May 21, 2024

Shale Law Weekly Review—Week of May 20, 2024

National Energy Policy: DOE Announces Actions to Advance American Artificial Intelligence ⚡
On April 29, 2024, the U.S. Department of Energy announced several actions intended to advance the use and safety of artificial intelligence across a variety of fields including modernizing the electrical grid, clean energy, national security, climate forecasting, environmental modeling, and emergency response. DOE also published a report titled “AI For Energy: Opportunities for Modern Grid and Clean Energy Economy,” which specifically discusses “AI’s near-term potential to support the growth of America’s clean energy economy and Advanced Research Directions in AI For Energy, a report developed by DOE’s National Laboratories on long-term opportunities and challenges in AI.” DOE also announced several “actions to assess the potential energy opportunities and challenges of AI, accelerate deployment of clean energy, and advance AI software and hardware innovation to manage the growing energy demand of AI,” which includes the VoltAIc Initiative, which will use AI to streamline siting and permitting processes at the Federal, state, and local level. Additional information can be found on the DOE’s new website which includes information on DOE-developed and sponsored AI tools.

National Energy Policy: U.S. House Of Representatives Passes Abandoned Wells Remediation, Research and Development Act
On April 30, 2024, the United States House of Representatives passed the Abandoned Wells Remediations, Research and Development Act. The bill was originally introduced on July 25, 2023, and it was passed in the House with a vote of 333-75. Within this Act, the goals listed include data collection from abandoned wells, repurposing abandoned wells, and lessening potential environmental effects from abandoned wells. In addition, the Act describes additional purposes, such as expanding knowledge on the effect abandoned wells have on methane emission rates. The Act lists out specific funding for five years and notes that it will terminate five years after its enactment. As of May 1, 2024, the Senate has read the bill twice and it has been referred to the Committee on Energy and Natural Resources.

Pipelines: Appeals Court Upholds FERC Pipeline Expansion
On April 30, the United States Court of Appeals for the D.C. Circuit the Sierra Club’s petition for review, upholding the district court’s approval of the Tennessee Gas Pipeline Company and Southern National Gas Company’s application for the Evangeline Pass Expansion Project. Ala. Mun. Distribs. Grp. v. FERC, Nos. 22-1101, 22-1171, 22-1256, 22-1273. The Court rejected the Sierra Club’s argument that the Federal Energy Regulatory Commission (FERC) failed to consider the scope of the project, because FERC did not include four other “connected action” pipeline projects, reasoning that they do not meet the “connected” standard laid out in the National Environmental Policy Act. Furthermore, a separate argument claiming FERC’s environmental impact statement was faulty was rejected. Instead, the court found that the FERC’s report was reasonable, since it relied on the power given to it in the Natural Gas Act, and by the court in Ctr. For Biological Diversity v. FERC. As such, the Evangeline Pass Expansion Project will continue as scheduled.

Air Quality: $2.9 Million Awarded to Companies as Part of PA Air Quality Improvement Operation
On April 23, 2024, as part of an ongoing effort to incentivize truck fleet companies to lower air pollution, the Pennsylvania Department of Environmental Protection awarded a total grant of $2.9 million to seven different companies. This grant is part of the PA State Clean Diesel Grant Program, which exists to provide, “financial incentives and support for fleet owners and operators to reduce air pollution from their vehicle fleet.” According to the grant’s text, the funds are to be used for the replacement of old diesel vehicles with either clean diesel or electric vehicles and the installation of electric-friendly vehicle accommodations, such as charging stations or parking spaces. Because heavy diesel vehicles make up a sizeable portion of air pollution produced by Pennsylvania’s transportation infrastructure, the DEP aims to lower this pollution by incentivizing truck fleets to transition to low-to-zero emissions.

 

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CENTER PROGRAMS & RESOURCES

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Texas operators turn to flaring amid weak gas prices (Reuters)

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AI boom to fuel natural gas demand in coming years, report says (Reuters)

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Oil & Gas Law & Policy Resources:

De Spiegeleir & Brucher, The European Court of Human Rights’ April 9 Climate Rulings and the Future (Thereof) (April 29, 2024)

Blattner, Separation of Powers and KlimaSeniorinnen (April 30, 2024)

Vidigal, International Trade and “Embedded Emissions” after KlimaSeniorinnen: The Extraterritoriality of Climate Change Obligations (May 1, 2024)

Bloomberg, Oil Extends Drop on Mideast Cease-Fire Prospects, US Inflation (May 1, 2024)

Granoff, Are sustainable finance metrics up for the volatility of the transition to net zero? A new working paper investigates (May 2, 2024)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

DOE Announces New Actions to Enhance America’s Global Leadership in Artificial Intelligence (April 29, 2024)

Biden-Harris Administration Announces $78 Million to Further Drive Down Energy Costs and Enhance Energy Security in Rural and Remote Communities Across America (April 30, 2024)

U.S.-UK Strategic Energy Dialogue 2024: Joint Statement (April 30, 2024)

Biden-Harris Administration Announces New National Security Memorandum to Strengthen U.S. Department of Energy’s Role in Ensuring Security and Resilience Across America’s Energy Sector (April 30, 2024)

DOE Finalizes Efficiency Standards for Water Heaters to Save Americans Over $7 Billion on Household Utility Bills Annually (April 30, 2024)

Biden-Harris Administration Announces More Than $26 Million to 37 State, Local, and Tribal Governments to Support Clean Energy Projects (May 1, 2024)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

Biden-Harris Administration Announces $3 Billion for Lead Pipe Replacement to Advance Safe Drinking Water as Part of Investing in America Agenda (May 2, 2024)

EPA Announces Final Rule to Protect Water Quality Where Tribes have Treaty and Reserved Rights (May 2, 2024)

Biden-Harris Administration Announces Over $152 Million for Pennsylvania Lead Pipe Replacement to Advance Safe Drinking Water as Part of Investing in America Agenda (May 2, 2024)

EPA Partners with Webster County to Support Community-Driven Energy Transition and Economic Revitalization Goals (May 1, 2024)

EPA Partners with Energy Communities to Support Community-Driven Energy Transition and Economic Revitalization Goals (May 1, 2024)

FEDERAL EXECUTIVE AGENCIES (Federal Register April 27, 2024– May 2, 2024)

Energy Department

89 FR 35384: Rule: “Clean Energy for New Federal Buildings and Major Renovations of Federal Buildings” (May 1, 2024)

Land Management Bureau

89 FR 35634: Rule: “Rights-of-Way, Leasing, and Operations for Renewable Energy” (May 1, 2024)

Natural Resources Conservation Office

89 FR 34266: Notice, Comments Close 7/1/24: “Agency Information Collection Activities: 30 CFR Parts 1227, 1228, and 1229, Delegated and Cooperative Activities With States and Indian Tribes” (April 30, 2024)

Pipeline and Hazardous Materials Safety Administration

89 FR 33264: Rule: “Pipeline Safety: Periodic Updates of Regulatory References to Technical Standards and Miscellaneous Amendments” (April 29, 2024)

Ocean Energy Management Bureau

89 FR 34268: Notice: “Notice on Outer Continental Shelf Oil and Gas Lease Sales” (April 30, 2024)

Other Agencies

89 FR 35703: Rule: “Publication of Venezuela Sanctions Regulations Web General Licenses 5O, 8M, and 44A” (May 2, 2024)

89 FR 35849: Notice, Comments Close 7/1/24: “Agency Information Collection Activities; Application Requirements for States and Tribes To Apply for Orphaned Well Site Plugging, Remediation, and Restoration Funding Consideration, and Ongoing State and Tribal Reporting Requirements for Funding Recipients” (May 2, 2024)

89 FR 35442: Rule: “National Environmental Policy Act Implementing Regulations Revisions Phase 2” (May 1, 2024)

89 FR 34214: Notice: “Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Geophysical Surveys Related to Oil and Gas Activities in the Gulf of Mexico” (April 30, 2024)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.8187 “To direct the Secretary of Energy to establish and carry out a program to support the development, maintenance, implementation, and adoption of digital identification systems for advanced energy technologies for the purpose of increasing critical material supply chain transparency.” Referred to the Committee on Energy and Commerce, and in addition to the Committee on Science, Space, and Technology, 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. (April 30, 2024)

H.Res.1175 “Expressing the sense of the House of Representatives that hydropower is a vital component to an all-of-the-above approach to energy development which is critical to United States national security.” Referred to the House Committee on Energy and Commerce. (April 29, 2024)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

H.R.1069 “Clean Energy Demonstration Transparency Act of 2023” Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources. (April 30, 2024)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

DEP Launches New Pilot Program to Reduce Errors, Speed Up Processing Time for Key Construction Permit (April 29, 2024)

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 54, No. 17 – April 27, 2024)

Pennsylvania Legislature

HB 1615 “An Act providing for minimum energy and water efficiency standards for certain products sold in this Commonwealth; imposing penalties; and making repeals.” Removed from table [House] (May 1, 2024)

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