THE LINK: JULY 2023 22 Supreme Court’s ruling limits EPA regulating authority Alaska’s industry leaders applauded the U.S. Supreme Court’s ruling in Sackett vs. EPA, which sharply reduce the authority of the U.S. Environmental Protection Agency in regulating wetlands. The decision has particular impact in Alaska where much of the state is now classified as a wetland. That brings with it regulatory authority under the U.S. Clean Water Act to protect wetlands under the U.S. Army Corps of Engineers “Section 404” dredge and fill permits. The Supreme Court’s decision would reduce the amount of land where Section 404 permits would be required. Along with reduced regulatory jurisdiction would be a reduced requirement for compensatory mitigation for wetlands affected by development. The 9-0 ruling provides clarity and flexibility in developing land and reduces uncertainty on what is qualified as “waters of the United States,” or “WOTUS,” under the Clean Water Act. Most of the North Slope is considered a wetland along with many areas where mines and other industrial projects are built or proposed. The current rules on mitigation are ambiguous at times, which creates uncertainty, and the new court ruling would reduce that. The Associated General Contractors of Alaska, the Council of Alaska Producers, the Alaska Support Industry Alliance, the Alaska Forest Association, the Alaska Oil and Gas Association, the Alaska Chamber, the Alaska Miners Association, and the Resource Development Council for Alaska expressed support for the Sackett v. EPA ruling. “This is a huge win for Alaska,” said Rebecca Logan, CEO of the Alaska Support Industry Alliance. “The Biden WOTUS led to massive uncertainty and more burdensome regulations. The administration should now do its part and rescind its WOTUS rule, which is clearly considered unconstitutional by the highest court in the land.” “We are thrilled with the Supreme Court Sackett vs. EPA ruling,” said Alaska Miners Association Executive Director Deantha Skibinski. “Rejecting the significant nexus test restores common sense and clarifies how WOTUS is implemented. Now the Biden Administration must revise its WOTUS rule and provide for a durable rule that clearly details waters that fall under federal jurisdictions versus those that will be regulated by the states.” “This ruling reaffirms the primary role of states in managing their own land and water resources,” said Karen Matthias, executive director of the Council of Alaska Producers. “It will provide much needed regulatory certainty for all projects in Alaska.” “We are pleased with the Supreme Court’s decision in Sackett vs. EPA. The court correctly identified that the EPA’s plan was an extreme overreach by the federal government with potential to extend to all waters of the United States,” said Kara Moriarty, AOGA president/CEO. “This decision balances state and federal powers and provides certainty.” “RDC welcomes the practical limitations set by the U.S. Supreme Court,” said Leila Kimbrell, executive director of the Resource Development Council for Alaska. “For too long, federal agencies have expanded the definition of ‘waters of the United States’ resulting in burdensome and destructive federal overreach of state and private lands.” “This is a win for State’s rights and private land ownership rights,” said Alaska Chamber President/CEO Kati Capozzi. “The Alaska Chamber is pleased to see the U.S. Supreme Court enforce the literal and figurative boundaries the EPA should have followed all long,” The precise definition of WOTUS is fundamentally important to the construction industry,” said Alicia Amberg, executive director of the Associated General Contractors of Alaska. “AGC members perform many construction activities on land and water that require a WOTUS evaluation before proceeding. The fluctuations in WOTUS regulations, case law, and implementation guidance throughout the years have impacted our members’ ability to secure financing and approval to construct new projects or maintain existing infrastructure and facilities across Alaska. The Sackett decision provides the clarity needed to adopt a durable WOTUS rule that follows the intent of the Clean Water Act,” Amberg said. — Tim Bradner Alaska leaders applaud decision on wetlands Chugach Electric Association and Hilcorp Energy have entered into a shared services agreement for operations at the Beluga gas field near Anchorage, in Southcentral Alaska. The deal will result in significant cost savings amounting to $700,000 a year for Chugach alone, the utility said in a statement. Both are part owners of the gas field, which supplies fuel to the adjacent gas-fired power plant owned by Chugach. Hilcorp staff will continue to man field operations while Chugach employees will continue to operate the power plant, but the two will share equipment like cranes, loaders, warehouse space, lodging and catering. Hilcorp has increased drilling at Beluga with four new gas wells in 2022 and five new wells in 2023. — Tim Bradner Chugach Electric, Hilcorp share services in Beluga gas field
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