Climate Policy News You Can Use — June 2025

Dear Colleagues,

Some good news! The International Energy Agency (IEA) recently found that, despite geopolitical tensions and economic uncertainty, capital flows to renewables in 2025 are set to be double that of oil, natural gas, and coal. Policy will enable that trend to continue and accelerate.

Just like summer, the important climate policy developments we need to cover are heating up. Please see the latest below and feel free to reach out for further discussion. Also, if you are attending New York Climate Week we’d love to hear what your plans are and get time to say hello in person if possible.

All Eyes on the Senate Today

The Senate is working to quickly advance the Budget Reconciliation bill. Senate staff have spent the last several days before the Senate Parliamentarian to determine what provisions are budget related and which must be stricken from the bill, while negotiations have continued between Senators as well as House leaders and, increasingly, the Trump administration. President Trump himself has weighed in asking that the final bill be on his desk by the 4th.

Today, the Senate will consider amendment votes all day in a vote-a-rama with the goal of passing their version tonight. The House could then take up that version as soon as Wednesday morning. Given this, today is likely the last critical chance for important changes to be made in the Senate to protect the energy tax provisions.

While the initial drafts from the Senate contained some modest improvements, the version released Friday night was a setback for the energy tax provisions. See our statement here and reach out to us for the latest intel on changes being made and how they could affect your operations.

Take Action:

• Engage Senators today whose states you are investing in and tell them about the tax credits and grant programs your company has benefitted from.
• Align your trade associations with your advocacy to maintain these incentives.

Go Deeper:

• Utilize important data such as CEBA’s research on tech-neutral credits, which shows that American residential customers could see electricity prices on average increase by $110 yearly if the credits are repealed.

EPA Regulatory Rollback Picks Up Steam

The Biden-era EPA protections from power plants pollution have quickly come under fire amidst the EPA’s broader regulatory rollback agenda. These rules ensure cleaner air and greater well-being for communities across the country. They also work with existing power sector trends and allow for more clean, renewable energy to meet demand, which is already occurring due to its growing economic advantages over fossil fuel-fired energy. In addition, these rules provide regulatory certainty for businesses that are looking to purchase more renewable energy to meet their decarbonization goals.

While the comment period for the anticipated Endangerment Finding withdrawal is still expected soon, the specific comment period for the rollback of power plant greenhouse gas pollution standards is now live and it’s a tight deadline – comments are due August 7. Companies should carefully assess what’s at stake in both rulemakings, as this rollback could weaken the foundation for the Endangerment Finding and broader climate regulation – making early and sustained engagement on both critical.

Take Action:

• Submit a public comment urging the EPA to maintain this critical rulemaking. Options include submitting comments individually or signing onto coalition letters, like this sign-on letter organized by Ceres. Please reach out for more information on that letter.

Go Deeper:

• Reach out to us if you’re interested in discussing more on how these rules impact your ability to procure clean energy.

New York Businesses Need Policy Certainty & Cap-and-Invest Can Deliver

Governor Hochul’s administration has taken a strong first step by advancing rules to require emissions reporting from large greenhouse gas emitters. This is a key step to stronger New York emissions regulations, particularly at a moment when the US EPA is set to discontinue its own reporting requirements for large polluters. But collecting data is only part of the equation. To meet climate goals and provide the market certainty businesses need, New York must move swiftly to implement a full cap-and-invest program. Cap-and-invest provides a predictable, declining limit on pollution and reinvests billions annually into clean energy, resilient infrastructure, and workforce development.

The public comment period on the emissions reporting rule is now open. This is a key moment for businesses to urge the state to take the next step: adopt a robust, economy-wide cap-and-invest program that cuts emissions and drives clean investment across the state.

Take Action:

• Submit a quick public comment urging timely implementation of cap-and-invest.

Go Deeper:

• Check out EDF’s blog on what cap-and-invest can do for NY residents.
• New economic analysis shows how cap-and-invest delivers for Washington and California – and informs how New Yorkers could similarly benefit.
• Reach out to us if you’re interested in learning more about how businesses can benefit from a strong cap-and-invest program or signing a joint letter in support of New York’s timely adoption.

Keeping up with the US Administration

• The Supreme Court upheld fossil fuel companies’ standing to challenge California’s CAA vehicle emissions regulation waivers, finding that EPA’s revocation of waivers “would likely redress at least some of the fuel producers’ [potential] monetary injuries.” The case SCOTUS took up was narrow in scope and did not address the merits of CA’s program. See EDF’s statement for more.
  • Stating that California’s stricter emissions regulations “force automakers to manufacture more electric vehicles and fewer gasoline-powered vehicles,” the Court reasoned that “invalidating California’s regulations would likely mean…more sales of gasoline and other liquid fuels by the fuel producers.”
• Pursuant to 2025 Executive Order “Unleashing American Energy,” CEQ withdrew 2023 interim guidance on National Environmental Policy Act compliance with regards to greenhouse gas emissions and climate change considerations.
  • CEQ cites the executive order’s critique of “social cost of carbon” calculations as justification for the rescission.
• Pursuant to 2025 Presidential Memorandum “Updating Permitting Technology for the 21st Century,” the White House Council on Environmental Quality published the Permitting Technology Action Plan to establish “minimum functional requirements for environmental review and permitting systems.”
  • The plan encourages agencies to use artificial intelligence for environmental determinations and responses to public comments. CEQ instructs agencies to submit an implementation plan by August 28, 2025.

ICYMI – Things We’re Tracking

1. NZAA Newsletter: Curious How Others are Winning Buy-In For Climate Goals Across their Business?
2. EDF Press Release: Trump EPA Proposals Would Eliminate Protections Against Power Plant Pollution
3. EDF Press Release: President Signs Congressional Review Act Resolutions Attacking State Clean Vehicle Standards

Thank you for reading. If you got this far and are wondering, “what about all the important updates in Europe?” – we’ll be doing a deep dive on those implications next month!

As always, if this was forwarded to you, email us to subscribe!

Best,
Daniel Neff on behalf of the Climate Policy Leadership Team