Tag: Local 825

There have been several recent notable announcements on the infrastructure front in the Garden State, so it’s a good time to check in with Greg Lalevee, business manager of the International Union of Operating Engineers, Local 825. The union has more than 8,000 members who would handle much of the work on these projects.

The conversation covered a range of critical topics at the forefront of the infrastructure discussion around the state, beginning with Gov. Phil Murphy’s recently announced accelerated climate goals, which include a call for all new car sales to be electric in New Jersey by 2035.

“People discount the weight of the vehicles and the accelerated beating that they will put on the roads,” said Lalevee. “There’s no plan in place yet. Although with TTF [Transportation Trust Fund] renewal coming in 2024, I can’t imagine that we did a mandate on EVs that are heavier and will beat the roads harder than to figure out how to get those vehicles to also help pay for the roads they’re going to beat up.”

Lalevee stressed that the devil is in the details, and wondered what the plan truly is as well as the process to achieve it. “I would think, or I would hope that since the governor controls DEP [Department of Environmental Protection] that there would be some kind of expedited permit process for these entities to help them reach his goal,” Lalevee explained. “But, of course, the date of the goal is two governors away. So, God only knows what could happen between now and then.”

As the conversation continued about the clean energy goals of the state and how realistic they are, Lalevee made one point clear.

“Cleaner air is always good and clean air is a goal,” he said.

Lalevee tied in the clean energy discussion with another project that he has been advocating but is getting push back from environmental groups and local officials on: The proposed widening of the New Jersey Turnpike Extension leading to the Holland Tunnel. That initiative has a price tag of more than $10 billion and is supported by the governor and the New Jersey Turnpike Authority.

“There is a space in the world where, by the time the Turnpike Extension would be built, according to the governor’s mandate, we’ll all be in electrical cars,” said Lalevee. “So, the emissions argument falls on itself. There’s an opportunity while we’re building the project to use carbon capture concrete and actually do something good for the environment.”

Meanwhile, in early March, despite the growing calls to pause sector activity amid an increasing number of whale and dolphin deaths at the shore, the state opened a third solicitation for offshore wind projects to be built off the Jersey coast. Preliminary work, such as surveying, is currently underway.

Lalevee said he reacted to that news as “neutral,” because he would like the projects already in the works – such as Ocean Wind 1 – to get going at a more accelerated pace, pointing out that his Local operates both in New Jersey and New York. And despite the critics of offshore wind here in New Jersey saying that things are going too fast, Lalevee noted that he is watching New York be more aggressive in trying to capture the industry.

“And I think we may have some lost opportunities here if we don’t really kick this thing in the rear end and get moving,” he explained. “The third solicitation is good. But we need to be out in the water constructing something by Jan. 1, 2025. My understanding is we stand to lose a lot of money if we don’t hit that goal in federal subsidies. Let’s get about it and figure it out.”

From there, the discussion shifted to the governor’s recently proposed $51.3 billion state budget, and how that plan was received from Lalevee’s perspective.

At the top of the list, he mentioned reducing the transfer of New Jersey Transit capital to operating funds. The proposed budget calls for moving $334 million from the former to the latter, which is lower than the $362 million transferred in the Fiscal Year 2023 spending plan.

“The governor has consistently made progress. Has he been able to stop it? No. Is it at a level that we like? No. Do I applaud the progress he’s made? Absolutely,” said Lalevee. “At least we’re going in the right direction.”

Lalevee also cited the proposed $100 million Boardwalk Fund, describing it as an interesting concept, especially given the importance to the economy of boardwalks up and down the Shore. “None of us has all the details, but starting a fund that can work with boardwalk construction, I think, is a good thing,” he said. “And I’m glad it’s potentially a standalone thing.”

Another major development since the start of the year that will have a significant impact on Lalevee’s members – in a positive way – is the continued momentum of the Gateway Program, including a January announcement by President Joseph Biden unveiling a new $292 million Mega Grant to fund a critical early phase of the long-delayed Hudson Tunnel Project. That was followed by a February bid solicitation from the Gateway Development Commission for early construction work and utility relocation. And that momentum builds from groundbreaking last August on the Portal North Bridge project.

Lalevee said all these developments are good news and steps in the right direction.

“When you add up Biden putting money on the table, or at least saying he will, the Hudson Yards project, utility relocation; everything seems to be gelling here in the right way,” said Lalevee. “It’s an awesome opportunity. The job, as it was laid out to us, would include a major track relocation over to the area where this utility relocation would be; two projects over in Manhattan, which would be open excavation of the tunnel, then the boring of the tunnel itself; and then a project which would lay all the tracks and put in all the signals and switches.”

“There is a definite plan of attack,” he added. “There’s definite conversations going on that are productive.”

He made a point to mention how critical it is to have Kris Kolluri, chief executive officer of Gateway Development Commission, as a point person coordinating the efforts to make the project a reality. Kolluri also recently topped NJBIZ’s 2023 Power 100 list.

“When Kris was first appointed there, we were very happy about it,” said Lalevee. “Because he’s the kind of guy who can deliver this project.”

Because of all those factors coming together, Lalevee is optimistic about continued activity, expecting more bid packages and for things to move forward over the next 12-15 months.

“Certainly, how quickly different agencies can get projects out that are tied to some of the federal funding that’s come out,” he said. “So, how do we do that? How do we make sure that we get our fair share?

“There’s so much work to do that I hope that different entities can get it out on the street and out for the competitive bids at a robust pace,” Lalevee added. “Because the more bid opportunities out there, the more you’ll attract the businesses to go after them. You’ll get good competition. You’ll get good pricing. I hope there’s a lot of energy in Trenton in moving, not talking. But acting on grabbing every federal dollar we can grab.”

And, more broadly, Lalevee remains focused on training and supplying a well-prepared and qualified workforce. Lalevee noted the Local’s apprenticeship program is competitive and receives ample interest from potential apprentices.

“We just want to make sure that the state and other government entities are doing their job to seize on all the dollars they can so that we can bring in enough people, train them, and supply them. Because the interest is definitely there,” Lalevee explained. “The problem is making sure that we have a steady diet of work for the people that are here and that we make sure we continue to fill the pipeline. And to do that, it’s just a matter of continuing to have thoughtful conversations and collaboration, and reaching those goals.”