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BLM Poised to Expand Renewable Energy Development on Federal Lands Despite Revoking Amendments to Desert Renewable Energy Plan

The Biden administration recently issued a decision walking back proposed amendments to the Bureau of Land Management’s (BLM) Desert Renewable Energy Conservation Plan (DRECP)[i] which, if adopted, would have opened 800,000 acres of land in the California desert for renewable energy development.[ii] Conservation advocates praised the decision while renewable energy developers lamented the loss of an opportunity to expand solar and wind generation in the region.[iii]

Developed during the Obama Administration, the DRECP sets aside nearly 11 million acres of public lands in the California desert for renewable energy development and conservation projects.[iv] Billed as a collaboration between federal and state partners including the California Energy Commission, California Department of Fish and Wildlife, BLM, and U.S. Fish and Wildlife Service, the DRECP seeks to capitalize on the region’s abundant sun, wind, and geothermal resources while also preserving the area’s ecological diversity.[v]

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Analyzing Three Major Priorities under New FERC Chair Glick

Soon after taking office, President Biden nominated Richard Glick, a Democratic commissioner on the Federal Energy Regulatory Commission (FERC), as the Commission’s new chair.[i] Though the Commission is expected to maintain a Republican majority until Commissioner Neil Chatterjee’s term ends June 30, Glick has begun shifting the priorities of FERC, which regulates the interstate transmission and sale of electricity, natural gas, and oil, to align with President Biden’s ambitious energy and environmental goals.[ii] The following examines Glick’s three main priorities under the new administration, each of which could substantially change the energy regulatory landscape.

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General Iron Faces Challenges as Southside Community Demands Environmental Justice

General Iron has been making headlines for more than a year because of its pollution issues and recent attempt to relocate. RMG, General Iron’s parent company, has closed its long time North Branch-located metal shredding and recycling operation.[1] For many North Side neighbors, the facility’s closure was a win after a years-long battle to close the facility over environmental health and safety concerns from the facility’s operations, such as two explosions over the past five years.[2]

But there has been significant public outcry against General Iron’s plans to relocate to the Southeast side of Chicago at 116th and Burnham Street. Coalitions of Southeast side residents have been protesting for months, advocating for better air quality and preventing the relocation of General Iron to their neighborhood. The Natural Resource Defense Council has drawn national attention to the facility’s explosions, contribution to air pollution, and desire to move to a predominantly Latinx neighborhood.[3]

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Did Joliet Make the Right Choice for its Drinking Water Supply?

The city of Joliet (“City”), the fourth largest city in Illinois, has decided to secure its drinking water from Chicago instead of Hammond, Indiana.[i] Joliet has historically been dependent on groundwater, pumping from the Ironton Galesville aquifer at an unsustainable rate.[ii] The City has known since the 1960s that the pumping rate exceeds the rate of recharge into the aquifer.[iii] Estimates show the aquifer will likely run dry by the year 2030, forcing the City to seek out alternatives.[iv]

Joliet examined fourteen alternative water sources in Phase I of its exploration.[v] During Phase II, five sources were studied in more detail to replace the existing water source in Joliet, including several municipal Lake Michigan intake systems and the Kankakee and Illinois Rivers.

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Oil and Gas Royalty Rates on Public Lands Under Review by Biden Administration

President Biden’s climate plans include a review of federal and state royalty rates paid by private companies for access to fossil fuel reserves underneath public lands.[i] On January 27, Biden issued Executive Order 14008, “Tackling the Climate Crisis at Home and Abroad,” urging aggressive domestic policy directives.[ii]

The Order directed the Secretary of the Interior to pause the issuance of new oil and gas leases for drilling rights on federal lands until the Secretary completes a “comprehensive review” of oil and gas permitting requirements.[iii] The Secretary subsequently issued Order No. 3395 (“the Order”), which directed the pause on approving new leases for fossil fuel extraction on federal lands and ordered the comprehensive review of federal royalty rates.[iv]

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Biden’s Moratorium on Public Lands Drilling Leases will have a Muted Impact–at Least in the Short-term

One week after his inauguration, President Biden issued Executive Order 14008, “Tackling the Climate Crisis at Home and Abroad” (the Order), a move consistent with the progressive environmental platform he championed during his campaign.[i] The Order lays out aggressive domestic policy mandates and reaffirms the Biden Administration’s commitment to leading the global effort to combat the climate crisis.[ii]

As part of the sweeping domestic policies set forth in the Order, President Biden directed the Secretary of Interior (the Secretary) to pause new oil and gas leases on public lands and offshore waters.[iii] The Order does not specify the length of the moratorium, but does prohibit the issuance of any new leases until the Secretary conducts a “comprehensive review” of the current oil and gas permitting requirements under law.[iv]

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Consent Decree Requires EPA to Comply with Clean Air Act Obligations

A California federal court recently approved an agreement between the United States Environmental Protection Agency (“EPA”) and the Center for Biological Diversity (the “Center”) that requires EPA to take affirmative steps to ensure that eight states have plans in place to reduce emissions from their oil and gas extraction areas as mandated by the Clean Air Act (“CAA” or “Act”).[i]

Emphasizing health hazards like asthma and reduced lung function that can develop in people who endure prolonged exposure to ground-level ozone (i.e., smog), the Center noted that the agreement will likely improve the health of residents who live closest to the extraction areas.[ii] The Center estimates that as many as 70 million people live in these areas and are at the greatest risk of exposure to harmful asthma-causing smog from oil and gas extraction operations.[iii]

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A Tale of Two Energy Bills in Springfield

Illinois legislators are evaluating two different proposed clean energy bills that would accelerate renewable energy growth in the state. One bill, the Clean Energy Jobs Act (CEJA) would focus on consumer protection, expanding energy efficiency programs, increasing EV charging stations and protecting existing clean energy jobs in the state.[1] The second bill, Path to 100, focuses more on funding clean energy jobs.[2] Both bills seek to ensure Illinois achieves 100 percent renewable energy by 2030.[3]

CEJA would continue to fund and expand programs established by the 2014 Future Energy Jobs Act (FEJA),[4] which has lowered the cost of Illinois energy bills from some of the highest in the country to some of the lowest.[5] Funding from the 2014 Act is running low, and CEJA would protect thousands of clean energy jobs by bolstering funding for those programs.[6] The most ambitious provisions in the bill seek to achieve 100 percent carbon-free electricity by 2030 and 100 percent renewable energy by 2050.[7]

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FERC Asserts Jurisdiction Over State-Determined Carbon Pricing

The Federal Energy Regulatory Commission (FERC) has released a policy statement declaring it has jurisdiction to “incorporate a state-determined carbon price in [wholesale] markets.”[1]

FERC released the policy statement following a virtual technical conference it held on September 30 on the subject of carbon pricing in wholesale electricity markets.[2] The conference covered a range of topics, including an overview of current carbon pricing mechanisms used by states and regional coalitions, as well as operational and design issues that may arise when incorporating a carbon price into a wholesale market structure.[3]

The conference also featured a panel on the legal implications of integrating carbon pricing into wholesale markets. There, as is so often the case with a novel legal issue, the threshold question was one of jurisdiction—specifically whether and under what authority FERC has jurisdiction to implement carbon pricing.[4] Answering that question in the affirmative, FERC has taken a significant step by signaling it will not reject carbon price proposals brought by states “out of hand.”[5]

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U.S. EPA to Revise Lead and Copper Rule, but Questions Remain on its Effectiveness

In October 2019, U.S. EPA proposed a revision to the 1991 Lead and Copper Rule (LCR).[1] The New York Times obtained a final draft of the proposed revision on September 27.[2] Interest in the LCR grew after residents of Flint, Michigan were widely exposed to lead through their drinking water supply in 2014.[3]

The original rule, adopted pursuant to the Safe Drinking Water Act, requires “drinking water systems to implement corrosion control measures when the lead level is above the ‘action level’ of 15 parts per billion (ppb).”[4] The rule mandates the collection of household tap water samples, and if more than ten percent of samples exceed the lead action level of 15 ppb, municipal and regional water suppliers must begin to address the issue.[5] But if just ten percent or fewer of samples exceed the 15 ppb action level, water suppliers are not required to address those households with lead concentrations above 15 ppb–leaving some households with elevated lead levels but no corresponding requirement for water suppliers to act.[6]

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