The Department of Homeland Security (DHS) on July 8 announced the Administration's intent to "push ahead with full implementation" of a rule requiring federal contractors to use the E-Verify system to verify employees' authorization to work in the U.S.  The E-Verify rule will apply to federal solicitations and contract awards government-wide beginning September 8.  At the same time, DHS announced its intent to issue a new regulation rescinding a rule establishing procedures for employers to follow upon receipt of a "no-match letter" from the Social Security Administration (SSA) or DHS.For background information on E-Verify and No-Match, click here.AGC will monitor all related litigation and legislation and will report on significant developments.Meanwhile, further guidance on immigration compliance is available in an MP3 download of a live educational session held at AGC's Annual HR Professionals Conference in June 2008.  An immigration law update will also be provided at AGC's next HR Professionals Conference, which will take place October 27-29, in Atlanta, GA.  Click here for conference details and registration.  For additional resources and for information on immigration reform efforts, click here.

On March 12, 2009, The U.S. House of Representatives passed HR. 1262, the Water Quality Investment Act of 2009. This bill authorizes $19.4 billion over five years for wastewater infrastructure projects, including $13.8 billion for the Clean Water State Revolving Loan Fund (SRF) and $2.5 billion for the sewer overflow control grants program.  On May 14, 2009, the Senate Environment and Public Works Committee passed companion legislation S.1005, the Water Infrastructure Financing Act of 2009. The Senate bill authorizes $38.9 billion for EPA water infrastructure programs over the next five years, and includes $20 billion for the Clean Water State Revolving Fund Program, $15 billion for the Drinking Water State Revolving Fund Program and $1.85 billion for Sewer Overflow Grants.New policy in both bills includes language applying Brooks Act qualifications based selection (QBS) for preconstruction design and engineering services with an exemption in S. 1005 for communities of 10,000 persons or less. Both bills also include Davis- Bacon prevailing wage requirements. Key differences between the bills, beyond funding levels, include changes to the current state allocation formula for the Clean Water SRF in the S. 1005. Largely due to AGC and WIN Coalition lobbying efforts, the bill does not include Buy American provisions included in the House version, which are identical to the requirements in the American Recovery and Reinvestment Act that have slowed down the delivery of these important projects.Senate EPW staff has indicated that the Senate may bring its bill for a full vote before the August recess.  It is crucial that AGC members write their Senators and urge them to support this bill. Click here to visit the AGC Legislative Action Center and write your Senator.

After months of discussions and drafting legislation, committees are beginning to narrow the focus of the legislation in both the House and Senate. Leaders in both chambers remain committed to the accelerated timeline of passing bills prior to the August recess and having the president sign the legislation in October. The major hurdles for reform remain the financing of the expansion of coverage.  Working towards a bipartisan proposal will likely slow the speed of the legislation. In the Senate, leaders are moving away from a plan to tax health benefits of employees. In the House, a tax surcharge on the income of highly compensated individuals is gaining momentum. The surtax would affect individuals with incomes higher than $200,000 and couples over $250,000.  Also, a proposal to tax or penalize employers that do not offer health benefits is incorporated in both the House and Senate versions of the bill. While nothing has been decided, Congress is presented with an enormous task of finding revenue to pay for the over $1 trillion plan being discussed.Congress will continue to finalize the legislation as committees of jurisdiction in the U.S. House craft their version of legislation and Senate committees finalize their plan. The Senate must still mesh two competing committees' legislation into one before the Senate can vote on it.

Discussions continued between the House and Senate this week on the best way to fix the $8 billion shortfall in transportation funding for fiscal 2009, fix the $10 billion shortfall in fiscal 2010 funding and extend the SAFETEA-LU programs beyond their September 30, 2009 expiration date.The House announced plans to markup a bill to fix the 2009 shortfall this month, while the Senate plans to move their bill the week of July 20 that will address both the 2009 and 2010 shortfalls and SAFETEA-LU extension.  Both bodies are determined to pass their bills in July. The House Transportation Committee has postponed plans to move the six-year authorization this month, but will hold a hearing. AGC continues to review the subcommittee-passed version of the six-year bill and will be working with both congressional and industry allies to improve the multi-year package.

House and Senate leaders are moving on legislation to fund the Army Corps of Engineers, Bureau of Reclamation and the Department of Energy for FY 2010.The House Appropriations Committee reported a $33.3 billion bill on July 9. The total amount approved for the U.S. Army Corps of Engineers Civil Works program is $5.54 billion for FY 2010. This represents a modest increase of $139 million over the FY 2009 and an increase of $416 million over the Obama administration's request of $5.1 billion. The Bureau of Reclamation would receive $1.08 billion in funding for FY 2010, representing a $38 million decrease from FY 2009, but a $17 million increase above the administration request.On July 8, the Senate Energy and Water Appropriations Subcommittee moved forward a $34.27 billion package that is $643 million below President Obama's budget request and nearly $476 million above the FY 2009 omnibus enacted level. The Senate's bill would provide $5.4 billion for the Army Corps of Engineers, slightly less that the House figure. The Bureau of Reclamation would receive $1.13 billion, slightly more than the House bill.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 review the House FY 2010 Appropriations table click here.To review the list of the House FY 2010 projects click here.To read the House Bill Summary click here.To read the Senate Bill Summary click here.

Last week, the U.S. House passed H.R. 2454, the American Clean Energy and Security Act, by a vote of 219 to 212 (8 Republicans supported the bill, and 44 Democrats voted against it).  While elements of the legislation could create jobs by inducing demand for energy efficiency improvements to buildings and alternative energy generation, no one is certain of the true impact on the economy.  AGC believes that the bill goes too far too fast and that Congress has not adequately mitigated the impacts. Policymakers have acknowledged that the "cap and trade" program in the bill would increase electricity costs with varying regional effects.  A climate change cap and trade bill would significantly increase the cost of energy used in producing construction materials and powering construction equipment.  The bill also includes provisions giving free reign to the U.S. Environmental Protection Agency to regulate small stationary emitters and to implement standards for a variety of mobile sources used in construction-including new heavy duty trucks and off-road equipment.  The increased costs and new regulations would ultimately decrease demand for construction at a time when the U.S. economy can least afford it, especially when one in every five unemployed workers is a construction worker. AGC appreciates the response by individuals in the construction industry that answered the call to action and sent over 2,000 messages to Congress in opposition to the bill.  The legislative debate will move to the Senate where a vote could occur as early as September. The Senate will likely refer to, or use, the House bill in drafting their legislation.  Meanwhile, the Committee on Energy and Natural Resources approved the American Clean Energy Leadership Act (ACELA) on June 17, 2009.  Some of the ACELA provisions are similar to the House bill, but it does not yet address cap and trade of greenhouse gases, which the Senate Environment and Public Works Committee may consider as early as this month.  The resulting legislation from the Senate will need to secure passing votes in both houses of Congress before a final bill is sent to President Obama to sign.AGC urges all members and Chapters to weigh in with their Senators and urge them to oppose the House bill as written.  For more information and to send a letter to your Senators, please use AGC's Legislative Action Center.

On June 29, 2009, the United States Government Accountability Office (GAO) released its report, "Clean Water Infrastructure: A Variety of Issues Need to Be Considered when Designing a Clean Water Trust Fund."  The long awaited report from the GAO acknowledges that our Nation faces tremendous challenges in replacing and rehabilitating our water infrastructure, with estimated needs between $400 and $600 billion over the next 20 years for safe drinking water and wastewater treatment infrastructure.The GAO report does not make any specific recommendations on how a trust fund would be administered, or which revenue sources are most viable.  However,  it does outline issues that need to be addressed in establishing a Clean Water Trust Fund and identifies potential funding options including excise taxes on water pollutants and water-intensive industries that could generate approximately $10 billion annually. The taxes would apply to beverages, pharmaceuticals, pesticides, flushable products and water appliance industries. In researching its report, the GAO reached out to 28 industry associations including AGC of America, the Internal Revenue Service and the U.S. Environmental Protection Agency (EPA).AGC and the Water Information Network (WIN) Coalition have endorsed the concept of a Clean Water Trust Fund to create a long-term, sustainable, off-budget source of funding for water infrastructure to finance construction and maintenance of this critical infrastructure.On July 15, 2009, the House Transportation and Infrastructure Subcommittee on Water Resources and Environment is scheduled to conduct a hearing titled "Opportunities and Challenges in the Creation of a Clean Water Trust Fund."  AGC anticipates introduction of "trust fund" legislation by Congressman Earl Blumenauer (D-Ore.) in the near future.

This morning, the Transportation Construction Coalition (TCC) held a news conference at a D.C.-area construction site managed by AGC member company Jacobs. The TCC is co-chaired by AGC and the American Road & Transportation Builders Association (ARTBA).  During the conference, the TCC released a national report that found more than half of highway fatalities are related to deficient roadway conditions.  This press release was issued nationwide during the news conference. The study, conducted by the Pacific Institute for Research & Evaluation (PIRE), found that deficient roadways cost $217 billion, due to medical costs, productivity costs, property damage and quality of life costs.  Indeed, the cost of deficient roadway conditions is far greater than other safety factors, such as the $130 billion cost for driving while intoxicated, $97 billion for speeding or $60 billion for failing to wear a safety belt.

This week, the Minnesota Supreme Court declared Al Franken (D) the winner over Senator Norm Coleman (R) in the Minnesota Senate race.  This decision clears the way for Franken to be sworn in as early as next week.   With this victory, the Democratic Party gets the key 60th vote in the Senate that will assist in efforts to overcome filibusters if all Senators vote along party lines.  There is no guarantee that they can reach the magic number, especially with prominent Democrats Senator Ted Kennedy (Mass.) and Robert Byrd (W.Va.) battling medical illnesses.   In addition, some conservative Democrats often break with their leadership on various issues including card check and climate change.It is possible Franken could sit on the powerful Health, Education, Labor and Pensions (HELP) Committee.  AGC is interested in Franken's role on the HELP Committee, which has jurisdiction over many issues that concerns AGC members.  For example, this Committee is home to the debate on OSHA reforms, the current health care debate, and the "so-called" Employee Free Choice Act that AGC opposes and Franken has already publicly supported.  Continue to send letters in opposition to Card Check to your elected officials via the Legislative Action Center.

Despite the week-long congressional recess, congress continues to actively address health care reform. President Obama today held a nationwide town hall meeting where he renewed his desire to sign comprehensive legislation this fall but did not release any new details on a plan. The debate in congress has centered around Republican opposition to a public plan and even some Democrats objecting to the price tag that health care reform could bring.The three committees of jurisdiction in the House have released draft legislation and plan to formally mark up the legislation the week of July 14. They hope to hold a vote on the floor prior to the August recess. Issues of concern to AGC remain: definition of full-time employee, part-time and seasonal employee; new payroll taxes; and the coverage benefits an employer would be required to purchase.The Senate Health, Education, Labor and Pensions (HELP) Committee began their mark up last month and will reconvene on July 7. During the congressional break, staff has been working on the controversial components of the legislation on which the committee was unable to find common ground. The sticky points are language regarding public options and shared responsibility. The Senate Finance Committee continues to work on draft legislation and hopes to release formal details next week. The two committee drafts will have to be meshed together prior to addressing the issue on the Senate floor.