Released April 02, 2021 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Like so many other large governmental spending proposals in recent years, the Biden administration's $2.25 trillion infrastructure proposal, the American Jobs Plan, unveiled Wednesday at a carpenter's training center in Pittsburgh, Pennsylvania, is something of a Rorschach Test: Different parties saw different things in the ambitious plan. But the sheer breadth of the plan meant even those that welcomed the proposal found some elements with which they disagreed. Similarly, those who criticized the plan still found something they liked. So rather than black & white, many of the industry responses were varying shades of grey.
For more on the American Jobs Plan, see April 1, 2021, article -- Biden Unveils Infrastructure Plan, Proposes Corporate Tax Hikes. Earlier this week, in a separate move that connects to Wednesday's infrastructure plan, the administration announced an effort to support the construction of up to 30,000 megawatts (MW) of offshore wind generation in the Atlantic Ocean. For more on that, see March 31, 2021, article -- Biden Aims to Dramatically Boost Offshore Wind Generation in the Atlantic.
Business groups like the Business Roundtable (Washington, D.C.) and the U.S. Chamber of Commerce (Washington, D.C.) criticized the tax increases Biden proposed to pay for the plan, but they liked the idea of expanded capital projects and the jobs they would create.
In a statement, Business Roundtable President & Chief Executive Officer Joshua Bolten said: "The Business Roundtable has long supported user fee models, which includes business paying its share, to provide sustainable support for infrastructure investment. ... The Business Roundtable strongly opposes corporate tax increases as a pay-for for infrastructure investment. Policymakers should avoid creating new barriers to job creation and economic growth, particularly during the recovery."
Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce, echoed the support for user fees, not taxes, to fund the projects. "We need a big and bold program to modernize our nation's crumbling infrastructure and we applaud the Biden administration for making infrastructure a top priority. However, we believe the proposal is dangerously misguided when it comes to how to pay for infrastructure. Properly done, a major investment in infrastructure today is an investment in the future, and like a new home, should be paid for over time -- say 30 years -- by the users who benefit from the investment. We strongly oppose the general tax increases proposed by the administration."
Both groups urged bipartisan cooperation in passing legislation.
Oil and gas groups, such as the American Petroleum Institute (API) (Washington, D.C.) and the Independent Petroleum Producers of America (IPAA) (Washington, D.C.) similarly supported and opposed certain aspects of the measure.
Frank Macchiarola, API's senior vice president for policy, economic and regulatory affairs, said: "We support the administration's goal of modernizing the nation's infrastructure -- including roads, bridges, rail and ports. We also welcome the administration's efforts to address the risks of climate change by incentivizing innovation for hydrogen and (carbon capture, utilization and storage projects) as part of this infrastructure package. At the same time, this proposal misses an opportunity to take an across-the-board approach to addressing all our infrastructure needs -- including on modern pipelines." He also worried that new taxes would undercut the economic recovery, and potentially cost union jobs.
Another oil and gas group, the IPAA, which represents independent exploration and production companies, had similar concerns about raising corporate taxes. The group liked plans to rebuild the roads and bridges, over which a lot of oil is transported, and expand the electric grid, over which a large amount of natural gas-generated electricity is transmitted. But it urged the administration not to overlook natural gas in the nation's energy mix.
The nation's largest electricity trade group, the Edison Electric Institute (EEI) (Washington, D.C.), found a lot to like, and nothing to publicly dislike, in the Biden plan. EEI President Tom Kuhn said the group and its members "are pleased that President Biden and his administration are focused on building and enhancing our nation's infrastructure. We welcome policies that create jobs and encourage investment in clean energy technologies, the energy grid, electric vehicle charging and middle-mile broadband." He said his member companies are "leading by example on clean energy and are committed to getting the energy they provide as clean as they can as fast as they can, without compromising on the reliability and affordability that our customers value." He applauded the administration's support for research & development for non-emitting generation resources that can be dispatched 24/7, meaning nuclear power.
Another electric trade group, the National Rural Electric Cooperative Association (NRECA) (Arlington, Virginia), relatively few of whose members own electric generation, also applauded the administration's plan. The group's chief executive, Jim Matheson, said: "We are encouraged to see electric co-op priorities reflected in President Biden's infrastructure proposal. As we plan for a future that depends on electricity as the primary energy source for a majority of the economy, strategic investments in grid modernization and energy innovation are critical. Equally important is support for expanded rural broadband and other efforts to help rural families and businesses. ... And efforts to improve electric grid reliability are important, but should not negate the necessity of an energy mix that includes natural gas."
Unions and union members loved the Biden plan's potential to create new craft jobs. Engineering groups and construction firms that build roads, bridges and tunnels thanked the president for heeding their decades-long call for enhanced investment in the nation's physical infrastructure. For more information, see March 4, 2021, article - U.S. Energy Infrastructure Receives Improved Grade on Report Card from Civil Engineers and March 26, 2021, article - U.S. Cement Manufacturers Keep Hopes Up for U.S. Infrastructure Repair Plan.
By putting so many goodies for so many stakeholder groups in the American Jobs Plan, the president may be seeking those groups' support because the plan faces an uncertain fate on Capitol Hill. Republicans are in a minority in both the House and Senate, but they appear united in their opposition to the plan. Unless the Senate filibuster rule is modified or eliminated, the GOP may have the votes to block the bill in the Senate.
The New York Times reported that Senate Minority Leader Mitch McConnell, speaking at an event in Kentucky, said the president had called him about the proposal, but suggested he was unlikely to support the package, calling it a "Trojan horse."
"Inside the Trojan horse is going to be more borrowed money and massive tax increases on all the productive parts of our economy," the Times reported McConnell said at the event. The Times said White House officials were hoping to "pick off a few moderate Republicans, in part to nominally assert that the bill has bipartisan support." But the newspaper said Republican operatives already were working to keep their troops in line.
"When you are talking about tax hikes of this magnitude, I don't see there being any Republican support on the Hill," said Marc Short, a longtime aide to former Vice President Mike Pence, in an interview with the Times. Short, a veteran of anti-tax campaigns who worked for the Koch Brothers' political network, has launched a new group, the Coalition to Protect American Workers, which is planning to raise $25 million to $50 million from conservative donors to fight Biden's plan.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
For more on the American Jobs Plan, see April 1, 2021, article -- Biden Unveils Infrastructure Plan, Proposes Corporate Tax Hikes. Earlier this week, in a separate move that connects to Wednesday's infrastructure plan, the administration announced an effort to support the construction of up to 30,000 megawatts (MW) of offshore wind generation in the Atlantic Ocean. For more on that, see March 31, 2021, article -- Biden Aims to Dramatically Boost Offshore Wind Generation in the Atlantic.
Business groups like the Business Roundtable (Washington, D.C.) and the U.S. Chamber of Commerce (Washington, D.C.) criticized the tax increases Biden proposed to pay for the plan, but they liked the idea of expanded capital projects and the jobs they would create.
In a statement, Business Roundtable President & Chief Executive Officer Joshua Bolten said: "The Business Roundtable has long supported user fee models, which includes business paying its share, to provide sustainable support for infrastructure investment. ... The Business Roundtable strongly opposes corporate tax increases as a pay-for for infrastructure investment. Policymakers should avoid creating new barriers to job creation and economic growth, particularly during the recovery."
Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce, echoed the support for user fees, not taxes, to fund the projects. "We need a big and bold program to modernize our nation's crumbling infrastructure and we applaud the Biden administration for making infrastructure a top priority. However, we believe the proposal is dangerously misguided when it comes to how to pay for infrastructure. Properly done, a major investment in infrastructure today is an investment in the future, and like a new home, should be paid for over time -- say 30 years -- by the users who benefit from the investment. We strongly oppose the general tax increases proposed by the administration."
Both groups urged bipartisan cooperation in passing legislation.
Oil and gas groups, such as the American Petroleum Institute (API) (Washington, D.C.) and the Independent Petroleum Producers of America (IPAA) (Washington, D.C.) similarly supported and opposed certain aspects of the measure.
Frank Macchiarola, API's senior vice president for policy, economic and regulatory affairs, said: "We support the administration's goal of modernizing the nation's infrastructure -- including roads, bridges, rail and ports. We also welcome the administration's efforts to address the risks of climate change by incentivizing innovation for hydrogen and (carbon capture, utilization and storage projects) as part of this infrastructure package. At the same time, this proposal misses an opportunity to take an across-the-board approach to addressing all our infrastructure needs -- including on modern pipelines." He also worried that new taxes would undercut the economic recovery, and potentially cost union jobs.
Another oil and gas group, the IPAA, which represents independent exploration and production companies, had similar concerns about raising corporate taxes. The group liked plans to rebuild the roads and bridges, over which a lot of oil is transported, and expand the electric grid, over which a large amount of natural gas-generated electricity is transmitted. But it urged the administration not to overlook natural gas in the nation's energy mix.
The nation's largest electricity trade group, the Edison Electric Institute (EEI) (Washington, D.C.), found a lot to like, and nothing to publicly dislike, in the Biden plan. EEI President Tom Kuhn said the group and its members "are pleased that President Biden and his administration are focused on building and enhancing our nation's infrastructure. We welcome policies that create jobs and encourage investment in clean energy technologies, the energy grid, electric vehicle charging and middle-mile broadband." He said his member companies are "leading by example on clean energy and are committed to getting the energy they provide as clean as they can as fast as they can, without compromising on the reliability and affordability that our customers value." He applauded the administration's support for research & development for non-emitting generation resources that can be dispatched 24/7, meaning nuclear power.
Another electric trade group, the National Rural Electric Cooperative Association (NRECA) (Arlington, Virginia), relatively few of whose members own electric generation, also applauded the administration's plan. The group's chief executive, Jim Matheson, said: "We are encouraged to see electric co-op priorities reflected in President Biden's infrastructure proposal. As we plan for a future that depends on electricity as the primary energy source for a majority of the economy, strategic investments in grid modernization and energy innovation are critical. Equally important is support for expanded rural broadband and other efforts to help rural families and businesses. ... And efforts to improve electric grid reliability are important, but should not negate the necessity of an energy mix that includes natural gas."
Unions and union members loved the Biden plan's potential to create new craft jobs. Engineering groups and construction firms that build roads, bridges and tunnels thanked the president for heeding their decades-long call for enhanced investment in the nation's physical infrastructure. For more information, see March 4, 2021, article - U.S. Energy Infrastructure Receives Improved Grade on Report Card from Civil Engineers and March 26, 2021, article - U.S. Cement Manufacturers Keep Hopes Up for U.S. Infrastructure Repair Plan.
By putting so many goodies for so many stakeholder groups in the American Jobs Plan, the president may be seeking those groups' support because the plan faces an uncertain fate on Capitol Hill. Republicans are in a minority in both the House and Senate, but they appear united in their opposition to the plan. Unless the Senate filibuster rule is modified or eliminated, the GOP may have the votes to block the bill in the Senate.
The New York Times reported that Senate Minority Leader Mitch McConnell, speaking at an event in Kentucky, said the president had called him about the proposal, but suggested he was unlikely to support the package, calling it a "Trojan horse."
"Inside the Trojan horse is going to be more borrowed money and massive tax increases on all the productive parts of our economy," the Times reported McConnell said at the event. The Times said White House officials were hoping to "pick off a few moderate Republicans, in part to nominally assert that the bill has bipartisan support." But the newspaper said Republican operatives already were working to keep their troops in line.
"When you are talking about tax hikes of this magnitude, I don't see there being any Republican support on the Hill," said Marc Short, a longtime aide to former Vice President Mike Pence, in an interview with the Times. Short, a veteran of anti-tax campaigns who worked for the Koch Brothers' political network, has launched a new group, the Coalition to Protect American Workers, which is planning to raise $25 million to $50 million from conservative donors to fight Biden's plan.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
