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Federal court halts SEC climate reporting rule

Discussion in 'Too Hot for Swamp Gas' started by Gatorrick22, Mar 15, 2024.

  1. Gatorrick22

    Gatorrick22 GC Hall of Fame

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    This is an interesting case study on why Agencies should lose their Chevron deference powers. In case you don't know what the Chevron Deference means, I posted a definition at the very bottom of this post. below.

    I think their is a good use of the courts to stop this Legislating from agencies practice that has gotten out of hand, and is being misused in a way that was not written or intended to be used as such.



    Federal judges have temporarily halted a landmark new climate reporting rule, sidelining efforts by Wall Street’s top regulator to uncover the risks U.S. corporations and their investors face from rising global temperatures.

    Judges of the 5th U.S. Circuit Court of Appeals sided Friday with two fracking companies that had asked for an emergency stay of the “expansive and novel requirements” that they say the Securities and Exchange Commission has imposed on them. The companies’ preliminary victory could spell legal trouble for the SEC rule, which faces court challenges from the energy industry and environmentalists.

    The rule — a first-of-its-kind effort to require public companies to start reporting a raft of new climate-related information to investors — has drawn lawsuits from industry groups and environmentalists.

    Federal court halts SEC climate reporting rule




    Chevron deference
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    One of the most important principles in administrative law, the “Chevron deference” was coined after a landmark case, Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 468 U.S. 837 (1984). The Chevron deference is referring to the doctrine of judicial deference given to administrative actions. In Chevron, the Supreme Court set forth a legal test as to when the court should defer to the agency’s answer or interpretation, holding that such judicial deference is appropriate where the agency’s answer was not unreasonable, so long as Congress had not spoken directly to the precise issue at question.


    Chevron deference
     
    Last edited: Mar 15, 2024
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  2. l_boy

    l_boy 5500

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    Seems to me the process above worked as it should. Agencies made an excessive rule, parties sued and had it overturned.

    Getting rid of chevron deference basically means agencies that have to most knowledge in an area won’t be able resolve issues or make policy instead have to rely in congress for everything and congress is completely dysfunctional.
     
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