Insights

In the first days of his Administration, President Trump has issued a number of Executive Orders that mark a significant shift in United States energy and climate policy, marked by deregulation and a focus on traditional energy sources. President Trump’s second term agenda will have profound implications not only domestically but also on the international stage. Understanding the impact of these policies is crucial for businesses and investors alike. This article will explore the effects of President Trump’s agenda with respect to climate change policy, oil and gas, and solar energy sectors.

On August 23, 2023, the Office of Management and Budget (OMB) released its final rule and notification of final guidance addressing implementation of the Build America, Buy America Act (BABA) provisions enacted with the Infrastructure Investment and Jobs Act (IIJA), which requires the use of domestic iron, steel, manufactured products, and construction materials in infrastructure projects supported with federal financial assistance.  The final rule goes into effect October 23, 2023, and applies to federal awards for infrastructure projects awarded after November 15, 2021.  We previously reported on OMB’s February 9, 2023 proposed guidance here.

Last week, the Department of Transportation (DOT) announced nearly $60 billion of funding available to states through DOT formula grant programs in fiscal year (FY) 2023.  States may use these funds, authorized under the Bipartisan Infrastructure Law, to support critical infrastructure, including roads, bridges, and environmental and safety improvements.  The FY2023 grant funds represent a substantial increase from FY2021.  In particular, states will see an increase in grant funds for highway and bridge projects:

On April 20, the Biden Administration published final changes to the rules governing how federal agencies consider the environmental impacts of their proposed actions, returning to previous standards that required consideration of indirect and cumulative effects of a proposed action. Although the rule changes may appear minimal, encompassing modifications to two specific regulatory subsections and updates to two definitions, the changes could be significant in how agencies consider impacts on environmental justice communities or effects of climate change from proposed federal actions, including federal agency authorizations and approvals for energy, transportation, and other infrastructure projects. 

Just days following the enactment of the omnibus appropriations law for the remainder of the current fiscal year ending on September 30, President Biden released a $5.7 trillion budget proposal for the 2023 fiscal year. The President is seeking from Congress $1.64 trillion in funding for discretionary programs, a nine percent increase from current funding levels. Of that amount, the proposed budget seeks $813 billion in defense spending and $829 billion for non-defense programs.  In contrast, almost two-thirds of the proposed budget – $3.65 trillion – is earmarked for mandatory spending including Social Security, Medicare, and Medicaid. The White House projects the proposal would result in a $1.3 trillion decline in the federal deficit due in large part to new proposed taxes, including a 15 percent minimum tax on corporate profits and a new minimum tax on households worth more than $100 million.

Over the past 2 years, our Energy & Infrastructure Team has seen first-hand the impact COVID-19 has had on greenfield infrastructure projects both in the UK and more globally from the US to the Middle East; from impact on cashflows to operational uncertainty in supply chains; from delays in government approvals to Government mandated shutdowns. 

Crowell & Moring, LLP (Crowell) has established a multi-practice, cross-office Infrastructure Implementation Team to assist U.S. and foreign businesses in monitoring, tracking and making business decisions based on the rollout of $1.2 trillion infrastructure law that was enacted in November 2021. This will be an important and exciting year in the infrastructure space as U.S. federal agencies begin to create new programs, promulgate regulations and push out billions of dollars in infrastructure funding through federal contracts and grants to state, tribal, and local governments and the private sector. Crowell’s Infrastructure Implementation Team is composed of industry leading attorneys and policy professionals in our Government Affairs; Government Contracting; Transportation; Corporate; Mass Torts, Products and Consumer Litigation; Aviation; and Environment, Energy and Natural Resource practices. Our Infrastructure Implementation Team stands ready to help clients navigate the myriad funding opportunities and regulatory actions that will result from the law over the months and years to come.

In November 2021 the UK Government’s Environment Bill, an eagerly awaited piece of legislation, finally became law. This highly anticipated piece of legislation will impact both the food and retail sector through numerous measures as outlined below.

On December 13, 2021, the Biden administration announced several actions to begin the build out of electric vehicle charging infrastructure in support of its goal of transitioning 50 percent of new vehicle sales to electric vehicles by 2030 and in response to the recently enacted Infrastructure Investment and Jobs Act (also known as the Bipartisan Infrastructure Law). 

Infrastructure reform has been the talk of Washington, D.C., for years. The Trump and the Biden Administrations both made it a high priority, and the issue has now come to a head in Congress. In July, the U.S. House of Representatives passed the $715 billion INVEST in America Act (H.R. 3684) along a largely party-line vote. After months of behind-the-scenes negotiations, the U.S. Senate moved decisively to pass a $1.2 trillion Bipartisan Infrastructure Bill followed by a $3.5 trillion partisan Budget Resolution just prior to starting recess on August 11, 2021. The U.S. House of Representatives is scheduled to return to session on August 23, 2021 to take up both Senate-passed measures. While the prospects for infrastructure reform becoming law are stronger than they have been in years, there are a number of potential pitfalls that could derail the efforts this fall. The following is a summary of the current state of play in this August recess which will soon become an incredibly busy fall.

After 100 days in office, President Joe Biden has made it clear that he is not afraid to go it alone to pursue policy to match his campaign rhetoric and promises. The first 100 days of the administration were marked by a significant number of executive orders, a historic economic stimulus package passed with only Democratic support in Congress, and sweeping proposals that – if enacted – could transform everyday life for a significant number of Americans.

At an event in Pittsburgh, PA, yesterday, President Biden unveiled his plans for creating jobs and growing the economy by investing more than $2 trillion in infrastructure, improving access to childcare and educational opportunities, and reforming the corporate tax system. Dubbed the American Jobs Plan, the proposal fulfills a number of campaign promises and incorporates many of the legislative proposals for transforming the power generation and transportation sectors, improving racial equity and economic opportunity for all Americans, and strengthening the country’s labor force and communities that have passed the Democratic led House of Representatives over the past two years. 

The Biden Administration reportedly is planning a new tax bill to fund the next round of economic initiatives, which could be paid for by increases to both the corporate tax rate and individual rate for high earners. The planned bill likely would fund infrastructure improvements, climate change projects, and assistance for lower income individuals, and would follow the “paying their fair share” initiatives announced by Biden during his campaign. The details and effective dates for these tax changes are yet to be announced and will likely be the subject of intense debate and negotiation.

In their Commentary, “How to Limit COVID-19 Related Legal Claims” in the January 2021 issue of Engineering News-Record, Meagan Bachman and Josh Lindsay of C&M discuss advice for limiting and mitigating the disputes that are coming as a result of COVID-19-related disruptions to construction projects. Even as the first vaccines are distributed around the globe, sustained challenges and cost and time impacts to projects can be expected. But there also are opportunities to mitigate the deleterious effects of COVID-19 and reduce the possibility of large-scale disputes down the road.

Transportation policy is a central feature of the incoming Biden administration’s “Build Back Better” economic recovery plan, which includes a $2 trillion infrastructure plan that would reimagine the nation’s transportation sector to one that takes advantage of new technology, new energy sources, and new workers. President-Elect Biden announced Pete Buttigieg, the former mayor of South Bend, Indiana and presidential rival, as the nominee to serve as Secretary of Transportation. If confirmed, Buttigieg is expected to play a key role in steering President Biden’s infrastructure plan through Congress and ensuring it does not go off the rails (pun intended). To deliver these changes as promised, Congress and the incoming Biden administration will need to tackle a number of tricky policy issues that have bedeviled previous reform efforts.

Some three years after the devastating fire at Grenfell Tower, the housing industry is finally seeing some substantive indications of the shape of the long-awaited building sector reforms. 

Rebuilding America’s aging and technologically challenged infrastructure is increasingly seen as an imperative. The need to invest in and mobilize resources for critical infrastructure projects has become an ever greater priority given the role project development can play in lifting the U.S. economy in dire times.

The COVID-19 pandemic is causing real disruption to public infrastructure and services across the world. In the UK, plans to have all students return to school by September have been shelved, hospitals have been operating at near full capacity, and demand for transport has dropped dramatically. In this podcast, counsels Stefanie Atchinson and Lydia Taylor discuss their experience advising on projects during lockdown and make a few tentative predictions on what the future holds for infrastructure over the next 18 months.

While the UK government is maintaining that construction sites can continue to operate (provided the requisite measures are in place), HS2’s ‘notice to proceed’ aside, many in the sector have stopped all but ‘essential work’ and this has resulted in a number of sites being shut down.

We all know that COVID-19's implications are both hazardous and complex. That is the least that can be said for its impact on the construction industry.