June 24, 2024

Shale Law Weekly Review—Week of June 24, 2024

GHG Emissions: Department of Energy Publishes Guidance for Zero Emissions Buildings ⚡
On June 6, 2024, the U.S. Department of Energy (DOE) published a document titled “National Definition of a Zero Emissions Building.” The guidance document provides a standardized definition by identifying the minimum criteria for a building to be considered zero-emissions as the following: “(1) energy efficient, (2) free of on-site emissions from energy use, and (3) powered solely from clean energy.” In its announcement, DOE states that this standardized definition “will help advance next-generation clean energy solutions, drive innovation, and tackle the climate crisis, while supporting workforce development.” DOE specifies that the definition is not mandatory but rather was developed for use by private and public entities to help move towards more zero-emissions buildings.

Pipelines: Federal Energy Regulatory Commission Approves Operation of the Mountain Valley Pipeline
On June 11, 2024, the Office of Energy Projects at the Federal Energy Regulatory Commission approved the operation of the Mountain Valley Pipeline (MVP) Project in West Virginia and Virginia. The MVP is an approximately 303-mile-long pipeline carrying natural gas that is expected to carry a maximum of two billion cub feet per day to markets in the mid and southern regions of the United States.  As of June 14, 2024, the MVP is now commercially operating and allowing natural gas to flow in the 303-mile-long path.

Community Impacts: Department of the Interior Announces $130 Million for Abandoned Mine Program
On June 3, 2024, the Department of the Interior announced that $130 million in funding would become available to the Abandoned Mine Land Economic Revitalization (AMLER) Program. AMLER’s funds will go towards providing economic assistance to territories whose local economies have been impacted by the reduction in reliance on coal. Six states in the Appalachia region, Kentucky, Pennsylvania, Virginia, Alabama, Ohio, and West Virginia, and three Native American tribes with identified abandoned mine land, the Crow Tribe, Hopi Tribe, and Navajo Nation, are to receive portions of the overall $130 million fund.

GHG Emissions: Department of Transportation Issues New Fuel Economy Standards
On June 7, 2024, the National Highway Traffic Safety Administration, through the Department of Transportation (DOT), issued a final rule for fuel economy standards for all passenger car model years 2027-2031, and new fuel efficiency standards for heavy trucks and vans model years 2030-2035. These new standards increase fuel economy anywhere from 2% per year for passenger cars, up to 10% per year for heavy-duty pickup trucks. According to DOT, the standards will also save about 70 billion gallons of gas, substantially decreasing the amount of carbon dioxide emissions released by vehicles. While this rule may cause consumer prices to go up, DOT estimates that those prices will be offset by dollars saved via more efficient fuel consumption.

GHG Emissions: American Petroleum Institute and Others File Suit Against EPA Over Emission Standards
On June 13, 2024, the American Petroleum Institute (API), joined by the National Corn Growers Association, and numerous automotive groups, filed suit against the Environmental Protection Agency (EPA) in the United States Court of Appeals for the District of Columbia. API, et al. v. EPA, et al., Case No. 24-1196.  The complaint alleges that a final rule published by the EPA, titled “Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles” is arbitrary, capricious, and an abuse of discretion. The challenged rule established stricter limits for greenhouse gases and pollutants emitted from vehicles produced from 2027 through 2032, affecting vehicle manufacturers, commercial importers and alternate fuel converters. The lawsuit seeks to vacate the EPA’s final action.

LNG Exports: The Federal Energy Regulatory Commission Orders Venture Global LNG to Provide Non-Public Documents to Customers 
On June 10, 2024, the Federal Energy Regulatory Commission ordered Venture Global LNG to provide interested customers with non-public documents relating to the operation of the Calcasieu Pass LNG Terminal. On February 15, 2024, Venture Global requested an extension of time for the facilities to be placed in service. On February 22, 2024, the notice of request was issued and allowed for fifteen days to comment. When customers tried to file comments, they alerted Venture Global that they could not comment properly without having access to private documents. The customers then requested the documents, as well as executed protection agreements. Venture Global responded that it would not provide the documents unless specifically ordered to by the Commission. The Commission later ordered that Venture Global must provide the documents to the customers under § 388.112 of the Commission’s regulations, which allows those filing documents with the Commission to request documents that the filer claims is exempt from the Freedom of Information Act. The Commission ordered that an administrative judge compose a hearing to establish a procedural schedule and that, if the parties are unable to reach an agreement regarding a protective order, the judge will issue one within 45 days of the order date. Additionally, the Commission ordered that, within 5 days of receiving executed protective agreements, Venture Global must provide requested documents to interested customers that align with the protective agreement’s terms under § 388.112(b)(2) of the Commission’s regulations and the customers may add comments within 15 days of receiving the documents.

 

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CENTER PROGRAMS & RESOURCES

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Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks 

US LNG exports rise in May as Freeport LNG returns to production (Natural Gas World)

Simson Urges EU States to Agree on Timeline for End of Russian Gas (Rigzone)

LNG Investments to Jump Over 50 Percent in 2029: Goldman Sachs (Rigzone)

BLM To Hold Wyoming’s Smallest Oil And Gas Lease Auction In 15 Years (Cowboy State Daily)

Vermont becomes first state to require oil companies to pay for climate change damage (The Hill)

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

Oil & Gas Law & Policy Resources:

Chin, Oil Holds Advance as Risk-On Mood Eclipses US Stockpile Build (June 18, 2024)

McFarland, The Osage Nation vs. the Wind Farm (June 19, 2024)

Chin, Vitol Is Said Among Bidders for Venezuela-Owned Citgo’s Parent (June 18, 2024)

Sartain, Wind Farm Ejected from Osage Land (June 19, 2024)

Bloomberg, July Fourth Travel Seen Hitting Record in Boost for Oil Bulls (June 20, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

DOE Announces $900 Million to Accelerate the Deployment of Next-Generation Light-Water Small Modular Reactors (June 17, 2024)

DOE Leads Effort to Improve the Cybersecurity of Energy Supply Chains (June 18, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA fines Newburyport, Mass. company for alleged violations of the Clean Air Act and Emergency Planning and Community Right-to-Know Act (June 17, 2024)

FEDERAL EXECUTIVE AGENCIES (Federal Register June 1, 2024 – June 7, 2024)

Environmental Protection Agency

89 FR 51234 Rule: “Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles-Phase 3; Correction” (June 17, 2024)

89 FR 51829 Rule: “Clean Air Act Reclassification of the San Antonio, Dallas-Fort Worth, and Houston-Galveston-Brazoria Ozone Nonattainment Areas; TX” (June 20, 2024)

Energy Department

89 FR 51880: Notice: “Notice of Request for Information Related to the Department of Energy’s Environmental Justice Strategic Plan” (June 18, 2024)

89 FR 51512 Notice: “Colorado Interstate Gas Company, LLC; Notice of Schedule for the Preparation of an Environmental Assessment for the Totem Enhanced Deliverability Project” (June 18, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 24 – June 15, 2024)

Department of Environmental Protection

54 Pa.B. 3494 “Proposed State Implementation Plan Revision for a Noninterference Demonstration under Section 110(l) of The Clean Air Act to Support Decommissioning Stage II Gasoline Vapor Recovery Requirements and Add Requirements for Gasoline Dispensing Facilities; Public Hearing” (June 15, 2024)

54 Pa.B. 3493 “Issuance of Revised General Plan Approval and/or General Operating Permit for Coal-Mine Methane Enclosed Flares (BAQ-GPA/GP-21)” (June 15, 2024)

Pennsylvania Public Utility Commission

54 Pa.B. 3504 “Natural Gas Service” (June 15, 2024)

 

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