US Environmental Protection Agency (EPA) Announces Final Vessel Incidental Discharge Rule

As evidenced by the Department of Justice’s recent announcement of a US$2 million criminal fine assessed against the owners of the tanker P/S Dream as part of a guilty plea, violations of federal environmental laws governing vessel discharge can carry significant consequences.

Stakeholders should take note that the EPA recently announced the final Vessel Incidental National Standards of Performance (VINSP Final Rule) that applies to the release of pollutants and invasive species from approximately 85,000 vessels operating in US waters. The Final Rule applies to nonrecreational, non-Armed Forces vessels 79 feet in length and above, as well as ballast water only from fishing vessels of any size and non-recreational, non-Armed Forces vessels less than 79 feet in length.

The VINSP Final Rule is aimed at a diverse cross-section of commercial vessels operating in US territorial waters and the contiguous zone. As stated in an EPA press release: “Clean water and healthy aquatic ecosystems provide multiple benefits to nearby communities. They support commerce and commercial fishing, they serve as sources of drinking water and they connect people to nature,” said EPA Principal Deputy Assistant Administrator for Water Bruno Pigott. “EPA’s final rule will help protect our vital waterways while reducing the spread of invasive species, like zebra mussels. The agency’s final rule also delivers on Congress’ direction to establish nationwide requirements that replace the current patchwork of federal, state and local requirements.”

Read the full publication here.

ESG Due Diligence Update: First Lessons from Recent Rulings in the EU

As the EU intensifies its focus on ESG, the new Corporate Sustainability Due Diligence Directive (CS3D) is poised to enforce stricter environmental accountability across corporate operations. This directive, along with recent EU court rulings, underscores the critical need for companies to strengthen their environmental due diligence to avoid significant legal and financial penalties. For a deeper dive into these developments and their implications, read the full analysis on SPB’s Global Investigations & Compliance Review blog here.

U.S. Supreme Court’s Jarkesy Ruling Shifts Power for Federal Enforcement

Keith Bradly, Squire Patton Boggs (US) LLP Partner and Co-Chair of the Appellate and Supreme Court Practice, authored an article for Bloomberg Law discussing the U.S. Supreme Court’s recent decision in SEC v. Jarkesy. The Court found that when the Securities Exchange Commission (SEC) seeks civil penalties for securities fraud, the Seventh Amendment affords a defendant the right to a jury trial in federal court because such claims are legal in nature. Although this case involves the SEC, it may have a ripple effect for other agencies, raising the question of whether enforcement matters, including environmental enforcement actions, are similar to claims at law or equity. It may also lead to less administrative enforcement actions but increased and more expensive federal litigation. Read the full article at Supreme Court’s Jarkesy Ruling Upends SEC Enforcement Practices (bloomberglaw.com).

Chevron Has Fallen: Supreme Court Seismically Shifts Regulatory Power From Agencies to Courts

Guardian of Law Statue United States Supreme Court Building

On June 28, 2024, in a 6-3 decision in Loper Bright Enterprises v. Raimondo, the Supreme Court overturned the Chevron doctrine, a decades-old precedent that largely pressed federal courts to defer to federal agency interpretations of ambiguous statutes under their jurisdiction. The opportunities, the challenges, and the uncertainty will grow for a long time before the dust settles from Loper Bright. In every interaction with the federal government, it is now necessary to do a fresh assessment of just how much discretionary authority the agency actually has. Read the full publication here for details on the implications of this decision, which merit ongoing attention and preparation for a changed environment.

OSHA Final Rule Clarifies Employees’ Walkaround Representative; Opens Non-Union Workplaces to Union Representatives 

Safety helmets

The U.S. Department of Labor’s Occupational Safety & Health Administration (OSHA) published its controversial final “walkaround” rule on April 1, 2024.  The final rule clarifies the rights of employees to authorize a representative – employee or non-employee – to accompany an OSHA compliance officer (CSHO) during an inspection of their workplace.  This can include a “third party” (or non-employee) representative, such as a union representative, if OSHA deems the representative “may be reasonably necessary to the conduct of an effective and thorough inspection based upon skills, knowledge, or experience such as knowledge or experience with hazards or conditions in the workplace or similar workplaces, or language or communication skills”    OSHA argues the authorized employee representative would accompany the CSHO for the purpose of aiding a lawful inspection under the Occupational Safety & Health (OSH) Act.

Commenters raised significant concerns, ranging from First, Fourth, Fifth, and Tenth Amendment violations to due process concerns and issues over allowing a union representative access to a non-union worksite/workplace that some believed could potentially violate the Supreme Court of the United States’ decision in Cedar Point Nursery.  With respect to the latter issue, OSHA argues in the final rule:

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FDA Announces End of PFAS Use in US Food Packaging

Supermarket shelves

On February 28, 2024, the Food and Drug Administration (“FDA”) published a news release regarding the voluntary market phase-out of per and polyfluoroalkyl substances (PFAS) in grease-proofing substances used on food packaging. The FDA stated that the completion of this phase-out “eliminates the primary source of dietary exposure to PFAS from authorized food contact uses.”

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The End of “Chevron” or Its Rebirth?

Fishermen in the small town of Cape May, New Jersey, are at the epicenter of a legal challenge that could reshape the landscape of agency authority. The fishermen are challenging the entrenched “Chevron” doctrine, which for years has afforded deference to government agencies with respect to reasonable interpretation of ambiguous statutes. Once again, the US Supreme Court (SCOTUS) is in the spotlight as it hears pivotal cases – Relentless v. Department of Commerce and Loper Bright Enterprises v. Raimondo, which may presage the dismantling of “Chevron”.

Read the full publication here.

UK REACH: Awaited Consultation on Policy Direction for Registration of Chemicals

Toxic Substance

The most anticipated developments for 2024 in UK chemicals regulation are the long-awaited publication of the UK’s Chemicals Strategy, and a consultation on the UK government’s alternative transitional registration model (ATRm). In November 2023, a policy paper was issued outlining the government’s high-level plans for ATRm, but the questions and details for stakeholders are still unknown.

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US EPA Finalizes Rulemaking for Methane Emission Reductions

On December 2, 2023, the United States Environmental Protection Agency (EPA) issued the pre-publication version of its Final Rule for standards of performance in the Oil and Natural Gas sector. The original proposed rule, published on November 15, 2021, sought to strengthen methane standards for new sources (New Source Performance Standards or NSPS), establish nationwide emission guidelines (EG) for regulation of existing sources, and develop new standards for unregulated sources. EPA later issued a supplemental proposed rulemaking on November 15, 2022 (2022 Supplemental Proposed Rulemaking), as we summarized in our previous post. In total, EPA received nearly 1 million public comments on this rulemaking. The rules, when published in the federal register, will be included in 40 CFR Part 60, Subpart OOOOb (NSPS) and Subpart OOOOc (EG).

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US EPA’s Draft Revisions to Technical Guidance for Assessing Environmental Justice in Regulatory Analysis

Our team at Squire Patton Boggs monitors environmental justice (EJ) developments and provides periodic updates regarding environmental justice topics.  Recently, US EPA released draft revisions to its Technical Guidance for Assessing Environmental Justice in Regulatory Analysis (EJ Technical Guidance), and US EPA is currently seeking public comments through January 15, 2024.  

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