Understanding the complex intersection of environmental regulations intended to combat climate change between now and 2050 while responding to the U.S. tech economy’s exponential growth in energy demand will require collaboration between consumers, industry and government, and reliance upon a combination of renewable and traditional energy sources. This theme was addressed at Saul Ewing’s Eighth Biennial Emerging Trends & Challenges in Energy Projects and Environmental Oversight Conference 2024 recently held both in Houston and via Zoom with over 100 energy and environmental industry professionals participating live and remotely. The conference was hosted by Saul Ewing and its supporting sponsors Langan Engineering & Environmental Services and Spirit Environmental.
This year, our keynote speech provided a 30,000-foot view of world energy needs and the path to a lower carbon future, while our panelists discussed the current realities of permitting renewable projects and developing mechanisms to reduce carbon emissions amid shifting state and federal policies, priorities and regulations. Presentation materials are available on our website. Below are four key takeaways from the conference.
1. Permit reform and collaboration between industry and government are key to meeting state climate goals.
Our first panel, made up of current and former state regulators, identified their respective state climate goals and some possible strategies to achieve them, from electrifying transportation systems to accelerating deployment of renewable energy resources and expanding the clean energy innovation economy. They also emphasized their responsibility to ensure resilience and reliability of the grid, a challenge as extreme weather events increase. A common theme among the panelists was the need for permit reform (or in the case of hydrogen, the creation of a permitting regime) to expedite processes, bring energy projects online, and build critical infrastructure. However, they noted that government has an obligation to review proposed projects from an environmental justice perspective. Environmental justice can be defined as engaging the public in the process, but it requires time. Panelists stressed the need for a collaborative approach between industry and government.
Session: “State Regulatory and Policy Insights”
Moderator: Courtney Schultz, Partner, Saul Ewing LLP
Panelists: Lisa Borin Ogden, Deputy Secretary, Delaware Department of Natural Resources and Environmental Control Mary Anna Holden, Former Commissioner, NJ Board of Public Utilities
David Wade, Chief of Staff, Pennsylvania Office of Transformation and Opportunity
2. A lower carbon future is coming.
Our keynote speaker, T. Lane Wilson of The Williams Companies, recently attended the United Nations Climate Change Conference in Dubai. He noted a consensus among conference attendees that traditional fuels, such as natural gas (which provide highly reliable electricity generation), will play a role in facilitating the energy transition away from coal and enabling renewable development while ensuring energy security for a long time. He argued that worldwide access to affordable and reliable energy is the key to reducing extreme poverty, which itself is the key to better environmental outcomes. Mr. Wilson pointed to data showing that an income threshold of $5,000 per capita is the level at which individuals become future-oriented (and hence invested in good environmental outcomes) rather than survival-focused. Calling natural gas “our current energy source and future battery,” he envisioned a future where the energy mix is made up of solar, wind, hydrogen, natural gas, and other types of energy that we have not yet discovered.
Session: “Comments Regarding the United Nations Framework Convention on Climate Change (COP28) and Natural Gas in a Lower-Carbon Future”
Keynote speaker: T. Lane Wilson, Senior Vice President and General Counsel, The Williams Companies, Inc.
3. Permitting renewable projects requires organization and planning.
Our panelists discussed their processes for redeveloping environmentally regulated sites, whether repurposing Superfund sites for community solar or transforming traditional power stations into hubs for clean energy infrastructure. They underscored the importance of coordinating with regulatory authorities at the outset in order to understand which entities have jurisdiction over the proposed project and the universe of permits needed. For example, more than 30 permits and approvals are required in order to construct and operate new transmission projects. The process takes years, and typically involves two-to-three years of upfront work, including feasibility studies, surveys, and environmental reviews prior to commencing the application process. Panelists also emphasized the importance of seeking community support as well as developing a strong record in case of permit challenges. This is a critical component of the planning process, as governments are increasingly focused on environmental justice, which requires meaningful public engagement.
Session: “Permitting Complex Projects”
Moderator: Pamela Goodwin, Partner, Saul Ewing LLP
Panelists: Gina Wolfman, Senior Director, Project Development, AC Power
Roberta Zwier, Vice President, Environmental, Rise Light & Power
4. The regulatory landscape is shifting.
Our panelists identified some of EPA’s new enforcement priorities under its National Enforcement and Compliance Initiative. One such area is addressing exposure to perfluoroalkyl and polyfluoroalkyl (PFAS). Although EPA has yet to issue its CERCLA hazardous substance designation for PFAS, over 30 states have enacted legislation addressing these substances. Another new EPA priority is mitigating climate change, which includes a focus on oil and gas and landfill methane emissions. This represents a shift from away from large operations targeted by the Clean Air Act to smaller operations due to their aggregate effect on the environment. In other regulatory areas, the SEC finally issued its Climate Disclosure Rule on March 6, 2024. As expected, the rule is already being challenged on multiple fronts with lawsuits, now consolidated in the 8th Circuit Court of Appeals, claiming that the agency exceeded its statutory authority. In addition, the U.S. Supreme Court is expected to issue a decision this term regarding the Chevron doctrine, which states that courts should defer to an agency’s reasonable interpretation of an ambiguous statute. If the doctrine is overturned, we expect significant changes to the ways that agency actions are challenged.
Session: “2024 Environmental Litigation and Trends Update”
Moderator: Melissa Clarke, Counsel, Saul Ewing LLP
Panelists: Roberto Gasparini, Program Director, Spirit Environmental
Adam Goldberg, Senior Project Manager, Langan Engineering & Environmental Services
Sean O’Neill, Partner, Saul Ewing LLP
