NACA Mid-Year Update

Through our efforts with the North American Concrete Alliance (NACA), the ACPA advocates for legislation that favorably affects the concrete and concrete pumping industry. NACA is a coalition of 12 concrete-related trade associations dedicated to addressing industry-wide priorities in the areas of research, education and government affairs.

NACA member associations include: The American Concrete Pavement Association, American Concrete Pipe Association, American Concrete Pumping Association, American Concrete Pressure Pipe Association, Concrete Foundations Association, Concrete Reinforcing Steel Institute, National Concrete Masonry Association, National Precast Concrete Association, Precast/Prestressed Concrete Institute, Portland Cement Association, National Ready Mixed Concrete Association, Tilt-Up Concrete Association.

Here are some of the most recent highlights of our activity through NACA, at the time of publication.

Support for the SHELTER Act

Concrete is one of the most resilient, disaster-proof building materials. As such, NACA works to promote legislation that helps America’s home and business owners to withstand natural disasters. The SHELTER Act, introduced to Congress last year, allows a tax credit to individuals and businesses for disaster mitigation expenditures. The allowable amount of such credit is 25 percent of the mitigation expenditures, up to $5,000 in any taxable year.

In February, NACA sent a letter to Senator Michael Bennett (D-CO) and Representative Gus Bilirakis (R-FL) supporting the SHELTER Act for its incentives to resilient construction, which would favorably affect the concrete and concrete pumping industry.

Resilient, disaster-proof construction is an urgent need in the U.S. The federal government’s 2019 National Climate Assessment, compiled by 13 agencies, found extreme weather events will increasingly disrupt and damage critical infrastructure and detrimentally impact property, economic productivity and the vitality of our communities. Catastrophic natural disasters such as earthquakes, hurricanes, routine flooding, extreme snow and forest fires shorten the life expectancy of the nation’s built environment. Much of the nation’s residential and commercial structures are not designed or built to withstand more frequent and more devastating severe weather events.

What’s more, the upfront investment in resilient, disaster-proof construction creates significant savings in the event of a catastrophic event. Studies have shown that for every dollar invested in pre-disaster mitigation to improve the resiliency of the nation’s built environment, property owners and the federal government can save $8 in future disaster recovery costs.

Concrete construction plays an important role in mitigating disaster- related events. Legislation such as SHELTER Act would encourage resilient, disaster-proof construction with concrete as the building material of choice.

COVID-19 Liability Protections

In May, NACA’s letter to Senate Majority Leader Mitch McConnell urged the inclusion of broad liability protections in any future legislation related to COVID-19. Without these protections, companies that manufacture and distribute construction materials, equipment and related supplies face the potential of abusive lawsuits at a time when they already confront devastating economic impact.

NACA’s letter reminded Leader McConnell that the highway materials and equipment industry is dedicated to the safety of our facilities and the people who work in them. Our membership takes extensive steps to protect our workers at their worksites through strict personal protection equipment practices, thorough plant and quarry design, and rigorous safety procedures. The typical threats faced at job sites are known and can be mitigated with certain safety practices currently being followed by construction material and equipment manufacturers and the companies that distribute and supply these products.

Companies that have complied in good faith with federal guidelines should not face the potential for expensive lawsuits that will inevitably lead to additional plants closing, jobs lost and steeper economic decline. For these reasons, NACA encourages Congress to provide our member companies with broad liability protection from frivolous legal action.

Support for Infrastructure Funding

NACA supports infrastructure funding as an appropriate COVID economic stimulus. In May, NACA sent a letter to President Trump, urging his support of such legislation. The overwhelming bipartisan support for infrastructure investment at this time is unparalleled. The Senate and House efforts to advance multi-year highway, transit and safety program reauthorization investment proposals provide the road map to fulfill President Trump’s infrastructure vision he has championed since the 2016 election.

Few public sector actions can deliver the same level of short- and long-term economic results as transportation infrastructure investment. Increased highway, bridge, public transportation and safety program funding will support direct job creation and retention. This will put in place capital assets that enhance supply chain efficiency and access to jobs, services, materials and markets for decades.

Increased Infrastructure Funding Proposed in H.R. 2 “Moving Forward Act”

Introduced in the House on June 6 by Peter DeFazio (D–OR), H.R. 2 addresses provisions related to federal-aid highway, transit, highway safety, motor carrier, research, hazardous materials and rail programs of the Department of Transportation (DOT).

Several provisions within the Moving Forward Act are important to cement- and concrete-related industries. NACA is encouraged by the bill’s focus on expanding infrastructure financing options..NACA is also encouraged by the robust funding levels provided in the bill, including $500 billion for the INVEST in America Act. The bill’s provisions for funding are important, especially in light of impacts related to COVID-19.

Due to COVID-19, state Departments of Transportation (DOTs) are projecting, on average, a 30 percent revenue decline over the next 18 months. Additionally, revenue from the Highway Trust Fund dropped 49 percent in May 2020 compared to May 2019.

A few of the provisions that would have a positive impact on the concrete industry:

• Increasing the authorization for the Airport Improvement Program to $4 billion for fiscal years 2021-2025 and expanding AIP eligibilities to include projects to improve airport resiliency to natural disasters.

• Requiring states to spend 20 percent of their NHPP and Surface Transportation Block Grant Program (STBGP) dollars on bridge repair and rehabilitation projects, amounting to $28 billion between FY 2022-2025

• Providing more than $9 billion for projects of national significance—large highway, transit, and freight projects— that cannot be funded through annual apportionments or other discretionary sources.

Now, more than ever, we need Congress to come together to provide a sustainable funding mechanism for these federal highway and transit programs prior to their expiration on September 30, 2020. H.R. 2 is an important step toward these initiatives.

Opposition to Motor Carrier Insurance Increase in H.R. 2

While H.R. 2 has many favorable provisions for the concrete pumping industry, Section 4408 of the bill proposes an increase to the minimum level of financial responsibility (insurance) for motor carriers from $750,000 to $2 million. If enacted, this would dramatically increase premiums for anyone operating a commercial motor vehicle, including concrete pump trucks. Many small businesses— including those related to trucking, farming and manufacturing—would be driven out of business when their insurance payments become unsustainable.

According to Collin Long of the Owner-Operator Independent Drivers Association, “This increase will have no impact on improving highway safety. It is also wholly unnecessary, as federal research indicates only .06 percent of crashes result in damages that exceed $750,000. The inclusion of this increase was nothing more than a prize for trial lawyers, who can use it to pursue bigger payouts when suing truckers and businesses engaged in trucking.”

NACA is working with the OOIDA and other associations in support of Rep. Mike Bost’s (R-IL) proposed amendment to strike this provision from the bill. Rep. Bost’s amendment would protect American jobs and businesses, including countless small businesses, from unnecessary and excessive policy.

The ACPA will continue urging Congress to act for the repair and rebuilding of our transportation infrastructure and other issues important to the concrete pumping industry. By aligning with other concrete industry associations through NACA and through our own Washington advocacy, ACPA ensures the concrete pumper’s voice is heard.