1 00:00:03,520 --> 00:00:07,040 Speaker 1: Welcome to the Bloomberg Law Podcast. I'm June Grosso. Every 2 00:00:07,120 --> 00:00:09,680 Speaker 1: day we bring you insight and analysis into the most 3 00:00:09,720 --> 00:00:12,200 Speaker 1: important legal news of the day. You can find more 4 00:00:12,240 --> 00:00:16,160 Speaker 1: episodes of the Bloomberg Law Podcast on Apple Podcasts, SoundCloud, 5 00:00:16,280 --> 00:00:19,480 Speaker 1: and on Bloomberg dot com slash podcasts. One of the 6 00:00:19,520 --> 00:00:24,320 Speaker 1: biggest environmental clashes yet between Democrat led states and President 7 00:00:24,360 --> 00:00:28,640 Speaker 1: Donald Trump is now in motion. Last month, Trump chouted 8 00:00:28,680 --> 00:00:33,400 Speaker 1: his administration's environmental leadership from day one. My administration has 9 00:00:33,479 --> 00:00:36,839 Speaker 1: made at a top priority to ensure that America as 10 00:00:36,920 --> 00:00:41,640 Speaker 1: among the very cleanest air and cleanest water on the planet. 11 00:00:42,320 --> 00:00:45,479 Speaker 1: But a coalition of twenty nine states and cities begs 12 00:00:45,520 --> 00:00:49,120 Speaker 1: to differ. They say Trump roll back a landmark Obama 13 00:00:49,159 --> 00:00:53,279 Speaker 1: initiative that capped carbon dioxide emissions from power plants and 14 00:00:53,320 --> 00:00:56,040 Speaker 1: replaced it with a rule that will ease restrictions on 15 00:00:56,200 --> 00:01:00,200 Speaker 1: coal fired power plants and increase pollution instead of curbing it. 16 00:01:00,480 --> 00:01:04,759 Speaker 1: Here's California Attorney General Javier Baserra, President Trump once again 17 00:01:05,040 --> 00:01:08,959 Speaker 1: attempting to gut our nation's clean power plant. That effort 18 00:01:09,000 --> 00:01:12,399 Speaker 1: is foolish. It's a toothless substitute that they present in 19 00:01:12,440 --> 00:01:15,399 Speaker 1: the place of the clean power plant. It's more of 20 00:01:15,480 --> 00:01:19,039 Speaker 1: a fossil fuel protection plan and it is ill advised, 21 00:01:19,120 --> 00:01:22,200 Speaker 1: but more importantly, it's against the law. Joining me is 22 00:01:22,280 --> 00:01:26,640 Speaker 1: Charles warrenhead of the environmental law practice at Kramer Levin Chuck. 23 00:01:26,760 --> 00:01:30,839 Speaker 1: Trump's plan is called the Affordable Clean Energy Plan. Explain 24 00:01:30,920 --> 00:01:35,640 Speaker 1: how it changes the Obama era rules. Yeah, it's really 25 00:01:35,640 --> 00:01:40,000 Speaker 1: a big change. June. What's the Obama Clean Power Plan said? 26 00:01:40,040 --> 00:01:43,559 Speaker 1: It required states to put plans in place it would 27 00:01:43,600 --> 00:01:49,040 Speaker 1: reduce the carbon dioxide emissions by and they actually put 28 00:01:49,360 --> 00:01:53,440 Speaker 1: caps on those emissions, and they encourage the closing of 29 00:01:53,520 --> 00:01:57,800 Speaker 1: heavily polluted older plants and the use of natural gas 30 00:01:57,800 --> 00:02:02,680 Speaker 1: and and renewable to reduce the greenhouse gasses. Now what 31 00:02:02,880 --> 00:02:08,000 Speaker 1: the new rule does, it's completely different. It's basically does 32 00:02:08,040 --> 00:02:12,320 Speaker 1: not cap emissions like the Obama rule did and leaves 33 00:02:12,360 --> 00:02:16,280 Speaker 1: it totally to the states to decide whether or if 34 00:02:16,400 --> 00:02:20,320 Speaker 1: to reduce emissions and pick from you a list of 35 00:02:20,440 --> 00:02:25,680 Speaker 1: certain technologies. And it's really in a sense, turning the 36 00:02:25,760 --> 00:02:30,840 Speaker 1: Clean Air Act around, which which the Act requires the 37 00:02:31,000 --> 00:02:35,680 Speaker 1: federal government to actually set standards for air pollutants and 38 00:02:35,720 --> 00:02:39,400 Speaker 1: the states then to have plans to implement those standards 39 00:02:39,440 --> 00:02:43,640 Speaker 1: and would allow the states to basically do anything they wanted. 40 00:02:43,840 --> 00:02:46,600 Speaker 1: And that's why I think there's so much concern on 41 00:02:46,680 --> 00:02:49,960 Speaker 1: the part of environmental people and the states that have 42 00:02:50,120 --> 00:02:53,320 Speaker 1: actually brought the lawsuit against it, and it would be 43 00:02:53,360 --> 00:02:57,919 Speaker 1: a revolutionary change in the way air pollution is regulated 44 00:02:58,120 --> 00:03:01,840 Speaker 1: under the Clean Air Act. Attorney General Bassrah and the 45 00:03:01,880 --> 00:03:05,560 Speaker 1: other state ages say that it's against the law. How 46 00:03:05,639 --> 00:03:09,000 Speaker 1: so what are their grounds for suing? Well, I think 47 00:03:09,040 --> 00:03:12,120 Speaker 1: what they're saying is that under the Clean Air Act, 48 00:03:12,480 --> 00:03:19,040 Speaker 1: once a pollutant is listed and it has to be regulated, 49 00:03:19,080 --> 00:03:22,320 Speaker 1: and then standards have to be set for that pollutant, 50 00:03:22,720 --> 00:03:25,880 Speaker 1: and those standards are set by the federal government. What 51 00:03:25,960 --> 00:03:29,840 Speaker 1: they're saying is, in this case, you're not setting a standard, 52 00:03:29,840 --> 00:03:32,600 Speaker 1: you're not putting a cap on any emissions, and you're 53 00:03:32,639 --> 00:03:36,560 Speaker 1: just allowing the states to decide if they want to 54 00:03:36,600 --> 00:03:40,280 Speaker 1: do something or if they don't, and and just for 55 00:03:40,360 --> 00:03:43,280 Speaker 1: individual plants, they can do one thing or another thing. 56 00:03:43,760 --> 00:03:46,360 Speaker 1: And so I think that's really the strong basis for 57 00:03:46,360 --> 00:03:50,800 Speaker 1: the lawsuit is that they're really not setting any standards 58 00:03:50,960 --> 00:03:56,720 Speaker 1: for carbon dioxide, which is the major greenhouse gas pollutant. So, Chuck, 59 00:03:56,720 --> 00:03:59,480 Speaker 1: do you think that's a good argument. Yes, I do. 60 00:04:00,040 --> 00:04:02,680 Speaker 1: I do think that's a strong argument. And again I 61 00:04:02,760 --> 00:04:05,480 Speaker 1: think that, as I said it, if the Trump administration 62 00:04:05,480 --> 00:04:07,440 Speaker 1: were to prevail on this, it really turns the Clean 63 00:04:07,480 --> 00:04:10,160 Speaker 1: Air Act on its head because the Cleaner Act was 64 00:04:10,160 --> 00:04:14,720 Speaker 1: originally enacted because states and others weren't really doing anything, 65 00:04:14,800 --> 00:04:18,080 Speaker 1: and Congress said, the federal government has got to come 66 00:04:18,120 --> 00:04:21,280 Speaker 1: in and basically set standards for pollutants that need to 67 00:04:21,320 --> 00:04:24,520 Speaker 1: be regulated, and this would turn that around. And that's 68 00:04:24,520 --> 00:04:27,240 Speaker 1: why that's why I think it's a good argument to 69 00:04:27,320 --> 00:04:30,440 Speaker 1: be overturned this particular regulation. So this is likely to 70 00:04:30,480 --> 00:04:32,800 Speaker 1: go all the way up to the Supreme Court. And 71 00:04:33,000 --> 00:04:37,279 Speaker 1: President Obama's Clean Power Plan was prevented from going into 72 00:04:37,320 --> 00:04:41,839 Speaker 1: effect by previous litigation by Republican led states, and the 73 00:04:41,880 --> 00:04:46,080 Speaker 1: Supreme Court temporarily blocked the Obama administration by I think 74 00:04:46,120 --> 00:04:48,560 Speaker 1: it was a five to four vote. So is the 75 00:04:48,600 --> 00:04:51,320 Speaker 1: Court likely to rule the same way in this case 76 00:04:51,360 --> 00:04:57,240 Speaker 1: to the same theories apply? Not necessarily June because in 77 00:04:57,279 --> 00:05:00,960 Speaker 1: the previous case, there has been a case before the 78 00:05:01,040 --> 00:05:04,719 Speaker 1: d C. Circuit Court of Appeals that's where these regulations 79 00:05:04,720 --> 00:05:08,479 Speaker 1: go automatically under the Clean Air Act and At the 80 00:05:08,560 --> 00:05:12,080 Speaker 1: same time, the States appeal to the Supreme Court to 81 00:05:12,200 --> 00:05:15,320 Speaker 1: issue a stay so that while the case was being 82 00:05:15,360 --> 00:05:18,360 Speaker 1: decided by the DC Court of Appeals, e p A 83 00:05:18,440 --> 00:05:22,240 Speaker 1: couldn't implement the regulation. And what the court basically said was, look, 84 00:05:22,640 --> 00:05:25,000 Speaker 1: we're just gonna stay stop it so it doesn't go 85 00:05:25,040 --> 00:05:28,680 Speaker 1: into effect, and we'll wait to see what happens, you know, 86 00:05:28,680 --> 00:05:31,640 Speaker 1: in the d C Circuit Court of Appeals. And uh, 87 00:05:31,920 --> 00:05:34,600 Speaker 1: it's much easier to get a stay of something like 88 00:05:34,680 --> 00:05:38,560 Speaker 1: that if people talk about you know, serious economic consequences 89 00:05:38,560 --> 00:05:41,040 Speaker 1: and things like that as a result of the regulation 90 00:05:41,400 --> 00:05:44,480 Speaker 1: than it is to actually get a ruling on the merits. 91 00:05:44,520 --> 00:05:47,799 Speaker 1: And that's why I think that gets a tough case 92 00:05:48,040 --> 00:05:51,080 Speaker 1: for the administration to try to win in the d 93 00:05:51,200 --> 00:05:54,560 Speaker 1: C Circuit and the Supreme Court. The e p A 94 00:05:54,680 --> 00:05:57,760 Speaker 1: z own analysis of the new rules predict an extra 95 00:05:58,040 --> 00:06:02,800 Speaker 1: three d people will die each year by because of 96 00:06:02,839 --> 00:06:06,360 Speaker 1: the additional air pollution from the power grid. The American 97 00:06:06,440 --> 00:06:10,119 Speaker 1: Long Association the American Public Health Association have already filed 98 00:06:10,160 --> 00:06:12,719 Speaker 1: suit to block it. How does the e p A 99 00:06:12,960 --> 00:06:16,240 Speaker 1: square this rule with those facts that it's come up 100 00:06:16,279 --> 00:06:20,679 Speaker 1: with on its own. Well, I think that this rule, 101 00:06:21,160 --> 00:06:24,000 Speaker 1: like a lot of the environmental rules from the Trump 102 00:06:24,000 --> 00:06:30,039 Speaker 1: administration are basically too lessen the burden on the industries 103 00:06:30,360 --> 00:06:34,479 Speaker 1: and keep the economy moving in there, I think in 104 00:06:34,520 --> 00:06:37,400 Speaker 1: their view. And I think that's where the Clean Air 105 00:06:37,400 --> 00:06:42,480 Speaker 1: Act has always been a difficult act for industry because 106 00:06:42,480 --> 00:06:46,719 Speaker 1: they feel that it puts constraints on their ability to operate. 107 00:06:47,120 --> 00:06:49,360 Speaker 1: But the Clean Air Act was passed as a public 108 00:06:49,400 --> 00:06:53,039 Speaker 1: health statute. And also in this case, because the Supreme 109 00:06:53,080 --> 00:06:56,720 Speaker 1: Court ruled that carbon dioxide is a pollutant that could 110 00:06:56,760 --> 00:07:02,679 Speaker 1: be regulated a greenhouse gas regulation, and uh, that's something 111 00:07:02,720 --> 00:07:07,440 Speaker 1: that has economic consequences, certainly for a lot of power plants. 112 00:07:07,600 --> 00:07:10,480 Speaker 1: And that's why the States brought this case against the 113 00:07:10,520 --> 00:07:16,240 Speaker 1: Obama plan, and that's why I believe the trumpt administration 114 00:07:16,320 --> 00:07:19,920 Speaker 1: is trying to substitute this which would give more of 115 00:07:19,960 --> 00:07:23,680 Speaker 1: a break to the power plants. All Right, thanks so much, Chuckle. 116 00:07:23,640 --> 00:07:26,400 Speaker 1: A lot of environmental law news this week. That's Charles 117 00:07:26,400 --> 00:07:32,640 Speaker 1: warrenhead of the environmental practice at Kramer Levin. Thanks for 118 00:07:32,720 --> 00:07:35,960 Speaker 1: listening to the Bloomberg Law Podcast. You can subscribe and 119 00:07:36,040 --> 00:07:39,280 Speaker 1: listen to the show on Apple Podcasts, SoundCloud, and on 120 00:07:39,360 --> 00:07:44,080 Speaker 1: Bloomberg dot com. Slash Podcast. I'm June Brasso. This is 121 00:07:44,120 --> 00:07:47,240 Speaker 1: Bloomberg Ye