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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Department of Energy Blocks Shutdown of Coal-Fired Power Plant and Oil- and Gas-Fired Generator Units With Federal Emergency Orders

On May 23, 2025 and May 30, 2025, the Department of Energy (DOE) issued two emergency orders under its Federal Power Act (FPA) Section 202(c) authority effectively delaying the closure of two power plants. DOE Order No. 202-25-3 (hereinafter, the Campbell Order) requires the Midcontinent Independent System Operator (MISO) and Consumers Energy to “take all measures necessary” to ensure that the 1,560 MW coal-fired J.H. Campbell Power Plant (Campbell Plant) in West Olive, Michigan — originally slated for retirement on May 31, 2025 — is “available to operate” until the expiration of the order on August 21, 2025. DOE Order No. 202-25-4 (hereinafter, the Eddystone Order) similarly requires PJM Interconnection (PJM) and Constellation Energy to keep 760 MW of oil- and gas-fired peaking capacity — also set to retire on May 31, 2025 — at the Eddystone Generation Station (Eddystone Station) in Pennsylvania available until August 28, 2025. There is also the potential of extensions of these expiration dates.

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Deregulatory Announcements at the U.S. Department of Transportation: A Sign of Bigger Things to Come?

On May 29, the U.S. Department of Transportation announced more than 50 deregulatory actions at the three operating administrations of the department that focus on road transportation: the Federal Highway Administration (FHWA), Federal Motor Carrier Safety Administration (FMCSA), and National Highway Traffic Safety Administration (NHTSA). The Secretary of Transportation was quoted as saying, “my department is slashing duplicative and outdated regulations that are unnecessarily burdensome, waste taxpayer dollars, and fail to ensure safety.”

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Supreme Court Makes Major Course Correction, Limiting Scope of NEPA Reviews and Demanding Judicial Deference to Agency in Uinta Basin Rail Case

In Seven County Infrastructure Coalition v. Eagle County, Colorado, the Supreme Court held that under the National Environmental Policy Act (NEPA), an agency evaluating a particular project is not required to consider the effects of other future or geographically separate projects that may be built or expanded if the proposed project were approved, thus closing the door to the expansive NEPA analyses demanded by project opponents in many cases. The Court also separately stressed that the “central principle of judicial review in NEPA cases is deference,” underscoring that NEPA grants agencies discretion to determine the scope of the review and that their discretionary decisions should not be extensively second-guessed by a court. The cumulative impact of these holdings are much more than a minor course correction and should both significantly limit the scope of future NEPA analyzes and strengthen the defensibility of such analyzes in court.

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EPA Advances State Primacy for Underground Injection Control Class VI Well Programs: Key Updates for Carbon Sequestration Efforts

The U.S. Environmental Protection Agency (EPA) continues to take steps to expand state primacy for the Underground Injection Control (UIC) Class VI well program, established under the Safe Drinking Water Act (SDWA). Class VI wells, added as a distinct category in 2010, are used to inject carbon dioxide into deep rock formations for the purpose of long-term geologic carbon sequestration.

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Department of the Interior Accelerates Permitting for Oil and Gas, Adopts 28-Day Mandate

In response to the Trump administration’s push to increase U.S. energy output by declaring a national energy emergency, the Department of the Interior (the Interior) has released plans to aid the administration’s goals.  These include the Interior’s Emergency Permitting Procedures intended to accelerate and streamline review and approval of certain energy projects, primarily oil and gas.  Bypassing formal rulemaking, the Interior cites its authority during emergencies to implement “alternative processes” to comply with the National Environmental Policy Act (NEPA), the National Historic Preservation Act (NHPA), and the Endangered Species Act (ESA).  The alternative processes are available to current and future applicants so long as they affirm in writing to the Interior that they qualify for and want to avail themselves of the expedited processes.

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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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