The Nickel Report

The geologic sequestration of carbon dioxide (CO₂) is a billion-dollar industry and is only projected to grow over the next decade. The key environmental permit needed for these projects is an Underground Injection Control Class VI permit for the injection wells used for geological sequestration. While some states have obtained authority to issue Class VI permits (including, recently, Texas and West Virginia), in most states, the US EPA is the Class VI permitting agency. EPA has permitted 11 CO₂ storage projects since the inception of the Class VI program in 2010 and currently has over 100 Class VI permits under review. As EPA clears this backlog and ramps up its issuance of Class VI permits, we are likely to see an increase in challenges to these permits before the EPA Environmental Appeals Board (EAB), a process that is often new for Class VI operators. This is a short primer on what Class VI operators can expect if their permit is appealed to the EAB.

On July 3, 2026, the administration released its “2026 Regulatory Plan and the Unified Agenda of Federal Regulatory and Deregulatory Actions.” Historically released twice per year, the unified agenda provides a snapshot of numerous regulatory proposals from across federal agencies, including their expected timeframes for finalization. The US Environmental Protection Agency’s share of the agenda includes multiple proposals under the Toxic Substances Control Act (TSCA) as well as proposals related to per- and polyfluoroalkyl substances (PFAS). That subset largely comprises proposals that appeared on the most recent agenda (“Spring 2025,” released in September 2025), although most have updated timeframes. While some proposals may be further from becoming final rules, several are expected in the near term. When final, these rules could have significant implications for the regulated community.

On August 18, 2026, the D.C. Circuit upheld EPA’s designation of PFOA and PFOS as hazardous substances under CERCLA. See Chamber of Commerce v. EPA, No. 24-1051 (D.C. Cir., Aug. 18, 2026). The court rejected industry challenges to EPA’s analysis of contamination, cleanup costs, and broader economic impacts. It held that EPA reasonably explained its decision in the face of uncertainty because CERCLA response actions are discretionary, contingent, and site-specific, with multiple procedural safeguards before liability attaches. Further discretionary review is available, but, unless and until review is sought, and the panel’s decision reversed or vacated, the designation remains in force.

On July 24, 2026, the Advisory Council on Historic Preservation (ACHP) reportedly voted to move forward with a Notice of Proposed Rulemaking (NPRM) to amend the National Historic Preservation Act (NHPA) Section 106 implementing regulations. Subsequently, this NPRM was submitted to the White House Office of Management and Budget and is now awaiting review and approval to be published in the Federal Register. While the NPRM has not yet been publicly released, a draft that was sent to ACHP members was leaked to the press in late July. If the NPRM is similar to the leaked draft, the proposed changes would significantly streamline the Section 106 process for energy, mining, and infrastructure projects on federal lands or other entities requiring federal environmental permits.

On July 14, 2026, a federal court issued a preliminary injunction enjoining California Attorney General Rob Bonta and “all those in privity or acting in concert with” him from enforcing California’s Truth in Recycling Law, SB 343. While this decision is favorable for the plaintiff organizations and their members, it raises additional questions for non-plaintiff companies attempting to navigate these novel and complex environmental compliance requirements.

The California Air Resources Board (CARB) held a public workshop on July 21, 2026, to preview regulatory concepts for a forthcoming proposed rule to implement the California Corporate Greenhouse Gas Reporting Program (SB 253) requirements beginning in 2027. CARB did not specify a timeframe for release of the proposed rule, which will be subject to a 45-day public-comment period.

On July 16, Senator Martin Heinrich (D-NM), Ranking Democrat on the Senate Energy and Natural Resources Committee, introduced legislation to provide for a streamlined, time-limited electric generation interconnection review process for generation projects that agree to limit their output to a level that will not require grid upgrades. This approach is modeled on the “connect and manage” framework used by the Electric Reliability Council of Texas (ERCOT) region.

On July 14, 2026, the US Fish and Wildlife Service and the National Marine Fisheries Service (together, Services) issued a final rule rescinding the regulatory definition of “harm” under the Endangered Species Act (ESA) and thereby shifting its interpretation of the ESA’s “take” prohibition to no longer extend to habitat modification. This rule marks the administration’s latest protected species-related deregulatory action and will become effective 60 days after publication, on September 14, 2026. The final rule is highly controversial and has already drawn legal challenges in three different suits.

The Northern District of California vacated portions of four provisions in the Endangered Species Act Section 7 consultation regulations, reinstating earlier regulatory text governing effects of the action, mitigation measures, adverse modification, and the Service’s duty to request reinitiation. 

Starting in June 2027, California’s “compostable” labeling standard will prohibit certain products from being labeled as “compostable,” even if they are ASTM-certified. This is particularly important considering California’s Extended Producer Responsibility (EPR) law, which will require covered products to be either recyclable or compostable by 2032. Regulated entities should understand the contours of California’s “compostable” standard and begin developing internal mechanisms to ensure compliance and avoid unexpected production pauses or enforcement actions.