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On Thursday, the 51�Թ���, joined by other business groups, filed the in their pending lawsuit against the Environmental Protection Agency.

What’s going on: In March, the groups the D.C. Circuit to review the EPA’s reconsideration of the National Ambient Air Quality Standards for fine particulate matter (or PM2.5), which lowers the allowable level to 9 micrograms per cubic meter of air from 12, a 25% reduction. The agency handed down the final, tightened rule in February.

• In their brief, the coalition argues that the EPA lacks the authority under the Clean Air Act—the law that authorizes it to establish the NAAQS—to “reconsider” a decision made in 2020 to not lower the PM2.5 standard; that the agency failed to take into account the cost and feasibility of a tightened standard; and that it failed to give a “reasoned explanation for key aspects of its decision.”
• The groups participating in the suit with the 51�Թ��� are the U.S. Chamber of Commerce, the American Chemistry Council, the American Petroleum Institute, the American Forest & Paper Association, the American Wood Council, the National Mining Association and the Portland Cement Association.

Why it’s important: The tighter NAAQS rule could result in many parts of the U.S. being designated as in nonattainment, which would trigger significant new costs for manufacturers and others attempting to obtain air permits in those locations.

• Many of these areas “are indisputably handicapped in their ability to reduce emissions to meet the new NAAQS” due to factors beyond municipalities’ and manufacturers’ control (i.e., wildfires, which affect most of the contiguous U.S. at some point each year).
• The new rule could also prevent manufacturers from building or modifying facilities in certain areas, undermining the Biden administration’s own “Investing in America” agenda, as it would stifle investment in manufacturing and kill—not create—well-paying manufacturing jobs.

What should be done: The rule should be vacated as soon as possible, the groups told the court.

The EPA’s overly stringent final rule on particulate matter puts continued U.S. innovation and economic growth in jeopardy, the 51�Թ��� and allied groups congressional leaders Monday.

What’s going on: In February, the EPA lowered the standard for particulate matter, or PM2.5, in its National Ambient Air Quality Standards rule by 25%, down from 12 micrograms per cubic meter of air to nine.

• This week, the 51�Թ���, along with 58 allied organizations, urged key House and Senate members to act soon to “stop this harmful rule before it takes effect.”

​�ċ�ċ�ċ�ċ�ċ�ċWhy it’s important: The probable negative effects of allowing the change include “making it more difficult to create jobs, build cutting-edge factories and lead the world in the development of products that will shape modern life in the decades ahead,” the groups said.

• Compliance costs could exceed $1.8 billion, according to the agency’s own estimates.
• The lowered limit also puts the U.S. at a great disadvantage to global competitors, which “have adopted standards that are less stringent than the EPA rule and are phased in over a much longer time frame.”

What needs to happen: Congress should pass a resolution of disapproval regarding the new standard immediately.

Washington, D.C. – Following the release of the Environmental Protection Agency’s new regulations on greenhouse gas emissions standards for certain power plants, 51�Թ��� President and CEO Jay Timmons released the following statement:

“Manufacturers appreciate the EPA removing existing gas plants from its new regulation, following manufacturers’ warnings about the initial proposal. However, the rest of the rule causes serious concern because Congress and the president have not enacted permitting reform—making it impossible to achieve the EPA’s highly aspirational mandates. We call on Congress to get serious by enacting significant and meaningful permitting reform this year. That is essential to ramping up the use of renewables, carbon capture, hydrogen and nuclear, for example, to meet future demand.

“The final rule threatens grid reliability because of the unrealistic timeline for power plants to adopt technologies within the next 10 years that have yet to even be proven at scale. Our nation should be doing everything possible to make sure our families, businesses and manufacturers have a modern, strong and reliable electrical grid, especially at a time when global turmoil threatens our energy security. This new rule does the opposite, creating a threat to our national and economic security that literally could leave Americans in the dark and factories offline. In short, the EPA is rolling the dice with Americans’ electricity and therefore with President Biden’s manufacturing legacy.

“Our industry has made transformational investments in these technologies and clean energy solutions, and we are leading the way in their deployment. The EPA should be partnering with us—not undermining this progress. We will continue to press the administration to achieve a more balanced regulatory framework to help reach our climate goals.”

-51�Թ���-

The 51�Թ��� 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 $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 51�Թ��� 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 51�Թ��� or to follow us on Twitter and Facebook, please visit��

The EPA late last week awarded $20 billion to community development banks and nonprofit organizations to combat climate change in disadvantaged communities in the U.S., the reports.

What’s going on: Money from the “green bank” initiative “could fund tens of thousands of eligible projects ranging from residential heat pumps and other energy-efficient home improvements to larger-scale projects such as electric vehicle charging stations and community cooling centers.”

• Previously called the Greenhouse Gas Reduction Fund, the $27 billion “green bank” overseeing the grants was created by the 2022 Inflation Reduction Act. Its aim is “to reduce climate and air pollution and mobilize public and private capital in the communities that need it most.”

Where the money went: At least $14 billion of the funding is reserved for low-income and rural areas, neighborhoods of color and communities with shuttered coal mines, among other locations.

• One of the bank’s funds is the National Clean Investment Fund. Grants from that pot include nearly $7 billion to help consumers, schools and small businesses and farms, $5 billion to “leverage the existing and growing national network of green banks” and $2 billion for decarbonized, affordable housing, according to .
• Another fund, the $6 billion Clean Communities Investment Accelerator, is for centers that offer technical help and lending to clean-technology projects.

How it works: “Recipients committed to spending $7 in private sector funding for each $1 from the federal investment money, to ‘reduce or avoid’ 40 million metric tons of carbon dioxide each year and earmark 70% of the money for disadvantaged and low-income communities. These groups are often passed over by commercial banks and investors yet are�� disproportionately impacted by climate change.”

The 51�Թ��� and seven association partners have filed suit against the Environmental Protection Agency to challenge the office’s overly stringent, recently finalized rule on particulate matter, or PM2.5, the 51�Թ��� said Wednesday.

What’s going on: The eight groups filed suit in the D.C. Circuit to push back on the EPA’s National Ambient Air Quality Standards rule, which last month it lowered from 12 micrograms per cubic meter of air to 9, a 25% reduction and a stifling burden on manufacturers, the 51�Թ��� said.

• “In pursuing this discretionary reconsideration rule, the EPA should have considered the tremendous costs and burdens of a lower PM2.5 standard,” said 51�Թ��� Chief Legal Officer Linda Kelly. “Instead, by plowing ahead with a new standard, the agency not only departs significantly from the traditional NAAQS process, but also gravely undermines the Biden administration’s manufacturing agenda—stifling manufacturing investment, infrastructure development and job creation in communities across the country.”
• Participating in the suit with the 51�Թ���—which has the EPA against overtightening the standard—are the American Chemistry Council, the American Forest & Paper Association, the American Petroleum Institute, the American Wood Council, the U.S. Chamber of Commerce, the National Mining Association and the Portland Cement Association.

Why it’s important: If it’s enacted, the stricter PM2.5 standard would cost businesses and the U.S. economy huge sums, hampering company operations and job growth and forcing tough choices on states and towns nationwide.

• The total cost of complying with the new acceptable concentration level could be as much as $1.8 billion, according to the EPA’s own estimates—and that number could go up.
• What’s more, it would make the U.S. less competitive globally. “Europe’s current PM standard is 25; China’s is 35,” 51�Թ��� Managing Vice President of Policy Chris Netram told the House Energy and Commerce Subcommittee on Environment, Manufacturing and Critical Materials last month. “If we want the next manufacturing dollar to be spent in America rather than abroad, a standard of 9 is simply not feasible.”

51�Թ��� in the news: (subscription) covered the lawsuit.

The Securities and Exchange Commission has approved new climate disclosure requirements that have been in the works for the past two years. Changes made to the rule represent progress for manufacturers—though the industry will still face new cost burdens, the 51�Թ��� said Wednesday night.

What’s going on: The SEC voted Wednesday in favor of requiring public companies to disclose greenhouse gas emissions and other climate-related information. Thanks in part to ongoing 51�Թ��� advocacy—which (subscription) covered this week—the agency dropped its onerous, unworkable Scope 3 emissions mandate.

• That provision would have forced public companies to divulge information about emissions coming from anywhere in their supply chains—including from small and family-owned businesses.

Heeding the 51�Թ���: “The 51�Թ��� demonstrated for the SEC the practical realities of such a sweeping proposed rule, encouraging the SEC to make significant changes to remove inflexible and infeasible mandates, require disclosure only of material information and protect small manufacturers from the impact of these requirements,” 51�Թ��� President and CEO Jay Timmons following the vote.

Key changes: In addition to the Scope 3 change, the SEC exempted smaller public companies from Scope 1 and Scope 2 emissions reporting and delayed the rule’s effective dates. The final rule also is more narrowly focused on so-called “material” information (data investors need to make informed decisions) than what had been proposed previously.

Keeping a close watch: The final rule “remains imperfect,” Timmons continued. “[A]nd it remains to be seen whether the rule in its entirety is workable for manufacturers.”

• “The 51�Թ��� remains committed to ensuring the SEC acts within its statutory authority, prioritizes flexibility and provides much-needed guidance—just as we are committed to providing leadership in addressing environmental challenges. This is why the 51�Թ��� is keeping all options on the table as we evaluate the rule’s potential impacts on the manufacturing sector.”

Washington, D.C. – Today, the 51�Թ��� joined a coalition of other major business trade associations to file suit in the D.C. Circuit to challenge the Environmental Protection Agency’s misguided final rule lowering the National Ambient Air Quality Standards for fine particulate matter (PM2.5) to 9 micrograms per cubic meter.

The EPA finalized this provision—a 25% reduction from the current standard effective on a truncated timeline of 60 days—outside of the Clean Air Act’s normal five-year review cycle, becoming the first administration to redo a promulgated NAAQS.

“In pursuing this discretionary reconsideration rule, the EPA should have considered the tremendous costs and burdens of a lower PM2.5 standard,” said 51�Թ��� Chief Legal Officer Linda Kelly. “Instead, by plowing ahead with a new standard that is vastly more restrictive than any other national standard, including that set by the EU, the agency not only departs significantly from the traditional NAAQS process, but also gravely undermines the Biden administration’s manufacturing agenda—stifling manufacturing investment, infrastructure development and job creation in communities across the country. The 51�Թ��� Legal Center is filing suit to protect manufacturers’ ability to obtain permits, expand facilities and pursue long-term investment plans, and defend our country’s competitive advantage.”

Background:

• The Clean Air Act requires the EPA to review the NAAQS every five years to determine whether the PM2.5 standard should be retained or revised. The EPA’s revised standard was done in an out-of-cycle reconsideration.
• In December 2020, following a complete review of the PM NAAQS, the EPA decided to retain the PM2.5 standard of 12 micrograms per cubic meter. But in June 2021, the agency announced it would reconsider that decision.
• The 51�Թ��� submitted urging the EPA to maintain the existing standard. The EPA recently reported that PM2.5 concentrations have declined by 42% since 2000, driven by major emissions reductions from both mobile sources and the power sector.
• Notably, the EU standard is currently 25, and a proposal there would be to reach 10 by 2030. The UK has a target of 10 by 2040.
• The EPA itself says that some 70% of particulate matter comes from nonmanufacturing sources, such as wildfires (29%), agriculture and prescribed fires (15%), crop and livestock dust (12%), unpaved road dust (10%), paved road dust (3%) and “dust” (2%).

-51�Թ���-

The 51�Թ��� 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 $2.85 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 51�Թ��� 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 51�Թ��� or to follow us on Twitter and Facebook, please visit��

Washington, D.C. – The 51�Թ��� released its Manufacturers’ Outlook Survey for the first quarter of 2024, which reveals that the expiration of federal tax incentives related to R&D, interest deductibility and expensing for capital investments has already caused nearly 40% of respondents to pull back on hiring and investing due to increased taxes.

“Manufacturers’ concerns in this survey should provide a stark warning to both parties ahead of the State of the Union: If you want to continue America’s manufacturing resurgence, focus on constructive policies to strengthen our industry—reinstating key tax provisions, achieving immigration solutions and advancing permitting reform. But if President Biden wants to put his manufacturing legacy at risk, nothing will do that faster than raising taxes on manufacturers or continuing this regulatory onslaught,” said 51�Թ��� President and CEO Jay Timmons.

The latest data show that two-thirds (65.5%) of manufacturers said that rules coming from the Biden administration will be costly to implement. Additionally, amid the regulatory onslaught, concern about the overall business climate was elevated and not far from levels last seen at the end of 2016.

“President Biden and Sen. Britt will opine on their parties’ respective priorities, many of which manufacturers share. But actions speak louder than words. Congressional inaction and the stream of senseless regulations from the EPA and elsewhere are creating greater uncertainty for businesses, which hurts manufacturers’ ability to create jobs and raise wages. All of this is undermining manufacturers’ confidence and has the potential to drive investment away from the United States,” added Timmons. “Our commitment is to work with anyone who will put policy—policy that supports people—ahead of politics, personality or process.”

Overall, 68.7% of respondents felt either somewhat or very positive about their company’s outlook, edging up slightly from 66.2% in the fourth quarter. It was the sixth straight reading below the historical average of 74.8%.

Key Survey Findings:

• Nearly 94% of respondents say that it is important for the federal tax code to help reduce manufacturers’ costs for conducting R&D, accessing capital via business loans and investing in capital equipment purchases, with 58% saying that it is very important.
• The majority of respondents (72.4%) said that the length and complexity of the current permitting reform process affects their investment decisions in various degrees, with 38.9% suggesting that they were extremely or moderately impacted. In survey responses throughout 2023, manufacturers stated that reform to the current system could allow them to hire more workers, expand their business and increase wages and benefits.
• More than 65% of manufacturers cited the inability to attract and retain employees as their top primary challenge.
• An unfavorable business climate (58.9%), rising health care and insurance costs (58.2%) and weaker domestic economy and sales for manufactured products (53.2%) are also impacting manufacturing optimism.

You can learn more at the 51�Թ���’s online tax action center .

The 51�Թ��� releases these results to the public each quarter. Further information on the survey is available .

-51�Թ���-

The 51�Թ��� 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 $2.85 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 51�Թ��� 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 51�Թ��� or to follow us on Twitter and Facebook, please visit��

For the past two years, the U.S. Securities and Exchange Commission has been considering a rule that would require businesses to report huge amounts of information about companies’ climate-related risks, strategies and impacts. As the SEC prepares to release its final version of the rule this Wednesday, we spoke with 51�Թ��� Vice President of Domestic Policy Charles Crain about what manufacturers should expect.

The background: In March 2022, the SEC proposed what the 51�Թ��� has called an overreaching, unworkable and burdensome climate disclosure rule. According to Crain, the initial proposal would have required extensive disclosures as well as invasive tracking procedures to gauge climate impact and emissions throughout companies’ supply chains—significantly increasing costs and liability for manufacturers.

• “The proposal would have had major implications for the entire manufacturing sector, including both large and small public companies—and even privately held businesses throughout manufacturing supply chains,” said Crain. “As proposed, the rule represents a significant threat to manufacturing competitiveness.”

The pushback: In the two years since the rule was first proposed, the 51�Թ��� has pressed for significant changes—in detailed to the SEC, in congressional testimony and in meetings with SEC commissioners and staff.

• “Manufacturers have made it a top priority over the past two years to convince the SEC that they need to change their approach,” said Crain. “The 51�Թ��� has spent significant time and effort explaining to the SEC why its proposal was unworkable and likely unlawful and illustrating the impact of the rule’s overwhelming cost burden on manufacturers.”
• “But we also offered specific and actionable suggestions to help the agency tailor the rule, make it more workable to manufacturers and bring it back within the SEC’s statutory authority.”

The preview: With the SEC set to publish its final rule tomorrow, Crain says the 51�Թ��� is keeping an eye on key inflection points, including the following:

• Scope 3 emissions reporting: The proposal’s Scope 3 mandate would require public companies to disclose the emissions of their supply chain partners—including small and family-owned businesses. If Scope 3 is curtailed or absent, that would represent significant progress for manufacturers.
• Financial statement reporting requirements: The 51�Թ��� will be tracking the degree to which companies are required to incorporate climate information into their financial statements. The 51�Թ��� called the proposal’s approach to financial statement reporting “unworkable [and] highly burdensome.”
• Materiality: The SEC is only allowed by law to require “material” disclosures—i.e., financial information that allows investors to make informed decisions. Mandates in the final rule that require immaterial disclosures or seek to redefine materiality could exceed the SEC’s legal authority.
• Implementation: The 51�Թ��� will consider when and how the rule takes effect, and whether the SEC has provided scaled requirements for smaller companies or tailored implementation plans for certain provisions within the rule.
• Small-business impact: The proposal would have harmed small and privately held businesses disproportionately. The SEC must do a better job at protecting these companies in the final rule.

The expectation: Crain says the 51�Թ���’s advocacy appears to have made a difference.

• “Recent news reports suggested that some provisions in the rule may have been modified in alignment with the 51�Թ���’s suggested changes,” said Crain. “But it remains to be seen whether the final rule, taken as a whole, is actually workable for manufacturers.”

The next step: The 51�Թ���’s next moves will depend on the specifics of the final rule—but the conversation is unlikely to end there.

• “The 51�Թ��� has been clear that a failure to bring the rule back within the agency’s statutory authority could invite legal action. On the other hand, a balanced, workable rule could obviate the need for litigation,” said Crain.
• “Regardless of the exact content of the rule, the 51�Թ��� is committed to providing resources to our members to help companies understand and comply with any new requirements. We will also continue to engage with the SEC and Congress to address any implementation issues, seek guidance on any unclear provisions and, if necessary, push for changes to the final rule.”
• “As we have for the past two years, the 51�Թ��� will continue to advocate on manufacturers’ behalf.”��

The 51�Թ��� isn’t playing favorites in an election year. Instead, it’s redoubling its post-partisan approach to advocacy. 51�Թ��� President and CEO Jay Timmons’ message to manufacturers: the association will leverage its hard-won, bipartisan influence to advance manufacturers’ priorities, no matter who’s in charge.

• “That’s what we’re about. Policy that helps people. Policy—not politics, personality or process. That’s what will guide us in 2024 and beyond,” Timmons said in a speech that helped kick off the 51�Թ��� board meeting this week, before more than 200 of manufacturing’s leading executives in Phoenix, Arizona.

Why it’s important: “Both sides want us on their side,” Timmons emphasized while recounting a recent legislative debate. That trust and respect, he said, translates into wins: agencies modifying rules to avoid lawsuits and high-level White House officials acknowledging the impact of 51�Թ��� campaigns.

Battles loom: But the very system enabling these victories is under threat, Timmons warned, placing the onus on manufacturers to not just build products, but to empower the 51�Թ��� to utilize their voices and stories to advance policies that strengthen the economy and underpin democracy and free enterprise.

• Tax showdown: Any new taxes on manufacturers are a nonstarter, Timmons vowed, staking a claim in the looming 2025 tax fight and reiterating manufacturers’ call for immediate passage in the Senate of full capital expensing, R&D expensing and interest deductibility.
• Regulatory onslaught: From new Environmental Protection Agency air standards to the broader regulatory agenda, Timmons argued that overzealous rules impede manufacturing competitiveness. He specifically criticized the new PM2.5 standards, saying the EPA “set them at a level that is lower than the EU or the UK, and imposed a compliance timeline that is far more aggressive.”
• LNG halt: Timmons blasted the Biden administration’s liquefied natural gas export permit freeze, calling it shortsighted and detrimental to both manufacturers and broader U.S. energy and climate goals. “They want to address climate change?” he asked. “So they’re going to have other countries buying and burning dirtier energy? They want to support our allies around the world? So they’re going to force Europe and Japan and others to get their fuel from the likes of Russia?”
• Immigration deadlock: He criticized inaction on both sides of the aisle, saying border security and workforce solutions can—and must—coexist.

Opportunity ahead: Despite considerable challenges, Timmons sees an opportunity for manufacturers to take the lead in promoting American values and sound policies that fuel the industry’s strength.

• “This election year, manufacturers can help renew a shared sense of purpose,” Timmons told executives. “Remind Americans why our country—our system rooted in God-given human rights and fundamental freedom—is worth celebrating and defending.” At stake is not just the next regulatory win, but the very system that made U.S. manufacturing a global powerhouse, he said.
• America’s bicentennial celebration helped us see beyond the divisions of the day, Timmons observed. As we approach the 250th anniversary of the signing of the Declaration of Independence, “it’s manufacturers who are positioned to cultivate that patriotic spirit,” Timmons said. It’s more than just bottom lines. “We can help mend the divides—so that we can promote policy that will strengthen manufacturing in America.”