Justia Government & Administrative Law Opinion Summaries

In 2021, petitioners challenged the Federal Energy Regulatory Commission’s (FERC) authorization of two liquefied natural gas (LNG) export terminals in Cameron County, Texas, and a related pipeline. The court partially granted the petitions and remanded the case to FERC without vacating the orders. On remand, FERC reauthorized the projects, prompting petitioners to challenge the reauthorization, arguing non-compliance with the National Environmental Policy Act (NEPA) and the Natural Gas Act (NGA).Previously, the U.S. Court of Appeals for the District of Columbia Circuit found FERC’s environmental justice analysis inadequate and required FERC to either justify its chosen analysis radius or use a different one. FERC was also directed to reconsider its public interest determinations under the NGA. On remand, FERC expanded its environmental justice analysis but did not issue a supplemental Environmental Impact Statement (EIS), which petitioners argued was necessary. FERC also did not consider a new carbon capture and sequestration (CCS) proposal as part of its environmental review.The U.S. Court of Appeals for the District of Columbia Circuit found FERC’s failure to issue a supplemental EIS for its updated environmental justice analysis arbitrary and capricious, as the new analysis provided a significantly different environmental picture. The court also held that FERC should have considered the CCS proposal as a connected action or a reasonable alternative. Additionally, the court found FERC’s rejection of air quality data from a nearby monitor arbitrary and capricious. The court vacated FERC’s reauthorization orders and remanded the case for further proceedings, requiring FERC to issue a supplemental EIS and consider the CCS proposal. View "City of Port Isabel v. FERC" on Justia Law

The plaintiffs, property owners in West Virginia, filed a lawsuit against the current and former owners of abandoned oil and gas wells on their properties. They sought damages for the defendants' failure to plug the wells, alleging common law nuisance, trespass, and negligence. The defendants argued that the West Virginia Department of Environmental Protection (WVDEP) was responsible for well plugging and that WVDEP had approved transactions between the defendants, which purportedly relaxed their statutory duty to plug the wells. They claimed WVDEP was an indispensable party under Federal Rule of Civil Procedure 19 and, because it could not be joined due to sovereign immunity, sought judgment in their favor under Rule 12(c).The United States District Court for the Northern District of West Virginia denied the defendants' motion, ruling that WVDEP was not a necessary and indispensable party under Rule 19. The court concluded that it could grant the plaintiffs damages on their common law claims without implicating the State’s interests. The defendants then filed an interlocutory appeal, arguing that the district court's order was reviewable under the collateral order doctrine, as it effectively denied WVDEP sovereign immunity.The United States Court of Appeals for the Fourth Circuit reviewed the case and determined that the district court's order did not rule on any immunity issue but only on whether WVDEP was a necessary and indispensable party under Rule 19. The appellate court found that the order did not satisfy the requirements of the collateral order doctrine and was not a final decision. Consequently, the court granted the plaintiffs' motion to dismiss the appeal for lack of jurisdiction. View "McEvoy v. Diversified Energy Company PLC" on Justia Law

During Winter Storm Uri, Southwest Power Pool, Inc. (Southwest) contacted Associated Electric Cooperative, Inc. (the Cooperative) to purchase emergency energy. The Cooperative provided the energy, and Southwest compensated the Cooperative according to their existing written contract, known as the Tariff, filed with the Federal Energy Regulatory Commission (FERC). The Cooperative claimed the payment was insufficient and not in line with a separate oral agreement made during the storm. Southwest refused to pay more than the Tariff rate, leading the Cooperative to file a lawsuit in federal district court for breach of contract and equitable claims.Southwest petitioned FERC for a declaratory order asserting primary jurisdiction over the dispute and confirming that the payment was appropriate under the Tariff. FERC agreed, and the Cooperative's petition for rehearing was denied. The Cooperative then sought review from the United States Court of Appeals for the Eighth Circuit, which denied the petitions, affirming FERC's primary jurisdiction and the applicability of the Tariff rate.The United States District Court for the Western District of Missouri granted Southwest’s motion to dismiss the Cooperative’s complaint, agreeing with FERC’s jurisdiction and the Tariff’s control over the payment terms. The district court also denied Southwest’s motion for attorneys’ fees and costs. The Cooperative appealed the dismissal, and Southwest appealed the denial of attorneys’ fees.The United States Court of Appeals for the Eighth Circuit reviewed the district court’s dismissal de novo and affirmed the decision, agreeing that FERC had primary jurisdiction and the Tariff controlled the payment terms. The court also affirmed the district court’s denial of attorneys’ fees, finding that the relevant contract provision did not apply to this dispute and that the district court did not abuse its discretion. View "Associated Electric Cooperative, Inc. v. Southwest Power Pool, Inc." on Justia Law

During Winter Storm Uri, Southwest Power Pool, Inc. (Southwest) contacted Associated Electric Cooperative, Inc. (the Cooperative) to purchase emergency energy. The Cooperative provided the energy and was subsequently paid by Southwest according to their existing written contract and the rates filed with the Federal Energy Regulatory Commission (FERC). The Cooperative claimed that the payment was insufficient and not in accordance with a separate oral agreement made during the storm. Southwest refused to pay more than the rate in the written contract, leading the Cooperative to file a lawsuit in federal district court for breach of contract and equitable claims.Before the district court made any determinations, Southwest petitioned FERC for a declaratory order asserting that FERC had primary jurisdiction over the dispute and that Southwest had properly compensated the Cooperative. FERC agreed, stating it had primary jurisdiction and that Southwest had appropriately compensated the Cooperative according to the filed rate. The Cooperative then petitioned for review of FERC’s order and the denial of rehearing.The United States Court of Appeals for the Eighth Circuit reviewed the case. The court held that the emergency energy transaction was governed by the existing written contract and the rates filed with FERC, not by any separate oral agreement. The court found that FERC had properly exercised primary jurisdiction over the dispute and correctly applied the filed rate doctrine, which mandates that no seller of energy may collect a rate other than the one filed with and approved by FERC. Consequently, the court denied the Cooperative’s petitions for review, affirming that Southwest had not breached its contractual obligations. View "Associated Electric Cooperative, Inc. v. FERC" on Justia Law

The Federal Energy Regulatory Commission (FERC) issued a certificate to Transcontinental Gas Pipe Line Company, LLC (Transco) to construct and operate a pipeline through several states, including New Jersey. The New Jersey Conservation Foundation and other petitioners argued that FERC overlooked significant environmental consequences and failed to consider evidence of a lack of market need for the pipeline. They also contended that FERC ignored New Jersey state laws mandating reductions in natural gas consumption.The lower court, FERC, approved the pipeline project, finding that the public benefits outweighed the adverse impacts. FERC based its decision on precedent agreements with local gas distribution companies (LDCs) and concluded that the project satisfied the Natural Gas Act (NGA). Petitioners requested a rehearing, arguing that FERC's decision was arbitrary and capricious. FERC denied the rehearing request, maintaining its position on market need and environmental impact assessments.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court found that FERC acted arbitrarily by not adequately explaining its decision regarding the significance of greenhouse gas emissions and failing to discuss possible mitigation measures. The court also held that FERC did not properly consider evidence showing that current capacity was sufficient to meet New Jersey's natural gas demands and that the precedent agreements with LDCs did not necessarily indicate market need. Additionally, the court found that FERC misinterpreted New Jersey's mandatory energy efficiency laws as unenforceable.The court vacated FERC's orders and remanded the case for further action, requiring FERC to reassess the market need and environmental impacts of the pipeline project. View "New Jersey Conservation Foundation v. FERC" on Justia Law

Exxon Mobil Corporation owned subsidiaries in Cuba that had various oil and gas assets. In 1960, the Cuban government expropriated these assets without compensating Exxon. In 1996, Congress enacted the Cuban Liberty and Democratic Solidarity Act, which allows U.S. nationals to sue those who traffic in property confiscated by the Cuban government. Exxon sued three state-owned defendants, alleging they trafficked in the confiscated property by participating in the oil industry and operating service stations.The United States District Court for the District of Columbia denied one defendant's motion to dismiss based on foreign sovereign immunity. The court held that the Cuban Liberty and Democratic Solidarity Act does not override the Foreign Sovereign Immunities Act (FSIA), and jurisdiction depends on an FSIA exception. The court found that the FSIA’s expropriation exception did not apply but that the commercial-activity exception did. The court allowed limited jurisdictional discovery for the other two defendants and later denied their motion for reconsideration.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court agreed with the district court that the Cuban Liberty and Democratic Solidarity Act does not confer jurisdiction and that the FSIA’s expropriation exception is inapplicable. However, the court concluded that the district court needed to undertake additional analysis before determining that jurisdiction exists under the FSIA’s commercial-activity exception. The court vacated the district court’s decision and remanded the case for further analysis on the applicability of the FSIA’s commercial-activity exception. View "Exxon Mobil Corporation v. Corporacion CIMEX, S.A. (Cuba)" on Justia Law

The Federal Energy Regulatory Commission (FERC) is responsible for ensuring that rates charged by interstate oil pipelines are just and reasonable. Every five years, FERC reviews the methodology, known as the Index, used to set maximum annual rate increases. In 2020, FERC conducted its five-year review and set a new Index level, which was later modified on rehearing without adhering to notice-and-comment procedures.Initially, FERC invited comments on the proposed Index, receiving input from both pipeline operators (Carriers) and customers (Shippers). FERC issued an Initial Order in December 2020, establishing an Index level higher than proposed, effective July 1, 2021. Both Carriers and Shippers sought rehearing, with Carriers requesting minor changes and Shippers challenging the Index level. FERC issued a Rehearing Order in January 2022, adopting Shippers' suggestions and setting a new, lower Index effective March 1, 2022. Shippers sought clarification on the retroactive application of the Rehearing Order, which FERC denied.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. Carriers argued that FERC failed to comply with the Administrative Procedure Act (APA) by modifying the Index without notice-and-comment procedures. The court agreed, noting that once the Initial Order's Index became effective on July 1, 2021, any substantive changes required adherence to APA procedures. The court found that FERC's modification of the Index in the Rehearing Order without such procedures was improper.The court granted Carriers' petitions for review, vacated the Rehearing Order, and ordered FERC to reinstate the Initial Order. Shippers' petitions for review were dismissed as moot due to the vacatur of the Rehearing Order. View "Liquid Energy Pipeline Association v. FERC" on Justia Law

Hudson Transmission Partners, a merchant transmission facility, previously held firm rights to draw electricity from the PJM grid and was assessed costs for certain grid improvements. In 2017, Hudson relinquished its firm rights, leading to a dispute over whether it must continue paying for previously assessed costs for lower voltage facility upgrades and economic projects under the PJM Open Access Transmission Tariff.The Federal Energy Regulatory Commission (FERC) found that Hudson must continue to pay these costs. FERC determined that the PJM Tariff dictates that prior assessments for lower voltage facility upgrades are fixed and unaffected by a change in firm rights. Additionally, the costs of economic projects are validly allocated to entities like Hudson that benefit from the energy savings, regardless of their firm rights status.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court upheld FERC's decision, agreeing that Hudson remains responsible for the previously assessed costs. The court noted that the PJM Tariff includes a saving clause that fixes the cost responsibility for lower voltage facilities unless explicitly changed, which was not the case here. The court also found that Hudson continues to benefit from the economic projects, justifying the continued cost responsibility.The court concluded that FERC's interpretation of the PJM Tariff was consistent with its prior orders and the cost-causation principle, which assigns costs based on the burdens imposed or benefits received by a party. Therefore, the court denied the petitions for review, affirming that Hudson must continue to pay the previously assessed costs for the lower voltage facility upgrades and economic projects. View "New York Power Authority v. FERC" on Justia Law

The Environmental Protection Agency (EPA) updated its regulations to ensure that the transportation fuel mix in the United States contains the required amounts of renewable fuel. The new regulations specifically address biogas-derived renewable fuel, implementing a more structured process to prevent fraud and error. The Coalition for Renewable Natural Gas, representing industry stakeholders, petitioned to overturn these changes, arguing that the new rules were too rigid and burdensome.The case was reviewed by the United States Court of Appeals for the District of Columbia Circuit. The Coalition argued that the EPA lacked authority to regulate biogas producers and that the new requirements were arbitrary and capricious. They also claimed procedural violations in the rulemaking process. The EPA defended its regulations, stating that they were necessary to ensure compliance with renewable fuel standards and to prevent fraud and double counting.The Court of Appeals found that the EPA acted within its authority under the Clean Air Act to regulate biogas producers and that the new rules were reasonable and supported by substantial evidence. The court also held that the EPA had followed proper procedures in adopting the rule. The court denied the Coalition's petition for review, upholding the EPA's updated regulations. The main holding was that the EPA's modifications to the biogas-derived renewable fuel regulations were reasonable and necessary to ensure compliance with renewable fuel standards and to prevent fraud. View "Coalition for Renewable Natural Gas v. EPA" on Justia Law

Tenaska Clear Creek Wind, LLC ("Clear Creek") sought to generate wind energy for sale in parts of Missouri, southeast Iowa, and northeast Oklahoma. Clear Creek challenged the Federal Energy Regulatory Commission's (FERC) decision to allow Southwest Power Pool, Inc. (SPP) to assign over $100 million in upgrade costs to Clear Creek for its wind turbine project. Clear Creek argued that FERC's decision was arbitrary, capricious, and contrary to precedent.Initially, Clear Creek submitted an interconnection request to Associated Electric Cooperative, Inc. (AECI) and requested Network Resource Interconnection Service (NRIS). AECI identified SPP and Midcontinent Independent System Operator, Inc. (MISO) as potentially affected systems. SPP conducted several studies, initially estimating upgrade costs at $31.2 million, which later fluctuated significantly. Clear Creek began construction based on initial studies but faced a restudy by SPP, which increased the estimated costs to $763 million, later adjusted to $102 million. Clear Creek filed a complaint with FERC, which partially granted and partially denied the complaint, requiring SPP to restudy the project using updated models. The restudy resulted in $88 million in upgrade costs.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court upheld FERC's orders, finding that SPP's methodology for assigning upgrade costs was consistent with the "but for" cost allocation principle and not arbitrary or capricious. The court also found that Clear Creek's downgrade to Energy Resource Interconnection Service (ERIS) did not moot the case, as Clear Creek retained the right to re-open the matter if it prevailed. The court concluded that FERC's decision was based on reasoned decision-making and substantial evidence, denying Clear Creek's petitions for review. View "Tenaska Clear Creek Wind, LLC v. FERC" on Justia Law