Washington Watch

Washington Watch

December 2009

 Last Chance – Sign the Petition to Stop the EPA from Regulating GHGs

 

There is about one week left in the comment period on the Environmental Protection Agency’s proposed “tailoring rule” outlining regulations for greenhouse gas (GHG) emissions from large industrial facilities. Please help stop the EPA from moving forward by signing a letter at www.nam.org/epa. 

 

The proposed tailoring rule is the EPA's first step toward regulating carbon emissions from large stationary sources that emit more than 25,000 tons of CO2. It also allows the EPA to immediately begin considering lowering the threshold of emissions at their discretion, further expanding the organization's scope to regulate hospitals, libraries and even American homes. For a manufacturer, it could mean doing something as simple as adding a “plant shift” to the schedule would trigger EPA regulation.

 

Congress, not the EPA, is the appropriate authority to deal with such a complex regulatory issue that needs and deserves transparency and rigorous public debate.

 

For more information, please contact Bryan Brendle, the NAM ’s Director for Energy and Resources Policy at bbrendle@nam.org.

 

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EPA Says Greenhouse Gases Endanger Public Health

 

ABC World News reported, "For decades, many people have thought it, today the government for the first time said it: Greenhouse gases are dangerous to the public's health." Critics say "it is misguided and it will cost money and jobs just as the economy is struggling to gain its footing and it comes as delegates from around the world begin the largest international climate conference in history." On December 7, the EPA "announced it reviewed the science and determined that carbon dioxide and other greenhouse gases are harmful to people and the environment." National Association of Manufacturers (NAM) Vice President, Energy & Resources Policy Keith McCoy commented, "I've heard from every industry sector. I've heard from utilities, I've heard from large manufacturers, I've heard from small manufacturers. There is significant concern from every single manufacturing sector out there."

 

The CBS Evening News reported, "The timing of the announcement was no coincidence, it came as diplomats from the United States , China , and nearly 200 other countries were gathering in Copenhagen for the largest conference on climate change ever, a two-week meeting aimed at forging an agreement to curb greenhouse gases."

 

The New York Times reported, "The E.P.A.'s administrator, Lisa P. Jackson, said that a 2007 decision by the Supreme Court required the agency to weigh whether carbon dioxide and five other climate-altering gases threatened human health and welfare and, if so, to take steps to regulate them." She said "that the finding was driven by the weight of scientific evidence that the planet was warming and that human activity was largely responsible." Several Republicans in Congress "had asked the EPA to delay the so-called endangerment finding because of questions about the underlying science. Ms. Jackson rejected their plea." The NAM 's McCoy said, "Unemployment is hovering at 10 percent, and many manufacturers are struggling to stay in business. ... It is doubtful that the endangerment finding will achieve its stated goal, but it is certain to come at a huge cost to the economy."

 

The AP reported, "Business groups have strongly argued against tackling global warming through the Clean Air Act, saying it is less flexible and more costly than the cap-and-trade bill being considered before Congress. On Monday, some of those groups questioned the timing of the EPA's announcement, calling it political." Any regulations are also "likely to spawn lawsuits and lengthy legal fights." The EPA's "readiness to tackle climate change is expected to give a boost to U.S. arguments at the climate conference in Copenhagen, where the United States is expected to offer a provisional target to reduce greenhouse gases."

 

The Washington Times reported the EPA "declaration clears the path for the Obama administration to begin regulating emissions from power plants, factories, automobiles and other major sources of carbon dioxide pollution, perhaps starting as early as next year." White House spokesman Robert Gibbs said the administration "continues to favor the cap-and-trade bill, which would expressly direct the EPA to regulate carbon dioxide emissions."

 

USA Today reported, "The latest step by the government to regulate carbon dioxide emissions saddles industry with uncertainty and potentially higher costs, industry groups said Monday after the EPA declared carbon dioxide a health hazard." Industry groups say EPA regulation "would eventually drive up energy costs, lead to lost jobs and delays in project permits and construction."

 

 

Follow the links to read the EPA Press release or Administrator Jackson’s Speech.

 

To read the press release from Keith McCoy with the National Association of Manufacturers click here. 

 

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Card Check Debate Will Continue After New Year

 

“We’re committed to getting health care done... and then we’ll get to the Employee Free Choice Act in the wake of that. I feel very confident that in the wake of health care, you’ll see that we’ll get the Employee Free Choice Act done.” 

-AFL-CIO President Richard Trumka, Politico 11/16/09

 

Given the Senate’s priority is health care reform legislation, which is likely to fill the 2009 calendar, the head of one of the largest labor groups, the SEIU indicated at a recent event that he sees action on card check legislation as being a pivotal issue next year. Recently Richard Trumka, another labor leader, expressed a similar observation and renewed their commitment to pass the EFCA after the healthcare debate while stating that the bill’s card provision is front and center at the moment.

 

Although the Employee Free Choice Act (EFCA) is not likely to pass in 2009, it continues to pose a threat to Arkansas businesses and employees. The health care debate has eclipsed EFCA's progress for now, but it is only a temporary distraction. Once health care has been resolved, EFCA will move on a very fast track. And when that time comes, we will need your help.

Here's how you can help:
1. Sign up for the Arkansans for the Secret Ballot coalition at
http://yoursecretballot.com/


2. Ask a friend, coworker or family member to join our effort.
http://yoursecretballot.com/


3. Continue to communicate to our senators.  Here is a link to their contact information.
http://yoursecretballot.com/write-your-senator/

Working together, we can protect Arkansas workers and employers from the so-called Employee Free Choice Act. Working together, we can protect jobs and help Arkansas businesses through these tough economic times. Think things are tough now? Let's not make them worse. Let's work together for a better Arkansas .

 

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HHS Report Says Health Costs Will Increase under Senate Bill

 

The AP reported Democrats "got a sober warning Friday that costs will keep going up" under the Senate healthcare bill, "and proposed Medicare savings may harm the program." A Department of Health and Human Services report "found that the nation's $2.5 trillion annual health care tab won't shrink under the Democratic blueprint that senators are debating. Instead, it would grow somewhat more rapidly than if Congress does nothing." The analysis also said the "Democrats' plan to squeeze Medicare for $493 billion over 10 years in savings relies on specific policy changes that 'may be unrealistic' and could lead to cuts in services." However, the bill "would provide coverage to 93 percent of U.S. residents, reducing the number of uninsured people by about 33 million."

 

The Washington Post reported the Senate plan "would threaten the profitability of roughly one in five hospitals and nursing homes over the next decade," according to the analysis. The proposal "could prove particularly problematic for institutions that serve large numbers of Medicare patients." The New York Times said that under the bill, "national health spending from 2010 to 2019 would total $35.5 trillion. That is $234 billion, or 0.7 percent, more than the amount projected under current law." The Washington Times said the report dealt "an unexpected blow" to the Senate bill.

 

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Senate Democrats Appear Close to Dropping Medicare Expansion

 

In what the AP called an attempt to assure "Christmas-week passage of the bill to extend coverage to tens of millions," Senate Democrats are reportedly close to abandoning a plan to expand Medicare, which had been added last week to their healthcare reform bill. The AP added that "liberals sought the Medicare expansion as a last-minute substitute for a full-blown, government-run insurance program that moderates earlier insisted be jettisoned. But it drew strong opposition from Sen. Joe Lieberman, I-Conn., and quieter concerns from a dozen Democrats."

 

McClatchy reported, "Democrats emerged from a one-hour and 45-minute private meeting Monday night and indicated that the Medicare proposal, which party leaders first floated last week as part of a tentative deal between moderates and liberals, could be gone." The Los Angeles Times said that "even several leading liberal lawmakers appeared resigned to the collapse of their dream of including either a new 'public option' or an expansion of the existing Medicare program." The Times added that "the death knell of the Medicare buy-in proposal came Sunday, when Reid called" Sen. Joe Lieberman "to his office after his appearance on 'Face the Nation.'" Lieberman "met with Reid as well as White House chief of staff Rahm Emanuel, deputy chief of staff Jim Messina and Nancy Ann DeParle, the head of the White House Office of Health Reform." In fact, says Politico, the move to drop the Medicare plan came after Emanuel urged "Reid to cut a deal with Lieberman on reform, according to a source close to the negotiations."

 

The Wall Street Journal quoted Reid as saying after the meeting, "Democrats aren't going to let the American people down. ... We all stand shoulder to shoulder."

 

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Retail Sales Up 1.3 Percent in November, Twice the Expected Increase

 

ABC World News reported, "There's good news in this holiday shopping season: November retail sales jumped 1.3 percent from October. That's twice the expected increase. Upbeat numbers for sure, but they don't tell the whole story." ABC: "The good news is consumers are spending more freely. That suggests an economic recovery is taking hold, but may not translate into better news for retailers. If you look at what consumers are buying...they're spending less at department stores, less at electronic stores, and at the end of the day, it's things like flat screen TVs and computers and sweaters that really drive holiday retail sales."

 

The AP said the 1.3 percent increase in sales was the "healthiest advance since August." However, some analysts "cautioned that the economy still faces so many obstacles that consumer spending and the recovery are likely to be sluggish in the months ahead."

 

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U.S. Trade Deficit Unexpectedly Narrowed in October as Exports Rose

 

Bloomberg News reported, "The trade deficit in the U.S. unexpectedly narrowed in October as rebounding economies overseas and a weaker dollar pushed exports up for a sixth consecutive month." Commerce Department data showed "the gap shrank 7.6 percent to $32.9 billion from a revised $35.7 billion in September." Exports were "up 2.6 percent, reaching the highest level since November 2008. A plunge in demand for petroleum checked the gain in imports." The trade gap was "projected to widen to $36.8 billion from an initially reported $36.5 billion in September."

 

The New York Times reported "economists cautioned that October might be an exception caused by the extraordinary drop in oil imports." Long-term, the trade balance "will swell in the next several months as demand for oil returns to higher levels and as exports remain steady." After "months of stagnation, exports in October were $3.5 billion more than in September, while imports increased by just $700 million from September. The gains in exports were broad-based, led by computers, automobiles and semiconductors." One economist said "strong recoveries in emerging markets could eventually help reduce the deficit. But monetary restrictions in places like China ...were hurting the competitiveness of American products, making the gap difficult to reduce."

 

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Budget Reform Group Issues Warning Regarding Mounting Federal Debt

 

The Washington Times reported that the Peterson-Pew Commission on Budget Reform, "a bipartisan commission of fiscal analysts, warned that the U.S. public debt is piling up so rapidly that it threatens to plunge the nation into crisis if Congress and the White House do not reverse course within two years." The commission includes "former members of Congress, including co-chairmen Bill Frunze, Tim Penny and Charlie Stenholm, as well as former heads of the Office of Management and Budget, the Congressional Budget Office, the Government Accountability Office and other fiscal analysts." The commission "said the debt is projected to rise steadily, reaching 85 percent of GDP by 2018, 100 percent by 2022 and 200 percent in 2038."

 

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Developing Nations' Distrust Prompts Suspension of Climate Talks

 

Media reports on the climate talks took a negative turn, as the conflict between the developing and industrialized nations stalled the negotiations. The story was reported on both ABC and NBC, and received coverage by wire and major print sources. Coverage focused on the dwindling time remaining for the conferees to reach agreement on basic issues before the heads of state begin arriving at the end of the week, and on the lowered expectations for a breakthrough deal at the summit.

 

ABC World News reported, "The climate summit talks stalled when delegates from poorer countries walked out, charging rich nations are not doing enough to cut greenhouse gas emissions while the developing nations are paying the price." ABC added, "Retreating glaciers on Mount Everest and throughout the Himalayas threaten water supplies for hundreds of millions in China, India, and Nepal, one of the reasons why in Copenhagen, developing nations walked out of the climate change conference. Bolivia 's president Eva Morales told us 'industrialized countries have a responsibility to give money to poor countries so they can respond to a crisis they did not create.'"

 

NBC Nightly News reported, "Led by Africa, 135 nations, including India and China , staged a five-hour boycott, angry over what they say are insufficient carbon cuts proposed by the world's rich countries." Rona Ajax , Nigeria Ministry of Environment special advisor: "We've now come in a new era of Africans who understand the politics, who understand international dynamics and will make a stand to get the best bill for Africa ."

 

The AP reported the "atmosphere at the U.N. climate conference grew more tense and divisive after talks were suspended for most of Monday's session - a sign of the developing nations' deep distrust of the promises by industrial countries to cut greenhouse gas emissions." With "only days left before the conference closes Friday, at least one world leader said he would come early to try to salvage the negotiations, and others reportedly were considering the move." The delay "came just days before President Barack Obama, Chinese Prime Minister Went Jimbo and more than 110 other world leaders were scheduled to arrive to cap two years of negotiations on an agreement to succeed Kyoto ." NBC Nightly News reported, "With just four days left, Britain's Prime Minister Gordon Brown comes to Copenhagen tomorrow night, ahead of schedule to ratchet up momentum for a deal."

 

Meanwhile, the New York Times reported that China and the U.S. "were at an impasse at the United Nations climate change conference here over how compliance with any treaty could be monitored and verified." China is "refusing to accept any kind of international monitoring of its emissions levels, according to negotiators and observers here," but the U.S. is "insisting that without stringent verification of China 's actions, it cannot support any deal."

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House Votes to Permanently Keep Estate Tax

 

Bloomberg News reported, "The U.S. House of Representatives voted to prevent the federal estate tax from expiring on Dec. 31 and to permanently exempt couples' fortunes of up to $7 million." The measure "now goes to the Senate, which plans to consider its own version." The two bills "would have to be reconciled, passed again by both chambers, and signed by President Barack Obama by Dec. 31 to avoid the levy expiring." Dozens of "business groups, including the NAM, the National Federation of Independent Businesses, the American Farm Bureau and the U.S. Chamber of Commerce, have lobbied Congress for a lower tax as long as lawmakers refuse to permanently repeal it." Bruce Jostens, the Chamber of Commerce's top lobbyist, said "the Chamber favors a proposal by Representatives Kevin Brady, a Texas Republican, and Shelley Berkley, a Nevada Democrat, that would exclude the first $10 million of a couple's estate from any tax and impose a top 35 percent rate for amounts above that."

 

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