May 15, 2007   

TEXAS MANUFACTURERS EMBRACE POLICIES TO PROTECT JOBS
Association Details 2007 Legislative Initiatives and Policy Principles

Austin, TX – As the legislative session nears the home stretch, the Texas Association of Manufacturers (TAM) issued today a summary of its advocacy activities. TAM’s advocacy initiatives align with the association’s policy principles designed to protect and grow manufacturing jobs.

“TAM operates with an eye toward public policy’s impact on jobs, the economic prosperity of Texas, and manufacturers’ ability to remain domestically and globally competitive,” said Tony Bennett, chairman of TAM. “We are encouraged to see so many innovative ideas and proposals to improve Texas and are working closely with our lawmakers to address the state’s challenges.”  

The high cost of energy in Texas has been among TAM’s top legislative priorities for the 2007 Legislative Session.  “Texas-sized energy bills needed our attention this session,” said Bennett.  “We’ve been working closely with our lawmakers who have been diligent in working with us to tackle our state’s energy challenges.” 

Specifically, TAM has focused on legislation to maintain reliable electricity, promote competitive solutions to diversify energy sources, and to protect Texas electricity consumers, according to Bennett. 

The promotion of a broad-based, equitable tax system is among TAM’s other priorities. “Our goal is to maintain the structural integrity of the new margins tax while seeking some technical clarifications that make the new tax more clear and fair,” he said. “We urge the Legislature to resist changing fundamental components of this carefully constructed tax.”

The Association has also been monitoring bills that impact civil justice in Texas. “Several proposals have emerged that will improve the judicial system by closing litigious loopholes, enhancing the experience of jurors, and reorganizing our courts,” he said. 

Other bills threaten to roll back civil justice reforms in Texas and threaten Texas’ competitive edge, according to Bennett. “We are especially concerned about proposals that will undo reforms that have dramatically improved the Texas legal environment. Flawed tort proposals and new causes of action can threaten jobs and workplace safety, increase the cost of construction, increase questionable lawsuits, and even eliminate the right to contract.” 

With regard to the environment, TAM is committed to existing air quality initiatives that are producing remarkable results, according to Bennett. “Texas has made incredible strides in air quality,” he said. “Manufacturers want to stay the course. We recognize the pitfalls of conflicting ordinances that threaten effective enforcement of state and federal standards. Imposing piece-meal regulation that conflicts with existing standards is not conducive to the long-term investment manufacturers must make to continue our progress to improve air quality.” 

Among others, TAM supports important air quality programs that offer grants and other financial incentives for NOX emission reductions and those that provide low-income Texans with repair service and assistance in purchasing newer, cleaner vehicles, to reduce mobile source emissions in our state’s non-attainment areas. “Programs like these are an innovative way to continue our progress in improving air quality,” he said.

TAM also supports measures to address the state’s long term water infrastructure needs with regard to environmental flows and planning.

To keep Texas economy moving, TAM supports transportation proposals that help expedite the permitting process and helps modernize and improve the Texas transportation infrastructure.  “Texas is a fast growing state - our commerce can’t move without efficient permitting, manufacturers can’t move without permits. Our lawmakers’ efforts to make more transportation more efficient are well-placed,” said Bennett. 

Proposals relating to eminent domain could also impact transportation, utility and energy infrastructure, according to Bennett. “Texas needs eminent domain policy that includes clear standards and a solution that balances the public interest and critical infrastructure.” 

A complete listing of the Texas Association of Manufacturing principles is below:
 

Texas Association of Manufacturers -- Policy Principles and 2007 Initiatives

Energy
The Texas Association of Manufacturers (TAM) supports policy initiatives that:

• Encourage the development of market-based and cost-effective generation sources that will provide Texas with greater generation fuel diversity, including market-based, cost-effective renewable sources.
• Expand Texas natural gas supplies through exploration and other mean (such as liquefied natural gas).
• Require an appropriate sharing of transmission infrastructure costs between producers and consumers of electricity.
• Support the development of transmission infrastructure that will lower manufacturers’ electricity costs and enhance reliability.
• Streamline the generation facility permit processes to encourage more timely expansion of cost-effective energy supplies.
• Remove barriers for and encourage the development of market-based, cost-effective load response programs.
• Rededicate the “system benefit fund” for its statutory purpose.

Water
TAM supports policy initiatives that:

• Promote cost-effective solutions to meet the state’s water needs by proportionally distributing any costs in developing Texas water infrastructure statewide among all consumers. 
• Promote water reuse incentives and sustainability initiatives developed in collaboration with innovative manufacturing partners to reduce the burden on the proposed water infrastructure.

Air
TAM supports policy initiatives that:

• Maintain current, ongoing initiatives which have dramatically improved air quality in Texas and do not interfere with effective enforcement of existing effective state and federal air quality standards. 
• Promote continued industry investment in technologically and economically feasible emission reduction solutions through market-driven measures rather than mandates.
• Maintain automobile fleet turnover programs such as Low-Income Repair Assistance Program (LIRAP) that promote cleaner automotive usage and dramatically reduce mobile emissions.
• Maintain cost-effective programs like Texas Emissions Reductions Plan (TERP) that are critical to reduce air emissions.
• Make air quality attainment requirements feasible to avoid unrealistic plans that risk Texas transportation funding, halt road construction and accelerate manufacturing job loss and relocation.
• Encourage investment in the development of cutting-edge technologies to continually improve air quality through market-driven measures rather than mandates.  
• Promote certainty and uniformity in regulatory standards, rules and regulations that make long-term manufacturing investment feasible and take into consideration international competitive factors.

Tax
TAM supports policy initiatives that:

• Promote a competitive business tax environment in all state and local taxes.
• Maintain the structural integrity of Texas’ new margins tax while seeking legislative and administrative technical changes and/or clarifications to create greater clarity and fairness in the new tax.
• Establish a sales tax exemption on research and development (R&D) materials and equipment, which follows closely the exemption for manufacturing materials and equipment,
• Oppose attempts to further distinguish tax roles of residential and commercial entities, such as appraisal caps.
• Oppose any increase in local option sales taxes beyond the current 2% cap.

Transportation
TAM supports policy initiatives that:

• Promote a market-driven, cost-effective transportation infrastructure that allows for efficient and competitive transport through the seaports, land ports, roads, and railroads of Texas.
• Expedite the permitting process to include timely response to permitting requests so manufacturing construction and investment can move forward in a reasonable, timely manner
• Encourage expeditious traffic flow, which improves the environment, promotes efficiency and benefits consumers through reduced costs. 

Competitiveness
TAM supports policy initiatives that:

• Keep Texas on the competitive cutting edge to attract manufacturers and grow jobs. Renewal of the Texas Enterprise Fund and Texas Emerging Technology Funds are critical in keeping Texas competitive. 
• Foster an effective, efficient, and standards-based K-12 education system so the future Texas workforce can keep pace with international manufacturing competitors like India and China.
• Promote workforce readiness and provide incentives for universities, community colleges and technical schools to increase the number of graduates in critical fields such as engineering, math, physical science, and math and science teacher education. 
• Support a fair and equitable civil justice system that promotes a sound business environment capable of attracting and retaining manufacturing jobs.
• Ensure that Texas manufacturers continue to have the right as employers to set terms of employment and rules for their workplace related to prohibition of firearms on their private property or other safety measures.

Contact: Gretchen Fox, 512-694-4326