Shale Law Weekly Review – Week of July 19, 2021

State Regulation: Florida Law Prohibits Local Governments from Restricting Fossil Fuels ⚡
On July 1, 2021, Florida’s new law banning the restriction of fuel sources became effective in the state. The law, “Preemption Over Utility Service Restrictions,” prohibits local governments and municipalities from passing ordinances, rules, or any other restrictions on fuel sources. The law states that there can be no restrictions for delivery or use of fuel supplied by natural gas companies, liquefied petroleum gas dealers, and others. The bill was signed by the Governor on June 21, 2021.

Hydraulic Fracturing Bans: Pennsylvania Senators will Appeal Case Against DRBC’s Natural Gas Moratorium
On July 12, 2021, Pennsylvania senators, Gene Yaw and Lisa Baker, filed their notice of appeal in the lawsuit against the Delaware River Basin Commission (DRBC) for the DRBC’s natural gas drilling moratorium. Senator Gene Yaw, et al. v. The Delaware River Basin Commission, et al., No. 2:22-cv-00119-PD. The senator plaintiffs initially filed suit in January 2021, alleging that DRBC did not have the authority to impose a moratorium on natural gas development within the basin. The senators argued that public and private landowners the moratorium deprived them of their ability to generate revenue from natural gas sources. In its June 11, 2021, opinion the district court found that the senators were unable to show they suffered an injury and, therefore, the court dismissed the suit for lack of standing. For more background on the DRBC’s drilling moratorium, see our Shale Law in the Spotlight, “Delaware River Basin Commission Finalizes Regulations Prohibiting High-Volume Hydraulic Fracturing Operations Within River Basin.”

International Development: ExxonMobil Joins Carbon Capture and Storage Program in Scotland
On July 16, 2021, ExxonMobil announced that their gas terminals in Scotland will work with the Acorn Project’s carbon capture and storage program. The stated goal of Acorn Project is to address climate change by capturing “approximately 5-6 million tons of CO2 per year by 2030.” The project uses existing oil and gas pipelines to transport the CO2 to offshore infrastructure for storage. According to ExxonMobil, they have signed a Memorandum of Understanding for the gas terminals at their St Fergus complex to be utilized in the program. ExxonMobil has also joined NECCUS, a membership organization in Scotland focused on mitigating climate change through “industrial decarbonization.”

Shale Law/Policy Resources of Interest:

Daniel J. Metzger, Attribution Science in Takings Litigation: A New White Paper [White Paper Link] (July 15, 2021).

Ruth Santiago and Michael B. Gerrard, Renewables Are Key to a Just Energy Future for Puerto Rico (July 14, 2021).

Charles Sartain and Rees LeMay, Texas Court Re-iterates the Need for Clearly Defined Contract Terms (July 14, 2021).

AGENCY PRESS RELEASES – STATE/FEDERAL

Pennsylvania Department of Environmental Protection

DEP Issues Code Orange Air Quality Action Day for Ozone for Friday, July 16, 2021, in Southeastern Counties (July 15, 2021).

DEP Issues Code Orange Air Quality Action Day for Ozone for Thursday, July 15, 2021, in Southeastern Counties (July 14, 2021).

Environmental Quality Board Adopts Final CO2 Budget Trading Program Rulemaking (July 13, 2021).

U.S. Department of Energy

DOE Provides $28 Million to Advance Scientific Discovery Using Supercomputers (July 16, 2021).

U.S. Department of Energy Kicks Off ‘Summer of Solar 2021’ With Tool That Fast-Tracks Solar Power for Communities Nationwide (July 15, 2021).

Secretary Granholm Announces New Goal to Cut Costs of Long Duration Energy Storage by 90 Percent (July 14, 2021).

DOE Awards $12 Million to Tribal Communities to Maximize Deployment of Energy Technology (July 13, 2021).

U.S. Environmental Protection Agency

EPA Files Clean Air Act Complaint for Diesel Truck Tampering in Windham, Maine (July 16, 2021).

Boston River Report Cards Show Widespread Improvements in Bacteria Concentrations and Remaining Localized Challenges (July 14, 2021).

STATE ACTIONS—EXECUTIVE/LEGISLATIVE

Pennsylvania Executive Agencies—Actions and Notices (Pa. Bulletin Vol. 51, No. 29—July 17, 2021)

No relevant actions.

Pennsylvania Legislature

No relevant actions.

 Upcoming Environmental Resources and Energy Meeting “Voting meeting on a letter to IRRC disapproving of Reg#7-559 regarding a CO2 Budget Trading Program (RGGI) and any other business that may come before the committee.” (Meeting on July 27, 2021).

Upcoming Environmental Resources and Energy Meeting “Informational meeting on Cybersecurity in the PJM electric region.” (Meeting on July 28, 2021).

FEDERAL ACTIONS—EXECUTIVE/LEGISLATIVE

Federal Executive Agencies (Federal Register July 12–July 16, 2021):

Environmental Protection Agency

86 FR 37053 Final Rule: “Air Plan Approval; Connecticut; Definitions of Emergency and Emergency Engine” (July 14, 2021).

Executive Office of the President

86 FR 36987 Executive Order: “Promoting Competition in the American Economy [E.O. 14036 of Jul 9, 2021]” (July 14, 2021).

Federal Energy Regulatory Commission

86 FR 37749 Notice: “Combined Notice of Filings [Natural Gas Pipeline Rate and Refund Report Filings]” (July 16, 2021).

86 FR 37750 Notice: “Combined Notice of Filings [Natural Gas Pipeline Rate and Refund Report Filings]” (July 16, 2021).

86 FR 37749 Notice: “Combined Notice of Filings #1 [Electric Rate Filings]” (July 16, 2021).

86 FR 37750 Notice: “Combined Notice of Filings #1 [Electric Corporate Filings]” (July 16, 2021).

86 FR 37322 Notice: “Texas Gas Transmission, LLC; Notice of Application and Establishing Intervention Deadline” (July 15, 2021).

86 FR 37317 Notice: “Combined Notice of Filings #1 [Exempt Wholesale Generator Filings]” (July 15, 2021).

86 FR 37319 Notice: “Combined Notice of Filings [Natural Gas Pipeline Rate and Refund Report Filings]” (July 15, 2021).

86 FR 37321 Notice: “North Baja Pipeline, LLC; Notice of Availability of the Draft Environmental Impact Statement for The Proposed North Baja Xpress Project” (July 15, 2021).

86 FR 37320 Notice: “Records Governing Off-the-Record Communications; Public Notice [Federal Energy Regulatory Commission]” (July 15, 2021).

86 FR 37144 Notice, Request for Comments: “Commission Information Collection Activities (FERC-65, FERC-65A, and FERC-65B) Consolidated Comment Request; Extension” (July 14, 2021).

86 FR 37142 Notice: “Combined Notice of Filings [Natural Gas Pipeline Rate and Refund Report Filings]” (July 14, 2021).

86 FR 37148 Notice: “Combined Notice of Filings #1 [Electric Rate Filings]” (July 14, 2021).

86 FR 37146 Notice: “ANR Pipeline Company; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline” (July 14, 2021).

86 FR 37142 Notice: “Eastern Gas Transmission and Storage, Inc.; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline” (July 14, 2021).

86 FR 37150 Notice: “Iroquois Gas Transmission System, L.P.; Notice of Revised Comment Period Deadline” (July 14, 2021).

86 FR 36740 Notice: “ANR Pipeline Company; Great Lakes Transmission Limited Partnership; Notice of Intent to Prepare an Environmental Impact Statement for the Proposed Alberta Xpress and Lease Capacity Abandonment Projects and Schedule for Environmental Review” (July 13, 2021).

86 FR 36741 Notice: “Delfin LNG LLC; Notice of Request for Extension of Time [to Complete Approved Facility Construction” (July 13, 2021).

86 FR 36739 Notice: “Rockies Express Pipeline LLC; Notice of Extension of Time Request [to Complete the Construction of Six Natural Gas Reciprocating Compressor Units]” (July 13, 2021).

86 FR 36743 Notice: “Sunshine Act Meetings [from Federal Energy Regulatory Commission]” (July 13, 2021).

86 FR 36540 Notice, Request for Comments: “Commission Information Collection Activities Ferc-917 and Ferc-918; Consolidated Comment Request; Extension” (July 12, 2021).

86 FR 36539 Notice: “Combined Notice of Filings #1 [Electric Rate Filings]” (July 12, 2021).

86 FR 36545 Notice: “Combined Notice of Filings [Natural Gas Pipeline Rate and Refund Report Filings]” (July 12, 2021).

House Energy and Commerce Committee Actions:

H.R.4463 “To require the Administrator of the Environmental Protection Agency to promulgate regulations regarding disposal of materials containing perfluoroalkyl and polyfluoroalkyl substances or aqueous film forming foam, and for other purposes.” Referred to the House Committee on Energy and Commerce (July 16, 2021).

H.R.4413 “To facilitate efficient investments and financing of infrastructure projects and new job creation through the establishment of a National Infrastructure Development Bank, and for other purposes.” Referred to the Subcommittee on Water Resources and Environment (July 14, 2021).

H.R.2780 “Insular Area Climate Change Act [‘to provide for climate change planning, mitigation, adaptation, and resilience’]” Ordered to be Reported (Amended) by the Yeas and Nays: 25 – 17 (July 14, 2021).

H.R.4410 “To amend the Clean Air Act to modify the ethanol waiver for the Reid Vapor Pressure limitations under that Act, and for other purposes.” Referred to the House Committee on Energy and Commerce (July 13, 2021).

H.R.2467 “PFAS Action Act of 2021 [requires designation of ‘per- and polyfluoroalkyl substances as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980’ – House Energy and Commerce Committee Report]” Placed on the Union Calendar, Calendar No. 61 (July 13, 2021).

Senate Energy and Natural Resources Committee:

S.2370 “A bill to require the Secretary of Energy to provide rebates for the installation of zero-emission technologies in single-family homes and multifamily buildings, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources (July 15, 2021).

S.2318 “A bill to amend the Public Utility Regulatory Policies Act of 1978 to require the consideration of a standard for promoting the use of demand-response technology and practices, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources (July 13, 2021).

H.R.3593 “Department of Energy Science for the Future Act [‘guidance for and investment in the research and development activities of the Department of Energy’]” Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources (July 12, 2021).

S.2310 “A bill to require the Secretary of Energy to conduct a study regarding codes and standards for use of energy storage systems across sectors and demonstrate certain second-life applications of electric vehicle batteries, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources (July 12, 2021).

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks July 12–July 16, 2021:

Nearly Half of Oil and Gas Emissions Could be Cut Without Spending a Penny, CBS News

North Dakota Sues Federal Govt Over Canceled Oil and Gas Leasing, Reuters

EPA Challenge Muddles Future of Mountain Valley Pipeline, E&E News

U.S. Oil Consumption Surging with Industry Firing at Full Blast, Bloomberg

Court Ruling Upholding Gas Ban Transforms U.S. Fight, E&E News

What Coal’s Comeback Means for Emissions, Energy Markets, E&E News

A $140 Billion Asset Sale: Investors Cashing in on Big Oil’s Push to Net Zero, Hart Energy

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Written by:
Noah Gochnauer, Research Assistant
Audry Thompson, Research Assistant
Jackie Schweichler, Staff Attorney