Posts for February 22, 2010

Last week's eight economic reports were virtually a sea of green, with seven of the eight indicators increasing. The lone dissenting report, a rise in new unemployment claims for the week of February 13, was likely caused by a temporary event. (To see all of last week's indicators, see the Latest Economic Reports section below.)


Three of last week's reports involved the manufacturing sector. The Federal Reserve reported that factory production surged by a strong 1 percent in January. This was the fifth strong increase in the past seven months following 18 months of nearly constant declines (see red and green bars in chart above).


While the manufacturing sector is clearly at the beginning stages of recovery, it is important to note that major contributors to growth (inventory rebuilding and fiscal stimuli, such as bonus depreciation, Cash for Clunkers and the first time homebuyer tax credit) either have ended or will continue for only a few more months.


While the upturn in exports will likely prove durable, a solid recovery in the labor market, consumer spending and business investment will be needed for a self-sustaining expansion to emerge.


As the black line in the chart shows, after falling by 16.7 percent from December 2007 to June 2009, manufacturing production steadily increased through January 2010. Still, production remains 12 percent below its peak before the 2008-2009 recession began.


Meanwhile, regional manufacturing reports by both the New York and Philadelphia Federal Reserve Banks both forecast that the manufacturing recovery extended into February.

Dave Huether
Chief Economist
National Association of Manufacturers

WHITE HOUSE ISSUES DRAFT GUIDANCE ON CONSIDERING CLIMATE CHANGE IN NEPA DOCUMENTS

by Maranda Compton and Murray Feldman
February 22, 2010

Last week, the White House Council on Environmental Quality (“CEQ”) released new draft guidance to “modernize and reinvigorate” the National Environmental Policy Act (“NEPA”).1 In two memoranda, the CEQ outlined proposed changes for the preparation of NEPA analyses, including considering and evaluating greenhouse gas (“GHG”) emissions and climate change2 and increasing the evaluation and monitoring of mitigation measures.3

NEPA is our nation’s charter for the protection of the environment.4 NEPA’s twin goals are to foster informed decision-making and to promote informed public participation in government decisions affecting environmental quality. NEPA requires the preparation of an Environmental Impact Statement (“EIS”) for any major federal action significantly affecting the quality of the human environment.5 When the significance of the effects of a proposed agency action is uncertain, an agency may prepare an environmental assessment (“EA”) to determine whether an EIS is necessary. Completion of an EA results in the issuance of a Finding of No Significant Impact ("FONSI") or a decision to prepare and EIS. CEQ’s guidance suggest changes to what these NEPA documents must include to present adequate evaluation of the effect of a federal action on the human environment.

Consideration of GHG Emissions and Climate Change
The draft guidance outlines two ways in which federal agencies should consider climate change issues under NEPA. First, where a proposed federal action would be reasonably anticipated to emit GHGs into the atmosphere in quantities that the agency preparing the NEPA document finds may be “meaningful,” the agency should quantify and disclose its estimate of the expected annual direct and indirect GHG emissions. Specifically, where a proposed action is anticipated to cause direct emissions of 25,000 metric tons or more annually of CO2-equivalent GHG emissions, this indicates that a quantitative and qualitative assessment is required together with the consideration of mitigation measures and reasonable alternatives to reduce GHG emissions.
For those projects below 25,000 tons per year, long-term emissions should still be examined.6

click here to read the full article http://www.hollandhart.com/newsitem.cfm?ID=1615

IRAQ DOUBTS OPEC OUTPUT CHANGES

February 22, 2010 – Today in Manufacturing.net
Top oil official says prices are at satisfactory levels and does not expect OPEC to make changes to output during its meeting next month... continue at the following link http://www.manufacturing.net/article.aspx?id=242728&wnnvz=1750,01300040043

GETTING BACK LOST JOBS MAY TAKE YEARS

February 22, 2010 – Today in Manufacturing.net
Returning to prerecession employment levels and keeping up with working-age population growth will require the creation of 10 million or more jobs... continue at the following link http://www.manufacturing.net/article.aspx?id=242756&wnnvz=1750,01300040043

AON CONSULTING'S HEALTH CARE REFORM WEEKLY BRIEFING

February 22, 2010 – AON Consulting

Last Week in Washington
During last week’s President’s Day recess, debate continued to heat up over President Obama’s upcoming bipartisan "health summit" on Thursday, Feb. 25, that will be broadcast live on C-SPAN and potentially other networks. The President and Democratic leaders worked on negotiating differences between the Senate and House bills, while Republicans continued to criticize the meeting as political theatre and repeated demands to "start from scratch."

The President is expected to post online today a comprehensive health care proposal that bridges differences between Senate and House Democrats that he will discuss at the summit. The plan is expected to include an individual mandate, a ban on pre-existing conditions exclusions, and tax subsidies to make health insurance coverage affordable. A limited version of the Senate excise tax on high cost, employer-sponsored plans is also likely to be included despite recent opposition from labor leaders. The President’s proposal is reportedly being crafted in a manner such that it can be attached to a budget bill that can pass the Senate using the controversial reconciliation process unless Republicans offer acceptable changes at this week's summit. It is unclear, however, whether Democrats will be able to muster enough votes in the House and the Senate for the plan, which most House and Senate members have not yet seen.

Last Tuesday, 16 Democratic Senators sent a letter to Senate Majority Leader Harry Reid (D-NV) asking him to bring the public option back for a vote using the budget reconciliation process. On Friday, Reid announced that he would work with other Democrats and the White House to pass a public option through reconciliation if that is the legislative path the party chooses.

Finally, many states had held off on health reform efforts while waiting to see what the federal government would enact. However, since national health reform has stalled, lawmakers in states including Colorado, California and Virginia have recently developed their own reform bills. At least 26 states are considering health care regulations ranging from management of chronic disease to health care improvements, as well as insurance programs for children. It is unlikely that states will undertake comprehensive reform since most states are not in a position to do so financially.

What to look for this week:
Congress returns from the President’s Day recess today, and everyone will be tuned to Thursday's upcoming Health Care Summit where the future of comprehensive health reform will most likely be determined.

EYE ON SAFETY

February 22, 2010 - Greg Summerhays

Each year the American Optometric Association (AOA) dedicates the month of March to raising Americans’ awareness of the importance of regular eye care. When evaluating the eye care needs of your employees, take into consideration the following eye safety facts.

• Each day, about 2,000 U.S. workers sustain job-related eye injuries that require medical treatment, according to the U.S. Centers for Disease Control and Prevention’s (CDC) National Institute for Occupational Safety and Health (NIOSH).
  
• Approximately 60 percent of workers sustaining eye injuries were not wearing proper protective eyewear, according to the Bureau of Labor Statistics. "I didn't think I needed them" should never be the answer as to why safety glasses were not worn.
  
• An estimated 90 percent of eye injuries could be prevented through the use of proper protective eyewear on the job, according to the National Eye Institute.
  
• Under the Healthy People 2010 program, the nation’s official public health agenda, the U.S. Department of Health and Human Services hopes to cut workplace eye injuries by almost a third over the course of this decade.
  
• Industry standards now recognize two classes of industrial safety lenses: traditional basic impact lenses and high impact lenses, shown in ballistic tests to offer improved protection against flying particles. Basic impact protectors can only be worn in situations where known or presumed hazards are low impact in nature. High impact protectors (Z87+) provide protection to hazards of high velocity and/or high mass.
  
• Safety eyewear is now available in a variety of new styles and materials that make it more attractive and comfortable to wear.
  
• Occupational Safety and Health Administration (OSHA) standards require employers to ensure workers have suitable eye protection.
  
• To that end, OSHA requires employers to formally assess workplace eye hazards, select the appropriate type of eyewear to use, train and certify employees in eye protection, and plan for eye emergencies. (See the OSHA Eye and Face Protection eTool, a step-by-step guide to OSHA requirements, hazard assessment and safety eyewear selection at www.osha.gov/SLTC/etools/eyeandface/index.html)
  
• Workers who wear prescription glasses must also wear required eye protection.
  
• Protective eyewear must be properly fitted to be effective. Don't let lack of comfort be a barrier to full-time safety eyewear use.
  
• The American Optometric Association recommends that supervisory officials in the workplace, in schools, and at recreational events should mandate wear of eye protection in all activities in which a risk of eye injury exists.

Source: American Optometric Association

Greg Summerhays is Director of Public Relations at Workers Compensation Fund. WCF offers ongoing safety training and UMA members are eligible for a 5% premium discount through a partnership with WCF. Visit www.wcfgroup.com for more information.