On October 5, the Supreme Court heard oral arguments in Suncor Energy (U.S.A.) Inc. v. County Commissioners of Boulder County, a case sparking controversy. The core question is whether federal law blocks Colorado’s state-law claims seeking billions in damages for climate change impacts allegedly caused by fossil fuel companies’ emissions.
The Supremacy Clause and Preemption
The case hinges on the Supremacy Clause in Article VI of the Constitution, which establishes federal law as supreme. This principle, known as preemption, occurs in forms like express, conflict, obstacle, and field preemption. The Supreme Court also recognizes structural and foreign-affairs preemption, which don’t rely on conflicting federal statutes.
In Zschernig v. Miller (1968), the court struck down an Oregon inheritance law for interfering with foreign affairs. In Am. Ins. Ass’n v. Garamendi (2003), it ruled a California law requiring insurers to disclose European policies from 1920-1945 was preempted by presidential foreign policy.
Interstate Emissions and State Sovereignty
Boulder County and the City of Boulder sued Suncor and Exxon Mobil in Colorado state court, alleging their global operations contributed to climate change, causing wildfires, drought, and flooding. The Colorado Supreme Court rejected the companies’ preemption arguments, claiming the suit targeted fuel production and sales, not emissions regulation.
However, the U.S. Court of Appeals for the 2nd Circuit dismissed similar claims in City of New York v. Chevron Corp. (2021), stating such cases are “beyond the limits of state law.” The Supreme Court has treated interstate emissions disputes as matters of federal law, as in Am. Elec. Power Co. v. Connecticut (2011), where it ruled “borrowing state law” inappropriate.
The energy companies argue the Constitution’s structure prevents one state from imposing policies on others, citing Georgia v. Tennessee Copper (1907). This case established states gave up unilateral action for federal forums applying federal law. They contend the 10th Amendment doesn’t override these limits on state sovereignty.
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A ruling in Boulder’s favor could influence energy operations nationwide, despite individual state policies. The case involves international emissions, where states lack authority to negotiate treaties or allocate responsibility between domestic and foreign emitters. In Massachusetts v. EPA (2007), the court noted states cannot negotiate emissions treaties with countries like China or India.
During arguments, Chief Justice John Roberts suggested Boulder’s suit aims to reduce emissions. The Supreme Court has acknowledged monetary awards can function as regulation, as in Kurns v. Railroad Friction Products Corp. (2012) and Int’l Paper Co. v. Ouellette (1987).
The outcome will impact the 60 states and localities with similar suits. Chief Justice Roberts predicted a wave of litigation if Boulder prevails. The decision will clarify state sovereignty and federal law’s role in interstate and international environmental issues.
International Emissions and Foreign Affairs Preemption
As noted in Massachusetts v. Allowing a state to allocate emissions responsibility through a jury verdict would infringe on the federal government’s foreign relations role.
Under Garamendi, courts weigh the state’s interest against conflict with federal foreign policy. Boulder’s claims fail on both counts, as states have no recognized interest in regulating overseas fuel production and sales. The conflict with national policy is clear, as emissions are a frequent subject of international negotiations.
Boulder seeks to hold producers liable for their alleged share of worldwide emissions, requiring a Colorado jury to allocate responsibility between domestic and foreign emitters. This violates foreign-affairs preemption, infringing on the federal government’s exclusive foreign relations role. The absence of a treaty doesn’t mean state law should prevail, as it may reflect ongoing negotiations or the President’s national interest judgment.
