The Commodity Futures Trading Commission (CFTC or the Commission) released its enforcement results for fiscal year 2022 on October 20, 2022. The enforcement results detail the 82 enforcement actions the CFTC filed in 2022 and show that orders secured by the Commission imposed more than $2.5 billion in restitution, disgorgement, and civil monetary penalties, either through settlement or litigation.
FERC, CFTC, and State Energy Law Developments
Following weeks of anticipation, US Senator Joe Manchin (D-WV) released the text of the Energy Independence and Security Act of 2022, his permitting reform legislation, on September 21, 2022. As part of an agreement to win Senator Manchin’s support of the Inflation Reduction Act, Democratic leadership committed to bringing energy infrastructure permitting reform to a vote this year, namely by including it in a continuing resolution (CR) to extend government funding before the end of the fiscal year on September 30.
The Federal Energy Regulatory Commission issued show cause orders to two natural pipelines—Rover Pipeline and Midship Pipeline Company—following its December 2021 open meeting, and sent a related dispute involving Midship for an administrative hearing. Chairman Richard Glick has signaled in the last year his desire for a more active enforcement program.
The US Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corp. (NERC) jointly authored a report regarding the February 2021 power outages in Texas and the US Midwest caused by extreme cold weather. The report identifies the causes of the outages and outlines a series of recommendations focusing on enhanced protection against cold weather for critical generation as well as the natural gas assets supplying gas-fired generation so that this infrastructure remains operational even in extreme cold weather.
Nearly 200 comments were filed in response to FERC’s February 18, 2021 Notice of Inquiry (NOI) that sought new information and perspectives on whether it should revise its policy statement on the certification of new interstate natural gas transportation facilities (Policy Statement). As we discussed in our February 19 LawFlash, FERC sought comments on several areas, including potential adjustments to its determination of need, the exercise of eminent domain and landowner interests, FERC’s considerations of environmental impacts, and its consideration of effects on environmental justice communities. Commenters provided a wide range of perspectives, which we discuss below.
As has been reported, a recent ransomware attack has caused an interstate pipeline and fuel supplier to much of the eastern United States to shut down its operations. Although the attack did not compromise operational systems, the company opted to cease operations as a precautionary measure.
FERC issued a final rule on March 18 amending its regulations to establish a one-year period for state agencies or other certifying authorities to act on requests for water quality certifications required for a certificate of public convenience and necessity for a natural gas pipeline or an authorization for an liquefied natural gas (LNG) terminal.
The Delaware River Basin Commission (DRBC) on February 25, 2021, approved a new regulation formally prohibiting high-volume hydraulic fracturing (HVHF), or fracking, in the Delaware River Basin. The final rule makes permanent a drilling moratorium imposed by the DRBC in 2010.
FERC announced on February 22 that it will open a new proceeding to examine the threats of climate change and extreme weather to electric reliability. The investigation will assess how grid operators prepare for and respond to extreme weather events, including, droughts, extreme cold, wildfires, hurricanes, and prolonged heat waves. The proceeding will include a technical conference with an opportunity for parties to submit comments in advance of that conference.
The Federal Energy Regulatory Commission (FERC) announced on February 22 that its Office of Enforcement would examine wholesale natural gas and electricity market activity during last week’s extreme cold weather “to determine if any market participants engaged in market manipulation or other violations.” FERC’s brief press release explained that its examination is part of its existing surveillance program for market participant behaviors in the wholesale natural gas and electric markets.
