The Liskow Legislative Minute – Week 4

On August 22, 2011, the West Virginia Department of Environmental Protection (WVDEP) issued an emergency rule outlining several new requirements governing the development of horizontal wells in the Marcellus Shale.

California has enacted the nation's most comprehensive data center legislation, fundamentally reshaping how electricity costs, grid upgrades, and energy reporting obligations are allocated. The new laws require data centers to bear full transmission upgrade costs, comply with clean energy procurement mandates, and submit detailed operational disclosures to state regulators.

The U.S. Department of Energy's Alternative Fuels and Feedstocks Office plans to award up to $60 million for projects that expand domestic energy production through innovative chemicals, fertilizers, fuels, and feedstock technologies. The funding opportunity will focus on three key areas: biointermediate depots, refinery integration with alternative feedstocks, and hydrogen/natural gas blending pilot sites. Applications are expected to open in November 2026 for research, development, and scale-up projects l

The Department of Energy has launched a rulemaking process to implement new restrictions on foreign-sourced bulk-power system equipment, seeking industry input on critical issues ranging from equipment scope...

Texas Governor Greg Abbott has directed state regulators to conduct a comprehensive audit of data center projects seeking grid access, while ERCOT has paused its Batch Zero interconnection process. This regulatory shift introduces immediate uncertainty for developers regarding timelines, financing, and project approvals, signaling that political engagement has become as critical as securing land and power in the Texas data center market.

The Act restores the ITC eligibility of qualified fuel cell property that begins construction after 2025. Under the IRA, qualified fuel cell property was required to have begun construction prior to 2025 in order to be eligible for the ITC.

California Governor Newsom signed seven data center bills into law on September 21, 2026, establishing a comprehensive regulatory framework that takes effect January 1, 2027. These bills create new tariff regimes administered by the California Public Utilities Commission, impose extensive reporting requirements on data center operators, and establish water disclosure mandates and CEQA treatment protocols.

As U.S. utilities commit record capital to grid expansion, equipment procurement has emerged as a critical constraint. Lead times for transformers now stretch beyond two years, while material scarcity, inflation, and labor shortages compound delays across conductor, switchgear, and substation components.

Oilfield service firms responding to the Dallas Fed Energy Survey for the third quarter of 2026 reported substantially broader increases in input costs than in the prices they received. The input-cost index was 60.4, compared with a prices-received index of 16.3. Each index represents the percentage of respondents reporting an increase minus the percentage reporting a decrease.

The U.S. Department of Energy is seeking public input on implementing Executive Order 14421, which grants sweeping authority to restrict foreign-produced electric equipment in the nation's bulk-power system. With broad implications for utilities, manufacturers, and energy infrastructure projects, stakeholders have until October 9, 2026, to shape regulations that could fundamentally alter supply chains and equipment procurement across the electric grid.

On August 6, 2026, the IRS released Fact Sheet 2026-13, an expanded set of FAQs on the qualified overtime compensation deduction created by the One, Big Beautiful Bill Act. The update replaces January’s FS-2026-01 and marks the shift from 2025’s transition relief to the full compliance framework now in effect.

Last week, the Louisiana Department of Revenue (the "Department") issued guidance regarding recent sales and use tax law changes. The Department issued Revenue Information Bulletin No. 25-023...

The Treasury Department and IRS issued final regulations implementing the new deduction for qualified passenger vehicle loan interest (QPVLI), a temporary benefit created by the One, Big, Beautiful Bill Act (OBBBA) that allows individuals to deduct up to $10,000 of interest paid on certain auto loans, even if they do not itemize deductions. The final rules largely adopt the proposed regulations issued in January 2026 but include clarifications in response to public comments received by the Treasury Department.

The Second Circuit has affirmed the Tax Court’s rulings against Soroban Capital Partners LP, holding that the firm’s three principals were not “limited partners” for purposes of the self-employment tax exclusion found in I.R.C. § 1402(a)(13), despite formally holding limited partner status under Delaware law. Under the Internal Revenue Code, a partner’s distributive share of partnership income is generally treated as self-employment income subject to the 15.3 percent self-employment tax on income up to $184,500 in 2026 (2.9 percent rate above that threshold), which funds Social Security and Medicare. Section 1402(a)(13), however, excludes from that tax the distributive share of a “limited partner, as such,” other than guaranteed payments for services rendered.

The Investment Company Institute, the trade association representing more than $45 trillion in assets across mutual funds, ETFs, and other fund structures, has filed a comment letter with the United States Treasury...

The Internal Revenue Service ("IRS") announced a new electronic filing platform for Form 15620 to make an election pursuant to Section 83(b) of the Tax Code.

The City of New Orleans Department of Finance has launched a Sales Tax Amnesty Program offering businesses a limited-time opportunity to settle overdue sales tax obligations with significant penalty relief. Through December 31, 2026, qualifying taxpayers can resolve delinquent balances for sales taxes, use taxes, hotel/motel taxes, and other municipal taxes while having all penalties, negligence fees, and half of accrued interest waived.

For owners of closely held businesses, an employee stock ownership plan, or ESOP, can be an attractive way to transition ownership while allowing employees to participate in future growth. But one issue has long made ESOP transactions more difficult and expensive: uncertainty over how the Department of Labor, or DOL, and courts will evaluate the price paid for privately held employer stock.

The Treasury Department and IRS issued proposed regulations providing guidance on the new Federal Scholarship Tax Credit, effective in 2027. The credit is designed to encourage contributions to scholarship granting organizations (“SGOs”) that provide financial assistance for eligible K-12 students.

On August 28, 2026, the Maritime Administration (MARAD) published an interim final rule rewriting the regulations governing the Vessel and Shipyard Financing Program, commonly known as the Title XI Program, found at 46 CFR Part 298. The rule took effect immediately upon publication, though MARAD is accepting public comments through October 27, 2026.