In the partially published Crenshaw Subway Coalition v. City of Los Angeles (2022) 75 Cal.App.5th 917, the Second District Court of Appeal affirmed the trial court’s judgment dismissing the claims of Crenshaw Subway Coalition (Coalition) alleging that the City of Los Angeles and the City Council (collectively, City), represented by the Thomas Law Group
True to its word, the SEC released its proposed rule, The Enhancement and Standardization of Climate-Related Disclosures for Investors, last week. The rule would require companies to disclose a wide variety of climate-related information, including information about climate-related risks that are reasonably likely to have material impacts on its business and/or its consolidated financial
On March 25, EPA sent a proposed Clean Water Act Section 401 Water Quality Certification rule to the Office of Management and Budget (OMB) for interagency review. Once cleared by OMB, the proposal will be published in the Federal Register for public review and comment. According to the OMB dashboard, EPA considers this proposed
The move towards consolidated, aligned, sustainability disclosure requirements, long identified as an essential element of sustainability efforts, took a major step forward last week. On 24 March 2022, the International Financial Reporting Standards Foundation (“IFRS Foundation”) and the Global Reporting Initiative (“GRI”) announced a collaboration agreement, the purpose of which is to seek to align their capital market and multi-stakeholder focussed sustainability disclosure regimes (the “Agreement“). The Agreement represents the latest development in the IFRS Foundation’s efforts to consolidate the plethora of – sometimes disparate – international sustainability reporting regimes into a consolidated, more cohesive, framework, for the benefit of companies, investors and society at large.
Which makes this new environmental rule an overarching environmental mandate all embracing of ESG, the biggest business opportunity in history, waiting to be unlocked.
By Benjamin D. Briggs, Adam R. Young, A. Scott Hecker, and Craig B. Simonsen
Seyfarth Synopsis: The federal Occupational Safety and Health Administration (OSHA) has reopened its rulemaking record and scheduled an informal public hearing to seek comments on specific topics that relate to the development of a permanent OSHA standard
Original Kelley Drye Client Advisory posted by Courtney Kleshinski on March 22, 2022.
On March 21, the U.S. Securities and Exchange Commission (SEC) unveiled its long-anticipated draft proposed rules for mandatory climate disclosures that would align the United States with other developed economies, particularly the EU and the UK, which have focused on financial disclosures
We previously reported on requirements for Scope 3 emissions in the proposed climate disclosure rule released by the U.S. Securities Exchange Commission (“SEC”) on March 21, 2022 (“Proposed Rule”). In addition to Scope 3 emissions, the Proposed Rule would also require a registrant to disclose information about its direct GHG emissions (Scope 1) and indirect emissions from purchased electricity or energy sources (Scope 2). This post focuses on attestation requirements in the Proposed Rule for those Scope 1 and Scope 2 disclosures.
Who is subject to Scope 1 and Scope 2 attestation requirements and when is compliance required?
Section 229.1505 of the Proposed Rule would require a company that is an accelerated filer or large accelerated filer[1] to include an attestation report in its Scope 1 and 2 disclosures. The attestation requirement also applies to foreign private issuers.
The Proposed Rule does not make compliance with Scope 1 and 2 disclosure and attestation requirements immediate. Instead, subject companies are provided a grace period to achieve compliance with Scope 1 and 2 disclosure requirements. The Proposed Rule would also provide a transition period for the assurances required for the Scope 1 and 2 disclosure attestations (see further discussion below). The proposed compliance timeframes are as follows:
Filer Type
Scopes 1 and 2 GHG Disclosure Compliance Date
Limited Assurance
Reasonable Assurance
Accelerated Filer
Fiscal year 2024 (filed in 2025)
Fiscal year 2025 (filed in 2026)
Fiscal year 2027 (filed in 2028)
Large Accelerated Filer
Fiscal year 2023 (filed in 2024)
Fiscal year 2024 (filed in 2025)
Fiscal year 2026 (filed in 2027)
Who prepares the attestation report?
Under the Proposed Rule, a GHG emissions attestation provider would be required to prepare and sign the attestation report. The attestation provider would not need to be a registered public accounting firm. However, the Proposed Rule includes characteristics of acceptable attestation providers including:
According to the agency, the proposed expertise requirement is intended to ensure that the attestation provider is sufficiently competent to perform the attestation engagement. With respect to independence, SEC states that emissions disclosures by independent attestation providers should improve the reliability of the disclosure.
On March 21, 2022, the Brazilian Government launched a new package of incentive measures seeking to stimulate programs and actions to reduce methane emissions, particularly through development of biogas and biomethane initiatives. The new package – called Federal Strategy of Incentive to the Sustainable Use of Biogas and Biomethane – includes the Methane Zero National Program and is aligned with the commitments made by Brazil in the context of COP26, the Global Methane Pledge and other domestic regulatory efforts, such as the National Policy on Waste Management.
Rechargeable lithium-ion batteries increasingly power electric vehicles and a wide range of consumer electronics, and are a critical component of President Biden’s national strategy to eliminate carbon dioxide emissions from the US economy. To ramp up the domestic industry, the U.S. Department of Energy (DOE), in coordination with the U.S. Department of Labor and the AFL-CIO, recently announced the launch of a national workforce development strategy for lithium battery manufacturing. While a trained workforce is a necessary component of a lithium manufacturing strategy, the U.S. has historically been dependent upon overseas sources for lithium – but that could change with a new potential lithium source located around California’s Salton Sea.
Most of the world’s lithium supply is either mined from open pit mines, which are common in China and Australia, or extracted from salt lake flats (evaporative ponds) in South America. Both of these methods have serious environmental issues associated with them, or in the case of the evaporative ponds, are slow and economically inefficient. Extensive lithium deposits have been identified in Afghanistan and in parts of Africa, but those resources are limited for either geopolitical or environmental, social and governance (“ESG”) reasons.
The US has its own sources of lithium, but they too come with developmental concerns. New lithium mine proposals in the United States, including a site located on federal land in Nevada and a site outside Death Valley National Park, have triggered opposition from conservationists and Native American tribes.
But could the U.S. find an untapped source somewhere else that has far less environmental concerns? Enter California’s Imperial Valley and its troubled Salton Sea region.