Oregon Agencies Developing Heat and Smoke Rules

With the Pacific Northwest having endured record-breaking heat waves already this summer – as well as the Bootleg Fire in Southern Oregon, the third largest wildfire in state history (as of this writing) – Oregon OSHA is developing rules for employers with employees working outside.  The division adopted a temporary heat rule on July 8 and we expect a temporary smoke rule to be adopted soon. Permanent rules are still in development and likely to be published for comment in August. As always, OBI is at the table advocating for fair and easily implementable rules that protect both workers and employers. If you have any questions, reach out to Paloma Sparks via email. Our partners at SAIF have also developed a guide for employers to prevent challenges with heat and wildfires during the summer months, which you can find here. On July 22, the Bureau of Labor and Industries (BOLI) also adopted temporary rules related to smoke and heat. The rules provide that employees can use sick time to cover absences due to evacuation orders at the employee’s home or workplace. Employees can also use accrued sick time if a public official determines that air quality or heat are at levels that would jeopardize the health of the employee.

OBI Calls on Congress to Act on Infrastructure

For many years, OBI and our partners have urged Congress to pass bipartisan, comprehensive infrastructure legislation that to fix America’s roadways, bridges, waterways, electric grid, public transportation and other facilities. In June, President Biden announced a bipartisan deal with five Democratic and five Republican senators on a nationwide infrastructure package. The package, endorsed by leaders in both political parties, would not raise the corporate tax rate as some other proposals have done. Other proposals have included steep increases in corporate taxes to pay for the investments, which has been broadly opposed by business organizations. On July 22, OBI joined more than 122 other national, state and local business and manufacturing organizations in calling on Congress to advance the bipartisan infrastructure framework, but to do so without creating a substantial new tax burden on business. Read our letter here. It’s unclear whether the bill will move forward before Congress recesses on Aug. 6. OBI will continue to advocate for our members and keep you updated as this important legislation develops.

Legislature Adjourns with Major Wins for Oregon Manufacturers

The 2021 legislative session adjourned at the end of June after operating more than six months in an unprecedented virtual environment. With more than 300 manufacturing members, OBI was focused on several issues that impacted this important economic sector. You can check out our comprehensive 2021 Legislative Report, where the policy team dives into bills that passed, bills that failed, and issues we expect to see again in future sessions. Here are some important manufacturing-related bills from the session that OBI worked on: HB 2358, which did not pass, would have removed the overtime exemption for agricultural employees. We partnered with other business voices to note that this would result in fewer hours for workers and slower delivery of products to markets. HB 3372 originally enhanced the Department of Environmental Quality’s (DEQ) ability to deny or revoke permits for businesses with a chronic history of permit violations. Given that denial or revocation of a permit is a business-killing action, OBI had grave concerns about increasing DEQ’s authority. OBI testified three times on the bill and worked with partners to encourage legislators to limit DEQ’s authority and require the agency to also consider positive compliance history in their evaluation. Ultimately, the bill was narrowed in scope. HB 2698, the so-called “right to repair” bill which did not pass, would have required manufacturers to make certain tools, parts, and documents broadly available to the public. OBI opposed the concept on the basis that it would make a wide variety of consumer electronics more vulnerable to attack and privacy violations because certain documents could be more widely available without an expectation that information be kept confidential. HB 2814, which did not pass, would have established an indirect source review program at DEQ, requiring “indirect sources” – entities that attract mobile sources like cars, trucks and construction equipment to their facilities -- to obtain permits and make mitigation payments. HB 2674, which did not pass, would have created new taxes on the sale of off-road equipment and commercial vehicles, tires, and red-dye diesel fuel. SB 582, which passed, establishes a complex new system for producer responsibility for packaging of materials. It requires producers to join a producer responsibility organization and pay membership fees to pick up costs related to disposal of packaging materials. The bill also establishes various stakeholder groups including a task force to study labeling requirements for recyclability of packaging. OBI played a critical role negotiating this bill and was successful in removing several costly provisions. We remain concerned about how it will be implemented and will engage in rulemaking. It’s also important to note that the 2021-23 general fund budget for the Department of Environmental Quality (DEQ) is $62 million, a 23% increase over the last biennium. With much of its funding coming from fees and other sources, DEQ’s total budget for 2021-23 is $595 million, a 26% increase over the 2019-21 biennium. DEQ budget hearings, OBI testified that DEQ will carry out 64% more rulemakings during 2021 than in the previous three years. We voiced concern about the complexity and interconnectedness of these rulemakings, and the burden they place on the manufacturers.

Celebrate Manufacturing Day with OBI on Oct. 1

Join OBI for our annual celebration of Oregon’s thriving manufacturing sector and the critical role these businesses play in our state economy and our way of life. On Oct. 1, organizations and businesses across the country will mark the occasion with events and acknowledgements in coordination with our partners at the National Association of Manufacturers. With the success of last year’s Zoom event, we’re continuing with the online format and will be taking attendees on a virtual tour of different manufacturers throughout the state, and will host a panel of community leaders to discuss the importance of supporting this industry. We’ll dive into the various challenges facing Oregon manufacturers, and the changing nature of public policy, and we will highlight some of the extraordinary contributions and accomplishments OBI manufacturing members have made throughout the past year as the state has recovered from the pandemic.

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Marathon Rulemaking on Cap & Reduce Program Ends, OBI Providing Feedback

The Oregon Department of Environmental Quality’s (DEQ) “Cap & Reduce” rulemaking to implement Gov. Brown’s Executive Order 20-04 held its seventh and final meeting on July 8, during which the Rules Advisory Committee (RAC) evaluated the fiscal impact of the proposed rule. OBI’s Sharla Moffett is serving on the RAC and is engaging with OBI’s Energy & Environment Steering Committee to provide comments on proposals. The agency has issued a fiscal impact finding for the rulemaking which, in the eyes of many business participants, significantly underestimated the cost these expansive new rules will create for regulated industries and consumers. The draft rule is expected to be out for comment in the first half of August and OBI is working with partner organizations on a private economic impact study. We will be communicating with OBI members when the proposed rule is published, and the public comment period begins. You can view more information on the Climate Protection Program rulemaking on DEQ’s webpage.

Update on Climate Protection Program Compliance for Natural Gas Utilities

The Oregon Public Utility Commission (OPUC) conducted a second workshop to discuss compliance with the Climate Protection Program for natural gas utilities. Natural gas will be regulated under the Climate Protection Program, a central regulatory feature of Gov. Brown’s executive order to reduce greenhouse gas emissions. The program will create compliance costs for covered entities, including natural gas utilities, impacting customers. OPUC is beginning a fact-finding exercise that will include modeling compliance design options and costs. It is critical that OPUC focus on decarbonizing the gas system, rather than eliminating it, and doing so while keeping compliance costs reasonable. OBI is participating in the OPUC workshops and providing comments to the process.

Cleaner Air Oregon/Air Toxics Rules Alignment

The rulemaking aligning the Cleaner Air Oregon (CAO) and Oregon Air Toxics program is currently out for public comment. Although DEQ has described this as essentially a “housekeeping” rulemaking to bring consistency between the newer Cleaner Air Oregon and the older Oregon Air Toxics program, the agency has in fact proposed significant changes to Cleaner Air Oregon that will impact many Oregon businesses qualifying as “stationary sources.” Earlier this year, OBI urged DEQ to set aside substantive rule changes to CAO until the first 20 sources had fully completed the call-in process and DEQ could better evaluate which aspects of the program merited rule changes. At this juncture, 18 sources have been called in (since March 1, 2019), however DEQ has not completed the CAO process for a single facility. Despite this, numerous substantive changes have been proposed that could lead to further cost, delays in permitting new facilities and overall regulatory uncertainty. OBI is currently reviewing the rule and will be submitting comments. The original comment deadline of July 30 has been extended to August 20. Learn more about the rule on DEQ’s webpage.

Radioactive Materials Rulemaking, Seeking Members for Advisory Committee

Rulemaking is expected to begin early this fall to implement SB 246, setting new standards and enforcement provisions for handling and disposing of radioactive material. Oregon’s definition for radioactive material is very low and can include materials used in metals casting, sandblasting and cement manufacturing. A number of OBI manufacturing members may be affected by the new rules. The Oregon Department of Energy is currently seeking businesses to serve on a Rules Advisory Committee (RAC). Applications are due to DOE by July 30. Please contact Sharla Moffett if you are interested in serving on the RAC or have questions about the bill or rulemaking. More information about the rulemaking can be found on Energy Facilities Siting Council’s webpage.

OBI Manufacturing Council to Resume in 2021 OBI is proud to represent hundreds of manufacturing businesses in our advocacy work at the Legislature and before state agencies. We are excited to be bringing back the Oregon Manufacturing Council, which was a tradition of our predecessor organization, Associated Oregon Industries. The mission of the council will be to promote and enhance a positive, globally competitive business climate for manufacturing in Oregon. We are also working with our partners at the Oregon Business Council on strategies and initiatives to ensure Oregon remains a place where manufacturing jobs can thrive and grow. We will be sending a member-wide invitation and introductory email later this summer. OBI’s Tax & Fiscal Policy Director Scott Bruun will be leading the effort. Please email him if you are interested in participating.

Staff Spotlight: Morgan Beltz Morgan joined OBI in January of 2019 and brings years of public affairs, campaign, and fundraising experience to support OBI’s Government Affairs team. She focuses on education, workforce development, and healthcare policy. Morgan earned a Bachelor of Arts in Environment-Economics-Politics from Claremont McKenna College while playing softball. She currently serves on the board of directors for Self Enhancement Inc., a nonprofit that serves Portland youth. She is a native Oregonian and in her free time you can find her golfing, wine tasting, on the river or attending Beaver baseball games with her husband and dog. How does Oregon’s manufacturing sector benefit from our support of workforce investments and career technical education? "Manufacturing remains one of the most important economic sectors in Oregon, with job growth in this sector exceeding the U.S. average each year since 1991," Morgan said. "Our work supporting increased investments in workforce training and career technical education (CTE) is critical to ensure employers have the talent pipeline necessary to continue to grow jobs and be on the forefront of new innovations. Investments to align CTE programs in our high schools and post-secondary institutions around the state will make sure our students are being taught the same skills across the board needed to be successful in manufacturing. Pairing this with workforce development investments will give students the opportunity for on-the-job experience to advance their skills and be trained specifically for high demand occupations. With these types of investments, manufacturers across the state will have access to a broader sustainable talent pool with the skill set needed to be successful."

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