http://factcheck.org/2011/08/front-group-claims-epa-threatens-7-million-jobs/Chemical and oil lobbies were behind an ad that dogged Obama's Midwestern bus tour, attacking anti-smog regulations proposed by the administration. Their trade groups are among the business organizations backing a front group calling itself the "Coalition for American Jobs," which sponsored the ad.
The TV spot accused the president of "talking jobs" on his Midwestern tour, while his administration is "putting 7 million American jobs at risk" by considering "unnecessary" tightening of anti-smog regulations. The job-loss claim turns out to be based on an industry-sponsored study that predicts astronomical compliance costs. That industry study has been called "unsound" and "fundamentally flawed" by a university-based economist.
We dug a little further, contacting the American Chemistry Council. The ACC is one of the business groups that have been urging the president to delay until 2013 the rule the ad refers to. (The Environmental Protection Agency has already delayed the anti-smog rule four times, most recently on July 26, this time to allow the White House Office of Management and Budget to review the proposal.) Anne Kolton, the chemistry council's vice president for communications, confirmed that her group is among the members of the "jobs" coalition. "Other members of the CAJ include the American Petroleum Institute, the U.S. Chamber of Commerce, the American Forest and Paper Association, the National Association of Manufacturers," Kolton told us via email.
Kolton also answered our questions about the source of the ad's claim that 7 million jobs would be "at risk" because of the EPA's proposal. The basis turns out to be an economic study produced by the Manufacturers Alliance and financed by the National Association of Manufacturers and the American Petroleum Institute. The study concludes that if EPA adopted the strictest standard under consideration (a limit of 60 parts per billion on primary ozone, down from the 84 parts per billion limit in effect currently), the cost of compliance would be astronomical — reaching more than $1 trillion a year and reducing the size of the nation's economic output by 3.6 percent in 2020. The study projected U.S. job losses of 7.3 million, equivalent to 4.3 percent of the entire workforce in 2020.