The Future of Environmental Review of Federal Permitting Remains Unsteady as White House Seeks to Rescind NEPA Regulations
On February 19, 2025, the Council on Environmental Quality (CEQ) submitted a proposed Interim Final Rule rescinding its regulations implementing the National Environmental Policy Act (NEPA). The Rule will become effective 45 days after its publication in the Federal Register, marking the end of nearly 50 years of CEQ regulations serving as the foundation for federal environmental reviews. This Interim Rule comes right at the deadline set by President Trump’s Executive Order (EO) 14154—Unleashing American Energy—which rescinded CEQ’s authority to issue NEPA regulations and revoked President Carter’s EO 11991, which had originally directed CEQ to promulgate implementing regulations.
FERC Orders Action on Co-Location Issues Related to Data Centers Running AI
Earlier today, at the February 20, 2025 Federal Energy Regulatory Commission (FERC) Open Meeting, FERC Commissioners voted unanimously to launch a review of issues associated with the co-location of large loads at generating facilities at PJM Interconnection, L.L.C. (PJM). The review will look at whether the PJM tariff needs to establish rules to provide clarity on co-location while ensuring grid reliability and fair costs to consumers.
States Challenge New York’s Climate Superfund Act
The Climate Superfund Act (Act), signed into law by New York Governor Kathy Hochul on December 26, 2024, faces a substantial lawsuit filed by a coalition of states and industry participants. As described in our previous post here, the Act authorizes the state government to unilaterally levy billions of dollars in fines on fossil fuel companies over the next two decades for alleged contribution to greenhouse gas (GHG) emissions.
President Trump’s Executive Order Seeks to Reduce Federal Regulation
President Trump’s January 31, 2025, Executive Order (EO) titled “Unleashing Prosperity Through Deregulation,” is a part of the new Administration’s broader policy to reduce federal regulation. The EO finds that federal regulations impose significant costs and complexities on American citizens and businesses that hinder economic growth, innovation, and global competitiveness – and it is the Administration’s policy to alleviate these burdens. This marks a policy change from the approach of the prior administration and is a broader effort than the regulatory reforms of the first Trump Administration.
States, Advanced Reactor Developer Challenge NRC’s Authority to License Advanced Reactors
The outcome of a lawsuit filed at the end of 2024 challenging the U.S. Nuclear Regulatory Commission’s (“NRC’s or the Agency’s”) authority under a 1956 rule to license certain nuclear facilities could have important implications for advanced reactor licensing processes and the supply of electricity in the U.S. in the years ahead.