On Mar. 5, the AGC supported bipartisan Water Quality Protection and Job Creation Act of 2019 introduced by House Transportation and Infrastructure Committee Chairman Peter DeFazio (D-Ore.) along with Reps. Napolitano (D-Calif.), Don Young (R-Alaska), and John Katko (R-N.Y.). The legislation would provide over $20 billion in federal assistance for the construction, repair and replacement of wastewater, stormwater conveyance and treatment facilities. In addition to increased funding, the bill also has the potential to create 500,000 quality construction, engineering and manufacturing jobs. AGC is working to include this bill in a potentially large infrastructure package.

This bill was introduced ahead of the Mar. 7 House Subcommittee on Water Resources and the Environment hearing entitled, “The Clean Water State Revolving Fund: How Federal Infrastructure Investment Can Help Communities Modernize Water Infrastructure and Address Affordability Challenges” The hearing examined the current state of our clean water systems, the backlog of clean water infrastructure needs and the infrastructure affordability challenges facing communities and American households.

For more information, contact Allen Gray at (703) 837-5321 or allen.gray@agc.org.

Three Separate Rules Addressed

The Federal Aviation Administration (FAA) recently published three separate rules on drone use that could impact use of these devices in construction operations. AGC has a task force that has been addressing drone use, which will be formulating AGC’s response to these initiatives.

The first proposed rule addresses the operation of small unmanned aircraft over people. The proposal would allow for commercial operations of drones over people and at night. It also would address common scenarios where operators seek waivers. The proposed rule is notable in that it suggests FAA interest in regulating manufacturers as opposed to operators. Comments on the proposal are due April 15, 2019.
FAA also issued an interim final rule on External Marking Requirements for Small Unmanned Aircraft. This rule would revise the FAA’s current small UAS marking standards by requiring the UAS registration number to be marked on the exterior of the aircraft. The rule seeks to address law enforcement and FAA interagency security partner concerns that allowing marking inside of the aircraft—which may contain explosives or other threats to safety—endangers first responders. Comments on the rule must be received by March 15, 2019.

Finally, the FAA released an Advance Notice of Proposed Rulemaking requesting responses to discussion questions on safety and national security concerns related to increased UAS integration. These questions address various topics, such as:

• • standards for stand-off distances (the amount of space between a small UAS and the closest person or object);

• • payload restrictions (including a prohibition on carrying hazardous materials);

• unmanned traffic management systems (e.g., costs of developing and operating one, and restrictions on possible information sharing for national security and public safety purposes); and altitude and other performance limitations.

Comments on the discussion questions must be received by April 15, 2019.
For more information, contact Brian Deery at deeryb@agc.org or (703) 837-5319.

Tariff Rate Increase Delayed

On Feb. 24, the president announced an indefinite delay to a scheduled increase—from 10 percent to 25 percent—in tariffs on $200 million worth of Chinese imports. On Feb. 27, U.S. Trade Representative Robert Lighthizer, the president’s top trade negotiator, signaled that—though progress is being made—there is still a great deal of work to be done before an agreement is reached with China. The U.S. is seeking concessions on intellectual property protection and other unfair trade practices of the Chinese government before any reduction or elimination of tariffs on imported goods is granted. For a full rundown of Trump administration trade actions and their impact on the construction industry, click here.

AGC welcomes the administration’s delay of an increase in the tariff rate on imported goods. Many of the items that have had duties accessed on them are materials incorporated into the actual construction project itself, necessary parts for manufacturing construction equipment, or the construction equipment itself.  Costs for these various supplies, materials and equipment may rise accordingly, placing further pressure on contractors to increase their bid prices. AGC will continue to monitor this and other international trade negotiations.

For more information, contact Cory Gattie at cory.gattie@agc.org or (202) 547-4685.

On Feb. 28, the U.S. Senate confirmed President Trump’s nomination of Andrew Wheeler as administrator of the U.S. Environmental Protection Agency—a move which AGC supported in a letter to the Senate Environment and Public Works committee earlier this month. The 52-47 vote fell mostly along party lines.   

For more information, contact Melinda Tomaino at tomainom@agc.org or (703) 837-5415.

State NEPA Reviews Targeted

On Feb. 26, the Office of Management and Budget (OMB) and Council on Environmental Quality (CEQ) provided guidance clarifying elements of President Trump's Aug. 15, 2017, executive order (EO), aimed at reducing the permitting time for large infrastructure projects to two years. The guidance clarifies that the EO applies to state agencies that have been assigned National Environmental Policy Act (NEPA) responsibilities making them responsible for keeping the permitting timetable to two years. Under the Surface Transportation Project Delivery Program established in 2005, U.S. DOT can grant states the authority to complete requirements for NEPA review for highway infrastructure projects. Thus far, six states—Alaska, California, Florida, Ohio, Texas, and Utah—have been granted the NEPA review authority. Several other states have also applied.

For more information, contact Melinda Tomaino at tomainom@agc.org or (703) 837-5415.

Billions for Construction Accounts to Aid Rebuilding Efforts

A bipartisan group of Senators have introduced a disaster aid package, S. 572, that would provide roughly $13.6 billion in emergency supplemental funding. The bill will provide aid for areas of the country affected by the natural disasters of 2018. AGC previously reported that House and Senate negotiators failed to include disaster aid in the compromised funding bill for FY 2019 on February 14. Click “read more” to see a breakdown of notable construction accounts that would receive funding if this new legislation were enacted.
Notable construction accounts that would receive funding under this legislation include:

• • $1.65 billion for the Federal Highway Administration’s emergency relief program to repair damaged roads and highways.

• • $740 million for Army Corps Civil Works construction projects to reduce flood and storm damages.

• • $225 million for the Mississippi River and Tributaries to rehabilitate and repair Army Corps projects.

• • $1.06 billion for the Housing and Urban Development Department’s Community Development Fund. Some of the funding will be used for long-term recovery and infrastructure restoration.

• $857 million to rebuild damaged military facilities for the Navy, Marine Corps, Air Force, and Army National Guard.

As of Feb. 28, the bill has not been scheduled for a vote in the Senate. There is potential for this package to get included into similar legislation in the coming weeks.

For more information, contact Jordan Howard at jordan.howard@agc.org or (703) 837-5368.

Rule Takes Effect Feb. 25

On Feb. 13, the Federal Aviation Administration (FAA) issued an interim final rule—taking effect on Feb. 25, 2019—requiring drone owners to display the FAA registration number on the external surface of a drone upon completion of the registration process. Drone owners are no longer permitted to enclose the registration number in a compartment.

For more information, please contact Jimmy Christianson at christiansonj@agc.org or (703) 837-5325. 

Calls on President to Lift Steel & Aluminum Tariffs

On Feb. 18, AGC notified the White House of its support for the new trade agreement among the United States of America, Mexico, and Canada (USMCA). That noted, the association also strongly urged the president to remove the Section 232 tariffs on steel and aluminum as they apply to Canada and Mexico.  AGC looks forward to working with Congress to approve the USMCA, as this agreement will help ensure that trade impacting the construction industry supply chain remains free, fair, and certain.

For more information, please contact Jimmy Christianson at christiansonj@agc.org or (703) 837-5325. 

ACA Taxes Continue to Plague Employee Benefits

On Feb. 19, AGC endorsed bipartisan legislation introduced in the U.S. House of Representatives to repeal the 40 percent excise tax on employer-sponsored coverage, known as the Cadillac tax, and a Senate-introduced bipartisan bill to repeal the health insurance tax (HIT). While the Cadillac tax was initially intended to target “high cost” employer-sponsored health coverage, it is now estimated to impact the vast majority of employee benefits plans and force employers to cut or limit employee benefits. The HIT is a direct tax on fully-insured carriers which is passed along to the customer – small and mid-size businesses and the millions of hardworking Americans and their families that are enrolled in this type of employment-based coverage. Read the letters of support here and here.

For more information, contact Jim Young at youngj@agc.org or 202-547-0133 or Claiborne Guy at claiborne.guy@agc.org or 703-837-5382.

On Feb. 15, Congress approved funding for those federal agencies previously operating under a continuing resolution—including the Department of Transportation, General Services Administration and Environmental Protection Agency, among others. This legislation, coupled with previously passed fiscal year (FY) 2019 spending bills, provides annual funding to all agencies of the federal government through September 30, 2019. Overall, federal construction accounts saw about a two percent increase—or $4.5 billion—in funding in comparison to FY 2018 funding levels. A full AGC analysis of federal construction accounts for FY 2019 can be found here.

For more information, contact Cory Gattie at cory.gattie@agc.org or (202) 547-4685.