Capital Briefing: March 31, 2011

A Publication of the National Association of Manufacturers

March 31, 2011
Focus: Manufacturers Launch Media Campaign on EPA Overregulation While Congress Considers Halting EPA on Greenhouse Gas Emissions

The NAM launched a multi-state, multi-million-dollar initiative on Monday, March 28, to oppose the Environmental Protection Agency's (EPA) aggressive regulatory agenda. The campaign calls on Congress and the Administration to carefully consider the severe economic impact of the EPA's job-killing regulations on energy prices and on businesses and families across country.

This campaign comprises educational and grassroots efforts and kicked off with television and radio ads in Arkansas, Maine, Michigan, Missouri, Ohio and Pennsylvania.

The unprecedented expansion of proposed regulations by the EPA -- such as greenhouse gas regulations for stationary sources, more stringent ozone air quality standards, unachievable emissions limits on industrial and commercial boilers and several others  will cost manufacturers billions of dollars, lead to higher electricity prices and increase the cost of goods and services for consumers.

"Manufacturers already have invested billions of dollars to comply with federal regulations, but the EPA continues to propose hundreds of new regulations that will raise costs for all consumers, especially manufacturers, undermining their ability to create jobs and compete in the global marketplace," said NAM President and CEO Jay Timmons.

Manufacturers are job creators, and manufacturing is leading America's recovery. But the flood of regulations issued by the EPA will mean higher prices for energy and will impose enormous costs throughout the economy. When energy costs go up for manufacturers, they have less money to invest and to hire people. These mandates will make it tougher for businesses in America to compete in the global marketplace, and tougher for people to make ends meet.

The NAM is launching the campaign as Congress considers legislation to block the EPA's proposed regulation of greenhouse gas emissions. The Senate is expected to vote soon on an amendment by Sen. Mitch McConnell (R-KY) to prevent the EPA from regulating greenhouse gases from stationary sources under the Clean Air Act. The NAM is urging senators to support this amendment and believes it is an important first step in the battle against misguided and costly regulations that have been stifling economic growth and hindering industry's efforts to compete, innovate and grow. Earlier this month, the House Energy and Commerce Committee passed similar legislation with the Energy Tax Prevention Act, which is expected on the House floor in the coming weeks.

"At a time when America is rebounding from a serious recession, we need policies that help manufacturers by using incentives to create jobs rather than imposing regulations that create more uncertainty, diminish our competitiveness and discourage investment," Timmons said.

The NAM's TV and radio ads are the first phase of a sustained educational campaign about the EPA's excessive regulations and their effect on the U.S. manufacturing economy. To watch the ads and learn more about the damaging impacts of the EPA's proposed regulations, please visit .

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Top Story

NAM Steps up Pressure for 1099 Repeal. On March 29, the NAM sent the Senate its third key vote letter this year in support of an amendment offered by Sen. Mike Johanns (R-NE) to S. 493, the Small Business Innovation Research bill. This amendment is identical to H.R. 4, the Small Business Paperwork Mandate Elimination Act that passed the House earlier this month. Senate Majority Leader Harry Reid (D-NV) recently voiced support for the revenue offset in H.R. 4, which would repeal the burdensome 1099 reporting requirements included in last year's new health care law and scheduled to go into effect in 2012. At press time, Senate negotiations to reach agreement on amendments continued, with votes expected next week. If the Johanns amendment were to pass as-is, which is uncertain, there are reports that the Senate would act quickly to advance the amendment as legislation that the President would likely sign into law. The NAM continues to press for quick enactment of 1099 repeal, citing the punitive cost and time burden associated with delayed action-especially for small manufacturers. Details : Monica McGuire , (202) 637-3076.

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Human Resources Policy

EEOC Finalizes ADA Regulations. The Equal Employment Opportunity Commission (EEOC) has finalized long-pending regulations to implement the ADA Amendments Act of 2008, which strikes a fair balance for people with disabilities and employers by updating important law that prevents illegal discrimination against people with disabilities. The NAM worked with other leaders in the employer community, along with advocates from disability groups, to develop the ADA Amendments Act. The final rule issued last week takes into account many of the concerns expressed in the NAM's regulatory comment response and better reflects the initial agreements reached by the NAM and the disability community. While the regulations still contain several concerning elements, the final rule is much improved from the proposed regulations originally introduced. For more information, click here . Details : Joe Trauger , (202) 637-3127.

SECTORS Act Introduced. Sens. Sherrod Brown (D-OH) and Olympia Snowe (R-ME) and Reps. Todd Platts (R-PA) and Dave Loebsack (D-IA) introduced the Strengthening Employment Clusters to Organize Regional Success (SECTORS) Act in the Senate this week. The bill encourages grants for industry and sector partnerships to organize stakeholders connected to an industry and develop plans for growing that industry by focusing on building new workforce pipelines where skilled worker shortages exist. The bill also supports industry recognized, nationally portable certifications, such as the NAM-Endorsed Manufacturing Skills Certification system. Details : Joe Trauger , (202) 637-3127.

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Energy & Resources Policy

Senate to Vote on Measures to Curb EPA Overregulation . Votes on measures geared toward curtailing the Environmental Protection Agency's (EPA) regulation of greenhouse gas (GHG) emissions could begin this week in the Senate. Republican Leader McConnell's (R-KY) Energy Tax Prevention Act amendment to the SBIR/STTR Reauthorization Act of 2011 would block the EPA's authority to regulate GHG emissions from stationary sources under the Clean Air Act while keeping intact the GHG tailpipe standards for model years 2012-2016. In addition, three other amendments address GHG regulations-authored by Sens. John Rockefeller (D-WV), Max Baucus (D-MT) and Debbie Stabenow (D-MI). Of the various measures, the NAM supports Sen. McConnell's amendment as it provides the most certainty to the manufacturing community. The NAM is urging manufacturers to contact their legislators and ask them to support the measure. Details : Alicia Meads , (202) 637-3174.

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Infrastructure, Legal & Regulatory Policy

FAA Scheduled for House Floor Vote This Week. The House is preparing to move its four-year FAA Reauthorization and Reform Act of 2011 this week. Passage of the long-awaited FAA reauthorization in the House will allow important negotiations with the Senate to proceed on a final version of the authorization. The NAM supports Chairman John Mica's (R-FL) manager's amendment, which will address long-standing manufacturing concerns with an onerous Department of Transportation (DOT) rulemaking on the air transportation of lithium batteries. The rulemaking is awaiting final publication. The NAM strongly opposes an amendment offered by Rep. Bob Filner (D-CA) that will stall efforts to harmonize U.S. lithium battery transportation regulations with international safety standards by prohibiting the transportation of lithium metal batteries or cells on cargo aircraft. To read the NAM's key vote letter, click here . Details : Robyn Boerstling , (202) 637-3178.

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Tax, Technology and Domestic Economic Policy

NAM Weighs in with IRS on Medical Device Tax. The NAM sent a letter to the Internal Revenue Service (IRS) on Monday, March 28, regarding forthcoming regulations to implement the new excise tax on medical devices included in the health care reform law. While the NAM feels strongly that the new tax will stifle research, innovation and job growth, the NAM also recognizes the challenges the IRS faces in drafting guidance to implement this law. In the letter, the NAM urges the IRS to ensure medical devices that are of a type commonly bought by retail consumers for their individual use are exempt from the 2.3 percent medical device tax. Details : Dorothy Coleman , (202) 637-3077.

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Small and Medium Manufacturers Update

NAM Responds to OSHA Noise Proposal. While the Occupational Safety and Health Administration's (OSHA) proposal to fundamentally overhaul employer requirements to abate noise in workplaces has been withdrawn for now, the NAM continues to monitor the issue. Last week, the NAM filed comments with OSHA in response to the burdensome and costly proposed noise standards. The NAM estimates that implementation of the proposed standard would directly impose billions of dollars in additional compliance costs on the manufacturing sector and would be an excessive burden on small and medium-sized manufacturers. An NAM survey found that the proposal would cost manufacturers between $3,000 and about $10,000 per employee per year. Although the NAM has made considerable progress on this issue to date, the NAM remains vigilant of future efforts to bring back such a costly regulatory initiative. The comments are available here . Details : Joe Trauger , (202) 637-3127.

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Other News

Tell Your Manufacturing Story-Register Now for the NAM's Manufacturing Summit . Please join manufacturers from around the country at the NAM's third annual Manufacturing Summit in Washington, D.C., June 15-16, 2011. Manufacturers will meet with members of Congress and demonstrate the vital role of manufacturing in our nation's economy. As the new Congress considers action on a host of measures that will affect the business community, manufacturers in America must stand up and communicate the impact of proposed legislation on their bottom line. We have invited William Daley, chief of staff to President Barack Obama, and Sen. John Thune (R-SD), chairman of the Senate Republican Policy Committee, to participate as keynote speakers at the Summit . Please visit to reserve your spot today! Details : Colleen Vivori , (202) 637-3114.

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Questions or comments? Please contact Clare James Johnson at .

President and CEO: Jay Timmons
Senior Vice President, Membership:
LeAnne Wilson
Senior Vice President, Policy and Government Relations: Aric Newhouse
Senior Vice President, Communications: Erin Streeter

Managing Editor: Clare James Johnson

Copyright © 2011 National Association of Manufacturers



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