Environmental Evolutions: Getting Ready For The Final CEQ Carbon Capture Guidance (Podcast)

Governor Greg Abbott has ordered the Texas Commission on Environmental Quality to immediately halt all environmental permits for data center projects, expanding a statewide regulatory freeze that now encompasses power, water, and environmental approvals. This directive establishes strict operational mandates requiring data centers to fully fund infrastructure costs, report all resource consumption...

Governor Abbott has ordered Texas environmental regulators to halt all data center permit issuance until grid operators complete a comprehensive audit in mid-December 2026. The sweeping directive affects not only grid-connected facilities but also fully islanded data centers relying on behind-the-meter generation, creating uncertainty for developers and their contractual obligations.

On September 21, 2026, Texas Governor Greg Abbott directed the Texas Commission on Environmental Quality (TCEQ) to halt issuance of permits to data centers until the Electric Reliability Council of Texas (ERCOT) completes an audit of impacts on the Texas electric grid and water resources.

Texas Governor Greg Abbott has directed state agencies to halt all data center permits until comprehensive audits assess the projects' impacts on electric infrastructure, residential ratepayers, and water resources. The directive requires data centers to fully fund necessary electric infrastructure and comply with enhanced reporting requirements, while the governor signals potential legislative action to codify new protections and phase out certain tax incentives.

On September 30, Edgewell Personal Care Brands LLC was hit with a lawsuit in California superior court concerning its Carefree brand of menstrual liners.

California has enacted seven unprecedented bills targeting data center development, imposing sweeping new requirements for energy reporting, water consumption assessments, labor standards, and electricity rate structures. These laws fundamentally reshape the regulatory landscape for data centers, requiring detailed disclosures at multiple project stages while prohibiting categorical CEQA exemptions and establishing new interconnection rules that shift infrastructure costs directly to developers.

A federal district court has preliminarily enjoined the EPA from reclassifying California's Clean Air Act preemption waiver orders as "rules" subject to the Congressional Review Act. The court found that EPA's reclassification likely violated the Administrative Procedure Act and exceeded the agency's authority, though the order does not prevent Congress from proceeding with pending disapproval resolutions.

This decision is important because it allows a property owner to challenge Corps jurisdiction early in the Section 404 regulatory process

The EPA has released decisions on 34 small refinery exemption petitions from 2025, granting full or partial exemptions that total 1.76 million RINs - significantly more than initially estimated. This discrepancy has prompted the agency to announce a new rulemaking that will reallocate 100 percent of exempted volumes to 2026 and 2027 renewable volume obligations, potentially increasing compliance burdens for nonexempt obligated parties.

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.

President Trump has signed into law the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, dramatically expanding U.S. sanctions on Russia's financial and energy sectors while establishing unprecedented tariff authorities on Russian goods and imports from countries purchasing Russian energy.

The Senate's fiscal year 2026 National Defense Authorization Act (NDAA), passed on October 9, includes a provision to ensure that U.S. manufacturers have priority access to advanced semiconductors.

The U.S. artificial intelligence regulatory landscape in 2026 is defined by a complex and evolving patchwork of state laws in the absence of comprehensive federal AI legislation.

President Trump has signed three proclamations imposing 50 percent tariffs on Canadian goods under Section 338, citing discriminatory treatment of U.S. exports. Meanwhile, U.S.-Mexico trade negotiations continue in Mexico City as both countries work to revise USMCA provisions before the agreement's long-term viability is threatened.

On January 9, 2026, the United States Department of Justice ("DOJ") announced the creation of an Artificial Intelligence Litigation Task Force ("Task Force") through an internal memorandum.

The General Court of the European Union has upheld the European Commission's prohibition of Booking Holdings' acquisition of eTraveli Group, endorsing for the first time a 'reverse leveraging' theory of harm in conglomerate mergers. This landmark judgment establishes that dominant companies can be blocked from acquiring complementary businesses even when the target operates in a market where the acquirer lacks dominance, fundamentally reshaping merger control enforcement in digital and ecosystem-driven mark

Texas regulators have paused the ERCOT Batch Zero interconnection process for data centers following Governor Abbott's directive requiring comprehensive verification of all large load projects. The verification encompasses two distinct workstreams affecting projects based on size and type, with implications for energization timelines and regulatory compliance. Projects with near-term energization dates face particular uncertainty as ERCOT implements new audit requirements that could take several months to c

A U.S. Court of International Trade ruling struck down President Trump's global 10% tariffs under Section 122, finding them unauthorized and unlawful. Meanwhile, the administration continues to threaten increased tariffs on European automobiles and initiates reviews of existing China tariff actions. This comprehensive tracker documents the complex landscape of implemented, pending, and proposed tariff measures across multiple countries and product categories.

The Council of the European Union has approved targeted amendments to the EU AI Act, extending key compliance deadlines while introducing new prohibitions on AI-generated intimate content and child sexual abuse material. Organizations now have until December 2027 and August 2028 to prepare governance frameworks for high-risk AI systems, though enforcement remains firmly on track.

In a groundbreaking enforcement action, Texas Attorney General Ken Paxton has filed a lawsuit against Allstate Corporation and its subsidiary Arity, alleging systematic violations of the Texas Data Privacy and Security Act (TDPSA) and other consumer protection laws.