The Environmental Protection Agency (EPA) today announced that it would retain the current secondary National Ambient Air Quality Standards (NAAQS) for nitrogen oxides (NOx) and sulfur oxides (SOx). Under the Clean Air Act, secondary standards are established to protect the environment from certain emissions where primary standards are established to protect human health. The EPA noted in its fact sheet on the final rule that the independent Clean Air Scientific Advisory Committee (CASAC) had recommended preserving the current standard based on its review of the available science.

NOx and SOx emissions come from a variety of natural and man-made sources including cars, trucks, buses, power plants, industrial facilities, waste incineration and agricultural sources. The fact sheet also stated that, “since 1980, levels of NOx and SOx in the air have fallen by more than 50 percent and more than 80 percent, respectively.” The resulting decrease has helped mitigate the impact of acid rain or acid deposition on the environment.

We are pleased that the EPA decided to maintain the current standards, but we urge caution as the Agency works to develop a new “multipollutant standard” for NOx and SOx that will also address acid rain deposition. Manufacturers have made great strides to reduce air emissions, and the last thing we need in this tough economy is another overly stringent standard that will do little to improve the environment.

The Senate Environment and Public Works Committee has not been very active on examining Environmental Protection Agency (EPA) regulations that impact manufacturers, but today the Committee’s Clean Air and Nuclear Safety Subcommittee held a hearing on the Agency’s recently-finalized Utility MACT rule.

This rule is of particular concern for manufacturers because it is expected to increase electricity costs and may jeopardize grid reliability as coal-fueled power plants are taken off-line. We’ve already begun to see plant closures resulting from this overreaching rule (see our post on the GenOn Energy plant closures).

Despite concerns from utility companies that more time is needed to comply with the rule, Gina McCarthy, EPA Assistant Administrator for the Office of Air and Radiation, stated that the three-year time frame (plus the possibility of an additional year from the state permitting authority) was sufficient. The NAM has been a strong supporter of increasing the compliance time frame, so coal-fueled power plants are able to install new emission control technology without compromising grid reliability. You can read our comments on the proposed rule here.

Rob James, a City Council member from Avon Lake, Ohio, noted that his community is already feeling the effects of this rule. Avon Lake will lose 80 jobs from the GenOn Energy plant closure, and the local economy will also feel the pinch from lost tax revenue and the increase in electricity prices.

We are pleased that this Senate panel is examining the economic impacts of this rule, but more needs to be done. We strongly urge Senators to support Sen. Inhofe’s (R-OK) Resolution of Disapproval (S. J. Res. 37) that would repeal the rule, sending the EPA back to the drawing board to develop a more achievable regulation (read out letter to the subcommittee here). We expect a vote on this resolution in June or July – yet another opportunity for the Senate to show its support for manufacturing jobs.

Environmental Protection Agency (EPA) regulations could sharply reduce drilling for natural gas and oil production, according to a new study from the American Petroleum Institute (API). The proposed New Source Performance Standards (NSPS) for oil and natural gas production will impact new hydraulically fractured gas wells and existing gas wells that are “re-fractured.”

According to the API press release, the study found that the proposed regulations would:

• Reduce drilling for natural gas using hydraulic fracturing by up to 52 percent;
• Reduce natural gas production by up to 11 percent; and,
• Reduce oil production by up to 37 percent.

These dramatic reductions in domestic production would result in the federal government losing up to $8.5 billion in royalties and state governments losing up to $2.3 billion in severance taxes.

There is no doubt that the shale gas boom has provided manufacturing operations with a reliable and affordable supply of energy. These proposed EPA regulations, however, threaten to slow fossil fuel production and potentially increase prices as manufacturers are trying to create jobs and boost the nation’s economy. The NAM urges the EPA to ensure these rules allow oil and natural gas producers the appropriate flexibility they need to comply with the regulations in a cost-effective manner.

Alicia Meads is director of energy and resources policy, National Association of Manufacturers.

Today we received more news of the negative impact of the Environmental Protection Agency’s Utility MACT rule. Due to this onerous rule GenOn Energy will be forced to shutter eight plants in Pennsylvania, Ohio, and New Jersey.

These closings will again result in the loss of jobs and have a negative impact on the local communities. Often we forget about the ripple effect of these regulations and how it can impact a small town and community. 

Pennsylvania State Rep. Camille “Bud” George is quoted on his concerns by Gant Daily’s story on the annoucement:

“Pragmatic energy policies should not guillotine coal from the nation’s energy grid,” George said. “Unfortunately, reasonable policies that would address valid health concerns while keeping coal and the Shawville plant in the long-term mix for energy viability were not pursued.”

Today’s announcement comes on top of other announcements we’ve seen in recent weeks. As we’ve said before if President Obama is serious about an “all of the above” approach to energy it should really include ALL options such as clean coal, shale and the Keystone XL pipeline.

Today we see more news of the devastating impact of the Environmental Protection Agency’s (EPA) overreaching Utility MACT regulations. FirstEnergy Corp. announced today that the company will be closing three power plants in West Virginia by September.

The closing of these plants will result in the loss of more than 100 jobs not to mention how it will impact the economies of the communities where the plants are located. We often forget about indirect impact of closings such as this which tends to ripple through the entire community.

Also, the reliability of our power grid is put at risk by the EPA’s regulations. Manufacturers are looking for certainty and regulations such as Utility MACT will only increase energy costs and cause them to at times wonder about the reliability of their power grid. Manufacturers consume one-third of our nation’s power and need access to all sources of energy.

An “All-of-the-Above” approach to energy should include everything including clean coal, manufacturers can’t afford increasing energy prices at a time when they are trying to recover, hire and create new jobs.

Today, the House Energy and Commerce Committee’s Subcommittee on Energy and Power held a hearing about the impact of the Environmental Protection Agency’s (EPA) Utility MACT regulation on electricity costs. The regulation, finalized in December 2011, requires the installation of emission control technologies by many coal-fired power plants over a relatively short time frame of three years.

The EPA estimates that the rule will have an annual cost of $9.6 billion, making it one of the most costly rules in the history of the agency. Manufacturers, as users of one-third of the energy consumed in this country, are extremely concerned that the regulation will increase electricity rates and also cause grid reliability issues.

One of the witnesses, Anne Smith of the National Economic Research Associates (NERA), argued that the EPA has made some “misleading public statements” about the health benefits of the rule in its Regulatory Impact Analysis (RIA). Her testimony states:

“A closer read of the RIA reveals that all the “saved lives” and virtually all of the $33 billion to $90 billion of estimated benefits EPA has attributed to the MATS [or MACT] Rule are for purported coincidental reductions of . . . fine particulate matter (PM_2.5) that is already regulated to safe levels separately under the [Clean Air Act].”

Thus, the EPA is “padding” its RIA with supposed health benefits that occur because of reductions in emissions not covered by the Utility MACT rule.

Her own economic analysis also indicates that the rule’s net impact to U.S. workers in 2015 will be a reduction in worker income that is the equivalent to approximately 200,000 full-time jobs.

Darren MacDonald, Director of Energy at Gerdau Long Steel North America, expressed concern that the regulations would increase electricity prices, hurt the company’s competitiveness and put jobs in jeopardy. He also noted that the Utility MACT regulation will place increased demand on the suppliers and installers of pollution control technology which could also drive up costs for manufacturers.

The NAM applauds the House of Representatives for passing legislation such as the TRAIN Act (H.R. 2401) which would delay implementation of the Utility MACT rule until an interagency economic study is completed. We urge similar action in the Senate.

Aicia Meads is director of resources and energy policy, National Association of Manufacturers.

As the Environmental Protection Agency (EPA) continues to move forward with its overreaching agenda the impact is beginning to be felt across the country. This week we’ve seen new reports in the news of jobs that will be lost as the result of facilities that will be forced to close because of new EPA regulations. These closing’s just don’t impact those who work at the plant, they impact the entire town.

A report from Williamsport, Maryland Herald-Mail yesterday tells the story of the impact the closing of the R. Paul Smith Power station will have on the entire community.

Williamsport resident Johnna Artz didn’t mince words Thursday about her opposition to the closing of the R. Paul Smith Power Station in town.

“This affects everybody,” she said. “It hurts the whole community with the number of jobs and revenue lost.” The plant, which went on line in 1927 and employs around 40 people, is being closed as a result of tougher emission regulations imposed by theU.S. Environmental Protection Agency.

Artz, 71, who has lived in Williamsport for 48 years, said that the plant closing will impact her family. She said the federal government could focus on other environmental issues instead of those that take away jobs.

And on the banks of Lake Erie FirstEnergy Corp facing the same regulations will be shuttering plants which will impact hundreds of employees and have a domino effect through the local communities. (continue reading…)

Today EPA air chief Gina McCarthy said that the final Boiler MACT regulations won’t be issued until May. The Boiler MACT regulations have been creating a great amount of uncertainty for manufacturers and will cost jobs. EPA released the revised proposed rules on Dec. 2 and just last week a judge removed the EPA’s stay on the original rules finalized in early 2011.

The Council of Industrial Boiler Owners estimates that the revised rules will put 232,078 jobs at risk and cost more than $14.5 billion in compliance costs. Manufacturers simply cannot afford this regulation to be piled on top of the already cumbersome regulatory burden they face.

The NAM has been urging the Senate to move forward with legislation to address the Boiler MACT rules and finally create some certainty. Business owners are eager to invest to grow and create jobs but regulations like Boiler MACT continue to be a bump in the road on the way to economic growth and jobs.

As much as EPA would like people to think they can resolve all the issues with this regulation they simple do not have that ability. Legislation under consideration by the House and Senate would provide EPA with the tools to make these regulations achievable and provide manufacturers with the time they need to comply.

At the end of 2011 it’s apparent that our economic recovery has been modest at best. A robust economy can be difficult to achieve under even the best circumstances, but it is made even more difficult when faced with a hostile environment for private enterprise. Manufacturers should be freed from unnecessarily burdensome regulations if they are to lead the economy. Efforts to foster economic growth and job creation have been stymied by an avalanche of overregulation from government agencies. A year-end review of the regulatory action taken by government agencies tells a sad story – one that manufacturers hope will reverse itself in the coming year.

This year alone we saw the National Labor Relations Board (NLRB), the Environmental Protection Agency (EPA), the Department of Transportation (DOT), and other agencies place more obstacles in the way of job creation and insert themselves further into the day to day decisions of manufacturers. Here are just a few examples:

2011 was a banner year for overreach for the NLRB, including the ambush elections rule, the decision in the Specialty Healthcare case, and the now-resolved complaint against the Boeing Company. These actions from the board have the potential to create disruptive and adversarial relationships between employers and employees - a result that simply isn’t conducive to growth. The NAM is currently suing the NLRB to prevent the implementation of the poster rule, a rule that has been delayed repeatedly after requests by the judge to allow time for a decision in the case. An NAM survey about the NLRB’s agenda revealed that nearly 70 percent of respondents said the NLRB’s actions will hurt job creation.

The EPA has put forth new rules and regulations that come with high price tags and puts hundreds of thousands of jobs at risk.  The costly and harmful Boiler MACT regulations checks in at $14.5 billion and threatens approximately 230,000 jobs. Sadly, it seems that the EPA may have outdone themselves with the Utility MACT rule – one of the most expensive regulations in EPA history –would have a draconian effect on power plants across the nation. According to the EPA’s own analysis, the Utility MACT regulation could cost more than $100 billion in the coming years and destroy an average of 183,000 jobs per year for the next decade.

The DOT pulled the rug out from under manufacturers that built their logistical operations based on the current trucking hours of service rule and have invested heavily in compliance since their implementation. Released just last week, the revised final rule will have a negative impact on manufacturers’ supply chains, distribution operations and productivity. To change these rules and limit the flexibility of manufacturers without sufficient reasoning is a mistake and will impede the ability of manufacturers to invest, grow and create jobs.

For manufacturers, a year living under the yoke of this overregulation is a year of living dangerously – hopefully Washington will come to its senses before it’s too late.

Early this evening the House passed H.R. 3630 by a vote of 234 to 193. The bill contains several provisions important to manufacturers.

The legislation will halt the EPA’s harmful Boiler MACT regulations in their current form. These burdensome regulations are causing uncessary uncertainty throughout the economy and impeding job growth.

Additionally, the bill moves the Keystone XL pipeline project closer to approval by requiring the Administration to approve the project within 60 days of enactment. The Keystone XL pipeline will create 118,000 much-needed jobs and get Americans back to work immediately.