In a proposed rule signed on February 28, but not yet published in the Federal Register, EPA proposed to significantly expand its current approach to regulating the interstate transport of ozone. Under the so-called “good neighbor” provision of the Clean Air Act, states are required to submit State Implementation Plans (SIPs) to EPA containing rules sufficient to prohibit emissions from their state that would either significantly contribute to another state’s nonattainment of national ambient air quality standards or interfere with another state’s maintenance of those standards. If a state submits a SIP that is insufficient to satisfy its good neighbor obligation, EPA must issue a Federal Implementation Plan (FIP) to fully address the problem.

The listing status of the northern long-eared bat (NLEB) under the Endangered Species Act (ESA) has been the subject of litigation since the U.S. Fish and Wildlife Service (Service) originally listed it as threatened in 2015. At that time, the Service also issued an ESA Section 4(d) rule that allowed incidental take resulting from development activities to occur within its range and habitat where white nose syndrome (WNS) was not present, so long as certain best management practices, such as time of year restrictions on tree removal, were followed. In 2021, the U.S. Court of Appeals for the D.C. Circuit found that the Service’s 2015 listing decision did not adequately explain why the bat was not listed as endangered, and failed to address how impacts, such as habitat modification allowed under the 4(d) rule, affected the NLEB. The court remanded the 2015 rule to the Service for further consideration, but allowed the threatened listing and 4(d) rule to stay in place while the Service reconsidered the listing status for the species.

On February 16, the White House Council on Environmental Quality (CEQ) published in the Federal Register new interim guidance that is intended to facilitate the review and deployment of carbon capture, sequestration, utilization, and storage (CCUS) technologies. For those hoping for specific guidance that would accelerate the deployment of CCUS, the interim guidance is likely to disappoint. Congress recently signaled strong interest in accelerating CCUS as a national decarbonization strategy by providing billions of dollars of new investment to support the industry, but the guidance is largely silent on how the executive branch will match the urgency in ensuring on-the-ground deployment in the foreseeable future. Comments on CEQ’s guidance are due to CEQ by March 18.

Section 7 of the Endangered Species Act (ESA) requires the Army Corps of Engineers (Corps) to consult with the National Oceanic and Atmospheric Administration Fisheries (NOAA) (together “Agencies) before undertaking work or issuing permits to maintain structures that may affect listed species or protected habitat. On January 5, 2022, the Agencies signed a joint resolution memorandum (Memorandum) that provides guidance on whether to include existing structures (such as a dam or a pier) involved in a proposed action as an “effect of the action” or within the “environmental baseline” for the purposes of ESA Section 7 consultation. Depending upon the scope of the “effects of the action,” NOAA may determine that the action will have no effect on ESA-listed species or their critical habitat, that the activity requires a permit for the incidental take, and/or that certain reasonable and prudent measures should be implemented to offset harmful effects.

On December 27, 2021, the U.S. Army Corps of Engineers (Corps) issued a final rule reissuing 40 existing Nationwide Permits (NWPs) with modifications and issuing a new NWP for water reclamation and reuse facilities. The 40 existing NWPs that the Corps reissued includes NWP 17, which authorizes the discharge of dredged or fill material associated with certain small hydroelectric projects.

As the U.S. Environmental Protection Agency (EPA) prepares its Clean Water Act (CWA) Section 401 rule proposal, litigation regarding the 2020 Trump-era rule (Certification Rule) continues. Currently, the issue of whether to re-instate the Certification Rule is proceeding before U.S. Court of Appeals for the Ninth Circuit (Ninth Circuit). The U.S. District Court for the Northern District of California had vacated and remanded the Certification Rule, and intervenors and several states appealed the vacatur. Appellants, including several industry groups, have filed motions to stay the District Court’s vacatur pending the outcome of the appeal and are now awaiting the Ninth Circuit’s ruling that could, at least temporarily, re-instate the Certification Rule.

On February 17, the Federal Energy Regulatory Commission (FERC or Commission) announced two new, significant policies that may have a profound impact on both natural gas pipeline projects before the Commission and the industry in general. Headlining these policies is FERC’s new interim greenhouse gas (GHG) policy statement (Interim GHG Policy Statement), pursuant to which FERC will presume any gas project with 100,000 metric tons per year of carbon dioxide equivalents (CO2e) emissions to have a significant impact on climate change and will trigger the preparation of an Environmental Impact Statement (EIS). Notwithstanding the interim nature of FERC’s new Interim GHG Policy Statement – where FERC is accepting comments by April 4, 2022 – FERC clarified that it will apply both policies to all pending and new project applications, effective immediately.

The Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers (the “Corps”) (together the “Agencies”) have continued working on a proposed rule to revise the definition of “waters of the United States” (WOTUS) under the Clean Water Act (CWA or Act), which will soon move to the next stage of agency consideration.[1] The outcome of these rulemaking efforts will impact countless regulated parties, from solar developers to manufacturers, and heavily regulated industry.

On January 18, the White House Council on Environmental Quality (CEQ) urged the Fourth Circuit, U.S. Court of appeals to affirm the pre-application dismissal of environmentalists’ litigation over a Trump era rule that significantly altered how agencies utilize the National Environmental Policy Act (NEPA), including their climate analysis.

On January 11, the U.S. Environmental Protection Agency (EPA) issued a new interpretation of its coal combustion residual (CCR) regulations: CCR landfills or surface impoundments “cannot be closed with coal ash in contact with groundwater.” Although EPA claims it has “consistently held” this interpretation, this is the first time EPA has expressly articulated this view. Perhaps acknowledging the novelty of its position, EPA also announced its intent to “review … state-level CCR program applications to ensure they are as protective as federal regulations” and to proceed toward a federal CCR permitting framework.