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. 

In October, the US Occupational Safety and Health Administration (OSHA) and other federal agencies reacted to hurricanes in the Southeast by re-highlighting existing guidance to support preparation for potential hurricanes, and to respond if one occurs. OSHA’s guidance is directed at employers, the National Oceanic and Atmospheric Administration (NOAA) and the Environmental Protection Agency (EPA) provide 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. 

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.

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.

The 2016 amendments to the Toxic Substances Control Act (TSCA) added procedures for the Environmental Protection Agency (EPA) to evaluate risks presented by existing chemicals using the latest scientific information – including information developed after a chemical entered use in the US. Based on these reviews, EPA is to update its regulatory requirements, ranging from labeling-only through use restrictions up to and including bans from further distribution and use. (I summarized these review requirements HERE ).  Beginning in November 2019, EPA regularly announces new chemical reviews, and subsequently the results of these reviews. (I wrote about the first review announcement HERE ). On July 25, 2024 EPA published a formal proposal to review 5 additional chemicals for designation as High-Priority Substance subject to strict controls under TSCA. The rest of this note identifies these proposed chemicals.

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 May 8, 2024, the Environmental Protection Agency (EPA) published rule revisions adding two perfluoro chemicals -- Perfluorooctanoic Acid (PFOA) and Perfluorooctanesulfonic Acid (PFOS) – as hazardous substances under the federal Superfund law (Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)). This listing is the latest regulatory action by EPA tightening controls on per- and poly-fluoroalkyl substances (PFAs); the initiatives are covered under the agency’s “PFAs Strategic Roadmap: EPA’s Commitments to Action 2021—2024,” promulgated in October 2021. The remainder of this note describes the latest action, which finalizes a proposal issued in August 2021 (which I wrote about HERE).

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.