Dear IPC Members:

As we move into the heart of summer, policy debates are heating up across the globe. This week’s newsletter provides updates on the new budget proposal from U.S. Senate Democrats; lead-free R&D inclusion in the FY 2022 defense spending bill; a new climate policy package in Europe; and more. As usual, we’re also tracking a slew of environmental and health regulations.

And a reminder, if you’re looking to hear from experts that are doing innovative eco-design work, join IPC and INEMI on July 27 for a discussion on eco-design for a circular electronics economy. Register here.

Please send us a message if you have any insight on what you think governments should be doing to support our industry’s long-term growth and evolution. We’ll answer your questions in future editions of IPC Global Advocacy Report.

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

Defense Spending Bill Includes $7.5 Million in Lead-Free Funding: On July 13, the U.S. House Appropriations Committee approved a $706 billion defense spending bill for FY 2022, including $7.5 million sought by IPC to reduce U.S. Department of Defense (DoD) reliance on lead-based electronics. To date, the U.S. Congress has provided a combined $15 million for this research and development (R&D) in FY 2020 and FY 2021. In a challenging budget environment, the House figure signals ongoing congressional interest in funding this R&D project through completion. More details are available in this December 2020 IPC Blog post. We will keep you posted and welcome your questions and suggestions. IPC Contact: Chris Mitchell.

U.S. Senate Democrats Release $3.5 Trillion Budget: U.S. Senate Democrats announced Tuesday they have reached an agreement on a $3.5 trillion budget, which is set to fund many of President Joe Biden’s goals on climate change, health care, and other aspects of his economic agenda. The budget also included funding for a “slew of workforce and business investments aimed at supporting small businesses, research and development improvements, and manufacturing and supply chain efforts,” CNBC reports. Biden has proposed increasing taxes on corporations and wealthy individuals to finance the measure. IPC Contact: Chris Mitchell.

Europe Unveils Major Policy Package to Address Climate Change: On July 14, the European Commission presented a climate policy package aimed at reducing emissions of greenhouse gases by 55% by 2030. The package, known as “Fit for 55,” includes a number of legislative proposals to achieve climate goals set forth in the European Green Deal. The package also included a Carbon Border Adjustment Mechanism (CBAM) proposal, which would implement a levy on carbon-intensive products imported into Europe. IPC will be looking closely at how this measure affects our industry, and we welcome your input. IPC Contact: Alison James.

IPC ADVOCACY AND YOU

Help IPC’s Advocacy Team Help You! U.S. members of IPC: Please take a minute to visit our online action center and register to participate in upcoming campaigns to educate the U.S. Congress on our key issues. It’s fast, easy, and important. Thanks! IPC Contact: Ken Schramko.

EDUCATION AND WORKFORCE

Biden Executive Order Addresses Labor Bill on Unions: Last week, U.S. President Joe Biden signed a sweeping executive order on competition in the American economy, which included a notable emphasis on collective bargaining and unions. The order complemented Biden’s call for the U.S. Congress to pass the Protecting the Right to Organize (PRO) Act, which expands labor protections related to employees’ rights to organize and collectively bargain in the workplace and would be one of the most dramatic changes to U.S. labor laws in decades. Let us know if you have any questions or concerns. IPC Contact: Ken Schramko.

ENVIRONMENT & HEALTH

EPA Plans New Round of Reviews on TSCA Risk Evaluations: The U.S. Environmental Protection Agency (EPA) announced recently it will be reviewing the first 10 risk evaluations of certain chemical substances to ensure all populations are protected from unreasonable risks associated with these substances, several of which are used to manufacture electronics. IPC will continue to monitor the EPA’s progress in these reviews and any subsequent risk management actions. Let us know if you are interested in these risk evaluations and getting more involved. IPC Contact: Kelly Scanlon.

New EPA Rule to Require Reporting and Recordkeeping on PFAS: On June 28, the U.S. Environmental Protection Agency (EPA) issued a proposed rule that would require all manufacturers and importers of per- and polyfluoroalkyl substances (PFAS) to report information regarding the “uses, production volumes, disposal, exposures, and hazards” of the chemical substance. PFAS has a history of use in electronics, and IPC will be preparing comments in response to this proposed rule during the 60-day comment period. Please let us know if you have any questions or thoughts about how this will affect your business. IPC Contact: Kelly Scanlon.

EPA To Require Reporting of High-Priority Chemicals: On June 29, the U.S. Environmental Protection Agency (EPA) issued a final rule that would add 20 Toxic Substances Control Act (TSCA) high-priority substances and 30 organohalogen flame retardants to the agency’s Priority Testing List (PTL). The rule would require all manufacturers and importers of these substances to “report certain lists and copies of unpublished health and safety studies to the EPA.” Several of the high-priority substances, such as phthalates, formaldehyde, and Tetrabromobisphenol A (TBBPA), are used in electronics. Let us know if you have any questions. IPC Contact: Kelly Scanlon.

Saudi Arabia Publishes RoHS Regulation: On July 9, Saudi Arabia issued its long-awaited Restriction of Hazardous Substances (RoHS) regulation, and electronics manufacturers will want to take note. The regulation aims to restrict the use of hazardous substances in electronics components and equipment and to determine “conformity assessment procedures” to ensure environmental and human health safety. Suppliers will have until January 5, 2022 to comply with the regulation. Let us know if you have any questions. IPC Contact: Kelly Scanlon.

TAX, TRADE, AND SUPPLY CHAIN

“Biden’s Promising Bid for Strong Supply Chains Risks Falling Short”: “Without a robust electronics manufacturing supply chain that supports systems-level manufacturing, the best chips in the world won’t offer the industry the resiliency, security, and innovation the American people want.” In a recent opinion piece for Roll Call, IPC President and CEO John Mitchell warned that by focusing solely on the chip shortage, wider problems in U.S. electronics manufacturing are being ignored. IPC Contact: Chris Mitchell.

IPC’s Latest Economic Trends Report: The global economic recovery from COVID-19 is accelerating as vaccination rates increase and countries fully open their economies. The global economy is expected to expand by 6.1% in 2021 and a further 4% in 2022, according to IPC Chief Economist Shawn DuBravac. Check out the latest U.S. and European data on economic growth, employment, consumer sentiment, manufacturers’ sentiment (PMI), manufacturing capacity utilization, and end markets for electronics in IPC’s Monthly Economic Outlook Report. Please let us know if you have any questions. IPC Contact: Shawn DuBravac.

EU Issues Guidance Addressing Forced Labor in Supply Chains: The European Commission recently published a guidance to help businesses address the risk of forced labor in their operations and supply chains. The guidance outlined the “practical aspects of due diligence” and came ahead of an upcoming corporate sustainable governance (CSG) proposal, which will introduce mandatory due diligence obligations. IPC is continuing to engage with European Union policymakers to ensure that the legislation, expected in late 2021, is feasible and minimizes the administrative burden for our member companies. Let us know if you have any questions. IPC Contact: Alison James.

UPCOMING EVENTS

What are the Best Practices for Eco-design? Virtual, July 27. Join the International Electronics Manufacturing Initiative (iNEMI) for the final webinar in a three-part series on eco-design for a circular electronics economy. The series is your opportunity to learn from eco-design leaders about the best and most innovative practices used today. Register for the webinar here. IPC Contact: Kelly Scanlon.

KEEP IN TOUCH WITH US

Meet the IPC GR Team: Whether it’s engaging with policymakers in Washington, D.C., in the European Union or in China, the IPC Government Relations (GR) Team proactively seeks opportunities to educate, inform and influence policymakers on policies that spur innovation, growth and competition, while protecting human health and the environment. But our success depends on your support and engagement. Learn more and get involved in IPC advocacy today! IPC Contact: Chris Mitchell.

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