Government Regulation
July 9, 2024
Alkyl Phosphate Ester CVD Postponed
Certain Alkyl Phosphate Esters From the People’s Republic of China: Postponement of Preliminary Determination in the Countervailing Duty Investigation
A Notice by the International Trade Administration on 07/05/2024
AGENCY:
Enforcement and Compliance, International Trade Administration, Department of Commerce.
DATES:
Applicable July 5, 2024.
FOR FURTHER INFORMATION CONTACT:
Benjamin Nathan or Gregory Taushani, Office II, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, telephone: (202) 482-3834 or (202) 482-1012, respectively.
SUPPLEMENTARY INFORMATION:
Background
On May 13, 2024, the U.S. Department of Commerce (Commerce) initiated a countervailing duty (CVD) investigation of imports of certain alkyl phosphate esters from the People’s Republic of China. Currently, the preliminary determination is due no later than July 17, 2024.
Postponement of Preliminary Determination
Section 703(b)(1) of the Tariff Act of 1930, as amended (the Act), requires Commerce to issue the preliminary determination in a CVD investigation within 65 days after the date on which Commerce initiated the investigation. However, section 703(c)(1) of the Act permits Commerce to postpone the preliminary determination until no later than 130 days after the date on which Commerce initiated the investigation if: (A) the petitioner makes a timely request for a postponement; or (B) Commerce concludes that the parties concerned are cooperating, that the investigation is extraordinarily complicated, and that additional time is necessary to make a preliminary determination. Under 19 CFR 351.205(e), the petitioner must submit a request for postponement 25 days or more before the scheduled date of the preliminary determination and must state the reasons for the request. Commerce will grant the request unless it finds compelling reasons to deny the request.
On June 21, 2024, the petitioner [1] submitted a timely request to postpone the preliminary determination in the investigation.[2] The petitioner stated that postponement of the preliminary determination is necessary because the current schedule does not provide Commerce with adequate time to fully analyze the forthcoming questionnaire responses of the mandatory respondents and issue supplemental questionnaires, as necessary.[3]
In accordance with 19 CFR 351.205(e), the petitioner submitted its request for postponement of the preliminary determination in this investigation 25 days or more before the scheduled date of the preliminary determination and stated the reasons for its request. Commerce finds no compelling reason to deny the request. Therefore, in accordance with section 703(c)(1)(A) of the Act, Commerce is postponing the deadline for the preliminary determination in this investigation to no later than 130 days after the date on which it initiated this investigation. The postponed deadline for the preliminary determination is September 20, 2024. Pursuant to section 705(a)(1) of the Act and 19 CFR 351.210(b)(1), the deadline for the final determination in this investigation will continue to be 75 days after the date of the preliminary determination.
This notice is issued and published pursuant to section 703(c)(2) of the Act and 19 CFR 351.205(f)(1).
Dated: June 28, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.
Footnotes
1. The petitioner is ICL-IP America, Inc. Back to Citation
2. See Petitioner’s Letter, “Request for Postponement of the Preliminary Determination,” dated June 21, 2024. Back to Citation
3. Id.
[FR Doc. 2024-14760 Filed 7-3-24; 8:45 am]
BILLING CODE 3510-DS-P
July 8, 2024
Chinese Energy
China’s Rapid Renewables Rollout Hits Grid Limits
by Tyler Durden
Monday, Jul 08, 2024 – 02:45 AM
By John Kemp, senior energy analyst at Reuters
China’s record-breaking deployment of wind and solar capacity has worsened regional power imbalances, forcing the country to idle increasing amounts of renewable generation when it overwhelms local consumption.
New government regulations aim to reduce the amount of renewable generation that has to be abandoned by increasing long-distance transmission links and better coordinating generation plans across provinces.
Since the end of 2018, China’s total generating capacity has increased by 1.137 billion kilowatts (kW), compound annual growth of 9%, according to data from the National Bureau of statistics (NBS).
Thermal capacity, mainly from coal-fired plants but some from gas-fired generators, rose by 257 million kW or 4% per year (“China statistical yearbook”, NBS, 2023).
Most capacity additions, however, have come from what the government calls “new energy sources” – wind farms (277 million kW, 19% per year) and solar generators (517 million kW, 29% per year). Increased penetration of intermittent renewables is making it harder to manage a nationwide transmission system that was already struggling with large regional imbalances between generation and load.
The solution to variable wind and solar output is to smooth out fluctuations across a larger number of generators spread over much larger areas of the country, which will require more transmission and better scheduling.
Long-Distance Transmission
For decades, the country has been characterized by massive west-to-east electricity transfers from interior areas with surplus generation to the massive load centres on the east and south coasts. Ten provincial-level areas in the east and south (Liaoning, Hebei, Beijing, Tianjin, Shandong, Jiangsu, Shanghai, Zhejiang, Fujian and Guangdong) accounted for 50% of national consumption but only 40% of generation in 2022.
By contrast, six remote and sparsely populated northern and western areas (Inner Mongolia, Xinjiang, Shanxi, Shaanxi, Gansu and Ningxia) accounted for 18% of consumption but 25% of generation.
Chartbook: China regional electricity transfers
In response, China’s State Grid Corporation has constructed a network of ultra-high voltage transmission lines to move power thousands of kilometres from surplus areas in the west and north to deficit areas in the east and south.
In the process, China has become the world leader in ultra-high voltage transmission to move electricity over long distances while minimising line losses and is exporting its expertise around the world.
Inner Asia’s Energy Abundance
China’s northern and western areas are some of the least populated and poorest parts of the country, but rich in energy resources, traditionally coal but now increasingly gas and renewables.
The north and west contains the country’s most important coal deposits and has become a major centre of pit-head generation, with some electricity used locally by heavy industry, and the rest transmitted east and south.
Inner Mongolia, Shanxi, Shaanxi and Xinjiang alone accounted for 81% of coal mine production and 25% of all thermal generation in 2022, according to data from the NBS.
In a quirk of fate, the arid and windswept northern and western plains and deserts are also the best sites for giant wind farms and solar parks.
Inner Mongolia, Shanxi, Shaanxi and Xinjiang together with neighbouring Gansu, Ningxia and Qinghai accounted for 42% of all wind and solar generation last year.
But the addition of so much wind and solar generation in a region already saturated with coal-fired power threatens to overwhelm the transmission system.
During peak periods of wind and solar generation, there is not enough population and industry in these areas to absorb all the output, and not enough long-distance transmission capacity to move the surplus east and south.
More Transmission And Planning
In 2016, the national utilisation rate for new energy sources fell to a record low of 84%, prompting the central government to launch a “Clean Energy Absorption Action Plan” to reduce the waste of renewable resources. The plan focused on improvements in local distribution, long-distance inter-provincial transmission, and energy trading to reduce the curtailment of new energy generation.
By 2023, the utilisation rate for wind power had climbed to a remarkable 97.3% and solar had reached 98%, according to the state-run news agency Xinhua.
With rapid deployment of renewable capacity, however, the problem of abandonment is re-emerging, with wind utilisation down to 96.1% and solar down to 96% in the first five months of 2024. Sliding utilisation has prompted an alert from the National New Energy Consumption Monitoring and Early Warning Center (“Solving the pain points and difficulties of new energy consumption”, Xinhua, July 1, 2024).
The response is likely to be similar, with renewed emphasis on integrating renewables at local level and more transmission capacity to move surplus power across provincial boundaries. In the last two years, central government policy statements have repeatedly focused on the need for better coordination of transmission and generation between provinces.
Creating A Truly National System
In a sign of the importance attached to the issue, the Communist Party’s Politburo held a group study session on new energy technology and energy security on February 29, 2024. The session, bringing together top central and regional leaders, included a discussion on boosting “the grid’s capacity capability to integrate, distribute and regulate clean energy.”
President Xi Jinping stressed need for “coordinated development of the energy sector” (“Xi stresses high-quality development of new energy”, CPC International Department, March 2, 2024).
In many ways, China’s long-distance ultra-high voltage transmission system is an extraordinary engineering achievement, likely to be copied in other parts of the world as more and more renewables are connected to grids. It has enabled a remarkable penetration of intermittent renewables, as well as hydroelectric generation, into the national power system while maintaining or improving reliability. As a result, wind and solar producers supplied 15% of all generation in the first five months of 2024, up from 7% in the same period in 2019.
In some ways, however, China is still struggling to forge a truly integrated nationwide system from fragmented provincial-level utilities that pursue their own priorities. If government plans to achieve even higher renewables penetration are to be achieved, there will have to be much closer links and more coordination between different types of generators and across far wider areas.
https://www.zerohedge.com/markets/chinas-rapid-renewables-rollout-hits-grid-limits
July 2, 2024
FTC To Sue To Block Tempur Sealy Acquisition
FTC preparing lawsuit to block Tempur Sealy’s $4B acquisition of Mattress Firm
Jul. 02, 2024 7:51 AM ETTempur Sealy International, Inc. (TPX) StockBy: Joshua Fineman, SA News Editor
The Federal Trade Commission is poised to sue to block mattress maker Tempur Sealy’s (NYSE:TPX) $4 billion planned purchase of retailer Mattress Firm. Tempur Sealy ticked lower by 0.5% in premarket trading.
The regulator is concerned that combining the largest manufacturer and retailer would lead to higher prices and that Tempur Sealy (TPX) may discriminate against rival suppliers, according to a Politico Pro report late Monday, which cited three people familiar with the matter.
A lawsuit could be filed as soon as Tuesday, according to the report.
The Politico Pro piece comes after CTFN reported last Tuesday that the companies met with the FTC last week in a last effort to try to convince the regulator to not block the combination.
CTFN also reported on Thursday that the Tempur Sealy/Mattress Firm deal was expected to be the subject of closed door meeting at the FTC on Monday. Tempur Sealy (TPX), which agreed to buy Mattress Firm in a $4 billion deal in May 2023, had agreed to sell off some of its retail stores to try to appease the FTC, according to the earlier CTFN item.
May 19, 2024
The CDR rule Reporting Window
Chemical Data Reporting under the Toxic Substances Control Act
- The 2024 CDR Reporting Period is Opening Soon The 2024 CDR submission period begins June 1, 2024, and runs through September 20, 2024. Companies are required to report data electronically using EPA’s Central Data Exchange (CDX) systemand the e-CDRweb reporting tool which will be available starting June 1.
- Guidance on submitting information to the CDR database for 2024.
- CDR GuideMe guidance database
- 2020 CDR National Review EPA published a review summarizing the 2020 CDR site locations, production volumes, industrial uses, and commercial/consumer uses, as well as, data trends from the last three reporting cycles.
- The 2024 CDR Reporting Period is Opening Soon The 2024 CDR submission period begins June 1, 2024, and runs through September 20, 2024. Companies are required to report data electronically using EPA’s Central Data Exchange (CDX) systemand the e-CDRweb reporting tool which will be available starting June 1.
- Guidance on submitting information to the CDR database for 2024.
- CDR GuideMe guidance database
- 2020 CDR National Review EPA published a review summarizing the 2020 CDR site locations, production volumes, industrial uses, and commercial/consumer uses, as well as, data trends from the last three reporting cycles.
The Chemical Data Reporting (CDR) rule, under the Toxic Substances Control Act (TSCA), requires manufacturers (including importers) to provide EPA with information on the production and use of chemicals in commerce.
Basic Information
2020 National Review
CDR Data
Regulatory Overview
- CDR Petitions
- Proposed TSCA Data Reporting Rule
- Legislative and regulatory authority
- 40 CFR Part 711, (TSCA CDR Requirements)
CDR Reporting
May 2, 2024
Alkyl Phosphate Esters Dumping Investigation to Begin in May
New Antidumping Duty and Countervailing Duty Petitions on Alkyl Phosphate Esters From China
Authors: Douglas J. Heffner,Richard Ferrin,Carrie Bethea Connolly
At a Glance
- ICL-IP America, Inc. filed both antidumping duty petitions and countervailing duty petitions on certain alkyl phosphate esters from China.
- Investigations related to these petitions could result in increased prices and/or decreased supply of alkyl phosphate esters.
- The U.S. Department of Commerce is expected to begin investigations on May 13, 2024.
On April 23, 2024, antidumping duty (AD) and countervailing duty (CVD) petitions were filed on certain alkyl phosphate esters from China. The petitions were filed by ICL-IP America, Inc., a subsidiary of the ICL Group (Petitioner). Alkyl phosphate esters are used as a flame retardant and as additives in a wide range of products.
The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports that are sold in the United States with the benefit of foreign government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping and/or subsidization is occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped and/or subsidized imports. Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of alkyl phosphate esters.
Scope
Please note that this section was not written by our authors but is taken verbatim from the petition.
Alkyl phosphate esters based exclusively on side chains with a length of two or three carbon atoms (also includes chlorinated alkyl chains) and with a phosphorus content of at least 6.5% (per weight) and a viscosity between 1 and 2000 mPa.s (at 20-25 °C). Alkyl phosphate esters include Tris (2-chloroisopropyl) phosphate (TCPP), Tris(1,3-dichloroisopropyl) phosphate (TDCP), and Triethyl Phosphate (TEP). TCPP is also known as Tris (1-chloro-2-propyl) phosphate, Tris(1-chloropropan-2-yl) phosphate, Tris (monochloroisopropyl) phosphate (TMCP), and Tris(2-chloroisopropyl) phosphate (TCIP). It has the chemical formula C9H18Cl3O4P and the CAS Nos. 1244733-77-4 and 13674-84-5. It may also be identified as CAS No. 6145-73-9. TDCP is also known as Tris (1,3-dichloroisopropyl) phosphate, Tris (1,3-dichloro-2-propyl) phosphate, Chlorinated tris, tris {2-chloro-1-(chloromethyl ethyl} phosphate, TDCPP, and TDCIPP. It has the chemical formula C9H15Cl6O4P and the CAS No. 13674-87-8. TEP is also known as Phosphoric acid triethyl ester, phosphoric ester, flame retardant TEP, Tris(ethyl) phosphate, Triethoxyphosphine oxide, and Ethyl phosphate (neutral). It has the chemical formula (C2H5O)3PO and the CAS No. 78-40-0. Also included in this investigation are isomers of the foregoing products and blends including one or more alkyl phosphate esters where the alkyl phosphate esters account for 20 percent or more of the blend by weight.
Alkyl phosphate esters are classified under subheading 2919.90.5050, HTSUS. Imports may also be classified under subheadings 2919.90.5010 and 3824.99.5500, HTSUS. References to the HTSUS classification are provided for convenience and customs purposes, and the written description of the merchandise under investigation is dispositive regarding the scope of the investigation.
Estimated Dumping Margins
The Petitioners allege dumping margins in the range of 119.52 to 145.43% based on average unit values, or 78.36 to 99.4% based on actual U.S. transaction prices.
The Petitioners also allege significant subsidies, although the petitions do not quantify the alleged net subsidy margin.
Estimated Schedule of Investigations
The following is an estimated schedule of investigations by the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC):
| April 23, 2024 | Petitions are filed. |
| May 13 2024 | DOC initiates investigations. |
| May 14, 2024 | ITC staff conference (estimated). |
| June 7, 2024 | Deadline for ITC preliminary injury determination. |
| July 17, 2024 | Deadline for DOC preliminary CVD determination, if deadline is NOT postponed. |
| September 20, 2024 | Deadline for DOC preliminary CVD determination, if deadline is fully postponed. |
| September 30, 2024 | Deadline for DOC preliminary AD determination, if deadline is NOT postponed. |
| November 19, 2024 | Deadline for DOC preliminary AD determination, if deadline is fully postponed. |
| April 3, 2025 | Deadline for DOC final AD and CVD determinations, if all deadlines are fully postponed. |
| May 19, 2025 | Deadline for ITC final injury determination, if all DOC deadlines are fully postponed. |
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