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Home / News / NASBP Focal Point – July 1, 2020
Nine state legislatures are currently in session: California, Delaware, Federal, Hawaii, Louisiana, Michigan, Mississippi, New Jersey, New York, and Pennsylvania.
Territories: Guam, Puerto Rico, and the Virgin Islands.
In This Issue
  • Federal Report
  • House Surface Transportation Bill; FCC Comment Letter
  • COVID-19 Impact
  • Nonprofits
Federal Report:
House Surface Transportation Bill; FCC Comment Letter
On Monday, the House Rules Committee approved amendments to the Moving Forward Act (H.R. 2 ), which included provisions to address a clean energy sector and to reduce vehicle emissions. Republican Senators oppose the bill and have termed it a “Green New Deal wish list.” Furthermore, the White House released a statement yesterday, recommending President Trump veto H.R. 2 if it reaches him. According to the statement, “H.R. 2 is full of wasteful “Green New Deal” initiatives that would impede economic growth and impose unnecessary mandates, hindering innovation and driving up costs for the American people.”
Today, the House is expected to act on the 5-year $1.5 trillion package. Among those amendments accepted are: authorizing $20 billion over 5 years, and $84 million per year over 10 years to bolster Energy Department programs that make federal buildings and other public building infrastructure more energy efficient; authorizing $250 million per year over five years for an EPA grant program that provides incentives for ports to create plans to reduce emissions and other air pollutants; and authorizing more than $70 billion to modernize the electric grid for greater renewable energy use. 
A bipartisan amendment offered by Representative Stephen Lynch (D-MA-8 th ) on behalf of the surety industry was not included in the final bloc of amendments approved by the House Rules Committee. The Lynch amendment sought to clarify that payment and performance security should be required for federally funded infrastructure projects such as those financed through the Transportation Infrastructure Finance and Innovation (TIFIA), which also includes projects financed for Public-Private Partnerships (P3) agreements.
The U.S. Department of Transportation opposed the Lynch amendment because it was viewed as overly-burdensome, too complex, and would slow down the TIFIA loan approval process. The U.S. DOT’s position and, in particular, the Build America Bureau, who is tasked with providing credit/grant opportunities for all modes of U.S. transportation projects, has not waivered on its position pertaining to surety bonds since NASBP met with the Bureau in 2017.
Last week, NASBP submitted a comment letter to the FCC on their proposed Rule on 5G for Rural America. We emphasized that the FCC’s letter of credit requirement when bidding on FCC rural broadband auctions creates an undue burden on small internet service providers. In line with letters from rural broadband advocates and several US Senators, NASBP asked the FCC to consider alternate risk management measures, specifically surety bonds.
To stay up to date on NASBP’s efforts through the COVID-19 pandemic, please follow along here.
COVID-19 Impact:
Nonprofits
This week, NASBP signed on to a letter spearheaded by the American Society of Association Executives (ASAE) that seeks to provide nonprofit organizations with financial aid options in light of the COVID-19 pandemic. Specifically, the letter makes three requests: 1) provide 501(c)(6) organizations access to the Paycheck Protection Program (PPP) and reauthorize the PPP until at least December 31, 2020; 2) pass the Pandemic Risk Insurance Act of 2020 (H.R. 7011), which would establish a system of shared public and private compensation for business interruption losses and event cancellations resulting from future pandemics or public health emergencies; and 3) pass the Skills Renewal Act (H.R. 7032 / S. 3779), which would provide Americans who have been laid-off or furloughed due to COVID-19 a $4,000 tax credit to pursue post-secondary skills training and career development. 
NASBP will continue to furnish updated information as it becomes available. 
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The National Association of Surety Bond Producers
Focal Point is an e-bulletin sent to members and friends of the 
National Association of Surety Bond Producers
 when most state legislatures are in session and as needed thereafter. To obtain copies of Bills or other materials discussed above, contact 
advocacy@nasbp.org
. Copyright © 2020. NASBP. All rights reserved.
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Publish Date
July 1, 2020
Post Type
Focal Point
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