Renewable Energy on State Agendas

While the new administration shapes its policies on renewable energy development, the Governors’ Wind & Solar Energy Coalition, a bipartisan group made up of twenty state governors,* published a letter earlier this month urging the President to support the nation’s expanding renewable energy industry. The Coalition focuses on the development and distribution of solar and wind energy. One of its goals, identified in a 2008 report by the Bush Administration’s Department of Energy includes working to increase wind energy’s contribution to the nation’s electricity supply to 20% by 2030.

The Coalition’s letter makes four specific recommendations: (1) include funding for grid modernization in national infrastructure legislation; (2) adopt comprehensive long-term offshore wind development legislation; (3) increase federal funding for wind and solar research and development; and (4) streamline the permitting process to provide for better collaboration with relevant federal agencies. The Coalition also suggests creating “a new state-federal task force, perhaps in conjunction with the Federal Energy Regulatory Commission and the National Laboratories, to examine options to modernize and streamline state and federal regulatory processes,” with the goal of stimulating private sector and utility investments in the electric system.

The letter follows legislative initiatives focusing on renewable energy in several states. The Maryland Senate voted earlier this month to override Governor Larry Hogan’s veto of a bill to increase the state’s renewable energy standards from 20% to 25% by 2020.  In December, Illinois passed legislation setting a Renewable Portfolio Standard (RPS) target of 25% by 2025 and creating a community solar program, among other provisions. Also in December, Michigan passed sweeping reforms to its statewide energy policy that include increasing its target RPS to 15% by 2021.

 

* Members of the Governors’ Wind & Solar Energy Coalition include: Arkansas, California, Colorado, Delaware, Hawaii, Illinois, Iowa, Kansas, Maryland, Massachusetts, Minnesota, Montana, New York, North Dakota, Oregon, Pennsylvania, Rhode Island, South Dakota, Virginia, and Washington.

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Senate Confirms Pruitt as EPA Administrator

The United States Senate voted to confirm Oklahoma Attorney General Scott Pruitt as EPA Administrator this afternoon, by a vote of 52-46. The vote took place as scheduled and fell largely along party lines. Senator Susan Collins (R-ME) was the lone Republican to vote against Mr. Pruitt, while two Democrats, Senator Joe Manchin (D-WV) and Senator Heidi Heitkamp (D-ND) voted for him.  Senators John McCain (R-AZ) and Joe Donnelly (D-IN) did not vote. Mr. Pruitt is expected to be sworn in at 5:00 PM today.

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The Paris Agreement and the New Administration

Earlier this month, the Congressional Research Service (CRS) released its report entitled Withdrawal from International Agreements: Legal Framework, the Paris Agreement, and the Iran Nuclear Agreement.  This report examines issues around withdrawing from treaties under domestic and international law, specifically applying its analysis to the Paris Agreement and the Joint Comprehensive Plan of Action related to Iran’s nuclear program.

While there is some dispute over the procedures for withdrawing from a treaty that was entered into by the President with the advice and consent of the Senate (per the Constitution), the Obama Administration considered the Paris Agreement an executive agreement not requiring the Senate’s advice and consent.  The CRS Report concludes that there does not seem to be a restriction on unilateral withdrawal from this Agreement by the President.

However, by its terms, a party cannot actually withdraw from the Paris Agreement until November 2019.  The Report notes that the Paris Agreement is a subsidiary to the 1992 United Nations Framework Convention on Climate Change (UNFCCC), though, and withdrawal from the UNFCCC will effectively withdraw the party from the Paris Agreement. But because the George H.W. Bush Administration entered into the UNFCCC with the advice and consent of the Senate, it is unclear whether unilateral withdrawal by the President would be upheld if challenged.

Another option to change course on the Paris Agreement would be non-implementation.  The Agreement has been interpreted to not create a binding duty to take particular steps or to meet emission reduction targets.

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Congress to Examine Modernizing Energy and Environmental Policy

This week, the House Energy and Commerce Committee is turning its attention to the modernization of energy and environmental policies.  Its Subcommittee on Energy and Subcommittee on Environment will hold separate hearings, and both of these hearings will address, among other topics, the challenges and opportunities facing U.S. infrastructure.  This will give the House a chance to weigh in on the hot topic of infrastructure, on which the Trump administration and Senate Democrats recently offered their ideas.

On Wednesday, February 15, 2017, the Subcommittee on Energy will hold a hearing on Modernizing Energy and Electric Delivery Systems: Challenges and Opportunities to Promote Infrastructure Improvement and Expansion.  The House Subcommittee on Energy’s hearing will consist of two panels, with witnesses representing the energy industry, workers, and both sides of the dispute over the Dakota Access Pipeline.  The hearing will begin at 10:00 A.M. in room 2123 of the Rayburn House Office Building and will address topics ranging from cyber threats to transparency, accountability, and predictability in the energy infrastructure permitting process.

On Thursday, February 16, 2017, the Subcommittee on Environment will hold a hearing on Modernizing Environmental Laws: Challenges and Opportunities for Expanding Infrastructure and Promoting Development and Manufacturing.  The hearing will explore possible reforms to environmental laws (including, but not limited to: the Clean Air Act; the Comprehensive Environmental Response, Compensation, and Liability Act; and the Toxic Substances Control Act) to encourage investment in infrastructure and domestic manufacturing.  Witnesses at this hearing will include representatives from the National Association of Manufacturers, the U.S. Chamber of Commerce, and a Flint, Michigan, community organization, as well as the Mayor of New Bedford, Massachusetts.  The hearing is scheduled for 10:00 A.M. in room 2123 of the Rayburn House Office Building.

Not to be left out, the Senate is also looking at environmental policy this week.  The Senate Committee on Environment and Public Works is holding a hearing on the narrower topic of Oversight: Modernization of the Endangered Species Act.  This hearing will be held on Wednesday, February 15, 2017, at 10:00 A.M. in room 406 of the Dirksen Senate Office Building, and witnesses will include, among others, the Governor of Wyoming, the President and CEO of Defenders of Wildlife, and the President of the Wisconsin Farm Bureau Federation.

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Army Reverses Course, Grants Easement for Dakota Access Pipeline; Cheyenne River Sioux Tribe Seeks a Preliminary Injunction and Temporary Restraining Order

On February 8, 2017 the Army Corps of Engineers granted an easement to Dakota Access, LLC, a subsidiary of Energy Transfer Partners, allowing the Dakota Access Pipeline to cross under the Missouri River at Lake Oahe in North Dakota.  The grant of the easement reverses the Corps’ prior findings and actions with regard to the pipeline.

As previously reported, the location of the pipeline’s planned crossing under the Missouri River is located about 0.5 mile upstream from the Standing Rock Sioux Tribe’s reservation.  Last December, the Corps had issued a memorandum and an accompanying statement stating that it would not be approving the easement under the Mineral Leasing Act and that additional analysis was needed “in light of the history of the Great Sioux Nation’s dispossessions of lands, the importance of Lake Oahe to the Tribe, our government-to-government relationship, and the statute governing easements through government property.”

The Corps then published on January 18, 2017 a Notice of Intent to Prepare an Environmental Impact Statement (NOI) on the requested easement seeking comments on the scope of the environmental impact statement.

Shortly thereafter, on January 24, 2017, the President issued a Memorandum to the Secretary of the Army directing the Secretary, among other things, to instruct the Assistant Secretary for Civil Works to: (i) review and approve in an expedited manner the request for the easement, (ii) consider whether to rescind or modify the Army’s December memorandum, (iii) consider whether the Environmental Assessment issued in July 2016 satisfied NEPA requirements, (iv) review and grant requests for waivers of notice periods related to the Corps’ real estate policies and regulations, and (v) issue any approved easements or rights-of-way immediately after notice is provided to Congress pursuant to the Mineral Leasing Act.

In response to the President’s Memorandum, on February 7, 2017, the Deputy Assistant Secretary of the Army for Installations, Housing, and Partnerships issued a letter to Congress stating that it intended to grant the easement with a thirty-year term and to waive its policy to wait fourteen days after Congressional notification before granting such an easement.  The Senior Official Performing the Duties of the Assistant Secretary for Civil Works additionally issued a Memorandum rescinding the December Memorandum and declaring that the NOI would be terminated.  The next day the Army granted the easement.  The company has been reported to have begun construction “immediately after receiving the easement.”

Earlier today the Cheyenne River Sioux Tribe filed three motions in the Federal District Court for the District of Columbia seeking a temporary restraining order to halt construction on the pipeline, a preliminary injunction directing the Corps to withdraw the easement, and permission to amend their original complaint to include, among other things, the addition of a Religious Freedom Restoration Act claim, and add facts and claims that arose since their original claim was filed in October 2016.  The Cheyenne River Sioux Tribe is an Intervenor-Plaintiff in a lawsuit that was filed by the Standing Rock Sioux Tribe in July 2016 against the Army and the company.  The court will be hearing oral argument on the Temporary Restraining Order on February 13, 2017, at 2:00 PM EST.

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