Supreme Court Rulings Limit Federal Agency Power, Spark Delays in Energy Investments and Increased Litigation Risks.

The U.S. Supreme Court’s recent decisions to limit federal agency authority for new rules and extend the statute of limitations for existing regulations could delay energy investments and increase litigation. The court’s decision, Loper Bright Enterprises v. Raimondo, also allowed plaintiffs to sue over regulations for up to six years after they are affected by them, in Corner Post v. the Board of Governors of the Federal Reserve System. The Chevron doctrine, established in a 1984 Supreme Court decision, held that courts must give federal agencies deference in their interpretation of the law, as long as the interpretation is reasonable. The decisions could lead states to take a more expansive regulatory role, creating a growing patchwork of rules across the country and increased uncertainty for regulated entities. Legal action could take longer due to the lack of reliance on agency expertise on technical and complex issues.