The Inflation Reduction Act of 2022 (IRA) builds upon recent incentives for investment in hydrogen by encouraging producers and end users of clean hydrogen to continue developing clean hydrogen infrastructure. This article provides an overview of the incentives and how they may be accessed.
Continue Reading The Inflation Reduction Act: The Incentives Are in the Details for Hydrogen Producers
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?
Continue Reading Take Two: Bureau of Land Management Attempts Another Natural Gas Waste Reduction Rule
The Public Utility Commission of Texas (Commission) plays a vital role in regulating the Electric Reliability Council of Texas (ERCOT) wholesale market, and retail energy markets throughout all of Texas. This article identifies key projects and initiatives at the Commission that are ongoing in 2022 and have a major impact on the electric power grid and energy markets in Texas. The Commission continues to move rapidly as it implements the 2021 post-Uri legislative mandates, and we expect it to continue changing regulations affecting a wide swath of the market and the ERCOT system to bolster reliability. Everyone engaged in the ERCOT market should continue to pay close attention to these reforms. Husch Blackwell is following these key matters at the Commission and represents or advises clients on many of them. We are happy to answer any questions related to any item outlined below.
Continue Reading Update on 2022 Activity at the Texas Public Utility Commission
The Environmental Protection Agency (“EPA”) released its most recent proposal for controlling greenhouse gas emissions produced by the oil and gas industry earlier this month. The supplemental proposal builds upon the comments received by EPA in response to its proposed emission-control rules issued under Section 111 of the Clean Air Act (“CAA”) on November 15, 2021. In particular, the supplemental proposal revises and expands the stringent emissions control program introduced one year ago for new and existing sources. The supplemental proposal, however, raises questions regarding the implementation of existing greenhouse gas reporting and fee requirements under the Inflation Reduction Act (“IRA”).
Continue Reading Updated Methane Regulations for Oil and Gas Facilities: Key Takeaways from the EPA’s Supplemental Proposal and Request for Comments
Regulated energy sector entities routinely submit confidential and proprietary business information to Texas state agencies, including the Railroad Commission (Texas’s incongruously named oil and gas regulator), the General Land Office, the Public Utility Commission, and the Electric Reliability Council of Texas (“ERCOT”), often assuming it is “for regulators’ eyes only.” But Texas agencies have limited power to prevent the disclosure of information sought pursuant to the Public Information Act (“PIA”).
Continue Reading Preventing Texas Regulators from Disclosing Energy Companies’ Proprietary Information
Confirming landowners’ signatory authority is crucial when preparing renewable energy leases or conducting due diligence in a renewable energy financing transaction. It is not enough to rely on a landowner’s word that he or she owns a proposed project area and has the right to encumber it with a renewable energy lease. While some leases include language certifying that the landowner executing the agreement has signatory authority, failing to properly confirm that authority can result in title issues, potentially requiring lease amendments or resulting in the denial of title insurance.
Continue Reading Sign Here: Signatory Authority in Texas Renewable Energy Land Leases
On November 3, 2022, the Internal Revenue Service (IRS) issued three notices (“November 3 Notices”) requesting public input on the climate and clean energy incentives contained in the Inflation Reduction Act (“IRA”). The November 3 Notices request comments by December 2, 2022, on the amendments, extensions, and enhancements of the IRA’s energy tax benefits. The November 3 Notices follow an initial set of six notices that were issued by the IRS on October 5, 2022 to seek public input on other aspects of the energy tax incentives contained in the IRA.
Continue Reading IRS Seeks Public IRA Comments by December 2
Major changes are ahead for the New Mexico Public Regulation Commission (PRC). 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 commissioners will be appointed through a nomination process involving a PRC Nominating Committee, the governor, and the state senate.
Continue Reading From Elected to Appointed: New Mexico Public Regulation Commission to Undergo Major Changes Effective January 2023
On September 21, 2022, the Senate passed the Kigali Amendment to the 1987 Montreal Protocol (which had been signed by former President Obama in 2016) by a vote of 69 to 27, reaffirming U.S. commitment to the reduction of hydrofluorocarbons (“HFCs”) through multiple processes (some of which are already causing shifts in import and export markets, as well as in the consumer market).
Continue Reading Kigali Amendment Reaffirms U.S. Environmental Commitment
On September 22, 2022, the U.S. Department of Energy (DOE) announced a $6-7 billion Funding Opportunity to begin the development of a nationwide program for the planning, construction, and operation of commercial-scale Regional Clean Hydrogen Hubs, known colloquially as “H2Hubs.” H2Hubs are defined as “a network of clean hydrogen producers, potential clean hydrogen consumers, and connective infrastructure located in close proximity.” The DOE’s effort results from the Bipartisan Infrastructure Law (BIL) passed in 2021. The BIL appropriates $8 billion over a five-year period (2022-2026) and amends the Energy Policy Act of 2005 to establish a program to develop four to ten regional H2Hubs.
Continue Reading The Pathway to U.S. Hydrogen Development is Established