Distilling this week’s 22,443 alerts into the 20 alerts that you care about
Mary Kopczynski, CEO of RegAlytics, breaks down this week’s hot regulatory topics, exclusively for Exiger.
- Topic of the Week: Indo-Pacific/ASEAN Focus
- Regulator of the Week: Michigan
- IL: $2B EV Lithium Battery Plant
- CA: Fossil Fuel Non-Proliferation
- NYC: Battery Certification
- Fed: Sourcing Risk Index
- FDA: Pharma Drug Data Exchange
- Biden Administration: Alaskan Oil/Gas Leases
- IRS: Enforcement Sweep
- Other Interesting Alerts
Topic of the Week: Indo-Pacific/ASEAN Focus
The Topic of the Week continues to be the Indo-Pacific and ASEAN focus since the G-20 is taking place in India. President Biden spent time in Vietnam where they signed a new semiconductor memorandum of cooperation. The Commerce Department unveiled the proposed landmark Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement. Following the release of the final text, the US and partner countries will work through their own domestic process to get to signature. When signed, this agreement will create a commercial environment among IPEF partners that will make supply chains more competitive with each other and decrease costs. If you want to learn more about this, check out the RAND Corporation webinar from earlier this week which featured Exiger’s own Bob Kolasky, as well as Assistant Secretary Grant Harris from Commerce who outlined the Administration’s aims for IPEF.
RAND Corporation Event: https://www.rand.org/events/2023/09/supply-chain-uncertainty.html
Regulator of the Week: Michigan
The Regulator of the Week is Michigan. Whew. We are in unprecedented times, my friends. This week, the State of Michigan is on its first-ever economic mission to Japan. This is because ever since Covid, states like Michigan have taken it upon themselves to secure supply chains by communicating directly with other countries. The state of Michigan has a long and rich history with Japan, with more than 5,300 jobs being created in Michigan by Japanese businesses through more than $1.8 billion in private investment in the past 10 years. And, according to the Japanese Consulate which is located in Detroit, there are currently 456 Japanese facilities in Michigan which support more than 39,890 jobs in the state.
The governor’s press release also notes that, in a report from CNBC, Michigan was named one of three states in the running alongside Georgia and Kentucky that are poised to “dominate” electric vehicle battery manufacturing in the United States by 2030.
IL: $2B EV Lithium Battery Plant
But also this week, Illinois announced a new state-of-the-art $2 billion electric vehicle (EV) lithium battery manufacturing plant in the state.
|Governor Pritzker and Gotion Announce New $2 Billion Electric Vehicle Battery Gigafactory in Kankakee County|
|Governor Pritzker Announces Major Electric Vehicle Battery Factory Coming to Kankakee County|
CA: Fossil Fuel Non-Proliferation
And since we’re talking about the states, let’s keep going. I had never heard the term non-proliferation in relation to fossil fuels, but leave it to California. The California State Senate passed a resolution to urge the United States government to join in formally developing a Fossil Fuel Non-Proliferation Treaty.
NYC: Battery Certification
Meanwhile in New York City, starting next week on September 16, all retail stores in the city that sell, lease or rent any battery-powered mobility devices, like electric bicycles, scooters, etc. MUST ensure that the lithium-ion batteries these devices use are certified by an accredited testing laboratory. And here’s the kicker: This year already, lithium-ion batteries have caused 170 fires, injured 96 New Yorkers, and killed 14 more. I live just across the river from New York City, and I did not know this.
Fed: Sourcing Risk Index
Meanwhile the Federal Reserve put out a FEDS Notes – which are articles in which Board staff offer their own views and present analysis on a range of topics in economics and finance – anyway, this particular article, quantifies the risks to U.S. manufacturing industries arising from their reliance on inputs form foreign suppliers. Definitely interesting. Definitely worth a read. While we certainly gain from having complex global value chains, it does lend itself to key risks. And, according to the report, Pharma, Aerospace and pretty much anything that drives – heavy trucks, automobiles, and light trucks – in that order, are at the highest risk for foreign disruption to the supply chain.
FDA: Pharma Drug Data Exchange
Given that Pharma is so reliant on foreign supply chains, it’s no surprise that the FDA put out more guidance for the industry on how to create a secure, interoperable, electronic data exchange among the pharmaceutical distribution supply chain, and clarifies the trading partners, products, and transactions that are going to be subject to the standards. This guidance represents the current thinking of the FDA is not binding on FDA or the public. You can use an alternative approach if it satisfies the requirements of the applicable statutes and regulations.
Biden Administration: Alaskan Oil/Gas Leases
As some supplies produced domestically increase, others are facing regulatory limitations. The Biden Administration this week canceled all remaining oil and gas leases issued under the previous administration in the Arctic Refuge in Alaska.
IRS: Enforcement Sweep
Last big one of the week: The IRS is capitalizing on Inflation Reduction Act funding it received and, after performing a top-to-bottom review of their enforcement efforts, they announced this week – and this is THEIR WORDS — the start of a sweeping, historic effort to restore fairness in tax compliance by shifting more attention onto high-income earners, partnerships, large corporations and promoters abusing the nation’s tax laws. So if you’re in the tax department of a big corporation, get ready!
IRS Announces Sweeping Effort to Restore Fairness to Tax System With Inflation Reduction Act Funding; New Compliance Efforts Focused on Increasing Scrutiny on High-Income, Partnerships, Corporations and Promoters Abusing Tax Rules on the Books
And that’s it this week for Exiger’s Regulatory update. Join me every week no matter where I am for your dose of regulatory news.