Shale Law Weekly Review—Week of September 25, 2023

GHG Emissions: California Senate Passes New Emissions Disclosure Requirements for Billion-Dollar Businesses ⚡
On September 11, 2023, the California Senate approved Senate Bill 253, which will require all private and public companies operating in California with a total revenue of $1 billion or more to comply with new disclosure requirements that reflect the emissions disclosure standards outlined in the Greenhouse Gas Protocol (GHG Protocol). SB-253 seeks to enforce the “globally recognized GHG accounting and reporting standards” of the GHG Protocol, a system of guidance developed by the World Resources Institute and the World Business Council for Sustainable Development. Beginning in 2026, these businesses are required to disclose indirect GHG emissions from energy use and direct GHG emissions from operations on an annual basis. Additionally, starting in 2027, the bill requires these businesses to report indirect upstream and downstream supply-chain emissions from the prior fiscal year. The California state board will develop an “emissions reporting organization” by the end of 2024, which will serve as the central entity to which these businesses will report their annual GHG emissions. As explained in the bill, the objective of these new regulations is to make businesses more publicly accountable for their GHG emissions. This objective is part of California’s broader effort to combat the “devastating” effects of climate change faced by the state in the form of natural disasters.

LNG Exports: Environmental Groups Petition in Opposition of Driftwood LNG’s New Export Plant Denied
On September 6, 2023, the U.S. Fifth Circuit Court of Appeals issued an opinion denying the petition submitted by environmental groups Sierra Club and Healthy Gulf (collectively, Petitioners) challenging a permit issued by the U.S. Army Corps of Engineers (the Corps) approving Driftwood LNG’s export plant in construction near Lake Charles, LA. Healthy Gulf v. US Army Corps of Eng., No: 22-60397 (5^th Cir. 2022). In issuing the permit, the Corps determined that Driftwood’s plan would both “avoid” and “minimize” adverse impact, while also providing adequate “compensatory mitigation” for unavoidable adverse impacts. Petitioners claimed that the Corps failed to consider all “least environmentally damaging practicable alternative[s]” by not assessing one possible alternative site and improperly allowed Driftwood to fulfill compensatory mitigation requirements using dredged materials, as opposed to adhering to a regulatory order of preferred methods. In response to Petitioner’s first claim, the Court determined that Petitioners had no right to challenge the permit because Petitioners did not raise the issue during the permit’s public comment period, thus they did not provide the Corps with timely notice. Responding to Petitioner’s second claim, the Court noted that while 33 C.F.R. § 332.3(b)(1) required the Corps to consider compensatory mitigation options in a specific order, the Corps does, however, has the authority to “override” that order when appropriate. In denying the petition, the Court enables continued construction on Driftwood LNG’s export plant.

 

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.

October 27, 2023, noon – 1 pm (ET). Understanding the Basics of Federal & State Seed Laws. (Register)

Quarterly Dairy Legal Webinar – Penn State Law’s 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.

October 17, 2023, noon – 1 pm (ET), Quarterly Dairy Webinar: Risk Management/Income & Revenue Protection (Register)

On Wednesday, October 25, 2023, from 1:00–2:00pm ET, Center Staff Attorney Brook Duer will present a webinar entitled, “Where Will Pennsylvania’s Solar Future Be Located and How Will It Get There?” More information here can be found on the WeConservePA website.

October 25, 2023, 1 pm – 2 pm (ET). Where Will Pennsylvania’s Solar Future Be Located and How Will It Get There? (Register)

On Wednesday, October 25, 2023, from 1:00–3:00pm ET, PA Farm Link, in collaboration with the Penn State Center for Agricultural and Shale Law, Sustainable Agricultural Research & Education Program, and the Pennsylvania Department of Agriculture, will present “Medicaid Look-back Ag Professional Continued Education Program” with guest speaker MacGregor Brillhart, attorney at Stock & Leader. More information is available on the PA Farm Link event page.

October 25, 2023, 1 pm – 3 pm (ET). Medicaid Look-back Ag Professional Continued Education Program. (Register)

Follow us on Twitter @AgShaleLaw—Top #ShaleLaw HotLinks 

Canada’s Trans Mountain pipe expansion to disrupt oil flow to US, boost prices (Reuters)

Recent surge in WTI price curbs US oil flows to Europe, Asia (Reuters)

New report shows oil, natgas industry progress to reduce methane emissions (Pennsylvania Business Report)

EIA Boosts Brent and WTI Oil Price Forecasts (Rigzone)

LNG CRUCIAL TO GERMAN ENERGY STRATEGY, MINISTRY OFFICIAL SAYS (Natural Gas World)

Connect with us on Facebook.

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

Oil & Gas Law & Policy Resources:

Bloomberg, Trafigura Wrestles With Future of Metals Unit after Losses (September 17, 2023)

Bloomberg, Oil Pushes Closer to $95 a Barrel as Global Market Tightens Up (September 18, 2023)

Bloomberg, Oil Dips After Blistering Climb With Fed and Technicals in Focus (September 20, 2023)

Bloomberg, Trudeau’s Mega Pipeline Promises to Redraw Global Oil Flows (September 21, 2023)

FEDERAL ACTIONS—EXECUTIVE & LEGISLATIVE

U.S. DEPARTMENT OF ENERGY PRESS RELEASES

U.S. Department of Energy Reports Identify Transformative Opportunities for Widescale Clean Energy Deployment (September 18, 2023)

Biden-Harris Administration Announces $400 Million for States to Improve Building Energy Efficiency, Save Consumers Money, and Make Buildings More Climate Resilient (September 19, 2023)

Biden-Harris Administration Releases Roadmap to Accelerate Offshore Wind Transmission and Improve Grid Resilience and Reliability (September 19, 2023)

Biden-Harris Administration Announces $10 Million to Expand Access to Clean Energy Workforce Training Programs (September 20, 2023)

DOE Announces Nearly $48 Million To Advance Clean Hydrogen Technologies (September 20, 2023)

Biden-Harris Administration Announces $72 Million to Innovate Manufacturing and Accelerate Deployment of Wind and Water Energy Technologies (September 21, 2023)

Biden-Harris Administration Announces $325 Million For Long-Duration Energy Storage Projects to Increase Grid Resilience and Protect America’s Communities (September 22, 2023)

U.S. ENVIRONMENTAL PROTECTION AGENCY PRESS RELEASES

EPA and Lincoln University Expand Partnership to include PA Department of Environmental Protection (September 22, 2023)

Biden-Harris Administration Announces Availability of $4.6 Billion in Competitive Grants to Cut Climate Pollution as Part of Investing in America Agenda (September 20, 2023)

EPA announces $4.6b in pollution reduction grants for Pacific Northwest, Alaska (September 20, 2023)

Biden-Harris Administration Announces Availability of $4.6 Billion in Competitive Grants to Cut Climate Pollution as Part of Investing in America Agenda (September 20, 2023)

EPA Proposes Draft NPDES Permit for General Electric facility in Pittsfield, Mass. (September 20, 2023)

EPA, State and Local Officials Celebrate 25 Zero-Emission Clean School Buses Awarded to City of West Springfield, Mass. (September 18, 2023)

FEDERAL EXECUTIVE AGENCIES (Federal Register September 16 – Sept. 22, 2023)

Environmental Protection Agency

Federal Energy Regulatory Commission

88 FR 65379: Notice: “Combined Notice of Filings” (September 22, 2023)

88 FR 65167: Notice: “Combined Notice of Filings” (September 21, 2023)

88 FR 64428: Notice: “Combined Notice of Filings” (September 19, 2023)

88 FR 63947: Notice: “Combined Notice of Filings” (September 18, 2023)

Energy Department

88 FR 64351: Rule: “Energy Conservation Program: Energy Conservation Standards for Commercial Packaged Boilers” (September 19, 2023)

Susquehanna River Basin Commission

88 FR 63642: Notice: “Projects Approved for Consumptive Uses of Water” (September 15, 2023)

Other Agencies

88 FR 65350: Proposed Rule, Comments Close 10/23/2023: “Revising Scope of the Mining Sector of Projects That Are Eligible for Coverage Under Title 41 of the Fixing America’s Surface Transportation Act” (September 22, 2023)

88 FR 65208: Notice: “Self-Regulatory Organizations; Nasdaq ISE, LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove Proposed Rule Change To Amend the Short Term Option Series Program To Permit the Listing of Two Wednesday Expirations for Options on Certain Exchange Traded Products” (September 21, 2023)

88 FR 63973: Notice, Comments Close 11/17/2023: “Agency Information Collection Activities: Suspensions Pending Appeal and Bonding” (September 18, 2023)

U.S. HOUSE ENERGY AND COMMERCE COMMITTEE

H.R.5666 “To establish an Office of Public Engagement within the Pipeline and Hazardous Materials Safety Administration” Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Energy and Commerce, 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. (September 21, 2023)

H.R.5654 “To require the Secretary of Energy to withdraw a proposed rule relating to energy conservation standards for consumer water heaters.” Referred to the House Committee on Energy and Commerce. (September 21, 2023)

H.R.5618 “To direct the Secretary of the Treasury to issue Clean Energy Victory Bonds.” Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, and 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. (September 21, 2023)

H.J.Res.91 “Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Department of Energy relating to the “Energy Conservation Program: Test Procedure for Consumer Water Heaters and Residential-Duty Commercial Water Heaters”.” Referred to the House Committee on Energy and Commerce. (September 21, 2023)

H.R.5606 “To amend the Clean Air Act to prohibit the emission of any greenhouse gas in any quantity from any new electric utility steam generating unit, and for other purposes.” Referred to the Committee on Energy and Commerce, and in addition to the Committees on Natural Resources, and Foreign Affairs, 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. (September 20, 2023)

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE 

S.1657 “La Paz County Solar Energy and Job Creation Act” Committee on Energy and Natural Resources. Ordered to be reported with amendments favorably. (September 21, 2023)

STATE ACTIONS—EXECUTIVE & LEGISLATIVE 

PENNSYLVANIA DEPT. OF ENVIRONMENTAL PROTECTION PRESS RELEASES

Department of Environmental Protection Outlines Plans to Ramp Up PFAS Monitoring Following Report (September 19, 2023)

Shapiro Administration Awards $38.76 Million in Grants for Environmental Restoration Project (September 21, 2023)

PENNSYLVANIA EXECUTIVE AGENCIES (Pa. Bulletin Vol. 53, No. 38—September 23, 2023)

Department of Environmental Protection

53 Pa.B. 5933: Notices: “Applications, Actions and Special Notices”

53 Pa.B. 6005: Notices: “Issuance of General Plan Approval and/or General Operating Permit for Coal-Mine Methane Enclosed Flares (BAQ-GPA/GP-21)”

Pennsylvania Energy Development Authority

Pennsylvania Public Utility Commission

53 Pa.B. 6016: Notices: “Natural Gas Service”

Pennsylvania Legislature

SB 654 “Percent Depletion of Mines, Oil and Gas Wells, and other Natural Deposits” Referred to FINANCE, [House] (September 21, 2023)

 

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