(New York) – The Supply Chain Federation, a unifying national voice working collectively to create a strong and resilient supply chain, today submitted testimony before the New York City Committee on Environmental Protection, Resiliency and Waterfronts to highlight concerns with the “indirect source rule” proposal.
“The supply chain is vital to economic stability, consumer access, affordability, and the creation of good-paying jobs,” said Supply Chain Federation Chief Advocacy and Public Policy Officer in her testimony to the committee. “It is a complex and intricately connected system – and when even small disruptions occur, their effects are often felt quickly across a broad range of sectors, communities, and residents. Therefore, it is essential that any proposed regulation considers the broader impacts on the supply chain.
“As currently drafted, this proposal would require the Department of Environmental Protection to establish an indirect source rule, which could impose strict zero-emission (ZE) requirements and high mitigation fees that are often unrealistic, disproportionately impacting small warehouse owners and operators,” continued Wiltfong. “These costs provide no clear environmental or economic benefits and ultimately lead to higher consumer prices. Many small operators, unable to absorb these expenses, may be forced out of business or relocate, merely shifting truck emissions to other regions rather than reducing them. While we fully support emissions reduction efforts, the focus should be on providing assistance and incentives for a smooth transition—not adding regulatory burdens.
“We understand that New York City is finalizing its NYC Industrial Plan in the coming months, and we urge you to delay the development of an Indirect Source Rule until the plan is complete. The supply chain plays a vital role in affordability, and any disruption could have significant unintended economic impacts on local residents and the entire region. We urge you to consider this carefully before adopting any new regulations,” Wiltfong’s statement concluded.
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The Supply Chain Federation is the leading national advocacy group working to secure and strengthen America’s supply chain, uniting business and labor to protect jobs, invest in domestic infrastructure and safeguard the supply chain and economy from global instability. The Supply Chain Federation is the unifying force working collectively to create a strong and resilient supply chain, ensuring access to the goods and services Americans depend on. The Supply Chain Federation is fighting for regulatory and legislative measures that protect and strengthen the supply chain and against unnecessary and shortsighted policies on the federal, state, and local level that make it more difficult to get the goods and services Americans rely on where they need them most.
