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.
EV charging companies and automakers urge restart of EV infrastructure program. On February 7, a group representing automobile manufacturers and electric vehicle charging companies urged the US Department of Transportation to quickly restart a key Biden-era $5 billion government electric-vehicle infrastructure program. That program had been halted by the Trump Administration on February 6, via a letter from the Department of Transportation, “Suspending Approval of State Electric Vehicle Infrastructure Deployment Plans.” That letter notified state department of transportation directors that their previously approved plans to deploy charging infrastructure under the $5 billion National Electric Vehicle Infrastructure (NEVI) program were no longer valid, effective immediately. The Electric Drive Transportation Association said it has urged the Administration “to quickly resume the critical work of the program and minimize uncertainty for states and their businesses, who have invested in infrastructure to serve local and national goals for advanced transportation.”
Across-the-board 25 percent tariffs on steel and aluminum. President Donald Trump has signed proclamations imposing 25 percent tariffs on imports of steel and aluminum into the US from all countries without exception, rolling back exemptions for Canada, Mexico, the EU, UK, Japan, South Korea, and other allied nations. The proclamations increase the tariff rate on aluminum to 25 percent from the previous 10 percent rate and reinstate the 25 percent tariffs on steel that had previously been authorized but were subsequently relaxed for many countries by both the Trump and Biden Administrations. The tariffs take effect on March 12, 2025. See our alert about these tariffs here. In addition, President Trump’s February 13 memorandum directs a rapid review process to determine country-specific “reciprocal tariffs” for US trading partners based on each partner’s perceived unfair trade and economic practices. See our summary and client alert on that action here.
Commerce secretary nominee says he may use “trade tools” to respond to the “unreasonable burdens” imposed by the CSDDD. In remarks sent to the Senate Committee on Commerce, Science, and Transportation during his January confirmation hearings, Commerce secretary nominee Howard Lutnick stated that the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) “will impose significant costs on thousands of U.S. companies doing business in Europe.” Lutnick particularly focused on US exports of natural gas to the EU, stating, “U.S. exports of natural gas are keeping the heat on in Europe this winter because the regulatory structure there has caused companies to flee. Yet the EU is attempting to harm the competitive advantages of U.S. companies by forcing them to comply.” Lutnick concluded by asserting, that under his leadership of Commerce, “I will consider using all available trade tools at the Department’s disposal, as appropriate, to respond to any actions by foreign governments, including the EU, that harm the American economy and impose unreasonable burdens on our companies.” Also of note: when asked during his confirmation hearings if he would support recommendations to break up the National Oceanic and Atmospheric Administration, Lutnick stated, “No.” He also stated that he would oppose attempts to move certain NOAA functions to other departments. On February 5, the Senate Commerce Committee voted 16-12 to advance Lutnick’s nomination. At this writing, he has not yet been confirmed.
Army command awards contract for kits to transform conventional artillery into smart munitions. On February 12, the Army Contracting Command in Newark announced it has placed a $19.8 million order with the Northrop Grumman Armament Systems and Ammunition segment in Plymouth, Minnesota for M1156 Precision Guidance Kits for the US Army. These kits, which the company describes as low-cost and reliable, will be used to transform conventional 155-millimeter artillery shells into all-weather GPS-guided smart munitions. The work on this contract is expected to be completed by May 2028.
Nevada considers prohibiting sale of certain plastics. The Nevada legislature is considering SB Bill 173, which would prohibit the sale, offer for sale, or distribution of products in Nevada containing recycled black plastic; plastic bottles; and products with perfluoroalkyl and polyfluoroalkyl substances (PFAS) intentionally added. The bill would effectively eliminate some single-use plastic products, such as food storage containers, from Nevada commerce. It has been in the news in the Southwest in recent days due to the lobbying efforts of a medical student who is seeking to have the ban extended to restaurants’ use of plastic cutting boards.
How IRA and BIL grantees may prepare for termination of the Green New Deal. The federal government has been actively reviewing, suspending, and terminating certain contracts and grants that are not aligned with the Trump Administration’s policy goals. Recipients of energy and infrastructure grants under the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act, also referred to as the Bipartisan Infrastructure Law (BIL), may soon see similar suspension and termination actions. Our alert discusses the EO directing federal agencies to take such action, as well as the steps that recipients of IRA and BIL grants may consider taking in the interim. Our alert tells you more.
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