Manufacturers have been watching the debate on raising the debt ceiling with great concern over the past month. They understand that if the U.S. government defaults on their obligations, job creators cannot succeed or grow, much compete globally. Manufacturers, such as the LORD Corporation have reached out to elected officials, stressing the importance of reaching a deal to raise the debt ceiling and also to address the ever-growing spending problem in Washington. The letter states:

“America cannot afford to renege on its commitments, and LORD would not be in a position to add jobs if our country were to default on its loans. Assuming that there is a last-minute deal to raise the debt limit and avoid default, the terms of this deal will also have a direct impact on our ability to add jobs and remain competitive in the future.”

Earlier this month, the National Association of Manufacturers sent a press release and joined with over 400 other organizations in a letter to leaders in both the House of Representatives and Senate, as well as to the President, expressing the critical importance of raising the debt ceiling to ensure the stability of our economy, and preventing an economic catastrophe. Default is not an option; it would be a fundamental failure of the government to fulfill the obligations they have made.

The reality is that Washington continues to spend more than it takes in – this is fiscal irresponsibility at the highest level. Individuals are expected to pay their taxes, mortgages and other bills and live within their means – should it be any different for the government? There is no question that we must pay the bills our nation has incurred, but moving forward, an era of fiscal responsibility is needed to sustain the economic health of not only America, but the global economy.

Today, Senator Susan Collins (R-ME) and Senator Ron Wyden (D-OR) introduced bipartisan legislation that would stay the current Boiler MACT regulations. These regulations would stifle economic growth and threaten tens of thousands of manufacturing jobs. The National Association of Manufacturers joined a number of organizations, sending a letter to the Senate in support of this bipartisan legislation.

Senators Collins and Wyden issued a press release outlining the legislation, which will delay the costly and burdensome regulations, providing ample time for the Environmental Protection Agency (EPA) to craft a realistic and achievable final rule.

Specifically, this legislation would:

• Ensure the rules are stayed for an adequate and certain period, as the EPA’s current administrative stay is being challenged;
• Allow the EPA adequate time to re-propose the rules and get them right, including time for stakeholders to conduct more emissions testing and to avoid mistakes that occur when rulemakings of this scope and importance are rushed and become vulnerable to legal challenge;
• Provide direction and support for the EPA to use the discretion it already has under the Clean Air Act and Executive Order 13563 to add flexibility and make the rules achievable;
• Clarify that various materials, such as biomass residuals, are fuels and that certain gases in manufacturing processes do not result in boilers being treated as incinerators; and,
• Give facilities more time to comply with the complex and capital-intensive requirements of the rules.

This bill is similar to H.R. 2250, the EPA Regulatory Relief Act of 2011, bipartisan legislation introduced earlier this month in the House of Representatives.

At a time of record unemployment, the last thing manufacturers need to face are excessive regulations that will increase the cost of doing business and diminish their ability to successfully compete in the global marketplace.

If the EPA continues to pursue its aggressive regulatory agenda on the Boiler MACT rules, manufacturers will be unable to make future investments, create jobs, and spur economic growth during a time when these actions are needed most.

Today, Aric Newhouse, senior vice president for policy and government relations at the NAM, joined several industry leaders to discuss with the media the negative impacts of the Environmental Protection Agency’s (EPA) proposed ozone standards on jobs and economic growth.

Newhouse participated along with Governor John Engler, president of the Business Roundtable (BRT); Jack Gerard, president and CEO of the American Petroleum Institute (API); Cal Dooley, president and CEO of the American Chemistry Council (ACC); and Bruce Josten, executive vice president for government affairs at the U.S. Chamber of Commerce.

Aric Newhouse and industry representatives discuss the EPA Ozone Standards

Newhouse explained that manufacturers in the U.S. start each day at an 18 percent disadvantage (excluding labor costs) compared to their competitors outside the U.S. Increasing the cost of manufacturing in the U.S. to comply with burdensome and costly regulations is unacceptable and will only continue to diminish our global competitiveness. Manufacturers are looking for a common-sense, balanced approach to regulatory policy. Unfortunately, these proposed ozone standards do not present such an approach.

He urged the EPA to hold off on current action until the next statutory review is required in 18 months, allowing for an appropriate review with new data and scientific studies on ozone regulations. By moving forward now, the Administration is using stale data gathered prior to 2008 to formulate these proposed ozone standards, ignoring the real-life effects their actions will have on a wide range of industry sectors.

The cost of nonattainment will make it difficult for manufacturers to grow and lead the economic recovery because these new ozone standards are excessive and unrealistic. These standards will affect a broad spectrum of industries and will freeze the economy, preventing future investment, expanded operations and job creation. The President must put the brakes on the EPA and use his authority to stop the Agency from continuing to impose new, irrational ozone regulations.

Additionally, last Friday, NAM President and CEO Jay Timmons, along with several other trade association representatives, met with EPA Administrator Lisa Jackson to discuss these proposed new ozone standards. Timmons conveyed the business community’s concern with the new proposal and told the Administrator that these standards would stifle economic growth and job creation.

The Nuclear Regulatory Commission (NRC) conducted a study of the events of the Fukushima disaster and generated a report  on the fallout and what could be done to prevent it. Additionally, they reviewed the safety features of nuclear energy facilities in the United States as a reliable source of power.

This report will be part of discussions moving forward on how to maintain the strong safety record of the nuclear industry in the U.S. As the National Association of Manufacturers (NAM) continues to review the report, it is important to keep in mind that adding costly, unnecessary and reactionary regulations, simply for the sake of regulations is not the solution. This will only prevent job creation and growth within the industry.

The NAM has long been an advocate of nuclear power as one of the many sources of energy needed to meet the growing demands of our nation. We agree with President Obama that Nuclear energy is a “necessary investment” in the future of our nation. The NAM believes in an “all of the above” approach when it comes to our nation’s energy portfolio, and nuclear power has shown to be a safe, effective, clean and reliable source that generates roughly 20 percent of the energy our nation uses.

Coverage of the Report:

•  UPI: Differences between U.S. and Japanese nuclear regulations

Yesterday, the National Association of Manufacturers (NAM) filed comments with the Department of the Interior’s (DOI) Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) urging them to expedite the permitting and lease process in the Chukci Sea and other areas of Alaska’s Outer Continental Shelf (OCS) for oil and natural gas development.

Estimates show that in Alaska’s OCS, there are roughly 27 billion barrels of oil and 132 trillion cubic feet of natural gas. It is time to put an end to needless red tape, excessive delays and unreasonable regulations preventing domestic exploration and production.  Using these abundant resources will not only generate $193 billion in revenue to the government over the next 50 years, it will also create tens of thousands of jobs, increase our energy security and our domestic supply as well.

While unemployment continues to increase, and energy prices are at record highs, it is time we use the domestic resources readily available to us to solve the problems we face.

Manufacturers support responsible and environmentally sensitive practices that promote safety and conservation, and this can be achieved; all while securing our energy future and rebuilding our shaken economy. It is time to open up Alaska’s OCS.

Today, the U.S. Senate Committee on Environment and Public Works Subcommittee on Clean Air and Nuclear Safety held a hearing on Utility MACT regulations, specifically focused on the oversight of the Clean Air Interstate Rule (CAIR) and the Clean Air Mercury Rule (CAMIR).

The Committee heard from Ms. Barbara Walz, the Senior Vice President for Policy and Environment at Tri-State Generation and Transmission Association, Inc., based in Westminster Colorado.  Her testimony focused on the concerns a major utility provider, such as Tri-State has with the aggressive regulations the EPA has proposed.

Ms. Walz highlighted that these regulations are unachievable, and would raise the cost of energy for consumers and manufacturers. She stated:

Although the economy is still recovering, Tri-State member system demand for energy continues to increase about 3-4% per year. Therefore, Tri-State needs to plan for new generation stations and continues to look at all fuel options with a focus on affordable, reliable electricity that is environmentally sound. Under the proposed MACT rule, new coal units can NOT be constructed to meet the MACT standards due to the fact that technology does not exist to meet limits, vendors will not give guarantees to meet limits, and financial institutions will not support new projects that are not able to ensure compliance with environmental rules.

While Tri-State continues to make advancements in renewable energy, such as solar, wind, natural gas and hydro-power, the company points to coal as the most cost effective and reliable source to meet their customers’ needs.

Ms. Walz concluded:

Tri-State supports good environmental regulations, but, firmly believes that the MACT rule goes beyond EPA authority and over-regulates coal fired power plants. Existing Tri-State stations generally meet the mercury emission limits in the MACT rule through co-benefits of existing controls. We believe that the proposed rules for the Utility MACT are not reasonable, are not based on sound practices of data quality and are not readily achievable using generally available emission control technologies, especially for new units.

To view the entirety of Tri-State Generation and Transmission Association’s testimony, please click here.

Yesterday was a good day for manufacturers as the House of Representatives overwhelmingly passed H.R. 1249, the America Invents Act, which will make the first meaningful reforms for the U.S. Patent and Trademark Office (USPTO) in nearly sixty years. “No longer will American inventors be forced to protect the technologies of today with the tools of the past,” stated Representative Lamar Smith (R-TX), Chairman of the House Judiciary Committee.

Additionally, as reported in Politico:

“The legislation switches America to a first-to-file from a first-to-invent nation, expands the ‘prior art’ that can be used to challenge a patent and sets up a new regime to challenge patents at the patent office. In all, the legislation is designed to make patent approval swifter and make it easier to weed out low-quality patents.”

Passage will not only help with the creation of jobs, but it will also help save jobs. This legislation will give manufacturers in the U.S. the competitive advantage they need for future investments that will achieve the technological breakthroughs and groundbreaking innovation manufacturers in the U.S are known for.

Today’s coverage of the passage of H.R. 1249

• Politico: Patent law rewrite clears House
• The Hill: Controversial patent reform bill approved by House
• National Journal: Industry, Universities Praises Passage of House Patent Bill
• CNN: Patent reform is finally on its way

Click here to see Brian Raymond, Director of Technology and Economic Policy at the National Association of Manufacturers discuss the importance of patent reform and the America Invents Act.

Last night’s bipartisan vote in favor of H.R. 2021, the Jobs and Energy Permitting Acts was a big step in the right direction for domestic energy production. This is important to manufacturers because this measure will expand our domestic energy supply and create new, high paying jobs that will help in our economic recovery.

This legislation eliminates needless regulations that have resulted in endless litigation and prolonged delays in energy exploration and production off the coast of Alaska. With these barriers removed, job creators can finally get out of the courtrooms and back to their rigs.

The Senate has introduced companion legislation which has already received bipartisan support, and the backing of manufacturers.

Manufacturers played an important role in passage of this bill by placing a full page ad in Roll Call and also sending a Key Vote letter to members of Congress in support of H.R. 2021, the Jobs and Energy Permitting Act.

Now all eyes turn to the Senate, where both of Alaska’s Senators have been vocal in their support of this measure.

The House Energy and Commerce Subcommittee on Environment and the Economy, chaired by Rep. John Shimkus (R-IL), stood up for domestic energy producers and the importance of coal as a reliable, domestically produced source of energy, which has other important uses. 

This afternoon at 4:00pm the House Energy and Commerce Subcommittee on Environment and the Economy marked up the “Coal Residuals Reuse and Management Act,” which would prevent the Administration from classifying coal ash as a hazardous waste, and ensure that it is properly regulated.

For video of the markup, as well as statements and amendments, please click here.

Coal ash is the byproduct of coal combustion used for the generation of electricity. By recycling the byproduct, manufacturers are conserving resources, and producing a product that is used to make our buildings and roads studier – creating jobs and preventing high energy costs.

Yet, the EPA is seeking to reclassify coal ash as a hazardous waste. This shortsighted approach is another example of overregulation and disregards the important applications of coal ash, and will only increase the cost of energy for manufacturers.

In a news release recently issued by the EPA, the agency has announced a 30 day extension of the public comment period on the proposed mercury and air toxics standards rule. Stays, delays and extensions seem to be common place lately with the EPA regarding their aggressive and unpopular regulatory agenda that has drawn opposition from industry leaders. There is a growing concern about the effect these regulations will have on future expansion, investment and job creation in this fragile economy.

The EPA even openly acknowledges that pressure from members of Congress had a direct impact on their decision. Concern regarding this rule crossed party lines, with members such as Rep. John Dingell (D-MI) to Senator John Brarrasso (R-WY) weighing in, questioning the rule and asking for an extension to examine it more closely. A Reuters article discusses congressional involvement in further detail.

Coverage of the extension:

Bloomberg: “EPA Extends Comment Time on Mercury and Air Toxics Proposal”
The Hill: “EPA Extends Comment Period on Proposed Mercury Rule”
Reuters: US Extends Comment Time on Power Plant Toxics Rule.”

There is little doubt that the pressure has been mounting against these proposed regulations. Although they say the extension of the public comment period will not affect the timing of the final rule, it is clear that the EPA is responding to the concerns of manufacturers and lawmakers regarding the ability to comply with these regulations — and the cost of them — not just in dollars, but also the human cost of the number of pink slips these regulations would generate.