A cornerstone of American power and success is predicated on our manufacturing might.
As factories transition in the 21st century, new technological innovations boost American industry and support more efficient and productive manufacturing activity.
For example, new technologies could help coal plants burn coal cleaner with reduced emissions.
Accordingly, many domestic manufacturers are interested in seizing the moment by adopting 21st century innovations.
However, many manufacturers from furniture makers to steel manufacturers seek to make efficiency modifications or improvements to their facilities and plants. And yet, they often refrain from doing so.
This is because of something called New Source Review (NSR).
NSR regulations fall under the Clean Air Act.
Once triggered, the NSR process can jeopardize the air permit for the entire manufacturing facility.
Accordingly, a plant could be put out of business, even though the efficiency upgrades would result in a net reduction in plant emissions!
One example that I frequently cite is the Vaughan-Bassett Furniture manufacturing plant in Galax.
When I have toured the plant, I have viewed the plant’s production process and the work of its craftsmen.
This facility possesses what I call the “long conveyor belt to nowhere.”
It was clear that this “conveyor belt to nowhere” did not serve a meaningful purpose. At the very least, it made the production process less efficient.
To most people, it would make sense to rearrange this feature and save production time on every piece of furniture manufactured there.
However, lawyers for Vaughan-Basset advised the factory that removing any part of the conveyor belt system could possibly trigger an NSR analysis, thus threatening the entire facility’s air permit and thus the legal ability of the plant to operate.
Accordingly, they do not touch the “conveyor belt to nowhere.”
You may ask, “why should I care?”
And the answer is this.
Vaughan-Bassett is an American manufacturer. It competes with Asian furniture manufacturers.
Every second, every minute that is added to the process reduces the efficiency of the manufacturer and adds costs to the production.
We will never beat the Asian countries on wages. Nor should we.
But we can be more efficient. NSR in many cases prevents us from being more efficient and more competitive in the marketplace.
These NSR issues pose challenges to manufacturers in Virginia’s Ninth District and across the country.
Accordingly, for multiple Congresses, I introduced legislation to correct this misguided practice to deliver clarity for American manufacturers and promote plant efficiency improvements.
This year, my New Source Review Permitting Improvement Act was considered by the House Committee on Energy Commerce, on which I serve.
During remarks on my NSR reform bill, I highlighted that numerous industry groups and labor unions support my bill. That includes the United Mine Workers of America, the National Mining Association and the U.S. Chamber of Commerce.
As debate occurred on my NSR reform bill, Committee Democrats introduced several amendments.
One such introduced amendment happened to unintentionally target Appalachian communities!
The Democratic amendment proposed that my reform bill could not apply to any facility or plant that uses any electricity generated from coal.
Therefore, under the Democrats’ amendment, any coal plant that generates electricity or any facility that uses coal-generated electricity would likely not be able to make efficiency upgrades!
There wasn’t even a limit. It was a blanket application to all facilities with coal-generated electricity, regardless if the facility needs 90% of its electricity generated from coal or 1%.
Therefore, our manufacturing plants would be barred from using the reforms to improve their facilities!
I raised my objections to the proposed amendment during the hearing.
I specifically outlined the threat that such an idea would pose to Virginia’s Ninth District and central Appalachian communities at large.
Facilities in our region rely on coal for electricity purposes and industrial processes. By handicapping our manufacturers in the Ninth District, our factories would lose business and we would lose jobs.
The consequences could be devastating for our communities.
Luckily, we defeated the Democrats’ amendment and my bill was reported favorably by the Committee.
However, this episode illustrates just how out of touch DC Democrats are on energy policy and exposes their radical zeal to eradicate coal from our energy mix.
If DC-style Democrats get their way, we will see even higher costs on our electric bills and less reliability.
I will continue fighting against anti-coal policies and promoting commonsense energy policy to ensure we have the backs of American manufacturing workers.
If you have questions, concerns, or comments, feel free to contact my office. You can call my Abingdon office at 276-525-1405 or my Christiansburg office at 540-381-5671. To reach my office via email, please visit my website at https://morgangriffith.house.gov/.
