United States: Supreme Court reconsiders Chevron deference

The US Supreme Court's deliberation on the Chevron deference could redefine future regulations in the energy and environmental sectors.

Share:

Changements Déférence Chevron

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Chevron deference, a doctrine established in 1984, could undergo significant changes as the Supreme Court re-examines its scope. This judicial principle states that courts should rely on a federal agency’s interpretation of ambiguous statutes, provided the interpretation is reasonable. This deference is crucial for agencies managing complex environmental and energy regulations.

Implications for energy and environmental policies

The Department of Energy (DOE) and the Bureau of Land Management (BLM) could be affected by a potential Chevron retreat. The DOE’s recent pause on LNG export approvals and the BLM’s proposal to offer conservation leases rather than traditional energy leases highlight the agencies’ reliance on broad interpretive authority that could be compromised.

Specific cases and legal arguments

The Supreme Court heard arguments in January concerning Chevron, with conservative judges showing an interest in restricting the doctrine. This change could lead to a loss of flexibility for agencies to fill gaps in statutory laws, especially in technical areas such as energy production and environmental conservation.

Impact on agency decision-making

Legal experts predict that a move away from Chevron could transfer more power to the courts to interpret laws, potentially leading to more rigid and less adaptive regulatory frameworks. Agencies may need to develop more detailed and conservative regulations to avoid judicial challenges.

Potential results and expert opinions

While some believe that the end of Chevron deference could lead to “intellectually dishonest” court decisions as mentioned by David Doniger of the Natural Resources Defense Council, others like Keith Coyle of Babst Calland argue that it could make agencies and courts more disciplined in distinguishing legal from policy issues.

The future of Chevron deference holds significant implications for the way environmental and energy regulations are developed and applied. As the Supreme Court prepares its decision, the potential realignment of interpretive powers between agencies and courts could herald substantial changes in administrative law and regulatory practices.

The Ministry of the Economy forecasts stable regulated tariffs in 2026 and 2027 for 19.75 million households, despite the removal of the Arenh mechanism and the implementation of a new tariff framework.
The federation of the electricity sector proposes a comprehensive plan to reduce dependence on fossil fuels by replacing their use in transport, industry and housing with locally produced electricity.
The new Czech Minister of Industry wants to block the upcoming European emissions trading system, arguing that it harms competitiveness and threatens national industry against global powers.
Several scenarios are under review to regain control of CEZ, a key electricity provider in Czechia, through a transaction estimated at over CZK200bn ($9.6bn), according to the Minister of Industry.
The government has postponed the release of the new Multiannual Energy Programme to early 2026, delayed by political tensions over the balance between nuclear and renewables.
Indonesia plans $31bn in investments by 2030 to decarbonise captive power, but remains constrained by coal dependence and uncertainty over international financing.
A drone attack on the Al-Muqrin station paralysed part of Sudan's electricity network, affecting several states and killing two rescuers during a second strike on the burning site.
The Bolivian government eliminates subsidies on petrol and diesel, ending a system in place for twenty years amid budgetary pressure and dwindling foreign currency reserves.
Poland’s financial watchdog has launched legal proceedings over suspicious transactions involving Energa shares, carried out just before Orlen revealed plans to acquire full ownership.
The Paris Council awards a €15bn, 25-year contract to Dalkia, a subsidiary of EDF, to operate the capital’s heating network, replacing long-time operator Engie amid political tensions ahead of municipal elections.
Norway’s energy regulator plans a rule change mandating grid operators to prepare for simultaneous sabotage scenarios, with an annual cost increase estimated between NOK100 and NOK300 per household.
The State of São Paulo has requested the termination of Enel Distribuição São Paulo’s concession, escalating tensions between local authorities and the federal regulator amid major political and energy concerns three years before the contractual expiry.
Mauritania secures Saudi financing to build a key section of the “Hope Line” as part of its national plan to expand electricity transmission infrastructure inland.
RESourceEU introduces direct European Union intervention on critical raw materials via stockpiling, joint purchasing and export restrictions to reduce external dependency and secure strategic industrial chains.
The third National Low-Carbon Strategy enters its final consultation phase before its 2026 adoption, defining France’s emissions reduction trajectory through 2050 with sector-specific and industrial targets.
Germany will allow a minimum 1.4% increase in grid operator revenues from 2029, while tightening efficiency requirements in a compromise designed to unlock investment without significantly increasing consumer tariffs.
Facing a structural electricity surplus, the government commits to releasing a new Multiannual Energy Programme by Christmas, as aligning supply, demand and investments becomes a key industrial and budgetary issue.
A key scientific report by the United Nations Environment Programme failed to gain state approval due to deep divisions over fossil fuels and other sensitive issues.
RTE warns of France’s delay in electrifying energy uses, a key step to limiting fossil fuel imports and supporting its reindustrialisation strategy.
India’s central authority has cancelled 6.3 GW of grid connections for renewable projects since 2022, marking a tightening of regulations and a shift in responsibility back to developers.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.