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California Climate Disclosures and More....


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ENVIRONMENTAL


Commodity Futures Trading Commission Finalizes Voluntary Carbon Market Standards September 24, 2024


This alert by Holland & Knight's Greenwashing Mitigation Team offers insights regarding the Commodity Futures Trading Commission's (CFTC) newly finalized guidance about the listing of voluntary carbon credit (VCC) derivatives on CFTC-regulated exchanges. This guidance is intended to ensure that CFTC-regulated exchanges list only derivatives where the underlying VCCs meet certain standards.


In conjunction with CFTC enforcement guidance regarding carbon markets issued in 2023, the final guidance shows that, despite limitations to its statutory authority, the CFTC is actively attempting to set standards for VCC markets.



Carbon Sequestration in Texas: EPA Region 6 Issues Draft Permits for Proposed Geologic Sequestration of Carbon Dioxide in Texas

September 19, 2024


EPA Region 6 recently issued the first draft Class VI permits in Texas under the SDWA UIC program. EPA’s actions mark a significant step towards advancing DAC projects and carbon sequestration efforts in Texas, as well as nationally, and could pave the way for increased carbon credit generation and provide a clearer framework for future DAC project approvals.



Phasedown of Hydrofluorocarbons

September 17, 2024


EPA is proposing revisions to the Phasedown of Hydrofluorocarbons regulations found at 40 CFR 84. The proposed revisions include the EPA's determination for renewal for the six applications that were previously given priority access to allowances, a process and requirements for application-specific allowance holder petitions, changes to the application-specific allowance methodology, requiring exporting companies to report additional information quarterly, authorizing an entity to produce regulated substances for export for certain uses abroad, and additional confidentiality determinations for newly reported information.


Source: OSHA


California to Require Climate Disclosures from Large Companies

September 16, 2024


On August 2024, the California Legislature passed SB 219. This bill makes minor but important amendments to SB 253 and SB 261. Notably, SB 219 provides CARB with additional flexibility on the timing of Scope 3 disclosures.



Reclassification of Major Sources

September 11, 2024


EPA is finalizing a requirement under the NESHAP program that major sources of seven persistent and bioaccumulative pollutants listed in CAA 112(c)(6) remain subject to the relevant NESHAP for their source category, regardless of whether the sources reclassify to area source status. Additionally, EPA is revising requirements for confidential business information in electronic submissions of notifications and reports, including initial notifications. The seven pollutants are: alkylated lead compounds; polycyclic organic matter; hexachlorobenzene; mercury; polychlorinated biphenyls; 2,3,7,8-tetrachlorodibenzofurans; and 2,3,7,8-tetrachlorodibenzo-p-dioxin.


Source: OSHA


Due September 30: TSCA Chemical Data Reporting

September 6, 2024


Is your site required to submit TSCA Chemical Data Reporting? CDR reporting is required every four years from certain chemical manufacturers, and the 2024 submission period ends on September 30.


Answer common questions about the TSCA Chemical Data Reporting rule's reporting thresholds and exemptions with this one-page cheat sheet.


Source: Lion


EPA Revises NESHAP for Reciprocating Internal Combustion Engines and NSPS for Internal Combustion Engines

September 3, 2024


EPA is amending the NESHAP for Reciprocating Internal Combustion Engines (40 CFR 63, Subpart ZZZZ), the NSPS for Stationary Compression Ignition Internal Combustion Engines (40 CFR 60, Subpart IIII), and the NSPS for Stationary Spark Ignition Internal Combustion Engines (40 CFR 60, Subpart JJJJ) to add electronic reporting provisions for certain notifications and reports, and to make clarifications and corrections to improve the understanding of existing regulatory provisions. The addition of electronic reporting requirements will provide for simplified reporting and enhance the availability of data.


Source: OSHA


SEC Files Brief in Support of Climate Disclosure Rules

September 1, 2024


On August 6, the SEC filed its much-anticipated legal brief in the Eighth Circuit Court of Appeals supporting its controversial Climate Rules and responding to the arguments laid out in petitioners’ consolidated petitions for review of the Climate Rules.


The SEC adopted the Climate Rules—which require publicly traded companies to disclose, among other things, information on their Scope-1 and Scope-2 greenhouse gas emissions and climate-related risks—by a 3-2 vote on March 6, 2024. Reporting obligations under the Climate Rules were to be phased in over several years according to the size of the company and the type of disclosure, with the first compliance period beginning in 2025.



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SOCIAL


Severe Injury Reports

September 14, 2024


OSHA’s new Severe Injury Report dashboard allows the public to search and download data by year, industry NAICS code, state, establishment name (i.e., employer), and Occupational Injury and Illness Classification System codes. The dashboard includes information on all severe injuries reported by employers covered under federal OSHA from 2015 through the end of 2023.


OSHA defines a severe injury as “an amputation, in-patient hospitalization, or loss of an eye.”


Source: OSHA


What's New in the 2025 IATA DGR?

September 6, 2024


The International Air Transport Association announced significant changes to the 66th edition of the Dangerous Goods Regulations. Updates take effect January 1, 2025.


Source: Lion


Proposed Heat Injury and Illness Prevention Standard

September 3, 2024


OSHA is proposing a new standard to address heat injury and illness prevention that would apply to outdoor and indoor work in all general industry, construction, maritime, and agriculture sectors. OSHA is proposing to exclude from the new standard short duration employee exposures to heat, emergency response activities, work at indoor sites below 80°F, telework, and indoor sedentary work activities. Employers would be required to develop and implement a plan to evaluate and control heat hazards in the workplace.


Source: OSHA


GOVERNANCE


Stand by ESG? The State of 2024 U.S. Sustainability Reports

September 20, 2024


The long-awaited U.S. Securities and Exchange Commission’s climate disclosure rule was legally challenged and halted within a few months of it being finalized. Ironically, California finalized its own climate disclosure rules that go beyond the requirements of the SEC’s rule. Outside of the U.S., dozens of countries have announced that they will adopt rules mandating disclosure to the International Sustainability Standards Board (ISSB) sustainability framework. And the first European Union’s Corporate Sustainability Reporting Directive (CSRD) disclosures are due next year for many companies. Of course, all these regulatory initiatives come amidst the ongoing “anti-ESG” campaign led by politicians and activist groups.


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