Clean Up Your Act

“When the New York City Council passed the Climate Mobilization Act last year, Ken and Bradley Fishel, the father-and-son team behind the commercial real estate firm Renaissance Properties, were already well along the way to slashing their properties’ energy consumption. Then COVID-19 hit,” writes Christopher Cameron in Commercial Observer.

“Suddenly, the Fishels saw their four Manhattan office buildings empty of workers and tenants.:

“Low occupancy meant that they could finish updating their office buildings in NoHo and Midtown to comply with New York City’s Green New Deal legislation — which is in line with, but not tied to, the proposed federal legislation of the same name, and which the Department of Buildings will begin enforcing in 2024 — without disturbing tenants. That meant cost savings.”

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Baker Botts Launches Carbon Technology Arm of Energy Law Firm With Eye to International Clients

“Houston-based Baker Botts, one of the top energy law firms in the U.S., launched a dedicated carbon capture, utilization and storage practice group within its energy sector,” reports Erin Douglas in Houston Chronicle’s Business Energy.

“After launching a hydrogen practice group in June, Baker Botts launched the carbon arm, which the firm said has been a significant topic of interest from clients and energy markets, ‘even during the difficult COVID-19 working environment.'”

“Carbon capture, utilization and storage is considered a promising technology that could help to slow the pace of climate change, especially in the oil and gas industry.”

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Ruling Boosts Enbridge Energy’s Plans to Replace Aging Oil Pipeline in Minnesota

“An administrative law judge said opponents of Enbridge’s proposed Line 3 oil pipeline did not prove construction of the project would harm northern Minnesota wetlands and streams,” reports Jimmy Lovrien in TwinCities Pioneer Press’ Business.

“In a non-binding recommendation issued Friday, Judge James LaFave said the coalition of environmental and tribal groups failed to meet the burden of proof in a contested-case hearing on the Minnesota Pollution Control Agency’s water permits over the summer and urged the MPCA commissioner to make the same finding when considering the 340-mile pipeline’s 401 certification, a permit awarded by a state’s regulators if the project’s impact on water falls within the state’s standard. The MPCA’s decision is due Nov. 14.”

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$56M Settlement with Columbia Gas Over Merrimack Valley Gas Explosions Approved

“A $56 million settlement between Massachusetts and the natural gas utility found responsible for a series of explosions and fires in the state in 2018 was approved by the state Department of Public Utilities,” reported by Associated Press in The Washington Post’s Climate & Environment.

“The settlement with Columbia Gas of Massachusetts and its parent, NiSource, was agreed to in July and approved Wednesday, the state Executive Office of Energy and Environmental Affairs announced in a statement.”

“The explosions in Lawrence, Andover and North Andover in September 2018 killed one person, injured almost two dozen and damaged more than 100 buildings. Federal investigators blamed the explosions on overpressurized gas lines.”

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Renewables on Tribal Land: Addressing Environmental and Economic Equity on the Path to a Clean Energy Economy

“Demand for renewable energy projects has never been greater,” write Bart J. Freedman, Teresa A. Hill, and Benjamin A. Mayer in K&L Gates’ Global Power Law & Policy.

“The newest, latest trend is the push for renewable energy projects with positive social impacts and benefits to marginalized communities. Indeed, some of the most significant consumers and supporters of renewable and carbon-free power are now making environmental and economic justice a central focus and condition of their use of and investments in clean energy projects. Utility leaders have identified racial justice as a top concern in the transition to a clean energy economy. Key stakeholders and influential civil rights organizations, including the NAACP, have created toolkits and are advocating for just energy policies and practices. The Rocky Mountain Institute announced this summer that it will be launching a residential solar program to expand the use of solar in communities of color. At the same time, clean energy transition legislation throughout the country is accelerating the need for carbon-free resources, including wind, solar, and storage projects, to replace traditional fossil fuel resources, such as coal, oil, and natural gas, to power the grid.”

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FirstEnergy Says Attorney General’s Nuclear Bailout Lawsuit Does Not Have ‘Legal Merit’

“FirstEnergy is responding to a civil case filed over Ohio’s nuclear bailout by Attorney General Dave Yost, saying the utility company plans to ‘vigorously’ defend itself,” reports Andy Chow in WOSU Public Media.

“FirstEnergy spokesperson Jennifer Young says the company has followed the law when it comes to making political contributions.”

“Yost’s civil suit seeks to stop any defendants in his filing from collecting any revenue created through HB6, the nuclear bailout and energy law passed last year. The law allows for monthly charges starting in January on all electric ratepayers bills to send money to nuclear, coal and solar plants. HB6 also allows for ‘decoupling,’ which guarantees FirstEnergy a certain amount of profits.”

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How will Energy Market Participants Protect Themselves from Ongoing Shifts in the Sources of Energy?

“The changes brought about by evolutions in renewable energy technologies, and in some cases aggravated by the impacts of COVID-19, are likely to up-end traditional relationships between different forms of energy and the customers that use them. These changes are significantly impacting not just competitors, but their contract counter-parties, the risks they face, their credit-worthiness and their customers,” posts Mark Sundback in SheppardMullin’s Electrical Power.

“Renewable generation equipment’s cost continues to decline. Output from solar and wind is available at $0 short-term incremental dispatch cost. Battery research is identifying ways to lengthen the duration of output from that form of storage, and to lower its cost. But the location of renewable assets is not necessarily the same as the location of conventional thermal generation facilities, which typically have been located adjacent to sources of large amounts of water.”

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Climate Cases Put Big Oil’s Behemoth Trade Group in Bull’s-Eye

“State and local governments taking Big Oil to court over climate change have a new target: the American Petroleum Institute—an approach that could pay off for plaintiffs and create headaches for the industry’s biggest trade group, lawyers say,” reports Ellen M. Gilmer in Bloomberg Law’s Environment & Energy Report.

“Recent lawsuits from Delaware, Minnesota, and Hoboken, N.J., name API as a defendant, saying the group should be on the hook alongside oil companies for allegedly misleading the public about fossil fuels’ climate impacts.”

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Major Automakers Finalize “Framework Agreements on Clean Cars” with California

“Five major automobile manufacturers – BMW of North America, Ford, Honda, Volkswagen Group of America, and Volvo – and the California Air Resources Board (CARB) recently entered into voluntary framework agreements to reduce vehicle greenhouse gas (GHG) emissions annually through model year 2026. This follows the agreement-in-principle that CARB and the automakers reached in July 2019 in anticipation of the Trump Administration’s plans to promulgate less-restrictive light-duty vehicle GHG emissions standards, reports Joshua H. Van Eaton, Daniel B. Schulson and Anthony G. Papetti in Beveridge & Diamond’s News Alert.

“The U.S. Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration finalized in September 2019 the first part of the Safer, Affordable, Fuel-Efficient (SAFE) Vehicles Rule. Specifically, Part I of the SAFE Rule withdrew California’s 2013 Clean Air Act Section 209(b) waiver, which permitted California to establish GHG emissions standards and Zero-Emission Vehicle (ZEV) mandates. This rule is currently being challenged by 24 states and environmental groups.”

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Court Filing Targets New Mexico’s Energy Transition Law

“Environmentalists have lined up behind the shift to renewable energy required by the state’s energy transition act, but some are challenging language in the law that they say derails due process and eliminates standards of regulatory review meant to protect customers,” reports Susan Montoya Bryan in KRQE’s Politics – Government.

“New Energy Economy and Citizens for Fair Rates and the Environment filed a brief this week with the state Supreme Court.”

“Legal wrangling has been ongoing since the state adopted the landmark legislation in 2019. Aside from mandating more renewable energy, the law includes a financing mechanism that supporters say is necessary for the 2022 closure of a major coal-fired power plant in northwestern New Mexico.”

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EPA Administrator Announces Rollback of Obama-Era Energy Regulations

“Environmental Protection Agency (EPA) Administrator Andrew Wheeler announced at Pittsburgh’s Energy Innovation Center on Thursday that the EPA will remove ‘ineffective and duplicative’ regulations on oil and natural gas companies,” reports Manny Marotta in Jurist.

“The announcement adheres to President Donald Trump’s 2017 executive order on promoting energy independence and economic growth, which states ‘[i]t is in the national interest to promote clean and safe development of our Nation’s vast energy resources, while at the same time avoiding regulatory burdens that unnecessarily encumber energy production, constrain economic growth, and prevent job creation.'”

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Massachusetts Set to Pass Landmark Clean Energy Law to Reach Net-Zero by 2050

“Massachusetts is expected to pass clean energy and climate legislation in the coming months that would require the state to reach net-zero greenhouse gas emissions by 2050, dividing conservative groups and environmentalists in atypical ways,” reports David Iaconangelo in E&E News.

“The state House and Senate, which are both controlled by Democrats, have yet to agree on final language. But both chambers have passed bills backing the net-zero goal, and Republican Gov. Charlie Baker has declared that his administration is planning to meet it.”

“If enacted, the law would place Massachusetts among a handful of states requiring a carbon-neutral economy by midcentury.”

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U.S. Department of Energy Unveils Blueprint for Quantum Internet

“…the U.S. Department of Energy (DOE) unveiled a report that lays out a blueprint strategy for the development of a national quantum internet, bringing the United States to the forefront of the global quantum race and ushering in a new era of communications. This report provides a pathway to ensure the development of the National Quantum Initiative Act, which was signed into law by President Trump in December 2018,” writes Brookhaven National Laboratory in SciTechDaily.

“Around the world, consensus is building that a system to communicate using quantum mechanics represents one of the most important technological frontiers of the 21st century. Scientists now believe that the construction of a prototype will be within reach over the next decade.”

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Ohio Governor Seeks Repeal of ‘Tainted’ Nuclear Bailout

“Gov. Mike DeWine on Thursday shifted gears and called on the Ohio General Assembly to repeal the law that would provide a $1 billion bailout of two nuclear power plants on Lake Erie, given revelations about the alleged $60 million bribery scheme that led to its passage,” reports Jim Provance in The Blade.

“He said the process behind the bill’s passage ‘stinks’ and has tainted what he has said is still the good policy behind saving the Davis-Besse nuclear plant near Oak Harbor and the Perry plant east of Cleveland.”

“He called on lawmakers to repeal and replace House Bill 6 through an open process ‘that the public can have full confidence in.'”

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Council on Environmental Quality Finalizes Overhaul of NEPA Regulations

“President Trump announced the Council on Environmental Quality’s final rule, Update to the Regulations Implementing the Procedural Provisions of the National Environmental Policy Act. This rulemaking marks the first substantial revision to the NEPA regulations since their initial promulgation over 40 years ago. The CEQ released the proposed rule in January 2020 for a 60-day public comment period, during which the Council received over 1.1 million comments. Though well received by industry stakeholders as emphasizing best practices to streamline the NEPA review process, the proposal faced heavy criticism from environmental groups for a variety of reforms they believe curtailed opportunities for public participation and altered the scope of traditional NEPA analysis,” write Fred R. WagnerThomas M. LinganTyler G. Welti Chelsea E. O’Sullivan in Venable LLP’s Insights.

“The final rule, which comes just a few months after the close of the public comment period despite the enormous public response, largely tracks the proposal and retains some of the more controversial provisions.”

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National Defense Authorization Act for Fiscal Year 2021 Passed to Full Senate

Efforts to prepare the defense budget is in process. “Both the House and Senate are working on their versions of the National Defense Authorization Act for Fiscal Year 2021 (NDAA). The House version is in committee markup. The Senate version has been rolled out of committee and is being considered by the full Senate,” reports Susan Ebner in Government Contracting Matters.

Read the article for some key points regarding the government contracting aspects of the current Senate bill:

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Dominion and Duke Energy Abandon Atlantic Coast Pipeline

“Dominion Energy and Duke Energy announced that they are canceling the $8 billion Atlantic Coast Pipeline,” reports Claudine Ebeid McElwain and Greg Buppert in Southern Environment Law Center’s Press Releases.

“Southern Environmental Law Center Senior Attorney Greg Buppert issued the following statement: ‘This is a victory for all the communities that were in the path of this risky and unnecessary project. The Atlantic Coast Pipeline was wrong from the start. After years of opposition, legal defeats and threats to the environment, SELC is relieved to see Duke and Dominion make the right decision to walk away from it.

This is a great day for the people of Union Hill, for public lands, for landowners in the path, and for all North Carolinians and Virginians who deserve a clean energy future and are no longer on the hook to pay for this $8 billion pipeline.

Over the last six years, SELC has been honored to represent a dedicated and tireless group of conservation organizations opposed to the pipeline: Alliance for the Shenandoah Valley, Cowpasture River Preservation Association, Defenders of Wildlife, Friends of Buckingham, Friends of Nelson, Jackson River Preservation Association, Highlanders for Responsible Development, Piedmont Environmental Council, Potomac Riverkeeper, Inc., Shenandoah Riverkeeper, Shenandoah Valley Battlefields Foundation, Sierra Club, Sound Rivers, Inc., Virginia Wilderness Committee, and Winyah Rivers Foundation. Today’s outcome would not be possible without their energy and commitment.'”

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State of Nevada Agrees to Settlement with Department of Energy Over Plutonium Shipments

“A finalized settlement agreement between the State of Nevada and the Department of Energy regarding their shipment of weapons-grade plutonium was agreed to … by Gov. Steve Sisolak, Attorney General Aaron Ford and Nevada’s federal delegation,” reported by News 4 and FOX 11 Digital Team on KRNV.

“According to the AG’s office, the settlement marks a significant victory in Nevada’s fight to prevent the DOE from making Nevada its plutonium destination of choice.”

“In August 2018, the DOE announced its plan to ship up to one metric ton of plutonium to Nevada for indefinite storage.”

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Chesapeake Energy Skips Interest Payment; Borrowing Base Slashed

“Chesapeake Energy Corp, the shale pioneer widely anticipated to seek bankruptcy protection, said on Thursday it had skipped an interest payment due June 15 on some of its notes and its capacity to borrow money was slashed by lenders,” reports Shariq Khan in Reuters’ Commodities.

“The company said in a regulatory filing its borrowing base under a so-called ‘reserve-based’ loan was cut to $2.3 billion from $3 billion and its creditors had agreed to waive some events of default.”

“The company has been in talks with creditors, which include Franklin Resources Inc, to ‘roll up’ some of its existing debt and make it part of a bankruptcy loan, Reuters reported.”

“Chesapeake owes about $250 million in payments this year on portions of its nearly $9 billion in outstanding debt, according to its latest public filings. It had about $82 million in cash and untapped credit lines of about $1 billion at March 31.”

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Effective Compliance Oversight of Energy Commodity Trading in a Remote Trading Environment

“Following the declaration of a global pandemic due to the widespread transmission of the coronavirus (COVID-19), the issuance of shutdown and/or stay-at-home directives cascaded from commercial enterprises and state and local governments across the United States,” write Levi McAllister, Michael M. Philipp and Katherine Dobson Buckly in Morgan Lewis’ Power & Pipes blog.

“During this period of extreme disruption to daily routine, the continuity and integrity of energy operations were necessary to ensure that the massive shift to home-based life could exist with minimal business disruption. Front- and back-office personnel engaged in trading energy commodities quickly transitioned to a work-from-home (WFH) posture, ensuring that their firms could preserve market access for production or output while also consummating the transactions needed to procure an adequate fuel source, managing price exposure to highly volatile commodity prices, or executing preexisting trading strategies.”

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