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 And at the direction of President Trump’s February 25, 2025 Executive Order 14154 — “Unleashing American Energy” — CEQ rescinded its NEPA implementing regulations.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.

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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.

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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.

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U.S. Army Corps of Engineers Proposes to Reissue and Modify Nationwide Permits

On June 18, the U.S. Army Corps of Engineers (Corps) published a Notice of Proposed Rulemaking that would reissue 56 of its existing Nationwide Permits (NWPs), introduce one new NWP, and make targeted modifications to the scope of certain NWPs and their terms. Key updates include a new NWP for fish passage improvements and changes to reflect recent litigation outcomes — including rescinding Florida’s program authorization and the NWPs for finfish and (in part) shellfish mariculture activities — as well as clarifying the trigger for state water quality certification under Section 401. The Corps also proposes, among other changes, an express prohibition on combining acreage limits when using more than one NWP to purportedly authorize a greater impact, and requiring restoration of areas affected by construction mats.

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Supreme Court Issues Split Rulings on Clean Air Act Venue Disputes

On June 18, 2025, the U.S. Supreme Court issued decisions in two significant Clean Air Act cases — EPA v. Calumet Shreveport Refining and Oklahoma v. EPA — clarifying the appropriate venue for legal challenges to certain final EPA actions. In Calumet, the Court held that EPA’s universal denials of small-refinery-exemption (SRE) petitions under the Renewable Fuel Standard program were “based on a determination of nationwide scope or effect,” and thus challenges may only be brought in the D.C. Circuit Court of Appeals. By contrast, the Court in Oklahoma held that challenges to EPA’s disapproval of State Implementation Plans (SIPs) belong in the applicable regional circuit courts because the agency’s determinations were based on facts and rationales unique to each state. Although some gray areas remain, the twin decisions put several long-standing venue issues to rest and should encourage quicker resolution of Clean Air Act regulatory challenges.

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EPA Proposes to Rescind Two Biden-EPA Fossil Fuel-Fired Power Plant Rules

On June 11, the EPA proposed two Clean Air Act (CAA) rules that would affect fossil-fuel fired electric generating units (EGUs).  One rule would repeal greenhouse gas (GHG) standards under Section 111 and the second would repeal the 2024 EPA amendments to the mercury and air toxics (MATS) standards.  The proposed rules are a part of the current administration’s stated goal to promote U.S. energy by reducing regulation of the power sector.  The EPA estimates that, together, the two rules will save more than $1.3 billion in regulatory costs per year.  Here are five key takeaways from these proposals.

Department of Transportation Announces a Streamlined Regulatory Exemption Process for Autonomous Vehicles

On June 13, the U.S. Department of Transportation (DOT) and the National Highway Traffic Safety Administration (NHTSA) announced changes to the process for exempting autonomous vehicle companies from the Federal Motor Vehicle Safety Standards (FMVSS) under 49 C.F.R. Part 555.  Part 555 offers an important route for the sale and deployment of innovative autonomous vehicles.  The recent announcement evidences a desire to speed up agency decisions on Part 555 exemptions, though the application process will continue to be a substantial undertaking.

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Proactive Risk Management in the Face of Opposition to Data Centers and Crypto Mining

The rapid growth of artificial intelligence (AI), cloud computing, and cryptocurrency continues to drive unprecedented U.S. demand for energy. This acceleration is encountering an increasingly organized wave of opposition, particularly to the siting of electric generation assets required to operate data centers and crypto mining facilities. A new report from the Environmental Integrity Project (EIP), A Pollution Footprint the Size of Texas, sharply criticizes the permitting of new natural gas power plants in Texas — many of which are being built for proposed to power data centers and crypto mines.

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Meet the Team

<a target=‘_blank’ href="https://www.sidley.com/en/people/v/vrielink-cliff-w">Cliff W. Vrielink</a>

Cliff W. Vrielink

Houston
<a target=‘_blank’ href="https://www.sidley.com/en/people/i/irvin-kenneth-w">Kenneth W. Irvin</a>

Kenneth W. Irvin

Washington, D.C.
<a target=‘_blank’ href="https://www.sidley.com/en/people/h/higgins-tara">Tara Higgins</a>

Tara Higgins

New York
<a target=‘_blank’ href="https://www.sidley.com/en/people/h/hamner-iii-herschel-t">Herschel T. Hamner III</a>

Herschel T. Hamner III

Houston
<a target=‘_blank’ href="https://www.sidley.com/en/people/m/macarthur-james">James MacArthur</a>

James MacArthur

London
<a target=‘_blank’ href="https://www.sidley.com/en/people/a/atkins-raymond-a">Raymond A. Atkins Ph.D.</a>

Raymond A. Atkins Ph.D.

Washington, D.C.
<a target=‘_blank’ href="https://www.sidley.com/en/people/l/lewis-kevin-p">Kevin P. Lewis</a>

Kevin P. Lewis

Houston
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