Legal battles against energy companies will short-circuit on taxpayers

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A campaign of lawsuits filed by state and local governments against energy producers, blaming them for climate change, stands only to make things worse.

Attorney General Rob Bonta takes part in a press conference on Wednesday, May 10, 2023, in Oakland, Calif. Years of rampant inflation mean higher prices for everyday goods, groceries, and gas are squeezing consumers’ wallets.

The legal standing of these lawsuits is also highly questionable, especially given the unanimous 2011 Supreme Court decision that established federal regulators, not the courts, should handle such policy matters under the Clean Air Act.

If the cases move forward and the plaintiffs win, it could spell disaster for taxpayers and the economy. Legal fees and fines would be passed on to consumers in the form of higher oil and gas prices. Further along the supply chain, they would increase the cost of countless goods and services . Governments, which purchase many of these products, would feel the pinch too. It will also drive up the cost to refill the federal Strategic Petroleum Reserve which has been depleted to historical lows.

 

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