2015 annual convention & legislative summit key issues preview steve hall vice president,...

2015 Annual Convention &Legislative SummitKey Issues Preview

Steve Hall

Vice President, Government Affairs

The Voice of America’s Engineering IndustryThe Voice of America’s Engineering Industry

Key Priorities for ACEC’s Citizen Lobbyists

Sustainable funding for transportation Passage of a comprehensive energy

strategy Tax Reform Design-build procurement reform


Key Issue – Sustainable Funding for Transportation

Matt Reiffer

Director, Transportation Programs


Transportation

MAP-21 extension expires May 31, 2015.

Highway Trust Fund balance could be depleted in early summer, delaying or rationing payments to states.

House and Senate committees drafting long-term reauthorization bills.

Everything hinges on funding: $100 billion in new revenue needed for six-year bill at current levels plus inflation.


Funding OptionsIncrease / index existing gas tax

Sales tax on gasoline or general sales taxes dedicated to transportation

Energy-related revenues, e.g. offshore oil and gas royalties, federal lands leases

Freight charges

Tolling

Expanded use of P3s, bonding/debt instruments

Revenues from repatriated foreign earnings

General fund transfers


TransportationKey Message Points:

Infrastructure is the base for economic growth.

Underinvestment, uncertainty hurt the economy.

Short-term patches and budget gimmicks are fiscally irresponsible.

There is a wide array of options for the long-term stability of the Highway Trust Fund.

Requests to Lawmakers:

Enact a long-term reauthorization with increased investments, sustainable revenues.


Key Issue – Energy

Steve Hall

VP, Government Affairs


EnergyACEC continues to advocate for an “all of the above” approach to energy.

Agenda in 2015 has been dominated by the Keystone XL pipeline debate, which passed Congress to be vetoed by the President.

Beyond Keystone, the House has also cleared legislation to expedite licensing for LNG export facilities (HR 351), and streamline regulatory process for natural gas pipelines (HR 161).


Energy – Going ForwardBoth the House and Senate energy committees are developing comprehensive bills to update energy infrastructure and facilitate production.

House plan – modernize electric grid, oil/natural gas pipelines; “energy diplomacy” to facilitate cross border links; boost the energy workforce; and increase efficiency.

Senate plan – develop range of energy sources; modernize infrastructure; efficiency.

Future of Production Tax Credits (PTCs) to promote renewable sources?


Energy

Key Message Points/Request to Lawmakers:

America needs a comprehensive approach to energy, one that makes use of the nation’s traditional fossil fuel resources, as well as renewables;

Maintaining support for Production Tax Credits for renewables is a key component of a balanced energy strategy.


Key Issue – Tax Reform

Katharine MottleyDirector, Tax and Regulatory Affairs


Tax Reform -- OverviewInternational competitiveness driving tax reform

• U.S. has highest corporate tax rate in OECD• Concern about firms reincorporating overseas

New congressional tax-writing committee chairs have identified tax reform as a priority

• Ways and Means Chairman Ryan: business tax reform possible by the end of the summer

• Senate Finance working groups

Plan released last year by former Ways and Means Chairman Camp likely to form the foundation of tax reform


Tax Reform -- Key PointsEnact comprehensive tax reform that treats all business structures equally.

Protect the continued use of cash accounting for engineering firms.

Reject higher payroll taxes on tax-compliant engineering firms structured as S corporations.

Retain Section 199.

Maintain the tax-exempt status of municipal bonds.


Tax Reform – ACEC PositionKey Message Points:

ACEC supports a comprehensive approach to tax reform that benefits all firms.

There will be tradeoffs, but certain tax provisions are critical for the industry.

Requests to Lawmakers:

Enact reform that treats all business structures equally.

Protect key tax provisions for the engineering industry.


Key Issue – Design-Build Procurement Reform

Jessica SalmoiraghiDirector, Federal Agencies and International

Programs


Design-Build Procurement Reform - Overview

Design-build has become popular in the federal market, but there have been issues reported by Council members.

Two-step design-build projects have grown to over 10 finalists

One-step design-build projects have had competitions valued at more than $100 million

There is no reporting on design-build procurements

The FY ‘15 NDAA required military construction to use two-step design-build on projects over $4 million.


Design-Build Procurement Reform -- Key Provisions

Limits second phase design-build to five finalists

Written report of any exceptions for civilian and military construction.

Limits one-phase design-build to projects less than $750,000 for civilian and military construction.

There is no cost to this bill.

The construction industry supports these reforms.


The Senate Bill is Broader than the House version

Senators Portman (R-OH) and Cardin (D-MD) introduced a bill that includes design-build reforms.

Also includes a limitation on the use of reverse-auctions in construction projects.

Requirements that federal P3 projects include surety protections for subcontractors, real fungible assets must be used for sureties and increasing the guarantee under the SBA’s program.


Design-Build Procurement Reform

Key Message Points:Unlimited design-build competitions are expensive for the government and the industryStreamlining design-build is good for the industry and for the government as it saves both money

Requests to Lawmakers:Sponsor • House bill • Senate bill


Thank you!

#ACEC2015

2015 annual convention & legislative summit key issues preview steve hall vice president,...

Documents

energy infrastructure

tax reformu

energy workforce

senate energy committees

business tax reform

overseasnew congressional

corporate tax rate

range of energy sources