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…)
EPA Proposes “Good Neighbor” Plan Addressing Regional Ozone Transport for the 2015 Ozone National Ambient Air Quality Standard
On April 6, 2022, the U.S. Environmental Protection Agency (EPA) is scheduled to publish its proposed Federal Implementation Plan Addressing Ozone Transport for the 2015 Ozone National Ambient Air Quality Standards (NAAQS), otherwise known as the latest iteration of EPA’s Cross-State Air Pollution Rule or “Good Neighbor” Plan. The proposal would subject 26 upwind states to the “good neighbor” or “interstate transport” provision of the Clean Air Act because EPA is proposing to find that nitrogen oxide (NOx) emissions, which are a precursor to ozone formation, from the upwind states significantly contribute to downwind states’ attaining and maintaining the 2015 ozone NAAQS.
Head of DOJ Environmental Division Announces Enforcement Priorities
Todd Kim, Assistant Attorney General at the U.S. Department of Justice (DOJ) Environment and Natural Resources Division (ENRD), delivered remarks at the American Bar Association’s National Environmental Enforcement Conference on December 14, 2021. He provided insight into what DOJ plans to prioritize in environmental enforcement, centered on criminal enforcement, climate change, and environmental justice.
Kim emphasized that the purpose of enforcement is to ensure that businesses are properly incentivized to comply with the law through deterrence and to provide a level playing field, while protecting public health and the environment. He noted that DOJ has prioritized fighting corporate crime and is revising applicable polices, so ENRD will consider pursuing potential environmental and non-environmental crimes, as well as a business’s environmental and non-environmental track record in prosecution decisions.
Kim focused on methods of sector-wide enforcement, citing the Petroleum Refinery Initiative that involved settlements covering 112 refineries in 37 states since 2000. Kim also expressed an interest in more penetrating identification of all involved parties within a business, as well as in the full supply chain, where relevant. This focus could be especially impactful for importers of chemicals, pesticides, or wood products.
With these various tools in mind, Kim cited climate change and environmental justice as the two highest priority issues. For climate change, he indicated greater enforcement for air emissions from petrochemical plants and from facilities with refrigeration systems. For environmental justice, he provided a general assurance that ENRD is paying greater attention to potential violations in communities of color and low-income communities that may be disproportionately burdened by environmental hazards and harms.
Key Takeaways: People Places Planet: The Enforcement Angle Podcast Featuring SEC’s Kelly Gibson
This Sidley Update provides key takeaways from the most recent “The Enforcement Angle” episode as part of the Environmental Law Institute’s People Places Planet podcast. The episode is hosted by Justin Savage, partner and global co-leader of Sidley’s Environmental practice, and Ranah Esmaili, who recently joined the firm as a partner in the global Securities Enforcement and Regulatory practice from the SEC’s Asset Management Unit within the Division of Enforcement. Justin and Ranah talk with Kelly Gibson, director of the Philadelphia Regional Office for the SEC and leader of the Climate and ESG Task Force within the SEC’s Division of Enforcement.
Read more here.
