Energy

Energy company Equinor, in partnership with ConocoPhillips, Shell and Total, is looking into the possibility of building the world’s largest floating offshore wind farm, according to POLITICO Pro’s CLIMATEWIRE (subscription).

What’s going on: Equinor said that “Trollvind,” which would be constructed off the coast of Bergen, Norway, “would have an installed capacity of about 1 gigawatt and would produce 4.3 terawatt-hours annually.”

• “The companies are aiming to make the installation economically feasible by buying as much energy as it produces and are targeting a final investment decision next year to bring the installation online in 2027.”

Why it’s important: The announcement comes as many energy companies look increasingly to offshore wind, which is set “to develop rapidly through the end of the decade.”

• Floating offshore installations such as the planned Trollvind allow for energy harvesting in deep waters where installing fixed-foundation turbines is not feasible, opening up many more areas of the water to wind capture.
• “The Global Wind Energy Council (GWEC) forecasts that floating offshore wind capacity will reach 16.5 GW by 2030, according to a recent report published by GWEC and sponsored by Shell.”

A call to U.S. action? “This continued advancement begins unlocking the technology and supply chain to build the new industry,” Business Network for Offshore Wind Director of Coalitions and Strategic Partnerships Sam Salustro told the publication.

• “[T]here is still a need for coordination between the states and federal government to ensure we have the infrastructure to support floating [wind] and can support our suppliers.”
• The West Coast leads the U.S. in floating wind-farm development.

The NAM’s take: “This announcement is part of a much larger trend we are seeing in the U.S. and around the globe,” said NAM Director of Energy and Resources Policy Chris Morris. “The NAM has been a leader in ensuring all states that want to pursue offshore wind options can. Earlier this year, we urged policy makers to repeal the 10-year moratorium on offshore wind leasing off the coasts of North Carolina, South Carolina, Georgia and Florida. We will continue to push for policies that provide diverse, secure energy options for manufacturers.”

The U.S. needs a unified climate-change strategy that will strengthen our energy security while empowering manufacturers, the NAM told the House of Representatives’ Energy, Climate and Conservation Task Force this week.

What’s happening: The Republican task force is one of seven recently created by House Minority Leader Kevin McCarthy (R-CA) to enact targeted policy solutions to current challenges and guard against future crises.

• Among these are rising energy prices, supply chain instability and a lack of critical minerals—all dilemmas that can be fixed through sound policy, NAM Vice President of Energy and Resources Policy Rachel Jones told the task force.

What can be done: “We welcome the ECC Task Force’s proposals that will address current challenges, including increasing domestic energy production; stabilizing and securing supply chains—particularly domestic production and processing of critical materials, minerals and chemicals; permitting reform that provides regulatory certainty for the development and deployment of projects; and innovation policies that incentivize an all-of-the-above energy approach rather than picking winners and losers,” Jones said.

Why it matters: Jones urged task force members to seek solutions found in the NAM’s comprehensive climate blueprint, The Promise Ahead, as well as its supply chain recommendations and energy and environmental policy agendas.

• Jones stressed the need for a unified domestic and global approach to tackling climate change while strengthening U.S. energy security.

Manufacturers matter: Jones also hammered home the importance of including manufacturers in the conversation about climate and energy fixes.

“An agenda for the future must recognize manufacturers as the solution to emerging environmental challenges and build on the strong steps manufacturers have already taken to become more sustainable and tackle climate change; apply sound science and evidence-based approaches in new proposals; and appropriately balance the United States’ economic and environmental interests so that achieving one goal does not mean ignoring the other.”

Policymakers can help alleviate the pain Americans are feeling at the pump and elsewhere—but by increasing domestic energy production, not through ill-conceived legislation, the NAM told U.S. House leadership this week.

Missing the mark: On Thursday, the House narrowly approved a measure that “gives the President the power to issue a declaration making it unlawful for energy companies to increase prices that are ‘unconsciously excessive,’ and authorizes the FTC to enforce those violating the act,” according to CNN.

• “[M]anufacturers oppose H.R. 7688, the Consumer Fuel Price Gouging Prevention Act; it misses the mark,” NAM Vice President of Energy and Resources Policy Rachel Jones wrote to the House leaders on Thursday. She added that price gouging is already illegal in most states and comes under Federal Trade Commission investigation.
• The new measure “does nothing to address the real drivers of rising energy costs and only adds additional regulatory red tape that could drive prices even higher,” Jones continued.

What will work: Instead, legislators should focus on increasing production of energy here at home, which will lower inflation and pump prices, as well as make the U.S. more competitive globally, Jones wrote.

“That starts with opening our diverse resources on federal lands, approving responsible exploration and production, supporting sustainable permitting and quickly building out more energy infrastructure.”

Policymakers can help alleviate the pain Americans are feeling at the pump and elsewhere—but by increasing domestic energy production, not through ill-conceived legislation, the NAM told U.S. House leadership this week.

Missing the mark: On Thursday, the House narrowly approved a measure that “gives the President the power to issue a declaration making it unlawful for energy companies to increase prices that are ‘unconsciously excessive,’ and authorizes the FTC to enforce those violating the act,” according to CNN.

• “[M]anufacturers oppose H.R. 7688, the Consumer Fuel Price Gouging Prevention Act; it misses the mark,” NAM Vice President of Energy and Resources Policy Rachel Jones wrote to the House leadership on Thursday. She added that price gouging is already illegal in most states and comes under Federal Trade Commission investigation.
• The new measure “does nothing to address the real drivers of rising energy costs and only adds additional regulatory red tape that could drive prices even higher,” Jones continued.

What will work: Instead, legislators should focus on increasing production of energy here at home, which will lower inflation and pump prices, as well as make the U.S. more competitive globally, Jones wrote.

• “That starts with opening our diverse resources on federal lands, approving responsible exploration and production, supporting sustainable permitting and quickly building out more energy infrastructure.”

Washington, D.C. – National Association of Manufacturers Chief Legal Officer Linda Kelly issued the following statement in response to California Attorney General Rob Bonta’s announcement of an investigation into fossil fuel and petrochemical industries:

“Not every societal problem demands a state attorney general investigation or adversarial legal process. In fact, anyone who understands the manufacturing sector would know that we are the solution here. Manufacturers are pioneering the technologies, processes and products, including advanced recycling, that are needed to protect our environment, improve sustainability and move toward a circular economy.

“Plastics play a vital role in modern life and improving quality of life. Solutions to waste issues require collaboration with government, consumers and manufacturers. Manufacturers are ready to be collaborative partners with anyone who shares our commitment to a healthier environment.”

-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 12.5 million men and women, contributes $2.71 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.

Erika Anderson didn’t always know she wanted to be an engineer. In fact, for most of her childhood, it wasn’t a career path she had even heard about.

• “I didn’t know what engineering was until my senior year in high school,” said Anderson. “I thought an engineer was a train driver, and nobody told me differently.”

A moment of truth: During her senior year, Anderson was told to research the major she wanted to explore after high school. She searched online, looking for careers for people who liked math and science—and the first thing that came up was engineering.

• “It was all about people who like a challenge; people who are lifelong learners,” said Anderson. “And as I kept reading, I kept hearing myself in this description. People had always said, you’re smart, you should be a doctor or a lawyer. But nobody ever said engineer.”

Her journey: At Spelman College and the Georgia Institute of Technology, Anderson studied mathematics and mechanical engineering, respectively, while working for GE Aviation and NASA. But it was during a semester spent working at ExxonMobil that she found her passion.

• “ExxonMobil was challenging, and I absolutely loved it,” said Anderson. “I loved the boots, the hard hats, getting my hands dirty. I was able to go out into the field, see all the equipment. I was in awe. I fell in love with it.”

Her job: On her last day in the office during her program at ExxonMobil, the company offered Anderson a full-time job. Today, she’s in her eighth year, working as both the reliability engineer and the reliability coordinator in Baytown, Texas. For ExxonMobil, those are critical roles, tasked with ensuring that the company’s equipment keeps functioning as designed. The way Anderson explains it:

• “Your car comes with a manual and it tells you when you’re supposed to change your oil or rotate your tires. And someone has to figure out how long that oil or those tires can run. I’m not dealing with cars, but I’m dealing with heat exchangers, compressors and pumps. I ensure that this equipment works, that it works reliably, and that we’re making repairs at an interval that keeps your equipment working as it should.”

Making a difference: As a Black woman in manufacturing, Anderson is used to being different from the people around her. She has found herself confronting stereotypes and preconceived notions about who she is. It hasn’t always been easy, but she’s doing vital work—and ensuring that other young women have the opportunity to follow their passions.

An example to others: Anderson was recently recognized by The Manufacturing Institute, the workforce development and education partner of the NAM, as a 2021 STEP Award Emerging Leader. The award is presented to women leaders in science, technology, engineering and production careers who exemplify leadership within their companies and in manufacturing in general.

• She’s also been featured in a book called Everyday Superheroes: Women in Energy about women in different fields in the energy industry; a TV show on CBS highlighting women in STEM; and a project by The Smithsonian and IF/THEN to put up 120 3D-printed statues of women trailblazers in Washington, D.C.

Advice for others: Anderson is an advocate for other women who are considering a career in manufacturing. She encourages women to find mentors, build a network and, above all, be confident.

• “Self-doubt is real, and sometimes, we can be our own biggest critics,” said Anderson. “We have to understand that we are excellent. We are great. And at the end of the day, for any woman coming to this industry—if you’re even thinking about it—there’s something in you. If it were easy, everyone would be doing it.”

The last word: “My grandmother always told me: you’ve got to get comfortable with being uncomfortable. The only way things will change is by having more people like me in the room. We are just as capable as anyone else, and whatever preconceived notions that may exist, I am here to kick those doors down.”

Washington, D.C. – Following President Joe Biden’s order to release 1 million barrels of oil per day from the Strategic Petroleum Reserve and to secure American production of critical materials, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Manufacturers are encouraged to see President Biden’s continued focus on taming inflation and addressing the energy concerns stoked by Vladimir Putin’s war on Ukraine and supply chain disruptions around the world.

“Manufacturers strongly support President Biden’s actions to secure American production of critical minerals and materials. This has the potential to be a game-changer, not only for developing clean energy but also for other uses that will help to address the supply chain challenges precipitated by the COVID-19 pandemic and further compounded by the war in Ukraine. Yesterday, I also met with Commerce Secretary Raimondo, Australian Trade Minister Tehan and leading manufacturers to discuss strategies for supporting critical mineral supply chains. Manufacturers know there is not a quick solution, and we need more of this type of bold, collaborative, long-term leadership to strengthen our energy security.

“The release from the Strategic Petroleum Reserve may provide relief at a time when manufacturers and American families are all coping with higher energy prices, but this is only a very temporary fix. It doesn’t deliver the long-term energy security that America deserves—the confidence that comes from producing more energy from all sources here in the United States.

“Manufacturers are pleased to hear the President call for increasing domestic oil and gas production and are counting on him to follow through on his support. However, the ‘use it or lose it’ provision may sound catchy and even be well-intentioned, but it fundamentally misunderstands the way that energy exploration, extraction and production works in reality. It would instead undermine our ability to produce American energy.

“We remain committed to working with the administration and leaders in both parties to help lead America through these ongoing crises—and deliver for the American people.”

-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 12.5 million men and women, contributes $2.57 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector 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. – Following Sen. Elizabeth Warren’s (D-MA) calls for a new tax targeting America’s energy companies shortly after the new sanctions on Russian energy imports, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Our country is sacrificing to save the Ukrainian people, and this is a blatant political ploy to exploit a crisis to enact an extremist agenda. American policymakers should be singularly focused on saving the people of Ukraine and ending a dictator’s expansionist ambitions, instead of attacking American businesses that are doing all we can to support our government’s efforts to bring about peace.”

-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 12.5 million men and women, contributes $2.57 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector 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. — Following President Joe Biden’s decision to release 50 million barrels from the Strategic Petroleum Reserves, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Today’s action is, unfortunately, just a band-aid. Tapping the Strategic Petroleum Reserve won’t solve the underlying problems. While we are pleased that President Biden is focusing on the rising cost of fuel, this is not a sustainable solution.

“A true energy strategy would strengthen our energy independence, enhance manufacturers’ competitiveness and alleviate many of the other supply chain challenges facing our nation. Instead of asking OPEC and Russia to fill the void, we should let American energy workers take the lead, setting an example with America’s high standards for protecting workers and the environment. Manufacturers call on the Biden administration to work toward real, longer-term solutions for the good of our families, industry and economy.”

-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 12.5 million men and women, contributes $2.5 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector 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.

Spring is the season of SCOTUS, when the court releases its most important decisions for the year. This year, the NAM is awaiting decisions on a number of cases in which it participated as an amicus—a “friend of the court”—and has already received one significant victory: a ruling in favor of energy companies on a procedural issue regarding climate lawsuits.

We spoke to two of the NAM’s legal experts—Vice President of Legal and Deputy General Counsel Patrick Hedren and Senior Litigation Counsel Erica Klenicki—to get the overview of this busy season for the NAM’s Manufacturers’ Center for Legal Action.

Energy victory: The court ruled in favor of the energy companies in a suit brought against them by the city of Baltimore. As Hedren puts it, the case hinged on a “wonky procedural issue,” but the crux was this: where should nationwide issues be litigated, particularly if the federal government played some role?

• The energy companies and the NAM argued that climate change is just such a nationwide and even global issue and simply cannot be decided by state courts. The nature of the issue makes access to federal courts paramount.
• SCOTUS’s ruling didn’t address the underlying climate concerns, but it did provide easier access to federal courts for these types of disputes, say Hedren and Klenicki.

Class actions: The NAM is awaiting the Supreme Court’s decisions on several other cases in which it participated, including TransUnion LLC v. Ramirez, which deals with a key issue for large manufacturers and other companies: class-action lawsuits.

• As the NAM’s legal team notes, these cases are often brought by attorneys looking for a payday, even when the vast majority of the “class” in question, though technically affected, was not really injured.
• That’s what happened in this case. The class included people whom TransUnion mistakenly identified as potential matches for individuals on the Treasury Department’s terror watch list, which could have resulted in denials of loans.
• Though the lead plaintiff did allegedly suffer harm due to this error, most of the 8,000-plaintiff class were entirely unaware of the error. The company had fixed its mistake before those plaintiffs were harmed.

To put it simply, the rules for class actions are far from clear, say Hedren and Klenicki. The courts often award damages or settlement money to uninjured people who could not have brought a case on their own. And the only winner in this system is the plaintiffs’ bar. That’s why the NAM is asking SCOTUS to clarify the rules for bringing a class action and ensure that trial courts are applying rigorous standards before certifying a class.

Free speech: The NAM is also awaiting the court’s decision on Americans for Prosperity Foundation v. Becerra, a case concerning whether the government can force an organization to disclose the identities of its donors. While the NAM doesn’t have donors, it does have a keen interest in keeping its member list confidential. If all such lists had to be released, it would “chill free speech,” say Hedren and Klenicki.

Following suit(s): Lastly, the NAM team is asking the court to hear several other cases during its next term, including:

• Miller v. CH Robinson Worldwide, Inc. In this case, the plaintiff was injured by a truck belonging to a small company, yet was allowed to sue the freight broker that hired the trucking company, too—despite a federal law that preempts those kinds of suits. The NAM is asking SCOTUS to consider the case so it can put commonsense limitations on liability.
• City of Oakland, et al. v. Chevron Corp., et al.: This case is very similar to the energy case mentioned above.

The last word: Hedren explains why the NAM’s involvement in our nation’s highest court is so important: “The Supreme Court really values the manufacturing sector’s perspective, in part because bad decisions in a single lower court can have ripple effects across the whole economy. The NAM pays close attention to those cases that might really change—for better or worse—the way the sector operates, or that might open the door for crafty lawyers to abuse the court system. If we’re not out there fighting for better legal policy, we’ll face a legal system increasingly tilted in favor of game-playing and abuse.”