Facilities across the U.S. should brace for heightened climate-driven enforcement from federal agencies, particularly the U.S. Environmental Protection Agency (EPA). Following the EPA’s recent announcement of its Climate Enforcement and Compliance Strategy, the Agency is intensifying its enforcement and compliance programs to address climate change comprehensively. This move aligns with President Biden’s Executive Order 14008, advocating a holistic government approach to the climate crisis. Notably, the EPA has launched its first National Enforcement and Compliance Initiative on climate change, focusing on methane emissions at oil, gas facilities, landfills, and the illegal import of hydrofluorocarbons (HFCs).

 

Companies with significant Greenhouse Gas (GHG) emissions should anticipate:

 

  1. Increased Scrutiny: The EPA will prioritize actions against high-GHG emitters, including oil and gas facilities and landfills.
  2. Higher Penalties: Expect steeper penalties for GHG-related violations, more GHG-driven injunctive relief, and additional climate adaptation requirements.
  3. Beyond Clean Air Act (CAA): Climate-focused relief measures will extend beyond CAA, emphasizing green technologies at Superfund sites and enhancements in Clean Water Act settlements.
  4. Detailed GHG Reporting: The EPA will closely examine GHG emissions reports. Facilities should ensure their submissions align with reporting regulations.
  5. GHG Reduction Projects: The EPA will favor Supplemental Environmental Projects that mitigate GHGs. Clean and renewable energy projects could be beneficial, especially in high-penalty cases.
  6. Focus on Environmental Justice (EJ) Communities: Facilities in EJ communities will face more climate-related scrutiny. Engaging with local communities and focusing on community-centric injunctive relief will be crucial.

 

Facilities should be ready to address these changes promptly. The Biden Administration is set to amplify EPA enforcement in the coming months and years. Additionally, with the Securities and Exchange Commission finalizing its Climate Risk Disclosure Rule, facilities must ensure their public information and emissions reporting are consistent and accurate.