Regulated Entities in California Communities May Face More Investigation and Enforcement by California Air Resources Board
Regulated entities in designated communities — compiled and termed the “Consistently Nominated AB 617 Communities list” — will want to pay close attention to updates from the California Air Resources Board (CARB) on its Community Protection Program Blueprint 2.0. Currently, communities in the Bay Area, Imperial, San Joaquin Valley, Sacramento Metropolitan, and South Coast air districts are on the list. As part of a mandate to reduce toxic air contaminant and criteria pollutant emissions in communities that have a high cumulative exposure burden, CARB is updating the Program Blueprint 2.0 as required under Assembly Bill 617, adopted by the California Legislature July 26, 2017. CARB’s present revisions may result in increased investigation and enforcement of regulated entities in these communities.
Spring 2023 Agenda Previews Continued U.S. Significant Environmental Regulatory Action
On June 13, 2023, the Biden administration released the 2023 Spring Unified Agenda of Regulatory and Deregulatory Actions (Agenda). The Agenda lists federal agencies’ planned “short-term” regulatory actions to be taken over the next 12 months and “long-term” actions under development. The dates listed in the Agenda are based on publication dates in the Federal Register. Stakeholders should take note, as the Agenda provides a window into the administration’s priorities and strategies:
California Senator Reignites Corporate Greenhouse Gas Emissions Disclosure Bill
A new bill introduced in the California legislature tees up corporate disclosure legislation that narrowly failed to pass the State Assembly during last year’s term. The bill would impose broad greenhouse gas (GHG) reporting requirements on large businesses doing business in California and could effectively set a national standard for these businesses to report GHG emissions.
California Air Resources Board Set to Finalize Ambitious Climate Plan
On November 16, 2022, the California Air Resources Board (CARB) released an updated version of its 2022 Scoping Plan for Achieving Carbon Neutrality. The plan sets ambitious goals for achieving carbon neutrality in California by 2045. Despite the plan’s being only a guiding document, it will likely lead to other agency actions that set stringent requirements related to reducing greenhouse gas emissions.
Best Practices For Auto Boards During Industry Revolution
The Nikola case stands at the intersection of several emerging risk areas in the automotive industry. For example, as regulators in the U.S. and European Union continue to ratchet up the pressure on climate change goals, and environmental, social and corporate governance, boards need to be extra careful about their companies’ commitments to going carbon neutral and the efficacy of electric vehicles.
That means putting clear plans and metrics in place to ensure appropriate follow-through and effective communications with investors so that they are well-informed about the caveats, risks and limitations.
