Floom Energy Law Top Five | March 2025

Starting this month, Floom Energy Law will post a brief summary and analysis of five notable energy sector news stories from the past month. We believe this will help you understand the weight of these stories and provide a starting point for discussions within your organization and with your representation. If you have any questions regarding these stories, are looking for representation in an upcoming case, or want to work with an energy law firm that can anticipate legal issues that are of interest to your company, please reach out to us at Floom Energy Law.

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EPA's Rollback of Key Environmental Regulations

The Environmental Protection Agency (EPA) announced the rollback of 31 regulations, significantly affecting emissions standards for coal-fired power plants and greenhouse gas policies. EPA Administrator Lee Zeldin stated that these changes aim to reduce regulatory costs, lower living expenses, and revitalize American manufacturing. None of these changes are immediate, and we anticipate an extensive and involved rulemaking process. Environmental groups have expressed strong opposition, arguing that these actions will lead to increased pollution, and have pledged to challenge them. Oil and gas companies will need to carefully evaluate their compliance strategies and anticipate any federal or state-level regulatory responses. | Associated Press

DOE Approves Venture Global LNG Export Project

The Department of Energy approved Venture Global LNG's CP2 liquefied natural gas export facility in Cameron Parish, Louisiana. This decision aligns with the administration's "energy dominance" agenda, aiming to expand the United States' already unmatched oil production and LNG exportation. Despite the approval from the DOE, the project still requires approval from other regulators, including FERC, which pulled Venture Global LNG's authorization to construct the facility in December. Natural gas production and midstream infrastructure companies should monitor the project's progress closely and stay informed about pending regulatory approvals and developments related to LNG exports and infrastructure expansions. | Reuters

States Introduce Regulatory Changes to Attract Energy Investments

Several U.S. states have initiated efforts to attract new power plant projects in response to increasing energy demand from technology companies and federal manufacturing incentives. Pennsylvania is proposing tax incentives and the establishment of an agency to expedite power plant construction. Indiana, Michigan, Louisiana, and Maryland are exploring nuclear power initiatives, while Ohio lawmakers have introduced legislation to encourage the use of Ohio's shale oil and LNG reserves to generate electricity. In Missouri, the Chamber of Commerce and Industry, the state's top utility regulator, the utility companies, and the labor unions support legislation to repeal a law that previously prevented utilities from charging customers before a power plant becomes operational. These actions aim to meet rising energy demands, prevent potential power shortages, and may impact infrastructure planning, investment decisions, and competitive positioning within specific markets. | Institute for Energy Research

FERC Highlights Importance of Natural Gas Infrastructure

Federal Energy Regulatory Commission (FERC) Chairman Mark Christie underscored the critical role natural gas will play in meeting the rising demand for electricity, primarily driven by data centers. Data centers currently account for 1-2% of global energy consumption but are estimated by some experts to reach 20% in the next five years. At an energy conference in Houston, Chairman Christie emphasized the need for expanded pipeline capacity and new gas-fired power plants. The energy industry should anticipate increased regulatory scrutiny and evolving approval criteria for new pipeline projects. | S&P Global and The MIT Sloan School of Management

Growing Interest in Microreactors for Industrial Energy Supply

The increasing power demands of U.S. data centers have spurred interest in microreactors, or small modular reactors (SMRs), generating 20 megawatts or less. These reactors can be factory-built and rapidly deployed to operating sites, making them suitable for data centers operated by large tech companies. Despite the high development costs and uncertain regulatory challenges, potential applications extend to military bases and remote communities. Other markets include hydrogen production and space exploration. The Nuclear Regulatory Commission (NRC) is streamlining its licensing processes, driven in part by the Advanced Nuclear for Clean Energy Act of 2024, while also accommodating the ever-evolving technologies. Successful deployment of these SMRs will require overcoming technical, financial, and regulatory hurdles by the early 2030s, as well as rehabilitating the public opinion of nuclear energy. | Reuters

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In addition to the stories above, here are three that are still developing. We recommend you consider them in the coming weeks. Let us know if we can help with that!

Tariff Impacts on Energy Markets: New tariffs taking effect in April could influence global trade flows and energy prices. These tariffs could result in potential market adjustments and impact international trade strategies.

Offshore Wind Regulatory Uncertainty: The executive order halting new offshore wind projects introduces uncertainty for renewable energy initiatives. This could potentially have an indirect influence on oil and gas demand.

Continued State-Level Energy Policy Adjustments: Ongoing adjustments in state-level energy policies, particularly incentives for energy infrastructure, will continue to shape market opportunities.