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U.S. Scheduled to Exit Paris Climate Agreement on November 4

Amid raging wildfires, heavy rains, and tornadoes— all of which  have been linked to climate change—the United States is set to exit the Paris Agreement on November 4, one day after the presidential election.[1] President Trump, who has said that the global agreement to confront catastrophic climate change was a “total disaster” for the United States, formally issued the required one-year notice of withdrawal last November.[2] Former Vice President Joe Biden has stated that he would  re-enter the U.S. into the Paris agreement if he wins the 2020 election.[3]

The 2015 Paris Agreement seeks to limit the “global temperature rise this century well below 2 degrees Celsius above pre-industrial levels,” and ideally less than 1.5 degrees Celsius.[4] Nations set their own goals for reducing greenhouse gas emissions through nationally determined contributions (NDCs).[5]

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Bureau of Land Management Reduces Royalty Rates for Onshore Drilling Operators

In April, the U.S. Department of Interior’s Bureau of Land Management (“BLM”) issued guidance reducing the royalty rate for energy companies that drill for oil and gas on public land.[1] The announcement came as analysts began to understand the dire financial consequences of the COVID-19 pandemic on the oil and gas industry. BLM’s guidance aimed to provide a lifeline to the already struggling industry.[2]

The Mine Leasing Act of 1920 (“MLA”) governs the development of oil and gas on federal land.[3]  It authorizes the Secretary of the Interior to hold auctions for the subsurface rights of federal lands that contain fossil fuel deposits.[4] Under this arrangement, an energy company submits a bid for the lease, and, if successful, pays the federal government rent and royalties for its use.[5]

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Bipartisan Bill Clears Greenhouse Gas Emissions Hurdle on Hydrofluorocarbon Reduction

Republican and Democratic lawmakers have been negotiating a proposal within a senate energy bill that would result in an 85% cut to hydrofluorocarbon greenhouse gas emissions by 2035.[1] Hydrofluorocarbons (HFCs) are commonly used in refrigeration, air-conditioning, building insulation, fire extinguishing systems, and aerosols.[2] The American Energy Innovation Act (AEIA) is a bipartisan energy innovation bill targeting investment in clean energy technologies.[3] The bill’s proposed HFC amendment is a legislative response a 2017 federal court ruling striking down 2015 EPA regulations on HFCs.[4]

Despite general bipartisan support, the bill encountered hurdles related to HFC reduction and failed to move forward in March.[5]  The addition of HFC provisions to the AEIA resulted in contentious negotiations that stalled the bill, but a bipartisan agreement was reached on September 10.[6]  The HFCs amendment to the AEIA authorizes a 15-year, 85% phasedown of HFCs[7] and addresses a myriad of concerns voiced during negotiation, such as exemptions for HFC “essential uses” and the creation of 150,000 jobs through alternative manufacturing.[8]

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U.S. EPA, Some States Moving Forward With PFAS regulation

After years of collecting data that indicate the dangers of per- and poly-fluorinated alkyl substances (PFAS), the U.S. EPA and several of its state counterparts are beginning the regulatory process for these previously unregulated substances. Some state agencies have proposed PFAS legislation that seeks to regulate the substances’ concentration in everyday products and necessities through mechanisms such as drinking water limits, prohibitions on firefighting foam, and the development of groundwater and surface water quality standards.[1] U.S. EPA is still in the research and development phase of providing national recommendations.

PFAS are a group of synthetic chemicals used in manufactured goods such as Teflon, waterproof materials, and firefighting foams.[2] PFAS are ubiquitous, persist in the environment, and bioaccumulate. Studies have found that ninety-seven percent of people have PFAS in their blood stream.[3] Research indicates PFAS exposure negatively impacts human health, from immunological effects to cancer.[4]

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Proposed Ordinance Seeks to Reform How and Where Industrial Plants in Chicago are Sited

In response to the recent demolition of a coal plant in the Little Village neighborhood,[1] Mayor Lori Lightfoot introduced an ordinance to the Chicago City Council that would make it more difficult for industrial plant developments to site in and around residential areas.

The proposed legislation would require approval of a planned development for any industrial plants within six hundred and sixty feet of residential property.[2] Any industrial plants that engage in manufacturing, waste management or recycling would be subject to more scrutiny under the ordinance, such as by requiring public hearings.[3]

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Legalized Marijuana and Energy Use: A Primer

Marijuana use, whether for recreational or medicinal purposes, is growing. Because some states prohibit growing hemp plants outdoors, much of the production is indoors—an energy-intensive operation that requires grow lights, air conditioning, and dehumidification.[1]

Cannabis cultivation centers (where the plants are grown) have been likened to data centers, which are “50 to 200 times more energy-intense than a typical office building.”[2] With more states expected to legalize recreational cannabis in the next few years (medical use is currently legal in 33 states,[3] and adult recreational cannabis use is currently legal in 11 states[4]), demand for marijuana will continue to grow, bringing with it strain on energy resources.

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ComEd corruption probe: facing legal scrutiny on all sides

Commonwealth Edison Company (“ComEd”),  Illinois’ largest electric utility provider, finds itself mired in lawsuits after federal prosecutors filed criminal charges against the Company earlier this summer.

In July, federal prosecutors entered into a deferred prosecution agreement (“DPA”) with ComEd that implicated a range of actors—from ComEd executives to long-time Illinois House Speaker Michael Madigan—in a years-long bribery scheme.[1] Federal prosecutors, state regulators, and ratepayers seek to hold ComEd accountable for its conduct.

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Illinois Pollution Control Board holds hearing, receives public comment to finalize coal ash rule

On August 13 the Illinois Pollution Control Board (“IPCB”) held the first of two scheduled hearings on the Illinois Environmental Protection Agency’s (“IEPA”) proposed rule for mitigating and remediating coal ash ponds throughout the state.[1]

Coal combustion residual surface impoundments, known commonly as coal ash ponds, are repositories for the potentially harmful byproducts of coal-powered electric generation facilities.[2] Absent proper mitigation efforts, pollutants that collect in coal ash ponds can seep into and contaminate the surrounding groundwater.[3]

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Moratorium on Utility Shutoffs to Expire

In response to the COVID-19 pandemic, many states have mandated that utilities maintain service regardless of customers’ ability to pay. [1] The Illinois Commerce Commission (“ICC,” the quasi-judicial agency that regulates Illinois’s utilities), for example, issued an order requiring various customer protections, including a moratorium on utility shutoffs due to nonpayment, more generous deferred payment arrangements, and more favorable credit reporting for missed payments. [2]

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We’re back!

Hello and welcome to the 2020-21 edition of JEEL’s blog. We provide regular updates on significant developments in environmental and energy law and policy on a local, regional, national, and, at times, international level. JEEL’s team of Associate Research Editors (AREs) will cover everything from utilities and energy generation to land conservation to air and water litigation, and much more.

As always, our mission is to provide non-partisan information and analysis on the key environmental and energy law and policy topics of the day. We will remain vigilant in fulfilling that mission; posts expressing a particular viewpoint will be clearly labeled as “opinion.”

Please join me in welcoming this year’s team of AREs, whose diverse backgrounds and experiences will provide the blog with a valuable swath of insights on the environmental and energy topics of the day. They include:

Hannah Bucher
Andrea Jakubas
Fernando Silva
Sydney Weiss
Sylvia Wolak

Sincerely,

Joe Popely
Research Editor

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