Industrials Regulatory News and Trends - June 30, 2023

Welcome to Industrials Regulatory News and Trends. In this regular bulletin, DLA Piper lawyers provide concise updates on key developments in the industrials sector to help you navigate the ever-changing business, legal and regulatory landscape.

US and India announce sweeping collaborations. During Prime Minister Narendra Modi’s recent state visit to Washington, he and President Joe Biden announced an array of important defense, aerospace and technology collaborations between the two countries. The White House joint statement about these collaborations underscored “accelerated defense industrial cooperation” – for instance,  an agreement between General Electric and Hindustan Aeronautics to manufacture F414 jet engines for the Indian Air Force; an agreement between NASA and the Indian Space Research Organization to develop a strategic framework for human space flight cooperation by the end of 2023, including training Indian astronauts at the Johnson Space Center in Houston; master ship repair agreements that will lead to US vessels being repaired in Indian shipyards; and the India-US Defense Acceleration Ecosystem, which would integrate India’s growing private sector defense industry with the US defense sector. Other agreements concern joint research in emerging technologies. The two leaders signed a Memorandum of Understanding on Semiconductor Supply Chain and Innovation Partnership and pointed to Micron Technology’s announcement that it will invest up to $825 million to build a new semiconductor assembly and test facility in India. After Prime Minister Modi returned to India, President Biden tweeted, "The friendship between the United States and India is among the most consequential in the world. And it’s stronger, closer and more dynamic than ever.” Prime Minister Modi tagged that tweet and replied, “I fully agree with you, POTUS Joe Biden. Friendship between our countries is a force for global good.”

Buttigieg warns airlines to update their radio altimeters. On June 23, US Transportation Secretary Pete Buttigieg wrote a letter to Airlines for America warning the nation’s airlines about potential delays starting July 1 for commercial airplanes that have not yet had radio altimeters updated to address potential 5G C-band interference. He urged the airlines to adjust their schedules if needed. The secretary wrote that while more than 80 percent of the domestic fleet serving US airports has been updated, “we continue to see a significant number of aircraft still awaiting retrofit, including many operated by foreign air carriers. This means on bad-weather, low-visibility days in particular, there could be increased delays and cancellations.” There have long been concerns in the industry and among regulators that 5G service could interfere with airplane altimeters, which give data on a plane's height above the ground and are crucial for bad-weather landing. 

API asks EPA to modify its new proposal on emissions standards. On June 14, the American Petroleum Institute urged the Environmental Protection Agency to modify its proposal for new tailpipe emissions standards for heavy-duty vehicles. The trade group said its proposal would better accomplish the agency’s goal of reducing emissions while still preserving access to affordable and reliable transportation and freight options. “We share the goal of reduced emissions across the broader economy and, specifically, those from energy production, transportation and use by society,” API Vice President of Downstream Policy Will Hupman said in the proposal. “While we support technology-neutral federal policies that drive emissions reductions in the transportation sector, we are concerned that this proposal, as well as EPA's light- and medium-duty proposed GHG rule, seriously misses the mark with respect to reducing carbon emissions from the entire transportation sector.” The group outlined concerns with several aspects of the proposed rule in comments submitted to EPA, including its focus on zero-emission vehicle technologies that allegedly ignored associated challenges with technology and infrastructure readiness. 

NAM supports artificial intelligence and wants to move toward its responsible development. On June 8, the National Association of Manufacturers wrote a letter to the National Telecommunications and Information Administration in response to the federal agency’s request for its view on the rise of artificial intelligence. The letter said that the nation’s manufacturers “anticipate investments in AI will lead to products and processes that increase safety and improve quality of life. Manufacturers are committed to the responsible development of emerging technologies, including AI, and are committed to working with the public and private sectors to advance this goal.” The letter concluded that AI “represents an opportunity for the U.S. to maintain its technological, economic and rules-based leadership by promoting a policy approach that supports innovation, competition and public trust."