Input Stories

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.”

When service members leave the military, manufacturers are quick to say: “Come on over!” Military skills are usually a great match for manufacturing careers, which require attention to detail, technical abilities and creative thinking. And there’s no better matchmaker than the Manufacturing Institute’s Heroes MAKE America initiative, which since 2018 has been offering training certification programs and career courses to transitioning service members and veterans.

Today, HMA not only serves service members on military installations across the country but also has expanded its reach via a virtual training program.

Widening the reach: Now in its second year, the virtual training program has allowed HMA to impact service members on a national scale.

• For the first time, members from four branches—Army, Air Force, Marine Corps and Navy—are participating in the same class at the same time.
• Additionally, the geographic range of participants has increased to comprise students located far and wide, including in Alaska, Arizona, Delaware, Kansas and Kentucky.
• The program has reached more than 120,000 prospective students through local transition assistance, HMA’s LinkedIn and Facebook presence and the SkillBridge website.

How it works: HMA partnered with Texas State Technical College to create a virtual nine-week training and certification program.

• Participants earn nationally portable, industry-recognized Certified Production Technician certification as well as an OSHA 10 certification.
• Through Heroes Connect, HMA also partners with sponsors like Johnson & Johnson, The Caterpillar Foundation, Amazon, Howmet Aerospace, WestRock, Saint-Gobain, Atlas Copco, Cargill, FUCHS Lubricants Company, C.H. Guenther & Sons, Honda Foundation, Niagara Bottling and the NAFEM, PPI and SEMI associations to connect program graduates and members of the military community with manufacturers.

Read the full story here.

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.

China, which already commands most of the world’s lithium refining, is undertaking “a risky strategy” in an effort to lay claim to more of the metal globally: buying stakes in mines located in developing nations, according to The Wall Street Journal (subscription).

What’s going on: “China is spending billions on stakes in nations that have histories of political instability, local resistance and resource nationalism. Projects often face protests, regulatory delays and even cancellations. If China succeeds, however, it could secure access to one-third of the world’s lithium-mine production capacity needed by 2025, according to industry estimates.”

• Canada and Australia, which hold among the world’s largest lithium reserves, recently put an end to new Chinese investments in critical minerals.

Why it’s important: Lithium is a critical component of batteries used in electric vehicles and smartphones—and demand for the mineral could outstrip supply significantly by the end of the decade.

A precarious investment: To ensure sufficient lithium stock to power its EV industry (particularly as tensions with the U.S. rise), China has acquired stakes in close to 20 mines throughout Latin America and Africa.

• Some of the countries in which the mines sit face the risk of terrorist attacks, while others have a history of revoking agreements made with foreign firms.

However … China has some advantages over Western nations when it comes to securing lithium from South American and African nations.

• “CATL, for example, is a battery behemoth, with the political backing of Beijing and a strong network of companies along the supply chain.
• Developing nations often want to partner with Chinese firms that also do processing, refining or battery making, because they believe such companies will better guarantee them steady streams of income. ​​​​​​​

It’s been more than two years since the Miscellaneous Tariff Bill expired—and the lack of renewal is harming manufacturers in the U.S.

What’s going on: Manufacturers have been operating without an MTB—legislation that temporarily eliminates or reduces tariffs on products not available in the U.S.—since January 2021, when MTB legislation that had been passed in 2018 expired.

• The MTB is renewed typically every few years. In June 2021, the Senate passed an MTB measure as part of the U.S. Innovation and Competition Act, and the House passed a different version in the America COMPETES Act,  but Congress did not agree to trade provisions in the final China competition legislation.
• No MTB legislation has been introduced during this Congress in either chamber.

Why it’s important: The result of this inaction has been a direct economic hit to manufacturers, particularly small and medium-sized manufacturers that are paying more for product inputs.

• Since the MTB expired in December 2020, manufacturers and other businesses have paid more than $1 billion—or $1.3 million per day—in anticompetitive tariffs for goods they cannot source in the U.S., according to an NAM analysis
• The added costs can create higher prices for consumers, making it harder for American families to buy goods from manufacturers in the U.S.
• Due in part to these tariffs, some manufacturers are having difficulty maintaining current staffing levels and expanding opportunities for existing workers.

Hurting the heartland—and Ukraine: Sukup Manufacturing Co., headquartered in Sheffield, Iowa, is a family-owned and -operated manufacturer of grain-storage and grain-handling products. It is paying tens of thousands of dollars in tariffs to import components from the Kyiv province of Ukraine.

• In 2022, the company paid nearly $40,000 in tariffs on imports from Ukraine.
• Ukraine’s export market is essential to its economic development as well as its ability to withstand Russia’s invasion. The lack of an MTB is creating barriers between companies in the U.S. and their Ukrainian partners at exactly the wrong time.

Read the full story here.

Activist shareholders from across the ideological spectrum have increasingly influenced public companies’ proxy ballots, and the Securities and Exchange Commission has unlawfully become their willing partner. That’s why the NAM has moved to intervene in a court case on the matter.

What’s going on: The NAM yesterday filed a motion to intervene in a case challenging the SEC’s authority to compel manufacturers to use their proxy ballots to speak about divisive social and political issues that are unrelated to a company’s business or long-term value.

• If granted intervenor status, the NAM will argue that the SEC’s rules requiring companies to include activist proposals on the proxy ballot violate federal securities law and the First Amendment.

The background: An activist group that holds shares in Kroger Co. sought a shareholder vote on a proposal to have the grocery chain issue a public report concerning its equal opportunity employment policy.

• Kroger sought permission from the SEC to exclude the proposal from its proxy ballot, which the SEC granted. The group has sued the SEC, accusing the agency of acting in an inconsistent and politically motivated manner.

Why it’s important: Though the SEC rejected this proposal, the agency often requires companies to publish shareholder proposals it deems to have “broad societal impact.”

• The NAM’s motion to intervene argues that the SEC’s requirement that companies publish and respond to these proposals is a violation of the First Amendment’s prohibition on government-compelled speech.
• Furthermore, federal securities law does not permit the SEC to dictate the content of company proxy statements, so the agency’s politicization of corporate governance has unlawfully federalized issues that have traditionally been governed under state corporate law.

Unnecessary—and increasing: Forcing manufacturers to take political positions on their proxy ballots drives up costs for the companies and draws needless and unwanted controversy, the NAM says. Yet, the number of activist proposals on proxy ballots is only growing.

• “In total, 682 shareholder proposals were filed for annual meetings being held through May 31,” The Wall Street Journal (subscription) reported.

How we got here: The NAM has been urging the SEC to prioritize the needs of long-term shareholders over activists’ agendas for many years.

• The NAM opposed the SEC’s guidance requiring companies to include most environmental and social proposals on their proxy ballots.
• It also urged the agency not to move forward with a proposed rule limiting companies’ ability to exclude activist proposals.

The last word: “The corporate proxy ballot is not the appropriate venue for policy decisions better made by America’s elected representatives, and manufacturers are regularly caught in the middle as activists on the left and the right bring fights from the political arena into the boardroom,” said NAM Chief Legal Officer Linda Kelly.

• “The NAM Legal Center is standing up for manufacturers to ensure they can focus on growing their businesses, driving economic expansion and job creation and creating value for shareholders.”

​​​​​​​NAM in the news: POLITICO (subscription) and Bloomberg (subscription) covered the NAM’s legal efforts.

Manufacturers nationwide are taking steps to ensure a supportive and respectful workforce that values the varied talents and backgrounds of all employees. nVent—a manufacturer of electrical connection and protection solutions—believes that inclusion and diversity initiatives have the potential to positively impact every piece of its business.

Inclusion and diversity has been a priority for nVent since it became a public company in 2018. By identifying strategic initiatives for its inclusion and diversity efforts, nVent has become a thought leader in the electrical manufacturing industry. Five years later, those initiatives have become a comprehensive strategy that is embedded in the company’s operations.

“We may not always have the answers,” said Chief Inclusion and Diversity Officer Laura Brock, “But we want to make sure we create an opportunity for progress and share the resources we have developed with our customers and partners to drive inclusion in our industry.”

A comprehensive strategy: nVent’s strategy is built around four pillars designed to promote inclusion and diversity throughout the company, according to Brock and Inclusion and Diversity Manager Jasmin Buckingham.

• Employees: From recruitment onward and throughout the employee lifecycle, nVent ensures that inclusion and diversity is part of every employee’s experience.
• Communities: nVent strives to be “a good citizen” in its community by promoting shared economic growth through multiple avenues—including philanthropy. It has made inclusion and diversity a central aim of these efforts.
• Customers: The company supports a diverse range of customers in the electrical industry and works to meet all customers where they are.
• Suppliers: nVent is focused on supplier diversity, which promotes engagement, growth and innovation through diverse business relationships.

Read the full story here. 

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.”

Why is China winning the electric-vehicle production race? Because it controls or dominates every step of the process of making EV batteries, according to The New York Times (subscription).

What’s going on: “Despite billions in Western investment, China is so far ahead—mining rare minerals, training engineers and building huge factories—that the rest of the world may take decades to catch up.”

• Rare minerals: China owns the majority of the cobalt mines in Congo—where most of the world’s supply of the metal sits—and it controls most of the world’s lithium mining.
• Refining: “Regardless of who mines the minerals, nearly everything is shipped to China to be refined into battery-grade materials.”
• Components: China produces more EV batteries than any other country, which it managed “partly by figuring out how to make battery components efficiently and at lower cost.”
• Final products: China boasts the most EVs on the road of any nation, and almost all of them use batteries made domestically.

Why it’s important: Now, eight years after the Chinese government instituted policies to bar foreign competitors from the EV market and increase consumer demand, “the Biden administration … [is] pursuing a similar strategy to foster battery development in the United States. But in a business with huge capital costs and thin profit margins, Chinese companies have a big head start after years of state funding and experience.”

Most people are satisfied with their jobs, according to a Washington Post–Ipsos poll about what workers want, The Washington Post (subscription) reports.

What’s going on: Following the pandemic and the Great Resignation, “about 8 in 10 workers are satisfied with their jobs, even as over 6 in 10 say work is stressful,” according to the survey of 1,148 workers ages 18 to 64.

• “While desire to work from home is a priority for some workers, pay, having a good boss or manager and other aspects of a job rank higher.”

Key takeaways: The poll had several notable findings, including the following:

• People prize remote work: Four in 10 respondents said their jobs can be done remotely. “Desire to work outside the office is high among remote-capable workers, with about 7 in 10 saying they’d choose to work from home “all of the time” (37 percent) or “most of the time” (35 percent).”
• Pay and bosses matter: “When asked to rank the most important factors in a job, 45 percent put pay in the top slot. Having a good boss comes in second, with 14 percent of workers ranking it as the most important.”
• The Gen Z difference: Gen Z and younger millennial workers prize promotion and advancement opportunities more highly than do their older counterparts.
• Friends at work: Some 55% of respondents said they have “close friendships” with coworkers.

The stress factor: “Stress varies sharply by age, with Gen Z workers the least likely to say their jobs are stressful (43 percent), compared to 61 percent of younger millennials 27-to-34 years old, 67 percent of 35-to-49-year-olds and 66 percent of workers 50-to-64 years old.”