Audit, Compliance and Risk Blog

On September 27, 2024, California’s governor Gavin Newsom signed Senate Bill (SB) 219, amending greenhouse gas (GHG) emission reporting requirements for targeted organizations doing business in the state, enacted in 2023 (SB 253 (Wiener) (Climate Corporate Data Accountability Act) and SB 261 (Stern)) and initially scheduled to require compliance beginning January 1, 2025. (I wrote about them HERE) SB 219 revises and delays emissions reporting requirements. The revised requirements will still be administered by the California Air Resources Board (ARB), expanding its longstanding air quality and climate authority (GHG provisions center on the Global Warming Solutions Act of 2006 ((AB 32)). The remainder of this note discusses the revisions made by SB 219. 

In recent years, the US Environmental Protection Agency (EPA) has reviewed its overlapping responsibilities to regulate pesticides under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), and to protect endangered and threatened species under the Endangered Species Act (ESA). In August, EPA completed its latest step in these efforts by issuing its “Herbicide Strategy to Reduce Exposure of Federally Listed Endangered and Threatened Species and Designated Critical Habitats from the Use of Conventional Agricultural Herbicides” (Herbicide Strategy). The rest of this note summarizes the Herbicide Strategy, and provides context regarding EPA’s FIFRA and ESA authorities. 

Canada has just imposed restrictions against false or misleading statements made in marketing or other materials regarding the environmental impacts and benefits of goods and services -- “greenwashing.” These provisions were adopted as amendments to the Competition Act, enacted as part of the Government’s omnibus “Fall Economic Statement Implementation Act, 2023” (Bill C-59), which received royal Assent on June 20.  

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.

In June, the US Occupational Safety and Health Administration (OSHA) and other federal agencies reacted to flooding in Florida by re-highlighting existing guidance to support preparation for potential flooding this summer, and to respond when it occurs. OSHA’s guidance is directed at employers, while the National Weather Service (NWS) provides more generalized guidance and the Centers for Disease Control and Prevention (CDC) target families. The rest of this note summarizes this timely information, centering on OSHA’s offerings.

On Mrbonbonay 28, the Biden administration issued a “Joint Statement of Policy and new Principles for Responsible Participation in Voluntary Carbon Markets, presenting the U.S. government’s approach to advancing Voluntary Carbon Markets (VCMs). The new document was signed by the Treasury Secretary, Agriculture Secretary, Energy Secretary, Senior Advisor for International Climate Policy, National Economic Advisor, and National Climate Advisor, whose responsibilities are most relevant. 

Regulatory and market-based programs are steadily increasing opportunities for entities to contract with projects that reduce emissions of carbon dioxide and other greenhouse gases (GHGs), and to claim credit for those “carbon offsets” or “carbon credits.” Some such claims are used to satisfy formal air quality and GHG reduction requirements, while others are touted to enhance entities’ “green” credentials. Programs around the globe compile such claims, and some provide third party validations – but possible “greenwashing” of unjustified claims remains a significant concern. The new VCM Policy and Principles provide federal guidance and expectations. The remainder of this note summarizes the policy perinciples presented in the new Policy.

On April 17, the US Environmental Protection Agency (EPA) issued a memorandum announcing its Strategic Civil-Criminal Enforcement Policy (“the Policy”). The Policy provides direction to EPA’s civil and criminal enforcement staffs, seeking to ensure that the two sometimes-disjoint groups coordinate training, procedures, and enforcement choices. The remainder of this note summarizes this new Policy.

On March 28, 2024, the US Environmental Protection Agency (EPA) adopted requirements that qualifying onshore non-transportation-related facilities prepare Facility Response Plans (FRPs) to address possible “worst case” discharges of hazardous substances into navigable waters or related areas. These new requirements fulfill a mandate imposed in 2020 after environmental groups successfully sued EPA for failing to issue such rules in the 30 years following 1990 amendments to the Clean Water Act (CWA) directed EPA to do so (Environmental Justice Health Alliance for Chemical Policy Reform, et al. v. EPA). The rest of this note discusses these new requirements, in the context of CWA facility preparation requirements.

On March 11, the Biden Administration issued its budget proposal for federal Fiscal Year (FY) 2025 (October 1, 2024 through September 30, 2025). The administration proposes a $10.994 billion budget for the Environmental Protection Agency (EPA), an 8.5% ($0.858 billion) increase above money allocated to EPA under the latest FY 2024 Continuing Budget Resolution (since no budget has been adopted for FY budget under continuing resolutions during FY 2024 (I wrote about the Administration’s FY 2024 proposal HERE). ctionsEven if an FY 2025 budget is enacted, political differences make significant reductions likely, but, it’s worth reviewing the proposal as a reflection of the Administration’s ongoing environmental priorities. The remainder of this note summarizes the latest proposal.

The Environmental Protection Agency (EPA) announced on February 7. 2024 its decision to tighten one the National Ambient Air Quality Standard (NAAQS) for particulate matter less than or equal to 2.5 microns; (PM-2.5; also call “fines” in contrast to larger particulates). This decision completes EPA’s reconsideration of a decision in 2020 not to adjust the PM-2.5 requirements (I wrote about that decision HERE); the change reflects in part the changed priorities between the Trump and Biden administrations. The rest of this note summarizes NAAQS issues as they apply to PM-2.5.