Week of July 27
From restricting exports of critical minerals, nuclear waste lifecycle plans, climate change liability, OSHA’s structure, and clean energy tax credits to leaf blowers and politically motivated grant cancellations, regulators and courts spent another busy week reshaping the environmental and energy landscape. Reach out to connect with me or to discuss these or any other environmental or energy topics of interest to you.
Critical Minerals Become a National Security Priority
President Trump signed an order authorizing the use of Defense Production Act authorities to restrict exports of certain industrial waste streams containing recoverable critical minerals and rare earth elements. The move is intended to support domestic recovery and recycling of strategic materials, strengthen U.S. supply chains, and reduce reliance on foreign sources of critical minerals. Read more: Executive Order 14415.
New York Climate Superfund Law Faces Major Legal Challenge
A federal court heard arguments in litigation challenging New York’s climate superfund law, which seeks to require large emitters to pay billions of dollars for climate-related damages. The case could become an important test of whether state climate accountability laws are preempted by federal law and may influence similar legislation being considered in other states. Read more: E&E News Article.
Connecticut Clean Water Act Case Rejects Climate-Based Liability Theory
In a closely watched Clean Water Act case, a federal court granted summary judgment on most claims asserted against a Connecticut petroleum terminal operator, including claims premised on climate-change-related stormwater planning obligations. The decision significantly narrowed the case and may provide guidance regarding attempts to expand environmental compliance obligations through novel climate-based legal theories. Read more: District Court Ruling and Order.
Energy Grant Dispute Raises Political Questions
Court filings in litigation involving canceled Department of Energy grants have fueled debate regarding the role of politics in federal energy funding decisions. In a recent filing, the Trump administration acknowledged that it canceled $7.6 billion in grants for hundreds of clean energy projects based solely on whether the state leaned Democrat in the 2024 presidential election. The dispute involves billions of dollars in clean energy and infrastructure funding and is likely to remain closely watched as challenges continue. Read more: Department of Energy’s Stipulations and Agreements.
Nuclear Waste Plan Tied to New Reactor Development
Five states have agreed to explore hosting nuclear lifecycle campuses that could include spent fuel management, fuel processing, advanced reactors, and related infrastructure. Supporters view the proposal as a potential path forward for addressing the nation’s long-standing nuclear waste challenges while advancing domestic nuclear energy development. Read more: Newsweek Article.
EPA Identifies Risks Associated with Industrial Solvent
EPA released a draft evaluation finding that certain worker uses of 1,1,2-trichloroethane may present unreasonable health risks. If the finding is finalized, EPA would be required under the Toxic Substances Control Act to consider future regulations designed to reduce worker exposure to the chemical. Read more: EPA Draft Risk Evaluation.
Federal Court Expands Potential Clean Air Act Liability for Air Agencies
A federal court in California held that citizens may pursue Clean Air Act claims against state and local air agencies for alleged failures to carry out certain State Implementation Plan obligations. Although the court did not rule on the merits of the claims, the decision could broaden litigation risks for air regulators and encourage additional citizen-suit challenges involving SIP implementation and enforcement activities. Read more: District Court Order Denying Motion to Dismiss.
OSHA Enforcement Structure Faces Constitutional Challenge
An Idaho lumber company is challenging OSHA’s administrative enforcement process, arguing that the system violates constitutional jury trial and due process rights. The case is part of a broad wave of challenges to federal administrative enforcement proceedings following recent Supreme Court decisions addressing agency authority and adjudication. Read more: Plaintiff’s Motion for Summary Judgement.
Court Upholds Local Ban on Gas-Powered Leaf Blowers
A federal court upheld a New Jersey ordinance prohibiting the use of gas-powered leaf blowers, rejecting arguments that the rule was preempted by the Clean Air Act. The decision highlights the continuing ability of states and municipalities to regulate certain local environmental and quality-of-life issues through their traditional police powers. Read more: District Court Opinion.