Contractor responses to a new survey compiled by the American Builders and Contractors indicate strong opposition to both prevailing wage and government-registered apprenticeship programs under the comprehensive Inflation Reduction Act. That legislation, signed into law by President Biden in the summer of 2022, was designed to curb inflation through a series of measures, including the reduction of the federal budget deficit, while also investing in U.S. domestic energy production. But the aspect of the legislation promoting clean energy has sparked contractor opposition, notes the survey, due to a series of mandates. Respondents, said Ben Brubeck, vice president of regulatory, labor, and state affairs for ABC, overwhelmingly believe that the mandates in question will decrease competition among contractors on clean energy projects. Those respondents, said Brubaker in a statement, said they would be “much more likely to participate in clean energy construction if there is clarity in these policies.” The survey also indicated that an overwhelming 98% of respondents said proposed incentives for “union-favoring project labor agreements” would make them less likely to bid on Inflation Reduction Act clean energy projects. An equally large 98% said that complying with union work rules on projects where union wage rates prevail would “increase the burden of complying” with the legislation’s goals. “Many ABC contractors will be needlessly disincentivized from bidding on these projects because of the Biden administration’s lack of regulatory clarity” in implementing the Inflation Reduction Act, continued Brubeck. A White House statement celebrating the one-year anniversary of the Inflation Reduction Act said the legislation has helped the U.S. “meet its climate goals,” while strengthening energy security, creating high wage jobs, and reducing energy costs. The statement added that the legislation has led to the creation of up to 170,000 new clean energy jobs, as well as a private sector investment of more than $110 billion in clean energy manufacturing. The Congressional Budget Office has concluded that ultimately the Inflation Reduction Act will invest upwards of $783 billion in energy security and climate change initiatives. By Garry Boulard
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