Second Federal Court Strikes Down New York’s Climate Change Superfund Act
On September 23, 2026, a second federal district court struck down New York’s Climate Change Superfund Act (the Act), this time in a lawsuit brought by the United States and the U.S. Environmental Protection Agency (EPA). In United States v. State of New York, Judge P. Kevin Castel of the U.S. District Court for the Southern District of New York held that the Act is preempted both by the Clean Air Act (CAA) and, independently, by the federal government’s exclusive authority over foreign affairs. The Court declared the Act unconstitutional and permanently enjoined New York officials from enforcing it.
EPA Issues Final Rule Repealing Most 2024 Power Plant GHG Standards and a Proposal That Would Eliminate the Remaining Power Plant GHG Standards
On September 14, 2026, the U.S. Environmental Protection Agency (EPA) took two related actions to substantially change the federal framework for regulating greenhouse gas (GHG) emissions from fossil fuel-fired power plants under Clean Air Act Section 111.
Federal Court Strikes Down New York’s Climate Change Superfund Act
On August 31, 2026, the U.S. District Court for the Northern District of New York struck down New York’s Climate Change Superfund Act (the Act). As we reported when the Act was signed into law in 2024, the Act established a Climate Change Adaptation Cost Recovery Program authorizing New York to recover $75 billion over 25 years from fossil fuel companies for their alleged contributions to greenhouse gas (GHG) emissions. As we also reported when challengers filed suit in February 2025, a coalition of twenty-two states and multiple industry associations had argued that the Act was preempted by the Clean Air Act (CAA) and violated the Supremacy Clause, among other issues. Chief U.S. District Court Judge Brenda K. Sannes agreed, granting summary judgment in favor of the challengers and holding that the Act is preempted by federal law and cannot be enforced.
New York is Latest State to Finalize Greenhouse Gas Reporting Rules for 2026
The New York State Department of Environmental Conservation (NYDEC) finalized its long-awaited Mandatory Greenhouse Gas (GHG) Reporting Program (Part 253), which implements GHG reporting requirements for businesses in New York consistent with directives under the 2019 Climate Leadership and Community Protection Act (CLCPA) and aids the State in meeting obligations under the northeast Regional Greenhouse Gas Initiative (RGGI). The final rule is, in part, the result of an October 2025 court order that required NYDEC to promulgate regulations addressing climate change after NYDEC initially failed to issue the regulations by the CLCPA deadline. Part 253, as finalized, largely conforms with the draft regulations NYDEC proposed in 2025 but includes revisions to address some of the concerns raised by industry stakeholders. New York becomes the fourth state to implement a GHG reporting program after California, Washington, and Oregon.
U.S. Army Corps of Engineers Finalizes 2026 Nationwide Permit Reissuance and Modifications
On January 8, 2026, the U.S. Army Corps of Engineers (Corps) published its final action reissuing and modifying Nationwide Permits (NWPs). This final action reissues 56 existing NWPs and issues one new NWP. The changes are modest, but include helpful clarifications for certain activities and businesses. They also include program-wide updates to certain general conditions and definitions, such as by adding “nature-based solutions,” and changes tied to recent litigation affecting certain NWPs. The new NWPs and associated conditions and definitions take effect March 15, 2026 and will expire March 15, 2031.
New York Court Orders NYDEC to Issue Climate Change Regulations by February 2026
On October 24, 2025, a New York trial court ordered the New York Department of Environmental Conservation (NYDEC) to promulgate regulations addressing climate change pursuant to the state’s 2019 Climate Leadership and Community Protection Act, 2019 N.Y. Sess. Laws Ch. 106 (S. 6599) (CLCPA). The court sided with environmental groups that argued that NYDEC’s failure to issue these rules violated a mandatory statutory duty, despite the agency’s arguments that such rules would be “infeasible” because of costs imposed on consumers. With the order requiring promulgation of the rules by February 6, 2026—mere months away—stakeholders should watch closely for details on upcoming compliance requirements.
Council on Environmental Quality Issues Long Awaited Guidance for Environmental Review Across Agencies
On September 29, 2025, the Council on Environmental Quality (CEQ) issued long-awaited guidance to formalize agencies’ individual efforts to implement the National Environmental Policy Act (NEPA). After rescinding the CEQ regulations that shaped NEPA for 40+ years and bearing witness to various agencies’ independent efforts to issue their own NEPA rules, CEQ issued new guidance to more systematically guide the agencies’ efforts. As CEQ notes, “NEPA implementation reform now has been called for, authorized, and directed by all three branches of government at the highest possible level: Congress, the President, and the Supreme Court.” The guidance reflects direction from each.
U.S. Army Corps of Engineers Proposes to Reissue and Modify Nationwide Permits
On June 18, the U.S. Army Corps of Engineers (Corps) published a Notice of Proposed Rulemaking that would reissue 56 of its existing Nationwide Permits (NWPs), introduce one new NWP, and make targeted modifications to the scope of certain NWPs and their terms. Key updates include a new NWP for fish passage improvements and changes to reflect recent litigation outcomes — including rescinding Florida’s program authorization and the NWPs for finfish and (in part) shellfish mariculture activities — as well as clarifying the trigger for state water quality certification under Section 401. The Corps also proposes, among other changes, an express prohibition on combining acreage limits when using more than one NWP to purportedly authorize a greater impact, and requiring restoration of areas affected by construction mats.
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.
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.