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
On June 30, 2025, the U.S. Environmental Protection Agency (EPA) finalized updates to its New Source Performance Standards (NSPS) and Emission Guidelines for Other Solid Waste Incineration (OSWI) units under the Clean Air Act (CAA). These units — combustion systems that incinerate solid waste from commercial or institutional sources not otherwise regulated under specific incinerator categories — include very small municipal waste combustors and institutional incinerators. The final rule includes applicability-related and definitional changes expanding the class of incinerators subject to NSPS, revises the OSWI subcategories and tightens emission limits for key pollutants. It also adopts changes to startup, shutdown, and malfunction (SSM), and expands testing, monitoring, reporting, and recordkeeping requirements that will affect both existing and new OSWI units.
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. Boxerman2025-07-03 09:03:532025-07-02 17:45:22EPA Updates Clean Air Act Standards Applicable to Small Waste Incinerators
On January 20, 2025, President Donald J. Trump issued Executive Order No. 14156, Declaring a National Energy Emergency, which directed federal agencies to “identify and use all relevant lawful emergency and other authorities available to them to expedite the completion of all authorized and appropriated infrastructure [and] energy . . . projects.” On June 18, 2025, in alignment with this Executive Order and in response to two petitions filed by the Interstate Natural Gas Association of America (“INGAA”), the U.S. Federal Energy Regulatory Commission (“FERC”) advanced a package of regulatory actions aimed at accelerating the development of natural gas infrastructure.
https://environmentalenergybrief.sidley.com/wp-content/uploads/sites/4/2025/06/MN-18268-Updated-Environmental-and-Energy-Brief-Blog-PIPELINE-A.jpg606833Kenneth W. Irvinhttps://goodlifesci.sidley.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.pngKenneth W. Irvin2025-06-26 15:51:032025-06-26 15:51:03FERC Accelerates Natural Gas Infrastructure Expansion Through Key Waivers and Rulemaking
The California Department of Toxic Substances Control (DTSC) has proposed to amend its Safer Consumer Products (SCP) regulations by adding microplastics to the Candidate Chemicals List (Cal. Code Regs., tit. 22, § 69502.2). While this proposed action does not impose immediate compliance obligations, it has substantial implications because once microplastics are listed as Candidate Chemicals, DTSC may identify consumer products containing microplastics as Priority Products. The identification of a Priority Product triggers requirements under California law for manufacturers and entities throughout the supply chain, who must assess alternative product formulations and are subject to response measures prescribed by DTSC.
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. Gorsen2025-06-26 09:04:382025-06-25 17:47:49California Proposes Adding Microplastics to Candidate Chemicals List – Comment Period Open Through August 4, 2025
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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
EPA Updates Clean Air Act Standards Applicable to Small Waste Incinerators
On June 30, 2025, the U.S. Environmental Protection Agency (EPA) finalized updates to its New Source Performance Standards (NSPS) and Emission Guidelines for Other Solid Waste Incineration (OSWI) units under the Clean Air Act (CAA). These units — combustion systems that incinerate solid waste from commercial or institutional sources not otherwise regulated under specific incinerator categories — include very small municipal waste combustors and institutional incinerators. The final rule includes applicability-related and definitional changes expanding the class of incinerators subject to NSPS, revises the OSWI subcategories and tightens emission limits for key pollutants. It also adopts changes to startup, shutdown, and malfunction (SSM), and expands testing, monitoring, reporting, and recordkeeping requirements that will affect both existing and new OSWI units.
(more…)
Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Brittany A. Bolen
Washington, D.C.
bbolen@sidley.com
Brooklyn Hildebrandt
Los Angeles
bhildebrandt@sidley.com
FERC Accelerates Natural Gas Infrastructure Expansion Through Key Waivers and Rulemaking
On January 20, 2025, President Donald J. Trump issued Executive Order No. 14156, Declaring a National Energy Emergency, which directed federal agencies to “identify and use all relevant lawful emergency and other authorities available to them to expedite the completion of all authorized and appropriated infrastructure [and] energy . . . projects.” On June 18, 2025, in alignment with this Executive Order and in response to two petitions filed by the Interstate Natural Gas Association of America (“INGAA”), the U.S. Federal Energy Regulatory Commission (“FERC”) advanced a package of regulatory actions aimed at accelerating the development of natural gas infrastructure.
(more…)
Kenneth W. Irvin
Washington, D.C.
kirvin@sidley.com
Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Nicole E. Noëlliste
Washington, D.C.
nnoelliste@sidley.com
Grace Dickson Gerbas
Dallas
gdicksongerbas@sidley.com
Zev N. Falik
New York
zev.falik@sidley.com
California Proposes Adding Microplastics to Candidate Chemicals List – Comment Period Open Through August 4, 2025
The California Department of Toxic Substances Control (DTSC) has proposed to amend its Safer Consumer Products (SCP) regulations by adding microplastics to the Candidate Chemicals List (Cal. Code Regs., tit. 22, § 69502.2). While this proposed action does not impose immediate compliance obligations, it has substantial implications because once microplastics are listed as Candidate Chemicals, DTSC may identify consumer products containing microplastics as Priority Products. The identification of a Priority Product triggers requirements under California law for manufacturers and entities throughout the supply chain, who must assess alternative product formulations and are subject to response measures prescribed by DTSC.
(more…)
Maureen F. Gorsen
Century City
maureen.gorsen@sidley.com
Caleb J. Bowers
Los Angeles
cbowers@sidley.com
Brooklyn Hildebrandt
Los Angeles
bhildebrandt@sidley.com
Sophia E. Wallach
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