In Cicero v. Pennsylvania Public Utility Commission, ___ A.3d ___, (Pa. Cmwlth., No. 910 C.D. 2022, filed July 31, 2023) (“Cicero”), the court reversed the Pennsylvania Public Utility Commission’s (PUC) approval of Aqua Pennsylvania Wastewater Inc.’s acquisition of East Whiteland Township’s wastewater system assets. The court found Aqua had not proven that the acquisition would provide affirmative public benefits and confirmed that proving net benefits outweigh detriments of a transaction remains the standard for approving fair market value (FMV) acquisitions of municipal assets. Cicero, slip op. at 21 (“[I]n every Section 1329 case, it must be shown that the affirmative public benefits that arise from and are specific to a transaction outweigh the harms of the transaction, such that approval of the transaction will ‘affirmatively promote the service, accommodation, convenience, or safety of the public in some substantial way.’”).
HMS Legal Blog
On June 30, 2022, by a 6-3 vote, the United States Supreme Court in West Virginia v. U.S. Environmental Protection Agency, 597 U. S. --- (West Virginia v. EPA), held that Section 111(d) of the Clean Air Act (42 U.S.C. § 7411) does not give the United States Environmental Protection Agency (EPA) broad authority to regulate greenhouse gas emissions from power plants as set forth in the Clean Power Plan (CPP). While the issue before the Court was narrow, the Court’s application of the “major questions doctrine” (whereby a court will not defer to an agency’s interpretation of a statutory provision in circumstances where the case involves an issue of deep economic or political significance) to invalidate the EPA’s exercise of authority will likely have significant consequences for federal agencies and the entities they regulate, particularly where an agency seeks to implement a novel regulatory program that is not explicitly authorized by statute.
An interest group claiming a broad and diverse membership has petitioned the Pennsylvania Public Utility Commission (“PaPUC”) to issue a policy statement on how to recover the costs of EV charging stations in utility rates.[1] The interest group, ChargeEVC-PA, includes entities ranging from environmental groups including Sierra Club and Natural Resources Defense Council, to EV charging industry members, electric cooperatives, and utilities alike. In the Petition, the Group argues that now is the time for the Commission to act to ensure that Pennsylvania has a coherent policy that promotes and supports the adoption of Electric Vehicles (“EV”) by implementing policies (primarily utility rate structures) that encourage deployment of EV charging stations, both public and private. The Petition claims that there will be 18 million EVs on the road by 2030 and that auto manufacturers now produce more than 90 EV models, and those numbers are expected to grow dramatically in the coming years to bolster the urgency of its request. The Petition also notes the recently enacted Infrastructure and Jobs Act -- which includes $7.5 billion for EV charging infrastructure – positions Pennsylvania to receive at least $171 million to build out EV charging stations across the state’s high volume traffic corridors, as further impetus to promulgate a state-wide policy now.
Today the Department of the Interior (Department), announced that it has finalized regulations that it has been working on since 2009,[1] which aim to “protect streams, fish, wildlife, and related environmental values from the adverse impacts of surface coal mining operations and provide mine operators with a regulatory framework to avoid water pollution and the long-term costs associated with water treatment”[2] by overhauling 30-year-old regulations. Highlights include:
The Colonial Pipeline explosion that occurred on Monday, October 31, 2016, was catastrophic, killing one worker and shooting flames 100 feet high. The explosion, which was caused during an effort to fix a line breach also injured four additional workers, and crippled gasoline supplies to the northeast. This explosion on the Colonial Pipeline and the resulting severing of gasoline supply to the northeast caused the Environmental Protection Agency (EPA) to issue a waiver of the federal RFG (reformulated gasoline) requirements as promulgated under the Clean Air Act (CAA).
On June 29, 2016, President Obama, Prime Minister Trudeau, and President Nieto announced the North American Climate, Clean Energy, and Environment Partnership at the North American Leaders Summit. According to President Obama, the “ambitious and enduring” Partnership will see the United States, Canada, and Mexico “work toward the common goal of a North America that is competitive, that encourages clean growth, and that protects our shared environment.”[1]
On February 18, 2016, EPA Announced its Triennial National Enforcement Initiatives (“Initiatives”). The EPA issues these Initiatives once every three years in order to help “focus time and resources on national pollution problems” according to Cynthia Giles, assistant administrator for enforcement and compliance assurance at EPA. The latest round of Initiatives will begin on October 1, 2016 and once again will list natural gas producers and water authorities as targets for EPA inspections and enforcement.
On June 2, the EPA released its much anticipated proposed rule mandating a reduction in carbon emissions from existing power plants.[1] The rule requires an overall national decrease in carbon emissions by 30% from existing plants by 2030. The proposed rule instructs states to submit plans to achieve state specific goals for emission reductions. Alternatively, states may collaborate with other states and submit a joint plan. Plans must be submitted by 2017, or 2018 if collaborating with other states.[2]
On January 2, 2014 the Pennsylvania Public Utility Commission and Department of Environmental Protection (“Applicants”) filed an Application for Reargument of Robinson Township,1 in the Pennsylvania Supreme Court, requesting reconsideration of the December 19, 2013 plurality opinion and remand to the Commonwealth Court for an evidentiary hearing and findings of fact. The Applicants argue that the plurality of the Court, in applying its newly coined Environmental Rights Amendment balancing test, adopted novel and unsupported findings of fact, contrary to established Supreme Court principle against taking on a fact finding role in its appellate jurisdiction. Robinson Township, et al., (“Townships”) answer that no disputed facts were necessary to the Court’s balancing test, and in the alternative, judicial estoppel precludes Applicants from requesting an evidentiary hearing because Applicants successfully argued in the Commonwealth Court that the Act’s constitutionality was purely a question of law. Applicants also request remand to have the Commonwealth Court determine whether the unconstitutional set back provisions are severable from the rest of Act 13.
The Pennsylvania Supreme Court held key provisions of Act 13 unconstitutional under the Environmental Rights Amendment (ERA) of the Pennsylvania Constitution in a plurality opinion on December 19, 2013. Act 13 was designed to streamline regulation of the oil and gas industry by setting statewide zoning standards and administrative review procedures, which posed significant financial ramifications for non-compliant municipalities. The Court specifically held that the provisions mandating municipal zoning standards, such as permitting industrial oil and gas operations as a use of right in every zoning district throughout the state, are unconstitutional. These provisions were overturned because the legislature has abrogated constitutionally proscribed municipal duties to protect the rights guaranteed by the ERA. The Court also held that provisions of the act imposing a waiver process for mandatory setback from waterways, administered by DEP, also violated the ERA.
EPA has posted its bio diesel standards for 2012. As part of the EPA’s mandate to march the U.S. toward energy independence, the EPA establishes the minimum bio fuel requirements that manufacturers must meet each year. The new bio standards are out and they equate to an aggressive total renewable fuel volume of 9% of all fuels sold.