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Environmental and Energy Brief
Perspectives for the Environmental and Energy Community
Federal Court Upholds U.S. Department of Labor ESG Rule
On September 21, 2023, Judge Matthew J. Kacsmaryk of the U.S. District Court of the Northern District of Texas rejected a challenge by 26 states and upheld the U.S. Department of Labor (DOL) rule that permits fiduciaries of plans subject to the Employee Retirement Income Security Act of 1974 (ERISA) to consider environmental, social, or governance (ESG) considerations under certain circumstances when making investment decisions. By upholding the rule, the court rejected the states’ contention that by allowing ESG considerations, financial interests would be subordinate to nonpecuniary interests. Stakeholders interested in ESG should continue to track this ruling, which may be appealed.
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Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Rob Abrams
Elizabeth Hardcastle
Washington, D.C.
ehardcastle@sidley.com
Robert P. Hardy
Christian E. Pilhofer
Chicago
cpilhofer@sidley.com
Beth J. Dickstein
Chicago
bdickstein@sidley.com
EPA Proposes Stricter Air Pollution Limits on Reclassified Area Sources
On September 21, 2023, the U.S. Environmental Protection Agency (EPA) published a notice of a proposed rule, “Review of Final Rule Reclassification of Major Sources as Area Sources Under Section 112.” The proposal adds requirements for regulated sources of hazardous air pollutants (HAPs) to reclassify from major source status to area source status under the National Emission Standards for Hazardous Air Pollutants (NESHAPs) program. Stakeholders who qualified under the revised policy adopted by the Trump administration should particularly take note of this further change by the Biden administration’s EPA. Comments are due by November 13, 2023.
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Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Rob Abrams
Jim Wedeking
Washington, D.C.
jwedeking@sidley.com
EPA Issues Amendment to Waters of the U.S. Rule Following Sackett Decision
The U.S. Environmental Protection Agency (EPA) and the Army Corps of Engineers (Corps), on August 29, 2023, issued a direct final rule amending the scope of “Waters of the United States” as defined in Clean Water Act (CWA) regulations. The final rule implements the U.S. Supreme Court’s recent decision in Sackett v. EPA, in which the Court held that only wetlands adjacent to Waters of the U.S. with a continuous surface connection to relatively permanent waters adjoining interstate navigable waters are to be regulated as jurisdictional waters.
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Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Maureen F. Gorsen
Century City
maureen.gorsen@sidley.com
Peter Whitfield
Washington, D.C.
pwhitfield@sidley.com
Caleb J. Bowers
Los Angeles
cbowers@sidley.com
California Air Resources Board Issues Clean Truck Check Implementation Guidance
On August 23, 2023, the California Air Resources Board (CARB) published additional guidance for the implementation of Clean Truck Check requirements under its Heavy Duty Inspection/Maintenance regulation. The requirements build on implementation guidance issued in June and set deadlines to achieve compliance with certain requirements beginning by December 31, 2023. Fleet owners and operators, and those contracting or brokering loads with heavy-duty trucks, should take note of CARB’s implementation timeline and prepare to comply with reporting and fee payment requirements beginning in the fourth quarter of 2023.
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Maureen F. Gorsen
Century City
maureen.gorsen@sidley.com
Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Caleb J. Bowers
Los Angeles
cbowers@sidley.com
California Air Resources Board Revisits Advanced Clean Fleets Rule Through Formation of Truck Regulation Advisory Committee
In April 2023, the California Air Resources Board (CARB) passed its Advanced Clean Fleets (ACF) rule, which will require California medium- and heavy-duty truck and bus fleet owners with over $50 million in annual revenue to transition to zero emission vehicles through a phaseout of their existing internal combustion engine–powered vehicles by 2045. On July 26, 2023, while the ACF rule was pending with the California Office of Administrative Law for a final determination prior to release, CARB withdrew the regulatory package with the intention of resubmitting it “at a subsequent date.” CARB is now forming a Truck Regulation Advisory Committee and, on August 22, 2023, will host a public meeting to discuss and solicit feedback on future efforts to implement the ACF rule. Instructions for participation in this public meeting can be found here.
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Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Maureen F. Gorsen
Century City
maureen.gorsen@sidley.com
Aaron L. Flyer
Caleb J. Bowers
Los Angeles
cbowers@sidley.com
Marie E.A. Allison
U.S. EPA Memo Offers Direction on Lithium Battery Recycling—Essential to the Future Supply Chain for Battery Electric Vehicles
Lithium-ion batteries are commonly used in a wide variety of applications, from medical devices to laptops — and now, increasingly, in electric vehicles (EVs). With the market for personal and commercial EVs growing, it is essential for U.S. manufacturers to have a secure, reliable supply chain of the critical minerals needed to produce EV batteries, including lithium, cobalt, nickel, and copper. Indeed, a recent study highlights the growing demand for these minerals — and the challenges the U.S. faces to meet this demand from mined sources.
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Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Drew Langan
Washington, D.C.
dlangan@sidley.com
Fourth Circuit Applies Major Question in Shrimping Clean Water Act Case
On Monday, the U.S. Court of Appeals for the Fourth Circuit affirmed a ruling by the U.S. District Court for the District of South Carolina finding that shrimping trawlers that disturb ocean floor sediment and discard other fish and marine organisms, or “bycatch,” after extracting shrimp from their nets are not discharging a pollutant under the Clean Water Act (Act). In so doing, the court made clear that neither discarding bycatch nor kicking up sediment already on the ocean floor constitutes the discharge of a pollutant or dredge or fill material that would otherwise require a permit by the Act.
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Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Aaron L. Flyer
Joint Office of Energy and Transportation Names Electric Vehicle Working Group Members
On August 3, 2023, the Joint Office of Energy and Transportation — created through the Bipartisan Infrastructure Law to facilitate collaboration between the U.S. Departments of Energy (DOE) and Transportation (DOT) — officially announced the members of its Electric Vehicle (EV) Working Group, an independent advisory board. Parties interested in the growth of EVs in the United States should take note of the group, which will coordinate and consult on the development, adoption, and integration of EVs into the transportation and energy systems of the United States.
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Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Rose Quam-Wickham
Washington, D.C.
rquamwickham@sidley.com
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Samuel B. Boxerman
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