September 23, 2011

“TRAIN” ACT WOULD RESTORE CERTAINTY AND ENCOURAGE JOB CREATION
NAM Capital News Brief
The House of Representatives continues to pursue its regulatory repeal agenda for the fall, voting each week on rules and regulations that are hindering business growth and job creation. On Friday, September 23, the House is expected to consider H.R. 2401, the Transparency in Regulatory Analysis of Impacts on the Nation (TRAIN) Act. Click here to read the NAM’s key vote letter in support of the legislation, which would establish an interagency committee to assess the cumulative impact of numerous Environmental Protection Agency (EPA) regulations affecting manufacturers, including the proposed Utility MACT rule, the Cross-State Air Pollution Rule (CSAPR), the proposed regulation of coal ash, the Boiler MACT rule and the EPA’s regulation of greenhouse gas emissions.

In addition, the legislation would stay two of the rules (Utility MACT and CSAPR) until six months after the study has been completed and sent to Congress. Utility MACT and CSAPR, if implemented, could increase electricity prices by 12-24 percent in some regions. According to National Economic Research Associates, 1.4 million jobs could be lost by 2020. This would translate into a significant competitive disadvantage at a time when American manufacturers are struggling to survive and create jobs in our fragile economy. Click here to see the NAM’s ad in Politico in support of the TRAIN Act.

Manufacturers use roughly 30 percent of our nation’s energy supply, and it is imperative that these regulations do not hamper their ability to conduct day-to-day business.

The TRAIN Act serves as a responsible means to evaluate how rules and regulations will impact businesses. Manufacturers understand the EPA has a job to do, but they also know that their businesses are hurting. The proposed review process will allow officials to see the costs of new economic rules and regulations and change course before burdensome policies are put in place. The analysis would also serve as a way to help determine the future of American energy policy.

Employers across the United States in all industrial sectors face unprecedented levels of uncertainty. Manufacturers have led the economic recovery and can continue to do so if Congress passes the right legislative agenda to support jobs.

The TRAIN Act is a crucial step in restoring certainty to America’s job creators. The NAM will continue to fight efforts to impose new regulations on our economy while also looking for opportunities to review, reform and, in some cases, repeal existing regulations that impair economic growth.

DEPARTMENT OF LABOR’S PROPOSED RULE WOULD SILENCE EMPLOYERS
NAM Capital News Brief
On Wednesday, September 21, the NAM filed comments in opposition to the Department of Labor’s proposal to make it more difficult for employers, especially smaller-sized businesses, to access legal assistance to help them comply with the complex and nuanced laws governing labor relations. Current law requires employers, law firms and other labor union experts to disclose when employers seek assistance from consultants who intend to directly “persuade” employees regarding union membership. For decades, the law has included a very important exemption: employers are allowed to obtain legal advice from attorneys to remain compliant with current law. The proposed changes would drastically expand the definition of “persuader” activity to include many activities currently recognized as labor law advice—effectively “gagging” employers and keeping many employees from hearing both sides of the unionization debate. The NAM argues that the proposed changes would “significantly impair the ability of employers to obtain essential legal counsel and advice from experienced labor and employment attorneys regarding a broad range of critical workplace issues.”

NAM COMMENTS ON UNJUSTIFIED RECORDKEEPING PROPOSAL
NAM Capital News Brief
In June, the Occupational Safety and Health Administration (OSHA) proposed a rule to require that an employer report all work-related in-patient hospitalizations within eight hours. Current law requires an employer to report, within eight hours, when three or more workers are hospitalized, or if there is a work-related fatality. An “in-patient” hospitalization is defined as a person admitted to the hospital or clinic for at least one overnight stay. On Tuesday, September 20, the NAM filed comments arguing that there is no valid justification for changing the current rule and that there is a lack of clarity as to how the rule would be applied and when the eight-hour timeframe would begin for an employer to report to OSHA a worker’s injury or illness. The NAM also suggested that OSHA should engage in a dialogue with the business community to gain a better understanding of the burdens this rule would create and the viable alternatives to this proposal.

HOUSE PANEL APPROVES BOILER AND CEMENT MACT RELIEF BILLS
NAM Capital News Brief
On Wednesday, September 21, the House Energy and Commerce Committee approved two NAM-supported bills that address the Environmental Protection Agency’s (EPA) harmful Maximum Achievable Control Technology (MACT) standards. The EPA Regulatory Relief Act of 2011 (H.R. 2250) addresses the EPA’s Boiler MACT regulations and the Cement Sector Regulatory Relief Act of 2011 (H.R. 2681) addresses similar rules impacting Portland cement facilities. The bills would stay the current rules, provide the EPA with 15 months to re-propose the rules, extend the compliance time frame from three to five years and require that the Agency develop regulations that are achievable in practice. H.R. 2250 was approved by a bipartisan vote of 36-14, and H.R. 2681 was approved by a bipartisan vote of 33-12. Floor action is expected in early October.

NAM PRESIDENT CALLS TAX INCREASES IN PRESIDENT’S DEFICIT PLAN A “POISON PILL” FOR THE ECONOMY
NAM Capital News Brief
The $3 trillion Plan for Economic Growth and Deficit Reduction the Administration sent to the Super Committee on Monday, September 19, drew a negative response from the NAM because of the $1.5 trillion in tax increases included in the proposal. In a statement, NAM President and CEO Jay Timmons said that the tax increase portion of the President’s plan, which would impact businesses of all sizes, individuals and investors, is a poison pill for our economy. While the plan does include some “principles” for tax reform, including lower corporate tax rates, the benefits of the tax relief are negated by a massive package of tax increases that includes repeal of the last-in, first-out (LIFO) method of inventory accounting, international tax increases and additional tax increases on small businesses. In his statement, Timmons noted that we should not attempt to solve our nation’s fiscal ills on the backs of businesses striving to expand and add jobs. “Manufacturers need policies that enable them to hire more workers, make capital investments and expand their businesses,” Timmons said. Details: Dorothy Coleman, (202) 637-3077.

SENATE INTRODUCES NAM-SUPPORTED R&D CREDIT BILL
NAM Capital News Brief
On Tuesday, September 20, long-time R&D credit champions Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Orrin Hatch (R-UT) introduced S. 1577, the Greater Research Opportunities with Tax Help (GROWTH) Act. The bill strengthens the Alternative Simplified Credit (ASC) formula rate to 20 percent from 14 percent, makes it permanent, repeals the regular credit formula with no transition period and includes additional language. Although similar, S. 1577 is not identical to the bipartisan House R&D credit bill, the American Research and Competitiveness Act (H.R. 942), which also strengthens the ASC to 20 percent, makes it permanent and includes a one-year transition period for regular credit users. The NAM will be actively seeking additional cosponsors for both bills and encouraging lawmakers to extend the credit before it expires at year’s end.

NAM URGES SUPPORT FOR KEY TRADE PROGRAMS
NAM Capital News Brief
This week, the Senate considers H.R. 2832, a bill that would extend the Generalized System of Preferences (GSP) and Trade Adjustment Assistance (TAA) programs. The NAM sent a key vote letter in support of the bill on Thursday, September 22. Manufacturers support the extension of GSP, which provides preferential access to certain imports from selected developing countries. Last year, $23 billion of imports came into our nation duty-free under GSP, nearly three-quarters of which were raw materials, components, parts, or other inputs used to manufacture goods here in the United States. It is estimated that nearly 82,000 U.S. jobs are directly or indirectly associated with the importation and use of GSP-eligible imports. In addition, the language renewing portions of the TAA program would provide trade-impacted workers with support, training and the opportunity to learn new skills that help contribute to the 21st-century manufacturing economy. Final Senate passage of H.R. 2832 is expected before October. The Administration has indicated that Senate passage of the GSP/TAA bill is necessary for transmission of the three pending free trade agreements (FTAs) with Colombia, Korea and Panama.

COULD 'MANUFACTURING'S SECRET SHIFT' BRING JOBS BACK TO AMERICA?
Quick Manufacturing News
A survey finds that manufacturers are moving closer to their customers, which could bode well for the United States. Click to continue

MANUFACTURING LOST 1.9 MILLION JOBS DUE TO TRADE DEFICIT WITH CHINA, STUDY SAYS
Quick Manufacturing News
'China's blatant trade violations, are having the same devastating impact on high-tech production that they’ve already had on the nation’s longstanding industrial base,' says AAM. Click to continue

U.S. INDUSTRY MOVES TO KILL CHINA SANCTIONS BILL
Quick Manufacturing News
Groups, including U.S. Chamber of Commerce, said retaliatory tariffs 'would likely have the opposite effect and result in retaliation against U.S. exports into China.' Click to continue

FEWER APPLIED FOR UNEMPLOYMENT BENEFITS
Today in Manufacturing
The number of Americans applying for unemployment benefits fell last week, though the decline isn't enough to signal improvement in the job market ... continue

U.S. WANTS TO SPEED UP PROGRESS ON CARBON CAPTURE
Today in Manufacturing
U.S. is strongly committed to the process, known as carbon sequestration, and plans to have 10 commercial demonstration projects online by 2016 ... continue