News from NUCA of NM

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"Lame Duck" Agenda Gets Crowded
This week Congress returned from the Thanksgiving recess to continue its "lame duck" session. Although the agenda is filling up, only a handful of bills are expected to pass during the few remaining weeks of the 111th Congress. Finalizing the remaining FY2011 appropriations measures or a "continuing resolution" to keep the government running at this year's funding levels remains "must pass" legislation. Consideration of a "tax extenders" package will likely occur, or else the tax rates enacted in the Bush Administration will expire, which would be devastating to all American tax payers from middle class families to the small business community. Both of these voting blocs are extremely important to virtually all politicians in Washington, including the president. However, addressing controversial issues such as the "don't ask, don't tell" policy regarding gays in the military and ratifying a new "START" treaty dealing with Russian nuclear weapons by the end of the year has taken center stage, at least for the moment. Democrats are trying to get these issues done before they are put on the back burner by newly empowered Republicans when they kick off the 112th Congress in January.

Concerning the likelihood of extending the Bush tax cuts, the biggest hurdle at this point is whether to permanently extend tax rates for the middle class and let the rates for upper earners expire or temporarily extend all the Bush tax rates. The latest proposal offered by several Democrats calls for a permanent extension but raises the high-earner (no tax increase) threshold from $250,000 to $1 million. As Republican leaders head to the White House today for a one-hour meeting expected to focus on the tax extension issue, Washington insiders don't expect Republicans to compromise on much. At this point many expect an extension of all tax cuts over for a period of 1-3 years.

We would like to again thank those of you who showed up on Capitol Hill to support your industry on Nov. 17th. Our grassroots warriors took to the Hill to push priority issues in a tax extenders package, including language to remove the state volume cap on private activity bonds for water and wastewater infrastructure projects; a renewed Build American Bonds program; extension of the 2001 and 2003 tax cuts under the Bush Administration; delay of implementation of the awful 3% federal withholding provision; reform of the death tax; and our opposition to "card check"

NUCA Signs Business Letter Re: Bush Tax Rates

This week NUCA signed a letter along with literally thousands of American businesses, associations and other organizations encouraging Congress to prevent one of the biggest tax hikes in history by acting on extending the Bush era tax rates. The letter states that "permanent extension of all current tax rates would, in one bold stroke, boost investor, business, and consumer confidence by taking the uncertainty of tax policy off the table. It would leave hard-earned income in the hands of the individuals and businesses that earned it and allow them to spur investment, boost consumption, promote economic growth, and create jobs." The letter goes on to warn Congress about the ramifications of offsetting this action with tax hikes. Specifically, the letter states that "we believe that the extensions of current tax policy should not be offset with permanent tax increases. No one should have their taxes raised during a time of economic weakness - not individuals, not small businesses, not large businesses. Job creators are especially sensitive to tax rates and any tax increase right now would only hinder the already too weak recovery." We agree, and NUCA is happy to join our colleagues in the business community on this important letter.

Extension Granted on Noise Rule Comment Period

As indicated in the last Washington Report, the Coalition for Workplace Safety (CWS) recently sent a letter to the Occupational Safety and Health Administration (OSHA) asking for an extension of the comment period on a proposed interpretation dealing with OSHA's "noise" standard. The interpretation centers on the term "feasible administrative or engineering controls," as used in OSHA's general industry and construction occupational noise exposure standards. Under the proposed interpretation, employers would have to reduce noise exposure in the workplace by using administrative or engineering controls, rather than by providing personal protective equipment, unless the cost of doing so threatens to put the employer out of business. OSHA's approach to this issue is a blatant circumvention of the federal rulemaking process. Federal agency reinterpretations are not subject to the notice-and-comment requirements provided in the traditional rulemaking process, meaning OSHA is not required to solicit comments nor is it required to respond to them or incorporate them into its reinterpretation.

NUCA is pleased to report that, despite this, OSHA is soliciting comments, and the comment period has been extended by 90 days, from Dec. 20, 2010 to March 20, 2011. However, much work remains. This short-sighted reinterpretation will have drastic implications for businesses, especially underground utility construction companies. The CWS will be filing comments to the OSHA proposal, as will NUCA. We encourage NUCA members to provide NUCA with feedback on how this action would impact your business. NUCA is also planning to encourage OSHA and Congress to work with the industry to develop criteria for what action is appropriate for OSHA interpretation compared to what requires the agency to follow the traditional federal rulemaking process. For more information about the CWS, visit http://workingforsafety.com/.

Eben Wyman

Vice President, Government Relations

eben@nuca.com

Ben Gann

Director, Government Relations

ben@nuca.com