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Natural Gas Central to Energy Cost Moderation, Greenhouse Reductions

Posted by Bob Rio on Apr 25, 2018 11:00:00 AM

How do you reduce greenhouse-gas emissions by 80 percent and accelerate the development of renewable energy without bankrupting businesses that already pay among the highest electric rates in the nation? One key element as New England relies more heavily on electric power is expanding natural-gas capacity. That's why Associated Industries of Massachusetts is part of the MASS Coalition for Sustainable Energy.

The video below is a must-watch for any employer worried about his or her electric bills.

Employers interested in more information about the cost of energy may contact Bob Rio at rrio@aimnet.org

Topics: Environment, Energy, Sustainability

Much at Stake for Employers in Final 100 Days of Legislative Session

Posted by Rick Lord on Apr 23, 2018 8:30:00 AM

Today marks 100 days until the Massachusetts Legislature wraps up formal business for its 2017-2018 session.

ExteriorThe end of formal sessions will bring with it the usual eleventh-hour debate on bills that will otherwise have to go back to the starting line when a new session begins in January 2019. Informal sessions continue through the end of the year, but the rules of the Legislature make it all but impossible for controversial bills to pass.

Associated Industries of Massachusetts, as the statewide employer association, looks forward to representing employers late into the evening of July 31 – perhaps into the wee hours of August 1 – as lawmakers consider bills that could have a profound effect on employers and the Massachusetts economy.

But the real Beacon Hill deadline that employers need to keep their eye on this year is the first week of July. That’s because the end of the legislative session is inextricably bound up with four potential questions that could appear on the November election ballot, and any compromise on those issues will have to be wrapped up before ballots go to print in early July.

The most important issues for AIM at the end of the session all revolve around these potential ballot questions and ongoing negotiations intended to develop compromises that could be approved by the Legislature before July 31.

AIM has been part of negotiations for more than six months on a proposal to mandate paid family and medical leave for Massachusetts employees.

The association opposes the question, which would cost $1 billion annually by allowing covered workers to take up to 16 weeks of family leave or 26 weeks of medical leave. Workers could take family leave to care for a child after the child’s birth, adoption, or placement in foster care; to care for a seriously ill family member; or to address needs arising from a family member’s active duty military service.

John Regan, Executive Vice President of Government Affairs for AIM, has been hashing out the paid-leave issues with representatives of Raise Up Massachusetts, the coalition sponsoring the proposal.  All sides remain committed to seeking a fair agreement that does not inflict significant damage to the economy.

A poll of AIM-member employers last week indicated that companies favor by a two-to-one margin reaching a negotiated settlement.

House Speaker Robert DeLeo and Senate President Harriett Chandler have convened separate negotiations on proposed ballot questions that would increase the minimum wage to $15 per hour and reduce the state sales tax from 6.25 percent to 5 percent.

And looming over all the negotiations is a pending decision by the Massachusetts Supreme Judicial Court on a challenge that four business association colleagues and I filed to a proposed constitutional amendment that would impose a 4 percentage-point surtax on incomes more than $1 million. A decision in that case is expected this spring, adding pressure to the already tight time frame for finding common ground on the other questions.

“AIM will follow hundreds of bills as the session comes to an end, but creating a better and less burdensome paid family and medical leave law will be the priority,” Regan said.

“The minimum-wage increase and graduated income tax are right behind that. The objective is to provide the Legislature with the opportunity to resolve all these issues rather than mounting multiple ballot campaigns that could cost $10 million each.”

It’s a full plate for 100 days. The clock starts now.

Topics: Minimum Wage, Massachusetts Legislature, Paid Family Leave

2018 Gould Award Honors Springfield Empowerment Zone

Posted by Christopher Geehern on Apr 9, 2018 9:08:15 AM

A model collaboration among the City of Springfield, Springfield Public Schools, the Springfield Education Association, teachers, administrators, local philanthropy, and the commonwealth to turn around 11 middle and high schools in Springfield will receive the 2018 John Gould Education and Workforce Development Award, AIM announced today.

Gould2018Now in its third year and serving more than 5,000 middle and high school students, the Springfield Empowerment Zone Partnership represents a groundbreaking initiative in which individual schools operate with autonomy over hiring, budget, schedule, curriculum, and culture.

Schools in the Zone are overseen by an independent board made up of majority community leaders. It remains part of the district and is accountable to the district and the state under a performance contract.

AIM will present the Gould Award at its Annual Meeting on May 18 at the Westin Waterfront hotel in Boston. Lt. Governor Karyn Polito will keynote the event, which will also include presentation of AIM Vision Awards to philanthropists Bill and Joyce Cummings and the financial services company MassMutual.

“The Springfield Empowerment Zone Partnership is an example of what can happen when teachers and administrators are provided with the freedom and accountability to make schools better for students,” said Richard C. Lord, President and Chief Executive Officer of AIM.

“AIM is pleased to honor a project that brings together city and district leaders, the local teachers union, the school committee, the commonwealth, educators, parents and students in a key economic area of Massachusetts.”

The Springfield Empowerment Zone has generated bipartisan support on both the state and local levels. Governor Charlie Baker highlighted the initiative in his State of the State speech in January.

“These zones…allow educators to make the changes to provide a better learning environment for our kids,” Baker said.

Meanwhile, State Senator Eric Lesser, a Democrat whose district includes parts of Springfield, said “Springfield has been able to avoid a state takeover and create a model for getting everyone talking to each other and all the stakeholders working collaboratively.”

The Board of Directors that oversees the Empowerment Zone is chaired by Chris Gabrieli, chief executive of the education nonprofit Empower Schools. The board also includes Mayor Sarno, School Superintendent Dan Warwick, School Committee Vice Chair Chris Collins, and prominent community members John Davis, Senior Trustee at the Davis Foundation; Beverly Holmes, a former MassMutual executive and now active church pastor; and James Morton, President and CEO of the YMCA of Greater Boston.

The Springfield Education Association, the union representing teachers in the city, negotiated a separate agreement for educators at schools included in the Empowerment Zone.  Union and Zone leaders maintain an active partnership in their efforts to improve education and create collaborative environments within Zone schools. 

Local and state officials and educators caution that it is too early to declare success, but they are encouraged by improving test results and collaborative alignment among district leadership, unions, school committee members, educators, school leaders, and more.

Superintendent Warwick reflected on the progress of the Zone saying “what I see going on in the schools – the energy, the excitement, the buy-in from students – you can already see these schools have improved and they’re going to continue to improve because of the structures that are being put in place”.

The Gould Award was established in 1998 to recognize the contributions of individuals, employers, and institutions to the quality of public education and to the advancement, employability, and productivity of residents of the Commonwealth.

In 2000, the award was named after John Gould, upon his retirement as President and CEO of AIM, to recognize his work to improve the quality of public education and workforce training in Massachusetts.

Past recipients of the Gould Award include; the late Jack Rennie, Chairman and Founder of the Massachusetts Business Alliance for Education, Middlesex Community College, Gordon Lankton, President and CEO (retired), NYPRO Inc., William Edgerly, Chairman Emeritus, State Street Corporation, Northeastern University, The Davis Family Foundation, Intel Massachusetts, EMC Corporation, IBM, David Driscoll Commissioner (Retired) Massachusetts Department of Education, State Street Corporation and Year UP Boston, Beth Israel Deaconess Medical Center, Massachusetts Manufacturing Extension Partnership, Brockton High School, Manufacturing Advancement Center – MACWIC Program, Christo Rey Boston High School, CVS and Massachusetts Rehabilitation Commission and Morgan Memorial Goodwill Industries. 

Register for the AIM Annual Meeting 

 

Topics: AIM Annual Meeting, Education, Gould Education and Workforce Training

Legislature Tightens Access to Criminal Records; Adds Employer Protection

Posted by Brad MacDougall on Apr 4, 2018 4:46:57 PM

The Massachusetts Legislature today passed a criminal-justice reform bill that narrows the ability of employers to research the criminal records of job applicants, but also provides legal protection from negligent-hiring claims to companies that are unable to view a sealed criminal record.

ScalesofJusticeVerySmallThe state Senate and House of Representatives both passed the measure with overwhelming majorities. It now goes to Governor Charlie Baker, who has 10 days to sign or veto it.

Inclusion of the negligent-hiring provision grew out of discussions brokered by AIM last summer between sponsors of the bill and employers who rely upon criminal background checks through the Massachusetts Criminal Offender Records Information (CORI) system.  The provision protects employers that conduct background checks and end up hiring individuals with criminal records that are sealed, expunged, or no longer available to employers. 

Key elements of the reform bill for employers include:

  • Accelerates the ability of offenders to seal records from 10 years to seven years for felonies and from five years to three years for misdemeanors.
  • Raises the threshold that defines felony larceny from $250 to $1200, thus classifying more cases as misdemeanors that can be quickly sealed or expunged.
  • Assures that cases dismissed before arraignment do not appear on criminal records.
  • Assures that youthful offender cases tried in juvenile court are treated as juvenile instead of adult CORI.
  • Allows expungement of non-serious cases up to age 21 (both juveniles and young adults).
  • Prevents employers from inquiring about sealed or expunged cases.

Organizations that serve vulnerable populations, such as school systems or nursing homes, would continue to have broader access to criminal records.

AIM members with questions about the status of the legislation should contact Brad MacDougall at bmacdougall@aimnet.org. Members with questions about how the measure will affect their companies should call the AIM Employer Hotline at 800-470-6277.

Topics: Employment Law, CORI, Human Resources

Tariff Announcements Drive Down Business Confidence

Posted by Christopher Geehern on Apr 3, 2018 8:28:21 AM

Confidence among Massachusetts employers weakened during March amid roiling international trade tensions and volatile financial markets.

BCI.March.2018The Associated Industries of Massachusetts Business Confidence Index (BCI) declined a point to 63.5, retreating from a 17-year high in February. The BCI has gained 1.1 points during the past 12 months and remains comfortably within the optimistic range.

But virtually every element of the March confidence survey lost ground, led by a 1.7-point drop in the US Index of national business conditions. Several employers blamed the Trump Administration’s decision to level tariffs on steel, aluminum and other products for their uncertain outlook.

“Tariffs on stainless steel and aluminum will negatively impact our bottom line in the short run and could prevent our customers from providing new projects due to increased costs,” wrote one employer.

Raymond G. Torto, Chair of AIM's Board of Economic Advisors (BEA) and Lecturer, Harvard Graduate School of Design, said the steel and aluminum tariffs raise the prospect of retaliation by other nations against products made by Massachusetts companies.

“Trade wars reduce the competitiveness of Massachusetts companies and increase costs for consumers. Announcement of the tariffs sent financial markets into a tailspin last month and some of that uncertainty rubbed off on employers,” said Torto.

Cranberries, for example, a key Massachusetts agricultural export, were among the products targeted for retaliation by the European Union before the administration exempted that region from the steel and aluminum tariffs. Massachusetts companies exported $27.5 billion worth of products to foreign markets during 2017, with the largest share (13.5 percent) going to Canada.

The AIM Index, based on a survey of Massachusetts employers, has appeared monthly since July 1991. It is calculated on a 100-point scale, with 50 as neutral; a reading above 50 is positive, while below 50 is negative. The Index reached its historic high of 68.5 on two occasions in 1997-98, and its all-time low of 33.3 in February 2009.

The Index has remained above 50 since October 2013.

Constituent Indicators

The constituent indicators that make up the overall Business Confidence Index were mostly lower during March.
The decline in the US Index was matched by a 1.6-point decline in the Massachusetts Index assessing business conditions within the commonwealth. The Massachusetts Index stood at 66.9, leaving it 3.2 points higher than in March 2017.

The U.S. Index ended the month at 65.2, 5.3 points better than a year ago. March marked the 97th consecutive month in which employers have been more optimistic about the Massachusetts economy than the national economy.

The Current Index, which assesses overall business conditions at the time of the survey, lost 1.5 points to 62.6. The Future Index, measuring expectations for six months out, declined 0.6 points to 64.4. The Current Index has risen 0.8 points and the Future Index 1.4 points during the past 12 months.

Operational Views

The only element to gain ground was the Employment Index, which rose 0.9 points for the month but remained 1.7 points behind its level of a year ago. The Company Index, meanwhile, reflecting employer views of their own operations and prospects, was off 0.7 points to 61.7.

Manufacturing companies (65.4) were more optimistic than non-manufacturers (61.3). Large employers (68.8) were more bullish than medium-sized (60.3) or small businesses (65.2).

“There is no question that the whirlwind of events taking place in Washington, from the tax bill to trade sanctions, are affecting the outlook of Massachusetts employers,” said Barry Bluestone, Professor of Political Economy at Northeastern University, and a BEA member.

“But it’s also worth noting that the only two elements of the BCI that have declined during the past year are the Company Index and the Employment Index, two measures tied to the performance of individual companies. Overall confident remains strong, but those elements will be worth watching.”

Trade Battles

AIM President and CEO Richard C. Lord, also BEA member, said the announcement of tariffs and subsequent modifications of those tariffs by the administration has generated uncertainty among employers.

“Trade barriers are cause for concern in a state that exported more than $27 billion worth of goods in 2017,” Lord said.

“AIM and its member employers continue to believe that free trade and open markets remain the best way to ensure growth in the global economy.”

Topics: International Trade, AIM Business Confidence Index, Massachusetts economy

AIM Honors Bill and Joyce Cummings, MassMutual with 2018 Vision Awards

Posted by Christopher Geehern on Apr 2, 2018 9:16:17 AM

A couple giving away its fortune to charity and a distinguished financial services company adding jobs from Springfield to Boston will be honored with 2018 Vision Awards from Associated Industries of Massachusetts (AIM).

AIM will honor Bill and Joyce Cummings and Cummings Foundation of Woburn and MassMutual of Springfield at the association’s Annual Meeting on May 18 in Boston.

Bill Cummings, the founder of Woburn-based Cummings Properties, and his wife Joyce are among the most prolific philanthropists in Massachusetts, donating more than $21 million each year to organizations working in human services, education, healthcare, and social justice. The Cummings are also signatories to the Giving Pledge, the organization founded in 2010 by billionaires Warren Buffett and Bill and Melinda Gates to encourage people to donate their wealth to philanthropic causes or charities.

MassMutual, a cornerstone of the western Massachusetts economy since its founding in 1851, recently announced plans to move 1,000 workers into a new $240 million office in the Seaport District of Boston and another 1,500 new workers to its headquarters in Springfield. The company said the move is part of a broader strategy to consolidate operations in its home state and give the company increased access to a growing pool of tech and financial industry workers.

The AIM Vision Award recognizes companies, organizations and individuals who have made unique contributions to the cause of economic opportunity in Massachusetts. The award reflects AIM’s mission to stand for jobs, economic prosperity, innovation and a government that acknowledges that the private sector has the unique responsibility to create the common wealth for the people of Massachusetts.

“The 4,000 member-employers of Associated Industries of Massachusetts are delighted to honor two people and one company who illustrate and define the value that free enterprise brings to the larger society,” said Richard C. Lord, President and Chief Executive Officer of AIM.

“Bill and Joyce Cummings set the standard for philanthropy in Massachusetts and have built the idea of giving back into the DNA of their business. MassMutual is a 167-year-old company that continues to grow and create significant economic opportunity for the citizens of Massachusetts.”

Bill and Joyce Cummings

CummingsThe Cummings donate millions to charity each year through several programs of Cummings Foundation:

  • $100k for 100 – A grant program that funds small and medium-sized Massachusetts nonprofits in Middlesex, Essex, and Suffolk counties. Each year, hundreds of organizations vie for invitations to apply for one of the 100 grants of $100,000 each to be awarded locally.
  • Sustaining Grants - Recognizing nonprofits' need for long-term financial support, $10 million in Sustaining Grants go annually to former $100K for 100 winners whose grants are now in their final year.
  • Institute for World Justice – Uses education to help prevent future genocides and other intercultural violence and injustices; and aids in the recovery and rebuilding of Rwanda. The Foundation pledged the first $15 million toward the planning and creation of the first phase of  University of Global Health Equity in Butaro, Rwanda
  • Tufts University Cummings School of Veterinary Medicine – The Foundation maintains a long-standing partnership with New England’s only veterinary school—providing support and financial resources to sustain the graduate school’s global reputation for excellence. The partnership includes a $70 million commitment from the Foundation, the majority of which has been fulfilled.

Bill Cummings says he learned both the value of hard work and the importance of generosity from his parents. His father painted houses, raising a family in a one-bedroom apartment atop a liquor store and a taxi stand on the outskirts of Boston. His mother was a neighborhood fixture, building friendships as she knocked on doors to collect coins for large charities that once operated that way.

He spent part of his young years washing windows for his neighborhood’s storekeepers, and for three summers as a young teen he sold ice cream from the back of his bike at a nearby Ford Motors assembly plant. Later he purchased and sold dozens of small boats using Boston Globe classified ads. Eventually, he grew Cummings Properties into a 500-person company with a debt-free portfolio of 11 million square feet of commercial real estate.

“My friend Bill writes that he rejects the phrase ‘give until it hurts’ because he and his wife, Joyce, think the better advice is to ‘give until it feels good.’ It’s a fitting observation from a man whose extraordinary business success is outmatched only by his commitment to lifting up those around him,” said Melinda Gates, Co-Chair of the Bill and Melinda Gates Foundation.

MassMutual

MassMutual.FINALMassMutual is a leading mutual life insurance company that offers a wide range of financial products and services, including life insurance, disability income insurance, long-term care insurance, annuities, retirement plans and other employee benefits.

The company is one of the largest businesses based in Massachusetts, with $771 billion in assets under management and $670 billion of life insurance protection in force (as of year-end 2017).

MassMutual employs some 3,000 people in Springfield and approximately 7,300 people globally.

The company reached number 77 on the FORTUNE® 500 list in 2017 and was named a FORTUNE Most Admired company for 2018 (a distinction held for the last 18 out of 20 years), topping the list for innovation and the top-ranked mutual company in the life and health insurance industry category. 

MassMutual was also recognized as one of the 2018 World’s Most Ethical Companies for the fifth consecutive year by the Ethisphere Institute. The company was featured on the Human Rights Campaign’s Corporate Equality Index for the eighth time in the last decade in 2018, earning a perfect score of 100.

Perhaps no company has done more for Springfield and western Massachusetts over a longer period of time while forging more far-reaching business success than MassMutual. From its recent $1 million commitment to expand a support program that addresses students’ out-of-school challenges to promoting inclusive entrepreneurship through a partnership with Valley Venture Mentors, MassMutual has provided a compelling model for companies seeking to balance the demands of a global marketplace with the needs of its hometown.

In addition to strengthening education in Springfield, through the MassMutual Foundation, the company invests in projects, programs and organizations focused on strengthening the city of Springfield through revitalization, development, and social capital.  Signature investments in the region include $15 million of support over 10 years to the University of Massachusetts Amherst to drive education and economic opportunity in western Massachusetts, $1 million to the Naismith Memorial Basketball Hall of Fame’s Capital Campaign to revitalize the Museum, and seasonally supporting the Springfield Museums.

The sustained commitment of MassMutual is even more extraordinary because it has come in an age when most of the other large companies that once also shouldered the responsibility for philanthropy and economic development in the city have long since disappeared or been absorbed into other entities.

In announcing its expansion in Springfield and Boston, MassMutual Chairman, President and CEO Roger Crandall said, "Following a thorough strategic assessment of our operations and footprint, we concluded that our home state of Massachusetts is the best place for us to grow and thrive over the long term. We have deep roots and a supportive community in our hometown of Springfield, and we will continue to invest and grow our workforce in the city."

MassMutual has been honored regularly among the best places to work for both working mothers and for lesbian, gay, bisexual and transgender employees.

Register for the AIM Annual Meeting

 

Topics: AIM Annual Meeting, AIM Vision Awards

AIM Urges State to Maintain Aggressive Health-Cost Benchmark

Posted by Katie Holahan on Mar 28, 2018 1:30:00 PM

Massachusetts should retain its 3.1 percent health-care cost growth benchmark because employers continue to struggle to provide quality health insurance coverage to their workers, AIM told a state panel today.

health_care.jpgThe state’s largest employer association told the Massachusetts Health Policy Commission that the current benchmark is necessary to moderate health-care costs that remain well above national averages. The Massachusetts Legislature established the health-cost benchmark as part of a 2012 health-care reform law.

The benchmark was 3.6 percent from 2012 until 2017, when it was lowered to 3.1 percent. AIM is recommending that the Commission retain the 3.1 percent mark for 2019.

“As we continue to track trends in health-care cost and utilization, the cost-growth benchmark has become a critical component for understanding year-over-year changes in health-care spending,” said Richard C. Lord, President and Chief Executive Officer of AIM.

“More than 10 years after the implementation of Massachusetts’ universal health care law, employers, consumers and the public sector continue to struggle with escalating costs of comprehensive health care.”

Massachusetts doctors and hospitals have a mixed record of meeting the heath-cost benchmark. Total Health Care Expenditures (THCE) grew by 2.3 percent from 2012 to 2013; 4.2 percent from 2013 to 2014; by 4.1 percent from 2014 to 2015; and by 2.8 percent from 2015 to 2016.

Lord told the Health Policy Commission that consumer behavior plays a large role in accelerating health-care costs, especially the tendency of patients to use of high-cost settings to receive care. According to estimates provided by the Commission, reducing just some of these factors by 10 percent could save tens of millions of dollars in unnecessary health-care spending.

The hospital outpatient utilization rate in Massachusetts is 50 percent higher than the national average. The rate of emergency room visits and inpatient discharges are 10 percent and 8 percent higher than the national average, respectively. And post-acute care discharges in the Bay State are 27 percent higher than the national average.

“And as premium and utilization costs continue to grow, employers have fewer options and less flexibility to keep year-over-year increases in check, raising important concerns about their ability to offer comprehensive insurance to their employees. Without comprehensive insurance, employees have less ready access to the type of coordinated and preventative care that leads to long-term health and productivity,” Lord testified. 

“As an advocate for employers in the commonwealth, we believe that the appropriate role of government in controlling health insurance costs should be to establish reasonable health care spending targets, like the 3.1 percent benchmark, instead of proscribing regulatory solutions. The market should be given the chance to correct itself, and the commonwealth’s function should continue to be the monitoring of the industry’s progress in achieving this goal.”

The unsustainable cost increases are occurring in an industry where experts agree that at least a third of all care is unnecessary – delivered in the wrong setting; marked by a lack of coordination; provided with an inadequate emphasis on prevention; harmed by medical errors; burdened with rules and fraud; or just plain excessive.

Topics: Controlling Health Care Costs, Health Care

Employers to Save $150 Million on Workers' Compensation

Posted by Christopher Geehern on Mar 23, 2018 4:42:08 PM

Massachusetts employers will see a $150 million decrease in workers’ compensation insurance rates beginning July 1 under an agreement between state regulators and the insurance industry.

ManufacturingWorkerSmall.jpgAttorney General Maura Healey, the State Rating Bureau and the Workers' Compensation Rating and Inspection Bureau, which represents insurers, agreed this week to a 12.9 percent rate decrease for policies written after July 1. Insurance companies had initially filed for an 11.1 percent rate reduction.

Massachusetts employers must purchase workers' compensation insurance, and rates are re-set at least every other year.

“This is certainly good news for employers. The 1991 workers compensation reform led by Associated Industries of Massachusetts is still paying dividends,” said Richard C. Lord, President and Chief Executive Officer of AIM.

Workers’ compensation rates have declined more than 60 percent since the 1991 reform.

Healey said in a statement, "When we lower the rates for workers' compensation insurance, we protect workers and allow businesses to invest in higher wages and growth."

AIM sponsors A.I.M. Mutual Insurance Company, one of the largest writers of workers compensation coverage in Massachusetts. Michael Standing, Chief Executive Officer of A.I.M. Mutual, thanked state regulators for an efficient rate-setting process.

Topics: Workers Compensation, A.I.M. Mutual Insurance Company, Workers Compensation Insurance

Economic Development Chief Staying Busy

Posted by Christopher Geehern on Mar 23, 2018 12:22:16 PM

Jay Ash acknowledges that it’s a great time to be Secretary of Housing and Economic Development in Massachusetts.

Ash.jpg“I am getting a call a week from a company talking to me, not about bringing 100 or 200 or 500 jobs, but 1,000, 5,000 or 10,000 jobs,” Ash told 300 business leaders during a presentation to the AIM Executive Forum this morning.

Ash has recently played a key role in the recruitment or expansion in Massachusetts of major employers ranging from Amazon, General Electric and MassMutual to IBM Watson Health, Kronos and Siemens. These expansions promise thousands of high-quality new jobs for Massachusetts residents while cementing the state’s reputation as a global center of innovation and growth.

“What an unbelievable time to be involved in economic development, and what an unbelievable time to be involved in a great state like Massachusetts,” he said.

Ash, an avuncular Democrat who has overseen economic development for the Baker Administration during its first three years, said Massachusetts benefits from a uniquely bipartisan approach to issues affecting the economy. He noted that the economic development bill announced by the Republican governor just two weeks ago has already been scheduled for a hearing Tuesday by the Democratically controlled Legislature.

The bill would commit $100 million to regionally significant economic development projects throughout the commonwealth, establish an apprenticeship tax credit, double grants to community colleges and vocations high schools to purchase equipment and establish a permanent sales-tax holiday.

Ash said the administration is pursuing its economic agenda in tandem with efforts to expand the availability of housing and to address persistent educational achievement and funding gaps. He thanked Associated Industries of Massachusetts for efforts to streamline the process used by communities to permit both low-income and market-rate housing.

 “There’s reason to be optimistic. Let’s roll up our sleeves because the best jobs done are the one we do ourselves.

Topics: Economic Development, Economy, AIM Executive Forum

Updated Generator Rules Lower Costs, Improve Safety

Posted by Bob Rio on Mar 19, 2018 8:30:00 AM

The Baker Administration’s three-year-old regulatory review initiative resolved a major issue for Massachusetts employers on March 9 when the Department of Environmental Protection (DEP) broadened the ability of companies to use emergency electric generators.

Generator.jpgDEP’s amended Air Pollution Control regulations ironed out inconsistencies between federal rules, which allow limited non-emergency use of generators, and state rules, which did not.

Associated Industries of Massachusetts long argued that the prohibition on non-emergency use was forcing member companies to rent generators during shutdowns for non-emergency tasks such as electric panel upgrades. The practice was not only costly but dangerous as equipment had to be brought in when the same equipment was on site.

DEP on March 9 changed the rules on emergency generators to mimic federal regulations, increasing safety, reducing emissions and saving money

  • The previous 300-hour limit for emergencies has been removed; and
  • Up to 50 hours per year may be use for non-emergency use (as part of a larger 100 hour per year exemption).

The regulation update is the latest bit of good news to come out of Governor Baker’s 2015 Executive Order 562, which required state agencies to review their regulations to eliminate or modify outdated or burdensome requirements while aligning Massachusetts regulations with Environmental Protection Agency rules and other federal requirements.

“We believe that it was the governor’s Executive Order 562, requiring that state and federal regulations be consistent when possible, that prompted the recent amendments. Several AIM members have already contacted us to let us know that it will reduce their operating costs while at the same time result in enhanced safety and lower emissions,” AIM President and Chief Executive Officer Richard C. Lord wrote in a letter Friday to Governor Baker’s Chief of Staff, Kristen Lepore, and Secretary of Environmental Affairs Matthew Beaton.

There were several other changes in the March 9 rule-making. Companies should review the regulations for any changes applicable to their own operations.

Questions about the new regulations? Contact Bob Rio at rrio@aimnet.org.

 

Topics: Environment, Energy, Regulatory Reform

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