In July, the US Environmental Protection Agency (EPA) issued the fifth edition of its periodic Climate Change Indicators report, focusing on Indicators related to the human health and societal impacts of climate change. While this 96-page report provides broad policy discussions, it applies data which calibrate ongoing changes that organizations can use to support evaluations of the possible impacts of these changes on their ongoing activities and future prospects. The remainder of this note summarizes EPA’s latest indicators, and how they can be relevant to organizational planning and decision-making.
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Tags: Environmental, EPA, climate change, Environment, Environmental Policy, Climate, environmental protection
SEC adopts climate-related disclosure requirements for public companies
Posted by Jon Elliott on Tue, Mar 26, 2024
On March 6, 2024 the US Securities and Exchange Commission (SEC) announced new requirements that selected “public companies” (i.e, listed on national securities exchanges) provide “climate-related disclosures for investors” in their registration statements and annual reports. SEC is incorporating them into existing requirements to disclose “material information,” under the Securities Act of 1933 and the Securities Exchange Act of 1934. These new requirements are more limited than those proposed by SEC in March 2022 (which I wrote about HERE). The remainder of this note summarizes SEC’s new requirements.
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Tags: SEC, Environmental risks, Environmental, climate change, Environment, Climate
Canada: Federal Court rejects listing of Plastic Manufactured Items as “Toxic Substances” under Canadian Environmental Protection Act
Posted by Jon Elliott on Mon, Feb 19, 2024
Among its many provisions, the Canadian Environmental Protection Act (CEPA) creates several lists of “toxic substances,” and empowers Environment and Climate Change Canada (ECCC) to revise the list. In 2021, ECCC add “plastic manufactured items (PMI)” to one of these lists, but was sued by manufacturers seeking to void the addition. Extensive CEPA amendments were enacted in April 2023 (“Strengthening Environmental Protection for a Healthier Canada Act” (Bill S-5)), including revisions to the toxic substance lists – including recodification of the listing of PMI – and left ECCC’s authority over toxic substances relatively unchanged, so the litigation continued. In November 2023, the Federal Court ruled that the CEPA amendments did not moot the issues in the litigation, and ruled that ECCC had exceeded its statutory and constitutional authority when listing PMI.
Read MoreTags: Environmental risks, Environmental, Greenhouse Gas, climate change, Environment, Environmental Policy, Climate, ECCC, CEPA
Proposal to Require Climate Risks and Resilience Plans from Significant Federal Suppliers
Posted by Jon Elliott on Mon, Nov 28, 2022
On November 10, the Biden Administration announced a proposal to amend the Federal Acquisition Regulation (FAR) to require “major federal suppliers” and “significant federal suppliers” to disclose their greenhouse gas (GHG) emissions and assessments of climate-related risks, and to set targets for GHG emission reductions. The rest of this note summarizes this proposal.
Read MoreTags: Environmental, Greenhouse Gas, ghg, CO2 Emissions, Environment, Environmental Policy, Climate, FAR, NASA, DOD
The US had been a major player in the drafting and enactment of the Kigali Amendment (during President Obama’s administration), but then withdrew its support (during President Trump’s administration). However, the US enacted Kigali-like requirements in the December 2020 coronavirus relief bill (American Innovation and Manufacturing Act of 2020 (AIM Act)), among the many provisions buried within its 5,593 pages; EPA finalized its rules in September 2021 (I wrote about these rules here).
The remainder of this note summarizes the situation.
Why are HFCs being phased down, and how?
HFCs were developed primarily as substitutes for chlorofluorocarbons (CFCs), which are the principal ozone depleting substances (ODSs) targeted by the Montreal Protocol. HFCs have lower but non-zero ozone depleting potential, and are greenhouse gases that contribute to climate change. Accordingly, nearly 30 years after the initial 1987 approval of the Montreal Protocol roughly 200 national and international parties negotiated HFC phase-downs. As adopted in Kigali, Rwanda these amendments divide countries into three groups with different schedules and targets:- developed nations including the United States – cut consumption to 90% of 2011-2013 baseline of most HFCs (plus 15% of those already covered by the Protocol) by 2019, declining to 15% by 2036
- most developing nations, including China and over 100 others - consumption to peak in 2024 at 100% of 2011-2013 baseline of most HFCs (plus 25% of those already covered by the Protocol), declining to 20% by 2045
- 10 hot-climate developing countries (where air conditioning is particularly important), including India, Pakistan and some Gulf states - consumption to peak in 2028 at 100% of 2011-2013 baseline of most HFCs (plus 25% of those already covered by the Protocol), declining to 15% by 2047
After the Trump administration replaced the Obama administration, the US took no action on this agreement. During this period, however, other countries have moved forward to ratify and work to meet their commitments.
What HFC-related provisions did the AIM Act enact?
The massive coronavirus relief bill includes Division S (“Innovation for the Environment”), with section 103 (“American Innovation and Manufacturing Act of 2020”). Without mentioning the Kigali Amendment, section 103 incorporates its requirements into US law:- the legislation lists 18 specific HFCs, and authorizes EPA to designate additional formulations
- EPA was to calculate 2011-2013 production and consumption baselines for each, and to use these to calculate future phase-down levels ranging from 90% in 2020 to 15% in 2036 and thereafter
- EPA was to issue regulations with 270 days (by 9/23/21) to set phase-down requirements, with associated procedural requirements including allowances associated with each baseline amount, and reclamation and destruction methods
EPA’s rules are designed to meet these requirements. In addition, EPA has initiated or re-invigorated other programs to support the phase-down of HFCs and their replacement by refrigerants that are less harmful to global climate and the stratospheric ozone layer.
What now?
Ratification will become official once the US submits formal notification to the United Nations. The new rules took effect on November 4, 2021 and are progressing; EPA proposed 2024-reduction formulas on October 20, 2022.. While domestic requirements will not change from those enacted through the AIM Act, ratification returns the US to the center of international HFC-reduction efforts, and reinforces national commitments to the environment.IImplementation Checklist
- Does the organization manufacture, import or use any ozone depleting substance (ODS) subject to the Montreal Protocol and/or CAA Title VI?
- If the phase-out date for any ODS has passed, do any of the organization’s activities qualify with applicable exceptions or essential uses?
- Does the organization manufacture, import or use any HFCs?
- Has the organization reviewed any such activity to identify alternatives for any HFC that is or may become subject to phase-down under US and international law?
Where do I go for more information?
Information available via the Internet includes:
● US legislation
Tags: Environmental risks, Greenhouse Gas, climate change, Environment, HFCs, Ozone Layer, Environmental Policy, Climate
Canadian securities administrators propose climate-related disclosure requirements for public companies
Posted by Jon Elliott on Mon, Aug 22, 2022
When must organizations evaluate and disclose how climate change will affect their operations?
The Canadian Securities Administrators (CSA) provides a cooperative forum for Canada’s provincial and territorial securities regulators, including the development of model regulations and associated guidance. Last October, CSA took its latest step toward climate-related disclosure requirements, by proposing “National Instrument 51-107 – Disclosure of Climate-related Matters;” public comments were due by January 17, 2022. Assuming CSA moves ahead and finalizes this National instrument (NI), then securities regulators throughout Canada will enact equivalent requirements and establish compliance deadlines for companies they regulate.
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Tags: climate change, Environment, Canada, Climate
Department of Justice Reviving Use of Supplemental Environmental Project Agreements
Posted by Jon Elliott on Mon, Jun 13, 2022
On May 12, 2022, the US Department of Justice (DOJ) published an interim final rule that revokes a Trump-era prohibition against its attorneys’ use of payments to third parties, including via “supplemental environmental projects (SEPs)”, in settlements with violators of federal environmental laws. (I discussed Trump Administration policies several times, most recently HERE). In these cases, DOJ acts as the attorney for the agencies, such as the Environmental Protection Agency (EPA), that enforce laws and regulations allegedly violated. This rule change would codify policy changes presented in a memorandum from Attorney General Merrick Garland to US attorneys. This change is designed to restore flexibility to DOJ’s US attorneys to trade penalty dollars for more rapid commitments by wrongdoers to undertake actions to offset harms caused by their violations.
Read MoreTags: EPA, DOJ, SEP, Environment, Climate
Biden Administration reverses Trump Administration revisions to Federal Environmental Impact Assessment rules
Posted by Jon Elliott on Mon, May 09, 2022
The federal Council on Environmental Quality (CEQ) has revised its regulations administering the National Environmental Policy Act (NEPA) of 1969. NEPA requires federal agencies to assess the environmental effects of their proposed actions, and incorporate this information into their decisions. Government-wide guidance is provided by the White House’s CEQ, established by NEPA and appointed by the President. CEQ issues formal regulations that agencies must follow, and guidance documents that provide additional advice. CEQ also reviews agencies’ NEPA implementation programs, and publishes annual national Environmental Quality Reports.
Read MoreTags: Environment, Climate, NEPA, CEQ
The Environmental Protection Agency (EPA) has proposed to ban a number of longstanding uses of chrysotile asbestos, using expanded authority provided as part of amendments adopted to the Toxic Substances Control Act (TSCA) in 2016. This proposal is EPA’s latest step to apply its expanded authority to review and restrict uses of asbestos, renewing agency efforts from the 1980s that were blocked by litigation.
Read MoreTags: EPA, Environment, Climate, asbestos
EPA proposes to require worst case release planning by onshore facilities
Posted by Jon Elliott on Mon, Apr 25, 2022
On March 28, the US Environmental Protection Agency (EPA) proposed regulations requiring “non-transportation-related onshore facilities” to prepare response plans covering possible releases of hazardous substances, and submit those plans to EPA. This proposal implements longstanding but unused EPA authority under the Clean Water Act (CWA). The remainder of this note discusses the proposal.
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Tags: EPA, climate change, Environment, Climate