Earlier this week, EPA published its proposed new methane regulations for the oil and gas sector. These new rules will have significant practical implications for the industry and have the potential to set new precedent for EPA’s authority under the Clean Air Act to address climate change for other industries as well. While the proposal is over 150 pages long, it does not include the actual text of the proposed rules, promising instead to provide proposed text in a supplemental notice early next year.
Continue Reading EPA Issues Highly Anticipated Methane Rule for the Oil and Gas Sector

The U.S. Supreme Court has elected to hear a legal dispute over the scope of the authority granted to the Environmental Protection Agency (EPA) under the Clean Air Act to regulate greenhouse gas (GHG) emissions from existing power plants. In orders issued October 29, the Court granted certiorari to four petitioners — West Virginia, North Dakota, the North American Coal Corporation, and Westmoreland Mining Holdings LLC — seeking reversal of a September 2020 D.C. Circuit Court of Appeals decision striking down the Affordable Clean Energy (ACE) rule.

Continue Reading Supreme Court Will Hear Controversy Over EPA Regulation of Greenhouse Gases from Existing Power Plants

The Congressional Review Act (CRA) was adopted in 1996 to give Congress a more powerful check on agency regulation that outpaces congressional intent. But now, for the first time, Congress has used that powerful authority in reverse. By disapproving a de-regulatory action — the rescission of the Subpart OOOOa new source methane standards for the oil and gas sector — Congress has brought a dead rule back to life. The birth, death, and now re-birth of Subpart OOOOa (often pronounced “quad-O-A”) raises several new and important questions.
Continue Reading Subpart OOOOa: What Happens When Congress Revives a Repealed Rule?

On April 5, the U.S. Court of Appeals for the D.C. Circuit vacated a Trump-era rule that would have prevented the Environmental Protection Agency (EPA) from setting greenhouse gas (GHG) emissions standards for almost any class of stationary sources, except for fossil fuel-fired electric generating units. The court’s decision, issued at the request of the new Biden EPA, clears the way for new sector-by-sector GHG regulations should the new administration seek to set new GHG standards under Section 111 of the Clean Air Act (CAA).

Continue Reading Rule Limiting EPA Regulation of GHG Emissions Vacated by D.C. Circuit

On the heels of multiple recent indications that it plans to increase its focus on environmental, social, and governance-related (ESG) corporate disclosures, the Securities and Exchange Commission (SEC or Commission) has solicited help from the public on developing a framework for climate change disclosures. Acting Chair Allison Herren Lee released a statement on March 15, calling for input from investors, registrants, and other market participants “in light of demand for climate change information and questions about whether current disclosures accurately inform investors.”

Continue Reading SEC Seeks Public Comment on Framework for Corporate Climate Change Disclosures

The Securities and Exchange Commission (SEC) announced the creation of a new task force on March 4 to address violations of environmental, social, and governance-related (ESG) disclosure requirements. The Climate and ESG Task Force will be located in the SEC’s Division of Enforcement and led by Acting Deputy Director of Enforcement Kelly Gibson, who will oversee a 22-member team drawn from across the SEC. The task force will focus initially on material gaps or misstatements in disclosure of climate risk under existing rules. The task force will use “sophisticated data analysis to mine and assess information … to identify potential violations” and will also pursue tips, referrals, and whistleblower complaints on ESG-related issues.

Continue Reading SEC Announces Task Force to Enforce ESG Disclosure Requirements

A California state legislator has introduced a bill that would require large corporations doing business in the state to publicly disclose their greenhouse gas emissions (GHGs). The bill, titled the Climate Corporate Responsibility Act, covers publicly traded domestic and foreign corporations with annual revenues in excess of $1 billion. According to state Senator Scott Weiner, who introduced the bill, it could affect up to 5,000 companies. The bill is not limited to any industry sector and would thus impact not only companies typically associated with GHG emissions, like oil and gas producers or power plants, but also would extend to other sectors, including the tech industry, for example.

Continue Reading Mandatory GHG Corporate Disclosure Bill Introduced in California

On January 19, the last full day of the Trump administration, a three-judge panel of the D.C. Circuit Court of Appeals vacated the Affordable Clean Energy (ACE) rule, the Trump EPA’s replacement rule for the Clean Power Plan. The Clean Power Plan was a cornerstone of the Obama EPA’s efforts to address climate change and would have required electric utilities to shift generation from fossil fuels to renewable resources. That aggressive rule was halted by an unprecedented stay of the rule by the Supreme Court, but a decision on the merits has never been issued because the Trump administration took office and put the litigation on hold. In its January 20 opinion, the D.C. Circuit has now issued the first decision on the merits of the legal issues underlying both ACE and the Clean Power Plan.

Continue Reading Affordable Clean Energy (ACE) Rule Vacated, But Appeal Still Possible

Just before the inauguration of President Biden, the Trump administration surprised many by failing to revise the stringent CO2 standard for new coal-fired power plants. That standard, adopted by the Obama administration, is based on the use of carbon capture and sequestration — a technology only installed once in the U.S. at a facility that has now been mothballed. When the Trump administration proposed to repeal and replace that standard in 2018, the chance of it surviving in its current form seemed slim. However, as the clock ran out, the Trump EPA failed to finalize its 2018 proposal and instead issued a “significant contribution finding” that attempts to limit regulation of greenhouse gases from new sources to electric utilities alone. While likely to be reversed quickly by the Biden EPA, that determination erects one more barrier to broad regulation of greenhouse gas emissions under the Clean Air Act (Act).

Continue Reading Trump EPA’s Last-Minute Surprise on Climate Standards for New Coal-Fired Utilities Intended to Block Similar Standards for Other Sectors

On March 31, 2020, the U.S. Environmental Protection Agency (“EPA”) and the National Highway Traffic Safety Administration (“NHTSA” and, collectively, the “Agencies”) released the pre-publication version of the final part to their joint Safer Affordable Fuel-Efficient (“SAFE”) Vehicles Rule. The new rule amends EPA’s greenhouse gas emission standards for passenger vehicles, light-duty trucks, and medium-duty passenger vehicles in model years 2021 and onward, and it simultaneously amends or creates NHTSA’s corporate average fuel economy standards for similar vehicles in model years (MY) 2021-2026. Under these harmonized regulations, each new model year will bring a 1.5% increase in stringency through MY 2026. Though a significant lessening of requirements from joint standards last set in 2012, this “steady ramp rate” is a notable change from the proposed version of the SAFE Vehicles Rule, which sought to maintain requirements as they applied in MY 2020. The new rule will take effect sixty days from its publication in the Federal Register.

Continue Reading Agencies Release Final Rule on Passenger Vehicle Fuel Economy