The Nickel Report

The 28th Conference of Parties (COP28) to the United Nations Framework Convention on Climate Change (UNFCCC) negotiating process will take place in Dubai, United Arab Emirates, beginning today, November 30, through December 12. As in the past, we are closely following the events on the ground in Dubai and the actions taken and the commitments made toward achieving the climate change goals of the 2015 Paris Agreement.

The themes of COP28, set by the host nation, include technology and innovation (aligning on actions by governments and the private sector to limit warming to 1.5°C); inclusion (engagement with diverse peoples); frontline communities (ensuring the most climate-vulnerable communities can adapt); and finance (funding to close the finance gap on adaptation and the energy transition and aligning public and private finance with the Paris Agreement’s goals). Beyond these themes – that will guide the two-week negotiations – there are a few specific issues we expect to be a priority at COP28, which we briefly discuss below and intend to follow closely.  

On October 17, 2023, the California Attorney General (AG) Rob Bonta released an enforcement advisory letter to manufacturers, distributors, and sellers of food packaging and cookware detailing how he intends to enforce AB 1200, a law which: 1) bans the sale of regulated per- and polyfluoroalkyl substances (PFAS) in food packaging in California, and 2) requires disclosure and labeling of chemicals on a “designated list,” including PFAS, that are present in the food contact surface or the handle of cookware products sold in California. Because the individual laws do not provide specific enforcement mechanisms, this announcement is the first time the AG’s office has articulated the authorities it plans to use to enforce these laws. The enforcement advisory letter provides a clear warning to the regulated community, from manufacturers to importers to distributors and retailers, that California will be enforcing its PFAS laws. Similar advisories could be issued in the future for California’s other laws restricting PFAS in juvenile products, textiles, and cosmetics.

On October 13, 2023, the US Department of Justice (DOJ) published its first annual report detailing the implementation of its Comprehensive Environmental Justice Enforcement Strategy (EJ Strategy). As we reported, in mid-2022, DOJ established an Office of Environmental Justice (OEJ), and the US Environmental Protection Agency (EPA) established a new Office of Environmental Justice (EJ) and External Civil Rights. DOJ’s OEJ is housed in the Environmental and Natural Resources Division (ENRD). DOJ intended its EJ Strategy to extend throughout the Department, in that OEJ’s mandate is to engage all DOJ bureaus, components, and offices in the collective pursuit of environmental justice. DOJ’s new report cites two main executive branch agencies involved in environmental protection and community development: EPA and the Department of Housing and Urban Development (HUD). The report touts efforts that DOJ views as EJ-related “successes” and details a number of authorities DOJ has relied upon in EJ-focused enforcement, including Title VI of the Civil Rights Act, the Clean Air Act, the Safe Drinking Water Act, and the Affordable Care Act. Building on these highlighted successes, DOJ states that it will continue its focus on enforcement proceedings where there is a nexus with environmental justice and will seek EJ-focused mitigation to resolve such proceedings. 

A set of mandatory environmental, social, and governance (ESG) reporting standards, the European Sustainability Reporting Standards (ESRS), are set to enter into force in the European Union (EU) at the end of this year.  These standards were adopted by the European Commission, the EU’s executive branch, on July 31, 2023 and, barring rejection by the European Parliament or the European Council, will be implemented as part of the EU’s Corporate Sustainability Reporting Directive (CSRD) – a fundamental pillar of the broad “EU Green Deal” – which requires mandatory ESG reporting for certain companies that do business in the EU.  This summary provides an overview of who is subject to the CSRD and when, summarizes key information covered under this initial set of standards, highlights technical guidance from the entity that created the standards, and discusses planned future development of additional standards.

On May 18, 2023, EPA proposed a rule that would expand the federal regulations governing the management of coal combustion residuals (“CCR”) to cover landfills and surface impoundments that were previously excluded from regulation under the CCR rule, first promulgated in 2015 under the Resource Conservation and Recovery Act (“RCRA”). 88 Fed. Reg. 31,982 (May 18, 2023). The CCR rule, codified at 40 C.F.R. Part 257, sets national minimum standards for the management of CCRs at existing and new landfills and surface impoundments, but it currently does not impose requirements on impoundments at inactive facilities (those that no longer generate electricity).

On October 7, 2023 California Governor Gavin Newsom signed two landmark climate disclosure laws aimed at making major companies publicly disclose their greenhouse gas emissions and report on their climate-related financial risks. The first, the Climate Corporate Data Accountability Act (SB 253), will require all business entities with an annual revenue exceeding $1 billion to disclose their greenhouse gas emissions in a format accessible to the public. The second, SB 261, will require all business entities with annual revenue exceeding $500 million to publish a report on their “climate-related financial risks” on their websites. These first-in-the-nation laws are broader than the proposed SEC climate disclosure rule and reach more than just California-based entities.

On October 11, 2023, the US Environmental Protection Agency (EPA) released its long-awaited final rule imposing detailed reporting requirements on entities that have manufactured or imported per- and polyfluoroalkyl substances (PFAS) for commercial purposes at any time since January 1, 2011. Notably, the reporting rule also applies to importers of articles containing PFAS, which could include many consumer, industrial, and commercial products, and requires reporting on PFAS as a component of a mixture. The rule does not have any exclusions for PFAS that are impurities, byproducts, used in commercial research and development (R&D), or only present in a mixture or article in trace amounts. And, unlike many state PFAS reporting laws, this reporting rule is not limited to only intentionally added PFAS.

Many involved in carbon capture utilization and storage (CCUS) policy foresaw several years ago the situation we are in now:  lots of Class VI Underground Injection Control (UIC) permit applications to store CO₂, not enough speed at the US Environmental Protection Agency (EPA) to get them processed, and not enough speed by EPA to divvy up the work by delegating the permitting authority to the States. 

That’s why Congress included funding in the Bipartisan Infrastructure Law for Class VI UIC permitting:  $50 million for EPA to help States defray costs of taking over the Class VI permitting program and $25 million total for fiscal years 2022-26 for EPA itself to get the job done.

On September 8, the U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers (Corps) (together, the Agencies) published a final rule in the Federal Register to amend the Agencies’ January, 2023 “waters of the United States” (WOTUS) definition (Amended Rule). 88 Fed. Reg. 61,964 (Sep. 8, 2023).[i] According to the Agencies, these amendments conform that definition to the Supreme Court’s Sackett decision. 

EPA finalized a rule effective on August 7, 2023 concerning the treatment of confidential business information (CBI) claims made in Toxic Substances Control Act (TSCA) submissions. Companies who submit any information to EPA under TSCA and want their confidential information to be protected from public disclosure must comply with these new requirements for CBI claims. Failure to follow these procedural requirements can result in EPA’s denial of the confidentiality claims and the information being made public.