WEBVTT - Environmental Cases in Supreme Court's New Term

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<v Speaker 1>This is Bloomberg Law with June Bresso from Bloomberg Radio.

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<v Speaker 1>The Supreme Court's new term began today and there are

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<v Speaker 1>two high profile cases coming up this week, a case

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<v Speaker 1>involving a challenge to the regulation of ghost guns tomorrow

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<v Speaker 1>and a death penalty case on Wednesday. Next week, the

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<v Speaker 1>Court will take up the first of three environmental law

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<v Speaker 1>cases on the docket so far. Joining me is an

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<v Speaker 1>expert in environmental law, Pat Parento, a professor at the

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<v Speaker 1>Vermont Law and Graduate School. Pat, I want to begin

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<v Speaker 1>with a case the Supreme Court did not take on Friday.

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<v Speaker 1>It refused to stop Biden administration crackdown on methane emissions.

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<v Speaker 1>Were you surprised by that?

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<v Speaker 2>I wasn't really surprised. The course, we're always holding our

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<v Speaker 2>breath on whether the Court will issue a stay of

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<v Speaker 2>these rules that have major impacts even before there's been

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<v Speaker 2>a court ruling. But the methane rule is so grounded

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<v Speaker 2>in EPA's traditional authority to regulate pollution from the oil

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<v Speaker 2>and gas industry that I would have been really depressed

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<v Speaker 2>had they put a stay on that particular rule. But

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<v Speaker 2>I wasn't surprised that they.

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<v Speaker 1>Did, and just explain the rule before we move on.

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<v Speaker 2>So you know, this is a rule that applies to

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<v Speaker 2>the extraction primarily of gas, which is methane. About seventy

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<v Speaker 2>plus percent of quote natural gas is actually methane, and

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<v Speaker 2>in the process of drilling for it and extracting it

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<v Speaker 2>and transporting it, of course you get a lot of emission.

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<v Speaker 2>Sometimes the emissions they actually flare, you know, because gas

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<v Speaker 2>and oil are oftentimes found in the same deposits. The

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<v Speaker 2>gas off they just burn it off because they don't

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<v Speaker 2>want it, can't use it. But in any case, this

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<v Speaker 2>is a regulation that's designed to reduce the amount of

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<v Speaker 2>emissions that are coming off oil and gas production and

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<v Speaker 2>transportation through the use of technology to capture the gas

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<v Speaker 2>and not allow it to escape. So a pretty traditional

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<v Speaker 2>technological approach to a pollution problem.

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<v Speaker 1>The Justices did take up another environmental case on Friday

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<v Speaker 1>involving a nuclear waste storage site in Texas.

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<v Speaker 2>So this is an enormous problem. What is happening now

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<v Speaker 2>is spent fuel rods, you know, once they've reached their

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<v Speaker 2>useful life, are basically stored on site at all of

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<v Speaker 2>the nuclear power plants all across the country. There's an

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<v Speaker 2>estimated get this one hundred million tons well of spent

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<v Speaker 2>nuclear waste sitting. Sometimes they're in casks, concrete casts. Sometimes

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<v Speaker 2>they're just in containers underground in water to keep them cool. Right,

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<v Speaker 2>So this is not a good situation, right, So the

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<v Speaker 2>idea is to try to move all of this stored

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<v Speaker 2>waste on the site of these nuclear power plants to

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<v Speaker 2>what NRC Nuclear Regulatory Commission calls temporary storage facilities. But

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<v Speaker 2>of course we know that once that waste reaches these

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<v Speaker 2>so called temporary facilities, that's where they're going to stay.

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<v Speaker 2>And one of these facilities is located in Texas, that's

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<v Speaker 2>the subject of the case that the Supreme Court has

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<v Speaker 2>just taken. There's another one proposed across the border in

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<v Speaker 2>New Mexico, in a very rural, actually minority community in

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<v Speaker 2>southeastern New Mexico. So there are two of these proposed

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<v Speaker 2>interim storage facilities that are involved in this case that

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<v Speaker 2>the Supreme Court has taken. All of this, by the way,

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<v Speaker 2>relates to the failure of the proposed Yucca Mountain facility

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<v Speaker 2>that was going to be built in Nevada that was

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<v Speaker 2>going to hold all of the nation's nuclear waste, right,

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<v Speaker 2>and of course that never happened as a result of

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<v Speaker 2>political opposition in Nevada which could never be overcome in Congress.

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<v Speaker 2>So the situation we have is we have a lot

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<v Speaker 2>of nuclear waste and no place to put it. And

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<v Speaker 2>now the Supreme Court has decided to weigh in on

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<v Speaker 2>the case in Texas.

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<v Speaker 1>So I can understand why a state wouldn't want to

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<v Speaker 1>have a nuclear waste facility there. But what is the

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<v Speaker 1>argument that Texas used.

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<v Speaker 2>It's a very complicated argument. There are two parts to it,

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<v Speaker 2>and the Court has taken review at both of them.

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<v Speaker 2>One has to do with whether Texas can actually challenge

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<v Speaker 2>the NRC's approval of the waste disposal facility because Texas

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<v Speaker 2>didn't participate in the very detailed and lengthy administrative proceeding.

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<v Speaker 2>It's like a trial. It's a formal adjudication, but it's

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<v Speaker 2>done by an administrative logidge right instead of a court.

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<v Speaker 2>Texas didn't become a party to that process, and so

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<v Speaker 2>the government is arguing Texas doesn't have standing, if you

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<v Speaker 2>want to put it that way. But in any event,

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<v Speaker 2>they don't have the right to challenge a decision when

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<v Speaker 2>they didn't participate in the administrative proceeding. Texas's response, Attorney

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<v Speaker 2>General packs and responses, Yeah, we didn't because it was

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<v Speaker 2>real complicated and difficult to do. And in any case,

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<v Speaker 2>you know, NRC never had the authority to approve this

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<v Speaker 2>facility anyway. It's what we call an ultra bery's decision,

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<v Speaker 2>a decision on which they have no authority. And there

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<v Speaker 2>is at least theoretically an exception to the requirement that

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<v Speaker 2>you participate in these administrative proceedings if the agency never

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<v Speaker 2>had the authority to do it in the first place. Right,

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<v Speaker 2>So that's argument number one. It's under what's called the

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<v Speaker 2>Hobbs Act, and it's an exception to the requirement of

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<v Speaker 2>participation in that process. So that's argument number one. Can

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<v Speaker 2>Texas actually bring this challenge? But argument number two is

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<v Speaker 2>the big one, and that is that NRC does not

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<v Speaker 2>have the authority at all to approve these so called

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<v Speaker 2>temporary or interim storage facilities. The only authoritiesas Texas that

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<v Speaker 2>NRC has is to authorize storage on site at these

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<v Speaker 2>individual nuclear power plants. They can do whatever they want

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<v Speaker 2>with regard to how the waste is stored on site

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<v Speaker 2>or storage at Yucka Mountain, which, as I've just said,

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<v Speaker 2>has never been approved and is actually not available. Texas's

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<v Speaker 2>argument is NRC can't create these sort of satellite you know,

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<v Speaker 2>nuclear waste facilities all over the country, moving this waste

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<v Speaker 2>thousands of miles, you know, away from the way it's

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<v Speaker 2>being generated. And that's their big argument. And guess what,

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<v Speaker 2>no surprise, the Fifth Circuit agreed with Texas. Now, two

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<v Speaker 2>other circuit courts have considered this question of whether NRC

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<v Speaker 2>has this authority and reached the opposite conclusion. One of

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<v Speaker 2>them was the Tenth Circuit in the West, and one

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<v Speaker 2>of them was the DC Circuit of course, in Washington,

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<v Speaker 2>d C. And so what you have is a split

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<v Speaker 2>in the circuits. Another reason, of course, why the court

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<v Speaker 2>would take a case like this. But what the Fifth

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<v Speaker 2>Circuit did in agreeing with Texas is it invoked here

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<v Speaker 2>it comes the major question doctrine. So is relying on

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<v Speaker 2>the West Virginia versus EPA decision, the very controversial decision

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<v Speaker 2>which struck down EPA's clean Power plan for greenhouse gas emissions,

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<v Speaker 2>of course, and so the oil and gas industry in

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<v Speaker 2>Texas is jumping on board because where this waste disposal

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<v Speaker 2>facility would be located is in the Peance basin of

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<v Speaker 2>Texas where all the oil and gas is and they're

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<v Speaker 2>afraid that if anything were to go wrong. Of course,

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<v Speaker 2>what could go wrong with a nuclear waste disposal facility,

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<v Speaker 2>It would screw up their oil and gas development. So

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<v Speaker 2>this case has all kinds of layers, but at the

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<v Speaker 2>core of it legally is is the Supreme Court once

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<v Speaker 2>again going to strike down an agency's authority under this

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<v Speaker 2>major question doctrine.

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<v Speaker 1>Pat though that they took this to overturn the Fifth Circuit.

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<v Speaker 2>I think so, and in fact, on the merits, I

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<v Speaker 2>think Texas is overreaching here. I think the Court is

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<v Speaker 2>going to be persuaded that because NRC has been approving

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<v Speaker 2>these facilities before, there are some factual distinctions between what

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<v Speaker 2>NRC has done before. But legally NRC has invoked this authority,

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<v Speaker 2>two other circuits have upheld it. And the truth is

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<v Speaker 2>that letting all of this waste remain in all of

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<v Speaker 2>these locations, many of these plants, like the one here

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<v Speaker 2>in Vermont, the Vermont Yankee Plant has been closed for

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<v Speaker 2>eight years now, you know, so many of these plants

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<v Speaker 2>are closed. Just leaving the waste at these plant locations

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<v Speaker 2>is not a good idea. So actually, I think on

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<v Speaker 2>the merits, the Supreme Court may be persuaded. The Fifth

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<v Speaker 2>Circuit has myth applied our major question doctor. Remember Roberts

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<v Speaker 2>said it was an extraordinary doctor, meaning the once in

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<v Speaker 2>a blue moon doctrine, not an everyday doctor. So maybe

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<v Speaker 2>the Supreme Court is going to put some limit on

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<v Speaker 2>the major question doctrine. Conversely, the Supreme Court might stay

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<v Speaker 2>at Texas book. When there's an administrative process and you

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<v Speaker 2>choose not to participate, you're out of court. So I

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<v Speaker 2>think Texas has a tough case.

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<v Speaker 1>Coming up next. More about the Supreme Court's environmental dock

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<v Speaker 1>at this term. This is Bloomberg. The Supreme Court has

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<v Speaker 1>three environmental cases on the dock at this term so far.

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<v Speaker 1>I've been talking to environmental law professor Pat Parento of

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<v Speaker 1>the Vermont Lawn Graduate School. Let's move from Texas to

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<v Speaker 1>San Francisco. Now, this is surprising because you think of

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<v Speaker 1>San Francisco in California as being one of the cities

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<v Speaker 1>and states that are on the cutting edge of environmental regulations.

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<v Speaker 1>At least that's the way I think of them anyway.

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<v Speaker 2>So it's one of the most liberal cities in the country.

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<v Speaker 1>Yeah, So San franci le Go is suing the EPA.

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<v Speaker 2>So it's a reflection of San Francisco's terrible financial situation

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<v Speaker 2>because what they're dealing with or what are called combined

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<v Speaker 2>sewer overflows, and of course these are the combination of

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<v Speaker 2>sewage and stormwater facilities in a major city like San Francisco,

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<v Speaker 2>and they were built at a time when they didn't

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<v Speaker 2>separate the sewage from the storm water, so they were combined.

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<v Speaker 2>So when it rains really heavily, all of that untreated

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<v Speaker 2>waste goes into the river or in San Francisco's case,

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<v Speaker 2>into the ocean. So it's a huge problem. Many different

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<v Speaker 2>cities have dealt with it in different ways. I was

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<v Speaker 2>actually involved at one time in a lawsuit against the

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<v Speaker 2>City of Portland, which didn't have a solution to its

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<v Speaker 2>combined sewer overflow problems. Now it does, in part, I think,

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<v Speaker 2>because of our lawsuit. But our lawsuit actually established the

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<v Speaker 2>precedent that that issue in the San Francisco case, and

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<v Speaker 2>it has to do with what are called narrative standards

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<v Speaker 2>that are contained in the wastewater discharge permits under the

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<v Speaker 2>Clean Water Act. And what it basically says is because

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<v Speaker 2>combined sewer overflows contain basically a soup of pollutants, a

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<v Speaker 2>toxic soup of plutiness. If you think about everything on

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<v Speaker 2>a city's streets, parking lots, if you think about all

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<v Speaker 2>the industrial sites that might be within an urban boundary,

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<v Speaker 2>and when it rains really heavily, all of that crap

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<v Speaker 2>comes off of all of those impervious is that a

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<v Speaker 2>technical term, that's a technical term, that's legal term, is

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<v Speaker 2>not defined in the Clean Water Act. But all the

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<v Speaker 2>junk and crap and yick it comes off a city street,

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<v Speaker 2>all that goes through these CSOs into the water. Okay,

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<v Speaker 2>So you can't come up with a single technology, is

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<v Speaker 2>the point. You can't come up with a numerical standard

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<v Speaker 2>that says, reduce this pollutant by x part per million

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<v Speaker 2>or whatever the standard is, right, So what you have

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<v Speaker 2>to do is say you have to manage that effluent

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<v Speaker 2>by whatever means you can, best management practices, building detention

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<v Speaker 2>facilities to hold some of the rain water before it

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<v Speaker 2>has to be treated so that it doesn't run right

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<v Speaker 2>off into the ocean and so forth. So you have

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<v Speaker 2>to come up with a more sophisticated control program, very

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<v Speaker 2>expensive though you can separate the sewage from the storm water,

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<v Speaker 2>but that means tearing up the existing system, and that's

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<v Speaker 2>incredibly disruptive and expensive, and why San Francisco doesn't really

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<v Speaker 2>want to do it right. But the point is that

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<v Speaker 2>these narrative standards that you must comply with water quality standards.

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<v Speaker 2>We can't give you a specific number. We can tell

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<v Speaker 2>you you're going to have to have a system that

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<v Speaker 2>maintains and doesn't violate water quality standards, which are based

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<v Speaker 2>on uses of water, swimming, fishing, drinking fish, and wildlife whatever.

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<v Speaker 2>There's lots of different beneficial uses of water that we

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<v Speaker 2>put into these so called water quality standards. Every one

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<v Speaker 2>of the national permits that are administered by the state,

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<v Speaker 2>but their EPA derived permits, every one of them has

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<v Speaker 2>to have a condition requiring compliance with water quality standards.

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<v Speaker 2>That's what was being enforced by EPA in the San

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<v Speaker 2>Francisco case. And San Francisco is basically arguing EPA has

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<v Speaker 2>no authority to require compliance with anything other than numerical

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<v Speaker 2>standards that are subject to technological controls.

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<v Speaker 1>Is there Supreme Court precedent in this area?

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<v Speaker 2>The Supreme Court in two different cases, one of which

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<v Speaker 2>was written by the late Justice O'Connor in a case

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<v Speaker 2>in Washington. We call it PUD number one of Jefferson

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<v Speaker 2>County versus the State of Washington's Environmental Board. And in

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<v Speaker 2>that case, Justice O'Connor very explicitly said, narrative standards are fine,

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<v Speaker 2>and you must comply with water quality standards. And that

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<v Speaker 2>means controlling anything that's going into the water that you

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<v Speaker 2>can control, whether or not it's through technology or land juice,

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<v Speaker 2>means whether it means maintaining certain flows of water you

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<v Speaker 2>know that will dilute some of the pollutants and maintain

0:14:26.640 --> 0:14:29.320
<v Speaker 2>these uses and so forth. So that was one of

0:14:29.360 --> 0:14:31.720
<v Speaker 2>the decisions. Then there was a later one, the name

0:14:31.760 --> 0:14:33.960
<v Speaker 2>of which escaped me at the moment, But there was

0:14:34.000 --> 0:14:38.680
<v Speaker 2>another case in which the Supreme Court upheld narrative standards

0:14:39.200 --> 0:14:42.000
<v Speaker 2>under the Clean Water Act. There's a provision in the Act,

0:14:42.040 --> 0:14:47.400
<v Speaker 2>it's section thirteen eleven that explicitly authorizes EPA to set

0:14:47.520 --> 0:14:52.720
<v Speaker 2>other limitations, not just technology effluent limitations, but quote other

0:14:52.800 --> 0:14:58.880
<v Speaker 2>limitations necessary to protect water quality and water quality standards. So, frankly,

0:14:59.080 --> 0:15:05.680
<v Speaker 2>if the Supreme follows its textualist approach to interpreting the statute,

0:15:06.000 --> 0:15:10.080
<v Speaker 2>it should uphold the Ninth Circuit. Now, we know the

0:15:10.160 --> 0:15:14.840
<v Speaker 2>Supreme Court rarely upholds the Ninth Circuit, right, so probably,

0:15:15.320 --> 0:15:17.520
<v Speaker 2>if you're a betting person, you would have to say

0:15:17.960 --> 0:15:20.400
<v Speaker 2>EPA is probably going to lose. It seems like EPA,

0:15:20.800 --> 0:15:24.760
<v Speaker 2>you know, oftentimes loses in this court. So we won't

0:15:24.800 --> 0:15:29.560
<v Speaker 2>know exactly why or how the Supreme Court might decide

0:15:29.600 --> 0:15:32.200
<v Speaker 2>this case, but I think it could if it really

0:15:32.200 --> 0:15:34.800
<v Speaker 2>looks at the language of the statue and the way

0:15:34.840 --> 0:15:38.680
<v Speaker 2>it's been interpreted by the Court in previous cases, it

0:15:38.760 --> 0:15:40.920
<v Speaker 2>may in the end uphold the Ninth Circuit.

0:15:41.560 --> 0:15:46.600
<v Speaker 1>Do you think though, that the Supreme Court's continuing attempt

0:15:46.640 --> 0:15:49.680
<v Speaker 1>to limit agency power and low or bride, you know,

0:15:49.920 --> 0:15:52.440
<v Speaker 1>throwing away the Chevron doctrine, do you think that would

0:15:52.440 --> 0:15:53.480
<v Speaker 1>play in this case?

0:15:54.000 --> 0:15:56.840
<v Speaker 2>Well, they're not relying in this case. EPA is not

0:15:57.000 --> 0:16:02.040
<v Speaker 2>relying on Chevron. That would be foolies, wouldn't it. They're

0:16:02.040 --> 0:16:04.720
<v Speaker 2>basically saying this is the best reading of the statute.

0:16:04.720 --> 0:16:07.640
<v Speaker 2>In fact, what EBA is arguing is it's the only

0:16:08.120 --> 0:16:11.760
<v Speaker 2>reading of the statue. Now, if the Supreme Court can

0:16:11.840 --> 0:16:14.800
<v Speaker 2>find a way around the plain text of the statue,

0:16:15.240 --> 0:16:18.200
<v Speaker 2>then we know we're in serious trouble, right. But I'm

0:16:18.240 --> 0:16:21.320
<v Speaker 2>just saying, my course, I have a bias here because

0:16:21.360 --> 0:16:23.680
<v Speaker 2>I argued this issue many years ago in the Ninth

0:16:23.680 --> 0:16:26.640
<v Speaker 2>Circuit and won it. But my view is that the

0:16:26.720 --> 0:16:31.280
<v Speaker 2>text is clear and unmistakable, and the only thing that

0:16:31.440 --> 0:16:35.720
<v Speaker 2>I thought would be vulnerable is the fact that because

0:16:35.760 --> 0:16:39.840
<v Speaker 2>these are not specific numerical standards, an argument that we

0:16:40.000 --> 0:16:43.480
<v Speaker 2>don't know what we have to do to comply might

0:16:43.520 --> 0:16:44.520
<v Speaker 2>have been a good argument.

0:16:44.840 --> 0:16:45.000
<v Speaker 3>Right.

0:16:45.560 --> 0:16:49.240
<v Speaker 2>But according to the briefing that I've just read, the

0:16:49.600 --> 0:16:53.840
<v Speaker 2>United States the Solicitor General is saying San Francisco abandoned

0:16:53.840 --> 0:16:57.800
<v Speaker 2>that argument. They didn't make that argument in the Supreme Court.

0:16:58.080 --> 0:17:00.920
<v Speaker 2>They did make that argument in the Ninth Circuit, but

0:17:01.000 --> 0:17:04.080
<v Speaker 2>they didn't preserve it and maintain it in the Supreme Court.

0:17:04.200 --> 0:17:06.639
<v Speaker 2>I'll be very interested to listen to the oral argument

0:17:06.680 --> 0:17:10.640
<v Speaker 2>on this case and see if the court, the Supreme

0:17:10.680 --> 0:17:15.760
<v Speaker 2>Court agrees that San Francisco has waived that argument, because

0:17:15.800 --> 0:17:17.919
<v Speaker 2>to me, that would have been a stronger argument.

0:17:18.000 --> 0:17:19.800
<v Speaker 1>Okay, let's move on to a case with a sort

0:17:19.840 --> 0:17:25.800
<v Speaker 1>of strange name. Seven Court Infrastructure Coalition versus Eagle County,

0:17:25.880 --> 0:17:27.639
<v Speaker 1>Colorado's say.

0:17:27.520 --> 0:17:32.399
<v Speaker 2>About well this, Unfortunately, I have to say is another

0:17:32.920 --> 0:17:36.880
<v Speaker 2>NEPA case, National Environmental Policy that case, and we all

0:17:36.920 --> 0:17:40.080
<v Speaker 2>know what nipa's track record is in the Supreme Court,

0:17:40.200 --> 0:17:44.200
<v Speaker 2>which is zero and fifteen, zero and fifteen.

0:17:44.240 --> 0:17:45.679
<v Speaker 1>I knew it was bad, but I didn't know it

0:17:45.720 --> 0:17:46.280
<v Speaker 1>was that bad.

0:17:46.520 --> 0:17:51.119
<v Speaker 2>It's that bad. There have been fifteen different cases petitions

0:17:51.119 --> 0:17:55.640
<v Speaker 2>for a review involving NEPA, and NEPA has never won

0:17:55.920 --> 0:17:58.840
<v Speaker 2>in the Supreme Court. So they're going in with a turm.

0:17:58.960 --> 0:18:00.120
<v Speaker 1>We know where the betting money.

0:18:00.400 --> 0:18:02.520
<v Speaker 2>Yeah, we know where the betting money is on that one.

0:18:02.720 --> 0:18:04.720
<v Speaker 2>But here's what the issue is. And I also have

0:18:04.840 --> 0:18:07.400
<v Speaker 2>some history with this thing too. This is the Surface

0:18:07.480 --> 0:18:14.720
<v Speaker 2>Transportation Board decision. And the STB is the reincarnation of

0:18:14.760 --> 0:18:18.399
<v Speaker 2>the old Interstate Commerce Commission, and so the law that

0:18:18.440 --> 0:18:22.320
<v Speaker 2>the STB administers is as old as the ICC, which

0:18:22.359 --> 0:18:25.919
<v Speaker 2>is the early nineteen hundreds right. Anyway, what the STB

0:18:26.119 --> 0:18:30.400
<v Speaker 2>does is license new rail line. And the rail line

0:18:30.400 --> 0:18:34.040
<v Speaker 2>here is I think eighty five miles long in Utah,

0:18:34.119 --> 0:18:37.200
<v Speaker 2>and it's moving oil, which they call something I'd never

0:18:37.240 --> 0:18:40.640
<v Speaker 2>heard of before, waxy crude oil. It's oil by any

0:18:40.720 --> 0:18:44.440
<v Speaker 2>other name from one place to another in the Uinta

0:18:44.960 --> 0:18:49.399
<v Speaker 2>Basin of Utah. And then from there it gets you know,

0:18:49.560 --> 0:18:52.040
<v Speaker 2>shipped all over the place. It gets shipped to Louisiana,

0:18:52.520 --> 0:18:55.879
<v Speaker 2>it gets shipped to Mobile, Alabama, it might even go

0:18:55.920 --> 0:18:59.520
<v Speaker 2>to the Fugit Sound. It gets into a huge network

0:18:59.560 --> 0:19:02.440
<v Speaker 2>of rail lines that take oil all over the country

0:19:02.560 --> 0:19:05.840
<v Speaker 2>to be refined and made into a variety of products,

0:19:05.880 --> 0:19:08.720
<v Speaker 2>some of which I'm sure would be burned in power plants,

0:19:08.720 --> 0:19:12.119
<v Speaker 2>some of which burned in homes, whatever, whatever products you

0:19:12.200 --> 0:19:15.680
<v Speaker 2>make out of this waxy crude oil. This rail line

0:19:15.720 --> 0:19:19.240
<v Speaker 2>simply puts it into interstate commerce and then it goes

0:19:19.320 --> 0:19:23.520
<v Speaker 2>wherever it goes. So the question in this case is

0:19:23.800 --> 0:19:28.840
<v Speaker 2>what responsibility does STB have to consider what we call

0:19:28.960 --> 0:19:33.719
<v Speaker 2>the upstream effects of this rail line, which means the

0:19:33.760 --> 0:19:38.320
<v Speaker 2>pumping and extraction of this oil product and all of

0:19:38.320 --> 0:19:44.280
<v Speaker 2>the intended environmental consequences of that, plus the downstream effects

0:19:44.400 --> 0:19:47.919
<v Speaker 2>which means where is the oil going, what is it

0:19:47.960 --> 0:19:51.119
<v Speaker 2>going to be used for? And of course, because oil

0:19:51.160 --> 0:19:55.239
<v Speaker 2>is a fossil fuel, how much carbon emissions are going

0:19:55.320 --> 0:19:59.119
<v Speaker 2>to be produced as a result of all of this

0:19:59.280 --> 0:20:03.080
<v Speaker 2>oil coming out of Utah and so ultimately being burned

0:20:03.359 --> 0:20:04.719
<v Speaker 2>in one way or another.

0:20:05.160 --> 0:20:07.280
<v Speaker 1>So where's the law right now on this.

0:20:07.840 --> 0:20:13.320
<v Speaker 2>The SDB has been subject to earlier lawsuits or refusing

0:20:13.400 --> 0:20:19.200
<v Speaker 2>to consider these upstream and downstream effects and specifically climate

0:20:19.320 --> 0:20:24.800
<v Speaker 2>change effects of moving oil, mostly oil, in some cases coal.

0:20:24.960 --> 0:20:26.800
<v Speaker 2>They also, of course move a hell of a lot

0:20:26.840 --> 0:20:31.880
<v Speaker 2>of coal by rail, and SDB lost actually a series

0:20:31.920 --> 0:20:35.199
<v Speaker 2>of cases, one of which I argued years ago, in

0:20:35.240 --> 0:20:38.960
<v Speaker 2>which you know, the course ruled no, SDB, you do

0:20:39.080 --> 0:20:43.520
<v Speaker 2>have to consider these upstream downstream effects, and you have

0:20:43.640 --> 0:20:47.320
<v Speaker 2>to make a reasonable effort to quantify the emissions that

0:20:47.359 --> 0:20:50.120
<v Speaker 2>would be generated by, you know, the fact that you're

0:20:50.119 --> 0:20:53.840
<v Speaker 2>allowing this oil to be moved by rail. Here's what's

0:20:54.040 --> 0:20:59.480
<v Speaker 2>changed in the Fiscal Responsibility Act of twenty twenty three.

0:21:00.240 --> 0:21:05.560
<v Speaker 2>Congress actually, for the first time since nineteen seventy amended NIFA,

0:21:05.920 --> 0:21:11.639
<v Speaker 2>and it did so in a way that required that agencies,

0:21:12.080 --> 0:21:14.880
<v Speaker 2>in trying to consider these sort of i'll call them

0:21:14.880 --> 0:21:21.200
<v Speaker 2>indirect effects of their agency actions, could only consider reasonably

0:21:21.280 --> 0:21:27.920
<v Speaker 2>foreseeable consequences. So the case that the Supreme Court has

0:21:28.000 --> 0:21:33.480
<v Speaker 2>taken ultimately boils down to that question, what are the

0:21:33.600 --> 0:21:41.760
<v Speaker 2>reasonably foreseeable consequences of StB's approval of this eighty five

0:21:41.960 --> 0:21:44.800
<v Speaker 2>mile rail line, and has.

0:21:44.640 --> 0:21:46.600
<v Speaker 1>The Biden administration.

0:21:46.040 --> 0:21:49.760
<v Speaker 2>Weighed in here here's where things get interesting. So the government,

0:21:50.040 --> 0:21:54.000
<v Speaker 2>you know, the Justice Department, a solicitor General has weighed

0:21:54.000 --> 0:21:58.720
<v Speaker 2>in both in support of STB but also in support

0:21:58.760 --> 0:22:02.320
<v Speaker 2>of the petitioners in the case and against the respondents,

0:22:02.359 --> 0:22:06.240
<v Speaker 2>against the environmental groups that brought the case, right, And

0:22:06.480 --> 0:22:10.399
<v Speaker 2>what the Solicitor General's brief is saying is as a

0:22:10.480 --> 0:22:16.040
<v Speaker 2>consequence in part of the twenty twenty three Amendment of NEPA,

0:22:16.320 --> 0:22:21.679
<v Speaker 2>but also arguing even more fundamentally that there has to

0:22:21.720 --> 0:22:26.800
<v Speaker 2>be a limit on an agency's responsibility to consider effects

0:22:26.840 --> 0:22:30.639
<v Speaker 2>over which it really has no control. That's what this

0:22:30.720 --> 0:22:35.000
<v Speaker 2>comes down to. I mean STB can't tell whoever's going

0:22:35.080 --> 0:22:37.399
<v Speaker 2>to get this oil what to do with it or

0:22:37.440 --> 0:22:40.800
<v Speaker 2>not do with it, right, so their authority really is

0:22:40.920 --> 0:22:44.760
<v Speaker 2>quite limited to approving or not this rail line. And

0:22:45.040 --> 0:22:48.720
<v Speaker 2>STB did actually consider some of the upstream and some

0:22:48.880 --> 0:22:51.600
<v Speaker 2>of the downstream effects. They didn't go into the detail

0:22:52.080 --> 0:22:56.320
<v Speaker 2>that the challengers wanted or that the DC Circuit, which

0:22:56.359 --> 0:22:59.439
<v Speaker 2>is the court that heard this case and the petition

0:22:59.520 --> 0:23:02.919
<v Speaker 2>for review comes from the DC Circuit. The DC Circuit

0:23:02.960 --> 0:23:05.400
<v Speaker 2>found a lot of fault with the way SDB did

0:23:05.440 --> 0:23:09.240
<v Speaker 2>it's analysis. It's a six hundred page environmental impact statement,

0:23:09.320 --> 0:23:12.119
<v Speaker 2>so it's not a small thing, right, And there's another

0:23:12.280 --> 0:23:16.880
<v Speaker 2>something like several thousand pages of comments that were delivered.

0:23:16.880 --> 0:23:19.359
<v Speaker 2>So it's a huge record, is my point. It's a

0:23:19.480 --> 0:23:23.880
<v Speaker 2>huge administrative record. It's not a case where the agency

0:23:23.920 --> 0:23:26.760
<v Speaker 2>did nothing. It's a case where the DC Circuit said

0:23:26.920 --> 0:23:30.680
<v Speaker 2>you didn't do enough. So my bet is the Supreme

0:23:30.720 --> 0:23:35.200
<v Speaker 2>Court is going to overrule the DC Circuit, uphold the STB,

0:23:35.760 --> 0:23:37.800
<v Speaker 2>and allow this line to be built.

0:23:37.920 --> 0:23:41.800
<v Speaker 1>And just for a moment, talk about the Supreme Court's

0:23:42.520 --> 0:23:47.640
<v Speaker 1>relationship with environmental laws over the last let's say ten

0:23:48.160 --> 0:23:49.440
<v Speaker 1>or fifteen years.

0:23:49.960 --> 0:23:54.080
<v Speaker 2>Well, it has not been a healthy relationship. Frankly, my

0:23:54.280 --> 0:23:58.840
<v Speaker 2>dear friend, my mentor, Oliver Howse, professor now retired Emeritus

0:23:58.920 --> 0:24:04.480
<v Speaker 2>Professor of Law Tulane University, has just written a book

0:24:04.600 --> 0:24:08.119
<v Speaker 2>that's just out, in fact, called the Most Dangerous Branch

0:24:08.160 --> 0:24:11.440
<v Speaker 2>of All. He goes through at least a dozen Supreme

0:24:11.440 --> 0:24:15.600
<v Speaker 2>Court decisions on the environment and just takes them apart

0:24:16.240 --> 0:24:21.360
<v Speaker 2>and says, as a matter of law, logic, and certainly consequence,

0:24:22.000 --> 0:24:26.880
<v Speaker 2>they have been terrible decisions for protection of the natural environment,

0:24:26.920 --> 0:24:30.959
<v Speaker 2>the human environment, public health across the board. So this

0:24:31.080 --> 0:24:35.000
<v Speaker 2>is I think the most definitive analysis by a very

0:24:35.200 --> 0:24:38.119
<v Speaker 2>very well respected scholar. I mean, he is in the

0:24:38.160 --> 0:24:42.919
<v Speaker 2>pantheon of environmental scholarship, and for someone like him to

0:24:43.200 --> 0:24:46.000
<v Speaker 2>reach a conclusion like that, it's pretty startling.

0:24:46.320 --> 0:24:49.720
<v Speaker 1>The Roberts Court certainly has not been a friend of

0:24:50.200 --> 0:24:53.800
<v Speaker 1>environmental laws or the EPA. Thanks so much, Pat for

0:24:53.840 --> 0:24:57.440
<v Speaker 1>your insights as professor. Pat Parento of the Vermont Law

0:24:57.480 --> 0:25:03.480
<v Speaker 1>and Graduate School. Broker Christine O'Reilly has sued City Group

0:25:03.840 --> 0:25:08.560
<v Speaker 1>along with her employer TPIICAP and a UK based supervisor,

0:25:08.840 --> 0:25:11.960
<v Speaker 1>alleging i CAAP encouraged her to go along with a

0:25:12.080 --> 0:25:16.800
<v Speaker 1>City trader's advances in order to keep orders flowing. In

0:25:16.880 --> 0:25:22.119
<v Speaker 1>court filings last week, both defendants denied O'Reilly's allegations and

0:25:22.320 --> 0:25:27.240
<v Speaker 1>also contended that legal deficiencies would require dismissal of many

0:25:27.280 --> 0:25:31.800
<v Speaker 1>of her claims. Citygroup denied it knew of any inappropriate

0:25:31.880 --> 0:25:35.320
<v Speaker 1>conduct and also said it couldn't be held responsible for

0:25:35.400 --> 0:25:39.040
<v Speaker 1>the alleged harassment, joining me as Bloomberg Legal reporter AVA

0:25:39.040 --> 0:25:42.000
<v Speaker 1>Benny Morrison AVA tell us about the lawsuit.

0:25:42.400 --> 0:25:46.760
<v Speaker 3>Sure, so, Christine O'Reilly was a broker at ICAP, and

0:25:46.840 --> 0:25:49.359
<v Speaker 3>she alleges that she was forced to put up with

0:25:49.600 --> 0:25:53.639
<v Speaker 3>harassment by a trader at City Group in return for

0:25:54.400 --> 0:25:58.680
<v Speaker 3>keeping a lot of flow coming into ICAP. She says

0:25:58.840 --> 0:26:03.640
<v Speaker 3>that I created a hostile work environment and encouraged her

0:26:03.760 --> 0:26:08.639
<v Speaker 3>to put up with the trader's unwanted sexual advances relentless

0:26:08.680 --> 0:26:13.159
<v Speaker 3>harassment over many years. And she says that she was

0:26:13.200 --> 0:26:16.080
<v Speaker 3>forced to do that because City Group was such a

0:26:16.119 --> 0:26:20.800
<v Speaker 3>big client for IKAT. She's also suing City for failing

0:26:20.840 --> 0:26:25.920
<v Speaker 3>to essentially protect her from this trader's behavior. And she's

0:26:25.960 --> 0:26:30.840
<v Speaker 3>also suing a supervisor at ICAP for telling her to

0:26:31.000 --> 0:26:33.200
<v Speaker 3>go along with it and to play the game.

0:26:33.760 --> 0:26:35.480
<v Speaker 1>Why is she suing City Group.

0:26:35.760 --> 0:26:38.959
<v Speaker 3>She's suing City because the trader worked at City and

0:26:39.000 --> 0:26:42.480
<v Speaker 3>she says that they failed to stop him. And she

0:26:42.720 --> 0:26:46.280
<v Speaker 3>alleges that she spoke to one of the trader's supervisors

0:26:46.320 --> 0:26:49.080
<v Speaker 3>and alerted him to the kind of things that the

0:26:49.119 --> 0:26:51.679
<v Speaker 3>trader was doing and the messages that he was sending

0:26:51.720 --> 0:26:54.040
<v Speaker 3>her at all hours of the day and night, the

0:26:54.119 --> 0:26:58.600
<v Speaker 3>constant FaceTime requests, asking for photographs of her, and just

0:26:58.760 --> 0:27:02.520
<v Speaker 3>essentially making her feel comfortable. We heard from City last week.

0:27:02.600 --> 0:27:05.240
<v Speaker 3>They filed their response in court and said, you know,

0:27:05.280 --> 0:27:08.880
<v Speaker 3>they do their best to create a safe and comfortable environment,

0:27:09.040 --> 0:27:12.399
<v Speaker 3>particularly the women, but they will be asking the judge

0:27:12.400 --> 0:27:16.520
<v Speaker 3>to dismiss the broker's claims against the bank, saying that

0:27:16.800 --> 0:27:19.160
<v Speaker 3>they didn't owe a duty to her because she didn't

0:27:19.160 --> 0:27:22.720
<v Speaker 3>work the city and they had no idea about some

0:27:22.800 --> 0:27:25.480
<v Speaker 3>of the behavior that the trader engaged in.

0:27:26.440 --> 0:27:29.080
<v Speaker 1>And how have the other defendants responded.

0:27:29.480 --> 0:27:32.360
<v Speaker 3>One of the other defendants is a woman named Janie

0:27:32.400 --> 0:27:35.800
<v Speaker 3>mccathey who was a supervisor at i CAP. We heard

0:27:35.800 --> 0:27:38.840
<v Speaker 3>from her lawyers last week and they said they would

0:27:38.880 --> 0:27:43.119
<v Speaker 3>also seek for dismissal of the claims against mccathy for

0:27:43.200 --> 0:27:46.960
<v Speaker 3>lack of jurisdiction. They said that mccafy was not Irailey's

0:27:47.080 --> 0:27:51.040
<v Speaker 3>supervisor and didn't even work for the same company. So

0:27:51.160 --> 0:27:55.240
<v Speaker 3>I think that the latter argument is based on a technicality.

0:27:55.440 --> 0:27:57.879
<v Speaker 3>You have ie Cap and then the parent company, but

0:27:57.920 --> 0:28:02.000
<v Speaker 3>then you have consideraries, and Janie McAthey is based in

0:28:02.040 --> 0:28:06.560
<v Speaker 3>London and the broker, Christine O'Reilly, is based in New York.

0:28:07.119 --> 0:28:11.359
<v Speaker 3>In i caaps very detailed response to all of the

0:28:11.359 --> 0:28:15.720
<v Speaker 3>broker's allegations. It denied most of them, but it did

0:28:15.880 --> 0:28:20.160
<v Speaker 3>admit to some of the allegations that are backed up

0:28:20.280 --> 0:28:25.920
<v Speaker 3>by documents. So that includes Jennie mccathey using an expletive

0:28:26.200 --> 0:28:30.199
<v Speaker 3>when she was talking to Christine O'Reilly at work and

0:28:30.240 --> 0:28:34.360
<v Speaker 3>in front of others, and using internal messages to essentially

0:28:34.400 --> 0:28:38.320
<v Speaker 3>call her useless, among other things. So we expect to

0:28:38.360 --> 0:28:42.800
<v Speaker 3>see motions from all three defendants City I, CAP and

0:28:42.880 --> 0:28:45.880
<v Speaker 3>Jennie mccafey asking the judge too throughout this case.

0:28:46.360 --> 0:28:51.920
<v Speaker 1>And O'Reilly is not suing the trader who allegedly harassed her.

0:28:52.680 --> 0:28:56.280
<v Speaker 3>You know, the trader actually alleges subjected her to relentless

0:28:56.280 --> 0:29:01.000
<v Speaker 3>harassment and unwanted sexual advances is named in her lawsuit,

0:29:01.040 --> 0:29:04.720
<v Speaker 3>but isn't identified as a defendant. We understand that he

0:29:05.040 --> 0:29:08.440
<v Speaker 3>no longer works at City but he was a trader

0:29:08.560 --> 0:29:11.360
<v Speaker 3>on City groups high profile Delta one desk.

0:29:11.680 --> 0:29:14.760
<v Speaker 1>And this isn't the first time there have been complaints

0:29:14.800 --> 0:29:18.040
<v Speaker 1>about City Group's Equities Trading division.

0:29:18.880 --> 0:29:21.760
<v Speaker 3>That's right, This lawsuit and these allegations come at a

0:29:21.760 --> 0:29:25.720
<v Speaker 3>pretty interesting time for Citygroup. The Equities Trading Division has

0:29:25.760 --> 0:29:30.440
<v Speaker 3>already been targeted by a series of complaints about the

0:29:30.480 --> 0:29:35.560
<v Speaker 3>toxic culture there about how women are treated inside that

0:29:35.600 --> 0:29:39.600
<v Speaker 3>particular division. Last year, there was a lawsuit filed by

0:29:40.200 --> 0:29:43.880
<v Speaker 3>a woman who was a managing director, and we rarely

0:29:43.960 --> 0:29:47.680
<v Speaker 3>hear from women who are that senior who are calling

0:29:47.680 --> 0:29:50.640
<v Speaker 3>out this kind of behavior, and that managing director said

0:29:50.680 --> 0:29:55.320
<v Speaker 3>that she was coerced into an abusive relationship and threatened

0:29:55.440 --> 0:29:59.360
<v Speaker 3>by another colleague. So that lawsuit is still ongoing. Bloomberg

0:29:59.400 --> 0:30:02.960
<v Speaker 3>has also done some reporting talking to other women who

0:30:04.280 --> 0:30:06.720
<v Speaker 3>spent time in that division and got a bit of

0:30:06.720 --> 0:30:09.320
<v Speaker 3>an insight into what it's like there, and it seems

0:30:09.360 --> 0:30:11.600
<v Speaker 3>like it was a pretty tough environment for women to

0:30:11.680 --> 0:30:14.720
<v Speaker 3>work in. They were leader and raise it on their

0:30:14.720 --> 0:30:19.120
<v Speaker 3>looks and subject to other kind of gendered harassment. City

0:30:19.200 --> 0:30:21.400
<v Speaker 3>says that it's trying to get on top of this,

0:30:21.600 --> 0:30:25.800
<v Speaker 3>but this latest law suit by thecap broker Christine O'Reilly

0:30:26.280 --> 0:30:29.640
<v Speaker 3>certainly doesn't do anything turk crall concerns around that particular

0:30:29.720 --> 0:30:30.440
<v Speaker 3>trading division.

0:30:31.080 --> 0:30:33.520
<v Speaker 1>We'll have to see how the judge rules in those

0:30:33.680 --> 0:30:37.600
<v Speaker 1>expected motions to dismiss. Thanks so much, Ava. That's Bloomberg

0:30:37.680 --> 0:30:40.920
<v Speaker 1>Legal reporter Eva Benny Morrison, and that's it for this

0:30:41.080 --> 0:30:44.200
<v Speaker 1>edition of the Bloomberg Law Podcast. Remember you've can always

0:30:44.200 --> 0:30:46.960
<v Speaker 1>get the latest legal news by subscribing and listening to

0:30:47.000 --> 0:30:51.160
<v Speaker 1>the show on Apple Podcasts, Spotify, and at bloomberg dot com,

0:30:51.200 --> 0:30:55.440
<v Speaker 1>slash podcast, slash Law. I'm June Grasso, and this is

0:30:55.480 --> 0:30:56.080
<v Speaker 1>Bloomberg