ESFPA E-News

Government Shutdown Ends

Last Wednesday the House Passed the Senate version of a Continuing Resolution (CR) to end the longest ever federal government shutdown. The CR funds the federal government through January 30, 2026, giving Congress 7 weeks (including two long holidays) to pass the 2026 federal budget. Of 12 appropriation bills that make up most of the federal budget, 2 have largely been developed between the House and Senate.

The CR that passed did also include a one-year extension of the Farm Bill, giving Congress time to work on a Farm Bill re-authorization in 2026. The House and Senate are working on the remaining 10 appropriation bills, and we should see drafts of these bills before the Christmas break.

EUDR Revisited Again

We reported recently that the EU Commission had rescinded the one-year extension of the EU Deforestation Rule (EUDR) extension through December 2026, meaning the EUDR would come into effect for large manufacturers in December 2025. Well, late last week the European Council had some reservations of the Commission's decision to rescind the delay.

Germany came forward at the European Council with a proposal that that, among other things, includes maintaining the 12-month delay and requires the European Commission to come forward with additional simplification proposals by April 2026. With Germany in favor of both a delay and further simplification, there may be enough support at the Council for these critical EUDR changes to move forward. The Council is expected to vote this week on these proposals. From there, the Council’s position becomes the starting place for final negotiations between the Commission, the Council, and the Parliament. Our colleagues at the National Alliance of Forest Owners (NAFO) are closely monitoring the process in Brussels and will keep us informed of developments.

We are also working with NAFO in circulating a EUDR Impact Survey to our members. If you would please take a moment and complete the survey. This information will be used in NAFO's advocacy efforts in Brussels on behalf of our sector. Real impacts on real businesses are what matters here and in Europe. Thank you for your help!

Click the link below to take the survey:

Pause on NY All-Electric Buildings Act

This is a win. BUT, Governor Hochul did not "back off" on state-mandated electrification of buildings.  This "pause" is good; but some of the headlines would lead you to believe the Governor has seen the light - we could only hope. Here's what happened:

In October of 2023, Mulhern Gas Company (down in Hudson, NY) and several industry trade associations filed suit in the U.S. District Court for the Northern District of New York challenging New York’s All-Electric Buildings Act, which was scheduled to take effect January 1, 2026. The plaintiffs argued that the law is preempted by the federal Energy Policy and Conservation Act (EPCA) and therefore invalid under federal law. The district court sided with the State, finding that the EPCA is not preempted (unfortunately). The industry folks then appealed to the higher court, U.S. Court of Appeals for the Second Circuit, and sought an injunction - pause - to halt implementation while the appeal is pending.

Then, last Thursday, the parties reached an agreement: the industry would withdraw their motion for an injunction if the State agreed to suspend enforcement of the All-Electric Buildings Act until the appeal is fully resolved. This means the law will not take effect until at least 120 days after a final court decision upholding it, whether by the Second Circuit or, if further appealed, the U.S. Supreme Court. The good news is that could take a long time. The bad news is, the law is still on the books, and the Governor is not backing down.

Cynics would say the Governor used the court case as cover to delay this until after her election in Nov 2026. A spokesman for Governor Hochul said the governor “remains committed to the all-electric-buildings law.”. So, yes there is a pause but yes there is still an all-electric buildings law. Let's remember though, this law only applies to fossil fuel appliances in buildings, not biomass.

Whitney Sale Falls Apart

The Adirondack Explorer recently reported that the pending sale of the Whitney estate in Long Lake has fallen apart. Citing an "unsolvable challenge" in terms between the estate, the purchaser and the State of New York, the pending $125 million deal appears to have collapsed. As proposed it was an expensive and complex deal. It's unclear where this sale goes from here now.

Click the link below to read the full article: