“One of the big lessons that came out of COVID was that oftentimes the federal government’s response to supply chain challenges could be all over the map.”
— John Drake Vice President of Transportation, Infrastructure and Supply Chain Policy U.S. Chamber of Commerce
of course. But they are part of a broader legislative effort to ensure that the supply chain struggles of the recent past and present do not persist into the future. “Frankly, there are portions of the IRA that
are going to make it more complicated for supply chains to operate well,” said John Drake, vice president of transportation, infrastructure and supply chain policy for the U.S. Chamber of Commerce. As an example, Drake points to the $7,500 electric vehicle tax credit created by the IRA. The tax credit is only available for vehicles that contain a battery built in North America that are also made of minerals mined or recycled on the continent. The stipulation is designed to encourage investment in North American battery manufacturing, but as it is now, very few vehicles will qualify for the tax credit. Drake points out that the United States simply doesn’t have the mining or production capacity to meet the growing demand for electric vehicles – demand that is only going to increase after California recently moved to ban the sale of new gasoline- fueled cars by 2035.
While the passage of the CHIPS and Science Act in late July will help the supply chain by providing $52.7 billion for American semiconductor research, development, manufacturing, and workforce development, actually developing the manufacturing capability for components like
semiconductors and EV batteries is going to be diffi cult given that the Biden administration has refused to permit the mines and other processing facilities the business community needs to meet market demands. “Part of it is reducing the amount of time it takes to consider these applications to start a new mine or processing facility,” Drake said. “The other part of it too is the uncertainty. You’re going to have to guess – when you do everything right, when you make sure that you’re protecting the environment, when you’re doing everything responsibly – that this administration is going to sign off on it.”
Ocean Shipping Reform Act In the fall of 2021, more than 150 companies and
trade associations submitted a letter to Congress endorsing the Ocean Shipping Reform Act. After unanimously passing the Senate and later passing the House, President Joe Biden signed the bill into law on June 16. By constraining rising international ocean shipping costs and easing the supply chain backlog, the law aspires to lower the prices of consumer products while making it easier for U.S. farmers and exporters to get their goods to the global market. “Whether it’s food, packaging, or equipment restaurants depend on, supply chain disruptions
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