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The 51�Թ��� and the American Chemistry Council yesterday filed a challenging the Environmental Protection Agency’s first-ever national drinking water standard limiting the presence of six types of per- and polyfluoroalkyl substances, or PFAS.

What’s going on: The organizations are seeking to overturn the final rule—issued in April by the EPA—in the D.C. Circuit Court of Appeals on the grounds that it exceeds the agency’s authority under the Safe Drinking Water Act of 1974 and “is arbitrary, capricious and an abuse of discretion,” in violation of the Administrative Procedure Act.

• Under the rule, PFAS in municipal water systems are limited to near-zero levels. Systems nationwide will have three years to monitor for the chemicals and two subsequent years to install technology to reduce the compounds’ levels in the water.
• The water systems will (and, in fact, have already begun to) sue manufacturers to cover their costs. Meanwhile, plaintiffs’ attorneys are using the standard in product liability and greenwashing suits against manufacturers.
• PFAS are a diverse group of chemicals that have been used widely for decades due to their unique ability to douse fires and resist grease, stains and corrosion. Today they’re a key component in a wide range of critical products, from semiconductors, to the components of the electrical grid, to renewable-energy production equipment.

Why it’s problematic: The final regulation of PFAS “is wholly infeasible and threatens these vital substances’ continued application in manufacturing processes,” said 51�Թ��� Chief Legal Officer Linda Kelly, adding that the agency’s rulemaking is based “on a deeply flawed cost-benefit analysis” and fails to follow Safe Drinking Water Act procedure and other statutory requirements.

• “In many instances, there is no viable alternative for these chemicals, and companies may be forced to change plans dramatically” to follow the new rule, 51�Թ��� Managing Vice President of Policy Chris Netram in April.
• “In everyday life, including emergency situations like a fire or operating room circumstance, there’s a real reliance on these products—it’s not just about job losses and costs but fundamental decisions that have widespread ramifications,” Netram added recently.

What should be done: The rule should be vacated as soon as possible, the 51�Թ��� and the ACC told the court.

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.

Lockheed Martin is helping strengthen the U.S. defense industrial base ().

What’s going on: The defense contractor’s Space Systems business unit recently finalized a modification contract deal to “provide systems engineering, test planning and long lead material to support missile production” to the U.S. Navy’s Strategic Systems Programs.

• The contract, valued at $99 million, is expected to be finished by Feb. 2, 2027.

Why it’s happening: “Nations are reinforcing their military capabilities to strengthen their defense structure in the growing threat environment.”

• Spending by countries on defense capabilities—including missiles—has picked up in recent years, following Russia’s invasion of Ukraine ().
• “Lockheed’s weapon systems include precision strike weapons with long standoff ranges to keep pilots and aircraft out of harm’s way.”

Why it’s important: The growing number of global threats now confronting the U.S. and its allies mean we must be prepared, and manufacturers such as Lockheed Martin are a critical part of the equation.

The demand for copper is skyrocketing—and global mining company Rio Tinto is powering forward full throttle to meet it ().

What’s going on: “The red metal, considered a barometer for economic health, is a vital component for the construction and defense industries as well as a key component in electric cars, wind turbines and the power grid.”

• However, current mines and in-the-works projects “will meet only 80% of copper needs by 2030, according to the International Energy Agency.”
• “There’s this growing consensus that demand fueled by the energy transition is going to outstrip supply, and that’s why analysts say we are simply not going to have enough of it,” said CNBC Markets Reporter Pippa Stevens in a recent CNBC video. “And copper really is the backbone of decarbonization goals.”

The challenges: Copper mining is difficult and expensive—and it takes 10 to 15 years to build each mine, Rio Tinto CEO Bold Baatar told CNBC.

A beneficial metal: Copper is the most economical conductor available, and directly and indirectly, it supports more than 395,000 U.S. jobs and more than $160 billion in economic output.

Behind the scenes: CNBC went behind the scenes at Rio Tinto’s Kennecott operations in Utah, where “about 200,000 metric tons of copper are produced annually.”

• There, Rio Tinto is increasing its open-pit mining operations and has started an underground project to mine higher-grade ore.
• Kennecott is unique for its smelter and refinery, “where the ore is processed into almost pure copper.”

Permitting challenges: Another of Rio Tinto’s projects, the mine in Arizona, has the potential to power up to 25% of U.S. copper demand—but it has been mired in a regulatory morass for the better part of two decades.

• “The last hard-rock mine that was permitted was in 2008,” Rio Tinto Copper Chief Operating Officer Clayton Walker told the news outlet. “We’ve been working on the Resolution Mine for about 18 years.”

Independence is possible: “Theoretically, there are enough reserves in the U.S. that we could become independent for our copper needs,” Walker continued. “It’s just, how do we do that? How do we get the permits?”

What the 51�Թ��� is doing: The 51�Թ��� has been engaging directly with the Biden administration and members of Congress through meetings and briefings at 51�Թ��� headquarters to push for comprehensive permitting reform.

• In addition, the 51�Թ���, along with members of the 51�Թ���’s Council of Manufacturing Associations and Conference of State Manufacturers Associations, last summer launched , a coalition that seeks to speed up the frequently slow, arduous federal permitting process for energy infrastructure projects and address the large number of regulations being churned out by the federal government.

The names are in! The Manufacturing Leadership Council—the 51�Թ���’s digital transformation division—is pleased to announce the winners of the 2024 Manufacturing Leadership Awards.

Now in its 20th year, the awards competition recognizes outstanding manufacturing companies and their leaders for groundbreaking use of advanced manufacturing technology.

“The class of 2024 should indeed be proud of their achievements in advancing the digital model of manufacturing,” said MLC Founder, Vice President and Executive Director David R. Brousell. “The awards reflect the truly incredible amount of innovation taking place in all sectors of the industry.”

Manufacturing Leader of the Year: Cooley Group President and CEO Daniel Dwight is the 2024 Manufacturing Leader of the Year.

• Dwight, who also serves on the MLC’s Board of Governors and is a member of the Executive Committee of the 51�Թ��� Board of Directors, has overseen a significant turnaround in Cooley’s business performance through digital transformation, with a commitment to investing in smart factory technologies and developing a digital-ready workforce and business culture.
• In addition, the MLC named Cooley Group the 2024 Small/Medium Enterprise Manufacturer of the Year.

Large Enterprise Manufacturer of the Year: Intertape Polymer Group is the 2024 Large Enterprise Manufacturer of the Year.

• The award recognizes IPG’s achievements in digital transformation, including technology integration and workforce training.
• The company has also made noteworthy strides in sustainability through reductions in both energy usage and waste.

More honors: The MLC also announced winners in 11 project and individual categories, as well as the winners of the Manufacturing in 2030 Awards. The latter are given to projects with particularly forward-thinking innovations.

• The MLC honored all finalists and winners at the Manufacturing Leadership Awards Gala last night in Marco Island, Florida. A complete list of finalists and winners is available .

Nominations for the 2025 season of the Manufacturing Leadership Awards will open on Sept. 16, 2024. More information is available .

Texas has filed suit in an effort to vacate a Biden administration regulation that would make millions more workers eligible for overtime pay (, subscription).

What’s going on: “Republican Texas Attorney General Ken Paxton in a complaint filed in Sherman, Texas, federal court on Monday said the rule violates federal wage law by basing eligibility for overtime on how much workers are paid rather than the duties they perform.”

• The expanded rule, released by the Department of Labor in late April, violates states’ constitutional right to structure the pay of state employees and thus how to allocate their budgets, Texas said.
• Attorneys for the Lone Star State added that the regulation—which the department has said would make about 4 million additional workers eligible for overtime pay—will force states to “eliminate or alter employment relationships and cut or reduce services and programs.”
• Also on Monday in Texas, software company Flint Avenue filed a suit saying “the rule is arbitrary and capricious, and that the DOL lacked the authority to issue the change” (, subscription).

What it would do: The expanded rule drastically bumps up the salary threshold for determining a worker’s overtime pay eligibility.

• Under it, starting in 2025, most employees making less than $58,656 will be owed time-and-a-half wages when they work more than 40 hours in a single workweek (, subscription).
• The current threshold is about $35,500.

Why it’s important: The new overtime rule “places new constraints on employers, reduces flexibility for the workers who will be reclassified and may force companies to make painful choices that limit both job creation and growth opportunities available to employees,” 51�Թ��� Managing Vice President of Policy Chris Netram in April.

• “This … regulatory hurdle will complicate manufacturers’ efforts to fill the of jobs our industry is projected to create within a decade.”

The U.S. tax code is a keystone of our nation’s economic competitiveness, Erie Molded Packaging President Tom Tredway the House Ways and Means Tax Subcommittee at a field hearing on Monday. But pro-growth tax provisions have begun expiring, with more tax increases on the way next year—so that keystone has started to crack, “weakening the entire structure” of the country.

What’s going on: Tredway gave testimony at a hearing in his hometown of Erie, Pennsylvania, the namesake of his 42-year-old, family-owned custom injection molded parts and packaging solutions company.

• Tredway told Ways and Means Committee Chairman Jason Smith (R-MO), Tax Subcommittee Chairman Mike Kelly (R-PA) and others of the negative effects his business has seen since the expiration of three provisions from the 2017 Tax Cuts and Jobs Act: immediate expensing for domestic research and development, enhanced interest deductibility and full expensing.
• And Tredway put the committee on alert: additional TCJA expirations are scheduled for the end of 2025, and small manufacturers “will be disproportionately harmed” by congressional inaction to preserve these vital policies.

A winning formula: The expired provisions—as well as other, soon-to-expire measures—were like for manufacturers and the rest of the economy.

• “In the years following TCJA, Erie Molded was able to invest nearly $7 million in new capital equipment purchases thanks to full expensing,” Tredway said. “Along with this much-needed equipment, we were able to create new positions across our team, and we were able to deliver higher quality products faster to our customers.”

​�ċ�ċ�ċ�ċ�ċ�ċBut now… Tredway’s company has had to delay important equipment purchases, and last year, its taxable income “was almost six figures higher” than Tredway had anticipated.

• What’s more, when the 20% pass-through deduction—currently taken by companies in which profits pass through to the owner and are thus taxed at the individual rate—expires at the end of 2025, Erie Molded Packaging will see another tax hike it can ill afford, “severely hampering [the company’s] growth trajectory.”

​�ċ�ċ�ċ�ċ�ċ�ċWhat should be done: Congress must pass the Tax Relief for American Families and Workers Act as soon as possible—and act to prevent tax hikes in 2025, Tredway told those at the hearing.

• “I urge every member of this committee to preserve these and the other pro-growth provisions, which allow manufacturers to function as the backbone of our economy and compete on a global scale.”

The 51�Թ��� and allied groups are challenging the U.S. Occupational Safety and Health Administration’s recently finalized “walkaround” rule.

What’s going on: On Tuesday, the 51�Թ���, joined by like-minded business organizations, a lawsuit in the Western District of Texas to block OSHA’s final rule revising the Worker Walkaround Representative Designation Process. That rule was finalized in April and is set to go into effect May 31.

• The new rule would allow nonemployees—including union representatives, plaintiffs’ attorneys, community organizers and even competitors—to accompany OSHA inspectors on workplace safety inspections.

Why it’s a problem: Not only does the final rule fail to advance the agency’s mission of ensuring workplace safety, but it is beyond the scope of OSHA’s authority. What’s more, it violates businesses’ rights, the 51�Թ��� said.

• The new regulation “infringes on manufacturers’ right to exclude others from their property, threatens new liabilities and risks compromising manufacturers’ intellectual property. The 51�Թ��� Legal Center is filing suit to prevent this harm,” 51�Թ��� Chief Legal Officer Linda Kelly said.

The Biden administration’s push to invoke “march-in” rights is unlawful and would have “disastrous consequences” for the United States if enacted, the 51�Թ��� the Senate Tuesday.

What’s going on: Ahead of a Senate Judiciary Committee hearing on intellectual property in the biopharmaceutical sector, the 51�Թ��� warned of the potentially dire consequences of the proposed march-in framework issued by the National Institute of Standards and Technology.

• The NIST proposal would allow the federal government to “march in” and seize manufacturers’ patent rights if an innovation was developed in any part with federal dollars.
• In the biopharmaceutical sector and other innovative industries, federal funding plays an important role in supporting early-stage research—but further R&D, product development and commercialization require hundreds of millions to billions of dollars in additional capital from investors and established companies.
• Robust IP protections ensure that manufacturers can bring innovative products to consumers.

Why it’s a problem: March-in would violate manufacturers’ IP rights and prevent investment into lifesaving and life-changing technologies, according to 51�Թ��� Vice President of Domestic Policy Charles Crain.

• “Allowing march-in based on the price of a product or technology, as the NIST guidance proposes … would undermine manufacturers’ IP rights and have sweeping ramifications for innovation in the United States and America’s world-leading innovation economy,” Crain told the committee.
• Committee member Sen. Chris Coons (D-DE) agreed during the hearing that the proposal is fundamentally flawed. “Any company [that] invents [anything] or any researcher who invents anything is now open to the federal government saying, ‘I want that, and I don’t agree with the price you’re setting for it,’” he .

What should happen: Congress must stop NIST’s overreach, Crain said.

• “Policies that threaten IP protections, like NIST’s proposed march-in guidance, will cede one of our greatest advantages to our competitors. Manufacturers [look forward] to work[ing] with the committee to ensure the U.S. maintains the strongest IP protections in the world in order to spur the discovery and commercialization of inventions that improve health and quality of life for all people.”

The Senate should immediately pass the Tax Relief for American Families and Workers Act, the 51�Թ��� and its state partners congressional leaders this week.

What’s going on: The 51�Թ���—along with 47 state manufacturing associations—on Monday continued its longtime, ongoing for the tax bill, which would restore three sector-crucial tax provisions: immediate expensing for domestic research and development expenses, enhanced interest deductibility on business loans and 100% accelerated depreciation for capital investments.

• “This critical legislation will support the ability of manufacturers in America to create jobs, invest in our businesses, give back to our communities and effectively compete in the global economy,” the groups said.

Why it’s important: If Congress fails to restore these key tax provisions, America’s competitiveness on the world stage will be under threat, they continued.

• “Without tax policies that encourage R&D and capital investment, countries with more favorable tax systems are capturing job-creating manufacturing investments.”
• China, for example, provides a 200% “super deduction” for companies’ R&D expenses, which is 10 times more than the U.S. gives. In 2022, the first full year following the expiration of immediate R&D expensing in the U.S., China’s R&D growth was three times that of the U.S.

What’s next: The Senate must not delay, the associations said. Congress must pass the Tax Relief for American Families and Workers Act—now.

The last word: “The breadth and depth of support for these critical, pro-growth tax provisions throughout the manufacturing industry shows the importance of immediate congressional action,” said 51�Թ��� Vice President of Domestic Policy Charles Crain. “With additional damaging tax increases scheduled for next year, manufacturers cannot afford further delays.”