January 26, 2025

Shale Law Weekly Review—Week of January 27, 2025

Climate Change: New York Court Dismisses Climate Change Suit Against ExxonMobil, Shell, and BP ⚡
On January 15, 2025, the Supreme Court of the State of New York in the County of New York dismissed a suit brought by the City of New York (“the City”) against ExxonMobil, Shell, and BP. The City of New York v. ExxonMobil Corp., et al, Doc. No. 232 (Supreme Court of New York, County of New York, Commercial Division Part 45, 2025). The City brought two causes of action against the three defendant companies: “(1) violation of the [City’s Consumer Protection Law (CPL)] by misrepresenting the purported environmental benefit of their fossil fuels, and failing to disclose the attendant climate change risks of these products, and (2) violation of the CPL by engaging in false and misleading greenwashing campaigns.” In the court’s decision to dismiss the action, the court explained that the action was not dismissed for lack of person jurisdiction, but rather, the court dismissed both of the City’s claims for failure to state a claim. Count I was dismissed because the court found that reasonable consumers would not be misled by the statements made by the defendant companies. Count II was dismissed because “the statutory language of the CPL coupled with the dearth of New York legal authority to support such interpretation makes Plaintiff’s corporate greenwashing cause of action unviable.”

Infrastructure: Maryland Begins Work on Port Electrification Project
On January 13, 2025, the Maryland Port Administration (MPA) stated that it was beginning preliminary work for the Port of Baltimore electrification project to reduce the Port’s greenhouse gas emissions. The investment was previously announced on October 30, 2024 as an Inflation Reduction Act funded initiative through the U.S. Environmental Protection Agency’s Clean Ports Program. According to the project description, the $147 million in funding will be used to replace outdated diesel-powered equipment with new zero-emission equipment and other modernized infrastructure. Additionally, the funding will allow MPA to upgrade the Port’s electrical grid in an effort to reduce carbon dioxide emissions by an estimated 35%, as compared to 2020 levels. The announcement stated that this project is designed to create more clean jobs, in addition to the 290,000 jobs the Port provides the community both directly and indirectly. More information about the project can be found in the MPA’s project proposal.

State Regulation: State of Maryland Sued Over Natural Gas Regulation
On January 13, 2025, developers, citizen groups and a local utility company filed suit against the state of Maryland over their new Building Energy Performance Standards (BEPS) (Maryland Building Industry Association, Inc. et al v. McIlwain, No. 8:25-cv-00113). These standards were promulgated by Maryland Department of the Environment (MDOE) in an effort to reduce greenhouse gas emissions by promoting electrification and phasing out natural gas usage in larger residential and commercial buildings. The new standards, which took effect December 23, 2024, require owners of some buildings exceeding 35,000 square feet to begin reporting their emissions data by September 2025, then act to reduce their emissions 20% by 2030 so as to reach zero net emissions by 2040. Noncompliance with these requirements will result in fines. The plaintiffs’ complaint, filed in the U.S. District Court for the District of Maryland, argues that this regulation is preempted by the federal Energy Policy Conservation Act, which places regulating energy use and efficiency of gas appliances under the jurisdiction of the U.S. Department of Energy, prohibiting local and state governments from regulating the same. To bolster this claim, the plaintiffs reference the U.S. Court of Appeals for the Ninth Circuit’s 2023 decision to overturn a ban on gas appliances in Berkeley, CA on preemption grounds using the same statute (CRA v. City of Berkeley, No. 0:2021cv16278). The plaintiffs claim that these standards are inherently inconsistent with the public interest as they will restrict consumer choice and exacerbate the current housing shortage in the Maryland area by hampering long-term planning and development.

More information about BEPS can be found here. For background on the Berkeley, CA case, see SLWR April 24, 2023 “Municipal Regulation: Ninth Circuit Rules Berkeley’s Natural Gas Piping Prohibition Preempted by Federal Law,” and SLWR January 29, 2024 “Municipal Regulation: Ninth Circuit Rules Against a Prohibition on the Installation of Natural Gas Piping Issued by the City of Berkley.”

GHG Emissions: Supreme Court Declines Petition to Decide on Federal Preemption Claims in a Case Involving State Tort Law for Misrepresentations About Emissions Claims
On Monday January 13, 2025, the Supreme Court of the U.S. (SCOTUS) declined a petition for a writ of certiorari filed by Royal Dutch Shell plc, Shell Oil Company, and Shell Oil Products Company LLC (collectively “Shell”) seeking a review of a decision by the Supreme Court of Hawaii. Shell PLC, fka Royal Dutch Shell PLC, et al., Petitioners v. City and County of Honolulu, Hawaii, et al. No. 23-952. The City of Honolulu initially brought this claim against Shell, and other oil and gas companies, for state tort claims of intentionally misrepresenting the impacts of their commercial practices on climate change. Shell’s arguments for federal preemption revolved around the Clean Air Act’s federal emissions standards. This argument draws heavily from other cases where states have sought damages from oil and gas companies for the damage caused by emissions. On interlocutory appeal, the Supreme Court of Hawaii held that federal law did not preempt the state tort claims because the claims only sought damages related to Shell’s deceptive practices, as opposed to seeking damages for the effects of climate change in general. Shell asked SCOTUS to decide whether claims by states or municipalities against oil and gas companies for damages caused by emissions were subject to state law or preempted by federal law. Additionally, Shell asked SCOTUS to decide whether the Clean Air Act preempts state law in these types of emissions claims. SCOTUS invited the Solicitor General to submit a brief before deciding whether to take the case. This amicus brief was received on December 10, 2024, where the Solicitor General advised SCTOUS to decline the petition.

International Development: International e-NG Coalition Expands
On January 7, 2025, the e-NG Coalition announced that nine more companies joined the alliance. The e-NG Coalition was first launched in March 2024 when eight large international companies entered into an MOU to create a global coalition of companies dedicated to the development and adoption of “electric natural gas,” (or “e-NG”) a synthetic gas that is made by combining green hydrogen with recycled CO₂ through a methanation process that converts the two chemicals into methane. e-NG is “chemically indistinguishable from conventional natural gas.” The original members of the e-NG coalition are: Engie, Mitsubishi Corporation, Osaka Gas, Sempra Infrastructure, TES, Tokyo Gas, Toho Gas, and TotalEnergies. The new members of the Coalition are: IHI Corporation, INPEX Corporation, Kawasaki Kisen Kaisha, Ltd (“K” LINE), Korea Gas Corporation (Kogas), SAMSUNG E&A, Shell, Standard Carbon, StormFisher Hydrogen and Terraform Industries. The e-NG Coalition states that its goal is to “promote e-NG, build a global market with aligned emissions accounting and certification standards, and bolster cooperation between all stakeholders along the e-NG value chain.”

 

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CENTER PROGRAMS & RESOURCES

Mid-Atlantic Fruit & Vegetable Convention: Center Staff Present on Labor, Tax, & Agritourism: Center Staff Attorneys Brook Duer, Jackie Schweichler, and Audry Thompson will present on various topics at the Mid-Atlantic Fruit & Vegetable Convention which will be held in Hershey, Pennsylvania.

Quarterly Dairy Legal Webinar series – The Penn State Center for Agricultural and Shale Law will conduct the latest installment in its Quarterly Dairy Legal Webinar series.  Each quarter’s free one-hour webinar covers the legal and regulatory developments in the U.S. dairy industry from the preceding quarter and includes an in-depth look at a single focus topic of law, regulation, or government policy of interest to dairy professionals of all kinds.

Understanding Agricultural Law Series. A free monthly Zoom webinar series for agricultural and rural business advisors. One hour of substantive CLE credit available for Pennsylvania-licensed attorneys at no charge. All events on Fridays, noon–1 pm (ET). Upcoming:

Follow us on Twitter @AgShaleLaw to see the latest with our #ShaleLaw HotLinks 

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

Bloomberg, Oil Holds Drop as Trump’s Tariff Threats Raise Trade War Fears (January 22, 2025)

Jackson, A Duty on Public Bodies to Prioritize Climate Action? Coolglass Windfarm Limited v. An Bord Pleanala (January 24, 2025)

Mallen, Hug, Johnson, Reiter, Das, Declaring A National Energy Emergency (Trump EO Tracker) (January 24, 2025)

Turner, Trump 2.0, Day One: Considerations for Cities and Community Partners (January 24, 2025)

Bloomberg, ADNOC achieves industry-leading carbon intensity at Shah Oil Field enabled by AI (January 23, 2025)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

U.S. Department of Energy Reverses Biden LNG Pause, Restores Trump Energy Dominance Agenda (January 21, 2025)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

FEDERAL EXECUTIVE AGENCIES (Federal Register November 29- December 6, 2024)

Environmental Protection Agency

90 FR 6823 Rule: “Approval and Promulgation of Implementation Plans; State of California; Coachella Valley; Extreme Attainment Plan for 1997 8-Hour Ozone Standards” (January 21, 2025)

90 FR 7135 Notice: “Notice of the Final Biofuels and the Environment: Third Triennial Report to Congress” (January 21, 2025)

Federal Energy Regulatory Commission

90 FR 7691 Notice: “FERC Form 580, Interrogatory on Fuel and Energy, Purchase Practices; Notice of Request for Partial Waiver” (January 22, 2025)

90 FR 8209 Notice: “Northern Natural Gas Company; Notice of Request Under Blanket Authorization and Establishing Intervention and Protest Deadline” (January 27, 2025)

Land Management Bureau

90 FR 4779 Notice: “Intent To Prepare an Environmental Impact Statement for the Oil and Gas Leasing Decisions in Seven States From February 2015 to December 2020” (January 16, 2025)

Pipeline and Hazardous Materials Safety Administration

90 FR 7243 Notice: “Pipeline Safety: Project-Specific Waiver of the Build America, Buy America Act Requirements for Certain Products Used by Philadelphia Gas Works Under the Natural Gas Distribution Infrastructure Safety and Modernization Grant Program.” (January 21, 2025)

National Oceanic and Atmospheric Administration: 90 FR 7102 Notice: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Geophysical Surveys Related to Oil and Gas Activities in the Gulf of Mexico” (January 21, 2025)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.J.Res.26 Resolution: “Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Environmental Protection Agency relating to “Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles-Phase 3”..” (January 22, 2025 – Referred)

H.Res.57 Resolution: “Recognizing the benefits of natural gas to the United States economy and environment, and recognizing natural gas as an affordable and “green” energy.” (January 22, 2025 – Referred)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 55, No. 4 – January 25, 2025)

 

Written by:
Jasmine Gunning, Research Assistant
Dillon Lightfoot, Research Assistant
Riley Amdor, Research Assistant
Caden Dean-Sauter, Research Assistant
Victoria Dutterer, Research Assistant
Jose Rojas, Research Assistant
Jackie Schweichler, Staff Attorney