Environmental Law ReSource : Environmental Lawyer & Attorney : Reed Smith Law Firm : Climate Change, Sustainability

This post was written by Nicolle Bagnell and Ariel Nieland.

Last night, the Pennsylvania House of Representatives voted 104-94 in favor of passing Senate Bill 1155, the state's first natural gas severance tax. Currently, Pennsylvania is the only Marcellus Shale state that does not impose a tax on natural gas production. The proposed tax, which is likely to be scaled back once it goes before the Senate for a vote, would also be one of the highest of its kind in the nation, at 39 cents per 1,000 cubic feet (Mcf) of natural gas. A similar severance tax currently in place in West Virginia, 5% of the value of the gas plus 4.7 cents per Mcf, is more akin to the rate favored by Pennsylvania Governor Ed Rendell. Although many opponents are concerned that the tax would kill job growth and stifle what has been seen as "one of the few bright spots in Pennsylvania's economy," supporters of the tax contend that it would enable the state to put environmental safeguards in place, while compensating Pennsylvania citizens for the use of their state's natural resources.
 

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This post was written by David Wagner.

If you missed Reed Smith's Third Quarter Teleseminar on Climate Change, feel free to listen to an audio recording of the event while watching the slideshow. The report discussed:

• U.S. Congressional activity in light of the Senate's failure to pass climate change legislation last summer;
• The likelihood that California's Proposition 23 will pass in November, how that would affect AB 32 (California's Global Warming Solutions Act), and practical implications for California businesses;
• How the U.S. Environmental Protection Agency, in attempting to regulate greenhouse gases, is trying to fill some gaps in State Implementation Plans while potentially creating new regulatory gaps in the process; and
• How the uncertainty of credits under the Clean Development Mechanism is affecting carbon allowance prices.

Our Fourth Quarter Climate Change Report is scheduled for December 16, 2010. Please contact us to sign up or look for more information on the blog.

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This post was written by David Wagner.

Please join us for our next quarterly report on climate change from 12 to 1 pm on Tuesday, September 28. In this one-hour teleseminar, Larry Demase, Jennifer Smokelin, Todd Maiden and David Wagner will provide an update on significant international, national and state issues concerning climate change and the future of greenhouse gas (GHG) regulation. Following up on Congress' failure to pass energy and climate legislation over the summer, our topics include:

• A review of two USEPA proposed rules that would help ensure USEPA’s implementation of permitting requirements for GHGs, set to take effect in January 2011. The first proposed rule identifies State Implementation Plans that do not currently apply certain requirements to GHG emitting sources, and requires them to be modified. In the second rule, EPA is proposing a Federal Implementation Plan that will apply in any state that cannot (or does not) revise its state plan by January 2011.
• A discussion on the likelihood that California's Proposition 23 will pass in November (which would postpone implementation of California's Global Warming Solutions Act, aka "AB 32"), an assessment of the true scope of Proposition 23, and practical implications for California businesses.
• A discussion on the United Nations halting issuance of carbon credits for Chinese Clean Development Mechanisms.
• An update on stalled Congressional action with regard to climate regulation.

To register for the teleseminar, please click here.

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This post was written by Nicolle Bagnell and Ariel Nieland.

A recent report from researchers at the Pennsylvania State University indicates that, athough a state severance tax on natural gas extraction would have negative economic consequences on gas production companies, the overall benefit of state and local spending of revenue from the tax could increase population in the state by 1,300 people, add 1,400 new workers, and boost business sales by $80 million as well as personal income by $20 million. Pennsylvania state lawmakers are currently considering approval of a severance tax provision in time for the October 1, 2010 deadline mandated as part of the Pennsylvania General Assembly's passage of the state budget earlier this summer. Pennsylvania remains the only major natural gas-producing state without a severance tax. Governor Rendell and supporters of the tax hope that revenue generated from the tax can be used to help fund local government and environmental initiatives.

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This post was written by Nicolle Bagnell and Ariel Nieland.

The U.S. Environmental Protection Agency ("USEPA") announced yesterday that it sent voluntary information requests to nine companies in the oil and gas industry requesting information regarding hydraulic fracturing. Specifically, USEPA stated that it is "seeking information on the chemical composition of fluids used in the hydraulic fracturing process, data on the impacts of the chemicals on human health and the environment, standard operating procedures at their hydraulic fracturing sites and the locations of sites where fracturing has been conducted." USEPA indicated that it is seeking data as part of a broad scientific study, which Congress in 2009 directed the Agency to conduct to determine whether hydraulic fracturing has an impact on drinking water and public health. Responses to these requests have been requested within 30 days and USEPA has asked the nine recipients of the requests to inform them within 7 days if they do not plan to provide all of the requested information.

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This post was written by David Wagner.

To follow up from earlier posts, the U.S. Environmental Protection Agency has rescheduled the public hearing on its proposed rule to establish a Federal Implementation Plan that would take over permitting programs in states that do not meet federal requirements. The hearing will be held on September 14, 2010 in Arlington, VA and logistical details are here. We’ve discussed this proposed rule and a related proposal requiring 13 states to revise their State Implementation Plans in some detail in this recent post.

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This post was written by Eric McLaughlin.

Since the enactment of California’s two landmark green chemistry laws in September 2008 (AB 1879 and SB 509), significant effort has been made to develop their implementing regulations. This process has proven to be difficult and controversial, because a compromise must be reached between numerous competing concerns, most notably the legislative mandate to protect human health and the environment, and the significant costs to be imposed on companies manufacturing and selling consumer products in California. The process has also come under intense nationwide scrutiny, because California's Green Chemistry Initiative is considered a possible model for national chemical policy reform.

State regulators at the Department of Toxic Substances Control (DTSC) have until January 1, 2011 to enact the final version of the green chemistry regulations, known as the Safer Consumer Products Alternatives (SCPA) regulations. An informal rulemaking process has been used to shape the regulatory framework and extensive public comment has been received from stakeholders, including the scientific community, industry and environmentalists. The most recent draft of the SCPA regulations was released on June 23, 2010 and public comments were accepted through July 15, 2010.

California’s green chemistry laws are intended to completely refocus the regulation of chemicals in consumer products on the beginning of the product life cycle – the design phase. This approach will enable determinations to be made about which chemicals should be used in which products, and weighing the potential effects of those products on human health and the environment before they occur. Drafting the regulations to accomplish this goal, however, has prompted much debate throughout the informal rulemaking process, which has intensified as the SCPA regulations have taken shape, and has focused on six main issues: (1) scope of the regulations; (2) prioritizing chemicals of concern; (3) alternatives analysis; (4) confidential business information; (5) conflicting and duplicative regulations; and (6) the cost of implementation. This post summarizes the status of these issues.

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