New York Metropolis loses the enchantment to carry oil firms accountable for “world warming” – what is the level?

A big win for pro-energy groups today from the 2nd Circuit Court

The federal appeals court denied New York City’s efforts to order five major oil companies (BP, Chevron, ConocoPhillips, Exxon Mobil and Royal Dutch Shell) to cover the costs of tackling the “damage” caused by global warming. The court has clearly stated that regulation of greenhouse gas emissions should be governed by federal law and international treaties, not at the state level.

Important quotes from the decision on climate change in the second cycle April 1, 2021

· “First, global warming is a unique international concern that touches on issues of federalism and foreign policy. As a result, it calls for the application of federal customary law, not state law. Second, the Clean Air Act gives the environmental protection agency – not the federal courts – the power to regulate domestic greenhouse gas emissions. Federal measures related to such emissions will therefore be postponed. While the Clean Air Act has nothing to say about regulating foreign emissions, judicial caution and foreign policy concerns discourage allowing such federal common law claims without direction from Congress. And since there is no such permit, any claim of the city is excluded and their complaint must be rejected. ” (Page 1.)

· “The question before us is whether municipalities can use state tort law to hold multinational oil companies accountable for the damage caused by global greenhouse gas emissions. Given the nature of the damage and the existence of a complex web of federal and international environmental laws regulating such emissions, we believe the answer is no. (Page 5.)

· “Global warming is a unique international problem of national concern. It is therefore not well suited for the application of state law. In line with this, greenhouse gas emissions are the subject of numerous federal and international treaties. These laws provide an interlocking framework for regulating greenhouse gas emissions, as well as enforcement mechanisms to ensure that these regulations are followed. ” (Page 6.)

· “The City of New York bypassed these proceedings and instead initiated criminal proceedings against five oil companies to compensate for damage caused by their admittedly legal trading practices in the manufacture and sale of fossil fuels around the world. In this way, the city is effectively trying to replace these carefully worked out frameworks – which are the product of the political process – with a patchwork of claims under the state harassment law. .. [W]We cannot tolerate such an action. “(P. 6.)

“. . . Every single person who uses gas and electricity – whether traveling by bus, taxi, Uber or Jitney, or receiving home deliveries via FedEx, Amazon or UPS – is contributing to global warming. . . ”(P. 8.)
· “The city freely admits that it cannot stop the behavior of producers based on federal law or an international agreement. Indeed, it is recognized that producers’ conduct is lawful. . . commercial activity[y]. ‘”(P. 9.)

· “To hear the city about this, this case only concerns“ the production, extraction and sale of fossil fuels ”, not the regulation of emissions. . . . In other words, we are told that this is just a local spit on the city’s eroding coast that will have no significant impact on national energy or environmental policies. We do not agree. “(Pp. 19-20.)

· “Artful pleading cannot turn the city’s complaint into anything other than a global greenhouse gas emission complaint. Precisely because fossil fuels emit 4 greenhouse gases – which together exacerbate global warming, ”the city is looking for damage. In other words, the city’s complaint oscillates between rejecting any intention of addressing emissions and identifying such emissions as the only source of damage to the city. But the city cannot have it both ways. “(P. 20.)

· “In a nutshell, the question that arises before us is whether a harassment procedure that seeks compensation for the damage caused by global greenhouse gas emissions can continue under New York law. Our answer is simple: no. “(P. 20.)
· “To say the least, the city is not trying to hold producers responsible for the effects of emissions in New York, or even in New York’s neighboring states. Instead, the city intends to make producers liable under New York law for the effects of emissions created around the world over the past several hundred years. In other words, the city is demanding damages for the cumulative effects of behaviors occurring simultaneously in virtually every jurisdiction on the planet. Such a rambling case simply goes beyond the limits of state law. “(Pp. 21-22.)

· “While the city is not specifically seeking to impose a standard of care or emission limits on producers, the aim of their lawsuit is perhaps even more ambitious: effective no-fault liability for the damage caused by fossil fuel emissions. Where in the world were those emissions released (or who did they released)? If producers want to avoid any liability, their only solution is to stop global production altogether. “(P. 24.)

· “If this lawsuit could be brought under state law, it would upset the careful balance between global warming prevention, a project that inevitably requires national standards and global participation, and economic power generation, growth, foreign policy and national security on the other hand. “(P. 25.)

· “Basically, suffice it to say that the issues raised in this domestic emissions dispute are dealt directly with the Clean Air Act. As a result, we reiterate the district court’s conclusion that the federal common law demands of the city regarding domestic greenhouse gas emissions are being pushed aside. “(Pp. 36-37.)

· The city “wants to impose New York harassment standards on emissions from all 50 states and nations of the world at the same time.” (P. 42.)

Full document here:
https://www.reuters.com/article/us-global-warming-new-york/oil-companies-defeat-new-york-city-appeal-over-global-warming-idUSKBN2BO5O0

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