WASHINGTON (February 8, 2024) – American Chemistry Council (ACC) President and CEO Chris Jahn today sent a letter to President Biden requesting he create an Interagency Policy Committee (IPC). Led by the Director of the White House National Economic Council, the intent of the IPC is to coordinate an economic impact analysis of regulations on the chemical industry and the broader economy. The IPC would require all cabinet departments to evaluate the regulatory proposals by other federal agencies specifically to identify their impact on the ability and speed of administering the programs of those federal departments, especially the new responsibilities associated with implementing the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, and the CHIPS and Science Act.
In the letter, Mr. Jahn highlights the fact that the domestic chemical manufacturing sector provides raw materials for nearly every economic sector in the country. Chemistry also employs over half a million Americans and supports twenty-five percent of the national gross domestic product. And that current regulatory overload is putting the sector at risk. The total number of regulations that apply to the chemical manufacturing industry has doubled in the past 20 years.
President Biden needs to pay attention to the regulatory burden being placed on the chemical industry, and the impact it has for us to manufacture in America and compete with international rivals, such as China. The current regulatory environment has led companies not to expand their U.S. operations and could lead to a decrease in hiring, capital spending and investing in research and development. In short, we risk offshoring of American innovation—good American jobs—if this current regulatory environment is allowed to continue.
The letter to President Biden points to the results of a survey ACC recently conducted of its members concerning the regulatory environment:
- More than three quarters of respondents said that their regulatory burden has risen over the past year, and they expect it to increase even more.
- Sixty-seven percent of respondents reported that the current regulatory environment threatens their investment in the clean energy sector.
- Fifty-seven percent of respondents reported that the current regulatory environment threatens their investments in domestic semiconductor manufacturing.
- Nearly half of respondents said the current regulatory environment threatens their investment in the healthcare sector.
In the letter, Mr. Jahn reiterates the fact that U.S. chemical producers provide the foundation needed to achieve many of the priorities of the Biden Administration, including the manufacturing of computer chips and electric vehicles (EVs), producing clean energy, rebuilding the country’s infrastructure, and supporting healthcare and biotechnology. He requests that ACC and its member companies be given the opportunity to work with the President and the White House senior leadership to develop information for an economic impact analysis which will be a resource to the administration.
You can read the full letter here.