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Key regulatory changes every US business must prepare for

August 30, 2024 by Administrator

Comprehensive coverage of the major regulatory changes regarding climate change, chemicals management, and the protection of workers for the United States in the first half of 2024

The first half of 2024 saw myriad regulatory changes across a variety of areas and sectors — many of which have significant impacts for US businesses.

In this article, we’ve compiled the most important updates, according to our leading experts, in three major fields: climate change, chemicals management, and the protection of workers.

Climate change

The US started 2024 with a distinct focus on reducing greenhouse gas emissions, with a 2030 goal of 50-52% below the GHG levels of 2005. This is in aid of achieving the overarching target of a net-zero emissions economy by 2050. The EPA’s FY 2025 budget “prioritize[s] tackling climate change with urgency” by providing support to tribal, state, and local governments so they can contribute in the drive to reduce emissions. However, it’s important to note that the budget to do so has dropped by 9% to just below USD 11 billion.

Here’s how the US is tackling climate change.

Greenhouse gas reporting

State-level reporting requirements have been introduced for greenhouse gas (GHG) emissions, primarily focusing on manufacturing sectors. The states of Illinois, Maryland, Colorado, and Washington are all adopting more stringent GHG emissions limits and goals — as well as scope 1, 2, and 3 emissions.

In Illinois, businesses with an annual revenue over USD 1 billion could be required to verify and report annual scopes 1, 2, and 3 emissions, and disclose direct and indirect emissions from their supply chain. In 2023, California adopted a similar measure, making these reports public-access, effectively holding organizations accountable on a public stage.

In Maryland, a new bill means the Department of the Environment must carefully balance setting GHG limits that aren’t too costly or stricter than a company’s 2023 GHG emissions levels.

Federal Air Emission Reporting

In March 2024, the Securities and Exchange Commission (SEC) adopted new climate-related disclosure requirements for information in registration statements and periodic reports. These were swiftly suspended in April 2024 due to upcoming court cases, but an amended or alternative version of these disclosure requirements is anticipated to come into effect in due course.

It’s anticipated that organizations will need to report information related to climate change, as well as provide information in their registration statements.  This is set to include any climate-related risks that could have an impact on business strategy, operations or finance.

Industrial Demonstrations Program

The Federal Industrial Demonstrations Program aims to use its USD 6.3 billion in funding for technologies that will assist in decarbonization projects for energy and carbon-intensive industries. The goal is to encourage and support air emissions initiative in the following industries:

  • Chemicals and refining
  • Cement and concrete
  • Iron and steel
  • Aluminum and metal
  • Food and beverage
  • Glass
  • Process heat
  • Pulp and paper

Building Energy Efficiency

The Building Energy Efficiency scheme aims to promote more sustainable energy consumption and greener infrastructures. It lays out energy efficiency amendments that states can adopt and apply to commercial building construction, renovation, alteration, or repair companies. The states of Vermont and Washington have recently adopted amendments:

  • Vermont updated its Commercial Building Energy Standards for buildings over four stories high
  • Washington updated its 2021 Washington State Energy Code, including the 2021 edition of the International Energy Conservation Code, which establishes new criteria to obtain energy efficiency credits for equipment like water heat pumps and space heating

Chemicals management

In chemicals management, the US has seen continued actions to prohibit and control the use of PFAS (Per and polyfluoroalkyl substances), an ongoing campaign to manage and curtail the use of ozone-depleting substances (ODSs) and hydrofluorocarbons (HFCs), and further discussions regarding plastic use reduction.

Federal and state level prohibitions for PFAS

Per- and polyfluorinated substances (PFAS) continue to be a major focus for chemicals management regulation across the world, and the US is no exception. At both the state and federal level, 2024 has seen a crackdown on regulating these harmful “forever chemicals”.

Federal level PFAS prohibition

Toxic Substances Control Act (TSCA)’s Chemical Data Reporting requires businesses that have used PFAS for commercial purposes to submit information on the type and quantity of PFAS used, and the products it’s in since 1 January 2011. It applies specifically to cases of manufacturing and importing PFAS for commercial purposes during that timeframe. Though only applicable to organizations operating commercially since 2011, this is an enormous administrative task, requiring more than 13 years’ worth of data to be compiled into a single report.

The requirement to report doesn’t apply to companies who have only processed, distributed in commerce, used, and/or disposed of PFAS.

State level PFAS prohibition

Colorado, Virginia, and New Jersey have all adopted stricter discharge restrictions for PFAS.

California published guidance on the limits of PFOA and PFOS discharges in drinking water. The global concern around these substances suggests that while these are only guidance currently, they’re likely to be adopted into mandatory regulations. It’s advisable that organizations future-proof themselves by taking steps to ensure compliance before they’re mandated.

Connecticut proposed a bill to ban PFAS in several products from 2027, including cleaning products, fabric treatments, textile furnishings, and upholstered furniture.

Maryland is also prohibiting PFAS in pesticides.

ODS use requirements focusing on HFCs

Managing the use of ozone-depleting substances (ODSs) — particularly hydrofluorocarbons (HFCs) — continues to be another topic of great interest for the US.

Hawaii and Washington state are implanting restrictions for HFCs in refrigerants and large stationary equipment, aligning with federal Significant New Alternatives Policies (SNAPs), safety standards, and use conditions. Washington also has new labeling requirements for aerosols, mandatory for businesses who manufacture, import, or distribute products containing HFCs.

The Break Free From Plastics Act

This 2023 act to reduce plastic production, increase recycling initiatives, and shift cleanup burdens to plastic producers is still awaiting approval but, if adopted, companies that produce, use, or manufacture certain plastic products would be required to comply with extended producer responsibility targets and cleanup requirements from February 2025.

The bill will also:

  • Require plastic producers to design covered products, such as packaging and single-use plastic products, that minimize impacts on the environment and human health
  • Prohibit businesses from exporting plastic, pairings, or scraps of plastic from the US to developing countries
  • Ban producers from selling, offering, or distributing any packaging that contains a toxic substance or prohibited plastic packaging four years from its implementation

Protection of workers

The US is experiencing a wave of regulatory changes regarding the protection of workers — at both the state and federal levels.

State level exposure limits

Several states are implementing their own requirements for companies to further ensure workplace health and safety.

Asbestos

Regulatory authorities in Ohio and Montana have both proposed the adoption of federal regulations and test methods to mitigate asbestos exposure. The Ohio proposal, for example, would apply to companies that own or operate sources of asbestos emissions or are engaged in asbestos hazard abatement. Similarly, Montana has adopted the updated 2017 NIOSH Manual of Analytical Methods to align with federal regulations on asbestos fibers.

Flu, RSV, and Covid

Elsewhere in the US, states are updating their respiratory illness requirements for the flu, RSV, and coronavirus. 

Washington has updated state guidance on caring for someone with the flu, coronavirus, RSV, or other respiratory viruses, adopting recent updates from the US Centers for Disease Control (CDC).

Heat-illness protection

Heat related illnesses or injuries are common issues across the US, as monitored and campaigned by OSHA. It’s a topic that’s evoked proposed regulations across several states.

California, Arizona, Wisconsin, and New York have all proposed heat regulations for indoor exposure, beyond the restrictions for outdoor temperatures. For example, companies in California with employees exposed to indoor heat would be required to create a heat illness prevention plan. 

All four states also emphasize the importance of access to water, air conditioning, and training for employees to identify heat stress. Each state has a different limit on what they consider to be a “high heat environment”:

  • Arizona: 90°F / 32.2°C
  • California: 82°F / 27.8°C
  • New York and Wisconsin: 80°F / 26.7°C

Pregnant, disabled, and young workers’ protection

The federal government has placed large emphasis on protecting different classifications of workers, namely pregnant employees.

Pregnant Workers Fairness Act (PWFA)

The Pregnant Workers Fairness Act went into effect on June 18, 2024.

It mandates that companies with 15 or more employees must provide reasonable accommodations to workers who experience limitations related to, affected by, or arising from pregnancy, childbirth, or related medical conditions. 

The Act clarifies the scope of these accommodations, providing employers with guidance to meet the regulation’s requirements, but also notes where the requirements don’t apply if the requested accommodations would result in “undue hardship.”

Similar proposals are under consideration in New York and New Jersey, focusing on permitting private rooms and sinks for lactating employees.

Amended working hours for young people

States including Alabama, Florida, Iowa, and Nebraska are making changes to improve child labor laws. Florida and Iowa are in the process of amending the number of hours 16-year-olds can work, while Iowa now requires companies to provide PPE for 14- and 15-year-olds using cleaning products, as well as keep records in accordance with requirements.

Workers with disabilities

A proposal in New Jersey, if passed, will require companies to post signage for toilets which are solely for use by persons with disabilities.

In New York, organizations that own or operate high-rise facilities may soon be required to create emergency plans for people with disabilities. 

Stay ahead of EHS regulations with expert insights

Keeping on top of the ever-changing regulatory requirements means having a comprehensive view of the legislative actions that are set to impact your organization.

With RegScan’s EHS Alerts and EHS Research, you can find out about the latest EHS compliance requirements in the sectors and topics that impact your business operations well in advance — allowing you time to adapt and prepare.

Find out more by watching our latest demo.

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