U.S. EPA Administrator Lisa Jackson appeared before the House Transportation and Infrastructure Committee today to discuss the Clean Water Act and EPA's intention to increase efforts to undertake enforcement actions under the Act. In her testimony to the Committee, Administrator Jackson noted that EPA is "reexamining its approach to enforcing the Clean Water Act permit program to address water pollution challenges of this century." Jackson specifically noted that recipients of National Pollutant Discharge Elimination System (NPDES) permits, including construction sites, wastewater treatment plants, mining, manufacturing facilities and additional industries, such as agriculture, would be targets of increased CWA enforcement by EPA. Administrator Jackson also indicated that the EPA formally released their "Clean Water Act Enforcement Plan" which is available on the EPA Web site.Administrator Jackson said about S. 787, the Clean Water Restoration Act,  that the Obama Administration believes that Congress can bring more clarity to permitting issues. Chairman Oberstar noted that he had not introduced companion legislation to S.787 yet. Several Committee members expressed concerns about removing the term "navigable" from the Clean Water, which the bill would do.  AGC has actively opposed this legislation because it would give EPA and the Corps jurisdiction over all wet areas - however remote or intermittent. At a recent hearing before the Small Business Panel on Waters and Wetlands Regulations, AGC testified that the bill would require construction contractors and project owners to obtain and be regulated by federal Clean Water Act permits far more frequently than is currently required. Administrator Jackson was also asked about the Obama Administration's position on the creation of a Clean Water Trust Fund.  Jackson indicated that the Obama Administration did not have a position for or against the "Trust Fund," but acknowledged that there was a major gap in the current investment in clean water infrastructure. AGC has been involved in direct talks with the EPA's enforcement arm, the Office of Enforcement and Compliance Assistance (OECA), and will continue to engage in discussions with EPA and the T&I Committee to ensure that the construction industry's concerns are heard and that EPA efforts include increased compliance assistance and industry outreach, in addition to increased enforcement actions.To view Administrator Jackson's and other testimony, as well as video of the hearing, click here.

The Senate approved, 80-17, a $33.5 billion Energy and Water Appropriations package for FY 2010 and sent it to President Obama for his signature.  The bill provides $5.4 billion in funding for the FY2010 Army Corps of Engineers Civil Works program, including:   Construction - $2.031 billionOperation and Maintenance - $2.4 billionInvestigations - $160 millionMississippi River & Tributaries - $340 millionRegulatory - $190 millionFUSRAP - $134 millionThe Bureau of Reclamation would receive $1.13 billion, slightly more than the House bill figure of $1.08 billion. This represents an approximately $38 million decrease from FY 2009, but an approximate $17 million increase above the administration request.AGC will continue to advocate for increased investment in the water resources development missions of the Corps of Engineers and the Bureau of Reclamation as this legislation continues through the Congress.To view a copy of the final Conference Report, click here.

The Obama Administration proposed a series of rule changes to the Federal Acquisition Regulation (FAR) on October 14 that would address several critical components of the federal acquisition system and management of federal employees and private sector contractors.The first rule would allow the Government Accountability Office to interview current contractor employees during the audit of the contractor's records. A second rule would limit the length of contracts awarded noncompetitively under unusual and compelling circumstances to the minimum contract period necessary to meet the requirements, and no longer than one year, unless the head of the agency determines that exceptional circumstances apply. Both rules were finalized and are now in effect.Three other proposed rules would affect federal contracting:One rule aims to minimize excessive cost of pass-through charges by contractors from subcontractors;A second interim rule addresses contract award fees; andAn interim rule clarifies the definition of commercial services.All rules implement provisions from the 2009 Defense Authorization Act. AGC is currently reviewing these rulemakings to determine the effect on the construction industry.

With amendment debate completed and an official Congressional Budget Office (CBO) score in hand, the Senate Finance Committee is poised to vote on and pass their modified bill out of committee on Tuesday October 13. The bill will then head to the Senate floor once it is merged with the Senate Health, Education, Labor and Pensions Committee bill by Majority Leader Reid's staff.  Senate Democrats plan to have the health package on the Senate floor by the week after next.Following the more than week long mark-up, CBO determined the Finance bill would cost $829 billion over 10 years, $55 billion more than Chairman Baucus' original mark. CBO predicted the Finance Committee bill will reduce the federal deficit by $81 billion and provide up to 94 percent of all Americans with health care coverage.During debate several contentious issues were not resolved. In the end, the public option was not added, employer mandates remain, and Cadillac plans will still being taxed.In the House, the Chairman of the House Ways and Means Committee, Charlie Rangel expects to get his bill completed this week and sent to CBO to be scored.  Democratic leaders in the House are looking at options to help pay for healthcare reform, including instituting a windfall profits tax on insurance companies.  Timing of a bill moving in the House remains fluid as Democratic leaders try to address the concerns of their liberal and conservative members.AGC remains concerned over employer mandates, the penalties for companies that cannot afford to provide health care, the uncertainties in coverage requirements, the affect on temporary and seasonal employees, the limitations on FSAs, HSAs and HRAs, and expanded COBRA mandates. Even with the CBO score of the Senate Finance bill, AGC remains concerned that the exorbitant costs of the proposed plans will result in increased taxes on individuals and companies.  AGC supports reform that increases coverage, choice and competition in the marketplace. The inclusion of a public plan in the legislation will likely drive private insurers out of the market and the projected savings from the proposed legislation may never materialize, resulting in further tax increases to make up the shortfall.

 AGC Chapter leaders, including executives and presidents, met in Washington, D.C., this week to discuss best practices and meet with Congress to address AGC's top legislative issues.The annual National and Chapter Leadership Conference included speakers from Capitol Hill and breakout sessions to discuss the industry's most pressing issues, including federal contracting requirements and new labor, employment and safety initiatives.Approximately 160 Congressional offices were visited by AGC leaders.   The top issue discussed during these meetings was AGC's newly-released blueprint on how to stimulate demand for construction.  The document, "Build Now for the Future: A Blueprint for Economic Growth," outlines a series of commonsense incentives, tax credits and policy changes designed to stimulate new private and public-sector demand for construction.   Click here to view this plan. Several prominent speakers participated in the meeting, including George Will, award-winning political columnist, who told attendees that the United States has always believed in infrastructure investment and criticized Congress for failing to pass a robust six-year surface transportation bill, saying it "shouldn't be difficult."In addition, Congressman Earl Blumenauer (D-Ore.) and Senator Richard Burr (R-N.C.) were on hand to discuss some of AGC's top legislative issues with AGC Chapter leaders.Blumenauer called for greater transportation investments and will work to attract over $1 trillion in new investments in water infrastructure. Burr focused on health care and explained that getting reform right is crucial to the business community.

Since Congress failed to act prior to the September 30, 2009 deadline, a rescission of $8.7 billion in highway program budget authority required in SAFETEA-LU was implemented. As a result of the rescission, 30 states will lose about $335 million in actual highway funding dollars in FY 2010 and all states will have limits on their ability to use federal highway dollars to fund state priority projects.Since the highway and transit programs are currently operating on a thirty-day authorization extension, Congress must pass further extensions to keep the programs operating. Key Senate transportation leaders are looking for budget offsets to allow the reversal of the rescission so that all states will have their lost budget authority restored.  They also are looking to the next authorization extension as the vehicle for solving this problem. AGC has met with key decision-makers and written to the entire House and Senate urging that this rescission be reversed to avoid further deterioration of the highway construction market.

This week, House and Senate conferees working on the appropriations bill for the Department of Homeland Security agreed to an extension of the E-Verify electronic verification system for three years.   Conferees negotiated a simple three-year extension after considering differences on both sides.  For example, the Senate version of the bill would have made the program permanent and allowed for employers to verify existing employees. The extension would keep the program voluntary and authorize the continuation of the program in its current form.  However, the bill still needs to see final action on the floor of both the House and the Senate.   AGC expects the legislation to reach the floor before the end of October, and will monitor the issue closely.

AGC unveiled a new plan designed to revive the hardest hit sector of the economy, the nation's construction industry. The plan, "Build Now for the Future: A Blueprint for Economic Growth," is designed to reverse predictions that construction activity will continue to shrink through 2010, crippling broader economic growth.Federal action on the mix of new incentives, tax cuts, policy revisions and infrastructure investments outlined in the plan are needed to stem the dramatic decline in construction activity and employment taking place nationwide. AGC's analysis of federal employment data found construction employment declined in 324 of 337 metropolitan areas between August 2008 and 2009.AGC released the plan during a news conference at a stalled construction site in Sparks, Nev., a city that lost 35% of its construction work force. The news was covered by theAssociated Press, Las Vegas Review-Journal, Miami Herald and San Antonio Express News, to name a few. Local television stations covered the event as well.

Congress completed action on a thirty-day Continuing Resolution to keep government programs operating in the new fiscal year while it continues to debate the necessary appropriations bills for the various federal agencies. Included in the legislation is a thirty-day spending authorization for the highway and transit programs. This action was necessary because SAFETEA-LU, the current transportation authorization, expired on September 30. In a last minute change of heart, Senate Environment and Public Works Committee Chairman Barbara Boxer (D-Calif.) and Ranking Republican Jim Inhofe (Okla.) attempted to get the Senate to pass a three-month extension of authorization that included a provision to eliminate an $8.7 billion rescission of highway spending authority. Until now, the Senate transportation leaders have supported the Obama administration's request that authorization be extended for eighteen months until March 2011.House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-Minn.) continues to press for Congress to complete action now on a six-year authorization bill and therefore has sought to limit the length of an extension, which lead to the House passing a three-month extension last week. The House bill, however, does not address the rescission problem because House rules require that eliminating the rescission must be offset with other spending cuts or revenue increases. Sens. Boxer and Inhofe attempted to identify acceptable offsets but were not successful. The thirty day reprieve hopefully gives transportation leaders time to work on a strategy for moving forward with a long-term authorization. While the rescission was implemented as of midnight last night, Sen. Boxer indicated that she will continue to attempt to find a way to ensure that states are not required to cut their highway programs.Read more about the effect of the rescission in the Denver Business Journal.

The Senate Finance Committee continues to work on a comprehensive health care reform bill. The Democratic leadership had hoped to have the Committee finish its work last week and move toward merging its version with the Senate Health, Education, Labor and Pensions Committee's (HELP) version. However, the Committee has continued to meet to discuss numerous amendments and delays receiving the legislation's final cost estimates.Although the committee continues to work, many senators are considering working out differences after the committee adjourns. Major differences include whether or not to include a public option, instituting employer mandates and changing the tax on "Cadillac" plans. The amendments the committee has dispensed with have been relatively minor, which could make for a very contentious debate after the bill is merged with the HELP committees and ultimately brought to the Senate floor for a vote.While much of the action is in the Senate, House leaders are grappling over a shifting timeline and potentially eroding support for their bill.  Democratic leaders hoped to have the bill ready for consideration by the full House starting October 18. Deadlines have come and passed during this process and it is unknown whether the Democratic leaders can keep all their members unified behind the bill that AGC opposes. AGC remains concerned over employer mandates, the penalties for companies that cannot afford to provide health care, the uncertainties in coverage requirements, the affect on temporary and seasonal employees, the limitations on FSAs, HSAs and HRAs, and expanded COBRA mandates. AGC is also concerned that the exorbitant costs of the proposed plans will result in increased taxes on individuals and companies.  AGC supports reform that increases coverage, choice and competition in the marketplace. The inclusion of a public plan in the legislation will drive private insurers out of the market and the projected savings from the proposed legislation may never materialize, resulting in future tax increases.Currently, the Senate Finance Committee is considering several amendments and will likely finish tomorrow. A vote will follow next week after a Congressional Budget Office analysis.Click here to learn about the different health care proposals outlined by the Kaiser J. Family Foundation. Many of the details are still being decided and any final legislation would have to incorporate the different proposals.