.

As co-chair of the Healthcare Transactions & Regulations Practice Group, Alissa helps individuals and organizations in the health industry achieve their business goals through strategic transactions and applying federal and state laws business initiatives.

Alissa represents health systems, hospitals, pharmacies, specialty pharmacies, wholesale distributors, pharmacy benefit managers, long-term care providers, third party administrators, vendors in the healthcare industry, medical practices and other organizations in the healthcare industry. Alissa also represents health care companies in the telehealth space, including telehealth providers, platforms and mail order and online pharmacies. Her practice involves health law transactional work, federal and state health law regulatory compliance advice, and administrative advocacy before state and federal agencies.

Alissa’s transactional practice includes counseling clients in the healthcare industry on all aspects of affiliations, ranging from contractual arrangements to joint ventures to mergers and acquisitions. Alissa also advises on hospital-provider relationships including employment agreements, professional service arrangements, peer review investigations and medical staff fair hearings.

Alissa’s regulatory practice includes the interpretation and application of state and federal fraud and abuse laws such as Stark, Anti-kickback, and the False Claims Act; Medicare and Medicaid rules including payment rules such as Medicare Part D regulations; corporate practice of medicine laws and provider-based regulations; tax-exemption laws; HIPAA and privacy laws; EMTALA laws; and licensing and accreditation requirements.

She also assists with corporate and health system governance issues, including the preparation of policies and procedures, the revision and negotiation of medical staff bylaws, establishing corporate existence including preparing operating agreements and other governance documents, and in assisting in all aspects of participation in accountable care organizations including assisting with the legal structures, policies and procedures and the application process required for participation in the Medicare Shared Savings Program.

Alissa’s administrative practice includes representing healthcare providers in negotiation with a variety of state and federal agencies, such as negotiations with: the DOJ, OIG and DEA in self-disclosures and other healthcare investigation matters; CMS and OIG in EMTALA matters; CMS and their fiscal intermediaries and other contractors in healthcare payment issues; and state licensing and certifying bodies. Alissa regularly represents clients in Certificate of Need hearings; including advising those who are seeking to have their applications approved, and representing those who oppose projects in the Certificate of Need process.

Select Experience

  • Represented large health system in a unit purchase agreement to buy out and become the majority owner of an ambulatory surgery center.
  • Represented a large health system in structuring a joint venture with a faculty practice plan for the provision of rural health care services.
  • Represented a joint venture it is formation between a large health system and a large senior services provider for the ownership and operation of a new senior services company.
  • Represented a hospital in structuring a multi-specialty professional services agreement with a large physician clinic.

Education

  • University of Iowa (J.D., 2004)
    • Graduated with Honors
  • University of Iowa (Masters of Health Administration, 2005)
  • University of Northern Iowa (B.A., Communicative Disorders and Psychology, 2001)
    • Graduated with Highest Honors

Bar Admissions

  • Iowa
  • Illinois
  • Alaska

Professional Affiliations

  • Member, Polk County Bar Association
  • Member, Iowa Bar Association
  • Member, Illinois Bar Association
  • Member, American Health Law Association
  • Member, Iowa Hospital Association
  • Adjunct Assistant Professor, University of Iowa, College of Public Health, Department of Health Management and Policy
  • Iowa Organization of Women Attorneys, Board Member, 2011-2016; Member, 2016-present
  • Iowa Hospital Association’s Iowa Society of Healthcare Attorneys, Board Member, 2014-2018; Member, 2004-present
  • Iowa State Bar Association’s Health Law Section, Co-Chair, 2016-2019; Member, 2004-present
  • Des Moines Swimming Federation, Board Member, 2019-present

Accolades

  • Best Lawyers in America®, Health Care Law, 2015-2026
  • Best Lawyers® Lawyer of the Year, Health Care Law, Des Moines, 2026
  • Great Plains Super Lawyers®, 2019-2026
  • Consistently providing pro bono legal assistance to those in need through Dorsey’s Pro Bono program
  • “Des Moines Lawyer of the Year” in Health Care Law by Best Lawyers®, 2018, 2022
  • Dorsey U Partner of the Year Award, 2020
  • Great Plains Super Lawyers®, "Rising Stars,"2 013-2018

Select Presentations

  • “Legal Issues for Physician Leaders: An Overview of the Law and Discussion with Health Lawyers in the Trenches,” Iowa Hospital Association Physician Business Leadership Certification Program, April 22, 2025.
  • “When Helping Patients Violates the Law: Strategies for Providers in Developing and Operating Comprehensive Patient Assistance Programs,” American Health Law Association Advising Providers Conference, February 20, 2025.
  • “Hospital Joint Ventures: A Primer,” October 23, 2024.
  • “Legal Updates for Hospital Leaders: 2024 Year in Review,” Iowa Hospital Association Annual Meeting, October 2024.
  • “Legal Aspects of Patient Assistance Programs,” June 12, 2024.
  • “Fair Housing in Assisted and Independent Living,” May 22, 2024.
  • “Legal Updates for Aging Services,” LeadingAge Iowa Spring Conference, May 8, 2024.
  • “Iowa Open Meetings and Open Records Laws,” January 25, 2024.
  • “Generative AI in Health Care Clinical Settings – Ethical and Legal Implications,” Iowa Hospital Association Annual Meeting, October 11, 2023.
  • "LeadingAge Iowa Spring Conference:  Legal Updates for Aging Services," Leading Age Iowa Spring Conference, May 4, 2023.
  • "Cyber Incident Preparedness & Response," 2023 Legal Summit, May 9, 2023.
  • "Legal Issues for Hospital Physician Leaders: An Overview of the Law & Discussion with Health Lawyers in the Trenches," Iowa Hospital Association, April 11, 2023.
  • "The End of the COVID-19 Public Health Emergency Declaration: Implications for Hospitals", Iowa Hospital Association, March 28, 2023.
  • "Hospital Transparency and No Surprises Act: State and Federal Laws Impacting Healthcare Providers in Alaska", American College of Healthcare Executives – Alaska Chapter, December 9, 2022.
  • "The End of the COVID-19 Public Health Emergency Declaration: Implications for Hospitals", Iowa Hospital Association, December 1, 2022.
  • "Hospital Transactions and Strategic Development", The Iowa Hospital Association 2022 Governance Webinar 4-Part Series, November 15, 2022.
  • "Data Privacy and Security: What Hospital Trustees Must Understand", The Iowa Hospital Association 2022 Governance Webinar 4-Part Series, September 13, 2022.
  • "Health Care Fraud and Abuse", The Iowa Hospital Association 2022 Governance Webinar 4-Part Series, July 12, 2022.
  • "Fiduciary Obligations and Conflicts of Interest", The Iowa Hospital Association 2022 Governance Webinar 4-Part Series, May 17, 2022.
  • "Legal Updates for Aging Services", LeadingAge Iowa Spring Conference, May 5, 2022.
  • "Legal Aspects of the Hospital’s Medical Staff Function", Iowa Hospital Association Quality Residency Program, March 11, 2022.
  • "Hospital Care Privacy and Security Law Update", Iowa Hospital Association Annual Meeting, October 7, 2021.
  • "Legal Updates for Long-Term Care Providers in Iowa", LeadingAge Iowa Fall Conference, September 15, 2021.
  • “Perry Lutheran Home: A Case Study in Long-Term Care M&A Legal Issues in Iowa” LeadingAge Iowa 2021 Spring Conference, May 5, 2021.
  • “Legal Updates for Aging Services” LeadingAge Iowa 2021 Spring Conference, May 4, 2021.
  • Sweeping Changes to the Stark and Anti-Kickback Regulations: Final Rules for Hospitals, January 5, 2021.
  • Iowa Hospital Association 2020 Governance Webinar Series – Fraud and Abuse.
  • Annual HIPAA Training for the Iowa State Association of Counties, November 16, 2020.
  • “HIPAA Training” Iowa State Association of Counties Annual Training, November 19, 2019.
  • “Involuntary Discharge or Transfer: A Discussion about the Iowa and Federal Requirements, and Mock Hearings,” LeadingAge Nurse Leadership Symposium & Social Worker Conference, November 14, 2019.
  • “Preparing for the Future by Understanding the Changing Landscape of Litigation and Enforcement Initiatives Against Pharmacies, Pharmacists and Other Providers,” American Society for Pharmacy Law Developments in Pharmacy Law Seminar, November 8, 2019.
  • “New Pharmaceutical Hazardous Waste Rules for Long Term Care Facilities,” 2019 LeadingAge Iowa Fall Conference, September 11, 2019.
  • “Overpayments, Internal Investigations and an Update on the Implied Certification Theory Three Years Post-Escobar,” Iowa Society of Healthcare Attorneys Spring Meeting, May 23, 2019.
  • “Health Insurance Portability and Accountability Act: HIPAA for Lawyers,” Iowa State Bar Association, May 8, 2019.
  • “Legal Updates that Impact Your Organization,” LeadingAge Iowa Spring Conference, May 2, 2019.
  • “Health Care Fraud and Abuse Overview; Practical Tips to Stay out of the Enforcement Crosshairs,” Physician Leadership Education: Regulatory and Compliance Issues in Healthcare, Mercy Medical Center, April 27, 2019.
  • “Health Insurance Portability and Accountability Act (HIPAA): Breach Notification Rule,” Iowa State Association of Counties, April, 18, 2019.

Insights

Blog Post

The Use of AI for Autonomous Medical Decision-Making: Does Utah’s AI Prescription Renewal Pilot Program Go Too Far?

June 29, 2026

Client Alert

Reputation is Everything: Iowa Supreme Court Clarifies Use of Closed Session Job Interviews

December 11, 2025

The Iowa Supreme Court recently decided Teig v. Hart, No. 24-0029 (Nov. 25, 2025), which provides much-needed clarity to governmental bodies on the limits to Iowa’s open meetings law. The Iowa Supreme Court’s opinion in Teig clearly establishes that local officials, not a reviewing court, should determine whether a closed session is necessary to prevent “needless and irreparable injury” to the reputation of a candidate for employment with the public body. However, this decision has implications for the wide range of actions related to a governmental body evaluating an individual’s professional competency. The Iowa Open Meetings Law (Iowa Code Ch. 21) requires most governing bodies in the state—whether at the state, county, city, school, or local level—to conduct its business in open, public meetings so that Iowans have “access to the deliberations and decisions of their government.”1 But this access is limited by practicality, and the statute: the Open Meetings Law describes twelve circumstances in which a body may enter a “closed” session, where the public is not allowed and records of discussions are sealed from public inspection.2 While many of the exceptions pertain to legal or other sensitive matters (e.g., closed sessions “to discuss strategy with counsel[,]” or “to discuss hearings to suspend or expel a student[]”), the law also provides a body may enter closed session: To evaluate the professional competency of an individual whose appointment, hiring, performance, or discharge is being considered when necessary to prevent needless and irreparable injury to that individual’s reputation and that individual requests a closed session.3  This “Evaluation Exception” has three operative parts. First, the governmental body must be considering the professional competency of a past, current, or future employee, contractor, or appointee Second, the discussion about the employment action must have some risk of causing “needless and irreparable injury to [the] individual’s reputation[.]” Finally, the individual must request a closed session.  The Iowa Supreme Court’s decision in Teig helps answer how to apply these portions of the Evaluation Exception in practice. The Teig case involved the City of Cedar Rapids’s hiring a new city clerk. The interim city clerk applied and requested a closed session. Testimony in the case established that the interim clerk did not know all of the incumbent city council members (who would interview her), nor did she expect any specific issues regarding her performance in her city employment to be discussed. Testimony also established that the city council members had no reason to expect negative or harmful information would be disclosed in the closed session. In actuality, the closed-session job interview was “positive in tone” and the interim city clerk was offered the role as permanent city clerk following the end of the closed session.  After the hiring of the interim clerk, a resident of Linn County requested documents relating to the reason to hold a closed session for a job interview and then sued the city for violations of the Iowa Open Meetings Law. The district court in Linn County rejected the resident’s claims, but the Iowa Court of Appeals reversed that ruling. The resident’s primary complaint, which was echoed by the court of appeals decision, was that the Cedar Rapids City Council never asked or considered whether a closed session was actually necessary to prevent “needless and irreparable injury” to the interim city clerk’s reputation. As the evidence showed, there was no reason to believe such injury to reputation was imminent, and seemingly none occurred: the interim clerk was offered the permanent role. The court of appeals determined the interim clerk’s request, without any information supporting it or inquiry by the city council, was not sufficient to trigger the Evaluation Exception.  The Iowa Supreme Court reversed the Iowa Court of Appeals, reinstating the original district court ruling determining that the city council had not violated the Iowa Open Meetings Law. The supreme court recognized the inherent unpredictability of a job interview, where applicants do not know the questions to be asked and the prospective employer does not know how the applicant will respond or what they may volunteer. Protecting the privacy of those conversations, when the applicant requests a closed session, serves the prophylactic purpose of the statute: to “prevent” harmful reputational disclosures, not to “remedy” or “recompense” for reputational damages. In other words, allowing closed sessions for job interviews is consistent with the other provisions of the Iowa Open Meetings Law: it avoids trying to “un-ring the bell,” by preventing the harm to the applicant in the first place.  The supreme court’s ruling in Teig implicitly directs courts to take a softer, more deferential approach to reviewing claims under the Iowa Open Meetings Law with respect to the Evaluation Exception. But Teig is no license to go too far in the other direction by holding closed meetings if they are not justified or improperly noticed or closed. Evidence that a public body was engaged in bad faith, for example by trying to close an interview to circumvent a fair process, would require different analysis. And, as the supreme court reminded readers, the records from closed sessions must be maintained (even if they are not publicly reviewable).  Finally, the supreme court emphasized that the closure of a public meeting under the Evaluation Exception is a mutual agreement: the individual must request the closed session, and the governmental body must vote (by a two-thirds margin) to enter closed session. This mutual buy-in from the individual and the elected representatives of the public maintains the balance between providing Iowans access to government decision making and protecting the reputation of those seeking to serve the public. However, when it comes to individuals whose professional competence is being evaluated, Teig confirms that it is unnecessary to scrutinize the motives or basis for that individual’s request for a closed session.  1 Teig, Slip. Op. at 3.  2 See generally Iowa Code § 21.5 (2025).  3 Iowa Code § 21.5(1)(i).   

Firm Highlights

Insights

SEC Proposes Expansion of Investment Adviser Performance-Based Compensation Rule

On September 30, 2026, the Securities and Exchange Commission (the “SEC”) proposed amendments to Rule 205-3 under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), which provides an exemption from the general prohibition under Section 205(a)(1) of the Advisers Act on registered investment advisers receiving performance-based compensation (the “Proposal”) so long as performance-based compensation is limited to “qualified clients”.1 Most notably for private fund sponsors, the Proposal would expand the definition of “qualified client” to include any investors that satisfy the “accredited investor” definition under Regulation D. The Proposal may also have implications for private fund managers that rely on exemptions from investment adviser registration under state law because certain state-level investment adviser registration exemptions incorporate or otherwise reference the federal qualified client definition. Expansion of the Qualified Client Definition Under the current Rule 205-3, an investor generally may qualify as a qualified client if, among other alternatives, the investor has at least $1.4 million under management with the adviser or has a net worth exceeding $2.7 million. These thresholds are higher than the financial thresholds applicable to many accredited investors under Regulation D. As a result, an investor may currently qualify as an accredited investor for purposes of investing in a private offering without qualifying as a qualified client for purposes of paying performance-based compensation. The Proposal would expand the qualified client definition to include any natural person or legal entity investor that satisfies the accredited investor definition under Regulation D. The Proposal would also remove the assets under management and net worth thresholds under the current Rule 205-3 qualified client test. For private funds relying on Section 3(c)(1) of the Investment Company Act of 1940, this change could reduce the need to apply a separate qualified client standard to investors that already qualify as accredited investors. Dorsey Observations and Next Steps If adopted as proposed, the expanded qualified client definition could be particularly significant for private fund managers. Most private fund offerings are already limited to accredited investors under Regulation D. However, the Proposal could expand the pool of prospective investors available to emerging private fund managers while reducing the regulatory burden associated with complying with Rule 205-3. The Proposal could also benefit advisers operating below the SEC registration threshold that rely on a state private fund adviser exemption. A number of states have adopted exemptions modeled on the North American Securities Administrators Association (“NASAA”) private fund adviser exemption, which may condition relief for advisers to certain funds relying on Section 3(c)(1) on each beneficial owner satisfying the federal qualified client definition. However, state requirements vary, and any effect of the Proposal would depend on the text of the applicable state exemption and how it incorporates Rule 205-3. Many emerging private fund managers may have a larger network of accredited investor relationships than qualified client relationships during the early stages of their investment advisory business. Currently, under Rule 205-3, private fund managers may receive performance-based compensation from investors who do not satisfy the qualified client definition if those investors were admitted to their private funds prior to registration with the SEC. Following registration with the SEC, however, managers may continue to permit investors that are not qualified clients to invest in future private funds but may not receive performance-based compensation from those investors with respect to such investments. In addition, because the net worth and assets under management thresholds for qualified client status are adjusted for inflation every five years, the pool of qualified client investors may diminish over time as previously eligible investors no longer satisfy the applicable thresholds. The Proposal could provide the dual benefit of greater flexibility for private fund managers to establish and maintain relationships with accredited investors as their businesses scale and they become registered with the SEC, and greater flexibility for certain accredited investors to participate in investment strategies that historically have been restricted to much larger institutional investors. Unless and until the Proposal is adopted, investment advisers should continue to comply with the existing qualified client requirements. If the Proposal is adopted, private fund sponsors should consider whether corresponding changes are appropriate for their subscription documents, investor questionnaires, and other offering materials. Advisers that are state-registered or rely on a state-level exemption should also consult the laws and regulations of each relevant jurisdiction before changing investor eligibility standards or performance-based compensation practices, because adoption of the federal amendments may not automatically modify state requirements. Comments on the Proposal will be due 60 days after publication in the Federal Register. 1 Investment Adviser Performance-Based Compensation Modernization, Investment Advisers Act Release No. IA-7022 (Sept. 30, 2026), available at https://www.sec.gov/rules-regulations/2026/09/s7-2026-28#33-11443proposed.

Insights

EPA Limits Title V Re-Litigation of NSR Permits

Overview On September 25, 2026, the U.S. Environmental Protection Agency (“EPA”) published a final rule that significantly limits the ability of third parties to use the Clean Air Act (“CAA”) Title V permitting process to revisit New Source Review (“NSR”) permitting decisions years after those decisions were made. The rule establishes that NSR permitting determinations generally must be challenged during the original permitting proceeding, thereby providing regulated sources with greater permitting certainty and finality for major capital projects. Published in the Federal Register titled Clarifying the Scope of “Applicable Requirements” Under State Operating Permit Programs and the Federal Operating Permit Program (Docket ID No. EPA-HQ-OAR-2023-0401), the rule amends 40 C.F.R. Parts 70 and 71 to codify EPA’s interpretation regarding when requirements established under other CAA programs may be reviewed, modified, or implemented through the Title V operating permit program. The rule becomes effective 30 days after publication. The rule addresses two principal issues: (1) the relationship between NSR preconstruction permitting and Title V operating permits, and (2) the treatment of the General Duty Clause under CAA section 112(r)(1). Most significantly, the rule provides greater certainty for sources navigating the NSR permitting process. EPA’s amendments are intended to ensure that NSR permitting decisions made through an approved public process are generally not revisited later through Title V permit proceedings. The rule responds to a circuit split between the U.S. Courts of Appeals for the Fifth and Tenth Circuits. In Environmental Integrity Project v. EPA, 969 F.3d 529 (5th Cir. 2020), the Fifth Circuit upheld EPA’s interpretation, concluding that it was consistent with the text, structure, and purpose of Title V. In contrast, the Tenth Circuit reached the opposite conclusion in Sierra Club v. EPA, 964 F.3d 882 (10th Cir. 2020), finding that the then-existing regulatory definition of “applicable requirement” did not support EPA’s position. By amending the regulatory language on which the Tenth Circuit relied and codifying the interpretation approved by the Fifth Circuit, EPA has established a nationwide framework governing the interaction between NSR and Title V. NSR and Title V: EPA Establishes a Uniform Nationwide Framework At the core of the rule is EPA’s effort to define the respective roles of NSR and Title V. The rule codifies the approach EPA has applied since 2017: once a source obtains an NSR permit under an EPA-approved permitting program, and that permit was issued following public notice with an opportunity for comment and judicial review, the permit establishes the NSR-related “applicable requirements” of the State Implementation Plan (“SIP”) or Federal Implementation Plan (“FIP”) for Title V purposes. Under this framework, Title V is not a vehicle for re-examining underlying NSR permitting decisions. EPA does not intend to use the Title V process to revisit applicability determinations, emissions calculations, control technology determinations, permit conditions, or other issues resolved through the NSR permitting process. This principle applies regardless of the stage of the Title V proceeding; whether the NSR permit was issued pursuant to a SIP or FIP; the type of NSR issue involved; or whether the NSR permit is incorporated into Title V sequentially or concurrently. Limited Exceptions EPA recognizes several circumstances in which NSR issues may still be reviewed through the Title V program: No NSR permit was issued at all; The permit was issued without public notice and an opportunity for comment and judicial review; or The issue involves substantive overlap between Title V and NSR requirements, such as the adequacy of monitoring provisions. As a result, the rule does not insulate unpermitted projects or foreclose review of matters that independently arise under Title V. Key Regulatory Amendments The rule revises the definition of “applicable requirement” in 40 C.F.R. §§ 70.2 and 71.2. Paragraph (1): Where an NSR permit is issued with public notice and an opportunity for comment and judicial review, the permit establishes and defines the applicable SIP or FIP requirements for Title V purposes. Paragraph (2): All NSR permit terms, including terms contained in minor NSR permits, constitute applicable requirements that must be incorporated into Title V permits. Paragraph (4): CAA section 112(r)(1) (the General Duty Clause) is expressly excluded from the definition of “applicable requirement,” while section 112(r)(7) Risk Management Program requirements remain included. EPA also amended 40 C.F.R. §§ 70.8 and 70.12 to clarify that alleged defects in requirements established outside the Title V process generally do not provide a basis for EPA objection to a Title V permit or for a Title V citizen petition. General Duty Clause Exclusion The rule also codifies EPA’s longstanding position that the General Duty Clause in CAA section 112(r)(1) is not an “applicable requirement” for Title V purposes. EPA points to several considerations supporting that conclusion, including the distinction between the General Duty Clause and Title V permit terms, the provision’s origins in the Occupational Safety and Health Act’s general duty clause, and the different enforcement structures applicable to the General Duty Clause and Title V permit requirements. Importantly, excluding section 112(r)(1) from the definition of “applicable requirement” does not eliminate EPA’s authority to enforce the General Duty Clause independently of the Title V program. The final rule instead clarifies that the General Duty Clause need not—and should not—be incorporated into Title V permits as an applicable requirement. Practical Implications for Regulated Sources Greater Finality for NSR Permits  For projects requiring PSD, nonattainment NSR, or minor NSR permits, the permitting process becomes the primary forum for resolving disputes regarding applicability determinations, emissions calculations, control technology requirements, offsets, and permit conditions. Once an NSR permit is issued through a qualifying public process, regulated sources should face substantially reduced risk that those same issues will be challenged years later through Title V permit proceedings. Reduced Risk of Collateral Permit Challenges Stakeholders have sometimes sought to use Title V permit issuance, renewal, revision, or citizen-petition proceedings to challenge underlying NSR determinations. The final rule makes clear that Title V is not the appropriate vehicle for challenging whether an applicable requirement was correctly established in the first instance. This should reduce the risk of permit delays and uncertainty associated with collateral challenges to previously issued NSR permits. The rule does not, however, eliminate all Title V challenges relating to an NSR permit. Challenges concerning the Title V permit itself—including whether it appropriately incorporates applicable requirements or contains adequate compliance provisions—remain possible. Increased Importance of the Initial NSR Proceeding Because Title V generally will not provide a second opportunity to challenge the substantive validity of an NSR determination, the administrative record developed during the NSR process becomes increasingly important. Permit applicants should ensure that applicability analyses, emissions calculations, control technology evaluations, modeling demonstrations, and supporting technical documentation are thoroughly developed during the original permitting proceeding. For significant projects, applicants may therefore have an additional incentive to identify and resolve potential permitting issues before the NSR permit is issued rather than assuming that unresolved issues can be addressed during a subsequent Title V proceeding. Potential Incentive for Broader Public Participation EPA also notes that permitting authorities may choose to provide public notice and an opportunity for comment for a broader range of NSR permits because permits issued through a qualifying public process receive the benefit of the finality framework established by the rule. Some permitting authorities may conclude that greater public participation at the NSR stage is preferable to uncertainty during subsequent Title V proceedings. Conclusion The final rule is principally a permitting-certainty measure. For sources that obtain NSR permits through a public process, EPA has substantially limited the ability of third parties to revisit underlying NSR determinations through the Title V program. As a result, regulated entities should benefit from greater finality regarding key permitting decisions, reduced risk of collateral permit challenges, and increased certainty when planning and implementing capital projects.

Insights

The Supreme Court Update - October 8, 2026

On September 29, 2026, the Supreme Court granted certiorari in one case: Department of Homeland Security v. D.V.D., No. 26-426: This case concerns the Trump Administration’s “third-country removal” procedures, where immigrants are deported to countries not listed in the removal orders. In granting certiorari, the Court granted the Government’s application to stay a lower court decision halting the practice, which will allow third-country removals to continue pending resolution of the case. The issues presented are: (1) Whether the district court had jurisdiction over respondents’ claims; (2) whether the district court had authority to enter class-wide declaratory relief and APA vacatur under 8 U.S.C. § 1252(f)(1); (3) whether the Government’s guidance on third-country removals is unlawful under 8 U.S.C. § 1231(b), the due process clause, or FARRA/CAT and its implementing regulations; and (4) such other questions that the Government determines are appropriate for the proper disposition of the case. On October 1, 2026, the Court granted certiorari in three additional cases: Rhoney v. Barbosa da Cunha, No. 26-104: Immigration officials detained Ricardo Aparecido Barbosa da Cunha—a Brazilian citizen who had lived in the United States for approximately twenty years after entering without inspection—and denied him a bond hearing under 8 U.S.C. § 1225(b)(2)(A). The Second Circuit held that his detention was instead governed by § 1226(a), which permits release on bond, because § 1225(b)(2)(A)’s mandatory-detention requirement applies only to noncitizens apprehended while entering the country or shortly thereafter. The question presented is: Whether 8 U.S.C. § 1225(b)(2)(A) mandates the detention pending removal proceedings of aliens who, like Barbosa da Cunha, are present in the United States without having been admitted. Missionaries of St. John the Baptist, Inc. v. Frederic, No. 25-113: A Catholic religious organization sought to build a shrine to the Virgin Mary on land the organization owned adjacent to its church in Park Hills, Kentucky. Local zoning restrictions prohibited the proposed construction. The question presented is: Whether a land-use regulation that prohibits a religious institution from building a religious structure on its own property constitutes a “substantial burden” on religious exercise under the Substantial Burden Provision of the Religious Land Use and Institutionalized Persons Act, 42 U.S.C. § 2000cc(a). Marschner v. Marschner, No. 25-1349: Under the Uniformed Services Former Spouses’ Protection Act (“USFSPA”), a veteran’s longevity-based retirement pay can be divided in a divorce, but retirement pay based on disability and retirement pay that was waived to receive disability pay are indivisible. The question presented is: Does the USFSPA require state courts to refuse enforcement of indemnification provisions in a divorce settlement agreement?

Insights

Energy Law: Month in Review - September 2026

Welcome to Dorsey’s Energy Law: Month in Review. We provide this update to our clients to identify significant developments in the previous month. Please reach out to any of the authors, listed above, to discuss these issues. Regulatory Developments Massachusetts Ratchets Up State and Local Regulation of AI Data Centers In early September, Governor Maura Healey of Massachusetts signed an executive order requiring that artificial intelligence data centers secure the approval of local communities as a precondition to proceeding with a given project. According to the terms of the order, data center developers will need to secure a “community benefits agreement” as a precondition to receiving permits from numerous state agencies, including the Department of Environmental Protection, the Energy Facilities Siting Board, and the Massachusetts Environmental Policy Act Office. Beyond requiring community benefits agreements, the order also mandates that developers mitigate utility costs to consumers, prohibits the use of nondisclosure agreements, and requires various state agencies to develop measures to limit data center impacts on the environment. North Carolina Regulators Decline Approval of Duke Energy Gas Turbine On September 18, 2026, North Carolina Utilities Commission (NCUC) denied Duke Energy’s application for a certificate of public convenience and necessity required to construct a gas-fueled combustion turbine at its Smith Energy Complex in North Carolina. The NCUC objected strongly to the $584 million price tag and noted that Duke appeared to be constructing the facility “based on anticipated data center customer additions.” The NCUC rejected that anticipated growth as “insufficiently reliable for the Commission to act at this point.” In rejecting Duke’s application, the NCUC also noted that Duke had signed the White House Ratepayer Protection Pledge, in which it represented that it would not shift data center costs to consumers. The NCUC observed that the record did not demonstrate how Duke “intends to adhere to its commitments under the Ratepayer Protection Pledge with regard to the Proposed Facility.” Notably, commission staff had actually supported the construction of the turbine, citing concerns about Duke’s reserve margins. The NCUC noted that it “understands the Public Staff’s expressed concerns,” but those concerns were outweighed by the NCUC’s reservations, including questions of demand. Department of Energy Approves Funds for Grid Improvement The U.S. Department of Energy (DOE) recently announced that it would fund 31 grid-improvement projects in 26 states. The funding initiative is part of the DOE’s “SPARK” initiative. The funding will include $1.9 billion in federal funding from DOE and $3.35 billion in recipient cost-sharing funding. The funds will go to projects designed to improve grid reliability and lower electricity costs. Recipients plan to reconductor over 1,500 miles of transmission lines and will deploy grid-enhancing technologies across approximately 21,000 miles. DOE stated that this initiative will make available over 23 additional gigawatts of electricity. Texas Moderates Rules Governing Data Center Interconnection The Texas Public Utility Commission adopted new regulations governing large-load interconnections. The rules impose a flat study fee of $100,000 for all proposed interconnections, which departs from the initial proposal to impose study fees using a tiered system based on project size. Additionally, the final rule eliminates the PUC’s previous proposal to impose a non-refundable interconnection fee of $50,000 per MW of contracted peak demand. The final rule also moderates the initially proposed regulations governing Electric Reliability Council of Texas (ERCOT) notifications for large-load customers’ non-utilized capacity. The proposed rules would have required notifying ERCOT within 30 days of missing a scheduled energization milestone by six months. The final rules, however, do not require informing ERCOT unless a scheduled energization milestone is missed by 24 months. FERC Denies TransAlta 202(c) Cost-Recovery Plan The Federal Energy Regulatory Commission (FERC) recently rejected TransAlta’s plan to recover $19.9 million in expenses stemming from a DOE order in which DOE prohibited TransAlta from retiring its coal-powered Centralia power plant. TransAlta had previously intended to retire the facility at the end of 2025. TransAlta’s cost recovery plan proposed spending an additional $23 million on repairs to continue operating the unit. FERC’s main objection had to do with geographic scope. TransAlta’s recovery plan called for recovering costs from California Independent System Operator (CAISO) and the Southwest Power Pool (SPP), but the DOE’s order requiring operation of the plant was designed to ensure reliability in the Northwest assessment area (Montana, Oregon, Washington, and parts of northern California and northern Idaho). Accordingly, FERC was unwilling to allow cost recovery from CAISO and SPP when the order that precipitated the additional costs only related to the Northwest assessment area. FERC informed TransAlta that it would only approve cost recovery from load-serving entities in the Northwest assessment area. FERC’s decision comes amid a rush of DOE emergency orders requiring the continued operation of coal-fired generating units. Litigation Appeals Court Upholds Washington Hydropower Plant With Caveats In a September 21, 2026, opinion, the Washington Court of Appeals largely upheld a Clean Water Act water quality certification by the Washington Department of Ecology for the Goldendale Energy Storage Project, a proposed pumped-water storage hydropower system adjacent to, but off-stream from, the Columbia River. A nonprofit (Columbia Riverkeeper) and the Confederated Tribes and Bands of the Yakama Nation appealed the certification, contending that it failed to impose necessary conditions and monitoring requirements to protect the water quality of the Columbia River. Most saliently, the plaintiffs argued that the project had the potential to leak 100 acre-feet of water per year into tributaries of the Columbia River. The Court of Appeals broadly rejected plaintiffs’ challenge to the state’s conclusion that “the project was designed not to leak.” That said, the Court of Appeals did reverse on one narrow issue. Specifically, the court determined that the state’s conclusion that “leakage from the project’s tunnels would be monitored and reported” was not supported by the evidence because the certification “does not explicitly require monitoring and reporting to determine whether there is any leakage.” Accordingly, the court remanded the matter to the state to impose monitoring and reporting requirements but otherwise affirmed the certification. Legislative Developments California Legislates Restrictions on Data Center Energy Use and Grid Costs On September 21, 2026, California Governor Gavin Newsom signed seven bills broadly regulating data centers in the state. SB 1168 directed the California Public Utilities Commission to assess the energy used by data centers. It also requires the PUC to pass costs of transmission and distribution upgrades and load increases on to data centers, rather than customers. SB 886 and SB 887 compel data centers to pay for infrastructure upgrade and generation costs, and wildfire mitigation costs, in addition to imposing environmental review. The statutes additionally increase local oversight of data centers. AB 1577 imposes a monthly reporting requirement that requires data centers to supply energy consumption and efficiency data to the California Energy Commission. AB 2383 contains incentives for data centers to use onsite clean energy generation. Finally, AB 2469 and AB 2619 require data center developments to assess water supply and develop a water scarcity plan. The statutes also mandate statewide water reporting as a precondition to obtaining and renewing business licenses.