Transportation and Infrastructure

The debt ceiling bill finalized on Sunday—and set to go to a vote in the House this evening—includes meaningful permitting reform measures, according to E&E News (subscription).

What’s going on: The legislation would approve the Mountain Valley pipeline and enact changes to the National Environmental Policy Act.

• In addition, “a one-year deadline would be placed on the production of environmental impact assessments for new energy projects seeking permits. A two-year maximum would be applied for environmental impact statements.”
• “The agreement would also expand an existing program to expedite federal permitting for infrastructure projects, known as Fast-41.”
• And last, though the bill will not include provisions for a large-scale transmission buildup, it will call for a study of grid challenges and recommendations that might fix them.

The NAM says: NAM President and CEO Jay Timmons commended policymakers on reaching an agreement:

• “Manufacturers have been a leading voice for permitting reform, so we are encouraged that this legislation takes critical steps to improve our broken permitting system, helping us more fully leverage our domestic energy sources and expand manufacturing in the United States.”
• “We will work with Congress and the administration to build on this progress and create a comprehensive bipartisan permitting reform package that also helps unlock the full potential of laws meant to encourage the growth of manufacturing in America, such as the historic infrastructure law and the CHIPS and Science Act.”

The bigger bill: In case you missed it, the debt legislation as a whole would suspend the borrowing limit for the next two years, while also making some spending cuts, according to The Wall Street Journal (subscription).

• “It would cut spending on domestic priorities favored by Democrats while boosting military spending by about 3%. It also would extend limits on food assistance to some beneficiaries to prod them to find jobs.”

NAM in the news: Timmons’ statements on the debt-limit agreement were picked up by CNN Business and The Hill.

Washington, D.C. – Following an announcement that the White House and House Speaker Kevin McCarthy (R-CA) had reached a deal to avoid default on U.S. debt, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Manufacturers congratulate President Biden, Speaker McCarthy and their negotiating teams on reaching an agreement to lift the debt limit. As we have said from the beginning, defaulting on our debt would create economic chaos, harming manufacturing workers and their families and jeopardizing our leadership in the world. Congress should act quickly to pass this agreement and to demonstrate to Americans and to the world the continued strength of our institutions and our democracy.

“Manufacturers have been a leading voice for permitting reform, so we are encouraged that this legislation takes critical steps to improve our broken permitting system, helping us more fully leverage our domestic energy sources and expand manufacturing in the United States. We will work with Congress and the administration to build on this progress and create a comprehensive bipartisan permitting reform package that also helps unlock the full potential of laws meant to encourage the growth of manufacturing in America, such as the historic infrastructure law and the CHIPS and Science Act.

“Once this debate is behind us, our leaders must turn their focus to other policies critical to unleashing manufacturing’s full potential: addressing the crushing regulatory burden facing manufacturers, improving our immigration system and ensuring that our tax code supports manufacturing in America by encouraging investments in innovation and capital equipment.”

-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 $2.90 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.

Commerce Secretary Gina Raimondo met with Chinese Commerce Minister Wang Wentao Thursday evening to talk “trade, investment and export policies” in the first Cabinet-level discussion between the two nations in months, Reuters reports.

What happened: The officials “had candid and substantive discussions on issues relating to the U.S.–China commercial relationship, including the overall environment in both countries for trade and investment and areas for potential cooperation,” the Commerce Department announced in a readout of the sit-down.

• “Secretary Raimondo also raised concerns about the recent spate of [People’s Republic of China] actions taken against U.S. companies operating in the PRC,” including an uptick in investigations against these companies’ China operations.
• Wang—who is also confirmed to meet today with U.S. Trade Representative Katherine Tai—voiced concerns over some of the Biden administration’s China policies, “including on semiconductors, export controls and reviews of foreign investments, a Chinese Commerce Ministry statement said,” according to Reuters.
• Both meetings are taking place on the sidelines of U.S.-hosted meetings at the Asia-Pacific Economic Cooperation organization happening this week in Detroit.

What they agreed: Raimondo and Wang said they would begin and maintain open communication, which China’s Commerce Ministry said would let the two countries discuss specific trade and cooperation matters.

Additional background: Earlier this week, Wang met with U.S. firms, with whom he stressed “the importance of the China market for American companies,” reports the South China Morning Post (subscription).

Why it’s important: Thursday’s Raimondo–Wang exchange comes after President Biden and other G7 leaders “said they would ‘de-risk’ without ‘decoupling’ from the world’s second-largest economy in everything from chips to minerals,” according to Reuters.

In its Sackett v. EPA ruling yesterday, the Supreme Court handed a victory to congressional Republicans and others who believe the Biden administration’s revised Waters of the United States rule is overly broad, according to E&E News’ Greenwire (subscription).

What’s going on: By unanimous vote, “the court found that EPA and the Army Corps of Engineers wrongfully claimed oversight of the wetland on the Sacketts’ property—located about 300 feet from Idaho’s Priest Lake—and that federal courts had erred in affirming the agencies’ jurisdiction.”

• “The ruling could complicate the Biden administration’s legal defense of its new definition of which wetlands and streams qualify as ‘waters of the U.S.,’ or WOTUS, subject to Clean Water Act permitting.”
• The Sacketts have been prohibited from building on their property for more than 15 years because of the wetlands designation and oversight claims.

Why it’s important: The decision—in which “[t]he court said the EPA can only assert jurisdiction over wetlands that have continuous surface connection to navigable waters, rejecting a more expansive view proposed by the EPA,” according to The Wall Street Journal (subscription)—will give much-needed regulatory certainty to manufacturers, which have been caught in limbo over the unclear and changing WOTUS definition.

The NAM says: The court’s ruling “put[s] us on a path to regulatory certainty for manufacturers across the country,” NAM Vice President of Energy and Resources Policy Brandon Farris said.

• “This case demonstrates yet again why manufacturers and our economy need a sensible Waters of the United States proposal that provides clarity and certainty and allows the industry to continue leading the way on environmental protection. The EPA should heed the court’s ruling and revise its latest WOTUS proposal.”

A power line and wind farm project first conceived in 2006 finally received a critical permit this month—a perfect example of why we need permitting reform, according to The Wall Street Journal (subscription).

What’s going on: “The Interior Department’s Bureau of Land Management gave the green light [last] Thursday for a high-voltage power line [in the SunZia project]. The permit allows the developer, Pattern Energy, to build the country’s largest wind energy project across three counties in rural New Mexico and deliver that electricity to large markets in Arizona and California.”

• Developers applied for federal approval in 2008, and the Obama administration “fast-tracked” the project four years later.
• Pattern Energy plans to start construction later this year.

Why it’s important: SunZia is emblematic of a flawed system, one which President Biden and legislators are now trying to fix, according to the Journal.

• “The labyrinthine state, local and federal permitting processes are often drawn out for years, require duplicative paperwork and generate thousands of pages of government analysis. The average federal environmental review, for example, takes 4½ years, according to a 2020 White House report.”
• Earlier this month, the White House recommended changes it said would help speed the approval of transmission projects.

What they’re saying: “‘The White House doesn’t have a prayer of implementing the infrastructure bill or the [Inflation Reduction Act] without permitting reform,’ said Rep. Garret Graves (R., La.), a lead Republican negotiator in the debt-ceiling talks. ‘And anyone who’s actually out there trying to build things will tell you that.’”

What we’re doing: The NAM has been one of the foremost voices urging permitting reform on Capitol Hill.

• NAM President and CEO Jay Timmons recently testified before Congress on the topic and outlined manufacturing priorities for overhauling the permitting process.
• At another recent congressional hearing, NAM Vice President of Energy and Resources Policy Brandon Farris told legislators, “Streamlining and modernizing our nation’s permitting laws and procedures will help us advance many of our nation’s shared priorities, improving the quality of life for all communities; modernizing our infrastructure; achieving energy security; ramping up critical mineral production; enhancing manufacturing competitiveness; and creating manufacturing jobs in the U.S.”

G7 leaders are focusing on “de-risking,” but not “decoupling” from China, they said in a joint statement covered by CNBC.

The details: “We are not decoupling or turning inwards,” the statement said. However, “we recognize that economic resilience requires de-risking and diversifying.”

• “We will seek to address the challenges posed by China’s non-market policies and practices, which distort the global economy,” the leaders continued. “We will counter malign practices, such as illegitimate technology transfer or data disclosure.”

Biden concurs: President Biden echoed these sentiments at a press conference on Sunday, emphasizing the need to “diversify” supply chains so that no one country has a monopoly on any essential product.

• “It means resisting economic coercion together and countering harmful practices that hurt our workers,” he continued. “It means protecting a narrow set of advanced technologies critical for our national security.”

In sum: “We stand prepared to build constructive and stable relations with China, recognizing the importance of engaging candidly with and expressing our concerns directly to China. We act in our national interest,” the G7 statement said.

NAM in action: As exemplified by its recent Competing to Win Tour in Europe, the NAM is working to bring business and government leaders together to strengthen the resilience of manufacturers in the United States and our democratic allies in the face of greater uncertainty with respect to China.

The last word: “Manufacturers have consistently called for a rethink of the U.S.–China relationship to boost competitiveness globally,” says NAM Vice President of International Economic Affairs Ken Monahan.

• “The strategy requires collaborating with allies for supply chain resilience, addressing discriminatory Chinese policies and creating trade openings through robust agreements. Yesterday’s announcement highlights the path ahead.”

As the Group of Seven summit begins in Hiroshima, Japan, today, President Biden is expected to announce new sanctions on Russia, according to The Wall Street Journal (subscription).

• President Biden’s goal at the summit is likely to be reinforcing the allies’ support of Ukraine as well as their economic defenses against Chinese power.
• This is the summit’s 48th year. The G7 comprises the U.S., Canada, Britain, France, Germany, Italy and Japan.

The details: “The new U.S. sanctions and trade restrictions target goods and services vital to Russia’s military-industrial complex, said a senior Biden administration official who briefed reporters shortly after the president landed in Hiroshima.”

• “They are also aimed at Russia’s ability to extract the oil and natural gas critical to the country’s economy, the official said. Other Western allies will roll out similar new programs, officials said.”

The big picture: Analysts say President Biden—who canceled several international meetings planned for next week to return to Washington for debt talks—faces a difficult task at the meeting: “convincing allies that the U.S. can keep its economic house in order while moving forward on Russia and China,” according to another Journal article (subscription).

The NAM’s moves: During the NAM’s recent “Competing to Win” Tour in Europe, NAM President and CEO Jay Timmons hammered home manufacturers’ support for Ukraine.

• “[T]he most important thing is to support our allies that believe in democracy,” Timmons said during a live Morning Joe interview from Warsaw, Poland. “And American business, I think, can help lead the way to strengthen and support democracy.”

Read more about the NAM’s Competing to Win Tour here, here and here.
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Convention halls are filling back up again following the pandemic, restoring a critical type of “economic fuel” that had been cut off for three years, The Wall Street Journal (subscription) reports.

What’s going on: Attendance at in-person business conferences is on the rise across the U.S., supporting local jobs and wages that had suffered since 2020—particularly in tourist- and conference-heavy cities such as Las Vegas.

• “Economists said that travelers provide an economic and tax boost to cities without using services, like schools. ‘They come, spend and leave,’ said Angelos Angelou, president of an economic-impact research firm that has produced reports for events and conferences like South by Southwest and Lollapalooza. ‘It’s the kind of economic bonanza that any type of city would love to have.’”

​​​​​​​Betting big: Some municipalities are so sure the recovery is permanent that they’ve invested in new conference facilities.

• Seattle recently opened a $2 billion addition to its convention center, and last November, Dallas voters approved their own convention-center expansion—with a price tag of $4 billion—to be funded through hotel taxes.

U.S. natural gas production is likely to keep growing through 2050, while LNG exports will take off, according to new forecasts from the Energy Information Association.

The gist: Natural gas production is predicted to increase 15%, while LNG exports will skyrocket 152% between last year and 2050, according to the EIA’s “Annual Energy Outlook 2023.”

• “Production growth is largely driven by U.S. LNG exports, which we expect to rise to 10 [trillion cubic feet] by 2050,” an EIA blog post explains.

Where it’s happening: “Natural gas production growth on the Gulf Coast and in the Southwest reflects increased activity in the Haynesville Formation and Permian Basin, which are close to infrastructure connecting natural gas supply to growing LNG export facilities.”

• “New liquefaction facilities in Louisiana became fully operational in 2022, ahead of schedule. In addition, new LNG trains in Texas are scheduled to be online by 2025.”

How they figured it out: This projection comes from the “reference case” in the outlook report for 2023.

• “We use different scenarios, called cases, to understand how varying assumptions affect energy trends. The AEO2023 Reference case, which serves as a baseline, or benchmark, reflects laws and regulations adopted through mid-November 2022, including the Inflation Reduction Act,” according to the EIA blog.

Washington, DC – In advance of today’s scheduled vote in the U.S. House of Representatives on H.R. 1, the Lower Energy Costs Act, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“America’s economy, our institutions and our values are being challenged by threats from around the world, which means now is the time to strengthen our energy security and expand domestic manufacturing—both to reduce our dependence on bad actors and to ensure we can support our allies. This bipartisan action to modernize permitting reform would help us achieve these goals by speeding up critical energy, infrastructure and manufacturing investments while we continue our commitment to environmental stewardship,” said Timmons. “I am in Europe right now, witnessing firsthand the consequences of being overly reliant on a country like Russia for energy. In the 21st century, there’s no excuse for letting job-creating projects languish for years to get bureaucratic approval. The Lower Energy Costs Act will bolster manufacturers’ competitiveness in America while also bringing relief to American families and businesses. We thank Speaker McCarthy, Majority Leader Scalise and Majority Whip Emmer for designating this bill as their top priority and for their focus on ensuring our industry can continue providing the leadership our country and our world need.”

Background: In the NAM’s latest Manufacturers’ Outlook Survey, 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.

-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