Under the Clean Air Act, a facility that emits air pollutants may not be constructed unless an air permit has been issued to the facility.  For decades, EPA has interpreted the statute to prohibit almost any construction or modification activities until a permitting authority issues a final permit.  But on March 25, 2020, EPA proposed new guidance to clarify that, according regulations adopted 40 years ago, the only construction prohibited prior to issuance of an air permit is construction on the emitting unit itself.

Authors
Todd C. Fracassi, Partner, Pepper Hamilton
Mitchell L. Guc, Associate, Pepper Hamilton
Andrea L. Rimer, Partner, Troutman Sanders
Randy E. Brogdon, Partner, Troutman Sanders

On April 10, the U.S. Environmental Protection Agency’s (EPA’s) Office of Land and Emergency Management (OLEM) and Office of Enforcement and Compliance Assurance (OECA) jointly released a memorandum to all EPA Regional Administrators regarding the suspension, reduction or continuation of on-site cleanup activity in the wake of the COVID-19 pandemic. The memorandum supplements earlier guidance released on March 19 outlining OLEM’s management considerations and posture in response to COVID-19, which is included as an attachment to the April 10 guidance.

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.

Revisions to the California Safe Drinking Water and Toxic Enforcement Act, commonly known as Proposition 65, go into effect on April 1, 2020. The amendments are intended to clarify methods of compliance by upstream parties, including manufacturers, producers, packagers, importers, suppliers, or distributors of products with chemicals subject to warning requirements under the Act. They also include a modified definition of the key phrase “actual knowledge,” one of the triggers that can result in retailer responsibility for warnings.

In response to guidance issued by EPA’s Office of Enforcement and Compliance Assurance regarding enforcement discretion in light of COVID-19, the Virginia Department of Environmental Quality (DEQ) has issued its own guidance. In its accompanying press release, DEQ takes a stern tone and makes clear that DEQ expects compliance with all environmental compliance obligations and permit limits, that the crisis does not “equal a free pass for the regulated community,” and that regulated entities should make every effort to comply.

California regulators have announced that the comment period for a recent proposal, Supplemental Guidance: Screening and Evaluating Vapor Intrusion, has been extended to June 1, 2020, and public workshops and webinars originally scheduled for April have been postponed until further notice.

Vapor intrusion occurs when contamination moves from groundwater and soil beneath a structure into the air, accumulating in occupied areas where they can result in safety hazards or health effects. Common vapor-forming chemicals include volatile organic compounds including trichloroethylene (TCE), mercury, polychlorinated biphenyl (PCB), and certain pesticides. Testing for vapor intrusion is an important step in investigating a potential development site, and in ensuring the health and safety of existing residential and commercial buildings.

As reported previously, California agencies are providing clarification and directives to guide regulatory compliance following Governor Gavin Newsom’s state-wide “stay at home” order issued on March 19, 2020. More specific guidance has now been issued by the State Water Resource Control Board (SWRCB) for Public Water Systems, and by the South Coast Air Quality Management District for all regulated entities.

Notably, although EPA has announced that enforcement discretion will be exercised in cases where routine compliance is not reasonably practicable, the Agency recognizes the authority of states and tribes to determine their own enforcement policies. Thus, California-regulated companies also must track how California agencies are approaching compliance during COVID-19 to ensure ongoing compliance.

Today, U.S. Environmental Protection Agency (EPA) Assistant Administrator of EPA’s Office of Enforcement and Compliance Assurance (OECA) Susan Bodine issued guidance regarding OECA enforcement discretion in the wake of the coronavirus (COVID-19) COVID-19 pandemic. EPA intends to focus its resources largely on situations that may create an acute risk or imminent threat to public health or the environment. The guidance, which is retroactively effective to March 13, does not have an end date but EPA commits to reviewing the policy regularly and to providing a seven day notice of its termination on OECA’s guidance page.

The Troutman Sanders Corporate team has published the following article on COVID-19:

In a press release dated March 25, 2020, the United States Securities and Exchange Commission (the “Commission”) Chairman Jay Clayton encouraged “public companies to provide current and forward-looking information to their investors . . .” while continuing to…

The onset of the public health crisis caused by the spread of the coronavirus (COVID-19) has led to a global shortage of hand sanitizer. Businesses attempting to cope with new challenges presented by COVID-19 may be interested in retooling current manufacturing or other processes to begin developing hand sanitizer for external distribution or even internal use. In support of these efforts, the federal Food and Drug Administration (FDA) has issued guidance for both companies that are not currently authorized by the FDA to manufacture hand sanitizer companies and pharmacists in state-licensed, federal, or registered outsourcing facilities compounders that may be interested in producing hand sanitizer. Companies that adhere to this guidance and maintain sufficient documentation should be able to manufacture hand sanitizer for external distribution or internal use without enforcement exposure from the FDA.