August 1, 2011
The economy remains challenged. Growth in the first half of 2011 was weak, with new real GDP numbers from the Bureau of Economic Analysis showing 0.4 percent and 1.3 percent increases in output in the first and second quarters, respectively. Manufacturing output declined dramatically in the spring, led by supply chain disruptions and rising energy and commodity prices. Durable goods sales, which have helped to drive economic growth since the end of 2009, fell 4.4 percent in the second quarter, and a wide variety of national and regional surveys over the past several weeks have reflected this "coolness." As a result, the weak GDP figures are not all that surprising, however disappointing they might be.
There is potential for the second half of 2011 to be stronger, both for the economy as a whole and for manufacturers in particular. The manufacturing sector continues to grow, as many of last week’s economic indicators show. The Federal Reserve Board's Beige Book notes that a number of sectors are beginning to rebound nationally. Most notable is a pickup in activity in the motor vehicle sector in several of its regions. Other sectors are building strength as well, including heavy machinery, metal fabrication and high-technology products. In addition, many of the regional Federal Reserve Bank surveys – including the Dallas, Kansas City and Richmond surveys described below – tend to show a brighter forecast for the next six months than the current economic environment might indicate.
In addition, manufacturers continue to recognize the importance of trade. Manufactured goods exports have grown more than 13 percent over the past year. In the second quarter of this year, growth in real exports outstripped growth in real imports. Real exports accounted for 0.8 percent of the 1.3 percent growth in real GDP for the quarter, a testament to the tremendous opportunity new markets present for manufacturers and yet another reminder why policymakers need to quickly pass the Colombia, Panama and South Korea free trade agreements.
Despite such tremendous potential for recovery, a number of headwinds threaten the country's growth moving forward. The most immediate hurdle is the inability of our nation's leaders to adequately address our dire fiscal situation. As leaders of both parties offer dueling proposals on how to address our budget deficit, it is clear that financial markets, businesses and ordinary citizens have become more anxious about the prospects of meeting our financial obligations and keeping our solid debt rating. Such uncertainty weakens confidence in the short-term and risks greater economic consequences in the years ahead.
Business and individual confidence have already taken a hit, with the University of Michigan's consumer sentiment survey falling dramatically this month. With consumers accounting for 70 percent of real GDP, the nation can hardly afford the increase in pessimism. Indeed, the rebound in manufacturing activity some surveys were foreseeing in June has begun to dissipate with July. Decreases in new orders and production in many of these surveys highlight this weakness. So, while manufacturers’ six-month expectations remain expansionary, we should not lose sight of the tenuousness of these predictions.
The Institute for Supply Management will release its Purchasing Managers Index for manufacturing today, and it is highly likely that we will see a slight decline, indicating slower (but still positive) growth. In addition, important indicators will be released on personal consumption and employment. Many people will be watching closely to see if the economy can improve upon the weak nonfarm payroll growth in June.
Chad Moutray
Chief Economist
National Association of Manufacturers
ECONOMY SLOWED SHARPLY IN 1H
Today in Manufacturing
The economy slowed in the first six months of 2011 to its weakest pace since the recession ended due to high gas prices and scant income gains ... continue
FEATURE: HOW MUCH IS FOOD SAFETY WORTH?
Today in Manufacturing
Since the FDA cannot directly inspect every facility across the globe, the Food Safety Modernization Act seeks to better ensure the safety of foreign goods ... continue
UTAH AIR QUALITY BOARD REJECTS PETITION TO REGULATE GHGSClimate Change
News – Holland and Hart
On July 6, the Utah Air Quality Board rejected a petition by various individuals and environmental groups to adopt a regulatory framework that would reduce GHG emissions in Utah by six percent per year. click here to read more
LEGISLATIVE ACTIVITY ON CLIMATE CHANGE OVERSHADOWED BY DEBT CEILING NEGOTIATIONS
Climate Change News – Holland and Hart
Climate change legislation continues to be a non-starter in the Congress and has been overshadowed by the negotiations over the debt limit extension.click here to read more
AEP PUTS CARBON CAPTURE AND STORAGE PLANS ON HOLD
Climate Change News – Holland and Hart
American Electric Power is suspending plans for a commercial-scale carbon capture and storage system because of uncertainties surrounding U.S. economic conditions and climate change policy.click here to read more
EXPERTS: MEDICAL DEVICE REVIEW SYSTEM 'FLAWED'
Today in Manufacturing
Panel says government should abandon the 35-year-old system because it offers little to no assurance of safety for patients ... continue
REVISIONS INDICATE DEEPER RECESSION
Today in Manufacturing
The 2007-2009 recession, already in record books as the worst in the 66 years since the end of World War II, was even worse than previously thought ... continue
FEATURE: THE FUTURE OF ENERGY MEASUREMENT
Today in Manufacturing
Imagine being able to monitor the energy usage of a single streetlamp, then using the collected data to predict when the lamp will burn out ... continue
GOOGLE BUYS ABOUT 1,000 IBM PATENTS
Today in Manufacturing
Google bought about 1,000 pending and issued patents from IBM in its quest to shore up its defenses against suits by other technology companies ... continue
CHINA RECRUITS 10,000 TO BUILD AIRCRAFT CARRIER
Today in Manufacturing
Residents in Changxing Island said authorities have secretly recruited 10,000 workers in an apparent move to build China's first domestic aircraft carrier ... continue
COLUMN: IS THE MEDICAL INDUSTRY TURNING A CORNER?
Today in Manufacturing
I've seen many different industry trends come and go and how the industry was affected by the economic downturn a few years ago ... continue
MANUFACTURING GROWTH LOWEST IN 2 YEARS
Today in Manufacturing
Manufacturers had their weakest growth in two years in July, a sign that the economy could weaken this summer ... continue
FEATURE: CUTTING DOWNTIME AND ENERGY COSTS
Today in Manufacturing
A growing number of food and beverage manufacturers are turning to advanced shaft and belt alignment systems, often equipped with laser sighting ... continue
I-9: EMPLOYMENT INTERRUPTIONS (PART 3)
The Employers Council
To wrap up our series on handling I-9s and breaks in service, Page 21 of the Handbook for Employers,www.uscis.gov/files/form/m-274.pdf gives the following guidance on determining if there was a reasonable expectation of employment at all times and thus no “hire” and no need to complete a new I-9 despite an interruption in employment:
"Leaves of Absence, Layoffs, Corporate Mergers and Other Interruptions of Employment
To determine whether an employee continuing in his or employment had a reasonable expectation of employment at all times, you should consider several factors, including, but not limited to:
• The individual was employed on a regular and substantial basis. A determination of a regular and substantial basis is established by a comparison of other workers similarly employed by the employer.
• The individual complied with the employer’s established and published policy regarding his or her absence.
• The employer’s past history of recalling absent employees for employment indicates a likelihood that the individual in question will resume employment with the employer within a reasonable time in the future.
• The former position held by the individual has not been taken permanently by another worker.
• The individual has not sought or obtained benefits during his or her absence from employment with the employer that are inconsistent with an expectation of resuming employment within a reasonable time in the future.
• The financial condition of the employer indicates the ability of the employer to permit the individual in question to resume employment within a reasonable time in the future.
• The oral and/or written communication between employer, the employer’s supervisory employees and the individual indicates that it is reasonably likely that the individual will resume employment within a reasonable time in the future."
UTAH PARTIES SETTLE RECORD RMP RATE CASE
Utah Association of Energy Users
For customers fearing the largest rate increase ever on their electricity bills by Rocky Mountain Power (RMP), there may be some relief that regulatory staff and intervening parties have developed a settlement to reduce the increase.
In January 2011, RMP filed a record rate increase request of $232 million (13.7% on average). In its application filed with the Utah Public Service Commission (PSC), RMP said that it needed more money to pay for transmission infrastructure, pollution control equipment required by looming EPA regulations, and to meet the needs of the grow-ing load in a number of states, particularly Utah and Wyoming.
The proposed rate increase will be $117 million, but is offset by $33 million the company earned through renewable energy credits that will be returned to customers, utility spokesman Dave Eskelsen said. That will mean a 4.7 percent increase, or $3.20 per month, for the typical power user in Utah, he said.
The utility originally sought an increase a 14 percent increase of $232 million, but revised its request this year to $185 million in June. Eskelsen said the company has projected annual increases, although it won't seek the next one until February 2012, as part of the settlement.
Although the increase is less than originally requested, the state Division of Public Utilities said it's sufficient for RMP to "continue providing electricity to Utah's growing commercial and residential populations while mitigating rate increases for Utahans."
All intervening parties signed the settlement except the Sierra Club because it wanted more investments in renewable energy, said spokesman David Graham-Caso.
. By continuing to invest in coal power, the utility is not recognizing the rapidly decreasing costs for renewables, Graham-Caso said. It's not appropriate for the company to "ask ratepayers to pay a significant increase for dirty, dangerous and increasingly expensive coal plants," Graham-Caso said. "They need to look at every option to do what is best for their consumers, and that didn't happen."
Michele Beck, director of the state Of-fice of Consumer Services, said the increase is a win for consumers. Delaying the rate request is important because the utility was likely going to request a rate increase by the end of this year, while the renewable energy credits actually resolve another pending case.
Kevin Higgins, on behalf of UAE, provided key testimony on the renewable energy credits and their value to customers.
The PSC has scheduled meetings Aug. 3 and 4 to discuss the settlement and is planning an Aug. 8 public hearing. PSC will then decide whether to authorize the rate increase.
MAJOR EVENTS ADDING TO UTAH'S ECONOMY
Jeff Edwards, President and CEO, EDCUtah
Economic development activity continues to take place across the state -- through a variety of events and venues. {read more}
FULL STEAM AHEAD: NEON RECEIVES FUNDING TO START CONSTRUCTION
Daily Pulse
Budget crisis notwithstanding, the massive, National Science Foundation-funded National Ecological Observatory Network – known as NEON – has secured $18 million in fiscal year 2011 funds to move forward with construction. {read more}
COMMUNITY COLLEGES STEP IN TO FILL 'SKILLS GAP'
money.cnn.com
Community colleges strengthen ties with companies to address the 'skills gap' and better train workers for jobs.
Read full story (Note: in Utah much of this technical training is performed by the eight campuses of the Utah College of Applied Technology- UCAT)
AMERICANS CUT BACK ON SPENDING
Today in Manufacturing
Americans cut back on spending in June for the first time in nearly two years, a troubling sign for an economy that is barely growing ... continue
OVERCOMING COMMODITY PRICES WITH PRIVATE LABELS
Today in Manufacturing
For private label manufacturers, rising commodity costs can have an even more significant impact than brand label producers ... continue
MANUFACTURING GROUPS SHOW SUPPORT FOR DEBT LEGISLATION
Quick Manufacturing News
NAM: Bill 'puts us on a path toward addressing our nation's fiscal crisis.' Click to continue
ASTHMA IN THE U.S. WORKPLACE
Quick Manufacturing News
Occupational asthma is the most common, work-related lung disease in developed countries and is caused by occupational exposure to airborne substances known as asthmagens. Click to continue
COMPANIES ARE DOING WELL, EVEN IF ECONOMY IS NOT
Quick Manufacturing News
Companies slashed costs during the recession, laying off workers and reining in spending on plants and equipment, which boosted profit margins. Click to continue
ENGINEERING OUR WAY OUT OF OFFSHORING
Quick Manufacturing News
By using lean principles and total-cost-of-ownership analysis, it makes more sense -- and cents -- to bring jobs back to America, experts say. Click to continue
A NEW STRATEGY FOR CLIMATE LAWSUITS
FLAG Weekly Communications - NAM
Shook, Hardy and Bacon’s Victor Schwartz, Phil Goldberg and Christopher Appel write about the “Children’s Trust” climate lawsuits pending in a number of states. The backers of these lawsuits hope to eventually file in every state—what Schwartz, Goldberg and Appel call the “roulette philosophy.” They write,
There are 38 possibilities of winning on a roulette table. Eighteen black, eighteen red, and two green. If one were to place a bet on just one number, the possibility of winning is a long shot. But, if one were to bet on multiple numbers, for example 34 of them, the odds of winning measurably increase.
This roulette philosophy is behind the latest round of climate change lawsuits aimed at regulating carbon dioxide (CO2) emissions. In May, the first of these new lawsuits were filed in a federal District Court in California and state courts in Alaska, Arizona, California, Colorado, Massachusetts, Minnesota, Montana, New Jersey, New Mexico, Oregon, and Washington. The group sponsoring the litigation has indicated that similar lawsuits will be filed in every state. If just one of these lawsuits "hits" -- which could simply mean surviving early dismissal -- the sponsor may be on its way to winning the jackpot.
From a legal perspective, these lawsuits are a substantial stretch -- even more speculative than blindly putting a chip down on a roulette table. They take a novel legal theory called the "public trust doctrine," which has been applied in only a narrow set of cases involving state-owned water rights, and try to turn it into an expansive theory where literally the sky would not even be the limit. In effect, they allege that the federal government and each state's government has an independent "public trust" obligation to protect the state or entire nation's atmosphere from global climate changes.
To enhance the public relations appeal of the lawsuits, the organizers have brought in students to serve as the plaintiffs (under guardian ad litem procedures) so the media can be told that children in grade school, high school, and college are bringing these claims to protect their environmental future. The most prominent of the groups sponsoring the litigation is the Oregon group set up specifically for the litigation called "Our Children's Trust."
Read the whole paper here.
NEWSMAX POLL: 73% OPPOSE DEBT DEAL, BUT BOEHNER GETS HIGH MARKS
The economy remains challenged. Growth in the first half of 2011 was weak, with new real GDP numbers from the Bureau of Economic Analysis showing 0.4 percent and 1.3 percent increases in output in the first and second quarters, respectively. Manufacturing output declined dramatically in the spring, led by supply chain disruptions and rising energy and commodity prices. Durable goods sales, which have helped to drive economic growth since the end of 2009, fell 4.4 percent in the second quarter, and a wide variety of national and regional surveys over the past several weeks have reflected this "coolness." As a result, the weak GDP figures are not all that surprising, however disappointing they might be.
There is potential for the second half of 2011 to be stronger, both for the economy as a whole and for manufacturers in particular. The manufacturing sector continues to grow, as many of last week’s economic indicators show. The Federal Reserve Board's Beige Book notes that a number of sectors are beginning to rebound nationally. Most notable is a pickup in activity in the motor vehicle sector in several of its regions. Other sectors are building strength as well, including heavy machinery, metal fabrication and high-technology products. In addition, many of the regional Federal Reserve Bank surveys – including the Dallas, Kansas City and Richmond surveys described below – tend to show a brighter forecast for the next six months than the current economic environment might indicate.
In addition, manufacturers continue to recognize the importance of trade. Manufactured goods exports have grown more than 13 percent over the past year. In the second quarter of this year, growth in real exports outstripped growth in real imports. Real exports accounted for 0.8 percent of the 1.3 percent growth in real GDP for the quarter, a testament to the tremendous opportunity new markets present for manufacturers and yet another reminder why policymakers need to quickly pass the Colombia, Panama and South Korea free trade agreements.
Despite such tremendous potential for recovery, a number of headwinds threaten the country's growth moving forward. The most immediate hurdle is the inability of our nation's leaders to adequately address our dire fiscal situation. As leaders of both parties offer dueling proposals on how to address our budget deficit, it is clear that financial markets, businesses and ordinary citizens have become more anxious about the prospects of meeting our financial obligations and keeping our solid debt rating. Such uncertainty weakens confidence in the short-term and risks greater economic consequences in the years ahead.
Business and individual confidence have already taken a hit, with the University of Michigan's consumer sentiment survey falling dramatically this month. With consumers accounting for 70 percent of real GDP, the nation can hardly afford the increase in pessimism. Indeed, the rebound in manufacturing activity some surveys were foreseeing in June has begun to dissipate with July. Decreases in new orders and production in many of these surveys highlight this weakness. So, while manufacturers’ six-month expectations remain expansionary, we should not lose sight of the tenuousness of these predictions.
The Institute for Supply Management will release its Purchasing Managers Index for manufacturing today, and it is highly likely that we will see a slight decline, indicating slower (but still positive) growth. In addition, important indicators will be released on personal consumption and employment. Many people will be watching closely to see if the economy can improve upon the weak nonfarm payroll growth in June.
Chad Moutray
Chief Economist
National Association of Manufacturers
ECONOMY SLOWED SHARPLY IN 1H
Today in Manufacturing
The economy slowed in the first six months of 2011 to its weakest pace since the recession ended due to high gas prices and scant income gains ... continue
FEATURE: HOW MUCH IS FOOD SAFETY WORTH?
Today in Manufacturing
Since the FDA cannot directly inspect every facility across the globe, the Food Safety Modernization Act seeks to better ensure the safety of foreign goods ... continue
UTAH AIR QUALITY BOARD REJECTS PETITION TO REGULATE GHGSClimate Change
News – Holland and Hart
On July 6, the Utah Air Quality Board rejected a petition by various individuals and environmental groups to adopt a regulatory framework that would reduce GHG emissions in Utah by six percent per year. click here to read more
LEGISLATIVE ACTIVITY ON CLIMATE CHANGE OVERSHADOWED BY DEBT CEILING NEGOTIATIONS
Climate Change News – Holland and Hart
Climate change legislation continues to be a non-starter in the Congress and has been overshadowed by the negotiations over the debt limit extension.click here to read more
AEP PUTS CARBON CAPTURE AND STORAGE PLANS ON HOLD
Climate Change News – Holland and Hart
American Electric Power is suspending plans for a commercial-scale carbon capture and storage system because of uncertainties surrounding U.S. economic conditions and climate change policy.click here to read more
EXPERTS: MEDICAL DEVICE REVIEW SYSTEM 'FLAWED'
Today in Manufacturing
Panel says government should abandon the 35-year-old system because it offers little to no assurance of safety for patients ... continue
REVISIONS INDICATE DEEPER RECESSION
Today in Manufacturing
The 2007-2009 recession, already in record books as the worst in the 66 years since the end of World War II, was even worse than previously thought ... continue
FEATURE: THE FUTURE OF ENERGY MEASUREMENT
Today in Manufacturing
Imagine being able to monitor the energy usage of a single streetlamp, then using the collected data to predict when the lamp will burn out ... continue
GOOGLE BUYS ABOUT 1,000 IBM PATENTS
Today in Manufacturing
Google bought about 1,000 pending and issued patents from IBM in its quest to shore up its defenses against suits by other technology companies ... continue
CHINA RECRUITS 10,000 TO BUILD AIRCRAFT CARRIER
Today in Manufacturing
Residents in Changxing Island said authorities have secretly recruited 10,000 workers in an apparent move to build China's first domestic aircraft carrier ... continue
COLUMN: IS THE MEDICAL INDUSTRY TURNING A CORNER?
Today in Manufacturing
I've seen many different industry trends come and go and how the industry was affected by the economic downturn a few years ago ... continue
MANUFACTURING GROWTH LOWEST IN 2 YEARS
Today in Manufacturing
Manufacturers had their weakest growth in two years in July, a sign that the economy could weaken this summer ... continue
FEATURE: CUTTING DOWNTIME AND ENERGY COSTS
Today in Manufacturing
A growing number of food and beverage manufacturers are turning to advanced shaft and belt alignment systems, often equipped with laser sighting ... continue
I-9: EMPLOYMENT INTERRUPTIONS (PART 3)
The Employers Council
To wrap up our series on handling I-9s and breaks in service, Page 21 of the Handbook for Employers,www.uscis.gov/files/form/m-274.pdf gives the following guidance on determining if there was a reasonable expectation of employment at all times and thus no “hire” and no need to complete a new I-9 despite an interruption in employment:
"Leaves of Absence, Layoffs, Corporate Mergers and Other Interruptions of Employment
To determine whether an employee continuing in his or employment had a reasonable expectation of employment at all times, you should consider several factors, including, but not limited to:
• The individual was employed on a regular and substantial basis. A determination of a regular and substantial basis is established by a comparison of other workers similarly employed by the employer.
• The individual complied with the employer’s established and published policy regarding his or her absence.
• The employer’s past history of recalling absent employees for employment indicates a likelihood that the individual in question will resume employment with the employer within a reasonable time in the future.
• The former position held by the individual has not been taken permanently by another worker.
• The individual has not sought or obtained benefits during his or her absence from employment with the employer that are inconsistent with an expectation of resuming employment within a reasonable time in the future.
• The financial condition of the employer indicates the ability of the employer to permit the individual in question to resume employment within a reasonable time in the future.
• The oral and/or written communication between employer, the employer’s supervisory employees and the individual indicates that it is reasonably likely that the individual will resume employment within a reasonable time in the future."
UTAH PARTIES SETTLE RECORD RMP RATE CASE
Utah Association of Energy Users
For customers fearing the largest rate increase ever on their electricity bills by Rocky Mountain Power (RMP), there may be some relief that regulatory staff and intervening parties have developed a settlement to reduce the increase.
In January 2011, RMP filed a record rate increase request of $232 million (13.7% on average). In its application filed with the Utah Public Service Commission (PSC), RMP said that it needed more money to pay for transmission infrastructure, pollution control equipment required by looming EPA regulations, and to meet the needs of the grow-ing load in a number of states, particularly Utah and Wyoming.
The proposed rate increase will be $117 million, but is offset by $33 million the company earned through renewable energy credits that will be returned to customers, utility spokesman Dave Eskelsen said. That will mean a 4.7 percent increase, or $3.20 per month, for the typical power user in Utah, he said.
The utility originally sought an increase a 14 percent increase of $232 million, but revised its request this year to $185 million in June. Eskelsen said the company has projected annual increases, although it won't seek the next one until February 2012, as part of the settlement.
Although the increase is less than originally requested, the state Division of Public Utilities said it's sufficient for RMP to "continue providing electricity to Utah's growing commercial and residential populations while mitigating rate increases for Utahans."
All intervening parties signed the settlement except the Sierra Club because it wanted more investments in renewable energy, said spokesman David Graham-Caso.
. By continuing to invest in coal power, the utility is not recognizing the rapidly decreasing costs for renewables, Graham-Caso said. It's not appropriate for the company to "ask ratepayers to pay a significant increase for dirty, dangerous and increasingly expensive coal plants," Graham-Caso said. "They need to look at every option to do what is best for their consumers, and that didn't happen."
Michele Beck, director of the state Of-fice of Consumer Services, said the increase is a win for consumers. Delaying the rate request is important because the utility was likely going to request a rate increase by the end of this year, while the renewable energy credits actually resolve another pending case.
Kevin Higgins, on behalf of UAE, provided key testimony on the renewable energy credits and their value to customers.
The PSC has scheduled meetings Aug. 3 and 4 to discuss the settlement and is planning an Aug. 8 public hearing. PSC will then decide whether to authorize the rate increase.
MAJOR EVENTS ADDING TO UTAH'S ECONOMY
Jeff Edwards, President and CEO, EDCUtah
Economic development activity continues to take place across the state -- through a variety of events and venues. {read more}
FULL STEAM AHEAD: NEON RECEIVES FUNDING TO START CONSTRUCTION
Daily Pulse
Budget crisis notwithstanding, the massive, National Science Foundation-funded National Ecological Observatory Network – known as NEON – has secured $18 million in fiscal year 2011 funds to move forward with construction. {read more}
COMMUNITY COLLEGES STEP IN TO FILL 'SKILLS GAP'
money.cnn.com
Community colleges strengthen ties with companies to address the 'skills gap' and better train workers for jobs.
Read full story (Note: in Utah much of this technical training is performed by the eight campuses of the Utah College of Applied Technology- UCAT)
AMERICANS CUT BACK ON SPENDING
Today in Manufacturing
Americans cut back on spending in June for the first time in nearly two years, a troubling sign for an economy that is barely growing ... continue
OVERCOMING COMMODITY PRICES WITH PRIVATE LABELS
Today in Manufacturing
For private label manufacturers, rising commodity costs can have an even more significant impact than brand label producers ... continue
MANUFACTURING GROUPS SHOW SUPPORT FOR DEBT LEGISLATION
Quick Manufacturing News
NAM: Bill 'puts us on a path toward addressing our nation's fiscal crisis.' Click to continue
ASTHMA IN THE U.S. WORKPLACE
Quick Manufacturing News
Occupational asthma is the most common, work-related lung disease in developed countries and is caused by occupational exposure to airborne substances known as asthmagens. Click to continue
COMPANIES ARE DOING WELL, EVEN IF ECONOMY IS NOT
Quick Manufacturing News
Companies slashed costs during the recession, laying off workers and reining in spending on plants and equipment, which boosted profit margins. Click to continue
ENGINEERING OUR WAY OUT OF OFFSHORING
Quick Manufacturing News
By using lean principles and total-cost-of-ownership analysis, it makes more sense -- and cents -- to bring jobs back to America, experts say. Click to continue
A NEW STRATEGY FOR CLIMATE LAWSUITS
FLAG Weekly Communications - NAM
Shook, Hardy and Bacon’s Victor Schwartz, Phil Goldberg and Christopher Appel write about the “Children’s Trust” climate lawsuits pending in a number of states. The backers of these lawsuits hope to eventually file in every state—what Schwartz, Goldberg and Appel call the “roulette philosophy.” They write,
There are 38 possibilities of winning on a roulette table. Eighteen black, eighteen red, and two green. If one were to place a bet on just one number, the possibility of winning is a long shot. But, if one were to bet on multiple numbers, for example 34 of them, the odds of winning measurably increase.
This roulette philosophy is behind the latest round of climate change lawsuits aimed at regulating carbon dioxide (CO2) emissions. In May, the first of these new lawsuits were filed in a federal District Court in California and state courts in Alaska, Arizona, California, Colorado, Massachusetts, Minnesota, Montana, New Jersey, New Mexico, Oregon, and Washington. The group sponsoring the litigation has indicated that similar lawsuits will be filed in every state. If just one of these lawsuits "hits" -- which could simply mean surviving early dismissal -- the sponsor may be on its way to winning the jackpot.
From a legal perspective, these lawsuits are a substantial stretch -- even more speculative than blindly putting a chip down on a roulette table. They take a novel legal theory called the "public trust doctrine," which has been applied in only a narrow set of cases involving state-owned water rights, and try to turn it into an expansive theory where literally the sky would not even be the limit. In effect, they allege that the federal government and each state's government has an independent "public trust" obligation to protect the state or entire nation's atmosphere from global climate changes.
To enhance the public relations appeal of the lawsuits, the organizers have brought in students to serve as the plaintiffs (under guardian ad litem procedures) so the media can be told that children in grade school, high school, and college are bringing these claims to protect their environmental future. The most prominent of the groups sponsoring the litigation is the Oregon group set up specifically for the litigation called "Our Children's Trust."
Read the whole paper here.
NEWSMAX POLL: 73% OPPOSE DEBT DEAL, BUT BOEHNER GETS HIGH MARKS
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