Shale Law Weekly Review—Week of December 26, 2022

GHG Emissions: EPA Finalizes Program to Further Reduce Air Pollution Through New Emissions Standards on Heavy-duty Engines and Vehicles ⚡
On December 20, 2022, the EPA finalized a rule that will introduce a new program to curtail ozone and particulate matter (PM) pollution through new emissions standards that apply to the operating conditions of heavy-duty engines. The program has several new requirements, which include new numeric standards and requirements for testing procedures, regulating useful life, and issuing warranties that are much more stringent than the requirements of the current heavy-duty emission control program. The overall objective of the new program is to regulate the range of heavy-duty engine operations for a greater length of time to reduce emissions as much as possible. Specifically, the program will target NOx, PM, hydrocarbons, carbon monoxide, and air toxins from engines beginning no later than model year 2027. The new program will also change the emission standards of other engines, including “light-duty vehicles, marine diesel engines, locomotives, and various other types of nonroad engines, vehicles, and equipment.”

Pipelines: FERC Grants Permanent Certificate for Spire STL’s Operations
On December 15, 2022, the Federal Energy Regulatory Commission voted to reissue a Certificate of Permanent Convenience and Necessity for the Spire STL Pipeline connecting St. Louis to the Appalachian Basin and Rocky Mountains, according to a press release by Spire. The pipeline had been operating under a temporary certificate since December 2021. 

Methane Emissions: EPA Announces Acceptance of PA’s VOC/Methane Limits
On December 15, 2022, the U.S. Environmental Protection Agency wrote a letter to the Pennsylvania Department of Environmental Protection (DEP) accepting the DEP’s State Implementation Plan (SIP) revisions. The revisions set new VOC emission limits for the oil and gas industry in Pennsylvania. The EPA had originally imposed mandatory highway sanctions on Pennsylvania and other states after issuing a Finding of Failure to submit SIPs in November 2020.  

Infrastructure: USDA Announces Investments for Expanded Access to Renewable Energy
On December 15, 2022, the U.S. Department of Agriculture announced a total investment of $285 million in initiatives supporting infrastructure and expanded access to renewable energy for rural America. USDA will also invest $300 million in the Rural Energy for America Program, which grants money to farmers and agricultural producers for the purchase and installation of renewable energy systems.  

State Regulation: Ohio Legislature Passes a Bill to Define Natural Gas as a “Green Energy” and to Require State Agencies to Lease Land for Oil or Gas Development
On December 13, 2022, the Ohio legislature passed House Bill 507, which was originally introduced as a revision to the number of poultry chicks that may be sold in lots. The bill was amended to introduce changes to oil and gas development on state land and to the definition of a “green energy.” Under H.B. 507, every state agency would be required to lease a formation within a parcel of land owned or controlled by the agency for the purpose of exploration, development, and production of oil or natural gas. Further, the term “green energy” is defined by the bill to include “energy generated by using natural gas as a resource.”

Oil & Gas Law & Policy Resources:

Markowitz, et al., This Week’s Climate Policy Update (December 19, 2022)

McFarland, Year in Review: Significant Cases and Events (December 20, 2022)

Mallen, FERC Proposes New Policy on Contracts Between Oil Pipelines and Their Affiliates (December 21, 2022)

Webb, FERC PROPOSES REFORMS TO SPEED-UP APPROVAL OF INTERSTATE TRANSMISSION INFRASTRUCTURE (December 21, 2022)

Mallen, Johnson & Goodgame, Five Takeaways from FERC’s Panhandle Eastern Pipe Line Company, LP Order (December 22, 2022)

Tigre, A LOOK BACK AT SIGNIFICANT DECISIONS IN CLIMATE LITIGATION IN 2022 (December 22, 2022)

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks December 17– December 23, 2022:

Freeport LNG Planning On Year-End Restart (Oil Price)

EU nations agree on temporary gas price cap (The Hill)

Ohio legislature passes bill opening all state land to fracking, labeling natural gas ‘green energy’ (Cleveland.com)

End of the line for permitting bill, but 2023 fight looms (E&E Daily)

G7 agrees $15.5B energy deal with Vietnam to cut emissions (AP)

Connect with us on Facebook. 

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

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY

Biden-Harris Administration Announces $45 Million From Bipartisan Infrastructure Law to Support Resilient and Efficient Building Energy Codes (December 19, 2022)

Biden-Harris Administration Proposes Raising Efficiency Standard for Light Bulbs (December 19, 2022)

U.S. ENVIRONMENTAL PROTECTION AGENCY

EPA proposes consent order on safe closure of Navy’s Red Hill Fuel Facility (December 21, 2022)

Final EPA Standards for Heavy-Duty Vehicles to Slash Dangerous Pollution and Take Key Step Toward Accelerating Zero-Emissions Future (December 20, 2022)

EPA settles with Red Mountain Truck Lines for Butte, Montana fuel spill (December 19, 2022)

FEDERAL EXECUTIVE AGENCIES (Federal Register December 17–December 23, 2022):

Energy Department

87 FR 78821: Rule: “Energy Conservation Program: Energy Conservation Standards for Commercial Warm Air Furnaces” (December 23, 2022)

87 FR 78382: Proposed Rule: “Clean Energy for New Federal Buildings and Major Renovations of Federal Buildings” (December 21, 2022)

Environmental Protection Agency

87 FR 79176: Proposed Rule, Comments Close 2/27/23: “Adoption and Submittal of State Plans for Designated Facilities: Implementing Regulations Under Clean Air Act Section 111(d)” (December 23, 2022)

87 FR 77596: Notice: “n-Methylpyrrolidone (NMP); Revision to Toxic Substances Control Act (TSCA) Risk Determination; Notice of Availability” (December 19, 2022)

Federal Energy Regulatory Commission

87 FR 78670: Notice, Comments Close 3/30/22: “Oil Pipeline Affiliate Committed Service” (December 22, 2022)

Other Agencies

87 FR 79072: Proposed Rule, Comments Close 1/23/23: “Takes of Marine Mammals Incidental to Specified Activities; Taking Marine Mammals Incidental to the Revolution Wind Offshore Wind Farm Project Offshore Rhode Island” (December 23, 2022)

87 FR 78652: Notice: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Geophysical Surveys Related to Oil and Gas Activities in the Gulf of Mexico” (December 22, 2022)

87 FR 78650: Notice: “National Conference on Weights and Measures 2023 Interim Meeting” (December 22, 2022)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.9678: “To ensure 100 percent renewable electricity, zero emission vehicles, and regenerative agriculture by 2030 to address global warming caused by human activity.” Referred to the Committee on Agriculture, and in addition to the Committees on Ways and Means, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (December 22, 2022)

H.R. 9641: “To amend the Outer Continental Shelf Lands Act to support the responsible development of offshore renewable energy projects, establish the Offshore Power Administration, and for other purposes.” Referred to the Committee on Natural Resources, and in addition to the Committees on Energy and Commerce, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (December 21, 2022)

H.R. 9607: “To prohibit States, local governments, or State regulatory authorities from prohibiting a natural gas consumer from connecting or reconnecting to a gas utility for natural gas service, and for other purposes.” Referred to the House Committee on Energy and Commerce. (December 16, 2022)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE

S.3428: “A bill to require the Secretary of Energy to establish a Nuclear Fuel Security Program, expand the American Assured Fuel Supply Program, and submit a report on a civil nuclear credit program, and for other purposes.” S.Amdt.6628 Amendment SA 6628 agreed to in Senate by Unanimous Consent. (December 22, 2022)

 

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