Capital Briefing

For the latest legislative updates and policy briefs, NAM members rely on their weekly Cap Briefing e-mail, which provides quick information on our top priorities in a dynamic format.

A Publication of the National Association of Manufacturers

February 9, 2012

This Week in Washington: Its Time for Congress to Get to Work

Both the House and the Senate are in session this week and next week before they take a break for the Presidents' Day recess. This presents an opportunity for the two bodies to come together and move forward on legislation that our country is depending on.

There is much to be done, and manufacturers must urge Congress to take action. There are four places policymakers can start:

First, as lawmakers discuss how to address the payroll tax cut extension, they also have a valuable opportunity to ensure the legislation includes language to address the Environmental Protection Agencys (EPA) harmful Boiler MACT regulations. To send a letter directly to your member of Congress and urge the inclusion of this important regulatory relief in the payroll tax extension, click here.

Second, a number of temporary tax provisions important to manufacturers expired at the end of 2011, including the R&D tax credit, the controlled foreign corporation look through rules and deferral for active financing. The on-again, off-again nature of these provisions injects even more uncertainty into business planning and slows down needed economic growth. Congress should act quickly to renew these tax provisions retroactive to January 1 and, at a minimum, through the end of 2012.

Third, Congress continues to debate a new transportation and energy bill. A comprehensive infrastructure bill is long overdue, but it must be long-term and must provide the certainty job creators need to hire and pursue projects. Improving our highways, bridges and tunnels and relieving congestion on the roadways will get Americans back to work immediately and maintain our competitiveness. The NAM also is pleased that the House legislation includes expanded domestic energy production. Access to affordable sources of energy is extremely important given that manufacturers use one-third of our nations energy supply.

Fourth, as a key component of an expanded domestic energy strategy, Congress must advance the Keystone XL pipeline. President Obama dealt a major blow to manufacturers, job creation and energy security last month when he formally rejected the construction of the pipeline. Click here to take action today. Tell President Obama that manufacturers are disappointed in his rejection of a shovel-ready project that would create 20,000 immediate construction and manufacturing jobs. In moving forward with the pipeline, our nation would develop its domestic energy supply, become energy independent and put tens of thousands of Americans back to work.

Its time for Congress to act. Gridlock and party negotiations have left Americans waiting for long-term solutions and policies that encourage growth and investment. Please reach out to your local representatives and senators and tell them what policies will help you and your company create jobs and expand.

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Hot Topic: Support for Boiler MACT Relief Grows

This week, 380 companies and associations sent a letter to all members of the House and Senate urging them to support the inclusion of the EPA Regulatory Relief Act of 2011 in the payroll tax extension package. The legislation (H.R. 2250/S. 1392) addresses the Environmental Protection Agency’s (EPA) harmful Boiler MACT regulations. It would stay all four Boiler MACT rules, give the EPA an additional 15 months to re-propose the rules, require the agency to develop achievable standards and extend the compliance time frame for existing boilers from three to five years. The legislation passed the House by a strong bipartisan vote in October 2011, and the Senate companion bill currently has 41 co-sponsors, 12 of which are Democrats. We need your help to get Boiler MACT legislation across the finish line. Contact your member of Congress in support of this important bill. Details: Alicia Meads, (202) 637-3174.

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Energy & Resources Policy

House Subcommittee Examines EPAs Costly Utility MACT Rule. On Wednesday, February 8, the House Energy and Commerce Committee’s Subcommittee on Energy and Power held a hearing on the impact of the Environmental Protection Agency’s (EPA) Utility MACT regulation on electricity costs. The regulation, finalized in December 2011, requires the installation of emission-control technologies by many coal-fired power plants over a relatively short time frame of three years. The EPA estimates that the rule will have an annual cost of $9.6 billion, making it one of the most costly rules in the history of the agency. Manufacturers use one-third of the energy consumed in this country and are extremely concerned that the regulation will increase electricity rates and cause grid reliability issues. Click here for the witness list and testimony. Details: Chip Yost, (202) 637-3175 and Alicia Meads, (202) 637-3174.

Congressional Push for Keystone Continues. On Tuesday, February 7, the House Energy and Commerce Committee passed the North American Energy Access Act (H.R. 3548) by a 33-20 margin. Supporters included three Democrats, Reps. Matheson (D-UT), Barrow (D-GA) and Ross (D-AR). H.R. 3548 gives the Federal Energy Regulatory Commission (FERC) authority to approve the Keystone XL pipeline permit and directs the FERC to make the decision within 30 days. The passage of the legislation out of Committee signifies continued congressional support for the pipeline, in spite of opposition from the Administration. There is a possibility H.R. 3548 will be taken up next week by the full House as part of a long-term transportation bill. The NAM continues to advocate for speedy approval of the pipeline to boost economic growth and allow the U.S. greater access to affordable energy. Contact the President and let him know you are disappointed with his decision to reject the permit. Details: Chip Yost, (202) 637-3175 and Alicia Meads, (202) 637-3174.

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Tax, Technology and Domestic Economic Policy

Bonus Depreciation Letter Urges Temporary Extension. The NAM signed onto a letter sent Thursday, February 2, from associations to the conferees of the payroll tax cut extension bill (H.R. 3630). The letter urges members of Congress to extend 100 percent bonus depreciation through 2012, which was included in the House-passed version of H.R. 3630. Currently, 50 percent bonus depreciation is in effect for 2012. Conferees continue to meet in an attempt to reach a conference agreement with the hope of completing action on a compromise bill by the end of the month. Details: Monica McGuire, (202) 637-3076.

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Manufacturers in the Courts

Major Alien Tort Suit Now Ready for Oral Arguments. On February 28, the Supreme Court will hear oral arguments in a landmark case that promises to determine whether corporations can be sued under the Alien Tort Statute, which grants federal courts jurisdiction to hear claims against parties that violate the “law of nations.” The statute has allowed a variety of foreign parties to sue American manufacturers for activities occurring in foreign countries and that are alleged to violate human rights. The NAM filed an amicus brief on Friday, February 3, supporting the view that corporate liability is not specifically and universally recognized under the customary international law of human rights, and that in any case liability for aiding and abetting an alleged legal violation requires that the defendant acted with a purpose to facilitate the violation. See Kiobel v. Royal Dutch Petroleum Co. Details: Quentin Riegel, (202) 637-3058.

State Implementation of EPA Greenhouse Gas Regulations Under Review. On Wednesday, February 8, the NAM and other members of the SIP/FIP Advocacy Group filed a main brief challenging the Environmental Protection Agencys (EPA) decision to take over various state enforcement activities with respect to greenhouse gas regulation. The agency acted rapidly at the end of 2010 to short-circuit the normal three-year period that states have to submit State Implementation Plans (SIPs). The litigation challenges the EPAs action as ignoring Clean Air Act notice-and-comment requirements as well as its own rules. It sought to coerce states to consent to greenhouse gas regulation through the threat of a construction moratorium. Oral arguments in the case have not yet been scheduled. See SIP/FIP Advocacy Group v. EPA (D.C. Cir.). Details: Quentin Riegel, (202) 637-3058.

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NAM in the News

Making It Easier to Make It in America On Monday, February 6, NAM President and CEO Jay Timmons took to Capitol Hill as an invited guest at a jobs and innovation forum entitled, “Making It Easier to Make It in America.” Hosted by the House Energy and Commerce Committee’s Subcommittee on Commerce, Manufacturing, and Trade, the forum brought together representatives from U.S. businesses and members of Congress to discuss opportunities to strengthen the manufacturing sector. Timmons shared the current state of manufacturing in the United States—including manufacturers’ challenges and successes—and outlined the NAM’s comprehensive Manufacturing Renaissance document. Timmons also weighed in on taxes, trade and the critical need for Washington to develop a coherent “all-of-the-above” energy policy. “Energy costs are, outside of labor, the number one cost of running a manufacturing business,” he said.

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Upcoming Events

NAM President and CEO to Talk Energy and Jobs at CERA Week 2012. NAM President and CEO Jay Timmons will speak on “Energy and the Economy—The Impact of Energy Investment on Employment” at the 31st annual IHS Cambridge Energy Research Associates (CERA) executive conference, March 5-9, in Houston, Texas. Joining Timmons on the panel at CERA Week 2012 will be Louisiana Secretary of Natural Resources Scott Angelle; Aspen Technology, Inc. Senior Vice President Blair Wheeler; and IHS Global Insight Vice President John Larson. Recognized as the world’s premier energy conference, CERA Week 2012 will feature speakers from many NAM member companies. For more information, click here. Details: Laura Narvaiz, (202) 637-3104.

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Get Involved

NAMs 2012 Public Affairs Conference: Your Opportunity to Make a Difference. Register now for the NAM's 2012 Public Affairs Conference, April 1-3, at the Turnberry Isle Miami in Aventura, Fla. This premier event is a key opportunity for manufacturing leaders to emphasize their priorities on regulations, energy and labor issues in this critical election year. Come prepared to hear valuable perspectives from leaders in the industry and share your own suggestions as we collaborate on a plan for action. Click here for more information and to register. Details: Dana Hartwig, (202) 637-3116.

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Questions or comments? Please contact Clare James Johnson at cjohnson@nam.org.

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

Managing Editor: Clare James Johnson