We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
Environmental and Energy Brief
Perspectives for the Environmental and Energy Community
Third Party Claims to Divisive Mergers in Texas and Delaware
Delaware is widely recognized as the leading state for business incorporation, due largely to its comprehensive and well-established legal framework. Texas, however, was the first mover in one important area: divisive mergers. Divisive mergers are a statutory mechanism that allow businesses to divide into multiple entities and allocate assets and liabilities among them without, among other benefits, triggering contractual restrictions on assignment. They can facilitate restructurings, acquisitions, divestitures, or allocation of assets or liabilities, but must be approached carefully to avoid potential fraudulent claims and third-party challenges.
(more…)
Chris Folmsbee
Houston
cfolmsbee@sidley.com
Marcela Varela
Houston
marcela.varela@sidley.com
Enrrique Santa Cruz
Houston
esantacruz@sidley.com
D.C. Circuit Upholds U.S. EPA’s HFC Cap-and-Trade Program Under AIM Act
On August 1, 2025, the U.S. Court of Appeals for the D.C. Circuit upheld the U.S. Environmental Protection Agency’s (EPA) authority under the American Innovation and Manufacturing (AIM) Act to phase down hydrofluorocarbons (HFCs) through a cap-and-trade program. In IGas Holdings, Inc. v. EPA, No. 23-1261, a unanimous panel rejected constitutional and administrative law challenges from refrigerant industry members, finding that the AIM Act provides a clear “intelligible principle” to guide EPA’s allowance allocation. The Court also held that EPA’s decision to exclude 2020 market data from its allocation methodology was not arbitrary and capricious.
(more…)
Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Brittany A. Bolen
Washington, D.C.
bbolen@sidley.com
Leena Dai
Washington, D.C.
leena.dai@sidley.com
Riley Desper
Washington, D.C.
rdesper@sidley.com
Preferred Equity: A Capital Solution to Meet the Looming “PIS” Deadline
The One Big Beautiful Bill Act signed into law by President Trump on July 4, 2025 (the “OBBBA”) terminates the Section 45Y Clean Electricity Production Tax Credit (the “45Y PTC”) and Section 48E Clean Electricity Investment Tax Credit (the “48E ITC”) for wind and solar facilities that are placed in service (“PIS”) after December 31, 2027, except for those projects that begin construction by July 4, 2026. This significantly accelerates the timeline for sponsors and investors to bring projects online in order to maintain profitability of the project via tax credit sales.
(more…)
Chris Folmsbee
Houston
cfolmsbee@sidley.com
Nisha Jain
Washington, D.C.
nisha.jain@sidley.com
Harvey Lou
Houston
harvey.lou@sidley.com
North Carolina Court Upholds Attorney General’s Common Law Authority to Pursue PFAS Suit
On August 7, 2025, the North Carolina Business Court denied a motion to dismiss in North Carolina v. E.I. Du Pont de Nemours, affirming the Attorney General’s authority to pursue environmental and fraud claims related to PFAS and GenX discharges. The court held that the Attorney General’s common law authority to protect state natural resources remains intact despite the North Carolina General Assembly’s prior repeal of a statute that had explicitly authorized such enforcement. As PFAS regulation continues to expand across the country, this decision, if followed, would signal that companies involved in PFAS discharge may face liability under common law theories—even in jurisdictions lacking PFAS statutes or where statutory enforcement authority has been rolled back.
(more…)
Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Leena Dai
Washington, D.C.
leena.dai@sidley.com
CARB Proposes to Repeal Advanced Clean Fleets Regulation
The California Air Resources Board (CARB) has proposed to repeal the High-Priority and Drayage components of the Advanced Clean Fleets (ACF) regulations. The proposal also includes changes to the Low Carbon Fuel Standard (LCFS) regulations and implements AB 1594 (flexibility for public utilities).
(more…)
Maureen F. Gorsen
Century City
maureen.gorsen@sidley.com
Justin A. Savage
Washington, D.C.
jsavage@sidley.com
Caleb J. Bowers
Los Angeles
cbowers@sidley.com
Abigail Kuchnir
Chicago
abigail.kuchnir@sidley.com
U.S. EPA Eliminates Key Scope 3 Role, Leaving Gap Ahead of SB 253 Compliance
On July 28, 2025, the U.S. Environmental Protection Agency (EPA) eliminated the positions and unit responsible for maintaining the Extended Input-Output (EEIO) model, a key federal tool used to calculate Scope 3 greenhouse gas (GHG) emissions. The move signals a likely end to federal support for EEIO emissions factors, presenting challenges for companies preparing to comply with California’s landmark climate disclosure law, SB 253 (as amended by SB 219). As federal involvement recedes, the private sector and California regulators may fill the gap, introducing uncertainty about how Scope 3 emissions will be quantified going forward.
(more…)
Maureen F. Gorsen
Century City
maureen.gorsen@sidley.com
Heather M. Palmer
Houston
hpalmer@sidley.com
Leena Dai
Washington, D.C.
leena.dai@sidley.com
PG&E Agrees to First-Ever Accidental Release Reporting Settlement
On July 28, 2025, the U.S. Environmental Protection Agency (EPA) announced a settlement with Pacific Gas & Electric (PG&E) for failing to promptly report an accidental release. This is the first-ever settlement for the failure to comply with the U.S. Chemical Safety and Hazard Investigation Board (CSB) Accidental Release Reporting Rule (Reporting Rule).
(more…)
Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Hannah Posen
Chicago
hposen@sidley.com
White House AI Action Plan Signals Environmental Regulation Reform for Data Centers
On July 23, 2025, the White House released “Winning the Race: America’s AI Action Plan” (“AI Action Plan”), outlining over 90 planned federal policy actions the Trump administration plans to implement to speed up artificial intelligence development across the United States. This rapid growth in domestic AI will result in an unprecedented U.S. demand for energy and require siting of significant electric generation assets to operate supporting infrastructure. Electricity demand from data centers represents a major new source of electricity demand and redundancy that will likely require a modernized approach to permitting and regulation to support sufficient growth on the Trump administration’s desired trajectory. For additional information on the impact of AI growth and the challenges of associated data center permitting, see Sidley’s blog posts here and here.
(more…)
Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Peter Whitfield
Washington, D.C.
pwhitfield@sidley.com
Brittany A. Bolen
Washington, D.C.
bbolen@sidley.com
Riley Desper
Washington, D.C.
rdesper@sidley.com
Archives
Categories
Upcoming Events
The Future of ESG and Sustainability Reporting and Due Diligence: California and Europe Leading Global Trends
Regulator Roundtable: EPA’s Assistant Administrator for Air and Radiation Aaron Szabo
Resources
Meet The Team
Samuel B. Boxerman
sboxerman@sidley.com
Keturah A. Brown
keturah.brown@sidley.com
Grace Dickson Gerbas
gdicksongerbas@sidley.com
Terence T. Healey
thealey@sidley.com
Kenneth W. Irvin
kirvin@sidley.com
Christopher J. Polito
cpolito@sidley.com
Casey Khan
ckhan@sidley.com
Michael L. Lisak
mlisak@sidley.com
Brittany A. Bolen
bbolen@sidley.com
Brooklyn Hildebrandt
bhildebrandt@sidley.com
Nicole E. Noëlliste
nnoelliste@sidley.com
Hannah Posen
hposen@sidley.com
Jack Raffetto
jraffetto@sidley.com