Federal Issues

  • Clean Coal Letter
    June 16, 2009

    Re: Expansion of Clean Coal Energy Facilities

    The future of Michigan depends on a stable and diverse fuel supply, and clean coal technology is a perfect match offering competitive prices and a proven effectiveness at being environmentally friendly. Coal is the most abundant natural resource in the United States Supply reserve, exceeding 250 years (more than the Saudi Arabian oil reserves). And to maintain its low emissions Consumers is working on CO2 sequestration with Western Michigan University, in an effort to further build the most current clean coal technology available. For those reasons the Kalamazoo Regional Chamber of Commerce supports expansion of these types of facilities.

    In a firm step towards a greener tomorrow, Consumer's Energy has announced plans to expand its Karn/Weadock Generating Complex by building a new 800-megawatt advanced supercritical pulverized clean coal power plant. Consumers Energy's Clean Coal plant can control emissions and produce an environmentally friendly source of energy, before 2017.

    Compared to other renewable energy sources, coal will allow Michigan to be self sufficient for longer, without excess damage to the environment. Clean coal is also less expensive than current renewable energy sources and more reliable; wind is only reliable 20-25 percent of the time. Consumers Energy is however working very hard to meet Michigan's 21st Century Energy Plan goal of 10 percent goal of renewable sources for all power generated.

    This project is indeed a breath of fresh air for Michigan. Even today Michigan's air is the cleanest it's been in the modern era, and hopefully will continue to improve due to projects like this. Regardless of what opponent's claims, clean coal technology is a reality, and Consumer's Energy has reduced its sulfur dioxide emissions by 80 percent and nitrogen oxide emissions by 70 percent at its other coal fired power plants. Behind the rhetoric and politics of this $2 billion project, the facts are simple and in plain sight: Clean coal can keep Michigan beautiful and running for decades to come.

    The Karn/Weadock Generating Complex currently employs 370 people, but during its construction this project will provide work for nearly 1,800 people and after its construction it will create 100 permanent positions. Even today the Generating Complex is beginning to grow outdated, with the power generation starting to wear out. This project will not only harness the capabilities of clean coal, but also update the Generating Complex.

    Consumer's Energy clean coal plant will not only aid Michigan's economy but also maintain Michigan's beauty. This impressive plan can only be made possible with support, and the Chamber of Commerce proudly supports this opportunity at a cleaner and more efficient Michigan.

    Sincerely,



    Steward Sandstrom, CCE

    President and CEO
  • Expansion of Unemployment Benefit
    Chamber Opposes Expansion Of Unemployment Benefits Through Use Of Stimulus Funding.

    The Kalamazoo Regional Chamber of Commerce is joining other Chambers of Commences and thousands of business throughout the state in opposition to a proposed unemployment insurance tax increase (H.B 4785-86) being considered by the Michigan Senate.

    Our opposition is well described in the below memo, sent to the Michigan Senate on July 13, 2009 by 100 businesses from throughout the state. The Unemployment Insurance Benefit legislation in question would allow Michigan to receive a one time $138 million check from the U.S government, in exchange for permanent changes to Michigan's unemployment insurance structure. The state would exhaust this federal money in about one year, leaving employers to foot the bill for these increased costs for the future. Not only will the changes to our unemployment insurance structure be permanent, so will the $69.7 million per year tax that will have be bourn by our state's job providers.

    In summary, the Kalamazoo Regional Chamber of Commerce, on behalf of its more than 1,800 member business, urges all State Senators to save current and future jobs by defeating this legislation which would be extremely detrimental to our state's economic future.

    To: Honorable Members of the Michigan Senate
    From: Concerned Michigan Business Owners and Representatives
    Date: July 13, 2009

    Re: Oppose House Bills 4785-86, Unemployment Insurance Tax Increase

    As businesses of every size and industry and employing thousands of Michigan workers, we are writing to express our strong opposition to two bills passed by the House in May of 2009 to expand Michigan's 100 percent employer-financed unemployment insurance system. We are currently struggling to provide jobs, pay our taxes and survive the current economic environment in Michigan. These bills, which are now in the Senate Commerce Committee, would make this situation even worse. House Bills 4785-86 seek to expand unemployment insurance (UI) benefits to individuals who are not currently eligible to receive them. The expansion would provide benefits to part-time workers (i.e., persons who would be allowed to turn down an offer of full-time employment and still be allowed to collect an unemployment check) and extend benefits (i.e., an additional 26 weeks on top of the current 79 weeks) to claimants enrolled in work training programs.

    The extra costs for these two changes will drive up employer UI taxes to the tune of $70 million dollars per year, every year. Because Michigan's unemployment insurance system is financed by Michigan employers through a payroll tax, these increased costs will immediately result in a payroll tax increase on Michigan job providers -- and come at a time they can least afford it. The only reason for this legislation is so that Michigan can qualify to receive a one-time payment of $139 million in federal stimulus money. However, in two years the one-time money will have dried up, meaning employers will be left to finance the additional annual costs through higher payroll taxes. Adding to job providers' burden at this time is just bad public policy for Michigan. Keep in mind that Michigan is already more than $2 billion dollars in debt to the federal government because our state's UI Trust Fund is insolvent. Even without these ill-advised changes, Michigan employers will likely see payroll tax increases in order to pay this money back to the federal government.

    As other states with less unemployment claims decline this money and refuse to make these changes to their UI system, Michigan will find itself in yet another uncompetitive position with regard to payroll tax rates. For these reasons, we urge you to oppose HBs 4785-86 by keeping these bills in Committee. Please give Michigan employers the opportunity to survive the economic downturn - without tying job providers' hands with another tax increase.
  • Fire Suppression Letter
    June 16, 2009

    Re: Opposition to Residential Fire System Mandates.

    The Kalamazoo Regional Chamber of Commerce is deeply concerned over recently proposed mandates in Michigan regarding residential fire sprinklers. These mandates affect every new Michigan home owner and potential home owner, by driving up the cost of homes and forcing home owners to spend thousands on unnecessary renovations and upgrades.

    Traditionally mandates are not productive economic drivers, due to the financial stress they place on the average consumer. These sprinkler mandates force homeowners to install unnecessary amenities without providing the proper resources for ongoing maintenance and upkeep. Homeowners will be forced to hire professionals to conduct this activity at a premium price. Also, often a homeowner's insurance rates will increase due to the potential water damage that can be caused by unintended activation of the home fire sprinkler system.

    A 2009 report by the National Fire Protection Association found sprinklers installed in one and two family homes did not operate, or were not effective, in 61 percent of the percent of the fires that occurred in these homes. Recently the federal government recalled more than 35 million defective fire sprinkler heads. Contrast this with recent studies that show that fire related fatalities are declining, and the fatalities that do occur almost always happen in homes with faulty smoke detectors. The national Fire Prevention Association says, "Working smoke detectors can prevent 75 percent of residential fire deaths and 84 percent of fire injuries…if every home had working smoke alarms, home fire deaths would decrease by an estimated 36 percent." From 2000 through 2006, Michigan's 4.5 million homes averaged 109 fatal fires each year--93 percent occurring in homes without working smoke alarms.

    Home fire sprinkler systems require several support systems: a generator pump, water storage unit, annual flooding and maintenance. The costs of these add-ons are prohibitively expensive to home owners, even more in Michigan due to our harsh winter climate.

    Michigan Habitat for Humanity has also voiced its opposition to the home fire sprinkler mandate, citing the outrageous costs left to be paid by the home owner. They cite the fact that every provider of affordable housing will see a reduction in the number of families they can house if home fire sprinklers are mandated.

    In summary, the Kalamazoo Regional Chamber of Commerce, on behalf of its more than 1,800 member business, urges all its members and supporters to contact your elected officials and tell them to leave the decision about adding a fire sprinkler system to the discretion of home owners rather than state bureaucrats.

    Sincerely,



    Steward Sandstrom, CCE

    President and CEO
  • High Speed Rail Letter
    Tim Hoeffner, P.E., Administrator
    Office of High Speed Rail & Innovative Project Advancement
    Van Wagoner Building 425 W. Ottawa Street
    P.O Box 30050
    Lansing, MI 48909

    August 24, 2009
    Re: Support for MDOT's application for funding for High Speed Rail between Detroit and Chicago.

    Dear Mr. Hoeffner:

    The Kalamazoo Regional Chamber of Commerce proudly supports MDOT's application for funding High Speed Rail between Detroit and Chicago. The development of High Speed Rail between Detroit and Chicago is an exciting project that would reduce the congestion on Interstate 94, allow more efficient travel between cities, and create new opportunities for employee pools. This project has a unique opportunity to utilize stimulus dollars to become a reality. We are urging our member to also contact MDOT and tell them how important this project is to your business members.

    The bottom line is this: High Speed Rail is immensely important to Michigan's economic growth and it is important for the business communities of Michigan to join together in support of this project.

    Currently the most promising market for passenger/freight rail service in the United States is high speed rail service between large cities that are located 100-500 miles apart. Our business members are located between Detroit and Chicago and could receive economic benefits from the development of high speed rail through your region. The opportunity for high speed rail would allow local business people to efficiently travel within the region for face to face meetings by utilizing high speed rail travel. This would have added benefits, as mentioned by president Obama, such as reduced congestion on I-94 and other already burdened highway system. According to the office of the president, proposed high speed rail systems can reduce traffic on American highways by an estimated one million cars a day. Another beneficial impact of high speed rail is it broadens the pool from which potential employees can be courted due to convenient commuting times it offers. Currently MDOT is drafting a second application to acquire funding for the development of High Speed rail from Detroit to Chicago. Without federal funding, this High Speed rail would not be a top priority given the states budget challenges.

    In summary, the Kalamazoo Regional Chamber of Commerce supports MDOT's application for federal funding for this High Speed Rail project, and hopes its member business contact MDOT, outlining the benefits of High Speed Rail.

    Sincerely,



    Steward Sandstrom, CCE

    President and CEO
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