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Ross Eisenberg

Oil Fee Proposal a Bad Deal for Manufacturers

By | Energy, Shopfloor Policy | No Comments

Today, the Obama administration announced the details of a request in its upcoming 2017 budget proposal for a $10 fee on every barrel of oil to fund what the administration describes as “a more sustainable transportation system.” The administration is calling it a fee, but let’s be clear about what this really is: a wealth transfer that will ultimately be paid for by manufacturers at their plants and consumers at the pump.

In today’s global economy, U.S. manufacturers must be assured of an adequate supply of competitively priced oil for industrial and commercial use and for transportation fuels. We are, therefore, very concerned with yet another new policy that increases prices—and particularly a fee of this size, which would increase the price of each barrel of oil by more than 30 percent at today’s prices.‎ The American Petroleum Institute estimates that the president’s fee would cost consumers as much as 25 cents per gallon of gasoline.

Manufacturers support improvements to our nation’s crumbling infrastructure and fought hard to get the $305 billion long-term highway reauthorization successfully signed into law this past December. But the president’s oil fee budget proposal would make manufacturers less competitive.

Energy bill, TSCA reform show momentum building for Congressional solutions on energy, environment

By | Energy, Policy Experts, Shopfloor Policy | No Comments

This week, the Senate is debating S. 2012, the Energy Policy Modernization Act, on the floor. The bill, introduced by Senate Energy Committee Chairman Lisa Murkowski (R-AK) and Ranking Member Maria Cantwell (D-WA) and passed by the committee on a decisive 18-4 vote, is expected gain broad support from both sides of the aisle. There is a lot to like in the bill, including a wide range of measures on energy efficiency and improvements to the licensing process for liquefied natural gas (LNG) exports. The debate on S. 2012 comes on the heels of successful passage of legislation to reform the Toxic Substances Control Act (TSCA) by the Senate at the end of 2015. (The House passed a similar TSCA reform bill earlier in the year by a 398-1 vote, and the two bills await a conference.)

For years Washington earned a well-deserved reputation for gridlock and an inability to solve problems. But these two bills, much like the recent successes on tax, infrastructure and trade, are a sign that the gridlock may be starting to ease. And if that’s the case, there are no shortage of energy and environmental issues that manufacturers would like some real, bipartisan solutions on. We talk about a lot of these in the our Competing to Win platform document, unveiled today by NAM President and CEO Jay Timmons as he kicked off this year’s State of Manufacturing Tour. Read More

Interior Reviews Coal Lease Program Leaving Manufacturers in Dust

By | Energy, General, Shopfloor Main, Shopfloor Policy | No Comments

Friday, the Department of Interior announced it would develop new guidelines for development of coal resources on federal lands. Included in the announcement was a moratorium on new leases of coal on these federal lands until a new environmental impact study is completed. These studies take years, and Secretary Sally Jewell said the moratorium on new leases will be in place until the study is complete.

“Manufacturers need reliable energy sources and a robust energy mix, and this new plan from the president erodes our energy future. As the leading industry in cutting climate-related emissions, we understand and face the challenge, but manufacturers need to remain competitive in today’s global economy. The American energy boom has been beneficial to manufacturers, but this action by the administration will diminish that advantage.” – Ross Eisenberg, vice president of energy and resources policy, National Association of Manufacturers

As users of one-third of the nation’s energy, manufacturers need a robust energy strategy that looks at all forms of energy, conventional and unconventional, to ensure an affordable and reliable supply. A key to our increasing global competitiveness, in addition to continuing growth in productivity, is reliable and affordable energy. Coal still provides nearly 40 percent of our electricity and gives manufacturers an advantage in a local economy. Also concerning in this announcement is the failure to examine the costs to manufacturing and the millions of supply-chain jobs directly and indirectly impacted by such a sweeping action. Read More

Obama Denies Keystone XL Pipeline, Choosing Politics Over Policy

By | Energy, Shopfloor Main, Shopfloor Policy | No Comments

Screen Shot 2015-11-12 at 1.31.44 PMLast Friday, President Obama announced his decision to deny TransCanada Corporation its permit to construct the Keystone XL pipeline.

Not only did the President disappoint manufacturers across the country, but he also made a historic mistake. After seven years of waiting for a decision on this permit application, this decision is a clear signal that the United States isn’t open for business for everyone. It also undermines the existing permitting process—one that is supposed to set clear rules of the road for companies to meet to secure approval. The Administration continually raised the bar for approval of Keystone XL, and every time TransCanada met (or exceeded) it, the Administration raised it again. Read More

Clean Power Plan Poses Great Challenges for Manufacturers

By | Energy, Shopfloor Policy | No Comments

Manufacturers have long demonstrated their commitment to environmental sustainability and reducing greenhouse gas (GHG) emissions. Since 2005, manufacturers’ annual GHG emissions have fallen by more than 10 percent while our value added to the economy has increased by 26 percent. We are producing more, while emitting less. In addition, manufacturers’ technological innovations and ingenuity have been integral in U.S. annual emissions falling by 700 million tons since 2005, which is a reduction greater than any other nation in the world.
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Arctic Lease Cancellation a Cruel Blow to Innovation

By | Energy, Shopfloor Policy | No Comments

Late Friday afternoon, a time particularly convenient for the announcement of unpopular decisions, the Department of the Interior announced it would cancel oil and gas lease sales in the Arctic and not renew existing leases to Shell or Statoil. The move effectively closes the door to oil and gas exploration in these resource-rich areas.

The immediate sting comes from broken promises, as the Administration has done a full 180 on its prior commitment to develop oil and gas on American soil. But the longer-term pain may come from the stifling impact these new barriers will have on innovation.

The Administration made development of Shell’s existing lease as difficult as humanly possible, and Shell stepped up and was able to drill its wells while keeping the environment safe. The new technologies, processes and techniques developed during the Arctic exploration will be used ‎throughout Shell’s operations around the world to make those wells safer.

That’s how innovation happens: you have to do it and learn from it. Yet, today, it became clear that the Administration would prefer oil and gas exploration not be done at all. It’s become an all-too-familiar theme across energy-producing sectors. And it’s the wrong decision every time.

Friday’s announcement spells danger for development promised by the President off the Atlantic coast and for the 2017-22 leasing plan. It could signal trouble for energy export terminals and that still-yet-to-be-approved pipeline from Canada to the United States you may have heard about once or twice.

Manufacturers hope this Administration or a future one wi‎ll come to see the error made today and reverse course. And we continue to call on this Administration to remove barriers to the development of energy, instead of erecting new ones.

If National Parks Can’t Comply with New Ozone Rules, How Can Your Community?

By | Energy, General | No Comments

Today, the National Association of Manufacturers launched a TV advertising campaign highlighting the costly and unworkable ozone mandates coming out of Washington, D.C.

Not even the nation’s pristine wilderness areas can comply, according to a TV spot hitting the airwaves today in the nation’s capital. Ask yourself: If iconic national parks like Yosemite, Grand Canyon and Zion are found in violation of federal ozone standards, what does that mean for cities and towns where people actually live and work?

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Senate Energy Package Advances LNG Exports, Energy Efficiency and Other Manufacturing Priorities

By | Energy | No Comments

In a town where cooperation is often hard to come by, the Senate Energy and Natural Resources Committee has long been a place for where bipartisanship has thrived. Regardless of the party holding the gavel, members were always willing to put politics aside and work together to tackle the challenges and embrace the opportunities provided by our complex, ever-changing energy policy.

This week is no different. Today, the committee will hold a markup of the Energy Policy Modernization Act, a bipartisan measure introduced by Chairman Lisa Murkowski (R-AK) and Ranking Member Maria Cantwell (D-WA). The 357-page bill addresses a wide range of issues designed to promote an “all of the above” approach to energy. Read More

House Testimony, Manufacturing Caucus Bookend Busy Week on Ozone

By | Energy | No Comments

Despite the fact that it’s widely expected to be among the most costly regulations in our nation’s history – if not the most costly – the EPA’s proposal to tighten ozone standards has managed to stay somewhat below the radar in recent months.

For the manufacturers that make up our membership, this is a big problem, because the administration’s proposal threatens to badly undermine the circumstances that have helped to spur our nation’s manufacturing comeback. The impacts would be no less profound for the public at large, which would face higher energy prices, the prospect of millions of lost jobs, and well over a hundred billion dollars each year in costs. Given the stakes, we are eager to raise the profile of this critical issue. This week, we hit Capitol Hill alongside hundreds of our members to help make sure that lawmakers are listening to their constituents, and that they recognize the danger that this new rule represents.

On Wednesday, NAM and several of its member companies participated in a briefing for the House Manufacturing Caucus aimed at illustrating for lawmakers the concerns harbored by businesses large and small about the new ozone standard. In that meeting, we heard from NAM members and policy experts, who told members, staff and stakeholders more about the struggles that ozone nonattainment will mean for their communities.

Also on Wednesday, the Senate Environment and Public Works Committee heard from local regulators, air quality managers, and more regarding the EPA’s proposal.

And finally, on Thursday, I testified before the House Committee on Science, Space, and Technology regarding the impact of EPA regulatory overreach on American competitiveness. In my testimony, I pointed to the drain that burdensome environmental regulations are causing for American businesses especially manufacturers.

“Why does this proposed ozone regulation matter? Because nonattainment is a significant barrier to growth. Nonattainment is a significant deterrent to manufacturers to build or expand in an area because the permits are so difficult to obtain compared to those in an attainment area. Companies building or expanding facilities in nonattainment areas are required to install specific technologies regardless of cost, and projects cannot move forward unless ozone is reduced from other sources.

These “offsets” are neither cheap nor easy to obtain. Currently, offset prices in the Houston-Galveston-Brazoria nonattainment area are close to $175,000 per ton of NOx and $275,000 per ton of VOC. Offset prices in southern California nonattainment areas are approaching $125,000 per ton of NOx. Rural areas, which could become new nonattainment areas under a tighter standard, may lack offsets altogether, making the offset requirement a total barrier to new projects.

“Even manufacturers not looking to expand will be subject to restrictive new regulations in nonattainment areas. For instance, in the Houston nonattainment area, existing facilities are subject to additional controls under the Highly Reactive VOC (HRVOC) rule, and combustion units, such as boilers and ethylene crackers, must install SCRs and low-NOx burners. In the most severe cases, states with nonattainment areas could lose federal highway and transit funding.”

The surge of attention paid to this issue over the course of the last few days is encouraging. It means that leaders and newsmakers inside the Beltway are picking up on the chorus of concern growing at the state and local level, not just from our members and others the business community, but from local regulators, mayors, and countless others that are staring down the barrel of this rule.

But despite a productive week, we have a long way to go. We’re less than four months out from the issuance of the costliest rule in the history of the United States – a regulation that threatens to stop the manufacturing comeback in its tracks. We – along with our members and countless other stakeholders concerned by this rule – will continue our work to highlight the importance a stable regulatory environment to our nation’s economic outlook.

The stakes, after all, have never been higher.

Rep. Scalise, Sen. Capito introduce Legislation to Improve Air Permitting

By | Energy | No Comments

Last week, Rep. Steve Scalise (R-LA) and Sen. Shelley Moore Capito (R-WV) introduced H.R. 2557/S. 1425, the “Promoting New Manufacturing Act,” in the House and Senate. The NAM has been a longtime supporter of this bill, on which we testified and supported with a Key Vote Letter in the 113th Congress.

The Promoting New Manufacturing Act would make a series of relatively simple enhancements to the air permitting process to enable manufacturers to get their permits quicker while allowing the EPA to continue to protect the environment. It would create a permitting dashboard, requiring EPA to publish information on the regarding the estimated number of permits issued annually and timelines for making final permit decisions; it would require that if the EPA Administrator establishes or revises a national ambient air quality standard (NAAQS), the agency publish implementing regulations and guidance at the same time, including information regarding the submittal and consideration of preconstruction permit applications; and it would require EPA to report annually to Congress on actions being undertaken by the agency to expedite the processing of permit applications. Read More