Audit, Compliance and Risk Blog

Last month I blogged about basic provisions of the Montreal Protocol on Substances that Deplete the Ozone Layer, and ongoing negotiations to expand it to require phaseout of chemicals that harm the stratospheric ozone layer and contribute to climate change (click here, and included links to early blogs on Montreal Protocol issues). At that time, proposals all focused on hydrofluorocarbons (HFCs). At that point, global HFC use was increasing by roughly 10% annually, driven primarily by expanding use for air conditioning as hot developing countries sought to catch up with comfort levels in their developed counterparts. Proposed timelines and end-targets for reversing that expansion varied considerably.

In September 2016, the U.S. Commission on Civil Rights (Commission) issued its annual “Statutory Enforcement Report for 2016”; this year’s topic is the Environmental Protection Agency’s (EPA’s) efforts to protect and promote “Environmental Justice.” The Commission reviews decades of EPA efforts, and criticizes longstanding inadequacies.

Attempts to reduce greenhouse gas (GHG) emissions are more complex than they first appear. Reports in the mass media tend to focus on carbon dioxide (CO₂). The United Nations Framework Convention on Climate Change (Framework Convention) focuses primarily on six GHGs, including CO₂ as well as methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride (SF₆). Climate change scientists have identified hundreds of GHGs, with widely varying sources, relative contributions to climate change (numerical “global warming potential (GWP)”, where CO₂ is defined as 1.0), and total contribution based on emitted volumes.

To improve the efficiency of RCRA Corrective Action, in 2014, EPA Regions 3 and 7 began a pilot to implement RCRA Corrective Action using Lean process analysis with the goal of clarifying goals and expectations early in the process. The Lean process is a collection of principles and methods that focus on the systematic identification and elimination of non-value-added activity involved in producing a product or delivering a service to customers. Within the RCRA Corrective Action program, the Lean process was used to remove various redundant steps and frontload goals and expectations through a corrective action framework (CAF), resulting in significant time savings.

The Equal Employment Opportunity Commission (EEOC) administers and enforces most national anti-discrimination laws. As part of these responsibilities, EEOC issues formal regulations, and a host of less formal guidance documents – some directed to employers, some to employees, and/or some to the agency’s own personnel. In August 2016, EEOC reissued EEOC Enforcement Guidance on Retaliation and Related Issues (“the Guidance”), describing its approach to situations where employees claim they’ve suffered retaliation for asserting rights against discrimination under the laws EEOC administers, or even just for questioning workplace rules and situations.

The U.S. Environmental Protection Agency (EPA) regulates hazardous wastes under the Resource Conservation and Recovery Act (RCRA). These regulations include a detailed national system governing hazardous waste shipments from generators to offsite management facilities. In October 2012, RCRA was amended by the Hazardous Waste Electronic Manifest Establishment Act, authorizing EPA to implement a national electronic manifest system. In 2014, EPA adopted regulations to govern the new electronic system (I blogged about the rules here), but deferred compliance provisions (including specific electronic formats) while the agency continues to work on its data collection and management system.

In recent years, the United States and China have found a rare basis for cooperation in their joint efforts to accelerate international efforts to manage and reduce climate change. The first significant step in this cooperation was the two countries’ bilateral agreement in November 2014 to manage greenhouse gas (GHG) emissions within their boundaries (I blogged about it here). At the time, the two countries offered their commitments as a way to reinforce international climate change negotiations underway to replace the expiring Kyoto Protocol to the United Nations Framework Convention on Climate Change. In December 2015, those negotiations produced the Paris Agreement, which established global mechanisms for countries to declare self-enforcing national GHG management commitments (I blogged about the Paris Agreement here).

In July 2014, President Obama issued Executive Order (EO) Number 13673, establishing a series of reporting and procedural requirements for federal contractors, inducing them to provide “Fair Pay and Safe Workplaces” to their employees. Some requirements are specific in the EO, while others were left for clarification by revisions to the Federal Acquisition Regulation (FAR), for contracts subject to these requirements. (I blogged about the EO here). None became effective in 2014, but instead they have awaited the FAR revisions. The revised FAR has been issued effective October 25, 2016, for appropriate contracts issued by the Department of Defense (DoD), General Services Administration (GSA) and National Aeronautics and Space Administration (NASA). The new requirements will be phased in, covering contracts and subcontracts for goods and services greater than $50 million immediately, and those greater than $500,000 effective April 25, 2017.

On August 2, the White House’s Council on Environmental Quality (CEQ) issued guidance to assist federal agencies in their consideration of the effects of greenhouse gas (GHG) emissions and climate change when evaluating proposed federal actions. I refer to this documents as “the Guidance” below.

The Clean Air Act (CAA) includes extensive regulatory requirements on “mobile sources,” which cover efficiency and emissions standards for a broad range of vehicles with internal combustion engines (automobiles, buses, aircraft), “nonroad engines and vehicles” (including lawnmowers, bulldozers and marine vessels), as well as motor fuel standards intended to promote cleaner burning fuels. The U.S. Environmental Protection Agency (EPA) uses CAA authority to set emission limits from engines, for CAA-regulated air pollutants, including carbon dioxide (CO2) regulated for its greenhouse gas (GHG) aspects.