ACEC is seeking passage of legislation to improve the regulatory process that governs the review and approval of energy infrastructure projects. The deal was part of a negotiation between Sen. Joe Manchin, D-W.Va., chair of the Senate Energy Committee, and Majority Leader Chuck Schumer, D-N.Y., to secure passage of the separate Inflation Reduction Act.
The bill would direct the president to designate and prioritize permitting for projects of national significance, set maximum timelines for reviews, reform Section 401 of the Clean Water Act, and set a statute of limitations for litigation. The bill would also clarify the jurisdiction of the Federal Energy Regulatory Commission and strengthen its authority over interstate transmission projects.
In ACEC’s outreach to lawmakers, Council President and CEO Linda Bauer Darr noted that major infrastructure laws over the past three years—such as the ACEC-backed Energy Act of 2020, the Infrastructure Investment and Jobs Act of 2021, as well as the newly enacted Inflation Reduction Act of 2022—include unprecedented levels of investment in a broad range of energy infrastructure initiatives. Implementation of these laws will support achievement of the Biden administration’s commitment to achieve the global goal of net-zero carbon emissions by 2050 and an interim U.S. goal of net-zero electricity by 2035.
However, timely achievement of net-zero goals with reliable energy services remains elusive without comprehensive permitting reform, particularly for energy infrastructure and its supply chains, such as electricity, hydrogen, and carbon dioxide transmission; nuclear and renewables generation; energy storage; and noncarbon energy minerals production and processing. Potential beneficial effects from the recent infrastructure laws such as net-zero along with increased reliability and resilience depend on permitting reforms such as the framework proposed by Manchin.
The bill may be rolled into must-pass legislation by year-end.
The Federal Acquisition Regulatory Council published a proposed rule implementing Executive Order 14063, which requires Project Labor Agreements (PLAs) on federal construction contracts exceeding $35 million. Executive Order 14063 applies to direct federal construction contractors, not federal-aid (e.g., federal-aid transportation) contractors. This policy could drive up the costs of projects by the U.S. Army Corps of Engineers, the Naval Facilities Engineering Systems Command, the U.S. General Services Administration, and others and discourage firms from pursuing federal contracting opportunities.
In comments sent raising ACEC’s concerns, the Council reaffirmed its belief that employees of engineering firms should be excluded from being parties to PLAs. This is essential to avoid conflicts of interest; to protect the public and property from shortand long-term harm; and to prevent negative impacts on the performance, costs, and schedules of projects being implemented.
Employees of engineering firms perform critical roles on construction sites. These include field representatives and surveyors monitoring sites to ensure that the work is being performed in compliance with design documents. To perform such work, these personnel must remain independent and objective. While this rule is directed at construction labor, its terms do not exclude designers, site engineers, surveyors, and other engineering-related site personnel.
ACEC also expressed concern that an engineer’s quality assurance role risks being compromised if engineering field representatives and surveyors are not specifically excluded from PLA coverage. This quality assurance/quality control process is vital to protect public welfare, safety, and health. PLA coverage would likely create a conflict of interest, pitting the field representative’s oversight role against the interests of union members among the construction workers.
ACEC is working with coalition partners in the built environment to support H.R. 1284/S.403, the Fair and Open Competition Act, which protects federal construction contracts from government-mandated project labor agreements.
For legislative news, visit ACEC’s Last Word blog online at www.acec.org.