CED

October 2013

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Industry Beat Final Phase of U.S. Chamber-Sponsored Study Details Jobs Created by Shale in Manufacturing Sector Latest volume of IHS Report also shows that increased regulations on shale could hamper job growth. The third and final phase of a comprehensive study co-sponsored by the U.S. Chamber's Institute for 21st Century Energy demonstrates that the impact of shale energy production on America's economy goes well beyond the energy industry itself – but it could be in jeopardy if the U.S. adopts more restrictive policies or regulations. "Volume Three of America's New Energy Future: The Unconventional Oil and Gas Revolution and the U.S. Economy," produced by the leading independent global energy research firm IHS, focuses specifically on manufacturing, chemical and other "downstream" activities. The study shows that shale supports nearly 377,000 jobs in these areas, in addition to the 1.7 million jobs supported by shale energy development – for a total of 2.1 million jobs. "The final phase of the IHS Study confirms that shale is making a positive impact across our economy," said Karen Harbert, president and CEO of the Energy Institute. "The study shows that shale energy development increased the real disposable income of the average American household by more than $1,200 in 2012, providing further evidence that energy is America's true stimulus, creating more jobs than any other industry today." Overall, $216 billion will be invested in downstream activities like manufacturing and midstream activities like transportation from 2012-2025 as a result of shale. Manufacturing output is expected to increase by $258 billion in 2020 and $328 billion in 2025, while increased industrial production is projected to generate $180 billion per year in additional net trade. Combined with jobs related to producing shale energy, shale will be responsible for 3.9 million jobs by 2025, and produce $1.6 trillion in government revenue – if new regulations don't hamper shale energy production. All three phases of the study are available at: www.energyxxi.org/shale Appeals Courts Deny NLRB Requests to Rehear Poster Rule Case Short-Haul Exemption Clarified in Complex HOS Rules On Sept. 4, the U.S. Court of Appeals for the D.C. Circuit became the second court to deny a request by the National Labor Relations Board (NLRB) to review a decision to invalidate the NLRB's August 2011 "Notification of Employee Rights" rule. Under the rule, employers would have been required to display a poster in their workplace that contained a biased and incomplete list of employee rights under the National Labor Relations Act (NLRA). The D.C. Circuit's denial came less than a month after the U.S. Court of Appeals for the Fourth Circuit denied a similar request on Aug. 12. A three-judge panel for the D.C. circuit invalidated the notice posting rule May 7, primarily on the grounds that it violated free speech rights afforded to employers under the NLRA. The fourth circuit court ruled June 14 the NLRB exceeded its authority when it adopted the rule but said it did not need to address the free speech issue because the NLRB clearly lacked the authority to promulgate the rule in the first place. The Associated Builders & Contractors participated in oral arguments against the rule in the D.C. Circuit appeals court in September 2012, stating it would force some six million employers around the country to communicate a pro-union message to their employees for the first time in the history of the NLRA. ABC also argued the board cannot show that Congress expressly or implicitly delegated authority to issue the rule and that it violates the plain language of numerous provisions of the NLRA Act, including Section 8(c), which states "expressing of any views shall not constitute or be evidence of an unfair labor practice." On Aug. 7, the Federal Motor Carrier Safety Administration (FMCSA) clarified the classification of "short-haul" truck drivers. These individuals were carved out from the 30-minute break rule in the recent decision by the U.S. Court of Appeals for the D.C. Circuit, upholding the Hours of Service (HOS) regulations that took effect on July 1. FMCSA's guidance document explains that the short-haul operations exemption will apply to drivers (commercially and noncommercially licensed) who operate within 100 air-miles of their normal work reporting location, as well as noncommercially licensed drivers who operate within a 150 air-mile radius of the location where they report for duty. The 30-minute break requirement under the HOS provisions dictates that any nonexempt driver must take an off-duty break for at least 30 minutes every eight hours of driving. Despite the FMCSA's clarification on the short-haul driver exemption, the HOS rules remain complex and cumbersome to navigate. AED is coordinating with construction industry colleagues and key lawmakers on Capitol Hill to determine next steps. 14 | www.cedmag.com | Construction Equipment Distribution | October 2013 14_industry beat_KP.indd 14 9/26/13 2:10 PM

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