Shale Law Weekly Review—Week of November 7, 2022

National Energy Policy: EPA Announces $43 Million Toward Energy Resilience and Local Generation Projects ⚡
On November 2, 2022, the U.S. Environmental Protection Agency announced a total of $43 million across 23 projects in 21 states and territories, all focused on energy resilience or research of local energy generation. In the RACER program, 20 projects focus on preventing disruptions in power by building clean energy. The other three projects under the Energyshed funding program focus on assisting communities in evaluating locally generated energy.  

GHG Emissions: EU Reaches Agreement Requiring New Cars Sold to be Zero-Emissions by 2035
On October 27, 2022, the European Union’s Parliament and Council reached an agreement which would require all new cars and vans sold in the EU to be zero-emissions by 2035, according to a press release the EU put out the following day. The agreement is provisional and must be formally adopted by the Parliament and Council. The agreement would also require a decrease in average emissions of new cars; a reduction of 55% by 2030.  

State Regulation: Pennsylvania Passes Tax Subsidies for Natural Gas Industry
On October 27, 2022, HB 1059, which would create a tax credit of $0.47 per unit of dry natural gas purchased and used in production of petrochemicals or fertilizer, passed the Pennsylvania House and Senate and was presented to the Governor for approval. As background, the bill defines a “unit” as 1000 cubic feet of natural gas at a certain temperature and pressure. The bill would increase the maximum tax credit for these usages of natural gas to $56 million annually.

Oil and Gas Regulations: Well Plugging Grant Program Presented to PA Governor
On October 26, 2022, the Pennsylvania Senate and House approved HB 2528, which would establish a program providing grants, an application and registration process, and a review process for plugging orphaned wells as defined by the bill. A recent amendment approved with the bill would restrict companies with environmental law violations from receiving grants through the program. The bill now goes to the governor for approval.

 

Oil & Gas Law & Policy Resources:

Markowitz, et al., Climate Policy Update (October 31, 2022)

Sartain, Louisiana Coastal Zone Suit Returns to State Court (November 1, 2022)

Bloomberg, Oil Extends Gains After Report Points to Shrinking US Stockpiles (November 2, 2022)

Bloomberg, Uniper Posts €40 Billion Loss as Russia Throttles Gas Supply (November 3, 2022)

Energy Connects, ADNOC, Baker Hughes sign agreement to explore new technology for a clean energy future (November 3, 2022)

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks October 29– November 4, 2022:

Va. youth to fight court loss in ‘kids climate case’ (PoliticoPro)

U.S. oil production nears 12 mln barrels/day, at pre-pandemic high (Reuters)

For top U.S. oil producers, Permian shale output is losing steam (Reuters)

Norway Now Comfortably Europe’s Top Gas Supplier (Rigzone)

Peak Fossil-Fuel Demand Is Possible in a Few Years, IEA Says (WSJ)

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

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY

DOE Announces $35 Million To Deploy Clean Energy on Tribal Lands and Power Unelectrified Tribal Buildings (November 1, 2022)

Biden-Harris Administration Announces State And Tribe Allocations For Home Energy Rebate Program (November 2, 2022)

DOE Announces $43 Million To Support the Clean Energy Transition in Communities Across the Country (November 2, 2022)

DOE Announces Final Contract Awards From President Biden’s Emergency Release From the Strategic Petroleum Reserve (November 3, 2022)

Biden-Harris Administration Announces $1.5 Billion From Inflation Reduction Act to Strengthen America’s National Laboratories (November 4, 2022)

FEDERAL EXECUTIVE AGENCIES (Federal Register October 29–November 4, 2022):

Energy Department

87 FR 65687: Proposed Rule, Comments Close 1/3/23: “Energy Conservation Program: Energy Conservation Standards for Consumer Furnace Fans” (November 1, 2022)

Environmental Protection Agency

87 FR 66086: Rule: “Air Plan Approval; Maryland; Clean Data Determination and Approval of Select Attainment Plan Elements for the Anne Arundel County and Baltimore County, MD Sulfur Dioxide Nonattainment Area” (November 2, 2022)

87 FR 65714: Proposed Rule, Comments Close 12/2/22: “Approval of Air Quality Implementation Plans; New York; Gasoline Dispensing Stage I, Stage II, and Transport Vehicles” (November 1, 2022)

87 FR 65548: Proposed Rule, Comments Close 11/30/22: “Significant New Use Rules on Certain Chemical Substances (22-2.5e)” (October 31, 2022)

Pipeline and Hazardous Materials Safety Administration

87 FR 66773: Notice: “Hazardous Materials: Public Meeting Notice for the Research, Development & Technology Virtual Forum” (November 4, 2022)

Other Agencies

87 FR 66890: Proposed Rule, Comments Close 1/3/23: “Representation-Case Procedures: Election Bars; Proof of Majority Support in Construction Industry Collective-Bargaining Relationships” (November 4, 2022)

87 FR 65642: Notice, Comments Close 11/30/22: “Pipeline Safety: Information Collection Activities” (October 31, 2022)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES
DEP Documents Farmers’ Efforts in 2021-22 to Improve Water Quality in Chesapeake Bay Watershed (November 2, 2022)

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 52, No. 45 November 5, 2022)

PENNSYLVANIA LEGISLATURE

H.B. 2914 “An Act establishing the Coal and Clay Mine Subsidence and Landslide Insurance and Assistance Program within the Department of Environmental Protection; providing for related powers and duties of the Department of Environmental Protection; establishing and providing for the powers and duties of the Coal and Clay Mine Subsidence and Landslide Insurance Board; providing for duties of the Auditor General; establishing the Coal and Clay Mine Subsidence and Landslide Insurance Fund and the Coal and Clay Mine Subsidence and Landslide Assistance Fund; imposing a penalty; making appropriations and transfers; and making a related repeal.” Referred to Environmental and Energy, [House] (November 2, 2022)

H.R. 238 “A Resolution directing the Joint State Government Commission to conduct a holistic study on the benefits of nuclear energy and small modular reactors.” Reported as committed, [House] (October 26, 2022)

 

Written by:
Ethan Durand, Research Assistant
Kendal Ashman, Research Assistant
Jackie Schweichler, Staff Attorney