Welcome to Industrials Regulatory News and Trends. In this regular bulletin, DLA Piper lawyers provide concise updates on key developments in the industrials sector to help you navigate the ever-changing business, legal, and regulatory landscape.
Trump threatens 50 percent tariff on EU goods, then defers it. On May 23, President Donald Trump announced that he was recommending a new “straight 50% tariff” on all goods from the European Union beginning June 1. Treasury Secretary Scott Bessent said he hoped this decision would “light a fire under the EU,” which he faulted for showing less commitment to talks than did various Asian countries and the United Kingdom, which has already sealed a trade deal with the United States. However, on May 25, President Trump said he would delay the implementation of this tariff from June 1 until July 9 to allow time for negotiations with the EU. That decision came after a call with Ursula von der Leyen, president of the European Commission, who had told Trump that she “wants to get down to serious negotiations,” according to the president. Trump said that von der Leyen vowed to “rapidly get together and see if we can work something out.”
Senate votes to overturn a Clean Air Act rule for major industrial facilities. Deploying the Congressional Review Act, on May 1, the US Senate moved to overturn a 2024 rule that requires major industrial facilities to maintain strict pollution controls. The rule, Reclassification of Major Sources as Area Sources Under Section 112 of the Clean Air Act, requires about 1,800 factories around the country that emit certain chemicals – alkylated lead compounds; polycyclic organic matter; mercury; hexachlorobenzene; polychlorinated biphenyls; 2,3,7,8-tetrachlorodibenzofurans; and 2,3,7,8-tetrachlorodibenzo-p-dioxin – to tighten their air pollution controls. Should the House also move to overturn the rule, this would be the first time in the 58-year history of the Clean Air Act that Congress has succeeded in weakening it.
Congress moves to end emissions limits on tire manufacturing. Again deploying the Congressional Review Act, Congress has passed a resolution reversing a 2024 rule that, for the first time, imposed emissions limits on tire manufacturing in the US. The resolution to overturn the EPA’s Rubber Tire Manufacturing National Emissions Standards for Hazardous Air Pollutants, HJ Res 61, was passed by the House in March this year and by the Senate on May 6. At this writing, HR Res 61 is on the President’s desk awaiting signature.
Administration announces plans to audit manufacturing grants. On May 15, the Department of Energy announced that it plans to audit billions in grants awarded during 2024 and early 2025 in support of domestic manufacturing supply chain and power grid projects. Under fresh scrutiny will be 179 grants totaling around $15 billion awarded to support projects in such areas as domestic battery manufacturing, power grid modernization, and domestic buildouts of new energy technologies. Of those grants, 102 were awarded by DOE’s Grid Deployment Office and 77 were awarded via the Office of Manufacturing and Energy Supply Chains. Energy Secretary Chris Wright stated that the DOE “has been hard at work reviewing the billions of dollars that were rushed out the door, particularly in the final days of the Biden administration, and what we have found is concerning.” The audit reportedly will prioritize large-scale commercial projects. Under the audit, many grant recipients may be required to supply additional documentation to DOE on demand; those that fail to comply within 30 days of the request may find their grants cancelled.
Energy Star, appliance regulations on the chopping block. On May 6, the Washington Post reported that as part of its massive reorganization, the EPA will eliminate the popular Energy Star program, a public-private partnership that certifies energy-efficient home appliances. Since its creation in 1992, Energy Star has saved businesses and consumers $500 billion while keeping 4 billion metric tons of GHGs out of the atmosphere. The EPA’s sweeping reorganization plan would reportedly eliminate all Energy Star staff and offices. Furthermore, the EPA intends to roll back environmental standards for numerous gas and electric appliances, aiming to change 47 regulations that affect everything from faucets and microwaves to dishwashers and stoves. The changes, the Department of Energy stated, would “cut more than 125,000 words from the Code of Federal Regulations.”
EPA signals intention to modify Biden Administration’s National Primary Drinking Water Regulation for PFAS. In an announcement on May 14, the agency indicated that it plans to propose a rulemaking this fall that will, among other things, retain certain existing maximum contaminant levels; rescind and reconsider others; and create a “federal exemption framework.” Find out more.
Newly introduced federal bill would modernize the 45X Advanced Manufacturing Production Credit. On May 5, a bipartisan group of federal lawmakers introduced the Critical Minerals and Manufacturing Support Act, HB 3200, a measure aiming to update and reinforce the 45X Advanced Manufacturing Production Credit. Created under the Inflation Reduction Act of 2022, “The 45X credit subsidizes the production of five types of goods: solar energy components, wind energy components, battery components, inverters, and critical minerals,” states its Congressional description. HB 3200 would extend and expand 45X to increase the incentives for domestic production of critical minerals, battery components, and renewable energy technologies. Its sponsors are Representatives Raul Ruiz, MD (D-CA) and Gabe Evans (R-CO). This bill is in its earliest stages.
Metallurgical coal designated a critical material. On May 23, Energy Secretary Chris Wright announced that he is designating coal used in the production of steel as a critical material under the Energy Act of 2020. According to the press release announcing the designation, a Department of Energy analysis concluded that “metallurgical coal, a key input for steel production, meets the statutory definition of a critical material.” Wright stated, “By designating metallurgical coal as a critical material, we are ensuring that American steel, generated by American coal, remains the backbone of our manufacturing sector.” The designation, Wright noted, is in keeping with President Trump’s April 8 Executive Order Reinvigorating America’s Beautiful Clean Coal Industry.
DOT announces $1.5B in FTA grants that aim to expand US bus manufacturing. On May 19, Department of Transportation (DOT) Secretary Sean P. Duffy announced a Notice of Funding Opportunity (NOFO) regarding $1.5 billion in competitive grant funding from the Federal Transit Administration for projects that focus on expanding US bus manufacturing. The DOT press release states that the NOFO “strips DEI requirements related to climate change, sustainability, environmental justice, and diversity, equity and inclusion (DEI) . . . so that American manufacturers can get back to basics and focus on building big, beautiful transit systems for American families, front line responders, students, and more.” The funds are offered through two Federal Transit Administration programs – the Buses and Bus Facilities Program and the Low or No Emission Bus Program. Transit agencies submitting grant requests will also be required to show how their projects will make transportation more accessible for families with young children. The deadline to apply for this grant funding round is July 14, 2025.
Pentagon moves to update software procurement. On May 5, the US Department of Defense announced that it is planning to overhaul its software procurement systems, in hopes of enhancing security and supply chain visibility. In a memo published online, the department’s CIO, Katherine Arrington, introduced the Software Fast-Track (SWFT) initiative to reform software acquisition, authorization, and testing. Arrington confirmed that the DOD will submit the SWFT Framework this summer. “Lengthy, outdated cybersecurity authorization procedures frustrate agile, continuous delivery,” she stated. “Additionally, widespread use of open-source software, with contributions from developers worldwide, presents a significant and ongoing challenge.”
Colorado legislature approves battery EPR law. Aiming to set up a statewide Battery Stewardship Program, on May 15 the Colorado legislature passed SB 163, which, if signed by Governor Jared Polis, will establish an extended producer responsibility (EPR) framework for the responsible collection, transportation, processing, and recycling of batteries throughout the state. Under SB 163, battery producers would be required to join a battery stewardship organization that by 2027 will finance and operate a statewide battery collection system. The law would require these programs to submit detailed plans to the Colorado Department of Public Health and Environment outlining how they will ensure accessible drop-off options across the state – particularly in communities that are deemed to be underserved. Additionally, by 2029, retailers will no longer be allowed to sell batteries or battery-powered products from producers that are not part of an approved stewardship program. In 2030, disposal of covered batteries in landfills will be officially banned. California, Illinois, Vermont, Washington, DC, and Washington state have already enacted statewide battery stewardship legislation. The measure is now awaiting the governor’s signature.
Maryland and Washington enact EPR laws for packaging. Maryland and Washington state have joined the growing cohort of US jurisdictions that require producers of packaging and paper products to finance – and ultimately improve – the systems for disposing of these “covered materials” in their respective states. Both statutes apply economy-wide, reach far beyond plastics, and rest on the same core concept: if a company introduces single-use packaging or paper products into the market, that company must either join or form a producer responsibility organization (PRO) to reimburse municipal recycling costs and to meet steadily increasing performance targets to mitigate the impacts of related waste disposal efforts. The two new laws track many of the terms found in earlier EPR statutes in California, Colorado, Maine, Minnesota, and Oregon, yet each contains nuances that merit careful attention. See our alerts on the Maryland and Washington laws and the California draft regulations.
Commissioner Uyeda: Conflict minerals rule is “costly and ineffective.” In related news, in remarks on May 19 at the annual SEC Speaks conference, SEC Commissioner Mark Uyeda criticized the conflict minerals rule, calling it “costly and ineffective” and stating that it “has created significant regulatory compliance costs for U.S. public companies without clear corresponding benefits.” The rule, originally issued in 2012, requires various disclosures concerning “conflict minerals” – tantalum, tin, tungsten, and gold originating in the DRC or an adjoining country. Uyeda stated that the rules “have the unfortunate effect of ceding U.S. influence in that portion of the world to geo-strategic powers that may have less respect for human rights and dignity. Importantly, this SEC rule hurts American companies from competing in a global marketplace.” He continued, “It is far past time to re-evaluate such obligations with a view to determining whether such disclosure requirements should remain in effect… the SEC should cease using financial disclosure regulations to bring about human rights changes in Africa, to the extent permitted by law.”
Peace deal negotiations between DRC and Rwanda. On May 21, President Trump announced that his Administration is close to successfully brokering a peace deal between the Democratic Republic of Congo (DRC) and Rwanda. The President said that his Senior Advisor for Africa, Massad Boulos, had been instrumental to the negotiations. In March, we reported that DRC President Felix Tshisekedi had written to the President offering the US access to DRC’s critical minerals in exchange for military help against Rwandan M23 rebels. In April, Secretary of State Marco Rubio announced that the DRC and Rwanda had signed a pledge in Washington, DC to work toward a peace agreement. A peace deal brokered by the US could potentially give the US far greater access to DRC’s vast mineral wealth. The DRC is the world’s leading exporter of cobalt and a major exporter of coltan, copper, gold, tin, tungsten, and tantalum. Its untapped mineral wealth is estimated to be worth trillions of dollars.
Greenland approves 30-year anorthosite mining permit for a Danish-French consortium. The Danish-French consortium Greenland Anorthosite Mining (GAM) has received a 30-year permit from Greenland to mine anorthosite from a site in Greenland’s west. Anorthosite is an igneous rock high in aluminum content which can be extracted and processed with far less environmental impact than bauxite. GAM states that it intends to ship crushed anorthosite mined at Piiaaffik Itersarmiut Allit to Europe for use by the fiberglass industry. GAM has been working with the Greenlandic government for 20 years to develop the site. Greenland is an autonomous territory in the Kingdom of Denmark.
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