Washington Report (September 2024)

Congress
Members of Congress returned to Washinton earlier this month after a lengthy August recess. Their priority deliverable will be forging agreement on a measure to fund the federal government past September 30 when current funding authorities expire. The House has passed most of its 12 appropriations bills, but nearly all of the Senate bills have not even received Committee consideration. This means that a Continuing Resolution or CR will be necessary and as usual, there is looming drama around what policy rider(s) may be attached to that vehicle. The CR that House Speaker Mike Johnson (R-LA) unveiled last week and ultimately withdrew would fund the government through March 28 and included the Safeguard American Voter Eligibility (SAVE) Act, which would require individuals to provide documentary proof of U.S. citizenship in order to register to vote in federal elections. Opponents of the bill assert that the measure is unnecessary as proof or verification of citizenship is already a requirement during voter registration. Speaker Johnson had to pull the measure due to Democrat opposition and defections within his own party. Any CR that includes the SAVE Act is dead on arrival in the Democrat-controlled Senate. Also, Senate Democrats oppose a funding measure that extends into next year. We believe that in the end, a short-term clean CR—meaning no policy riders—will be sent to the President on or before September 30 that funds government operations into early to mid-December and that the odds of a federal government shut down are remote this close to the election.

OSHA’s Heat Standard
Late last month, the Occupational Safety and Health Administration (OSHA) published its long-awaited workplace heat standard. The notice may be found here.

In its narrative supporting the proposal, OSHA cites a Bureau of Labor Statistics study which found that 1,042 U.S. workers died due to occupational exposure to environmental heat between 1992 and 2022, averaging 34 deaths per year. Most of the reported fatalities involved workers in the manufacturing, agriculture, landscaping, construction, postal and delivery service sectors. 

Overall, the proposed standard would require employers to create a plan known as a HIIPP (Heat Injury and Illness Prevention Plan) to evaluate and control heat hazards in their workplace. Specifically, the proposed standard would apply to all employers and would apply when employees are exposed to heat indexes of 80 degrees—defined as the “initial heat trigger”—for more than fifteen minutes in any sixty-minute period. Employers with outdoor work sites would be required to monitor the temperature continuously to evaluate employee exposure to heat. For indoor work sites, employers would be required to identify areas where the heat index could be 80 degrees or more and include a temperature monitoring plan in their written HIIPP. The proposal imposes additional obligations on employers when the high heat trigger-90 degrees-is reached. 

Publication in the Federal Register kicks off a 120-day public comment period which ends on December 30. 

Workforce Development
Last Wednesday, the House Ways & Means Committee marked up and passed a package of bills including one measure that seeks to promote workforce development. The legislation, H.R. 9461 sponsored by Rep. Lloyd Smucker (R-PA), authorizes an income tax credit for individuals that contribute to workforce development and apprenticeship training programs. Eligible organizations receiving contributions must provide services defined in the Workforce Innovation and Opportunity Act – including occupational skills training, on-the-job training, skills upgrading and retraining, entrepreneurial training, and adult education and literacy activities. The credit would max out at the lesser of either $150,000 or 25 percent of a taxpayer’s liability. The bill was reported from committee on a 22-15 vote.

This legislation builds on action taken by the committee in July, when the Ways and Means Committee marked up legislation that expanded 529 accounts to help parents save for their child’s education and strengthen workforce opportunities for students wishing to learn a skill or trade.

Port Strike
Businesses up and down the supply chain are following developments closely on the looming strike by workers at all maritime container ports along the East and Gulf Coasts. A letter is circulating for association signatures that is expected to be sent to President Biden next week asking for the Administration to engage with the parties to negotiate a new labor agreement so that port closures are avoided. In addition to the business community letter, House Republicans led by House Transportation and Infrastructure Committee’s Coast Guard and Maritime Transportation Subcommittee Chairman Daniel Webster (R-FL) are circulating this letter to the President urging the Administration to intervene in the negotiations. 

By way of background, the current Master Contract between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) is set to expire September 30. Unfortunately, negotiations on a new contract are at a stalemate due to proposed wage increases for union employees and the adoption of automated technologies at ports. The parties are talking, but little progress on a final deal has been made. 

Farm Bill
WIA met with committee staff on the Senate Agriculture, Nutrition and Forestry Committee earlier this month to discuss provisions of interest to our sector in the Farm Bill and prospects for a reauthorization bill passing later this year. Ranking Member Boozman (R-AR) continues to tell groups that a Farm Bill rewrite is possible in the Lame Duck session of Congress following the election. However, actual legislative text has not been shared between Democrats and Republicans on committee and it appears that marking up and passing a bill in a short Lame Duck session would be a stretch. The good news is that the summaries that have been provided describing Democrat and Republican proposals that would be included in the next Farm Bill are all positive for the wood products sector. The proposals notably feature robust funding for both the Wood Innovation Grant and Community Wood Grant programs. The House Agriculture Committee-passed bill treats these programs similarly and is supported by the wood products sector. WIA will keep you apprised of developments and the progress of our advocacy in this space for the remainder of 2024 and into 2025 if necessary. 

European Union Deforestation Regulation – More Countries Request Delay of Implementation
Germany and Brazil joined a growing chorus of countries in requesting that the European Union delay  implementation of its highly controversial EU Deforestation Regulation (EUDR) set to take effect at the end of this year. German Chancellor Olaf Scholz requested the EU delay implementing the new regulation, asserting that it could create serious trade disruptions and create hardships for many sectors, including the forest products industry. Recall that this regulation, which is slated to take effect December 30, 2024, requires commodities (including wood) to show that they are “deforestation free” in order to enter the EU stream of commerce.  

Mauro Vieira, Brazil Miniter of Foreign Affairs in a letter that was sent to the European Commission leadership stated that “The implementation of the European Union's anti-deforestation regulation (EUDR), scheduled to begin at the end of 2024, is a matter of serious concern for various Brazilian export sectors and for the Brazilian government. Brazil is one of the EU’s main suppliers of most of the products targeted by the legislation, which account for over 30% of our exports to the Union. To avoid any negative impact on our trade relations, we request that the EU refrain.” 

The U.S. Department of Agriculture will be sending a delegation later this month to visit European Union countries and EU officials to discuss this issue and the challenges it will present to U.S. exporters.