On August 9, 2023, the U.S. Environmental Protection Agency (EPA) introduced an updated Air Emissions Reporting Rule (Updated AERR) with significant implications on myriad businesses. The comment period for the proposed AERR runs until October 18, 2023, presenting an opportunity for legal professionals and their corporations or firms to partake and potentially influence the trajectory of this key legislation. The EPA expects to finalize the AERR in Summer 2024, indicating that companies have some time to adjust to these prospective regulations.
The proposed updated AERR expands the number of firms regulated under it, includes more types of emissions to be reported and requires more frequent reporting. A notable feature of this proposition is its increased coverage allowing a more accurate depiction of the national air emissions picture.
- The new rule broadens the types of companies under its purview, potentially affecting a number of companies that weren’t previously required to report their emissions. Expectedly, this may create increased demands for corporations’ legal and compliance departments.
- The nature and variety of emissions expected to be reported under the updated guidelines have also expanded. This means more scope and detail is required in these companies’ environmental auditing exercises.
- In terms of reporting frequency, the EPA’s proposal would increase the regularity of necessary emissions reporting. This move may strain existing resources of the affected firms pushing them to reassess and better optimize their reporting processes.
Though the updated AERR is still a proposal and subject to comments and adjustments, legal professionals working in impacted companies and law firms have a crucial role to play by staying updated and engaged with these guidelines, providing insights and feedback, and preparing their respective organizations for the expected changes.
This proposed rule is part of a broader international trend towards greater environmental responsibility and transparency. Therefore, companies that not only comply but also demonstrate leadership in this area can enhance their standing in the corporate world and attain an edge in the increasingly sustainability-oriented global marketplace.