Insights

There has been a lot of talk about diversity, equity and inclusion (DEI) lately, largely due to two recent Executive Orders (EO 14151 and EO 14173) (collectively referred to as “the EOs”) signed by President Trump during his first days in office and subsequent implementing memos issued by the Office of Management and Budget (OMB), the Office of Personnel Management (OPM), and the Justice Department. The EOs aim first to dismantle DEI “mandates, policies, programs, preferences, and activities in the Federal Government.” Specifically, the EOs task the Director of the OPM with reviewing and revising all federal employment practices, union contracts, and trainings to ensure elimination of all DEI and related programs. They next direct federal agencies to combat private sector DEI through civil compliance investigations, to terminate equity-related initiatives, programs, grants, or contracts, and to require certifications (with potential False Claims Act liability if the certifications are not valid) that the contractor or grantee “does not operate any programs promoting DEI that violate any applicable federal anti-discrimination laws.”  These EOs are discussed in detail in our prior Alert.

On March 6, 2024, the U.S. Securities and Exchange Commission (SEC) voted to finalize a rule that requires regulated issuers to disclose information regarding their greenhouse gas (GHG) emissions and other climate-related information. First proposed in 2022, the final rule has been scaled back in some significant ways from what was initially proposed. Notably, the final rule requires only large accelerated filers and non-exempted accelerated filers to disclose direct and energy-related (Scope 1 and 2)[1] GHGs—and only if such emissions are material to the business strategy, results of operations, or financial condition of a registrant—with no Scope 3 requirement to report on other indirect emissions (Scope 3). By comparison, the proposed rule would also have required Scope 1 and 2 emissions disclosures for all types of regulated entities regardless of materiality, and Scope 3 disclosures required of certain filers if material. The final rule reflects a heightened focus on materiality regarding disclosures of climate-related risks, and adjusts assurance requirements. It also extends the timing of GHG reporting, when required, to at least 2026 (for FY 2025 data) and phases in the assurance requirements. As soon as the SEC voted to finalize the rule, ten states (West Virginia, Georgia, Alabama, Alaska, Indiana, New Hampshire, Oklahoma, South Carolina, Virginia, and Wyoming) filed a petition for review in the Eleventh Circuit challenging the final rule.

For the RSL, EPA regions should now use an RSL of 200 parts per million (ppm). (Before this new guidance, the RSL was 400 ppm.) However, EPA regions should use an RSL of 100 ppm if an additional source of lead is identified (e.g., lead water service lines, lead-based paint, or non-attainment areas where the air lead concentrations exceed National Ambient Air Quality Standards [NAAQS]). The recommended RSL of 100 ppm considers aggregate lead exposure and increased risk to children living in communities with multiple sources of lead contamination.