Capitol Hill

As this issue goes to press, the Nov. 7 general election has not yet been held, but NRCA's Washington, D.C., office is prepared to make course corrections to roofing industry issues—regardless of which party controls the 110th Congress. If Democrats take majority control of the House of Representatives and/or Senate, there will be a philosophical shift on Capitol Hill with regard to most business-related issues.

For example, committees of jurisdiction for Small Business Health Plan (SBHP) legislation are the Senate Health, Education, Labor and Pension (HELP) Committee and House Education and Workforce Committee. The current chairman of the HELP committee is Sen. Mike Enzi (R-Wyo.), who has a 92 percent lifetime voting record with the U.S. Chamber of Commerce. If Democrats take control, the HELP chairman would be Sen. Edward Kennedy (D-Mass.), who has a 22 percent chamber record. In the House, the current chairman of the Education and Workforce Committee is Rep. Howard "Buck" McKeon (R-Calif.), who has a 96 percent record with the chamber, and the chairman-in-waiting, Rep. George Miller (D-Calif.), has a 22 percent chamber rating.

A shift of control in either committee temporarily would halt progress for SBHP legislation because neither potential Democrat chairman supports SBHPs.

Also, these committees have jurisdiction over the Occupational Safety and Health Administration (OSHA), and new chairmen likely would bring more adversarial OSHA oversight and a push for more aggressive enforcement policy.

R2T2 and energy legislation

The Realistic Roofing Tax Treatment Act (R2T2) to shorten the tax depreciation schedule for commercial roof systems from the current 39-year schedule to 20 years has bipartisan support in both chambers. If Republicans keep the Senate, Sen. Jim Bunning (R-Ky.), a member of the Finance Committee—which has jurisdiction over tax bills—who has been lead sponsor of R2T2, would be asked to re-introduce it in the 110th Congress.

In the House, the Ways and Means Committee has jurisdiction and 10 committee Republicans have been co-sponsors of R2T2. Most are expected to win re-election, and if Republicans keep the House, a new lead sponsor will be secured from this group.

R2T2's energy-efficiency benefit would fit well in broader energy legislation. But passing broad energy legislation is difficult regardless of the party in control because of controversial issues such as opening the Alaska National Wildlife Refuge for oil exploration. Therefore, a Democrat takeover likely would focus on amending existing provisions in the Comprehensive Energy Policy Act of 2005.

This would present an opportunity to revise the bill's commercial building tax deduction for energy efficiency to make it work. Currently, a $1.80 deduction per square foot is available for buildings that attain a 50 percent improvement over ASHRAE 90.1, "Energy Standard for Buildings Except Low-Rise Residential Buildings," which is a steep threshold to meet. It might be possible to work with Senate Democrats to lower the threshold and make it easier to deduct for roofing.

Democrat control of the House will make Rep. Charles Rangel (D-N.Y.) chairman of the Ways and Means Committee, and though potentially amenable to energy-efficiency deductions, Rangel opposes cuts in estate and personal income taxes. When asked whether any Bush tax cuts should be kept, Rangel said he could not think of one, so estate tax repeal would be out. And when asked about tax increases, he said, "Everything has to be on the table."

Immigration

In the 109th Congress, both chambers passed immigration bills, but House Republicans balked over the Senate's guest worker program and path to citizenship for millions of illegal aliens. Democrat control of the House in the new Congress would make it more feasible to pass comprehensive immigration reform legislation championed by President Bush and supported by NRCA.

A waiting game

NRCA's ability to advance its agenda with regard to SBHPs, OSHA, R2T2, taxes and immigration will be determined by which party controls the House and Senate. Each paradigm will present opportunities for legislative initiatives upon which the Washington, D.C., office is prepared to act.

Craig S. Brightup is NRCA's vice president of government relations.