04/30/2024 | News release | Distributed by Public on 04/30/2024 18:44
First observed on April 22, 1970, Earth Day has long been recognized as a watershed moment for the modern environmental movement. On that day, over 20 million demonstrators nationwide marched to raise awareness of the need to protect and preserve the environment. The energy generated from that day galvanized the country to action, leading to the creation of the U.S. Environmental Protection Agency (EPA) in December 1970 and the passage of several statutes later that decade-including the Clean Air Act (CAA) the Clean Water Act (CWA), the Endangered Species Act (ESA), and the Resource Conservation and Recovery Act (RCRA)-that serve as the foundation of U.S. environmental legislation. Today, Earth Day is recognized by countries around the world, and has expanded from its initial focus on pollution control to include elevating environmental justice in low-income, disadvantaged, and indigenous communities and promoting domestic and international climate action.
Beginning with a proclamation on April 19 declaring climate change to be "the existential crisis of our time," the Biden-Harris Administration marked Earth Day and the week after by announcing a suite of final rules and grant programs aimed at fossil fuel abatement and pollution control, accelerating electric transmission grid modernization and solar energy development, and reducing greenhouse gas (GHG) emissions from the transportation sector. These actions underscore not only the continued "whole-of-government" approach that the Administration has taken to combat climate change but also the urgency with which federal agencies have moved to promulgate final rules and protect them from potential congressional revocation ahead of the Congressional Review Act deadline later this spring.
To assist industries and markets as they evaluate the impact of these final rules and programs, we've spotlighted several of these Earth Week regulatory and grant-funding actions.
Fossil Fuel Abatement and Pollution Control
Standards to Reduce Pollution from Fossil Fuel-Fired Power Plants. On April 25, EPA announced four final rules aimed at reducing pollution from fossil fuel-fired power plants.
Final Rule | Authority | Effect |
Greenhouse Gas Standards and Guidelines for Fossil Fuel-Fired Power Plants | Section 111 of the CAA (40 CFR Part 60) | Repeals the Affordable Clean Energy (ACE) rule that was enacted by the Trump Administration in June 2019 and subsequently vacated by the D.C. Circuit in January 2021. Sets new emissions standards to ensure that all coal-fired plants that plan to operate in the long-term and all new baseload gas-fired plants control 90 percent of their carbon pollution. Significantly, the final rule does not set emissions guidelines for existing gas-fired plants, though the rule states that EPA "plans to expeditiously issue an additional proposal" to address these plants. |
Mercury and Air Toxics Standards | Section 112 of the CAA (40 CFR Part 63) | Strengthens and updates the Mercury and Air Toxics Standards (MATS) for coal-fired power plants by tightening the emissions standard for toxic metals by 67 percent and finalizing a 70 percent reduction in the emissions standard for mercury from existing lignite-fired plants. |
Steam Electric Power Generating Effluent Guidelines | CWA (40 CFR Part 423) | Strengthens the discharge standards for four types of wastewater generated by coal-fired power plants: flue gas desulfurization wastewater, bottom ash transport water, combustion residual leachate, and various legacy wastewaters. |
Legacy Coal Combustion Residuals (CCR) Surface Impoundments and CCR Management Units | RCRA (40 CFR Parts 9 and 257) | Establishes regulatory requirements for the management of coal ash at inactive coal-fired power plants with unused surface impoundments and historical coal ash disposal areas at active coal-fired power plants. |
Revised Procedures for Chemical Risk Evaluations Under the Toxic Substances Control Act. In addition to these regulations targeting fossil fuel-fired power plants, on April 23, EPA issued a final rule amending the procedural framework rule for conducting chemical risk evaluations under the Toxic Substances Control Act (TSCA). Promulgated under section 6(b)(4)(15) of TSCA at 40 CFR Part 702, the purpose of chemical risk evaluations is to determine if a chemical substance presents "an unreasonable risk of injury to health or the environment, without consideration of costs or non-risk factors." The final rule revises certain regulatory definitions and amends the process and requirements that manufacturers and importers of chemical substances must follow when requesting that EPA conduct a chemical risk evaluation.
Accelerating Electric Transmission Grid Modernization and Solar Energy Development
On April 25, the U.S. Department of Energy (DOE) announced two final rules aimed at streamlining the permitting and approval process for electric transmission projects and energy storage systems projects, such as solar and wind energy projects.
Separately, on April 22, EPA announced sixty selectees for funding under the Solar for All Grant Program, a $7 billion grant program established by the Inflation Reduction Act's Greenhouse Gas Reduction Fund (GGRF) that is designed to deliver residential solar projects nationwide. The Solar for All announcement comes on the heels of EPA's earlier GGRF announcement on April 4 of three selectees for $14 billion of funding under the National Clean Investment Fund and five selectees for $6 billion of funding under the Clean Communities Investment Accelerator to create a national financing network for clean energy projects.
Reducing GHG Emissions from the Transportation Sector
On April 24, the Biden-Harris Administration set a national goal to transition the truck, rail, aviation, and marine freight sector to net-zero emissions. The national goal operationalizes the global Drive to Zero Memorandum of Understanding, signed by the United States at COP27 in 2022, which commits signatory countries to enable 100% zero-emission new truck and bus sales by 2040 and sets an interim goal of 30% zero emission vehicle sales by 2030. This builds on EPA's action on March 29 finalizing new standards for greenhouse gas emissions from heavy-duty vehicles for Model Years 2027-2032. As part of this national goal, the Administration announced the following actions:
Looking Ahead
As has been the case with prior rules issued by EPA and other federal agencies related to reporting and controlling GHG emissions, these final rules may face legal challenges from regulated industries. Still, the timing of these final rules insulates them from being overturned through the Congressional Review Act (CRA) if control of Congress and the White House changes as a result of the 2024 elections. Under the CRA, a new Congress can overturn rules issued by the Executive Branch within 60 legislative days before the prior Congress adjourns by adopting a joint resolution of disapproval signed by the President. You can find Covington's analysis of the CRA and its impact on the Biden-Harris Administration's regulatory agenda here.
Covington's Environmental and Energy practices, as well as our unique Carbon Management and Climate Mitigation (CM2) initiative, have extensive experience and capabilities helping clients navigate complex environmental and energy regulatory requirements and understand how to best engage with grant-funding opportunities created by the 2021 Bipartisan Infrastructure Law and 2022 Inflation Reduction Act. Follow Inside Energy & Environment for more updates and analysis of these Earth Week regulatory and grant-funding developments and future government climate action.