March 18, 2024

Shale Law Weekly Review—Week of March 18, 2024

GHG Emissions: SEC Adopts New Climate Risk and Emissions Disclosure Rule ⚡
On March 6, 2024, the Securities and Exchange Commission (SEC) adopted a new rule which will require publicly traded companies to disclose to potential investors their climate risks and levels of greenhouse gas emissions. These companies must report all climate risks that have had or will have a material impact on their business in some way, including financial condition, operations, and outlook. Companies will also be required to identify any mitigation or adaptation activities they have adopted to counteract the climate risks, and what the cost of those activities are. Where companies have climate related goals, they should explain the goal, what processes will be used to achieve said goal, and what the costs of those processes will be. Expenditures and losses from severe weather events, carbon credits, and renewable energy credits must also be released. While the proposed rule mandated disclosure of all emissions, including supply chain and product usage, this final rule only requires disclosure of material direct emissions and energy production emissions. The SEC Chair said in a statement that this rule will benefit both investors and issuers by providing “investors with consistent, comparable, decision-useful information, and issuers with clear reporting requirements.” Multiple lawsuits have already been filed challenging the rule.

GHG Emissions: New EPA Carbon Standards Will Not Impact Existing Gas Plants
On Thursday, February 29, 2024, the Environmental Protection Agency (EPA) announced that the proposed standards to cut climate pollution from coal and gas power plants will no longer include existing plants. Rather, these new final rules, which the EPA intends to implement later this spring, will apply only to newly built plants and “the entire fleet of natural gas-fired turbines.” The stated purpose for the new standards is to reduce emissions, particularly “climate, toxic, and criteria air pollut[ants]” to the extent technologically possible without overburdening grid operators. These efforts, according to the announcement, “will help address local air quality impacts to better protect vulnerable frontline communities.”

Wastewater Treatment/Disposal: EPA Environmental Appeals Board Denies Motion to Dismiss in Challenge to a Penneco UIC Permit
On February 28, 2024, the Environmental Protection Agency (EPA) Environmental Appeals Board (EAB) issued an order denying a motion to dismiss filed by Penneco Environmental Solutions, LLC (Penneco). In re Penneco Environmental Solutions, LLC, UIC Appeal No. 23-01. The motion was filed in response to petitioners, Protect PT and Three Rivers Waterkeeper, who challenged the UIC Class II-D permit issued by EPA Region 3 to Penneco. Petitioners allege that the issuance of the disposal injection well permit was done in violation of article 1, section 27 of the Pennsylvania Constitution. Region 3 moved to dismiss, arguing that petitioners failed to challenge the permit within the 30-day window provided. The Court noted that Region 3 failed to provide petitioners with adequate notice of the issuance of the permit pursuant to 40 C.F.R. § 124.15(a). Therefore, petitioners challenge was done in sufficient time. Further, the Court ordered Region 3 and Penneco to formally respond to the petition.

 

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CENTER PROGRAMS & RESOURCES

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.

On March 15, 2024, from 2:00–4:00 pm (ET), Penn State Extension will present “Exploring Succession and Estate Planning: A Panel Discussion.” At 2:25pm, Brook Duer will present “Pros and Cons of Various Transition Methods/Tools” as part of the panel.

On Tuesday, April 16, 2024, from 12 noon–1:00 ET, 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, as well as including an in-depth look at a single focus topic of law, regulation, or government policy of interest to dairy professionals of all kinds.

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks 

EPA Plans to Exclude Existing Gas Plants in Its Finalized Power Plant Rule (Institute for Energy Research)

EQT Boss Says Mountain Valley Pipeline Will Enable AI Power Boom (Bloomberg)

EIA: US crude inventories down 1.5 million bbl (Oil & Gas Journal)

United States produces more crude oil than any country, ever (EIA)

A New EDF-Harvard Satellite Will Monitor Methane Emissions From Oil and Gas Production Worldwide  (Inside Climate News)

US Pause on New LNG Export Licenses May Last Months Under Review (Bloomberg)

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

Energy Connects, Aramco records second highest profit ever with $121.3 billion net income in 2023 (March 10, 2024)

Berchem, et al., Making Waves: The SEC Publishes Final Climate Disclosure Rules (March 11, 2024)

Field & Hanawalt, The SEC’s Final Climate Disclosure Rule: Key Requirements, and the Materiality Threshold (March 11, 2024)

Sartain, More Guidance on Worker Classification for the Energy Industry (March 14, 2024)

Lockman & Shumway, State “Climate Superfund” Bills: What You Need to Know (March 14, 2024)

Bloomberg, Shell Weakens 2030 Emissions-Cut Target in Move Away From Clean Power (March 14, 2024)

Energy Connects, ADNOC Drilling receives shareholder approval for $358 million final dividend for 2023 (March 14, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

Statement by Secretary Granholm on the President’s Fiscal Year 2025 Budget (March 11, 2024)

Biden-Harris Administration Releases First-Ever National Strategy to Accelerate Deployment of Zero-Emission Infrastructure for Freight Trucks (March 12, 2024)

Biden-Harris Administration Announces $750 Million to Support America’s Growing Hydrogen Industry as Part of Investing in America Agenda (March 13, 2024)

Biden-Harris Administration Announces $5 Million to Strengthen Domestic Manufacturing Capabilities and Support Small-and Medium-Sized Manufacturers (March 14, 2024)

DOE Releases Report Outlining How America Can Sustainably Produce More Than One Billion Tons of Biomass Per Year (March 15, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA Announces Most Energy-Efficient Manufacturing Plants of 2023 (March 15, 2024)

EPA announces final rule to slash toxic emissions of ethylene oxide and reduce cancer risk (March 14, 2024)

EPA finalizes commonsense standards to limit air toxic pollution at gasoline distribution facilities (March 14, 2024)

45 states, large metro areas submit climate action plans under President Biden’s Inflation Reduction Act (March 11, 2024)

FEDERAL EXECUTIVE AGENCIES (Federal Register March 9 – March 15, 2024)

Environmental Protection Agency

89 FR 17622: Rule: “Accidental Release Prevention Requirements: Risk Management Programs Under the Clean Air Act; Safer Communities by Chemical Accident Prevention” (March 11, 2024)

89 FR 16820: Rule: “Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review” (March 8, 2024)

Energy Department

89 FR 19026: Rule, Comments Close 7/3/24: “Energy Conservation Program: Energy Conservation Standards for Residential Clothes Washers” (March 15, 2024)

89 FR 18629: Notice: “International Energy Agency Meetings” (March 14, 2024)

89 FR 18164: Rule, Comments Close 7/1/24: “Energy Conservation Program: Energy Conservation Standards for Consumer Clothes Dryers” (March 12, 2024)

89 FR 18164: Rule, Comments Close 7/1/24: “Energy Conservation Program: Energy Conservation Standards for Consumer Clothes Dryers” (March 12, 2024)

Land Management Bureau

89 FR 18963: Notice: “Notice of Availability of the Draft Resource Management Plan Amendment and Environmental Impact Statement for Greater Sage-Grouse Rangewide Planning” (March 15, 2024)

Susquehanna River Basin Commission

89 FR 17890: Notice: “Projects Approved for Consumptive Uses of Water” (March 12, 2024)

National Highway Traffic Safety Administration

89 FR 18808: Rule: “Improvements for Heavy-Duty Engine and Vehicle Fuel Efficiency Test Procedures, and Other Technical Amendments” (March 15, 2024)

Other Agencies

89 FR 18899: Notice: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Geophysical Surveys Related to Oil and Gas Activities in the Gulf of Mexico” (March 15, 2024)

89 FR 18939: Notice, Comments Close 4/15/24: “Petition for Prior Approval of XCL Resources Holdings, LLC’s Proposed Acquisition of Altamont Energy, LLC” (March 15, 2024)

89 FR 18540: Rule: “Oil and Gas and Sulfur Operations on the Outer Continental Shelf-Civil Penalty Inflation Adjustment” (March 14, 2024)

89 FR 17876: Notice, Comments Close 4/11/24: “Agency Information Collection Activities; Collection of Monies Due to the Federal Government; and Processing Refund Requests Related to Overpayments Made to ONRR” (March 12, 2024)

89 FR 17419: Notice: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Geophysical Surveys Related to Oil and Gas Activities in the Gulf of Mexico” (March 11, 2024)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.7673 “To prohibit the Secretary of Energy from prescribing or enforcing energy conservation standards for clothes washers that are not cost-effective or technologically feasible, and for other purposes.” Referred to the House Committee on Energy and Commerce. (March 13, 2024)

H.R.7645 “To prohibit the Secretary of Energy from prescribing or enforcing energy conservation standards for clothes dryers that are not cost-effective or technologically feasible, and for other purposes.” Referred to the House Committee on Energy and Commerce. (March 13, 2024)

H.R.7637 “To prohibit the Secretary of Energy from prescribing or enforcing energy conservation standards for refrigerators, refrigerator-freezers, and freezers that are not cost-effective or technologically feasible, and for other purposes.” Referred to the House Committee on Energy and Commerce. (March 12, 2024)

H.R.7626 “To prohibit the Secretary of Energy from prescribing or enforcing energy conservation standards for room air conditioners that are not cost-effective or technologically feasible, and for other purposes.” Referred to the House Committee on Energy and Commerce. (March 12, 2024)

H.R.7624 “To require the Federal Energy Regulatory Commission to establish a shared savings incentive to return a portion of the savings attributable to an investment in grid-enhancing technology to the developer of that grid-enhancing technology, and for other purposes.” Referred to the House Committee on Energy and Commerce. (March 12, 2024)

H.R.7611 “To require the Secretary of Energy to establish a program to provide loans to manufacturers of energy grid products and components.” Referred to the Committee on Energy and Commerce, and in addition to the Committee on Appropriations, 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. (March 11, 2024)

H.R.7609 “To direct the Administrator of the Environmental Protection Agency to provide for the generation of Renewable Identification Numbers under the renewable fuel program for electricity from renewable biomass, and for other purposes.” Referred to the House Committee on Energy and Commerce. (March 11, 2024)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

S.3918 “A bill to require the Federal Energy Regulatory Commission to establish a shared savings incentive to return a portion of the savings attributable to an investment in grid-enhancing technology to the developer of that grid-enhancing technology, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (March 12, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 11  – March 16, 2024)

Department of Environmental Protection

54 Pa.B. 1427: Notices: “Bond Rate Guidelines for the Calculation of Land Reclamation Bonds on Noncoal Mining Operations”

54 Pa.B. 1354: Notices “Applications, Actions and Special Notices”

Pennsylvania Public Utility Commission

  1. Pa.B. 1461: Notices: “Natural Gas Service”

54 Pa.B. 1459: Notices: “General Rule Transaction”

 

Written by:
Kendal Ashman, Research Assistant
Kole Zellers, Research Assistant
Dillon Lightfoot, Research Assistant
Jasmine Gunning, Research Assistant
Sergio Porras, Research Assistant
Jackie Schweichler, Staff Attorney