The Bureau of Land Management (“BLM”) recently circulated a Proposed Rule on Waste Prevention, Production Subject to Royalties, and Resource Conservation (“2022 Proposal”). This iteration, as BLM acknowledges, is a revamp of its fraught 2016 attempt to issue a similar rule ostensibly aimed at reducing natural gas waste on federal and Indian leases (“2016 Rule”). The 2016 Rule was ultimately struck down two years ago as unlawful. To the Wyoming federal court, the 2016 Rule sought to regulate air emissions—a role reserved for the Environmental Protection Agency (“EPA”) and the states—rather than prevent the waste of resources through flaring and other means. Undeterred, the Biden Administration believes it has learned from and theoretically fixed the flaws in the 2016 Rule through the 2022 Proposal. The 2022 Proposal claims to focus on reducing operator costs and generating taxpayer revenue. This is a shift from the 2016 Rule, which relied on the benefits from reduced carbon emissions to justify its issuance. Nevertheless, the question to many stakeholders remains: does the 2022 Proposal still exceed BLM’s authority, or has the agency done enough to win a future legal challenge?
Legislative Updates
From Elected to Appointed: New Mexico Public Regulation Commission to Undergo Major Changes Effective January 2023
In 2020, New Mexico voters approved a Constitutional Amendment changing the PRC from five elected commissioners to three appointed commissioners. Historically, PRC commissioners were elected to serve four-year staggered terms; however, beginning January 1, 2023, PRC commissioners will be appointed to serve staggered six-year terms.…
The Government Contracting and Energy Implications of Texas Senate Bill 19: Navigating State Regulation of Corporate Firearm Policies
Companies with ESG policies – including financing parties investing in renewable energy projects – should assess the impact of Texas Senate Bill 19 on their government contracting opportunities, and should expect and prepare for heightened state regulation of corporate firearm policies in the future.
Effective September 1, 2021, Texas Senate Bill 19 prohibits government entities from contracting with companies that have policies that restrict business with the firearms industry. The bill specifically targets banks and other financial institutions that have at least ten employees and are seeking government contracts of at least $100,000. Under the bill, such institutions are required to provide written verification that they do not have practices, policies, guidance, or directives that “discriminate” against a firearm entity or firearm trade association.
Gov. Abbott Appoints New Public Utility Commissioner
The Texas Public Utility Commission has a new member with Gov. Greg Abbott’s (R) appointment of Arthur D’Andrea to a six year term. D’Andrea currently serves as assistant general counsel to Gov. Abbott and was previously an assistant solicitor general for the Texas Attorney General’s office.
This makes Gov. Abbott’s second appointment of the year, having named
Texas Legislature Passes Several Energy Bills
While the Texas 85th legislative session began with the filing of several bills on a diverse range of energy issues, few had made it into law when the session ended on May 29, 2017. The House and Senate passed legislation that impacts wind generation facilities, electric utility rate-setting and the General Land Office’s retail electricity…
Texas PUC Chairman Announces Early Departure
At the start of today’s Public Utility Commission of Texas (PUCT) open meeting, Chairman Donna Nelson announced that May 15, 2017 will be her final day at the commission. This is a month before she was speculated to be leaving the commission. In order to fill her vacant space, the Governor must appoint a replacement.
While the…