A dynamic regulatory environment is nothing new to most regulatory compliance and sustainability professionals. However, the number of proposed changes this year from the Environmental Protection Agency (EPA) may seem overwhelming.
Let’s recap what’s changed so far.
- In March, the EPA announced 31 reconsiderations to rules under the Clean Air Act, Clean Water Act and the Risk Management Program.
- In August, it proposed overturning the foundational 2009 “Endangerment Finding,” which has provided a scientific and legal basis for GHG regulation since 2009. It has helped organizations measure and report GHG emissions while simultaneously providing insights where emission hotspots may lie and direction for future standards.
- And more recently, the EPA signed a proposed rule to permanently remove greenhouse gas (GHG) reporting program obligations for 46 source categories after the reporting year 2024 and to suspend GHG emissions reporting for select Subpart W segments within the oil and gas sector until the reporting year 2034.
If finalized, these changes could impact key standards for power plant emissions, vehicle tailpipe limits and other GHG-related regulations, such as 40 CFR 98.
Now what?
As the regulatory landscape continues to evolve, many environmental professionals are asking what these proposals mean for their organizations. Below are answers to some of the most pressing questions.
How soon will these proposed changes go into effect?
While the proposed changes appear imminent, the process must still go through several stages. Most proposals to date stem from a presidential executive order instructing the agency to revise or reset existing regulations. However, that’s only the first step in a lengthy process that can take months or longer to finalize.
All proposed changes must go through the full rule-making process before being finalized, published in the Federal Register and becoming effective for compliance purposes. This provides organizations with time to prepare.
If federal reporting requirements are eliminated, are companies still exposed to other compliance requirements?
Should the proposed changes to the federal regulations and standards be finalized and implemented, other state and local regulations will remain in effect. Companies are expected to follow and comply with all applicable, published regulations—federal, state, local and international—while proposed changes are reviewed and undergo the necessary rule-making processes.
What to do now
At Sphera, we recommend taking a proactive approach:
- Stay informed – Monitor regulatory developments closely. Sphera’s CyberRegs solution tracks changes at both federal and state levels, providing real-time visibility into evolving requirements.
- Stay compliant – Continue meeting current standards. Staying compliant protects your license to operate and maintains trust with domestic and international stakeholders, customers and regulators. Sphera’s Compliance Assurance solution enables companies to maintain a compliance register and track in-depth compliance status across their organization.
- Remain audit-ready – Transparency is key. Sphera’s Environmental Accounting solution offers near real-time data processing and a transparent calculation engine. The solution provides traceability down to the activity level, enabling you to demonstrate compliance confidently even amid regulatory ambiguity.
- Stay involved – Use the public comment period to share your perspective with the EPA. Build a defensible record, engage with agency members and contribute to shaping the future of environmental regulations.
Strategic considerations
This is a time for companies to assess their response and strategy to these proposed deregulations through a strategic lens. Most companies are aligning their operational strategies with external commitments, evaluating their organization’s risk tolerance and preparing for a prolonged period of regulatory ambiguity while maintaining compliance.
Sphera is here to help you navigate this evolving landscape. Connect with our team to explore tools, resources and consulting services that help you stay informed, compliant and ready for what’s next.
