New York, New England ISOs File Tariff Amendments at FERC to Allow Them to Collect Import Duties on Canadian Electricity — But Only If the Feds Say So
On February 28, 2025, the New York Independent System Operator, Inc. (“NYISO”) and ISO New England (“ISONE”) separately submitted requests to the Federal Energy Regulatory Commission (“FERC”) for expedited action on amendments to their FERC-approved tariffs that would allow them to recover the costs of any duties, tariffs, or taxes imposed on them by a federal agency on the import of electricity from Canada into their respective service territories.
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Rule comes right at the deadline set by President Trump’s Executive Order (EO) 14154—Unleashing American Energy—which rescinded CEQ’s authority to issue NEPA regulations and revoked President Carter’s EO 11991, which had originally directed CEQ to promulgate implementing regulations.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, 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.
EPA Publishes First-Of-Its-Kind Framework for Considering Cumulative Impacts Across Agency Actions
On November 21, 2024, the U.S. Environmental Protection Agency (EPA) published Notice of a newly developed draft framework intended to provide all EPA programs with a shared reference point for determining when and how to analyze or consider cumulative impacts—defined broadly to include the totality of exposures to combinations of environmental stressors and their effects on health and quality-of-life outcomes. Keeping pace with the Biden administration EPA’s environmental justice drive, key goals of the Interim Framework for Advancing Consideration of Cumulative Impacts include empowering EPA to (1) more fully and accurately characterize the realities communities face, (2) pinpoint the levers of decision making and identify opportunities for interventions that improve health and quality of life while advancing equity, and (3) increase meaningful engagement, improve transparency, and center actions on improving health and environmental conditions in communities.
U.S. EPA Power Plant Effluent Rule Allowed to Go Into Effect
On October 9, 2024, the Eighth Circuit refused to block new U.S. Environmental Protection Agency (EPA) wastewater limits for coal-fired power plants. In Southwestern Electric Power Co., et al v. EPA, et al, multiple states, trade groups, and utility companies challenged EPA’s May 2024 Supplemental Effluent Limitations Guidelines and Standards for the Steam Electric Power Generating Point Source Category (ELG Rule).
Congress Passes ADVANCE Act to Facilitate U.S. Development of Advanced Nuclear Reactors
On June 18, 2024, the U.S. Senate passed the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act to accelerate the deployment of nuclear energy capacity, including by accelerating the licensing and creating new incentives for advanced nuclear reactor technologies, among them small modular reactors. The Senate introduced the ADVANCE Act in March 2023, and the House of Representatives passed the Fire Grants and Safety Act, which contains the ADVANCE Act, on May 8, 2024. Now that both houses have passed the Act, it will go to President Joe Biden for signature. Full text of the ADVANCE Act as passed by the Senate can be found here on page 4.
Vermont and New York Climate Acts are First in a Wave of Likely Climate Change Cost Recovery Laws
On May 30, 2024, Vermont’s Republican governor, Phil Scott, allowed Vermont’s S 259 — also referred to as the “Climate Superfund Act” — to become law without his signature. The stated goal of this law is to mitigate the impacts of climate change.
U.S. Wildlife Agencies Propose Rules to Reinstate Longstanding Endangered Species Act Regulations
On June 22, the U.S. Fish and Wildlife Service and National Oceanic and Atmospheric Administration published a series of proposed rules pursuant to the Endangered Species Act (the Act), seeking to clarify or reverse implementing regulations issued in 2019 during the Trump administration. The agencies jointly proposed two rules—one revising Section 7 regulations, related to interagency consultations, and a second revising Section 4 regulations, related to listing decisions and critical habitat designations. The Fish and Wildlife Service independently proposed a third rule to reinstate the general application of “blanket rule” options for protecting newly listed threatened species pursuant to Section 4(d) of the Act.
White House Announces New ‘Ocean Justice Strategy’
On June 7, 2023, the White House Council on Environmental Quality (CEQ) published a request for information (RFI) in the Federal Register seeking input on its planned Ocean Justice Strategy (the “Strategy”). The RFI describes the Strategy as an effort to integrate environmental justice principles into ocean-related activities of the federal government. The Strategy could have wide-ranging impacts on the development of ocean energy resources.
