AGC UPDATE

ASSOCIATED CONTRACTORS OF NEW MEXICOJULY 31, 2015

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OVERVIEW• Congress beginning to function– Passed budget!– Regular order in Senate: amendments offered– Avoid optimism that much will get done

• Regulatory agenda in full swing– AGC impacted EPA water rule

• Presidential race will dominate DC politics for next 481 days

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AGC LEGISLATIVE AGENDA

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HIGHWAY BILL• Congress passed gap bill yesterday to meet deadline

– 3 months is designed to put pressure on House to move bill

– Shuster: move bill in September– Can’t lose “pay-fors”

• More momentum in Senate– Bipartisan bill passed Senate (Heinrich & Udall no)– 6 year bill/ 3% annual increase + inflation– Freight mobility program– Only funded for 3 years– Sets up future funding cliff but lets states plan longer term

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HIGHWAY BILL• Can you get the revenue to support 6 year bill?– Gas tax is best option/Schumer: most Dems against– Repatriation– Royalties on energy extracted from federal land– AGC menu of revenue options

• Have you contacted your Congressman/Senators?– Hardhats for Highways– They need to hear from you and your employees!

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INFRASTRUCTURE• Airports Reauthorization– AGC in broad business coalition for PFC increase– Funds garages, retail, hotels, restaurants, rental

car facilities and terminals– Airlines vehemently opposed

• Water/wastewater– Working appropriations/seeking PAB authority

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TAX REFORM• Bipartisan support w/ Obama for Corporate rate cut– “Legacy” issue for Obama– Ryan concerned about inversions– Dems opposed to individual cuts

• Train moving slowly: will “S” corps be left behind?• “S” Corp coalition pushing back hard• Will AGC be faced w/ corp reform as vehicle for HTF

solvency and nothing for “S” corps?

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AGC REGULATORY AGENDA

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EPA “WATERS OF THE U.S.”• EPA “clarification” of definition issued late May– Determines what “waters” fall under feds– Navigable waters, interstate wetlands, and

tributaries that have physical signs of flowing water

– If so, subject to Clean Water Act regs on water quality, TMDL, discharge limits, stormwater and dredge and fill permits

• Final rule reflects changes sought by AGC in multiple comments and meetings prior to NPRM

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AGC IMPACT ON FINAL RULE• Exclusions for some ditches• Limits on when water is near/adjacent to stream • Limits on the area where waters would have to face a

“significant nexus” test on case-by-case review• Clarification on stormwater control features• Clarification for municipal storm sewer systems• Clarification on unique water features like prairie

potholes

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AGC STRATEGY MOVING FORWARD• Acknowledge that EPA listened to us in part– Developed credibility w/ agency– More shoes to drop: enforcement/further

clarifications– Seek meetings w/ EPA and USACE to develop best

practices for monitoring/enforcement– EPA meeting w/us 9/2

• Continue coalition efforts to press legislation to go back to drawing board

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EPA e-REPORTING• AGC submitted 2nd round of comments on proposal

to require contractors to file stormwater permits and related documents electronically

• Public access to inspection & enforcement history, pollutant monitoring results, & other data

• Problems for contractors:– Disclosure of sensitive business info– Vigilante enforcement/citizen suits

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OSHA SILICA RULE• AGC formed construction industry coalition• Proposed rule:– Halves exposure limit– Requires ER provided medical surveillance– Requires increased training/PPE/engineering

controls• Early reports: OSHA impressed by coalition

comments on feasibility of existing technologies to meet standard

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OSHA e-REPORTING• Proposed rule would require:– ERs w/ 20-249 Ees to submit Form 300A annually– ERs w/ 250EEs+ to submit Form 300 (injury &

illness log) and all Form 301 (incident report) quarterly

• All info available to public• Final rule expected by end of year

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“BLACKLISTING” E.O.• Issued in July 2014• Requires federal contractors to list violations of 17

federal labor/employment laws & comparable state• “labor advisor” to determine if “responsible”• Subcontractors must list as well• AGC in business coalition w/USCC– Potential to be named plaintiff in suit– Argue that statutes provided exclusive remedy for

violations

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NLRB “QUICKEE ELECTION” RULE• NLRB announced policy change to expedite

representation elections• Reduces ER ability to respond to organizing campaign

and make case to Ees• Union contractors in prehire arrangements

vulnerable to permanent bargaining requirement• AGC party to coalition lawsuit• Obama vetoed Congressional resolution to block

NLRB from issuing rule

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FAA DRONE POLICY• AGC submitted comments in April• FAA proposed operation during daylight, up to 500 ft,

speeds less than 100 mph, be visible to operator and require operator certification w/ recurrent testing

• AGC asked: streamlined rules & limited exemptions• Outlined use in project planning and design and

environmental and safety compliance• Allow for observer to work w/ operator on visibility• Asked to join user group by drone assn

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SUMMARY• Only AGC represents the entire industry• Momentum on highway bill• Protect member interests in tax bill• Regulatory onslaught continues– More to come– Looking at all legal and legislative options to

curtail

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