Recently, the Business Advocacy Committee (BAC) was asked by Chamber members to examine two federal bills. The two bills include the SHORRE ACT and the Executive Order on Use of Project Labor Agreements for Federal Construction Projects vs. the Fair and Open Competition Act (FOCA).
SHORRE ACT
The SHORRE ACT represents the most significant enhancement of the U.S. Army Corps of Engineers’ coastal storm risk management and ecosystem restoration programs in more than two decades. The bill authorizes the Corps to assist communities and ecosystems impacted by climate change, drive the development of resilient and sustainable projects, prioritize underserved communities and enhance efficient project implementation.
In 2021, the Chamber made the decision to support the City of Charleston entering the first year of the PED process. The City of Charleston is supportive of the SHORRE ACT and the benefits it could provide to the Peninsula Perimeter Protection project.
In its current parameters, the Army Corps of Engineers can only address storm surge. The SHORRE Act would allow the Corps of Engineers to utilize a more holistic approach that includes sunny day tides, extreme rainfall, sea-level rise and back bay flooding. This will be particularly important, should the city decide to enter the PED phase for the Peninsula Perimeter Protection.
The BAC recommended the Chamber support the Bipartisan SHORRE ACT. After further discussion, the Executive Committee and Board both voted to support the Bipartisan SHORRE ACT.
Executive Order on Use of Project Labor Agreements for Federal Construction Projects vs. the Fair and Open Competition Act (FOCA)
President Biden’s February 4 Executive Order requires the use of project labor agreements (PLAs) on federal construction projects above $35 million. PLAs control the terms and conditions of employment of workers on specific construction projects, including wages, hours, working conditions, dispute resolution methods and bans work stoppages and strikes. The order will NOT affect projects controlled by state or local governments that receive federal funding.
Construction industry groups have found that government mandated PLAs increase construction costs by 12-20% and create excessive cost burdens and risks for high-performing nonunion contractors. Often, nonunion contractors are more likely to be small, women and/or minority-owned businesses. Furthermore, PLAs will exacerbate the construction industry’s skilled labor shortage.
For these reasons, the BAC recommended the Chamber support the FOCA Act. The FOCA act prohibits federal construction contracts or controlling documents for federally supported construction projects from requiring or prohibiting project labor agreements. Such documents also may not discriminate against, or give preference to, a bidder or contractor who signs or refuses to sign a project labor agreement. An agency may exempt a project from this prohibition to avert an imminent threat to public health or safety or to serve the national security. Senator Scott introduced the FOCA Act in the Senate and Congresswoman Mace is a cosponsor of its companion bill in the House.
After further discussion, the Board and Executive Committee voted to support the FOCA act.
Each year, we perform a review of our regional, state and federal policy priorities to ensure a positive business environment for our region. If you are interested in serving on one of our government relations committees, please email me at bvincett@charlestonchamber.org.
