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US Supreme Court reinstates Trump permitting rule

  • Mercados: Crude oil, Natural gas
  • 06/04/22

The US Supreme Court today revived a rule issued under former president Donald Trump that curtailed the ability of states to use water permits to block the construction of natural gas pipelines, coal export terminals and other facilities.

The Supreme Court, in a 5-4 unsigned order, reinstated a 2020 permitting rule that imposed new restrictions on when a state could deny "section 401" water quality permits that are typically required for pipelines and other major projects. The Trump administration issued the rule in response to concerns that states were using those permits as a backdoor veto against new fossil fuel infrastructure.

A federal district court last year threw out the Trump-era rule, reverting the US back to water permitting rules that had previously been in effect since 1971. But the Supreme Court's order today sided with Louisiana and other states that pushed to suspend that ruling based on concerns that other states would "return to their abusive practices" by blocking projects.

The order marks another instance of the Supreme Court's using its so-called "shadow docket" to weigh in on cases without a written opinion or oral arguments. The Supreme Court used similar emergency procedures to block Covid-19 vaccine mandates and in 2020 to reinstate separate streamlined water permits used by pipelines for small stream crossings.

Supreme Court justice Elena Kagan, writing the dissent today, said Louisiana and other states failed to show they would face "irreparable harm" from the 1971-era permitting regulations going back into force. The US Environmental Protection Agency is developing a replacement section 401 water permitting regulation that it expects will be complete by spring 2023.


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