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How Chevron Deference Will Affect Oil and Gas

And why you should care

Thread: Overruling of Chevron deference for dummies, and why you should care

How it got started:

In 1984, the Chevron case arose after the EPA defined all plant equipment as a single pollution "source" under the Clean Air Act, easing emissions rules. The NRDC (The Natural Resources Defense Council) sued, arguing it weakened environmental laws.

Why did Chevron win?

The court believed that federal agencies, equipped with expertise in their respective areas, were better positioned to handle ambiguities in the law than the court. 

How was the Chevron Doctrine playing out in real life? 

Loper Bright is a herring fish company located on the east coast. The department of commerce required Loper Bright to pay for a federal monitor to be on the boat to make sure they didn’t overfish. They were upset because it was costing them 700$ per day. They sued the department of commerce claiming that that the right to make that law wasn't give to them by congress.

The district court ruled the following:

Expert From District Court Ruling

In other words, they are saying that the department of commerce does have a right to require the federal monitor, due to the precedent set by Chevron deference.

Loper Bright's Dissent After Losing in District Court


Supreme Court

After Loper lost they appealed to the supreme court. The supreme court ruled in their favor saying, “ Chevron is overruled. Courts must exercise their independent judgment in deciding whether an agency has acted within its statutory”. In short, this means federal agencies can’t fill in the gray with their own ideas. 

Excerpt From Supreme Court Ruling
Going forward: 

It seems certain that government agencies will face an onslaught of legal battles since Chevron has been overturned. Industries that are highly regulated are most likely to pushback. See screenshot for agencies that will be hit the hardest: 

ChatGPT List of Agencies Most Likely to be Affected

Why does this matter? 

In my opinion, the government has too many regulations put in place by unelected officials. The vast majority of these regulations are unfair to businesses and hurt the American people. Chevron will curtain the ability of federal  agencies to make unfair laws. 

Sources:
District Court Case | Supreme Court Case | WhiteCaseLaw

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