Supreme Court Takes Up Exxon, Suncor Climate Case

The U.S. Supreme Court begins its new nine-month term Monday with arguments in a closely watched climate lawsuit involving oil giants ExxonMobil and Suncor Energy and officials in Boulder, Colorado.

Exxon and Canada-based Suncor are seeking to overturn a Colorado Supreme Court decision that allowed Boulder’s climate-related lawsuit to move forward. The Trump administration supports the companies, arguing that federal law prevents the local governments from pursuing the claims.

Boulder city and county officials accuse Exxon and Suncor of contributing to climate change while misleading the public about the environmental risks associated with fossil fuels. They are seeking damages to cover past and future climate-related costs, including infrastructure repairs, emergency management, environmental damage and public health impacts.

The case could have significant implications for climate litigation across the United States. Nearly 60 state and local governments have filed similar lawsuits seeking billions of dollars in damages from fossil fuel companies. Exxon and Suncor have warned that a Supreme Court ruling in their favor could result in many of those cases being dismissed.

The companies argue that Boulder’s claims interfere with an area governed by federal law, including the Clean Air Act. Supporters of the energy companies also contend that allowing the lawsuit to proceed could effectively give individual states authority over emissions-producing activities occurring beyond their borders.

Energy companies, industry groups and allied states have secured several favorable Supreme Court decisions over the past two decades involving environmental regulation and climate liability.

Justice Samuel Alito has recused himself from the Exxon-Suncor case. His financial disclosures show ownership of shares in several oil and gas companies, though not Exxon or Suncor.

The case is among several major disputes facing the Supreme Court during its new term. The justices are also expected to consider cases involving President Donald Trump’s immigration policies and state restrictions on assault-style rifles.

With a 6-3 conservative majority, the Supreme Court could issue a decision in the Boulder climate case by the end of June.