On October 7, the Council on Environmental Quality (CEQ) issued a Notice of Proposed Rulemaking (NOPR) to revise its regulations implementing the National Environmental Policy Act (NEPA), which requires federal agencies to take a “hard look” at the environmental impacts of certain proposed projects, but does not mandate any particular outcome. The NOPR is focused on revisions the July 2020 rulemaking completed by the Trump administration, which was the first significant overhaul of the NEPA regulations since their initial promulgation in 1978. The Trump rulemaking included provisions to streamline the NEPA review process, as well as substantive changes to the scope of the review. CEQ’s NOPR follows an announcement early in 2021 by the incoming Biden administration that it planned to review the July 2020 rulemaking. In the NOPR, the Biden administration outlines the aspects of the rule it plans to change: the purpose and need of a proposed agency action, agency procedures for implementing CEQ’s regulations, and the definition of “effects” of a proposed action.
Andrea Wortzel
Andrea focuses her practice on water quantity and water quality issues, including water rights, water supply planning, and water withdrawal permitting, as well as discharge permitting and TMDL development and implementation. She coordinates a growing and influential stakeholder group focused on water supply issues in the Commonwealth of Virginia. Beyond her water practice, Andrea advises clients on endangered species issues, landfill permitting and compliance, waste permitting, environmental compliance and audit programs and environmental enforcement defense. Andrea also regularly counsels clients on legislative and regulatory strategies to promote her clients’ objectives.
Troutman Pepper Environmental Attorneys Author Articles in ABA’s Natural Resources & Environment Summer 2021 Edition
In their article “Are We There Yet? The Challenges of Litigating Clean Air Act Rules,” Mack McGuffey and Melissa Horne discuss the difficulties of getting final answers from the courts in the increasingly polarized political environment of Clean Air Act rulemaking.
Virginia Initiates Regulatory Process to Consider Environmental Justice in Air Permitting Actions
The Virginia Code requires a site suitability determination for all projects seeking air emission permits. Va. Code 10.1-1307.E. While this provision has been in place for decades, it has never received significant attention, and has historically been interpreted to require compliance with local zoning laws. In 2020, however, environmental groups used the law to successfully challenge a minor new source permit for a compressor station associated with an interstate natural gas pipeline. They argued that the site suitability analysis undertaken by the Virginia Department of Environmental Quality (DEQ) did not adequately address or consider environmental justice concerns, and the Fourth Circuit Court of Appeals agreed. Friends of Buckingham v. State Air Pollution Control Bd., 947 F. 3d 68 (4th Cir. 2020).
The Fourth Circuit Weighs In on the Interpretation of CWA Section 401
There has been a longstanding debate about how to apply the one-year time limit on Clean Water Act Section 401 certification decisions. The D.C. Circuit court in Hoopa Valley Tribe v. FERC, 913 F.3d 1099 (D.C. Cir. 2019) established a bright-line standard that a 401 certification must be issued or denied within one year of receipt of application, or the certification opportunity is waived. States cannot engage in actions to extend this deadline by requiring an applicant to withdraw and refile their application or by finding an application incomplete. This bright-line test was reinforced by the Second Circuit’s more recent decision in New York State Department of Environmental Conservation v. FERC, 991 F.3d 439 (2d Cir. 2021). This interpretation was also codified in EPA’s 2020 Clean Water Act Section 401 Certification Rule. See 85 Fed. Reg. 42210 (July 13, 2020). However, on July 2, the Fourth Circuit offered a different interpretation of Section 401 in its decision in N.C. Department of Environmental Quality v. FERC, No. 20-1655 (McMahan Hydro).
EPA Announces Reconsideration and Potential Revision of the Clean Water Act Section 401 Final Rule
On May 27, the Environmental Protection Agency (EPA) announced its intent to reconsider the Clean Water Act (CWA) Section 401 final rule issued by the Trump administration in June 2020 (Final Rule).
FERC Increases Focus on Environmental Justice
Addressing environmental justice (EJ) has been an immediate priority for the Biden administration. Within a week of taking the oath of office, President Biden issued a sweeping executive order with a number of EJ initiatives, including creation of a White House Environmental Justice Interagency Council consisting of the heads of each Cabinet-level and independent federal agency. The order also directed federal agencies to “make achieving environmental justice part of their missions” through development of programs and policies aimed at addressing disproportionately high adverse environmental impacts on disadvantaged communities.
Washington Adopts Two Ambitious Environmental Justice Laws
Last week, Washington became the latest state to address environmental justice (EJ) through legislation by adopting the Healthy Environment for All (HEAL) Act and the Climate Commitment Act into law. The HEAL Act, which is the more comprehensive of the two passed laws, was based on recommendations of a state-funded environmental task force issued in fall of 2020 and seeks to remedy the effects of past disparate treatment of vulnerable communities. The Climate Commitment Act is a more targeted law that establishes a greenhouse gas (GHG) emissions cap-and-invest program with the goal of reducing GHG and criteria pollutants in overburdened communities highly impacted by air pollution. Although the laws become effective on July 25, their major EJ-related requirements take effect at later dates.
Environmental Justice to Play Significant Role in Air Permitting Process Under Biden Administration
Although environmental justice (EJ) is not a new concept in the context of air permitting, the Biden administration’s increased focus on identifying and addressing disproportionate environmental impacts on low-income neighborhoods and communities of color is likely to spur an increase in EJ claims being raised as part of the public review process for both new air permits and permit renewals. Many, if not most, states do not have statutory or regulatory requirements dictating how EJ concerns must be considered in the air permitting context. Similarly, while there is a patchwork of EJ requirements applicable to federal agency actions, most are imposed by executive order and are not prescriptive in nature, meaning that there is no robust legal framework for considering EJ concerns in the air permitting context at the federal level either. Accordingly, while potential permittees and current permit holders seeking to renew or modify their air permits should be aware that there is an increased likelihood that EJ concerns may be raised by third parties or permitting agencies, there is little certainty about how these concerns will be implemented in the course of permit issuance.
Second Circuit Enforces the Clean Water Act Section 401 One-Year Time Limit
On March 23, the Second Circuit issued its opinion in N.Y. Dep’t of Enviro. Conservation v. FERC, Case No. 19-1610 (i.e., the “Empire Pipeline” case). The case concerns the Federal Energy Regulatory Commission’s (FERC or Commission) determination that the New York State Department of Environmental Conservation (NYSDEC) waived its water quality certification authority with regard to FERC’s issuance of a gas pipeline certificate when NYSDEC sought to extend its review period beyond the one-year deadline under Section 401 of the Clean Water Act (CWA or Act) by agreeing with the applicant to “post-date” the filing date of its water quality certification application by several weeks.
FERC Establishes Water Quality Certification Waiver Period for Natural Gas Projects
On March 18, 2021, FERC issued a Final Rule amending its regulations to establish a one-year period for states, tribes, or other certifying authorities (“Certifying Agencies”) to act on a Clean Water Act (“CWA”) Section 401 water quality certification request for proposed natural gas and liquefied natural gas projects.