Michigan...It is time to seize the opportunity

Although it is officially summer, there is a big chill across Michigan. With the auto industry firmly in control by the federal government, Congress continues to focus on the economy, the environment and on everyone’s health. Just before the July 4th recess, the U.S. House of Representatives passed The American Clean Energy and Security (ACES) Act (HR 2454), a major piece of legislation affecting climate change, energy and the environment.

While Detroit and the entire state of Michigan continue to struggle, we must find opportunity amidst crisis and take advantage of every and any opportunity to restore stability to Michigan’s economy. There is no doubt that our struggling automakers and suppliers will receive additional help once ACES passes Congress. The American Recovery and Reinvestment Act (ARRA) also will provide much needed assistance for Detroit and for Michigan.

Restoring stability and setting a path to economic diversity requires leadership to make a bad situation good. The climate change legislation contains a number of provisions that can bolster our state’s position, bring our auto industry into the next generation and help diversify our state’s economy so we are no longer a one-industry town. This includes:

• Retooling existing and recently abandoned plants to meet new fuel and energy standards.
• Retrofit plants to accommodate electronic vehicle production.
• Securing funding for Detroit’s efforts to create light rail and mass transit in the region and become a model for other communities by adapting the latest and cleanest transportation technology.
• Direct engineers leaving the auto industry to create new companies to support the development and commercialization of clean energy technology.
• Lobby the federal government to have Detroit house one of eight regional Clean Energy Innovation Centers.
• Celebrate our collaborative efforts to incubate new companies in partnership with our universities through the University Research Corridor and Next Energy and identify federal resources to expand Next Energy and Tech Town.

This bill also contains a number of provisions vital to the growth of green vehicles and a number of opportunities to keep the engineers, designers and line workers recently laid off, from the auto industry, employed in Michigan. By no means is this a perfect piece of legislation, and it does not necessarily favor Detroit over other regions. However, it is a blueprint by which Detroit and this state must change if we are to weather this storm and restore stability to our economy and to our people. We as a state must work together to leverage our assets and seize the opportunities provided to us in this legislation. By taking advantage of the tools given to us, we can take advantage of the incentives and financial opportunities to retool our economy and emerge much stronger than we have ever been.

Congress' Road Ahead

Congress returned to work this week after a seven-month marathon, passing the following issues:

- The economic stimulus package;
- Curbs on abusive credit card practices;
- An omnibus bill setting government spending for the current fiscal year;
- A budget resolution outlining plans for the next fiscal year;
- A supplemental spending bill to fund the Iraq and Afghanistan wars;
- Expansion of the State Children's Health Insurance Program;
- An equal pay anti-discrimination bill;
- Sweeping tobacco regulations;
- Pentagon acquisition reforms;
- A public lands package designating more than 2 million acres as protected wilderness;
- Expansion of national service programs.

The come back to work with an aggressive agenda, to tackle important issues before they go on their August recess, including:

Energy and Climate Change Legislation

The House passed their version in late June. The Senate is planning on debating a bill now before the Senate Environmental and Public Works Committee sometime in the fall. Senate Majority Reid has indicated that he will merge the climate-change legislation with the energy legislation that has already been approved by the Senate Energy and Natural Resources Committee.

Health Care Reform

Health Care remains the President's top priority, however, it is not without its challenges.  The House is planning on voting on health care reform before their August recess but is running into roadblocks by conservative Democrats. The Senate will debate health care sometime after that but obstacles remain in passing truly comprehensive reform.

Appropriations

Congress is about to pass their first set of appropriation bills but, as with most years these days, not all the spending bills will be passed by the start of the next fiscal year -- October 1, 2009.

Transportation

The current highway bill expires September 30, 2009, leaving hundreds of transportation projects in jeopardy of completion. The President wants to extend that deadline for 18 months and provide a 'pay-as-you-go' strategy to help jump start some of those projects. With health care reform and climate change still on the table, in addition to all of the appropriation bills that have yet to be passed, the transportation reauthorization will likely get extended into 2010.

Financial Regulation

Last month, the President introduced a number of regulations pertaining to the financial industry. Before August, Rep. Barney Frank (D-Mass), Chair of the House Financial Services Committee, will markup the legislation revamping the financial regulatory system, including a measure that would create a new Consumer Financial Protection Agency. The House is expected to vote on this measure, sometime in the fall.

Food Safety

Congress remains interested in tightening inspections and imposing new fees on food safety. This could have an impact on area food banks, schools and speciality food retail shops.

Education

The President wants to eliminate the subsidized private student lending program and shift to a direct loan program to help save money. There is also an effort to expand Title IX (the federal law barring discrimination in education on the basis of sex) to help bolster female student's interest in science, technology, engineering and mathematics.

Immigration

After energy, health care and financial industry reform, the President wants Congress to pass comprehensive immigration reform. However, a lack of votes and time will likely push this issue into next year.

The decisions Congress makes has a large impact on how we do business and in how we conduct our lives.  Although we face many challenges during this difficult time, now is the time to engage lawmakers and regulatory agencies in a discussion about how your company is affected and what legislative steps you can take to emerge from this economy, stronger, more efficient and ready to expand in the next economy.