On August 5, President Biden signed an Executive Order setting a new target to make half of all new vehicles sold in 2030 zero-emissions vehicles, including battery electric, plug-in hybrid electric, or fuel cell electric vehicles. The Executive Order also initiates development of long-term fuel efficiency and emissions standards. In conjunction with this Order, the Environmental Protection Agency and U.S. Department of Transportation will soon announce how they plan to counter regulatory action on efficiency and emissions standards developed by the previous administration. These announcements, along with increased consumer interest in electric vehicles, makes clear that Congress must seriously address the long-term solvency of the Highway Trust Fund. As more electric and fuel-efficient vehicles join the nation’s auto fleet each year, gas tax revenue, which provides the lion’s share of funding for building our nation’s highway and bridge infrastructure, will continue to decline.
On July 27, the Office of Management and Budget and the Department of Defense announced the implementation of mask mandates for all federal workers, contractors, and visitors to federal facilities in areas with substantial or high community transmission of COVID-19 infections. Federal employees and “onsite contractors” will be required to “attest” to vaccination or be required to wear a mask. However, federal contractors nor agencies have received any implementation guidance which has resulted in confusion. Fundamental questions remain unanswered, including what the scope of the mandate is, who will bear the cost of testing, and if contractors working at multiple offices or for multiple agencies will be required to attest at each site. AGC received notice that it could be as long as two weeks before guidance is issued. The association will update the membership as soon as such guidance is released.
This week the Senate is debating the Infrastructure Investment and Jobs Act, or commonly referred to as the bipartisan infrastructure bill. AGC has weighed in on a few of the amendments that have been offered and is monitoring to see if they will get a vote:
Associated General Contractors of America Details Measures Needed to Lead to a More Environmentally Friendly Built Environment, Also Outlines Steps Firms Can Take to Operate More Efficiently
Demand for different types of construction continued to diverge in June as residential construction increased for the month and the year while nonresidential construction spending fell again, according to a new analysis of federal construction spending data the Associated General Contractors of America released today. Officials noted the nonresidential declines include a steep drop in spending on highway and street projects and urged Congress to quickly pass a new, bipartisan infrastructure measure.
Due in part to AGC’s advocacy and others, a House fiscal year 2022 funding bill for the U.S. Department of Labor will not include a provision banning the construction industry from utilizing the H-2B seasonal guest worker visa program. The program provides temporary and seasonal workers when domestic workers are unavailable via a lottery process to a wide range of industries, including construction. Given the widespread worker shortages impacting the construction industry, AGC was very concerned of attempts to target and limit the industry’s ability to access the program. AGC will continue to advocate for immigration reforms that helps address construction workforce shortages.
The U.S. Department of Labor announced a final rule to rescind a Trump administration rule, “Joint Employer Status under the Fair Labor Standards Act” that took effect in March 2020. The rescinded rule included a description of joint employment the Biden administration believes is contrary to statutory language and Congressional intent. The U.S. District Court for the Southern District of New York vacated most of the rule in 2020.
On July 29, the Federal Acquisition Regulation (FAR) Council issued a proposed rule to add and expand Buy American Act requirements on direct federal construction projects (not federal-aid transportation projects). The proposed rule increases the domestic content required to 60% with increases in two years to 70% and then 75% in five years. It permits acceptance of products and construction materials up to six years after publication of the rule which are unavailable at an acceptable cost. It also states that a higher price preference may be identified for critical end products and construction materials. The rule was initiated as a result of President Biden’s Executive Order on Ensuring the Future Is Made in All of America by All of America’s Workers. White House staff briefed AGC on the direction of the proposed rulemaking and AGC gave feedback to inform the FAR Council’s process. AGC will provide feedback on how this rule should not exacerbate continuing construction material shortages and price spikes.
On July 28, the Senate agreed, 67-32, to begin debate on a $1.2 trillion bipartisan infrastructure package. Ahead of the vote, the bipartisan group of senators announced it had resolved all major issues on the package. As a result of this initial vote, the Senate will consider the package over the coming days and, perhaps, weeks. However, an actual legislative bill detailing what is in the package has yet-to-be released or formally introduced as of July 29. When a bill is introduced in the Senate and, if passed, the bill will head to the House of Representatives for consideration. A 57-page summary of the bipartisan infrastructure package notes how it includes funding for a host of traditional, physical infrastructure. AGC appreciates and has fought for the significant levels of investment in the package and awaits actual legislative text before considering a formal association endorsement.
Construction employment declined or stagnated in 101 metro areas between February 2020, the last month before the pandemic, and last month, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials said that labor shortages and supply chain problems were keeping many firms from adding workers in many parts of the country.