On July 25, California Governor Jerry Brown signed into law Assembly Bill 398, an extension of California’s greenhouse gas (GHG) cap-and-trade program through 2030. Eight days after being introduced, AB 398 passed the California Legislature with a two-thirds majority vote of 55-22 in the Assembly and 28-12 in the Senate. AB 398 implements California’s goal of reducing GHG emissions to 40 percent below 1990 levels by 2030, which was codified in SB 32, a bill signed by Governor Brown last year.
California’s Supreme Court recently upheld the State’s greenhouse gas (GHG) cap-and-trade auction program. In a June 28, 2017 order, the Court denied petitions to review a lower court’s ruling that affirmed the program’s legality. Filed by a coalition of industry groups, including the California Chamber, the petitions had alleged that the cap-and-trade program constitutes an illegal tax under Proposition 13 because the law authorizing it, AB 32, was not passed by a two-thirds vote.
The DC Circuit issued a decision on July 3, 2017, vacating the 90-day stay of the Oil & Gas Industry NSPS rules – the first rules to regulate methane from that sector. In a June 5 Federal Register notice, the new Trump EPA stayed the rules pending reconsideration under Section 307(d) of the Clean Air Act. Environmental Groups filed an emergency challenge to the stay, asking for either a stay of that decision or summary vacatur of it. Issuing its decision less than a month later, the court vacated EPA’s stay of the rules.
Yesterday, the United States Court of Appeals for the Fourth Circuit (“Fourth Circuit” or “the court”) vacated a federal district court’s order requiring EPA to account for the economic impacts of Clean Air Act (“CAA”) regulations. This decision stems from a suit filed by coal companies claiming that EPA had failed to perform a non-discretionary duty by completing continuous evaluations of job losses and plant closures resulting from CAA implementation or enforcement as required under Section 321 of the CAA. In a strongly worded opinion, the district court ordered EPA to come into compliance with the requirements of Section 321 by July 2017, an order that EPA subsequently appealed to the Fourth Circuit.
Yesterday, June 6, 2017, EPA Administrator Scott Pruitt announced a one-year delay of EPA’s final designation of areas under the 2015 ozone standard. The 2015 standard was issued on October 26, 2015 and tightened the existing 2008 standard from 75 ppb to 70 ppb. In general, EPA is required to issue designations within two years of publication of a new standard. Designations for the 2015 standard were originally due by this October, and EPA would have been required to preview for the states its intended designations at least 120 days in advance of the October deadline – by this August. Continue Reading EPA Extends Deadline for Final Area Designations under the 2015 Ozone NAAQS
In the Rose Garden of the White House, President Trump fulfilled a key campaign promise today by confirming that the United States will begin withdrawing from the Paris Climate Change Agreement (“Agreement”). President Trump cited the Agreement’s potential financial and economic burdens as a key reason for the withdrawal. Continue Reading U.S. to Withdraw from Paris Climate Deal
Today, the U.S. Court of Appeals for the District of Columbia Circuit issued orders holding litigation challenging two major climate regulations in abeyance—the “Clean Power Plan” and the “Carbon Pollution Standards” for new and modified electric generating units. Both rules were critical components of the Obama Administration’s climate change agenda by requiring steep cuts in CO2 emissions from existing and new power plants, respectively. In the orders, the court granted EPA’s motion to hold the case in abeyance, but only for 60 days. The court also ordered EPA to file status reports every 30 days. The court further directed the parties to submit supplemental briefs by May 15th to address whether the cases should be remanded to EPA instead of held in abeyance.
The orders can be found at the following links: Clean Power Plan & Carbon Pollution Standards. For more information or questions on these cases, please contact Peter Glaser, Margaret Campbell, or Mack McGuffey.
On April 24th, the U.S. Court of Appeals for the District of Columbia Circuit issued an order indefinitely delaying oral argument and holding in abeyance litigation over EPA’s 2015 Startup, Shutdown and Malfunction (SSM) Rule. The order comes in response to EPA’s request for a continuance to allow it to review the SSM Rule for possible modification or repeal. EPA must file status reports on its review of the SSM Rule at 90-day intervals beginning 90 days from the date of the order. Within 30 days of EPA informing the court of what action it has or will take with respect to the rule, parties to the litigation must file motions to govern future proceedings.
In a split decision, a California appellate panel recently affirmed a lower court’s decision upholding the state’s greenhouse gas cap-and-trade program. Challengers, including the California Chamber of Commerce, the National Association of Manufacturers, and the Pacific Legal Foundation, argued that: (1) the California Air Resources Board (CARB) acted outside of its authority when it created a cap-and-trade program that included an auction of emission allowances, and (2) the revenue generated from the auction sales constitutes an impermissible tax. California’s Proposition 13 requires taxes to be approved by a two-thirds vote of each house of the legislature.
In an April 18th letter to petitioners who requested reconsideration of EPA’s Oil and Natural Gas Sector: Emission Standards for New, Reconstructed and Modified Sources Rule, EPA Administrator Scott Pruitt announced the agency’s intent to convene a proceeding for reconsideration of the rule’s fugitive emissions monitoring requirements. In its current form, the rule imposes limits on methane, volatile organic compounds and toxic air emissions from new, modified and reconstructed sources in the oil and natural gas industry. EPA also plans to issue a 90-day stay of the compliance date for the fugitive emissions monitoring requirements.