USA – TEXAS Trends and Developments Contributed by: Gerald J. Pels, Gerald D. Higdon and Elizabeth Corey, Troutman Pepper Locke
federal regulation was insufficient, and which would regulate above and beyond federal requirements. In fact, without universally applicable federal regulation prodding energy and power producers everywhere to specific federally established policy results, energy producers and developers will be able to more clearly identify the cost profile of operating in certain jurisdic- tions and consequently make better decisions regard- ing the jurisdictions where investment is, in their view, more worthwhile. So, even with the risk of increased state regulation in certain jurisdictions, investment resources should be allocated more efficiently, based upon the regulatory costs incurred in those jurisdic- tions. Put simply, if the regulatory costs in certain juris- dictions are markedly higher, energy development in those jurisdictions will likely reflect the effects of those regulatory costs, with either less energy development, or with energy user costs increasing.
In summary, the Rollback, if sustained, and the Loper Bright and West Virginia decisions which support it, will have material impacts upon energy development, and the mix of conventional and renewable energy comprising that development. On balance however, and over time, these developments will likely result in more efficient energy development and production based upon clear congressional direction and more constrained regulation based upon such direction.
449 CHAMBERS.COM
Powered by FlippingBook