Despite a great deal of talk about Congress taking up economic stimulus legislation in a lame duck session, it still remains uncertain whether or not this will happen. The Senate is scheduled to be in session next week. In the House, Speaker Nancy Pelosi (D-Calif.) has expressed the desire to go back into session to address stimulus legislation but she has not yet officially called the House back into session.In a press conference this week, President-Elect Obama urged Congress to pass stimulus legislation as soon as possible. However, President Bush has expressed skepticism about the benefit from this legislation.AGC continues to advocate for the inclusion of infrastructure funding as part of the economic stimulus package. Prior to adjournment the House passed a stimulus bill which included $34 billion in infrastructure funding, including: $12.8 billion for the federal-aid highway program; $3.6 billion for transit; $600 million for airport capital improvement projects; $7.5 billion for water infrastructure; $5 billion for the U.S. Army Corps of Engineers; $3 billion for public school reconstruction; $500 million for Amtrak; and $1 billion for public housing construction. A Senate bill that included $25 billion in infrastructure spending was blocked from passage on a procedural motion.The House Ways and Means Committee, chaired by Representative Charlie Rangel (D-N.Y.), met October 29 for a hearing on economic recovery, job creation, and investment in America. Two panels testified before the committee with representatives from state and local governments, think tanks, and industry. To view the testimony AGC submitted for the hearing click here.Your Senators and Representatives need to hear from you this week. Please go to AGC’s Legislative Action Center and send a message to your elected officials.

Congressional leaders are advocating for inclusion of infrastructure funding in the economic stimulus legislation and they have asked AGC for information about current conditions in the construction industry as well as the positive impact that would result from increased infrastructure funding. Please take a few minutes to complete this survey. This information will be very useful in our efforts on Capitol Hill.

On Election Day, the American public voted overwhelmingly in support of investing in the future of the country. Voters in 25 states expressed strong support for infrastructure investment by approving about $122 billion in bonds and tax increases for public works projects. Most  ballot initiatives addressed transportation and school funding; however many states and localities approved initiatives for improving water infrastructure and other building infrastructure, including libraries, hospitals, and parks.More than 80% of the bond referendums passed, signaling the American public’s support to incur debt for increased infrastructure investment despite the recent economic woes. To view a list of ballot initiatives specific to the construction industry click here.

EPA is seeking public input on regulating greenhouse gas emissions from buildings and construction equipment. AGC and many other industry groups are mobilizing members and chapters to stop EPA. We can only do this by sending as many individual comments as possible in response to EPA’s Advanced Notice of Proposed Rulemaking (ANPR) on using the Clean Air Act to regulate greenhouse gas emissions.Members can submit customized comments easily using a template comment letter on the AGC web site. Comments must be customized and received by November 28, 2008 to count. Click here to submit your customized comments today.AGC’s primary concern is that using the Clean Air Act to regulate greenhouse gas emissions could halt building construction and jeopardize funding for highway and transportation projects. Once EPA controls a greenhouse gas under almost any section of the Act, most buildings in the U.S. that emit that “pollutant” would become subject to costly and time-consuming permitting and construction requirements under EPA’s Prevention of Significant Deterioration program. Another section of the Act would require EPA to develop standards for greenhouse gas emissions that states would need to incorporate into their implementation plans. Penalties for noncompliance include the loss of funding for future highway projects. AGC also is concerned with several proposed new requirements regarding fuel use and types, manufacturing of new equipment, and operating of equipment.AGC previously reported that the EPA planned to issue an advance notice of proposed rulemaking (ANPR) to “discuss and solicit public input” on how to use the Clean Air Act to control greenhouse gas emissions. To read the full AGC article, which provides a background on the EPA’s decision to issue an ANPR and some of the potential impacts click here.

The Federal Acquisition Regulation (FAR) Council on November 12 issued a final rule on its "Contractor Business Ethics Compliance Program and Disclosure Requirements." The rulemaking becomes effective on December 12, 2008.The rule amends the FAR to amplify the requirements for a contractor code of business ethics and conduct, an internal control system, and disclosure to the Government of certain violations of criminal law, violations of the civil False Claims Act, or significant overpayments. Specifically, the rule requires Federal contractors to:Establish and maintain specific internal controls to detect and prevent improper conduct in connection with the award or performance of any Government contract or subcontract; and,Timely disclose to the agency Office of the Inspector General, with a copy to the contracting officer, whenever, in connection with the award, performance, or closeout of a Government contract performed by the contractor or a subcontract awarded thereunder, the contractor has credible evidence of a violation of Federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in Title 18 of the United States Code; or a violation of the civil False Claims Act (31 U.S.C. 3729 3733).The rule also provides as cause for suspension or debarment, knowing failure by a principal, until 3 years after final payment on any Government contract awarded to the contractor, to timely disclose to the Government, in connection with the award, performance, or closeout of the contract or a subcontract thereunder, credible evidence of:Violation of Federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in Title 18 of the United States Code;Violation of the civil False Claims Act; orSignificant overpayment(s) on the contract, other than overpayments resulting from contract financing payments as defined in FAR 32.001, Definitions.

AGC has learned that the final rulemaking requiring Federal contractors and subcontractors to use the E-Verify system administered by the Department of Homeland Security, U.S. Citizenship and Immigration Services, as the means of verifying that certain of their employees are eligible to work in the United States will be published November 14, 2008. The rulemaking will take effect January 15, 2009. The Federal Acquisition Regulation (FAR) Council included several AGC-suggested provisions in the final rule, including: extending the time to permit Federal contractors to participate in the E-Verify program from 30 to 90 days; providING a longer period after this initial enrollment period – 30 calendar days instead of 3 business days – for contractors to initiate verification of existing employees who have not previously gone through the E-Verify system when they are newly assigned to a covered Federal contract; increases the threshold for prime contracts above the simplified acquisition threshold ($100,000) instead of the micro-purchase threshold ($3,000); and, provides contractors the option of verifying all employees of the contractor, including any existing employees not currently assigned to a Government contract.An advance copy of the 274 page final rule is available here.Further information on registration for and use of E-Verify can be obtained here.

House Speaker Nancy Pelosi (D-Calif.) on November 5 urged enactment of the $61 billion economic recovery package the House passed in September, which would have provided $30 billion in supplemental appropriations for many federal construction programs, when Congress reconvenes  the week of November 17.   The bill failed when the Senate was unable to pass a similar measure.  She did add, however, that the final passage of such legislation depends on cooperation from Senate Republicans and President Bush.AGC continues to press Congress to enact an economic recovery package with infrastructure investment as soon as possible to prevent further job losses in the industry and to create additional job opportunities for contractors and their workers.Earlier last month, Speaker Pelosi instructed all Democratic Congressional Leaders to hold hearings on the necessity and effectiveness of an economic recovery package that would include a substantial infrastructure investment component.  The Speaker has also indicated that Congress may consider another economic recovery package with a larger infrastructure component when the new Congress convenes next year.

On November 3 AGC submitted comments to the IRS in response to proposed regulations providing guidance to taxpayers in the home construction industry.  Specifically, the proposed regulations provide guidance on two issues: accounting for long-term construction contracts that qualify as home construction contracts under §460 of the Internal Revenue Code; and changes in method of accounting for long-term contracts under  §460.  Generally, §460 requires taxpayers to use the percentage-of-completion method (PCM) to account for taxable income from any long-term contract, but there is an exception from this general rule for home construction contracts.  Taxpayers that qualify for the home construction contract exemption can use methods such as the completed contract method.  The proposed regulations are intended to expand the scope of the home construction contract exemption. To view a copy of AGC’s letter, click here.

AGC PAC raised and spent more than $1,000,000 to impact the 2008 election cycle and support more than 200 construction-friendly candidates for federal office. For specifics on AGC PAC influence and grassroots campaigns, check out the 2008 AGC PAC election report.

The 111th Congress will be sworn in January 6, 2009. The Congress will consist of larger Democratic majorities in both the House and Senate. In addition to the election results, there will be congressional leadership and committee changes as well as new cabinet posts.It is important for AGC members to continue its 90 year history of working in a bipartisan fashion to promote the needs of the nation's construction industry. AGC looks forward to bipartisan work on pensions, immigration and long-term programs to invest in America's infrastructure, including transportation reauthorization, clean water infrastructure and investment in federal buildings. With strong Democratic majorities in both the House and Senate, AGC will work to show the impact of tax, health care and labor issues on the businesses that are members of the AGC.AGC has developed a Web page that contains information intended to inform AGC members on the role they can play in advocating for building a better construction industry, as well as a document titled New President, New Congress, New Threats and Opportunities.