U.S. Federal Courts Vacate Federal Highway Administration Greenhouse Gas Rule

On Tuesday, April 2, 2024, in Commonwealth of Kentucky v. Federal Highway Administration¸ No. 23-162 (W.D. Ky.), the U.S. District Court for the Western District of Kentucky vacated the Federal Highway Administration December 2023 Greenhouse Gas Rule (see our prior blog post here for a more detailed summary of the Rule). That rule, proposed in July 2022 and modeled off of a rule proposed by the Obama administration in 2017 but repealed by the Trump administration before it could take effect, sought to require each state to set declining targets for tailpipe carbon dioxide emissions from vehicles on the National Highway System. Tuesday’s ruling follows a similar one from the U.S. District Court for the Northern District of Texas on March 28, 2024, in State of Texas v. U.S. Dep’t of Trans. No. 23-304 (N.D. Tex.) that purported to vacate the rule nationwide.

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The Newest Phase of EPA’s Greenhouse Gas Emissions Standards: Phase 3

On March 29, 2024, the U.S. Environmental Protection Agency (EPA) announced its most recent national greenhouse gas (GHG) pollution standards for heavy-duty (HD) vehicles, including HD vocational vehicles and tractors. The rule establishes new CO2 emission standards for model year (MY) 2032 and later HD vehicles, with more stringent CO2 standards phasing in as early as MY 2027 for certain vehicle categories.

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California Agencies Proceed With Revisions to Vapor Intrusion Guidance

California agencies issued a public notice that they will hold a workgroup to answer questions and engage with stakeholders on the agencies’ latest vapor intrusion guidance. The workgroup comes following years of confusion among stakeholders regarding the agencies’ application of draft guidance for addressing vapor intrusion, including during site cleanup and redevelopment.

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U.S. Department of Transportation Announces $623M in Grants for Electric Vehicle Infrastructure

On January 11, 2023, the Department of Transportation (DOT) announced $623M in grants to expand electric vehicle (EV) charging infrastructure. The grants are part of the Infrastructure Investment and Jobs Act’s Charging and Fueling Infrastructure Discretionary Grant Program and have been made available to fund 47 EV charging and alternative fueling infrastructure projects in 22 states and Puerto Rico. Ranging from $500,000 to about $68.3M, 36 of the grants were awarded to EV charging and hydrogen fueling “community” projects in rural and urban communities, while the remaining 11 grants were awarded to “corridor” projects focused on fueling along roadways to assist in establishing national EV charging and alternative fueling networks.

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U.S. EPA Issues Draft Final Oil and Gas Methane Rule

The U.S. Environmental Protection Agency (EPA) released a draft of its final oil and gas methane rule on December 2, 2023. It may be some time before the final rule is officially published in the Federal Register, starting the clock on the rule’s compliance obligations. Interested parties will need that extra time to fully digest the 1,690-page draft final rule, which addresses methane emissions from new (in subpart OOOOb) and existing sources (in subpart OOOOc). Here are some of the rule’s key aspects to consider. (more…)

U.S. Department of Transportation Publishes Final Rule on State Greenhouse Gas Performance Measures 

On December 7, U.S. Department of Transportation Federal Highway Administration (FHWA) published a final rule providing state Departments of Transportation (DOTs) and Metropolitan Planning Organizations (MPOs) a national framework to track transportation-related greenhouse gas (GHG) emissions and set targets for reduction. The rule adds a new GHG performance management measure to the existing FHWA national performance measures and creates a system under which state DOTs and MPOs must set targets for reducing roadway travel GHG emissions. Stakeholders that contract with states to build infrastructure should take note of these new mandates.

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U.S. Fifth Circuit Reverses EPA’s Denial of Fuel Program Hardship Exemption for Refineries

In Calumet Shreveport Refining LLC v. EPA, Case No. 22-60266 (5th Cir. Nov. 22, 2023), the U.S. Court of Appeals for the Fifth Circuit struck down Environmental Protection Agency (EPA) denials of six small refineries’ petitions for hardship relief under the Clean Air Act Renewable Fuel Standard (RFS) program, holding that EPA used an “impermissibly retroactive” standard to deny the refineries’ petitions in violation of the Administrative Procedure Act. This ruling could serve as a basis for other refineries to challenge EPA’s retroactive denial of their hardship petitions — and provides support for similar petitions pending before the U.S. Court of Appeals for the D.C. Circuit.

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California Air Resources Board Revisits Advanced Clean Fleets Rule Through Formation of Truck Regulation Advisory Committee

In April 2023, the California Air Resources Board (CARB) passed its Advanced Clean Fleets (ACF) rule, which will require California medium- and heavy-duty truck and bus fleet owners with over $50 million in annual revenue to transition to zero emission vehicles through a phaseout of their existing internal combustion engine–powered vehicles by 2045. On July 26, 2023, while the ACF rule was pending with the California Office of Administrative Law for a final determination prior to release, CARB withdrew the regulatory package with the intention of resubmitting it “at a subsequent date.” CARB is now forming a Truck Regulation Advisory Committee and, on August 22, 2023, will host a public meeting to discuss and solicit feedback on future efforts to implement the ACF rule. Instructions for participation in this public meeting can be found here.

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Resources

 

Meet the Team

<a target=‘_blank’ href="https://www.sidley.com/en/people/v/vrielink-cliff-w">Cliff W. Vrielink</a>

Cliff W. Vrielink

Houston
<a target=‘_blank’ href="https://www.sidley.com/en/people/i/irvin-kenneth-w">Kenneth W. Irvin</a>

Kenneth W. Irvin

Washington, D.C.
<a target=‘_blank’ href="https://www.sidley.com/en/people/h/higgins-tara">Tara Higgins</a>

Tara Higgins

New York
<a target=‘_blank’ href="https://www.sidley.com/en/people/h/hamner-iii-herschel-t">Herschel T. Hamner III</a>

Herschel T. Hamner III

Houston
<a target=‘_blank’ href="https://www.sidley.com/en/people/m/macarthur-james">James MacArthur</a>

James MacArthur

London
<a target=‘_blank’ href="https://www.sidley.com/en/people/a/atkins-raymond-a">Raymond A. Atkins Ph.D.</a>

Raymond A. Atkins Ph.D.

Washington, D.C.
<a target=‘_blank’ href="https://www.sidley.com/en/people/l/lewis-kevin-p">Kevin P. Lewis</a>

Kevin P. Lewis

Houston
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