Environment

The NAM continues to push back against proposed revisions to the National Ambient Air Quality Standards for particulate matter.

What’s going on: On Tuesday NAM Director of Energy and Resources Policy Chris Morris urged the Environmental Protection Agency to withdraw its recent proposal to lower the primary annual particulate matter standard from 12.0 µg/m3 to between 8.0 and 10.0 µg/m3.

The big picture: “Manufacturers in the U.S. have become leaders in environmental stewardship and sustainability,” Morris pointed out.

• “Across the board, levels of major pollutants have declined dramatically, and the United States is outpacing our global competitors in air quality improvements,” he said.
• “According to the EPA, the U.S. has reduced six common NAAQS pollutants, including PM₅, by 78% between 1970 and 2020. Additionally, the EPA data show that PM_2.5 air quality has improved 43% between 2000 and 2020.”

The new regulations: The EPA’s new standards would impose a substantial economic burden on manufacturers, Morris continued.

• “First, there is the direct economic exposure manufacturers will face, which is a measure of the gross value added or employment in the manufacturing sector that could be affected or [placed] at risk,” he said.
• “Second is the indirect economic exposure of manufacturing as a result of a stricter PM₅ standard. This refers to the effects on the sector as the consequences are felt throughout the supply chain due to decreased overall investment.”

By the numbers: The EPA has estimated the total cost of the controls required for compliance with the proposed standard at up to $1.8 billion—and that figure could go higher, the agency admitted.

• This expensive policy will lead to job losses and fewer new manufacturing facilities, as well as fewer modernizations and expansions to existing facilities, Morris continued.

Unattainable standards: What’s more, some areas in the U.S. are “in non-attainment” with the current PM_2.5 standard, so a stricter standard will only put them further out of compliance, Morris told the EPA.

What should be done: To keep U.S. manufacturing competitive and to safeguard well-paying jobs, Morris said, the EPA should maintain the current annual particulate-matter standard of 12.0 µg/m3 and withdraw its proposal. 

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

• During the 2023 State of Manufacturing address last month, Timmons announced the launch of a nationwide campaign to maintain these standards in order to protect manufacturers.

Washington, D.C. – Following the National Association of Manufacturers comment submission to the Environmental Protection Agency on its proposed rule to impose more stringent National Ambient Air Quality Standards for Particulate Matter 2.5., NAM Director of Energy and Resources Policy Chris Morris released the following statement:

“Improving air quality in the U.S. is a key priority for manufacturers, which is why they have invested heavily in new processes and technologies that have made manufacturing cleaner and more sustainable than ever. These efforts have contributed to the U.S. successfully achieving some of the lowest levels of exposure to PM 2.5 globally, including lower PM 2.5 levels than France, Germany, Japan and the U.K.

“The EPA’s proposal would significantly increase the number of industrial centers and population hubs in nonattainment areas. That could halt new investment, stop operations in some circumstances and cost jobs.

“Significantly, the NAM’s Outlook Survey for the first quarter of 2023 found that more than 55 percent of manufacturers anticipate the new standard would raise their cost of compliance, and one out of three manufacturers anticipate that the new standards would lead to increased permitting challenges and restrict investment and facility expansion plans.

“The NAM urges EPA to maintain the existing standard as its proposal will hinder domestic manufacturing growth, does not adequately assess the economic and job consequences or identify feasible steps to achieve attainment with new standards.”

-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 nearly 13 million men and women, contributes $2.81 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.

London, U.K. – As the National Association of Manufacturers’ Competing to Win Tour begins its second week of bolstering strategic alliances across Europe, the association released findings from its Q1 2023 Manufacturers’ Outlook Survey. The survey found that expanding trading opportunities with Europe is a top priority for manufacturers, with more than 77% of respondents supporting negotiating new agreements with European nations.

“At a time when democracy and free enterprise are under attack from forces around the world, America can provide the leadership needed to defend our values, our institutions and our way of life,” said NAM President and CEO Jay Timmons. “By advancing an ambitious trade agreement agenda, we can ensure that the U.S.—and not competitors like China—writes the rules for the global economy and trading system. That has been the focus of our conversations with government, association and business leaders across Europe over the past week.”

The survey also continues to illustrate the need for Washington to enact policies that support the sector’s competitiveness as businesses face record job openings and increased production and input costs.

“With geopolitical turmoil and a banking crisis injecting further uncertainty into the economy, policymakers must act with urgency on key tax, trade, permitting and regulatory proposals if they want to help manufacturers in America fend off a recession,” said Timmons.

Background: Manufacturers have called on Congress and the White House to address key tax, trade, and permitting policies in recent months and have pressed lawmakers to work across the aisle to move legislation. The NAM conducted the survey from Feb. 21 to March 7, 2023.

Key Findings:

• Of companies that are engaged in international trade, nearly two-thirds of manufacturers said that Europe was either a somewhat or very important market for their company. With that in mind, 77.7% would support U.S. efforts to launch market-opening trade agreement negotiations with countries in Europe.
• Nearly three-quarters of respondents (74.9%) listed attracting and retaining a quality workforce as a primary business challenge, with increased raw material prices (60.1%) and supply chain challenges (55.8%) the next biggest impediments.
• More than 90% of respondents said that higher tax burdens on manufacturing income would make it difficult for their companies to expand their workforce, invest in new equipment or expand their facilities. Similarly, 93.9% suggest that increased regulatory burdens would weaken their ability to invest in their workers, equipment or facilities.
• More than 74% of respondents said that permitting reform—which would simplify and speed up the approval process for new projects—would be helpful to their manufacturing company, allowing them to hire more workers, expand their business or increase wages and benefits.
• More than 55% of respondents said that new proposed air standards from the Environmental Protection Agency would raise their costs of compliance, with roughly one-third suggesting that it would lead to increased permitting challenges and lessen investment and facility expansion plans.

Conducted by NAM Chief Economist Chad Moutray, the Manufacturers’ Outlook Survey has surveyed the association’s membership of 14,000 manufacturers of all sizes on a quarterly basis for the past 25 years to gain insight into their economic outlook, hiring and investment decisions and business concerns.

The NAM releases these results to the public each quarter. Further information on the survey is available here.

-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 nearly 13 million men and women, contributes $2.81 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.

Manufacturers across the United States have long been leading the way on sustainability. From outpacing international competitors on emission reductions to making investments in clean technologies, the industry has implemented best practices for others to use and blazed a trail for them to follow.

NAM Director of Energy and Resources Policy Chris Morris emphasized manufacturers’ track record during a hearing before the Environmental Protection Agency last week, where he explained to policymakers that their proposed air quality rules would stifle rather than enhance manufacturers’ efforts. Here’s what he had to say.

A record of leadership: “Our industry has championed environmental stewardship at every turn, and our members have invested heavily in new processes and technologies that have made manufacturing in the U.S. cleaner and more sustainable than ever,” said Morris.

• “This innovation in the manufacturing sector has played a key role in the reduction of air pollution we have seen over the last 50 years.”

Manufacturers’ impact: “Across the board, levels of major pollutants have declined dramatically, and we are outpacing our global competitors in air quality improvements,” said Morris.

• “According to the EPA, the U.S. has reduced six common NAAQS pollutants, including PM2.5, by 78% between 1970 and 2020.”
• “Additionally, EPA data shows that PM2.5 air quality has improved 44% since 2000. Manufacturers are committed to ensuring that progress continues.”

The challenge: New proposed regulations from the EPA would have a number of negative effects, Morris noted.

• Tighter air quality standards would make permitting more difficult, raise compliance costs and make it harder for manufacturers in the United States to compete with companies abroad—especially at a time when manufacturers are concerned about the country’s economic outlook.

The path forward: Morris urged policymakers to ensure that current regulations are fully implemented before they propose new ones, and to work together with innovative manufacturers on smart solutions.

• “The U.S. has some of the best environmental standards in the world, and American manufacturers are consistently reducing emissions, conserving critical resources, protecting biodiversity, limiting waste and providing safe products and solutions so others in our country can do the same,” said Morris.
• “But in order to maintain our environmental leadership, we need better regulations.”

The last word: “In our view, environmental protection and a thriving economy are not mutually exclusive,” said Morris. “We can have both—but it requires working together toward a constructive solution. Manufacturers are committed to smart, strong environmental safeguards and improving the lives of all Americans so that no one—and no community—is left behind.”

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 Environmental Protection Agency’s announcement that it will reconsider National Ambient Air Quality Standards for particulate matter, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Improving air quality in the U.S. is a priority for manufacturers, and we’ve worked for years to make progress in delivering some of the cleanest manufacturing processes in the world. Based on the EPA’s own data, air quality has improved by more than 30% over the past 20 years, even as production and energy consumption have increased.

“The EPA’s announcement today to reconsider the PM 2.5 standard will only further weaken an already slowing economy. It will push states and localities into a nonattainment designation, which will halt new investment, stop operations in some circumstances and cost jobs. Manufacturers are already concerned about the threat of a recession—62% believe that the U.S. will officially slip into a recession in 2023, according to the Q4 2022 NAM Manufacturers’ Outlook Survey released yesterday.

“Today’s announcement is the wrong approach. Let manufacturers do what they do best: innovate and deploy modern technologies to protect the environment, while creating jobs and strengthening the 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 12.9 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 the Supreme Court’s 6–3 decision in West Virginia vs. EPA, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Manufacturers share a deep commitment to protecting our planet and our people, and manufacturing innovation holds the key to solving the generational challenge of climate change. The court’s decision affirms the Environmental Protection Agency’s authority to issue appropriate greenhouse gas regulations while providing a reminder that the agency must stay within the guardrails delegated by Congress. As some of the largest electricity consumers and as electricity generators, manufacturers are ready to work with the EPA to deliver innovative and balanced solutions that protect our environment and our competitiveness as it considers next steps.”

Background: Earlier this week, the NAM along with 42 state partners sent President Biden a letter highlighting the importance of affordable, reliable electricity for manufacturers to remain competitive. It signals manufacturers’ eagerness to work with policymakers on the important decisions and planning surrounding the future of the electrical grid and broader energy policy.

-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 12.7 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

Washington, D.C. – Following the introduction of the Environmental Protection Agency’s proposed Water Quality Certification Improvement Rule, National Association of Manufacturers Vice President of Energy and Resources Policy Rachel Jones released the following statement:

“The EPA’s new water permitting proposal falls short of providing the certainty that manufacturers in America desperately need from their local, state and federal regulators, and if the EPA doesn’t get the regulations right here, American families will continue to feel the consequences of rising construction costs and delayed infrastructure investments. While we are pleased that this proposal provides some clarity on the scope of reviews and sets timelines to increase predictability, it just doesn’t go far enough to stop activists from abusing what were intended to be important water protections.

“Manufacturers in America have endured red tape and permitting delays for decades, and manufacturers know what happens when the vaguely worded Section 401 is used as an excuse to block critical infrastructure: We lose out on modern manufacturing jobs. By setting clearer guidelines, the EPA could empower manufacturers to invest in our people and communities with confidence and to work with state leaders to protect our water and environment. The NAM will continue working with policymakers to improve this measure so that it can strengthen environmental stewardship while speeding infrastructure investment and expanding manufacturing here in the United States.”

-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 12.7 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.

Washington, D.C. – In response to the Senate Foreign Relations Committee passage of the Kigali Amendment, the National Association of Manufacturers, Air-Conditioning Heating and Refrigeration Institute, American Chemistry Council, The Alliance for Responsible Atmospheric Policy, and the U.S. Chamber of Commerce issued the following statement:

“The business community applauds the Senate Foreign Relations Committee for its bipartisan vote approving the Kigali Amendment for consideration by the full Senate. This is an important step in ensuring the U.S. joins this global effort while accessing international markets that will grow American jobs. It is a win for the economy, the environment, and U.S. leadership.”

-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.

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.