Navigating the New Frontier of Federal-State Energy Regulation: What Energy Companies Need to Know
June 08, 2026 —
Ryan J. Regula - Snell & WilmerIntroduction
The jurisdictional boundary between the Federal Energy Regulatory Commission (FERC) and the states is being actively contested, from challenges to landmark transmission planning rules to disputes over emergency cost-allocation orders, in ways that carry significant legal, financial, and operational implications for energy companies. For utilities, independent power producers, and transmission developers, understanding these dynamics is now a strategic imperative.
The Jurisdictional Divide: A Bright Line That Isn’t
The Federal Power Act divides authority between FERC and the states: FERC exercises jurisdiction over interstate transmission and wholesale electricity sales, while states retain authority over generation facilities, retail rates, and decisions about resource mix. The D.C. Circuit has regularly been called upon to “referee the Federal Power Act’s jurisdictional line separating [FERC’s] jurisdiction over the federal wholesale market and States’ jurisdiction over facilities used in local distribution.”1
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Ryan J. Regula, Snell & WilmerMr. Regula may be contacted at
rregula@swlaw.com
USDOT’s DBE Interim Final Rule: How It Affects Current and Out-to-Bid DOT and Airport Projects
June 15, 2026 —
Zachary F. Jacobson - The Construction SeytIn our April 16, 2026 post, we discussed the U.S. Department of Transportation’s Interim Final Rule (IFR) concerning Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) certification, specifically as it concerns transportation and airport projects in California.
This post addresses a broader question: What does the IFR mean for current and out-to-bid DOT projects operating under pre-existing DBE goals? The answer is that the IFR did more than change who qualifies as a DBE. It also changed how federally funded transportation and airport projects must be handled during the re-evaluation period. This affects active contracts, pending procurements, airport projects, design-build teams, and anyone relying on old assumptions about DBE goals and counting of DBE and ACDBE credit.
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Zachary F. Jacobson, Seyfarth Shaw LLPMr. Jacobson may be contacted at
zjacobson@seyfarth.com
Bona Fide Dispute Defeats Violation of Prompt Payment Act
June 15, 2026 —
David Adelstein - Florida Construction Legal UpdatesMost, if not all, jurisdictions, including the federal government, have what is known as a “Prompt Payment Act.” The objective is to ensure prompt payment. If prompt payment is not made, the Prompt Payment Act provides for interest penalties, as well as potentially other costs such as attorney’s fees.
But the thing is, it’s not as simple as untimely payment to support the recourse and interest penalties the applicable Prompt Payment Act affords. And the teeth associated with the applicable Prompt Payment Act are not as sharp as perhaps the party claiming untimely payment prefers.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Voluntary Dismissal of an Indemnity Claim Does Not Make the Subcontractor a “Prevailing Party,” Washington Court of Appeals Holds
September 21, 2026 —
Margarita Kutsin - Ahlers Cressman & Sleight PLLCIn
King County v. Walsh Construction Company II, LLC, No. 86503-0-I (Wash. Ct. App. Aug. 4, 2025), an unpublished decision from Division I of the Washington Court of Appeals, the Court affirmed the denial of a subcontractor’s request for prevailing-party attorney fees under an indemnity clause after the general contractor voluntarily dismissed its indemnity claims. Because the indemnity claim was no longer live and no determination of fault had occurred, the Court held that the trial court did not err in denying the request. ACS represented Walsh, the general contractor, in securing the denial of the fee request at the trial court that the Court of Appeals affirmed.
A Pass-Through Indemnity Claim That Ended Before Fault Was Decided
The dispute arose out of a public works contract under which King County hired Walsh Construction Company II, LLC (“Walsh”) to construct and install a conveyance pipeline. After the pipeline broke, King County sued Walsh for breach of contract and warranty, expressly identifying both Walsh and its subcontractor, Mears Group Inc., (“Mears”) as responsible. Walsh tendered defense and indemnity to Mears under the subcontract.
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Margarita Kutsin, Ahlers Cressman & Sleight PLLCMs. Kutsin may be contacted at
margarita.kutsin@acslawyers.com
Federal Court Finds that Master Agreement Bestows Additional Insured Coverage
November 09, 2026 —
Craig Rokuson - Traub LiebermanIn the recent case Triborough Scaffolding & Hoisting Servs. v. Sw. Marine & Gen. Ins. Co., 2026 U.S. Dist. LEXIS 226876, Judge P. Kevin Castel, who was also operating as finder of fact, held that a subcontractor master agreement covered a subcontractor’s work at a specific project, such that an obligation to name the prime contractor Triborough as well as the undefined Owner, bestowed additional insured coverage to Triborough and the Owner under policies issued to the subcontractor.
The agreement at issue was dated December 15-16, 2017 and the accident at issue occurred in 2018. The trial evidence includes testimony from both Triborough and the subcontractor that the agreement was intended to apply annually, and the subcontractor could not recall the parties ever signing a project-specific agreement. Further, Triborough assigned work to the subcontractor by telephone call or texts on several projects, and without a project-specific contract. Moreover, no other operative indemnity or insurance agreement between Triborough and the subcontractor, other than a backdated agreement that was not applicable. Finally, the court did not find plausible that the subcontractor would enter into an agreement meant only to cover the final two weeks of 2017, such that the agreement extended into work occurring in 2018.
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com
Idaho Supreme Court Delivers First Authoritative Construction on the Community Infrastructure District Act
November 09, 2026 —
Sara M. Ajeti & Tara Martens Miller - Snell & WilmerOn February 12, 2026, the Idaho Supreme Court issued its first authoritative decision construing the Community Infrastructure District Act (CID Act), Idaho Code §§ 50-3101 to 50-3121, in Doyle v. Harris Ranch Community Infrastructure District No. 1. The opinion resolves several issues of first impression — what qualifies as reimbursable “community infrastructure,” how strictly the 60-day statute of limitations bars challenges to a CID’s formation and bond authority, and whether a CID is legally distinct from its creating municipality. For developers forming or using a CID, the decision provides welcome certainty on the durability of CID bonds, reimbursement structures, and the scope of qualifying community infrastructure.
Background
The CID Act allows a developer to petition Idaho cities and counties to form special-purpose taxing districts that finance community infrastructure ahead of development and allow growth to “pay for itself.” I.C. § 50-3101(1)(a)–(c). “Community infrastructure” is broadly defined to include roads, sidewalks, parks, sewers, stormwater facilities, and other public facilities that have a “substantial nexus” to, and directly or indirectly benefit, the district. I.C. § 50-3102(2). A CID is formed upon petition by two-thirds of residents or all landowners within a proposed district to the governing city or county. Once formed, CIDs are political subdivisions with only the power the Act expressly grants, including the powers to contract, finance infrastructure, levy property taxes, and incur debt through general obligation bonds. I.C. § 50-3105(1). Qualified electors within the district must approve a ceiling bond amount by a two-thirds vote; once approved, the district board may issue additional bond series without a further elector vote, notice, or hearing. I.C. § 50-3108(1)–(3).
Reprinted courtesy of
Sara M. Ajeti, Snell & Wilmer and
Tara Martens Miller, Snell & Wilmer
Ms. Ajeti may be contacted at sajeti@swlaw.com
Ms. Miller may be contacted at tmmiller@swlaw.com
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Fraud Allegations Stymie Additional Insured’s Request for a Defense
May 14, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Federal District Court granted the insurer’s motion to dismiss the insured’s complaint seeking a defense of the underlying case alleging fraud. Renovation Realty, Inc. v. Colony Ins. Co., 2026 U.S. Dist. LEXIS 21409 (S.D. Cal. Jan. 30, 2026).
Mara Fortin sued Renovation Realty and others (“Fortin litigation”) from the fraudulent sale of a residence. The underlying complaint alleged Renovation “deliberately misrepresented of the residence as ‘completely remodeled’ and ‘meticulously maintained’.” The defendants, however, including Renovation, “knew from sources including a pre-renovation termite report documenting fungus and dry rot . . . that the Property harbored pre-existing material defects.”
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Did You Know: Unique Legal Considerations for Animal Care Facilities
August 24, 2026 —
Hannah Skidmore - Construction ExecutiveAnimal care facilities are highly specialized environments that require expertise far beyond traditional commercial or even standard medical construction. Whether designing and building animal shelters, doggy daycares, veterinary clinics or full-service animal hospitals, these facilities operate under conditions that introduce unique challenges related to sanitation, durability, animal behavior and operational workflows.
Because of these complexities, projects that fail to account for animal care requirements adequately often encounter costly issues—many of which result in litigation. Below are real-world examples drawn from expert witness work, followed by proactive best practices construction professionals should apply to future animal care projects.
Reprinted courtesy of
Hannah Skidmore, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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