Articles Posted in State

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Maryland lawmakers have overridden the governor’s veto to enact legislation directing a statewide assessment of climate-related costs, while New Jersey lawmakers are preparing a January committee hearing for the State’s pending Climate Superfund Act. Together, these actions underscore continued state-level interest in both study-based and liability-focused climate-cost attribution frameworks, even as four separate lawsuits challenging state climate superfund statutes in New York and Vermont proceed in federal court.

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On December 9, 2025, the California Air Resources Board (CARB) issued proposed regulations and a staff report for California’s comprehensive climate disclosure laws, the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261). These proposed regulations come less than a month after the Ninth Circuit issued an injunction temporarily halting enforcement of SB 261, at least until a January 9, 2026, hearing on the plaintiffs’ requested longer-term injunction through the remainder of the First Amendment challenge to the laws. The draft regulations would adopt some, but not all, of the provisions proposed by CARB in its public workshops on the laws to date, and notably would scale back applicability to those companies above a threshold level of sales in the state. The proposed regulations also define key terms, establish the program fee structures, explain fee enforcement and set initial reporting timelines. The written comment period begins on December 26, 2025, and ends on February 9, 2026. CARB will hold a public hearing on the proposed regulations on February 26, 2026 at 9 a.m. PST.

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On October 10, 2025, Governor Newsom signed SB 440, titled the Private Works Change Order Fair Payment Act. The new law introduces a process and deadlines for handling change order, time extension and payment disputes on private-works construction projects. SB 440 will apply to contracts entered into on or after January 1, 2026, and will remain in effect until January 1, 2030.

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CARB-logo-300x225The California Air Resources Board (CARB) released a preliminary list of companies it believes may be subject to the state’s new climate disclosure regime, which imposes significant disclosure duties on large United States entities “doing business in California”—even if the business they do in California is not itself large. CARB’s list comes after a federal trial court declined to stay the rules, with the first compliance deadline set to go into effect January 2026 even as the agency’s implementing regulations remain under development.

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On June 20, 2025, Texas Governor Greg Abbott signed Texas Senate Bill 17 (SB 17) into law, reshaping the landscape for global investment in Texas real estate. When the new statute takes effect on September 1, 2025, it will impose expansive state-level restrictions on property ownership through sweeping prohibitions aimed at limiting land acquisition by certain foreign governments, companies and individuals.

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On June 27, 2025, the Texas Supreme Court issued its long-awaited decision in Cactus Water Services, LLC v. COG Operating, LLC, No. 23-0676, resolving a high-stakes dispute over the ownership of produced water—a vexing byproduct of oil and gas production that is increasingly being viewed as a resource rather than waste—and its constituents. The Court held that, unless expressly reserved, a deed or lease conveying oil and gas rights also conveys produced water as part of the mineral estate. The decision not only reinforces the ownership of produced water under Texas oil and gas law, but also offers insight into how emerging practices such as direct lithium extraction (DLE) from produced water might be treated under existing legal frameworks.

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On June 9, 2025, the U.S. Environmental Protection Agency (EPA) proposed granting the State of Texas  primary enforcement authority—commonly referred to as “primacy”—over the permitting and regulation of Class VI underground injection control (UIC) wells under the Safe Drinking Water Act (SDWA). This would authorize the Texas Railroad Commission (RRC) to regulate the geologic sequestration of carbon dioxide (CO₂) through Class VI wells—an essential component of carbon capture and storage (CCS) infrastructure.

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In a closely watched opinion issued on May 16, 2025, the Texas Supreme Court in Myers-Woodward, LLC v. Undergrounds Services Markham, LLC, — S.W.3d —, No. 22-0878, 2025 WL 1415892 (Tex. May 16, 2025) resolved a long-uncertain issue of subsurface property rights in the context of salt dome mining. The Court held that, unless a deed provides otherwise, subsurface voids created by salt mining operations are owned by the surface estate holder, not the mineral interest holder. By rejecting a salt-specific rule, the Court harmonized ownership principles across subsurface formations, applying a uniform rule regardless of the type of mineral removed.

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Even as the Trump administration moves to block state and local climate liability efforts, states and municipalities continue to advance lawsuits seeking to hold fossil fuel companies liable for harms associated with climate change. Most recently, the State of Hawaii initiated a climate deception lawsuit, and the City of Charleston, South Carolina, submitted a briefing in a pending case—each alleging that the fossil fuel industry engaged in a decades-long campaign to mislead the public about the risks of fossil fuel consumption and climate change. Both developments come as the Trump administration escalates its opposition to such suits, issuing on April 8 an executive order (EO), Protecting American Energy From State Overreach, targeting and filing lawsuits making constitutional challenges to state-led climate litigation and legislative actions—including a preemptive action against Hawaii just days before the state’s filing.

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