December 15, 2024

Shale Law Weekly Review—Week of December 16, 2024

Electricity Generation: Department of Energy Announces Funding for Marine Energy and Offshore Wind Research and Development ⚡
On December 4, 2024, the Department of Energy (DOE) announced over eighteen million dollars in  funding for select research and development projects on marine energy and offshore wind. The projects are being run at seventeen universities including Oregon State, Rutgers, The University of Michigan, and Boston University. The projects focus on marine energy development, especially relating to data collection, testing, device efficiency and device design.

Environmental Impact Study: FAA Asks D.C. Circuit Court to Reconsider NEPA Decision
On November 27, 2024, Respondents, the Federal Aviation Administration (FAA) and the National Park Service, filed a petition for review of an order challenging the D.C. Circuit Court of Appeals opinion concerning National Environmental Policy Act (NEPA) regulations. Marin Audubon Society v. FAA, No. 23-1067 (D.C. Cir. 2024). On November 12, 2024, the D.C. Circuit Court issued an opinion finding that the Council of Environmental Quality (CEQ) has no authority to issue binding regulations under the NEPA. Respondents in this case file this petition arguing that the Court went beyond the issues presented by the parties in issuing its decision decreasing the authority of the CEQ and the remedies ordered. Respondents called this ruling a departure from the party-presentation principle, under which court typically only considers legal issues and remedies presented by the parties. Respondents petition for the Court to reconsider its decision and allow the parties an opportunity brief on the novel issues raised in the opinion. For background, see SLWR Dec. 2, 2024, “Environmental Impact Study: D.C. Circuit Court of Appeals Limits Council of Environmental Quality’s Authority.”

GHG Emissions: EPA Defends Stricter Vehicle Emissions Limits in DC Circuit Court
On November 26, 2024, the US Environmental Protection Agency (EPA) filed a brief with the U.S. Court of Appeals for the D.C. Circuit defending their recent rule tightening vehicle emissions limits. The suit, brought by 26 states and several industry groups, centers on a final rule (89 FR 27842) the EPA published in April 2024 establishing more protective emissions standards for light and medium duty vehicles, model years 2027 through 2032. The petitioners have invoked the major questions doctrine arguing that the EPA exceeded its authority under the Clean Air Act by implementing such stringent emissions limits so as to create a “de facto electric-vehicle mandate.” In response, the EPA stated that the rule does not create an electric vehicle mandate but does act to accelerate the shift to electrification – a move that they argue is in line with Congressional directives supporting the shift to electric vehicles. The EPA also argued that the plain language of the Clean Air Act allows the EPA to regulate motor vehicles to prevent pollution, whether the vehicles are electric or not. Further, the EPA said that the purpose here is to regulate automakers while simultaneously protecting the public from pollution, neither of which are interests petitioners are representing, putting them outside of the Clean Air Act’s “zone of interest.” Commonwealth of Kentucky et al. v. U.S. Environmental Protection Agency et al., No. 24-1087 (D.C. Cir. 2024). 

Electricity Generation: Treasury and IRS Finalize Tax Credit Rules for Clean Energy Projects
On December 4, 2024, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) finalized rules for the Investment Tax Credit (ITC), as it relates to clean energy projects. In a press release, the agencies said these rules for the Section 48 Energy Credit will enhance the effectiveness of ITC by providing developers with more clarity and certainty on investment taxation so that they can more confidently take on major projects and investments. The agencies also said the clarity provided by the rules will promote offshore wind, geothermal, energy storage, and other clean energy projects in order to meet our nation’s energy demand, while also creating more jobs. Publication in the Federal Register is forthcoming.

Production and Operation: DOE Announces the Conditional Commitment of a $7.54 Billion Loan for EV Battery Plants
On December 2, 2024, the Department of Energy (DOE) Loans Program Office (LPO) announced the conditional commitment of a loan of up to $7.54 billion to StarPlus Energy LLC. If completed, the loan will provide financing for up to “two lithium-ion battery cell and module manufacturing plants in Kokomo, Indiana.” DOE notes that production from these plants will be used by Stellantis, the principal owner of StarPlus and an electric vehicle (EV) manufacturer, to produce EVs for sale in North America. DOE and Starplus estimate that the project will produce enough batteries to manufacture up to 670,000 EVs a year. Before the loan can be finalized, StarPlus will have to submit a Community Benefits Plan to LPO for approval. More information on the conditional commitment process can be found on the LPO website.

 

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CENTER PROGRAMS & RESOURCES

“Complying with the New U.S. Treasury ‘Beneficial Ownership Information’ Filing Requirements,” Brook Duer Presents with SBDC Agriculture Center of Excellence – Center Staff Attorney Brook Duer will present “Complying with the New U.S. Treasury ‘Beneficial Ownership Information’ Filing Requirements,” hosted by the Pennsylvania Small Business Development Center’s Agriculture Center of Excellence.

“January 2025 Quarterly Dairy Legal Webinar” Penn State Center for Agricultural and Shale Law 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 and includes 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 

The Explosive Evolution of Fracking: A 75-Year Journey  (Hart Energy)

In a shift, Biden to bar most fossil fuel financing overseas  (E&E News)

Norway, Australia End Overseas Financing for Unabated Fossil Fuels (Rigzone)

US-EU Emissions Dialogue Vital to LNG Exporters: DOE (Energy Intel)

Supreme Court to hear case Tuesday that could restrict bedrock environmental law (The Hill)

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

Bloomberg, Oil Edges Higher as Traders Weigh Fallout From Syrian Upheaval (December 9, 2024)

Mallen, Hug, Reiter, et al, FERC Mandates New Supplemental Environmental Impact Statement to Align with Expected Court Litigation (December 5, 2024)

Bloomberg, Oil Slips as Glut Outlook Outweighs Optimism on China Stimulus (December 10, 2024)

Mallen, Hug, Reiter, et al, FERC Overrules Northern Natural and Finds It Does Not Need to Identify Whether a Natural Gas Project’s Greenhouse Gas Emissions are ‘Significant’ (December 5, 2024)

Bloomberg, Oil Edges Higher Ahead of US Inflation Figures and OPEC Report (December 11, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Following FERC Notices, U.S. Department of Energy Provides Clarity to Status of LNG Export Authorization Requests (December 10, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

FEDERAL EXECUTIVE AGENCIES (Federal Register December 6- December 12, 2024)

Environmental Protection Agency

89 FR 99105 Notice: “Federal “Good Neighbor Plan” for the 2015 Ozone National Ambient Air Quality Standards; Notice on Remand of the Record of the Good Neighbor Plan To Respond to Certain Comments” (December 10, 2024)

Federal Energy Regulatory Commission

89 FR 99244 Notice: “Office of Public Participation Fundamentals for Participating in FERC Matters; Notice of Video Workshop: “WorkshOPP on FERC’s Role in Regulating the Construction and Restoration of Interstate Natural Gas Transmission Pipeline Projects”” (December 10, 2024)

89 FR 99247 Notice: “Texas Connector Pipeline, LLC; Notice of Schedule for the Preparation of an Environmental Assessment for the Texas Connector Amendment Project” (December 10, 2024)

89 FR 99249 Notice “Oil Pipeline Capacity Allocation Issues and Anomalous Conditions” (December 10, 2024)

Land Management Bureau

89 FR 99270 Notice: “Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Onshore Oil and Gas Operations and Production” (December 10, 2024)

Natural Resources Revenue Office

89 FR 99275 Notice “States’ Decisions on Participating in Accounting and Auditing Relief for Federal Oil and Gas Marginal Properties” (December 10, 2024)

Pipeline and Hazardous Materials Safety Administration

89 FR 99327 Notice “National Environmental Policy Act Implementing Procedures; Proposed Categorical Exclusions” (December 10, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 49 – December 7, 2024)

Pennsylvania Public Utility Commission

54 Pa.B. 7834 “Regulations Governing the Public Utility Commission’s General Provisions, 52 Pa. Code Chapters 1, 3, and 5 (relating to Rules of Administrative Practice and Procedure; Special Provisions; and Formal Proceedings)” (December 7, 2024)

 

Written by:
Jasmine Gunning, Research Assistant
Dillon Lightfoot, Research Assistant
Riley Amdor, Research Assistant
Caden Dean-Sauter, Research Assistant
Jose Rojas, Research Assistant
Jackie Schweichler, Staff Attorney