FERC Seeks Comments on Blanket Authorizations for LNG Facilities: What Stakeholders Should Know
FERC is seeking comments on its Notice of Inquiry[1] in Docket No. RM26-2-000 on whether —and, if so, how — it should revise Parts 153, 157, and 380 of its regulations to allow “blanket authorization” for certain activities at LNG plants. The NOI aligns with the stated goal of new leadership at the Commission to streamline permitting processes to encourage the maintenance and construction of energy infrastructure. Comments are due January 26, 2026.
FERC’s First Meeting Under New Leadership: Key Takeaways and Signals for 2026
On November 20, 2025, the U.S. Federal Energy Regulatory Commission (FERC or the Commission) held its first monthly open meeting since the confirmation and swearing-in of Chairman Laura Swett and Commissioner David LaCerte.[1] It marks the first time FERC has had a full five-member commission since the departures of Commissioner Mark Christie and Chairman Willie Phillips earlier this year. FERC’s first meeting under new leadership coincided with an agenda that underscored urgency and a new strategic direction. The summary below outlines the Commission’s discussion and key actions.
Bringing Data Centers to the Grid: FERC’s Emerging Large Load Framework
On October 23, 2025, Secretary of Energy Chris Wright directed the Federal Energy Regulatory Commission (FERC) to consider an Advance Notice of Proposed Rulemaking (ANOPR) to initiate rulemaking procedures to “ensure the timely and orderly interconnection of large loads to the transmission systems.” Under the ANOPR, “large loads” are defined as those with a capacity of 20 MW or more, aligning with the definition of “large generation sources” in FERC’s Order No. 2003.
Governors of PJM States Intensify Pressure on PJM for Reform
A bipartisan group of governors of PJM Interconnection (PJM) member states has intensified calls for reforming PJM after what they have described as a “crisis of confidence,” citing high electricity prices, interconnection delays, and lack of transparency and state participation in the RTO’s decision-making processes.
Council on Environmental Quality Issues Long Awaited Guidance for Environmental Review Across Agencies
On September 29, 2025, the Council on Environmental Quality (CEQ) issued long-awaited guidance to formalize agencies’ individual efforts to implement the National Environmental Policy Act (NEPA). After rescinding the CEQ regulations that shaped NEPA for 40+ years and bearing witness to various agencies’ independent efforts to issue their own NEPA rules, CEQ issued new guidance to more systematically guide the agencies’ efforts. As CEQ notes, “NEPA implementation reform now has been called for, authorized, and directed by all three branches of government at the highest possible level: Congress, the President, and the Supreme Court.” The guidance reflects direction from each.
Interconnection Reform Critical to the Efficiency of Energy Markets
The U.S. power grid is undergoing a period of rapid change, with federal agencies such as the Department of Energy (DOE) and the Federal Energy Regulatory Commission (FERC) initiating programs and regulatory actions to address the integration of new generation and transmission resources. According to a recent DOE report, the U.S. grid is facing the retirement of 104 GW of firm capacity (generation that can operate continuously) by 2030, and the planned addition of 209 GW of new generation in the same period. The White House is concerned that the retirement of “baseload” power plants will impede President Trump’s economic goals; as such, press reports say that the administration is expected to issue new emergency orders preventing fossil fuel plants from retiring.
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.
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.
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.
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.
