Regulatory and Legal Reform

A House of Representatives committee recently held a hearing on a bill designed to drive breakthrough innovations to tackle climate change—a priority that has the strong support of the National Association of Manufacturers and manufacturing businesses across the country.

The Clean Industrial Technology Act (CITA) would set up a Transformational Industrial Technology Program at the U.S. Department of Energy, and would drive new technologies aimed at increasing the technological and economic competitiveness of manufacturing in the United States. The program would also find pathways to net-zero greenhouse gas emissions and create a technical assistance program to help local communities and states evaluate and incentivize the adoption of technologies that reduce industrial greenhouse gases. The legislative hearing on the CITA was held by the House of Representatives Committee on Science, Space, and Technology. In the Senate, the NAM has been working closely with Sen. Sheldon Whitehouse (D-RI) on similar legislation.

“Manufacturers have always been about solutions,” said Rachel Jones, Senior Director of Energy and Resources Policy at the NAM. “We need real-world technologies to address our global climate problem, and legislation like the CITA provides a common sense opportunity to move our efforts forward. This bill takes a clear-eyed look at the unique challenges that different energy-intensive industries face as we all work toward ensuring a safer and more prosperous future.”

Manufacturers across the country are deeply involved in sustainability programs, leading the way for other industries in protecting our environment. Most manufacturing companies have already pioneered new technologies and implemented meaningful programs to reduce greenhouse gas emissions. With more than 12 million men and women employed by the industry in every state in the country, manufacturing businesses have a unique perspective on the challenges of our shared path forward and have consistently worked with Congress to promote bills like the CITA.

“Providing incentives for U.S. businesses, schools and laboratories to bring game-changing technologies into the commercial sector isn’t just good policy; it’s common sense,” said Jones. “Cooperative partnerships between industry, government and academia benefit all three sectors and the country as a whole.”

Manufacturers contributed 18 percent more value to the American economy over the past decade while reducing the carbon footprint of their products by 21 percent—demonstrating that productivity and sustainability are compatible with each other—and keeping the industry’s promise to promote sustainable solutions.

“Manufacturers are committed to reducing greenhouse gases and addressing climate change while preserving our global competitiveness,” said Jones. “This legislation is a great example of how we are working with policymakers to turn aspirations into reality in order to protect our environment and improve our world. Manufacturers applaud the House Science Committee and Sen. Whitehouse for their leadership.”

Last week, the U.S. House of Representatives’ Energy & Commerce Committee’s Subcommittee on Consumer Protection and Commerce held a legislative hearing on proposed improvements to the Consumer Product Safety Commission (CPSC), including one bill applauded by manufacturers across the country. H.R. 3169, known as the FASTER Act, would codify and strengthen the “fast-track” recall program, making it easier for companies to issue a voluntary recall if they determine that one of their products is unsafe.

Instituted by the CPSC nearly 25 years ago, the existing fast-track program is intended to provide companies with the ability to quickly recall a product if necessary, eliminating procedural steps like the CPSC staff’s technical evaluation of a product to determine if a defect exists that could harm consumers. That procedure, called a preliminary determination, can take several months. By streamlining the time-consuming review, manufacturers can quickly ensure the safety of consumers when they have already determined that a recall is necessary.

However, the fast track program has frequently been slowed down by bureaucratic Commission obstacles that have delayed even voluntary recalls by months.

“The CPSC’s fast-track program, once an award-winning agency program allowing for swift voluntary recalls, has become hampered by bureaucratic disagreements over non-substantive concerns, such as the wording of press releases and other hold-ups that create unnecessary hurdles to ensuring the safety of products on the market,” said Graham Owens, NAM Director of Legal and Regulatory Policy. “In other words, the program’s signature quality—that of being fast—seems to have been recalled itself.”

The bill Congress is considering would make the agency-created fast-track program permanent, while also clearly laying out how the process should work to prevent red tape from creeping back in. Meanwhile, the Commission would still have the power to make companies go through the long-form recall process on a case-by-case basis if it determines the expedited process was insufficient, ensuring that the Commission continues to hold regulatory authority.

“The FASTER Act would alleviate bureaucratic and non-substantive red tape by codifying the fast-track program into law—and by preventing the commission from delaying the posting of public notices of recall plans,” said Owens. “These simple steps would immediately speed up voluntary recalls to the benefit of consumers, manufacturers, and even the Commission itself.”

After fighting for many years to fix these administrative delays, manufacturers are hopeful that Congress will finally update the fast-track process.

“This hearing is a great start toward ensuring manufacturers are able to voluntarily recall products in an efficient and effective manner,” said Owens. “The FASTER Act, if passed, would improve the agency’s effectiveness in discharging its critical mission, and we commend the Subcommittee for focusing on common sense reforms. Manufacturers stand ready to work with Congress and the CPSC to achieve this laudable goal.”

Washington, D.C. – National Association of Manufacturers Vice President for Litigation and Deputy General Counsel Peter Tolsdorf released the following statement after the U.S. District Court for the Southern District of Texas ruled that the Environmental Protection Agency’s 2015 Waters of the United States rule violated the Administrative Procedure Act:

For nearly four years, the Manufacturers’ Center for Legal Action has battled the overreaching WOTUS rule in the courts, and manufacturers have claimed another important victory, said Tolsdorf. The court’s ruling protects manufacturers’ right to a fair and transparent rulemaking process for significant environmental rules with multibillion-dollar impacts.

This rule was unreasonable on its face—it was a water regulation that went so far as to attempt to regulate dry land. This made compliance nearly impossible and put manufacturing jobs at serious risk. Manufacturers will continue to fight for fair, clear regulations that empower us to be responsible stewards of the environment while continuing to grow the U.S. economy.

In October, the NAM filed a motion for summary judgment in the U.S. District Court for the Southern District of Texas to invalidate the 2015 WOTUS rule.

Specifically, the court found that the EPA did not provide the public with reasonable notice and an opportunity to comment on the final rule’s definition of jurisdictional “adjacent waters.” The court also concluded that the EPA violated the APA by releasing the technical basis for the proposed rule only after the public notice and comment period had closed.

The NAM’s legal arm, the Manufacturers’ Center for Legal Action, has been in active litigation against the rule since July 2015, helping lead a large coalition of business groups to sue the EPA. Arcane procedural obstacles prevented the courts from hearing the merits of our legal challenge for several years. In early 2018, however, the MCLA scored a significant legal victory before the U.S. Supreme Court, which resolved those issues and has allowed litigation against the substance of the rule to proceed. The MCLA is also challenging the rule in a separate federal court in Georgia and has filed supporting amicus briefs in other legal challenges to the rule. To learn more about the MCLA, click here.

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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 $2.38 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on EPA’s memorandum outlining reforms to how it conducts cost-benefit analysis:

Reforming the way the EPA performs cost-benefit analysis is likely to have a greater positive impact on the future of manufacturing in America than any single EPA regulatory action, said Timmons. This announcement isn’t deregulation; it’s better regulation. Through this new initiative, the EPA will get regulations done right the first time, delivering clarity and transparency for manufacturers. Our industry will spend less time working through complicated rules and more time doing what we’ve promised the America people we’ll do: create new jobs, raise wages and benefits and invest in new operations while protecting our air and water.

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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 $2.38 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.

Manufacturing businesses have long been proponents of equality in the workplace. As legislation to codify protections for LGBT individuals passes through the House of Representatives, the National Association of Manufacturers joined the U.S. Chamber of Commerce, Business Roundtable, and other members of the business community in advocating its passage, forging coalitions and providing congressional testimony.

Introduced with bipartisan support in the U.S. House and Senate in March, the Equality Act includes federal protections for individuals based on sexual orientation and gender identity under the existing framework of the Civil Rights Act, which already provides protection against discrimination on the basis of religion, national origin, race, color or sex. The goal of the legislation is to ensure that no person can face legal discrimination based on their gender or sexual orientation, setting a clear federal standard to enable individuals to succeed based on their abilities and qualifications to perform a job.

“Employers understand the importance of creating an environment in which the very best people can succeed based on merit,” Patrick Hedren, NAM vice president, labor, legal and regulatory policy, said. “At the same time, manufacturers know that discrimination in any form is antithetical to the values that we work to uphold every day: equality of opportunity, individual liberty, free enterprise and competitiveness.”

In March, more than 40 other industry associations rallied to support the Equality Act, providing an important boost for the groundbreaking legislation. In the weeks since, manufacturing representatives have testified before the House Education and Labor Committee and signed a coalition letter to the House Subcommittee on Civil Rights and Human Services calling for the Act’s passage. As Congress considers the way forward, manufacturers have made clear that they intend to advocate forcefully on behalf of the legislation and uphold their commitment to workers of every gender identity and sexual orientation.

“The Equality Act creates a clear federal standard that matches the sentiments manufacturers already share: gender identity and sexual orientation have no impact on an employee’s abilities and discrimination is not welcome on the manufacturing floor,” Hedren said. “We look forward to working with Congress as this important legislation moves ahead.”

Washington, D.C. – The National Association of Manufacturers (NAM) released the following statement on the U.S. Treasury Department’s new “Modernized Drawback” rule:

Congress intended drawback for taxes paid on distilled spirits, beer, wine and other products because of their importance to driving U.S. exports, so it should come as no surprise that manufacturers have serious concerns with Treasury’s rule, said NAM Vice President of Labor, Legal and Regulatory Policy Patrick Hedren. We are exploring all options to resolve this issue so that manufacturers’ competitiveness is not impacted negatively.

In September, the NAM submitted 84 pages of comments to the U.S. Treasury Department outlining manufacturers’ concerns with the proposed rule.

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The National Association of Manufacturers (NAM) 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 million men and women, contributes $2.25 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – National Association of Manufacturers (NAM) President and CEO Jay Timmons released the following statement after the Securities and Exchange Commission’s (SEC) roundtable on the proxy process, which included a discussion of the role that proxy advisory firms play in the market and their impact on Main Street investors:

It is an encouraging sign that the SEC’s roundtable focused on the risks that proxy advisory firms pose for Americans’ retirement savings. Now manufacturers hope to see concrete action from the SEC to ensure that these firms do not undermine the retirement security of millions of Americans, including manufacturing workers. Main Street investors, retirees and pensioners deserve the peace of mind that comes from knowing that key decisions affecting their savings are based on accurate advice that is free from conflicts of interest. Manufacturers look forward to engaging with the SEC as it works toward bringing much-needed transparency to this critical component of the financial system. Given the stakes for manufacturers and manufacturing workers, the time to act is now.

The NAM has continued to ramp up its advocacy in favor of reforming the proxy process and instituting oversight of proxy advisory firms. The NAM applauded the SEC’s decision in September to withdraw guidance that had entrenched and empowered proxy advisory firms. In October, the NAM submitted technical comments to the SEC outlining manufacturers’ desired policy outcomes from the Commission’s proxy process roundtable. And last week, the NAM and U.S. Chamber of Commerce launched a nearly $1 million national print and digital advertising campaign outlining the risks proxy advisory firms pose to American workers’ retirement savings.

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 The National Association of Manufacturers (NAM) 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 million men and women, contributes $2.25 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.