22 November 2022 • 5 minute read
Industrials Regulatory News and Trends
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.
EPA expands its definition of PFAS chemicals. On November 2, the Environmental Protection Agency announced that it is expanding its definition of per- and polyfluoroalkyl substances (PFAS) for the purpose of designating possible contaminants in drinking water. In the past, the agency used a limited definition of PFAS, which was “chemicals with at least two adjacent carbon atoms, where one carbon is fully fluorinated, and the other is at least partially fluorinated.” The recent EPA Safe Drinking Water Act decision, however, broadens this definition to include fluorocarbons with highly branched carbon chains and some fluoroethers. The decision adds also PFAS as a group to the agency’s list of substances that are candidates for regulation in drinking water.
Hyundai asks for delay in implementation of EV tax credit. On November 8, Reuters reported that Hyundai Motor Group and other auto manufacturers have filed comments calling for the United States to delay the implementation of a set of new electric vehicle tax credit rules. Vehicles assembled outside North America are ineligible to claim these tax credits. The statements came in response to a call for public comment issued by the US Treasury, which is drafting rules to implement the new legislation that provides the tax credits. Hyundai, which is building a $5.5 billion electric vehicle and battery plant in Georgia, asked the Treasury to allow its foreign-made EVs to be eligible until it begins production of electric vehicles in the United States. South Korea, Japan, Brazil, and the European Union have already criticized the $7,500 tax credit, signed into law in August by President Joe Biden as part of the Inflation Reduction Act, which immediately disqualified most EVs for credits.
New Massachusetts law will affect recycling and organic waste. On November 1, a new law took effect in Massachusetts that will affect manufacturers in that state. Mattresses and textiles will no longer be allowed as trash there; instead, they must be recycled. The state is also lowering the threshold for the disposal of commercial organic waste. Since 2014, the Massachusetts Department of Environmental Protection has banned the disposal of commercial organic waste by businesses and institutions that generate one ton or more of these materials per week. The threshold has now been lowered to a half-ton or more per week. The new organics threshold also applies to compost facilities that produce residuals. Compost facilities are now required to address how they plan to manage residual materials if they produce a half ton or more weekly.
Does recycling really help, or does it cause more problems? Bloomberg News reporter Dasha Afanasieva wrote November 11 that the world’s largest plastic users appear almost certain to miss a target of using only reusable, recyclable or compostable packaging by 2025. Afanasieva explained that a major issue with recycling is that melting together different plastics can multiply the additives that are produced – as well as their potential health hazards. She noted that a study published in the Journal of Hazardous Materials earlier this year found that more additives leach from recycled PET (polyethylene terephthalate) bottles into the bottles’ contents than from virgin plastic ones. The recycled plastic may become tainted by chemicals when it’s collected and sorted, the researchers said, but it’s still unclear exactly how this contamination happens.
Appellate brief says EPA lacks authority to set emissions standards for light-duty vehicles. On November 3, the Competitive Enterprise Institute and other litigants filed a brief with the US Court of Appeals for the DC Circuit in Texas v. EPA, a high-profile case concerning greenhouse gas emissions standards for light-duty vehicles. Effective with 2023 vehicle model years, the new rules aim to regulate a 28.3 percent reduction in vehicle emissions. The case is being closely watched by the automobile industry; 14 US states, the American Fuel and Petrochemical Manufacturers Association and some soybean and corn growers’ associations are challenging the rule. The plaintiffs contend that the EPA exceeded its authority by attempting to set fleetwide average emissions standards for these vehicles. No date has been set for argument in the case.
Major international plastics recycling treaty will be negotiated later this month. World leaders recently announced that the first negotiation on a planned global plastics treaty will be held from November 28 through December 2 in Punta del Este, Uruguay. The conference follows a February 2022 agreement among more than 175 countries to draft a legally binding treaty to address the full life cycle of plastics pollution. Environmental advocates say the February agreement was a historic first step towards meaningful progress on plastics; however, they note that many of the key details must still be negotiated, starting this month in Punta del Este. A new coalition that has pledged to work for major changes concerning plastics already has the backing of 85 different organizations, financial institutions, and NGOs, who have signed up to its vision for an “effective and ambitious” treaty. The coalition wants a “circular economy approach” with all plastics to be reused, recycled or composted at scale.
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