AGENDA ITEM ACEC EXECUTIVE COMMITTEE MEETING BELLAGIO, LAS VEGAS, NEVADA JANUARY 31 FEBRUARY 2, 2016

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1 AGENDA ITEM ACEC EXECUTIVE COMMITTEE MEETING BELLAGIO, LAS VEGAS, NEVADA JANUARY 31 FEBRUARY 2, 2016 TITLE Approval of 2016 Legislative Agenda ISSUE ACEC s 2015 advocacy achievements set the stage for advances in 2016 across a wide range of business sectors important to members. DISCUSSION Building upon a highly productive 2015 legislative year for ACEC, the Council plans to maintain its momentum in 2016 and focus on scoring wins in several key areas. Despite continued partisan division between Congress and the White House this past year, the Council was able to secure passage of critical pieces of legislation that will benefit member firms for years to come: Passage of the FAST Act, a five-year, $305 billion surface transportation program that increases investment, streamlines regulations to move projects forward, and promotes contracting out by state DOTs; Defeated efforts to abolish QBS and mandate insourcing of certain engineering services; New policies to expand energy markets, including lifting the ban on oil exports and new programs to enhance the security and resilience of the electrical grid; Extend critical business tax provisions, including the R&D tax credit, expensing and depreciation incentives, and tax credits to promote renewable energy markets; Passage of budget and appropriations legislation that replaced sequestration and prevented a government shutdown; Actively engaged on the regulatory front, including working with business groups and Congress to push back against proposed changes to the Fair Labor Standards Act (FLSA) and the so-called blacklisting rule; Promote international business opportunities through a four-year reauthorization of the Export-Import Bank; Achieved major infrastructure funding victories in the states through our state organizations backed with financial support from ACEC s Minuteman Fund. ACEC s 2016 agenda before Congress and regulatory agencies is set forth below, as approved by the Government Advocacy Committee.

2 Priority Issues -- Regulatory State DOT FAR Compliance ACEC will continue to work closely with AASHTO and FHWA to achieve the uniform implementation of the AASHTO Audit Guide by all state DOTs, as well as carrying out training programs for DOTs, engineering firms and CPAs. The Council will also continue to work with FHWA as the agency refines and implements related rules and regulations. Fair Labor Standards Act (FLSA) Reform ACEC will continue to work with coalition allies and Congress to push back against the Department of Labor s proposal to significantly boost the income threshold governing overtime pay under the FLSA from $455 per week to approximately $970 per week. ACEC submitted detailed comments when the proposed changes were released, and will continue to advocate for a more measured increase in the salary threshold and against changes to how firms classify employees as exempt/non-exempt. DOL Blacklisting Rule ACEC will continue to engage with other contractor organizations and Congress to oppose a proposed rule requiring firms to report violations and alleged violations of 14 federal labor rules and executive orders, by the firm and by subcontractors. DOL is also considering adding state labor rules as well. ACEC submitted detailed comments on the proposed rule, which DOL is expected to finalize in the spring. ACEC testified before the House Small Business Committee in opposition to the proposed rule, and will continue to support efforts to stop it in Wetlands The Environmental Protection Agency (EPA) and United States Army Corps of Engineers finalized the Waters of the US (WOTUS) rule broaden the scope of the Clean Water Act beyond navigable and interstate waters to include upstream tributaries, adjacent wetlands, ditches, wastewater treatment ponds, and other waters. Implementation of the rule has been suspended pending the outcome of court challenges, and ACEC will engage with private client and other stakeholder groups in 2016 to clarify/modify the scope of the new rule as necessary. Clean Power Regulations ACEC will work with other stakeholders to respond as necessary to EPA s Clean Power Plan, which calls for the power sector to cut carbon emissions by 30 percent below 2005 levels nationwide by The plan has drawn opposition from the energy and manufacturing sectors, including the American Petroleum Institute and the Chamber of Commerce. Municipal Securities Rulemaking Board (MSRB) and Securities & Exchange Commission (SEC) Municipal Advisor regulatory actions ACEC will continue to work with the SEC and the MSRB to further refine regulatory guidance governing municipal advisors. Staff will work with firms to identify specific issues for guidance from the SEC, and will continue to engage with the MSRB on pending rules governing fiduciary duty and so-called pay to play (which will limit the ability of registered municipal advisors to make political contributions to candidates for state and local office). Cybersecurity The Federal Energy Regulatory Commission (FERC) has proposed a supply chain cybersecurity rule that will impose costly new requirements for personnel

3 (background checks, training, policies, controls), and hardware/software upgrades to protect sensitive information, which will apply to the purchases of services by private sector utilities and major industrials in the Bulk Electric System or BES. In a parallel effort, the National Institute of Standards and Technology (NIST) has requested industry input on a Framework intended to provide voluntary guidance to organizations on managing cybersecurity risk, which has raised concerns among industry stakeholders that the guidance could become mandatory. ACEC is engaging with both entities to address industry concerns. Oil & Gas Development EPA has proposed or is preparing to propose a series of regulations for unconventional oil and gas producers, particularly aimed at those involved in hydraulic fracturing (fracking) and coal bed methane gas extraction. These include new regulations for controlling fracking fluid flowback and stormwater runoff, air emissions, and wastewater and solid waste management. ACEC will engage with member firms and organizations representing clients and other stakeholders, including NGA, AGA, API, and others to respond as necessary to costly, increased regulation of this industry and its impact on our member firms. Stormwater EPA has initiated a rulemaking to establish a new program to control stormwater discharges on construction sites, as well as other regulatory changes to the existing stormwater program that will affect existing buildings. The proposed regulations were to be released in December of 2013, but have been delayed. Private client industry organizations, including NAHB, NAIOP, and BOMA have raised concerns and are monitoring the agency closely for further activity, and Congress may weigh in when and if the agency releases a proposed rule. ACEC will partner with these private client organizations where necessary to support these interests. Priority Issues -- Legislative FAA Reauthorization ACEC will collaborate with airports and other infrastructure groups to secure an increase in aviation infrastructure investment in the next four-year FAA reauthorization bill, including a boost in Airport Improvement Program (AIP) funding and raising the cap on Passenger Facility Charge (PFC) fees. Additional priorities include a requirement for airports to use QBS on PFC-funded projects (current law only applies to AIP; the 2012 FAA bill included an endorsement of QBS on PFC-funded projects), and provisions to accelerate the integration of unmanned aerial vehicles into the national airspace and permit commercial use of unmanned aerial systems (drones) by firms. Energy Legislation ACEC will work with congressional leaders and stakeholder allies to secure passage of comprehensive energy legislation in The House has already passed legislation (HR 8) that seeks to modernize the transmission, distribution, and storage of energy, streamline government approval processes for energy exports, and expedite the construction of natural gas pipelines and maintain transmission right of ways on public lands. The Senate Energy Committee has cleared companion legislation, setting the stage for floor consideration in early 2016.

4 Tax Reform ACEC will continue to advocate for a balanced approach to reform that treats C corporations and pass-through entities equally. The Council will also work with lawmakers to protect key priorities, including preserving the ability of firms that use the cash method of accounting to continue doing so and protecting S corps owners from payroll tax increases. Finally, ACEC will work with stakeholders to include infrastructure funding and finance mechanisms to bolster the Highway Trust Fund and address other infrastructure needs. Water/Wastewater Infrastructure ACEC will work with congressional leaders to move a new Water Resources Development Act (WRDA) bill in 2016, which could provide a vehicle for additional initiatives to finance water projects, including bipartisan legislation to lift the volume cap on private activity bonds (PABs) and the expansion and improvement of the State Revolving Fund (SRF) programs for water and wastewater. The Council will also continue to work with stakeholders and lawmakers on pending legislation to address drought conditions in California and other western states that includes significant funding for water infrastructure upgrades. International ACEC will follow-up on the success of the reauthorization of the Export- Import Bank with continued focus on better positioning for US firms on projects funded with US tax dollars; increased professional engineering involvement in how agencies implement, manage, and oversee foreign infrastructure work; secure QBS implementation in Multilateral Development Banks and federal international programs; and secure greater infrastructure funding in U.S. aid programs. Working with the International Committee, ACEC will continue to be actively engaged with FIDIC to promote ACEC s positions relative to the use of QBS, removing competitive restraints, integrity management, and other industry priorities. Patent Trolls ACEC will continue to support patent reform legislation to protect firms from so-called patent trolls -- law firms and/or shell companies that send letters to engineering firms and other businesses demanding payments by asserting infringement of certain business process patents, such as commonly used technology to scan and send documents. Reform legislation is pending in the House and Senate. Immigration Reform ACEC will continue to advocate for increases in the availability of H-1B visas in order to make it easier for member firms to recruit and retain engineering talent from abroad. RECOMMENDATION The Government Advocacy Committee recommends that the Executive Committee approve the legislative agenda for 2016 as outlined above. S. Hall 12/22/15

5 2016 Legislative & Regulatory Matrix APPROPRIATIONS/ INFRASTRUCTURE FUNDING Government Advocacy Staff: Steve Hall, Matt Reiffer, Jessica Salmoiraghi, Lynn Schloesser CONTRACTING OUT -- TRANSPORTATION Transportation Staff: Matt Reiffer, Steve Hall TRANSPORTATION SURFACE TRANSPORTATON REAUTHORIZATION AND FUNDING Transportation Staff: Matt Reiffer Secure increased funding for core federal infrastructure programs, including transportation, water and wastewater, Superfund, Army Corps of Engineers civil works, defense and other federal facilities. Secure passage of legislation that incentivizes states receiving federal funds to contract out with private engineering firms. Work with Congress and USDOT to implement the FAST Act, and work to secure long-term, sustainable funding mechanism to support surface transportation projects. Congress passed a two-year budget deal to relieve sequestration cuts, and an omnibus appropriations bill to fund federal agencies through FY 16, with increases in surface transportation accounts to reflect new FAST Act funding levels. Secured legislative provision in the FAST Act surface transportation reauthorization that urges states to utilize private sector firms for engineering and design services. Assisted MOs on state-level efforts to expand contracting and protect against insourcing. Congress enacted the FAST Act, a five-year, $305 billion highway, transit and rail reauthorization. Programmatic reforms backed by ACEC, including environmental streamlining, measures to facilitate P3s, and research into alternative revenue mechanisms such as mileage-based user fees, were included in the new law. Promote increased infrastructure program funding in budget and appropriations process for FY 17. Work with U.S. DOT and states to implement contracting out language in in Identify and integrate contracting out incentives as part of heightened Administration, congressional focus on facilitating faster and better project delivery. Work with lawmakers and transportation stakeholder coalitions to secure long-term revenue solutions in budget and tax negotiations. Participate in FAST Act implementation and oversight activities.

6 2016 Legislative & Regulatory Matrix Page Two TRANSPORTATION -- FAA REAUTHORIZATION Transportation Staff: Matt Reiffer Secure enactment of new four-year FAA authorization with key ACEC priorities: Increase AIP funding and raise cap on PFCs Apply QBS mandate to PFCfunded projects Permit commercial use of unmanned aerial vehicles for A/E services Current FAA program extension expires in March Committee hearings held in 2015; bipartisan bill expected from House T&I Committee in early Continue participating in a broad aviation coalition to support increases in AIP funding, raise the cap on PFCs for airport projects, and expand the utilization of UAVs. Work with House T&I and Senate Commerce Committees to advance QBS mandate and UAS utilization. TRANSPORTATION -- FAR COMPLIANCE AND REFORM Transportation Staff: Matt Reiffer Promote uniform interpretation and application of FAR audit and accounting rules across all state DOTs. Collaborated with FHWA and AASHTO on comprehensive update to the 2012 version of the Audit Guide. Continued educating stakeholders and promoting proper implementation of the Guide. Collaborated with FHWA and AASHTO to update the National Compensation Matrix (NCM). Continued partnership with NHI and FHWA to host Audit Guide educational sessions. Final FHWA regulations on consultant services published in May, reflect industry priorities. Continue to solicit reports from MOs and members on states FAR violations, and continue collaborating with FHWA and AASHTO in responding to and correcting problems. Host NHI courses in coordination with ACEC MOs, and develop additional education programs on specific elements of audits and FAR compliance.

7 2016 Legislative & Regulatory Matrix Page Three TRANSPORTATION -- EXPEDITED PROJECT REVIEW (ENVIRONMENTAL STREAMLINING) Transportation Staff: Matt Reiffer CONTRACTING OUT -- FEDERAL AGENCIES Federal Advocacy QBS ENFORCEMENT Federal Streamline environmental regulations to ensure that environmental reviews on transportation projects run concurrently to reduce delays in moving the project forward. Stem federal agency efforts to compete with the private sector and promote policies such as the A-76 process to encourage greater utilization of private sector service providers. Challenge federal agency or related state and local solicitations that violate QBS requirements; prevent bundling with other services, NAICS Code errors, and/or terminology to circumvent QBS. Integrating planning and environmental reviews, concurrent agency review timelines and several other streamlining provisions strengthened in FAST Act; FHWA implementation is ongoing. Faster environmental review is a major component of Every Day Counts initiative from FHWA. Educated House and Senate committees on competition from the Corps and other for infrastructure work. Secured report language in WRRDA to promote contracting out. Successfully challenged procurements from numerous agencies over the last year. Educated federal agencies on the value of QBS. Secured QBS expansion in WRRDA for the SRF program. Defended QBS during House consideration of the DRIVE Act. Work with other stakeholders and DOTs on FAST Act implementation and provide industry input on rulemakings and other regulatory actions. Continue to actively participate in Every Day Counts initiatives from FHWA. Work with Congress to counter ongoing threats. Carry out grassroots effort to counter future threats to Thomas Amendment. Seek broader legislative language to confront in-sourcing challenges from the Corps and other federal agencies. Continue to look for QBS violations. Strengthen QBS through educating acquisition personnel involved in A/E contracts. Expand QBS coverage through targeted legislation

8 2016 Legislative & Regulatory Matrix Page Four FEDERAL CONTRACTOR COMPENSATION CAP Federal Advocacy Challenge growing Administration and Congressional efforts to replace current allowable compensation cap formula with low arbitrary caps or eliminate all allowable compensation for highest compensated employees. Defeated Administration effort to establish arbitrarily low cap on compensation in federal contracts. Continue to oppose further allowable compensation cuts or elimination of allowable employees. DESIGN-BUILD PROCUREMENT REFORM Federal Advocacy Secure legislative and policy changes to limit one-step selection process use, restrict the number of shortlisted offerors for two-step process selection, and enhance the contractual positions of designers on design-build teams. House and Senate bills introduced to implement d/b reforms, including streamlined shortlist, limits on single-step d/b, limits on reverse auctions. FY 15 NDAA included streamlined shortlist language for MilCon projects; FAR Council extended to civilian agencies. Seek passage of legislation in Work with agencies to promote the use of two-step d/b. FEDERAL CONTRACTOR MANDATES Federal Advocacy Oppose burdensome new mandates imposed on firms working for federal agencies, including recent actions requiring that 7% of a contractor s workforce be people with disabilities and veterans. ACEC joined with coalition to protest proposed rule. Office of Federal Contract Compliance Programs finalized the 7% rule in late Work with contractor groups, OFCCP and Congress to address implementation issues. BLACKLISTING RULE Committee: Federal Advocacy Salmoiraghi Eliminate or mitigate Labor and FAR rules that impose new reporting requirements on Federal contractors. Coordinated response with internal and external organizations. Educated Congress on impact of proposed legislation. Testified before House Small Business Committee on issue. Continued lobbying regarding impact. Engage agencies on proposed rule.

9 2016 Legislative & Regulatory Matrix Page Five LEVEE LIABILITY MITIGATION Federal Advocacy SMALL BUSINESS SIZE STANDARDS Federal Advocacy Provide immunity or mitigation protection from lawsuits for firms carrying out levee inspections/certifications. Develop and advocate consensus approach to the Small Business Administration s size standards for engineering services. Secured language in WRRDA to require USACE to address the liability impacts on levee owners obtaining engineering services. Founding member of U.S. Levee Safety Coalition to address engineering issues in new levee program. Developed consensus industry position -- $10 million in gross receipts plus additional reforms to assist firms of all sizes (SBA established a $14 million level). Work with the Corps on the liability study. Seek to implement recommendations in future version of WRRDA. Advocate for funding through the appropriations process to support Corps civil works program. Work with members on new SBA effort on size standards. SMALL BUSINESS CONTRACTING Federal Advocacy WETLANDS RULES Energy and Environment Staff: Lynn Schloesser Secure procurement policy changes that accurately capture prime and subcontracting dollars awarded to small businesses; identify and challenge bundling of A/E services with non-professional services; fight arbitrary changes in contracting or workforce goals without accurate data basis. Support private client and other affected clients in response to EPA s proposed wetlands rule. Congress enacted language ACEC advocated in FY 15 NDAA regarding counting multiple tiers of contracting and subcontracting in small business goals. Submitted comments to EPA on the proposed regulations detailing industry concerns. WOTUS finalized, implementation delayed through court challenge. Continue working with House and Senate committees and SBA on desired changes to SBA program. Work with Congress and industry stakeholders to respond further as needed.

10 2016 Legislative & Regulatory Matrix Page Six STORMWATER CONTROL Energy and Environment Staff: Lynn Schloesser/Don Sherman WATER INFRASTRUCTURE Environment and Energy Staff: Lynn Schloesser WATER RESOURCES REFORM AND DEVELOPMENT ACT Environment and Energy Staff: Lynn Schloesser ENERGY -- NATURAL GAS REGULATION Energy & and Environment Staff: Lynn Schloesser/Don Sherman Work with private client organizations to respond to regulatory and permitting efforts by EPA that impose stricter controls on stormwater management. Facilitate the introduction and passage of comprehensive, multibillion dollar legislation to address the nation s water and wastewater infrastructure needs. Secure passage of new Water Resources Reform and Development Act (WRRDA). Engage with industry stakeholders to respond to pending EPA regulatory actions affecting natural gas development, including hydraulic fracturing methods of extraction. EPA developed proposed regulations, but did not release, opting instead to address through permits. Outreach done to NAIOP, NAHB, AGC. WRRDA 2014 provisions being implemented, including WIFIA pilot program, SRF reforms (including QBS expansion). HR 499 introduced to expand use of Private Activity Bonds (PABs) for water projects. Drought bill (S1894) includes infrastructure provisions. WRRDA 2014 includes key ACEC-backed provisions, including WIFIA, contracting out language, QBS, levee liability language, approval streamlining, and pilot programs allowing nonfederal entities to fund the construction of their projects. Stakeholder meetings held on next WRRDA bill. Regulatory actions pending at EPA. Outreach to industry stakeholders. Work with Congress and stakeholder community to respond as needed. Secure passage of new water legislation in Continue to advocate increases to water and wastewater SRF programs through appropriations process. Seek language that requires consideration of sustainability and resilience. Work with Congress on new WRRDA bill in Work with Congress and stakeholders as needed to respond to regulatory efforts.

11 2016 Legislative & Regulatory Matrix Page Seven ENERGY -- SUPPLY Environment and Energy Staff: Lynn Schloesser ENERGY DEMAND Environment and Energy Staff: Lynn Schloesser ENERGY -- PRICE- ANDERSON ACT LIABILITY PROTECTIONS Environment and Energy Staff: Lynn Schloesser SUPERFUND REFORM Environment and Energy Staff: Lynn Schloesser TAX REFORM Tax and Support legislative incentives for renewable, conventional energy/fuel production, energy efficiency, nuclear plant development, transmission facilities and grid reliability/security; engage with stakeholders on CPP; facilitate efforts by Federal Energy Regulatory Commission to regulate transmission planning and siting; engage agencies on cybersecurity regulations/processes. Support efficiency measures to reduce energy demand in buildings, including distributed resources to enhance efficiency/sustainability. Maintain Price-Anderson Act protections, and strongly oppose any effort to expand liability to contractors through subrogation. Reform and fund the CERCLA process to maximize efficiencies and expedite cleanup of the most polluted sites that exist around the country. Promote balanced tax reforms to benefit large and small firms, and protect key priorities, including the A/E deduction and cash accounting. FAST Act included provisions to promote grid reliability/security. Production tax credit for renewable projects included in tax extender package. Oil export ban repealed. House-passed energy bill (HR 8) includes provisions to streamline permitting process, LNG exports. Senate Energy Committee cleared bill to promote energy efficiency, improve grid. CPP rule finalized. Senate energy bill includes provisions to promote energy efficiency in buildings. Congress adopted 20-year extension of PAA. ACEC met w/ Rep. Calvert s office and will continue dialogue into 2016 for funding in Interior Appropriations bill. Ongoing dialogue w/ EPA. Submitted comments to the House and Senate on key ACEC priorities. Lobbied Congress during 2015 Convention on tax reform. Secure Senate passage of energy bill, passage of final conference report. Oppose federal regulation of shale gas drilling, fracturing. Work with coalition partners to preserve the FERC s authority to expand the grid. Include energy infrastructure in efforts to promote resiliency of critical infrastructure. Promote passage of energy efficiency provisions in comprehensive energy bill in Continue to communicate with member firms on implementation issues. Continue to meet with EPA and key congressional offices regarding Superfund. Continue meeting with Congress to discuss concerns and issues specific to engineering firms.

12 2016 Legislative & Regulatory Matrix Page Eight A/E TAX DEDUCTION Tax and DODD-FRANK MUNICIPAL ADVISOR REGISTRATION Tax and PROFESSIONAL SALES TAX Tax and PENSION REFORM Tax and HEALTH CARE REFORM Tax and Preserve the domestic production activities deduction (DPAD) for A/E firms, which was adopted in 2004 (9% A/E deduction); since then, several tax reform proposals have suggested eliminating the deduction. Work with the SEC to secure the broadest possible interpretation of engineering services that would be exempt from the agency s municipal advisor registration requirements under the new Dodd-Frank law. Oppose the imposition of the professional sales tax at the state level. Ensure that member firms that offer pension plans to their employees are protected from unreasonable mandates. Reduce the cost of health insurance for ACEC member firms and minimize burdensome mandates from 2010 Affordable Care Act. Elimination of the deduction was included in the House Ways and Means Committee tax reform discussion draft. Met with SEC officials to discuss industry concerns, and requested feedback on specific engineering services. Submitted comments to the MSRB on its fiduciary duty and pay to play draft rules. Defeated attempts to implement professional services taxes on A/E services in ME, CT, KS, PA, OH, LA and NE in recent years. Provided states with background info in advance of possible legislative efforts. Pension Protection Act signed into law, includes reforms for single employer and multiemployer pension plans, ensures that cash balance pension plans remain viable, and includes provisions for employee protection. Carried out education programs. Commented on proposed rules. Work with Congress to retain the 9% A/E deduction as part of tax reform. Request additional clarifications from SEC. Comment on MSRB rule when issued. Keep member firms advised on developments; continue education programs. Continue to refine resource materials for the MOs. Continue to monitor state legislative efforts to impose professional services taxes. Advocate for the protection of pension plans in the context of tax reform. Continue work on implementation issues. Repeal or modify mandates and other burdensome provisions.

13 FASB Issues 2016 Legislative & Regulatory Matrix Page Nine Tax and Engage with Financial Accounting Standards Board (FASB) on issues of concern to the industry. Submitted comments on both initial and revised proposals on revenue recognition from contracts, and leases. Continue to work with FASB on implementation. ESOP REFORM Tax and S CORP ISSUES Tax and CASH ACCOUNTING Tax and FAIR LABOR STANDARDS ACT (FLSA) Committee: Tax/Regulatory Support legislative initiatives to enhance the ability of A/E firms to offer employee stock ownership plans; oppose regulatory initiatives that would harm ESOPs. Oppose increased payroll taxes on engineering S corps; modernize rules governing S corps. Promote passage of legislation or regulation to permit the continued use of cash accounting by engineering firms. Protect industry interests in DOL proposed changes to rules governing exempt/non-exempt employees. Endorsed legislation to promote ESOPs, as well as legislation to promote S corporation ESOPs (HR 2096/S 1212). Submitted comments on the DOL s proposal to change the definition of fiduciary as it relates to ESOPs; revised rule eliminated ESOP appraiser provision. Endorsed HR 2788 to address S Corp issues: reducing the time when built-in gains are subject to tax, and increasing the allowable passive investment income. S Corp built-in gains provision made permanent in December 2015 tax legislation. Submitted comments to House and Senate committees opposing restrictions on cash accounting. Organized bipartisan House and Senate letters in support of ACEC s position. Gathered input from ACEC member firms and submitted comments on the proposed rule; Working with industry coalition. Work with Congress and business allies to advance reform legislation. Work with S Corp coalition to oppose future tax increase efforts. S corp built-in gains provision made permanent in December 2015 tax legislation. Continue working with Congress and other stakeholders to defend cash accounting. Work with DOL, industry coalition and Congress to revise the proposed rule to make more measured changes to the overtime pay threshold.

14 2016 Legislative & Regulatory Matrix Page Ten TERRORISM RISK INSURANCE ACT (TRIA) Risk Management EDUCATION -- LOAN FORFIVENESS PROGRAM Tax and LEGAL & LIABILITY REFORM Tax and ; Risk Management INTERNATIONAL -- QBS IN INTERNATIONAL DEVELOPMENT MARKET International Monitor implementation of TRIA, which was signed into law in 2002; requires primary insurers to offer terrorism insurance, provides federal backstop for property and casualty insurance (capped at $100 billion). Secure implementation and funding for a new loan forgiveness program advocated by ACEC to encourage more young people to pursue engineering careers. Secure passage of legislation to protect member companies from liability and frivolous lawsuits. Implement QBS with the World Bank and regional development banks, and counter the current practice of using QCBS, which puts US engineering firms at a competitive disadvantage; also ensure that US international agencies use QBS (USAID periodically circumvents Brooks Act). Legislation signed into law extended TRIA through December 31, Signed into law as part of last higher education reauthorization bill. Submitted comments to Education Department on implementation. Rep. Dave Reichert (R-WA) drafted legislation to provide Good Samaritan protections for A/E firms volunteering in disaster situations. New legislation drafted to provide liability protections to engineering firms acting as emergency responders. Ongoing discussions with World Bank and other development banks to promote QBS. Provided comments to World Bank Procurement regs. Met with USAID and MCC to discuss industry concerns. Briefed House and Senate committee staffs. Monitor implementation of the law. Continue to press agency to draft and issue implementing regulations. Secure funding through regular appropriations process. Continue building support for Good Samaritan legislation. Secure sponsor and introduction of new emergency responder bill. Actively lobby U.S. executive directors and procurement chiefs. Pursue legislative options via appropriations process. Press FIDIC members to educate governments on the benefit and use of QBS.

15 2016 Legislative & Regulatory Matrix Page Eleven INTERNATIONAL EXPANDING EXPORT OF US ENGINEERING SERVICES International INTERNATIONAL INFRASTRUCTURE FUNDING AS A PRIORITY International INTERNATIONAL HOST COUNTRY PROCUREMENT REGs International Work with Departments of State, Commerce, and Treasury on policy and procedural changes to expand the competitiveness of US engineering services abroad. Secure more funding for infrastructure development in US aid programs; boost infrastructure as a funded initiative within aid programs; Secure requirements that tie aid programs to the use of US firms. Oppose World Bank proposals to allow borrowing countries to use their own methods of procurement on Bank-financed projects. Secured extension of the EX-IM Bank charter to Held meetings with State, Commerce, other agencies to promote the export of engineering services. Signed partnering agreement with Commerce to promote engineering exports. Met with Cuban embassy officials to discuss trade opportunities. Lobbied House, Senate staff to list infrastructure as a funded initiative. Raised concerns over use of NGOs/GOEs in performing infrastructure work. World Bank limited host country procurement rules to government agencies with well-implemented procurement procedures. Secure legislation to promote the use of US firms by USAID and other agencies. Engage with Congress and other stakeholders on legislation to ease trade restrictions with Cuba. Engage Congress on Ex-Im Bank issues, including appointment of Board of Directors. Work with USAID staff, and House and Senate offices on possible legislative action items. Continue to participate in discussions with the Bank, Congress, and administration (Treasury Department) to improve programs.

16 2016 Legislative & Regulatory Matrix Page Twelve INTERNATIONAL -- EXPORT PROMOTION AND INTERNATIONAL ASSISTANCE PROGRAMS International IMMIGRATION REFORM - - H-1B VISAs Committee: International Steve Hall January 2016 Secure continued funding for key programs and institutions that promote the competitiveness of US engineering overseas, including the US Trade and Development Agency, USAID, MCC, OPIC, Export Import Bank, the World Bank and regional development banks. Lift the cap H-1B visa approvals, which allow highly skilled foreign workers to work in the U.S., to address the lack of qualified engineers available in the U.S. Helped to secure USAID s Construction assessment, which audited USAID s management of infrastructure projects to raise engineering in their internal decision making process and to require professional engineering (through U.S. engineering firms) planning, oversight, and performance of infrastructure work. Submitted language to House and Senate committees to promote the use of US firms. The Senate approved immigration reform bill that includes boost in H-1B visas from the current 65,000 to as high as 180,000. House Committee approved increase in H-1Bs. Urge Congress to fully fund export promotion and technical assistance programs. Work with funding agencies to improve the position of US firms and internal engineering involvement in infrastructure projects decision making. Support passage of H-1B visa language as stand-alone legislation or as part of comprehensive immigration reform.