ACEC ENVIRONMENT AND ENERGY COMMITTEE SUMMER MEETING FEDERAL

ACEC ENVIRONMENT AND ENERGY COMMITTEE SUMMER MEETING FEDERAL ADVOCACY UPDATE AUGUST 23, 2017 Lynn Schloesser Director, Environment and Energy Programs

Accomplishments from the 114 th Congress üNew surface transportation program (FAST Act). üSecured contracting out provision, defeated efforts to abolish QBS, mandate insourcing. üWater infrastructure (WIIN Act). üExport-Import Bank Reauthorization. üLifted ban on oil exports, grid reliability. üR&D tax credit, higher Section 179 expensing levels permanent; extensions of renewable energy tax credits, bonus depreciation. üFAA reauthorization extension “plus”.

2017 Annual Convention Lobbying Effort ü A National Infrastructure Plan § Support balanced package that includes direct funding for the Highway Trust Fund, water and other federal infrastructure programs with incentives for P 3 s; § Build support for bipartisan letter urging longterm funding solution for the Highway Trust Fund (majority of the House signed). ü Tax Reform § Balanced package that treats corporations and pass-through businesses equally.

Major Agenda Items § President still driving the agenda, but § § § stumbles and distractions diverting focus. Health Care Reform – ACA “repeal and replace” bill passed the House, action in the Senate this week. Focus is shifting to Tax Reform but the future is uncertain. Infrastructure – done right, both parties want it; this could become the vehicle for other initiatives.

FY’ 18 Budget/Appropriations § Trump budget proposal for FY’ 18 includes § cuts to major infrastructure programs: ØTransit capital investment grants – only existing projects, no new projects ØTIGER multimodal grants – eliminated ØUSDA water, CDBG program eliminated ØCorps construction budget reduced Cold reception on Capitol Hill – Congress moving forward with spending bills, largely rejecting proposed cuts.

Infrastructure Agenda for the 115 th Congress ü The Administration’s Plan ü FAA Reauthorization ü Safe Drinking Water State Revolving Fund (SRF) improvements, funding ü Water Resources Development Act (WRDA) ü Appropriations for Infrastructure

President’s Infrastructure Program § FY’ 18 Budget package included outline of the infrastructure package: Ø $1 trillion overall, with $200 billion in federal spending Ø focus on “transformational” projects Ø Incentives for P 3 s, regulatory reforms Ø TIFIA, WIFIA, expanded tolling, PABs Ø ATC “Corporatization” § Further detail to be released in the Fall. § Congressional leaders continue to voice support for key ACEC priority: additional direct federal funding.

Transportation Agenda § FAST Act implementation: ØMonitor, disseminate info on FASTLANE freight grants, alternative finance/VMT pilot program, other programs. ØPromote implementation of streamlining reforms, submitted ideas for additional reforms. § FAA Reauthorization: ØProgram expires end of September. ØKey priorities: § funding for AIP, lifting the cap on PFCs (Senate) § QBS expansion (House) § State DOT FAR compliance ongoing.

Water, Energy Agenda § ACEC, stakeholder groups pushing water for § § § infrastructure package – SRF funding, WIFIA. Drinking Water SRF bill, WRDA. Plastic pipe efforts at the state, federal levels. House, Senate re-starting push on Energy Bill. Administration actions to enhance energy markets – Keystone XL & Dakota Access pipeline projects – more to come. ACEC engaged on energy supply chain cyber security. Newly released ACEC Superfund study supports case for continued investment.

Tax Reform § House Tax Reform Blueprint: Ø Lower rates: 20% C corporations; 25% passthroughs; 33% individuals. Ø Eliminates most tax credits and deductions; R&D retained. Ø Eliminates individual & corporate AMT, estate tax. Ø Full expensing/limits on interest deductibility. Ø “Border adjustability” approach incentivizes exports. § Senate Finance Committee requesting input, ACEC submitted comments. § Tax reform more challenging than health care – impact to infrastructure initiative?

Federal Agencies/Procurement § Blacklisting rule eliminated. § Limit one-phase design-build and reverse § § § auctions (HR 679, pending bill in Senate). Federal agency overhead caps against FAR/DFAR guidance. USACE-CEO Roundtable in June discussed contracting out, ? ? New MOU with VA; additional agencies being pursued (OBO, GSA). SBA Mentor-Protégé rule; Committee working with the SBA to educate members. NYU study on Corps, NAVFAC costs launched.

Regulatory Issues § Administration pulling back the new FLSA salary threshold for overtime ($47, 476); starting new regulatory process. § “Blacklisting” rule repealed; new “blackball” effort underway in the States. § Broad regulatory review underway – White House soliciting ideas for repeal/modification of regulations. § Waters of the US (wetlands) rule, Clean Power Plan (CPP), still on hold pending court challenges, likely re-done/discarded as part of Administration regulatory review.

International § Engaging House/Senate appropriators to protect State Department funding against proposed 27% cut. § Preferences for US firms in USAID projects – Rep. Charlie Dent (R-PA) & Rep. Dutch Ruppersberger (D-MD) included report language in FY’ 18 State Dept. Appropriations bill. § Promoting use of QBS with multi-lateral banks. § Export-Import Bank -- Administration has nominated new Board members (quorum needed to enable the Bank to approve loan requests greater than $10 million).

Winning with ACEC/PAC § Raised $1, 010, 433 in 2016, nearly $2 million for the cycle; 41 states made their 2016 PAC goal. § 2015 -16 Cycle PAC Disbursements totaled $2 million as ACEC/PAC contributed to 318 House and Senate candidates and 23 political committees. § Nearly $600, 000 raised to date in 2017; 8 states at Goal so far: IN, WI, HI, TN, MA, RI, DE and MT. § Thank you for being a part of ACEC/PAC’s success!

Government Affairs Staff Steve Hall Vice President, Government Affairs Matt Reiffer Director, Transportation Greg Knopp Executive Director, Political Affairs Charles Kim General Counsel Lynn Schloesser Director, Environmental and Energy Programs Jessica Salmoiraghi Director, Federal & International Programs Katherine Bohny ACEC-PAC Director Katharine Mottley Director, Tax/Regulatory Affairs Michael Grimes Government Affairs Coordinator Mark Steiner, PE, Senior Policy Advisor