P. Scott Burton

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After a disappointing showing in Mexico’s recent mid-term elections, President Andrés Manuel López Obrador (AMLO) and his Morena party will face greater hurdles to unwinding Mexico’s 2013 Energy Reforms adopted by the former ruling party, the Partido Revolucionario Institucional (PRI). Although retaining a majority in the Chamber of Deputies and gaining some new state governors, Morena lost its supermajority and, as a result, very likely also lost the opportunity to implement constitutional changes to reverse the 2013 Energy Reforms and achieve its goal of a nationalized energy sector in Mexico.
Continue Reading Could Mexico’s Mid-Term Elections Signal a Return to Energy and Environmental Policy Rationality?

The Biden Administration’s enforcement priorities began to take shape last week, as the US Environmental Protection Agency’s (EPA) enforcement arm issued a pair of memoranda encouraging the use of certain tools in civil enforcement and settlements and for prioritizing enforcement efforts in environmental justice communities. Lawrence E. Starfield, a senior career EPA official currently serving as Acting Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance (OECA), issued both memoranda. The memos demonstrate a concrete shift in EPA’s enforcement philosophy—doubling down on Next Generation or “NextGen” compliance tools and Supplemental Environmental Projects (SEPs), and focusing on environmental justice—under the new administration. The specific ways in which EPA enforcement staff will carry out these policies are not yet known and will develop over time, but it is important for regulated entities to be aware of, and prepared for, EPA’s use of NextGen compliance tools and focus on strengthening enforcement in environmental justice communities.
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Continue Reading EPA Enforcement Policies Prioritize Environmental Justice and Embrace “NextGen” Compliance Tools

In challenges to California development projects, the “usual suspects” typically include environmental NGOs or neighborhood organizations.  However, that’s not always the case, as illustrated by a new lawsuit filed by the South Coast Air Quality Management District (“SCAQMD”) against the Port of Los Angeles. …
Continue Reading With ZEVs and Air Toxics in Mind, CARB Seeks to Inject Itself into SCAQMD’s Lawsuit Against Port of LA

BSEE’s August 2020 update of its Notice to Lessees signals renewed interest in decommissioning of aging oil & gas platforms offshore of California. While so-called “rigs to reefs” in-place decommissioning is a potential option, uncertainty remains surrounding decommissioning methods and timing for platforms, pipelines and related infrastructure located in state and federal waters off the coast of California.
Continue Reading BSEE Renews Offshore Platform Decommissioning Guidelines

The Equator Principles (EPs) are a framework for assessing and managing environmental and social risk associated with project financing. The EPs provide a minimum due diligence standard and monitoring protocol supporting responsible risk assessment and decision-making. The EPs apply globally, to all industry sectors, and are focused on risk management for projects financed by the financial institutions that have adopted the EPs. Currently, the EPs have been adopted by 105 financial institutions across 38 countries. The EPs oblige financial institutions to make informed investment decisions and withhold or withdraw financing on projects or assets not conforming to “good international industry practice.” The EPs incorporate IFC’s Environmental and Social Performance Standards (IFC Performance Standards) and World Bank Group Environmental, Health, and Safety Guidelines.
Continue Reading EP4 – What’s New and What’s Next for the Enhanced Equator Principles?

On April 15, 2020, the California Environmental Protection Agency, the umbrella agency for California’s environmental boards, departments, and offices (e.g., CARB, DPR, DTSC, OEHHA, SWRCB) issued a Statement on Compliance with Regulatory Requirements During the COVID-19 Emergency. The Statement comes in the wake of numerous questions regarding environmental compliance obligations for California facilities impacted by COVID-19. It follows COVID-19 guidance issued by U.S. EPA and various announcements by the state boards and local districts that are on the front lines of administering state, local, and federal environmental programs affecting public health and the environment, as well as companies operating facilities in California, like refineries, oil and gas terminals, mining, food processing, and other manufacturing operations.
Continue Reading CalEPA, Stepping into the Perceived Breach, Issues COVID-19 Regulatory Compliance Statement

Facing criticism that they impede sustainable development, traditional cross-border investor protections are eroding. More balanced stabilization and equitable treatment provisions allow greater discretion to regulate environmental and social impacts. Enhanced due diligence, focused on project impacts, international standards, CSR obligations and regulatory discretion in applicable treaties or investment contracts, can help offset this increased risk.
Continue Reading Eroding Investor Protections: Managing CSR and Political Risk in the Sustainable Brave New World

From California to the South China Sea, uncertainties surrounding offshore oil and gas platform decommissioning regulations and financial obligations pose a significant risk to the environment and to responsible natural resource development. “Rigs to reefs” decommissioning pioneered in the US Gulf Coast provides a model promising reduced costs, a net reduction in environmental impacts and enhanced ecological benefits; welcomed in some jurisdictions and questioned in others, time will tell whether RTR can deliver its promises.
Continue Reading Offshore Platform Sustainable Decommissioning – “Rigs to Reefs” Goes Global

The South Coast Air Quality Management District’s (SCAQMD or the District) Regional Clean Air Incentives Market (RECLAIM) made history as California’s first emissions cap-and-trade program. But the District’s decision to sunset the program has resulted in significant uncertainty surrounding RECLAIM’s transition for local communities and industry alike.

Widely acclaimed at its 1993 inception, the program was intended to promote more efficient emissions reductions by allowing facilities to meet their annual cap either by adopting pollution controls directly or by purchasing RECLAIM trading credits (RTCs) from other facilities able to install controls at lower cost and achieve emissions below their caps. In its early years supporters praised RECLAIM as a success, pointing to significant reductions across the South Coast Air Basin. But in more recent years, the US Environmental Protection Agency (EPA) and other stakeholders criticized RECLAIM as falling short of expectations, pointing to periods of RTC price spikes reducing the program’s coverage and a subsequent glut of RTCs from plant closures that critics claim lowered the incentive for pollution reductions at remaining RECLAIM facilities.
Continue Reading SCAQMD’s Historic RECLAIM Program Sunset Faces Questions on the Horizon

The costs of overly nationalistic policies likely outweigh the benefits for Mexico with respect to the international energy community. If the AMLO administration chooses to attempt nationalization of the considerable foreign investment which followed the 2013 Energy Reforms in an effort to stay true to its campaign rhetoric, it would not be surprising to witness Mexico’s rapid descent into international pariah status.
Continue Reading US-Mexico Energy & Environmental Policy Transition: Opportunity Amidst Uncertainty?