Governor Abbott’s Environmental Permitting Freeze Expands Pause on Texas Data Center Development to All Texas Data Centers Pending Statewide Audit
On September 21, 2026, Texas Governor Greg Abbott issued an order halting all permits sought by data centers from the Texas Commission on Environmental Quality (TCEQ) until the Public Utility Commission of Texas (PUCT) and Electric Reliability Council of Texas (ERCOT) can complete the comprehensive audit initiated by the governor in early August.[1]
Sidley European Real Assets Update
2026 has so far been another year of contrasts. The first half of the year has been shaped by geopolitical and macroeconomic uncertainty, including escalating tensions in the Middle East and continued concerns over potential disruption to energy supplies through the Strait of Hormuz. Combined with persistent inflationary pressures, higher cost of debt, and the prospect of interest rates remaining higher for longer, this has led to a cautious M&A environment across Europe and the U.S. In the UK, we have also, of course, had a change of Prime Minister, the impact of which will become clearer in the coming weeks.
D.C. Circuit Limits DOE’s Emergency Authority to Keep Power Plants Running
On September 11, 2026, the D.C. Circuit vacated a Department of Energy (DOE) order requiring Consumers Energy to continue operating the J.H. Campbell coal-fired power plant in Michigan under Section 202(c) of the Federal Power Act. People of the State of Michigan v. U.S. Department of Energy, No. 25-1159 (D.C. Cir. Sept. 11, 2026). The decision limits DOE’s ability to use its emergency authority to override state and regional decisions concerning generation retirements.
FERC Launches Region-Specific Reform Initiative for Large-Load Interconnection and Co-Location
On June 18, 2026, the Federal Energy Regulatory Commission (FERC or the Commission) issued six show cause orders directing each Regional Transmission Organization and Independent System Operator (RTO/ISO) under its jurisdiction to justify or revise its tariff provisions governing large-load interconnection and co-location arrangements. The orders represent the Commission’s most comprehensive effort to date to establish a regulatory framework for connecting data centers and other large loads while protecting grid reliability and existing customers from cost shifts.
U.S. Nuclear Regulatory Commission Licenses First-of-its-Kind Fuel Fabrication Facility
In May 2025, President Trump issued a suite of executive orders – Executive Orders 14299, 14300, 14301, and 14302 – aimed at expanding nuclear power capabilities, strengthening nuclear supply chains within the United States, and increasing nuclear exports (Nuclear Executive Orders). To further the goals of the Nuclear Executive Orders, the President directed the executive branch to carry out certain actions including, but not limited to, expediting reactor licensing, prioritizing federal funding for advanced reactor technologies, and supporting the domestic production of nuclear fuels.
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.
