Energy

The Biden administration has given its approval of the Willow oil-drilling project in Alaska, reports The Wall Street Journal (subscription).

The gist: “The green light means Houston-based ConocoPhillips can start construction on its roughly $7 billion project in Alaska’s National Petroleum Reserve, which the company expects will produce about 180,000 barrels of oil a day at its peak—equivalent to about 40% of Alaska’s current crude production.”

• “The Interior Department said it would allow drilling on three of the five drill sites proposed by ConocoPhillips, which announced the Willow discovery in 2017.”

The NAM’s take: The NAM expressed its support of the project to the administration last summer, pointing out that while manufacturers make full use of renewable energy sources, they also need oil and gas.

• “Manufacturers know that we must continue developing reliable sources of American energy and can do that in a way that still allows us to achieve critical environmental goals,” said NAM President and CEO Jay Timmons today.
• “The Willow project is one such opportunity, which is why we advocated for its approval. Projects like this strengthen manufacturing’s competitiveness and are essential to bolstering domestic supply chains and job creation.”

NAM in action: The NAM has long been a vocal supporter of enacting permitting reform and making way for large-scale energy and infrastructure projects. Below, you can watch Timmons discuss the importance of overhauling the system during his 2023 State of Manufacturing Address:

The last word:  Timmons recently hammered home the need for reform in a message to several U.S. House committees, saying, “Some of the biggest obstacles preventing manufacturers—and therefore the entire American economy—from reaching our full potential are the permitting delays, red tape and complicated bureaucracy that have plagued us for decades.”

NAM President and CEO Jay Timmons has been making the most of his time on the road during the Competing to Win Tour, delivering a strong message to congressional leaders about top manufacturing priorities. He did so again yesterday on permitting reform with congressional leaders in Washington:

• “Some of the biggest obstacles preventing manufacturers—and therefore the entire American economy—from reaching our full potential are the permitting delays, red tape and complicated bureaucracy that have plagued us for decades,” he told the leadership of several House committees.

He went on to cite a number of different areas in which permitting reform is desperately needed, including . . .

Energy: Permitting reform is crucial to almost every sector of energy manufacturing, from oil and gas all the way to nuclear and clean energy technologies.

• “For example,” Timmons noted, “the siting of and infrastructure for hydrogen power generation and transportation and for advanced, small modular and micro-nuclear reactors have progressed far too slowly.”
• “Manufacturers depend on access to reliable and affordable energy to expand, which is why we support reforms that would foster transparent, streamlined and timely federal regulatory processes for the siting, permitting and licensing of energy delivery infrastructure of all types,” he continued.

Transportation: Manufacturers also need railroads, highways, airports and ports to run their operations and get their products out the door.

• “Yet obtaining permit approvals for these projects often takes years, especially when reviews are piecemeal and duplicative,” Timmons pointed out. “[M]any companies are waiting on the sidelines because transportation infrastructure construction moves too slowly—or not at all.”
• “To ensure the broad and beneficial impact of [the bipartisan Infrastructure Investment and Jobs Act of 2021] … it is critical to clear permit backlogs and ease processing timelines,” he said.

Resource development: Manufacturers prioritize sustainability, Timmons noted, but “restricting access to America’s abundant natural resources hinders our ability to strengthen domestic supply chains.”

• “The inconsistent administration of critical mineral policies, for example, has limited our ability to use a wide range of resources that lie on and beneath federal lands—resources that are critical to producing everything from cars to medical devices,” he added.
• “Streamlining resource permitting and leasing policies will help stabilize manufacturing supply chains, control costs for consumers, reduce our reliance on foreign countries and create jobs in the U.S.”

Environmental standards: Manufacturers have worked steadily to improve U.S. air quality, helping to “lead our country to the cleanest air in the modern world,” said Timmons.

• “Unfortunately, when federal agencies continually revise standards before current standards are met and before states have implemented prior mandates, they create unpredictability”—which may mean that new manufacturing facilities get built in other countries instead, where they don’t face as rigorous standards.
• However, if Congress makes regulations more predictable and consolidates review processes, the U.S. “can continue to build on its strong record of environmental stewardship by boosting domestic manufacturing, which is environmentally cleaner than international competitors,” Timmons concluded.

Congressional intent: Congress should make sure that permitting reform isn’t just passed, but also implemented as easily as possible, Timmons advocated.

• It should conform to “on recent and future statutory streamlining efforts such as One Federal Decision,” while making sure federal agencies don’t duplicate each other’s efforts and waste time.

The last word: “Permitting affects every aspect of our lives—from our economic security to our national security,” said Timmons. “[I]f we seize this opportunity to lead, there is no limit to what manufacturers in the United States can accomplish—for the good of our people and for the good of the world.”

Manufacturing has a leading role in the U.S. economy—but there is still a great deal more to do. That was the message at this year’s NAM State of Manufacturing Address from NAM President and CEO Jay Timmons.

Timmons spoke to a gathering of manufacturing team members and the media at Husco in Waukesha, Wisconsin. In his remarks, he laid out the NAM’s view of where the industry is and where it’s going.

The program: The event began with a message from Kurt Bauer, president and CEO of Wisconsin Manufacturers & Commerce, followed by an introduction from NAM board member Austin Ramirez, president and CEO of global engineering and manufacturing company Husco.

• “Wisconsin manufacturers contribute to the vitality of our state through their innovation, productivity and commitment to customer satisfaction,” said Bauer. “While we face many challenges, we are also in the enviable position of controlling our destiny—as long as we work together to create a shared vision of prosperity and an action plan to achieve it.”
• “We are here to shine a light on the amazing, life-changing work that manufacturers do every day,” said Ramirez. “We are the backbone of the American economy, and we are proud of it.”

The state of manufacturing: Timmons spoke about Russia’s invasion of Ukraine, the importance of the manufacturing industry’s support for the Ukrainian people and the larger struggle between freedom and tyranny.

• “Despite everything happening around us, like the threat of a recession and global conflict, manufacturers are still leading the way forward,” said Timmons.
• “And although our industry and our country will need to make audacious and sometimes uncomfortable changes to adapt to economic, political and global challenges … I’m confident in reporting that the state of manufacturing in America remains steadfast and resolute.”

Manufacturing solutions: Timmons cited a variety of manufacturing challenges, then detailed the NAM’s plans to fight for manufacturers across the United States.

• Supporting immigration: “For so many manufacturers in America right now, there are more open jobs than there are people to fill them,” said Timmons. “One of the many ways we fill those jobs and keep our economy moving is welcoming immigrants into our workforce … just like we have in the past to build a stronger, more prosperous America.”

• Promoting permitting reform: “Permitting reform means making it easier to get permission to build that new road or power plant, or for manufacturers to build new facilities,” said Timmons. “If Washington could just cut through the bureaucracy and streamline processes, like you do in your businesses every single day, we could do more for this country.”

• Fighting for tax fixes: “The NAM is determined to get Congress to restore incentives for R&D and get our business tax rates and structure back on track to enable us to compete globally,” he said. “And then, let’s lock in competitive rates for small businesses … so that you can plan confidently for the future.”

• Competing with China: “If we’re going to counter China, then we must hold China accountable for the trade commitments it has already made to the U.S.,” said Timmons. “And we have to forge ambitious, cutting-edge trade agreements with our allies. Other countries aren’t waiting around. So, let’s think big. And let’s be bold.”

• Pushing back on new EPA rules: “We’re going to tell the EPA that manufacturers are already leading [in cleaning] our air,” said Timmons. “The government shouldn’t enact rules that, however well-intentioned, would make it more difficult to achieve our environmental goals, slow our economic growth and push us closer toward recession.”

The last word: “History shows us that as long as manufacturers lead the way, America and our democracy will remain that beacon of freedom and hope for people around the world,” said Timmons. “Manufacturers have been, and always will be, in word and deed, the arsenal of democracy. And working together, I know we will keep making this a manufacturing decade.”

Manufacturers have long led the way in efforts to reduce air pollution and improve air quality. Yet, new proposed regulations from the federal government will work against these efforts instead of bolstering them, stymying critical progress and destabilizing economic growth at a time when both are more important than ever.

The challenge: The Environmental Protection Agency is considering a new rule that would impose stricter air standards on particulate matter known as PM2.5 (i.e., particles that measure two and a half micrometers or less in diameter). This rule would enact significant top-down restrictions, forcing manufacturers to change their operations abruptly and without any support.

The reality: For years, manufacturers across all sectors have been developing smart, innovative ways to use energy, water and other resources more sustainably—all while boosting economic growth and creating good jobs at the same time.

• Today, manufacturing in the U.S. is cleaner and greener than at any other time in history, largely due to a revolution in how manufacturers produce, use and recycle energy and resources.
• Across the board, levels of major pollutants have declined dramatically over the past few decades. Thanks to existing regulations and a culture of innovation, the U.S. is far outpacing global competitors in environmental stewardship.

By the numbers: According to the EPA, the U.S. reduced six common pollutants covered by National Ambient Air Quality Standards, including PM2.5, by 78% between 1970 and 2020. In fact, PM2.5 levels alone have dropped a full 44% since 2000.

The impact: These new regulations could be devastating for manufacturers and for the climate. Here are just a few of the negative repercussions:

• An additional regulatory burden on businesses will drain resources from innovative manufacturers, posing additional hurdles to the investment in research and development that fuels progress in energy efficiency and climate action.
• Making permitting harder could also jeopardize new clean energy projects that America needs to address climate change.
• The standards will hinder onshoring, resulting in continued manufacturing abroad—which is less clean than manufacturing in the U.S. The EPA’s proposal undercuts U.S. competitiveness and will not further the goal of global emissions reduction.
• New regulations could damage an already-slowing economy, increasing costs and constraining job growth at a time when Americans are grappling with record inflation.

Our view: Rather than imposing new and unnecessary obligations on manufacturers, the federal government should focus on enforcing the strong regulations that are already in place and give manufacturers the space to find better solutions.

• “The EPA’s announcement . . . [about reconsidering] the PM 2.5 standard will only further weaken an already slowing economy,” said NAM President and CEO Jay Timmons. “Let manufacturers do what they do best: innovate and deploy modern technologies to protect the environment, while creating jobs and strengthening the economy.”

NAM in action: The NAM is rallying manufacturers to speak out against the EPA’s proposal and calling on Congress to oppose these harmful regulations.

• Manufacturers can show their support by sending an email to decision makers in Washington, explaining the real impact of this damaging proposal and urging them to stand up against unnecessary regulations.

Join in: There is an EPA hearing to discuss the proposal on Feb. 21. To participate, be sure to sign up soon—the registration deadline is Feb. 16.

Washington, D.C. – Following the release of the Environmental Protection Agency’s proposed new Waters of the United States rule, National Association of Manufacturers Senior Vice President of Policy and Government Relations Aric Newhouse issued the following statement:

“The EPA is unnecessarily rewriting critical permitting standards and tossing aside Supreme Court precedent in the process. This moving target frustrates efforts to expand domestic manufacturing and create well-paying jobs. Manufacturers cannot invest with confidence when the rules keep changing.

“Manufacturers need a sensible WOTUS proposal that provides permitting certainty and allows the industry to continue leading on environmental stewardship.”

In 2023, the Supreme Court is expected to issue a decision in Sackett v. EPA, a case that will determine the jurisdiction of the Clean Water Act and all regulations within its authority. Previously, the NAM submitted multiple sets of comments regarding the 2015 WOTUS rule to better inform policymakers. In addition, the NAM supported the 2017 executive order instructing the EPA to rescind the rule, and the NAM Legal Center had been in active litigation against the rule starting in 2015. The legal battle included a unanimous victory for the NAM at the U.S. Supreme Court on a key procedural issue, and in 2019, federal judges invalidated the rule.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – Following consideration today of a permitting amendment in the U.S. Senate, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Red tape and permitting delays have plagued the manufacturing industry for decades, and the need for reform has only grown more urgent in recent years. Manufacturers have long called for Congress to repair the broken permitting process to minimize delays and reduce needless litigation that stands in the way of energy and resources projects and other investments. That will ensure we can get to work quickly on the investments that the bipartisan infrastructure law and the CHIPS and Science Act make possible. It will also ensure manufacturers have access to reliable and affordable energy while the grid evolves and as we work to improve air quality and reduce greenhouse gases.

“Ultimately, permitting reform effects every part of the American supply chain—from modernizing energy projects to building new manufacturing facilities. Today’s Senate vote, while unsuccessful, should serve as a step toward true bipartisan reform. Manufacturers appreciate the efforts of Sens. Joe Manchin and Shelley Moore Capito to push this priority forward, and we will continue to work with both chambers to achieve this goal.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Though some midterm races remain uncalled, the NAM is preparing the next phase of its competitiveness agenda. Last Thursday, it offered members a breakdown of the election results so far and what they mean for manufacturing policies and priorities in the United States.

The briefing: Hosted by NAM Vice President of Government Relations Jordan Stoick, the conversation provided members with an overview of the NAM’s key issue areas, presented by several of the NAM’s policy experts.

• Tax: According to NAM Managing Vice President of Tax and Domestic Economic Policy Chris Netram, the NAM is pushing Congress to approve key tax incentives for manufacturers in a year-end package, including the reversal of a harmful change in the treatment of R&D expenses that took effect earlier this year and an extension of 100% bonus depreciation. Beyond the lame-duck session, the NAM will be fighting to make tax reform permanent, he added.

• Trade: According to NAM Vice President of International Economic Affairs Policy Ken Monahan, the NAM will be advocating reauthorization of the Miscellaneous Tariff Bill. Going forward, priorities will include guarding against the TRIPS waiver at the World Trade Organization (which would harm manufacturers’ intellectual property rights), defusing regulatory and market access challenges in Mexico and promoting a robust market-opening agenda overall.

• Energy: NAM Vice President of Energy and Resources Policy Rachel Jones said energy security is likely to remain a key focus of policymakers. She highlighted permitting reform as a possible area for bipartisan progress and noted that implementation of new climate incentives and programs will likely come with heightened oversight from the new Congress next year.

• Infrastructure: NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling noted that supply chain challenges are the most difficult issue facing manufacturers at the moment. She also provided an update on rail negotiations, addressed the National Labor Relations Board’s robust pro-labor agenda and spoke out in favor of the NAM’s commonsense immigration approach, among other issues.

The outlook: “The good news is that regardless of the outcome, the NAM remains uniquely positioned to continue to effectively advocate on your behalf with the Biden administration and with both parties, whoever’s in control on Capitol Hill,” said Stoick.

• “We’ve worked successfully with the administration and the current Congress over the past two years to achieve important policy wins on things like infrastructure and the CHIPS semiconductor and competition bill. And we’ve been successful at pushing back on harmful policies and overreach, including stopping what should be considered some of the worst parts of the tax increases that were proposed over the past two years.”

As the world’s leading energy producer, the U.S. is poised for long-term energy independence and competitiveness in the global marketplace—but only with the right policies in place.

The right recipe: That’s the theme of the NAM’s energy and natural resources advocacy in its policy blueprint, “Competing to Win,” and it’s the recipe for continued success for all manufacturers in the U.S.

• Manufacturers lead the way in finding new means of harnessing our abundant sources of energy, but to make long-term investments and continue to innovate, policymakers should draw up and stand by a comprehensive framework for a secure energy future.

Keep us competitive: The NAM calls on legislators to take specific actions to keep energy manufacturing in the U.S. competitive. These include:

• Streamlining regulations that slow access to our rich supply of energy, minerals and other natural resources;
• Expediting the regulatory and legal processes involved in developing clean energy technologies and promoting energy and energy technology trade;
• Fixing the broken permitting process for energy production and infrastructure projects;
• Promoting access to federal lands and waters for environmentally responsible mineral, energy and resource exploration;
• Supporting measures to enhance development and deployment of energy-efficient technologies;
• Backing domestic critical mineral extraction, recycling and processing; and
• Expanding the useful life of critical minerals components using federal programs and funds.

Focus on the environment: Energy produced in the U.S. is cleaner and more responsibly sourced than energy produced in other nations.

• When U.S. policies fail to encourage production here at home, they encourage production in other parts of the world, where there is far greater adverse impact to the environment.

Security through innovation: Sound, thorough and competition-focused energy policy will give energy manufacturers in the U.S. the stability they need to invest for the long term.

• Innovation, energy security and greater affordability—not just for the U.S., but for other countries as well—will follow.

The last word: “The future of the manufacturing industry and our country’s resource security rely on clarity and certainty from policymakers that strengthens our competitiveness,” said NAM Vice President of Energy and Resources Policy Rachel Jones.

• “With a renewed commitment to increasing domestic energy production and delivery, to focusing on critical mineral and material supply chains and to advancing new technologies, the United States can continue to lead the world for decades to come.”

Washington, D.C. – Following President Biden’s call for a windfall tax on America’s energy producers, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Raising taxes on American energy manufacturers is dangerous and destructive for the American people and the manufacturers who depend on access to reliable energy. It would disrupt domestic supply at a time of severe geopolitical uncertainty. Indeed, history has shown that this is a failed policy that could lead to more imports and even higher prices.

“Manufacturers have provided real solutions and specific recommendations for improving energy security and taking an all-of-the-above approach to developing all forms of American energy. Manufacturers will continue doing everything in our power to be part of the solution, and we hope our elected officials will too.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – Ahead of the midterm elections, the National Association of Manufacturers released its policy roadmap, “Competing to Win,” a comprehensive blueprint featuring immediate solutions for bolstering manufacturers’ competitiveness. It is also a roadmap for policymakers on the laws and regulations needed to strengthen the manufacturing industry in the months and years ahead.

With the country facing rising prices, snarled supply chains and geopolitical turmoil, manufacturers are outlining an actionable competitiveness agenda that Americans across the political spectrum can support. “Competing to Win” includes the policies manufacturers in America will need in place to continue driving the country forward.

“‘Competing to Win’ offers a path for bringing our country together around policies, shared values and a unified purpose,” said NAM President and CEO Jay Timmons. “The NAM is putting forward a plan filled with ideas that policymakers could pursue immediately, including solutions to urgent problems, such as energy security, immigration reform, supply chain disruptions, the ongoing workforce shortage and more. Manufacturers have shown incredible resilience through difficult times, employing more workers now than before the pandemic, but continued resilience is not guaranteed without the policies that are critical to the state of manufacturing in America.”

The NAM and its members will leverage “Competing to Win” to shape policy debates ahead of the midterm elections, in the remainder of the 117th Congress and at the start of the 118th Congress—including in direct engagement with lawmakers, for grassroots activity, across traditional and digital media and through events in key states and districts as we did following the initial rollout of the roadmap in 2016.

The document focuses on 12 areas of action, and all policies are rooted in the values that have made America exceptional and keep manufacturing strong: free enterprise, competitiveness, individual liberty and equal opportunity.

Learn more about how manufacturers are leading and about the industry’s competitiveness agenda at nam.org/competing-to-win.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org