Today, the U.S. Environmental Protection Agency (EPA) released proposed updates to the Toxic Substances Control Act (TSCA) Fees Rule. IPC is still reviewing the proposed updates, but it appears to meaningfully address the issues that IPC has raised with the policymakers at the EPA and the White House Office of Management and Budget.

Under TSCA, EPA is required to collect fees from chemical manufacturers and processors to support risk evaluations of high-priority chemical substances. The EPA finalized the original rule for fees collection in October 2018, but implementation, beginning in 2020, highlighted the rule’s inequities and inefficiencies.

IPC and peer organizations have been communicating with EPA and other federal policymakers to underscore the need for commonsense reforms to the fees rule. IPC is pleased the proposed updates appear to make important and positive changes to the original rule, including:

• Narrowing the scope of the rule by exempting the following: importers of articles containing a chemical substance, companies that produce a chemical as a byproduct or manufacture or import as an impurity, companies that produce a chemical in de minimus amounts, companies that use chemicals solely for research and development purposes, and companies that manufacture a chemical that is produced as a non-isolated intermediate from fees.
• Ensuring fees are fairly and appropriately shared across companies by proposing a production-volume based fee allocation and including export-only manufacturers for EPA-initiated risk evaluations.
• Increasing flexibility for companies by extending the amount of time to form consortium to share in fee payments.

IPC applauds the EPA for the open engagement with stakeholders to hear our concerns and consider making appropriate changes.

IPC will review the proposed rule once it is published in the Federal Register, solicit feedback from electronics manufacturers, and submit comments regarding the proposed updates within the 45-day comment period.

IPC cautions the industry that the rule released today is a pre-publication of the proposed rule. The task of finalizing the rule will be in the hands of the incoming Biden administration. IPC will be working aggressively to ensure that the incoming EPA team understands the industry’s perspective and our support for the changes outlined in the proposed rule.  

Please contact me if you have questions about this subject.

Pfizer, Moderna and other companies are or are preparing to distribute their COVID-19 vaccines to U.S. states and territories. CDC’s Advisory Committee on Immunization Practices (ACIP) has made recommendations on the allocation of the COVID-19 vaccine given that demand will exceed supply into mid-2021. ACIP has recommended that (1) health care personnel and (2) residents of long-term care facilities be offered the COVID-19 vaccine first, followed by individuals over the age of 65 and workers in essential and critical industries.

We have more questions than answers regarding the roll out of the vaccine, but a few important points:

• CDC and federal agencies will continue to provide guidance on the allocation and administration of the COVID-19 vaccines. Many of these guidelines will relate to restrictions and responsibilities for employers. As an example, the EEOC just this week issued guidance related to the vaccine and compliance with non-discrimination, ADA and other equal employment opportunity laws. IPC will work to keep you abreast of these regulatory notices, but please leverage your existing resources, including legal counsel, to understand how best to support your employees getting vaccinated. 
• While the federal government is helping to coordinate the distribution of the vaccines to states, governors will determine the allocation of vaccines within their own states. Independently and in concert with industry peers, IPC is beginning to communicate with governors about the importance of appropriately prioritizing that vaccination for manufacturing workers. Please monitor developments in your own state regarding the distribution of COVID-19 vaccines and let us know if we can support advocacy in your state.    
• ACIP is continuing meetings on the prioritization of populations, including essential workers, and we expect that the governors will largely follow ACIP’s recommendations. As of now, however, there is no line you can put your company in for access to the vaccine, and you cannot buy the vaccine directly from the pharmaceutical companies. As supply begins to better match demand, expect that companies will have increased opportunities to purchase the vaccine from distributors, including health care organizations, and retailers, like Walgreens and CVS. You should begin considering your options and initiating discussions with the appropriate entities in your community.

The federal government, in concert with state and local authorities, are mounting a vaccination program of unprecedented speed and scale. To this end, there are many questions not yet answered, but IPC will work with you to elicit answers from federal and local authorities to keep our industry operating.

Resources:

• COVID-19 Vaccine State-by-State Initial Allocations - Pfizer | Data | Centers for Disease Control and Prevention
• HHS COVID-19 Vaccines Resource Page
• COVID-19 Vaccine Initial Allocations - Pfizer | Data | Centers for Disease Control and Prevention 
• Operation Warp Speed

This morning, the U.S. Treasury Department released its long-awaited report on the foreign currency exchange policies of U.S. trading partners. The report can be found here. While the U.S. placed ten countries on their monitoring list for potential violations, the report determined that Vietnam and Switzerland met the criteria to be designated as currency manipulators.

For companies conducting business in Vietnam, this designation is concerning. It comes in the midst of an ongoing Section 301 investigation launched by the U.S. Trade Representative (USTR) in October, that among other things, alleged that Vietnam was manipulating its currency and could be subject to increased tariffs on imports.

IPC understands that USTR was waiting on this report before taking action. Now that the report has been released, USTR may issue preliminary tariff increases on billions of dollars of products from Vietnam, even before a scheduled hearing on December 29. It is unclear how many products USTR could target, though now that Vietnam has been designated a currency manipulator, all imports are under threat of increased duties.

IPC continues to monitor the situation and will give updates as we have them.

If there is one takeaway from 2020, it’s that “business as usual” is in the rearview mirror. Supply chain disruptions associated with the coronavirus pandemic and the ensuing global recession have illustrated the shortsightedness of longstanding U.S. policy that has prioritized the growth of global trade over the resiliency of U.S. manufacturing.

In this vein, IPC is encouraged that President-elect Joe Biden has spoken often of rebuilding U.S. domestic manufacturing capacity, and we’re hopeful it foretells how his administration will operate. More so than at any other time in the last half-century, U.S. policymakers in both parties understand the need to better support U.S. manufacturing and address supply chain concerns.

Below is a rundown of what a Biden administration could mean for the electronics manufacturing industry in the U.S. and around the world.

Manufacturing Policy. IPC applauds the ambitious aims of Biden’s “Made in All of America” plan. IPC has long advocated for additional investment in the nation’s infrastructure and industrial base, and the $400 billion envisioned by Biden would bolster U.S. manufacturing if allocated strategically.

We are also interested in plans to implement new credit facilities and other funding incentives to help U.S. manufacturers retool and revitalize manufacturing facilities, an effort which aligns with IPC’s Factory of the Future initiative.

With the door open to a serious dialogue about U.S. industrial base strategy, IPC also will urge the Biden administration to consider measures like establishing metrics for industrial base resiliency, with capacity, capabilities, security and geographic diversity as key factors. We also will continue to promote “trusted supplier” programs in domestic and international supply chains for critical sectors.

Tax and Trade. All signs indicate that a Biden administration will seek a return to more progressive tax and trade policies. On taxes, we do not expect a push to revamp the tax code in the immediate future, given other priorities; but over time, the Democrats may seek to recoup some of the 2017 tax cuts. On trade, the Biden administration is likely to take a more measured approach with China, dial back tariffs, and foster a stronger relationship with the World Trade Organization – all positives for IPC members. We also are hopeful that the U.S. will rebuild trade relationships with its allies, including a possible revival of multilateral trade pacts with Europe and Asia. We’ll also renew our call for a U.S.-Mexico-Canada to spur greater economic collaboration across North America.

Regulation. Make no mistake: A Biden administration will be a sharp turn from the deregulation we have seen over the last four years. We anticipate Biden to start by reversing nearly 100 regulatory rollbacks from the Trump administration and initiating new actions like limits on “forever chemicals,” also known as PFAS, some of which are used in electronics manufacturing. We expect major initiatives on climate change, but any new policies are likely to be incremental and designed to complement, not hinder, economic growth. We also expect a renewed focus on data collection, compliance and enforcement. To that end, we hope a Biden administration will ensure that any new regulatory actions are practical, cost-effective, and prioritized according to actual levels of risk. We look forward to working constructively with the new administration on this front and sharing our members’ considerable expertise.

Workforce. One of the most difficult challenges facing today’s electronics industry is a chronic shortage of adequately skilled workers. A Biden administration will likely reinvigorate initiatives to promote educational attainment, especially for historically underrepresented groups, and will seek to establish grants for participation in credentialing and job training programs. We also hope the administration will consider investing in 21st century workforce opportunities, online learning platforms, and apprenticeship programs.

Looking Forward. IPC welcomes the opportunity to work with the Biden administration and all policymakers -- just as we have with every prior Administration and Congress. We will continue to promote policies in the U.S. – as we do worldwide – that strengthen the competitiveness and resiliency of electronics manufacturers, while upholding our responsibility to protect human health and the environment.

COVID-19 has demonstrated the critical role that electronics manufacturers play in protecting and enriching our lives. Electronics-based devices and systems make people’s lives safer, healthier, more connected, secure, and fun, and IPC advocates for government policies that help make it all possible.   

Learn more and stay involved: Join me for a conversation with Gilbert Kaplan, a former Undersecretary of Commerce for International Trade, on the outlook for U.S. manufacturing competitiveness and what we should expect from the Biden administration. Register here for the webinar on Wednesday, December 16.

And as always, we invite you to reach out to us – your IPC Government Relations team – if you have any questions or suggestions or want to get involved in IPC’s advocacy work. Your voice and expertise can help your company and the entire industry. Learn more today at IPC.org/advocacy.