On December 2, 2023, the United States Environmental Protection Agency (EPA) issued the pre-publication version of its Final Rule for standards of performance in the Oil and Natural Gas sector. The original proposed rule, published on November 15, 2021, sought to strengthen methane standards for new sources (New Source Performance Standards or NSPS), establish nationwide emission guidelines (EG) for regulation of existing sources, and develop new standards for unregulated sources. EPA later issued a supplemental proposed rulemaking on November 15, 2022 (2022 Supplemental Proposed Rulemaking), as we summarized in our previous post. In total, EPA received nearly 1 million public comments on this rulemaking. The rules, when published in the federal register, will be included in 40 CFR Part 60, Subpart OOOOb (NSPS) and Subpart OOOOc (EG).
Big Money: OSHA and EPA Civil Penalties Increase Again for 2024
By Adam R. Young, James L. Curtis, Brent I. Clark, Benjamin D. Briggs, Mark A. Lies, Jeryl L. Olson, Patrick D. Joyce, A. Scott Hecker, Melissa A. Ortega, and Craig B. Simonsen
Seyfarth Synopsis: The U.S. DOL and U.S. EPA have published their 2024 increases to…
EU Corporate Sustainability Due Diligence Directive Nearly Final
On December 14, 2023, the European Parliament and the European Council reached a provisional deal on the Corporate Sustainability Due Diligence Directive (CS3D). Initially proposed by the European Commission in February of 2022, the CS3D requires certain companies to account for and mitigate adverse human rights and environmental impacts throughout their supply chains, including both their own operations as well as upstream and downstream activities. In November 2022, the European Council adopted the general approach proposed by the European Commission. Since then, the Council and the European Parliament have negotiated the parameters of the CS3D to reach a provisional agreement. While press releases from the Council, the Parliament, and the Commission all confirm an agreement has been reached, the text of the agreed upon CS3D is not yet publicly available. It is likely to be released in early 2024.
Some 2024 Resolutions for Environmental Lawyers
You are reading this column in the first days of 2024. This might be an apt opportunity in the “environmental practice” column to consider what we environmental lawyers ought to resolve to do to elevate our practices in the new year. My observations are no more profound than anyone else’s. But as I begin my…
Bankruptcy and Baseball II: What Happens to Shohei Ohtani’s Record Contract if the Los Angeles Dodgers File for Bankruptcy (Again)?
Baseball superstar Shohei Ohtani recently agreed to a 10-year, $700 million contract with the Los Angeles Dodgers. While the headline number came as a shock to even sports business nerds like us, as always, the devil was in the details: $680 million of Ohtani’s contract is deferred until after Ohtani is no longer obligated to…
The Energy Policy and Conservation Act – Still – Preempts Berkeley’s Ban on New Natural Gas Connections
Last week, the 9th Circuit voted against rehearing en banc its decision from last April finding the City of Berkeley’s ban on natural gas connections in new construction to be preempted by the Energy Policy and Conservation Act. Judge Friedland, joined by seven other judges (and three senior judges!) dissented from the denial, writing a…
Shale Law Weekly Review—Week of January 8, 2024
Pipelines: Michigan Public Services Commission Approves Upgrades to Enbridge Energy LP’s Pipeline in the Straits of Mackinac
On December 1, 2023, the Michigan Public Services Commission (Commission) announced the approval of an application filed by Enbridge Energy LP to replace segments of their pipeline on the lakebed of the Straits of Mackinac with a single…
City’s Decision to Reduce Floor Area Ratio in Single-Family Residential Zone Violates State Housing Law
In Yes In My Back Yard v. City of Culver City (2023) 96 Cal.App.5th 1103, the Second District Court of Appeal (“Court”) held that the City of Culver City (“City”) violated Government Code section 66300 (“Section 66300”)—a part of the Housing Crisis Act of 2019, also known as SB 330 (“SB 330”)—when it adopted…
Monetizing Clean Energy Credits: IRS Opens Registration Portal
The Internal Revenue Service (IRS) opened the portal for taxpayers to register for elective payment (under Section 6417 of the Internal Revenue Code (Code)) or transfer (under Section 6418 of the Code) for the ITC, PTC, and other eligible federal income tax credits. Along with the registration portal, the IRS provided a user guide and …
Third District Rejects CEQA and Other Challenges to Department of Water Resources’ EIR for Amendments Extending Long-Term State Water Project Supply Contracts Through 2085
In a 51-page published opinion filed January 5, 2024, and resolving consolidated appeals, the Third District Court of Appeal rejected baseline, piecemealing/segmentation, impact analysis, project description, alternatives analysis, and failure-to-recirculate challenges to the EIR for the Department of Water Resources’ (“DWR”) approval of amendments to long-term water supply contracts with local government agencies receiving water through the State Water Project (“SWP”). The amendments extended the contracts, which were originally entered into in the 1960s for 75-year terms, so as to end in the year 2085, and made other amendments to their financial provisions. In the course of affirming the trial court’s judgment upholding the EIR and contract amendments against CEQA, Delta Reform Act, public trust doctrine, and other challenges, the Court of Appeal applied numerous well-established CEQA principles in the enormously significant and complex context of continuing long-term SWP contracts. Planning and Conservation League, et al v. Department of Water Resources, et al, etc. (2024) 98 Cal.App.5th 726 (Ct. App. Nos. C096304, C096316, C096384).