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Environmental and Energy Brief
Perspectives for the Environmental and Energy Community
Companies With Environmental-Related Concerns Should Pay Attention to DOJ’s Voluntary Self-Disclosure Policy
On February 22, 2023, the U.S. Department of Justice (DOJ) announced the formalization of its voluntary self-disclosure policy for corporate criminal enforcement (VSD Policy) for all U.S. Attorney’s Offices (USAO). The VSD Policy details the circumstances under which a disclosure will qualify as a voluntary self-disclosure under the policy and, in turn, provides incentives to companies to make eligible self-disclosures. One such incentive — provided that the company makes an eligible self-disclosure, fully cooperates, and timely and appropriately remediates the criminal conduct — is that the USAO will not seek a guilty plea unless there are aggravating factors present. This is the first time DOJ has issued nationwide standards for voluntary self-disclosures for corporate criminal enforcement.
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Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Rose Quam-Wickham
Washington, D.C.
rquamwickham@sidley.com
DOE Announces Over $4B in Energy Transition Project Tax Credit and Grant Programs
The U.S. Department of Energy (DOE), alongside the Internal Revenue Service (IRS) and Department of the Treasury, has announced plans to implement programs funded by the Inflation Reduction Act and the Bipartisan Infrastructure Law: the Low-Income Communities Bonus Credit Program (48(e)), the Qualifying Advanced Energy Project Credit (48C)), and the Advanced Energy Manufacturing and Recycling Grant Program. Together, these programs will make available more than $4 billion in federal tax credits and grants for energy transition projects in an effort to “accelerate domestic clean energy manufacturing and ensure traditionally underserved communities benefit from clean energy technologies.”
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Curtis Hart
Washington, D.C.
chart@sidley.com
Sarah Tucker
Washington, D.C.
stucker@sidley.com
California Agency Releases Roadmap for Phaseout of High-Risk Pesticides
The California Department of Pesticides Regulation (DPR) recently released a “roadmap” for the state to fulfill two key goals by 2050: transition to sustainable pesticide management (SPM) and elimination of the use of “high-risk” pesticides. While the roadmap is aspirational and does not provide specific rules at this time, the roadmap goals were developed by a multiagency workgroup in coordination with various stakeholders. It is expected that proposed rules will be forthcoming from DPR and other state agencies as these agencies move toward achieving the roadmap goals.
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Caleb J. Bowers
Los Angeles
cbowers@sidley.com
Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Maureen F. Gorsen
Century City
maureen.gorsen@sidley.com
Andrew R. Stewart
Washington, D.C.
satewart@sidley.com
FERC Approves New Extreme Cold Weather Reliability Standards
On February 16, 2023, the U.S. Federal Energy Regulatory Commission (FERC) approved two new North American Electric Reliability Corporation (NERC) Reliability Standards: EOP-011-3 (Emergency Operations) and EOP-012-01 (Extreme Cold Weather Preparedness and Operations). The new standards stem from FERC and NERC’s joint inquiry into Winter Storm Uri — the February 2021 winter storm event that led to the largest controlled firm load shed event in U.S. history, with over 4.5 million people losing power and at least 210 people losing their lives. The joint inquiry resulted in the issuance of a November 2021 report that included recommendations for NERC reliability standard enhancements to improve extreme cold weather operations, preparedness, and coordination. The November 2021 report found that the bulk power system “cannot operate reliability without adequate generation.”[1]
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Grace Dickson Gerbas
Dallas
gdicksongerbas@sidley.com
Christopher J. Polito
Washington, D.C.
cpolito@sidley.com
Sarah Tucker
Washington, D.C.
stucker@sidley.com
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.
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Caleb J. Bowers
Los Angeles
cbowers@sidley.com
Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Heather M. Palmer
Houston
hpalmer@sidley.com
Maureen F. Gorsen
Century City
maureen.gorsen@sidley.com
Sonia Gupta Barros
Washington, D.C.
sbarros@sidley.com
Amidst Recent Attacks, U.S. Regulators Emphasize Grid Security
A series of threats to the U.S. power grid have elevated physical grid security as a key concern for federal energy regulators. On December 15, 2022, the Federal Energy Regulatory Commission (FERC) ordered the North American Electric Reliability Corporation (NERC) to reassess its existing security rules in light of recent grid attacks.
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Karl Pielmeier III
Sarah Tucker
Washington, D.C.
stucker@sidley.com
The Enforcement Angle: The New Mexico Environment Department
Join Sidley for the Environmental Law Institute’s People Places Planet podcast series, “The Enforcement Angle.” Through this series, Sidley partners discuss state and federal enforcement of environmental laws and regulations with senior enforcement officials and thought leaders on environmental enforcement in the United States and globally. The featured guests offer their insights into the challenging environmental issues facing corporations today.
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Justin A. Savage
Washington, D.C.
jsavage@sidley.com
EPA Acts on Interstate Transport Requirements for Ozone Under State Implementation Plans
On Tuesday, January 31, EPA Administrator Michael Regan finalized EPA’s disapproval of State Implementation Plan (SIP) submissions for 19 states regarding the interstate transport of ozone under the 2015 eight-hour ozone national ambient air quality standards (NAAQS) of 70 parts per billion. Under the Clean Air Act, states were required to submit SIPs for the 2015 eight-hour ozone standard by October 1, 2018. The Clean Air Act required the SIPs to include “good neighbor” provisions, which prohibit emissions that either significantly contribute to nonattainment in a neighboring state or interfere with maintenance of the NAAQS in a neighboring state.
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Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Aaron L. Flyer
Brittany A. Bolen
Washington, D.C.
bbolen@sidley.com
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Samuel B. Boxerman
sboxerman@sidley.com
Keturah A. Brown
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Grace Dickson Gerbas
gdicksongerbas@sidley.com
Terence T. Healey
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Kenneth W. Irvin
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Christopher J. Polito
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Casey Khan
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Michael L. Lisak
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Brittany A. Bolen
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Brooklyn Hildebrandt
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Nicole E. Noëlliste
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Hannah Posen
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Jack Raffetto
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