March 24, 2024

Shale Law Weekly Review—Week of March 25, 2024

GHG Emissions: Texas Brings Suit in D.C. Circuit Court over EPA Methane Rule  ⚡
On Friday, March 8, 2024, the State of Texas petitioned the D.C. Circuit Court of Appeals to review a final rule officially published to the Federal Register by the Environmental Protection Agency (EPA) on the same day. The EPA first announced the final rule on December 2, 2023, which has a stated primary objective of “sharply reduc[ing] emissions of methane and other harmful air pollution from oil and natural gas operations.” The rule aims to reduce air pollution emissions from both new and existing sources that fall under the Crude Oil and Natural Gas category. This will be achieved through several strategies, including the implementation of new source performance standards for greenhouse gas (GHG) emissions and new guidelines for states to follow in the development of “state plans” that enforce these standards against sources in the Crude Oil and Natural Gas category. According to data found within the rule, if these requirements are properly followed, methane emissions are projected to be reduced by 58 million short tons from 2024 to 2038. The final rule is set to go into effect on May 7, 2024.

Infrastructure: DOE and Joint Office Release Infrastructure Strategy Targeting the Freight Sector
On March 12, 2024, the Joint Office of Energy and Transportation (Joint Office) and the Department of Energy (DOE) announced a strategy to expand the infrastructure of zero-emission medium and heavy-duty vehicle (ZE-MHDV) charging and hydrogen fueling, over the next 16 years. The National Zero-Emission Freight Corridor Strategy was developed in collaboration with the Department of Transportation (DOT) and the Environmental Protection Agency (EPA) to advance the decarbonization of the freight industry by promoting the sales and use of ZE-MHDVs. The Strategy  will advance in four phases, with the first taking place over the next three years. This first phase will prioritize the deployment of infrastructure in hubs along key freight corridors, as determined by freight volume and designation by the Federal Highway Administration (FHA). The next three phases will proceed by connecting the hubs and otherwise expanding corridor connections to establish a national network by 2040. According to the DOE & Joint Office’s release, this Strategy is projected to yield significant health benefits by reducing pollution, and to save businesses money by reducing the costs associated with the distribution of goods, in turn saving money for the consumers. A map of the selected key corridors for phase one can be found here.

Hydraulic Fracturing Bans: New York State Senate Passes Legislation Banning CO2 Fracking
On March 20, 2024, the New York State Senate passed Senate Bill S8357 which prohibits the issuance of new well permits to use carbon dioxide or high-volume hydraulic fracturing to extract oil or natural gas. The Bill specifically targets permits to “drill, deepen, plug back, or convert wells” that engage in these extraction methods. The Bill defines high-volume hydraulic fracturing as using “three hundred thousand or more gallons of water as the base fluid” for extraction, regardless of whether the well is vertical or horizontal. This Bill went into effect immediately on March 20, 2024. For background and comments on the Bill, visit the New York State Senate website.

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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 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 

9 more states sue SEC over climate disclosure rule (The Hill)

FERC to tackle gas pipeline bundling (PoliticoPro)

AI Promises Faster Oil Drilling and Even More US Crude Supply (Bloomberg)

DOE pushes new plan to measure gas export emissions (PoliticoPro)

ConocoPhillips CEO Calls for USA to End LNG Permit Pause in November (Bloomberg)

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

McFarland, White v. Hilcorp – Heritage v. Nationsbank Again Rears its Ugly Head (March 15, 2024)

Field & Hanawalt, The SEC’s Final Climate Disclosure Rule: Pathways for Improving the Floor (March 20, 2024)

Energy Connects, Chevron and JX set to collaborate on development of CCS value chain (March 20, 2024)

Sartain, Department of Energy Efficiency Standards Stymied (March 21, 2024)

Bloomberg, Oil Declines for a Third Day as Rates and Geopolitics Dominate (March 22, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

DOE Unveils Roadmap for the Next Generation of Geothermal Power (March 18, 2024)

DOE Invests $44 Million to Advance a Clean, Reliable Electric Grid (March 19, 2024)

Biden-Harris Administration Launches Clean Energy Connector to Bring Nearly $15 Million in Annual Energy Savings to Up to 40,000 Low-Income Households (March 19, 2024)

Biden-Harris Administration Announces $180 Million Investment in School Energy Infrastructure as Part of Investing in America Agenda (March 20, 2024)

Biden-Harris Administration Announces $475 Million Investment to Support Clean Energy Solutions on Current and Former Mine Land (March 21, 2024)

DOE Reports Chart Path for East Coast Offshore Wind to Support a Reliable, Affordable Electricity System (March 21, 2024)

DOE Announces $18 Million Towards Clean Energy and Economic Development in 30 Historically Disadvantaged Communities (March 22, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA partners with 10 communities to foster equitable development strategies to reach environmental goals (March 22, 2024)

EPA requires industrial facilities to enhance preparation for chemical discharges to water in adverse weather conditions, better protecting the environment and public health (March 21, 2024)

Biden-Harris Administration finalizes strongest-ever pollution standards for cars that position U.S. companies and workers to lead the clean vehicle future, protect public health, address the climate crisis, save drivers money (March 20, 2024)

EPA Requires Arkansas Midland Railroad Company to Pay $910K for Alleged Hazardous Waste Violations (March 20, 2024)

EPA celebrates 20 years of methane reduction accomplishments at the Global Methane Forum (March 19, 2024)

Biden-Harris Administration announces $24 million in pollution prevention grants under President’s Investing in America agenda (March 18, 2024)

EPA $61 Million in Funding Will Put Clean School Buses on the Streets of New York City (March 18, 2024)

FEDERAL EXECUTIVE AGENCIES (Federal Register March 16– March 22, 2024)

Environmental Protection Agency

89 FR 20384: Proposed Rule, Comments Close 4/22/24: “Approval and Promulgation of Air Quality Implementation Plans; New York; Regional Haze State Implementation Plan for the Second Implementation Period” (March 22, 2024)

Other Agencies

89 FR 20430: 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 22, 2024)

89 FR 19763: Proposed Rule, Comments 4/19/24: “Special Conditions: Safran Electric & Power S.A. Model ENGINe US100A1 Electric Engines” (March 20, 2024)

89 FR 19526: Proposed Rule, Comments Close 5/20/24 “Endangered and Threatened Wildlife and Plants; Endangered Species Status for Bushy Whitlow-Wort and Designation of Critical Habitat” (March 19, 2024)

89 FR 19546: Proposed Rule, Comments Close 5/20/24: “Endangered and Threatened Wildlife and Plants; Removal of the North Park Phacelia From the List of Endangered and Threatened Plants” (March 19, 2024)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.7786 “To amend the Federal Power Act to authorize the Federal Energy Regulatory Commission to issue permits for the construction and modification of national interest high-impact transmission facilities, and for other purposes.” Referred to the House Committee on Energy and Commerce. (March 21, 2024)

H.R.1121 “Protecting American Energy Production Act” Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources. (March 21, 2024)

H.Res.987 “Denouncing the harmful, anti-American energy policies of the Biden administration, and for other purposes.” Motion to reconsider laid on the table Agreed to without objection. (March 21, 2024)

H.R.7743 “To direct the Secretary of Energy to establish the “Department of Energy Experienced Worker Program”.” Referred to the House Committee on Energy and Commerce. (March 20, 2024)

H.R.7700 “To prohibit the Secretary of Energy from prescribing or enforcing energy conservation standards for dishwashers that are not cost-effective or technologically feasible, and for other purposes.” Ordered to be Reported by the Yeas and Nays: 25 – 21. (March 20, 2024)

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.” Ordered to be Reported by the Yeas and Nays: 22 – 19. (March 20, 2024)

H.R.7655 “To amend title 49, United States Code, to improve the safety of pipeline transportation, and for other purposes.” Ordered to be Reported (Amended) by the Yeas and Nays: 27 – 18. (March 20, 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.” Ordered to be Reported by the Yeas and Nays: 25 – 20. (March 20, 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.” Ordered to be Reported by the Yeas and Nays: 25 – 21. (March 20, 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.” Ordered to be Reported by the Yeas and Nays: 24 – 21. (March 20, 2024)

H.R.7726 “To repeal section 115 of the Clean Air Act.” Referred to the House Committee on Energy and Commerce. (March 19, 2024)

H.R.1023 “To repeal section 134 of the Clean Air Act, relating to the greenhouse gas reduction fund.” Rules Committee Resolution H. Res. 1085 Reported to House. Rule provides for consideration of H.R. 1023, H.R. 1121, H.R. 6009, H. Con. Res. 86, H. Res. 98and H.R. 7023. The resolution provides for consideration H.R. 1023, H.R. 1121, H.R. 6009, H. Con. Res. 86, and H. Res. 987 under a closed rule, and H.R. 7023 under a structured rule, each with one hour of general debate. The rule provides for one motion to recommit each on H.R. 1023, H.R. 1121, H.R. 6009, and H.R. 7023. (March 19, 2024)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

H.R.6009 “Restoring American Energy Dominance Act” Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources. (March 21, 2024)

H.R.1121 “Protecting American Energy Production Act” Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources. (March 21, 2024)

S.4027 “A bill to amend the Federal Power Act to authorize the Federal Energy Regulatory Commission to issue permits for the construction and modification of national interest high-impact transmission facilities, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (March 21, 2024)

S.4020 “A bill to amend the Energy Policy and Conservation Act to prohibit the export or sale of petroleum products from the Strategic Petroleum Reserve to certain entities, and for other purposes.” Read twice and referred to the Committee on Energy and Natural Resources. (March 21, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 12 – March 23, 2024)

Department of Environmental Protection

54 Pa.B. 1555: Notices “Applications, Actions and Special Notices”

Pennsylvania Legislature

H.B.254 “An Act authorizing the Department of Environmental Protection, in consultation with the Department of General Services to lease certain submerged lands within Erie County and associated wind, water and solar resources for the assessment, development, construction and operation of utility scale offshore wind, solar or kinetic energy generation facilities; providing for collection of certain lease and royalty payments; establishing the Lake Erie Large-Scale Energy System Development Fund; and providing for distributions and transfers from the fund.

Laid on the table [House] (March 19, 2024)

 

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