April 19, 2023
Shale Law Weekly Review—Week of April 17, 2023
Pipelines: DOT Grants $196 Million for Pipeline Repair and Improvement Projects ⚡
On Wednesday, April 5, 2023, the Department of Transportation (DOT) and the Hazardous Material Safety Administration (PHMSA) announced $196 million in grants that will fund 37 projects across 19 states for the purpose of fixing old, leaky pipelines. The main goal of the projects is to improve public health and safety by cutting down on methane emissions from faulty gas pipes. The announcement emphasizes the job growth that will result from the grant, noting that hundreds of individuals from rural and urban communities will find employment repairing, replacing, or rehabilitating around 270 miles of pipe. In total, these projects are estimated to cut out 212 metric tons of methane emissions, which will improve public health, reduce waste, and make energy more affordable for families in the process.
Air Quality: Gas Plant Air Quality Permit Vacated by Montana District Court
On Thursday, April 6, 2023, Montana’s Thirteenth Judicial District Court issued a final order with respect to a claim brought by the Montana Environmental Information Center and the Sierra Club against the Montana Department of Environmental Quality (DEQ) and Northwestern Energy, Inc. Montana Env’t Info. Ctr, et al. v. Montana Dep’t of Env’t Quality, et al., No. DV 21-1307. The complaint was filed to challenge DEQ’s approval of an air permit that will allow Northwestern to build a “175-megawatt gas-fired power plant” on the bank of eastern Montana’s Yellowstone River. In their Motion for Summary Judgment, Plaintiffs argue that the DEQ failed to adequately consider the gas plant’s impacts before issuing the air quality permit, thereby violating the requirements of the Montana Environmental Policy Act (MEPA). The impacts which Plaintiffs assert DEQ failed to take a “hard look” at include water quality, aesthetics (including visual, light, and noise), sulfur oxide (SO2) and greenhouse gas emissions, and pipelines. The Court ruled in favor of Defendants with respect to DEQ’s alleged failure to consider the impacts of building a pipeline next to and under the Yellowstone River, finding that DEQ was not required by MEPA to conduct such an analysis before issuing the air quality permit. With respect to the impacts asserted by Plaintiffs, the court ruled in favor of Defendants on the issues of water quality, noise emissions, miscellaneous aesthetics, and SO2 emissions. The court ruled in favor of Plaintiffs on impacts from lighting and greenhouse gas emissions. As a remedy, the court vacated the air quality permit and ordered DEQ to fulfill its statutory responsibilities under MEPA by conducting a thorough analysis of the project’s impact on lighting and greenhouse gas emissions.
National Energy Policy: EPA Sued for Alleged Failure to Maintain RFS Compliance
On Monday, April 10, 2023, ethanol trade group Growth Energy filed a complaint against the Environmental Protection Agency (EPA) in D.C. Circuit Court, alleging that the agency unlawfully permitted dozens of refineries to sidestep their obligation to source renewable fuel credits under the Renewable Fuel Standard (RFS). Growth Energy v. U.S. EPA No. 22-1126. The 34 exemptions at issue, which were initially granted to 31 small refineries to alleviate their 2016-2018 obligations, were already invalidated by the Tenth Circuit in 2022. This lawsuit has been filed with respect to the “alternative compliance” actions taken by the EPA, which Growth Energy argues still fail to facilitate adequate RFS compliance from these 31 refineries. At the core of the EPA’s defense is the contention that the agency cannot retroactively force these refineries to purchase 1.6 billion renewable fuel credits so that they become compliant with the RFS. Growth Energy argues that there is no reason for these refineries to be unable to satisfy their obligations, and the EPA has a legal duty to ensure that they do.
Oil & Gas Law & Policy Resources:
Bloomberg, Exxon, Pioneer Held Preliminary Talks Over Possible Deal: WSJ (April 8, 2023)
Eisenson, FERC’s Proposed Rule on Siting Interstate Transmission Could Expedite Permitting and Ensure Climate Resilience (April 11, 2023)
Barakat et al., Treasury Updates Guidance Issued Last Week on ‘Energy Community’ Tax Credit Adders (April 11, 2023)
Bloomberg, Oil at Sea Surges in Fresh Sign of Russian Flows Going Farther (April 13, 2023)
Energy Connects, ADNOC Drilling secures US$412 mln integrated drilling services contract (April 14, 2023)
Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks April 8 – April 14, 2023:
U.S. EPA orders Valero to improve chemical safety at California refinery (Reuters)
A tax break on clean energy projects is coming to coal and oil towns (Grist)
Pennsylvania Natural-Gas Output Fell Last Year in Shale-Era First (WSJ)
Oklahoma Corporation Commission make oil, gas companies limit wastewater disposal (KOCO News)
Texas Senate Backs Plan to Publicly Fund New Gas-Fired Power Plants (Bloomberg)
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Penn State Farmland Energy Legal Podcast: Listen to the latest episode here.
FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE
U.S. ENVIRONMENTAL PROTECTION AGENCY
Los Angeles Businessman, Utah Fuel Plant Operators and Employees Sentenced to Prison for Billion-dollar Biofuel Tax Fraud Scheme (April 10, 2023)
EPA Proposes New Standards to Protect Public Health, Reduce Exposure to Ethylene Oxide Pollution (April 11, 2023)
EPA Settles with Imperial Irrigation District for Safe Drinking Water Act Underground Injection Well Claims (April 11, 2023)
Biden-Harris Administration Proposes Strongest-Ever Pollution Standards for Cars and Trucks to Accelerate Transition to a Clean-Transportation Future (April 12, 2023)
EPA Publishes 30th Annual U.S. Greenhouse Gas Inventory (April 13, 2023)
FEDERAL EXECUTIVE AGENCIES (Federal Register April 11–April 14, 2023):
Energy Department
88 FR 21525: Proposed Rule, Comments Close 6/12/23: “Petroleum-Equivalent Fuel Economy Calculation” (April 11, 2023)
88 FR 21816: Rule: “Energy Conservation Program: Test Procedure for Computer Room Air Conditioners” (April 11, 2023)
Environmental Protection Agency
88 FR 21576: Proposed Rule, Comments Close 5/11/23: “Air Plan Approval; Connecticut; New Source Review Permit Program State Plan Revision” (April 11, 2023)
Federal Energy Regulatory Commission
88 FR 22447: Notice: “Combined Notice of Filings” (April 13, 2023)
Susquehanna River Basin Commission
88 FR 22083: Notice, Comments Close 5/15/23: “Public Hearing” (April 12, 2023)
88 FR 22082: Notice: “Projects Approved for Consumptive Uses of Water” (April 12, 2023)
Bureau of Land Management
88 FR 21708: Notice: “Notice of Competitive Offer and Notice of Segregation for Solar Energy Development on Public Land, Nye County, Nevada” (April 11, 2023)
Ocean Energy Management Bureau
88 FR 22910: Rule: “Oil Spill Financial Responsibility Adjustment of the Limit of Liability for Offshore Facilities” (April 14, 2023)
Other Agencies
88 FR 23101: Notice, Comments Close 5/15/23: “Petition for Modification of Application of Existing Mandatory Safety Standards” (April 14, 2023)
88 FR 22971: Proposed Rule, Comments Close 5/15/23: “Safety Zone; Anchor Floating Production Unit (FPU) Outer Continental Shelf Facility, Green Canyon Block 763, Gulf of Mexico” (April 14, 2023)
88 FR 22913: Rule: “Safety Zone; Constitution Spar Outer Continental Shelf Facility, Green Canyon Block 680, Gulf of Mexico” (April 14, 2023)
88 FR 22968: Proposed Rule, Comments Close 5/15/23: “Safety Zone; ARGOS Semisubmersible Floating Production Unit Outer Continental Shelf Facility, Green Canyon Block 780, Gulf of Mexico” (April 14, 2023)
88 FR 22530: Proposed Rule, Comments Close 5/30/23: “Endangered and Threatened Wildlife and Plants; Designation of Critical Habitat for Rufa Red Knot” (April 13, 2023)
88 FR 22696: Proposed Rule, Comments Close 5/15/23: “Takes of Marine Mammals Incidental to Specified Activities; Taking Marine Mammals Incidental to the Empire Wind Project, Offshore New York” (April 13, 2023)
88 FR 21471: Rule: “Safety Zone; Vito Floating Production System, Outer Continental Shelf Facility, Mississippi Canyon Block 939, Gulf of Mexico” (April 11, 2023)
88 FR 21468: Rule: “Safety Zone; Lucius Spar Outer Continental Shelf Facility, Keathley Canyon Block 875, Gulf of Mexico” (April 11, 2023)
88 FR 21470: Rule: “Safety Zone; Heidelberg Spar Outer Continental Shelf Facility, Green Canyon Block 860, Gulf of Mexico” (April 11, 2023)
88 FR 21474: Rule: “Safety Zone; Horn Mountain Spar Outer Continental Shelf Facility, Mississippi Canyon Block 127, Gulf of Mexico” (April 11, 2023)
U.S. HOUSE ENERGY AND COMMERCE COMMITTEE
H.R.2596 “To prohibit natural gas price gouging after a disaster, and for other purposes.” Referred to the House Committee on Energy and Commerce. (April 13, 2023)
STATE ACTIONS—EXECUTIVE & LEGISLATIVE
PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES
Shapiro Administration Announces Commitment to Fight Climate Change Under New EPA Climate Grant Program (April 14, 2023)
PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 53, No. 15 April 15, 2023)
DEPARTMENT OF ENVIRONMENTAL PROTECTION
53 Pa.B. 2121: Notice: “Availability of Technical Guidance”
53 Pa.B. 2123: Notice: “Planning Grant Award under Section 901 of the Municipal Waste Planning, Recycling and Waste Reduction Act, Act 101 of 1988”
PENNSYLVANIA LEGISLATURE
HR 67 “A Resolution urging the President of the United States to prioritize the development and utilization of safe and reliable pipelines for energy transport.” Referred to ENVIRONMENTAL RESOURCES AND ENERGY [House] (April 10, 2023)
SB 550 “An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, providing for community solar facilities.” Referred to CONSUMER PROTECTION AND PROFESSIONAL LICENSURE [Senate] (April 13, 2023)
Written by:
Kole Zellers, Research Assistant
Kendal Ashman, Research Assistant
Jackie Schweichler, Staff Attorney
