Energy & Environment

The United States Securities and Exchange Commission (“SEC”) is reviewing sustainability. On April 13, 2016 the SEC issued a “Concept Release” seeking public comments on 340 topics relating to business and financial disclosure requirements for publicly-traded companies under Regulation S-K. See 81 Fed. Reg. 23916 (April 22, 2016) (“CR”). Several topics addressed the disclosure of company information relating to sustainability and public policy issues. Such issues, including climate change, resource scarcity, corporate social responsibility (“CSR”), and good corporate citizenship, are often referred to generically as environmental, social, and governance (“ESG”) concerns.  C.R., p. 206. The concepts of CSR and ESG overlap greatly if not entirely, and precise definitions of these terms are lacking. In this article, the terms “sustainability” and “ESG” will be used interchangeably in the context of corporate reporting. Many of the largest companies in the U.S. voluntarily publish annual sustainability reports and/or website ESG content. At issue is to what extent ESG reporting by publicly-traded companies should be required by SEC regulations.

The U.S. Department of Transportation Department’s Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Federal Railroad Administration (FRA) issued a final rule on August 15, 2016 modifying regulations governing trains hauling crude oil and other flammable materials. See 81 Fed. Reg. 53935.  These changes codifiy certain mandates and minimum requirements set forth in the Fixing America’s Surface Transportation Act of 2015 (FAST Act) (Pub. L. No. 114-94), enacted in December 2015.  The full text of the PHMSA rule is available here.

In a Federal Register notice made public August 15, 2016, the Pipeline and Hazardous Materials Safety Administration (“PHMSA”) issued an advisory bulletin to “all owners and operators . . . of hazardous liquid, carbon dioxide, and gas pipelines, as defined in 49 Code of Federal Regulations Parts 192 and 195” clarifying how pipelines that are no longer in use should be treated. The full text of the bulletin is available here. PHMSA indicated that this advisory is necessary because improperly abandoned pipelines have resulted in pipeline incidents nationwide.

We have recently become aware of recent EPA action to enforce the reporting obligation contained in Section 313 of the Emergency Planning and Community Right-to-Know Act of 1986 (EPCRA) that applies to electroplating processes. This enforcement issue is of particular concern to both captive and job shop electroplaters. The EPA’s enforcement position is not a new issue; in fact it was discussed with EPA in the late 1990’s; however, many electroplating facilities, both captive and job shop, are perhaps not calculating and accurately documenting threshold determinations and releases of hazardous substances that may be required to be reported on Form R. Section 313 of EPCRA, and EPA’s implementing regulations at 40 C.F.R. §§ 372.22 and 372.30 require the reporting of releases of listed hazardous substances by the owner or operator of a facility that has 10 or more full-time employees; is covered by certain SIC codes; meets one of the criteria set forth in 40 C.F.R. s § 372.22(b)(1)-(3); and that they manufactured, processed or otherwise used a toxic chemical in an amount exceeding an applicable threshold quantity of that chemical during a calendar year. If a facility is required to report such releases, a toxic chemical release inventory form (Form R) must be submitted to EPA and to the state.

The U.S. Environmental Protection Agency (EPA) regulations under the Resource Conservation and Recovery Act of 1976 (RCRA) impose a comprehensive and often onerous program regulating the disposal and recycling of hazardous wastes. If you generate a secondary material that would need to be managed as a hazardous waste if you disposed of it, but the…

In response to twenty petitions for rulemaking submitted by the Chlorine Institute, Compressed Gas Association, and other members of the regulated community, the Pipeline and Hazardous Materials Safety Administration (“PHMSA”) issued a notice of proposed rulemaking on June 30, 2016 that, if finalized, will amend its hazardous materials regulations to update, clarify, or provide relief from the following miscellaneous regulatory requirements:

On April 20, 2016, the U.S. Senate passed the Energy Policy Modernization Act of 2016 (the Act) by a vote of 85-12. If signed into law, the bipartisan bill would impact manufacturing operations across industries by promoting energy efficiency; encouraging renewable energy development; facilitating improvements in infrastructure, including grid storage; removing certain hurdles to the development and export of oil and gas, critical minerals, and other resources; and making other changes intended to keep pace with the nation’s rapidly changing energy industry.

The Supreme Court, in a 6-2 landmark decision issued January 25, 2016, in Fed. Energy Regulatory Comm’n v. Elec. Power Supply Ass’n, 136 S.Ct. 760, 193 L.Ed.2d 661 (2016), upheld FERC Order No. 745 and ruled that the Federal Energy Regulatory Commission (FERC) has authority to establish demand response rules and rates in wholesale power markets. FERC’s rules call for payments to large energy users that reduce their electric usage during periods of high electricity demand.

The Court of Appeals for the District of Columbia Circuit had vacated Order No. 745, ruling among other things that FERC had overstepped its authority and directly interfered with the states’ exclusive right to regulate the retail electricity market.