion as part of an AGC-backed amendment to the FAA bill introduced by House Transportation and Infrastructure Committee Chairman Bill Shuster (R-Penn.).
Unfortunately—and over AGC’s objections—the House will not consider increasing or eliminating the cap on the Passenger Facility Charge (PFC). The PFC is a user fee charged to airline travelers that generates revenue for airport capital improvement projects. That user fee has been capped at $4.50 per enplanement since 2000. AGC urged that an amendment offered by Rep. Peter DeFazio (D-Ore.) and Rep. Massie (R-Ky.) to remove the cap be brought up for consideration, but the amendment was not approved.
The Senate has not yet indicated when it plans to consider its version of the FAA reauthorization bill, which passed the Senate Commerce Committee last June. The Senate bill includes AGC-supported language that increases the Disadvantaged Business Enterprise (DBE) size standard for the AIP program, while also ensuring that there is one size standard for all businesses participating in the AIP DBE program. AGC will continue to work with Congress to ensure that the final FAA bill addresses the construction industry’s priorities.
For more information, contact Brian Deery at [email protected] or (703) 837-5319.