Why It Matters
The Supreme Court is set to hear oral arguments on October 5 in the case of Suncor Energy (U.S.A.) Inc. v. County Commissioners of Boulder County. This case could play a pivotal role in determining whether state and local governments can utilize state tort law to obtain financial compensation from energy companies for climate-related damages. A recent report from the Congressional Research Service (CRS), published on September 30, highlights that numerous state and local governments have initiated tort suits against energy companies over the last ten years. The upcoming ruling may influence the viability of these lawsuits or their preemption under federal law.
Interestingly, the Department of Justice has filed an amicus brief in support of the energy companies. This unsolicited brief was a notable pivot from the previous administration, which had opposed similar climate tort petitions. Nearly 200 members of Congress and over 40 states have also submitted amicus briefs, backing either Boulder County or the energy firms involved.
The Big Picture
These ongoing lawsuits largely focus on claims of deceptive marketing practices rather than demanding emissions reductions. However, before deliberating the merits of the case, the Supreme Court must first address two preliminary issues: Boulder County asserts that Suncor and Exxon Mobil lack standing due to the absence of a concrete injury and also argues that the Court lacks statutory jurisdiction under 28 U.S.C. § 1257(a) because the Colorado Supreme Court’s ruling was not final. A ruling in favor of either argument could terminate the case without addressing the overriding preemption question.
Additionally, the EPA has proposed a rule that interprets the Clean Air Act as not permitting the regulation of greenhouse gas emissions from stationary sources, a development noted in the CRS report. This could weaken the preemption arguments being made by Suncor, particularly in light of potential congressional restrictions on the EPA’s authority regarding greenhouse gases.
Two bills introduced in the 119th Congress, the Stop Climate Shakedowns Act (H.R. 8330) and its Senate counterpart (S. 4340), aim to prevent lawsuits seeking redress for damages tied to climate change against entities in the energy sector.
The Bottom Line
The CRS report emphasizes that congressional intent is key in any preemption analysis, underscoring that Congress has the authority to explicitly permit or preempt these types of lawsuits. The potential limits placed on the EPA’s greenhouse gas regulation authority could influence how preemption arguments are interpreted in this context.
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