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January-February 2022

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10 PalletCentral • January-February 2022 palletcentral.com POLICY PLAY AT W elcome to 2022. is year feels familiar in many ways. e supply chain, labor, and COVID pandemic still dominate the headlines and our daily lives. Yet, unlike 2021, this year, we have mid- term elections. e beginning of this year may feel like last year, but with each passing week, the election will begin to take over the news and, importantly, determine what happens on Capitol Hill. Let's briefly walk through what to expect this year. Like last year, we kicked 2022 off by focusing on the Senate, which holds the keys for the Democrats to fulfill the promises that they ran on in the 2020 elections. Unfortunately, some of those promises would result in harmful tax increases for the industry, which is why we are glad that we succeeded in getting those increases scrapped. In some ways, it is strange that the Democrats have expended so much energy on this reconciliation package, known as Build Back Better. Democrats and Republicans came together and passed historic infrastructure legislation that is the most significant investment in the nation's failing infrastructure in decades. But Democrats have not simply sat back and claimed this victory. Instead, they've experienced a lot of bad press, anger, and frustration as they've pushed to reach a consensus on Build Back Better. Why? One reason is that many in Congress have championed policies in this bill for decades and, in some cases, their entire political careers. ey view this year as the last, best chance to reach their goals. Because the stakes are high, most folks anticipate that some version of Build Back Better will pass, but the final text will be very different from the original. is hyper-charged environment is building towards what will likely be the most contentious mid-term election we've had in recent memory. Each party has a lot on the line. Suppose Republicans win back both the House and the Senate. In that case, they will grind to a halt any legislative progress that Democrats have made and would force President Biden to compromise on every piece of legislation that he signs. ey'll have the power to pursue investigations, stop judicial nominations, and pass bills that roll back the policies that Democrats have enacted. On the other hand, Democrats would still have to compromise if they lose the House but retain the Senate. However, Democrats would have significantly more leverage in legislative negotiations and could still confirm nominees to the judiciary and run agencies. I am not in the prediction business, mainly because there is a political eternity between now and the election. For now, all signs point to a nearly impossible task for Democrats to retain control of both chambers. At the same time, they maintain a decent chance of successfully defending their power in the Senate. So, what does an election year mean for legislation? e President will sign fewer bills into law, and that each will be fought over and be full of policies that Members of Congress believe will win them reelection. is dynamic makes complete gridlock unlikely but makes negotiations more contentious. Neither party will want to hand the other a clear victory, but they also want to be perceived as having the ability to govern. In this type of legislative environment, it is increasingly vital to have congressional champions. A congressional champion is a friend of the industry who can fight for our priorities behind closed doors. at is why last year, we leveraged the PalletPAC more than any year prior, and we plan to do so again this year. is one-on-one time with Members of Congress is critical to developing enough relationships that the outcome of any one election does not doom our ability to advance priorities and protect the industry. You can be a part of that process by volunteering to host your Member of Congress for a plant tour. It's an invaluable way to showcase the critical work you and your employees do every day to keep the supply chain moving. Congressional plant tours also raise the profile of the overall industry and build our visibility and influence on the Hill. Please reach out to me directly if you are interested. New Year, Familiar Issues As the mid-term election cycle gains momentum in 2022, all eyes are on the legislative environment and the potential election outcome that will impact our industry. By Jason Ortega This one-on-one time with Members of Congress is critical to developing enough relationships that the outcome of any one election does not doom our ability to advance priorities and protect the industry. Jason Ortega is vice president, public affairs, at NWPCA. He also manages the NWPCA Political Action Committee for the Association. He may be reached at jortega@palletcentral.com or by calling 703.519.6104.

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