Week of September 14

As summer officially gives way to fall, this week’s environmental and energy headlines reflected several themes that have dominated much of 2026: data centers, grid reliability, critical minerals, PFAS, artificial intelligence, and the continued reshaping of federal environmental policy. Courts, Congress, regulators, and industry all remained busy as debates continued over who will power the future economy, who will pay for it, and how environmental protections will evolve along the way.

EPA Repeals Power Plant Greenhouse Gas Standards, Prompting Immediate Legal Challenge

EPA finalized one of the Trump administration’s most significant environmental rollbacks by repealing Biden-era greenhouse gas standards for coal- and gas-fired power plants. The action eliminates requirements that would have required many facilities to deploy technologies such as carbon capture and storage, and reflects EPA’s position that it lacks authority to regulate greenhouse gas emissions from power plants in the manner contemplated by the prior rule. Environmental and public health organizations have already filed suit challenging the repeal, setting up what is likely to become a closely watched test of EPA’s authority under the Clean Air Act and a major chapter in future climate policy litigation. Read more: EPA Press Release and Environmental Defense Fund Press Release.

Congress Advances Critical Mineral Recycling Legislation

The U.S. House passed three bipartisan bills intended to promote recovery and recycling of critical minerals from lithium-ion batteries and other waste streams – H.R. 9615, 9616, and 9617. The measures would facilitate battery recycling, support recovery of critical minerals from contaminated sites and waste materials, and direct federal agencies to develop a coordinated national strategy for critical mineral recovery. Read more: Waste Dive.

Data Center Growth Continues to Raise Reliability Concerns

A new study commissioned by the Pennsylvania Public Utility Commission warns that rapidly growing electricity demand, driven largely by data center development, could pose significant reliability risks unless new generation and infrastructure are added. The report highlights growing concerns that electricity demand may outpace available supply in coming years, increasing pressure on grid operators, utilities, regulators, and policymakers. Read more: PAPUC Press Release.

House Approves Data Center Ratepayer Protection Bill

The House overwhelmingly approved bipartisan legislation (H.R. 93400) designed to encourage states and utilities to ensure that large data centers bear the costs associated with their electricity demand and infrastructure needs. The bill reflects growing bipartisan concern regarding who should pay for the substantial grid investments required to support artificial intelligence and large-scale computing facilities. Read more: Utility Dive.

Court Limits DOE’s Emergency Authority Over Power Plant Retirements

A federal appellate court has vacated a Department of Energy order requiring a Michigan coal plant to remain available under DOE’s emergency authority. Michigan v. U.S. Dep’t of Energy, No. 25-1159, slip op. (D.C. Cir. Sept. 11, 2026). The court held that DOE’s authority is intended to address immediate reliability emergencies and may not be used as a broad tool to override state and regional resource adequacy planning decisions. Read more: Utility Dive.

Federal Court Vacates EPA’s Methylene Chloride Rule

Another federal appellate court vacated EPA’s rule which restricted most consumer, industrial, and commercial uses of methylene chloride and sent the regulation back to the agency. The court concluded that EPA failed to adequately address economic impacts and improperly shifted certain compliance burdens to regulated entities. East Fork Enterprises, Inc. v. EPA, Nos. 24-60227 and 24-60256 (5th Cir. Sept. 15, 2026). Read more: ICLG.

Court Expands PFAS Firefighter Litigation

A district court ruling allowed Connecticut firefighters’ PFAS claims against several manufacturers to proceed, including claims involving protective turnout gear. Uniformed Professional Fire Fighters Association of Connecticut et al. v. 3M Company et al., No. 3:24-cv-01101 (D. Conn. Sept. 15, 2026). The ruling may contribute to the continued expansion of PFAS litigation involving occupational exposure and products containing so-called “forever chemicals.” Read more: Reuters.

EPA Civil Rights Requirements for States Struck Down Nationwide

A district court in Louisiana expanded an earlier decision striking down EPA’s use of disparate-impact analysis under Title VI of the Civil Rights Act when reviewing state permitting and grant programs. State of Louisiana v. U.S. Environmental Protection Agency, et al., No. 2:23-cv-00692 (W.D. La. Sept, 15, 2026). The ruling eliminates EPA’s ability to require states to consider certain indirect discrimination impacts in permitting and funding decisions and represents another significant setback for federal environmental justice initiatives. Read more: Legal Newsline.

EPA’s Use of Artificial Intelligence Draws Scrutiny

Several recent reports highlighted EPA’s increasing interest in using artificial intelligence to evaluate chemicals, pesticides, and permitting decisions. Supporters view AI as a potential tool for improving efficiency and accelerating reviews, while critics have raised questions regarding transparency, public disclosure, oversight, and the role of human decision-making in environmental regulation. Read more: The American Prospect.

Study Suggests Air Quality Worsened After Embassy Monitoring Program Ended

A recent study concluded that air pollution levels increased in several international cities after the United States ended a long-running embassy air quality monitoring program in 2025. Researchers suggest that publicly available monitoring data may have contributed to improved accountability and pollution control efforts in areas with limited local monitoring infrastructure. Read more: Yahoo News.

These are just a few of the environmental and energy developments that caught my attention last week. I would be happy to discuss these topics and their potential implications for your business or projects.

Please feel free to reach out if you would like to connect and subscribe to the ELP Blog!

Week of September 7

As the calendar turns toward fall, last week’s environmental and energy headlines reflected both familiar trends and a few surprises. Data centers, grid infrastructure, nuclear energy, permitting disputes, and environmental regulation all remained in the spotlight. At the same time, I came across a particularly intriguing research project involving discarded oyster shells and rare earth metals. While still in its early stages, the concept is a fascinating example of how innovative thinking may one day help address both waste management and water quality challenges.

Transportation Corridors Could Become the Next Energy Superhighways

Federal policymakers are increasingly exploring whether existing highway and railroad rights-of-way can be used to accelerate deployment of transmission lines, broadband infrastructure, water pipelines, and other utility projects. Several initiatives are focused on leveraging existing transportation corridors to reduce siting conflicts, streamlining permitting, and helping meet growing electricity and communications demand driven by artificial intelligence, manufacturing, and economic development. Read more: Secretary Duffy’s Op-Ed.

Massachusetts Establishes New Data Center Development Framework

Massachusetts adopted a comprehensive statewide framework governing large-scale data center development. The new requirements focus on grid impacts, community benefits, environmental performance, water use, and local engagement, reflecting growing state-level attention to the infrastructure demands and community impacts associated with large data center projects. Read more: Governor Healy Press Release.

Oyster Shells Show Promise for Cleaning Contaminated Water

Researchers in Ireland found that crushed oyster, mussel, and cockle shells may be capable of removing rare earth metals from contaminated water while simultaneously recovering those materials in solid form. The process is still in the research phase and requires further testing, but the concept is particularly interesting because it could potentially transform an abundant waste product into a low-cost tool for addressing water contamination and resource recovery. Read more: Economic Times.

States Challenge Endangered Species Act Rollbacks

A coalition of states filed lawsuits seeking to overturn several recent Endangered Species Act regulatory changes. Among other issues, the lawsuits challenge revisions to the definition of “harm” and other protections, setting up what is likely to become another significant legal battle over the future scope of federal endangered species regulation. See, e.g., Mass. v. U.S. Fish & Wildlife Service, No. 4:26-cv-10072 (N.D. Cal. filed Sept. 9, 2026) and California v. Burgum, No. 3:26-cv-10071 (N.D. Cal. filed Sept. 9, 2026). Read more: Connecticut AG Press Release.

EPA Removes Scope 3 Emissions Guidance

EPA removed several online resources related to measuring and reporting Scope 3 greenhouse gas emissions. The action is part of the Trump administration’s broader effort to reconsider climate-related policies and guidance and may create additional uncertainty for companies that have relied on federal resources to evaluate supply-chain emissions. Read more: Supply Chain Brain.

Energy Credit Dispute Sparks Interstate Lawsuit

West Virginia filed suit challenging Pennsylvania’s restrictions on certain energy credit markets, arguing that the state’s program improperly favors in-state energy producers. The lawsuit raises Commerce Clause questions and highlights the continued tension between state clean energy programs and regional electricity markets. See West Virginia ex rel. McCuskey v. Pennsylvania Public Utility Comm., No. 3:26-cv-02527-KM (M.D. Pa. filed Sept. 3, 2026). Read more: The Center Square.

Appeals Court Vacates Pipeline Water Permit

The Third Circuit vacated a key water quality certification for the proposed Northeast Supply Enhancement natural gas pipeline project, concluding that New Jersey regulators did not adequately explain their decision to approve the permit. The ruling sends the matter back for further review and creates another hurdle for a project intended to expand natural gas supplies in the Northeast. See NRDC v. NJDEP, Nos. 26-1252 & 26-1253 (3d Cir. Sept. 8, 2026). Read more: Reuters.

Federal Government Supports Nuclear Plant Restart

The Department of Energy announced up to $1.9 billion in financing to support the restart of a shuttered nuclear power plant in Iowa. The project forms part of a broader federal effort to expand nuclear generation and address growing electricity demand associated with electrification, manufacturing growth, and AI-driven data center development. Read more: DOE Press Release.

These are just a few of the environmental and energy developments that caught my attention last week. I would be happy to discuss these topics and their potential implications for your business or projects.

Please feel free to reach out if you would like to connect and subscribe to the ELP Blog!

Week of August 31, 2026

Labor Day may mark the unofficial end of summer, but environmental and energy regulators, courts, and policymakers show no signs of slowing down. Last week’s developments focused on several familiar themes, including federal permitting reform, the ongoing evolution of Clean Water Act jurisdiction, state climate initiatives, the impact of Congressional action, and the continued expansion of producer responsibility laws.

EPA Revisits WOTUS Definition with Focus on Drought Conditions

EPA and the U.S. Army Corps of Engineers issued a supplemental proposal to revise the definition of “waters of the United States” (WOTUS). The proposal would place greater emphasis on drought conditions when determining whether streams and wetlands qualify for Clean Water Act protection, continuing the Trump administration’s effort to align federal jurisdiction with the Supreme Court’s decision in Sackett v. EPA, 598 U.S. 651 (2023), balancing private property rights and maintaining water quality. Read more: EPA and ACOE Press Release.

Oregon’s Packaging Producer Responsibility Law Survives Constitutional Challenge

An Oregon federal court upheld the state’s packaging extended producer responsibility law against constitutional challenges brought by a national trade association. The ruling allows Oregon’s recycling funding framework to move forward and may provide support for similar producer responsibility programs being implemented elsewhere around the country. Read more: Court’s Findings of Fact and Conclusions of Law.

New York Climate Superfund Law Suffers Major Setback

A federal judge ruled that New York’s Climate Change Superfund Act cannot be enforced, concluding that the law is preempted by federal law and conflicts with national interests in regulating greenhouse gas emissions. West Virginia v. James, No. 1:25-cv-00168-BKS-DJS (N.D.N.Y. Aug. 31, 2026). The decision represents one of the most significant judicial challenges to state climate superfund laws and could have implications for similar efforts in other states. Read more: The Hill.

House Advances Bill to Accelerate Mining Permits

The U.S. House of Representatives passed legislation – Protecting Domestic Mining Act (H.R. 1501) – that would make all mining and mineral processing projects eligible for the FAST-41 federal permitting program. Supporters argue the measure would help accelerate domestic mining projects and strengthen critical mineral supply chains, while opponents contend it could reduce environmental review and public oversight. Read more: Legis1.

Court Blocks EPA’s California Waiver Reclassification

A federal court ordered EPA to withdraw its attempt to reclassify four California Clean Air Act waivers as agency rules. California v. U.S. Envtl. Prot. Agency, 1:2026-cv-02185 (D.D.C. Sep. 2, 2026). The decision temporarily preserves California’s ability to implement several emissions-related programs while broader litigation continues concerning the Trump Administration’s effort to subject the waivers to Congressional Review Act procedures. Read more: Reuters.

Week of August 24, 2026

This week’s developments highlight the increasingly close relationship among energy security, emerging technologies, and environmental constraints. Nuclear deployment, grid resilience, data center growth, water demand, and chemical regulation are all creating new opportunities and new legal and operational risks.

Army Plans Major Microreactor Deployment

The U.S. Army plans to invest $2.2 billion to deploy microreactors at five military bases under its Janus Program, with more than 20 reactors potentially installed within five years. The program is intended to improve energy resilience at military installations while accelerating the development and licensing of advanced nuclear technologies, although the selected designs remain commercially unproven. Read more: Utility Dive Article

Restrictions Target Foreign-Made Grid Equipment

President Trump signed an emergency order restricting the purchase, importation, and installation of certain foreign-made equipment and software for the bulk-power system where cybersecurity or operational risks are present. The Department of Energy has 120 days to develop implementing regulations, and the restrictions may add pressure to already constrained electrical-equipment supply chains. Read more: Executive Order

Ninth Circuit Upholds EPA’s New-Chemicals Review Rule

The Ninth Circuit upheld EPA’s 2024 rule establishing procedures for reviewing new chemicals under the Toxic Substances Control Act. The court concluded that EPA acted within its authority by permitting some persistent, bioaccumulative, and toxic chemicals to undergo a 30-day review rather than the standard 90-day process and reasonably declined to impose a categorical ban. Read more: Case Miner Copy of Decision

Data Center Electricity Demand Raises Water-Supply Concerns

A Ceres report estimates that power generation serving data centers in seven states withdraws approximately 3.4 trillion gallons of freshwater annually, underscoring the relationship between expanding computing infrastructure and local water availability. The report focuses on withdrawals rather than consumption, however, and some experts caution that including water returned to rivers, particularly water passing through hydropower facilities, could overstate the practical impact. Read more: Ceres Report

Aluminum-Based System Targets Cleaner Data Center Backup Power

Voya Energy raised $35 million to develop a system that uses scrap aluminum as a potential alternative to diesel backup generators at data centers. The technology relies on an electrochemical reaction that the company says produces electricity without carbon emissions, although it remains at the prototype stage and has not yet been demonstrated commercially. Read more: Yahoo Finance Article

AI Power Demand Revives an Earlier Small-Reactor Project

BWXT and Applied Atomics are seeking to revive the mPower small modular reactor project using a $400 million test facility in Lynchburg, Virginia, that had sat unused for roughly a decade. The initiative reflects renewed interest in advanced nuclear power as a potential source of reliable electricity for data centers, but it also faces the cost, engineering, and deployment challenges that have historically limited commercial small-reactor projects in the United States. Read more: International Business Times Article

Week of August 17

As August winds down and many people squeeze in one last summer getaway, the environmental and energy world continues to generate headlines. This week’s developments focused on several recurring themes we’ve been watching throughout 2026: PFAS, data centers, grid growth, and the continuing evolution of Superfund policy.

Court Upholds EPA’s PFAS Superfund Designations

The U.S. Court of Appeals for the District of Columbia Circuit upheld EPA’s designation of PFOA and PFOS as hazardous substances under CERCLA. The court rejected challenges brought by an industry coalition and concluded that EPA acted lawfully in designating the two PFAS compounds as hazardous substances under federal Superfund law. Read more: Court’s Decision.

EPA Advances Superfund Cleanup Efforts

EPA announced the deletion of six Superfund sites from the National Priorities List and the partial deletion of two additional sites, while also proposing partial deletions at three more locations. The agency characterized the action as part of a broader effort to accelerate Superfund cleanups and encourage redevelopment of remediated properties for productive community use. Read more: EPA Press Release.

Solar Growth Reshapes the Nation’s Electric Grid

According to new research from BloombergNEF, growth in solar generation has helped the region served by the Midcontinent Independent System Operator (MISO) become the nation’s largest electric supply region, surpassing the region centered on PJM Interconnection. The development highlights the continued expansion of utility-scale solar generation and the increasingly important role renewable resources are playing in meeting rising electricity demand across the entire country. Read more: Insurance Journal Article.

Pennsylvania Adopts Strict Data Center Requirements

Pennsylvania Governor Josh Shapiro signed an executive order establishing new requirements for data center development, including community transparency measures, local approval requirements, and obligations related to power supply and environmental performance. The action reflects the growing scrutiny that states are applying to large data center projects as concerns about electricity demand, infrastructure impacts, and community effects continue to grow. Read more: Governor Shapiro Press Release.

Week of August 10

Even during the dog days of summer, the environmental and energy world rarely stays quiet for long. This week’s headlines featured multibillion-dollar PFAS settlements, new restrictions on critical mineral exports, renewed scrutiny of offshore wind projects, and continued debate over the scope of federal agency authority. Please reach out if you would like to learn more about this or other environmental and energy topics.

Commerce Restricts Exports of Battery Recycling Materials

The U.S. Department of Commerce issued a temporary final rule restricting exports of “black mass” from shredded lithium-ion batteries and certain tungsten waste materials. The rule is intended to preserve domestic supplies of recoverable critical minerals and support national defense objectives, but it may also create challenges for battery recyclers that currently rely on overseas processing capacity. Read more: Federal Register.

New Jersey PFAS Settlement Clears Final Approval

A federal court approved major PFAS settlements between the state of New Jersey and companies associated with 3M and historical DuPont operations. The approved settlements have a combined potential value approaching $3 billion over 25 years and represent one of the most significant PFAS recovery actions to date. Read more: NJ Attorney General Press Release.

DOE Cancels Three Proposed Transmission Corridors

The U.S. Department of Energy (DOE) announced that it will not move forward with three proposed National Interest Electric Transmission Corridors that had been under review since 2024. DOE stated that the current designation process should not continue and indicated that future transmission planning efforts will focus on alternative approaches for improving grid reliability and affordability. Read more: DOE Press Release.

Interior Department Reconsiders New Jersey Offshore Wind Approval

Federal agencies will revisit approvals granted for the Atlantic Shores Offshore Wind project located off the New Jersey coast after the Department of the Interior requested a remand to reconsider portions of the prior analysis. Opponents of the project argued that the agencies did not adequately evaluate impacts on tourism and marine resources, while developers continue to defend the project approvals. Read more: E&E News Article.

Eighth Circuit Rejects Challenge to Mine Safety Review Commission

The federal Court of Appeal for the Eighth Circuit rejected a mining company’s effort to invalidate penalties by challenging the constitutionality of the administrative judge system used by the Federal Mine Safety and Health Review Commission. Although the court resolved the case on procedural grounds, the decision comes amid a broader wave of challenges to federal administrative adjudication systems following recent Supreme Court decisions. Read more: Court’s Opinion.

Week of August 3

This was another week where the courts were as active as the regulators. Decisions involving EPA authority, climate liability, renewable energy development, and grid modernization continued to shape the legal and regulatory landscape, while states and regulators wrestled with the growing demand that AI and data centers are placing on the electric grid.

Appeals Court Limits EPA’s Clean Air Act Authority

The Ninth Circuit ruled that EPA exceeded its authority under the Clean Air Act when it approved portions of California’s air quality plans for the San Joaquin Valley. Relying in part on the Supreme Court’s decision in Loper Bright, the court held that EPA improperly created a feasibility-based exemption that was not authorized by the statute, underscoring the continued judicial scrutiny of agency interpretations of environmental laws. Read more: Ninth Circuit Opinion.

EPA Flags Additional Chemicals for Potential Regulation

EPA released draft risk evaluations concluding that two commonly used dichlorobenzene chemicals may present unreasonable risks to certain workers and consumers. If those findings are finalized, the agency would be required under TSCA to consider regulations aimed at reducing the identified risks. Read more: EPA Press Release.

Court Orders Resumption of Wind Project Reviews

A federal court ordered the Department of Defense to temporarily lift its freeze on reviewing wind energy projects for potential impacts on military operations. The ruling allows the review process to resume while litigation continues and could affect more than 100 projects that industry groups said were impacted by the freeze. Read more: District Court Opinion.

Texas Increases Scrutiny of Data Center Growth

Texas regulators have paused certain data center interconnection activities while state officials conduct a review of projects seeking access to the electric grid. The move reflects growing concern about the potential impacts of large data centers on grid reliability, transmission infrastructure, water use, and electricity costs as AI-driven demand continues to grow. Read more: Governor Abbott Press Release.

Supreme Court Takes Up Major Climate Liability Case

The U.S. Supreme Court announced that it will begin its next term with a case that could significantly affect state and local climate litigation against oil companies. The Court will review whether claims seeking to hold fossil fuel companies responsible for climate-related damage may proceed under state law, an issue with potentially significant implications for future climate litigation nationwide. Read more: SCOTUSblog Docket Page.

Court Upholds FERC’s Grid Interconnection Reform Rule

The D.C. Circuit upheld FERC’s landmark interconnection reform rule designed to address lengthy grid connection queues for new energy projects. The decision preserves reforms intended to speed project reviews, impose study deadlines, and reduce backlogs that have delayed the development of new generation resources. Read more: D.C. Circuit Opinion.

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.

Week of July 20

This week’s stories highlight how regulators, courts, industry groups, and policymakers are grappling with grid reliability, environmental compliance, workplace safety, and emerging technologies. Whether you are evaluating data center projects, navigating environmental permitting issues, assessing workplace health and safety obligations, or following evolving energy infrastructure policies, I would be happy to discuss these topics and their potential implications for your business or projects. Please feel free to reach out if you would like to connect.

Lawmakers Focus on Who Pays for Data Center Growth

A bipartisan House committee advanced legislation that would encourage states to require large data center operators to bear the costs they impose on electric systems rather than shift those costs to ratepayers. The proposal reflects growing concern over the impacts of AI-driven electricity demand on utility bills, grid reliability, and local communities. Read more: Energy & Commerce Committee Press Release.

Senate Proposal Seeks Faster Grid Interconnections

New legislation introduced in the Senate would create a streamlined “connect and manage” approach for certain power generation projects that agree to limit their output to avoid costly grid upgrades. Supporters argue the approach could reduce lengthy interconnection delays and bring new energy resources online more quickly. Read more: Senate Bill 5008.

Fifth Circuit Limits OSHA Authority Over Mental Illness Recordkeeping

The U.S. Court of Appeals for the Fifth Circuit vacated an OSHA regulation requiring employers to record certain work-related mental illness diagnoses. The court concluded that OSHA lacked clear congressional authorization to regulate mental illness through its recordkeeping requirements, continuing a broader trend of courts closely examining agency authority. Read more: Fifth Circuit Decision.

Court Orders EPA to Move Forward with Soot Pollution Designations

A federal court ordered EPA to identify areas that fail to meet stricter PM2.5 (fine particulate matter) standards finalized during the Biden administration. The ruling requires EPA to proceed with Clean Air Act implementation efforts that had been delayed and could have significant implications for states and regulated facilities located in future nonattainment areas. Read more: Court’s Decision.

Trump Calls for Review of Judicial Science Reference Manual

President Trump has called for a review of the National Academy of Sciences’ Reference Manual on Scientific Evidence, a longstanding resource used by federal judges in cases involving scientific and technical issues. The request follows criticism of the manual’s treatment of climate science and highlights the ongoing debate over the role of scientific expertise in environmental litigation. Read more: Courthouse News Service Article.

FERC Targets Data Center Reliability Risks

FERC directed the North American Electric Reliability Corporation (NERC) to develop new reliability standards addressing large computational loads, including data centers. The order reflects growing concern that rapidly increasing power demand from data centers could create reliability challenges for the bulk electric system if not properly managed. Read more: NERC Press Release.

Federal Government Explores Offshore Nuclear Power

The Trump administration announced a new effort to evaluate whether nuclear power facilities could someday be deployed in federal ocean waters. The initiative includes coordination between federal agencies and comes alongside broader efforts to explore small modular reactors and other advanced nuclear technologies for maritime applications. Read more: DOI Press Release.

Industry Groups Seek Unified Chemical Safety Rules

A coalition of more than 75 trade associations asked EPA, OSHA, and OMB to coordinate workplace chemical safety requirements. The groups argue that overlapping EPA and OSHA regulations create inconsistent compliance obligations and are advocating for a more unified federal framework. Read more: Letter to EPA, OSHA, and OMB.

Week of July 13, 2026

As most of us were distracted by wildfire smoke, the World Cup, and avoiding lettuce, there were still a few interesting environmental and energy stories that caught our attention last week.

New York Pauses Permitting for New Large Data Centers

New York became the first state to impose a moratorium on new hyperscale data centers, with Governor Kathy Hochul announcing a pause of up to one year on environmental permits for large facilities using 50 megawatts or more of power. State officials say the pause is intended to provide time to evaluate the impacts of data centers on electricity demand, water resources, air quality, and utility costs, while developing a longer-term regulatory framework for AI-driven infrastructure growth. Read more: Governor Hochul Press Release.

Environmental Groups Challenge ESA “Harm” Rollback

As expected, just days after the Trump administration finalized its repeal of the Endangered Species Act’s longstanding definition of “harm,” thirteen environmental and tribal groups filed lawsuits in federal courts in California and Washington seeking to overturn the rule. The plaintiffs argue that eliminating habitat destruction from the definition of “harm” violates the Endangered Species Act, the National Environmental Policy Act, and the Administrative Procedure Act, setting up what is likely to be a closely watched legal battle over the future scope of ESA protections. Read more: S&P Global Article.

New Jersey Supreme Court Takes Up Environmental Justice Challenge

The New Jersey Supreme Court agreed to hear a challenge to the state’s environmental justice regulations brought by labor and industry groups. The case focuses on whether the regulations exceed the authority granted by New Jersey’s Environmental Justice Law, which requires certain facilities seeking permits to evaluate environmental and public health impacts on overburdened communities and identify mitigation measures. Read more: Court’s Order Granting Petition.