Audit, Compliance and Risk Blog

On May 28, the Biden Administration issued its budget proposal for federal Fiscal Year (FY) 2022 (October 1, 2021 through September 30, 2022). As anticipated based on statements from Mr. Biden while a candidate and since his inauguration, the proposal includes many dramatic changes from former president Trump’s proposed budgets. The administration proposes a 21.6 % ($2 billion) increase in the budget for the Environmental Protection Agency (EPA) budget above EPA’s adopted 2021 budget of $9.2 billion. Roughly 90 percent of this increase is related to climate controls and environmental justice, broadly defined.

The federal Clean Air Act (CAA) requires the U.S. Environmental Protection Agency (EPA) to establish and maintain national air quality standards, including criteria for permits and other authorizations issued to (potential) emission sources by state or local air quality management agencies (with EPA itself as the default regulator if other agencies fail). Forms of authorization include permits for specified stationary emission sources, and equipment/emission standards for mobile sources and some components of stationary sources. Almost all requirements apply to “direct sources” – the equipment or activity that directly produces emissions.

Summer has arrived, bringing record-breaking heat to parts of North America. It's time to remember that outdoor work in the summer sun can lead to heat illness, as can indoor work in spaces that aren’t sufficiently insulated or cooled.

In the United States, the federal Occupational Safety and Health Administration (OSHA) and most state OSH programs provide guidance to employers and their workers. California's Division of Occupational Safety and Health (Cal/OSHA) administers detailed regulatory requirements for outdoor first promulgated in 2005, and Washington has enforced state-level rules since 2007. Canadian occupational health and safety agencies also recognize “thermal stress” as a workplace hazard, with attention to both heat and cold. California has been working on standards for indoor workplaces since 2017.

If you have outdoor workers in California you must comply with the following requirements, while if you're anywhere else you should at least consider them. 

On April 29, the Ninth Circuit (federal) Court of Appeals issued an important ruling on national pesticide regulation, directed at the controversial organophosphate insecticide chlorpyrifos. The order directs the Environmental Protection Agency (EPA) to act within 60 days to either announce an enforceable safe exposure level for use, or to ban the pesticide. The case, League of United Latin American Citizens (LULAC) v. Regan, interprets and applies the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), and related authority under the Federal Food, Drug, and Cosmetic Act (FFDCA). This decision is the latest step in controversies dating to 2006, involving years of EPA inaction spanning the Obama and Trump administrations.

Within the US federal government, the Department of Justice (DOJ) enforces many civil and criminal laws directly, and also provides the attorneys who represent federal agencies in enforcement cases. For example, DOJ’s “US attorneys” represent the Environmental Protection Agency (EPA) in cases under the Clean Air Act, Clean Water Act, etc. In doing so, DOJ provides those attorneys with departmental policies to guide their activities – as a practical matter, DOJ policies supersede any conflicting client-agency policies. It’s therefore important, that since the Biden administration assumed office, Attorney General Garland and his deputies have moved aggressively to review and revise departmental policies inherited from the Trump administration. The remainder of this note discusses some of these changes.

On April 30, 2021, the US Environmental Protection Agency (EPA) proposed rules to phase down production and consumption of specified hydrochlorofluorocarbons (HFCs), consistent with directives included in the 2016 Kigali Amendment to the United Nations-sponsored Montreal Protocol on Substances that Deplete the Ozone Layer. These rules were authorized by the massive coronavirus relief bill (American Innovation and Manufacturing Act of 2020 (AIM Act)) enacted in December 2020, which included dozens of unrelated provisions within its 5,593 pages.

Effective March 1, 2021, the Environmental Protection Agency (EPA) has issued a revised “National Pollutant Discharge Elimination System (NPDES) Multi-Sector General Permit for Discharges from industrial Activities” (MSGP).” This new 2021 MSGP replaces EPA’s 2015 MSGP (which expired in 2020 but was continued by administrative fiat). Compliance begins May 30, 2021 for facilities that have been subject to the 2015 MSGP. Even though EPA's direct permit authority applies only in limited parts of the country, the new MSGP provides a reminder to organizations nationwide that stormwater management efforts need to be thorough and up-to-date.

As vaccinations begin to bring the COVID-19 pandemic under control, more employers are moving to reoccupy and reopen workplace areas, many of which have been closed for months. During those times, residual moisture from reduced space conditioning or under-maintained facilities may have increased the possibility of mold infestations, which might endanger people returning to your workplace. This risk makes it a good time to review basic approaches to mold remediation. The remainder of this note reviews guidance from the US Centers for Disease Control and Prevention (CDC), Occupational Safety and Health Administration (OSHA), and Environmental Protection Agency (EPA).

The Clean Air Act (CAA) authorizes the Environmental Protection Agency (EPA) to set emission standards for motor vehicles and engines. Although the primary focus is on Corporate Average Fuel Economy (CAFÉ) standards for new vehicles, set jointly by EPA and the Department of Transportation’s (DOT’s) National Highway Traffic Safety Administration (NHTSA) (I’ve discussed ongoing disputes about the latest CAFÉ standards several times, including HERE), EPA and states also have authority over post-sale “aftermarket” equipment and modifications to vehicles.