MCAA Government Affairs Update for September 30, 2024: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, September 30, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

MCAA Issues and Interests

Independent Contractors and Misclassification of Workers 

Foxx Subpoenas Acting DOL Secretary Su Regarding Biden Administration Efforts on Employee Misclassification 

While MCAA has been applauding the Biden Labor Department’s aggressive efforts to fight the misclassification of workers in our industry and the broader construction industry, last Monday Rep. Virginia Foxx (R-NC), the Chair of the House Education and Workforce Committee, expressed her displeasure with DOL’s efforts on this front by subpoenaing Acting Labor Secretary Julie Su for information about the Biden DOL’s “efforts to eliminate the independent contractor model and classify as many workers as possible as employees.” In the subpoena, Foxx seeks: (1) the total number of instances of misclassification that Labor Department inspectors have found; (2) the total number of misclassification enforcement investigations initiated, including the industry of those involved; and (3) the total number of misclassification enforcement investigations in which the Labor Department has collaborated with the National Labor Relations Board and the Federal Trade Commission. The subpoena requests responses by October 7, 2024.

Growing Speculation As To Who Will Run the Department of Labor

This week, speculation to who may be Secretary of Labor and hold other cabinet posts if Vice President Harris is elected President reached a new level. There is widespread speculation that California Senator Laphonza Butler, who chose not to run for a full term to replace Senator Diane Feinstein after being appointed to fill the remainder of her term, is being considered as a replacement for Julie Su at the Labor Department. In Republican circles, some of the names being discussed for Labor Secretary if President Trump wins include Patrick Pizzella, who was Deputy Secretary of Labor in Trump’s first term and Virginia Labor Secretary Brian Slater, who served at the Departments of Labor and Transportation during Trump’s first term.  

Pension Reform

PBGC Seeks Nominations for Employer Representatives to Agency’s Advisory Committee by October 28, 2024

Last Thursday, September 27^th, the Pension Benefit Guaranty Corporation (PBGC) requested nominations by October 28, 2024 to fill three seats on the agency’s Advisory Committee that are set to expire after the November elections in February 2025. Two of the seats represent employers—like MCAA members—who maintain PBGC-insured defined benefit pension plans and one seat representing the general public. The PBGC Advisory Committee is responsible for advising the PBGC on investment policy and other matters related to the PBGC’s mission to provide insurance to both multiemployer and single employer defined benefit pension plans. Overall, the Advisory Committee comprises seven members: two representing employee organizations, two representing employers who maintain pension plans, and three representing the public. If anyone within MCAA is interested in serving, nominations should: (1) state the person’s qualifications to serve on the Advisory Committee, including any specialized knowledge or experience, such as current or past service as a trustee of a defined benefit multiemployer pension plan relevant to the nominee’s proposed Advisory Committee position representing employers who maintain pension plans; (2) state that the candidate will accept appointment to the Advisory Committee if offered; (3) include the nominee’s full name, work affiliation, mailing address, phone number, and email address; (4) include the nominator’s full name, mailing address, phone number, and email address; and (5) include the nominator’s signature. Nominations are due by October 28, 2024 and can be submitted by email to OfficeOfTheDirector@pbgc.org. 

Non-Compete Agreements

FTC Appeals Ruling Temporarily Blocking Final Rule Banning Non-Compete Agreements 

MCAA has long voiced its concerns about the Federal Trade Commission’s (FTC) final rule banning most noncompete agreements.  The regulation is currently on hold after two district courts enjoined its enforcements. MCAA is closely monitoring the ongoing litigation over this final rule. Last Wednesday, September 26^th, the FTC filed a notice of appeal to the U.S. Eleventh Circuit Court of Appeals seeking to overturn a Florida District Court’s ruling temporarily blocking the FTC’s final rule banning most non-compete agreements. The appeal comes as the FTC faces a separate October 19^th deadline to appeal to the U.S. Fifth Circuit Court of Appeals the Texas Federal District Court injunction against this regulation. 

Decarbonization

There were several developments on the decarbonization front last week:

Harris Campaign Evasive on “Green New Deal”

While Vice President Harris has been clear that if she is elected President she will seek an exception to the Senate filibuster to enact legislation to protect reproductive rights, her campaign is being notably silent and evasive as to whether she would also seek an exception to the filibuster to enact “Green New Deal” legislation. She vowed to do when she was running for President in 2019. Reporters are trying to pin her campaign down on whether she still supports doing so. 

EPA Announces Final Rule to Minimize Releases of HFCs by Addressing Leaks from Refrigerant-Containing Equipment and Offering Related Webinars for Stakeholders

As mentioned above, on Monday September 23^rd, the Environmental Protection Agency (EPA) announced its final rule establishing the Emissions Reduction and Reclamation (ER&R) program under the American Innovation and Manufacturing (AIM) Act to minimize releases of hydrofluorocarbons (HFCs) from leaks in air conditioners and refrigeration systems and to maximize the reuse of existing HFCs. The final ER&R program includes requirements for repairing leaking equipment, the installation and use of automatic leak detection systems on large refrigeration systems, using reclaimed HFCs to service certain existing equipment, and removal of HFCs from disposable cylinders before they are discarded. The regulations also establish a standard that limits the amount of new HFCs that can be contained in reclaimed HFC refrigerants. Additionally, the EPA is establishing alternative standards under the Resource Conservation and Recovery Act for ignitable spent refrigerants when recycled for reuse. The EPA also released a fact sheet, a frequently asked questions page, a regulatory impact analysis addendum, and a pre-publication copy of the final rule. Additionally, the EPA will hold webinars on October 17, 2024 (register here) and October 22, 2024 (register here) on the final rule that will include a Q&A period to address questions about the new regulations and their impact on stakeholder operations, and cover the phasedown and key dates in the AIM Act timeline.

Treasury and DOE Announce Receipt of 50K Applications for Clean Energy Projects through the Section 48(e) Low-Income Communities Bonus Credit Program

Last Tuesday, September 24^th, the Energy (DOE) and Treasury Departments announced the receipt of more than 50,000 applications requesting over six gigawatts of capacity for clean energy projects across the U.S. in the 2024 program year of the Inflation Reduction Act’s Section 48(e) Low-Income Communities Bonus Credit Program. The agencies also announced that applications will continue to be accepted on a rolling basis until October 10, 2024. The closure of the application window for the 2023 program year follows Treasury’s publication earlier this month of proposed guidance for the Clean Electricity Low-Income Communities Bonus Credit Program, which builds upon and opens the Low-Income Communities Bonus Credit Program to additional clean energy technologies beyond wind and solar, such as hydropower and geothermal. 

CFTC Approves Final Guidance Regarding the Listing of Voluntary Carbon Credit Derivative Contracts 

Late on Friday September 20^th, the Commodity Futures Trading Commission (CFTC) approved final guidance regarding the listing for trading of voluntary carbon credit derivative contracts. The guidance applies to designated contract markets (DCMs), which are CFTC-regulated derivatives exchanges, and outlines factors for DCMs to consider when addressing certain requirements under the Commodity Exchange Act (CEA) and CFTC regulations that are relevant to the listing for trading of voluntary carbon credit derivative contracts. The guidance also outlines factors for consideration when addressing certain requirements under the CFTC’s Part 40 Regulations that relate to the submission of new derivative contracts and contract amendments to the CFTC. The final guidance is available here.

Other Interesting Things Since Our Last Report 

Thursday, September 26^th

• Political data website FiveThirtyEight debuted its polling averages for 2024 Senate races and, as discussed above, three of the five most competitive races are in Florida, Texas, and Nebraska, where Republican incumbents led by fewer than five points in each. These three races are polling more competitively than high-profile swing-state Senate races in Nevada, Michigan, and Pennsylvania, where Democrats are trying to retain Senate seats. 

Wednesday, September 25^th

• The Labor Department (DOL) announced $71 million in grants to support 27 organizations serving 14 states and the District of Columbia to improve job quality and expand access to good jobs in critical sectors, including: (1) nearly $38 million through the second round of the Building Pathways to Infrastructure Jobs Grant Program for 13 public-private partnerships between unions, employers, workforce development partners, and state apprenticeship agencies in California, Colorado, Georgia, Illinois, Maryland, Nevada, New York, Pennsylvania, and Texas to train workers for good-paying infrastructure, advanced manufacturing, professional, scientific, and technical services jobs that support the renewable energy, transportation, and broadband infrastructure sectors; and (2) nearly $20 million in Workforce Pathways for Youth demonstration grants to six national organizations that provide workforce development and training programs to youth aged 14 to 21 years. A full list of recipients receiving funding through this award is available here.
  
• The Environmental Protection Agency (EPA) announced $49 million in funding for technical assistance providers in rural, small, and Tribal communities to provide training on water infrastructure and management best practices, assess water quality challenges, help communities navigate the federal funding application process, and strategically invest in reliable infrastructure solutions. The EPA identified four priorities for this funding, including: (1) acquisition of financing and funding through the Bipartisan Infrastructure Law and other funding opportunities; (2) assistance to communities with households relying on septic systems and other decentralized systems; (3) improvement of technical, managerial, and financial capacity; and (4) training and technical assistance to Tribes across all areas of their Clean Water Infrastructure. The notice of funding opportunity (NOFO) is available here and a frequently asked questions (FAQ) page for the Water Technical Assistance Program NOFOs is available here.
  
• The Department of Justice released a revised version of its guidance entitled, “Evaluation of Corporate Compliance Programs” that federal prosecutors use to assess a company’s compliance program when it comes under investigation for bribery, fraud, or other criminal offenses. The revised guidance includes, among other things, new language on consideration of a company’s use of artificial intelligence, how companies should handle whistleblowers, and how they should incorporate data and lessons learned from prior misconduct within their business and at other companies. 

• House Minority Leader Hakeem Jeffries (D-NY) went after Trump for reversing course on the state and local tax (SALT) deduction, noting it was “Trump and extreme MAGA Republicans” who imposed the “draconian cap on the state and local tax deduction that has cost middle class Americans thousands of dollars in increased taxes.”

Tuesday, September 24^th

• The Labor Department announced the release of its Artificial Intelligence (AI) & Inclusive Hiring Framework, a new tool designed to help employers reduce the risks of creating unintentional forms of discrimination and barriers to accessibility as they implement AI hiring technology and to help workers and job seekers navigate the potential benefits and challenges they may face when encountering AI-enabled technologies. The framework (available here) has 10 focus areas, including practices, goals and sample activities that employers can adopt in their AI governance and disability-inclusive hiring initiatives. Each area has information on maximizing benefits and managing risks for workers and job seekers when an organization assesses, acquires, or deploys an AI hiring technology.
  
• The Interior Department (DOI) announced $92 million in funding from the President’s Bipartisan Infrastructure Law for 19 projects to restore and protect aquatic ecosystems in California, Idaho, Nevada, New Mexico, Oregon, and Washington State, including infrastructure projects related to water storage, dam safety, water purification and reuse, and desalination. A full list of projects funded through this announcement is available here. 
  
• Former President Trump said if he were elected, he would reward U.S.-based manufacturers with expanded research and development (R&D) tax credits, which would allow businesses to “write off 100% of the cost of heavy machinery and other equipment in the first year.” If implemented, this proposal would reverse a major component of Trump’s 2017 Tax Cuts and Jobs Act, which phased out such R&D tax credits.

• White House climate adviser Ali Zaidi said the Biden Administration is racing to push out the billions of dollars in clean energy investments included in the Inflation Reduction Act—a pledge that comes as Trump is vowing to dismantle the whole effort. 

• Senate Republicans privately told their biggest donors that the Montana Senate race is nearly in the bag and that Ohio is trending in Republicans’ direction, explaining that Trump holds a nine-point lead in the state and GOP Senate candidate Bernie Moreno is only trailing incumbent Sen. Brown (D-OH) by two points. 

• The Congressional Leadership Fund (CLF), the top House GOP super PAC, announced $18.5 million in ad reservations to aid: (1) Rep. Mariannette Miller-Meeks (R-IA) in Iowa’s 2st Congressional District; (2) Republican Scott Baugh in California’s 47^th Congressional District; (3) Rep. Mike Lawler (R-NY) in New York’s 17^th Congressional District; (4) Rep. Anthony D’Esposito (R-NY) in New York’s 4^th Congressional District; (5) Rep. Marc Molinaro (R-NY) in New York’s 19^th Congressional District; and (6) Republican Tom Barrett in Michigan’s 7^th Congressional District. CLF also added $2.6 million in California which could be used to help incumbent Reps. Mike Garcia (R-CA-27), Michelle Steel (R-CA-45), or Ken Calvert (R-CA-41).

Monday, September 23^rd

• The U.S. Climate Alliance, a coalition of 24 governors, announced a pledge to train one million new apprentices for climate and clean power industries over the next decade by working with labor unions and industry, among others. The program, dubbed the Governors’ Climate-Ready Workforce Initiative, aims to boost clean energy jobs by ensuring paths to career growth and good salaries and targeting underrepresented populations to take clean jobs, including as heat pump installers, solar panel manufacturers, and electric vehicle technicians. The news comes one year after the alliance pledged to install 20 million new heat pumps by 2030, a goal that Washington Gov. Jay Inslee (D) said is ahead of schedule.

Friday, September 20^th

• The Department of Energy (DOE) announced the availability of $3 billion in funding from the Bipartisan Infrastructure Law for 25 projects across 14 states to extract, process, and recycle critical minerals and materials and manufacture key battery components, as well as support next-generation battery manufacturing. The selected projects span strategic segments across the supply chain by building and expanding commercial-scale facilities to both extract and recycle critical minerals including lithium, graphite, and manganese, as well as to manufacture components of batteries. The selected projects also cover traditional and next-generation lithium-ion chemistries, as well as non-lithium-ion technologies, to ensure that the U.S. has a diverse portfolio of domestic battery technologies that can strengthen our overall energy security. The projects, once fully contracted, are projected to support over 8,000 construction jobs and over 4,000 operating jobs. DOE notes that more than half of the awardees have committed to or already have signed a Project Labor Agreement commitment with union partners including, among others, the United Association (UA), North America’s Building Trades Unions (NABTU), the United Brotherhood of Carpenters (UBC), and the United Food and Commercial Workers International Union (UFCW). The full list of award recipients can be accessed here.

Around the Country 

Northeast 

• Last week, the New York Congressional delegation did not show much support for New York City Mayor Adams after federal prosecutors unveiled a 57-page indictment against him alleging that he engaged in widespread corruption, including by conspiring with the Turkish government to receive illegal foreign campaign contributions. The indictment also accuses Adams of seeking and accepting improper benefits since at least 2014, when he was Brooklyn Borough President. Senate Majority Leader Chuck Schumer (D-NY) was asked about Adams’ indictment but put his phone to his ear and told a reporter he couldn’t talk because he was on the phone with his doctor. House Democratic Leader Hakeem Jeffries (D-NY) issued a statement saying that, “Adams is entitled to the presumption of innocence” and that “a jury of the Mayor’s peers will now evaluate the charges in the indictment and ultimately render a determination.” Progressive Rep. Alexandria Ocasio-Cortex (D-NY) called on Adams to resign “for the good of the City.” At a press conference on Thursday in response to the indictment, Adams was drowned out by protestors from the Black Lives Matter Greater New York Chapter, whose members shouted, “You’re a disgrace to Black people in this City.” The indictment comes as former New York Gov. Andrew Cuomo (D) is signaling to allies that he is preparing a run for mayor of New York City. 

• On September 25^th, the Energy Department (DOE) announced $17 million in grants to 22 local governments and the state of New York through the Bipartisan Infrastructure Law’s Energy Efficiency and Conservation Block Grant (EECBG) Program. The funding will be used to, among other things, help low-income households complete energy assessments and efficiency upgrades and to help municipal facilities conduct electrification studies, purchase electric vehicle charging stations, and install solar arrays and battery storage systems. A full list of projects funded under this award and to date through the EECBG is available here.

• On September 24^th, the New York Times published an article accusing Rep. Anthony D’Esposito (R-NY) of giving his lover and his fiancée’s daughter part-time jobs in his district office on Long Island, a potential violation of House ethics rules. D’Esposito reportedly hired the pair shortly after taking office in 2023, together paying them nearly $30,000 in taxpayer funds. The report could be a drag on D’Esposito’s tight re-election effort in New York’s 4^th Congressional District—one of the most hotly contested House races in the country.

West

• On September 26^th, the Labor Department announced that it recovered $69,050 in back wages and an equal amount in liquidated damages for 27 plumbers employed by Bulletproof Plumbing and Heating Inc. of Colorado Springs, CO who were not paid overtime wages. 

• On September 25^th, nuclear startup Oklo announced that the Energy Department granted approval for the company to conduct site investigations for its plans to build a prototype of its small scale nuclear power plant at the Idaho National Laboratory. Oklo’s design is being viewed as a key to powering data centers and many tech leaders have invested in the company. The site investigations will focus on infrastructure planning, environmental surveys and geotechnical assessments. The project still requires approval from the Nuclear Regulatory Commission (NRC), but Oklo’s goal is to break ground at the Idaho site in 2026 and have the reactor up and running by 2027.

• On September 25^th, the Interior Department (DOI) announced $9.9 million in funding to address dangerous and polluting abandoned mine lands in Colorado. Projects receiving funding will support jobs in coal communities that close dangerous mine shafts, reclaim unstable slopes, improve water quality by treating acid mine drainage, and restore water supplies damaged by mining. Awards can also enable economic revitalization by reclaiming hazardous land for recreational facilities and other redevelopment, such as advanced manufacturing and renewable energy deployment.

Northwest 

• On September 23^rd, the Energy Department (DOE) announced up to $112.5 million in funding to accelerate the design, fabrication, and testing of multiple wave energy converters (WECs), which harness power from ocean waves. The funding will help identify and mature high-potential WEC technologies, reduce financial risks for developers and incentivize investors, progress technologies at smaller scales while developing toward utility scale, and increase learning for installation, operations, and maintenance. WECs with utility applications will be tested at PacWave South, a test facility for wave energy technology located off the coast of Newport, Oregon. The full funding opportunity is available here and an informational webinar will be held on October 9, 2024 to discuss the funding opportunity and areas of focus. (Registration is available here by clicking “informational webinar.”)

Midwest 

• On September 24^th, the Commerce Department announced a $123 million grant for Polar Semiconductor to expand its manufacturing facility in Bloomington, Minnesota, which will allow the company to nearly double its U.S. production capacity of power and sensor chips. President Biden hailed the announcement, which is the first Commercial Fabrication Facilities Award under the CHIPS and Science Act (CHIPS Act). The award is expected to create over 160 manufacturing and construction jobs in Minnesota. Consistent with language approved as part of the CHIPS Act, this grant requires that all laborers and mechanics employed on the project be paid Davis-Bacon prevailing wages.

• On September 23^rd, National Economic Advisor Lael Brainard travelled to Detroit, MI to convene the Michigan Workforce Hub and announced new actions to support automakers and auto workers, including: (1) the launch of a joint effort with the Michigan Department of Labor, IBEW, and AFL-CIO Workforce Development Institute for an accelerated Commercial Driver’s License to Registered Apprenticeship Program pilot; (2) a partnership between DOL’s Women’s Bureau and Accelerator for America in the city of Lansing to increase representation of women in construction and skilled trades through the Leveraging Infrastructure Networks for Equity Initiative; (3) a joint DOE-industry effort to provide $23.6 million in funding for the Battery Workforce Challenge to “invest in equipment, technical support, mentorship, internships, and job placements and train up to 14,000 workers across the country for careers across the EV value chain—including technicians, electricians, skilled trades, and engineers”; (4) $1 billion in financing for small- and medium-sized auto suppliers; and (5) a new DOL pilot program to train workers in Wayne County for jobs in the auto supply chain.

Southeast

• On September 26^th, the Environmental Protection Agency (EPA) announced that it will hold a joint meeting with the Justice Department (DOJ) on October 10—11, 2024 to receive community input on mid- and long-term solutions to improve Jackson, Mississippi’s drinking water system to assist the agency’s oversight of the system. On November 29, 2022, a District Court in Mississippi entered an Interim Stipulated Order agreed to by the EPA, DOJ, the Mississippi State Department of Health, and the City of Jackson to, among other things, create a Priority Projects List with steps needed to stabilize the City’s drinking water system, remedy problems that contributed to the water crisis and establish sustainable practices, and to delay further litigation while the parties worked on a longer-term solution. The meeting will be held at the Mississippi e-Center at Jackson State University located at 1230 Raymond Road, Jackson, MS 39204 in the e-Logistics Room on October 10, 2024 at 6pm CT and in the California Room on October 11, 2024 at 10am CT.

Southwest

• On September 26^th, a new poll found incumbent Sen. Ted Cruz (R-TX) leading Rep. Colin Allred (D-TX) by just four points (49%-45%) in the Texas U.S. Senate race. 

• On September 23^rd, former GOP Rep. Liz Cheney (WY) endorsed Democratic Rep. Colin Allred (D-TX) in his U.S. Senate race against incumbent Sen. Ted Cruz (R-TX).