Supreme Court rulings paring federal regulatory power will impact energy policy

The U.S. Supreme Court made two significant decisions this week that have major implications for government regulations in the environmental and energy sectors. The Court overturned a key precedent from 1984, known as the Chevron doctrine, which had given federal agencies broad authority in regulating industries like energy. This decision now allows parties to challenge agency decisions more easily in court.

Without the Chevron deference, many environmental regulations could be at risk, including rules under the Clean Air Act and programs related to public lands management. This change is seen as a positive development for the oil and gas industry, as it may shift the focus from administrative actions to congressional legislation in efforts to reduce carbon emissions.

Additionally, the Supreme Court blocked the Environmental Protection Agency’s “good neighbor” plan, which aimed to limit emissions from power plants in 11 states. The Biden administration argued that the rule would protect the health of people in downwind states, while opponents raised concerns about costs and electricity grid reliability.

Overall, these decisions are expected to impact the energy sector and could lead to changes in how energy is produced and consumed.