Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Climate

What Happens After Chevron?

Georgetown’s Lisa Heinzerling on the Supreme Court’s climate shell game.

•
The Supreme Court.
Heatmap Illustration/Getty Images

It’s a sad day for the regulatory state. On Friday, the Supreme Court struck down a 40-year-old precedent that deferred to agencies’ interpretations of their own mandates where the statutory guidance was incomplete or ambiguous, otherwise known as Chevron deference, after the losing side in the original case. Not only has it been cited in more than 19,000 federal opinions, it’s the one congressional aides — the ones actually writing the laws — are most familiar with, as Lisa Heinzerling, a professor of environmental law at Georgetown Law, told me.

“So there’s a way in which Congress has been relying on Chevron for decades, right?” she said. “If Congress banked on Chevron, banked on the idea that if they didn’t make things clear the agency would take care of it, then that reliance is not being honored.”

This is not the first time the court has come for regulators. Two years ago, in West Virginia v. Environmental Protection Agency, the court held that the authority to resolve questions of interpretation involving high-stakes political and economic questions, a.k.a. “major questions,” rests with Congress, not the agencies, raising the threat of legal nightmares should regulators attempt to take any kind of big swings. This explicitly concerns only “extraordinary cases,” and yet regulators already appear to be reining in their own ambition to gird against potential challenges.

Friday’s decision comes the day after the court struck down a provision of the Dodd-Frank Act giving certain enforcement powers to the Securities and Exchange Commission and granted a stay on enforcement of the Environmental Protection Agency’s “good neighbor” rule, aimed at preventing harmful pollution from crossing state lines.

The two cases decided this week — Loper Bright Enterprises et al. v. Raimondo, Secretary of Commerce, et al. and Relentless, Inc. v. Department of Commerce — turned on whether private commercial fishing companies could be compelled to pay for federal monitors to ride along and ensure they were complying with applicable fishing rules. Or at least they did initially. “The court decided to decide only the question whether to overrule Chevron, the case that establishes deference for agencies legal interpretations,” Heinzerling explained the day before the ruling came down. Our conversation has been edited for length and clarity.

Without Chevron, are we going to get completely bogged down in revising statutes? Are our courts going to be clogged up with nuisance suits from people who simply don’t want to have to follow the rules?

I think there will be a lot of efforts to undo other precedent that relied on Chevron — and especially paired with the Corner Post case, which has to do with the timing of challenges to agency action. You know, realistically, if that case comes down, accepting a longer period of time in which to sue people could go nuts, challenging all sorts of agency interpretations from the past. So that’s disruptive.

The Supreme Court is constantly saying, well, go and get a new statute. Well, okay, we saw what happens when Congress passes a new statute: The court holds it unconstitutional. The Dodd-Frank Act. Look what happened to the Affordable Care Act. These major pieces of legislation, major, major political stakes, and the court has not respected those. So I feel like we’re kind of in a shell game, something that’s not quite honest. That in all of these cases, actually, Congress did pass a law, but the court either rules it unconstitutional, says it’s not clear enough. And so I don’t think they’re respecting Congress’s handiwork as it exists now.

You mentioned Corner Post, could you talk about that case?

It came to the court kind of quietly. It’s got rich backers. It’s just a little truckstop, just like the commercial fisherman, that wants to challenge a rule on credit cards. They were incorporated after the rule went into effect, and they want to say, we weren’t injured when it first passed, so we should get the benefit of a longer period of time in which to sue. And amazingly, the justices seemed willing to accept that. That just adds to the stakes of overruling Chevron.

The Chevron deference is a big part of how agencies do their job. But after West Virginia, does it still matter? I’m not a lawyer, but I’m going to pretend I am one when I ask: Does the major questions doctrine effectively invalidate Chevron anyway?

No. They said that the major questions idea was for extraordinary cases, to see how it turns out over the years, but it’s not every case. Where Chevron applied, theoretically, in every case. At least it was a mix.

What recent regulatory decisions would be most vulnerable in a post-Chevron world?

It is complicated to know because it has to be a question about a statute, a question about a statute that a court finds ambiguous, right? That’s where Chevron would have helped. And I think it depends on what court you’re in. If you’re in the Fifth Circuit, there’s a good chance — I mean, they’ve just stopped using Chevron, period.

Is there a world in which courts develop more subject matter expertise as a result of being forced to decide on questions of statutory interpretation?

Over the years people have offered the possibility of science courts or environmental courts — specialized courts where adjudicators have expertise. That’s never really taken off — never really at all taken off. Certainly the D.C. Circuit judges handle administrative cases all the time. Cases go exclusively to them, and I think the judges do develop some expertise. But it doesn’t turn them into ecologists or engineers. And the thing is that the structure of a judicial chambers is both tiny and insular: you have one judge; on the Supreme Court four clerks, but elsewhere two to three. It’s just not that much. Whereas EPA, they have teams of people on these rules from all over the agency, and then the rule gets reviewed by others.

We’re obviously focused on climate-related regulations, but is there an area of policy that you think will be most vulnerable immediately without Chevron?

The hallmarks of where Chevron has been really important: complicated statutes; technical and/or scientific subject matter; places where the language is either vague or just broad enough, it’s not clear how to fill it in. That’s environmental law, but there’s a lot of other law that’s also … I mean, it’s just OSHA, FDA, the FTC. Looking for those signature traits, that’s going to be a place where it pinches particularly hard. I think the agencies now are sort of bracing for this, but they still have a lot of rules in the works, and this is going to come down in the middle of that in election year.

Chevron started with Reagan wanting to change the way the EPA interpreted its mandate. Would removing it potentially make things more difficult for an incoming Trump administration?

I mean, it should. Chevron was supposed to work that way. But certainly the major questions doctrine, at least as it’s been practiced, so far cuts only against ambitious regulation. It doesn’t cut in favor of it.

The thing that worries me is the anti-regulatory skew that’s in some of the court’s other recent rulings. So for example, in West Virginia itself, the Supreme Court struck down Obama’s Clean Power Plan but upheld — without even explaining why — Trump’s plan. They were the same question under the same statute with the same evidence, the same costs and benefits. Everything was the same except for the direction. If one was a major question, the other should have been a major question. And so if you want to put it in the terms of these two possible administrations, they will go after Biden rules more than they’ll go after Trump rules, at least on the major questions idea.

Yellow

You’re out of free articles.

Subscribe to access Heatmap's exclusive climate and energy polling, award-winning journalism, and subscriber-only events, now just $99 $79.20.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
AM Briefing

Lula!

On Serbia’s election, helium, and tidal power

Luiz Inacio Lula Da Silva.
Heatmap Illustration/Getty Images

Current conditions: Typhoon Champi swept past Taiwan, leaving one dead and 500 injured as the weakened storm slams into South Korea and Japan • Hurricane Vance is churning off Mexico, bombarding the coast with waves up to 13 feet tall • Tropical Storm In-Fa could strengthen into a powerful storm as it heads toward the Northern Mariana Islands, a U.S. territory.


THE TOP FIVE

1. Lula wins an unprecedented fourth term as Brazil’s president

Brazilian President Luiz Inácio Lula da Silva has secured an unprecedented fourth term, winning 51% of votes in Sunday’s run-off election with far-right challenger Flávio Bolsonaro. The photogenic son of the imprisoned former president Lula defeated in 2022, Bolsonaro, 45, had promised to cut taxes, slash government spending on things like environmental enforcement, and bring South America’s largest economy in closer alignment with President Donald Trump. His message, which resonated in the Amazon’s frontier boomtowns, secured Bolsonaro more votes in the first round of the election on October 4. Lula’s win makes history twice over. He’s the first since democracy returned to Brazil in 1988 to pull ahead and defeat the first-round winner in the runoff. He’s also the first president elected to four terms, with his first two served between 2003 and 2011. On energy, the differences between the candidates are primarily over the role of government in the market, with the conservative Bolsonaro advocating more privatization and Lula seeking to strengthen the role of state-backed enterprises in generating income for the government and carrying out industrial policy.

Keep reading...Show less
Green
Q&A

GoodPower Is Sussing Out What People Actually Want from Data Centers

Talking with Leah Qusba, the CEO of GoodPower.

Leah Qusba.
Heatmap Illustration

This week’s conversation is with Leah Qusba, CEO of GoodPower, which recently released a survey experiment you need to read. Conducted with Data for Progress, the project, published Monday, takes a unique approach to asking people why they opposed data centers for artificial intelligence and whether constructing renewable energy instead of gas power moves the needle at all in their support for AI infrastructure near them. Instead of just asking polling questions, they posed various hypothetical project designs to people — and the results were eye-popping. Turning to solar instead of gas? Might not be a panacea for gaining approval at the local level. Protecting electricity rates from going sky-high? Now that’s a way to get buy-in.

The following conversation was lightly edited for clarity.

Keep reading...Show less
Yellow
Hotspots

A First-Of-Its-Kind State of Emergency — Over a Permitting Pause

And more of the week’s top fights around development.

The United States.
Heatmap Illustration/Getty Images

1. Umatilla County, Oregon – A small town in Oregon this week declared a state of emergency over fears that a statewide pause on data center permits will harm its economy.

  • Five of the six people on the Umatilla city council voted to adopt a resolution formally calling for a state of emergency “due to the threat of widespread financial loss.” Umatilla City Manager Dave Stockdale told the council before the vote that the data center pause enacted by Governor Tina Kotek puts millions in tax revenue at risk. Other city staffers told the council that current budget reserves are healthy, but this could complicate a bond for a new police station and delay executing their city’s master plan.
  • Umatilla is home to more than 20 data center projects currently operating or under development, equal to roughly one-fifth of the state’s data center sector. Oregon law expressly grants cities and towns permission to declare a state of emergency over “financial loss.” And the Umatilla resolution is a clear legal threat; its text calls for “immediate reconsideration” of Governor Kotek’s directive pausing data center permits and “authorizes the city manager to coordinate with affected governments and legal counsel to pursue appropriate administrative and judicial remedies.”
  • To the best of our knowledge, this is the first time a municipal government has threatened legal action or declared a state of emergency over a state-wide permitting pause against data center development. It goes to show that what comes around goes around.

2. Saratoga County, New York – Is Trump’s country music superstar-turned-power-project combatant John Rich preparing to debut a new song about solar farms, or something more?

Keep reading...Show less
Yellow