The Pennsylvania General Assembly on April 23, 2025 introduced a suite of legislation to implement Governor Josh Shapiro’s six-part “Lightening Plan” to secure the commonwealth’s energy future. A key element of the Lightening Plan is establishing a new Reliable Electric Energy Siting and Electric Transition (RESET) Board to streamline energy infrastructure permitting. Pennsylvania is currently one of only a handful of states that does not have a central siting authority. Such authorities can ensure that large-scale energy generation projects are constructed to meet the surging electric demands of residents, businesses, and data centers.
Power & Pipes
FERC, CFTC, and State Energy Law Developments
In November 2023, the Pennsylvania Public Utility Commission (PUC) issued a proposed policy statement to encourage Pennsylvania’s electric distribution companies (EDCs) to develop distribution and default service rate structures for electric vehicle (EV) charging customers. Following a review of comments submitted by stakeholders, on December 19, 2024, the PUC adopted a Final Policy Statement Order, which addressed those comments and included a final policy statement (Policy Statement). The Policy Statement became effective on February 15, 2025 following publication in the Pennsylvania Bulletin.
President Donald Trump issued an executive order (EO) establishing the National Energy Dominance Council (Council) on February 14, 2025. The EO outlines the rationale for creating the Council, its members, and its primary functions.
Donald J. Trump became the 47th president of the United States on January 20. His second inaugural address focused significantly on energy policy, where he promised to declare a national energy emergency. Making America “energy dominant again” is the second of his four America First Priorities. President Trump’s energy policy aims to meet two of his goals: reducing energy costs as part of his plan to “defeat what was record inflation and rapidly bring down costs and prices” and restoring American manufacturing.
On January 14, 2025, with just days remaining before a presidential administration change, President Joseph R. Biden issued an Executive Order on Advancing United States Leadership in Artificial Intelligence Infrastructure (EO) that directs federal government agencies to solicit proposals for the development of “frontier” artificial intelligence (AI) data centers on federal lands. While the EO remains for now, it could soon be rescinded by the new administration. Recognizing the substantial amount of energy infrastructure needed to train AI models, the EO is heavily focused on incentivizing the expeditious development of low or zero carbon energy resources to power these AI data centers. Set out below is a summary of key parts of the EO. Morgan Lewis’s data centers team is available to discuss the EO and assist with data center development and related issues.
The US Department of Energy’s (DOE’s) Office of Clean Energy Demonstrations has announced initial funding awards for two additional regional clean hydrogen hubs, bringing the total number of regional hydrogen hubs with initial funding awards to five. The regional hydrogen hubs are expected to create networks of hydrogen producers, consumers, and local connective infrastructure and accelerate the use of hydrogen as a clean energy carrier.
The US Department of Energy (DOE) and the Department of Commerce (DOC) announced on October 30, 2024 a Memorandum of Understanding (MOU) signed earlier this year to collaborate on safety research, testing, and standards for artificial intelligence (AI). The National Institute of Standards and Technology (NIST), a federal agency within the DOC and a leader in standards development across a range of industries, will represent the DOC under the MOU.
Earlier this year, the Federal Energy Regulatory Commission (FERC or the Commission) issued Order 1977 to address its limited backstop siting authority for electric transmission lines. On October 17, 2024, FERC issued Order 1977-A, adding a new requirement mandating that siting applicants seeking rights of way on Tribal lands must include their Tribal Engagement Plans within their project proposals.
The Federal Energy Regulatory Commission (FERC or the Commission) issued a notice of proposed rulemaking on September 19, 2024 to tighten its existing mandatory controls for certain electric assets. The proposal reflects FERC’s increasing concern that current controls are not up to the task of preventing bad actors from infiltrating the supply chain of critical electric infrastructure, thereby creating significant risk to electric system reliability.
The US Senate Committee on Energy and Natural Resources has advanced the Energy Permitting Reform Act of 2024, a bipartisan energy bill that would facilitate permitting for energy infrastructure and mining projects.