Archives: News Items

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).

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 23, 2024 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

MCAA Issues and Interests 

Registered Apprenticeship

House Advances USA Workforce Investment Act

On September 11^th, House Ways and Means passed out of Committee the “USA Workforce Investment Act” (H.R. 9461), that would allow a credit against tax for charitable donations to nonprofit organizations providing workforce training. The MCAA and our union partners opposed the bill because it was drafted to not allow a tax credit for contributions to registered apprenticeship plans created through a collectively bargained agreement. MCAA is also concerned that the bill lacks any meaningful quality standards for workforce training programs that may receive this credit.   

Despite our efforts, the bill advanced out of Committee on a party-line vote of 22-15. The MCAA was able to help persuade Rep. Brian Fitzpatrick (R-PA), Rep. Nicole Malliotakis (R-NY), and Rep. Mike Carey (R-OH)  to abstain from voting on the bill, and to get all Democrats on the Committee to oppose the bill. While we are disappointed that the bill advanced out of Committee, we believe our outreach demonstrated that this bill has problems since three Republicans left the markup to avoid voting on it and made their concerns about it clear to the Chairman. The government relations team is confident we can turn back the effort to move the bill before the November elections.

DOL National Apprenticeship Modernization Rule

In addition to our work on the “USA Workforce Investment Act,” over the last two weeks and throughout the August recess, the MCAA policy team continued our outreach to the Department of Labor regarding changes we requested to the Department’s rulemaking on “National Apprenticeship System Enhancements” in joint comments that we filed with the UA in March 2024. The final rule has been pending review by the White House Office of Information and Regulatory Affairs (OIRA) since June 14, 2024. We have been stressing the concerns highlighted in the joint comments the MCAA and the UA submitted on this rulemaking. We are also urging retention of some provisions of the proposed rule that we like. Given the long delay in the review at OIRA, we are confident some changes are being made and will continue pressing our concerns given that it is unclear whether some or all our concerns will be addressed. 

Project Labor Agreements and Davis-Bacon Prevailing Wage

Over the last two weeks, the MCAA continued its outreach from the August Congressional recess to oppose pending Congressional Review Act (CRA) resolutions to rescind MCAA-supported rulemakings on project labor agreements from the Federal Acquisition Regulatory Council and on Davis-Bacon prevailing wage from the Department of Labor. As lawmakers race to fund the federal government ahead of the September 30^th funding deadline, punt several must-pass bills like the National Defense Authorization Act to the lame duck session of Congress in November and December, and work to depart D.C. ahead of October to campaign, we are growing confident that we may be able to prevent these CRA resolutions from being considered. We are, however, continuing to closely monitor litigation against these rulemakings. 

Pension Reform

IRS Extends Deadlines for Retirement Plans to Update Plan Documents 

As we continue to engage Congress regarding the prospects for pension reform in the coming debate next Congress over reauthorizing provisions of the 2017 Tax Cuts and Jobs Act, we wanted to share that on September 12^th, the Internal Revenue Service (IRS) announced that it is extending deadlines for collectively bargained retirement plans and other retirement plans to update their documents to align with the revisions mandated by the SECURE Act; the SECURE 2.0 Act; the Coronavirus Aid, Relief, and Economic Security (CARES) Act; and the Taxpayer Certainty and Disaster Tax Relief Act. Collectively bargained plans now have until December 31, 2028, to amend their documents to be in compliance with these requirements.

Decarbonization

There were several developments on the decarbonization front over the last two weeks:

IRS Releases Proposed Rule on Alternative Fuel Vehicle Refueling Property Credit 

On September 19^th, the Internal Revenue Service (IRS) released a proposed rule regarding the “Section 30C Alternative Fuel Vehicle Refueling Property Credit.”  Comments on the proposed rule are due by November 18, 2024.

To qualify for the Section 30C credit detailed in the proposed rule, refueling property must be used to store or dispense “clean-burning fuel” or to recharge electric motor vehicles placed in service after December 31, 2022, and before January 1, 2033, within a low-income community or within a non-urban Census tract. “Clean-burning fuels” eligible for the Section 30C tax credit are: (1) electricity, (2) any fuel for which at least 85 percent of the volume consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquified natural gas, liquefied petroleum gas, or hydrogen; (3) any mixture that consists of two or more of the following: biodiesel, diesel fuel, or kerosene and at least 20 percent of the volume of which consists of biodiesel determined without regard to any kerosene in such mixture; and (4) any transportation fuel as defined under section 45Z(d)(5) of the Internal Revenue Code.

The credit amount for property not subject to depreciation is 30% of the cost of the qualified property placed in service during the tax year. The credit amount for depreciable property is 6% of the cost of the qualified property placed in service during the tax year but may be increased to 30% of the cost of the qualified property if the prevailing wage and apprenticeship requirements are satisfied. The proposed rule provides guidance on how to calculate the credit, including what constitutes an “item” of qualified alternative fuel vehicle refueling property, the additional costs considered in determining the cost of the item, and how to treat dual-use property.

An eligible census tract that qualifies for the credit is any population census tract that is a low-income community or any population census tract that is not an urban area. The proposed rule provides guidance for determining whether a population census tract is an eligible census tract. In conjunction with the release of the proposed rule, the IRS also issued Notice 2024-64 that modifies Notice 2024-20 published on February 12, 2024 to provide guidance on eligible census tracts and referring taxpayers to Appendix A and Appendix B containing eligible census tracts designated by a unique identifier called an 11-digit census tract GEOID. Notice 2024-64 modifies Notice 2024-20 by updating the mapping tools that taxpayers can use to identify the 11-digit census tract GEOID for a location where a property is placed in service. Notice 2024-64 also extends the applicability period of Notice 2024-20, as amended. More information is available on the IRS’ Alternative Fuel Vehicle Refueling Property Credit Website.

Phasedown of HFCs

As we continue to engage with federal agencies on the hydrofluorocarbons (HFCs) phasedown pursuant to the American Innovation and Manufacturing (AIM) Act of 2020, we learned that on September 13^th, the White House Office of Information and Regulatory Affairs completed its review of the Environmental Protection Agency’s (EPA) final rule entitled, “Phasedown of Hydrofluorocarbons: Management of Certain Hydrofluorocarbons and Substitutes Under Subsection (h) of the American Innovation and Manufacturing Act of 2020.” EPA’s proposed rulemaking covers practices, processes, or activities regarding the servicing, repair, disposal, or installation of equipment, for the purposes of maximizing the reclamation and minimizing the release of certain HFCs from equipment and ensuring the safety of technicians and consumers. Among other provisions, EPA proposed emissions reduction requirements for certain equipment containing HFCs and their substitutes as well as requirements for the reclaiming of HFCs.

EPA Issues Enforcement Alert Regarding Compliance Issues Related to Importation of HFCs

Relatedly, on September 9^th, the EPA issued an Enforcement Alert providing information on common compliance issues the agency has observed related to the importation of bulk hydrofluorocarbons (HFCs). So far in fiscal year 2024, the EPA has completed nine civil settlements to resolve claims of unlawful imports of HFCs. The most recent settlements were against five companies—Clean Venture, Inc.; HVAC Services; Liferafts Incorporated of Puerto Rico; Little Leaf Farms, LLC; and Parker Engineering and Mechanical, Inc. Each of these companies imported HFCs without allowances in violation of the AIM Act. The enforcement actions are authorized by the AIM Act of 2020.

Other Interesting Things Since Our Last Report

Thursday, September 19^th

• Ten GOP governors from Louisiana, New Hampshire, Tennessee, Virginia, Arkansas, Indiana, South Dakota, Oklahoma, Georgia, and Wyoming announced the formation of the Governors Coalition for Energy Choice, a coalition aimed at opposing Biden Administration renewable energy mandates and reducing regulations around energy production. The organization’s mission statement says the coalition aims to “ensure continued energy choice, minimize permitting and other regulatory barriers, limit expensive energy mandates, focus on affordability and reliability of energy infrastructure, and coordinate to positively manage energy resources and the environment.”

• The Federal Energy Regulatory Commission (FERC) announced that it has proposed to require new or modified critical infrastructure (CIP) standards to address the growing risks posed by malicious actors seeking to compromise the reliable operation of the bulk-power system. The proposal would direct the North American Electric Reliability Corporation (NERC) to require entities to identify current supply chain risks to their grid-related cybersecurity systems at specified intervals, assess and take steps to validate the accuracy of the information received from vendors during the procurement process, and document, track, and respond to these risks to their systems. FERC also proposed to approve a CIP reliability standard that requires internal network security monitoring inside an entity’s electronic security perimeter. FERC’s move comes after Wednesday’s announcement that the Biden Justice Department disrupted a group of Chinese hackers who were working at the direction of the Chinese government to infiltrate critical infrastructure in the U.S.

• CNBC reported that Port of New York/New Jersey executives have begun preparations for a complete work stoppage by the International Longshoreman’s Association (ILA). A strike by the ILA when its contract expires at the end of this month would shut down five of the 10 busiest ports in North America, and a total of 36 ports along the East and Gulf Coasts of the U.S. Between 43% and 49% of all U.S. imports and billions of dollars in trade monthly are at stake as the October 1st deadline for a new contract approaches. The Biden Administration already said it will not invoke the Taft-Hartley Act to force ILA members to go back to work and is urging the parties to return to the bargaining table.  

Wednesday, September 18^th

• The International Brotherhood of Teamsters announced that they would not endorse any candidate in the November presidential election, but publicly released polling data of its members that showed the members supported former President Trump over Vice President Kamala Harris 59% to 34%. After the national leaders of the Teamsters decided against an endorsement, Teamsters Joint Councils 7 and 42 — which are made up of 39 local unions representing 300,000 Teamsters in California, Nevada, Hawaii and Guam endorsed Vice President Harris, saying she and running mate Tim Walz have “a history of supporting expanded labor protections for workers, like the proposed Protect the Right to Organize Act and a Minnesota law that will ban employers from forcing workers to attend anti-labor meetings.” The move represents a rift within the Teamsters’ membership in liberal states out West, where Trump remains unpopular, and the union’s membership base in the Midwest and South.

• House Speaker Mike Johnson (R-LA) outlined his economic agenda for the first 100 days under a second Trump administration during a speech at the America First Policy Institute. Among other priorities, Johnson said Republicans would: (1) extend the tax cuts included in the 2017 Tax Cuts and Jobs Act; (2) repeal “wasteful” tax credits included in the Inflation Reduction Act (IRA), as well as “anti-energy” regulations; (3) use the tax code to deter illegal immigration and eliminate immigration loopholes; and (4) support a robust Child Tax Credit and the “dignity of work.” Speaker Johnson’s remarks come as the IRA spurs clean energy investments in Republican-led congressional districts across the country, prompting many Republican lawmakers to voice support for keeping at least some of the IRA’s tax credits. House Speaker Johnson (R-LA) reflected this when he said, “you’ve got to use a scalpel and not a sledgehammer because there’s a few provisions in there that have helped overall.”
  
• The Biden Administration is working to award all the grants from the President’s Inflation Reduction Act (IRA) before a new president takes office amid Trump’s threats to cancel the law’s unspent funds. The Biden Administration has awarded $90 billion in grants to climate, clean energy, and other projects so far under the IRA, which amounts to 70% of the law’s roughly $120 billion in total funding and over 80% of what the law made available before 2025.

• As the Department of Labor’s sweeping heat injury and illness rule covering both outdoor and indoor workplaces remains open for public comments and the MCAA team works with the Construction Industry Safety Coalition to provide input on the rule, new technologies are already being deployed in workplaces to save workers from becoming overheated and dehydrated. Among them are mobile apps that detect heat stress and offer tips on how to cool down, wearable devices that nudge workers when they’re dehydrated, clothing made with cooling fabrics, and machines that distribute cool air indoors more effectively.
  
• Rep. Andy Harris (R-MD) was elected as the new chair of the conservative House Freedom Caucus, officially replacing Rep. Bob Good (R-VA), who lost a Republican primary for Virginia’s 5^th Congressional District earlier this year.

Tuesday, September 17^th

• Rep. Eric Burlison (R-MO) introduced H. J. Res. 203, a Congressional Review Act resolution to nullify the National Labor Relations Board’s (NLRB) final rule on “Representation-Case Procedures: Election Bars; Proof of Majority Support in the Construction Industry Collective-Bargaining Relationships.” The NLRB’s final rule restored three NLRB policies that facilitate union organizing, including the NLRB’s policy on voluntary recognition in the construction industry, the blocking charge policy, and the policy on construction industry bargaining relationships.
  
• The Labor Department (DOL) issued a blog post announcing a new online resource on Substance Use Disorder (SUD) in the Workplace, which clarifies that people with SUD may be protected under the Americans with Disabilities Act and the Rehabilitation Act and entitled to accommodations to help them continue recovery or stay productive while in treatment. The new resource contain a toolkit to help employers develop recovery-ready workplace policies, a guide for employers on supporting workers with SUD, and a companion guide for workers.

Monday, September 16^th

• The Energy Department (DOE) announced $90 million in funding for competitive awards to help states, cities, tribal nations, and their partners implement updated energy codes for residential and commercial buildings. Funded by the President’s Bipartisan Infrastructure Law, these awards will support 25 new projects across the country to help ensure buildings meet the latest standards for energy efficiency. The funding is part of the $225 million Resilient and Efficient Codes Implementation (RECI) initiative that supports workforce development and other code-implementation solutions in high-impact states with substantial construction activity. The projects will also expand stakeholder engagement opportunities through tailored rural and regional collaboratives. Selected projects include: (1) $2.2 million for the National Association of State Energy Officials to establish a new and replicable approach to evaluate the impact of building energy codes on resilience and pilot the strategy in Arizona and Florida; (2) $1.6 million to the New Buildings Institute, South-Central Partnership for Energy Efficiency as a Resource and Austin Energy to support the implementation of efficient and resilient energy codes in Texas and Oklahoma, including access to training on the latest codes; and (3) $1.6 million to the Rhode Island Office of Energy Resources and the Rhode Island Builders Association to provide energy code training and educational resources to building inspectors, design professionals, builders, and construction trades in Rhode Island to support implementation of the latest energy codes. A full list of projects supported under the RECI initiative is available here.

• The Centers for Medicare & Medicaid Services (CMS) released “Medicare Prescription Payment Plan” resources related to the Inflation Reduction Act’s new payment option to help anyone with a Medicare drug plan or Medicare health plan manage out-of-pocket costs for drugs covered under their plan by spreading payments across the calendar year. These resources are for Part D Medicare sponsors to share with enrollees to help them determine if the payment option might help them and include: (1) a webpage that explains the Medicare Prescription Payment Plan and provides a response tool to help Part D enrollees determine if the payment option might help them; (2) a fact sheet in English and Spanish (among other languages); and (3) a takeaway card in English and Spanish (among other languages). Additionally, CMS is developing a cost preview inside of the Medicare Plan Finder that is based on a consumer’s specific drug list, a set of consumer-selected Medicare Advantage or Part D plans, and consumer-selected pharmacies, including both retail locations and mail order options. This cost preview will be made available in time for open enrollment in the fall.
  
• CNBC reported that four years after the start of the COVID-19 pandemic, there are 900,000 fewer students enrolled in college than before the pandemic. Experts say this is due to growing worries over rising tuition costs and large student loan balances that are causing more high schoolers to make alternative plans. Roughly half (49%) believe a high school degree, trade program, two-year degree or other type of enrichment program is the highest level of education needed for their anticipated career path. Additionally, 56% say they believe that real world and on-the-job experience is more beneficial than obtaining a higher education degree.

• The Kaiser Family Foundation suggested that the outcome of the November presidential election could slow down the Biden Administration’s plans to replace lead water pipes nationwide, particularly if the Biden Environmental Protection Agency’s recent lead pipe replacement rule does not take effect by October and enforcement of the less-stringent Trump Administration rule takes its place.  

Friday, September 13^th

• Senate Health, Education, Labor, and Pensions (HELP) Ranking Member Bill Cassidy (R-LA) sent a letter to the Department of Labor (DOL) requesting responses from the Labor Department’s Office of Workers’ Compensation Programs (OWCP) following a May 2024 report from the DOL Office of Inspector General (OIG) that found that American energy workers are being prevented from and experiencing delays in receiving medical care under the Energy Employees Occupational Illness Compensation Program Act (EEOICPA). Per the OIG report, OWCP “has routinely overlooked or missed errors in benefits claims, including incomplete employment verification, insufficient evidence to link the claimant’s illness to their employment, or failure to follow the documented procedures for making a claim for benefits. Ranking Member Cassidy (R-LA) in his letter argued that “[t]hese errors can prevent qualified workers and their families from receiving EEOICPA health benefits, threatening the lives of these workers who need medical care.”

Thursday, September 12^th

• The Department of Energy (DOE) announced an additional $9 million in funding from the President’s Bipartisan Infrastructure Law through the Industrial Training and Assessment Centers (ITAC) Implementation Grants program to support 47 small- and medium-sized manufacturers (SMMs) across the country to implement a wide variety of energy and efficiency projects, including installing onsite solar and heat pumps, improving lighting and heating, and electrifying industrial equipment and fleets. More information about the ITAC program, including the types of projects selected under the grant program and a list of grant selectees is available here.
  
• Senior Biden Administration officials met with OpenAI CEO Sam Altman, Google Chief Investment Officer Ruth Porat, and Anthropic CEO Dario Amodei to discuss the development of data centers for artificial intelligence. The meeting reportedly focused meeting AI’s infrastructure, workforce, and permitting demands, as well as maintaining American leadership on AI and ensuring that the data centers that AI requires will be “built in the United States.”

• The House voted 217-192 to pass H.R. 7980, the “End Chinese Dominance of Electric Vehicles (EVs) in America Act,” to modify the Inflation Reduction Act’s EV tax credit to override Treasury regulations allowing EVs powered by batteries with minerals or technology from certain Chinese companies.  

• The Transportation Department’s (DOT) Federal Highway Administration (FHWA) announced a Request for Information (RFI) from stakeholders about electric vehicle (EV) charging technologies and infrastructure needs for medium- and heavy-duty vehicles. The RFI seeks input in four areas to support medium- and heavy-duty electric vehicles: (1) unique EV charger and station needs; (2) vehicle charging patterns; (3) charging technology and standardization; and (4) workforce, supply chain, and manufacturing to support charging of medium- and heavy-duty battery EVs in DOT vehicle classes four through eight, which include delivery vans, school buses, semi-tractor trucks, fire trucks, dump trucks, and tour buses.

• Roll Call released its updated list of the most endangered Senate incumbents, with Sens. Jon Tester (D-MT), Sherrod Brown (D-OH), and Bob Casey (D-PA) topping the list. This comes as the Cook Political Report shifted the Montana Senate race between Tester and Republican Tim Sheehy from “toss up” to “leans Republican.” Roll Call also released its updated list of the most endangered House incumbents and Reps. Brandon Williams (R-NY), John Duarte (R-CA), and Anthony D’Esposito (R-NY) were at the top of the list.

• The Koch-affiliated Libre Initiative Action endorsed: (1) Rep. John James (R-MI) in his re-election bid in Michigan’s 10^th Congressional District; and (2) Sen. George Logan (R-CT), who is challenging Rep. Jahana Hayes (D-CT) in Connecticut’s 5^th Congressional District.

Tuesday, September 10^th

• U.S. Department of Agriculture (USDA) Secretary Tom Vilsack said that he’d like to see guidance from the USDA on the 45Z tax credit (which would reward production of lower emitting transportation fuels) issued before the end of December, saying that, “It’s on the top of my list.” Vilsack also reiterated that the USDA is working on a rule to be used as part of the U.S. Treasury’s final guidance to the 45Z tax credit taking effect in 2025.

• House Oversight and Accountability Ranking Member Jamie Raskin (D-MD), Senate Budget Chair Sheldon Whitehouse (D-RI), and Senate Finance Chair Ron Wyden (D-OR) sent new letters to Chevron, ExxonMobil, Continental Resources, Chesapeake Energy, Occidental Petroleum, Venture Global LNG, Cheniere Energy, EQT Corporation, and the American Petroleum Institute demanding compliance with the Committees’ original requests for information regarding quid pro quo solicitations made by Trump. This comes after Trump reportedly offered to sign Executive Orders and take other official actions to benefit oil and gas companies in exchange for $1 billion in contributions to his presidential campaign.

Monday, September 9^th

• CNBC reported that there is a new urgency to build small modular nuclear reactors as demand for clean electricity is rising from artificial intelligence, manufacturing and electric vehicles while utilities across the country are retiring coal plants as part of the energy transition—raising worries about a looming electricity supply gap. 

• According to a new Gallup poll, 70% of Americans say they approve of labor unions, while 23% disapprove and 7% have no opinion. This is just one point shy of 71% reading in 2022, which marked the highest approval rating for unions since 1965.

Friday, September 6^th

• The Labor Department published a blog post related to the Bureau of Labor Statistics’ annual employment projections data, which predicted that over the next 10 years employment in the construction and extraction sectors will increase by 5.6%.

Around the Country

Northeast 

• On Friday, September 20^th, Constellation Energy issued a press release announcing a Microsoft and Constellation Energy power purchase deal that would enable the restart of a nuclear reactor at Pennsylvania’s Three Mile Island nuclear plant. The plan is to bring Three Mile Island’s dormant 835 megawatt Unit 1 that closed in 2019 back online by 2028 so it can be used to power a Microsoft data center. Microsoft has committed to a 20-year supply deal for power from this reactor unit. Constellation plans to invest $1.6 billion to revive the reactor. The deal is, however, contingent on approval by the U.S. Nuclear Regulatory Commission authorizing the restarting of the reactor.

• On September 18^th, Democratic Newark City Councilmember LaMonica McIver defeated Republican small businessman Carmen Bucco in a special election to fill the remainder of the late Rep. Donald Payne, Jr.’s (D-NJ) term in New Jersey’s 10^th Congressional District. McIver and Bucco will face a rematch in November for a full term.

• On September 17^th, a new poll found Maryland Democratic Senate candidate Angela Alsobrooks leading former Maryland GOP Governor Larry Hogan by 7 points (49%-42%) in the state’s U.S. Senate race. 

• On September 16^th, the Pennsylvania Supreme Court ruled that mail-in ballots with incorrect dates will not be counted in November. The court’s reversal is a win for Republicans and was attacked by the state’s American Civil Liberties Union Chapter, which labeled misdated ballots a “common trivial error on the external envelopes.”

• On September 10^th, Sen. Sarah McBride (D) won the Democratic primary for Delaware’s at-large House seat, putting her one step closer to becoming the first transgender member of Congress.
  
• On September 9^th, Sen. George Helmy (D-NJ), who previously served as chief of staff to NJ Gov. Phil Murphy (D), was sworn-in to fill the remainder of Sen. Bob Menendez’s (D-NJ) Senate term. Helmy will serve on the Senate Foreign Relations, Finance, and Banking Committees, the same assignments previously held by Menendez.

West

• On September 9^th, the Interior Department (DOI) announced that it is finalizing the following clean energy projects in Nevada: (1) the Greenlink West Transmission Project to create a system of new transmission lines and facilities crossing federal, state, Tribal and private lands from North Las Vegas to Reno through Clark, Esmeralda, Lyon, Mineral, Nye, Storey and Washoe Counties, and provide up to 4,000 megawatts of clean energy—enough to power at least 4.8 million homes; and (2) the Libra Solar Project, which includes a solar facility battery energy storage system expected to generate and store up to 700 megawatts of energy on approximately 5,778 acres of public lands in Mineral County. Additionally, DOI announced that it has opened a 90-day comment period for Draft Resource Management Plan Amendments and Environmental Impact Statements for the following proposed projects in Nevada: (1) the Greenlink North Transmission Project, which would designate a 210-mile-long by 3,500-foot-wide utility corridor and unlock up to 4,000 megawatts of clean energy; and (2) the Bonanza Solar Project, a proposed 300-megawatt solar facility that would include battery storage and a 5.4-mile gen-tie line on approximately 5,133-acres of public lands in Clark and Nye Counties, near Las Vegas. 

Northwest 

• On September 19^th, Oregon Gov. Tina Kotek (D) announced plans to use a new land use law to propose Hillsboro, Oregon, a suburb of Portland, for a semiconductor facility. Specifically, Kotek is proposing to expand Hillsboro’s city boundaries to incorporate half a square mile of new land to provide space for a new semiconductor research center.

Midwest 

• On September 19^th, the Environmental Protection Agency (EPA) announced partnerships with the cities of Monmouth, Elgin, and Maywood, Illinois to help identify drinking water lead pipes and accelerate their replacement through the Bipartisan Infrastructure Law’s Get the Lead Out Initiative, to achieve 100% replacement of lead service lines.

• On September 12^th, the Environmental Protection Agency (EPA) announced a collaboration with the city of Fostoria, Ohio to help identify lead in pipes used for drinking water, develop lead service line replacement plans, increase community outreach and education efforts, and apply for funding through the Get the Lead Out Initiative, funded entirely by the Bipartisan Infrastructure Law, to move the nation toward 100% lead service line replacement.
  
• On September 9^th, a new poll found that incumbent GOP Sen. Deb Fischer (NE) holds a one-point lead (39%-38%) against Independent Dan Osborn, a union steamfitter, with 23% of voters undecided. The poll also found incumbent GOP Rep. Don Bacon (NE) trailing his Democratic opponent Tony Vargas by six points (46%-40%) in the race for Nebraska’s 2^nd Congressional District.

Southeast

• On September 16^th, the Labor Department (DOL) announced $164,540 in proposed penalties against South Marine Systems of Westlake, which is based in Pascagoula, Mississippi. Federal safety inspectors found a welding crew working aboard a commercial iron ore vessel moored at the Port of Ashtabula in Ohio narrowly avoided disaster after a large fire erupted as they welded off paint in a cargo hold, an incident their employer could have avoided by following DOL safety regulations. Specifically, the Occupational Safety and Health Administration (OSHA) found the employer did not designate a competent person able to identify hazards and failed to have a marine chemist present to test for hazardous atmospheres before welding started, among other things. OSHA also determined South Marine Systems did not stop work when small fires began to assess hazardous conditions and risks. The United States Coast Guard (USCG) and National Transportation Safety Board have opened separate investigations of the incident.

• On September 12^th, the Labor Department (DOL) announced that it has recovered $44,816 in back wages for 12 employees of Walker White Inc., a subcontractor performing plumbing and HVAC work under a contract with the U.S. Army Corps of Engineers at Fort Jackson in South Carolina, after a DOL Wage and Hour Division investigation determined the company wrongly classified apprentices as laborers and did not pay the required prevailing wage rates, including the basic hourly rate and fringe benefits, in violation of the Davis-Bacon Act. Investigators also found the employer failed to pay overtime rates of time-and-one-half an employee’s basic rate of pay for hours over 40 in a workweek, a violation of the Contract Work Hours and Safety Standards Act.

Southwest

• The Interior Department (DOI) announced $16.73 million in Bipartisan Infrastructure Law funding to assist five Tribal Nations in cleaning up orphaned oil and gas wells on their homelands. This funding may be utilized to plug, remediate or reclaim orphaned wells on Tribal lands, restore soil and habitat in areas degraded due to orphaned wells, decommission or remove associated infrastructure, identify and characterize additional undocumented wells on Tribal land, and set up well-plugging capacity where not already established. This effort advances the Biden Administration’s Justice40 Initiative that sets a goal to deliver 40% of the overall benefits of certain federal investments to historically disadvantaged communities that have been marginalized by underinvestment and overburdened by pollution. The funding is going to the Chickasaw Nation in Oklahoma, Chippewa Cree Tribe of the Rocky Boy Reservation in Montana, The Comanche Reservation in Oklahoma, The Jicarilla Apache Nation in New Mexico, and the Osage Nation in Oklahoma.

• On September 16^th, Democrats said they are seeing signs they could make inroads in the traditionally deep-red state of Texas this year as Sen. Ted Cruz (R-TX) has struggled to cross the 50-percent mark in polling in his U.S. Senate race against Democratic challenger Rep. Colin Allred.