WEBVTT - Supreme Court Could Undercut Biden's Climate Agenda

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<v Speaker 1>This is Bloomberg Law with June Bresso from Bloomberg Radio.

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<v Speaker 1>In a case that threatens to undercut President Joe Biden's

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<v Speaker 1>climate agenda, the Supreme Court considered the reach of the

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<v Speaker 1>Environmental Protection Agency's power to reduce greenhouse gas emissions, but

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<v Speaker 1>there was less talk about climate change than about the

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<v Speaker 1>contours of the so called Major Questions doctrine, a doctrine

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<v Speaker 1>the Court relied on to block Ocean's vaccine or test

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<v Speaker 1>mandate and the c d c S eviction moratorium. Jones

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<v Speaker 1>Is Elena Kagan gave an example which Justice any Coney

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<v Speaker 1>Barrett then picked up on. The agency has stepped far

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<v Speaker 1>outside of what we think of as its appropriate lane. Uh,

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<v Speaker 1>you know the FDA regulating tobacco. That sort of thing,

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<v Speaker 1>just like something that's like what the FDA regulates tobacco.

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<v Speaker 1>You know, the FDA staying in its lane. What the

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<v Speaker 1>FDA can regulate tobacco. Or if you think about the

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<v Speaker 1>eviction moratorium case from earlier, this term, you know, it

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<v Speaker 1>was what the CDC can regulate the landlord tenant relationship.

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<v Speaker 1>Here for thinking about ep A regulating greenhouse gases, Well,

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<v Speaker 1>there's a match between the regulation and the agency's wheelhouse. Right,

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<v Speaker 1>How confusing was it all? Justice Stephen Bryer, known for

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<v Speaker 1>his crazy hypotheticals, jumped into help Justice Samuel Alito with

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<v Speaker 1>one of his hypotheticals for Attorney Beth Brinkman, something just

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<v Speaker 1>as Kagan joked about, maybe it's sound a good hypothetical.

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<v Speaker 1>I think he's saying, your mind. Yeah, in tobacco, I

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<v Speaker 1>suppose they started off and saying, we are regulating the

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<v Speaker 1>advertising of four foot cigars smoked through hocus. Okay, now

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<v Speaker 1>the problem is can you regulate tobacco? And if you

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<v Speaker 1>can regulate tobacco, that's a very big deal. But they say, no,

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<v Speaker 1>it isn't. It's just this I n you know, there

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<v Speaker 1>aren't There are only three in the whole country. So

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<v Speaker 1>it's a little deal. So it isn't the major question.

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<v Speaker 1>Doctory you know that helped me, your honor and justice leader.

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<v Speaker 1>I really don't mean to be not answering your question.

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<v Speaker 1>Well I won't, I won't belabor it, and I can

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<v Speaker 1>never equal my my colleagues evocative hypotheticals. You know, it's

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<v Speaker 1>not always the case, mis Brinkman, that a lawyer responds

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<v Speaker 1>to one of Justice Prior's hypotheticals by saying, that's really

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<v Speaker 1>helpful laughter from those who know Justice Briar's hypothetical as well.

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<v Speaker 1>Joining me is Pat Parento, a professor of environmental law

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<v Speaker 1>at Vermont Law School. Pat, what's at stake in this

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<v Speaker 1>case When you're talking about the electricity sector that represents

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<v Speaker 1>about a third of our total greenhouse gas emissions, So

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<v Speaker 1>it's incredibly important to regulate that sector and get those

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<v Speaker 1>emissions down. And within that sector, you know, the single

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<v Speaker 1>most important category, of course, is coal fired power plants.

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<v Speaker 1>So this case West Virginia versus e p A, no

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<v Speaker 1>surprise West Virginia being a huge coal state still even

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<v Speaker 1>though coal is dying there, it's all about whether e

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<v Speaker 1>p A has authority to impose the kinds of controls well,

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<v Speaker 1>a system of controls that will significantly bring those plants

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<v Speaker 1>into compliance with the Clean Air Act and with President

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<v Speaker 1>Biden's avowed pledge to make the electricity sector carbon free.

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<v Speaker 1>So there's a lot writing on this and beyond the

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<v Speaker 1>greenhouse gas and the climate change implications of the case.

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<v Speaker 1>Depending on what the court does, it may sweep even

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<v Speaker 1>more broadly. It may affect all of environmental law. So

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<v Speaker 1>Republican led states, and as you mentioned, coal companies are

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<v Speaker 1>trying to head off an e p A rule that

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<v Speaker 1>isn't even on the books yet. That's right. Originally, the

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<v Speaker 1>Obama administration proposed something called the Clean Power Plant and

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<v Speaker 1>it had three different components. It was gonna make plants

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<v Speaker 1>more efficient, it was going to require more reliance on

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<v Speaker 1>natural gas plants, and it was going to require bringing

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<v Speaker 1>on green energy, wind and solar more quickly. That plan

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<v Speaker 1>never took effect. The Supreme Court put a stay on

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<v Speaker 1>it before any court had even ruled on whether it

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<v Speaker 1>was legal or not, and it never went into effect.

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<v Speaker 1>And then subsequently, of course, the Trump administration proposed something

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<v Speaker 1>called the Affordable Clean Energy Rule, which it wasn't but

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<v Speaker 1>that rule would have only achieved maybe maybe one reduction

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<v Speaker 1>in these emissions, so it was a meaningless rule. The

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<v Speaker 1>DC Circuit Court vacated the Trump rule and sort of reinstated,

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<v Speaker 1>or at least gave e p A the option of

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<v Speaker 1>reinstating the Clean Power Plan. Ep A quickly said, we

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<v Speaker 1>have no intention of reinstating the Clean Power Plan. We're

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<v Speaker 1>certainly not going to keep the Affordable Clean Energy Rule

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<v Speaker 1>on the books. We're going to start a new rulemaking,

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<v Speaker 1>and that's where they are today. They promised the Court

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<v Speaker 1>e p. A did that a new rule is forthcoming, right,

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<v Speaker 1>you know, it's in the mail sort of government promise.

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<v Speaker 1>But no, they did say they anticipate promulgating a new

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<v Speaker 1>rule before the end of the year. So you're right.

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<v Speaker 1>At the current time, there is no rule on the books.

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<v Speaker 1>Nobody is required to do anything, which of course raises

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<v Speaker 1>the question why in the world the Court take the case.

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<v Speaker 1>My question, there's no case or controversy is there not

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<v Speaker 1>to my way of thinking. But the majority of the

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<v Speaker 1>Court disagrees. They're clinging to the idea that because e p.

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<v Speaker 1>A didn't officially repeal the Clean Power Plan, it could

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<v Speaker 1>spring back to life. That was a term that was

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<v Speaker 1>used at some point. So that's the slender thread that

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<v Speaker 1>the Supreme Court is using to say this case is

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<v Speaker 1>still alive controversy. It really isn't. That's a fiction, but

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<v Speaker 1>they're sticking to it. The majority, the conservative majority of

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<v Speaker 1>the Court is saying, we think we still have jurisdiction

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<v Speaker 1>and we're going to issue a ruling. Now, the question

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<v Speaker 1>is what that ruling going to be. So the Bond

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<v Speaker 1>Administration backing the e p A, and they have backing

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<v Speaker 1>from environmental groups and power companies like Consolidated Edison, Exelon,

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<v Speaker 1>and National Grid USA. Why is the power sector nervous

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<v Speaker 1>about this? Yeah, because the power sector likes the idea

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<v Speaker 1>of having flexible options to achieve the reductions, including things

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<v Speaker 1>like emissions trading. Of course, the power industry has been

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<v Speaker 1>the subject of emissions trading ever since the acid rain

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<v Speaker 1>control program from so the industry groups are savvy. They

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<v Speaker 1>understand that with that kind of a program they can

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<v Speaker 1>figure out how to achieve emission reductions at the lowest costs.

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<v Speaker 1>And they're afraid that the Supreme Court may go so

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<v Speaker 1>far as to prohibit e p A from using emissions

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<v Speaker 1>trading and averaging because West Virginia's argument is all that

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<v Speaker 1>e p A can do is imposed controls at individual sources,

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<v Speaker 1>one plant at a time, which is terribly inefficient and ineffective.

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<v Speaker 1>It's not going to achieve the kind of reductions that

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<v Speaker 1>are needed. But that's the whole point, right, I Mean,

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<v Speaker 1>what West Virginia wants is a rule that's so weak

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<v Speaker 1>it won't do anything. But the power company parties that

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<v Speaker 1>joined with e p A are saying, we don't agree

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<v Speaker 1>with that. We would much rather have E p A

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<v Speaker 1>give us options, including, by the way, bringing on more

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<v Speaker 1>wind and solar when that makes sense. So don't take

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<v Speaker 1>things off the table, you know, don't necessarily force us

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<v Speaker 1>to go green right away, but give us some options.

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<v Speaker 1>That's what the companies want. The arguments were really long.

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<v Speaker 1>Was there one issue that the justices were kicking around most? Yes,

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<v Speaker 1>that's the major question doctrine. You know, the court has

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<v Speaker 1>already used that twice this year. They struck down a

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<v Speaker 1>rule putting a moratorium on evictions because of the CODE epidemic,

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<v Speaker 1>and they said that the agency didn't have the authority

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<v Speaker 1>because that was something the agency had never done before.

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<v Speaker 1>And in another case, OSHA, the agency that regulates occupational

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<v Speaker 1>exposure and health and safety concerns, also imposed a rule

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<v Speaker 1>and the court struck that down, saying OSHA, you're not

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<v Speaker 1>the health agency. You can't be writing a rule that

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<v Speaker 1>regulates people's exposure to COVID in the workplaces. You can regulate,

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<v Speaker 1>you know, the strength of ladders that people climb in

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<v Speaker 1>performance of their duties, but you can't regulate the fact

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<v Speaker 1>that they might be exposed to a deadly disease. You know.

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<v Speaker 1>So the Court has already shown that it wants to

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<v Speaker 1>wield this major question doctrine in a way that strikes

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<v Speaker 1>down agency rules at the court. The conservative members of

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<v Speaker 1>the Court believe are going too far, having major impacts

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<v Speaker 1>on the nation's economy and so forth. But it's a

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<v Speaker 1>rule they made up, you know, it doesn't come from

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<v Speaker 1>the Constitution, and it's fairly recent. It's just within this

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<v Speaker 1>era of the people that have joined the courts, Justice Roberts,

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<v Speaker 1>Justice course, it's Justice Kavanaugh, now Justice Barrett, and formerly

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<v Speaker 1>Justice A. Leado and Justice Thomas. They're all of the

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<v Speaker 1>same mind about limiting agency authority. The so called administrative state.

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<v Speaker 1>Is that what this is about. That's what this is about.

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<v Speaker 1>I mean, the Court would never use that term, but

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<v Speaker 1>that's what it's about. It's a suspicion that agencies who

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<v Speaker 1>are quote unelectric bureaucrats, you know, taking irrigating a lot

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<v Speaker 1>of power, and they don't like that. The conservatives believe,

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<v Speaker 1>I think that those are things that Congress should be doing.

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<v Speaker 1>And I suppose in a perfect world that's right. But

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<v Speaker 1>what happens when Congress isn't doing that, which is exactly

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<v Speaker 1>where we are today. So the major question doctrine is

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<v Speaker 1>supposed to kick the issues back to Congress and forced

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<v Speaker 1>Congress to be more explicit about the authority that they're granting. Well,

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<v Speaker 1>that sounds good, but we know that in environmental law

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<v Speaker 1>we have not seen updates. Who are major environmental laws

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<v Speaker 1>like the Clean Air Act, like the Clean Water Act,

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<v Speaker 1>like the Endangered Species Act. We haven't seen updates in decades,

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<v Speaker 1>and there's no likelihood that we will. So this notion

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<v Speaker 1>of quote kicking it back to Congress is illusory. What

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<v Speaker 1>it really means is there won't be any rule and

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<v Speaker 1>there won't be any protection. Did you see enough votes

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<v Speaker 1>there to head off the e p A rule? No? No.

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<v Speaker 1>I was hopeful that all of the members of the Court,

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<v Speaker 1>when they really focused on what they were being asked

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<v Speaker 1>to do in light of the fact there is no

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<v Speaker 1>rule to review, might reconsider having taken the case. But

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<v Speaker 1>there was no indication they were going to do that.

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<v Speaker 1>So I'm convinced they are going to write a decision.

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<v Speaker 1>The real question is what are they going to tell

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<v Speaker 1>the e p A. I mean, the Court is not

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<v Speaker 1>a rule making body. I mean the conservatives would be

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<v Speaker 1>the first to say that's a violation of separation of powers.

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<v Speaker 1>That's outside our lane. We're not supposed to write rules,

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<v Speaker 1>we're supposed to review rules. So that's my question is

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<v Speaker 1>what is factuty? Are they gonna say? Are they going

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<v Speaker 1>to tell the EPA you can do these things but

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<v Speaker 1>not those things? And on what basis would they do that.

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<v Speaker 1>They can't say e p A has no power to

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<v Speaker 1>do anything because of Massachusetts versus e p A. They've

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<v Speaker 1>already decided e p A has the authority, and they

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<v Speaker 1>actually said e p A has the duty to regulate

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<v Speaker 1>once e p A has found that these emissions pose

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<v Speaker 1>a danger the public health and welfare, which e p

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<v Speaker 1>A has. The Supreme Court had a chance to review

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<v Speaker 1>the endangerment finding some time ago and decided not to

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<v Speaker 1>do that. And then yet in another case, the A

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<v Speaker 1>e p versus Connecticut case, the Supreme Court specifically cited

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<v Speaker 1>the provision that's that issue in the West Virginia case

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<v Speaker 1>as the source of e p AS authority to regulate

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<v Speaker 1>emissions from power plants. So I think the Court is

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<v Speaker 1>sort of in a box. They've issued opinions saying e

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<v Speaker 1>p A has a duty to regulate these emissions and

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<v Speaker 1>a specific provision from which to do that. And so

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<v Speaker 1>now what are they going to say about it? They're

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<v Speaker 1>going to say, well, now we're gonna put some significant boundaries.

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<v Speaker 1>There was an argument from West Virginia and from the

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<v Speaker 1>coal industry parties that the rule should be you can't

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<v Speaker 1>regulate beyond the fence line. And a lot of my colleagues,

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<v Speaker 1>a lot of lawyers out there, thought that might be

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<v Speaker 1>the rationale that the court might grab and use. But

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<v Speaker 1>there was a lot of skepticism towards that, even from

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<v Speaker 1>Justice Thomas right off the bat, saying that rule doesn't

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<v Speaker 1>make any sense to me. So I don't think they're

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<v Speaker 1>going to be able to use something simplistic like you

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<v Speaker 1>can't regulate beyond the fence line. But again, what exactly

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<v Speaker 1>are they going to say, and we won't know until

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<v Speaker 1>June explain that you can't regulate beyond the fence line?

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<v Speaker 1>What that means on the ground, Yeah, what that would

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<v Speaker 1>mean is you go to each individual plant and you

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<v Speaker 1>try to determine what control you know, the the typical

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<v Speaker 1>Clean Air Act controls are things like scrubbers, right, That's

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<v Speaker 1>that's how we scrub out pollutants like mercury and other

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<v Speaker 1>air pollutants, or baghouse filters, you know, another end of

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<v Speaker 1>stack kind of control for greenhouse gases. That doesn't work.

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<v Speaker 1>Baghouses don't work. Scrubbers don't worry. That doesn't work. So

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<v Speaker 1>the only thing you can do with carbon emissions is

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<v Speaker 1>either capture them right and to question them. You know,

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<v Speaker 1>that's carbon capture and sequestration that's incredibly expensive. I mean,

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<v Speaker 1>that's the irony actually of West Virginia's argument. If you

0:13:38.160 --> 0:13:42.400
<v Speaker 1>take it to its logical extreme, it would mean every

0:13:42.440 --> 0:13:45.440
<v Speaker 1>single coal fired power plant out there would have to

0:13:45.520 --> 0:13:51.320
<v Speaker 1>install incredibly expensive carbon capture and sequestration systems, not just

0:13:51.640 --> 0:13:56.440
<v Speaker 1>one technology and the entire system, and that probably alone

0:13:56.800 --> 0:13:59.840
<v Speaker 1>would put those plants out of business. So, you know,

0:14:00.080 --> 0:14:03.199
<v Speaker 1>that kind of an argument of looking at the individual

0:14:03.840 --> 0:14:09.000
<v Speaker 1>source and looking for sort of conventional technologies just really

0:14:09.040 --> 0:14:13.160
<v Speaker 1>doesn't work for carbon um What the Trump administration said

0:14:13.240 --> 0:14:17.000
<v Speaker 1>you could do is improve the heat rate efficiency of

0:14:17.080 --> 0:14:20.200
<v Speaker 1>the individual plants. In fact, that's what Trump said is

0:14:20.240 --> 0:14:22.960
<v Speaker 1>all you can do. But the problem with that is

0:14:23.400 --> 0:14:27.320
<v Speaker 1>if you make plants run more efficiently, guess what, they're

0:14:27.320 --> 0:14:30.360
<v Speaker 1>going to run more. They're going to run longer and

0:14:30.440 --> 0:14:33.440
<v Speaker 1>that's going to put more emissions into the air long term.

0:14:33.560 --> 0:14:38.800
<v Speaker 1>So that's a nonsensical frankly, a strategy by itself. It

0:14:38.920 --> 0:14:42.680
<v Speaker 1>might make sense in combination, right with some other strategies

0:14:42.680 --> 0:14:46.680
<v Speaker 1>to actually reduce emissions, but by itself just improving the

0:14:46.720 --> 0:14:49.880
<v Speaker 1>efficiency these plants is not going to move the needle

0:14:50.240 --> 0:14:53.640
<v Speaker 1>on carbon pollution. A lot of people were looking at

0:14:53.680 --> 0:14:57.360
<v Speaker 1>the three newest justices to see, you know what they said.

0:14:57.400 --> 0:15:02.520
<v Speaker 1>But Justice Neil i And only asked one question, and

0:15:03.120 --> 0:15:06.920
<v Speaker 1>Justices Brett Kavanaugh and Amy Coney Barrett didn't ask that

0:15:06.960 --> 0:15:11.320
<v Speaker 1>many questions in this long argument. But did Barrett seem

0:15:11.440 --> 0:15:16.960
<v Speaker 1>to be considering sort of a middle ground position? I think.

0:15:17.640 --> 0:15:20.960
<v Speaker 1>I think if there's any hope here to retain some

0:15:21.120 --> 0:15:24.040
<v Speaker 1>authority for e p A to write a meaningful rule,

0:15:24.440 --> 0:15:28.400
<v Speaker 1>it lies with Chief Justice Roberts, and there's a good

0:15:28.440 --> 0:15:31.880
<v Speaker 1>likelihood actually that he may write the opinion in this case,

0:15:32.200 --> 0:15:36.520
<v Speaker 1>and with Justice Barrett, because yes, she was cautious, and

0:15:36.600 --> 0:15:39.240
<v Speaker 1>she didn't tip her hand at all about which way

0:15:39.280 --> 0:15:42.000
<v Speaker 1>she was leaning, and she asked the kinds of questions

0:15:42.120 --> 0:15:45.520
<v Speaker 1>of the petitioners, questions that would suggest she wasn't buying

0:15:45.560 --> 0:15:49.640
<v Speaker 1>everything they were saying even Justice Kavanaugh, who when he

0:15:49.720 --> 0:15:53.280
<v Speaker 1>was on the d C circuit, he heard arguments challenging

0:15:53.320 --> 0:15:56.080
<v Speaker 1>the Clean Power Plan, and he made it pretty clear

0:15:56.160 --> 0:15:58.800
<v Speaker 1>he had very little used for the Clean Power Plan

0:15:59.160 --> 0:16:02.400
<v Speaker 1>and was prepared to use this major question doctrine to

0:16:02.440 --> 0:16:06.480
<v Speaker 1>strike it down. But when he was asking questions, particularly

0:16:06.480 --> 0:16:09.520
<v Speaker 1>of the lawyers arguing for the industry position, he was

0:16:09.560 --> 0:16:14.040
<v Speaker 1>acknowledging that emissions trading and you know, some of these

0:16:14.080 --> 0:16:18.840
<v Speaker 1>more flexible approaches did make sense. And in some of

0:16:18.880 --> 0:16:23.000
<v Speaker 1>his earlier opinions, you know, he's shown a keen interest

0:16:23.000 --> 0:16:25.640
<v Speaker 1>in looking at the costs and benefits of various ways

0:16:25.680 --> 0:16:29.640
<v Speaker 1>of regulating. So I think he's going to hesitate to

0:16:29.840 --> 0:16:33.400
<v Speaker 1>join in an opinion that would take away that kind

0:16:33.440 --> 0:16:36.440
<v Speaker 1>of authority for epated shape a more flexible rules. So

0:16:36.720 --> 0:16:41.320
<v Speaker 1>there's enough, I think play among the justices here that

0:16:41.680 --> 0:16:43.560
<v Speaker 1>maybe the e p A could come out of this

0:16:43.680 --> 0:16:46.240
<v Speaker 1>case not with everything they would like to have, but

0:16:46.320 --> 0:16:49.040
<v Speaker 1>with at least enough to write a decent rule. That's

0:16:49.040 --> 0:16:51.480
<v Speaker 1>what we're hoping. Those of us who want to see

0:16:51.760 --> 0:16:55.760
<v Speaker 1>us make some progress towards controlling carbon pollution are hoping

0:16:56.240 --> 0:16:59.000
<v Speaker 1>the Court will pause before it writes something that just

0:16:59.080 --> 0:17:02.280
<v Speaker 1>strips p A of any meaningful authority to do that.

0:17:03.200 --> 0:17:05.399
<v Speaker 1>Did it seem as if it was particularly just as

0:17:05.400 --> 0:17:10.679
<v Speaker 1>Aldo was against the e p A. Here, Yes, Justice

0:17:10.720 --> 0:17:14.320
<v Speaker 1>Aldo has been you know, he was the same way

0:17:14.400 --> 0:17:16.720
<v Speaker 1>with the Maui and Clean Water Act case. He descended

0:17:16.760 --> 0:17:19.320
<v Speaker 1>a long, long distent. His descent was longer than the

0:17:19.359 --> 0:17:24.280
<v Speaker 1>majority opinion that Justice Brier wrote, you know, um saying

0:17:24.320 --> 0:17:28.440
<v Speaker 1>that yes, under certain circumstances, dp A can regulate discharges

0:17:28.480 --> 0:17:31.800
<v Speaker 1>through groundwater that affect lakes and rivers and so forth.

0:17:32.040 --> 0:17:34.560
<v Speaker 1>Alito said, no, they don't. They don't have that authority period.

0:17:34.640 --> 0:17:39.520
<v Speaker 1>So so Alito's questions were as typically, um, you know,

0:17:40.520 --> 0:17:42.520
<v Speaker 1>a little bit over the top because of what Alado

0:17:42.640 --> 0:17:45.639
<v Speaker 1>was saying. You know, if we if we grant e

0:17:45.840 --> 0:17:50.080
<v Speaker 1>p A this broader authority that e p A wants,

0:17:50.960 --> 0:17:53.399
<v Speaker 1>where does it lead? I mean, does it lead to

0:17:53.440 --> 0:17:57.320
<v Speaker 1>e p A regulating everybody's house and telling everybody what

0:17:57.400 --> 0:17:59.919
<v Speaker 1>kind of energy they could use? And that's ridiculous, right,

0:18:00.280 --> 0:18:04.800
<v Speaker 1>But that is the way that Alito thinks about agency authority.

0:18:04.880 --> 0:18:09.199
<v Speaker 1>He worries about the abuse of authority. That's where he

0:18:09.320 --> 0:18:12.520
<v Speaker 1>always goes with his question. He sort of takes the

0:18:12.600 --> 0:18:17.160
<v Speaker 1>extreme example of what a kind of renegade agency would do.

0:18:17.640 --> 0:18:20.640
<v Speaker 1>You know, if we're not really careful in controlling their authority,

0:18:20.920 --> 0:18:24.800
<v Speaker 1>they're likely to go overboard. That's where he was coming from.

0:18:24.840 --> 0:18:28.800
<v Speaker 1>And the liberal justices were supportive of the e P

0:18:28.880 --> 0:18:33.200
<v Speaker 1>a sort of, but I think they knew that, they

0:18:33.240 --> 0:18:35.480
<v Speaker 1>knew what the writing on the wall was. They didn't

0:18:35.480 --> 0:18:39.240
<v Speaker 1>fight on what we call the justiciability question there. There's

0:18:39.240 --> 0:18:42.120
<v Speaker 1>all kinds of reasons why the court shouldn't take this case,

0:18:42.160 --> 0:18:45.800
<v Speaker 1>for example standing. You know, how many times do environmental

0:18:45.840 --> 0:18:48.960
<v Speaker 1>groups groups get thrown out of court because they can't

0:18:48.960 --> 0:18:52.440
<v Speaker 1>adequately prove standing. They can't prove how they're hurt by

0:18:52.440 --> 0:18:55.040
<v Speaker 1>what the agency is doing or not doing. There's no

0:18:55.160 --> 0:18:58.879
<v Speaker 1>hurt here at all. Okay, so nobody's being required to

0:18:58.920 --> 0:19:02.000
<v Speaker 1>do anything, right, So you would have thought the liberal

0:19:02.000 --> 0:19:04.720
<v Speaker 1>members of the court would have been hammering on the

0:19:04.800 --> 0:19:09.120
<v Speaker 1>standing question. Nothing almost nothing on that. In fact, Corsage

0:19:09.480 --> 0:19:12.119
<v Speaker 1>was the only one to raise the standing question and

0:19:12.200 --> 0:19:14.160
<v Speaker 1>he didn't press it at all, Like he said, one

0:19:14.280 --> 0:19:17.560
<v Speaker 1>question and he was done. So no, you know, Justice

0:19:17.640 --> 0:19:22.160
<v Speaker 1>Brier actually surprising, well maybe not surprisingly. He's an administrative

0:19:22.200 --> 0:19:26.399
<v Speaker 1>law professor, so he he was quibbling over why e

0:19:26.560 --> 0:19:30.639
<v Speaker 1>p A hadn't actually repealed the clean Power Plan. They

0:19:30.920 --> 0:19:33.760
<v Speaker 1>you know, the e p A probably in hindsight, should

0:19:33.760 --> 0:19:35.960
<v Speaker 1>have done that right uh, and taking it off the

0:19:35.960 --> 0:19:39.680
<v Speaker 1>board completely. But because by leaving it sort of out there,

0:19:40.119 --> 0:19:43.439
<v Speaker 1>even though there they have no intention of proceeding with it,

0:19:43.440 --> 0:19:45.879
<v Speaker 1>it gave it gave the majority of the court, the

0:19:45.920 --> 0:19:49.959
<v Speaker 1>conservatives on the court a handle on the case. And

0:19:50.000 --> 0:19:54.480
<v Speaker 1>Briar was was was quizzing the Solicitor General on why

0:19:54.520 --> 0:19:57.760
<v Speaker 1>didn't e p A just take that rule off the books?

0:19:57.800 --> 0:20:00.480
<v Speaker 1>That was about all you got from the liberal a side.

0:20:00.960 --> 0:20:03.640
<v Speaker 1>Talk about the possibilities of a ruling here. You could

0:20:03.640 --> 0:20:06.800
<v Speaker 1>have them dismiss the case. You could have them issue

0:20:06.840 --> 0:20:10.119
<v Speaker 1>a narrow ruling a broad ruling. What are the possibilities

0:20:11.000 --> 0:20:14.280
<v Speaker 1>they won't dismiss the case. That's pretty clear now. It

0:20:14.320 --> 0:20:17.119
<v Speaker 1>does come down to a narrow or broad ruling, and

0:20:17.200 --> 0:20:20.560
<v Speaker 1>it does come down to will they call out some

0:20:20.720 --> 0:20:24.399
<v Speaker 1>things that would be permissible. For example, could they say,

0:20:24.680 --> 0:20:29.440
<v Speaker 1>you know, e e p A can consider a regulation

0:20:29.640 --> 0:20:33.880
<v Speaker 1>that extends beyond the fence line, but not one that

0:20:33.920 --> 0:20:38.640
<v Speaker 1>tries to restructure the country's energy system, you know, not

0:20:38.760 --> 0:20:43.320
<v Speaker 1>one that that requires use of renewable energy, not one

0:20:43.440 --> 0:20:47.000
<v Speaker 1>that tries to regulate the way the grid system of

0:20:47.040 --> 0:20:51.000
<v Speaker 1>the country works and dispatch you know, gas power or

0:20:51.080 --> 0:20:54.919
<v Speaker 1>clean power something like that. Those were things that the

0:20:54.960 --> 0:20:59.760
<v Speaker 1>Clean Power Plan included as options. They weren't necessarily man

0:20:59.800 --> 0:21:02.639
<v Speaker 1>the eights, but they were options. And it may be

0:21:03.600 --> 0:21:07.280
<v Speaker 1>that the opinion in this case kind of goes through

0:21:07.400 --> 0:21:12.040
<v Speaker 1>what the Clean Power Plan was considering and knocks individual

0:21:12.040 --> 0:21:14.800
<v Speaker 1>pieces of it out and then leaves it to e

0:21:14.960 --> 0:21:18.280
<v Speaker 1>p A to decide what can it do once the

0:21:18.320 --> 0:21:21.080
<v Speaker 1>court has said what it can't do. I still have

0:21:21.240 --> 0:21:25.120
<v Speaker 1>trouble imagining how an opinion like that reads and how

0:21:25.160 --> 0:21:28.440
<v Speaker 1>you would write it. But that's maybe what we'll see

0:21:28.600 --> 0:21:31.840
<v Speaker 1>is is kind of an opinion that limits e p

0:21:32.040 --> 0:21:34.560
<v Speaker 1>as authority at the boundary, at the sort of the

0:21:34.560 --> 0:21:38.240
<v Speaker 1>outer edge of its its potential authority, but leaves enough

0:21:38.760 --> 0:21:40.399
<v Speaker 1>that e p A can figure out a rule that

0:21:40.440 --> 0:21:43.359
<v Speaker 1>will make do some good. Thanks for those insights, Pat.

0:21:43.720 --> 0:21:48.280
<v Speaker 1>That's Professor Pat Parento of the Vermont Law School. Our

0:21:48.359 --> 0:21:52.720
<v Speaker 1>interests are maintained the strongest unified economic impact campaign that

0:21:53.880 --> 0:21:56.400
<v Speaker 1>on food and in all history, and I think we're

0:21:56.440 --> 0:21:59.200
<v Speaker 1>well on the way to doing that. President Joe Biden

0:21:59.320 --> 0:22:03.439
<v Speaker 1>says they is determined to continue its economic assault on

0:22:03.600 --> 0:22:07.800
<v Speaker 1>Russian President Vladimir Putin over his war in Ukraine. The

0:22:07.920 --> 0:22:11.879
<v Speaker 1>latest round targets Russia's wealthy as oligarchs and their families

0:22:11.920 --> 0:22:15.240
<v Speaker 1>with direct sanctions, adding to the ever growing list of

0:22:15.320 --> 0:22:18.800
<v Speaker 1>sanctions against Russia, all in the hope that financial pain

0:22:18.960 --> 0:22:22.000
<v Speaker 1>will force Putin to end his war. The rush of

0:22:22.080 --> 0:22:25.560
<v Speaker 1>sanctions means that lawyer's phones are ringing off the hook

0:22:25.800 --> 0:22:28.720
<v Speaker 1>with calls from clients struggling to figure out how to

0:22:28.800 --> 0:22:31.560
<v Speaker 1>deal with them. Joining me as someone who's been taking

0:22:31.600 --> 0:22:36.760
<v Speaker 1>those calls, Chase Knicki, a partner, Cleary Gottlieb start by

0:22:36.800 --> 0:22:41.840
<v Speaker 1>telling us how significant the sanctions are in size and scope.

0:22:42.200 --> 0:22:46.040
<v Speaker 1>So the sanctions that we've seen to date are somewhat

0:22:46.240 --> 0:22:51.320
<v Speaker 1>unprecedented from a sanctions perspective, in the sense of, you know,

0:22:51.440 --> 0:22:55.840
<v Speaker 1>a country with such economic ties, with countries like the

0:22:55.920 --> 0:22:59.040
<v Speaker 1>United States, in the UK and the European Union being

0:22:59.080 --> 0:23:03.080
<v Speaker 1>subject to the level in this amount of sanctions, largely

0:23:03.200 --> 0:23:07.600
<v Speaker 1>targeting in many ways the Russian financial sector, including major

0:23:07.720 --> 0:23:11.800
<v Speaker 1>Russian financial and institutions, as well as most recently the

0:23:11.880 --> 0:23:15.240
<v Speaker 1>Central Bank of Russia and those sanctions, from what we're

0:23:15.600 --> 0:23:20.000
<v Speaker 1>hearing from clients and otherwise hearing in the market, are

0:23:20.119 --> 0:23:23.879
<v Speaker 1>having the intended effect of really isolating Russia from an

0:23:23.920 --> 0:23:28.240
<v Speaker 1>economic perspective. Chase, would you say this situation is different

0:23:28.400 --> 0:23:31.879
<v Speaker 1>in that usually you have a slower ramp up of

0:23:31.960 --> 0:23:36.399
<v Speaker 1>sanctions over time, but here you have several stages in

0:23:36.440 --> 0:23:41.720
<v Speaker 1>a compressed period of time, and more escalations are possible. Exactly,

0:23:41.760 --> 0:23:43.639
<v Speaker 1>That's right, and it used to be the case. You know,

0:23:43.680 --> 0:23:46.680
<v Speaker 1>look at the programs that apply to countries like Iran

0:23:46.960 --> 0:23:50.040
<v Speaker 1>and even North Korea and Cuba. Those countries are just

0:23:50.080 --> 0:23:53.320
<v Speaker 1>completely off limits for US persons. The US government, at

0:23:53.400 --> 0:23:55.720
<v Speaker 1>least in recent years, hasn't really been taking that kind

0:23:55.760 --> 0:23:59.560
<v Speaker 1>of broader, comprehensive approach, but instead is imposing at least

0:23:59.560 --> 0:24:03.640
<v Speaker 1>what I call all sort of smart sanctions, narrowly tailored sanctions.

0:24:03.680 --> 0:24:06.720
<v Speaker 1>You typically do see those in a more piecemeal way,

0:24:07.119 --> 0:24:09.680
<v Speaker 1>where you know a sanction will be imposed, the US

0:24:09.720 --> 0:24:12.280
<v Speaker 1>government will see whether that sanction is having the impact

0:24:12.280 --> 0:24:14.359
<v Speaker 1>that they wanted to, and then if it's not, an

0:24:14.400 --> 0:24:17.280
<v Speaker 1>additional sanction might be imposed. But you're absolutely right here.

0:24:17.280 --> 0:24:19.960
<v Speaker 1>In the last week or so with the Russia stanctions program,

0:24:20.200 --> 0:24:24.360
<v Speaker 1>it's just been a deluge of individual sanctions but all

0:24:24.440 --> 0:24:27.040
<v Speaker 1>kind of at the same time, and having to wrap

0:24:27.080 --> 0:24:29.520
<v Speaker 1>your arms around exactly what all those mean and what's

0:24:29.520 --> 0:24:33.000
<v Speaker 1>the landscape looked like from various perspectives. It's not just

0:24:33.520 --> 0:24:36.320
<v Speaker 1>U S sanctions, it's e U S sanctions, its UK sanctions.

0:24:36.600 --> 0:24:39.720
<v Speaker 1>Countries around the world are imposing sanctions on Russia, and

0:24:39.760 --> 0:24:42.639
<v Speaker 1>so it really is a multinational effort that you need

0:24:42.680 --> 0:24:45.359
<v Speaker 1>to be thinking about when you're thinking about multinational companies

0:24:45.400 --> 0:24:48.920
<v Speaker 1>engaging in transactions with Russia. Have the Treasury and Commerce

0:24:48.960 --> 0:24:53.560
<v Speaker 1>Departments made it clear what the new restrictions are in

0:24:53.640 --> 0:24:57.560
<v Speaker 1>many ways, Yet there was a period of chaos, you know,

0:24:57.680 --> 0:25:01.000
<v Speaker 1>last week when the sanctions started to come out, primarily

0:25:01.040 --> 0:25:05.000
<v Speaker 1>because they were coming out in a fast and unpredictable way.

0:25:05.359 --> 0:25:08.080
<v Speaker 1>And I think it wasn't necessarily that the types of

0:25:08.160 --> 0:25:11.480
<v Speaker 1>sanctions that were being imposed were difficult to understand. It

0:25:11.600 --> 0:25:13.840
<v Speaker 1>was just the number and the sheer volume of them,

0:25:13.840 --> 0:25:16.639
<v Speaker 1>and making sure that folks were wrapping their arms around

0:25:16.680 --> 0:25:19.560
<v Speaker 1>everything that applies. And I think, now, you know, here

0:25:19.600 --> 0:25:22.600
<v Speaker 1>we are a number of days after the first sanctions

0:25:22.600 --> 0:25:24.719
<v Speaker 1>came into place, I think we're starting to get a

0:25:24.760 --> 0:25:27.920
<v Speaker 1>better sense of what the landscape looks like. The landscapes

0:25:27.960 --> 0:25:31.639
<v Speaker 1>starting to become much clearer with respect to the rules

0:25:31.680 --> 0:25:34.439
<v Speaker 1>of the road, at least as they are today, And

0:25:34.480 --> 0:25:38.480
<v Speaker 1>I think as new sanctions continue to be imposed, it's

0:25:38.560 --> 0:25:42.040
<v Speaker 1>much easier to wrap your arms around how that particular

0:25:42.080 --> 0:25:46.640
<v Speaker 1>sanctions bolts onto, if you will, the existing sanctions programs

0:25:46.800 --> 0:25:49.960
<v Speaker 1>and becomes quite frankly, just the piece of the sanctions pie.

0:25:50.280 --> 0:25:52.080
<v Speaker 1>So clients I think are getting a little bit more

0:25:52.080 --> 0:25:56.080
<v Speaker 1>comfortable with understanding exactly what the contours of the sanctions are.

0:25:56.160 --> 0:25:59.840
<v Speaker 1>Of course, all subjects to change if new sanctions are imposed.

0:26:00.080 --> 0:26:04.120
<v Speaker 1>Can you broadly describe the sanctions US companies are dealing with?

0:26:04.720 --> 0:26:07.800
<v Speaker 1>They sort of fall into two primary buckets, if you will,

0:26:07.840 --> 0:26:10.119
<v Speaker 1>And one is there are a number of parties in

0:26:10.200 --> 0:26:13.840
<v Speaker 1>Russia that have been subjects to blocking sanctions, a number

0:26:13.880 --> 0:26:17.679
<v Speaker 1>of Russian financial institutions, a number of Russian individuals. Those

0:26:17.840 --> 0:26:21.360
<v Speaker 1>entities and individuals are off limits for US companies as

0:26:21.359 --> 0:26:24.280
<v Speaker 1>a general matter, and so US companies need to understand

0:26:24.280 --> 0:26:27.639
<v Speaker 1>the extent to which they have relationships or other exposure

0:26:27.880 --> 0:26:31.439
<v Speaker 1>to those entities and individuals in take appropriate action. The

0:26:31.560 --> 0:26:35.320
<v Speaker 1>second bucket are entities that are not subject to these

0:26:35.359 --> 0:26:40.840
<v Speaker 1>so called comprehensive blocking SDN sanctions, but more limited perhaps

0:26:41.000 --> 0:26:44.800
<v Speaker 1>debt and equity related restrictions. And so US companies are

0:26:44.840 --> 0:26:48.600
<v Speaker 1>not prohibited from engaging in transactions with those entities, but

0:26:48.720 --> 0:26:51.520
<v Speaker 1>they are prohibited from engaging in certain types of activities

0:26:51.560 --> 0:26:54.119
<v Speaker 1>with those entities, and making sure that what the U.

0:26:54.200 --> 0:26:56.960
<v Speaker 1>S company is doing doesn't cross over the line of,

0:26:57.040 --> 0:26:59.960
<v Speaker 1>for example, providing new debt or equities to those entities.

0:27:00.359 --> 0:27:02.840
<v Speaker 1>So what are your clients calling you about or what

0:27:02.880 --> 0:27:06.120
<v Speaker 1>are they most confused about? We do get questions all

0:27:06.160 --> 0:27:08.600
<v Speaker 1>over the map. You know, some are easier than others.

0:27:08.640 --> 0:27:11.840
<v Speaker 1>Some require judgment calls because there's just, you know, lack

0:27:11.920 --> 0:27:15.400
<v Speaker 1>of clarity. There's potentially some uncertainty with respect to whether

0:27:15.400 --> 0:27:18.840
<v Speaker 1>a particular activity is covered by sanctions. But we usually

0:27:18.840 --> 0:27:21.879
<v Speaker 1>start with the basics. In the basics are along the

0:27:21.920 --> 0:27:26.240
<v Speaker 1>lines of, well, what jurisdiction does this particular activity or

0:27:26.240 --> 0:27:30.919
<v Speaker 1>this transaction fall under. If it falls under U S jurisdiction,

0:27:31.080 --> 0:27:34.480
<v Speaker 1>for example, it involves a US company, or the transaction

0:27:34.560 --> 0:27:37.240
<v Speaker 1>is going to be processed in US dollars, here's the

0:27:37.280 --> 0:27:40.560
<v Speaker 1>set of rules that apply as of today. If the

0:27:40.600 --> 0:27:44.440
<v Speaker 1>transaction doesn't involve US jurisdiction, but it involves UK jurisdiction

0:27:44.560 --> 0:27:48.880
<v Speaker 1>or EU jurisdiction. It's helping companies understand exactly what set

0:27:48.920 --> 0:27:52.280
<v Speaker 1>of rules apply to them on a case by case basis.

0:27:52.440 --> 0:27:54.399
<v Speaker 1>And then once we kind of have an understanding of

0:27:54.400 --> 0:27:58.240
<v Speaker 1>what those particular rules that apply are, does this transaction

0:27:58.359 --> 0:28:00.960
<v Speaker 1>or some party that's involved in the trans actions trip

0:28:01.080 --> 0:28:03.199
<v Speaker 1>any of these sanctions and if so, what do we

0:28:03.280 --> 0:28:05.439
<v Speaker 1>do about it? Is it a nonstarter? Can we just

0:28:05.520 --> 0:28:08.719
<v Speaker 1>not complete the transaction or their ways the transaction can

0:28:08.760 --> 0:28:12.080
<v Speaker 1>be completed that are undertaken in compliance with, you know,

0:28:12.119 --> 0:28:17.040
<v Speaker 1>the applicable sanctions regime. So a US company that was

0:28:17.080 --> 0:28:21.159
<v Speaker 1>in the process of making an acquisition in Russia or

0:28:22.240 --> 0:28:25.840
<v Speaker 1>a joint venture with a company in Russia, does that

0:28:25.920 --> 0:28:30.200
<v Speaker 1>have to stop or does it depend? It depends if

0:28:30.240 --> 0:28:35.200
<v Speaker 1>if those transactions don't involve any sanctioned parties um or

0:28:35.240 --> 0:28:37.960
<v Speaker 1>if it does involve a stanction party, if the particular

0:28:38.040 --> 0:28:40.560
<v Speaker 1>sanctions that apply to that party are not implicated by

0:28:40.560 --> 0:28:45.040
<v Speaker 1>the transaction, there's no legal prohibition on continuing and pushing

0:28:45.080 --> 0:28:48.440
<v Speaker 1>forward on those types of transactions. But what we've seen

0:28:48.520 --> 0:28:51.320
<v Speaker 1>by and large with our experience with clients that were

0:28:51.840 --> 0:28:57.080
<v Speaker 1>in those situations for you know, perhaps non legal reasons,

0:28:57.520 --> 0:29:00.800
<v Speaker 1>waiting to see how the situation unfold, to make sure

0:29:00.840 --> 0:29:04.400
<v Speaker 1>that no additional sanctions could impact the transaction. We've seen

0:29:04.440 --> 0:29:08.960
<v Speaker 1>a lot of pullback, people pressing pause on those transactions

0:29:09.000 --> 0:29:11.000
<v Speaker 1>to wait to see how things shake out so that

0:29:11.040 --> 0:29:14.080
<v Speaker 1>they can feel comfortable. But if they do proceed forward

0:29:14.080 --> 0:29:18.280
<v Speaker 1>with the transaction that one's allowed under the current rules

0:29:18.320 --> 0:29:21.520
<v Speaker 1>into there won't be some drastic change in the rules

0:29:21.760 --> 0:29:23.760
<v Speaker 1>a week from now, two weeks from now that could

0:29:23.760 --> 0:29:29.560
<v Speaker 1>significantly change the ability to complete that transaction. What government agency,

0:29:29.600 --> 0:29:34.760
<v Speaker 1>if ANNIE is looking at the compliance with sanctions, So

0:29:34.880 --> 0:29:37.440
<v Speaker 1>from a US perspective, it's the U. S. Department of

0:29:37.520 --> 0:29:41.240
<v Speaker 1>the Treasury, Office of Foreign Assets Control. That's the agency

0:29:41.360 --> 0:29:45.000
<v Speaker 1>within the US Treasury Department that's charged with implementing and

0:29:45.120 --> 0:29:48.800
<v Speaker 1>enforcing these sanctions UM. And so that's the entity that

0:29:49.240 --> 0:29:52.800
<v Speaker 1>you would go before. For example, if you believe you

0:29:52.840 --> 0:29:57.040
<v Speaker 1>may have violated sanctions, there's a possibility to disclose those

0:29:57.080 --> 0:29:59.400
<v Speaker 1>sanctions to the U. S. Government and you get credit

0:29:59.840 --> 0:30:03.400
<v Speaker 1>for doing so. Um. Other times, O fact will otherwise

0:30:03.440 --> 0:30:07.400
<v Speaker 1>become aware of potential activities that could potentially result in

0:30:07.520 --> 0:30:10.960
<v Speaker 1>violations of sanctions and reach out to the parties to

0:30:11.000 --> 0:30:15.240
<v Speaker 1>develop additional information. The interesting piece from a US perspective

0:30:15.320 --> 0:30:18.320
<v Speaker 1>is it is it's just not thinking about am I

0:30:18.560 --> 0:30:22.720
<v Speaker 1>violating U S. Sanctions. The US also has so called

0:30:22.800 --> 0:30:26.880
<v Speaker 1>secondary sanctions that it can impose, and these are sanctions

0:30:26.920 --> 0:30:29.920
<v Speaker 1>that provide the US government with the authority to impose

0:30:29.960 --> 0:30:35.000
<v Speaker 1>sanctions on non US parties for engaging in activities wholly

0:30:35.000 --> 0:30:39.480
<v Speaker 1>outside of US jurisdiction if those activities are targeted under

0:30:39.480 --> 0:30:43.640
<v Speaker 1>secondary sanctions, and there are a number of secondary sanctions

0:30:43.640 --> 0:30:46.680
<v Speaker 1>authorities that apply to Russia. And so when we're advising

0:30:47.280 --> 0:30:49.959
<v Speaker 1>non US companies, it's not just a matter of making

0:30:50.000 --> 0:30:53.560
<v Speaker 1>sure that what they're doing is outside US jurisdiction, but

0:30:53.640 --> 0:30:56.920
<v Speaker 1>it's also advising on the extent to which there's secondary

0:30:56.960 --> 0:31:00.440
<v Speaker 1>sanctions risk. For example, if there's a U S sanctioned

0:31:00.520 --> 0:31:04.520
<v Speaker 1>party involved, that creates potential risk of secondary sanctions for

0:31:04.680 --> 0:31:07.720
<v Speaker 1>engaging in transactions with that particular party, even if it's

0:31:07.760 --> 0:31:12.000
<v Speaker 1>undertaken wholly outside of US jurisdiction. If a company or

0:31:12.040 --> 0:31:15.880
<v Speaker 1>a person violates sanctions, does the Justice Department ever go

0:31:16.000 --> 0:31:22.800
<v Speaker 1>after them? Yes, there are potential civil penalties for sanctions violations.

0:31:22.840 --> 0:31:26.360
<v Speaker 1>Typically civil related penalties are handled at the OH fact

0:31:26.400 --> 0:31:30.040
<v Speaker 1>at the Treasury agency level, but there also are potential

0:31:30.040 --> 0:31:34.560
<v Speaker 1>criminal penalties for violations of sanctions for you know, willful conduct.

0:31:34.720 --> 0:31:37.960
<v Speaker 1>In those circumstances, you would see the Department of Justice

0:31:38.000 --> 0:31:41.560
<v Speaker 1>intervene when you're talking about potential criminal penalties. But it

0:31:41.600 --> 0:31:44.400
<v Speaker 1>sounds like what's happening now is a lot of confusion

0:31:44.720 --> 0:31:48.480
<v Speaker 1>rather than willful exactly. And these are you know, unfortunately

0:31:48.480 --> 0:31:51.800
<v Speaker 1>the U S. Sanctions are strict liability laws, and so

0:31:51.920 --> 0:31:56.320
<v Speaker 1>from a civil liability perspective, there's no intent required to

0:31:56.400 --> 0:31:59.480
<v Speaker 1>violate sanctions. If you violate sanctions, you violate sanctions whether

0:31:59.520 --> 0:32:02.040
<v Speaker 1>you intend to who are not. And you know, what

0:32:02.120 --> 0:32:05.920
<v Speaker 1>we see oftentimes from o FAX perspective is that you know,

0:32:06.000 --> 0:32:10.240
<v Speaker 1>they use their enforcement discretion in those cases. So if

0:32:10.280 --> 0:32:13.520
<v Speaker 1>it really is a situation where you know, the party

0:32:13.600 --> 0:32:16.880
<v Speaker 1>was really trying to just understand the sanctions was an

0:32:16.920 --> 0:32:20.760
<v Speaker 1>inadvertent violation, but it's still nonetheless a violation, you may

0:32:20.800 --> 0:32:24.880
<v Speaker 1>not see o FAX pursue a penalty action in that case. Um,

0:32:24.880 --> 0:32:27.560
<v Speaker 1>but may you know, decide to issue what we call

0:32:27.960 --> 0:32:31.400
<v Speaker 1>a warning letter for example, recognizing and acknowledging that a

0:32:31.480 --> 0:32:35.360
<v Speaker 1>violation occurred, but not pursuing any sort of civil enforcement.

0:32:36.080 --> 0:32:39.040
<v Speaker 1>All these questions mean a lot of legal work and

0:32:39.120 --> 0:32:43.320
<v Speaker 1>lawyers like you being inundated with calls. It means that

0:32:43.400 --> 0:32:46.920
<v Speaker 1>my calendar is full of thirty to sixty minute calls,

0:32:47.000 --> 0:32:49.240
<v Speaker 1>back to back to back, starting early in the morning,

0:32:49.240 --> 0:32:51.600
<v Speaker 1>going until late at night. If there are no more

0:32:51.640 --> 0:32:56.080
<v Speaker 1>sanctions imposed, how long do you think before this becomes

0:32:56.080 --> 0:32:59.440
<v Speaker 1>just a simple process for you and people start to

0:32:59.520 --> 0:33:02.280
<v Speaker 1>understand and what's going on? Or is that not going

0:33:02.320 --> 0:33:05.920
<v Speaker 1>to happen for quite some time. Yeah, it's a good question.

0:33:06.080 --> 0:33:08.840
<v Speaker 1>I was actually thinking about that earlier today, and how

0:33:08.920 --> 0:33:10.959
<v Speaker 1>long my life is going to be like this? And

0:33:11.000 --> 0:33:13.920
<v Speaker 1>I think, you know, if no more sanctions are imposed,

0:33:13.960 --> 0:33:15.920
<v Speaker 1>you know, it's tough to you know, definitely say for sure,

0:33:15.960 --> 0:33:19.200
<v Speaker 1>but I would say within a matter of weeks, maybe

0:33:19.240 --> 0:33:21.520
<v Speaker 1>a month, I think folks will you know, I think

0:33:21.560 --> 0:33:24.360
<v Speaker 1>the initial chaos will die down. Folks will have a

0:33:24.360 --> 0:33:26.480
<v Speaker 1>good sense of at least how the sanctions apply to

0:33:26.640 --> 0:33:29.000
<v Speaker 1>them UM and can move forward, and they will have

0:33:29.040 --> 0:33:32.720
<v Speaker 1>done all their contingency planning UM and implemented the various

0:33:32.760 --> 0:33:35.160
<v Speaker 1>measures that they've you know, they thought about implementing the

0:33:35.240 --> 0:33:39.200
<v Speaker 1>mitigate or eliminate their risks. So I don't think three

0:33:39.240 --> 0:33:41.080
<v Speaker 1>months from now, my my schedule is going to be

0:33:41.120 --> 0:33:44.520
<v Speaker 1>as full on Russia's sanctions questions is today. But you know,

0:33:44.560 --> 0:33:46.400
<v Speaker 1>I think there's certainly going to be a number of

0:33:46.400 --> 0:33:49.840
<v Speaker 1>additional weeks from here where companies are still trying to

0:33:49.840 --> 0:33:52.000
<v Speaker 1>wrap their arms around the extent to which these apply

0:33:52.160 --> 0:33:55.160
<v Speaker 1>to them. Well, thanks for taking our call, Chase. That's

0:33:55.240 --> 0:33:58.200
<v Speaker 1>Chase Kinnicky of Cleary Guttlieb, And that's it for this

0:33:58.320 --> 0:34:01.080
<v Speaker 1>edition of The Bloomberg Law Show. Remember you can always

0:34:01.080 --> 0:34:04.000
<v Speaker 1>get the latest legal news on our Bloomberg Law Podcast.

0:34:04.280 --> 0:34:07.280
<v Speaker 1>You can find them on Apple Podcasts, Spotify, and at

0:34:07.480 --> 0:34:12.480
<v Speaker 1>www dot Bloomberg dot com, slash podcast Slash Law, and

0:34:12.560 --> 0:34:15.279
<v Speaker 1>remember to tune into The Bloomberg Law Show every week

0:34:15.440 --> 0:34:18.960
<v Speaker 1>night at ten pm Wall Street Time. I'm June Grosso,

0:34:19.120 --> 0:34:20.719
<v Speaker 1>and you're listening to Bloomberg