RCMA GOVERNMENT AFFAIRS UPDATE. Nick Gardner, RCMA Government Affairs Manager

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1 RCMA GOVERNMENT AFFAIRS UPDATE Nick Gardner, RCMA Government Affairs Manager

2 Washington Right Now: A Snapshot

3 US Senate Democrats Control majority

4 U.S. House Republicans Have Control 232 R s 200 D s 3 Vacancies

5 Senator Harry Reid s Senate

6 Rep. John Boehner s House

7 General Congressional Climate Rising debt /deficit Divided Congress Brinkmanship /shutdowns Extreme partisanship Low approval ratings 2014 mid-term elections Entitlement showdowns Untested, unruly House members Tenuous Democratic Senate majority Entrenched Republican House majority Presidential/congressional distrust Deficit neutral House rules and no earmarks Long, expensive campaigns

8 Brinkmanship to shutdown In April 2011, House Republicans threatened shut down over gov t spending, EPA funding, and contraception Several similar funding crises over spending followed over last three years From Oct. 1-16, 2013 the federal government shutdown Regular government operations resumed October 17 after an interim appropriations bill was signed into law Most agree the House Republican brand suffered as a result of the shutdown First shutdown since

9 Recent progress, but still a difficult environment Two year, $1.1 trillion budget deal signed into law on The deal caps federal spending for FY2014 at $1.012 trillion and for FY 2015 at $1.014 This deal would eliminate some cuts required by the sequester One year debt limit increase Narrow vote in both Chambers, filibuster threatened in Senate The least dramatic of the debt limit votes in last three years Farm Bill 5 year agriculture/nutrition assistance policies legislation; close to $1 trillion in spending authorizations over 10 years Difficult road to passage, legislation has been stalled for two years

10 Let s Remember, Most Bills Don t Become Law

11 Issues to Watch for the Remainder of 113 th Congress

12 The Top Issues Tax reform Immigration Energy policy Defense/foreign policy Entitlements/social welfare programs Continued debates over healthcare policy Social issues Education Campaign finance reform Infrastructure

13 Election Domination This is an election year, controversial policy is usually deferred to Lame Duck if addressed at all Legislative work essentially ends in July Congress takes August recess and it s all about the campaign All House seats; 36 Senate seats Election results will impact Lame Duck Republicans focused on taking the Senate, most expect majority will be held in the House Democrats have a good chance to keep majority in Senate Much of the legislative agenda for President Obama s final two years depend on Democrats holding the Senate

14 Leadership Changes of Note Max Baucus (D-MT), former Chairman of Senate Finance Committee nominated as US Ambassador to China Ron Wyden (D-OR), former Chair of Senate Energy and Natural Resources Committee, replaces Baucus Mary Landieu (D-LA) expected to replace Wyden on Senate Energy and Natural Resources Committee Total of eight Senate Retirements House Ways and Means Chair, Dave Camp (R-CA) House Energy and Commerce Ranking Member, Henry Waxman (D-CA) House Armed Services Committee Chairman, Buck McKeon (R- CA) Thirty House members either plan to seek retirement or higher office

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16 More on the Issues that Matter Most to RCMA Tax Extenders Energy Efficiency/Building Codes Energy Policy Regulatory Environment and the Environmental Protection Agency

17 Tax Reform At the request of House Ways and Means Committee Chairman, Dave Camp, tax extenders are being held for larger tax reform deal Expect comprehensive tax reform package to be introduced in the House this week Dozens of tax extenders expired January 1, 2014 The expirations will create uncertainty for business planning, but Tax credits can be retroactively extended Doubt from many that major tax reform can happen this year Difficult climate in Senate Finance Committee for larger reform package Widespread questions about all tax extenders

18 Extension of 25C Federal Residential Energy Efficiency Tax Credit 25C Energy Efficiency Tax Credit expired December 31, 2013 Questions remain regarding reauthorization even from supporters like Senator Dianne Feinstein (D-CA) Legislation to Extend 25C SB 1859, Sen. Harry Reid includes one year extension of 25C H.R. 3950, Rep Grayson (D-FL) extends for one year the credit for energy-efficient existing homes. No current legislation to modify 25C to apply to roof coatings enlarging a credit increasingly difficult Industry coalition support, but lack of leadership

19 Energy Efficiency/Building Code Reform S Energy Savings and Industrial Competitiveness Act Reintroduced by Sens. Shaheen (D-NH) and Portman (R-OH) Approved 5/8/13 in Energy Committee by 19-3 bipartisan vote States will have to bring their building codes to a national standard H.R.469 -Heat Island and Smog Reduction Act of 2013 Introduced by Rep. Gerald Connolly (D-VA) Would require each federal agency, by April 1, 2013, to develop a heat island reduction plan Requires the plan to include increase solar reflectivity through techniques such as using roofs with high solar reflectivity (cool roofs). H.R Emergency Jobs to Restore the American Dream Act Introduced by Rep. Janice Schakowsky (D-IL) Among other things, provides grants to local educational agencies to retrofit school buildings to make them more environmentally friendly.

20 Energy Policy Major energy policy overhaul not likely given divergent views on energy policy between the Chambers Focus on smaller energy policies (Keystone Pipeline) Energy committees in both chambers very busy House-Focus on domestic energy production Senate-Efficiency, green/alternative energy Energy policy often driven by market and gas prices

21 Regulatory Environment Continued push by administration for more environmental regulations particularly around energy production EPA considering over 200 major economic rules OSHA Proposed Silica Rule Published 9/12/13 Comment period closed February 11, 2014 National Ozone Standards A draft document published by EPA suggests the agency should consider tightening the National Ambient Air Quality Standard (NAAQS) for ground-level ozone. Currently 75 PPB More to come from Kelly Franklin this afternoon Expect to see Obama Administration pause some major rulemaking closer to the election

22 RCMA Government Affairs Update

23 Government Affairs Steering Committee Role as strategic advisors Interest in gov t affairs; willingness to work for free RCMA Government Affairs Steering Group Members Helene Hardy Pierce, GAF Brian Anthony, Brewer Company Greg Johnson, Sherwin-Williams Chris Salazar, Karnak Corporation Stacey-Ann Taylor, Henry Company Matt Kolb, National Coatings Corporation Jim Koch, Coating and Foam Solutions Andy Parker, TAMKO Building Products A Big thank you from staff

24 Monitoring / Collateral Development Vigilant monitoring of legislative and regulatory arenas for movement on issues significant and relevant to RCMA Ability to provide intelligence and updates on developments to members via conference call or written communication as needed Need to know before the legislation is drafted Critical to have position papers, talking points, and other materials to mobilize Ability to proactively move on issues Corner stone of all other strategies

25 Strategic Relationship Building Targeted Members of Congress, legislative staff and congressional committees Positioning of RCMA as a notable stakeholder, constituent group, and influential resource on relevant issues Legislative outreach will include correspondence, submission of information and message points, and meetings with Members of Congress and staff when available Meeting requests have been sent to key Committees Senate Finance Senate Small Business House Ways and Means House Small Business This is just the beginning!

26 Participation in the 25C coalition Outreach to loosely organized, informal coalition of groups with interests of maintaining or expanding the 25C tax credit Previously led by National Association of Homebuilders and Window & Door Manufacturers Association Receptive to RCMA joining. Have provided RCMA with collateral material previously used by the coalition Opportunity for RCMA leadership role in coalition activities, as the other participants are unable to dedicate significant time and resources unless the credit levels increase RCMA Hill outreach target Committees that will be helpful in this area Senate is likely to be where extenders move

27 Recent Hill Outreach On February 19, staff met with House Small Business Committee Met with: Viktoria Ziebarth, General Counsel to the Committee and Mark Ratto, Professional staff to the Committee Interest in Ozone issue RCMA reminded them of an important issue Committee is interested in exploring a letter to EPA and possible future hearing subject On February 20, staff met with the Senate Small Business Committee Met with Caroline Bruckner, Chief Counsel to the Committee Concerns about proposed 25C language Given staff changes, Ms. Bruckner will follow Sen. Landrieu to the Energy Committee and will be replaced by someone with Sen. Cantwell s staff

28 Upcoming Hill Outreach Meeting with Senate Finance on March 7 Tax extenders renewal legislation most likely to come from this committee Meeting with Chief Tax Counsel opportunity to again vet our 25C language House Ways and Means meeting pending Opportunity to learn more about how the House comprehensive tax reform will impact 25C Energy Committees next Staff contacts in House Energy and Commerce Ms. Bruckner has advised she is happy to meet with us

29 Possible Future Activities Leadership of 25C Coalition Additional Senate outreach Congressional letter(s) to EPA EPA, OMB or other agency meetings Grassroots outreach Hill briefing Op-eds in Hill rags DC or District Fly-ins Executive branch meetings

30 QUESTIONS?