Dear IPC Members:

I hope everyone had a safe and restful Labor Day Weekend.

We are now under two months away from the November elections here in the United States, and the likelihood of a new coronavirus relief package remains bleak. However, if Congress can be spurred to act, we will do our best to ensure the electronics industry’s needs are accounted for. See Top of the Week below.

Meanwhile, your voice as a member of this industry is powerful. If you have yet to participate, there is still time to share your input with decision-makers, including on timely issues like potential PFAS regulations, the upcoming U.S. elections, a due diligence initiative in Europe, and more.

As always, please let us know if you have any questions or suggestions for IPC advocacy in the coming weeks and months. We are here to advocate for you; let us know if we can make your jobs easier.

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP OF THE WEEK

Republican Stimulus Bill Fails in Senate: After months of failed negotiations, Senate Republicans unveiled a “skinny” coronavirus stimulus package this week, only for it to be promptly voted down this Thursday. The $500 billion package, which drew immediate rebuke from Senate Democrats, was ostensibly intended to target “the most pressing areas for help -- revived supplemental unemployment insurance benefits and extended aid for small business, in particular,” according to reporting from Bloomberg. With no further talks scheduled between Democratic leaders and the White House, the prospects of an agreement before the November election look increasingly dim. In case you missed it, check out a recent letter sent to the top four leaders in Congress, in which IPC urged Congress to support common-sense recovery measures. IPC Contact: Chris Mitchell.

“We Are to Blame for The U.S. Manufacturing Decline:” “For more than three decades, the United States government has prioritized globalization while deprioritizing the strength and resiliency of its industrial base,” writes IPC President and CEO John Mitchell in a new op-ed in The Hill. “U.S. electronics manufacturing is a case in point and has, in many ways, been hollowed out by our collective inaction and short-sighted decision making.” Policy makers need to “go beyond stimulus checks” and do more to “help American electronics manufacturers to compete on the global stage they once dominated.” IPC Contact: John Mitchell.

DEFENSE

ICYMI: House and Senate Pass Pro-Electronics Measures in Defense Bills: The U.S. House and Senate recently passed separate versions of the annual National Defense Authorization Act, both including provisions of significant interest to our industry:

• New requirements for bare and assembled printed circuit boards (PCBs) and printed circuit board assemblies used in sensitive defense systems to be purchased from trusted U.S. or allied sources;
• An IPC-backed measure requiring the Defense Department to analyze certain materials and technology sectors – including PCBs and other electronics components – for possible action to address sourcing and industrial capacity risks; and
• Funding and tax credits to strengthen domestic semiconductor production.

With Congress returning from recess this week, the House and Senate Armed Services Committee leaders will continue negotiations to iron out differences between the two bills, with the goal of having the final defense authorization bill ready by October 1. Meanwhile, a spending bill recently cleared by the U.S. House includes funding for lead-free electronics research and development that IPC has sought. The Senate has yet to act on its version. IPC will continue to advocate for measures to shore up supply chains for electronics related to essential governmental functions including defense. IPC Contact: Chris Mitchell.

Annual Defense Policy Bill Includes Green Chemistry Provisions: The U.S. Senate has taken action aimed at reducing the use of hazardous substances by including a “sustainable chemistry” bill in the latest annual defense policy bill. The National Defense Authorization Act, passed by the Senate in July, included the Sustainable Chemistry Research and Development Act of 2019, authored by Sen. Chris Coons (D-DE). This bipartisan legislation aims to encourage the “development of new and innovative chemicals, products and processes with an improved environmental footprint through efficient use of resources, reducing or eliminating exposure to hazardous substances, or otherwise minimizing harm to human health and the environment,” according to a release from Sen. Coons. Let us know what you think. IPC Contact: Kelly Scanlon.

EDUCATION AND WORKFORCE

IPC Launches New Online Workforce Training Options: Do you have difficulties finding skilled production workers? Two-thirds of electronics industry companies do, according to a recent IPC study. To remedy this issue, IPC has launched all-new IPC Electronics Workforce Training courses to help our members and their employees. Check out the news release for more information, and to view the expanded course catalog, visit https://training.ipc.org.

ENVIRONMENT, HEALTH AND SAFETY

COVID-19: Best Practices for Assessing Workplace Risk Webinar: This Wednesday, September 9, IPC hosted a webinar to answer some of the most challenging questions employers and employees are facing regarding worker safety and support. IPC shared best practices for assessing workplace risk for COVID-19 and provided attendees with resources and tools that you can use to help you navigate the current science and policy happenings. Let us know if you have any feedback from the webinar or if you have any additional questions. IPC Contact: Kelly Scanlon.

EPA Releases Final List of Companies Subject to Chemical Fee: On September 4, the U.S.  Environmental Protection Agency (EPA) released the final list of businesses subject to fees for the 20 high-priority substances listed under the Toxic Substances Control Act (TSCA) Fees Rule. Changes have been made since the preliminary list was released on January 27, which IPC wrote about in a February blog. Businesses identified on the final list must notify the EPA regarding their intention to form or join consortia to pay fees that defray the costs of risk evaluations. Fee payments are required 120 days after the final list is released, although the EPA may incorporate flexibility into the payment schedule. Let us know your questions, concerns, and suggestions about the TSCA fee obligations. IPC Contact: Kelly Scanlon.

EPA Takes Next Step on TSCA Risk Evaluations: On September 4, the U.S. Environmental Protection Agency (EPA) released the final scope documents for the risk evaluations of 20 high-priority substances under the Toxic Substances Control Act (TSCA). These documents will outline a three-year process for determining unreasonable risk for various conditions of use of high-priority substances. IPC has already engaged with the EPA during the review period for the draft scope documents on Tetrabromobisphenol A and formaldehyde, and we will be reviewing all of the final scope documents to determine their applicability to the electronics sector. We welcome your review and insights on the use of these chemicals. IPC Contact: Kelly Scanlon.

Interested in Chemical and Product Regulations in Asia? Asia is home to several of the world’s largest nations and most dynamic economies, with many governments in the region having established comprehensive environmental, health, and safety (EHS) policy frameworks. Please check out these new white papers from IPC on evolving chemicals regulations in Taiwan, Thailand, and Singapore. These papers provide a detailed look at the history of the policies, recent regulatory updates, and the regulatory trends in the respective countries. Please check out this new IPC blog for more information on the Asia-Pacific EHS policy landscape; let us know what you think! IPC Contact: Kelly Scanlon.

Does Your Company Use PFAS to Make Electronics? Regulators in the United States and the European Union continue to eye chemicals in the per- and polyfluoroalkyl substances (PFAS) class. In July, IPC completed a screening study to gain a better understanding of the evolving policies shaping the production and use of PFAS. IPC needs you to review the preliminary findings from our screening study to confirm whether we accurately captured the uses of PFAS in electronics products and processes. Please send your feedback to Kelly Scanlon. For more information, check out IPC’s new blog on PFAS regulation.

EUROPEAN UNION

EC President Names New EU Trade Commissioner: On September 8, European Commission President Ursula von der Leyen announced Valdis Dombrovskis, a former Latvian prime minister and senior European Union official, will be the EU's new trade commissioner following Phil Hogan’s recent resignation. Dombrovskis, who has served as acting trade commissioner since the resignation of Hogan last month, will cede some of the current responsibilities in his economic portfolio, putting Mairead McGuinness, a veteran member of the European Parliament, in charge of financial services. IPC Contact: Alison James

EC Continues Work on Due Diligence Initiative: As part of its preparatory work on a mandatory due diligence legislative proposal, the European Commission recently released an “inception impact assessment” on the initiative, which seeks to help companies “better manage sustainability-related matters in their own operations and value chains in regards to social and human rights, climate change, and the environment.” You can share your feedback here. Meanwhile, the commission also conducted a study affirming that many companies face pressure to generate short-term shareholder value to the detriment of long-term investments, especially regarding sustainability. A formal legislative proposal is expected in early 2021. IPC will continue to advocate for the electronics industry throughout the legislative process; we welcome your input and questions. IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

Democratic Nominee Joe Biden Unveils New Offshoring Plan: Democratic presidential nominee Joe Biden formally released his latest manufacturing plan at a campaign stop in Michigan this Thursday. The proposal, aimed at strengthening United States-based manufacturing, has three main components:

• An offshoring tax penalty;
• A “Made in America” tax credit; and
• Elimination of offshore tax loopholes.

Senior policy adviser Jake Sullivan said Biden’s latest manufacturing plan addresses what the candidate sees “as President Donald Trump’s broken promises on improving U.S. manufacturing and reducing offshoring,” according to reporting from Bloomberg. Biden’s offshoring proposal follows up on his previous economic plan released in July, the "Build Back Better" plan. IPC Contact: Chris Mitchell.

U.S. Firms in China Fear Trade Tensions Will Continue: United States companies in China increasingly fear bilateral trade tensions will continue for the foreseeable future, according to a recent survey reported on by Reuters. Fifty percent of respondents now believe “soured ties” will last at least three years, a 20 percent increase from 2019. However, more than 90 percent of respondents said they will remain in China, 70 percent said they do not intend to shift manufacturing to other countries; and less than 4 percent plan to return production to the U.S. Do you anticipate trade tensions with China continuing? Let us know what you think. IPC Contact: Chris Mitchell.

The World Needs U.S. Leadership in Setting Technological Standards: IPC President and CEO John Mitchell writes: The global dominance of U.S. industry is “weakening amid the rise of international competition hungry to take advantage of a distracted U.S., flat-footed and mired in partisan political infighting.” In contrast to the current trend, IPC believes “America should seize the mantle of leadership” and do more to “help shape the future of global technology standards.” Read the full op-ed in Nextgov. IPC Contact: Chris Mitchell.

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