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Welcome to our seventh issue of Currents – our energy industry insights e-newsletter – for 2026.
Spilman is pleased to sponsor the Gas & Oil Association of West Virginia’s Summer Meeting, being held August 2-4 at The Greenbrier in White Sulphur Springs, WV. GO-WV has organized an excellent lineup of speakers during the industry presentations and provides an ideal opportunity to network with those in the industry. Click here to learn more.
Thank you for reading!
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Barry A. Naum
Chief Content Editor, Currents
Member, Co-Chair of Utility Law Group
| | To Regulate or Not to Regulate: The Data Center Paradox | | |
By Matthew J. Wisniewski, Summer Associate and Barry A. Naum
Many believe that the booming data center industry presents a great opportunity for America to be the leader in cutting-edge artificial intelligence innovation; however, potential environmental hazards along with enormous energy demands (and possible increased energy costs) have raised concerns. Numerous stakeholders, including state legislatures and the data centers themselves, are actively working to address these concerns. With Federal regulations recently rolled back, state government officials are now in a position to impose regulations on data centers. But self-regulation may be a more practical, efficient, and long-term solution.
The Supreme Court greatly altered the relevant federal regulatory framework by a 5-4 decision in 2023 in Sackett v. EPA. In Sackett, the Supreme Court narrowed the definition of “Waters of the United States,” thus restricting the power of the EPA to regulate wetlands on which data centers may be built. After the Supreme Court decision, the number of wetlands that were subject to regulation under the Clean Water Act has drastically decreased. As a result, the Trump administration has now decided to leave data center regulation to the states.
Click here to read the entire article.
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“The U.S. Environmental Protection Agency has gone on record to say that it will not set any standards or regulations for new data centers and instead wants to leave it up to states and communities to regulate them.”
Why this is important: By stating that it will not set any regulations for AI data centers, the Environmental Protection Agency (EPA) is leaving data center regulations to the states and potentially even local governments. With this decision, the EPA also proposed to leave out the public conversation on new minor clean air pollution permits (for entities emitting less than 100 tons of pollutant per year) that are often needed by data centers using various fossil fuels for power.
While the EPA stepping away from data center regulations may seem disastrous, leaving decisions regarding data centers to state and local governments can result in better tailored decisions for the areas that data centers are looking to call home. Some states have passed laws that are favorable for data centers to attempt to attract them to bring more income to their economies. For example, throughout the past several years, Virginia has welcomed data centers with favorable laws that make it less costly for data centers to operate in Virginia, resulting in Virginia containing a record-high concentration of data centers. Similarly, West Virginia has used favorable legislation to target data centers to move to the state, using its High Impact Data Center program promising low zoning and environmental restrictions to attract several planned data centers. On the contrary, leaving decisions regarding the regulation of data centers can also prevent data centers from coming to certain states. For example, New York passed a statewide moratorium on all new data center permits, effectively stopping any new data centers from moving to the state.
The EPA also has created a potential workaround for data centers by proposing to remove the option of public comment for minor air pollution permits. This gives data centers the chance to stack minor air pollution permits for their power sources, which could lead to less oversight but the same amount of pollution that would constitute a major permit. --- Andrew B. Komorowski, Summer Associate
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“It’s been 13 years since the last large coal-fired power plant was built in the US.”
Why this is important: The Trump administration is pursuing an ambitious effort to revive coal-fired electricity generation by supporting construction of the first new large-scale coal plants in the United States since 2013. The initiative is driven by concerns over rapidly growing electricity demand from data centers, artificial intelligence, and domestic manufacturing, as well as the administration’s emphasis on grid reliability and energy security. The Department of Energy has announced $100 million for early feasibility studies of proposed coal plants in West Virginia and Alaska, with additional federal support expected through grants and other financing mechanisms.
Despite the policy push, industry analysts interviewed by CNN question whether the projects are economically viable. Modern coal plants equipped with carbon capture and storage technology are expected to cost billions of dollars each to construct—potentially several times more than comparable natural gas facilities—and remain substantially more expensive than renewable energy projects in many markets. Experts also note that carbon capture technology has yet to be deployed successfully at commercial scale on new U.S. coal plants, creating additional financial and regulatory uncertainty.
The proposal highlights the growing tension between federal energy policy and market economics. While supporters argue that dispatchable coal generation could strengthen grid resilience and support increasing electricity demand, critics contend that taxpayers and utility customers could ultimately bear the costs of subsidizing generation technologies that have struggled to compete against lower-cost natural gas, wind, solar, and battery storage. The debate is expected to influence future discussions involving energy infrastructure permitting, utility regulation, federal funding, and long-term electric reliability planning.
A similar controversy is being litigated at the West Virginia Public Service Commission as part of its hearings on FirstEnergy's proposal to build a $2.48 billion natural gas power plant at Fort Martin in Monongalia County, West Virginia. --- Jason Wandling
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“The rescissions open up nearly 3 million acres of land, including acreage that could be ripe for mineral exploration and development.”
Why this is important: President Trump has significantly reduced the boundaries of Utah’s Bears Ears and Grand Staircase-Escalante National Monuments, reopening millions of acres to potential coal, uranium, and other mineral development. Mining industry representatives say the newly available lands hold significant resource potential, though development will still require leasing, permitting, and compliance with federal environmental laws. The move is expected to spur renewed interest from mining and energy companies while drawing immediate legal challenges from tribes and environmental groups, who argue the President lacks authority under the Antiquities Act to shrink existing national monuments. The decision could reshape federal land use and resource development across the region. --- Jason Wandling
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“Prices in the auction, which is aimed at securing enough electricity supplies to cover the highest-demand days on the PJM grid that covers 13 states in the Mid-Atlantic and Midwest regions, have soared in recent years largely because demand driven by data centers has outstripped supplies.”
Why this is important: PJM, the largest regional grid operator in the U.S., completed its most recent annual capacity auction. Power prices remain near record highs of about $325 per megawatt-day, which is the maximum cap currently permitted by PJM in an attempt to mitigate rising electricity bills for consumers. This elevated price represents a more than 1,000 percent increase since 2024 because of growing supply and demand imbalances. Absent PJM's price cap, PJM announced that prices would have surged to $554.72 per megawatt-day for most of the regional grid.
During the capacity auction, PJM also fell short of its reliability goal by about 6.8 gigawatts. While this does not indicate that PJM will fail to meet demand, it demonstrates that the current supply and demand imbalance continues to impact the grid beyond prices. --- Steven W. Lee
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“The 1,171 kW solar and energy storage microgrid will reduce energy costs, lower emissions, improve resilience and power the Porterville Unified School District’s transition to electric school buses.”
Why this is important: California’s most ambitious school-bus electrification project is being implemented by the Porterville Unified School District (PUSD). PUSD is partnering with ForeFront Power to integrate battery energy storage systems with solar arrays mounted on existing shade structures at two of their district parking lots. This energy will be used to fuel 35 electric buses and other district-owned vehicles. Most notably, two of these chargers will feature bi-directional capabilities to allow an electric bus to operate as a mobile energy storage that can re-inject power back into the grid during high-tariff periods.
PUSD plans to transition its entire bus fleet to electric by 2035, avoiding an additional 15,000 metric tons of CO2 emissions. Projected to save an equivalent of more than 3.6 million gallons of diesel fuel burned in Greenhouse Gas Emissions, this will offset approximately 80 percent of the District’s electricity consumption and serve as a clean energy resource for the community, including in the event of emergencies and power outages.
The article indicates that this could be a national model for how vulnerable communities can aid in avoiding rising energy and fuel costs, improve public health, meet ambitious climate goals, and protect themselves from climate emergencies.
Brad Rohrbach, PUSD assistant superintendent of business services, stated, “We are excited to advance this important infrastructure project, which supports the district’s long-term goals for sustainability, energy resiliency, and responsible stewardship of public resources.” --- Stefany A. Kaminski, Summer Associate
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“Utility-scale solar is booming in the United States as electricity demand rises and projects remain relatively easy to develop.”
Why this is important: Despite efforts by the current administration to limit solar power, utility-scale solar continues to grow at a rapid pace. In 2020, the U.S. was adding 10,000 MW of solar power per year. Despite increased tariffs and an elimination of a major tax credit, utility-scale solar will add 42,971 MW this year (an increase of 45 percent) and is projected to add another 42,875 MW of solar power next year. The new tariffs are also leading to more U.S. manufacturing of solar panels. In addition, natural gas power plants are being paired with solar to produce power at night when there is no sunlight. Solar is expanding the fastest in Texas, Illinois, New Mexico, and Virginia. Also fueling this year’s growth was the fact that new solar farms under construction by July 4, 2026, and completed by 2030 get a significant federal tax credit. --- Mark E. Heath
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“A recent study from the group Environment America finds renewable power generation in West Virginia almost doubled over the last decade, and most of it in the last two years.”
Why this is important: The growth in renewable energy production in the U.S. continues. In the past 10 years, renewable power generation in the U.S. has almost doubled, with most of those increases in the past two years. Thirty-two states now get 10 percent of their electricity from renewables – wind, solar and geothermal. Fifteen states now get 30 percent or more of their power from renewables. Wyoming leads the nation at 75 percent of its power generation from renewables. And wind and solar now power 216,000 homes in West Virginia. --- Mark E. Heath
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“The new chargers, with 200 additional charging ports, will primarily be installed in high-demand markets, with many of the sites planned for locations near restaurants and shops.”
Why this is important: The article posits that the availability of public EV charging is contributing to the improved customer satisfaction of EV drivers. Although EV sales have slowed since the federal tax credit expired last September, many companies are looking to expand EV charging infrastructure in the United States. Optimus Energy Solutions and ChargePoint are partnering to create 200 additional charging ports in high-demand markets. These charging sites will support long-term EV demand across key U.S. markets, which has been a major barrier to the widespread adoption of EVs in the United States. Additionally, in April, Circle K announced that it will be partnering with Ionna, who has also partnered with Casey’s General Stores, Wawa, and Sheets. Ionna is aiming to build 30,000 fast-charging sites in the United States by 2030. Rick Wilmer, ChargePoint CEO, believes that “expanding access to reliable EV charging infrastructure is critical to accelerating the transition to electronic mobility.” --- Taiesha K. Morgan
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“That's leaving salvage yards stuck with old batteries nobody wants, not even recyclers.”
Why this is important: It is understood that EV batteries must be recycled, as they may become hazardous waste, leading to possible toxic leaching or dangerous fires; however, the article points out that recycling these batteries comes at a great cost to the average salvage yard with small volumes of these EV batteries. This comes at a time when EV batteries themselves are changing. While current models contain expensive metals like nickel and cobalt, manufacturers are switching to cheaper materials like iron phosphate to create these batteries. Not only is it believed that these batteries will be more affordable, but they will also likely last longer.
While there is some value in recycling the current EV batteries on the market in large volumes, batteries made with iron phosphate will not hold much value when recycled. For these recycling companies to make a profit, recyclers will have to charge both the person providing the battery and the buyer of the extracted minerals. The cost has caused scrap yards to start refusing EV and hybrid vehicles, leading to these cars being shipped overseas, where recycling is done in an unsafe and dangerous way. Colorado is trying to solve this issue, passing a “producer responsibility” law. This law not only requires that a certain percentage of battery minerals be recovered and recycled, but requires manufacturers to cover the cost of recycling batteries that are left at landfills or salvage yards. This law has garnered support from many environmental groups and some automakers. --- Taiesha K. Morgan
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Here is a round-up of the latest statistics concerning the energy industry.
ELECTRICITY
PETROLEUM
NATURAL GAS
COAL
RENEWABLES
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