Energy

Wednesday, November 11, 2009 8:30 AM

Manufacturers See Current Bills As Too Costly

By Amy Harder, NationalJournal.com

National Association of Manufacturers
The industry group has more than 11,000 member companies in all industrial sectors.

What They Want
Keith McCoy, vice president for energy and resources policy, emphasized that with such a varied membership base, it's a "very complicated process for us to take a position" on climate change. While NAM has said in official statements that it wants Congress to establish some sort of system to "monitor and guide emissions reductions," it hasn't so far endorsed cap-and-trade, a carbon tax or some other type of regulatory system.

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NAM does want to make sure the manufacturing industry, especially energy-intensive sectors like paper, steel and glass, don't face sky-high costs. It wants to make sure natural gas, which McCoy says serves an integral role in many of its members' production lines, receives enough greenhouse gas emissions allowances to counteract industry price increases. And any bill must ensure U.S. manufacturers are not at a disadvantage to foreign manufacturers, McCoy said.

Deal Breakers
NAM opposed Waxman-Markey over concerns about how the emissions permits are distributed. In the House bill, 15 percent of the permits would be auctioned off in the start of the program, while 85 percent would be given away for free. McCoy said that even that 15 percent "represented a huge cost to some manufacturers."

NAM has not taken a position on the Senate bill -- which auctions off 25 percent of permits at the outset -- but McCoy indicated that without revisions by other committees, his group will likely have similar concerns about the cost to manufacturers. The group also doesn't want the EPA's authority taking the place of legislation, but does realize that it will have a "large role" in regulating carbon.

How Much They've Spent
NAM spent nearly $6 million in the last three months, compared with $1 million and $900,000 the first two quarters of the year. Not all of that represents money spent lobbying on energy, but spokeswoman Laura Brown Narvaiz called it one of their top issues. Its 2007 revenue was $33 million, according to IRS forms.

NAM also ran multimillion-dollar ad campaign across TV, radio and Internet toward the end of the August recess urging senators to oppose Waxman-Markey. The ad buy, co-sponsored by the National Federation of Independent Business, ran in 14 states, including Ohio, Missouri and Michigan.

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Key Players
McCoy (right) is NAM's point man on climate change and energy issues. He has extensive experience on energy and business issues. Before coming to NAM, he worked in public affairs for an environmental communications firm and ran the environment program at a Massachusetts business trade group. He is not listed as a registered lobbyist, although the group's president and CEO, John Engler is.

Links
NAM Principles On Climate Change: October 2009
Overview: NAM's Position on Climate Change: October 2009

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