Still Too Dirty To Fail, But Perhaps Not Quite So Thuggish

This issue examines pivotal developments in carbon markets and climate policy, including California, Québec, and Washington's historic carbon market linkage agreement, the Trump Administration's use of Defense Production...

Three bipartisan bills passed by the U.S. House of Representatives aim to revolutionize domestic recovery and recycling of critical minerals from waste streams, particularly lithium-ion batteries. The legislation addresses regulatory barriers under RCRA that currently complicate battery recycling operations and establishes new federal programs to coordinate critical mineral recovery efforts. Will these measures successfully position America to compete in the global race for critical mineral independence?

A federal judge has upheld Oregon's Plastic Pollution and Recycling Modernization Act against constitutional challenges, finding that the state's Extended Producer Responsibility program does not violate the Dormant Commerce Clause or Due Process Clause. The decision addresses critical questions about how much regulatory authority states may delegate to private producer responsibility organizations and what procedural protections producers must receive when mandatory fees are assessed.

Massachusetts imposed new requirements on data center projects with peak electricity demand exceeding 25 megawatts by Executive Order 658 on September 8, 2026. State permitting agencies cannot issue permits or authorizations for covered projects unless developers comply with the Healey-Driscoll administration’s June 2026 data center development and operations framework and submit a community benefits agreement (CBA) consistent with the Massachusetts Office of Environmental Justice and Equity (OEJE) March 2026 guidelines for community benefit plans (CBPs) and agreements.

As federal climate disclosure rules face rescission and state-level mandates remain largely stalled, California's SB 253 greenhouse gas reporting requirement stands as the sole advancing framework, creating a fragmented compliance landscape where multistate companies must navigate divergent regulatory trajectories. With the SEC's 2024 climate rules stayed and proposed for elimination, and California's Air Resources Board finalizing implementation mechanics for November 2026 reporting deadlines, the operatio

On 9 September 2026, the Environmental Protection Agency (EPA) and the US Army Corps of Engineers published a supplemental proposal to revise the definition of “waters of the United States” (WOTUS) under the Clean Water Act.1 The supplemental proposal builds on the agencies’ November 2025 proposed rule and responds to the Supreme Court’s 2023 decision in Sackett v. EPA, which significantly narrowed the scope of waters subject to federal jurisdiction under the Clean Water Act and established a new framework for determining which waters fall within that jurisdiction.

The EPA and Army Corps have issued a supplemental proposal that would fundamentally reshape federal Clean Water Act jurisdiction by replacing the controversial "wet season" framework with a stricter "perennial water" standard. This alternative approach would require water features to flow continuously year-round under ordinary conditions, with limited exceptions for brief dry periods, potentially excluding vast areas—particularly in the arid West—from federal wetlands regulation.

A federal court has struck down New York's Climate Change Superfund Act, which sought to recover $75 billion from fossil fuel companies based on historical emissions. The ruling found the Act preempted by the Clean Air Act, marking the first judicial decision on state climate superfund legislation and establishing that EPA's rescission of the endangerment finding does not alter preemption analysis.

New Mexico's Environment Department has clarified that its controversial PFAS labeling requirements, set to take effect January 1, 2027, will not apply to industrial products. The clarification addresses significant concerns about the scope and burden of labeling requirements for products containing intentionally added per- and polyfluoroalkyl substances (PFAS), limiting enforcement to consumer products as defined in the PFAS Protection Act.

California's "Truth in Recycling" law faces a critical October 4 deadline despite a federal court order blocking enforcement by the state Attorney General. Companies must navigate complex requirements for recyclability claims on products and packaging, including stringent collection and processing thresholds, while uncertainty remains about private enforcement and the law's ultimate fate in ongoing litigation.

The FDA, in collaboration with federal partners, held a landmark public hearing on September 14, 2026, to gather input on the future therapeutic use of psychedelic drugs, drawing over 18,000 registered attendees. This hearing represents one of the earliest implementations of Executive Order 14401, which directs federal agencies to expedite research, review, and approval of psychedelic drugs for serious mental health conditions.

Federal legislation has pushed back the scheduled ban on hemp-derived THC products from November 12 to December 11, 2026, providing a temporary reprieve for an industry employing 350,000 people nationwide. However, this one-month extension offers no permanent resolution, and stakeholders face mounting pressure as multiple state-level restrictions continue to take effect independently of federal timelines.

A federal judge in New York has struck down the state's climate superfund law, finding it preempted by federal Clean Air Act authority. The ruling raises critical questions about whether states can impose liability on energy companies for climate change impacts, or if such matters fall exclusively within federal jurisdiction. With the Supreme Court set to hear a related case, this decision may signal broader implications for climate litigation nationwide.

The National Labor Relations Board's new General Counsel has announced plans to challenge over a dozen Biden-era decisions that expanded employee protections and union rights. From severance agreements and workplace rules to captive-audience meetings and bargaining requirements, these reversals could fundamentally reshape the employer-employee relationship across American workplaces. Employers should prepare for a dramatically different regulatory environment as these changes take effect.

The U.S. Department of Energy and Small Business Administration have launched a groundbreaking partnership to direct private investment toward small businesses developing energy and critical technologies. This new initiative combines federal expertise with private capital to accelerate commercialization of innovations in artificial intelligence, quantum computing, advanced manufacturing, and energy security. Fund managers and entrepreneurs in these strategic sectors now have access to expanded financing opp

The Office of the Comptroller of the Currency has proposed new regulations that would impose Bank Secrecy Act and sanctions compliance requirements on permitted payment stablecoin issuers under its jurisdiction. This rulemaking, coordinated with FinCEN and OFAC, establishes anti-money laundering, counter-terrorism financing, and sanctions program standards for stablecoin issuers as part of the broader implementation of the GENIUS Act framework.

The Treasury Department and IRS have proposed sweeping new regulations that would revoke tax-exempt status from private schools maintaining any race-conscious policies, from admissions to scholarships to athletics. The proposed rule eliminates longstanding safe harbors for minority-preference programs and extends the Supreme Court's recent college admissions decision to K-12 schools and all educational programs.

The CFTC has proposed a new exemption from commodity pool operator registration for SEC-registered investment advisers operating privately offered commodity pools with sophisticated investors...

The SEC under Chairman Paul Atkins is reshaping enforcement priorities, returning to traditional financial fraud and insider trading cases while implementing significant Wells process reforms that enhance transparency and defendant rights. Recent enforcement actions and policy changes reveal a strategic pivot toward materiality-based disclosure requirements and away from expansive regulatory theories, though the agency maintains robust pursuit of accounting fraud, investment schemes, and misappropriation of

A federal appeals court has unanimously upheld EPA's authority to designate PFOA and PFOS as hazardous substances under CERCLA, reaffirming the agency's power to regulate environmental threats even when scientific certainty is incomplete. The decision, which included one of the most prominent anti-regulatory appellate judges, reinforces a 50-year precedent that allows EPA to act on scientific probabilities rather than absolute proof when protecting public health and the environment.