Industrials Regulatory News and Trends - December 6, 2024

Federal appeals court decertifies class action against Nissan. In late November, the United States Court of Appeals for the Sixth Circuit decertified 10 class actions that had accused Nissan of selling cars and SUVs with defective automatic emergency braking systems. The court found it improper under federal rules of procedure to let drivers of 14 Nissan models sue collectively under the laws of 10 different states simply by claiming that the braking systems did not work. “We cannot determine whether common evidence establishes Nissan’s knowledge as to the defects if the software updates remedied those defects for some cars. Nor can we determine whether, for each state class, a common question of liability exists for all claims,” the three-judge appellate panel wrote. “The plaintiffs’ argument reduces to the bare assertion that common evidence establishes each cause of action. But without a common defect, that cannot be the case.” The class actions involved owners in California, Connecticut, Florida, Illinois, Massachusetts, Missouri, New York, Ohio, Pennsylvania, and Texas, and a variety of Nissan Rogues, Rogue Sports, Altimas, and Kicks. The litigation now returns to a lower court in Tennessee.

$6.6B Biden Administration award will support building of three new chips factories in Arizona. In late November, the Biden Administration finalized a $6.6 billion award to Taiwan Semiconductor Manufacturing Company (TSMC) to build three new semiconductor chip fabrication plants in the Phoenix area. TSMC is the world's largest contract chipmaker. President Joe Biden said that the factories are expected to strengthen the US position in the global semiconductor supply chain while creating thousands of jobs. "For the first time in decades, an American manufacturing plant will be producing the leading-edge chips used in our most advanced technologies," he said. The award to TSMC is financed via the 2022 CHIPS and Science Act, one of Biden's signature legislative achievements.

Trade groups urge passage of recycling bills. More than 60 trade associations, corporations, and nongovernmental organizations sent a letter November 19 to congressional leaders calling for the passage of two recycling bills before the end of the year. The Recycling Infrastructure Accessibility Act (RIAA) and the Recycling Composting Accountability Act (RCAA) both have garnered bipartisan support, having progressed through the US Senate unanimously in both the 117th and 118th Congresses. The RIAA, introduced by Senator Shelley Moore Capito (R-WV), would require the EPA to establish a pilot grant program to improve recycling accessibility in communities. The RCAA, introduced by Senator Thomas Carper (D-DE) in 2023, would establish data collection and reporting requirements related to composting and recycling programs.

CSA Group announces new National Standard of Canada to define and calculate plastics recycling. On November 26, the CSA Group published CSA R117:24: Plastics Recycling: Definitions, measuring, and reporting. The CSA Group, a testing, inspection, and certification organization, published the standard, which is intended to improve clarity and efficiency in the recycling process across the entire nation. The standard was developed in collaboration with the Standards Council of Canada, manufacturers, recyclers, and other industry stakeholders. It is expected to help policymakers and business leaders understand clearly and consistently when and how much plastic has been fully recycled. It also aims to help standardize the reporting and calculation of recycling rates, targeting all non-biodegradable plastics.

UN talks on plastic-pollution treaty stall. On December 1, at the end of a week of intense negotiations, negotiations in Busan, South Korea to forge a global agreement to reduce plastic pollution came to an end with no agreement. The marathon talks stalled over the inability of negotiators from more than 170 countries to agree on the treaty’s terms. This was the fifth conference of the UN’s Intergovernmental Negotiating Committee on Plastic Pollution, and many parties had hoped it would be the last, producing an international legally binding instrument on plastic pollution, including in the marine environment. But delegates were unable to agree to terms addressing such areas as plastic production, cleanup, and recycling. Notably, a proposal will be included in the treaty only if every nation agrees to it; this became another point of contention as some countries sought to change the process so decisions could be made with a vote if consensus couldn't be reached. Speaking at the close of the sessions, Inger Andersen, Executive Director of the United Nations Environment Programme, and other officials expressed their confidence that a treaty will eventually be agreed on. “Negotiators have reached a greater degree of convergence on the structure and elements of the treaty text, as well as a better understanding of country positions and shared challenges,” she stated. “But it is clear there is persisting divergence in critical areas and more time is needed for these areas to be addressed.” Negotiations will resume in 2025 at a time and place still to be determined. Find out more in our alert.

Response to potential effect of looming tariffs on auto industry. On November 26, automobile stocks declined as the industry and marketplace reacted to President-elect Donald Trump’s stated intent to place a 25 percent tariff on goods imported to the United States from Canada and Mexico. Such tariffs would have a major impact on car manufacturing: 26 percent of all imports from Mexico to the US and 12 percent of all imports from Canada involve the automobile industry. Mexican Finance Minister Marcelo Ebrard stated that the tariffs would raise the price of pickup trucks for American consumers by about $3,000 and that, given how dependent Detroit automakers are on Mexican labor and manufacturing capacity, such tariffs would result in the loss of at least 400,000 American jobs.