Friday, June 28, 2024

What to make of the death of Chevron

Presented by Southern Environmental Law Center: Your guide to the political forces shaping the energy transformation
Jun 28, 2024 View in browser
 
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By Arianna Skibell

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Southern Environmental Law Center

The Supreme Court is pictured.

The Supreme Court is pictured. | Mark Schiefelbein/AP

The Supreme Court today made it harder for environmental agencies or any other regulators to defend their actions in court — putting at risk rules designed to tackle far-reaching problems such as climate change.

Environmentalists are particularly concerned that the 6-3 decision to toss the Chevron doctrine — one of the most widely cited precedents in the court’s history — could undercut a flurry of ambitious rules from the Biden administration to slash planet-warming pollution.

The ruling “undermines vital protections for the American people at the behest of powerful polluters,” said Vickie Patton, general counsel for the Environmental Defense Fund, in a statement.

For 40 years, the Chevron doctrine directed courts to defer to federal agencies’ readings of unclear statutes, as long as those readings are reasonable. The idea was that agency staff, including scientists and economists, had more expertise than judges in interpreting abstract concepts such as “in the public interest.” But conservative legal theorists have argued it’s an abdication of judicial responsibility.

And while Chevron has fallen out of favor in recent years with the conservative-dominated Supreme Court, lower courts have still used it to uphold agency rules. Until now.

The court’s decision could imperil President Joe Biden’s recent regulations meant to cut greenhouse gas emissions from vehicles, power plants, and oil and gas operations, all of which are winding their way through the courts. Without those rules, reaching his administration's goal of halving atmospheric pollution by decade’s end is likely impossible.

But some environmental advocates say they are less worried about climate regulations, which they say are on strong legal footing without relying on the Chevron doctrine.

While the fall of Chevron marks a major victory for conservative activists whose mission has long been to shrink the federal government’s power, it could also stymie the next president’s agenda no matter who wins the White House this fall.

“A new administration won’t be able to adopt an alternative interpretation of a statute and expect judicial deference if a prior court has ruled another way,” said Cary Coglianese, a regulatory expert at the University of Pennsylvania Carey Law School.

Life after death: While the court’s decision marks a major blow to agencies’ authority, it may not be permanent. The court did not overturn the doctrine on constitutional grounds. That means Congress could step in and reinstate it, Coglianese said.

“Elections matter, and we might see Chevron rise from the ashes in the future,” he said.

 

Thank goodness it's Friday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net.

 

A message from Southern Environmental Law Center:

The Okefenokee Swamp is one of the South’s greatest natural wonders. But right now, a reckless mining project threatens its environment and the wildlife that depend on it. The Biden administration can take action to permanently protect the Okefenokee for future generations — add your voice now. 

 
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Today in POLITICO Energy’s podcast: Alex Guillén breaks down the Supreme Court's Thursday ruling striking down the Environmental Protection Agency's “good neighbor" rule that aimed to curb air pollution drifting across state lines.

 

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About last night...

Donald Trump and Joe Biden.

President Joe Biden walks off the stage after debating former President Donald Trump in Atlanta on Thursday night. | Gerald Herbert/AP

Bad night all aroundIf there's one thing Americans seem to be in agreement on, it's that last night's presidential debate was ... not good.

Former President Donald Trump spewed a deluge of false information, while Biden struggled to get his points across (raising alarm bells within his party).

“Both of these men should be using performance enhancing drugs,” The Daily Show's Jon Stewart quipped after the debate.

While chock-full of fumbles and falsehoods, the debate featured very little talk of energy and climate, much to many Democrats’ chagrin.

"It was just a huge missed opportunity, and a bad night all around,” Rep. Jared Huffman (D-Calif.) told POLITICO's Josh Siegel.

Biden made a vague reference to signing the Inflation Reduction Act, the largest climate bill every passed in the U.S., and touted rejoining the Paris agreement. Trump bragged his administration had "H20."

Paul Bledsoe, a former Clinton administration climate adviser, said the lack of climate talk seemed almost intentional.

"It looked to me like Biden had other issues he thought were more politically important," said Bledsoe, now a professorial lecturer at American University's Center for Environmental Policy.

"Trump should be incredibly vulnerable on climate, and yet Biden did not make a forceful case for why Trump should not be allowed back in the White House given his climate malfeasance," he said.

 

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Federal Energy Regulatory Commission Chair Willie Phillips testifies during a Senate Energy and Natural Resources Committee hearing on Capitol Hill.

FERC Chair Willie Phillips said the agency is "taking a careful look" at a Supreme Court opinion issued Thursday against SEC's internal handling of enforcement cases. | Francis Chung/POLITICO

SCOTUS lands on Wall Street
Federal energy regulators may face enforcement delays and see more cases wrested from their control in the wake of a Supreme Court ruling Thursday that limits the role of in-house judges, write Niina H. Farah and Mike Soraghan.

The court ruled that a hedge fund manager facing fraud charges from the Securities Exchange Commission was entitled to a jury trial. The case is expected to broadly reshape the role of administrative law judges, who levy fines and resolve disputes at other agencies such as the Federal Energy Regulatory Commission.

EU climate official takes gas job
A powerful former European Union climate official apologized for failing to seek permission from the European Commission before taking a job with a major natural gas network operator, in defiance of ethics rules, write Karl Mathiesen and Sarah Wheaton.

"Due to an error on my part, the position was not correctly notified to the Commission in a timely manner. I very much regret that," Diederik Samsom said in a statement.

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SUBSCRIBE TO GLOBAL PLAYBOOK: Don’t miss out on POLITICO’s Global Playbook, our newsletter taking you inside pivotal discussions at the most influential gatherings in the world. Suzanne Lynch delivers the world's elite and influential moments directly to you. Stay in the global loop. SUBSCRIBE NOW.

 
 
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That's it for today, folks. Thanks for reading, and have a great weekend!

 

A message from Southern Environmental Law Center:

The Okefenokee Swamp is one of the most pristine, ecologically intact places in America. It should stay that way.

Strip mines don’t belong anywhere near this natural treasure. Tell President Biden to step in and protect the Okefenokee.

 
 

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