ENVIRONMENTAL
The Butterfly Effect: FWS Proposes Nationwide Threatened Species Listing for Monarch Butterfly
December 30, 2024
On December 12, 2024, FWS proposed listing the monarch butterfly as a threatened species with a special section 4(d) rule under ESA. The special 4(d) rule would provide very narrow exemptions to the ESA’s broad prohibition on unauthorized take for certain types of activities that may otherwise impact the species.
Source: Beveridge & Diamond PC
EPA Finalizes Regulation of Carbon Tetrachloride (CTC)
December 19, 2024
EPA is finalizing regulation of the manufacturing (including importing), processing, distributing in commerce, using, and disposing of CTC under the Toxic Substances Control Act (TSCA). The final rule establishes workplace safety requirements for most uses of CTC, prohibitions for certain uses, and recordkeeping and notification requirements.
Source: EPA
EPA Finalizes Regulation of Trichloroethylene (TCE)
December 18, 2024
EPA is finalizing regulation of the manufacturing (including importing), processing, distributing in commerce, using, and disposing of TCE or products containing it under the Toxic Substances Control Act (TSCA). The final rule prevents consumer access to TCE and restricts commercial and industrial use of the chemical, with some exceptions as long as worker protections are in place.
Source: EPA
Reminder: Deadline for LQGs, SQGs to Create e-Manifest Accounts
December 17, 2024
US EPA is reminding hazardous waste generators that many of them must create a RCRAInfo account to comply with the regulations for e-Manifests.
Source: Lion
Phasedown of Hydrofluorocarbons: Use of HFCs in Variable Refrigerant Flow Air Conditioning Subsector
December 13, 2024
Phasedown of Hydrofluorocarbons: Use of HFCs in Variable Refrigerant Flow Air Conditioning Subsector EPA is amending the 2023 Technology Transitions regulations to provide one additional year, until January 1, 2027, for the installation of new variable refrigerant flow (VRF) systems used for residential and light-commercial air-conditioning and heat pumps when using components that are manufactured in the United States or imported into the United States before January 1, 2026. Additionally, for projects that were issued a building permit which approved the use of an HFC or blend containing an HFC in a VRF system prior to October 5, 2023, EPA is allowing installation until January 1, 2028, if the components used are manufactured in the United States or imported into the United States prior to January 1, 2026.
Source: EPA
Enhancing Controls and Procedures for Climate‑Related Disclosures
December 10, 2024
Earlier this year, the Securities and Exchange Commission (SEC) adopted long-anticipated rules mandating climate-related disclosures in public companies’ annual reports and registration statements (SEC Climate Rules). While the new rules subject many disclosure requirements to a materiality standard, they nevertheless mandate significant climate-related disclosures and disclosure-related determinations for companies.
In response to multiple legal challenges, however, in April 2024, the SEC voluntarily stayed the effectiveness of the climate disclosure rules pending judicial review.
While the stay and the upcoming change in administration call into question the future of the SEC Climate Rules, these developments do not necessarily mean “pencils down” for companies when it comes to preparing more generally for climate-related disclosures. Even amid uncertainty with respect to the fate of the SEC Climate Rules, the SEC made clear that its 2010 climate guidance, which provided the basis for the sample comment letter issued in September 2021 by the Division of Corporation Finance and subsequent comment letters to companies, remains applicable.
TSCA Tuesday: Prohibitions, Phase-outs for TCE and PCE
December 9, 2024
On December 6, EPA banned uses of both solvents with extended phase-out periods and/or multi-year exemptions for certain uses. Both will take effect 30 days after they are published in the Federal Register.
Source: Lion
What to Expect from the Mandatory Sustainability Disclosure Standards for Non-EU Companies
December 8, 2024
The European Financial Reporting Advisory Group (EFRAG) is in the process of finalizing its draft sustainability reporting standards for non-EU parent companies (NESRS), which will shortly be subject to public consultation. Recent drafts for discussion were published on November 18, 2024. These provide a good indication as to the expected direction of CSRD reporting for non-EU parent companies that come in-scope of the CSRD from financial years starting on or after January 1, 2028. The draft NESRS largely mirror the ESRS which have already been adopted by the European Commission (First Set of ESRS) in terms of their format and the sustainability topics covered. Nevertheless, there are some key differences that we discuss below.
New Part 60, Subpart Kc for VOL Storage Vessels Finalized
December 6, 2024
For the first time in nearly four decades, facilities operating volatile organic liquid (VOL) storage vessels have a new standard with which to contend. New storage vessels must now comply with NSPS Subpart Kc, a significantly more stringent standard than Subpart Kb. The new provisions eliminate exemptions, reduce control requirement applicability thresholds, increase control device efficiency targets, and strengthen monitoring requirements.
Source: McCoy
New RCRA and CAA Rules for HFCs
December 6, 2024
A new rule regulating refrigerants just hit the air and waste books. In a two-part effort, EPA promulgated new provisions for hydrofluorocarbons (HFCs) and their substitutes under Part 84 and recycled refrigerants under Part 266. The requirements are designed to reduce emissions and encourage recycling of these ozone-depleting substances. If you operate refrigeration equipment, then you’ll need to study up since these regs are already in effect.
Source: McCoy
With The Election of Donald Trump, The Implementation of The Toxic Substances Control Act (TSCA) In 2025 Will Differ Significantly from The Pre-Election Expectations
December 5, 2024
With the election of Donald Trump, the implementation of the Toxic Substances Control Act (TSCA) in 2025 will differ significantly from the pre-election expectations. This news alert outlines our projections on the likely developments in the coming year.
Source: Beveridge & Diamond PC
Carbon Credits: An Overview of a Climate Controversy
December 5, 2024
With the recent COP29 conference developing standards for carbon credit markets, ESG investors may wish to learn more about such credits and the debates surrounding them. A carbon credit is an emissions unit that is issued by a carbon crediting program and represents an emission reduction or removal of greenhouse gases (GHG). Carbon credits are uniquely serialized, issued, tracked, and cancelled by means of an electronic registry. They can be exchanged either in compliance carbon markets, which are regulated and involve emissions reductions that are mandated by law, such as under the EU Emissions Trading Scheme or in Voluntary Carbon Markets (VCMs).
California Climate Disclosure Laws: Recent Developments
December 4, 2024
On September 27, 2024, California Governor Gavin Newsom signed into law Senate Bill (“SB”) 219, which makes certain changes to last year’s Climate Corporate Data Accountability Act (SB 253) and Climate‐Related Financial Risk Act (SB 261). SB 219 clarifies questions regarding SB 253 and SB 261, including by granting the California Air Resources Board (“CARB”) an additional six months, or until July 1, 2025, to adopt implementing regulations relating to the disclosure of greenhouse gas (“GHG”) emissions.
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SOCIAL
TSCA Update: Prohibitions for PCE, TCE, and Other Rules
December 17, 2024
TSCA restrictions for TCE and carbon tetrachloride (CTC) are now final, and US EPA will require chemical manufacturers to submit health and safety data about 16 other chemicals.
Source: Lion
OSHA Releases Arc-Flash Guidance
December 5, 2024
New guidance from OSHA includes recommendations that employers can use to address arc flash hazards within their safety and health programs. Arc flashes, also known as electric arcs, are electrical explosions that produce temperatures greater than 35,000 F—“nearly four times the temperature of the surface of the sun,” the guidance notes—along with shrapnel, concussive forces, and deafening sounds. Items within a three-foot radius of an arc flash are likely to burn, melt, or vaporize, though most injuries from arc flashes result from the ignition of flammable clothing. The frequency of arc flash incidents is uncertain, but the National Fire Protection Association has estimated that up to ten arc flash explosions occur in the United States each day.
Source: OSHA
GOVERNANCE
Policy Survey 2024: Executive Pay
December 4, 2024
Make-Whole Awards For executive recruitment, companies sometimes agree to provide “make -whole” grants to compensate for awards that the candidate must forfeit upon leaving their current employer. There is a significant gap in investor and non-investor expectations regarding disclosures related to “make-whole” grants. On average, 63.4% of investors expect disclosure of the terms of the award, along with explicit confirmation that awards are time-restricted and the same size as those forfeited, vs 30.1% among non-investors. By contrast, nearly half of non-investors responded that companies should only need to provide minimum disclosure (48.4%, vs 15.5% of investors).
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