SCOTUS West Virginia v. EPA Ruling: Impact on Renewable Energy Resources and Clean Power Initiatives

Description

In West Virginia v. EPA, the U.S. Supreme Court held that the EPA lacked authority under the Clean Air Act to regulate greenhouse gas emissions from existing power plants. The ruling struck down the Obama-era Clean Power Plan to shift electricity generation from higher-emitting to lower-emitting energy producers. Counsel must recognize the impact this ruling has on clean energy initiatives, climate impact investing, and renewable energy resources.

The Supreme Court based its decision primarily on the "major questions doctrine," stating that the "history and the breadth of the authority that the agency has asserted and the economic and political significance of that assertion" must point to "clear congressional authorization" for the authority claimed to limit emissions by shifting the grid to lower-emitting sources. The ruling could derail several climate impact funds, investing, and other clean energy initiatives.

In addition, the Court's ruling could overturn the Chevron doctrine which states that when a legislative delegation to an administrative agency on a particular issue or question is not explicit but implicit, a court may not substitute its interpretation of the statute for a reasonable interpretation made by the administrative agency. This will have a significant impact on future EPA regulations and other executive agencies, renewables, and the future of climate change regulation.

Listen as our authoritative panel discusses the implications of West Virginia v. EPA and how the major questions doctrine impacts renewable energy resources, climate impact investing, and the future of climate change regulations.