What We’re Watching

December 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 Dec. 
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-led industry letter to Congress  NAFEM, AHRI, NAMA met with SBA  NAFEM held ex parte presentation with DOE staff  Expected in Dec..  
2 DOE issued Notice of Data Availability (NODA) providing updated analysis to inform its final rule.  EERE-2017-BT-STD-0007 NAFEM/AHRI comment extension request denied.  NAFEM comments  
Walk-in Coolers/Freezers 
1 DOE proposes energy conservation standards EERE-2017-BT-STD-0009-0053 NAFEM/AHRI comment extension request denied. NAFEM comments Expected in Dec.  
2 DOE notification of data availability updating its analysis for above NOPR EERE-2017-BT-STD-0009 NAFEM comments 
3 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 On hold pending litigation Currently calls for 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 Oct. 5, 2023 Compliance dates vary from Jan. 1, 2025, to Jan. 1, 2028. 
3 Imported or domestically manufactured stand-alone retail food refrigeration units must use a refrigerant with a GWP of 150 or lower Program overview Final rule fact sheet Effective Jan. 1, 2025 
4 EPA finalizes reporting and recordkeeping requirements for PFAS. The agency also modified the definition of PFAS.  Any company that manufactured (including imported) a PFAS for a commercial purpose in any year since January 1, 2011, must report. EPA-HQ-OPPT-2020-0549 Final rule issued Oct. 11, 2023 Beginning of compliance submission period delayed to July 11, 2025.  
5 EPA issues pre-publication final rule for the management of certain HFCs and their substitutes EPA-HQ-OAR-2022-0606 Pre-publication final rule  
6 EPA proposes ban on all TCE use EPA-OPPT-2020-0642-8026 Comment period closed Dec. 15, 2023 
7 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 The Department of Labor overtime rule set to take effect Jan. 1, 2025 was overturned. The agency has not said whether it plans to appeal.  2024-08038    
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.  
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 
   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 recommended on aluminum extrusions from 14 countries  Int’l Trade Commission issued negative determination. All cases dismissed and duties being refunded. 
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 Compliance by Jan. 1, 2025 still required 
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 NAFEM Action Center letter 
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 
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 

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 and dipper wells. NAFEM provided comments on the initial RFI. Comments on the commercial oven RFI were due Oct. 25. Comments on the dipper wells were due Nov. 8.
  • The Maryland Energy Administration issued final energy-efficiency standards for commercial dishwashers and steam cookers. Manufacturers must certify products in the State Appliance Standards Database (SASD), or other nationally recognized databases. Also, manufacturers of covered products must identify each model offered for sale in Maryland as in compliance with the state’s appliance efficiency standards, by means of a mark, label or tag on the product and packaging at the time of sale or installation.

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, Maryland, New Jersey, New York and Rhode Island requiring registration of various products incuding 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 or are unregistered.  
  • California also requires manufacturers to certify the performance of refrigeration products sold in the state via its Modernized Appliance Efficiency Database System (MAEDbS). The two databases do not share information, 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. 

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. Comments are due Nov. 11.

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 proposes adding 16 individual PFAS and 15 PFAS categories representing more than 100 individual PFAS, to the Toxics Release Inventory. Doing so would identify the PFAS as chemicals of special concern, subjecting their use to more robust reporting requirements, including reporting even for small concentrations. Comments were due Nov. 7. 
  • The EPA extended the due date for PFAS reporting and recordkeeping by eight months. The start of the submission period moved to July 11, 2025. Companies that manufactured or imported PFAS in any amount between 2011 and 2022 must report. Companies that only imported PFAS-containing articles during this time can report using a streamlined form.  
  • Litigation is currently underway against EPA’s drinking water standards that establish maximum contaminant levels (MCL) for PFOA and PFOS, PFNA, PFHxS and HFPO-DA. The Trump administration is likely to review these standards as well. The current standards apply to drinking water utilities and organizations that provide their own drinking water via a well or other resource.

Canada PFAS reports due early next year 

  • Canada’s new PFAS reporting rule requires manufacturers and importers of PFAS to collect and report information on 312 PFAS by Jan. 29, 2025. The rule specifically identifies cookware and utensils that contact heated food, plus food processing equipment including conveyor belts, trays, vats, nozzles, molds and cutters that contact foods or beverages before packaging and distribution. All businesses with five or more employees, or more than $30,000 in annual gross revenue, must report. 

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, and June 1, 2026 for medium equipment (200-1,499 pounds) and June 1, 2028 for small equipment (50-199 pounds).  

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:  
  1. 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.
  2. 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.   

Gas stove debates shifts to November ballot in California

  • In November, voters in Berkeley, California decided against a measure to tax large buildings that use natural gas. Governor Newsom also vetoed a bill that would have required all gas stoves manufactured for indoor use and sold in the state to include a visible warning label on the product that alerted consumers to potential health impacts associated with gas cooking emissions, and their impact on indoor air quality.
  • 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 in place to reduce gender and racial wage gaps already exist in California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Nevada, New York, Rhode Island, Vermont, Washington and the District of Columbia.  

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 human resource functions use AI.  

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 California final rule; OSHA considers similar

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 (ITA) 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

Tax reform provisions due to sunset 

  • NAFEM is closely watching and working with allied associations to address pending tax changes that would potentially impact manufacturers as elements of the 2017 Tax Cuts and Jobs Act sunset. Specifics are addressed on the National Association of Manufacturers’ (NAM) website, along with a link to share your recorded testimonial on tax-related topics with elected officials.  

USTR opens portal for temporary exemptions for manufacturing machinery

The USTR portal is open for submitting temporary exclusion requests from Section 301 China import tariffs for certain machinery used in domestic manufacturing. The Federal Register Notice includes a list of eligible subheadings. The deadline for submitting requests is March 31, 2025.

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 currently requires businesses with revenue under $5 million and 20 or fewer employees to report beneficial ownership by Jan. 1, 2025. In the meantime, learn more about compliance in this webinar recorded by the NAFEM legal team at Barnes &Thornburg.

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. 

OTHER TOPICS?

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