That the Supreme Court overturned the Chevron Deference, a key foundation of modern administrative law for 40 years, in its June 28 ruling in Loper Bright Enterprises v. Raimondo (Loper Bright) was no surprise, although it does not make it any less disruptive. The order follows a steady drumbeat of Supreme Court decisions issued during this term and in recent prior ones curbing the regulatory enforcement capabilities of Executive Branch agencies. But while this is a landmark case and would be expected to lead to a host of new legal challenges, its practical effect might end up being more nuanced. In today’s RBN blog, we revisit the Chevron Deference, why the Court said it had to go, and what it might mean for economic and environmental regulations impacting the energy industry.
Before we get into how the Court made its decision, a couple of observations are in order right at the top, given its importance and potential long-term impact. First, reining in Executive Branch agencies can cut both ways. In the last administration, then President Trump often used executive orders and agency actions to implement his vision of the world, including trying to get the Department of Energy (DOE) to force utilities to run their coal plants regardless of the cost relative to natural gas (see Why Can’t We Be Friends?). That’s the kind of action that could be threatened by this decision. Second, as we’ve written many times regarding the Mountain Valley Pipeline (MVP) saga, federal permitting agencies were consistently receptive to the project, issuing permit after permit, but the U.S. Court of Appeals for the Fourth Circuit repeatedly reversed those decisions (see Rescue Me). In other words, the courts haven’t been very shy about jumping into agency decisions favorable to energy companies. (We’ll explore some of the other implications of the ruling in a bit.)
The Supreme Court (Middle), Flanked by the Federal Energy Regulatory Commission (Left)
and the Environmental Protection Agency.
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