Key Climate Policy Developments to Watch This Week

**Climate Policy Outlook: 4 Stories to Follow This Week**

Senate Republicans are struggling to find common ground on clean energy credits while a bipartisan group urges the Trump administration to leave coastal oil shelves untouched.

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### Week of June 23, 2025

#### Senate Republicans Divided Over Climate Tax Credits

Senate Republicans are at odds regarding the extent to which they should reduce Biden-era green energy tax credits as they shape their version of a significant legislative package ahead of a July 4 deadline. Some members, like Missouri Senator Josh Hawley, advocate for a rapid phase-out, citing costs and ideological concerns. In contrast, Senators Thom Tillis of North Carolina and Shelley Moore Capito of West Virginia support a more measured and targeted approach, allowing for flexibility in specific projects like hydrogen hubs. The Senate’s moderate rollback has already created friction with House conservatives, particularly those in the Freedom Caucus, who are calling for more stringent cuts.

#### Bipartisan Voices Urge Trump to Maintain Coastal Oil Shelf Moratorium

In response to the Trump administration’s request for information regarding the 11th National Outer Continental Shelf Oil and Gas Leasing Program, hundreds of bipartisan voices have urged the president to uphold the existing moratorium. Among the signatories are North Carolina Governor Josh Stein, South Carolina Governor Henry McMaster, 107 legislators from 19 coastal states and territories, and various environmental groups.

#### Senate Parliamentarian Rules Against Federal Climate Provisions

Several major energy and climate provisions in the Senate Republicans’ proposed party-line bill are now in jeopardy after the Senate parliamentarian determined they violate budget reconciliation rules. These measures, which include attempts to repeal portions of the Inflation Reduction Act and amend EPA vehicle emissions regulations, must now meet a 60-vote threshold to pass. This ruling threatens to significantly alter key GOP priorities, compelling Republicans to either revise their proposals or abandon them altogether.

#### SEC Withdraws from ESG Rulemaking

The SEC’s long-anticipated rule requiring enhanced ESG disclosures from investment advisers and corporations has been abandoned, following a change in administration. Initially expected to be released in 2024, the SEC has withdrawn its proposed rules aimed at curbing greenwashing by standardizing ESG fund disclosures. This includes greenhouse gas emissions reporting and alignment with sustainability-focused fund names.

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### Week of June 16, 2025

#### Study Projects $1 Trillion GDP Loss Due to Climate Regulation Repeals

As the Trump administration advances the repeal of critical climate regulations, a new study from the University of Maryland estimates a potential loss of $1.1 trillion in GDP and 22,800 premature deaths by 2035. The findings indicate that states heavily reliant on fossil fuels, such as West Virginia and North Dakota, will be most adversely affected, while states with strong clean energy policies will experience lesser impacts.

#### U.S. Takes a Stand Against Plastic Production Ban

While 95 countries are backing an ambitious global treaty to curtail plastic production, the U.S. has not joined this initiative. Opponents of the treaty, including fossil fuel-producing nations like Saudi Arabia and Russia, are advocating for limitations focused solely on recycling and consumption. Advocates are concerned that a weak agreement would be ineffective, and if consensus cannot be reached, alternatives may be pursued.

#### Trump Blocks California’s EV Regulations

President Trump signed a resolution blocking California’s landmark legislation that bans the sale of new gas-powered cars by 2035. This decision reverses the state’s authority to implement stricter emissions standards, undermining its efforts to combat air pollution and climate change.

#### Local Leaders Criticize EPA for Pollution Standard Rollbacks

The Trump administration announced the repeal of the Biden-era Clean Power Plan 2.0, which aimed to regulate emissions from fossil fuel power plants. While the administration argues that repealing these regulations will promote energy production and reduce costs, local leaders and environmental advocates are warning that this decision could jeopardize public health and worsen air quality.

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### Week of June 2, 2025

#### Labor Department Abandons ESG Investment Rule

The Department of Labor has informed a federal court that it will cease defending the “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights” rule, which previously allowed retirement plan fiduciaries to consider ESG factors in investment decisions. This decision comes in response to challenges from Republican-led states stating that the rule conflicted with the Employment Retirement Income Security Act of 1974.

#### Auto Executives Face Punishment Over Emissions Scandal

A German court has convicted four former Volkswagen managers for their involvement in the emissions cheating scandal that has cost the company over $33 billion in fines and compensation. Legal proceedings are ongoing for an additional 31 individuals associated with the scandal.

#### Maryland Governor’s Vetoes Spark Backlash

Maryland Governor Wes Moore has faced criticism for vetoing several climate and environmental bills that had garnered widespread support. Critics argue that these studies would have come at a minimal cost, predominantly funded by non-taxpayer sources, raising doubts about the governor’s commitment to his climate agenda.

#### Supreme Court Limits NEPA’s Scope

The Supreme Court has unanimously ruled to narrow the scope of environmental reviews required under the National Environmental Policy Act (NEPA). This decision allows federal agencies greater discretion in assessing environmental impacts, potentially leading to delays in infrastructure development.

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### Week of May 19, 2025

#### Trump Administration Rescinds Climate Grants

The federal government is moving to rescind a $19.9 million grant awarded to Gonzaga University for climate resilience work in Spokane, citing a shift in priorities. This funding was aimed at retrofitting homes, creating extreme weather shelters, and training workers for clean energy jobs.

#### Bipartisan Water Infrastructure Bill Introduced

Senators Mark Kelly (D-Ariz.) and John Curtis (R-Utah) have introduced the Restoring WIFIA Eligibility Act, which seeks to enhance access to federal funding for crucial water infrastructure projects in the Western U.S.

#### Nine States Collaborate on Energy Production Control

Maryland and eight other Northeastern states have initiated a collaborative transmission action plan to take control of regional grid planning and advance clean energy goals in response to rising electricity costs.

#### House Ways and Means Budget Proposal Threatens Clean Energy Initiatives

The House Ways and Means budget proposal aims to roll back much of the Inflation Reduction Act, potentially hindering the development of solar, wind, storage, and electric vehicle initiatives.

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This week’s developments illustrate the ongoing complexities and tensions surrounding climate policies at both state and federal levels, highlighting the critical role of bipartisan dialogue and local action in addressing these pressing issues.