BILL AIMS TO CUT POLLUTION, CREATE JOBS
May 13, 2010 – Today in Manufacturing.net
Two lawmakers unveiled bill that aims to curtail pollution blamed for global warming, reduce oil imports and create millions of energy-related jobs... continue
ENGINEERS TO EXAMINE AMERICAN MANUFACTURING'S FUTURE
May 13, 2010 – Today in Manufacturing.net
National Academy of Engineering is gathering at the University of Michigan to examine how to turn the tide in the shrinking American manufacturing sector... continue
FEDERAL LABOR BOARD CHANGES UNION ORGANIZING RULES
May 13, 2010 – NAM Capital BriefingThe National Mediation Board issued a final rule this week to overhaul the process in which union organizers can form labor unions under the Railway Labor Act. This rule, which impacts employees in the transportation sector, sets a dangerous precedent for other labor boards like the National Labor Relations Board. The NAM opposes these changes and laid out our formal concerns in comments filed with the agency earlier this year.
AON CONSULTING'S HEALTH CARE REFORM WEEKLY BRIEFING
May 13, 2010 – Aon ConsultingLast Week in Washington
Administration officials continue the monumental task of translating the health reform law into regulations and beginning the implementation process. The various agencies tasked with rule-making have released two sets of interim final regulations in the past week as detailed below.
Sebelius Sends Update to Congress on Health Reform Implementation
On May 11, Department of Health and Human Services (HHS) Secretary Kathleen Sebelius sent a letter to Congressional leaders outlining the Administration’s progress towards implementing the new health reform legislation.
Regulations on Dependent Coverage of Children to Age 26
On May 10, the Department of Labor (DOL), Treasury, and HHS jointly issued interim final rules implementing the provisions of the Patient Protection and Affordable Care Act (PPACA) that extend dependent coverage under group health plans and individual policies to any adult child who has not attained age 26. These new requirements for coverage will go into place for plan years beginning on or after September 23, 2010, and do not take into account any factor other than age. The coverage will be available to the adult son or daughter but not to children or spouses of those adult children. The rule also states that until January 1, 2014, grandfathered health plans may exclude an adult child under age 26, if that child is eligible to enroll in an employer-sponsored health plan other than the parent’s health plan; regulations for grandfathered health plans are expected in the near future. The rule details transitional relief for instances in which a child under age 26 lost coverage due to age, or who was never offered coverage because of age under the terms of the plan or coverage. The transitional relief requires that a plan or coverage provide such a child written notice of enrollment opportunity and an enrollment period of at least 30 days; this enrollment period is to begin no later than the first day of the first plan year beginning on or after September 23, 2010.
The rule is to be published in the Federal Register on May 13, 2010, and will become effective July 12, 2010. Comments are due by August 11, 2010.
An official fact sheet and list of frequently asked questions has also been released.
Regulations on Early Retiree Reinsurance Program
On May 5, HHS released detailed interim final regulations pertaining to the Early Retiree Reinsurance Program (ERRP) established by the Patient Protection and Affordable Care Act. Key concepts include confirmation that the program is available to self-insured and fully-insured plans, all plan sponsors, and is expected to be up and running by June 1. In an interesting wrinkle, CMS does not anticipate annual applications, but only one application for the entirety of the program. The first plan year under consideration will be the plan year ending after June 1, 2010. Full plan year mathematics will be applied, but only claims incurred after June 1 will be contemplated for compensation. The program will reimburse 80% of certain claims between $15,000 and $90,000 for individuals in employer-sponsored early retirement health plans and their spouses, surviving spouses and dependents, provided that these individuals are between age 55 and 64 and not eligible for Medicare. These reimbursements will be made from a fund limited to $5 billion.
The rule was published in the Federal Register on May 5, 2010, and will become effective June 1, 2010. Comments are due by June 4, 2010.
Aon Consulting issued Alert soon after the release of the regulations last week.
In Case You Missed It:
List of Insurers on the Administration’s health reform site providing coverage for college graduates under age 26 in advance of the required date of September 23.
Aon Resources:
Aon Consulting’s Health Care Reform Website.
Benefit Plan Considerations for Employers: Please click here for Aon Consulting’s Alert on Health Care Reform – a comprehensive look at the most significant changes impacting employers.
HOUSE VOTES ON INNOVATION BILL
May 13, 2010 – NAM Capital BriefingOn Wednesday, the House took up legislation to reauthorize the America COMPETES Act (H.R. 5116), a bill that would strengthen innovation in the U.S. manufacturing sector and help build a stronger workforce through a number of key programs. Specifically, it would double federal funding for basic R&D; continue funding for the Advanced Research Projects Administration for Energy (ARPA-E); strengthen the Hollings Manufacturing Extension Partnership (MEP), which helps thousands of small and medium manufacturers increase their productivity and technological capabilities; and create science, technology, engineering and math (STEM) education grants that will help increase the number and quality of students receiving degrees in areas of importance to manufacturers. The NAM sent a Key Vote letter to all members of the House of Representatives in support of H.R. 5116. At press time, the bill was still being debated on the House floor.
Kerry-Lieberman Climate Change Legislation
After weeks of delay, Sens. John Kerry (D-MA) and Joseph Lieberman (I-CT) unveiled their bill, the American Power Act, at a press conference on May 12. Although plenty of legislative hurdles lie on the horizon, this legislation is a high priority and a key issue for many members of Congress.
The bill covers a broad cross-section of the nation’s energy issues, including expanding nuclear power, offshore oil and gas production and mandatory caps on greenhouse gas emissions. It aims to reduce carbon emissions by 17 percent by 2020 and by more than 80 percent by 2050. The first restrictions will target power plants, followed by heavy industry in 2016 and also transportation emissions. It also encourages the use of America’s natural gas. The legislation would also place limits on the Environmental Protection Agency’s (EPA) power to regulate greenhouse gases (GHGs) through the Clean Air Act.
The authors have submitted drafts of the bill to the EPA for economic modeling. This is a process by which the EPA reports how much the bill will reduce GHG emissions, impact renewable energy and cost consumers. Now that official legislative text has been made public, the agency will need to modify its projections in order for decision-makers to have a full understanding of the bill’s economic and environmental impact.
Senate Majority Leader Harry Reid (D-NV) has opened the door to moving ahead with the comprehensive climate change legislation this year, but to do so he and the sponsors will need to garner Republican support. Should that prove unattainable, Leader Reid has signaled support for the possibility of taking up a smaller, bipartisan energy package that includes a national renewable electricity mandate – that utilities must obtain 15 percent of their electricity from renewable sources by 2021. The smaller package, which the National Association of Manufacturers (NAM) supports in part, also would include energy efficiency measures, broader financial support for low-carbon energy projects and language to expand power transmission capacity. This is based on the American Clean Energy Leadership Act (S. 1462), which was approved by the Senate Energy and Natural Resources Committee last June.
A final decision on which path to take will probably not be made until after Congress returns from the Memorial Day recess. Sen. Reid has indicated his desire for closer consultations not only with Sens. Kerry and Lieberman, but also key committee chairmen on their options for scheduling and gaining bipartisan backing.
Throughout the process, the NAM has participated in stakeholder meetings to discuss the impact on manufacturers in the United States. Manufacturers believe America can and should work toward a reasonable, economically-viable solution on climate change issues. No other sector of the economy has made more investments in innovative solutions to advance renewable and alternative energy and GHG reduction technology.
However, we remain concerned that the legislation could impose additional burdens on manufacturers that will raise energy prices and ultimately hurt our global competitiveness.
Last summer, the NAM opposed the American Clean Energy and Security Act (H.R. 2454), which passed the House by a narrow margin. The bill, sponsored by Representatives Henry Waxman (D-CA) and Edward Markey (D-MA), does not promote global participation or encourage comparable global emissions reductions by U.S. trading partners and creates a multitude of conflicting regulations for manufacturers. An NAM and American Council for Capital Formation (ACCF) study released in August found that the Waxman-Markey bill could reduce economic growth by 2.4 percent and cost 2.4 million jobs by 2030.
The NAM appreciates the transparent and inclusive process Sens. Kerry and Lieberman pursued over the past few months in drafting this legislation. While we are encouraged by many of the provisions, we believe it is still a work in progress. The legislation still lacks key details on how programs will work and what impact they will have on the economy. We will actively work to make certain the concerns of manufacturers are addressed and that final legislation will help reduce energy prices, spur economic growth, create jobs and strengthen manufacturers’ ability to compete in the global marketplace.{Back to top}
MILLIONS OF JOBS COULD BE GONE FOR GOOD
May 13, 2010 – LateWire from Manufacturing.netJobs in the beleaguered manufacturing sector are among the millions of jobs lost during the Great Recession that may not return ... continue
MORE EPA REGULATIONS THREATEN SMALL AND MEDIUM MANUFACTURER
May 13, 2010 – NAM Capital BriefingThe Environmental Protection Agency (EPA) recently announced new environmental rules that could lead to additional burdensome regulations on the manufacturing sector and prove to be particularly detrimental to America’s small and medium manufacturers.
On May 4, the EPA released its long anticipated proposed rulemaking to address coal combustion residuals, otherwise known as coal ash. The action gives the EPA two options to consider: regulate coal ash under stringent “hazardous waste” requirements or use the less severe alternative of “solid waste” requirements. Manufacturers argue that the “hazardous waste” requirements would likely increase lawsuits, create uncertainty and place business at a competitive disadvantage. In addition, the number of facilities certified to handle hazardous waste is limited, and this option could impose costly transportation requirements to ship coal ash across the country to one of the certified facilities.
Unfortunately, this is not the only recent EPA regulatory proposal that impacts small and medium manufacturers. Just days prior to the coal ash announcement, the Agency proposed stricter standards on emissions from industrial boilers. Moreover, in the near future, the EPA is expected to issue its so-called “tailoring” rule to regulate greenhouse gas emissions from many manufacturing facilities.
The EPA’s regulatory agenda is aggressive and onerous, and the cumulative effect will be especially harmful to the small and medium manufacturers who lack the resources to bear the increased compliance costs and navigate the confusing web of new rules and restrictions. More regulation will only hinder manufacturers’ ability to resume hiring and compete effectively.
May 13, 2010 - NAM
The National Association of Manufacturers issued a press release stating they hope the US House will pass the America COMPETES Reauthorization Act of 2010 (H.R. 5116), noting its programs are "working to strengthen innovation in the US manufacturing sector and to build a stronger workforce." NAM’s VP Jay Timmons said in a letter to all House members, "Our economic future relies more than ever on our ability to innovate, and reauthorizing the COMPETES Act will help manufacturers prosper in a globally integrated and highly competitive marketplace."
NEW CLAIMS FOR JOBLESS BENEFITS EDGE DOWN
May 13, 2010 – Today in Manufacturing.net
Initial claims for unemployment insurance dropped for the fourth straight week, a sign the job market is improving at a slow but steady pace... continue
SENATE DEBATE CONTINUES ON FINANCIAL REGULATION
May 13, 2010 – NAM Capital BriefingThe Senate on May 10 began its third week of debate on S. 3217, the Restoring American Financial Stability Act of 2010. At press time, senators had voted on a fraction of the more than 200 amendments filed. By a vote of 39 to 59 on May 12, the Senate rejected a substitute derivatives title offered by Sens. Chambliss (R-GA) and Shelby (R-AL). In anticipation of the floor debate, the NAM sent a letter to the Senate indicating that a vote for the Chambliss-Shelby amendment may be considered for designation as a Key Manufacturing Vote. Democratic leadership aides say Senate Majority Leader Reid (D-NV) is eyeing a cloture filing May 13 or 14 and seeking to wrap up the bill next week. In addition to concerns about the new rules on derivatives, the NAM also is concerned about the definition of companies covered by the systemic risk regulator and new corporative governance requirements on proxy access and shareholder approval of executive compensation.
DON'T TRUST WHAT WASHINGTON'S SAYING ON OBAMACARE
CBO Finds that Health Law Costs $115 Billion More than Administration Claimed
May 13, 2010 - By Mark Eddington – Mainstreet Business Journal
WASHINGTON – U.S. Senator Orrin Hatch (R-Utah) issued the following statement today after the non-partisan Congressional Budget Office (CBO) found that the new health care law will cost $115 billion more than the Administration promised pushing its total cost over $1 trillion:
“The Administration has asked the American people to trust them. They said this health care bill would control sky-rocketing health care costs, but then Medicare’s own Actuary found that it would do just the opposite. The Administration promised it wouldn’t raise taxes on families earning under $250,000 a year, but then the Joint Committee on Taxation found that the health law would do just that.
The Administration, using every budget trick and gimmick in the book, said that the health law’s price tag wouldn’t go over $1 trillion, but then today CBO said it would cost $115 billion more pushing the total cost over $1 trillion. The lesson learned here is don’t trust what Washington’s saying on ObamaCare.”
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