As the Supreme Court’s October 2023 term comes to a close, multiple rulings have been issued that have significantly altered the policy-making landscape in Washington. Most significantly, the Supreme Court’s 6-3 ruling in Loper Bright Enterprises v. Raimondo overturned the decades old Chevron doctrine. The Chevron doctrine was established in 1984 with the case Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc., in which the Supreme Court ruled a court must defer to “permissible” agency interpretations of a statute the agency administers, even if the court reads the statute differently. In other words, when Chevron applied, courts would accept reasonable—even if incorrect—agency interpretations of ambiguous statutes. Over the past 40 years, Chevron has been a bedrock feature of administrative law and has played a key role in many judicial decisions. With this ruling, two things became apparent. First, the ruling transfers federal agencies’ power to interpret ambiguous statutes passed by Congress to the judicial branch who will exert a larger role in the regulatory process. Second, such a transfer of power from the executive branch to the judicial branch will now require Congress to draft much more specific legislation directing federal agencies on how to implement statutes. Such a move may push Congress to rely on outside counsel for the policy-making process.
Several recent developments have taken place in California’s energy and environmental initiatives. These include a partnership with Fervo Energy to supply 320 megawatts of geothermal power, supporting the state’s aim of achieving 90% carbon-free electricity by 2035. Furthermore, California is in the final stages of planning for the development of offshore wind, aligning with its ambitious carbon neutrality target for 2045. Additionally, California is looking to implement a unique financial penalty on aviation fuel to reduce its greenhouse gas impact, showcasing the state’s commitment to innovative environmental policies.
Finally, Canada is poised to follow in the footsteps of the United States and the European Union (EU) by introducing tariffs on Chinese electric vehicles (EVs) due to concerns about unfair trade practices. Regardless of the outcome of the 2024 U.S. election, tariffs are expected to persist in an attempt to safeguard critical domestic industries in the west. Meanwhile, a more intricate situation is unfolding across the Atlantic. The EU recently announced plans to impose duties of up to 38% on Chinese EVs, despite facing resistance from their own auto manufacturers, notably Germany. Nevertheless, the EU and China appear committed to maintaining an open line of communication, as evidenced by the Fifth EU-China High-Level Environment and Climate Dialogue held in Brussels, Belgium, last week.
To read Akin’s most recent climate policy update, please click here.
