February 15, 2023
Shale Law Weekly Review—Week of February 13, 2023
GHG Emissions: DOE Announces $131 Million in Funding for R&D of Wide-scale CO2 Reduction Projects ⚡
On January 30, 2023, the Department of Energy (DOE) announced that $131 million will be invested to help in the research and development of 33 projects aimed at reducing carbon dioxide (CO2) pollution. The projects will reduce CO2 pollution through “carbon management technologies,” which will aid in the capture of these pollutants when they are generated through the activities of power plants and industrial facilities. The technology will also be used to capture CO2 from the atmosphere so that it can be stored at designated CO2 storage sites. Of this funding, $93 million will go towards researching the feasibility of CO2 storage and the remainder will go towards the development of capture technologies.
Municipal Regulation: City of Eugene, Oregon Passes Ordinance Prohibiting Fossil Fuel Infrastructure in New Low-rise Residential Buildings
On February 7, 2023, the City of Eugene, Oregon signed into law an ordinance that prohibits fossil fuel infrastructure from being newly constructed in all low-rise residential buildings. The ordinance, which passed 5-3, defines fossil fuel infrastructure to include piping that connects a source of natural gas, fuel oil, or any other fossil fuel to a fossil-fuel burning appliance. Low-rise residential buildings are defined to include those with three or less stories and at least one permanent residency dwelling unit. The prohibition requires the city to deny all permit applications that would conflict with its requirements.
State Regulation: Gov. Josh Shapiro Signs EO to Make Permitting, Licensing, and Certifying More Efficient
On January 31, 2023, Pennsylvania Governor Shapiro signed Executive Order 2023-07, which aims to eliminate the hurdles faced by the Commonwealth with respect to “economic development, professional opportunities, and public health and safety.” According to the EO, this goal will be supported by increasing the efficiency by which permits, licenses, and certifications are issued. As per the EO, all Executive Agency’s involved in the issuance of permits, licenses, or certificates must compile and submit a list of the types of permits, licenses, and certifications that they issue to the Governor’s Office within 90 days of its effective date. After receiving and reviewing this information, the Office will recommend to each agency an appropriate timeframe for processing applications for these permits, licenses, and certifications, as well as other information relevant to more expeditious issuance.
Severance Tax: 6th Circuit Rules that Kentucky Coal Law Violates Commerce Clause
On February 3, 2023, the 6th Circuit Court of Appeals ruled that Senate Bill 257 has had a discriminatory effect on interstate commerce through a “pretend discount” that indirectly gives coal from Kentucky a comparative price advantage over coal from other states. Foresight Coal Sales, LLC v. Chandler, No. 21-6069. According to the opinion, in the state of Kentucky, there is a severance tax imposed on extracted coal, and utility companies are directed to buy coal at the most competitive price. Since being signed into law on March 25, 2021, SB 257 has directed Kentucky utility companies to subtract severance tax from the bill price before assessing the price of coal from all states. In doing so, the Kentucky legislature has made coal from states with severance taxes appear cheaper than it actually is, giving these states an unfair market advantage over states with low or no severance tax. As explained by the 6th Circuit, this direction has had a discriminatory effect on interstate commerce and therefore violated the Commerce Clause.
Oil & Gas Law & Policy Resources:
Bloomberg, Oil’s New Map: How India Turns Russia Crude Into the West’s Fuel (February 5, 2023)
Sartain, LOIA Does Not Apply to a Salt Mine Operation (February 6, 2023)
Eisenson, COMMENTS ON THE DRAFT FIFTH NATIONAL CLIMATE ASSESSMENT: SABIN CENTER URGES DEEPER DISCUSSION OF CLIMATE RESILIENCE PLANNING, BARRIERS TO CLIMATE ACTION BY LOCAL GOVERNMENTS, AND OTHER KEY TOPICS (February 7, 2023)
Bloomberg, Here Are the Key Takeaways From Biden’s State of the Union Speech (Febraury 8, 2023)
Energy Connects, New oil and gas find by North Sea Troll field (February 9, 2023)
Bloomberg, Oil Climbs as Russia Follows Through on Threat to Cut Production (February 10, 2023)
Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks February 4– February 10, 2023:
Carbon removal project planned for Kevin McCarthy’s district (E&E News)
Minnesota Has Passed a Landmark Clean Energy Law. Which State Is Next? (Inside Climate News)
Eugene becomes first city in Oregon to restrict natural gas in new residential construction (Oregon Public Broadcasting)
EU considers push for fossil fuel phasedown ahead of COP28 –draft (Reuters)
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 $74 Million to Advance Enhanced Geothermal Systems (February 8, 2023)
DOE Launches Foundation for Energy Security and Innovation (February 9, 2023)
U.S. Department of Energy Announces $30 Million for Materials and Manufacturing to Lower Costs of Large Wind Turbines (February 10, 2023)
DOE Proposes New Standards for Residential Appliances to Save Americans Billions in Annual Energy and Water Bill (February 10, 2023)
U.S. ENVIRONMENTAL PROTECTION AGENCY
EPA Seeks Input on Inflation Reduction Act Environmental and Climate Justice Program (February 9, 2023)
EPA Conditionally Approves Plans to Remove Dangerous Chemicals from Refinery on St. Croix (February 9, 2023)
EPA Announces New Bipartisan Infrastructure Law (BIL) Superfund Cleanup Projects in Pennsylvania (February 10, 2023)
FEDERAL EXECUTIVE AGENCIES (Federal Register February 4–February 10, 2023):
Environmental Protection Agency
88 FR 8371: Rule: “Approval and Promulgation of Implementation Plans; New York; Gasoline Dispensing, Stage I, Stage II and Transport Vehicles” (February 9, 2023)
Susquehanna River Basin Commission
88 FR 8510: Notice: “Projects Approved for Consumptive Uses of Water” (February 9, 2023)
Safety and Environmental Enforcement Bureau
88 FR 8310: Notice, Comments Close 4/10/23: “Agency Information Collection Activities; Decommissioning Activities” (February 8, 2023)
Other Agencies
88 FR 8729: Rule: “Normal and Transport Category Rotorcraft Certification” (February 10, 2023)
88 FR 8996: Proposed Rule, Comments Close 3/13/23: “Takes of Marine Mammals Incidental to Specified Activities; Taking Marine Mammals Incidental to the Sunrise Wind Offshore Wind Farm Project Offshore New York” (February 10, 2023)
88 FR 8400: Notice, Comments Close 4/10/23: “Information Collection; Oil and Gas Resources” (February 9, 2023)
88 FR 8404: Notice: “Foreign-Trade Zone (FTZ) 82-Mobile, Alabama; Authorization of Production Activity; Aker Solutions, Inc. (Subsea Oil and Gas Systems), Mobile, Alabama” (February 9, 2023)
88 FR 8462: Notice: “Proposed Exemptions From Certain Prohibited Transaction Restrictions” (February 9, 2023)
88 FR 8146: Proposed Rule, Comments Close 3/9/23: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Testing and Training Operations in the Eglin Gulf Test and Training Range” (February 7, 2023)
88 FR 7756: Notice: “Notice of Availability of the Final Supplemental Environmental Impact Statement for the Willow Master Development Plan, Alaska” (February 6, 2023)
U.S. HOUSE ENERGY AND COMMERCE COMMITTEE
H.R.928 “To repeal the High-Efficiency Electric Home Rebate Program and transfer funds under such program to the Edward Byrne Memorial Justice Assistance Grant Program.” Referred to the Committee on Energy and Commerce, and in addition to the Committee on the Judiciary, 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. (February 9, 2023)
H.R.912 “To require the Comptroller General of the United States to conduct an analysis of the costs of converting light-duty vehicles in the Federal fleet to electric vehicles, and for other purposes.” Referred to the Committee on Energy and Commerce, and in addition to the Committee on the Judiciary, 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. (February 9, 2023)
H.R.893 “To amend the Low-Income Home Energy Assistance Act of 1981 to increase the availability of heating and cooling assistance, and for other purposes.” Referred to the Committee on Energy and Commerce, and in addition to the Committee on the Judiciary, 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. (February 9, 2023)
H.R.891 “To direct the Secretary of Energy to carry out a grant program to improve the energy resilience, energy democracy, and security of communities, prioritizing environmental justice communities, and for other purposes.” Referred to the Committee on Energy and Commerce, and in addition to the Committee on the Judiciary, 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. (February 9, 2023)
H.R.829 “To provide for Federal and State agency coordination in the approval of certain authorizations under the Natural Gas Act, and for other purposes.” Referred to the House Committee on Energy and Commerce. (February 6, 2023)
U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE
S.373 “A bill to modify the disposition of certain outer Continental Shelf revenues and to open Federal financial sharing to heighten opportunities for renewable energy, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (February 9, 2023)
S.337 “A bill to amend the Energy Policy and Conservation Act to require that the Strategic Petroleum Reserve contain petroleum products produced or refined in the United States, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (February 9, 2023)
S.319 “A bill to prohibit the President from issuing moratoria on leasing and permitting energy and minerals on certain Federal land.” Read twice and referred to the Committee on Energy and Natural Resources. (February 9, 2023)
S.Res.44 “An original resolution authorizing expenditures by the Committee on Energy and Natural Resources.” Referred to the Committee on Rules and Administration. (February 9, 2023)
H.R.302 “To direct the Secretary of Energy to provide financial assistance to graduate students and postdoctoral researchers pursuing certain courses of study relating to cybersecurity and energy infrastructure, and for other purposes.” Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources. (February 7, 2023)
S.283 “A bill to require the Secretary of Energy to stipulate, as a condition on the sale at auction of any crude oil from the Strategic Petroleum Reserve, that the crude oil not be exported to certain countries, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (February 7, 2023)
S.279 “A bill to establish a moratorium on energy development in certain areas of the Gulf of Mexico, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (February 7, 2023)
STATE ACTIONS—EXECUTIVE & LEGISLATIVE
PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 53, No. 6 February 11, 2023)
DEPARTMENT OF ENVIRONMENTAL PROTECTION
53 Pa.B. 907 Notice: “Availability of Grants through the Abandoned Mine Land and Acid Mine Drainage Grant Program”
Written by:
Kole Zellers, Research Assistant
Kendal Ashman, Research Assistant
Jackie Schweichler, Staff Attorney
