Quick Manufacturing News
NLRB's proposed regulations would shorten election campaigns and hurt employers, critics say. Click to continue
CONTINUED, STEADY BUSINESS AND EMPLOYMENT GROWTH EXPECTED FOR THIRD QUARTER
Quick Manufacturing News
CFOs are confident business growth will continue to improve in the third quarter. According to a recent survey, 43% of respondents said they were very confident and 47% said they were somewhat confident about hiring. Click to continue
CHINA'S MANUFACTURING AT 11-MONTH LOW
Quick Manufacturing News
Demand is cooling due to effect of tightening measures and the slackness in external markets. Click to continue
UNEMPLOYMENT APPLICATIONS HIGHLIGHT WEAK JOB MARKET
Today in Manufacturing
Number of Americans who applied for unemployment benefits last week rose by the most in a month, signaling growing weakness in the job market ... continue
SUPREME COURT'S DISMISSAL OF 'PUBLIC NUISANCE' GREENHOUSE GAS CASE LEAVES DOOR PARTIALLY OPEN
Glen Boshart – From UAE Weekly Energy Brief
In a unanimous decision, the U.S. Supreme Court has ruled that the Clean Air Act and actions by the U.S. Environmental Protection Agency "displace" the rights of citizens to use federal common law to force power plants fired by fossil fuel to lower their emissions of carbon dioxide.
The court therefore remanded a lower court's decision that essentially would have allowed district court judges to regulate greenhouse gas emissions absent federal regulations that do so.
The court's ruling was not a complete victory for the utilities that were sued, however, because the court remanded the question of whether they could still be forced to reduce their emissions under state nuisance law. The court also stressed that if the EPA should ultimately decide not to regulate greenhouse gas emissions, then state interests could seek court review of that decision. Moreover, under the current decision, if Congress were to amend the Clean Air Act so that it does not cover greenhouse gases, state interests could argue that no displacement has occurred. American Electric Power et al. v. Connecticut et al. (10-174)
DEAL WOULD SPEED CUTS IN WEST'S COAL POLLUTION
Matthew Brown – Associated Press - From UAE Energy Brief
BILLINGS, Mont. — Aging coal-fired power plants across the West could be forced to install costly pollution control equipment under an agreement between federal regulators and environmentalists aimed at jump-starting a delayed clean air initiative.
Many utilities have already cut air pollution emissions sharply over the last decade to meet federal health standards. Next up are even deeper cuts, to improve visibility in 156 national parks and wilderness areas by clearing the air of pollutants that cause haze.
The reductions are required under the Clean Air Act. First announced more than a decade ago, they have yet to be widely enacted.
Now, a deal reached between the Environmental Protection Agency and three groups would require the agency to adopt plans by 2012 to reduce haze-causing pollution from plants in Colorado, Montana, North Dakota and Wyoming. The agreement is subject to approval from a federal judge in Colorado following a 30-day comment period that ends July 15.
An even broader agreement is in the works that would set deadlines for haze pollution plans in dozens more states and U.S. territories, according to agency officials and environmentalists.
Putting the plans into action nationwide could cost up to $1.5 billion a year, according to the EPA. Spin-off benefits from reduced health care spending on pollution-related illnesses were estimated at $8.4 billion or more annually.
"We're getting the low-hanging fruit and we expect huge reductions from that effort," said Gail Fallon, an EPA haze program manager based in Denver. "It doesn't mean we have to shut all these plants down. But if it's determined that a man-made source of pollution continues to cause visibility problems, it needs to be addressed."
It remains unresolved how utilities will meet the new mandates. Already some states and utilities are pushing back, saying the haze rule could prove too costly and a five-year timeline for compliance is too short.
Haze is caused by sunlight hitting small particles of pollution, scattering light rays and making it harder to see over distances.
In the Western U.S., haze is blamed for reducing visibility by half versus natural conditions, a maximum of 60 to 90 miles. In most of the U.S. the phenomenon is even more acute, with visibility reduced to just 15 to 30 miles.
To change that, officials have identified 18 coal plants in the four states named in the court agreement that would have to be retired, retrofitted with new pollution reduction equipment or otherwise reduce emissions. Nationwide, more than 300 old coal plants could face required upgrades if the broader agreement is finalized, said Stephanie Kodish, an attorney with the National Parks Conservation Association.
Those plants were largely exempt from other air pollution initiatives aimed at newly constructed industrial plants. The thinking when those exemptions were granted was the problem would take of itself as older plants were retired, said Pat Cummins with the Western Regional Air Partnership, established in 1997 to support state and tribal efforts to address haze pollution.
However, many of the old plants have continued to operate, in part because less pollution control equipment makes them cheaper than new plants
EPA's haze rules were adopted in 1999 in part to reduce emissions of sulfur dioxide and nitrogen oxides — byproducts of burning coal that react with the atmosphere to form the particles that cause haze.
The first phase of the program was aimed at plants built between 1962 and 1977 that churn out at least 250 tons of pollutants annually. The goal was to eliminate haze in parks and wilderness areas by 2064.
Combined, the 18 western coal plants emit more than 200,000 tons of sulfur dioxide and 150,000 tons of nitrogen oxides a year, according to WildEarth Guardians, a plaintiff in the Colorado case along with the Environmental Defense Fund and National Parks Conservation Association. Several cement and soda ash plants also would have to make changes.
"This is the biggest rule affecting coal-fired power plants to be adopted in the West perhaps since the Clean Air Act Amendments in 1990," said Jeremy Nichols with WildEarth Guardians. "We were literally losing some of our most scenic vistas in the West."
David Eskelen with Pacificorps, which operates four coal plants in Wyoming that fall under the haze rule, said his company has spent $1.2 billion on air quality controls since 2005. But he said it would take 12 years, not five, to meet the haze requirements.
"We are making excellent progress," Eskelsen said. "If there is a more aggressive reduction schedule, policy makers need to understand this is going to result in significant cost increases to electricity."
Oklahoma Attorney General Scott Pruitt sued the EPA over the issue in May, citing costs of up to $2.5 billion to install "scrubbers" that would reduce pollution from the state's coal plants. Pruitt said that could drive up utility rates by as much as 20 percent.
"There's a requirement to retrofit those plants. That's clear. But it's essentially a case by case basis," Cummins said.
In addition to environmental benefits, limits to pollution reduction technologies and economic impacts also are factored in to retrofit decisions, Cummins said.
Of 53 states and U.S. territories required to submit haze reduction plans, at least 43 have done so, according to the EPA. But despite a 2007 deadline, no plans have been fully adopted.
Under other provisions of the Clean Air Act, sulfur dioxide pollution from power plants in 11 western states was reduced 60 percent between 1998 and 2010, Cummins said. Nitrogen oxide emissions were reduced 40 percent.
By targeting older plants under the haze rules, Cummins said the regional partnership expects eventual further reductions of roughly 40 percent each for the two pollutants.
BUDGET REMEDIES COULD PREVENT CLIMATE PLANS FOR MORE THAN A DECADE
By Evan Lehmann - Climatewire
Spending caps proposed by Republicans would make it "virtually impossible" to enact climate legislation for a decade or longer, according to an analysis released yesterday.
Automatically triggering widespread funding cuts if federal spending exceeds a percentage of the gross domestic product is a popular theme in Congress and in presidential campaigns. But the plan would rule out a carbon tax, cap and trade, and other programs that raise -- and spend -- money by limiting greenhouse gas emissions, says the Center for Budget and Policy Priorities.
"The cap that these proposals would establish very likely would make it impossible to enact any market-based strategy to reduce the carbon pollution that drives global warming," the center says in a new report (pdf).
Many Republicans hail the idea as a good way to enforce bipartisan agreement around spending cuts. But technicalities in the way that spending is scored by the Congressional Budget Office would trigger automatic defunding even if a climate program offsets its spending with emission revenue, the center says.
Here's why: Climate plans raise lots of money through auctioning allowances or taxing each ton of carbon. But they also spend that money. It might go to consumers to soften energy prices, or to companies adjusting to the program, or to researching renewable energy.
Those outlays -- in the billions -- would exceed the strict caps proposed in Congress, even though they're not adding to the deficit.
"Lawmakers would have to include very large budget cuts (likely hundreds of billions of dollars of cuts) in the same legislation in order to keep total federal spending within the spending cap," the report says.
"And these hundreds of billions of dollars of new budget cuts would come on top of the trillions of dollars in budget cuts in Medicare, Medicaid, numerous other programs, and possibly Social Security that already would be needed to shrink federal expenditures enough to fit within the global spending cap," it adds.
Dems want deficit caps
A spending cap has become a popular notion among some Republicans and a handful of Democrats as a conditional factor for their support to expand the national debt limit above $14.3 trillion. Several bills have been introduced, with varying levels of strictness on future outlays.
Sens. Bob Corker (R-Tenn.) and Claire McCaskill (D-Mo.) co-sponsored the "CAP Act," requiring mandatory cuts to federal agencies if spending exceeds 20.6 percent of gross domestic product by 2021. Spending is currently about 24.7 percent of GDP.
Rep. Jack Kingston (R-Ga.) wants a tougher cap; he set his at 18 percent of GDP. And Republican presidential candidates former Govs. Mitt Romney of Massachusetts and Tim Pawlenty of Minnesota have offered them, too.
It's unclear how negotiations on the debt limit will land, as a group of bipartisan lawmakers continues to meet with Vice President Joe Biden before the Aug. 2 deadline. Democrats, however, are looking at the other side of the coin: They're pushing for deficit limits that, if exceeded, could trigger higher taxes.
That scenario seems to allow for climate legislation that both collects money from carbon emitters and then spends it to ease energy costs on consumers or research new power sources.
"You don't run into this problem, because climate legislation in the past has been deficit-neutral," said Chad Stone, chief economist with the Center of Budget and Policy Priorities.
PACIFICORP ENDS LAWSUIT AGAINST ARCH OVER UTAH COAL
Barry Cassell – From UAE Weekly Energy Brief
Due to a settlement agreement worked out June 15, PacifiCorp on June 16 notified a federal court that it has ended its November 2010 lawsuit against Arch Coal Inc. in a dispute over Utah coal supply.
The June 16 filing by PacifiCorp at the U.S. District Court for the District of Utah, Central Division, asked for the lawsuit to be dismissed "without prejudice," which leaves the door open for the complaint to be filed again. In the brief filing, PacifiCorp did not offer any details on what the settlement entailed.
Arch Coal and its Canyon Fuel Co. LLC and Arch Coal Sales Co. Inc. subsidiaries never responded to the lawsuit, with the two sides winning several delays as they worked out a settlement.
The lawsuit stated that PacifiCorp and Arch in 2010 had been unable to agree on a five-year extension of a contract that began in 2000. The base contract term ran through the end of 2010, with PacifiCorp holding two five-year renewal options for the 2011-2015 and 2016-2020 periods. The contract calls for Arch to deliver 2 million to 4.5 million tons of coal per year, primarily out of Canyon Fuel's Sufco longwall mine in Utah. The coal mostly goes to the Hunter power plant in Utah, though coal can move to other PacifiCorp power plants at PacifiCorp's discretion.
PacifiCorp said in the lawsuit that the sides had been unable to agree on the pricing, quantity and quality of coal to be delivered in 2011-2015. For one thing, PacifiCorp said it had been told by Arch that the coal company cannot provide the same quality of coal as it does under the current contract during the first or second extension periods.
RMP URGES WYOMING TO BUILD NUCLEAR
UAE Weekly Energy Brief
Rocky Mountain Power President Rich Walje is urging Wyoming lawmakers to make decisions that would encourage the development of nuclear power projects in the state, the Casper (Wyo.) Star-Tribune reported.
Walje told the state Legislature's Task Force on Nuclear Energy Production that Wyoming needs to find good locations for nuclear power plants, cooperate with nearby states and make its regulations more friendly for development. The task force consists of state lawmakers and people commissioned by the Legislature to study the future of nuclear energy in Wyoming, the newspaper reported.
Rocky Mountain Power has considered sites in Wyoming and other states for a nuclear energy facility and has considered buying existing reactors in other states. "As a company, we actually believe nuclear has a role in our present and future," Walje said.
UTAH #1 (AGAIN) FOR ECONOMIC OUTLOOK AND OTHER GOOD NEWS
Economic Review - EDCUtah
Utah's economy continues to strengthen and is picking up accolades in the process. On Wednesday, the American Legislative Exchange Council released its fourth annual Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index, which ranks Utah #1 for the fourth year in a row with the "best economic outlook in the nation". Written by supply-side economists Arthur Laffer, Stephen Moore and Jonathan Williams, the report attributes Utah's #1 economic outlook to its economic policies and notes the strong correlation between a state's economic performance and its policies toward taxes, debt, and regulation.
Utah leads all other states in the index for:
Gross State Product Growth 62.2%
Personal Income Growth 59.8%
Personal Income Per Capita Growth 35.2%
Population Growth 24.1%
Utah Tech Sector
On Tuesday, EDCUtah released a project memorandum to its investors announcing that IM Flash and EMC Corp. will expand their respective Utah operations, adding 700 new, high paying jobs to the Utah economy. The new jobs not only bode well for Utah's electronics and IT sectors, but also for the state's rising exports. "Last year, electronics accounted for nearly $2 billion -- mostly from IM Flash -- of Utah's $13.6 billion in exports," according to EE Times. Here are some more interesting figures about Utah's tech sector from the Utah Technology Council:
- Utah is home to approximately 6,000 technology companies: 53.9 percent are in Salt Lake County; 20.3 percent are in Utah County; 8 percent are in Davis County. Interestingly, Washington County owns the greatest increase in technology companies, recording an increase of 10 percent in 2010.
- Utah's tech industries employ more than 76,000 Utahns with an average salary that is 62 percent higher than the average non agricultural wage.
- In 2010 Utah exported more than $1.8B in computer and electronic parts and more than $564M in medical device products.
- Utah is 27.2 percent higher than the national average in technology organizations per capita, based upon data compiled from the 2008-2009 Workforce Data Report.
- Utah is 20.9 percent above national average for tech employment per capita, as compared with other western states and with the U.S. overall.
- In 2009, Utah's technology firms produced more than $4.5B in wages for the state; Information Technology (IT) accounted for more than $3B in Utah wages with $1.5B in Life Sciences wages.
Enterprising States
In another important event this week, the U.S. Chamber of Commerce on Monday released its Enterprising States study, which places Utah among the top ten states in four of six categories. "Some states, like Texas and Utah, are strong across the board in both economic policies -- and economic results," the study said. The Beehive State ranked second in exports, third overall for entrepreneurship and innovation, seventh in workforce and training, and 10th in favorable taxes and regulation. Here is the U.S. Chamber's take on Utah in each category, as reported by the Salt Lake Chamber:
Utah ranks 2nd in Exports
Utah continues to be a leader in export measures, with exports up 45 percent since 2009. (Editor's note: The Bureau of Economic and Business Research (BEBR) at the University of Utah released a new study this week that says Utah exports sustain 75,721 full and part-time jobs -- an increase of more than 20,000 jobs since 2007. Further, Utah exported $13.6 billion in merchandise in 2010 -- a 31 percent increase over 2009's record -- and the state is on pace to do even better this year. The BEBR study was written by research analyst John C. Downen.)
Utah ranks 3rd in Entrepreneurship and Innovation
Utah's top ranking in net business birth rate helps it move up five places to third in innovation and entrepreneurship this year. The state ranks no worse than 18th in any metric and is sixth in small business lending activity, ninth in STEM job concentration and ninth in high-tech business concentration. Utah is making investments in research commercialization infrastructure with its Utah Science, Technology and Research Initiative and offers an outreach and business assistance program for technology companies.
Utah is tied for 7th for Workforce and Training
Utah ranks in the top 10 in higher education productivity and affordability, and 25th in educational attainment of its young workforce. In order to help drive innovation and attract high-tech firms to the state, Governor Gary Herbert's administration has set a goal to expand the number of citizens with degrees and professional certifications to 66 percent of adults by 2020. The governor has also called for an increased focus on science, engineering, and math careers in the state's educational system.
Utah ranks 10th in Taxes and Regulation
Utah ranks in the top 17 in four of our five tax and regulation measures, landing it in 10th place. The Beehive State recently launched an advisory committee to optimize its state government. Comprised of public and private sector experts, the committee made over 50 recommendations, including calling for review of regulatory processes that impact businesses in the state. Greater coordination between regulatory agencies was identified as a way to maintain a business-friendly environment and avoid harmful duplication of services and unneeded red-tape.
"Clearly, Utah is being recognized for its solid financial footing, business-friendly environment, fantastic workforce and excellent quality of life. That's not to say our economy is firing on all cylinders," says EDCUtah President & CEO Jeff Edwards, "but we are making great progress and seeing positive results."
HOUSE PASSES BILL TO CUT BUREAUCRATIC DELAYS IN OFFSHORE DRILLING
NAM Capital Briefing
On Wednesday, June 22, the House voted 253-166 to pass the Jobs and Energy Permitting Act of 2011 (H.R. 2021), introduced by Rep. Cory Gardner (R-CO). A Senate companion bill was introduced by Sens. Lisa Murkowski (R-AK) and Mark Begich (D-AK). The bill provides three technical changes to the Clean Air Act’s permitting rules, including prohibiting the Environmental Appeals Board (EAB) from reviewing permits. Congressional supporters of the bill noted how a company’s drilling operations in the Beaufort and Chukchi Seas were delayed due to the company’s struggle to obtain the proper air quality permit. The drilling plans were approved by the Environmental Protection Agency (EPA) but have been held up by EAB. These resources, if developed, could produce up to 1 million barrels of oil per day of domestic energy. In addition, more than 54,000 jobs could be created and sustained with offshore production in Alaska. H.R. 2021 aims to cut through some of the bureaucracy that has been holding up offshore drilling. Click here to read the NAM’s key vote letter and click here to see the NAM’s ad in Roll Call in support of the legislation.
CONGRESS ADDRESSES COAL ASH REGULATIONS
NAM Capital Briefing
The House Subcommittee on Environment and the Economy marked up a bill that would stop the Environmental Protection Agency (EPA) from classifying coal ash as a hazardous waste, which would impose new costs on manufacturers and hamper job creation. The Coal Residuals Reuse and Management Act would amend Subtitle D of the Solid Waste Disposal Act to maintain the classification of coal ash as a non-hazardous waste. Coal ash is a byproduct of coal combustion used in the manufacture of several different products. The NAM has been active in fighting this proposal and has requested an extension of the initial comment period and submitted comments about the proposed rule.
REPRESENTATIVES SEND STRONG MESSAGE TO EPA ON OZONE RECONSIDERATION
NAM Capital Briefing
On Wednesday, June 22, 91 Representatives sent a bipartisan letter to EPA Administrator Lisa Jackson urging her to abandon efforts to reconsider the 2008 ozone National Ambient Air Quality Standards (NAAQS). Reps. John Sullivan (R-OK) and Mike Ross (D-AR) led the effort. The NAM has aggressively opposed the EPA’s actions on ozone because a more stringent standard will mean additional job losses at a time when manufacturers need to be leading the way in our economic recovery. Despite continued pressure from industry and the general public, the EPA plans to finalize the standards by the end of July.
NAM CONTINUES LITIGATION AGAINST GHG REGULATION WITH TAILORING RULE BRIEF
NAM Capital Briefing
On Monday, June 20, the NAM and several other industry associations filed the fourth major legal brief challenging the EPA’s regulation of greenhouse gas (GHG) emissions. This brief specifically challenges the “tailoring rule”, which outlines how GHG emissions will be addressed under the EPA’s two main permitting programs for stationary sources. The NAM argues, in part, that the EPA’s tailoring rule essentially rewrote parts of the Clean Air Act by changing clear, congressionally established numerical thresholds for pollutants that are subject to regulation. The brief reiterates that the Clean Air Act was never meant to regulate GHGs. As a result, the rules should be vacated and remanded.
EPA REACTS TO CONCERNS FROM CONGRESS AND MANUFACTURERS ON UTILITY MACT PROPOSAL
NAM Capital Briefing
On Tuesday, June 21, the EPA announced a 30-day extension of the public comment period on its proposed mercury and air toxics standards rule, known more commonly as Utility MACT. The EPA faced pressure from both industry and Congress to extend the comment period on the rule, which could cost billions of dollars and increase electricity costs. Congressional concerns about the insufficient comment period arose from a bipartisan group in the House and Senate, including Rep. John Dingell (D-MI) and Sen. John Barrasso (R-WY). Utility MACT is yet another example of the EPA’s agenda of overregulation, and the NAM supports the extension of the comment period as a chance for the public to voice their concerns with the rule. Despite the extension, EPA Administrator Lisa Jackson has reiterated the agency’s plans to have a final rule ready by November..
NAM CHALLENGES EPA’S BOILER MACT RULE
NAM Capital Briefing
On June 16, the NAM filed a petition for review of the EPA’s Non-Hazardous Secondary Materials (NHSM) rule under the suite of Boiler MACT rules. The NHSM rule will classify secondary materials that are currently used as a source of energy as waste. The NAM is concerned with several aspects of the rule, including its effect on the deselection for NHSM legitimately used as fuels and/or ingredients and their markets; the expanded and presumptive notion of “discard” the EPA adopts in the final rule; the requirement to make comparisons of almost 200 pollutants in the secondary material to traditional fuels that are burned in the unit; and the need for a stay of the rule. Click here for a copy of the filing. Details: Mahta Mahdavi, (202) 637-3176.
TIMMONS HIGHLIGHTS CHALLENGES FACING MANUFACTURERS
NAM Capital Briefing
NAM President and CEO Jay Timmons appeared before the Joint Economic Committee Wednesday, June 22, at a hearing on “The State of U.S. Manufacturing.” In his statement, Timmons noted that while the manufacturing sector is a bright spot in the U.S. economy, more needs to be done to address the significant challenges faced by manufacturers in the United States. Despite the critical role the industry plays in the economy, taxes, legal costs, energy prices and burdensome regulations make it 18 percent more expensive to manufacture a product in the United States than in any other country – without even taking into account labor costs. Layered on top of these higher costs is the broad uncertainty faced by American businesses, including “on-again, off-again” tax policy and an unpredictable regulatory environment. Manufacturers also are increasingly concerned about the impact of the historically-high levels of the federal deficit and the national debt on manufacturing and the overall U.S. economy.
IEA TO RELEASE OIL TO COMBAT HIGH PRICES
Today in Manufacturing
Agency, which includes U.S. and 27 other countries, to release 60 million barrels from emergency stocks in effort to stave off a spike in energy prices ... continue
HOUSE TO VOTE ON PATENT SYSTEM OVERHAUL
Today in Manufacturing
The most significant update in 60 years sailed through the Senate in March on a 95-5 vote, but has run into resistance in the House ... continue
BRINGING AND KEEPING BUSINESS INVESTMENT IN AMERICA
By Gary Locke, U.S. Secretary of Commerce
Business investment in America creates and supports millions of jobs, while generating economic growth and opportunities in communities throughout the United States.
{read more}
JUNE IS MANUFACTURING MONTH
World Trade Center Utah
Did you know that June is manufacturing month? ITA has an entire division dedicated to supporting U.S. manufacturers, the Manufacturing and Services division.
{read more}
DURABLE GOODS ORDERS REBOUND
Today in Manufacturing
Businesses boosted their orders for machinery, electronics products and airplanes in May after a big cutback in the previous month ... continue
PRESIDENT OBAMA LAUNCHES ADVANCED MANUFACTURING PARTNERSHIP
Today in Manufacturing
Partnership will encourage public and private collaboration to push manufacturing into the 21st century. Click to continue
DURABLE GOODS ODERS UP FOR MAY
Today in Manufacturing
Transportation equipment up 5.8% Click to continue
OSHA ACCEPTS APPLICATIONS FOR SAFETY TRAINING GRANTS
Today in Manufacturing
OSHA has $4.7 million to offer in health and safety training grants and is looking for ways to spend it. Click to continue
U.S. ECONOMIC GROWTH 'ANEMIC'
Today in Manufacturing
Economy expanded a little faster at the beginning of the year, but pace was still anemic and economists don't see that changing until later this year ... continue
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