Election 2020 Snapshot: Helping our energy clients make sense of the U.S. election results - Hogan Lovells
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Election 2020 Snapshot: Helping our energy clients make sense of the U.S. election results
Through the last several Administrations (Democrat and Republican) the Administration’s agenda and may include a a guide to what is coming. Additionally, the
mantra has been “we support an all-of-the-above strategy” to meet U.S. renewed focus on advanced biofuels, as well climate impact and “social cost of carbon”
energy needs. Expect that to change. The Biden Administration’s focus as vehicle electrification. In addition, DOE will likely gain new prominence in FERC’s
has missed statutory deadlines for proposing environmental evaluation of projects
will shift to how to achieve sharp greenhouse gas emissions reductions new efficiency standards for more than two requiring its approval.
across the economy in the relatively near-term. President-elect Biden dozen types of appliances and commercial The Department of the Interior, with its vast
has stated that there needs to be a transition away from fossil fuels equipment. It is reasonable to expect a federal land holdings and its jurisdiction
flurry of new efficiency standards proposals, over the Outer Continental Shelf, also plays
but acknowledged that it will not happen overnight. However, the although the “process rule” that the Trump an important part in the U.S. energy picture.
net zero carbon emission goals and strategies announced by some Administration put in place requires greater President-elect Biden has indicated that there
of the Nation’s largest electric utilities, oil companies and others efficiency to justify new standards. will be no new oil and gas leasing on federal
outside the energy industry provide an indication of what may be DOE also plays a role in securing the lands and has sent mixed messages regarding
interstate power grid. President Trump’s hydraulic fracking activity. Legal rights
achievable as the new Administration develops energy policy. Bulk Power Supply Executive Order, which under existing leases may prevent an outright
focused attention on the threat to the grid moratorium on oil and gas development, but
from equipment supplied by “adversary DOI will seek to regulate methane emissions
countries,” will continue to be an issue of and hydraulic fracturing activity on public
concern to the industry. There has been no lands, and it may also adopt enhanced impact
indication that this Executive Order is on the mitigation requirements. And it will be no
new President’s chopping block. DOE is in surprise if the new Administration looks for
Many Agencies Have a Role the early stages of the rulemaking process to ways to roll back any oil and gas leases in the
implement the Executive Order, and there is Alaskan National Wildlife Refuge that the
ample room for unintended consequences in Trump Administration may conclude in its
All energy agencies will see a change in The Biden Harris Plan for a Clean Energy this effort, including for the renewable energy waning days.
emphasis. The Department of Energy will Revolution and Environmental Justice industry. It warrants close engagement with
focus on advancing energy technologies establishes a goal of reaching a 100% clean The new Administration will seek to
DOE as the agency develops the rules. advance renewable energy development
that facilitate carbon emissions reductions. energy economy, and net-zero emissions,
Battery improvements and other energy by 2050. Many of the proposals in this Plan, Once it has a Democratic majority in place, on federal lands. To be successful, that
storage, along with hydrogen, will also get such as expanding tax incentives for electric the Federal Energy Regulatory Commission initiative will need to be accompanied by
attention in DOE’s R&D portfolio, along with vehicles, eliminating tax preferences for oil will also be looking for ways to contribute to efforts to accelerate permitting processes,
continued efforts to optimize solar and wind and gas production, and increased federal the climate action effort. Although it operates which may prove challenging given the
technology. Advanced nuclear technologies appropriations for clean energy investments, under statutes passed many decades ago, new Administration’s concomitant goals
are also likely to receive continued support, cannot be achieved without congressional FERC will look for new ways to apply those of landscape conservation and wildlife
not only as carbon-free power sources but action, which will be difficult without strong statutes to give a greater weight to state protection. DOI will also be under immediate
also for their value to international trade and Democratic majorities in both houses. Many carbon reduction goals and new technologies, pressure to “unstick” the review processes
national security. things can be accomplished, however, by including energy storage, in the markets it for offshore wind development, which have
executive action under existing statutory regulates. Democratic Commissioner Glick’s languished under the Trump Administration.
Given its abundance and established dissents over the past few years likely provide
infrastructure in the U.S., DOE will likely authority. This includes, for example, use
acknowledge – at least for the near term – of the federal procurement system,”which
the central role natural gas will continue spends $500 billion every year,’ to drive
to play in our energy supply, but with an toward 100% clean energy and zero
emphasis on reducing carbon impact. The emissions vehicles.1
Environmental Protection Agency will The largest sources of carbon emissions are
directly regulate methane emissions, while from the transportation and building sectors.
DOE focuses on technology solutions. A push for improved efficiency in those
sectors is also likely to be high on the Biden
https://joebiden.com/climate-plan/#
1
No Nirvana for Advocates of the Key contacts New Opportunity for the Industry
New Energy Economy
One of the most notable developments in
energy industry over the last four years is the
Supporters of carbon-free energy need only project with a significant federal involvement, Mary Anne Sullivan embrace of sustainability goals and carbon
to think back a few years to recognize that particularly on federal lands. Careful attention Senior Counsel
emissions reduction plans, along with new
having friends in the White House does not to risk management strategies is key. Washington, D.C.
+1 202 637 3695 types of partnerships with state and local
mean clean energy projects will move forward The same is true on the Outer Continental maryanne.sullivan@hoganlovells.com governments to advance their goals. The
at lightspeed. Multi-agency jurisdiction over Shelf. Experienced wind developers are opportunity exists now to engage the Biden
most energy projects results in bureaucratic anxious to finally move forward expeditiously, Administration, not just in its regulatory
delays that every Administration in modern but they cannot ignore the fishery, maritime function, but as a partner, to advance shared
times has committed to fixing, with little and U.S. shipbuilding industries that all seek goals and identify the problems where
apparent success. That effort is further to protect their interests in how offshore wind Greg Junge government can uniquely help in creating
complicated by the recent re-write of the development proceeds. Those competing Partner
solutions. Engaging early may provide the
regulations that implement the National interests, too, can expect a sympathetic
Washington, D.C.
+1 202 637 6642 best strategy for ensuring that the next four
Environmental Policy Act. The new rules hearing from the Biden Administration. greg.junge@hoganlovells.com years produce important advances for the
face numerous legal challenges, and a Biden The Jones Act may be ancient and energy industry consistent with the new
team cannot simply revert to the old rules protectionist, but it has a lot of enthusiastic Administration’s climate objectives.
that they may prefer. A new rulemaking will supporters who will not be ignored.
be required. In the meantime, successfully
navigating NEPA reviews will require a Fossil fuel interests, which make important
careful look at the risks under the rule contributions to many regional economies, Hilary Tompkins
changes and ensuring an appropriate level may wish to engage with the Biden Partner
Administration not only on high tech
CLICK HERE to
of conservatism in environmental reviews. Washington, D.C.
find out more
solutions for sequestering carbon, but +1 202 664 7831
The Endangered Species Act and wetlands also on its plans to work with farmers to hilary.tompkins@hoganlovells.com on our election
protections under the Clean Water Act, to create “carbon banks,” sequestering carbon 2020 insights.
name just two, bedevil many energy projects. emissions in soil and vegetation, and other
A change in the White House does not change potential carbon offset initiatives.
that, and it can slow approvals for any energy
Jamie Wickett
Partner
Washington, D.C.
+1 202 637 6422
james.wickett@hoganlovells.com
Rebecca Umhofer
Knowledge Lawyer
www.hoganlovells.com
Washington, D.C. “Hogan Lovells” or the “firm” is an international legal practice that includes Hogan
+1 202 637 6939 Lovells International LLP, Hogan Lovells US LLP and their affiliated businesses.
rebecca.umhofer@hoganlovells.com The word “partner” is used to describe a partner or member of Hogan Lovells
International LLP, Hogan Lovells US LLP or any of their affiliated entities or any
employee or consultant with equivalent standing. Certain individuals, who are
designated as partners, but who are not members of Hogan Lovells International LLP,
do not hold qualifications equivalent to members.
For more information about Hogan Lovells, the partners and their qualifications,
see www.hoganlovells.com
Where case studies are included, results achieved do not guarantee similar outcomes
for other clients. Attorney advertising. Images of people may feature current or former
lawyers and employees at Hogan Lovells or models not connected with the firm.
© Hogan Lovells 2020. All rights reserved. 06226
You can also read
