The U.S. Securities and Exchange Commission (SEC or Commission) finalized its climate change disclosure rule on March 6, 2024, reducing the final disclosure obligations from the initial proposal after thousands of comments from stakeholders. The final rule requires comprehensive and standardized climate-related disclosures, including disclosure on governance, business strategy, targets and goals, GHG emissions, risk management, and the effects of climate change on financial metrics. This additional disclosure is intended to help investors assess material risks in climate-related reporting and facilitate comparisons across firms and over time with respect to climate-related metrics. 

For issuers subject to the new disclosure requirements, compliance with the final rule will present practical challenges, such as coordination among internal and external subject matter experts in the legal, accounting, science, and environmental, social, and governance (ESG) fields; data tracking, collection, and verification; reconciliation of data reported to satisfy mandatory disclosure requirements and voluntary reporting commitments, like those covered by sustainability reports; and oversight to ensure disclosures satisfy both the new SEC rules and the increasing non-regulatory scrutiny from investors and watchdogs, like International Shareholder Services (ISS). These challenges will necessitate significant additional costs to prepare compliant disclosures.Continue Reading The New SEC Climate Disclosure Rule Will Drive Risk Mitigation and Value Creation

Originally posted by the American College of Environmental Lawyers, November 9, 2023.

On November 3, 2023, the White House Council on Environmental Quality (CEQ) released a playbook for federal agencies to develop their Environmental Justice Strategic Plans, Strategic Planning to Advance Environmental Justice. This tool provides a ‘how to guide’ for federal agencies working

California has enacted two new laws on corporate disclosure of direct and indirect greenhouse gas (GHG) emissions and climate-related financial risks.  Senate Bill (SB) 253, the Climate Corporate Data Accountability Act, expands state GHG emissions reporting requirements to large U.S. companies doing business in California.  SB 261 requires biennial disclosure of climate-related financial risks.Continue Reading California’s New Climate-Related Disclosure Laws

The U.S. Environmental Protection Agency (EPA) has announced a new rule concerning per- and polyfluoroalkyl substances (“PFAS”). Companies that have made or brought products containing these chemicals into the U.S. since 2011 need to report certain information to the EPA. This rule mainly affects those who make or import items that have PFAS in them.

Introduction

On July 31, 2023, the Council on Environmental Quality (“CEQ”) proposed the Bipartisan Permitting Reform Implementation Rule (“Proposed Rule”), 88 Fed. Reg. 49,924 (July 31, 2023), which is better known as Phase 2 of the Biden Administration’s revisions to the regulations that implement the National Environmental Policy Act (“NEPA”).

NEPA imposes a procedural requirement that does not mandate outcomes, only informed decision making. Despite its procedural nature, NEPA is one of the primary mechanisms for project opponents to challenge projects and is the most litigated federal statute. CEQ describes the changes in the Proposed Rule as promoting efficient and effective environmental review while increasing regulatory certainty. Given the history of NEPA litigation, and the significant changes in the Proposed Rule, it is likely that these changes will open new pathways for litigation and require courts to interpret the changes before providing regulatory certainty.

Background Leading to the Proposed Rule

Prior to 2020, the regulations implementing NEPA, 40 C.F.R. §§ 1500-1508, had not been meaningfully updated since 1978. In 2020, CEQ finalized significant changes to the regulations, which were designed to speed up project review and limit agency discretion in considering impacts beyond the immediately proposed project. In 2021 CEQ started a phased process to revise the NEPA regulations. In April 2022, CEQ issued its Phase I Rule, 87 Fed. Reg. 23,453 (April 20, 2022), which restored the 1978 regulations’ provisions on the purpose and need statement, defined “effects of the action,” and restored agency discretion to adopt procedures beyond those contained in the CEQ regulations.Continue Reading Phase 2 NEPA Revisions: Significant Changes Proposed by CEQ in the Proposed Bipartisan Permitting Reform Rule

Consider these three statements: I experience odor or discoloration in my tap water, English is not the primary language spoken in my home, and I live near industrial activity.

Now, consider these statements: The organization that I work for can access environmental subject matter experts, the organization that I work for has influence in the

On June 22, 2023, the U.S. Supreme Court issued its opinion in Arizona v. Navajo Nation, No. 21-1484, limiting the federal government’s obligation to affirmatively secure water for federally recognized Indian tribes. The Supreme Court held that the 1868 treaty establishing the Navajo Reservation (the “Treaty”) “did not require the United States to take

On May 24, 2023, Minnesota became the latest state to impose significant restrictions on perfluoroalkyl and polyfluoroalkyl substances (PFAS) when Governor Tim Walz signed HF 2310.  In this blog post, we examine some of the critical questions surrounding the new law.

What does the new law do?

Headlining the new law is a ban on the sale, offer for sale, or distribution for sale of certain products that contain intentionally added PFAS.  This ban will be rolled out in two stages.  Initially, beginning on January 1, 2025, a person may not sell, offer for sale, or distribute for sale any of the following products if the product contains intentionally added PFAS:

  • carpets or rugs;
  • cleaning products;
  • cookware;
  • cosmetics;
  • dental floss;
  • fabric treatments;
  • juvenile products;
  • menstruation products;
  • textile furnishings;
  • ski wax; and
  • upholstered furniture.

The commissioner of the Minnesota Pollution Control Agency (MPCA) may by rule identify additional products by category or use.

The second phase of the ban beginning on January 1, 2032 is a total prohibition on the sale, offer for sale, or distribution for sale of any product that contains intentionally added PFAS.  A product or category of product can be excepted from this ban if the commissioner determines that the use of PFAS is a currently unavoidable use, although the commissioner may not make such a determination for a product that is included in the initial ban discussed above.Continue Reading Minnesota Enacts Sweeping PFAS Restrictions

The State Water Resources Control Board (“State Water Board”) is in the final stages of developing a revised Statewide Construction Stormwater General Permit (“Construction Stormwater General Permit” or “Permit”).  The State Water Board is currently accepting public comments on a limited set of revisions to the draft Construction Stormwater General Permit, has noticed one last public workshop to discuss the contents of the proposed Permit, and has scheduled a hearing to consider adoption of the proposed Permit.  Important dates are as follows:Continue Reading State Water Board to Consider Adoption of proposed Statewide Construction Stormwater General Permit at September 8, 2022 Meeting

On June 30, 2022, California Governor Gavin Newsom signed Assembly Bill 205 (“AB 205”), which, among various other things, expands the siting jurisdiction of the California Energy Commission (“CEC”) to include non-thermal generating facilities, such as solar and wind projects, with a capacity of 50 megawatts (MW) or more.  The CEC’s siting jurisdiction was previously