Energy Exchange

How oil & gas states did (and did not) protect land and water in 2019

By Adam Peltz and Nichole Saunders

Regulating the day-to-day details of an oil and gas operation can be a complex task, with both regulators and operators working hard to prevent leaks, explosions and other threats to worker safety, community health and the environment. As we learn more about technical advancements in the oilfield as well as risks from various aspects of production, it is vital that the regulations requiring best practices are kept up to date.

EDF believes this process of continuous improvement is foundational for protecting land, water and communities from development-related impacts. That’s why we track what states are up to on a consistent basis. Building on our review of state progress toward this goal in 2018, we’ve gathered up the big changes states made this past year and assessed the trends.

Here are the big things we saw in 2019.

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Posted in Methane, Natural Gas, produced water / Tagged | Comments are closed

California’s new long-term gas plan is a win for customers and the environment

As California moves to decarbonize its electric grid by 2045 and implement its broader economy-wide decarbonization targets, state regulators are beginning to develop a coordinated, equitable and cost-effective plan to proactively manage the transition of the legacy gas system.

Tomorrow, the California Public Utilities Commission is set to open a new rulemaking on its long-term gas planning, the first such rulemaking since 2004 — well before the state’s greenhouse gas laws went into effect. The California energy system has evolved dramatically in the last 15 years, which is why this type of planning is so important for customers, workers, the economy, and ultimately, the success of the state’s climate goals.

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Posted in California, Natural Gas / Comments are closed

The next major ESG opportunity for investors in Europe

In recent years, institutional investors have demonstrated their formidable influence, as companies respond to investor environmental, social and governance demands and governments take note of forceful investor calls to action. Europe’s leading investors have been especially active, stepping to the vanguard to address the climate crisis with a sense of urgency and injection of ambition.

As Europe pursues its bold “Green Deal,” European investors have a powerful chance to help address a climate blind spot and policy vacuum to ensure worthy climate goals are not derailed. Investors can do so in a way that generates shareholder value while mitigating one of the largest near-term sources of climate risk. The opportunity lies in addressing methane emissions from the global oil and gas industry, which emits more than 75 million metric tons of the greenhouse gas every year.

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Posted in Europe, Methane, Methane regulatons, Natural Gas / Comments are closed

Decision by federal regulators underscores urgency of passing Illinois’ Clean Energy Jobs Act

On several occasions, we have argued that Illinois leaders should act swiftly to adopt the Clean Energy Jobs Act. Now, we see renewed evidence that the legislation needs to be adopted quickly to defend Illinois customers from skyrocketing electricity prices and protect the environment from dangerous pollution. Indeed, the clock is ticking if Illinois leaders want to prevent such an outcome.

After more than a year awaiting a decision, the Federal Energy Regulatory Commission today issued an order that pertains to PJM Interconnection’s capacity market. This market was created to ensure there is enough power reserves in the region spanning portions of Illinois, 12 other states and the District of Columbia to maintain reliability during extreme weather or other unplanned events.

Illinoisans may not realize it, but in addition paying for the energy they use, they also pay for power to be on standby for extreme events, like a polar vortex or heat wave. But they’re about to pay a lot more under this new ruling from FERC — both in electricity bills and environmental health costs.

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Posted in CEJA, Clean Energy, Illinois / Comments are closed

EPA’s methane rollback sparks opposition from a diverse group of stakeholders

Over the last few months the Environmental Protection Agency has accepted comments on its proposal to deregulate methane from the oil and gas industry. And based upon the volume and content of comments they have received, the agency should realize opposition to this proposal is both widespread and strong.

It is no surprise that more than 300,000 commenters weighed in to oppose this harmful proposal when you consider that EPA themselves admit it will lead to millions of tons of additional air pollution and potentially prevent any future federal methane regulation of hundreds of thousands of older oil and gas facilities. Not to mention that this proposal will supercharge climate change due to the fact that methane is an extremely potent greenhouse gas, responsible for a quarter of the warming that we are experiencing today, and the oil and gas sector is the largest industrial source of methane pollution.

EPA heard from EDF and other environmental groups, but they also heard from a diverse range of other powerful voices explaining why they oppose this rollback.

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Posted in Air Quality, Methane regulatons, Natural Gas / Tagged | Comments are closed

New companies oppose methane rollbacks but industry divide remains

The stakes are high for businesses to support strengthened Environmental Protection Agency methane regulations.

While there are multiple pathways to achieve a net zero carbon emissions future by 2050 in the U.S., it’s clear that the oil and gas industry can and must virtually eliminate methane emissions. Not only is methane control an environmental priority, it is the most immediate and cost-effective decarbonization option for natural gas. Action on methane is a litmus test of industry’s ability to make necessary changes, and build the muscle to support responsible public policy that cuts emissions and stimulates innovation.

The late November close of the comment period on EPA’s proposal to eliminate methane regulation and exempt large segments of industry from pollution control requirements shows a growing industry divide. A review of industry filings to EPA reveals three game changers for the politics and policy of federal methane regulation.

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Posted in Methane regulatons, Natural Gas / Comments are closed