Justia Energy, Oil & Gas Law Opinion Summaries

This case involves a dispute over the Environmental Protection Agency's (EPA) implementation of the Clean Air Act’s Renewable Fuel Standards Program. The program requires the petroleum industry to introduce increasing volumes of renewable fuel into the nation's transportation fuel supply each year. However, Congress overestimated the speed at which domestic production of renewable fuel could expand, leading the EPA to reduce the statutorily required renewable fuel requirements annually.The case was brought before the United States Court of Appeals for the District of Columbia Circuit by two sets of petitioners. The first set, the Biofuel Petitioners, produce cellulosic biofuels and argue that the EPA's standards are set too low. The second set, the Refiner Petitioners, are fossil fuel refiners and retailers subject to the volume requirements and contend that the standards are too high.The court held that the EPA complied with the law and reasonably exercised its discretion in setting the renewable fuel requirements for the years 2020, 2021, and 2022. The court therefore denied the petitions for review. The court found that the EPA had the statutory authority to impose a supplemental volume for 2022 to make up for volume that should have been satisfied in 2016. The court also concluded that the EPA's new formula for calculating the annual percentage standards was not arbitrary or capricious. View "Sinclair Wyoming Refining Company LLC v. EPA" on Justia Law

The case revolves around an oil spill caused by Plains All American Pipeline, L.P. (Plains). The spill resulted in the unlawful discharge of over 142,000 gallons of crude oil into the ocean and onto a beach. The trial court considered restitution for four groups of claimants who alleged losses due to the spill. The People of the State of California appealed the denial of restitution for claimants in two of these groups.The trial court had previously ruled that oil industry claimants were not direct victims of Plains' crimes and accepted mediated settlements in lieu of restitution. It also denied restitution to fishers based on a pending class action lawsuit, declined to consider aggregate proof presented by fishers, and refused to consider Plains' criminal conduct.The Court of Appeal of the State of California Second Appellate District Division Six held that restitution could not be denied based on mediated civil settlements or a class action lawsuit. However, it upheld the trial court's decision to deny restitution to fishers and oil industry workers, stating that they were not direct victims of the pipeline shutdown after the spill. The court remanded the case for consideration of restitution for four fisher claims, but in all other respects, it affirmed the trial court's decision and denied the writ petition. View "People v. Plains All American Pipeline, L.P." on Justia Law

The case involves a dispute over the Federal Energy Regulatory Commission's (FERC) certification of the Evangeline Pass Expansion Project, a series of expanded pipelines, compression facilities, and meter stations in the Southeastern United States. Environmental groups, including the Sierra Club and Healthy Gulf, challenged the certification, alleging that FERC improperly applied the National Environmental Policy Act (NEPA). Additionally, the Alabama Municipal Distributors Group, a municipal customer of Southern Natural Gas Company, argued that a new lease from Southern to Tennessee Gas may mean more profits for Southern, so Alabama Municipal should receive a portion of those profits.Prior to reaching the United States Court of Appeals for the District of Columbia Circuit, FERC had unanimously issued a Certificate Order to Tennessee Gas and Southern, denying all objections. FERC reaffirmed its determination on rehearing. The Sierra Club and Alabama Municipal timely petitioned for review.The Court of Appeals for the District of Columbia Circuit upheld FERC's certification of the Evangeline Pass Expansion Project. The court found that FERC's certification was reasonable and reasonably explained, as was its decision to deny a windfall to a pipeline owner's existing customers. The court rejected the Sierra Club's arguments that FERC failed to consider the full scope of environmental effects of the project, erred by failing to account for the environmental impact of two ongoing authorizations to export gas, and was required to use the "social cost of carbon" tool. The court also rejected Alabama Municipal's argument that it should receive a future credit on the existing rates it pays. The court concluded that all of FERC's decisions in this case were reasonable and reasonably explained, and therefore denied the petitions for review. View "Alabama Municipal Distributors Group v. FERC" on Justia Law

The case involves a challenge by the Sierra Club to the pre-construction permits issued by the Louisiana Department of Environmental Quality (LDEQ) to Commonwealth LNG, LLC for its planned liquefied natural gas (LNG) export facility. The Sierra Club argued that the facility’s emissions would exceed National Ambient Air Quality Standards (NAAQS) and that LDEQ failed to require Commonwealth to use the best available control technology (BACT) to limit those emissions.Before the United States Court of Appeals for the Fifth Circuit, LDEQ argued that the court lacked jurisdiction to hear the case, asserting that the claim arose under state law, not federal law. However, the court found that it had jurisdiction to review the petition because when LDEQ issued the permit, it was acting pursuant to federal law, not merely state law.On the merits, the court found that LDEQ did not act arbitrarily in its use of significant impact levels (SILs) to calculate which pollutants will have an insignificant effect on the NAAQS. The court also found that LDEQ did not act arbitrarily in its use of AP-42 emission factors to determine potential emissions from an LNG facility that has not yet been built. Furthermore, the court held that LDEQ did not violate its public trustee duty under Louisiana law, which requires LDEQ to evaluate and avoid adverse environmental impacts to the maximum extent possible.The court denied Sierra Club’s petition for review and affirmed LDEQ’s permitting decision. View "Sierra Club v. Louisiana Department of Environmental Quality" on Justia Law

In 2022, the California Legislature directed Pacific Gas & Electric (PG&E) to extend operations at the Diablo Canyon Nuclear Power Plant, despite PG&E's previous plans to cease operations. However, the deadline for a federal license renewal application for continued operation had already passed. PG&E requested an exemption from the U.S. Nuclear Regulatory Commission (NRC) to this deadline, which the NRC granted. The NRC found that the exemption was authorized by law, would not pose an undue risk to public health and safety, and that special circumstances were present. The NRC also concluded that the exemption met the eligibility criteria for a categorical exclusion, meaning no additional environmental review under the National Environmental Policy Act was required.Three non-profit organizations, San Luis Obispo Mothers for Peace, Friends of the Earth, and the Environmental Working Group, petitioned for review of the NRC's decision. The Ninth Circuit Court of Appeals first addressed whether it had jurisdiction to hear a direct appeal from an NRC exemption decision. The court held that it did have jurisdiction, as the substance of the exemption was ancillary or incidental to a licensing proceeding. The court also concluded that the petitioners had Article III standing to bring the case, as they alleged a non-speculative potential harm from age-related safety and environmental risks, demonstrated that Diablo Canyon would likely continue operations beyond its initial 40-year license term, and alleged members’ proximity to the facility.On the merits, the court held that the NRC’s decision to grant the exemption was not arbitrary, capricious, or contrary to law. The court also held that the NRC did not act arbitrarily or capriciously in invoking the National Environmental Policy Act categorical exclusion when issuing the exemption decision. The court concluded that the NRC was not required to provide a hearing or meet other procedural requirements before issuing the exemption decision because the exemption was not a licensing proceeding. The court denied the petition for review. View "SAN LUIS OBISPO MOTHERS FOR PEACE V. UNITED STATES NUCLEAR REGULATORY COMMISSION" on Justia Law

The case involves a dispute over the construction of an offshore wind project aimed at reducing reliance on fossil fuels. The project, proposed by Vineyard Wind 1, LLC, was expected to provide energy sufficient to power 400,000 Massachusetts homes. However, residents of Martha's Vineyard and Nantucket opposed the project, arguing that federal agencies failed to properly assess the potential impact of the project on the endangered North Atlantic right whale.Previously, the United States District Court for the District of Massachusetts had granted summary judgment in favor of the National Marine Fisheries Service (NMFS) and Vineyard Wind, rejecting the residents' challenge to a biological opinion issued by the NMFS and relied on by the Bureau of Ocean Energy Management in permitting the construction of the wind power project.In the United States Court of Appeals for the First Circuit, the residents challenged the lower court's decision, arguing that the NMFS's determination that the incidental harassment of up to twenty right whales constituted a "small number" under the Marine Mammal Protection Act (MMPA) was arbitrary, capricious, and unlawful. They also argued that NMFS's consideration of the "specified activity" and the "specific geographic region" within which that activity would occur for purposes of issuing the Incidental Harassment Authorization (IHA) to Vineyard Wind was impermissibly narrow in scope.The Court of Appeals affirmed the lower court's decision, finding that the NMFS's determination was not arbitrary or capricious and that it had properly delineated the "specific geographic region" for the purposes of the IHA. The court also found that the residents' concerns about the broader effect of the project on the right whale population were unwarranted, as the agency had considered the impact on the entire right whale population in its "negligible impact" analysis, its biological opinion, and in its participation in the Bureau of Ocean Energy Management's Environmental Impact Statement. View "Melone v. Coit" on Justia Law

A group of Nantucket residents, organized as Nantucket Residents Against Turbines, challenged the approval of the Vineyard Wind project by the U.S. Bureau of Ocean Energy Management (BOEM). The project involves the construction of a wind power facility off the coast of Massachusetts. The residents alleged that the federal agencies violated the Endangered Species Act by concluding that the project's construction would not jeopardize the critically endangered North Atlantic right whale. They also claimed that BOEM violated the National Environmental Policy Act by relying on a flawed analysis by the National Marine Fisheries Service (NMFS).The case was initially heard in the United States District Court for the District of Massachusetts, which granted summary judgment in favor of the federal agencies. The court found that NMFS and BOEM had followed the law in analyzing the right whale's current status and environmental baseline, the likely effects of the Vineyard Wind project on the right whale, and the efficacy of measures to mitigate those effects. The court also found that the agencies' analyses rationally supported their conclusion that Vineyard Wind would not likely jeopardize the continued existence of the right whale.On appeal, the United States Court of Appeals for the First Circuit affirmed the judgment of the district court. The appellate court found that the lower court had correctly interpreted the law and that the federal agencies had not violated the Endangered Species Act or the National Environmental Policy Act. The court concluded that the agencies' analyses were rational and that their conclusion that the Vineyard Wind project would not likely jeopardize the continued existence of the right whale was supported by the evidence. View "Nantucket Residents Against Turbines v. U.S. Bureau of Ocean Energy Management" on Justia Law

In this case, the Vermont Supreme Court affirmed the decision of the Vermont Public Utility Commission approving a contract under 30 V.S.A. § 248(i) for the purchase of out-of-state renewable natural gas by Vermont Gas Systems, Inc. (VGS). The contract, which was proposed to last for fourteen-and-a-half years, required VGS to purchase a minimum volume of renewable natural gas that would be produced and transported from a landfill in New York. The contract was part of VGS's efforts to invest in nonfossil gas and incorporate renewable natural gas into its gas supply to meet regulatory requirements and reduce greenhouse gas emissions.The appellant, Catherine Bock, a ratepaying customer of VGS, challenged the Commission's findings with respect to the contract’s contribution towards satisfying emissions reductions under the Vermont Global Warming Solutions Act of 2020. Bock also disputed the Commission’s finding that the contract, with a condition imposed by the Commission, would comply with least-cost planning principles.The court rejected Bock's arguments, finding that the Commission's conclusions were supported by the evidence in the record and were not clearly erroneous. The court noted that the contract was only one of VGS's strategies to reduce emissions pursuant to the Vermont Global Warming Solutions Act of 2020. It also pointed out that there was sufficient evidence to support the Commission's determination that the contract was cost-effective and consistent with least-cost planning principles. View "In re Petition of Vermont Gas Systems, Inc." on Justia Law

In this case, the District of Columbia sued Exxon Mobil Corporation and several other energy companies, alleging that these companies violated District law by making material misstatements about their products' effects on climate change. The energy companies removed the case to a federal district court, which determined it lacked jurisdiction and sent the case back to a local court. The energy companies then appealed that decision.The United States Court of Appeals for the District of Columbia Circuit affirmed the lower court's decision, holding that the case was properly remanded. The Court of Appeals held that the case did not fall under federal jurisdiction because the District of Columbia based its lawsuit on a local consumer protection statute, not a federal cause of action. The energy companies' arguments essentially amounted to federal defenses, which the court held were insufficient to establish federal jurisdiction over the District's claims.The court also rejected the companies' argument that the case could be moved to a federal court under the "artful pleading" doctrine, which allows federal courts to hear cases where the plaintiff has attempted to avoid federal jurisdiction by carefully crafting their complaint to avoid mentioning federal law. The court held that this doctrine didn't apply because the energy companies couldn't rely on federal common law governing air pollution since it had been displaced by the Clean Air Act.Finally, the court rejected the companies' arguments that the case could be removed to federal court under the federal officer removal statute and the Outer Continental Shelf Lands Act. The court found that the companies failed to demonstrate a sufficient connection between their actions under color of federal office and the District's suit, and that the District's claims did not arise out of or connect with operations conducted on the Outer Continental Shelf. View "DC v. Exxon Mobil Corporation" on Justia Law

The Supreme Court affirmed in part and reversed in part the judgment of the district court ruling in favor of the Montana Environmental Information Center and Sierra Club (collectively, Conservation Groups) and vacating the Montana Department of Environmental Quality's (DEQ) permit for Westmoreland Rosebud Mining, LLC's proposed coal mine expansion, holding that the Board of Environmental Review (Board) made several errors when it upheld DEQ's findings.Specifically, the Supreme Court held (1) the district court erred in concluding that reversal of the burden of proof was prejudicial error; (2) the Board committed reversible error in limiting the Conservation Groups' evidence and argument; (3) the district court erred in determining that it was reversible error to admit certain testimony as proper rebuttal; (4) the Board erred when it concluded that no water quality standard violation could occur; (5) the Board properly considered cumulative impact of mining activity in its analysis; (6) the Board properly relied on evidence regarding aquatic life; (7) the attorney fee award was improper; and (8) the district court erred in ruling that the Board was properly included as a party on judicial review. View "Mont. Environmental Information Center v. Westmoreland Rosebud Mining" on Justia Law