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Inside the Greenhouse is a monthly update on FCNL’s environmental advocacy and the climate crisis. 


Bipartisan Governor Letter Calls on Congress to Overhaul Energy Permitting

Thirteen governors of the bipartisan National Governors Association (NGA) issued a letter calling on Congress to move quickly on permitting reform. Led by Kevin Stitt (OK) and Josh Shapiro (PA), the governors warn that the U.S. risks falling behind countries like China if developers can’t build new infrastructure fast enough to meet rising power demand.

Their pitch ties the issue to some of the country’s biggest challenges, including keeping up in the AI race, bringing down energy costs for consumers, and upgrading the grid to be more resilient in the face of extreme weather. The governors argue that outdated approval processes are slowing down pipeline and transmission projects that could make energy more affordable and reliable.

A major part of their proposal centers on updating the National Environmental Policy Act (NEPA), which requires federal agencies to study the environmental impacts of major projects before giving them the green light. Among the changes they’re suggesting is a cut to NEPA’s statute of limitations for lawsuits challenging agency decisions from six years to one year or less.

The bipartisan coalition is also calling for more authority for the Federal Energy Regulatory Commission (FERC) to designate National Interest Electric Transmission Corridors, which are high-priority routes for expanding the electric grid and connecting new sources of clean energy.

News and Updates

California Stepping Up to Meet Emissions Cut Goals

California regulators are weighing big changes to the state’s carbon market to make polluting more expensive for companies and accelerate its progress towards climate goals. The California Air Resources Board, which runs the nation’s largest carbon market, is considering stricter rules, such as reducing the number of pollution allowances and cutting back on free permits for certain industries. These changes would raise costs for emitters and encourage cleaner practices.

The move supports California’s goal to cut emissions 40% below 1990 levels by 2030 and reach carbon neutrality by 2045. A new law signed this year also extended the carbon market’s lifespan to 2045, ensuring it remains a key tool in reducing California’s carbon footprint.

Exxon Lawsuit Challenges Climate Disclosure Update 

As California is tightening pressure on big polluters, Exxon Mobil is suing the state, asserting that reporting requirements unfairly target fossil fuel producers and violate the First Amendment.

California’s new climate disclosure laws, known as S.B. 253 and S.B. 261, will require corporations with over $1 billion in revenue to disclose their supply-chain emissions starting in 2026. Those making over $500 million will also be required to biennially report financial risks tied to climate change, including impacts from climate-related natural disasters on business operations, financial standing, and investments.

Business groups like the U.S. Chamber of Commerce filed similar lawsuits last year. A federal judge has refused to block the laws noting “plaintiffs failed to show a likelihood of success on [their] merits” tied to the First Amendment, but this case is currently on appeal in the 9th U.S. Circuit Court of Appeals.

What We’re Reading:

Paul Aversa Headshot

Paul Aversa

Program Assistant for Nuclear Disarmament and Pentagon Spending

Paul Aversa is the 2025-2026 Program Assistant for Nuclear Disarmament and Pentagon Spending. He lobbies Congress to address international climate change and conservation issues, and conducts interviews with people at the frontlines of the climate crisis to better understand their perspectives.