Justia Energy, Oil & Gas Law Opinion Summaries
Articles Posted in Government & Administrative Law
GenOn REMA LLC v. U.S. Envtl. Prot. Agency
Portland Generating Station is a 427-megawatt, coal-fired, electricity generating plant in Northampton County, Pennsylvania, directly across the Delaware River within 500 feet of Warren County, New Jersey. The EPA found that Portland emits sulfur dioxide in amounts that significantly interfere with control of air pollution across state borders. In response to a petition under the Clean Air Act (42 U.S.C. 7408, 7409)), the EPA imposed direct limits on Portland‘s emissions and restrictions to reduce its contribution to air pollution within three years. The Third Circuit upheld the EPA actions. It was reasonable for the EPA to interpret Section 126(b) as an independent mechanism for enforcing interstate pollution control, giving it authority to promulgate the Portland Rule. The contents of the Portland Rule are not arbitrary, capricious, or abusive of the EPA‘s discretion. View "GenOn REMA LLC v. U.S. Envtl. Prot. Agency" on Justia Law
Illinois v. Chiplease, Inc.
The 1987 Public Utilities Act, 220 ILCS 5/8-403.1, was intended to encourage development of power plants that convert solid waste to electricity. Local electric utilities were required to enter into 10-year agreements to purchase power from such plants designated as “qualified” by the Illinois Commerce Commission, at a rate exceeding that established by federal law. The state compensated electric utilities with a tax credit. A qualified facility was obliged to reimburse the state for tax credits its customers had claimed after it had repaid all of its capital costs for development and implementation. Many qualified facilities failed before they repaid their capital costs, so that Illinois never got its tax credit money back. The Act was amended in 2006, to establish a moratorium on new Qualified Facilities, provide additional grounds for disqualifying facilities from the subsidy, and expand the conditions that trigger a facility’s liability to repay electric utilities’ tax credits. The district court held that the amendment cannot be applied retroactively. The Seventh Circuit affirmed. The amendment does not clearly indicate that the new repayment conditions apply to monies received prior to the amendment and must be construed prospectively. View "Illinois v. Chiplease, Inc." on Justia Law
NRG Power Marketing, LLC, et al. v. FERC
NRG petitioned for review of FERC's order approving a settlement between PJM, NYISO, ConEd, PSE&G, and others regarding transmission service agreements. NRG objected to the settlement, which gave ConEd transmission rights not available to other market participants. The court concluded that FERC did not act arbitrarily or capriciously in approving an agreement that did not conform to PJM's open-access transmission tariff and that FERC's justifications for approving the agreement were reasonable and supported by substantial evidence. Accordingly, the court denied the petition for review. View "NRG Power Marketing, LLC, et al. v. FERC" on Justia Law
Cumberland Coal Resources, LP v. MSHR, et al.
Cumberland petitioned for review of the Commission's determination that Cumberland's failure to maintain adequate emergency lifelines in its mine's escapeways was a significant and substantial violation of the Federal Mine Safety and Health Act of 1977 (Mine Act), 30 U.S.C. 814(d)(1). The court denied the petition for review, concluding that the Commission applied the correct significant and substantial standard and that substantial evidence supported its findings. View "Cumberland Coal Resources, LP v. MSHR, et al." on Justia Law
Assoc. of Battery Recyclers v. EPA, et al
Petitioners challenged the EPA's revised emissions standards for secondary lead smelting facilities. In 2012, acting pursuant to sections 112(d)(6) and 112(f)(2) of the Clean Air Act, 42 U.S.C. 7412(d)(6), (f)(2), EPA revised the 1995 emissions standards for secondary lead smelting facilities, reducing allowable emissions by 90% and requiring smelters to totally enclose certain "fugitive" emission sources. Industry petitioners first argued that the Secondary Lead Rule impermissibly regulated elemental lead as hazardous air pollutants (HAP). The court concluded, inter alia, that industry petitioners' first contention was time-barred and the second contention also failed because the Rule set HAP emissions standards at levels designed to attain the primary lead national ambient air quality standards (NAAQS), not the converse. In regards to environmental petitioners' challenges, the court concluded that environmental petitioners have shown that their members would have standing under Article III to sue in their own right. However, environmental petitioners' challenge failed on the merits. Their primary argument that, when EPA revised emissions standards under section 112(d)(6), it must recalculate the maximum achievable control technology in accordance with sections 112(d)(2) and (d)(3), was barred by NRDC v. EPA, 529 F.3d 1077 (D.C. Cir. 2008). Accordingly, the court denied in part and dismissed in part the petitions for review. View "Assoc. of Battery Recyclers v. EPA, et al" on Justia Law
Blue Ridge Env. Defense League, et al v. Nuclear Regulatory Commission, et al
This case arose from actions taken by the Commission approving an application by Southern for combined licenses to construct and operate new Units 3 and 4 of the Vogtle Nuclear Plant and an application by Westinghouse for an amendment to its already-approved reactor design on which the Vogtle application relied. After the close of the combined-license hearing record, petitioners sought to reopen the hearing to litigate contentions relating to the nuclear accident at the Fukushima Dai-ichi complex in Japan. The court held that the Commission acted reasonably in denying petitioners' contentions where the Task Force Report, studying the implications of the Fukushima accident for the United States, alone was not a "new and significant" circumstance requiring a supplemental environmental impact statement and petitioners' contentions lacked specific links between the Fukushima Accident and the Vogtle Site. Accordingly, the court denied the petitions for review. View "Blue Ridge Env. Defense League, et al v. Nuclear Regulatory Commission, et al" on Justia Law
So. California Edison Co. v. FERC
In 2007, FERC granted various rate incentives to encourage the construction of three projects by SoCal Edison. The beneficial rate treatment included incentives to be added to a base rate of return for the projects. Later that year, SoCal Edison filed revisions to its transmission tariff, pursuant to section 205 of the Federal Power Act (FPA), 16 U.S.C. 824d, to reflect changes to its transmission revenue requirements and rates, implementing the rate incentives and proposing a base return on equity (ROE). The Commission concluded that SoCal Edison's base ROE should be set at the median, rather than the midpoint as SoCal Edison proposed, of the range established by a proxy group of publicly-traded companies, and that the ROE for the locked-in period should be updated to reflect the most recently available financial data. SoCal Edison petitioned for review, challenging the Commission's conclusions. The court denied the petition as to the Commission's methodology for measuring the ROE, and the court granted the petition and remanded in view of the Commission's failure to comply with 5 U.S.C. 556(e) when it updated the ROE with information outside the record. View "So. California Edison Co. v. FERC" on Justia Law
American Petroleum Institute, et al v. SEC
Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. No. 111-203, 124 Stat. 1376, the SEC promulgated a rule requiring certain companies to disclose payments made to foreign governments relating to the commercial development of oil, natural gas, or minerals. Petitioners challenged the statute and the regulation, raising constitutional and statutory claims. The court dismissed the petition for review for lack of jurisdiction. Because petitioners have simultaneously filed a complaint in the district court, the court need not consider transferring the petition to that court. Additionally, the court's dismissal of the petition was without prejudice to petitioners' suit in the district court. View "American Petroleum Institute, et al v. SEC" on Justia Law
Bickett v. Fed. Mine Safety & Review Comm’n
Under the Federal Mine Safety & Health Act of 1977, the Secretary of Labor protects the health and safety of miners, acting through the Federal Mine Safety and Health Administration (MSHA). Regulations under the Act require mine operators to report all mine-related injuries and illnesses suffered by employees. In 2010, MSHA acted on a new and broader interpretation and informed 39 mine operators that they would be required to permit MSHA inspectors to review employee medical and personnel records during inspections. Two operators refused to provide the records. MSHA issued citations and imposed penalties. An ALJ and the Review Commission found that the demands and enforcement were lawful under 30 U.S.C. 813(h) and 30 C.F.R. 50.41. Mine employees intervened to raise personal privacy challenges. The Seventh Circuit denied a petition for review, rejecting arguments that MSHA does not have authority for the requirement; that 30 C.F.R. 50.41 is not a reasonable interpretation of the Act and was not properly promulgated; that the requirement infringes operators’ Fourth Amendment right not to be searched without a warrant; that the demands violate the miners’ Fourth Amendment privacy rights in their medical records; and that penalties imposed for noncompliance violate the operators’ Fifth Amendment due process rights. View "Bickett v. Fed. Mine Safety & Review Comm'n" on Justia Law
Mingo Logan Coal Co. v. EPA
Mingo Logan applied to the Corps for a permit under section 404 of the Clean Water Act (CWA), 33 U.S.C. 1344, to discharge dredged or fill material from a mountain-top coal mine in West Virginia into three streams and their tributaries. The Corps issued the permit to Mingo Logan, approving the requested disposal sites for the discharged materials. Four years later, the EPA invoked its subsection 404(c) authority to "withdraw" the specifications of two of the streams as disposal sites, thereby prohibiting Mingo Logan from discharging them. Mingo Logan then filed this action challenging the EPA's withdrawal of the specified sites. The court reversed the district court's grant of summary judgment to Mingo Logan and concluded that the EPA had post-permit withdrawal authority. Accordingly, the court remanded for further proceedings. View "Mingo Logan Coal Co. v. EPA" on Justia Law