Energy and Climate Change
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The Trump Administration Accelerates AI and Data Center Development with Executive Order and DOE Site Selections08.08/Alert
A new executive order (EO) issued on July 23, 2025, and a parallel Department of Energy announcement, signal a coordinated federal effort to accelerate the siting and development of data centers and supporting infrastructure on public lands. Building on the DOE’s April 2025 Request for Information (RFI), soliciting industry feedback for developing AI infrastructure on DOE-managed lands, these actions lay the groundwork for a new wave of AI-driven data center growth and position federal lands as a strategic backbone for national AI infrastructure.
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OSHA Proposes Removing Application of General Duty Clause to Inherently Risky Professional Activities08.01/Alert
On July 1, 2025, OSHA proposed a rule titled, “Occupational Safety and Health Standards; Interpretation of the General Duty Clause: Limitation for Inherently Risky Professional Activities.” The proposed rule is intended “to exclude from enforcement known hazards that are inherent and inseparable from the core nature of a professional activity or performance.”
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New International Court of Justice Advisory Opinion Raises Global Liability Stakes Around GHG Emissions and Climate Change amid U.S. Federal Regulatory Retreat07.31/Alert
On July 23, 2025, the International Court of Justice (ICJ) issued a unanimous Advisory Opinion asserting the scope of states’ obligations under international law concerning the protection of the climate system. The Advisory Opinion is a long-awaited response to the U.N. General Assembly’s March 2023 request that ICJ advise regarding the obligations of U.N. member states to protect the climate and environment from anthropogenic emissions of greenhouse gases for present and future generations and the legal consequences to member states whose acts or omissions have caused harm. Proceedings leading up to the Advisory Opinion garnered the highest level of participation in the history of the ICJ and its predecessor organization—with hearing statements by 96 different national governments and 11 international organizations.
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Navigating New Waters: Getting Ahead of Extended Producer Responsibility Laws07.28/Alert
Companies across the United States are working diligently to understand their obligations and comply with packaging-related Extended Producer Responsibility (EPR) laws recently enacted by several states, including California (SB54), Colorado (HB22-1355), Maine (LD1541), Maryland (SB901), Minnesota (HF3911), Oregon (SB582B) and Washington (SB 5284). Other states, including Connecticut (HB06225), Hawaii (HB750), Illinois (HB4064), Massachusetts (H.833), New Jersey (SB426), New York (S1460), Rhode Island (S0939) and Tennessee (SB573) have recently proposed EPR bills, though some have been vetoed.
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Power Purchase and Interconnection Agreements for Data Centers07.21/Alert
Data centers—particularly those supporting generative artificial intelligence (AI)—are rapidly emerging as one of the most significant sources of electricity demand globally. In response, power procurement and grid access have become mission critical considerations for developers and tenants alike. As these facilities seek scalable, uninterrupted and cost-effective power, the negotiation of power purchase agreements (PPAs) and interconnection agreements plays a central role in determining both operational reliability and long-term economic viability. This article outlines key considerations for structuring these agreements, with a focus on how siting decisions, load characteristics and regulatory constraints shape risk allocation and commercial strategy.
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Plasticizer PIP (3:1) Ban Is Still a Year Away, but Affected Companies Should Act Today07.16/Alert
As a plasticizer and flame retardant popularly used in numerous products, such as hydraulic fluids, lubricating oils, paints, industrial coatings, synthetic rubber and PVC, some companies may not even be aware that their products contain phenol, isopropylated phosphate (3:1) (PIP (3:1)). Pursuant to the Environmental Protection Agency (EPA)’s 40 C.F.R. § 751, promulgated as part of a final rule published in October 2024, articles containing PIP (3:1) will no longer be permitted in interstate commerce beginning October 31, 2026. Although that date is 15 months away, companies who use PIP (3:1) in their articles or manufacturing, or treat their articles with plasticizers, should be aware of this impending deadline and begin phasing out PIP (3:1) in both their finished products and supply chain.
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Department of Energy Seeks Input for the 2026 Energy Critical Materials Assessment07.11/Alert
On June 25, 2025, the Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy released a Request for Information (RFI) to gather input for the 2026 Energy Critical Materials Assessment (CMA). The assessment will consider materials used in a broad range of technologies, including energy production, transmission and storage, as well as end-use applications in vehicles, buildings, industry, transportation and computing—such as semiconductors and electronics. Comments are due on July 25, 2025.
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California Enacts Landmark CEQA Reforms to Accelerate Housing and Infrastructure Development07.07/Alert
On June 30, 2025, California Governor Gavin Newsom signed two major bills—Assembly Bill 130 (AB 130) and Senate Bill 131 (SB 131)—into law, enacting sweeping reforms to the California Environmental Quality Act (CEQA). Passed as part of the state budget package, these bills aim to reduce regulatory barriers and litigation risks for new infill housing and other community-oriented infrastructure projects. Together, AB 130 and SB 131 represent “the most significant reforms to CEQA ever considered by the Legislature,” according to State Sen. Scott Wiener.
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Congress Sends Big, Beautiful Bill for President’s Signature: Status of Clean Energy Tax Credits07.03/Alert
On July 3, 2025, Congress approved passage of the Big, Beautiful Bill (the “Bill” or “BBB”), with a number of provisions that will significantly impact the future of the renewable energy tax credits enacted by the Inflation Reduction Act of 2022 (IRA). President Trump is expected to sign the BBB into law tomorrow, July 4, 2025. A prior client alert discussed the differences between the Senate Finance Committee (SFC) version of the Bill initially released on June 16, 2025, and the version approved by the House of Representatives on May 22, 2025. A later client alert highlighted several changes in the version of the Bill that was advanced to the full Senate. In the discussion below, we provide some observations as to latest developments from the negotiation process for the BBB.
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Senate Votes to Advance the Big, Beautiful Bill – Latest on Renewable Energy Tax Credits06.30/Alert
On June 28, 2025, the Senate voted 51-49 to advance its version of the Big, Beautiful Bill (the “Bill” or “BBB”). As relates to renewable energy tax credits enacted by the Inflation Reduction Act of 2022 (IRA), the Senate’s version of the Bill differs in some significant respects from the version released by the Senate Finance Committee (SFC) on June 16, 2025, as summarized below. Our prior client alert discusses the differences in impact on renewable energy tax credits between the SFC version of the Bill and the version approved by the House of Representatives on May 22, 2025.
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SCOTUS Affirms Rules for Challenging Nuclear Regulatory Commission Licenses06.26/Alert
In Nuclear Regulatory Commission v. Texas, a 6-3 decision authored by Justice Brett Kavanaugh, the U.S. Supreme Court ruled in favor of Interim Storage Partners, LLC (ISP) and the Nuclear Regulatory Commission (NRC). The case concerned the NRC’s issuance of a license to ISP to build and operate a private away-from-reactor spent nuclear fuel storage facility in West Texas, an action the Fifth Circuit had invalidated as beyond the agency’s statutory authority.
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Status Update: Renewable Energy Tax Credits Under the Big Beautiful Bill06.23/Alert
With the Senate Finance Committee (SFC) releasing the text of its version of the Big Beautiful Bill (the “Bill” or “BBB”) on June 16, 2025, we provide a comparison of the competing proposals from the House and the SFC. In short, the House version of the BBB featured three principal changes to the renewable energy tax credit provisions enacted under the Inflation Reduction Act of 2022 (IRA): (i) accelerated expiration dates and phase-outs, (ii) repeal of cash transfer elections and (iii) imposition of limitations for associations with FEOCs. The SFC version of the BBB, in turn, (i) eases some of the expiration dates and phase-outs, (ii) allows cash transfer elections to continue for the remaining periods of tax credit availability and (iii) provides important guidance on the restrictions relating to FEOCs.
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Texas Signals Its Commitment to Leading America’s Nuclear Energy Future Through Industry-Friendly Legislation06.11/Alert
Texas emerged from its 89th legislative session with a sweeping set of laws aimed at cementing the state’s leadership in advanced nuclear energy. Through the passage of HB 14, SB 1535 and SB 1061, lawmakers demonstrated a commitment to developing a robust nuclear ecosystem backed by regulatory reform, significant public investment and a forward-looking workforce strategy. This legislative package signals not only Texas’s confidence in nuclear power as a cornerstone of its future energy mix, but also its intent to create a nationally competitive environment for innovation and growth in the nuclear sector.
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Water, Reused: Texas Reshapes Liability and Regulatory Rules on Produced Water, Leaves Ownership Questions Unanswered06.09/Alert
The Texas Legislature passed a series of bills aimed at modernizing the legal and regulatory landscape for the handling and reuse of produced water—a byproduct of oil and gas operations. These developments address permitting, liability and inspection processes, with a focus on clarifying the respective roles and responsibilities among operators and regulators. The following update outlines key enacted and pending measures that are expected to influence compliance obligations, operational planning and strategic decisions related to produced water management across the state. Further, by promoting reuse, the legislation also supports efforts to ease pressure on Texas’s strained water supply, particularly in drought-prone and energy-intensive regions. However, legislation that would have clarified ownership of brine minerals failed to advance, leaving unresolved questions over who owns both brine minerals and produced water—an issue with growing importance as interest increases in extracting critical minerals like lithium from these resources.
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Texas SB6 Establishes New Transmission Fees and Interconnection Standards for Large Load Customers and Co-Located Loads06.09/Alert
On June 1, 2025, Texas Senate Bill 6 (SB 6), passed both chambers of the Legislature with bipartisan support and was sent to Governor Abbott for signature. Absent a veto by Gov. Abbott, the bill will become effective on September 1, 2025. SB 6 introduces significant changes to how large electricity users interact with the Electric Reliability Council of Texas (ERCOT) grid and marks a notable shift in regulatory policy to address concerns over grid reliability and cost allocations.
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SCOTUS Limits Scope of NEPA Reviews, Reinstates Approval of Uinta Basin Railway06.02/Alert
In a highly anticipated decision for project developers and permitting agencies, the U.S. Supreme Court reversed the D.C. Circuit’s 2023 decision that had invalidated federal approval of the Uinta Basin Railway. In Seven County Infrastructure Coalition v. Eagle County, No. 23-975, ___ U.S. ___ (May 29, 2025), the Supreme Court clarified the limits of the National Environmental Policy Act (NEPA), reaffirming its procedural role and reenforcing the deference owed to agency judgments regarding the scope of environmental reviews.
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President Trump’s Nuclear Executive Orders: What Clients Should Know05.23/Alert
Today, President Trump signed four new Executive Orders (the “Orders”)—Ordering the Reform of the Nuclear Regulatory Commission, Reforming Nuclear Reactor Testing at the Department of Energy, Reinvigorating the Nuclear Industrial Base, and an order focused on Nuclear Energy for National Security—with a goal to quadruple U.S. nuclear power capacity by 2040. The overall goal of the Orders is to “expedite and promote to the fullest possible extent the production and operation of nuclear energy,”, which matches previous statements by Secretary of Energy Chris Wright that “America must lead the commercialization of affordable and abundant nuclear energy.”
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State Climate Laws and Litigation Face Federal Pushback Under New Executive Order04.18/Alert
On April 8, 2025, President Trump issued Executive Order 14260, Protecting American Energy From State Overreach. Framed as part of the Administration’s broader strategy of unleashing American energy, the Order directs federal agencies to eliminate what it calls “illegitimate impediments” posed by state and local governments to the production, development and use of traditional energy resources—oil, natural gas, coal, hydropower, geothermal, biofuel, critical minerals and nuclear energy.
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U.S. Department of Energy Reopens Funding Initiative for Gen III+ Small Modular Reactors with Key Modifications Reflecting Trump Administration Priorities04.07/Alert
On March 24, 2025, the U.S. Department of Energy (DOE) reopened its funding initiative for Generation III+ Small Modular Reactors (Gen III+ SMRs) with modifications aligned with the Trump administration’s policy priorities and energy policy objectives. The modified funding initiative focuses on regulatory streamlining, deregulation and the acceleration of energy infrastructure, while deprioritizing community-based initiatives. As part of this shift, DOE has removed requirements related to community engagement and workforce equity and clarified that award selection will be based solely on technical merit.
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The Battle Over Climate Superfund Laws: Legal Challenges in Vermont and New York04.04/Alert
States are increasingly turning to “Climate Superfund” laws as a potential mechanism to offset the growing costs of climate-related disaster recovery and the construction of more climate change-resilient infrastructure. These laws aim to hold select energy companies financially responsible for infrastructure resiliency investments and climate-related damages based on prior greenhouse gas (GHG) emissions. However, they raise significant constitutional questions, particularly concerning state authority over global and interstate climate issues and the retroactive imposition of liability for past, lawful activities. The first two states to enact such laws—Vermont and New York—are already defending them in court against challenges rooted in federal preemption and constitutional limitations.
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EPA Announces Sweeping Deregulatory Agenda: The Complete Set of EPA’s 31 Actions and Affected Environmental Regulations04.03/Alert
In what it called “the greatest and most consequential day of deregulation in U.S. history,” the Environmental Protection Agency (EPA) announced its most expansive deregulatory initiative to date on March 12, 2025. Through a series of press releases and a public address by Administrator Lee Zeldin, the agency outlined 31 planned actions aimed at rescinding, revising or reconsidering existing environmental rules and policies. Each of the press releases, as well as the underlying regulations at issue, are linked below.
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SEC Ends Its Climate-Related Disclosure Requirements04.01/Alert
On March 6, 2024, the Securities and Exchange Commission (SEC) adopted final rules imposing new climate-related disclosure requirements on domestic and foreign registrants with respect to their annual reports and registration statements (Rules). Compliance was set to begin as early as the annual reports for December 31, 2025, for calendar-year-end issuers classified as large-accelerated filers.
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Council on Environmental Quality Rescinds NEPA Regulations03.07/Alert
As was widely anticipated, the Council on Environmental Quality (CEQ) recently rescinded its National Environmental Policy Act (NEPA) implementing regulations, eliminating the uniform framework that has governed NEPA compliance for decades. CEQ’s Interim Final Rule, published on February 25, 2025, removes 40 C.F.R. Parts 1500–1508 from the Code of Federal Regulations, dismantling longstanding procedural requirements for federal environmental reviews.
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EPA Finalizes New Rule to Reduce and Reclaim Hydrofluorocarbons02.11/Alert
Prior to the Biden administration leaving office, EPA finalized another rule in its continued push to phase down the use of hydrofluorocarbons (HFCs) by issuing a final rule on October 11, 2024, to establish the HFC Emissions Reduction and Reclamation (ER&R) program. EPA’s new rule, discussed in more detail below, will significantly impact industries that rely heavily on commercial-scale refrigeration systems. Further, companies with facilities that rely on older systems may require more frequent equipment repair or replacement to comply with the rule.
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New ASTM Standard Aims to Facilitate Assessing Climate Risk and Resilience Considerations01.28/Alert
Owners, lenders and investors in real property have long relied on ASTM E 1527-21, a product of ASTM International, in connection with Phase I Environmental Site Assessments. This product is used to establish that “all appropriate inquiries,” as defined at 42 CFR § 9601(35)(B) and 40 CFR § 312.20(a), have been met in connection with a property. As a matter of law, the performance of an ASTM-compliant Phase I ESA enables prospective purchasers and lessees to satisfy one of the criteria for statutory protections against liability for pre-existing environmental conditions under the Comprehensive Environmental Response, Compensation, and Liability Act. It also constitutes an indicia that appropriate environmental due diligence has been performed regarding the property.