Supply Chain Management: U.S. manufacturers challenge EPA mandate

The National Association of Manufacturers (NAM) and 19 other business organizations have filed a petition in federal appeals court challenging the U.S. Environmental Protection Agency’s (EPA) latest interpretation of the so-called “Johnson Memo,” where the Agency stated for the first time that it will apply controls on greenhouse gas emissions on a wide range of manufacturing and other stationary sources in January, 2011.

Joining the NAM on its petition are the American Frozen Food Institute, American Petroleum Institute, Brick Industry Association, Corn Refiners Association, Glass Packaging Institute, Indiana Cast Metals Association, Independent Petroleum Association of America, Michigan Manufacturers Association, Mississippi Manufacturers Association, National Association of Home Builders, National Federation of Independent Business Small Business Legal Center, National Oilseed Processors Association, National Petrochemical & Refiners Association, North American Die Casting Association, Specialty Steel Industry of North America, Tennessee Chamber of Commerce and Industry, Western States Petroleum Association, West Virginia Manufacturers Association, and Wisconsin Manufacturers and Commerce.

“Today’s challenge is yet another step we are taking to stop EPA from its overreach in regulating greenhouse gas emissions under the Clean Air Act,” said John Engler, president of the NAM. “We believe this issue deserves transparency and debate that should be handled by Congress, not by a bureaucratic agency that has no accountability to the American people.

“EPA’s power grab creates uncertainty and adds costly new burdens on manufacturers while further complicating a permitting process the EPA and state environmental enforcement agencies are not equipped to handle,” said Engler. “Further, these actions will stifle job creation and harm our competiveness in a global economy by adding compliance, administrative and legal costs.”

In February, the NAM filed a petition with the federal appeals court challenging EPA’s “endangerment finding.”  According to the EPA, the endangerment finding and subsequent regulations could trigger new permitting requirements on more than 6 million stationary sources, including 200,000 manufacturing facilities, approximately 20,000 farms and 200,000 other sources such as universities, schools and even American homes, impacting every aspect of the U.S. economy.