Agency Rulemaking Highlights
GHG Standards for Heavy Duty Vehicles—Phase 3
The Environmental Protection Agency (EPA) is proposing new greenhouse gas standards for heavy-duty vehicles starting model year (MY) 2028 through MY 2032, and revisions to certain standards for MY 2027 vehicles. The proposed rule would eliminate MY 2027 advanced technology incentives, initially added under the Phase 2 greenhouse gas emissions rule. EPA’s proposal would add warranty requirements for batteries and other components of zero-emission vehicles, as well as customer-facing battery health monitors for hybrid and battery electric vehicles. The proposed rule would also revise EPA’s regulations addressing preemption of state regulation of locomotives. Comments due June 16.
Methylene Chloride and Human Health
EPA issued a proposal to address the effects of methylene chloride on human health under the Toxic Substances Control Act. EPA's June 2020 Risk Evaluation and its November 2022 revised risk determination identified that the substance poses an unreasonable risk of injury to human health. The proposal would prohibit the manufacture, processing, and distribution of methylene chloride for consumer use; prohibit most of its industrial and commercial uses; require a workplace chemical protection program with exposure concentration limits and monitoring; require recordkeeping and downstream notification requirements for several uses; and establish time-limited exemptions to mitigate the impact on national security and critical infrastructure. Comments due July 3.
CWA Protections for Tribal Waters
EPA announced proposed federal baseline water quality standards for waterbodies on Indian reservations that do not have Clean Water Act standards, ensuring protections for over half a million people living on Indian reservations. If finalized, this proposal would safeguard water quality on Indian reservations until Tribes are able to adopt their own CWA standards for their water bodies. EPA estimates this proposed water quality standard will increase protections for 76,000 miles of rivers and streams and 1.9 million acres of lakes, reservoirs, and other open surface waters within Indian reservations. Comments due 90 days after publication in the Federal Register.
Emergency Fuel Waiver for E15 Sales
EPA issued an emergency fuel waiver to allow E15 gasoline — gasoline blended with 15% ethanol — to be sold during the summer driving season. Currently, in roughly two-thirds of the country, E15 cannot be sold from terminals starting on May 1 and at retail stations starting on June 1. EPA is providing relief by extending the waiver that currently applies to E10 gasoline to E15, which will enable E15 sales throughout the summer driving season in these areas, if necessary. This action only extends the 1-psi waiver to E15 in parts of the country where it already exists for E10. E15 can already be sold year-round in parts of the country that have a Reformulated Gasoline program.
Combating International Drug Trafficking
Executive Order 14097 provides additional authority to the Secretary of Defense and the Secretary of Homeland Security to order Ready Reserve members to active duty to combat international drug trafficking.
Supervision of Nonbank Financial Companies
The Financial Stability Oversight Council is proposing interpretive guidance that describes the process it “intends to take in determining whether to subject a nonbank financial company to supervision and prudential standards by the Board of Governors of the Federal Reserve System.” This interpretive guidance would revise and update the 2019 Interpretive Guidance. Comments due June 27.
Medicaid Program Access
The Centers for Medicare & Medicaid Services (CMS) proposed “a comprehensive approach to improving access to care, quality and health outcomes, and better addressing health equity issues in the Medicaid program across fee-for-service (FFS), managed care delivery systems, and in home and community-based services (HCBS) programs.” CMS also issued a proposal related to access for Medicaid and Children's Health Insurance Program (CHIP) managed care enrollees. The proposal includes provisions on standards for timely access to care, State directed payments, and quality reporting requirements, and it would create a quality rating system for the Medicaid and CHIP managed care programs. Comments for both proposals due July 3.