The End of Chevron Deference and its Impact on the Energy Industry

Abstract

As is currently well known, on June 28 the U.S. Supreme Court overturned the Chevron Deference, a key foundation of modern administrative law for 40 years. The case, Loper Bright Enterprises v. Raimondo (Loper Bright), had nothing to do with energy, but the impact of the decision has significant implications in the energy arena. The order follows a steady drumbeat of U.S. Supreme Court decisions issued during this term and in recent prior ones curbing the regulatory enforcement capabilities of Executive Branch agencies. But while this is a landmark case and would be expected to lead to a host of new legal challenges to agency rules and actions, its practical effect might result in being more nuanced, maybe with some wholly unexpected consequences.