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Brunini Law

Mississippi Environmental Quality Permit Board Summary of Meeting Held July 12, 2017

July 13, 2017 by Brunini Law

The Mississippi Environmental Quality Permit Board (“Board”) convened its regular monthly meeting at 9:00 a.m. on July 12, 2017, at the offices of the Mississippi Department of Environmental Quality, in Jackson.  Dennis Riecke chaired the meeting.

The Board approved minutes from the June meeting and the non-controversial actions/ certifications completed by the staff since the June meeting.

Following a prepared agenda, items considered were as follows:

OFFICE OF POLLUTION CONTROL – No items.

OFFICE OF GEOLOGY

In accordance with MDEQ staff recommendations, the Board approved the following surface mining bond releases:

Permittee County Permit Staff Recommendation
Baker Ready Mix – Construction – Landscaping Winston P07-029 Additional 10%
Oddee Smith & Sons, Inc. Lincoln P92-062 Final 90%
Dickerson and Bowen, Inc. Amite P94-046 Additional 70%
Dickerson and Bowen, Inc. Franklin P94-047T Final 10%
Hammett Gravel Company, Inc. Yazoo P04-010 Additional 15%
Harris Construction Company Madison P02-060A Initial 50%

In accordance with MDEQ staff recommendations, the Board approved the following surface mining permits to rescind:

Permittee County Permit
Talbot Bros. Constr. Co. and Talbot Bros. Grading Co. DeSoto P10-004A

 In accordance with MDEQ staff recommendations, the Board approved the following surface mining permits to transfer:

Permittee County Permit
Phillips Trucking Company Transferred to BBR Mining, LLC Hancock P10-034

In accordance with MDEQ staff recommendations, the Board approved the following surface mining permits to modify:

Permittee County Permit
Surface Coal Mine Red Hills Modification Choctaw MS-002 Renewal 2

 OTHER BUSINESS:

Roy Furrh, MDEQ Legal Counsel announced the retirement of Harry Wilson, Chief of the Environmental Permits Division, Office of Pollution Control and named Krystal Rudolph as his replacement.

ELECTION OF BOARD CHAIRMAN AND VICE-CHAIRMAN FOR 2017-2018

Mr. Furr also clarified the minutes from the last Board meeting that The Board unanimously voted to “elect” and not “nominate” the following:

Chair – Dennis Riecke, Mississippi Department of Wildlife, Fisheries & Parks

Vice-Chairman – James Hoffmann, Office of Land and Water

The Board unanimously approved these revisions.

The next Permit Board meeting will be held on August 8, 2017, at 9 a.m.

 

Related Attorneys

  • John E. Milner
  • Gene Wasson
  • L. Kyle Williams

Mississippi Environmental Quality Permit Board Summary of Meeting Held June 13, 2017

July 3, 2017 by Brunini Law

The Mississippi Environmental Quality Permit Board (“Board”) convened its regular monthly meeting at 9:00 a.m. on June 13, 2017, at the offices of the Mississippi Department of Environmental Quality, in Jackson.  Mr. Mike Bograd, RPG, chaired the meeting.

The Board approved minutes from the May meeting and the non-controversial actions/ certifications completed by the staff since the March meeting.

Following a prepared agenda, items considered were as follows:

OFFICE OF POLLUTION CONTROL – No items.

OFFICE OF GEOLOGY

In accordance with MDEQ staff recommendations, the Board approved the following surface mining bond releases:

 

Permittee County Permit Staff Recommendation
Milton Chad Coffee Union P07-014T Initial 20%
Foshee Construction Company, Inc. Madison P99-047 Additional 40%
Hammett Gravel Company, Inc. Yazoo P93-061 Initial 10%
Hammett Gravel Company, Inc. Yazoo P96-052 Initial 10%
Hammett Gravel Company, Inc. Yazoo P97-046 Initial 10%
Hammett Gravel Company, Inc. Yazoo P00-064 Initial 10%
Hammett Gravel Company, Inc. Yazoo POl-037 Initial 10%
Hammett Gravel Company, Inc. Yazoo P02-026 Initial 10%
Hammett Gravel Company, Inc. Yazoo P02-030AAA Initial 10%
Krystal Gravel, Inc. Copiah P79-002T2 Initial 20%
Krystal  Gravel, Inc. Copiah P02-043 Final 20%
Krystal  Gravel, Inc. Copiah P87-040T2 Additional 20%
Krystal Gravel, Inc. Copiah P92-107 Initial 50%
Krystal  Gravel, Inc. Copiah P94-103 No release
Krystal  Gravel, Inc. Copiah P95-069T2 Initial 10%
Krystal Gravel, Inc. Copiah P98-003 Final 10%
Krystal Gravel, Inc. Copiah P07-007 Initial 10%
Krystal Gravel, Inc. Copiah Pl0-027 No release
Krystal Gravel, Inc. Copiah P16-015 Initial 10%
Krystal Gravel, Inc. Copiah P16-032 No release
W. S. Newell Marshall Pl3-024 Initial 90%
W. S. Newell Marshall P13-025 Initial 90%
W. S. Newell Marshall P13-026 Initial 90%
W. S. Newell Marshall P14-007 Initial 90%
Oddee Smith & Sons, Inc. Lincoln P87-025 Final 50%
Oddee Smith & Sons, Inc. Lincoln POS-013 Final 15%
T.  L. Wallace Construction, Inc. Hinds PlS-010 Initial 90%

In accordance with MDEQ staff recommendations, the Board approved the following surface mining permits to cancel:

 

Permittee County Permit
Pat Fore Truck Lines, Inc. Harrison P95-082
Pat Fore Truck Lines, Inc. Harrison P95-083
AMO Construction. Inc. Tallahatchie P16-018

OTHER BUSINESS:

Lisa Ouzts, Senior Attorney with MDEQ, presented the proposed Findings of Fact and Conclusions of Law (“Findings of Facts”) for consideration regarding the evidentiary hearing held on March 14, 2017, in the matter of Drying Facility Assets Holding, LLC, Pearl River County,  Mississippi,  regarding the issuance, transfer, and modification of the Section 401 Water Quality Certification (WQC2012071), transfer of certificate of coverage under Mississippi’s Large Construction Storm Water General Permit (MSR106120), transfer of certificate of coverage under Mississippi’s Baseline Storm Water General Permit (MSR002071), and transfer of Permit to Construct Air Emissions Equipment (No. 2180-00052) to Drying Facility Assets Holding LLC, Pearl River County, Mississippi.  Staff previously circulated the proposed Findings of Facts to all parties and received only minor (non-substantive) edits.  Based on Staff recommendation, Board approved the Findings of Facts.

ELECTION OF BOARD CHAIRMAN AND VICE-CHAIRMAN FOR 2017-2018

The Board voted unanimously to elect the following:

Chair – Dennis Riecke, Mississippi Department of Wildlife, Fisheries & Parks

Vice-Chairman – James Hoffmann, Office of Land and Water

The next Permit Board meeting will be held on July 11, 2017, at 9 a.m.

Related Attorneys

  • John E. Milner
  • Gene Wasson
  • L. Kyle Williams

Mississippi Commission on Environmental Quality Summary of Meeting Held February 23, 2017

February 24, 2017 by Brunini Law

The Mississippi Commission on Environmental Quality convened at 9:00 a.m. on February 23, 2017, at the offices of the Mississippi Department of Environmental Quality in Jackson.  The Commission approved minutes from the previous meeting held on November 10, 2016.  Following a prepared agenda, items considered were as follows:

FY2018 Title V Fee Recommendation

Staff reported that a Public Hearing concerning the FY2018 Title V Permit Fee was held on December 21, 2016. No comments were received. The staff recommended and Commission approved to set the fee at $47.00 per ton of regulated air pollutants with a minimum fee of $250.00, which is the same as the previous year’s fee.

Mississippi State Oil and Gas Board Rule 68- Commission’s Consideration of Approval of Amendments and Revisions to Statewide Rule 68

Roy Furrh, MDEQ Legal Counsel, presented this matter before the Commission, stating that the Oil and Gas Board approved amendments and revisions to its Statewide Rule 68 on November 16, 2016, related to Disposal of Naturally Occurring Radioactive Materials Associated with the Exploration and Production of Oil and Gas as discussed in the December 20, 2016, correspondence from the Oil and Gas Board.  By statute and through case law, the amendments and revisions to the Rule 68 Disposal regulations must be approved by the Commission. Staff has previously briefed the Commission on this matter. The staff of the Oil and Gas Board has coordinated with staff of MDEQ on the amendments and revisions to Rule 68. Per MDEQ Staff recommendation, the Commission approved the amendments and revisions to Oil and Gas Board Rule 68.

Commission Designated Hearing Officer

Commission approved Doug Levanway, to serve as a hearing officer in future Commission evidentiary hearings, pursuant to Miss. Code Ann. Sections 49-17-31 and 49-17-33.

Commission Approval of Brownfield Consulting Firms

 Staff recommended, and the Commission approved, Tioga Environmental Consultants, Inc., of Memphis, Tennessee, as a Brownfield Consulting Firm.

Commission Approval of Environmental Covenant – Accelerated Companies, LLC Facility – Laurel, MS

 Note – This agenda item was for reporting purposes only.  Pursuant to the Commission’s delegation regulations (11 Miss. Admin. Code Pt. 1, R.1.1.Y.), the Executive Director of MDEQ approved the Environmental Covenant between the Commission and Accelerated Companies, LLC, regarding the remediation of property located at 3625 Industrial Boulevard, Laurel, MS. The accompanying Restrictive Use Agreed Order was also approved by the Executive Director. Environmental Site Assessments revealed a release of Diesel Range Petroleum compounds impacting shallow soils beneath the footprint of the building on-site and a release of Cadmium impacting groundwater in one shallow well at concentrations in excess of Target Remediation Goals. Therefore, remediation of the site is necessary. The staff of the MDEQ evaluated the proposed Environmental Covenant and believes that, with the conditions and restrictions contained within, the site will be in compliance with applicable state laws and standards and will be protective of the public health and the environment.

CERTIFICATIONS APPROVED

Asbestos:                      336 certifications

Lead Paint:                   104 certifications

Underground Storage Tanks:              17 certifications

EMERGENCY CLEAN-UP EXPENSES

There were 15 emergency expenditures since the last report.

ADMINISTRATIVE ORDERS APPROVED

Twenty (20) Administrative Orders and three (3) Amended Agreed Orders were issued by the Executive Director and approved by the Commission since the last report.

OTHER BUSINESS

Mr. Gary Rikard, Executive Director of the MDEQ updated the Commission on the status of MDEQ budget discussions before the Legislature.

 

Related Attorneys

  • John E. Milner
  • Gene Wasson
  • L. Kyle Williams

Brunini Repeats as Mississippi Firm of the Year

February 21, 2017 by Brunini Law

Benchmark Litigation has named the Brunini firm Mississippi’s only “Firm of the Year” for 2017.  This is the second consecutive year for Brunini to receive this honor.  Patrick McDowell accepted the award for the firm at the Benchmark Litigation U.S. Awards Dinner in New York City on February 16.

Benchmark Litigation focuses exclusively on litigation in the United States.  Award winners are determined through extensive interviews of the nation’s leading private practice lawyers and in-house counsel to identify the very best litigators and law firms in each jurisdiction.  The Brunini firm is proud to continue to be recognized among the country’s most distinguished law firms.

 

Mississippi Environmental Quality Permit Board Summary of Meeting Held February 14, 2017

February 16, 2017 by Brunini Law

The Mississippi Environmental Quality Permit Board (“Board”) convened its regular monthly meeting at 9:00 a.m. on February 14, 2017, at the offices of the Mississippi Department of Environmental Quality in Jackson.  Mr. Mike Bograd, RPG, chaired the meeting.

The Board approved minutes from the January meeting and the non-controversial actions/ certifications completed by the staff since the January meeting.

Following a prepared agenda, items considered were as follows:

OFFICE OF POLLUTION CONTROL – No Items

OFFICE OF GEOLOGY

In accordance with MDEQ staff recommendations, the Board approved the following surface mining bond releases:

Surface Mining Bond Releases:

 

Permittee County Permit Staff Recommendation
All South Construction Company Neshoba P99-071A Initial 20%
Baldwin Sand & Gravel Panola P12-019 Initial 10%
W.E. Blain & Sons, Inc. Scott P91-046T Initial 50%
W.E. Blain & Sons, Inc. Scott P96-013 Initial 50%
Preston Dobbs Truck Service Monroe P10-010 Initial 90%
Tanner Construction Co., Inc. Jefferson Davis P96-016T No Additional
Tanner Construction Co., Inc. Lawrence P07-005A No Additional
Tanner Construction Co., Inc. Perry P08-019 No Additional
Walters Development, LLC* Jones P07-030 Additional 20%
*Note – a representative for Walters Development spoke on behalf of the company regarding the Bond Release and a separate permit application submitted to MDEQ.

Surface Mining Transfer:

The Board approved the permit transfer from Boyles Roofing and Sheet Metal, Inc., Permit P92-045T, to M&O Surface, Inc.

Surface Mining Name Change:

The Board approved a name change from Blain and Sons, Inc. to Blain Sand & Gravel, Permit P96-042AA.

OTHER BUSINESS

Renaissance at Colony Park, LLC, Madison County, Mississippi – Staff presented and the Board approved the proposed Findings of Fact and Conclusions of Law for consideration regarding the issuance of a Clean Water Act Section 401 Water Quality Certification (No. WQC 2015041) and Coverage under the Large Construction Storm Water General NPDES Permit (No. MSR 107191) to Renaissance at Colony Park, LLC, Madison County, Mississippi.

Mr. Roy Furrh, MDEQ Legal Counsel reminded the Board that the Evidentiary Hearing for Drying Facility Asset Holdings, LLC, has been scheduled for the March meeting.

Staff presented and Board approved MDEQ’s Motion to Dismiss an evidentiary hearing request received from Austin D. (Dan) Check for consideration regarding the reissuance of Water Pollution Control Permit to Discharge Wastewater in Accordance with the National Pollutant Discharge Elimination System, Permit No. MS0020117, to the City of Meridian Publicly Owned Treatment Works, located in Lauderdale County, MS.

The next Permit Board meeting will be held on March 14, 2017, at 9 a.m.

 

Related Attorneys

  • John E. Milner
  • Gene Wasson
  • L. Kyle Williams

Kaufman Elected President of Mississippi Chapter of the American Board of Trial Advocates

February 14, 2017 by Brunini Law

David Kaufman was elected President of the Mississippi Chapter of the American Board of Trial Advocates at its annual meeting held in Jackson on February 11, 2017. ABOTA is an invitation-only national association of experienced trial lawyers and judges dedicated to the preservation and promotion of the Seventh Amendment to the U.S. Constitution, which guarantees the right to civil jury trials. ABOTA’s primary goal is to educate the American public about the history and value of the right to trial by jury and is dedicated to elevating the standards of integrity, honor and courtesy in the legal profession. Founded in 1958, ABOTA boasts a membership of more than 7,600 experienced attorneys representing both the plaintiff and defense bars in civil cases and who are spread among 95 chapters located in all 50 states and the District of Columbia.

Brunini’s Kaufman has been recognized by Best Lawyers in America® for Bet-the-Company Litigation, Business Litigation, Securities Litigation, and Personal Injury Litigation. Chambers USA has included him among America’s Leading Lawyers in Business Litigation, and Mid-South Super Lawyers has named Kaufman one of its top 50 lawyers in Mississippi for business litigation. Benchmark Litigation has named him a Local Litigation Star, and The Mississippi Business Journal recognized Kaufman as a Leader in the Law for 2011. He is also a Fellow of the American College of Trial Lawyers and an Associate and former National Director of the American Board of Trial Advocates.

Related Attorneys

  • R. David Kaufman

Mississippi Environmental Quality Permit Board Summary of Meeting Held January 11, 2017

January 13, 2017 by Brunini Law

The Mississippi Environmental Quality Permit Board (“Board”) convened its regular monthly meeting at 9:00 a.m. on January 11, 2017, at the offices of the Mississippi Department of Environmental Quality in Jackson.  Mr. Mike Bograd, RPG, chaired the meeting.

The Board approved minutes from the December meeting and the non-controversial actions/ certifications completed by the staff since the December meeting.

Following a prepared agenda, items considered were as follows:

OFFICE OF POLLUTION CONTROL

The Board approved issuance of coverage under the AFO General Permit (MSG201911) and issuance of construction under the Storm Water Coverage (MSR107315) for A’s Farm, LLC, in Walthall County.  The application proposes ten poultry houses and construction activity on sixteen acres of disturbed land.  Staff stated that upon notification by the Applicant, one neighboring property owner submitted a letter of objection and a local church submitted a signed petition citing issues including health concerns and property values.  No one in opposition was present at the meeting.  Because the facility’s application is complete and the Applicant is in compliance, MDEQ staff recommended issuance of the Permit.

OFFICE OF GEOLOGY

In accordance with MDEQ staff recommendations, the Board approved the following surface mining bond release:

Surface Mining Bond Release:

 

Permittee County Permit Staff Recommendation
Bellew Sand and Gravel Forrest P97-026 Initial 90%
Boydstun Lumber Company Winston P87-021 Initial 90%
Boydstun Lumber Company Winston P94-027A Initial 50%
Green Brothers Gravel Company, Inc. Copiah P09-005A Final 20%
Golden Triangle Sand and Gravel Lowndes P89-013T Initial 90%
Golden Triangle Sand and Gravel Lowndes P98-041 Initial 90%
Hammett Gravel Company, Inc. Yazoo P06-029A Additional 20%
Joe McGee Construction Company, Inc. Madison P11-018A Initial 80%
Joe McGee Construction Company, Inc. DeSoto P13-003 Initial 10%
Birdsong Construction Company, Inc. Hinds P96-066 Initial 25%
Ralph Weldy Forrest P94-140A Initial 90%

Surface Mining Transfer of Acreage:

The Board approved the transfer of 120 acres in Holmes County from the adjacent mine owned by Baldwin Sand & Gravel (“Baldwin”) to Hammett Gravel Company, Permit P10-020AAA (“Hammett”) increasing Hammett’s permitted acreage from 83.5 acres to 203.5 acres and reducing Baldwin’s permitted acreage from 290 acres to 170 acres.

OTHER BUSINESS

 Staff presented and Board approved the proposed Findings of Fact and Conclusions of Law for consideration regarding the issuance and modification of Water Pollution Control Permit to Discharge Wastewater in Accordance with the National Pollutant Discharge Elimination System Permit No. MS0061751 to Mississippi Power Company, Kemper IGCC Facility (Plant Ratcliffe), Located in Kemper County, MS.

Mr. Roy Furrh, MDEQ Legal Counsel reminded the Permit Board members that they need to file their annual ethics statement.

Mr. Roy Furrh, thanked the Board for completing the forms recently required by the Department of Interior – Office of Surface Mining and Reclamation.

Mr. Furrh also reminded the Board that the Evidentiary Hearing for Drying Facility Asset Holdings, LLC, has been scheduled for the March meeting.

Mr. Furrh briefly discussed the suit between West Rankin Utility Authority and the City of Jackson and stated that oral arguments are today before the Rankin County Chancery Court.

The next Permit Board meeting will be held on February 14, 2017, at 9 a.m.

Related Attorneys

  • John E. Milner
  • Gene Wasson
  • L. Kyle Williams

Mississippi Environmental Quality Permit Board Summary of Meeting Held December 13, 2016

December 19, 2016 by Brunini Law

The Mississippi Environmental Quality Permit Board (“Board”) convened its regular monthly meeting at 9:00 a.m. on December 13, 2016, at the offices of the Mississippi Department of Environmental Quality in Jackson.  Mr. Mike Bograd, RPG, chaired the meeting.

The Board approved minutes from the November meeting and the non-controversial actions/ certifications completed by the staff since the November meeting.

Following a prepared agenda, items considered were as follows:

OFFICE OF POLLUTION CONTROL

The Board approved issuance of coverage under the AFO General Permit (MSG201908) and issuance of construction under the Storm Water Coverage (MSR107275) for Tommie L. Landrum II Poultry in Jones County.  The application proposes six poultry houses and construction activity on twelve acres of disturbed land.  Staff stated that upon notification by the Applicant, eleven neighboring property owners submitted letters of objection citing issues including health concerns, the presence of gopher tortoises, and a stream running through the property.  Two individuals spoke in opposition and one read a letter from a third individual, who was unable to attend the meeting.  Board members posed questions to those in opposition as well as staff concerning notification issues; buffer area; doctor’s letter confirming health problems; disposal of litter and dead birds.  Because the facility’s application is complete and the Applicant is in compliance, MDEQ staff recommended issuance of the Permit.  After the vote, Mr. Roy Furrh, MDEQ General Counsel, advised those in opposition that they may request an Evidentiary Hearing on the matter.

OFFICE OF GEOLOGY

In accordance with MDEQ staff recommendations, the Board approved the following surface mining bond release:

Surface Mining Bond Release:

 

Permittee County Permit Staff Recommendation
T. L. Wallace Construction, Inc. Hinds PIS-017 Initial 90%
Baldwin Sand & Gravel Monroe P92-098AA Final 60%
T. L. Wallace Construction, Inc. Harrison P03-030 Initial 90%
T. L. Wallace Construction, Inc. Harrison P02-018 Final 10%
T. L. Wallace Construction, Inc. Marion P08-013 Final 10%
T. L. Wallace Construction, Inc. Marion P08-018 Final 10%
T. L. Wallace Construction, Inc. Marion P08-021 Final 10%

OTHER BUSINESS

Mr. Roy Furrh, MDEQ General Counsel, thanked the Board for completing the forms recently required by the Department of Interior – Office of Surface Mining and Reclamation

Mr. Furrh also reminded the Board that the Evidentiary Hearing for Drying Facility Asset Holdings, LLC has been scheduled for the March meeting.

The next Permit Board meeting will be held on January 10, 2017 at 9 a.m.

 

Related Attorneys

  • John E. Milner
  • Gene Wasson
  • L. Kyle Williams

“Paid Sick Leave” for Employees of Certain Federal Contractors & Subcontractors

November 17, 2016 by Brunini Law

By: Chris Fontan & Kyle Williams

In October 2016, the U.S. Department of Labor (“DOL”) published regulations implementing Executive Order 13706 (“the Order”).  Initially signed in September 2015, the Order—entitled Establishing Paid Sick Leave for Federal Contractors—requires some federal contractors and subcontractors to provide certain employees with up to seven (7) days of paid sick leave annually.  Historically, the federal government has not established regulations (covering either private employers or federal contractors) mandating the provision of paid leave time for employees.   While it only impacts federal contractors and subcontractors, the DOL’s regulations will drastically alter this historical policy, as the DOL estimates that anywhere from 600,000 – 1.2 million employees will be impacted by the Final Rule.

Contracts Subject to the Order & Regulations

According to the DOL, the coverage of contracts and employees under the Order is “nearly identical” to coverage under the regulations mandating a minimum wage for certain federal contractors.  (The required minimum wage rate for covered federal contractors is adjusted each year by the DOL.  For 2017, the required minimum wage for covered federal contracts is $10.20.)

The Order and its regulations apply to four (4) types of contracts:

  • Procurement contracts for construction covered by the Davis-Bacon Act;
  • Service contracts covered by the Service Contract Act;
  • Concessions contracts; and
  • Contracts in connection with federal property or lands and related to offering services for federal employees, their dependents, or the general public.

Of these covered contracts, the Order applies to (1) new contracts, (2) replacements for expiring contracts, and (3) subcontracts of any covered contract issued on or after January 1, 2017.  For the Order to apply, the new/replacement contract must include a clause setting forth the Order’s requirements.  If the contract does include this required clause, the governmental agency can withhold funds due under the contract if a contractor or subcontractor fails to abide by the Order’s requirements. (Additionally, contractors are required to include a clause outlining the Order’s requirements in all new subcontracts issue.)

Employees Covered by the Order & Regulations

The Order only applies to individuals engaged in performing work directly related to the subject matter of the contract, or “in connection with” a covered contract.  Importantly, employees that spend less than twenty percent (20%) of their working hours performing work in connection with a contract (such as providing administrative or other support services) are not covered by the Order.

Leave Required Under the Order & Regulations

Under the Order and its regulations, there are a couple of methods by which covered contractors can grant and track the required paid sick leave.  Employees that are covered are entitled to one hour of paid sick leave for every thirty (30) hours worked (actually worked – not total hours paid) on or in connection with a covered contract.  As an alternative, contractors have the option to provide covered employees with at least fifty-six (56) hours of paid sick leave at the beginning of each accrual year, rather than allowing employees to accrue leave based on hours worked.   Under this option, contractors who already provide employees with paid sick leave (for the same types of absences described in the Order) can take credit for the amount of leave provided—they are only required to provide employees with the difference between the amount already provided and the mandated fifty-six (56) hours.

The Order & its regulations set forth rules concerning a covered employee’s ability to “carry over” any accrued, but unused paid sick leave from one year to the next.  Also, if an employee is rehired by the same contractor within 12 months of a job separation, the contractor must reinstate that employee’s accrued, unused paid sick leave balance (unless the employee is paid for that leave at the time of separation).  Covered contractors are also required to notify covered employees of the amount of paid sick leave they have accrued—either at the end of each pay period or each month, whichever interval is shorter.  This notification must be provided in writing.

Covered Absences under the Order

The Order requires contractors to allow covered employees to use their paid sick leave (in increments as small as one hour) for any absence resulting from:

  • Physical or mental illness, injury, or medical condition of the employee;
  • Obtaining diagnosis, care, or preventive care from a health care provider by the employee;
  • Caring for the employee’s child, parent, spouse, domestic partner, or “any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship”; or
  • Domestic violence, sexual assault, or stalking.

When employees use their paid sick leave, contractors must provide them with the same regular pay and benefits they would have received if they had not used the leave, except that employees do not earn additional paid sick leave during their absence.

Under the Order, an employee is required to request paid sick leave “as soon as is practicable,” either orally or in writing.  If a contractor denies an employee’s request, it must communicate the denial in writing with an explanation as to why the request was denied. A contractor can only require an employee to document or verify absences of three or more consecutive days, and the contractor must inform the employee of the requirement to provide documentation before he or she returns to work. If the absence is healthcare-related, the contractor can require the certification to be made by a healthcare provider. If the absence is related to domestic violence, sexual assault, or stalking, the documentation or verification can come directly from the employee.

If you feel that your organization may be impacted by these new regulations, you should contact your labor & employment counsel for implementation advice.

Related Attorneys

  • Stephen J. Carmody
  • Christopher R. Fontan
  • Claire W. Ketner
  • Lauren O. Lawhorn
  • Scott F. Singley
  • L. Kyle Williams

EPA Signals Denial of Proposed Changes to Point of Obligation under the Renewable Fuel Standard

November 16, 2016 by Brunini Law

 

 

By: L. Kyle Williams

Over the past year, several petroleum distributors, and other entities, have advocated for moving the point of obligation under the Renewable Fuel Standard (“RFS”), seeking to remove this responsibility from refiners and importers, and place it on “position holders” or those parties that blend renewable fuel into transportation fuel.

The RFS promotes increased blending of ethanol, biodiesel and other renewable fuels. Obligated parties—currently, refiners and importers—bear the responsibility of complying with annual renewable fuel volume obligations (“RVOs”) established by the U.S. Environmental Protection Agency (“EPA”). These parties ensure the requisite amount of renewable fuels gets blended into the fuel pool, to offset petroleum fuel production and, in turn, they receive Renewable Identification Numbers (“RINs”) for blending, which are credited toward fulfilling their RVO. Obligated parties can either blend the fuels, earning the corresponding RINs, or they can purchase them.

Valero Energy Corp. filed a petition for reconsideration with the EPA, asking it to change the definition of “obligated party”, as provided by the RFS to no longer include refiners or importers, but rather, “the entity that holds title to the gasoline or diesel fuel, immediately prior to transfer from the truck loading terminal or bulk terminal to a retail outlet, wholesale purchaser-consumer or ultimate consumer.” In addition, CVR Energy and the American Fuel and Petrochemical Manufacturers filed separate but similar requests with the EPA. Proponents of moving the point of obligation argue the current system is fraught with inefficiencies, and larger retailers have a competitive advantage by benefitting from profitable RIN sales. In addition, Valero claimed changing the point of obligation will incentivize the growth of renewable fuels, while the current system has the effect of limiting renewable fuel use. In its petition to the EPA, Valero further claimed the existing point of obligation “harm[s] renewable fuel producers, independent refiners, retailers and U.S. consumers.”

On November 10, 2016, the EPA announced that it proposed to deny all requests to change the point of obligation but will take public comment on such proposals to ensure it will “receive input from the wide variety of stakeholders that could be affected.” In its Proposed Denial, the EPA stated, “We are therefore opening a docket to formally receive comments on the petitions submitted to EPA to change the point of obligation in the RFS program from the refiners and importers of gasoline and diesel fuel to other parties, such as blenders or position holders of these fuels.” The comment period will last sixty days, beginning November 10, 2016. The EPA’s announcement comes after many trade associations, retailers and other entities discouraged any changes to the point of obligation, instead, advocating for the continuation of the current system. These parties include the National Association of Truckstop Operators, the American Petroleum Institute, and the National Association of Convenience Stores. According to these organizations, any changes in the point of obligation would harm consumers by negatively impacting the U.S. fuel market and would raise fuel prices.

The EPA has put forth a comprehensive report detailing its rationale for proposing to deny the requests. Its main arguments in favor of maintaining the current regime include: (1) the current program structure appears to be working to achieve the goals of the RFS program; (2) changing the point of obligation is not expected to result in the increased production, distribution and use of renewable fuels; (3) changing the point of obligation would significantly increase the complexity of the RFS program; and (4) changing the point of obligation could cause significant market disruption. While it is not readily known how the effects of the comment period or the recent U.S. Presidential election will impact this requested change, the EPA’s decision is of great importance to the industry and should be closely watched by industry professionals.

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