Key climate rules issued with Supreme Court decision in mind, Podesta says

By Valerie Volcovici

WASHINGTON (Reuters) - The Biden administration had anticipated a Supreme Court decision that limits federal regulatory powers to interpret ambiguous laws when crafting and reviewing major vehicle and power plant emissions rules, its climate adviser said on Tuesday.

WHY IT'S IMPORTANT

White House climate adviser John Podesta said the Supreme Court's 6-3 decision on June 28 to overturn a 1984 precedent known as "Chevron deference," which required judges to defer to reasonable federal agency interpretations of U.S. laws like the Clean Air Act, "was not shocking."

The White House's Office of Management and Budget (OMB) ensured that recently issued vehicle and power plant rules factored this in, he said.

Legal experts have said the ruling from the nation's highest court would make it harder for federal agencies to defend stringent regulations around a variety of environmental, healthcare and other laws, including Biden's efforts to slash planet-warming greenhouse gas emissions from cars, trucks and mobile sources.

KEY QUOTE

"One of the things that we have tried to do at the agency level - with the knowledge that this decision may be forthcoming - and with the leadership of Ricky Revesz ... at OMB is to try to create very, very strong records to ensure that the regulations that have been issued... with or without Chevron, are going to be upheld by the Supreme Court," Podesta told Reuters on the sidelines of an event at the Canadian embassy in Washington.

CONTEXT

Revesz heads the White House Office of Information and Regulatory Affairs at OMB, which reviews all federal regulations before they are issued to ensure they are legally and economically sound.

(Reporting by Valerie Volcovici; Editing by Jamie Freed)