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Welcome to our second issue of Currents – our energy industry insights e-newsletter – for 2026.
ABA 2026 Workplace & Occupational Safety & Health Law Committee Midwinter Meeting, February 24-27, Puerto Rico
Spilman is pleased to sponsor this meeting featuring presentations by panelists representing management, union, employees, and government perspectives on hot topics and cutting-edge issues in the field of workplace and occupational safety law. Click here to learn more.
DRI Construction Law Seminar, March 25-27, Nashville, TN
We hope you can join us at this top-tier event, where practical strategies for operating in this challenging and ever-evolving landscape will be discussed. In addition to being a sponsor, Stephanie Eaton is Vice Chair of the committee, and other Spilman attorneys will be in attendance. Click here to learn more.
Again, thank you for reading!
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Barry A. Naum
Chief Content Editor, Currents
Member, Co-Chair of Utility Law Group
| | The Trump Administration's Repeal of the Greenhouse Gas "Endangerment Finding" - What It Means (and What It Does Not Mean) | | |
By Barry A. Naum
On February 12, 2026, President Trump revoked the "endangerment finding" established in 2009 by the U.S. Environmental Protection Agency (EPA) under the Obama administration. The endangerment finding, which became a federal rule in 2010, found that six so-called "greenhouse gasses," including Carbon Dioxide (CO2), posed a threat to human health and the environment and established a legal requirement, following the Supreme Court's ruling in a landmark 2007 case, for the EPA to regulate these gases as "pollutants" under the Clean Air Act of 1970. As a result, the endangerment finding also determined that motor vehicles specifically contribute to such greenhouse gas pollution, at risk to public health. While the endangerment finding did not itself impose regulations on U.S. industries, it did create a pathway for greenhouse gas emissions standards for numerous sectors. The Trump administration's revocation of the finding follows an executive order from the President requiring an EPA report on the "legality and continuing applicability" of the finding and therefore reverses the underlying basis for 16 years of subsequent federal regulations pursuant to the Clean Air Act. The President's specific action, with support from EPA Administrator Lee Zeldin and Transportation Secretary Sean Duffy, specifically targets recent tailpipe emissions standards that have applied to vehicle manufacturers under rules imposed by the Biden administration.
Click here to read the entire article.
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“Authorization was provided to New York-based Twisted Gun Solar for a 140-megawatt plant in Mingo and Logan counties.”
Why this is important: The West Virginia Public Service Commission has approved Twisted Gun Solar, a 140-megawatt plant in Mingo and Logan counties. The solar farm should begin construction in January 2027 and be operational in the fourth quarter of 2028. The 300,000 solar modules will tie into the Appalachian Power system at its Pigeon Creek substation. The company predicts 300 construction jobs for two years on a reclaimed surface mine and expects the completed solar farm to power 84,000 homes. The development is also forecasted to provide $4.5 million to the two counties in property taxes and other revenues. While other states build solar farms at a record pace, development in West Virginia continues to trail other states in the region. --- Mark E. Heath
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“Stellantis has the lion’s share with write-downs of over $26 billion.”
Why this is important: The article reports the draw-down of Electric Vehicle (EV) production due to the economics of implementing production EV policy goals. Major automakers worldwide are cancelling production and writing-down prior investment. Factors include high cost, low demand from average consumers, and, at least in the U.S., an adverse political climate and changes in emissions standards that favor traditional auto manufacturing. At its core, objective analysis reveals that implementation of this component of electrification policy was simply too aggressive and costly, given the legacy (and more economical cost) of internal combustion engine automobiles. Automakers are adjusting accordingly. --- Derrick Price Williamson
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“But the biggest changes could be still to come from the relatively low-profile Nuclear Regulatory Commission (NRC), which is in charge of the vast majority of the nation’s reactors.”
Why this is important: The Trump administration’s Department of Energy (DOE) is scaling back National Environmental Policy Act (NEPA) requirements in order to accelerate development of nuclear energy projects across the United States. The DOE adopted a categorical exclusion for advanced and experimental nuclear reactors from the NEPA process. Under the new policy, developers of these reactors will not be required to prepare full Environmental Impact Statements (EIS) or Environmental Assessments (EA) before moving forward with construction and operation.
Supporters describe these measures as necessary to remove unnecessary and litigation-attracting bureaucratic obstacles and support innovation in advanced nuclear technologies, particularly as a low-carbon energy source. Supporters note that traditional NEPA reviews are often duplicative, slow, and subject to years-long legal challenges that make nuclear projects untenable. Meanwhile, environmental nongovernmental organizations are critical of the changes, claiming that exempting new nuclear projects from environmental review weakens transparency and accountability.
Lawyers representing industry or environmental interests should watch for potential Administrative Procedure Act challenges asserting that the exemptions are arbitrary or capricious, particularly if safety and environmental protections are materially reduced without a clear agency record. That “clear agency record” is what most attorneys who work in the field are concerned about, because most see little point in scoring easy victories that are certain to be overturned on challenge. --- Jason E. Wandling
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“The legislation would offer federal insurance against construction overruns.”
Why this is important: U.S. Senator Jim Risch is attempting to revive billions of federal dollars to aid over-budget nuclear reactors. The measure has bipartisan support, with Senator Ruben Gallego of Arizona joining him. The bill authorizes up to $3.6 billion to cover at least three next-generation nuclear reactors. The Accelerating Reliable Capacity (ARC) Act is supported by ClearPath Action, the Nuclear Energy Institute, and the Nuclear Innovation Alliance. Stakeholders hope that the additional funding will make the nuclear sector increasingly attractive to utilities.
The ARC features loan guarantees for additional capital. When costs exceed 120 percent of estimates, ARC funding will be applied to the loan balance. The measure also includes a loan guarantee up to 200 percent of the verified cost estimates for qualified projects. --- Jason E. Wandling
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“However, alternative technologies that can produce low-emissions hydrogen have attracted a lot of interest from governments given their potential to reduce greenhouse gas emissions and diversify energy supply, particularly in countries that have a large dependence on fossil fuel imports.”
Why this is important: Interest in low-emissions hydrogen made with renewable electricity, bioenergy, or fossil fuels paired with carbon capture has risen recently due to its potential to cut emissions and diversify energy supplies. Low-emissions hydrogen production has grown every year since 2020 and was close to 1 Mt. Although still in its infancy, low-emissions hydrogen production has maintained momentum throughout this decade, driven by announced projects and ambitious commitments from both the private sector and governments.
Challenges exist, however, such as high production costs, unclear and complex regulation, and limited available infrastructure. Another threat is uncertain demand, which complicates obtaining investment funds and long-term agreements.
To address these challenges, the article recommends implementing targeted policy measures, including financial incentives to narrow the cost gap with fossil-based hydrogen, support mechanisms linked to firm offtake agreements, strategic public procurement, the development of lead markets, and greater coordination around standards for low-emissions hydrogen. Absent these efforts, the sector may continue to expand, but not at the scale required for hydrogen to realize its full potential in supporting global decarbonization goals. --- Nicholas A. Muto
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“Grid operator PJM released a plan to allow faster connections of large loads and accelerated procurement of backup power as it looks to strengthen grid reliability while accommodating soaring demand from data centers.”
Why this is important: New U.S. power grid rules are creating a faster connection pathway for data centers that build their own on-site power plants, a trend that currently favors natural gas over renewable energy. To bypass long wait times, data centers can connect more quickly if they provide at least 250 MW of reliable on-site generation, a threshold easily met by natural gas plants but challenging for intermittent sources like solar and wind. There are quite a few renewable energy projects waiting for PJM approval, but gas continues to go to the front of the line because it can provide reliable capacity when the electrical supply grid is under stress from heavy demand. --- David L. Yaussy
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“China has significantly increased its coal power capacity, reviving concerns about its climate-changing carbon emissions.”
Why this is important: While China continues to build solar and wind farms to generate power, it also continues to build large coal-fired electric generation plants. With a population of 1.4 billion people (the U.S. population in 2025 was 347.2 million), China’s energy needs are enormous. In 2025, China brought online 50 coal-fired generation units, each with a capacity of over 1 GW (1 GW will power approximately two million homes). Overall, China added 78 GW of coal-fired generation last year. But even with the large new coal plants, coal’s share of electric generation dropped 1 percent. While building large coal plants, China also added 315 GW of solar power and 199 GW of wind generation last year. As it started construction on 83 GWs of additional coal-fired generation that will likely come online this year or in 2027, China will still consume significant coal tons for electric generation for many years while increasing solar and wind power generation. --- Mark E. Heath
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“The court decision enables work to continue on the project while Dominion Energy’s lawsuit challenging a federal agency’s action proceeds.”
Why this is important: The U.S. District Court for the Eastern District of Virginia granted Dominion Energy a preliminary injunction allowing construction to resume on its 2.6 GW Coastal Virginia Offshore Wind (CVOW) project while the company’s legal challenge to a federal pause on renewable energy projects initiated by the Trump administration continues. The decision temporarily lifts a stop-work order issued by the U.S. Department of the Interior in December 2025, which had halted multiple offshore wind developments citing national security concerns.
The CVOW installation, located off Virginia Beach, is among the largest offshore wind projects in the United States and is designed to generate enough electricity to power approximately 660,000 homes. Dominion says the injunction enables the team to safely restart construction and aim for planned energy delivery timelines as the federal court process unfolds.
The court’s ruling represents a setback for the administration’s regulatory pause and a broader confirmation from multiple federal judges this month in allowing offshore wind projects to proceed despite the administration’s suspension orders.
While the injunction permits progress in the near term, the ultimate resolution of the legal challenges will determine the project’s long-term construction trajectory and regulatory framework. This is one to watch. --- Jason E. Wandling
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“A proposal could give millions in tax breaks to data centers, which provide few jobs and cause environmental damage, a year after state lawmakers stripped local governments of oversight and tax revenues of such projects in their communities.”
Why this is important: A bill moving through the West Virginia Legislature, if passed, would offer large tax credits to data centers in the state. As proposed, businesses that invest at least $2.5 million or create 10 jobs would qualify for the credits. Technology companies have emphasized the importance of data centers for the national economy, while those who live in communities where data centers have been proposed have begun to push back against them being built.
State revenue officials warned that the bill could significantly reduce overall tax collections, and a policy analysis group estimated it might fully offset all taxes owed by data centers. Supporters argue the incentives will attract investment and economic activity, while critics point out that these facilities generate few jobs and that breaking local tax revenue streams could undermine the state’s fiscal interests.
Governor Morrisey's administration was banking on the tax revenue stream from data centers to help reduce personal income taxes within the state. Thirty-seven other states already provide tax breaks for data centers or exempt them from paying sales tax, but some have begun reevaluating these tax incentives in response to public concerns regarding the substantial water and electricity consumption associated with data centers. Ultimately, as the West Virginia Legislature considers this bill, lawmakers must weigh the promise of economic development against the potential long-term costs to the state’s fiscal stability and local communities. --- Nicholas A. Muto
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“The current scenario, which assumes that no new decarbonisation initiatives are taken, predicts a peak coal demand of 2.62 billion tons by 2050.”
Why this is important: A government think tank predicts India’s coal usage to generate electricity will continue to grow until 2050. By that point, India will use 2.62 billion tons of coal per year, double its usage of 1.26 billion in 2024. India still has a zero emissions goal for 2070, so the country will have to reduce its projected coal use of 1.83 billion tons in 2050 to 161 million tons by 2070. The report opines that the remaining coal use in 2070 would be for steel and cement production only. India will have to build nuclear plants and clean energy sources to meet those goals, the think tank reports. The report shows how difficult it will be for the world’s largest countries to move away from coal usage for power generation. --- Mark E. Heath
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“The first BESS, at a cost of approximately $100 million, began serving customers in November.”
Why this is important: Duke Energy officially commissioned a 50 megawatt (MW), four-hour battery energy storage system (BESS) at its retired Allen coal plant on Lake Wylie, North Carolina. The project, which costs an estimated $100 million, began serving customers in November 2025 and has completed final testing this month.
The BESS was constructed on the Allen site following the plant’s decommissioning in December 2024, representing a strategic reuse of existing energy infrastructure. According to Duke Energy, repurposing former coal plant sites aligns with the company’s broader transition strategy while supporting regional economic continuity in Gaston County.
The storage system at Allen is only the first phase of a larger energy storage transformation at the site and in the Carolinas. A second, larger 167 MW, four-hour BESS is scheduled to begin construction in May 2026 on acreage where emissions control infrastructure once stood.
Duke Energy’s investment in large-scale BESS assets illustrates the utility industry’s broader shift from fossil generation toward flexible, dispatchable clean energy infrastructure, while maintaining reliability and cost efficiency for customers. It also supports Duke Energy’s seriousness about the prospect of data centers continuing to be planned for the greater Charlotte area. --- Jason E. Wandling
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“In a recent poll, 42% of Pennsylvanians said they do not want one built in or near their community.”
Why this is important: Pennsylvanians are voicing their concerns about the rapid increase in data center construction throughout the commonwealth—and state lawmakers are listening, though it is unclear whether those lawmakers will be taking any concrete steps in the immediate future to slow down the number of new projects sited in the state. Residents are worried about the strain on local resources, including water and electricity, as well as secondary effects like pollution. State lawmakers on both sides of the aisle share these concerns and have proposed legislation that would enact stricter oversight at the community level and give more control to the municipalities hosting data centers. Other bills propose regulating energy costs, enacting stricter permitting guidelines, or requiring more thorough emergency planning. Some place a moratorium on building altogether. Governor Josh Shapiro, on the other hand, has been a vocal supporter of data center construction in Pennsylvania and believes it is critical to the state’s economic development. For now, while Pennsylvania is a state to watch in terms of stricter data center regulation, major changes to the regulatory landscape do not seem likely to happen overnight. --- Jamie L. Martines
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Here is a round-up of the latest statistics concerning the energy industry.
ELECTRICITY
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NATURAL GAS
COAL
RENEWABLES
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