During the second quarter of 2025, there were several regulatory developments involving federal and California agencies. These updates are summarized in the following sections.

FEDERAL REGULATORY UPDATES

Department of the Interior

Eighteen Bureau of Land Management Regulations Rescinded

On June 3, 2025, the United States (U.S.) Department of the Interior (DOI) announced that it has rescinded 18 Bureau of Land Management (BLM) regulations related to geothermal energy and mineral mining on public lands and wilderness areas. This follows Executive Order (EO) 14154, Unleashing American Energy, which—as previously discussed in our Q1 2025 regulatory update—directs federal agencies to expedite and streamline permitting under the National Environmental Policy Act (NEPA). These rescissions also follow EO 14192, Unleashing Prosperity Through Deregulation, which requires agencies to identify and eliminate unnecessary federal regulations. The Secretary of the Interior’s Order 3421, Achieving Prosperity Through Deregulation, sets forth more detailed requirements to implement these EOs, directing DOI agencies to remove regulations that are outdated, redundant, or cause unnecessary burden. As a result, 18 BLM regulations were rescinded.

Key changes and updates include the following:  

• Legacy Mining Provisions Simplified: Rules (i.e., 43 Code of Regulations [CFR] 3823.1, 3823.2, 3814.2(a)) governing mineral activity in wilderness areas and under the Stock-Raising Homestead Act were rescinded, which were outdated and rarely applied.
• Clarified Claim and Mill Site Use: 43 CFR 3737.1 and 3821.3 were duplicative of existing rules (e.g., 43 CFR 3715) and were removed without affecting current mining rights or filing requirements.
• Oil Shale and Fee Rules Removed: Obsolete provisions for oil shale claim filings and fees (i.e., CFR 3835.31(d)(2), 3834.11(b)) were eliminated, reflecting current BLM practices.
• Outdated Geothermal Rules Repealed: Rules tied to pre-2005 geothermal leases (i.e., CFR 3200.7, 3200.8, 3203.5, 3204.5, 3212 series) were rescinded due to expiration or redundancy with newer regulations.
• Hardrock Mineral Rules Streamlined: Rarely used provisions on acreage limits and development contracts (3503.37(f), Subpart 3517) were removed to reduce overlap with broader leasing rules.
• Procedural Rules Modernized: Rescissions of 43 CFR Part 1850, Subpart 3738 reflect reliance on updated administrative processes for hearings and surface protections.
• Surface Management Provisions Cleaned Up: Sections 3809.400 and 3715.4, partly duplicative of an existing oversight under Part 3800, were rescinded without changing the plan of operations requirements.

Department of Energy

Interim NEPA Guidance Procedures

As previously discussed in our Q1 2025 regulatory update, President Trump’s EO 14154 directs federal agencies to expedite and simplify the permitting process under NEPA. On June 30, 2025, the U.S. Department of Energy (DOE) issued an interim final rule updating its NEPA procedures in alignment with EO 14154 and the 2023 Builder Act. Through this ruling, DOE rescinded all prior NEPA regulations and published new NEPA regulations and guidance procedures intended to streamline environmental reviews and reduce permitting delays.

Key changes include the following:

• a two-year deadline for completing Environmental Impact Statements (EISs);
• the mandatory designation of a lead agency to coordinate inter-agency reviews;
• limits on document length;
• expanded use of categorical exclusions; and
• updated guidance narrowing the scope of greenhouse gas and cumulative impact analyses, particularly for actions outside the DOE’s jurisdiction.

United States Fish and Wildlife Service

Reopening of Monarch Butterfly and Foothill Yellow-Legged Frog Comment Periods

As discussed in our Q4 2024 and Q1 2025 blog updates, the U.S. Fish and Wildlife Service (USFWS) has proposed critical habitat designation for the Monarch butterfly (Danaus plexippus) and four distinct population segments of foothill yellow-legged frog (Rana boylii). The USFWS has reopened public comment periods for the proposed rules addressing the Monarch butterfly and foothill yellow-legged frog under the Federal Endangered Species Act, allowing stakeholders additional time to comment. For the monarch butterfly, the comment period on its proposed listing as a threatened species, including associated section 4(d) protections, was extended through May 19, 2025. Comments on the proposed critical habitat for the foothill yellow-legged frog were extended through July 28, 2025.

Executive Office

Following his second-term inauguration, President Trump issued a series of EOs that potentially affect land use, energy, and transportation sectors. These directives focus on promoting infrastructure and domestic energy development by reducing regulatory barriers and scaling back federal oversight in permitting and environmental review processes. The following subsections provide an overview of a few EOs that were signed during the second quarter of 2025.

EO 14260 – Protecting American Energy from State Overreach

Signed on April 8, 2025, EO 14260 directs federal agencies to identify and address state and local laws that impede the development and use of nonrenewable energy resources, including oil, natural gas, coal, nuclear, and critical minerals. States such as New York, Vermont, and California are specifically criticized for policies that, according to the EO, raise energy costs, hinder interstate commerce and threaten U.S. energy security by extending regulatory reach beyond constitutional limits. EO 14260 also challenges state cap-and-trade programs, such as California’s carbon market, and highlights permitting delays linked to climate and environmental justice considerations. The attorney general has been tasked with identifying and halting the enforcement of state laws deemed unconstitutional or burdensome to the development of domestic energy resources. More specifically, the attorney general has been directed to focus on laws that address climate change, environmental justice, carbon penalties, and environmental, social, and governance initiatives. 

EO 14270 – Zero-Based Regulatory Budgeting to Unleash American Energy

Signed April 15, 2025, EO 14270 aims to streamline regulations on energy production. The EO requires select federal agencies to insert “conditional sunset dates” into existing regulations by September 30, 2025, or within one year of a new regulation’s effective date, unless the agency takes action to extend the regulation. This EO applies to the following agencies: DOE, BLM, USFWS, Environmental Protection Agency (EPA), Federal Energy Regulatory Commission, Nuclear Regulatory Commission (NRC), Office of Surface Mining Reclamation and Enforcement, Bureau of Ocean Energy Management, Bureau of Safety and Environmental Enforcement, and the U.S. Army Corps of Engineers. To extend a conditional sunset date assigned to a regulation, the agencies must conduct a public comment period and determine that extending the conditional sunset date is warranted. Ultimately, this EO may lead to a significant re-evaluation of regulations across the participating agencies.

EO 14285 – Unleashing America’s Offshore Critical Minerals and Resources

Signed on April 24, 2025, EO 14285 aims to increase domestic supply and production of critical minerals such as manganese, nickel, and cobalt. In addition, the EO aims to increase leadership in seabed mining through expedited permitting, including through the expedition of review and approval permitting processes related to prospecting, development, and production of seabed minerals in the U.S. Outer Continental Shelf.

EO 14299, EO 14300, EO 14301, and EO 14302

Signed May 23, 2025, EO 14299, EO 14300, EO 14301, and EO 14302 are all aimed at accelerating U.S. nuclear energy development. The directives target regulatory reform, industrial revitalization, fuel supply security, and defense-related deployment of nuclear technologies. EO 14299 directs the accelerated deployment of advanced nuclear reactors at DOE and Department of Defense (DOD) sites, with a focus on powering AI infrastructure, enhancing national security, streamlining permitting processes, and coordinating efforts between DOE and DOD to achieve these goals. The EO also seeks to expand U.S. nuclear exports and international partnerships. EO 14300 mandates the NRC to streamline licensing with strict deadlines, revise outdated standards, and reduce application fees. EO 14301 directs the DOE to expedite procedures, environmental reviews for permits, and reform NEPA compliance so that a test reactor is operational within 2 years of a completed application. EO 14302 directs the expansion of nuclear energy by uprating existing nuclear reactors by 5 gigawatts (GW) of power, constructing 10 new large reactors by 2030, and reviving domestic uranium enrichment and reprocessing capabilities. Collectively, the directed actions of these EOs aim to quadruple U.S. nuclear capacity to 400 GW by 2050. 

Supreme Court

Seven County Infrastructure Coalition v. Eagle County 

On May 29, 2025, the U.S. Supreme Court issued a decision in Seven County Infrastructure Coalition v. Eagle County, clarifying the limits of environmental review under NEPA, specifically with regards to EISs. The Supreme Court reversed a District of Columbia Circuit ruling, holding that federal agencies are not required to analyze the environmental impacts of separate upstream or downstream projects that are outside of an agency’s authority, even if those effects are consequences of the project under review. Specifically, the Supreme Court ruled that the Surface Transportation Board’s approval of an 88-mile railway line in Utah, designed to transport crude oil, did not need to analyze the impacts of increased oil refining on the Gold Coast or other downstream impacts of the proposed oil railway.

The decision reaffirms that NEPA only requires agencies to assess the direct environmental impacts of the project under review. Although agencies may consider interrelated projects that are occurring in close temporal and geographic proximity, the Supreme Court emphasized that NEPA does not mandate agencies to analyze speculative or future projects. The ruling also underscored the judiciary’s deferential approach in reviewing agency NEPA determinations, reinforcing that courts should not substitute their judgment for that of the agency.

This ruling is expected to significantly narrow the scope of EISs and may limit legal challenges that attempt to block infrastructure projects based on uncertain or remote future impacts.

Diamond Alternative Energy LLC v. Environmental Protection Agency

On June 20, 2025, the U.S. Supreme Court ruled 7-2 in Diamond Alternative LLC v. Environmental Protection Agency (EPA) that fuel producers may proceed with their lawsuit challenging a 2022 EPA waiver that allows California to enforce stricter vehicle emissions standards and electric vehicle mandates through 2025. The decision overturns a lower court ruling that had dismissed the case for lack of standing, finding that the plaintiffs sufficiently alleged economic harm from reduced fuel demand.

The ruling does not strike down California’s ruling, but it will send the case back to lower courts for further litigation. This ruling marks a significant development in the ongoing debate over the scope of state authority under the Clean Air Act and signals continued judicial scrutiny of the EPA’s regulatory powers. If successful, the challenge could limit California’s ability to set emissions standards beyond federal baselines, with potential nationwide implications for clean transportation policy.

STATE REGULATORY UPDATES

California Public Utilities Commission

Resolution ESRB-13

Following a fire at a 300-megawatt battery energy storage facility near Santa Cruz, the California Public Utilities Commission adopted resolution ESRB-13 on March 13, 2025, requiring increased emergency planning and operations and maintenance standards for battery energy storage facilities.

Assembly Bill 942

Passed by the California Assembly on June 4, 2025, Assembly Bill (AB) 942 requires new rooftop solar owners to take service under the current Net Billing Tariff, and eliminates the California Climate Credit for solar customers. This bill aims to reduce the cost shift from solar subsidies onto non-solar ratepayers, potentially lowering their electric bills by an estimated $423 million by 2026 and $3.6 billion by 2043. However, AB 942 retroactively alters Net Energy Metering 1.0 and 2.0 contracts by eliminating grandfathered benefits upon the sale of a property. Under the new provision, those benefits—previously connected to a residential solar system itself—will no longer transfer to the new homeowner.