Climate Rollback Opens Door for City Lawsuits Against Oil

When the Trump administration rolled back federal climate rules this month, it looked like a win for oil companies. But legal experts now say the move could actually make it easier for cities and states to sue big oil for climate damages.

The EPA repealed the "endangerment finding," a 2009 rule that said greenhouse gases threaten public health. That finding gave the federal government authority to regulate emissions, which also provided legal cover for fossil fuel companies facing lawsuits.

Here's the ironic part. Oil companies have spent years arguing that local climate lawsuits should be thrown out because the federal Clean Air Act already handles emissions. Now that the federal government is stepping back, that defense crumbles.

"I don't see how oil companies can, with a straight face, any longer make that argument," said Pat Parenteau, an environmental law expert at Vermont Law School.

Dozens of US cities and states have filed climate lawsuits against fossil fuel companies in recent years. Vermont and New York even passed laws requiring oil majors to help pay for climate disaster costs. Many of these cases were dismissed because judges said federal law took priority.

The Supreme Court will soon test this new legal landscape. The justices agreed to hear a case from Boulder, Colorado, where oil companies are trying to shut down a climate lawsuit using the old federal preemption argument.

The Bright Side

This unexpected development could strengthen communities seeking accountability for climate impacts. Cities dealing with flooding, heat waves, and infrastructure damage may finally get their day in court.

Michael Gerrard, founder of the Sabin Center for Climate Change Law, says lawsuits claiming companies harmed community health and safety stand to benefit most. States like Vermont and New York could see their climate superfund laws protected from industry challenges.

Even industry groups seem worried about this backfire. The utility trade group Edison Electric Institute warned last year that repealing climate rules could trigger "increased litigation." The American Petroleum Institute, which once fought hard against federal greenhouse gas regulation, now supports keeping some protections in place for power plants.

Sarah Light, a law professor at the University of Pennsylvania, notes the administration's position creates a legal puzzle. If there's no comprehensive federal scheme for greenhouse gas emissions anymore, then there's no federal law to block state and local action.

Communities bearing the costs of climate change may soon have new tools to seek justice and funding for repairs.