What We’re Watching

October 2024

What We’re Watching is your go-to read for background on all NAFEM advocacy efforts, including energy, environment, regulations, supply chain, and taxes, tariffs and trade. What We’re Watching begins with NAFEM’s Federal Advocacy Tracker, a convenient reference list of pending issues with links to docket numbers (where applicable) and comments.

Should your company wish to communicate with state and federal elected officials on these or other topics, the Advocacy Action Center makes it easy to do so. The Center also includes a convenient state policy map for members to search for proposed regulations and legislation potentially impacting their businesses at the state level.

Federal Advocacy Tracker

	Issue	Docket No./Link	Status/Notes
ENERGY
Multiple categories (ACIM, CRE, WIC/F)
1	DOE proposes to establish/amend certification provisions, labeling requirements and enforcement provisions for specific types of equipment to align with energy conservation standards	EERE-2023-BT-CE-0001	– Comment period closed Nov. 28, 2023
Automatic Commercial Ice Makers
1	DOE proposes energy conservation standards	EERE-2017-BT-STD-0022	– NAFEM comments – Expected in Sept. according to the Unified Agenda
2	DOE issued Notice of Data Availability updating its analysis for above NOPR	EERE-2017-BT-STD-0022-0056	– Comment period closed Oct. 25, 2023
Commercial Refrigeration Equipment
1	DOE NOPR pertaining to energy conservation standards for commercial refrigerators, freezers and refrigerator-freezers. If approved as currently drafted, the proposed standards would take effect in late 2027.	EERE-2017-BT-STD-0007	– NAFEM comments – NAFEM, CFESA, FEDA, FCSI, MAFSI, and NAMA collectively communicated industry opposition to Congress – NAFEM, AHRI, NAMA met with SBA Office of Advocacy – NAFEM provided ex parte presentation to DOE staff re: industry’s concerns – Expected in Nov.
2	DOE issued Notice of Data Availability (NODA) providing updated analysis to inform its final rule.	EERE-2017-BT-STD-0007	– NAFEM/AHRI request for 30-day comment extension denied. – NAFEM comments
3	DOE test procedures	EERE-2017-BT-TP-0008	– Final rule issued Oct. 26, 2023 – Compliance mandatory Sept. 20
Walk-in Coolers/Freezers
1	DOE final rule on test procedures	EERE–2017–BT–TP–0010	– Final rule issued May 4, 2023 – Compliance mandatory Oct. 31, 2023
2	DOE notice correcting errors and omissions in above final rule	EERE–2017–BT–TP–0010	– Final rule issued May 4, 2023 – Compliance mandatory Oct. 31, 2023

Other items NAFEM is tracking

ENERGY

States actively setting energy-efficiency standards

In place or pending

The following states have energy-efficiency standards in place or pending for a variety of commercial foodservice equipment: California, Colorado, Connecticut, Washington D.C., Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York, Oregon, Rhode Island, Vermont and Washington¹.

Proposed

Following its initial request for information (RFI) on potential energy-efficiency standards for gas- and electric-powered commercial steam cookers, convection ovens, dishwashers and fryers, the California Energy Commission (CEC) asked for additional data that could inform future efficiency standards, test procedures and marking requirements for commercial ovens. The second RFI addresses convection, conveyor, slow cook-and-hold, deck, hearth, microwave, range, rapid-cook, rotisserie and reel-type ovens. NAFEM provided comments on the initial RFI. Comments on the second RFI are due Oct. 25.
The Maryland Energy Administration issued proposed minimum energy-efficiency standards for commercial refrigeration equipment, dishwashers and steam cookers. The Notice of Proposed Action also addresses testing, certification, inspection and enforcement procedures. Comments were due Sept. 23.

States require manufacturers to register with appliance standards databases

The State Appliance Standards Database (SASD) is an important registration body for commercial food equipment and other manufacturers, with Massachusetts, New Jersey, New York and Rhode Island requiring registration of commercial dishwashers, fryers, hot food holding cabinets, ovens and steam cookers. These states may issue financial penalties for products sold within their borders that don’t meet minimum energy-efficiency levels and are not registered.
California also requires manufacturers to certify the performance of refrigeration products sold in the state via its Modernized Appliance Efficiency Database System (MAEDbS). Information is not shared between MAEDbS and SASD, so manufacturers must register with both databases to sell products in the covered states.

ENERGY STAR^® expands component inspection program

ENERGY STAR is expanding its component inspection program in 2024 for commercial coffee and tea brewers, fryers, griddles, and hot food holding cabinets. The program expands to electric cooktops in 2025. Check here for more information.
The current program already covers commercial steam cookers; dishwashers; convection, combi and gas-rack ovens; and commercial electric cooktops.

California Governor approved bill to defund Public Purpose Programs

California AB 3264 requires the state’s Energy Commission to review all feasible options to allocate costs of the state’s electrical grid to taxpayers by July 1, 2025. The bill threatens to eliminate Public Purpose Programs that lower taxpayers’ bills, support equitable decarbonization and environmental justice, and serve low-income, small businesses and other hard-to-reach communities.

NY proposes increase to expand Energy Efficiency Program

New York’s Municipal Power Agency has petitioned to increase the funding mechanism of energy efficiency programs from one mil to two mil per kilowatt hour. The proposal is expected to cost the average residential user an additional $8 – $16 per year. The estimated increase for commercial users was not provided.

ENVIRONMENT

PFAS reduction efforts active at federal and state levels

Per- and polyfluoroalkyl (PFAS), or so called “forever chemicals,” are increasingly the focus of federal and state reduction efforts and outright bans. The chemicals are used widely in nonstick, water- and grease-resistant products, and some firefighting foams.

The Complex Article Coalition overview of current PFAS legislation at the international federal and state level is updated monthly and helps members keep track of myriad state activities.
The EPA finalized its reporting and recording requirements for PFAS under the Toxic Substances Control Act (TSCA). Additional insights are available in EPA’s PFAS Strategic Roadmap.
EPA released long-awaited and controversial drinking water standards for specific PFAS substances in April. The standards establish maximum contaminant levels (MCL) of 4 parts-per-trillion (ppt) for PFOA and PFOS, and 10 ppt for PFNA, PFHxS and HFPO-DA. EPA also announced a 5-year implementation period. The standards apply to drinking water utilities and organizations that provide their own drinking water via a well or other resource.
Canada’s Draft State of PFAS Report was produced to inform decision-making on PFAS in the country.

EPA’s 2022 – 2026 strategic plan provides a glimpse of what’s to come

EPA’s four-year strategic plan covering 2022 – 2026 details the vision, priorities, and strategies to accomplish the agency’s mission over the next four years. The agency also issued a brief overview of its upcoming efforts.

EPA provides HFC phasedown data

EPA updated hydrofluorocarbon (HFC) data – including imports, exports, inventory and destruction, as well as allowance transfers and expenditures – is available on the EPA HFC Data Hub.

NY State considers tightening HFC standards

Proposed hydrofluorocarbon (HFC) reductions in New York State could impact manufacturers of automatic commercial icemakers (ACIM) and commercial refrigeration equipment (CRE). Comments were due March 19. If approved as currently written, starting January 1, 2025, large refrigeration equipment with 1,500 pounds or greater will require leak management protocols. Registration and labeling compliance dates begin June 1, 2025 for large equipment, through June 1, 2028 for small equipment.

Extended producer responsibility (EPR) efforts in states

EPR efforts hold producers responsible for the lifecycle of their products. Multiple states have approved EPR plans, including Maine, Oregon, California, Colorado, Washington, New Jersey and Minnesota thus far primarily aimed at recycling and consumer, single-use plastic as well as packaging.

California climate disclosure bills could impact members

California is in the process of implementing two climate disclosure bills. Impacted companies include those that operate and/or sell in the state and meet other requirements highlighted below:

SB 253, Climate Corporate Data Accountability Act, applies to public and private companies with annual revenues of $1 billion or more that do business in California. Companies are to report Scope 1 and 2 emissions in 2026 and Scope 3 emissions in 2027.

SB 261, Greenhouse Gases: Climate-Related Financial Risk, applies to public and private companies with annual revenues of $500 million or more that do business in California. Companies are to complete the Task Force on Climate-Related Financial Disclosures and post to their websites before Jan. 1, 2026.

Reducing food loss and waste announced as new administration priority

Feeding America^® estimates that 38% of food grown and produced in the U.S. is wasted. This, combined with EPA’s research that shows that 58% of methane emissions from landfills are from food waste, is driving the administration’s National Strategy for Reducing Food Loss and Recycling Organics. The goal is to reduce food loss and waste by 50% by 2030. In addition to business and consumer behavior change, the initiative also will test innovative approaches to reducing food waste across the supply chain.

Gas stove debates shifts to November ballot in California

In November, voters in Berkeley, California will decide whether the city should tax large buildings that use natural gas. The proposed tax is estimated to raise $23 million annually that, if approved, would be dedicated to building electrification. The ballot initiative comes after a federal appeals court declined to rehear the April 2023 decision by the Ninth Circuit Court of Appeals to overturn the Berkeley, California ban on natural gas hookups in new buildings. In May, Berkeley halted enforcement of its policy, and other cities in the San Francisco Bay Area have done the same. 
The New York ban on natural gas and other fossil fuels in most new buildings remains. The ban applies to new buildings shorter than seven stories by 2026, and taller buildings by 2029.
More than 100 U.S. cities have moved to restrict gas-powered appliances. Most of these bans focus on new construction. Members are advised to check local requirements as this is an evolving situation.

REGULATIONS

Pay transparency laws proliferating

Effective Jan. 1, 2025, employers with 30 or more employees in Minnesota will be required to include a pay range or fixed pay rate in all job posts. The new requirement applies to postings by the employer and through third parties. Similar laws already exist in California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Nevada, New York, Rhode Island, Vermont, Washington and the District of Columbia and are being considered in South Carolina to reduce gender and racial wage gaps..

New efforts addressing potential AI discrimination

Colorado became the first U.S. state to govern artificial intelligence (AI) when Governor Polis signed Senate Bill 24-205. The law, which takes effect in 2026, requires those developing and using the technology to ensure that AI-generated hiring, banking and housing decisions avoid “algorithmic discrimination.”
New York City has a similar rule and many other states are considering AI-related hiring initiatives.
Illinois has since joined the list of those prohibiting employers’ discriminatory use of artificial intelligence (AI) technology and software. Effective, Jan. 1, 2026, employers must notify individuals and employees when AI is used in human resource functions.

Prop 65 labeling requirements require regular monitoring

California’s Proposition 65 – The Safe Drinking Water and Toxic Enforcement Act – requires companies to provide warning labels to notify people of exposure to more than 1,000 chemicals known to cause cancer, birth defects or other reproductive harm. While NAFEM reports on proposed changes in the Advocacy Update newsletter, members also should closely monitor the Prop 65 changes impacting their businesses.

Prevention of heat-related illnesses and injuries addressed in pending final rules

Members are advised to review new California and proposed federal regulations aimed at reducing heat-related illnesses and injuries:
California’s Heat Illness Prevention in Indoor Places of Employment rule went into effect July 23. The law applies to indoor environments when the temperature reaches 82° F. California already has regulations addressing those working in outdoor heat that are summarized in the linked document above.
See the Federal Advocacy Tracker above for updates on the Occupational Safety and Health Administration’s (OSHA) Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings proposed rule.

SUPPLY CHAIN

Coalition pressing California to consider supply chain in environmental goals

NAFEM continues to work with the almost 200 members of the California Sustainability Coalition which is pressing Gov. Newsom to consider an alternative to achieving the state’s environmental goals without further disruption to the critical, supply chain work being performed by the state’s ports, transport and other sectors.

Know your supply chain: Restricted entities listed on government database

The International Trade Administration maintains the Consolidated Screening List (CSL) of parties with which the U.S. restricts certain exports, reexports or transfers of items, including those addressed under the Uyghur (China) Forced Labor Prevention Act (UFLPA), Russia/Belarus sanctions and others. The list is updated daily, and email updates are available at the link above.

TAXES, TARIFFS & TRADE

Canada, Mexico preparing for upcoming USMCA renegotiations

In the lead-up to the July 2026 renegotiation of the U.S.-Mexico-Canada Agreement (USMCA), Canada is increasingly aligning its trade policy toward China with that of the U.S. The government recently announced the intent to impose a 25% tariff on steel and aluminum imports from China, as well as a 100% tariff on Chinese-made electric vehicles.

Judicial reforms in Mexico will have 1,600 judges and magistrates determined by popular election, rather than appointments. U.S. legislators are concerned about potential inconsistencies in rulings if judicial independence is compromised, along with possible changes to regulatory agencies ahead of the upcoming renegotiation of the USMCA.

Corporate Transparency Act remains on track for year-end reporting

NAFEM continues to advocate for revocation or a delay of the year-end compliance deadline for the Corporate Transparency Act. The Act would require businesses with revenue under $5 million and 20 or fewer employees to report beneficial ownership.

Hundreds of sanctions and restrictions in place against Russia and Belarus

Hundreds of sanctions and restrictions are in effect against Russia and third-parties allegedly helping Russia evade sanctions. The departments of Commerce, State and Treasury continue to act against individuals and organizations. NAFEM members should continue to scrutinize their supply chains.

Focus on shipments of goods produced with Uyghur labor continues

U.S. Customs and Border Protection (CBP) continues to closely watch for goods covered under the Uyghur (China) Forced Labor Prevention Act (UFLPA) that largely prohibits importing any items mined, produced or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China. Industrial and manufacturing materials represent the second highest volume of denied shipments; apparel is first. To clarify the UFLPA, CBP published FAQs, best practices and guidance.

Vague cargo descriptions no longer allowed by CBP

U.S. Customs & Border Patrol (CBP) requires specific cargo descriptions rather than vague descriptions like “daily necessities,” “accessories” and “parts.” In most cases, CBP will send messages requesting these descriptions via ACE Cargo Release after release of the cargo. Brokers and importers are expected to correct the issue with the shipper and bill of lading issuer for compliance on future shipments.

3	DOE proposes energy conservation standards	EERE-2017-BT-STD-0009-0053	– NAFEM/AHRI request for 30-day comment extension denied. – NAFEM comments –Expected in Nov. according to the Unified Agenda
4	DOE notification of data availability updating its analysis for above NOPR	EERE-2017-BT-STD-0009	– NAFEM comments
5	DOE updated its data analysis based on information received during the above comment period.	EERE-2017-BT-STD-0009	– Comment period closed April 15
ENVIRONMENT
1	EPA released drinking water standards for municipal water systems and organizations that provide their own drinking water, April 2024.	Final PFAS National Primary Drinking Water Regulation	– 5-year implementation period (2029)
2	EPA final rule restrictions on the use of certain HFCs, establishes a process for submitting technology transitions petitions, and establishes recordkeeping and reporting requirements.	EPA-HQ-OAR-2021-0643-0026	– Final rule issued Oct. 5, 2023 – Compliance dates vary depending on the subsector ranging from Jan. 1, 2025, to Jan. 1, 2028.
3	EPA finalizes reporting and recordkeeping requirements for PFAS. The agency also modified the definition of PFAS. Anyone who has manufactured (including imported) a PFAS for a commercial purpose in any year since January 1, 2011, is covered by this rule.	EPA-HQ-OPPT-2020-0549	– Final rule issued Oct. 11, 2023 – Beginning of compliance submission period delayed to July 11, 2025.
4	EPA issues pre-publication final rule for the management of certain HFCs and their substitutes	EPA-HQ-OAR-2022-0606	– Pre-publication final rule
5	EPA proposes ban on all TCE use	EPA-OPPT-2020-0642-8026	– Comment period closed Dec. 15, 2023
6	EPA lists final SNAP 26 approved refrigerants	Final rule	– Effective July 15 – Fact sheet
REGULATIONS
1	DOC proposes rule to revise trade remedy procedures	230424–0112	– Comment period closed July. 10, 2023
2	Labor Dept. announced final overtime rule raising the minimum threshold with automatic increases every three years	2024-08038	– Effective Jan. 1, 2025
3	FTC issued final rule effectively banning non-compete agreements	2023-00414	– The U.S. District Court for the Northern District of Texas issued a final judgment that blocked the Federal Trade Commission’s (FTC) non-compete rule from taking effect.
4	OMB proposes changes to regulatory decision-making and engagement process	OMB-2022-0011	– NAFEM comments – Comments closed June 2023. Awaiting response
5	SEC Climate Change Disclosure Rule	3235-AN22	– Final rule published March 28 – SEC stayed rule pending judicial review April 4
6	The Regulatory Early Notice and Engagement Act would require federal agencies to provide information on their websites and to Congress one week after initiating new rulemaking activities.	HR 8204	– Introduced May 2024 and referred to Cmte. on Sm. Business
7	OSHA’s proposed Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings	OSHA-2021-0009	– Comments due Dec. 30
SUPPLY CHAIN
1	FMC proposes rule prohibiting common carriers refusal of cargo space		– Final Rule effective Sept. 23
2	USTR requests comments on trade policy initiatives that promote supply chain resilience	USTR-2024-0002	– Comment period closed April 22 – Public hearing May 2
3	Customs Facilitation Act of 2024 Sens. Cassidy, R-La. and Cortez Masto, D-Nev., are calling for a trade system that “protects consumers and makes it easier for American businesses to move goods around the world.”	Act
TAXES, TARIFFS, TRADE
1	USTR announced tariff increases effective Sept. 27. The agency also increased tariffs on personal protective equipment; proposed new tariffs on tungsten, wafers and polysilicon; and expanded the exclusion process slightly for machinery used in domestic and solar manufacturing.		– Announcement – NAFEM comments
2	Additional anti-dumping tariffs announced on aluminum extrusions from 14 countries, on top of those previously announced		– Announcement – Final decision expected by Sept.
3	NAFEM joined hundreds of associations urging repeal of the Corporate Transparency Act that would require small business to report beneficial ownership to the Treasury Dept.	HR 8147 and S 4297	– Letter of support – NAFEM Action Center
4	Death Tax Repeal Act would help family-owned companies currently faced with significant tax burdens following the death of a family member	S 1108	– Committee on Small Business and Entrepreneurship. Hearings held in Jan.
5	Proposal to secure a permanent 20% deduction for qualified business income	Senate Main Street Tax Certainty Act of 2023 Companion House Bill HR 4721	– NAFEM letter of support
6	DOC BIS proposed rule to revise the Section 232 exclusions process	2023-18328	– NAFEM comments – NAFEM also participated in comments by CAMMU and the NFTC TRC – Awaiting response
7	The Uyghur Forced Labor Disclosure Act would amend the Securities Act of 1934 to require disclosure of whether companies’ supply chains use forced Uyghur labor. In the meantime, the Department of Homeland Security is prioritizing reviews of aluminum, polyvinyl chloride and seafood sectors.	HR 4452	– Uyghur Forced Labor Strategy
8	American Workers and Trade Competitiveness Act would reauthorize/revise the Trade Adjustment Assistance Program.	HR 4276	– Referred to Senate Committee on Finance