United States
U.S. Securities and Exchange Commission (SEC) Voluntarily Stays Climate Rules
On April 4, 2024, the SEC issued an order which voluntarily stayed its climate rules, which were previously announced on March 6, 2024. The SEC noted that the stay “avoids potential regulatory uncertainty” for registrants as various legal challenges remain pending. Please see our summary of the status of the challenge to the rules in the U.S. Court of Appeals for the Fifth Circuit (Fifth Circuit) for further detail.
Please see our client alert on the voluntary stay for more information.
Environmental Protection Agency (EPA) Announces Final Rules Governing Vehicle Emissions Standards
In March 2024, the EPA announced final rules for light-, medium-, and heavy-duty vehicles. The light-duty and medium-duty emissions standards set new emissions requirements for light- and medium-duty vehicles to reduce smog- and soot-forming pollution from vehicles and will phase in over model years 2027 through 2032. The final rules for heavy-duty vehicles set stronger emissions standards for heavy-duty vehicles in an effort to reduce greenhouse gas emissions from vehicles such as tractors, trucks, and refuse haulers. The heavy-duty vehicle standards enable each manufacturer to choose the type of emissions control technologies best suited to them and their customers and will apply to heavy-duty vehicles beginning in model year 2027.
U.S. Patent and Trademark Office (USPTO) Continues to Accelerate Patent Examination Based on Climate Change Mitigation
In an expanded second phase of the Climate Change Mitigation Pilot Program (CCMPP), the USPTO has granted 621 applications under the CCMPP out of 852 petitions filed as of March 19, 2024. The CCMPP program will continue until the earlier of June 7, 2027, or until a total of 4,000 grantable petitions have been filed. The statutory criteria for qualifying CCMPP applications are a) removing greenhouse gases; b) reducing additional greenhouse gases; and/or c) monitoring, tracking, and/or verifying greenhouse gas emission reductions. Recent examples of qualifying applications include: i) processes for lithium extraction from naturally occurring brine; ii) methods for decomposing ammonia to produce gaseous hydrogen for use in a fuel cell; and iii) methods for solar array construction involving autonomous positioning of individual solar modules. These recent examples provide evidence that the USPTO recognizes that additional technologies can fall under the scope of the CCMPP program beyond the statutorily mandated greenhouse gas programs.
States Take Measures to Ban Cell-Grown Meat
Legislators in multiple states are advancing measures to prohibit cell-cultivated meat production and penalize associated manufacturing, distribution, or serving practices. The manufacturing process involves cultivation of real animal cells, as opposed to traditional farming practices. Florida is poised to become the first state to successfully implement such a prohibition after its legislature passed a bill. The bill is currently awaiting Governor Ron DeSantis’s approval. The Florida legislation would criminalize the manufacture, sale, or distribution of cell-grown meat products, but it would not prohibit its cultivation for research purposes.
Washington Enacts Legislation to Promote Carbon-Free Fusion Power
On March 28, 2024, Governor Jay Inslee of Washington signed legislation (SHB 1942) to classify fusion power as a clean energy source, a move which supports the state’s climate change mitigation goals. SHB 1942 stipulates that the Energy Facility Site Evaluation Council and the Department of Health must establish a work group to formulate plans for the creation and licensing of fusion energy plants. There are several companies in the Pacific Northwest that are actively working towards the commercialization of fusion technology who may benefit from this legislation. SHB 1942 will become effective on June 6, 2024.
Europe
European Union (EU) Delays Nature Restoration Act
Following increasing opposition by several Member States, the Council of the EU (the Council) canceled the formal vote on the Nature Restoration Act on March 24, 2024. The Council and the European Parliament had earlier agreed on a compromise for the proposed regulation, which the European Parliament formally approved on February 27, 2024. Approval is required by both co-legislators.
The compromise text of the regulation called for Member States to restore at least 30 percent of covered habitats by 2030, increasing to 60 percent by 2040, and 90 percent by 2050. Demands of the Member States had already significantly reduced the scope of the proposed law, but some countries are pushing for further concessions. The Belgian Presidency of the Council suggested revisiting it only after the EU elections in June 2024.
Latin America
Brazilian Securities and Exchange Commission (CVM) Amends Requirements for Diversity Disclosures for Publicly Traded Companies
The CVM has amended CVM Resolution No. 80 and will now require the disclosure of information on Persons with Disabilities (PWDs) in the Reference Form of publicly traded companies in Brazil. The amendment to CVM Resolution No. 80 expands the mandatory information regarding diversity within the administrative bodies and the workforce of publicly traded companies. The disclosure of information about PWDs will be mandatory starting in 2025.
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