Operating Engineer - Fall 2014

Politics & Legislation
Next Congress Will Have Its Plate Full of Big Issues
AS THE 113TH CONGRESS
comes to a close in December, what
do Operating Engineers have to look
forward to in the next Congress? Will
it be another two years of partisan
gridlock and obstruction, or will the
politicians finally get things moving
again and rebuild America?
Keystone XL
Congress is again expected to try
to approve Keystone XL pipeline,
the crude oil pipeline from Alberta
to Nebraska, with an on-ramp in
Montana to move Bakken crude to
refineries. The TransCanada-owned
pipeline project will employ thousands
of Operating Engineers in the United
States and Canada.
A strong majority in the House of
Representatives is ready to move this
project forward. Currently, at least 57
Senators support the project, though
60 votes are necessary to send the bill
to the President’s desk.
Those 60 pro-jobs, pro-energy votes
could be in place after the mid-term
election. However, there still won’t be
enough votes to override a presidential
veto – a two-thirds majority of 67
senators – but look for an effort to
package Keystone XL with other must-
have legislation for the President, thus
making it difficult for him to throw out
the “baby with the bathwater” with his
veto pen. Operating Engineers will be
pushing every member of the House
and Senate to support this important
project in the next Congress.
Transportation Funding
Congress patched the hole in
the Highway Trust Fund in the
summer, cobbling together $11 billion
in funding for the program that
extends it until May 2015. This saved
thousands of Operating Engineers’
jobs in the process. Congress averted
the immediate crisis, but has been
unwilling to wrestle with the long-term
problem – enactment of a fully funded,
multi-year highway bill.
A long-term funding solution
is necessary before the May 2015
deadline. The highway and transit
program has an annual shortfall of
roughly $15 billion a year. Inflation
has eaten away at purchasing power
and increased vehicle fuel-efficiency
has reduced revenue into the Highway
Trust Fund.
The highway and transit program
is the biggest infrastructure program
of the federal government. It is a key
job-creation engine for Operating
Engineers and the American economy.
The Highway Trust Fund delivers
most of the nation’s funding for roads,
bridges, and highways.
Money into the Highway Trust
Fund, which is mostly derived from the
gas tax, is walled off and insulated from
other federal government spending. In
order to plan for massive transportation
investments, planners and engineers
need certainty that the money will be
there over the long-term.
Domestic Oil and Natural Gas
The dramatic increase in domestic
oil and gas production has led to
economic opportunities across North
America and across the IUOE, from
power plant construction in Virginia to
liquefied natural gas export facilities in
Maryland and Oregon.
However, the permitting process
and other laws have failed to keep
pace with this rapid growth. In order
to maintain that growth the regulations
and laws that govern energy production
must be updated and modernized. For
example, it takes an act of Congress to
approve a pipeline through a national
park, even though there may be
existing utility corridors in the park
that, if used for an oil pipeline, could
reduce environmental impact along
the route. That outdated law limits
energy infrastructure, jobs, and oil and
gas production. The IUOE will work to
bring the nation’s energy laws into the
21st century.
The union will stay focused on
creating jobs and supporting good
wages and benefits in its legislative
agenda, independent of what party
controls Congress or the White House.
Creating jobs is not a Republican issue
or a Democratic issue. It’s just common
sense.
Record Job Gains Achieved in Oil & Gas,
More to Come as Industry Continues to Expand
NATURAL GAS PRODUCTION
and prices have powered the creation
of thousands of jobs for Operating
Engineers. This relatively cleanburning
fossil fuel is displacing other
sources of power production and
leading to significant changes in where
North Americans obtain their fuel
supply. The rapid growth in production
could help the US and Canada reduce
dependence on foreign energy sources
and create opportunities in virtually
every sector of the economy.
Stationary Engineers have seen
a resurgence of jobs, particularly in
the Petro-Chem industry, as energyintensive
manufacturing benefits from
the relatively low cost fuel.
At the same time hoisting and
portable members have seen
employment in the oil and gas pipeline
industry hit a new all-time high this
summer, reaching over 143,000 jobs for
the first time on record.
Developers of the North American
resource are now moving to export the
clean fuel to destinations in Europe
and Asia. The Cove Point project
in Maryland just received the goahead
from federal regulators and
the all-union project should begin
construction in the near future. The $5
billion project that will be built under a
Project Labor Agreement by Kiewit.
The Jordan Cove LNG project in
Coos Bay, Oregon, will also reach
a significant permitting milestone
before year’s end with multiple
public hearings being conducted in
December. Construction could begin
in 2015.
These are massive, multi-billion
dollar, all-union investments that will
generate millions of hours of work
for Operating Engineers and other
construction trades.
EnginEErs Action rEsponsE nEtwork
Because elections matter
Make your voice heard • Register for EARN today
www.iuoe.org
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INTERNATIONAL OPERATING ENGINEER
FALL 2014 11