Industrials Regulatory News and Trends - October 6, 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.

DOT identifies 70 rail projects for Administration’s infrastructure spending. On September 25, the Biden Administration announced $1.4 billion in rail-related infrastructure spending - more than 70 rail improvement projects in 35 states.  The projects will cost an estimated $1.4 billion, funded by the Bipartisan Infrastructure Law.  The projects are partially intended to facilitate US manufacturing by involving the use of steel and concrete as well as the generation of scrap metal and concrete for crushing and recycling. “This is the largest amount ever awarded for rail safety and rail supply chain upgrades through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) program,” a White House news release said. 

Ohio senators call for public health emergency declaration in East Palestine. On September 25, both senators from Ohio – Republican J.D. Vance and Democrat Sherrod Brown – called on the Environmental Protection Agency to study whether a public health emergency exists in East Palestine, Ohio, as a result of the February derailment of a Norfolk Southern train. The derailment involved 20 rail cars containing hazardous materials, according to the EPA’s determination, and the subsequent controlled burning of five cars released vinyl chloride, a compound used in the production of plastics. The senators noted that the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), the Superfund law that the EPA has already invoked in East Palestine, allows for the declaration of a public health emergency.  

Interior Department commits to phasing out single-use plastics in its operations. On September 28, the US Department of the Interior announced that all its bureaus and offices have finalized their sustainable procurement plans to phase out single-use plastics on public lands within the next decade. Since June 2022, national parks, national wildlife refuges, and conservation lands have implemented measures such as installing water bottle filling stations, increasing recycling, and working with concessionaires to reduce sales of single-use plastic bottles, as well as use of plastic utensils, bags, straws, and other plastic products. “The Interior Department has an obligation to play a leading role in reducing the impact of plastic waste on our ecosystems and our climate,” Interior Secretary Deb Haaland said at a White House conference. “As the steward of the nation’s public lands, and as the agency responsible for the conservation and management of fish, wildlife, plants, and their habitats, we are uniquely positioned to do better for our Earth. Our department-wide efforts are inspiring bold action to phase out single-use plastic products as we seek to protect our natural environment and the surrounding communities.”  

Biden Administration wants to reform mining on public lands. In September, a working group led by the US Department of the Interior released a final report containing recommendations to reform and improve the way mining is conducted on US public lands. President Biden’s Administration says its review of the Mining Law of 1872 and related federal permitting processes is part of its effort to increase domestic supplies of critical minerals while at the same time upholding strong environmental, labor, and community engagement standards. The report addresses environmental practices, the rights of Tribal groups, and the potential collection of fees and royalties from mining firms, who now pay no royalties under the 19th-century law. The reforms, the Administration says, will help meet the growing need for minerals and battery metals in the electric vehicle sector.

Newsom vetoes California bill directed against driverless trucks. On September 22, California Governor Gavin Newsom vetoed a bill that would have prevented heavy-duty driverless trucks from operating in the state. The veto was supported by companies that are developing autonomous technology to haul goods across the nation. The bill, which would have required a trained human driver to be present in autonomous vehicles weighing over 10,001 pounds, had been passed by both houses of the state legislature. While many states have allowed the testing and operation of self-driving trucks, California regulations currently bar self-driving trucks weighing more than 10,001 pounds. But the state’s department of motor vehicles has been working to develop a regulatory framework to allow testing, and potentially deployment, of such trucks.  In response, the legislature passed a bill that would have banned such trucks in California. Lorena Gonzalez Fletcher, head of the California Labor Federation, said driverless trucks are dangerous and called Newsom’s veto “shocking. “   

IMF: fragmented commodities markets threaten food security and the green transition. The international Monetary Fund is warning that fragmented commodities markets are threatening world food security – and also may raise the price of clean energy.  In a section of its World Economic Outlook released on October 3, the IMF said the threat is driven by Russia’s invasion of Ukraine and consequent economic sanctions, which have disrupted the global marketplaces for food, fuel, and fertilizer and have broadly worsened inflationary pressures and “geo-economic fragmentation.” Particularly vulnerable: highly traded agricultural items such as grains, and minerals critical for the green transition, such as lithium, cobalt, and copper.  The IMF said, “Our findings present yet another argument for multilateral cooperation on trade policies to prevent such outcomes.” But, in the absence of such agreements, the IMF called on nations to collaborate on food corridor and green corridor agreements that would ensure equal access to agricultural products and protect the global flow of the minerals needed for decarbonization.  

Chemistry trade group announces new anti-regulatory overload initiative. On September 20, the American Chemistry Council announced a new initiative that aims to reverse what it called “the growing trend of regulatory overreach.” The initiative, entitled “Chemistry Creates, America Competes,” states that American success relies on American chemistry and that “regulatory overload” is harming the chemical industry.  Chris Jahn, president and CEO of the trade group, said, “President Biden talks on the one hand about reshoring US manufacturing; on the other hand, his federal agencies are taking actions that will stop that from happening.” Government regulation, he said, “threatens to offshore jobs, production, and supply chains by weakening the ability of the United States to compete with international rivals – such as China. Unless the Biden Administration and Congress take a different approach to how they create and apply regulations, critical chemistries will suffer – and the US supply chain and important products chemistry supports will suffer as well.”