| Biobased and Renewable Products Update |
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April 25, 2019 |
Federal
EPA Announces Proposed
Procedures For Review Of CBI Claims For The Identity Of Chemicals On The TSCA
Inventory
On April 23, 2019, the U.S. Environmental Protection
Agency (EPA) issued a proposed rule regarding its plan to review certain
confidential business information (CBI) claims to protect the specific chemical
identities of substances on the confidential portion of the Toxic Substances
Control Act (TSCA) Inventory. 84 Fed. Reg. 16826. The
CBI claims that would be reviewed under this plan are those that were asserted
on Notice of Activity (NOA) Form A’s filed in accordance with the requirements
in the Active-Inactive rule. Comments are due June 24, 2019. See Bergeson & Campbell,
P.C.’s (B&C®) full memorandum for more information on the
proposed rule.
EPA Proposes TSCA CDR
Revisions And Update To Small Manufacturer Definition For TSCA Section 8(a)
On April 25, 2019, EPA issued a proposed rule that would
amend the TSCA Section 8(a) Chemical Data Reporting (CDR) requirements and the
TSCA Section 8(a) size standards for small manufacturers. The
current CDR rule requires manufacturers (including importers) of certain
chemical substances listed on the TSCA Inventory to report data on chemical
manufacturing, processing, and use every four years. EPA is proposing
several changes to the CDR rule to make regulatory updates to align with new statutory
requirements of TSCA, improve the CDR data collected as necessary to support
the implementation of TSCA, and potentially reduce the burden for certain CDR
reporters. Proposed updates to the definition for small manufacturers,
including a new definition for small governments, are being made in accordance
with TSCA Section 8(a)(3)(C) and impact certain reporting and recordkeeping
requirements. Overall, according to EPA, the regulatory modifications may
better address EPA and public information needs by providing additional
information that is currently not collected; improve the usability and
reliability of the reported data; and ensure that data are available in a
timely manner. Comments are due by June
24, 2019. See
B&C’s full memorandum for more information on the
proposed rule.
Industry
IRFA Speaks Against SREs
For The 2018 RFS Blend Levels
On April 17, 2019, the Iowa Renewable Fuels Association
(IRFA), a Biobased and Renewable Products Advocacy Group (BRAG®)
member, spoke at a press conference alongside Iowa Secretary of Agriculture,
Mike Naig, on how the approval of small-refinery exemptions (SRE) for the 2018
Renewable Fuel Standard (RFS) blend levels would undermine RFS in an
irreversible way. IRFA’s Executive Director, Monte Shaw,
pointed out that under current conditions all a refinery needs to show
significant disproportionate economic harm to be granted an SRE is to purchase
Renewable Identification Numbers (RIN). RINs, also known as compliance
credits, can be purchased for as little as eight cents, which undermines RFS
and breaks President Trump’s promise to protect the 15-billion-gallon RFS.
Shaw concludes: “[t]he bottom line is this: If you grant SREs
under these circumstances with eight-cent RINs, then what EPA is really saying
is that they will always grant SREs and the hope of a true 15-billion-gallon
RFS is dead.”
International
European Financial Leaders
Publish Open Letter On Climate-Related Financial Risks
On April 17, 2019, Mark Carney, Governor of the Bank of
England, Francois Villeroy de Galhau, Governor of the Banque de France, and
Frank Edelson, Chair of the Network for Greening the Financial Services (NGFS),
published an open letter on the financial implications of global warming.
Co-signed by the NGFS coalition, consisting of 34 central banks, the
letter warns of global warming’s potential damage to infrastructure and private
property, negative human health effects, decrease in productivity, and wealth
destruction. The letter states that no countries are immune to the
effects of climate change and that “[i]f some companies and industries fail to
adjust to this new world, they will fail to exist.” Although the Paris
agreement has and continues to promote a low-carbon economy, further measures
would be central to achieving zero net zero carbon emissions by 2050. Key to
reaching this goal would be a massive reallocation of capital, the financial
experts highlight.
Given the challenges associated with achieving zero-carbon emissions, in the
letter, Carney, Villeroy de Galhau, and NGFS members propose four
recommendations to policymakers and financial firms:
| ■ |
The integration of climate-related financial
risks into daily work, financial stability monitoring, and board risk
management. Policymakers and financial firms should conduct scenario
analyses and take a long-term strategic approach, which considers risks
associated with global warming. These risks should be embedded it into
their business-as-usual governance and risk-management frameworks. |
| ■ | Leadership by example, particularly by central banks, to integrate sustainability into their own portfolio managemen |
| ■ | Internal and external collaboration among public authorities to bridge data gaps important to assessments of climate-related risks. |
| ■ | In-house capacity building and knowledge sharing with various stakeholders on the financial risks related to climate change. |
According to the letter, the successful implementation of these four
recommendations would lead to two broader calls for action on disclosure and
classification of these risks. Market and regulators’ support in
assessing risks and opportunities from climate change accompanied by consistent
international disclosure are critical. In addition, NGFS members also
encourage the development of a classification system to identify economic
activities that would contribute to the transition to a low-carbon economy.
In sum, robust leadership and collaboration play a crucial role in
identifying global solutions for the financial sector.
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