Environmental Regulation

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The Plan aims to “simplify, accelerate and align incentives to preserve the competitiveness and attractiveness of the EU as an investment location for the net-zero industry”[1].

By Paul A. Davies, Michael D. Green, and James Bee

On 1 February 2023, the European Commission (Commission) presented a proposal for a Green Deal Industrial Plan for the Net-Zero Age (the Plan). The Plan forms part of the European Green Deal adopted in 2019, which sets out the EU’s green transition ambitions and climate targets towards reaching net zero by 2050. The Plan sits alongside other Green Deal initiatives, including the “Fit for 55” package of policies (which seek to reduce greenhouse gas emissions by 55% from 1990 levels by 2030), as well as REPowerEU (introduced to reduce reliance on imported fossil fuels and provide clean and affordable energy).

The Plan is designed to support the scaling up of the EU’s net zero manufacturing capacities and installation of sustainable products and energy supplies, whilst also enhancing the competitiveness of Europe’s net zero industry. This Plan is particularly relevant in light of the US Inflation Reduction Act in the US, which aims to mobilise over $360 billion by 2032[2], and recent concerns in relation to energy security and energy prices in the EU.

The advanced notice of proposed rulemaking signals DOI’s interest in developing faster and more cost-effective methods to quantify natural resource damage claims.

By Kegan A. Brown, Gary P. Gengel, G. Jack Mathews, and Thomas C. Pearce

On January 18, 2023, the US Department of the Interior (DOI) Office of Restoration and Damage Assessment issued an Advance Notice of Proposed Rulemaking (the Notice) requesting feedback on possible amendments to the “simplified” natural resource damage assessment (NRDA) regulations for discharges of oil or hazardous substances (known as “Type A” NRDA regulations). DOI proposes to “modernize the Type A process and develop a more flexible and enduring rule” by, among other things, broadening the universe of natural resource damage (NRD) claims that may be subject to Type A procedures.[1] DOI has requested public comments on possible revisions to the Type A NRDA regulations by March 20, 2023.

The notice is another step in EPA’s PFAS Strategic Roadmap and emphasizes potential CERCLA enforcement.

By Kegan A. Brown, Gary P. Gengel, Thomas C. Pearce, and Taylor R. West

On January 12, 2023, the US Environmental Protection Agency (EPA) issued a notice to solicit public comments on its National Enforcement and Compliance Initiatives (NECI) for Fiscal Years 2024-2027. The notice proposes a new NECI to address per- and polyfluoroalkyl substances (PFAS) contamination, with a “focus on implementing the commitments to action made in EPA’s 2021-2024 [PFAS] Strategic Roadmap.”[1]

The proposed PFAS NECI emphasizes EPA’s intention to identify and pursue potentially responsible parties for PFAS contamination, including under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

EPA adopts final rule, effective February 13, 2023, establishing ASTM E1527-21 as the standard for satisfying AAI requirements and phasing out ASTM E1527-13.

By Aron Potash, Josh Marnitz, Phil Sandick, and Bruce Johnson

On December 15, 2022, the US Environmental Protection Agency (EPA) amended its rule for conducting “All Appropriate Inquiries” (AAI) under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) to incorporate a new standard for conducting Phase I Environmental Site Assessments (Phase I). Satisfying AAI is a critical step when acquiring or leasing real property. AAI is a prerequisite to certain safe harbors under CERCLA (and state analogues), which otherwise subjects property owners and operators to liability for investigating and remediating contamination regardless of fault.

When EPA’s final rule for conducting AAI (AAI rule) takes effect on February 13, 2023, it will allow for the use of the updated standard for conducting Phase Is recently published by ASTM International (ASTM) (i.e., ASTM E1527-21) when conducting AAI. One year after the final rule goes into effect, the previous Phase I standard, ASTM E1527-13, will no longer be sufficient to satisfy AAI. ASTM E1527-21 incorporates several changes that distinguish it from E1527-13, including expanding requirements for using historical sources, updating guidance on emerging contaminants, and expanding reporting requirements.

The outcome of the review may signal what climate-related laws and policies to expect in the UK in the coming years.

By Paul A. Davies, Michael D. Green, and James Bee

On 8 September 2022, newly appointed UK Prime Minister Liz Truss announced that Chris Skidmore MP, a Member of Parliament and former minister of energy and clean growth, would lead a review into the UK’s net zero commitment.

The previous administration established a UK target in 2019 to bring all greenhouse gas (GHG) emissions to a net zero level by 2050, in response to a recommendation from the Committee on Climate Change (the UK’s independent climate advisory body). The new Prime Minister, who during her leadership campaign had stated that she will “double down” on the UK’s attempts to meet its 2050 target, appointed Skidmore with the mandate to find the “fastest and most efficient way” to reach the target.

Skidmore, who as energy and clean growth minister signed the UK’s net zero target into law in 2019, has been given until the end of 2022 to report back with his findings.

Mobile device manufacturers may be subject to regulations that aim to mitigate the environmental impact of such devices.

By Paul A. Davies, Michael D. Green, and James Bee

On 31 August 2022, the European Commission published draft “ecodesign” regulations covering various components of smartphones and tablets, seeking to improve the environmental performance of these products.

Proposed Ecodesign Requirements

Under the Ecodesign Directive, a framework established in 2009 by the EU for the purposes of setting eco-design requirements for energy-related products, the Commission is empowered to develop regulations that lay down requirements as to the design of certain products that have significant environmental impact. These ecodesign requirements aim to harmonise resource efficiency requirements for impactful products throughout the EU to improve their environmental performance.

The Commission indicated that it chose to introduce regulation on smartphones and tablets (similar regulations have previously been introduced for products including dishwashers, domestic ovens and vacuum cleaners) due to the steep increase in demand for the products in the EU over the past decade resulting in an increase in demand for energy and materials to manufacture the devices. The Commission also noted that smartphones and tablets are often replaced prematurely by users and are, at the end of their useful life, not sufficiently reused or recycled, leading to a waste of resources.

Under the draft regulations, 15 components of smartphones and tablets, including batteries and charging ports, would be made available for at least five years from the date the device is placed on the European market. Additional requirements would also be imposed in relation to the capacity of batteries, and for smartphones and tablets to be tested for resistance to being scratched, exposed to water, and dropped (with the requirement that phones can be dropped 100 times without losing functionality).