Energy Market Update - Sustainability Corner

LevelTen Energy’s snapshot on U.S. and EU Power Purchasing Agreement (PPA) pricing is below. For more information on LevelTen please visit www.leveltenenergy.com.

April 29, 2026: RGGI Confirms Virginia’s Re-Entry for July 1, 2026; Identifies Alignment with Third Program Review to Come Later in 2026

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• Virginia is on track to reenter RGGI, the Regional Greenhouse Gas Initiative, on July 1, 2026. The state will participate in the September and December auctions and will likely return as a net buyer, potentially adding upward pressure to allowance prices.
• The Virginia Department of Environmental Quality (DEQ) is pursuing a two‑step approach. First, VA will aim to immediately reenter RGGI by reviving its previous regulation, and second, the state will aim “to align the resurrected regulation with the Third Program Review, which goes into effect in 2027.”
• Key areas to monitor will be energy affordability, especially with continued data center growth in Virginia, and the impact of the upcoming midterm elections which will occur in November 2026.

April 29, 2026: Over 800 New Generation Projects Seek to Connect Under PJM’s Reformed Process

Over 800 New Generation Projects Seek To Connect Under PJM’s Reformed Process | PJM Inside Lines

• PJM Interconnection said 800 generation projects applied to connect to the grid in the first cycle of its revamped interconnection process, which aims to speed reviews and improve predictability. Together, the projects represent about 220 GW of potential capacity.
• After the April 27th application deadline passed, PJM entered the review phase to verify that projects submitted the required technical and financial data for interconnection. PJM will prioritize the most advanced projects under a “first-ready, first-served” approach.
• The applicant pool spans multiple resource types, led by 349 storage projects (66.5 GW) and 157 natural gas projects (105.8 GW), plus 142 solar projects (14.8 GW), 65 wind projects (4.7 GW), 45 solar‑storage hybrids (8.9 GW), 27 nuclear plants (17.9 GW), and others.

The surge in applications underscores strong developer interest and rising electricity demand across PJM, driven mainly by data centers, advanced manufacturing, and broader electrification.

EPA Proposes Partial Rollback of Effluent Limitation Guidelines for Coal Plants

• The EPA Administrator signed a proposal to revise effluent limitation guidelines (ELGs) for unmanaged combustion residual leachate (CRL) from coal plants — water containing coal combustion residuals that leaches from landfills or surface impoundments and is discharged to waters of the United States.
• These standards are a subset of the ELGs finalized by the Biden EPA in 2024, which were subsequently delayed for six years by the current administration.
• The proposal emphasizes flexibility and options, detailing different potential bases for establishing updated limits:
  • "Best available technology" (BAT)
  • "Best professional judgement" (BPJ) — less stringent
• EPA provides several regulatory options for each type of unmanaged CRL.
• The proposal does not address the zero-discharge requirements from the 2024 rule, which many coal plant owners consider a key driver of retirement decisions.
• EPA has signaled it may issue a second proposal later this year to revise those limits.
• 30-day comment period beginning when published in the Federal Register.

EPA Proposes Greater Flexibility for Preconstruction Activities Under New Source Review

• EPA proposes to provide project developers greater flexibility to begin preconstruction activities before receiving a Clean Air Act new source review (NSR) permit
• The NSR program requires that new, major stationary sources — or major modifications at existing, major sources — obtain a permit before beginning construction, a process that can take years to complete
• To help mitigate project delays, the proposal would allow construction of components separate from the "emissions unit" — such as foundations, supports, and wiring — to proceed without an NSR permit
• To implement this, EPA would revise the definition of "begin actual construction" and create a new term for "pollutant-emitting activities"
• EPA is touting the proposal's potential to accelerate the deployment of critical infrastructure, including data centers and power plants
• Pre-permit construction remains "at risk" if the permit is ultimately denied
• Though EPA establishes basic NSR requirements through federal regulations, states may develop their own, more stringent rules
• Environmental groups have signaled they will challenge any revised definitions that allow preconstruction activities without an NSR permit
• EPA argues its interpretation is consistent with the terms of the statute
• Comment period closes June 29, 2026

EPA Issues Guidance to Accelerate Title V Permit Review Process

• Issued May 11, 2026 — EPA issued guidance to EPA regional offices intended to accelerate Title V permit review
• The Title V operating permit program under the Clean Air Act requires major stationary sources to consolidate all applicable air quality requirements into a single, enforceable operating permit renewed every five years
• Concurrent review — Permitting authorities can run the 30-day public comment period and EPA's 45-day review simultaneously; more likely to reduce review time if there is little expectation of public comment, because any substantive updates to the permit record would restart the Agency's review period
• Early close — EPA regions can conclude their review and notify the permitting authority of no objection before the 45-day period ends; however, early close does not initiate an earlier start to the subsequent 60-day public petition period
• Consistent deadlines — EPA regions should use a consistent approach to calculating deadlines for the Title V permitting and petition process
• Guidance was welcomed by industry to potentially streamline the beginning and end of EPA's review periods
• Environmental groups are likely to challenge the memorandum as inconsistent with the public participation goals of the statute
• Implementation may create legal vulnerability for individual permits if the state receives significant comments that result in changes to the record for EPA's review
• This was the second Title V guidance in a month, following April guidance that confirmed permittees with unchanged circumstances can use previously submitted applications with an updated date, and permitting authorities should focus the Statement of Basis only on new or changed requirements

PJM: Delaware Load Forecasting Bill Advances

• SB 308 would give the Delaware Public Service Commission (PSC) certain authorities over utility load forecasts
• The bill was approved by the Senate Environment and Energy Committee this week
• Expected to be taken up and approved by the full Senate next week, which would send the bill to the House

PJM: D.C. Budget Bill Proposes Restrictions to Residential Retail Energy Market

• Mayor Muriel Bowser's proposed FY 2027 budget bill (B26-661) includes a provision that would significantly restructure D.C.'s residential competitive retail energy market
• Expand Public Service Commission (PSC) authority and impose new pricing, contract, transparency, and reporting requirements on competitive suppliers
• Authorizes the PSC to impose price caps generally limited to 110% of the standard offer service rate, with narrow exemptions for:
  • Innovative offerings
  • Public-interest determinations
  • Incremental renewable energy procurement above RPS requirements
• Eliminates legacy treatment of existing contracts — non-compliant agreements must be amended within 60 days or voided
• Prohibits early termination fees
• Mandates public posting of all residential contracts and detailed supplier reporting to the PSC, the Office of the People's Counsel, and the Attorney General

PJM: New Jersey Senate, Assembly Introduce New Nuclear Legislation

• Senators John Burzichelli and Patrick Diegnan and Assemblymen Wayne DeAngelo and David Bailey introduced legislation (S4296 and A4881)
• Would establish an advanced nuclear energy procurement program administered by the Board of Public Utilities (BPU)
• Interested entities would submit an expression of interest to the BPU to construct and operate a new nuclear facility
• The BPU would enter into a stipulation covering:
  • Operational date of the facility
  • Construction cost of the facility
  • Reliability Capacity Certificate (RCC) value and payment schedule
  • Additional items listed in the bill
• The RCC would be a certificate issued by the BPU representing the environmental attributes of one megawatt hour of electric generation
• The bill would direct the BPU to require electric public utilities to purchase a certain number of RCCs each year to provide revenue to the project

Some or all revenues earned by an advanced nuclear energy facility from the sale of energy, capacity, or ancillary services would be returned to New Jersey ra

CDP Scoring Levels

Why CDP Matters to Businesses

• Over 23,100 organizations disclosed through CDP in the last cycle 540+ financial institutions representing US$110 trillion in assets request companies to disclose
• Companies that disclose to CDP report an average 7–10% reduction in direct emissions within two years of reporting
• CDP is aligned with major global frameworks: ISSB (IFRS S2), CSRD (ESRS E1), GRI, TCFD, and TNFD

What's New in CDP 2026? 

• Oceans Module (New) — First-ever ocean-related questions; opt-in for all organizations; unscored in 2026. 
• Forests — Expanded Commodities — Cocoa, coffee, and rubber are now scored, joining cattle, palm oil, soy, and timber. 
• Plastics — Continued Expansion - Continued improvements and additions to plastics disclosure to accelerate the shift toward a circular economy and sustainable material flows
• RE100 & GHG Protocol Alignment — Energy reporting updated for RE100 technical criteria (v5.0); GHG Protocol Land Sector guidance is qualitative only in 2026. 
• Adaptation & Resilience — New questions require organizations to demonstrate concrete adaptation actions beyond risk identification. 
• SME A-List Eligibility (New) — Small and medium enterprises can now achieve a Leadership "A" score for the first time. 

2026 – Key Dates

Why Does it Matter 

• CDP disclosure is increasingly a baseline market expectation — driven by investor demand, supply chain requirements, and regulatory alignment. 
• Understanding how CDP works helps teams engage more effectively with customers navigating their own disclosure and sustainability reporting journeys. 
• CDP is aligned with ISSB (IFRS S2), CSRD (ESRS E1), GRI, TCFD, and TNFD — reducing duplicate reporting for companies using multiple frameworks. 

For questions on these items and more please reach out to SustainabilityTeam@Constellation.com and your inquiry will be directed to an inhouse expert.