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By Niina H. Farah and Lesley Clark

FERC and the Supreme Court

Francis Chung/POLITICO

Key legal fights in 2024 could shake up how the government responds to a changing climate for years to come.

It all starts next week, when the Supreme Court will hear arguments in Loper Bright Enterprises v. Raimondo.

The justices will be deciding whether to scrap or limit a long-standing legal principle — known as the Chevron doctrine — that instructs courts to generally side with how agencies interpret ambiguous federal laws.

The court is widely expected to restrict that deference to agencies, potentially tying the hands of the Biden administration to take aggressive climate action.

If it nixes the Chevron doctrine altogether, that would mean "an end to a thumb on the scale for agency reasonableness," said Joel Eisen, a law professor at the University of Richmond.

"It should be one of the most closely watched energy-related cases of 2024," he said.

But lower courts could also reshape environmental regulations this year. Expect battles over how aggressively the government can tackle everything from planet-warming emissions to water pollution.

Wetlands and gas projects

Conservative and industry groups are fighting to further limit what counts as federal waters, after the Supreme Court scaled back the definition of wetlands in last year’s Sackett v. EPA ruling. The outcome of those lawsuits — filed in numerous federal courts — could reduce protections for wetlands, which play an important role in absorbing carbon dioxide from the atmosphere.

The federal approval process for new gas projects also faces judicial scrutiny. Conservation groups are pushing the Federal Energy Regulatory Commission to seriously consider states’ climate targets — rather than issue approvals on the basis that shippers have agreed to purchase gas from projects.

That is playing out in a lawsuit targeting a FERC approval for the expansion of a New Jersey gas project. Another lawsuit is likely sometime this year over a $75 million gas pipeline expansion to serve parts of the Pacific Northwest.

Courts may also clarify whether FERC must consider emissions estimates when deciding whether to approve projects such as liquefied natural gas export terminals.

Climate lawsuits

One high-profile case could unlock a new legal claim for Republicans who have attacked so-called environmental, social and governance investing as a threat to the fossil fuel industry.

Former Trump-era Labor Secretary Eugene Scalia is spearheading a lawsuit before the New York Supreme Court to block investment firms from accounting for climate risks.

But the oil industry also faces an avalanche of climate litigation. Lawsuits by dozens of local governments that claim the oil majors deceived the public about the dangers of fossil fuels are poised to take off in state courts following the Supreme Court's decision today to deny industry bids to block the claims.

Now “we can begin to hold these companies accountable for their wrongful conduct,” said Minnesota Attorney General Keith Ellison (D), one of dozens of elected officials suing the industry.

And following a massive win for youth climate activists in Montana, a group of young people in Hawaii is hoping for a repeat when their lawsuit against the state’s transportation agency goes to trial in June.

 

It's Monday — thank you for tuning in to POLITICO's Power Switch. We're your hosts, Niina H. Farah and Lesley Clark. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to nfarah@eenews.net.

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Today in POLITICO Energy’s podcast: Josh Siegel breaks down how Utah Republican Rep. John Curtis is making climate change part of his campaign to replace Sen. Mitt Romney (R).

 

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Power Centers

A Mountain View wildland firefighter walks through smoke and haze on Dec. 30, 2021, after a fast moving wildfire swept through Louisville, Colo., and the surrounding region.

A Mountain View wildland firefighter walks through smoke and haze on Dec. 30, 2021, after a fast-moving wildfire swept through Louisville, Colorado, and the surrounding region. | Marc Piscotty/AFP via Getty Images

Fighting fire with data
Colorado has updated its map of wildfire risks in an effort to better use data to mitigate blazes, Avery Ellfeldt writes.

Forestry officials in several states plagued by wildfires are increasingly focusing on high-quality data — and the funds to gather it — to determine where to focus their mitigation efforts.

“There is a slowly growing push amongst different states to do this. Why? Because the climate is changing, the fire environment is changing,” said Joe Scott, founder of Pyrologix, a Montana-based wildfire risk assessment and modeling firm.

Better times ahead for offshore wind?
Optimism for the offshore wind industry is on the rise again after a battering year of canceled projects and supply chain struggles, Heather Richards writes.

But time is of the essence for industry and President Joe Biden, who made offshore wind a key part of his climate agenda. The Interior Department has 10 months to make good on its pledges, including approving 16 wind arrays by 2025.

Still, “I think the headlines are different for 2024,” said Theodore Paradise, an energy attorney at K&L Gates. “We’ve got better contracts, we’ve got better timelines, we’ve got a better sense of the supply chain.”

Can climate win in Utah?
Utah's Curtis is burnishing his climate credentials amid a crowded Republican primary to replace retiring Romney, Josh Siegel and Kelsey Tamborrino write.

“The success I’ve had in my current district, which is coal, oil and gas, shows there is a way for Republicans to talk about this in a way that doesn’t alienate people who come from that industry,” Curtis, chair of the Conservative Climate Caucus, said in an interview. His messaging focuses on promoting carbon capture and nuclear plants, while attacking Democratic legislation like the Inflation Reduction Act as too costly.

But some conservatives see the message as doomed to fail.

“I just don’t see him surviving a contest in which he is going to talk about his goal — which is pulling the Republicans to the left on climate,” said Mike McKenna, who was a White House energy adviser for former President Donald Trump.

In Other News

Farewell, electricity bills: A residential development near Tampa, Florida, is the first in the world to get a LEED Zero Energy certification, which means the entire community produces more electricity than it consumes.

Slow investigation: European investigators probing an attack on the Nord Stream natural gas pipelines say Polish officials have not been cooperating.

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Diablo Canyon's nuclear reactors in Avila Beach, California.

Part of the Diablo Canyon nuclear power plant is seen in Avila Beach, California, in 2008. | Michael A. Mariant/AP

A $6 billion Department of Energy program designed to aid struggling or recently closed nuclear power plants got zero qualified takers last year.

Global temperatures are poised for another record-breaking year, putting even more pressure on climate targets.

Construction will start this summer on Wyoming's first three wells to store carbon dioxide as part of a proposed direct air capture hub.

That's it for today, folks! Thanks for reading.

 

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