U.S. EPA Removes Regulatory Affirmative Defense Provision Against Alleged Violations of Oil and Gas Facility NESHAPs

On October 22, 2024, the U.S. Environmental Protection Agency (EPA) published a final rule removing an affirmative defense from Clean Air Act (CAA) National Emission Standards for Hazardous Air Pollutants (NESHAP) regulations for the Oil and Natural Gas Production Facility and Natural Gas Transmission and Storage Facility Source Categories (Final Rule).[1] Prior to the Final Rule, owners or operators could assert an affirmative defense that alleged NESHAP standard violations were caused by an equipment malfunction.[2] A “malfunction” is defined as any sudden, infrequent, and not reasonably preventable failure of air pollution control and monitoring equipment, process equipment, or a process to operate in a normal or usual manner.[3]

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U.S. EPA Power Plant Effluent Rule Allowed to Go Into Effect

On October 9, 2024, the Eighth Circuit refused to block new U.S. Environmental Protection Agency (EPA) wastewater limits for coal-fired power plants. In Southwestern Electric Power Co., et al v. EPA, et al, multiple states, trade groups, and utility companies challenged EPA’s May 2024 Supplemental Effluent Limitations Guidelines and Standards for the Steam Electric Power Generating Point Source Category (ELG Rule).

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District of North Dakota Halts Bureau of Land Management’s Venting and Flaring Rule

On Thursday, September 12, 2024, Judge Daniel Traynor of the U.S. District Court for the District of North Dakota granted a preliminary injunction sought by North Dakota, Montana, Texas, Wyoming, and Utah (the States) to halt the April 2024 “Waste Prevention, Production Subject to Royalties, and Resource Conservation” rule from the Bureau of Land Management (BLM), which mandates that oil and gas well operators on federal land flare rather than vent excess methane gas. The April 2024 rule revised a 2016 BLM rule that the District of Wyoming vacated in 2020. The States raised a number of challenges to the April 2024 rule, arguing that it exceeded BLM’s statutory authority under, or violated, the Mineral Leasing Act, Federal Oil and Gas Royalty Management Act, Clean Air Act, and Federal Land Policy and Management Act and was otherwise arbitrary and capricious under the Administrative Procedure Act.

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EPA Issues Final Rule for Major Source Reclassification Under Clean Air Act Section 112

On Tuesday, September 10, the U.S. Environmental Protection Agency (EPA) issued a final rule establishing requirements for major sources of hazardous air pollutants — sources that emit or have the potential to emit 10 tons per year of a single hazardous air pollutant or 25 tons per year of a combination of hazardous air pollutants — that reclassify as area sources below these thresholds. Reversing a rule adopted during the Trump administration, the rule provides that sources emitting any of the seven persistent and bioaccumulative hazardous air pollutants listed under Section 112(c)(6) of the Clean Air Act must continue to comply with major source standards even if otherwise reclassified as area sources. As a result, reclassified sources will still be subject to maximum achievable control technology standards rather than less stringent standards applicable to area sources. In so doing, EPA maintains that at least 90% of the cumulative emissions of these pollutants will be subject to National Emission Standards for Hazardous Air Pollutants (NESHAP) regardless of future source reclassifications.

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Recent Developments in U.S. EPA’s Hydrofluorocarbon Phasedown

There have been several recent developments in enforcement, litigation, and regulatory implementation of the U.S. Environmental Protection Agency (EPA) phasedown of hydrofluorocarbons (HFCs).

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National Oceanographic and Atmospheric Administration Appoints Members to New Advisory Committee on Space Commerce

On September 6, 2024, the National Oceanic and Atmospheric Administration (NOAA) Office of Space Commerce announced that it had selected the first 17 individuals to serve on the inaugural Advisory Committee on Excellence in Space (ACES).

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U.S. EPA Announces Fourth Update to Environmental Justice Mapping Tool: EJSCREEN 2.3

On July 9, 2024, the U.S. Environmental Protection Agency (EPA or Agency) announced a fourth update to its environmental justice (EJ) mapping and screening tool, EJSCREEN, under the Biden administration. EPA describes the tool as “a starting point for agency considerations of environmental justice” and generally uses the tool to identify areas that may have higher environmental burdens and inform several Agency functions, including permitting, enforcement, outreach, and compliance.

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Jarkesy’s Potential Implications for EPA Administrative Proceedings

On June 27, 2024, the U.S. Supreme Court decided SEC v. Jarkesy,[1] holding that when the Securities and Exchange Commission (SEC) alleges a defendant has violated securities antifraud provisions and seeks civil penalties, the defendant is entitled to a jury trial in federal court under the Seventh Amendment. The ruling restricts the SEC’s use of its own in-house administrative tribunal with its own administrative law judges (ALJs), which the SEC has historically used to pursue antifraud claims. While the Court’s ruling focuses on the SEC, the principles underlying the decision may be applied more broadly to restrict the ability of other federal agencies, including the Environmental Protection Agency (EPA), to pursue civil penalties via their own administrative proceedings.

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