What We’re Watching

April 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.  

Federal Advocacy Tracker

	Issue	Docket No./Link	Status/Notes
ENERGY
Multiple categories (ACIM, CRE, WIC/F)
1	DOE 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 * NAFEM did not submit comment
Automatic Commercial Ice Makers
1	DOE proposed energy conservation standards	EERE-2017-BT-STD-0022	* NAFEM submitted comments * Awaiting response
2	DOE notification of data availability updating its analysis for above NOPR	EERE-2017-BT-STD-0022-0056	*Comment period closed Oct. 25, 2023 *NAFEM did not submit comment
Commercial Refrigeration Equipment
1	DOE notice of proposed rulemaking 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 on NOPR * NAFEM, AHRI and NAMA met with DOE and OMB to discuss and urged no new standard ruling * NAFEM, CFESA, FEDA, FCSI, MAFSI and NAMA collectively communicated their opposition to the proposed standards in a letter to House and Senate leadership
2	DOE test procedures	EERE-2017-BT-TP-0008	* Final rule issued Oct. 26, 2023 * Compliance becomes mandatory for equipment testing starting Sept. 20, 2024
Walk-in Coolers/Freezers
1	DOE final rule on test procedures	EERE–2017–BT–TP–0010	* Final rule issued May 4, 2023 * Compliance became 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 became mandatory Oct. 31, 2023
3	DOE proposed energy conservation standards	EERE-2017-BT-STD-0009-0053	* NAFEM/AHRI request for 30-day comment extension denied. * NAFEM submitted comments * Awaiting response
4	DOE notification of data availability updating its analysis for above NOPR	EERE-2017-BT-STD-0009	* NAFEM submitted comments
5	DOE updated its data analysis based on information received during the above comment period.	EERE-2017-BT-STD-0009	* Comments due April 15

ENVIRONMENT
1	EPA SNAP approves R-471A and R-515B for refrigeration and R-515B also for commercial ice machines	EPA-HQ-OAR-2003-0118	* Effective Sept. 8, 2023
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 * Compliance becomes mandatory 18 months after the effective date for manufacturers and 24 months after the effective date for small manufacturers. * “Small manufacturers” are defined here.
4	EPA proposes rule to minimize HFC releases from equipment	EPA-HQ-OAR-2022-0606	* Comment period closed Dec. 18, 2023 * NAFEM did not submit comment
5	EPA proposes ban on all TCE use	EPA-OPPT-2020-0642-8026	* Comment period closed Dec. 15, 2023 * NAFEM did not submit comment
REGULATIONS
1	DOC proposed rule to revise trade remedy procedures	230424–0112
2	FTC proposed rule banning non-compete agreements	2023-00414	Decision delayed until 2024
3	OMB proposed changes to regulatory decision-making and engagement process	OMB-2022-0011	* NAFEM submitted comments * Awaiting response
4	SEC proposed Climate Change Disclosure Rule	3235-AN22	* Final rule issued March 6, 2024; becomes effective 18 months after rule appears in the Federal Register
5	DOL proposes raising thresholds for exempt employees	WHD-2023-0001-0001	* Comment period closed Nov. 7, 2023 * NAFEM did not submit comment
SUPPLY CHAIN
1	FMC proposed rule prohibiting common carriers refusal of cargo space	2023-12744	* Comment period closed July 31, 2023 * NAFEM did not submit comments
2	USTR requests comments on trade policy initiatives that promote supply chain resilience	USTR-2024-0002	* Comments due April 12 * Public hearing May 2
TAXES, TARIFFS & TRADE
1	Tax Relief for American Families and Workers Act would restore immediate expensing of domestic R&D expenses, enhanced interest deductibility and 100% accelerated depreciation.	HR 7024	NAFEM submitted a letter of support
2	Death Tax Repeal Act would help family-owned companies currently faced with significant tax burdens following the death of a family member	S 1108
3	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 submitted a letter of support
4	DOC BIS proposed rule to revise the Section 232 exclusions process	2023-18328	* NAFEM submitted comments. * Awaiting response
			NAFEM also participated in Comment by CAMMU and the
			NFTC TRC
5	Proposed Combating the Persecution of Religious Groups in China Act	S 3164
6	The Uyghur Forced Labor Disclosure Act would amend the Securities Act of 1934 to require discloser of whether companies’ supply chains use forced Uyghur labor	HR 4452
7	American Workers and Trade Competitiveness Act would reauthorize/revise the Trade Adjustment Assistance Program by: Expanding eligibility to additional workers, establishing a child and other dependent care allowance.Increasing the maximum benefit of wage insurance. Permanently extending the tax credit for health insurance costs and increasing the percentage of the credit.Extending the Generalized System of Preferences (GSP), which provides duty-free treatment to products imported from designated beneficiary countries.	HR 4276

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: Colorado, Connecticut, Washington D.C., Maine, Maryland, Massachusetts, Nevada, New Jersey, Oregon, Rhode Island, Vermont and Washington¹.  

Proposed

NAFEM has begun a dialogue with the California Energy Commission (CEC) over the state’s potential energy-efficiency standards for gas- and electric-powered commercial steam cookers, convection ovens, dishwashers and fryers. With input from members, NAFEM replied to the CEC’s pre-rulemaking RFI.

• According to the pending Maryland Energy Administration energy-efficiency standards refrigeration equipment must meet certain daily maximum energy consumption requirements. Dishwashers will need to meet ENERGY STAR^® Version 2.0 requirements and steam cookers ENERGY STAR Version 1.2 requirements. Comments were due Jan. 29. 

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 Colorado, Hawaii, Maine, Massachusetts, New Jersey, New York, and Rhode Island requiring registration. These states may issue financial penalties for products sold within their borders that don’t meet minimum energy-efficiency levels. SASD covers commercial dishwashers, fryers, steam cookers, ovens and hot food holding cabinets.  
• California also requires manufacturers to certify the performance of some 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, as well as convection, combi and gas rack ovens. 

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 were used widely in nonstick, water- and grease-resistant products, as well as some firefighting foams.

• The Environmental Protection Agency (EPA) finalized its reporting and recording requirements for PFAS under the Toxic Substances Control Act (TSCA).  
• EPA also proposed strict limits on two common types of PFAS, PFOA and PFOS, and said it wanted to regulate four others. Under the proposal, water providers, including those with wells, would be responsible for monitoring their systems for the chemicals.  
• California and Maine currently have the most stringent PFAS regulations in the U.S.  
• As of Jan. 1, 2023, CA AB1200 requires manufacturers of cookware sold in the state to disclose the presence of PFAS on the product label and on the product listing for online sales, in both English and Spanish. Information on specific labeling requirements of the broad-reaching regulation is in a recorded NAFEM webinar.  
• In Maine, a retailer may not sell any products containing intentionally added PFAS after Jan. 1, 2030.  
• The Colorado Senate passed SB 24-081 addressing intentionally added PFAS. The approved bill exempts commercial cookware until 2028, a significant exemption that gives the industry time to comply. The bill could be further amended when the House begins its review.
• Hawaii HB 1986 seeks to prohibit the sale of numerous items – including foodservice ware – with intentionally added PFAS as of Dec. 31, 2026.  
• A proposal before the Illinois General Assembly – the PFAS Reduction Act (SB2705) – would restrict the sale of specified products, including cookware, with intentionally added PFAS beginning Jan. 1, 2025.  
• NY AB 9005 proposes to prohibit the sale of products, including cookware, containing intentionally added PFAS as of Jan. 1, 2027. A companion bill, NY S 5648A, seeks to do the same by Jan. 1, 2025.  
• Rhode Island SB 2152 proposes to ban all uses of PFAS by Dec 31, 2032, unless the use is considered unavoidable. Cookware is included in the proposal. A companion bill – RI HB 7356 – was introduced in the state’s House Jan. 31. 
• Wisconsin proposes to ban intentionally added PFAS in cookware and other items. If Senate Bill 1093 advances, it will be effective Jan. 1, 2028 and establish penalties of $100 per product per day. 
• Additional insights are available in EPA’s PFAS Strategic Roadmap. 
• Canada’s Draft State of PFAS Report was produced to inform decision-making on PFAS in the country. Health Canada proposes that PFAS be treated as a class that may constitute or may constitute a danger in Canada to human life or health.  

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. 

Updated HFC information available on EPA Data Hub 

• In keeping with the HFC Allocation Program of the American Innovation and Manufacturing (AIM) Act, EPA updated hydrofluorocarbon (HFC) data including imports, exports, inventory, and destruction as well as allowance transfers and expenditures. Information 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.

Extended producer responsibility (EPR) efforts in states

• In keeping with the HFC Allocation Program of the American Innovation and Manufacturing (AIM) Act, EPA updated hydrofluorocarbon (HFC) data including imports, exports, inventory, and destruction as well as allowance transfers and expenditures. Information is available on the EPA HFC Data Hub. 

Extended producer responsibility (EPR) efforts in states  

• In Canada, SORAC, the Commercial Appliance Recovery Society was formed to meet Quebec’s extended-producer responsibility initiative for commercial and institutional refrigeration and freezer equipment to comply with Recyc-Quebec (R-Q) requirements. 
• Washington House Bill 1164 calls for the creation of an appliance disposal extended producer responsibility program for commercial refrigerators, freezers, dishwashers and a number of other residential and commercial appliances. If approved, the bill mandates the program be operational by July 1, 2027. Recovery rates outlined in the proposal are 35% in 2027 and increasing by 5% annually until the rate reaches 80%. Additionally, the state HB 2401 calls for the creation of an extender producer responsibility program for the responsible management of refrigerant gases with a higher global warming potential than carbon dioxide. The bill has passed the House and is currently with the Senate.
• Multiple states have approved or are considering EPR efforts thus far primarily aimed at packaging.  

Gas stove debates continue

• A federal appeals court has 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. Unless the state Supreme Court decides to hear the case, this decision effectively makes bans against new natural gas illegal in California. 
• New York is the first state to ban natural gas and other fossil fuels in most new buildings. 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. It is unclear how they will proceed given the California decision.

REGULATIONS

NAFEM advocates with others for balanced regulations for U.S. manufacturers

• NAFEM joined the Manufacturers for Sensible Regulations coalition, an initiative created by the National Association of Manufacturers (NAM), to support manufacturing competitiveness. Data shows that the regulatory cost for small U.S. manufacturers is $34,671 per employee per year, more than three times the cost to the average U.S. company. Coalition members are urging the White House to protect jobs, communities and economic growth by adding a manufacturing adviser to the White House staff to coordinate and balance regulatory efforts among agencies.  

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, we also recommend members closely monitor the Prop 65 changes impacting their businesses.  

SUPPLY CHAIN

Panama Canal backlog impacting global shipping

• The Panama Canal backlog continues to snarl global shipping with companies detouring thousands of miles to avoid delays.  

Mexico working on alternative to Panama Canal

• Mexico continues work on its trans-isthmus trade corridor. Ships would unload their cargo at either Salina Cruz, Oaxaca or Coatzacoalcos, Veracruz, with the cargo then transported 303 kilometers across the isthmus via rail and reloaded on another ship. The corridor is expected to open by September. 

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

Hundreds of sanctions and restrictions in place against Russia and Belarus

• Hundreds of sanctions and restrictions are in place against Russia and third-parties allegedly helping Russia evade sanctions. The departments of Commerce, State and Treasury are acting against individuals and organizations.   

Section 232 news

• In comments to the U.S. Department of Commerce (DOC) Bureau of Industry and Security’s (BIS) notice of proposed rulemaking (NOPR), NAFEM requested three actions to improve the exclusion process for the Section 232 steel and aluminum tariffs. Based on valuable input from members, NAFEM requested that BIS: 
  1. Continue to improve the objection form and require support documentation to increase transparency and fairness of the process. 
  2. Establish a public request process for industry-specific, general-approved exclusions. 
  3. Permit trade associations to submit exclusion requests on behalf of members not importers of record or provide an alternative option for small- and medium-sized companies to participate in the process. 
• At year end, the U.S. agreed to continue the current tariff rate quota (TRQ) on EU steel and aluminum products imported into the U.S. At the same time, the EU agreed to extend the suspension of retaliatory tariffs on U.S. steel and aluminum products until March 2025, after U.S. and EU elections.  
• NAFEM continues to advocate for removal of Section 232 tariffs on steel and aluminum imports.  

Section 301 news

• As expected, the U.S. Trade Representative (USTR) again extended 352 product exclusions and 77 COVID-related exclusions from Section 301 tariffs on imports from China through May 31.  
• The government-requested 60-day extension to file its opening brief in the litigation challenging the Section 301 tariffs was granted by the U.S. Court of Appeals for the Federal Circuit. Oral arguments are anticipated in Q1.  
• NAFEM continues to advocate for removal of Section 301 tariffs on imports from China.  

Aluminum extrusions subject to upcoming antidumping duties

• Antidumping duties on aluminum extrusions from China, Columbia, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, South Korea, Taiwan, Thailand, Türkiye, United Arab Emirates and Vietnam are expected in early May. The broad scope covers semi-finished assemblies and parts, including glass refrigerator shelves, appliance parts and subassemblies, fin evaporator coils and systems for refrigerators, heating and cooling system components, heat sinks and electrical conduits.

Focus on shipments of goods produced with Uyghur labor continues

• U.S. Customs and Border Protection (CBP) closely watches for goods covered under the Uyghur (China) Forced Labor Prevention Act (UFLPA). The Act 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. 
• NAFEM is watching US HR 4452 that would amend the Securities Act of 1934 to require discloser of whether companies’ supply chains use forced Uyghur labor.  

NAFEM communicates concerns with aluminum extrusion, subassemblies investigation  

• NAFEM joined other trade associations in communicating concerns over the broad scope of antidumping and countervailing duty investigations on aluminum extrusions with Secretary of Commerce Gina Raimondo. The scope language could potentially impact NAFEM members who import certain assemblies, like fin evaporator coils for refrigerators, for incorporation into finished U.S. goods.    

Focus on shipments of goods produced with Uyghur labor continues 

• U.S. Customs and Border Protection (CBP) closely watches 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.   

OTHER TOPICS?

If there is a topic you would like NAFEM to address, please contact us at advocacy@nafem.org.