Audit, Compliance and Risk Blog

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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The Clean Air Act (CAA) directs the Environmental Protection Agency (EPA) to define “hazardous air pollutants (HAPs)” that may pose acute health hazards, and to impose regulations to reduce those hazards. Controls include permits for “major sources” of HAPs based on “Maximum Achievable Control Technologies (MACT),” and lesser controls for non-major “area sources.” Effective September 10, 2024 EPA has reinstated a policy that an emission source that met major source criteria at the time an applicable MACT became effective is “once in, always in” – even if a source makes binding changes reducing its “potential to emit” below the applicable major source threshold, it still cannot formally requalify as a less-regulated area source. This policy was in force from 1995 until EPA reversed it in January 2018 to allow full reclassification. EPA subsequently codified this approach in a rule issued in 2020. However, EPA has now revised that rule to reinstate “once in, always in.” The rest of this note summarizes CAA requirements for HAP sources, and the latest change. 

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As the 2024 Presidential election enters its final stages, both major parties have published their election platforms. The Democrats have published a total of 91 pages covering all their promises, and the Republicans have published 16 pages. In 2020, the Democrats also published 91 pages, while the Republicans instead adopted a resolution promising continuity with ongoing Trump administration priorities (I wrote about the 2020 pronouncements HERE ). The remainder of this note summarizes the environmental elements in both parties’ 2024 platforms. Both documents conform to the parties’ general priorities, with the Democrats emphasizing continuing and expanding environmental policies of the most recent years while the Republicans promise to reduce regulatory burdens in line with returning to the policies of their most recent administration.

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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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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.” 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. To address these concerns, California has just enacted legislation to regulate Voluntary Cabon Market Disclosures and penalize noncompliance (Assembly Bill (AB) 1305, Gabriel). These requirements synthesize the most thorough voluntary disclosure programs, and are intended not only to protect California consumers but to codify disclosure standards. The rest of this note summarizes carbon offsets, and AB 1305 requirements.

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On October 19, 2023, the US Environmental Protection Agency (EPA) proposed to establish requirements for the management of hydrofluorocarbons (HFCs) potentially released from equipment during maintenance or other services, and manage spent HFCs.. These rules support US efforts to implement the 2016 Kigali Amendment to the United Nations-sponsored Montreal Protocol on Substances that Deplete the Ozone Layer (which I wrote about HERE), and codified in the December 2020 coronavirus relief bill (American Innovation and Manufacturing Act of 2020 (AIM Act; which included dozens of unrelated provisions within its 5,593 pages). EPA adopted its over-arching HFC phase-down rules in September 2021 (I wrote about them HERE), and continues to adjust and refine their requirements. The remainder of this note summarizes EPA’s new proposal, which would impose requirements using authority under the Clean Air Act (CAA) and the Resource Conservation and Recovery Act (RCRA).

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The Canadian Environmental Protection Act of 1999 (CEPA) provides a variety of federal environmental protection provisions throughout Canada. The Minister of the Environment and Climate Change (the Minister; who oversees Environment and Climate Change Canada (ECCC), and to which I attribute CEPA authorizations in this note) prepares regulations (including lists of chemicals regulated in different circumstances), and conducts additional planning, regulatory and enforcement activities. In particular, CEPA authorizes the Minister to issue Pollution Prevention Notices (P2 Notices) directing targeted entities to prepare P2 Plans to improve management of any listed “Toxic Substance” in order to reduce environmental impacts. The rest of this note summarizes P2 requirements, which will be revised to conform with CEPA amendments adopted this summer by Bill S-5, the “Strengthening Environmental Protection for a Healthier Canada Act” (S-5), which received Royal Assent on June 13, 2023.

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