The Infrastructure Act includes provisions important to the chemical and agricultural sectors | Bergerson and Campbell, PC-JDSupra

2021-12-14 11:01:06 By : Ms. Amy Fang

On November 8, 2021, the Infrastructure Investment and Employment Law (HR 3684) was submitted to President Joseph Biden (D) for signature. The House of Representatives passed the bill by a vote of 228 to 206 on November 5, 2021, and the Senate passed the bill by a vote of 69 to 30 on August 10, 2021. The bill contains many important provisions. We have highlighted below some of the provisions of the 1,039-page bill that we think our customers and friends may be interested in.

According to the bill, the Minister of Transportation will develop a plan to provide grants to eligible entities to carry out activities to benefit pollinators on the roadside and on the highway. This includes invasive plant elimination and integrated vegetation management plans, which include “targeted and wise use of herbicides” to address weed problems and “any other pollinator-friendly practices that the Minister deems appropriate”. The bill will provide the U.S. Department of the Interior (DOI) and the U.S. Department of Agriculture (USDA) with US$200 million for the detection, prevention, and eradication of invasive species, including research and provision of resources to facilitate the detection of invasive species entry at various points and grants Subsidies for the eradication of invasive species on non-federal lands and federal lands. The bill requires the development and provision of best practices, as well as the prioritization of pollinator-friendly practices on roadside and highway access rights. The bill also regulates forest management activities aimed at preventing and minimizing damage caused by wildfires, including the use of pesticides, biological pesticides or herbicides.

The bill includes US$100 million for pollution prevention activities and grants, starting from fiscal year 2022 (until expenditure) to fiscal year 2026, with US$20 million per fiscal year (FY). The U.S. Environmental Protection Agency (EPA) fact sheet dated November 6, 2021 stated that this means that "[m]ore companies will be able to obtain assistance to reduce toxic pollutants, reduce water consumption, increase efficiency and reduce costs, which will Improve their operations while better protecting the communities in which they operate."

Climate and chemical industry

The bill includes many requirements and measures for "industrial carbon dioxide facilities". The bill’s definition of industrial carbon dioxide facilities includes facilities that emit carbon dioxide, including carbon dioxide from any unorganized source of emissions. These carbon dioxide are caused by chemicals, fertilizers, glass, steel, petroleum residues, forest products, agriculture, including feedlots and Dairy products business, as well as transportation-grade liquid fuels.

Save our oceans-plastic waste and recycling

The bill will provide $275 million in grants under the "Save Our Oceans 2.0 Act" from fiscal year 2022 (until expenditure) to fiscal year 2026, with $55 million in each fiscal year. The bill includes US$75 million in grants focused on improving material recycling, recycling, management, and reduction from fiscal year 2022 to fiscal year 2026, with a total of US$15 million per fiscal year (until expenditure). The bill also includes $750 million for advanced energy manufacturing and recycling programs.

Intelligent manufacturing and sustainable manufacturing

The bill includes plans, initiatives, grants and other activities to support manufacturers in their efforts to evaluate plant facilities, services, and manufacturing operations, and to determine manufacturers’ plant areas to improve energy efficiency, reduce waste, prevent pollution, and increase productivity. The bill will provide funding for advanced battery materials research to understand and support advanced battery manufacturing efforts, including raw and processed forms of minerals, metals, chemicals, or other materials used in advanced battery components. The bill defines "smart manufacturing" as advanced technologies in information, automation, monitoring, computing, sensing, modeling, artificial intelligence, analysis, and networking:

Under sustainable manufacturing, the Department of Energy (DOE) will conduct on-site technical assessments at the request of manufacturers to identify opportunities in the following areas:

According to the bill, the Department of Energy will launch a joint industry-government cooperation program to research, develop and demonstrate new sustainable manufacturing and industrial technologies and processes to maximize the energy efficiency of factories, reduce pollution and protect natural resources . The bill also calls for the establishment of industrial research and evaluation centers in colleges and universities to conduct in-depth evaluations of small and medium-sized manufacturing plants to evaluate the facilities, services and manufacturing operations of the plants to determine opportunities for optimizing energy efficiency and environmental performance, including the implementation of intelligence Manufacturing; energy management systems; sustainable manufacturing; information technology advancements for supply chain analysis, logistics, system monitoring, industrial and manufacturing processes, and other purposes; and waste management systems. These industrial research and evaluation centers will promote the application of emerging concepts and technologies, as well as the use of alternative energy sources to provide energy-intensive industries with heat, electricity, and research and development of new raw materials.

Perfluorinated and polyfluoroalkyl substances (PFAS)

Through funding for various types of clean water and drinking water grants and revolving fund projects, EPA will work to support states and local communities to provide safe drinking water. The EPA stated in its fact sheet that "[p] People will be protected from PFAS or'permanent chemical' pollution." Funding includes the following:

The bill will add 3.5 billion U.S. dollars to the Super Fund Trust Fund for all expenses related to the Super Fund's remedial activities. The bill requires EPA to consider the unique needs of tribal communities with contaminated sites, where potential responsible parties cannot pay or determine (but must not change the priority of site cleanup). In addition, as a source of income (over 14 billion U.S. dollars), the bill will impose super fund taxes on the following chemicals, starting in July 2022 and due at the end of 2031 (per ton):

Butene 9.74

Butadiene 9.74

Ethylene 9.74

Methane 6.88

Naphthalene 9.74

Propylene 9.74

Toluene 9.74

Xylene 9.74

Ammonia 5.28

Antimony 8.90

Antimony trioxide 7.50

Arsenic 8.90

Arsenic trioxide 6.82

Barium sulfide 4.60

Bromine 8.90

Cadmium 8.90

Chlorine 5.40

Chrome 8.90

Chromite 3.04

Potassium dichromate 3.38

Sodium dichromate 3.74

Cobalt 8.90

Copper sulfate 3.74

Copper oxide 7.18

Cuprous oxide 7.94

Hydrochloric acid 0.58

Hydrogen fluoride 8.46

Lead oxide 8.28

Mercury 8.90

Nickel 8.90

Phosphorus 8.90

Stannous chloride 5.70

Tin chloride 4.24

Zinc chloride 4.44

Zinc sulfate 3.80

Potassium hydroxide 0.44

Sodium hydroxide 0.56

Sulfuric acid 0.52

Nitric acid 0.48

Climate assistance and energy efficiency and protection

The bill provides US$3.5 billion for weather protection assistance programs for commercial buildings and multi-family homes, and provides additional funding for energy efficiency, renewable energy, zero-emission transportation, and related infrastructure, of which US$550 million is for energy efficiency and protection Lump-sum grant, $1 billion for the Federal Emergency Management Agency (FEMA) to build resilient infrastructure and communities, and $500 million for energy efficiency in public schools. These programs may include loan programs and performance contracting programs to take advantage of additional public and private sector funding, as well as programs that allow rebates, grants, or other incentives for the purchase and installation of energy efficiency, renewable energy, and zero-emission transportation (and related Infrastructure) measures.

Manufacturing personal protective equipment (PPE) in the U.S.

The bill will establish a long-term investment strategy for the U.S. for domestic production of PPE products, which is critical to the U.S. nation’s response to public health crises including the COVID-19 pandemic. These PPE items include surgical masks, respirator masks and electric air purifying respirators and required filters, masks and protective glasses, gloves, disposable and reusable surgical and isolation gowns, head and foot masks, and protective Individuals are protected from the spread of infections from other equipment or clothing diseases. According to the bill, the Office of Management and Budget (OMB) should submit a report on PPE procurement to Congress, including the United States’ long-term domestic procurement strategy for PPE produced in the United States, including strategies to incentivize investment and maintenance. All PPE supply chains in the United States are sufficient To meet the needs of the United States during a public health emergency, the long-term demand for all PPE items purchased by the United States is estimated, and the proposed procurement strategy that requires Congress to take action in order to implement the requirements of the United States government.

There is no doubt that the passage and promulgation of the "Infrastructure Investment and Employment Act" is a milestone bipartisan achievement in the modernization of US infrastructure. The bill cost 1.2 trillion U.S. dollars and is 1,039 pages long. It includes hundreds of new plans and initiatives, with major investments in almost all aspects of the U.S. economy. It takes time to fully understand the impact on the chemical and agricultural sectors. In fact, many aspects of the bill will take years to implement, and it will take longer to see meaningful results. Investments in sustainable manufacturing, pollution prevention, climate change resilience, environmental remediation, and even personal protective equipment policies will have a significant impact on chemistry, agriculture, and manufacturing. Bergeson & Campbell, PC will continue to provide in-depth analysis and identify opportunities to move forward.

Disclaimer: Due to the general nature of this update, the information provided here may not be applicable in all situations, and action should not be taken without specific legal advice based on specific circumstances.

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