Justia Government & Administrative Law Opinion Summaries

The Supreme Court dismissed the appeal brought by the Office of Ohio Consumers’ Counsel (OCC) and the Ohio Manufacturers’ Association Energy Group (OMAEG) challenging the Public Utility Commission’s decision to approve the third electric-security plan (ESP) of Ohio Power Company, holding that OCC and OMAEG failed to demonstrate prejudice or harm caused by the ESP order.On appeal, OCC and OMAEG argued that the Commission’s approval of the Power Purchase Agreement Ride as a component of the ESP was reversible error. The Supreme Court dismissed the appeal, holding (1) OCC failed to demonstrate that ratepayers suffered actual harm or prejudice from the ESP order; and (2) this Court declines to address the claims that ratepayers were at risk of imminent or future harm rising from the ESP order. View "In re Application of Ohio Power Co." on Justia Law

The district court awarded summary judgment to the state and entered an injunction that required DOE to remove not less than one metric ton of defense plutonium from the State within two years. The Fourth Circuit held that the district court properly enforced the statutory responsibilities imposed on the DOE by Congress and that it also appropriately crafted and entered the injunction. The court rejected the DOE's contention that the principles governing mandamus proceedings, as well as fundamental principles of injunctive relief, control the award of an injunction under the Administrative Procedure Act. The court held that the district court, in carefully crafting the injunction, gave full consideration to the positions of the parties and the record. Therefore, the district court did not abuse its discretion or improperly burdened the DOE by imposing 50 U.S.C. 2566(c)'s two-year removal time frame. View "South Carolina v. United States" on Justia Law

Applicant LK Holdings, LLC appealed the Public Utility Commission’s dismissal of its application for a certificate of public good for a proposed group net-metered photovoltaic electric power system. The Commission dismissed the petition as incomplete because applicant failed to provide notice to adjoining landowners that its application had been filed. Finding no reversible error, the Vermont Supreme Court affirmed. View "In re Petition of LK Holdings, LLC" on Justia Law

A group of electrical generators and trade groups of electrical generators challenged the constitutionality of New York's Zero Emissions Credit (ZEC) program. The ZEC program subsidizes qualifying nuclear power plants with ZECs: state‐created and state‐issued credits certifying the zero‐emission attributes of electricity produced by a participating nuclear plant.The Second Circuit affirmed the district court's dismissal and held that the ZEC program was not field preempted because plaintiffs failed to identify an impermissible "tether" under Hughes v. Talen Energy Marketing, LLC, 136 S. Ct. 1288, 1293 (2016), between the ZEC program and wholesale market participation; the ZEC program was not conflict preempted because plaintiffs have failed to identify any clear damage to federal goals; and plaintiffs lacked Article III standing to raise a dormant Commerce Clause claim. View "Coalition for Competitive Electricity v. Zibelman" on Justia Law

The DC Circuit granted ANR's petition for review challenging FERC's decision refusing to allow ANR to charge market-based rates, as opposed to cost-based rates, for its natural gas storage services. The court held that FERC acted arbitrarily and capriciously because it did not provide any reasonable justification for allowing DTE affiliates but not ANR to charge market-based rates. Furthermore, FERC's market-power analysis was internally inconsistent. The court also held that ANR's remaining contentions lacked merit. The court remanded for further proceedings. View "ANR Storage Co. v. FERC" on Justia Law

Regional transmission organizations manage the interstate grid for electricity, conduct auctions through which many large generators of electricity sell most or all of their power, and are regulated by the Federal Energy Regulatory Commission (FERC) Illinois subsidizes nuclear generation facilities by granting “zero emission credits,” which generators that use coal or gas to produce power must purchase from the recipients at a price set by the state. Electricity producers and municipalities sued, contending that the price‐adjustment aspect of the system is preempted by the Federal Power Act because it impinges on the FERC’s regulatory authority. They acknowledge that a state may levy a tax on carbon emissions; tax the assets and incomes of power producers; tax revenues to subsidize generators; or create a cap‐and‐trade system requiring every firm that emits carbon to buy credits from firms that emit less carbon. They argued that the zero‐emission‐credit system indirectly regulates the auction by using average auction prices as a component in a formula that affects the credits' cost. The Seventh Circuit affirmed summary judgment for the defendants. Illinois has not engaged in discrimination beyond that required to regulate within its borders. All Illinois carbon‐emitting plants need to buy credits. The subsidy’s recipients are in Illinois. The price effect of the statute is felt wherever the power is used. All power (from inside and outside Illinois) goes for the same price in an interstate auction. The cross‐subsidy among producers may injure investors in carbon‐ releasing plants, but only plants in Illinois. View "Village of Old Mill Creek v. Star" on Justia Law

FERC acted arbitrarily and capriciously in denying a complaint brought by the Turlock and Modesto Irrigation Districts alleging that PG&E breached agreements between the parties. The Ninth Circuit granted the petition for review of FERC's orders and held that FERC misinterpreted the definition of "Adverse Impact" to the service territories of the Districts, and thus improperly disposed of the Districts' complaints without determining whether changes to the Remedial Action Scheme may result in reductions in transmission over the California-Oregon Transmission Project. The panel also held that FERC applied the wrong standard for initiating a study when making its factual findings. The panel directed FERC on remand to apply the broader definition of Adverse Impact that included reductions in import capability over the California-Oregon Transmission Project and the proper standard for requesting a study in determining whether PG&E breached the Interconnection Agreements. View "Turlock Irrigation District v. FERC" on Justia Law

An oil and gas lessee conducted drilling activity on the last day of the lease term; the lease provided that such activity would extend the term. Two days later, however, the Department of Natural Resources (DNR) sent the lessee a notice that his lease had expired. The lessee suspended drilling activities and asked DNR to reconsider its decision and reinstate the lease. DNR reinstated the lease several weeks later. The lessee contended that the reinstatement letter added new and unacceptable conditions to the lease, and pursued administrative appeals. Six months later DNR terminated the lease on grounds that the lessee had failed to diligently pursue drilling following the lease’s reinstatement. The superior court reversed DNR’s termination decision, finding DNR had materially breached the lease by reinstating it with new conditions. Both DNR and the lessee appealed to the Alaska Supreme Court. The Supreme Court concluded that although DNR breached the lease in its notice of expiration, it cured the breach through reinstatement. And DNR’s subsequent decision to terminate the lease was supported by substantial evidence that the lessee failed to diligently pursue drilling activities following reinstatement. Further, the Court concluded neither DNR nor the superior court erred in failing to address the lessee’s damages claim. The Supreme Court reversed the superior court’s decision reinstating the lease and affirmed DNR’s termination decision. View "Alaska, Dept. of Natural Resources v. Alaskan Crude Corporation" on Justia Law

Ankor Energy, LLC, and Ankor E&P Holdings Corporation (collectively, "Ankor") appealed a circuit court's grant of a motion for a new trial in favor of Jerry Kelly, Kandace Kelly McDaniel, Kelly Properties, LLP, and K&L Resources, LLP (collectively, "the Kellys"). In 2010, Renaissance Petroleum Company, LLC, drilled two oil wells in Escambia County, Alabama. The Kellys owned property in Escambia County and entered into two leases with Renaissance. The leases included property near the two wells. In December 2010, Ankor acquired an interest in Renaissance's project and leases in Escambia County. In January 2011, Renaissance and Ankor petitioned the Oil and Gas Board ("the Board") to establish production units for the two wells. In February 2011, the Board held a hearing to determine what property to include in the production units. The Kellys were represented by counsel at the hearing and argued that their property should be included in the production units. The Board established the production units for the two wells but did not include the Kellys' property. Renaissance continued to operate the project until May 2011, when Ankor took over operations. In December 2011, Ankor offered to request that the Board include the Kellys' property in the production units. Ankor took the position that it had not drained any oil from the Kellys' property, and Ankor offered to pay royalties to the Kellys but only after the date the Board included the Kellys' property in the production units. The Kellys did not accept the offer, and later sued, listing multiple causes of action and alleging Ankor failed to include their property in the production units presented to the Board, knowing that their property should have been included. After review, the Alabama Supreme Court reversed the trial court's order granting the Kellys' motion for a new trial based on juror misconduct; the matter was remanded for the trial court to reinstate the original judgment entered on the jury's verdict in favor of Ankor. View "Kelly v. Ankor Energy, LLC" on Justia Law

The Fourth Circuit affirmed the district court's dismissal of plaintiffs' action against Mountain Valley Pipeline, FERC, and the Acting Chairman of FERC, challenging the constitutionality of various provisions of the Natural Gas Act. The court held that it need not reach the merits of the challenges because the claims must be dismissed for lack of subject matter jurisdiction. The court explained that, under the two-step analysis in Bennett v. SEC, 844 F.3d 174 (4th Cir. 2016), Congress intended to divest district courts of jurisdiction to hear the claims pursued by plaintiffs and instead intended those claims to be brought under the statutory review scheme established by the Natural Gas Act. View "Berkley v. Mountain Valley Pipeline, LLC" on Justia Law