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.
https://goodlifesci.sidley.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.png00Maureen F. Gorsenhttps://goodlifesci.sidley.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.pngMaureen F. Gorsen2025-08-06 11:20:492025-08-06 11:20:49U.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) 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).
https://environmentalenergybrief.sidley.com/wp-content/uploads/sites/4/2025/07/AdobeStock_30573757.jpg400600Samuel B. Boxermanhttps://goodlifesci.sidley.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.pngSamuel B. Boxerman2025-07-30 12:43:362025-07-30 12:43:36PG&E Agrees to First-Ever Accidental Release Reporting Settlement
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.
https://goodlifesci.sidley.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.png00Samuel B. Boxermanhttps://goodlifesci.sidley.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.pngSamuel B. Boxerman2025-07-24 14:49:522025-07-24 14:50:05White House AI Action Plan Signals Environmental Regulation Reform for Data Centers
The California legislature recently passed SB 131 and AB 130, two bills designed to streamline environmental review under the California Environmental Quality Act (CEQA). While publicly touted as significant CEQA reform, the legal impact is more constrained, offering little relief for most industrial, commercial, or logistics-related development. SB 131 does, however, significantly expand the Governor’s discretionary power to designate certain large-scale private projects for streamlined CEQA treatment, offering potential opportunity for selected developers.
https://environmentalenergybrief.sidley.com/wp-content/uploads/sites/4/2025/05/Abstract-white.jpg400600David R. Carpenterhttps://goodlifesci.sidley.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.pngDavid R. Carpenter2025-07-10 10:05:192025-07-10 10:05:19California’s CEQA Reforms Offer Narrow Exemptions — With One Powerful Exception
A new report by the U.S. Department of Energy provides a comprehensive assessment of the adequacy and reliability of the U.S. electric grid and warns that without urgent reforms and investment, the U.S. electric grid will be unable to support the nation’s economic ambitions, particularly in artificial intelligence (“AI”) and digital infrastructure. The report responds to recent executive orders emphasizing the need for a uniform, data-driven approach to evaluating grid reliability, particularly in the face of accelerating power plant retirements and surging electricity demand from data centers and AI applications.
https://goodlifesci.sidley.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.png00Kenneth W. Irvinhttps://goodlifesci.sidley.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.pngKenneth W. Irvin2025-07-08 17:50:392025-07-08 17:21:09U.S. Department of Energy: U.S. Grid Faces Urgent Reliability Challenges Amid AI-Driven Load Growth and Plant Retirements
On July 4, President Trump signed H.R.1—the “One Big Beautiful Bill,” referred to as the OBBB—into law. This sweeping tax and policy law, enacted through the process of budget reconciliation requiring a simple majority vote by Congress, carries significant implications for environmental funding, clean energy development, and climate-related programs administered by the U.S. Environmental Protection Agency (EPA), as well as the tax code. Much of the provisions affect programs and funding originally authorized under the 2022 Inflation Reduction Act (“IRA”), which was former President Biden’s signature budget reconciliation bill. Below, we outline some of the key features of the OBBB environmental and energy provisions.
https://environmentalenergybrief.sidley.com/wp-content/uploads/sites/4/2025/03/GettyImages-1086951106.jpg396600Brittany A. Bolenhttps://goodlifesci.sidley.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.pngBrittany A. Bolen2025-07-08 17:03:482025-07-08 17:08:37H.R.1: What You Should Know About the Environmental and Energy Provisions in the “One Big Beautiful Bill” Act
In one of its many changes, the One Big Beautiful Bill Act, enacted on July 4, 2025, eliminated civil penalties for noncompliance with federal fuel economy standards. Specifically, Section 40006 of the Act amends the language of the Corporate Average Fuel Economy (CAFE) statute to reset the maximum civil penalty to $0.00. Although the statute and its implementing regulations otherwise remain in place, this amendment removes any civil penalties for producing passenger cars and light trucks that do not meet fuel economy requirements.
https://goodlifesci.sidley.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.png00Adam M. Ravivhttps://goodlifesci.sidley.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.pngAdam M. Raviv2025-07-08 10:42:262025-07-08 10:42:26Congress Eliminates Corporate Average Fuel Economy (CAFE) Penalties for Passenger Cars and Light Trucks
On July 3, 2025, numerous federal agencies initiated an effort to revise the manner in which they comply with the National Environmental Policy Act (NEPA). NEPA, a cornerstone of environmental governance and project development in the U.S., has historically been implemented through regulations from the Council on Environmental Quality (CEQ). The DC Circuit questioned the legality of those regulations, as well as CEQ’s authority to implement them. And at the direction of President Trump’s February 25, 2025 Executive Order 14154 — “Unleashing American Energy” — CEQ rescinded its NEPA implementing regulations. In place, CEQ provided guidance for agencies that instructed them to update their NEPA procedures by February 2026 in a manner consistent with recent statutory amendments that prioritizes “efficiency and certainty over any other policy objectives.” Today, we are getting our first glimpse into what that process will look like.
https://environmentalenergybrief.sidley.com/wp-content/uploads/sites/4/2025/07/MN-18268-Updated-Environmental-and-Energy-Brief-Blog-PIPELINE-B.jpg606833Samuel B. Boxermanhttps://goodlifesci.sidley.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.pngSamuel B. Boxerman2025-07-03 14:35:232025-07-03 14:54:20Agencies Collectively Move to Overhaul Environmental Review Regulations
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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
California’s CEQA Reforms Offer Narrow Exemptions — With One Powerful Exception
The California legislature recently passed SB 131 and AB 130, two bills designed to streamline environmental review under the California Environmental Quality Act (CEQA). While publicly touted as significant CEQA reform, the legal impact is more constrained, offering little relief for most industrial, commercial, or logistics-related development. SB 131 does, however, significantly expand the Governor’s discretionary power to designate certain large-scale private projects for streamlined CEQA treatment, offering potential opportunity for selected developers.
(more…)
David R. Carpenter
Los Angeles
drcarpenter@sidley.com
Maureen F. Gorsen
Century City
maureen.gorsen@sidley.com
Jack S. Yeh
Century CIty
jyeh@sidley.com
Caleb J. Bowers
Los Angeles
cbowers@sidley.com
Brooklyn Hildebrandt
Los Angeles
bhildebrandt@sidley.com
U.S. Department of Energy: U.S. Grid Faces Urgent Reliability Challenges Amid AI-Driven Load Growth and Plant Retirements
A new report by the U.S. Department of Energy provides a comprehensive assessment of the adequacy and reliability of the U.S. electric grid and warns that without urgent reforms and investment, the U.S. electric grid will be unable to support the nation’s economic ambitions, particularly in artificial intelligence (“AI”) and digital infrastructure. The report responds to recent executive orders emphasizing the need for a uniform, data-driven approach to evaluating grid reliability, particularly in the face of accelerating power plant retirements and surging electricity demand from data centers and AI applications.
(more…)
Kenneth W. Irvin
Washington, D.C.
kirvin@sidley.com
Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Grace Dickson Gerbas
Dallas
gdicksongerbas@sidley.com
Christopher J. Polito
Washington, D.C.
cpolito@sidley.com
H.R.1: What You Should Know About the Environmental and Energy Provisions in the “One Big Beautiful Bill” Act
On July 4, President Trump signed H.R.1—the “One Big Beautiful Bill,” referred to as the OBBB—into law. This sweeping tax and policy law, enacted through the process of budget reconciliation requiring a simple majority vote by Congress, carries significant implications for environmental funding, clean energy development, and climate-related programs administered by the U.S. Environmental Protection Agency (EPA), as well as the tax code. Much of the provisions affect programs and funding originally authorized under the 2022 Inflation Reduction Act (“IRA”), which was former President Biden’s signature budget reconciliation bill. Below, we outline some of the key features of the OBBB environmental and energy provisions.
(more…)
Brittany A. Bolen
Washington, D.C.
bbolen@sidley.com
Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Lauren E. DeCarlo
Chicago
lauren.decarlo@sidley.com
Kenneth W. Irvin
Washington, D.C.
kirvin@sidley.com
Hagai Zaifman
New York
hagai.zaifman@sidley.com
Alvin Wang
awang@sidley.com
Jennifer Waclawik
Chicago
jwaclawik@sidley.com
Nisha Jain
Washington, D.C.
nisha.jain@sidley.com
Congress Eliminates Corporate Average Fuel Economy (CAFE) Penalties for Passenger Cars and Light Trucks
In one of its many changes, the One Big Beautiful Bill Act, enacted on July 4, 2025, eliminated civil penalties for noncompliance with federal fuel economy standards. Specifically, Section 40006 of the Act amends the language of the Corporate Average Fuel Economy (CAFE) statute to reset the maximum civil penalty to $0.00. Although the statute and its implementing regulations otherwise remain in place, this amendment removes any civil penalties for producing passenger cars and light trucks that do not meet fuel economy requirements.
(more…)
Adam M. Raviv
Washington, D.C.
adam.raviv@sidley.com
Agencies Collectively Move to Overhaul Environmental Review Regulations
On July 3, 2025, numerous federal agencies initiated an effort to revise the manner in which they comply with the National Environmental Policy Act (NEPA). NEPA, a cornerstone of environmental governance and project development in the U.S., has historically been implemented through regulations from the Council on Environmental Quality (CEQ). The DC Circuit questioned the legality of those regulations, as well as CEQ’s authority to implement them. And at the direction of President Trump’s February 25, 2025 Executive Order 14154 — “Unleashing American Energy” — CEQ rescinded its NEPA implementing regulations. In place, CEQ provided guidance for agencies that instructed them to update their NEPA procedures by February 2026 in a manner consistent with recent statutory amendments that prioritizes “efficiency and certainty over any other policy objectives.” Today, we are getting our first glimpse into what that process will look like.
(more…)
Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Kenneth W. Irvin
Washington, D.C.
kirvin@sidley.com
Peter Whitfield
Washington, D.C.
pwhitfield@sidley.com
Brooklyn Hildebrandt
Los Angeles
bhildebrandt@sidley.com
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