Vanderbilt University School of Engineering Nashville, Tennessee USA Global Climate Change Action and the Transportation Sector: What is Happening Now and What to Expect Leah A. Dundon, J.D. Craig E. Philip, Ph.D. Vanderbilt University School of Engineering Nashville, Tennessee USA

Transportation Sector = 23% of total global energy-related GHG emissions (2010), 27% of U.S. GHG emissions (2015) Source: EPA Source:

Paris Agreement COP21 (2015) All member countries agreed to reduce GHG emissions. Adopted a goal of holding warming “well below 2°C above pre- industrial levels” with a higher goal of 1.5°C No binding GHG emission reduction commitments; name and shame approach to enforcement/compliance through NDC’s Obama signed for the U.S. as an “executive agreement” Trump announced intent to withdraw

Implementing the Paris Agreement in the U.S. Massachusetts v. EPA (2007) Greenhouse gases meet the definition of “pollutant” under the CAA and must be regulated if they endanger public health of welfare EPA endangerment finding (2009) Clean Power Plan – stayed by SCOTUS Feb. 2016 But unless the endangerment finding is reversed (unlikely), EPA still has a legal obligation under the Clean Air Act to regulate green house gases.

Climate Change Action International US: There are now over 1,200 climate change-relevant laws worldwide, a twentyfold increase over 20 years. The rate of enactment has decreased from 100+ new laws annually in 2009–13 to ~40 new laws in 2016. Future will be focused on filling gaps and strengthening existing laws Courts: outside the U.S., 250 court cases have addressed climate change, with 2/3 of the decisions strengthening climate change policies and 1/3 weakening them US: Market forces (hydraulic fracturing) enabling move away from coal to natural gas Industry-led voluntary initiatives State laws and policies (RGGI, CA vehicle emissions standards, etc.) NGOs / courts (NEPA) ESG Reporting Source: LSE Grantham Research Institute on Climate Change and the Environment and Columbia University

International Climate Change Action in the Transport Sector IMO Regulation 22A – beginning of collecting and reporting data Ships of 5,000 gross tonnage and higher must collect and report data on fuel oil consumption (beginning 1/1/19) First step towards future decisions and solidifying IMO as the appropriate regulator 3% of global emissions (about the size of Germany’s emissions annually) and significant growth expected

Climate Change Risk Reporting SEC 2010 Interpretative Guidance on climate risk reporting in SEC filings SEC Rule 10-b(5) (prohibits fraud, applies to transitions of all securities – including private issuers) Shareholder pressure State enforcement (NYAG investigations and settlements) Future: 2016 SEC Concept Release; lawsuits challenging adequacy of disclosure; increased enforcement/penalties; change in law; development of practical disclosure standards

Climate Risk Reporting (cont’d) FSB’s Task Force on Climate-Related Disclosure (TFCD) June 2017 – framework for standardizing climate related risk disclosure Governance Strategy Risk Management Metrics and Targets SASB “Climetrics” -- first climate ratings for funds Envonet.com Vanguard

What does this mean for inland waterway transport?

NEPA “requires informed decision making but not necessarily the best decision” NEPA requires consideration of climate change impacts of proposed federal actions (“hard look”) Must include reasonably foreseeable indirect environmental effects of the project 40 C.F.R. § 1502.16(b) Trump rescinded CEQ guidance – may make it more uncertain how agencies are to comply with NEPA climate change requirements (Sierra Club v. FERC, August 22, 2017), potentially slowing down energy projects Expect more challenges to inadequate consideration of GHG emissions from production, transport, and consumption of fossil fuel projects $3.8 billion project at Dominion Cove Point Liquefied Natural Gas (LNG) Plant EarthReports, Inc., v. FERC, D.C. Cir. (July 15, 2016)

Extreme Weather High precipitation Drought Low temps (< 0°C) An office barge in the Mississippi River in 2012 during the worst drought in 50 years January 1996 Pittsburgh Flood High precipitation Drought Low temps (< 0°C)

CWA 404 / RHA § 10 Dredging National Marine Fisheries Service (August 17, 2017 final rule) Designation of critical habitat for ESA-listed sturgeon occupied areas in more than 4,000 miles of river and other waters in the east Eastern U.S. dredging projects likely will have to undergo ESA §7 consultation

Thank you! Leah A. Dundon leah.a.dundon@Vanderbilt.edu Craig E. Philip craig.e.philip@Vanderbilt.edu