Clifford Chance

U.S. Supreme Court reels in federal agency interpretation power, overturning Chevron Doctrine, and lengthens deadline for bringing challenges

July 3, 2024

On June 28, 2024, the U.S. Supreme Court, in a 6-3 vote, overruled the landmark 40-year-old Chevron decision that required federal courts to defer to a federal agency's reasonable interpretation of ambiguous statutes. Additionally, on July 1, 2024, the Court, in a 6-3 vote, held that the six-year statute of limitations for challenging agency regulations does not start to run until the plaintiff is injured by final agency action. The ruling in Loper Bright Enterprises v. Raimondo tips the balance away from agencies and toward courts, increasing the prospects for regulated entities to successfully challenge agency regulations and agency interpretations of federal law. The ruling in Corner Post v. Board of Governors of the Federal Reserve further increases the likelihood that significantly more challenges of agency actions, even older agency decisions, will end up in front of the court. These decisions fundamentally change how federal courts interpret and apply administrative law and are expected to significantly impact a wide variety of regulated sectors—in particular, in energy and the environment.

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