Shale Law Weekly Review—Week of August 14, 2023

Production and Operation: The Department of Transportation’s National Highway Traffic Safety Administration Announces New Fuel Economy Standards for Cars and Trucks ⚡
On July 28, 2023, the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) has proposed updated fuel economy standards for passenger cars and light trucks. A 60-day public comment period will follow the proposal’s publication. The NHTSA’s suggested rule is intended to align with the Biden-Harris Administration’s commitment to reducing greenhouse gas emissions and air pollution, particularly in marginalized communities. It proposes various improvements, including a 2% annual fuel efficiency increase for cars and 4% for light trucks. These changes may create an overall “fuel economy of 58 miles per gallon by 2032.” Commercial vehicles will also need to improve by 10% per year in model year 2030.

National Energy Policy: U.S. Department of Energy Allocates $46 Million on Energy Efficient Projects in 15 States
On August 7, 2023, the U.S. Department of Energy (DOE) announced that it is allocating $46 million for 29 projects in 15 states as part of a funding effort entitled, The Buildings Energy Efficiency Frontiers and Innovation Technologies (BENEFIT). These projects are meant to “develop advanced building technologies” and improve upon conventional energy customs, enhancing energy efficiency and health while reducing waste. The Buildings Energy Efficiency Frontiers and Innovation Technologies (BENEFIT), supports electrifying buildings nationwide, cutting emissions, and improving the electric grid. Most of the projects propose improvements to space conditioning and water heating.

Public Lands: California Supreme Court Ruled Against Local Ordinance Banning Drilling in Monterey County
On August 3, 2023, the California Supreme Court held that Monterey County in California cannot enforce an ordinance banning oil and gas drilling in the county’s unincorporated areas.  Chevron U.S.A. Inc. et al., v. County of Monterey, et al., 16CV003978. An environmental group called Protect Monterey County (PMC) filed a lawsuit fighting the initiative known as Measure Z. The trial court sided with the plaintiffs based on preemption and the Court of Appeal upheld that decision. The court reviewed whether California law preempts Measure Z. PMC argued for a presumption against preemption due to Measure Z’s classification as a “land use ordinance,” but the court found this presumption rebutted by the measure’s clear contradiction with the state law. The court did not address field preemption or federal obstacle preemption doctrines due to the finding of contradiction preemption. Ultimately, the Court of Appeal’s judgment was affirmed.

Environmental Impact Studies: The Bureau of Land Management Releases New Environmental Impact Statement on Oil and Gas Leases in Colorado
On August 3, 2023, the Bureau of Land Management (BLM) released a draft supplemental Environmental Impact Statement (EIS) for the Colorado River Valley Field Office (CRVFO) and Grand Junction Field Office (GJFO) Resource Management Plans (RMP)/Final EIS. The EIS was prepared in compliance with the settlement agreements and includes a review of the Resource Management Plans. The planning area includes over a million acres in various Colorado counties of BLM-administered surface lands and federal fluid mineral estate. The proposed alternatives include different oil and gas leasing allocations and their potential impacts. BLM’s preferred alternative is Alternative E, with impacts occurring over a smaller area.

 

CENTER PROGRAMS & RESOURCES

3rd Annual Penn State Solar Law Symposium – This year’s webinar topics will include gridscale solar overview; solar development from the perspectives of the landowner, the developer, and the municipality; Public Utility Commission considerations; and PJM considerations, more information, and registration available here.

August 23, 2023, noon – 4:15 pm (ET). (Register)

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.

August 25, 2023, noon – 1 pm (ET). Understanding the Basics of Milk Pricing. (Register)

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks

Venture Global reaches ‘major regulatory milestone’ for CP2 LNG [Offshore Energy]

Construction of LNG Canada pipeline, Coastal GasLink, in full swing [Offshore Energy]

Vertex begins sales of renewable diesel from Alabama renewables plant [Oil and Gas Journal]

Saudi Arabia again extends oil production cut [The Hill]

Taiyo Oil launches study for renewable fuels project at site of idled Okinawa refinery [Oil and Gas Journal]

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

John McFarland, Cactus Water Services v. COP Operating — Who Owns Produced Water? (Aug. 3, 2023)

Brigit Rollins, NEPA Set for Regulatory Revisions (Aug. 3, 2023)

Archie Hunter, Upstart Traders of Russian Oil Had Representatives in Common (Aug. 6, 2023)

Stephen Hug, ‘FERC’s Interconnection Rule: What’s In, What’s Out, and Does It Matter?’ (Aug. 8, 2023)

Yongchang Chin, Oil Steadies Ahead of US Figures on Outlook, Crude Stockpiles (Aug. 8, 2023)

Serene Cheong, Oil’s Hottest Trade Gathers Momentum as Key Spread Goes Negative (Aug. 8, 2023)

Michael Gerrard, New California Legislation Would Be a Major Step Forward for Climate Disclosure (Aug. 8, 2023)

Charles Sartain, “Harmony” in a Texas Mineral Reservation (Aug. 9, 2023)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

U.S. Department of Energy Announces $37 Million to Build Research Capacity at Historically Underrepresented Institutions (Aug. 7, 2023)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA penalizes Alaska homebuilder $107,000 for violations of Clean Water Act (Aug. 3, 2023)

EPA Proposes to Deny Alabama’s Coal Ash Permit Program and Better Protect Local Communities from Pollution (Aug. 3, 2023)

EPA Releases Preliminary Data for 2022 Toxics Release Inventory Reporting Year (Aug. 4, 2023)

FEDERAL EXECUTIVE AGENCIES (Federal Register Aug. 4 – Aug. 10, 2023)

Environmental Protection Agency

88 FR 51812 Notice: “Environmental Impact Statements; Notice of Availability (CP2 LNG and CP Express Project)” (Aug. 4, 2023)

88 FR 54118 Proposed Rule – Comment Period: “Revisions to the Air Emissions Reporting Requirements” (Aug. 9, 2023)

Federal Energy Regulatory Commission

88 FR 51810 Notice: “Transcontinental Gas Pipe Line Company, LLC; Northern Natural Gas Company; Notice of Schedule for the Preparation of an Environmental Assessment for the Pelto Area Abandonment Project” (Aug. 4, 2023)

88 FR 51807 Notice: “East Tennessee Natural Gas, LLC; Notice of Application and Establishing Intervention Deadline” (Aug. 4, 2023)

88 FR 51805 Notice: “Port Arthur Pipeline, LLC; Notice of Application and Establishing Intervention Deadline” (Aug. 4, 2023)

88 FR 51802 Notice: “Venture Global CP2 LNG, LLC; Venture Global CP Express, LLC; Notice of Availability of the Final Environmental Impact Statement for the Proposed CP2 LNG and CP Express Projects” (Aug. 4, 2023)

88 FR 52147 Notice: “Discovery Gas Transmission LLC; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline” (Aug. 7, 2023)

Energy Department

88 FR 51792 Notice: “Notice of Final Determination on 2023 DOE Critical Materials List” (Aug. 4, 2023)

88 FR 51798 Notice: “Notice of Adoption of Nuclear Regulatory Commission National Environmental Policy Act Documentation for the Operation of Diablo Canyon Power Plant and Republication as a Final DOE Environmental Impact Statement for Award of Credits to Pacific Gas and Electric Company Under the Civil Nuclear Credit Program” (Aug. 4, 2023)

U.S. Army Corps of Engineers

88 FR 51787 Notice – Comment Period: “Extension of Comment Period for Notice of Intent To Prepare a Supplemental Environmental Impact Statement for the Matagorda Ship Channel Improvement Project, Calhoun and Matagorda Counties, TX” (Aug. 4, 2023)

Land Management Bureau

88 FR 53908 Notice – Comment Period: “Notice of Intent To Amend the Resource Management Plan for the Proposed GridLiance West Core Upgrades Transmission Line Project in Nye and Clark Counties, Nevada and Prepare an Associated Environmental Impact Statement” (Aug. 9, 2023)

Natural Resources Revenue Office

88 FR 53790 Rule: “Electronic Provision of Records During an Audit” (Aug. 8, 2023)

Pipeline and Hazardous Materials Safety Administration

88 FR 52256 Notice: “Pipeline Safety: Pipeline Safety Research and Development Forum” (Aug. 7, 2023)

88 FR 54396 Notice – Comment Period: “Hazardous Materials: Notice of Applications for New Special Permits” (Aug. 10, 2023)

88 FR 54395 Notice – Comment Period: “Hazardous Materials: Notice of Applications for Modification to Special Permits” (Aug. 10, 2023)

88 FR 54394 Notice – Comment Period: “Hazardous Materials: Notice of Actions on Special Permits” (Aug. 10, 2023)

Department of Justice

88 FR 53524 Notice: “Notice of Lodging of Proposed Consent Decree Under the Clean Air Act” (Aug. 8, 2023)

88 FR 53522 Notice: “Notice of Lodging of Proposed Consent Decree Under the Clean Air Act and Clean Water Act” (Aug. 8, 2023)

Surface Mining Reclamation and Enforcement Office

88 FR 52205 Notice – Comment Period: “Notice of Intent To Prepare an Environmental Impact Statement for Signal Peak Energy, LLC’s Federal Mine Plan for Federal Lease MTM-97988; Bull Mountains Mine Amendment 3 and 5 EIS” (Aug. 7, 2023)

Ocean Management Bureau

88 FR 54351 Notice – Comment Period: “Agency Information Collection Activities; North Atlantic Right Whale Research and Management Activities” (Aug. 10, 2023)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.5154 “To require the Federal Energy Regulatory Commission to promulgate regulations with respect to regional and interregional transmission planning, and for other purposes.” Referred to the House Committee on Energy and Commerce. (Aug. 4, 2023)

H.R.5156 “To direct the Administrator of the Environmental Protection Agency to amend regulations relating to exemptions for engines and equipment for purposes of national security, and for other purposes.” Referred to the House Committee on Energy and Commerce. (Aug. 4, 2023)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

S.2480 “A bill to require the Federal Energy Regulatory Commission to promulgate regulations with respect to regional and interregional transmission planning, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (Jul. 25, 2023)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 53, No. 31—Aug. 5, 2023)

Department of Envrionmental Protection

53 Pa.B. 4428 Notice: “APPLICATIONS FOR NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) PERMITS AND WATER QUALITY MANAGEMENT (WQM) PERMITS UNDER THE CLEAN STREAMS LAW AND FEDERAL CLEAN WATER ACT”

53 Pa.B. 4502 Notice: “Proposed State Implementation Plan Revision; Attainment Demonstration and Base Year Inventory for the Philadelphia, PA Nonattainment Area for the 2015 Ozone National Ambient Air Quality Standard; Public Hearing”

Pennsylvania Legislature

SB 198 “An Act amending the act of July 13, 1988 (P.L.530, No.94), known as the Environmental Hearing Board Act, further providing for definitions and for jurisdiction.”
Referred to ENVIRONMENTAL RESOURCES AND ENERGY (Jun. 22, 2023).

HB 1032 “An Act establishing the Solar for Schools Grant Program; and providing for powers and duties of the Department of Community and Economic Development.” Referred to COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT (Jul. 27, 2023)

 

Written By: 
Lonzie Helms, Research Assistant 
Mary Johnson, Research Assistant 
Jackie Schweichler, Staff Attorney