Exiger Regulatory Roundup, Episode 5

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

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

U.S. Department of Commerce Publishes Text of Landmark Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement
Readout of Secretary Raimondo’s Call With Japan’s Minister of Economy, Trade, and Industry Nishimura Yasutoshi
Remarks by Joseph R. Biden Jr., President of the United States, at Roundtable Meeting With CEO’s
Fact Sheet: Deepening the United States-ASEAN People-To-People Relationship – Investing in Education, Cultural Exchange, and the Next Generation of Leaders
Fact Sheet: U.S.-ASEAN Comprehensive Strategic Partnership, One Year On
Readout of Bilateral Meeting Between the Vice President Kamala Harris of the United States and President Ferdinand Marcos Jr. of the Philippines
Readout of Vice President Harris’s Participation in the U.S.-ASEAN Summit
Readout of Vice President Harris’s Participation in the East Asia Summit

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.

Governor Whitmer Leads First Economic Investment Mission to Japan to Bring Jobs and Supply Chains Home to Michigan

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. 

Senate Joint Resolution SJR2: Climate Change: Fossil Fuel Non-Proliferation Treaty (2023-2024 Session) (F)

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.

City Reminds Residents to Only Purchase Certified Lithium-Ion Batteries and Mobility Devices

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.

A Sourcing Risk Index for U.S. Manufacturing Industries

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.

Guidance: Drug Supply Chain Security Act Standards for the Interoperable Exchange of Information for Tracing of Certain Human, Finished, Prescription Drugs

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.

Statement by Joseph R. Biden Jr., President of the United States: Protecting Arctic Lands and Wildlife 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.

Other Interesting Alerts

AgencyTitle
New York State SenateSenate Bill S04982: Protects Employee Freedom of Speech and Conscience (2023-2024 General Assembly) (F)
European Central BankFaster Green Transition Would Benefit Firms, Households and Banks, ECB Economy-Wide Climate Stress Test Finds
European Central BankBlog by Luis De Guindos, Vice-President of the European Central Bank: Need for Speed on the Road to Paris
Federal Trade Commission; Federal Trade Commission, Bureau of Consumer ProtectionOnline Shoe Seller Hey Dude, Inc. to Pay $1.95 Million for Violating FTC’s Mail, Internet, and Telephone Order Rule and Suppressing Negative Consumer Reviews
Federal Trade Commission; Federal Trade Commission, Bureau of Consumer ProtectionAdministrative Law Judge Issues Initial Decision in FTC’s Case Against Intuit Inc.
U.S. International Trade AdministrationFinal Results of Antidumping Duty Administrative Review: Small Diameter Graphite Electrodes From the People’s Republic of China
Securities and Exchange CommissionOrder Instituting Cease and Desist Proceedings, Making Findings, and Imposing a Cease and Desist Order: Monolith Resources, LLC
Securities and Exchange CommissionSEC Charges Privately Held Monolith Resources for Using Separation Agreements That Violated Whistleblower Protection Rules
U.S. Senate Committee on Banking, Housing and Urban AffairsScott Opening Statement at Insurance Market Hearing
U.K. Department for Business and TradeMajor BMW EV Announcement to Take U.K. Auto Investment to Over £6Bn

 

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