NAM opposes CLEAN act as unrealistic for industry

Manufacturing News, Source : The Manufacturer US
Published : 18 Jan 2007 17:30

The National Association of Manufacturers (NAM) has made opposition to H.R. 6, the Creating Long-term Energy Alternatives for the Nation (CLEAN) Act of 2007.

The act aims to create affordable energy for American competitiveness - a "no-brainer" on the surface - but NAM believes the act is ill-thought and an actual threat to competitiveness.

The NAM’s Key Vote Advisory Committee has indicated that votes on H.R. 6, including votes on potential amendments and procedural motions, merit designation as Key Manufacturing Votes in the 110th Congress.

NAM staffers are delivering an open-letter to the office of each House representative, which explains their position.

The letter frames NAM's opposition:

"The U.S. manufacturing sector uses nearly one-third of the nation’s energy both as a fuel and a feedstock. We are concerned about proposals under consideration, including H.R. 6, which would increase energy costs for consumers, both industrial and residential, and discourage much-needed investment in domestic energy infrastructure and supply.

"We oppose provisions in H.R. 6 that would increase taxes for the oil and gas industry. Instead of seeking to ensure an adequate and affordable energy supply for all Americans, the bill seeks to punish oil and gas companies and their employees, ruling them ineligible for the Section 199 deduction for domestic manufacturing activities and changing current depreciation rules for the geological and geophysical costs incurred in energy exploration.

"We also oppose provisions that would unilaterally force changes to existing government contracts negotiated in 1998-99 with oil/gas producers in the Gulf of Mexico. The proposal sets a very bad precedent for the nation and infringes upon the bedrock principle of the sanctity of contracts.

"These provisions would do nothing to address our nation’s energy supply needs and will result in higher energy costs for American consumers.

"The U.S. needs a comprehensive strategy that encourages the energy industry’s efforts to develop America’s resources. Congressional debate over energy policy should be aimed at enhancing America’s energy security through increased production of all types of energy, improved energy efficiency, more research on technology and alternative energy, increased access to domestic sources with continued environmental protections, and improved distribution."

The Manufacturer will follow up with any reaction from House members.

Comments on this story

click here to add a comment