LDEQ Issues Proposed Regulations Amending The State's Voluntary Environmental Self-Audit Program

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.

California's Climate Corporate Data Accountability Act (SB 253) establishes a November 10, 2026 deadline for Scope 1 and Scope 2 greenhouse gas emissions reporting, affecting U.S.-formed entities with over $1 billion in revenue that meet California's "doing business" test—regardless of physical presence in the state. The law carries penalties up to $500,000 per reporting year for non-compliance, with mandatory program fees and future Scope 3 reporting requirements on the horizon.

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.

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.

This quarterly newsletter examines critical developments in chemical regulatory law, covering litigation outcomes that reshape EPA's authority under TSCA, landmark Supreme Court decisions on pesticide labeling preemption, and emerging state and international frameworks governing PFAS and other chemicals of concern. The edition analyzes how recent Fifth Circuit rulings on methylene chloride regulations may fundamentally alter EPA's approach to risk evaluations and management rules across its entire existing

California voters will decide on Proposition 45 this November, a sweeping initiative that would fundamentally reshape environmental review for housing, infrastructure, and other essential projects across the state. The Building an Affordable California Act promises faster approvals and limited judicial challenges, but faces organized opposition from labor unions and environmental groups. Will this measure succeed in streamlining development, or does it go too far in curtailing environmental protections?

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

Beginning October 10, 2026, the European Union will restrict certain concentrations of PFHxA and related substances in clothing and footwear, marking a significant expansion of PFAS regulations affecting the apparel and textile industry. Companies face a complex patchwork of requirements as France, Denmark, and multiple U.S. states implement their own PFAS restrictions with varying scopes, thresholds, and compliance approaches. Navigating these divergent regulations requires careful supply chain evaluation

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.