Senate Democrats pass long-awaited climate, tax and health care bill
Manchin releases permitting wish list
Court overturns Trump-era decision to open central California lands to drilling
CFTC spotlights voluntary carbon markets
Republicans push to overturn permitting rules
Sinema addresses drought as part of Inflation Reduction Act deal
Proposed rules aim to build trust in carbon-credit market
This article outlines pertinent legal and policy climate change developments in the United States in early August 2022 (for further details please see "Climate change policy update"(1)
Senate Democrats pass long-awaited climate, tax and health care bill
On 7 August 2022, the Senate passed the Inflation Reduction Act of 2022, which provides "more than $300 billion into climate change and clean energy". The measure is scheduled for consideration in the House of Representatives on 12 August 2022.
Manchin releases permitting wish list
Senator Joe Manchin's office released a draft of a "sweeping list of environmental permitting changes that are 'under consideration' as Senate Democrats look to advance the biggest climate legislation in U.S. history". The suggested reforms include "two-year shot clocks on environmental reviews, changes to Clean Water Act approvals, limitations on judicial review and expanding the scope of the federal permitting council to include mining".
Court overturns Trump-era decision to open central California lands to drilling
The United States District Court for the Central District of California Western Division settled a lawsuit brought by Governor Gavin Newsom and Attorney General Rob Bonta against the Bureau of Land Management (BLM) regarding new oil and gas drilling on public lands. Officials were concerned about damage being caused to the area if no appropriate analysis of the project's impact on the environment and local residents took place.
Bonta commented that:
The Trump Administration recklessly opened Central California up to new oil and gas drilling without considering how fracking can hurt communities by causing polluted groundwater, toxic air emissions, minor earthquakes, climate impacts, and more.
The settlement places "a moratorium on new oil and gas leasing while the BLM conducts a more thorough review".
CFTC spotlights voluntary carbon markets
The Commodity Futures Training Commission (CFTC) has taken steps towards adopting a "whole-of-government approach to the mitigation of climate-related financial risk." More specifically, the CFTC held a voluntary carbon markets convening and circulated a request for information to solicit comments until 7 October 2022 regarding climate-related financial risk.
Republicans push to overturn permitting rules
On 4 August 2022, the Senate passed a Congressional Review Act resolution on a 50-47 vote to:
overturn a White House rule finalized in April that requires federal agencies to consider indirect and cumulative environmental impacts – including those related to climate change – under National Environmental Policy Act reviews.
Prior to the vote, Senate Republicans indicated that they would not work with Manchin on permitting reform unless he supported the resolution.
Sinema addresses drought as part of Inflation Reduction Act deal
Western America is currently dryer than it has been for about 1,200 years. Arizona has reached its 27th year of long-term drought. In an effort to secure Senator Sinema's vote for the Inflation Reduction Act of 2022, Senate Democrats agreed to provide $4 billion in funding to address the droughts in the west.
Proposed rules aim to build trust in carbon-credit market
The Integrity Council for the Voluntary Carbon Market published a "set of standards for carbon credits and a draft framework for applying them." The standards include suggestions for carbon projects and credit registries.
For further information on this topic please contact Kenneth Markowitz, Stacey H Mitchell or Christopher A Treanor at Akin Gump Strauss Hauer & Feld LLP by telephone (+1 202 887 4000) or email ([email protected], [email protected] or ctreanor[email protected]). The Akin Gump Strauss Hauer & Feld LLP website can be accessed at www.akingump.com.
Leila Fleming, public policy specialist, assisted with the preparation of this article.
Endnotes
(1) Further information is available here.