Client Alert: IDEM Issues Key Clarification on SEA 277 – Here's What It Means for Your Site

Statute Update

Senate Enrolled Act (SEA) 277 took effect on July 1, 2026, introducing new statutory requirements for petroleum underground storage tank (UST) corrective action in Indiana. On the same day, the Indiana Department of Environmental Management (IDEM) issued a clarification letter explaining how it will implement one of the law's most significant provisions, addressing the very ambiguity KERAMIDA had raised.

Earlier this year, KERAMIDA's Lauren Nielsen, P.E., Senior Engineer, Land Services, testified before the House Environmental Affairs Committee of the Indiana General Assembly regarding Indiana SEA 277. During her testimony, Lauren highlighted the need for greater clarity around the legislation's use of the term "reportable quantity" for petroleum releases, noting that petroleum is excluded from the federal hazardous substance definitions referenced elsewhere in the statute. She continued those discussions with IDEM representatives, environmental attorneys, and other stakeholders as implementation moved forward. IDEM's July 1 clarification letter speaks directly to the point KERAMIDA identified. 

What the Clarification Addresses 

Under SEA 277, IDEM cannot issue a No Further Action (NFA) determination, approve closure, or request certain institutional controls unless the commissioner has received and reviewed an evaluation of potential remedies. That requirement is triggered whenever a "reportable quantity" of released petroleum remains or may remain underground at a site. 

As IDEM acknowledges, the term "reportable quantity" is not defined for petroleum USTs. Working with the statute as written, the agency has taken a practical approach: it will look to the federal UST rule at 40 CFR 280.53, which addresses reporting of petroleum spills exceeding 25 gallons, for interpretive guidance. Because it is often not feasible to quantify how much petroleum was actually released, IDEM will treat any petroleum release-related chemical (RRC) remaining above its Risk-based Closure Guide (the "R2," a nonrule policy document) Published Levels as triggering the requirement to submit an evaluation of closure options, environmental deed restrictions, and remediation methods, together with estimated costs and timeframes. 

Updated State Forms 

IDEM has also updated State Form #55439 and State Form #55441 to reflect the new statutory requirements, a welcome development. Prior versions required the certifying environmental professional to attest that submittals complied with 329 IAC 9-5-5.1 and 329 IAC 9-5-6, sections that were repealed in 2023 and replaced by incorporation of the federal 40 CFR Part 280 requirements. The updated forms resolve a real practical problem for the professionals who sign these submittals. Copies are available on the IDEM forms page. 

Corrective Action Should Follow Risk, Not Screening Levels 

KERAMIDA advocated during the legislative session for a clear definition of "reportable quantity." That clarity was not written into the statute, but the requirement is now law. Importantly, though, a requirement to evaluate potential remedies is not a mandate to implement them. IDEM's own R2 is built around determining whether a remedy is actually necessary to control an unacceptable risk to human health or the environment, and under that framework, remedies are selected only where warranted. An exceedance of a generic, published screening level is the starting point for a risk evaluation, not the conclusion of one. 

That distinction matters for clients. A broad evaluation requirement could tempt some consultants to recommend extensive investigation, monitoring, and active cleanup that site conditions do not justify. KERAMIDA takes the opposite approach. We apply the best available science to determine whether corrective action is genuinely necessary, recognizing that it is warranted only when a release currently poses, or will foreseeably pose, an unacceptable risk. In many cases, natural source zone depletion (NSZD), which is the natural biodegradation, dissolution, and volatilization that steadily reduces petroleum in the subsurface, removes contaminant mass at rates that meet or exceed engineered remediation, and the Interstate Technology and Regulatory Council (ITRC) recognizes it as a legitimate stand-alone or supporting remedy where exposure risks are controlled. Where natural attenuation processes such as NSZD will achieve remediation objectives within an acceptable timeframe, aggressive engineered systems are often neither necessary nor the most sustainable option. 

What This Means for You 

For petroleum UST owners, operators, consultants, and contractors, IDEM's clarification offers valuable insight into the agency's expectations under the new law and the additional information that may now be required before site closure. It also raises the stakes on choosing a consultant who scopes work to actual risk. Performing investigation, monitoring, and remediation at a site that does not need it will not only delay closure but can also needlessly draw down the Excess Liability Trust Fund (ELTF), the state fund that reimburses eligible corrective-action costs. Clients who want their obligations met efficiently and their ELTF resources conserved are well served by a risk-based approach grounded in sound science. 

KERAMIDA remains committed to helping clients navigate evolving environmental requirements through technical expertise, regulatory and legislative engagement, and practical implementation strategies. Lauren's testimony and continued engagement with stakeholders reflect KERAMIDA's commitment to advancing clarity for the benefit of our clients and to ensuring that corrective action is driven by what the environment and the client actually need. 

Contact:

Lauren Nielsen, P.E.
Senior Engineer, Land Services
KERAMIDA Inc.

Contact Lauren at: lnielsen@keramida.com 

Client Alert: PM2.5 Air Quality Standard Remains at 9 µg/m³

Background

The Biden Administration promulgated a rule in March 2024 reducing the annual National Ambient Air Quality Standard for PM2.5 from 12 µg/m³ to 9 µg/m³. Several states and other groups filed legal challenges to the new rule. The Biden EPA directed all state and local agencies to review all permit applications in progress met the new lower standard. This resulted in more onerous control and operational requirements on the permit applicants.

Court Ruling

After the second Trump Administration took office in 2025, the Trump EPA petitioned the Court of Appeals to vacate the new 9 µg/m³ standard and revert to the old 12 µg/m³ standard. On June 26, 2026, the Court of Appeals denied the Trump EPA's petition to vacate the 9 µg/m³ standard. This means that the new 9 µg/m³ standard remains in force.

What This Means for Your Organization

The immediate impact will be that companies applying for construction of major new facilities or expansion of existing facilities subject to New Source Review will continue to face the more onerous control and operational requirements. In the longer term, EPA and the states will be required to classify areas of the country exceeding the 9 µg/m³ standard as non-attainment areas where major new and expanded operations subject to New Source Review will be more costly or sometimes not feasible to permit.

KERAMIDA is monitoring this ruling and its implications closely.

Questions about your air permitting obligations? KERAMIDA's environmental permitting team is here to help. Speak with an Expert →

Client Alert: ISO Releases Draft of First Global Net Zero Standard (ISO 14060)

The International Organization for Standardization (ISO) released a draft of its Net Zero Aligned Organizations Standard (ISO/DIS 14060) on June 17, 2026. Building on the 2022 ISO Net Zero Guidelines (IWA 42), the draft translates ISO’s early recommendations into the first internationally recognized, independently verifiable standard for corporate net zero transition planning. The draft is open for a 12-week public consultation through ISO's national member bodies, with national consensus positions expected by early September and final publication anticipated in late 2026 or early 2027.

ISO 14060 has the potential to consolidate a fragmented landscape of competing "net zero" definitions and guidance into a single, auditable framework. The draft standard sets requirements for setting science-aligned targets, publishing a transition plan within two years of a net-zero commitment, and demonstrating verifiable progress. Notably, it restricts carbon credits to residual emissions rather than counting them toward reduction targets, requires front-loaded reductions against a cumulative GHG budget, and applies a significance test for determining which Scope 3 categories warrant formal targets. Its release one week after SBTi's Corporate Net Zero Standard V2.0 signals a broader convergence on what credible organizational net zero requires.

For organizations, ISO 14060 offers a path toward transition plans that are defensible under real scrutiny rather than treated as voluntary pledges. KERAMIDA will continue to monitor the standard's development through the consultation period and will provide updates as it advances toward final publication.

Questions about how ISO 14060 may affect your organization’s net-zero strategy or transition planning? Contact KERAMIDA to speak with one of our sustainability experts.

Client Alert: CARB Proposes 3-Month Delay to California SB 253

The California Air Resources Board (CARB) is proposing to defer the current reporting deadline for CA SB 253 from August 10, 2026, to November 10, 2026. The regulation is undergoing revisions, and once the public comment period concludes, the deadline extension will become final.

Read the full announcement from CARB: California Corporate Greenhouse Gas Reporting: Notice of Upcoming Rulemaking Update to Further Clarify Requirements and Deferring 2026 Reporting Deadline

KERAMIDA is monitoring this rulemaking closely.

Questions about your reporting obligations? Contact KERAMIDA to speak with one of our GHG experts.

SBTi Unveils Major Update to Corporate Net-Zero Standard

SBTi published Version 2.0 of its Corporate Net-Zero Standard on June 11, the first major update since the standard launched in 2021.

The update goes beyond adding requirements. How targets are structured, how companies are categorized, and what SBTi expects between validations have changed.

For companies with existing validated targets: no action is required. Your targets remain valid through their defined timeframe.

For new submissions: V2.0 validations open in Q1 2027. Companies may continue submitting under V1.3.1 through January 31, 2028, after which all new submissions must use V2.0.

See SBTi's Summary of Main Changes document.

Client Alert: EU Seeks Feedback on Revised ESRS and Voluntary Sustainability Reporting Standards

The European Commission has opened a public feedback period on the draft final versions of the revised European Sustainability Reporting Standards (ESRS). The consultation marks another important step in the EU’s ongoing efforts to simplify and streamline sustainability reporting requirements under the Corporate Sustainability Reporting Directive (CSRD).

The revised ESRS standards are intended to reduce the administrative burden for EU companies subject to mandatory sustainability reporting while maintaining the quality and consistency of sustainability disclosures. According to the European Financial Reporting Advisory Group (EFRAG), the proposed revisions focus on improving usability, reducing the number of datapoints (including a reduction of more than 60% in mandatory datapoints and over 70% overall), simplifying double materiality assessments, and introducing new flexibilities for companies.

In parallel, the Commission is seeking stakeholder input on voluntary sustainability reporting standards intended for small and medium-sized enterprises (SMEs) and organizations outside the scope of mandatory CSRD reporting. The voluntary framework aims to support more proportionate ESG reporting while helping smaller companies respond to increasing sustainability information requests from their reporting business partners that are subject to mandatory sustainability reporting requirements.

Stakeholders are invited to submit feedback through the European Commission’s portal until June 3. Following the close of the consultation period, the Commission is expected to adopt the two delegated acts and subsequently submit them to the European Parliament and the Council for review under the standard no-objection procedure before the standards formally enter into force.

For more information, visit the European Commission announcement:
European Commission Feedback Process on Revised Sustainability Reporting Standards

Livable Cities Update: EPA Releases CPRG Status Report Primer

EPA clarifies CPRG Status Report requirements and expectations for grantees.

The U.S. EPA has released a new Status Report Primer for recipients of Climate Pollution Reduction Grants (CPRG) planning funds, confirming that a Status Report is required at the end of the four-year grant period.

The primer outlines EPA’s expectations for the report and offers recommendations on how jurisdictions can structure it and track implementation progress under their Comprehensive Climate Action Plans (CCAPs).

Key Elements Required in the Status Report

Consistent with earlier CPRG guidance, EPA confirms that Status Reports must include updates on several core CCAP elements, plus one additional requirement, including:

Required

• Implementation status of greenhouse gas (GHG) reduction measures

• Metrics tracking and quantified results for completed measures

• Review of authority to implement measures

• Intersection with other funding opportunities

• Workforce planning progress

• Updated benefits analysis

• Additional Requirement: Identify and outline next steps for CCAP implementation, including near-term projects, timelines, milestones, and associated budget and staffing needs

Encouraged

• GHG inventory updates

• GHG emissions projections and reductions

• Updates to GHG reduction targets

• Implementation narratives providing additional detail on progress

• Updated cost analysis

• Public outreach related to CCAP implementation

These components largely reflect the reporting expectations outlined in the original 2023 CPRG planning grant guidance, which anticipated that the Status Report would provide updates on CCAP implementation and identify next steps.

What’s New in the Primer

While the core requirements remain largely consistent with earlier guidance, the primer provides additional detail on how grantees should approach the report, including:

• Clarification that updates to GHG inventories and emissions projections are encouraged but optional.

• The previously required LIDAC benefits analysis is no longer required for the Status Report.

• Recommended approaches for tracking implementation progress.

• Grantees must report quantified emissions reductions for fully implemented GHG reduction measures using the metrics in their CCAP. Reporting for partially implemented or under-development measures is encouraged but not required. Grantees are also encouraged to update estimated or actual GHG reductions for any measures as needed.

• Guidance on updating benefits analysis and co-pollutant reductions

• Expanded discussion of funding alignment, workforce needs, and implementation barriers

Takeaways and Implications

Implementation tracking will be critical.

The Primer signals that jurisdictions should establish processes to track implementation progress and measurable outcomes throughout the grant period, rather than waiting until the end to compile reporting materials. 

The Status Report is more than a compliance exercise.

EPA emphasizes that the report should be used to communicate progress, adjust priorities, and identify resources needed to sustain climate action beyond the CPRG planning grant period.

Narratives must address progress across all measures. 

Reduction measures will be at varying stages of implementation, making narrative updates essential to clearly communicate progress. All measures must be addressed in the Status Report, including those with limited or no progress, along with explanations and next steps.