Transcript Cast Iron Soil Pipe — Standards Review

Charlotte Chamber of Commerce
Legislative Committee Meeting
November 11, 2009
Cap and Trade:
The Impact on
Manufacturing and the
North Carolina
Economy
Charlotte Pipe and Foundry History
 Company founded in 1901
 Make cast iron and plastic
pipe and fittings for plumbing
 Foundry has operated on
Clarkson St. for over 100 years
 Plastics Division established
in Monroe, NC in 1967
 More than 1,300 associates
employed in five states
 All products proudly made in
the U.S.
 Still family-owned and
operated – 4th generation
Facts About North Carolina Manufacturing*
NC Mfg Output
$78 billion
Mfg Share of NC Economy
19.5%
Manufacturing Plants in NC
10,130
Mfg Share of NC Exports
93%
Mfg Employment
514,400
Mfg Employment % Non-Farm 12.5%
* National Association of Manufacturers 2008
Facts About North Carolina Manufacturing*
 In the last decade, North Carolina has had a net manufacturing job loss of
308,300 (-39.7%).
 Since 2002, the Labor Department has certified more than 90,000 jobs in North
Carolina as lost because of foreign competition – more than in any other state.
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Jobs in Thousands
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* Bureau of Labor Statistics
Historic U.S. Recession
 Since the start of the
recession in December
2007, we have lost 8.2
million jobs.
 Unemployment rate has
more than doubled to
10.2% and rising.
 U.S. employment in manufacturing has contracted by more than 2.1 million
since the onset of the recession.
 From September 12, 2008, the Friday before Lehman failed, to the low of March
9, 2009, the Dow lost 44% of its value.
 Massive government spending has quadrupled the budget deficit from $459
billion in 2008 to $1.6 trillion this year – a nearly four-fold increase over
President George W. Bush’s 2008 deficit.
Waxman / Markey (H.R. 2454)
 Energy is the lifeblood of the American
economy, 85% of which comes from CO2emitting fossil fuels.
 1,427-page bill tries to control global
temperatures by creating a “cap” on GHG
emissions, hoping emitters will “trade”
emissions permits to meet the cap.
 Under the scheme, the government would
issue fewer allowances each year, causing
the cost of the permits to rise.
– The cost of these allowances is a tax, which would rise each year.
– As with any tax, it will ultimately be passed on to consumers in the form
of higher energy and product prices.
Waxman-Markey: Impact on America*
 W / M sets targets that would reduce GHG emissions 42% below
2005 levels by 2030 – reaching 83% by 2050. Heritage Foundation
predicts the impact on the U.S. in:
– Jobs
 Loss of an estimated 2.5 million
– Economic Growth
 Cumulative GDP loss of $9.4 trillion between 2012 – 2035
– Household Income
 Cost the average family-of-four almost $3,000 per year due to ripple
effect of higher energy prices throughout the economy
Current recession has already reduced emissions by 6%...
…at the cost of 8.2 million jobs.
* Heritage Foundation’s Center for Data Analysis
Waxman-Markey: Impact on North Carolina*
 Jobs
– Loss of between 44,900 - 61,100
 Energy Prices by 2030
– Gasoline – up 26%
– Electricity – up 53%
– Natural Gas – up 64%
 Household Income
– Reduced by $467 – $842 per year by 2030 due
to higher energy prices
– NC low income families will spend between
16.8% - 17.6% of their income on energy
(compared to a projected 15% without W / M)
* National Association of Manufacturers
Waxman-Markey: Impact on North Carolina*
 Industry
– All NC manufacturing sectors
will suffer lower output between
4.5% - 5.2% by 2030
– Energy intensive sector output
falls 9.6% - 10.5%
 Economic Growth
– Higher energy prices, fewer
jobs and loss of industrial
output will reduce NC’s GSP by
an estimated $11.1 - $15.2
billion per year by 2030
* National Association of Manufacturers
Waxman-Markey: Impact on Charlotte*
 W / M would reduce Charlotte jobs and economic growth as well.
By way of example, NAM looks at the impact on two
Congressional districts in our area:
Avg. GSP Loss
2012 - 2035
Avg. Personal
Income Loss
2012 - 2035
Avg. Non-Farm
Payroll Loss
2012 - 2035
Rep Sue Myrick (NC – 9)
– $572
– $223
– 2,869
Rep Larry Kissell (NC -8)
– $678
– $237
– 2,842
* National Association of Manufacturers
Waxman-Markey: Impact on Charlotte Pipe
 Charlotte Pipe is one of only three
remaining U.S. manufacturers of cast iron
soil pipe and fittings.
 Under W/M, the price for all our inputs
(electricity, natural gas, fuel, raw materials)
would rise dramatically.
– Duke Energy predicts our Industrial
electricity rates would increase
between 22% ($20 / ton of CO2) to 33%
($30 / ton).*
 Carbon taxes under cap and trade will add millions of dollars to our operating
costs, making it extremely difficult for us to compete with Chinese imports
already at a labor, export subsidy, currency, safety and environmental cost
advantage.
* Duke Energy Carolinas Customer Forum 3/31/09
Waxman-Markey: Impact Climate Change
 Estimates based on IPCC data, the Waxman-Markey bill would only impact global
temperatures by .044 degrees C (about .09 degrees F) by 2050.
“U.S. action alone will not impact CO2 levels.”
– Environmental Protection Agency Administrator Lisa Jackson
“With China and India recently issuing statements of defiant opposition to
mandatory emissions controls, acting alone through the job-killing WaxmanMarkey bill would impose severe economic burdens on American consumers,
businesses, and families, all without any impact on climate.”
– Oklahoma Senator Jim Inhofe
“There’s a bias in our Congress and government against manufacturing, or at
least indifference to us. If we pass a climate bill the wrong way, it will hurt
American jobs and the American economy, as more and more production jobs
go to places like China, where it’s cheaper.”
– Ohio Senator Sherrod Brown
Waxman-Markey: Impact Climate Change
“We have to have all the major nations in agreement on future progress. If the
U.S. passed a cap and trade and other countries did not, it wouldn’t work. It
would ruin the U.S. economy and it wouldn’t save the climate either. This is a
global issue …
– Dr. Steve Running, co-author of the Nobel Prize winning Intergovernmental
Panel on Climate Change, and founder of the Climate Change Studies
program at the University of Montana
“Depressed economic growth is what we can expect from the far-reaching
climate-change legislation headed for a vote in the Senate. While
manufacturers support environmental stewardship, we believe the WaxmanMarkey bill would do more economic harm than environmental good."
– Jay Timmons, executive vice president of the NAM
What Do Americans Think
 Bill would have a trivially small effect
on global warming while imposing
substantial costs on all American
households.
 In poll after poll, Americans have clearly
prioritized economic growth over global
warming:
– A new Public Strategies / Politico poll
found that 45% of respondents said
that the economy was the most important issue, while only 4% said global
warming. Of those polled, 62% agreed that “economic growth should be given
priority, even if the environment suffers to some extent.”
– Pew Research Center found that only 36% believe warming was "because of
human activity." Only 36% of those who said they had heard "a lot" about capand-trade were in favor; 64% opposed it.
Recommendation for the Committee
 Recommend the Charlotte Chamber adopt a position similar to the
U.S. Chamber that supports workable, commonsense, realistic
solutions that minimize overall economic impact.
 A realistic and environmentally meaningful climate change bill
should:
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Minimize the impact on major emitters
Reduce price volatility for consumers
Protect global competitiveness
Take advantage of nuclear power / invest in renewable energy sources
Invest in carbon capture and sequestration technology
Increase our own domestic energy security and energy efficiency
Protect against agency regulation under existing laws not written for GHGs
 Current bills in the Congress do not meet these criteria and should
therefore be opposed.
Charlotte Chamber of Commerce
Legislative Committee Meeting
November 11, 2009
Cap and Trade:
The Impact on
Manufacturing and the
North Carolina
Economy