REPORT SAYS NEW POTENTIAL EPA CARBON REGULATIONS WILL DAMAGE U.S. ECONOMY

A new report by the U.S. Chamber of Commerce's Institute for 21st Century Energy says U.S. Environmental Protection Agency plans to regulate carbon dioxide emissions from power plants will cost the U.S. economy more than $50 billion a year over the next 16 years while reducing carbon emissions by only 1.8 percentage points.

The EPA's potential new carbon regulations also would cut a quarter of a million jobs, increase electric rates by $289 billion, reduce disposable income, and lower Gross Domestic Product by $51 billion (each year) through 2030.

The report, "Assessing the Impact of Potential New Carbon Regulations in the United States," estimates the economic impact from EPA regulations to be imposed under Section 111 of the Clean Air Act and based on the Obama Administration's emissions reduction goals. The report estimates that the East South Central Region, which includes Alabama, could lose more than 21,000 jobs every year between now and 2030 and could suffer economic losses of $2.2 billion every year between now and 2030.

The American Coalition for Clean Coal Electricity, which represents coal mining companies as well as owners of coal-fired plants like the Southern Co., released a report warning that the EPA plan may kill more than 2.85 million jobs.

White House spokesman Matt Lehrich said there is a "moral obligation" for new rules.

The Energy Institute analysis said that EPA regulations would reduce overall global carbon emission increase of 31 percent by only 1.8 percentage points by 2030. The South power region will see the biggest increases in electricity costs, the report said. Nationally, electricity costs could increase by $289 billion by 2030, a $17 billion increase in America's electricity bills every year.

U.S. industry is gearing up to fight the proposed rules, expected Monday.

Meanwhile, the General Services Administration seeks information on current and future greenhouse gas emissions of companies that provide domestic delivery services, such as UPS and FedEx. They will have to regularly report the carbon footprint of shipping activities and annually report on greenhouse gas emissions, increasing paperwork and potentially divulging inside business practices.

Bipartisan, bicameral federal legislation that would update the 16-year-old workforce development system was recently unveiled and is seen as a significant step toward advancing this stalled legislation.
 
The Workforce Innovation and Opportunity Act is sponsored by U.S. Sens. Tom Harkin, D-Iowa, Lamar Alexander, R-Tenn., Patty Murray, D-Wash., and Johnny Isakson, R-Ga., along with U.S. Reps. John Kline, R-Minn., George Miller, D-Calif., Virginia Foxx, R-N.C., and Ruben Hinojosa, D-Texas. It would replace the 1998 Workforce Investment Act and create a modified workforce development system.
 
Reauthorizing the Workforce Investment Act of 1998 is part of the Business Council of Alabama's 2014 Federal Legislative Agenda.
 
The bipartisan legislation would prioritize funding toward industry-recognized credentials, which is a top worker training priority for manufacturers, the National Association of Manufacturers said. The legislation also would eliminate unnecessary programs, reduce the size of the workforce boards, and streamline reporting requirements.
 
The NAM said the skilled workforce shortage is a significant problem facing American manufacturers. More than 80 percent of manufacturers report a moderate or serious shortage of qualified applicants for skilled and highly skilled production positions, reducing net earnings by up to 11 percent. Promoting training that is in demand and is a key component of success will go a long way toward reducing the serious shortage of skilled and highly skilled production jobs.
 
The NAM said the new legislation is a significant breakthrough based on language from a House bill passed last year and a Senate bill passed out of the Health, Education, Labor and Pensions Committee last summer. The original WIA has been due for reauthorization for more than a decade, but it has continually stalled due to political wrangling. 
 
The NAM said the new legislation is a significant breakthrough based on language from a House bill passed last year and a Senate bill passed out of the Health, Education, Labor and Pensions Committee last summer. The original WIA has been due for reauthorization for more than a decade, but it has continually stalled due to political wrangling.

The U.S. Department of Commerce on Wednesday named the southwest Alabama region and 11 other areas in the nation as so-called manufacturing communities. The government-backed Investing in Manufacturing Communities Partnership attracted some 70 applicants from cities, universities, and local development agencies across the U.S., AL.com reported.

The University of South Alabama-led application was one of 12 chosen. Last September, several federal agencies took part in a similar program that awarded $7 million in grants to support long term economic development. The Obama administration in December launched a national program to put a focus on sustaining the country's manufacturing sector.

"The good news is that we have quite a few of them that are bourgeoning here as well," said Bill Sisson, the chamber's president and chief executive officer. He said the commerce department's decision to name the area around Mobile a manufacturing community "speaks to the public-private partnerships that have worked."

The region includes Mobile, Baldwin, Washington, Clarke, Escambia, Choctaw, Conecuh, and Monroe counties. The plan would offer grant opportunities to support an economic development strategy and to gain a dedicated federal liaison to contend for about $1.3 billion worth of funds.

National Association of Manufacturers Senior Vice President and General Counsel Linda Kelly released a statement after the Internal Revenue Service announced plans to drop its proposed rules to govern tax-exempt social welfare organizations on candidate-related political activities: "We are pleased the IRS listened to manufacturers' concerns and decided to drop its efforts to impinge on our First Amendment rights," she said. "These proposed rules could have upended our ability to effectively represent manufacturers and squelched our efforts to inform our members and the public on issues of importance."

U.S. Rep. Bradley Byrne, R-Fairhope, said Thursday's passage of the Strengthening Fishing Communities and Increasing Flexibility in Fisheries Management Act that reauthorizes the Magnuson-Stevens Fishery Conservation and Management Act of 2006 is a boon for red snapper fishing in the Gulf of Mexico.

The bill repeals mandated quotas on red snapper fishing in the Gulf, would allow greater flexibility in setting federal fishing seasons, and would extend Alabama's state offshore boundary to nine nautical miles, effectively giving the state more control over its resources and the option for a more reasonable fishing season, Byrne said.

Byrne's amendment removes stock assessment responsibilities held by the National Marine Fisheries Service for reef fish and transfers them to the Gulf States Marine Fisheries Commission, a state-run organization. Byrne said he concurs with experts who argue that the federal government's data collection practices are flawed and do not accurately reflect the amount of red snapper stocks in the Gulf of Mexico.

Electricity prices are probably on their way up across much of the U.S. as coal-fired plants, the dominant source of cheap power, turn off their burners in response to environmental regulations and economic forces, the Associated Press reported.

President Obama's regulations and competition from other sources such as natural gas, wind, and solar could cause dozens of coal-burning plants across 20 states to shut down over the next three years. Many that stay open will need expensive retrofits. Ratepayers will be asked to pay for the upgrades required by the Obama administration's rules.

The Energy Department predicts retail power prices will rise an average 4 percent this year, the biggest increase since 2008. By 2020, prices are expected to climb an additional 13 percent, a forecast that does not include the cost of environmental rules, the AP reported.

Coal produces 40 percent of the nation's electricity. It's relatively cheap and can be stored on power plant grounds for use when needed. Natural gas provides 26 percent of the nation's electricity and has been dropping in price. But it's expensive and not as readily available as coal.

A market analysis firm, Bentek Energy, said power companies will close 68 coal plants across 20 states between now and 2017, raising concern that the system won't have enough cushion to handle extremely hot or cold weather, making blackouts more likely.

Fines for Obamacare dumping could be $36,500 per employee

AL.com (Toner 5/29) "Companies are not allowed to heap their health costs on the government by giving their employees cash to subsidize their monthly premiums for plans offered through the health insurance exchanges, the New York Times reports. The IRS ruled earlier this month that employers that attempt to do this may face a tax penalty of $100 per day - or $36,500 a year - for each employee who goes into the individual marketplace. The ruling is designed to stop large groups of employers from dumping their employees on insurance exchanges created through the Affordable Care Act, the report states.

"However, employers are still allowed to cancel their insurance plans and let their workers buy individual policies sold through the insurance exchanges created through the Affordable Care Act and face lesser or no fines at all, National Public Radio reports. According to the report, there is no penalty under the health law for dropping coverage or never offering it if the employer has fewer than 50 workers. Larger companies that don't offer coverage may face fines between $2,000 and $3,000 per worker. The employer insurance mandate for companies with 50 to 99 employees doesn't become effective until 2016."

Manufacturers Continue Fight Against Public Nuisance Suits

National Association of Manufacturers (Riegel 5/29) "The Supreme Court meets today in closed conference to decide whether to hear a case that could set the stage for thousands of environmental suits against manufacturers who are in full compliance with their permits from the Environmental Protection Agency (EPA) and its state counterparts. Unless reversed, the appeals court decision in GenOn Power Midwest, L.P. v. Bell will open the courts for property owners and residents near manufacturing plants around the country to sue those companies for emitting anything from their plants.

"An editorial in yesterday's Wall Street Journal highlights the problem: 'Failing to reverse the decision could expose U.S. industry to billion [sic] of dollars of liability and lead to a state-by-state chopped salad of pollution controls as judges make what are quintessentially political decisions'.

"The Manufacturers' Center for Legal Action is seeing this latest attempt to subject companies to so-called 'public nuisance' litigation for activities already subject to permitting, equipment improvement requirements, monitoring, and public and private enforcement liability under the Clean Air Act. That law was supposed to provide a uniform system for environmental compliance and enforcement, but this lawsuit and others like it threaten to turn trial judges into EPA regulators, setting standards, monitoring compliance, and issuing penalties.  A similar case in Iowa is now awaiting a decision from that state's Supreme Court.

"We are harnessing the power of a broad range of manufacturing associations to help us tell our story in the courts.  Many groups, including the American Chemistry Council, the American Iron and Steel Institute, the Corn Refiners Association, and the Treated Wood Council, have joined in our effort to shine a light on this litigation problem.

"In March, we asked the U.S. Supreme Court to review the GenOn Power case. We should find out on Monday whether the Court will hear the issue, and after full review, whether to end this nonsense once and for all."