Latest News

Press Release: PMPA Files Comments Supporting Repeal of Power Plant Rule

Jan 16, 2018
For Immediate Release
Contact: Miles Free
mfree@pmpa.org

PMPA Files Comments Supporting Repeal of Power Plant Rule

Washington, D.C. – The Precision Machined Products Association (PMPA) today filed formal comments with the U.S. Environmental Protection Agency supporting the repeal of the Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Utility Generating Units, also known as the Clean Power Plan (CPP) issued under the previous administration.

During its drafting of the rule, the EPA in 2015 announced expected annual electricity cost increases of up to 20%, while industry experts predicted a figure above 30% in many manufacturing heavy states. PMPA members typically average 35-50 employees per shop and while they are smaller businesses, the precision manufacturing process is energy intensive, as the industry uses sophisticated machinery to shape various metals. A survey of PMPA members conducted in 2017 showed that 68% of members spend over $100,000 on electricity, and are subject to a $20,000 increase using the EPA’s conservative figures.

“Our members, the industry, and country are much better served by manufacturers using that $20,000 to hire a young apprentice and putting them on a solid career path rather than sending it to utilities and government regulators,” said Miles Free, Director of Industry Research and Technology at PMPA. “These additional costs not only injure downstream manufacturers, but leads to customers placing fewer orders or seeking offshore lower cost providers,” Mr. Free added. 

PMPA strongly agrees with the current EPA’s position that the CPP does not fit within EPA’s regulatory authority. When the EPA proposed the CPP in 2014, PMPA along with numerous other business organizations, submitted comments voicing concern about the rule’s effect on U.S. manufacturing businesses and their employees. When a company experiences an increase in production costs, whether from increased energy, taxes, or transportation, they must reduce expenses elsewhere, including hiring fewer employees and investing in less equipment.

In the coming months, the EPA will issue a new proposed rule replacing the CPP, which the PMPA hopes will include technologically proven and cost-effective approaches to directly address pollution “inside the fence line.”

 ###

The Precision Machined Products Association (PMPA) is a national trade association representing over 440 member companies involved in the production of highly engineered, precision machined components used in advanced automotive, aerospace, electrical, construction, and medical technologies PMPA’s members include metal producers, machining and manufacturing companies, machine tool builders, and producers of tooling, software and accessories, and metalworking fluids. The precision machining industry is best described by NAICS code 332721, and accounts for over 99,400 jobs with payrolls of $5.1 billion and shipments of over $18.4 billion. The mission of the PMPA is to provide the information, resources and networking opportunities to advance and sustain its members while advocating for manufacturing throughout the United States.

Contact Information

  • Miles Free, PMPA Director of Industry Research and Technology
  • mfree@pmpa.org
  • 440-526-0300