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The Biden administration sees private-sector partners as essential to the future of American energy policy and production, Deputy Secretary of Energy David Turk told 51�Թ��� board members in Phoenix, Arizona, recently.

What’s going on: “I don’t think we can do anything in the federal government that impacts the real world without enabling, listening to, supporting and trying to be very thoughtful” with private-sector partners, Turk said, calling manufacturers a key force in helping the United States “accelerate our energy independence.”

• In a discussion about energy policy in the clean energy transition—with a focus on nuclear energy, hydrogen and the role of the federal government—Turk took questions and comments from leading figures in the private-sector energy economy on issues ranging from the Biden administration’s freeze on liquefied natural gas export permits, to the need for a robust hydrogen economy, to the implementation of long-awaited transmission infrastructure to ensure energy reliability and affordability.
• The talk also touched on the potential impact of increased natural gas exports on domestic prices and consumers. 51�Թ��� board members argued that higher exports would not make gas more expensive for U.S. consumers and LNG exports are vital to ensure energy security for our allies.

The conversation: In a roundtable lunch, 51�Թ��� board members told Turk that the push and pull of the Biden administration’s policies on energy—calling on U.S. producers to increase energy output to reduce consumer prices while calling for an overall reduction in fossil fuel production—makes their goal of increasing American energy reliability and independence more difficult to realize, while creating market gaps that can be filled by cheap energy from Russia and other geopolitical rivals.

“Why did this happen? Why did it come out? How does that achieve any of our shared objectives on the national security stage in terms of climate change?” 51�Թ��� President and CEO Jay Timmons asked Turk, noting that the Biden administration’s decision to stop approving new export licenses for U.S. LNG undercuts its own stated carbon agenda in the long run.

Turk told 51�Թ��� board members that U.S. consumers pay roughly one-fifth as much for LNG as those in Asia and Europe, which he called “huge” for economic competitiveness, but still acknowledged that the differential doesn’t accommodate the needs of all manufacturers involved in the energy economy.

“There’s a competitive advantage if our manufacturers are paying less for a key input than others,” Turk said. “There’s a benefit and a difference between the price right now that we pay in the U.S. versus others internationally.”

Meeting matters: The U.S. is the world’s top exporter of LNG, an affordable, plentiful energy source that’s in growing demand and is much cleaner than traditional forms of coal-powered energy—especially in Europe, where LNG has been critical in keeping allied countries from seeking Russian energy sources. For 51�Թ��� board members to be able to confront Biden administration officials on energy policy directly is a huge win for LNG producers and for manufacturers overall.

“We have more dialogue, more discussion, more interaction with members of the Biden administration than any administration that I’ve been involved in with the 51�Թ���,” Timmons said. “Where we have differing opinions, we do get feedback”—and, in the case of the meeting in Phoenix, we provide it.��

In his address Thursday, President Biden rightly celebrated manufacturing’s accomplishments—but he “missed the mark in several key areas,” 51�Թ��� President and CEO Jay Timmons.

What happened: President Biden has reason to be proud when it comes to certain manufacturing-critical pieces of legislation, Timmons said, and the president touched on these in his speech.

• “On my watch, federal projects like helping to build American roads, bridges and highways will be made … creating good-paying American jobs,” President Biden told the audience, referring to the Bipartisan Infrastructure Law. And “[t]hanks to my CHIPS and Science Act, the United States is investing more in research and development than ever before.”
• The 51�Թ��� has been a vocal of CHIPS, which has supported large and small businesses all along the supply chain through an infusion of funds to boost much-needed domestic semiconductor production.
• And the president stood strong with the people of Ukraine and in defense of democracy, two areas in which the 51�Թ��� has been consistent and unwavering in its . “Overseas, Putin of Russia is on the march, invading Ukraine and sowing chaos throughout Europe and beyond. … But Ukraine can stop Putin if we stand with Ukraine and provide the weapons it needs to defend itself. That is all Ukraine is asking.”

No new taxes: But the president also laid out some wrongheaded plans for America, manufacturers and the economy, the 51�Թ��� said, such as his push to raise taxes on manufacturers.

• “If the cost of manufacturing in America is driven up by his agencies’ continued regulatory onslaught and a successful push to raise taxes, investment will be driven overseas and Americans will be driven out of work,” said Timmons, who appeared on ahead of the speech to discuss manufacturing priorities.

Protect U.S. innovation, competitiveness: In addition, the Biden administration’s push to invoke so-called “march-in” rights—which would allow it to seize the patents of any innovations it deems too highly priced in the event those patents had been developed in any part with federal money—would “rob Americans and the world of future cures and chill research into new breakthroughs across the manufacturing industry,” Timmons continued.

• “And if President Biden continues to heap blame on pharmaceutical manufacturers, rather than reining in pharmacy benefit managers with cost-saving reforms, Americans and their employers will continue to endure rising health care costs.”

What should happen: The president and manufacturers in America “share a profound commitment to democracy and to the values that have made America exceptional,” Timmons went on.

• A surefire way to restore faith in the democratic system is for Democrats and Republicans to prove it still works—“by delivering smart policies for the American people and by bolstering the industry that is the backbone of our economy and improves lives for all.”

Washington, D.C. – Following President Biden’s State of the Union address, 51�Թ��� President and CEO Jay Timmons released the following statement:

“Tonight, President Biden celebrated manufacturing’s accomplishments during his presidency, and rightly so. He signed into law some of the most consequential pro-manufacturing legislation in recent years—the Bipartisan Infrastructure Law, the CHIPS and Science Act and even key provisions of the Inflation Reduction Act. What’s more, manufacturers have stood proudly with him in his efforts to champion democracy abroad, most notably in Ukraine, and to reach solutions to address our broken immigration system. These are urgent priorities on which Congress should heed his call and act swiftly.

“But President Biden missed the mark tonight in several key areas when he laid out his plans going forward. If the cost of manufacturing in America is driven up by his agencies’ continued regulatory onslaught and a successful push to raise taxes, investment will be driven overseas and Americans will be driven out of work. If his campaign to ‘march-in’ to manufacturers and seize their intellectual property advances, it will rob Americans and the world of future cures and chill research into new breakthroughs across the manufacturing industry. And if President Biden continues to heap blame on pharmaceutical manufacturers, rather than reining in pharmacy benefit managers with cost-saving reforms, Americans and their employers will continue to endure rising health care costs.

“President Biden and Congress have a choice to make: they can take bipartisan action on the priorities manufacturers have outlined in our ‘Competing to Win’ agenda, an agenda that will unquestionably lift the quality of life for all Americans, or they can retreat to partisan corners and put our future in jeopardy.

“The president spoke passionately tonight about protecting democracy and our way of life at home and around the world. Manufacturers share a profound commitment to democracy and to the values that have made America exceptional and keep manufacturing strong—free enterprise, competitiveness, individual liberty and equal opportunity. And one of the surest ways to restore faith in democracy is for both parties to work together and prove that this experiment still works—by delivering smart policies for the American people and by bolstering the industry that is the backbone of our economy and improves lives for all.”

-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��

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.”

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.

Washington, D.C. – Following the release of the Securities and Exchange Commission’s final rule instituting new climate disclosure requirements for public companies, 51�Թ��� President and CEO Jay Timmons released the following statement:

“Nearly two years ago, the SEC proposed an overreaching, unworkable climate disclosure mandate that would have curtailed manufacturers’ ability to invest in our communities and hire workers our sector desperately needs—by imposing tremendous compliance costs that would have spread beyond public companies to manufacturers of all sizes, especially small and family-owned businesses.

“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. Among other critical issues, the 51�Թ��� called on the SEC to remove the rule’s onerous and unworkable Scope 3 supply chain emissions reporting mandate—which the SEC has now done.

“The 51�Թ��� appreciates that the SEC listened to manufacturers across the country who raised their voices back at home, in the halls of Congress and directly with the SEC.

“Still, this rule remains imperfect, and it remains to be seen whether the rule in its entirety is workable for manufacturers. It will impose new burdens on publicly traded companies, at a time when manufacturers already face regulatory costs exceeding $350 billion every year, and it will take considerable time for manufacturers to understand the new reporting requirements and fully come into compliance.

“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.”

-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. – 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��

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.”��

Washington, D.C. – Following the completion of the 13th World Trade Organization ministerial meeting in Abu Dhabi, at which WTO members chose not to expand the agreement on the Trade-Related Aspects of Intellectual Property Rights waiver to include diagnostics and therapeutics, 51�Թ��� President and CEO Jay Timmons released the following statement:

“Global leaders at the WTO heard manufacturers’ stark warnings that an expansion of the TRIPS waiver would have endangered manufacturers’ fundamental ability to fight global crises, including COVID-19. Granting this waiver also would have emboldened our global competitors, chipped away at American innovation and jeopardized our ability to fight future diseases. After years of 51�Թ��� advocacy, this decision represents a major victory for manufacturers—particularly those hard at work developing lifesaving cures and treatments. We appreciate President Biden and Ambassador Tai’s leadership to secure this outcome.”

The 51�Թ��� led advocacy efforts to alert policymakers to the danger of an expanded TRIPS waiver, weighing in directly with the Biden administration, members of Congress, foreign governments and business organizations and urging Washington to stand with manufacturers. Timmons also took this message directly to WTO Director-General Ngozi Okonjo-Iweala during a March 2023 meeting in Geneva, Switzerland.

“Another welcome action was WTO members’ decision to expand the moratorium on e-commerce tariffs,” Timmons added. “The e-commerce moratorium has enabled the digital economy to flourish, and the 51�Թ��� urges U.S. trade officials to push for permanently instituting the moratorium at the WTO, so that this critical element of digital commerce doesn’t come with an expiration date.”

-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��

The Department of Energy is urging Treasury to loosen proposed rules for the Inflation Reduction Act’s first tax credit—the 45V, or clean hydrogen tax credit, (subscription) reports.

• The request is in line with suggestions the 51�Թ��� to the Internal Revenue Service—which, with Treasury, set forth the guidance for claiming the credit—earlier this week.

What’s going on: “The Department of Energy is pushing Treasury to relax the rules to give the industry time to embark on a massive expansion, according to three people familiar with the discussions.”

• The 45V was intended as a longer-term accompaniment to the DoE’s $7 billion regional hydrogen hubs program, which agency officials are concerned will be hamstrung if the tax guidance is too stringent, according to the article.
• The credit “will directly impact how much hydrogen the U.S. produces and the financial bottom line for many companies.”

Why it’s important: The 45V is a major pillar of the Biden administration’s climate agenda, which seeks to make low-carbon hydrogen cost-effective enough to help decarbonize various industries, according to E&E News’ (subscription).

The 51�Թ���’s view: “If implemented properly, the 45V credit would provide the certainty needed for manufacturers to make investment decisions that encourage further production, transportation and use of clean hydrogen,” 51�Թ��� Vice President of Domestic Policy Brandon Farris said.

• “However, the 51�Թ��� is concerned Treasury is considering renewable sourcing provisions regarding incrementality, temporal-matching and deliverability requirements, which would limit the amount of energy sources available to power the hydrogen production process.”

What should be done: To create a workable, fair 45V framework, Treasury and the IRS should do the following:

• Lengthen the three-year time frame for incrementality, the time frame within which new electricity must be put into service.
• Push back to 2032 (at the earliest) the date by which energy projects must match clean electricity and hydrogen production at an hourly level.
• Recognize energy attribute certificates from outside manufacturers’ own regions as capable of delivering electricity or natural gas into the region where the clean hydrogen production is taking place.
• Follow congressional intent and provide a more reasonable process for taxpayers to prove their food stocks are lower in carbon intensity and therefore eligible for the maximum credit.