Todd Fracassi, Pepper Hamilton
Mitchell Guc, Pepper Hamilton
Randy Brogdon, Troutman Sanders
Patrick Fanning, Troutman Sanders

In the three weeks since the U.S. Environmental Protection Agency (EPA) issued its much-discussed coronavirus (COVID-19) enforcement discretion policy (Policy), governmental and environmental group opposition to the Policy has continued to intensify. This article outlines both the nature of the opposition as it currently stands, as well as some best practices for those businesses struggling to keep up with the environmental enforcement tug-of-war unfolding before their eyes.

The wheels continue to turn with the National Highway Traffic Safety Administration’s (“NHTSA”) efforts to modernize vehicle safety standards, including for connected and automated vehicles (“CAVs”).  Most recently, NHTSA issued a Notice of Proposed Rulemaking (“NPRM”), seeking public comment on its endeavors “to improve safety and update rules that no longer make sense” for certain CAVs, “such as requiring manual driving controls on autonomous vehicles.”  According to NHTSA, the NPRM is a “[h]istoric first step for the agency to remove unnecessary barriers to motor vehicles equipped with automated driving systems” (“ADS”).

Authors

Todd Fracassi, Pepper Hamilton
Mitchell Guc, Pepper Hamilton
Randy Brogdon, Troutman Sanders
Patrick Fanning, Troutman Sanders

The U.S. Department of Justice (DOJ) is quietly taking steps to provide financial relief during the COVID-19 pandemic. In an April 14 model letter, DOJ offered to temporarily suspend its collection of stipulated penalty payments owed under some consent decrees through at least May 31, 2020. Notably, the letter also stated that DOJ will advise as to whether the suspension will be extended beyond May 31, 2020 and that if a party simply does nothing in response to the notice, DOJ will not seek collection of the debt until after May 2020. The letter is signed by Joseph Davis, Chief of the Case Management Unit of DOJ’s Environment & Natural Resources Division (ENRD) Environmental Enforcement Section.

EPA is attempting to thread the needle in responding to the COVID-19 pandemic: offering clarity about ongoing federal environmental obligations to the broad swath of regulated entities faced with the threat of significant disruptions and other challenges, while contending with intense opposition from others who perceive its temporary enforcement policy as a “free pass to pollute” and a failure to enforce legal requirements. Notwithstanding the mounting scrutiny from U.S. Senators, states, and citizens groups, and now a legal challenge, EPA’s Office of Enforcement and Compliance Assurance (OECA) has continued implementing its temporary policy regarding the exercise of enforcement discretion due to the COVID-19 pandemic via issuance of additional guidance on National Pollutant Discharge Elimination System (NPDES) reporting. Other state and federal agencies, including the U.S. Department of Justice, the Texas Commission on Environmental Quality, the Railroad Commission of Texas, and the California Environmental Protection Agency have followed EPA’s lead in issuing their own temporary policies related to the pandemic.…

The Texas Commission on Environmental Quality (TCEQ) announced that it will exercise enforcement discretion on a case-by-case basis as opposed to the EPA’s broader temporary enforcement policy issued on March 26, 2020.

Under its more tailored approach, the TCEQ has not relaxed any limits on air emissions or discharges to water. Similarly, the TCEQ has not relaxed any reporting requirements related to emissions or discharges exceeding those limits. The TCEQ continues to monitor and ensure safe drinking water and safe management of waste.

Just this morning, the Murphy Administration, along with the New Jersey Department of Environmental Protection (DEP), Board of Public Utilities (BPU) and Economic Development Authority (EDA), released the Regional Greenhouse Gas Initiative (RGGI) Strategic Funding Plan (SFP)for 2020 through 2022 which calls for investment of an estimated $80 million of New Jersey’s RGGI auction proceeds…

Under the Clean Air Act, a facility that emits air pollutants may not be constructed unless an air permit has been issued to the facility.  For decades, EPA has interpreted the statute to prohibit almost any construction or modification activities until a permitting authority issues a final permit.  But on March 25, 2020, EPA proposed new guidance to clarify that, according regulations adopted 40 years ago, the only construction prohibited prior to issuance of an air permit is construction on the emitting unit itself.

On April 10, 2020, the Federal Energy Regulatory Commission (FERC) issued an order (April Order) on PJM Interconnection, LLC’s (PJM) proposal for minimum run-time requirements for capacity storage resources. The April Order relates to Order No. 841 from December 2018, which opened energy markets to energy storage, and a FERC order from October 2019, where…

Authors
Todd C. Fracassi, Partner, Pepper Hamilton
Mitchell L. Guc, Associate, Pepper Hamilton
Andrea L. Rimer, Partner, Troutman Sanders
Randy E. Brogdon, Partner, Troutman Sanders

On April 10, the U.S. Environmental Protection Agency’s (EPA’s) Office of Land and Emergency Management (OLEM) and Office of Enforcement and Compliance Assurance (OECA) jointly released a memorandum to all EPA Regional Administrators regarding the suspension, reduction or continuation of on-site cleanup activity in the wake of the COVID-19 pandemic. The memorandum supplements earlier guidance released on March 19 outlining OLEM’s management considerations and posture in response to COVID-19, which is included as an attachment to the April 10 guidance.