Extensive Climate Disclosure Requirements Proposed for Federal Contractors
On November 10, 2022, the Federal Acquisition Regulatory Council, composed of the Department of Defense, the General Services Administration, the National Aeronautics and Space Administration, and chaired by the Office of Federal Procurement Policy in the Office of Management and Budget, issued a proposed rule that would require certain federal contractors to disclose climate-related information to the System for Award Management (SAM) and, in certain instances, make such information publicly available on its website. (more…)
Energy Companies Petition U.S. Supreme Court to Review Remand of Climate Change Litigation to State Court
On October 14, 2022, BP, Chevron, ExxonMobil, and other major energy companies petitioned the U.S. Supreme Court to review a decision by the Fourth Circuit Court of Appeals to send a climate change lawsuit back to state court (the Petition). In the underlying lawsuit, the City of Baltimore is seeking climate-change-related infrastructure damages for the defendants’ alleged deception of consumers and the public about climate change. The defendants previously removed the case to federal court, but the District Court for the District of Maryland remanded the case to state court—a decision the Fourth Circuit later upheld. (more…)
IRA-Driven Carbon Capture Needs Strategic Approach
Sidley Austin lawyers say that developers should proactively engage agencies in order to effectively leverage Inflation Reduction Act tax credits and federal funds for carbon capture and sequestration projects. The permitting and approval process is ripe for reform, they say.
United States Ratifies the Montreal Protocol’s Kigali Amendment Six Years After Amendment’s Introduction
On September 21, 2022, the U.S. Senate voted to ratify the Kigali Amendment, an amendment to the Montreal Protocol that addresses hydrofluorocarbons (HFCs), six years after the Kigali Amendment was officially adopted at the 28th Meeting of the Parties to the Montreal Protocol on October 15, 2016, in Kigali, Rwanda. While the Montreal Protocol originally sought only to phase out the consumption and production of ozone-depleting substances chlorofluorocarbons and hydrochlorofluorocarbons, the Kigali Amendment established plans to reduce the production and consumption of HFCs — greenhouse gases with high global warming potential — by more than 80% over the next few decades. (more…)
How the Supreme Court’s EPA Ruling Complicates Climate Action and What Companies Can Do
The Supreme Court’s recent decision in West Virginia v. EPA clips the EPA’s ability to address climate change and may fundamentally alter the administrative authority of other federal agencies to tackle big problems.
As state and local governments find ways to fill the void, shareholders are demanding a response from Corporate America. How seismic is the ruling? Will it doom our efforts to address climate change? And what impact will the enactment of the Inflation Reduction Act have on the ruling? Join The Sidley Podcast host and Sidley partner, Sam Gandhi, as he speaks with two of the firm’s thought leaders on these subjects — Justin Savage and Simone Jones.
EU Corporate Sustainability Reporting Directive — What Do UK- and U.S.- Headquartered Companies Need to Know?
Non–EU companies with a significant presence in the EU or with securities listed on an EU-regulated market will become subject to new EU rules on corporate sustainability disclosures (the Corporate Sustainability Reporting Directive, or CSRD). The text of the CSRD has now been agreed by the EU institutions.1 CSRD is expected to become EU law later this year. Once implemented into the national law of EU member states, its requirements will be phased in from 2024.
FERC Issues 2022 Summer Energy Market and Reliability Assessment, Warns Extreme Weather Could Pose Operational Challenges
On May 19, 2022, the Federal Energy Regulatory Commission (FERC) staff issued its 2022 Summer Assessment for energy markets and electric reliability. The report finds that U.S. electric markets are expected to have sufficient capacity and reserves to maintain reliable operations under normal conditions but warns that higher than average temperatures are expected for the coming summer.
The 2022 Summer Assessment also notes the following: (more…)
China Plans To Adopt ESG-Disclosure Framework Based on International Sustainability Standards Board Standards
In speaking at the recent Boao Asia Forum Annual Conference, Vice Chairman Fang Xinghai of the China Securities Regulatory Commission (CSRC) announced that the CSRC is preparing new reporting standards and would adopt the new disclosure rules prepared by the International Sustainability Standards Board (ISSB). (more…)
SEC Brings First Enforcement Action Over ESG Disclosures
In late April, the U.S. Securities and Exchange Commission (SEC) brought its first enforcement action over alleged false and misleading claims made in a mining company’s environmental, social, and governance (ESG) disclosures. The complaint relates to the 2019 collapse of the company’s dam that injured hundreds and released 12 million tons of mining waste into the environment. (more…)
Council on Environmental Quality Partially Restores National Environmental Policy Act Provisions
The U.S. Council on Environmental Quality (CEQ) published a Final Rule regarding implementing regulations of the National Environmental Policy Act (NEPA) on Wednesday, April 20. As anticipated, the CEQ’s final version is nearly identical to the earlier Proposed Rule and revises three separate NEPA provisions that CEQ identified as posing significant near-term interpretation or implementation challenges for federal agencies. These three provisions include purpose and need, 40 C.F.R. § 1502.13; agency NEPA procedures, 40 C.F.R. § 1507.3; and the definition of “effects” or “impacts.” Ultimately, CEQ’s Final Rule abandons revisions the agency made to NEPA regulations in 2020 and returns certain aspects of NEPA review to the former approach. CEQ noted that this revision is the first of two phases, so additional NEPA regulatory revisions are expected later this year. (more…)
