On October 22, 2013, the Department of Interior’s Office of Natural Resources Revenue (“ONRR”) announced that it had assessed civil penalties in the amounts of $2.719 million to Apache Corporation (“Apache”) for the “knowing or willful” submission of false information, and $648,000 to XTO Energy (“XTO”) for “knowing or willful” failure to permit an audit. ONRR’s announcements mark the 11th and 12th civil penalties ONRR has announced this year.
EPA News
EPA Issues New CO2 Performance Standard Proposal for New Electric Generators
On September 20, 2013, the Environmental Protection Agency (“EPA”) issued a new proposal to limit carbon dioxide (“CO2”) emissions from new coal-fueled and natural gas-fueled electric generating units. The proposal replaces a proposal EPA made last year.
PHMSA Doubles Maximum Penalties for Pipeline Safety Violations
On September 25, 2013, the Pipeline and Hazardous Materials Safety Administration (“PHMSA”) released a final rule increasing the civil penalty maximums for pipeline safety violations. The rule increased the maximum penalties from $100,000 to $200,000 per day for each violation, and from $1,000,000 to a $2,000,000 maximum for a related series of violations.
Courts of Appeals Issues NAAQS and Regional Haze Opinions
On July 23, 2013, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) affirmed the Environmental Protection Agency’s (“EPA”) primary National Ambient Air Quality Standards (“NAAQS”) for ozone that were adopted during the Bush Administration in 2008. In addition, the D.C. Circuit reversed, but left in place pending remand, EPA’s secondary ozone standards.
BPA Administrator Placed on Administrative Leave; DOE Inspector General Issues Management Alert Regarding Prohibited Personnel Practices at BPA
On July 15, 2013, Bonneville Power Administration’s (“BPA”) Administrator William Drummond was placed on administrative leave and acting deputy administrator Elliot Mainzer was designated as acting administrator on an interim basis. BPA’s Chief Operating Officer, Anita Decker, was also placed on administrative leave. Separately, on July 16, 2013, Department of Energy (“DOE”) Inspector General Gregory Friedman issued a “Management Alert” concerning allegations of prohibited personnel practices at BPA, including practices that disadvantaged veterans and other applicants, and personnel actions against certain employees who cooperated with the DOE’s Office of Inspector General during its special inquiry of BPA’s personnel practices.
President Obama Announces Climate Action Plan
On June 25, 2013, President Barack Obama released a sweeping climate plan (“Plan”) using his authority to both address greenhouse gas (“GHG”) emissions and to prepare for the impacts of climate change. The plan, which consists of a wide variety of executive actions, has three key pillars: (1) cut carbon pollution in America; (2) prepare the United States for the impacts of climate change; and (3) lead international efforts to combat global climate change.
Moniz Confirmed as Secretary of Energy; McCarthy Nomination Moves to Senate Floor
On May 16, 2013, the U.S. Senate confirmed Dr. Ernest Moniz as the next Secretary for the Department of Energy (“DOE”). With a unanimous vote of 97-0, Dr. Moniz succeeds Secretary Steven Chu. Dr. Moniz was previously the Under Secretary for DOE from 1997 until 2001, and served as a professor of Physics and Engineering at the Massachusetts Institute of Technology prior to his nomination (see March 11, 2013 edition of the WER).
EPA Updates New Source Emission Limits under MATS
On March 29, 2013, the Environmental Protection Agency (“EPA”) issued updates to its emissions limits for new power plants under the mercury and air toxic standards (“MATS”). The less stringent limits are a result of new information and analysis the EPA received during the reconsideration period of MATS. The EPA stated that the revisions should not alter the control technologies that owners and operators must install to comply with MATS.
Environmental Groups Seek Supreme Court Review of CSAPR
On March 29, 2013, several environmental advocacy groups (“Petitioners”) filed a Writ of Certiorari with the Supreme Court of the United States (“Supreme Court”), requesting review of the U.S. Court of Appeals for the District of Columbia Circuit’s (“D.C. Circuit”) vacatur of the Cross-State Air Pollution Rule (“CSAPR”). Petitioners sought review on grounds that the D.C. Circuit exceeded its statutory authority in its decision, and its decision was inconsistent with court precedent.
President Obama Issues Executive Order Aimed at Improving Cybersecurity for Critical Infrastructure
On February 12, 2013, President Barack Obama issued an Executive Order (“EO”) and an accompanying Presidential Policy Directive, PPD-21 (“PPD”) in an effort to improve cybersecurity for critical infrastructure. Specifically, the EO requires improved cybersecurity information sharing between the federal government and the owners and operators of critical infrastructure – certain vital systems and assets to the U.S. – and the development by the federal government of standards to reduce cyber risks to critical infrastructure.