Transportation, trade, tariffs, and taxes were just some of the hot topics discussed during our 2022 Legislative and Regulatory Outlook webinar.
To cover these challenging issues, we drew on the entire NACD policy team to provide a comprehensive breakdown of incoming rules and regulations and exactly how the association was working on our members’ behalf to address them.
NACD President and CEO Eric Byer led the discussion and was joined by Vice President of Regulatory Affairs Jennifer Gibson, Legislative Affairs Senior Directors Doug Leigh and Brian Callahan, Senior Manager of Regulatory Affairs Analisa Toma, and Regulatory Affairs Manager Nick Breslin.
The session kicked off with shipping – still the bane of many distributors because of the rapidly escalating costs and lengthy delays.
NACD surveys carried out in 2021 have highlighted severe container shortages and hefty price premiums. In some cases, containers are not being loaded and ocean carriers are refusing to renew contracts, holding companies to ransom by increasing pricing. It’s a complex situation and one that is likely to remain challenging for some time to come. The supply chain is as strained as it's ever been, and significant measures must be taken to see any meaningful change.
NACD has been working with those on both sides of the aisle on Capitol Hill, many of whom have been very supportive of our plight to implement reforms on the ocean carriers. In fact, we’ve held over 150 meetings with members of Congress and administration officials about the shipping crisis.
In July 2021, we created the NACD Shipping Task Force, and it continues to meet every month. There are currently about 20 members –don’t hesitate to contact us if you’d like to participate.
Fortunately, there has been some headway with the Ocean Shipping Reform Act – the first update to federal regulations for the global ocean shipping industry since 1998. This will require ocean carriers to adhere to minimum service standards and follow best practices. It has had overwhelming bipartisan support but discussions are ongoing, and we’re hoping to see it passed this Congress.
Regarding trade, NACD is also pursuing the retroactive renewal of the Generalized System of Preferences (GSP) and Miscellaneous Tariff Bill (MTB), both of which expired in 2020. We’re hopeful this is something that will bear fruit this year. The webinar also touched on the 301 Tariffs on products imported from China and the growing pressure on the administration to take action and lift them.
Among the other issues raised was the recently-announced $1.2 trillion infrastructure bill passed in late 2021 that will see a $110 billion investment in roads and bridges and another $17 billion set aside for ports. While the aforementioned infrastructure investments will no doubt be of great benefit to the industry, not so positive within the bill is the reinstatement of the Superfund Chemical Tax. This tax affects 42 chemicals, including propylene and ammonia, as well as the new Hazardous Substance Tax, which will mean far higher rates.
On the plus side, a pilot program has been announced for 18 to 21-year-old commercial vehicle drivers allowing them to cross state lines. This is a great first step towards the full DRIVE-Safe Act being implemented.
The webinar also focused on several concerning provisions in the Build Back Batter Act – a $1.75 trillion spending package announcement by Congress that includes both corporate and individual tax hikes, funding towards the environmental justice agenda, as well as higher Occupational Safety and Health Administration (OSHA) fees. We’ll be sure to keep an eye on this moving forward.
On the regulatory front, the panel considered the latest changes to OSHA’s Hazardous Communication Standard – among them the definition of bulk shipment and adjustments to safety data sheets, which will require the inclusion of possible downstream uses and reactions.
We also examined the Emergency Temporary Standard and the blocking of OSHA’s mandate that businesses with more than 100 employees must have a testing or vaccination policy in place. With the possibility that this could be resurrected, this is something else we’ll be closely monitoring as well.
With this and much more discussed during the webinar, the year ahead will likely be just as challenging as the last few. Such significant legislative and regulatory change will no doubt transform the way distributors operate.
No matter the outcomes, the NACD team will be with you every step of the way and continue to get your voice heard by decision-makers in Washington D.C.
For those of you who missed the recent webinar, NACD 2022 Legislative and Regulatory Outlook, you can access the recording here.
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