Delaware is widely recognized as the leading state for business incorporation, due largely to its comprehensive and well-established legal framework. Texas, however, was the first mover in one important area: divisive mergers. Divisive mergers are a statutory mechanism that allow businesses to divide into multiple entities and allocate assets and liabilities among them without, among other benefits, triggering contractual restrictions on assignment. They can facilitate restructurings, acquisitions, divestitures, or allocation of assets or liabilities, but must be approached carefully to avoid potential fraudulent claims and third-party challenges.
https://sidley-goodlifesci-wordpress.onistaged.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.png00Chris Folmsbeehttps://sidley-goodlifesci-wordpress.onistaged.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.pngChris Folmsbee2025-08-25 23:22:212025-11-25 23:26:10Third Party Claims to Divisive Mergers in Texas and Delaware
On August 1, 2025, the U.S. Court of Appeals for the D.C. Circuit upheld the U.S. Environmental Protection Agency’s (EPA) authority under the American Innovation and Manufacturing (AIM) Act to phase down hydrofluorocarbons (HFCs) through a cap-and-trade program. In IGas Holdings, Inc. v. EPA, No. 23-1261, a unanimous panel rejected constitutional and administrative law challenges from refrigerant industry members, finding that the AIM Act provides a clear “intelligible principle” to guide EPA’s allowance allocation. The Court also held that EPA’s decision to exclude 2020 market data from its allocation methodology was not arbitrary and capricious.
https://sidley-goodlifesci-wordpress.onistaged.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.png00Sidley Multisitehttps://sidley-goodlifesci-wordpress.onistaged.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.pngSidley Multisite2025-08-22 14:00:172025-08-22 14:00:17D.C. Circuit Upholds U.S. EPA’s HFC Cap-and-Trade Program Under AIM Act
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.
https://energyinfrastructurepulse.sidley.com/wp-content/uploads/sites/7/2025/11/MN-18268-Updated-Environmental-and-Energy-Brief-Blog-SOLAR-PANEL-ARRAY-FROM-ABOVE-1.jpg606833Sidley Multisitehttps://sidley-goodlifesci-wordpress.onistaged.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.pngSidley Multisite2025-08-20 18:32:502025-08-20 18:32:50Preferred Equity: A Capital Solution to Meet the Looming “PIS” Deadline
The California Air Resources Board (CARB) has proposed to repeal the High-Priority and Drayage components of the Advanced Clean Fleets (ACF) regulations. The proposal also includes changes to the Low Carbon Fuel Standard (LCFS) regulations and implements AB 1594 (flexibility for public utilities).
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://sidley-goodlifesci-wordpress.onistaged.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.png00Sidley Multisitehttps://sidley-goodlifesci-wordpress.onistaged.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.pngSidley Multisite2025-07-24 19:49:522025-07-24 19:49:52White 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.
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.
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://energyinfrastructurepulse.sidley.com/wp-content/uploads/sites/7/2025/11/GettyImages-1086951106.jpg396600Sidley Multisitehttps://sidley-goodlifesci-wordpress.onistaged.com/wp-content/uploads/sites/6/2022/03/sidleyLogo-e1643922598198.pngSidley Multisite2025-07-08 22:03:482025-07-08 22:03:48H.R.1: What You Should Know About the Environmental and Energy Provisions in the “One Big Beautiful Bill” Act
Third Party Claims to Divisive Mergers in Texas and Delaware
Delaware is widely recognized as the leading state for business incorporation, due largely to its comprehensive and well-established legal framework. Texas, however, was the first mover in one important area: divisive mergers. Divisive mergers are a statutory mechanism that allow businesses to divide into multiple entities and allocate assets and liabilities among them without, among other benefits, triggering contractual restrictions on assignment. They can facilitate restructurings, acquisitions, divestitures, or allocation of assets or liabilities, but must be approached carefully to avoid potential fraudulent claims and third-party challenges.
(more…)
Chris Folmsbee
Houston
cfolmsbee@sidley.com
Marcela Varela
Houston
marcela.varela@sidley.com
Enrrique Santa Cruz
Houston
esantacruz@sidley.com
D.C. Circuit Upholds U.S. EPA’s HFC Cap-and-Trade Program Under AIM Act
On August 1, 2025, the U.S. Court of Appeals for the D.C. Circuit upheld the U.S. Environmental Protection Agency’s (EPA) authority under the American Innovation and Manufacturing (AIM) Act to phase down hydrofluorocarbons (HFCs) through a cap-and-trade program. In IGas Holdings, Inc. v. EPA, No. 23-1261, a unanimous panel rejected constitutional and administrative law challenges from refrigerant industry members, finding that the AIM Act provides a clear “intelligible principle” to guide EPA’s allowance allocation. The Court also held that EPA’s decision to exclude 2020 market data from its allocation methodology was not arbitrary and capricious.
(more…)
Samuel B. Boxerman
Washington, D.C.
sboxerman@sidley.com
Brittany A. Bolen
Washington, D.C.
bbolen@sidley.com
Leena Dai
Washington, D.C.
leena.dai@sidley.com
Riley Desper
Washington, D.C.
rdesper@sidley.com
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.
(more…)
Chris Folmsbee
Houston
cfolmsbee@sidley.com
Nisha Jain
Washington, D.C.
nisha.jain@sidley.com
Harvey Lou
Houston
harvey.lou@sidley.com
CARB Proposes to Repeal Advanced Clean Fleets Regulation
The California Air Resources Board (CARB) has proposed to repeal the High-Priority and Drayage components of the Advanced Clean Fleets (ACF) regulations. The proposal also includes changes to the Low Carbon Fuel Standard (LCFS) regulations and implements AB 1594 (flexibility for public utilities).
(more…)
Maureen F. Gorsen
Century City
maureen.gorsen@sidley.com
Justin A. Savage
Washington, D.C.
jsavage@sidley.com
Caleb J. Bowers
Los Angeles
cbowers@sidley.com
Abigail Kuchnir
Chicago
abigail.kuchnir@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
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
Resources
Meet the Team
Cliff W. Vrielink
cvrielink@sidley.com
Kenneth W. Irvin
kirvin@sidley.com
Tara Higgins
thiggins@sidley.com
Herschel T. Hamner III
hmamner@sidley.com
James MacArthur
james.macarthur@sidley.com
Raymond A. Atkins Ph.D.
ratkins@sidley.com
Kevin P. Lewis
klewis@sidley.com