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. 

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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. 

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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.  

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Effective March 12, 2020, the US Department of Justice (DOJ) prohibits its US attorneys from entering into settlements in which DOJ lowers penalties for defendants that agree to conduct “supplemental environmental projects (SEPs)”, if the SEP involves payments to a third party. This action is the latest in a series of DOJ moves against SEPs since President Trump took office. The first such step was a June 2017 DOJ management memorandum directing US attorneys NOT to agree to SEPs that include payments to third parties (I wrote about that memo HERE). The second was an August 2019 memorandum restricting use of SEPs in Clean Water Act (CWA) cases against state and local governments, in which DOJ rejected arguments that recent legislation allows them (I wrote about that memo HERE).

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