January 22, 2024

Shale Law Weekly Review—Week of January 22, 2024

Infrastructure: $625 Million in Grants Announced to Expand Electric Vehicle Charging Infrastructure ⚡
On January 11, 2024, the Department of Energy Office (DOE) of Energy Efficiency and Renewable Energy (EERE) announced $625 million in grants to expand the infrastructure of charging capabilities for electronic vehicles. These grants are provided through the Charging and Fueling Infrastructure (CFI) Discretionary Grant Program. The noted goal of this round of grants is to construct around “500,000 publicly available chargers by 2030.” The announced grants include $311 million awarded from the Federal Highway Administration to 36 community projects to bolster electric vehicle charging and hydrogen fueling capacity. Additionally, $312 million in grants will go to 11 recipients in designated locations to establish Alternative Fuel Corridors. Further information of the specific projects funded by the announced grants can be found on the Federal Highway Administration’s website.

Infrastructure: $32.5 Million in Funding Announced for GHG Reduction Programs
On January 8, 2024, the Department of Energy (DOE) announced $32.5 million in funding for projects aiming to reduce greenhouse gas (GHG) emissions, primarily in the transportation sector. Funding will be provided for 16 projects that seek to remove barriers to the development of electric vehicle charging stations and increase educational efforts. Funding is provided through the DOE’s Vehicle Technologies Office (VTO) consistent with the policy goals outlined in the U.S. National Blueprint for Transportation Decarbonization. More information on the funded projects can be found on the VTO’s website. [Dillon]

Methane Emissions: Department of Energy (DOE) Grants Loan of $189 Million For Methane Detection System Project
On January 5, 2024, the DOE’s Loan Programs Office announced it granted a conditional commitment of $189 million to LongPath Technologies, Inc., a Boulder, Colorado-based company. According to the announcement, this loan is intended to support the manufacturing and installation of a “real-time methane emissions monitoring network” across major oil and gas production basins in Colorado, Kansas, Oklahoma, New Mexico, North Dakota, and Texas. LongPath’s project, known as the Active Emissions Overwatch System, aims to cover 25 million acres with remote methane monitors. This network aims to provide detection, location, and quantification services for thousands of oil and gas sites through a subscription model. According to the DOE, the technology is expected to prevent methane emissions equivalent to six million tons of carbon dioxide annually, akin to removing 1.3 million gasoline-powered vehicles from the roads.

Climate Change: Delaware Court Allows State Climate Change Lawsuit to Proceed Against Fossil Fuel Companies with Limited Scope
On Tuesday, January 9, 2024, the Superior Court of Delaware filed an opinion in a case brought by the State of Delaware against BP America and numerous other oil and gas companies for activities alleged to have negatively impacted the climate and citizens of Delaware. Delaware v. BP America Inc. (No. N20C-09-097 MMJ CCLD.)  Specifically, the allegations focus on the Defendants’ knowledge of the severe impacts of “unrestricted production and use of fossil fuels” on the lands, waters, ecosystems, and peoples of Delaware, which the State claims the Defendants have purposely withheld or purposely misrepresented for over fifty years, resulting in rising temperatures and sea levels, flooding, erosion, more severe weather, and much more. The most recent opinion was filed in response to a motion to dismiss filed by the defendants, which was granted in part and denied in part. The court allowed the State’s case to proceed, but denied several of its claims, including those related to out-of-state emissions, those alleging greenwashing and misrepresentations against individual defendants, those brought under the Delaware Consumer Fraud Act, and several others. The claims that were allowed to proceed include those brought under State common law claims for in-state air pollution under the Clean Air Act, claims for public nuisance and trespass on state-owned land, and failure-to-warn claims regarding the defendants’ failure to warn of climate change dangers.

Municipal Regulation: 9th Circuit Upholds Previous Decision Striking Down Berkley Ban on Natural Gas Hookups in New Construction
On Tuesday, January 2, 2024, the Ninth Circuit Court of Appeals denied a petition to reconsider its decision from April 17, 2023, which struck down a Berkley, California ordinance outlawing the use of natural gas hookups in new construction. California Restaurant Association v. City of Berkeley (No. 21-16278.) The petition for an en banc rehearing of the case was filed by the City of Berkley on May 31, 2023, and it argued that the Ninth Circuit improperly struck down the ordinance after misinterpreting the federal Energy Policy and Conservation Act (EPCA). In denying the petition for a rehearing, the Ninth Circuit explained that the EPCA “expressly preempts State and local regulations concerning the energy use of many natural gas appliances,” which was found to include the City of Berkley’s ordinance. Notably, the court also amended its April opinion to make clear that this decision to strike down building codes related to gas usage does not extend to regulations on the distribution of natural gas by utilities, which may not necessarily by preempted by the EPCA.

 

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CENTER PROGRAMS & RESOURCES

Understanding Agricultural Law – A free monthly Zoom webinar series for all agricultural and rural business advisors. One hour of substantive CLE credit available for Pennsylvania-licensed attorneys at no charge. Recordings and materials from the series, more information, and registration available here.

On January 31, 2024, The Mid-Atlantic Fruit and Vegetable Convention will be held at the Hershey Lodge in Hershey, Pennsylvania. On Wednesday, January 31, 2024, from 1:30–2:30pm, Staff Attorney Audry Thompson will present “The Fair Labor Standards Act: What You Need to Know” as part of the conference.

On February 8–10, 2024, PASA Sustainable Agriculture will hold their 2024 Sustainable Agriculture Conference at the Lancaster County Convention Center in Lancaster, Pennsylvania. On Friday, February 9, 2024, from 4:00–5:00pm, Staff Attorney Brook Duer will present “Protecting Your Farm’s Food Business with Product Liability Insurance” with the Small Business Development Center as part of the conference.

On Tuesday, February 13, 2024, from 12 noon–1:00 ET, will conduct the latest installment in its Quarterly Dairy Legal Webinar series. Each quarter’s free one-hour webinar covers the legal and regulatory developments in the U.S. dairy industry from the preceding quarter, as well as including an in-depth look at a single focus topic of law, regulation, or government policy of interest to dairy professionals of all kinds.

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks 

9th Circuit won’t let Berkeley enforce first-in-the-nation natural gas ban (San Francisco Chronicle)

Oil steadies as stronger dollar counteracts Red Sea disruptions (Reuters)

EPA sets out rules for proposed ‘methane fee’ for waste generated by oil and natural gas companies (AP)

OPEC Chief Says Oil Demand Will Defy Predictions of a Peak (Rigzone)

9th Circuit Ruling Against Natural Gas Bans Is Big News in PA (DV Journal)

Connect with us on Facebook.

Penn State Farmland Energy Legal Podcast: Listen to the latest episode here.

Oil & Gas Law & Policy Resources:

Bloomberg, Trans Mountain Pipeline Change Approved, Averting Years of Delay (January 13, 2024)

Bloomberg, Ships Keep Running Red Sea Gauntlet After US Warnings (January 16, 2024)

Sartain, Oil Fraud Defendant Tries to Evade SEC Complaint (January 17, 2024)

McFarland, Two Cases on Royalty Fractions (January 17, 2024)

Energy Connects, Shell agrees to sell Nigerian onshore subsidiary SPDC (January 17, 2024)

Bloomberg, Oil Advances as Twin Middle East Strikes Raise Escalation Risks (January 18, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

DOE Announces $34 Million to Improve the Reliability, Resiliency, and Security of America’s Power Grid (January 16, 2024)

Biden-Harris Administration Announces More Than $104 Million to Advance Net-Zero Projects at Federal Facilities (January 17, 2024)

DOE Announces Over $20 Million to 32 States and Local Communities Addressing Place-Based Energy Needs (January 18, 2024)

U.S. Department of Energy Announces $131 Million to Boost America’s Battery Supply Chain and Supercharge Electric Vehicle Innovation (January 18, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

Swinerton Builders Reaches Agreement to Address Clean Water Act Violations and Offset Environmental Harm at Solar Farm Construction Sites in Alabama, Idaho and Illinois (January 17, 2024)

Biden-Harris Administration Announces Proposed Rule to Reduce Wasteful Methane Emissions from the Oil and Gas Sector to Drive Innovation and Protect Communities (January 12, 2024)

FEDERAL EXECUTIVE AGENCIES (Federal Register January 13– January 19, 2023)

Environmental Protection Agency

89 FR 3620: Proposed Rule, Comments Close 3/19/24: “Approval of Source-Specific Air Quality Implementation Plan; New York; Finch Paper LLC” (January 19, 2024)

Energy Department

89 FR 2220: Notice: “National Petroleum Council” (January 12, 2024)

Land Management Bureau

89 FR 3689: Notice: “Notice of Availability of the Record of Decision for the Approved Eastern Colorado Resource Management Plan for the Royal Gorge Field Office, Colorado” (January 19, 2024)

Surface Mining Reclamation and Enforcement Office

89 FR 3562: Rule: “Wyoming Regulatory Program” (January 19, 2024)

Other Agencies

89 FR 3638: Notice, Comments Close 3/19/24: “Agency Information Collection Activities; Submission to the Office of Management and Budget (OMB) for Review and Approval; Comment Request; Fishermen’s Contingency Fund” (January 19, 2024)

89 FR 3587: Proposed Rule, Comments Close 4/18/24: “Shipping Safety Fairways Along the Atlantic Coast” (January 19, 2024)

89 FR 3118: Proposed Rule, Comments Close 3/18/24: “National Apprenticeship System Enhancements” (January 17, 2024)

89 FR 2832: Notice: “Takes of Marine Mammals Incidental to Specified Activities; Taking Marine Mammals Incidental to the Port of Alaska’s North Extension Stabilization Step 1 Project in Anchorage, Alaska” (January 16, 2024)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R. 7054: “To require the Secretary of Energy to remove carbon dioxide directly from ambient air or seawater, and for other purposes.” Referred to the House Committee on Energy and Commerce. (January 18, 2024)

H.R.5482: “Energy Poverty Prevention and Accountability Act of 2023” Ordered to be Reported (Amended) by the Yeas and Nays: 18 – 17. (January 17, 2024)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

S.3627: “A bill to amend the Energy Policy and Conservation Act to require a certain efficiency level for certain distribution transformers, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (January 18, 2024)

S.3615: “A bill to require the Secretary of Energy to remove carbon dioxide directly from ambient air or seawater, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (January 18, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

The Shapiro Administration Awards $101.1 Million in Grants for Environmental Restoration Projects (January 17, 2024)

DEP Awards $1.28 Million to Municipalities for Cleaner Fuel Transportation Infrastructure (January 18, 2024)

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 3 – January 20, 2024)

Department of Environmental Protection

54 Pa.B. 276: Notice: “Proposed Reducing Industrial Sector Emission in Pennsylvania Grant Program; Request for Information Deadline Extension”

Pennsylvania Legislature

SB 1040: “Renewable Energy & Warehouse Solar Procurement Act” Referred to CONSUMER PROTECTION AND PROFESSIONAL LICENSURE [Senate] (January 12, 2024)

Written by:
Kendal Ashman, Research Assistant
Kole Zellers, Research Assistant
Dillon Lightfoot, Research Assistant
Sergio Porras, Research Assistant
Jackie Schweichler, Staff Attorney