{"id":25597,"date":"2025-07-02T14:33:38","date_gmt":"2025-07-02T19:33:38","guid":{"rendered":"https:\/\/blogs.law.columbia.edu\/climatechange\/?p=25597"},"modified":"2025-07-02T14:33:38","modified_gmt":"2025-07-02T19:33:38","slug":"seven-county-infrastructure-coalition-the-supreme-courts-substantial-deference-standard-and-implications-for-judicial-review-under-nepa","status":"publish","type":"post","link":"https:\/\/blogs.law.columbia.edu\/climatechange\/2025\/07\/02\/seven-county-infrastructure-coalition-the-supreme-courts-substantial-deference-standard-and-implications-for-judicial-review-under-nepa\/","title":{"rendered":"Seven County Infrastructure Coalition: The Supreme Court\u2019s \u201cSubstantial Deference\u201d Standard and Implications for Judicial Review under NEPA"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div><p><a href=\"https:\/\/blogs.law.columbia.edu\/climatechange\/files\/2025\/07\/6184231577_6cab90db4f_b.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-25747 size-full\" src=\"https:\/\/blogs.law.columbia.edu\/climatechange\/files\/2025\/07\/6184231577_6cab90db4f_b.jpg\" alt=\"\" width=\"1023\" height=\"685\" srcset=\"https:\/\/blogs.law.columbia.edu\/climatechange\/files\/2025\/07\/6184231577_6cab90db4f_b.jpg 1023w, https:\/\/blogs.law.columbia.edu\/climatechange\/files\/2025\/07\/6184231577_6cab90db4f_b-300x201.jpg 300w, https:\/\/blogs.law.columbia.edu\/climatechange\/files\/2025\/07\/6184231577_6cab90db4f_b-768x514.jpg 768w, https:\/\/blogs.law.columbia.edu\/climatechange\/files\/2025\/07\/6184231577_6cab90db4f_b-570x382.jpg 570w\" sizes=\"auto, (max-width: 1023px) 100vw, 1023px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>On May 29, 2025, the U.S. Supreme Court issued a decision in <a href=\"https:\/\/climatecasechart.com\/case\/eagle-county-v-surface-transportation-board\/\"><em>Seven County Infrastructure Coalition v. Eagle County <\/em>(No. 23-975)<\/a> in which it perhaps clarified, perhaps modified, or perhaps announced entirely new standards for judicial review of agency obligations under the National Environmental Policy Act (NEPA). Justice Kavanaugh delivered the majority opinion, holding that federal agencies are now entitled to \u201csubstantial deference\u201d when making decisions about the scope and content of an environmental impact statement (EIS). This holding was predicated on the majority\u2019s view that NEPA is a \u201cprocedural cross-check, not a substantive roadblock\u201d to agency action, and thus courts should not \u201cmicromanage\u201d agency decisions about EIS scope and detail as long as the agency\u2019s final decision is \u201creasonable and reasonably explained.\u201d Applying this standard, the majority held the U.S. Surface Transportation Board (STB) was not required to analyze potential upstream and downstream effects from \u201cseparate projects\u201d over which it had no regulatory authority. In a concurring opinion authored by Justice Sotomayor, the liberal minority on the Court reached the same result, for some of the same reasons, but under a non-deferential standard of review.<\/p>\n<p>The majority opinion emphasizes the central role of deference in NEPA litigation, and undoubtedly seeks to change the mood of adjudication of NEPA claims. Many commentators have characterized this as a major shift in legal standards of review (see, e.g., <a href=\"https:\/\/www.gwlr.org\/seven-county-sweeping-deference\/\">here<\/a> and <a href=\"https:\/\/environmentalenergybrief.sidley.com\/2025\/06\/02\/supreme-court-makes-major-course-correction-limiting-scope-of-nepa-reviews-and-demanding-judicial-deference-to-agency-in-uinta-basin-rail-case\/\">here)<\/a>, and some lower courts may read in it a signal to curtail scrutiny. However, as explained below, the impact of the \u201csubstantial deference\u201d standard is uncertain; in some ways, it resembles deferential standards of review that have governed aspects of past NEPA litigation, and arguably the case can be best understood as a restatement, maybe a tightening, of the \u201crule of reason\u201d and the principle that agencies need only consider environmental information in an EIS that is relevant and useful to the decision-making process. In our view, the decision does not foreclose meaningful judicial review of agency obligations under NEPA. To the contrary, courts should continue enforcing agency obligations to evaluate upstream and downstream effects when that information is necessary in order for the agency to reach a final decision that is \u201creasonable and reasonably explained.\u201d<\/p>\n<h2>Background<\/h2>\n<p>This case involved an <a href=\"https:\/\/www.uintabasinrailwayeis.com\/DocumentsAndLinks.aspx\">EIS<\/a> for an 88-mile rail line intended to transport crude oil from the Uinta Basin in Utah to the national railway system, where it could then be carried by train to oil refineries in Louisiana, Texas, and other states. In the EIS, STB acknowledged that increased oil production was a foreseeable result of the project, and included estimates of the greenhouse gas (GHG) emissions attributable to the combustion of fuels refined from the crude oil transported on the line. However, STB did not conduct a detailed analysis of GHG emissions or other environmental impacts attributable to oil production and refining. STB maintained that it lacked authority to even consider such effects when issuing a rail certificate because: (i) it \u201cgenerally cannot restrict the types of products and commodities that are transported on rail lines, and in fact, has held that railroads have a common carrier obligation to carry all commodities, including hazardous materials\u201d, and (ii) it has \u201cno role in determining or controlling the final destinations or end uses of any products or commodities transported on the proposed rail line.\u201d<\/p>\n<p>After STB approved the construction and operation of the Uinta Basin Railway, Eagle County, Colorado, and seven environmental organizations filed a <a href=\"https:\/\/climatecasechart.com\/case\/eagle-county-v-surface-transportation-board\/\">lawsuit<\/a> alleging that STB had arbitrarily limited the scope of its assessment, and had failed to take a \u201chard look\u201d at upstream and downstream effects of the crude oil supply chain, among other things. The D.C. Circuit Court of Appeals issued a <a href=\"https:\/\/climatecasechart.com\/wp-content\/uploads\/case-documents\/2023\/20230818_docket-22-1019-22-1020_opinion.pdf\">decision<\/a> in 2023 finding that the EIS was deficient because it did not include estimates of GHG emissions and other impacts from induced oil production or oil refining. The court vacated the EIS and the STB\u2019s approval on these grounds.<\/p>\n<h2>The Supreme Court\u2019s Decision<\/h2>\n<p>In an 8-0 decision, with Justice Gorsuch recused, the Supreme Court reversed and remanded the D.C. Circuit Court\u2019s decision. The majority held that the D.C. Circuit Court had not afforded STB the \u201csubstantial judicial deference\u201d it declared is required in NEPA cases (Part II.A), and that STB had rightly concluded that it need not evaluate the effects of oil drilling and refining in its EIS (Part II.B). The majority opinion lashes out at NEPA in a variety of ways, yet we think that these holdings should be interpreted somewhat narrowly, for the following reasons:<\/p>\n<p><strong>First<\/strong>, the majority\u2019s holding on substantial deference was based on its view that NEPA was a \u201cpurely procedural\u201d statute and that the \u201cultimate question\u201d for courts in NEPA cases is not \u201cwhether an EIS in and of itself is inadequate, but whether the agency\u2019s final decision was reasonable and reasonably explained.\u201d This suggests that courts should afford substantial deference to agencies in the context of standalone NEPA claims that do not implicate the agency\u2019s obligations under the substantive statutory framework governing the action. However, if the alleged deficiencies in the EIS may result in a breach of the agency\u2019s obligations to \u201cconsider all relevant factors\u201d and provide a \u201creasonable explanation\u201d for its action, then presumably the standard level of deference under Administrative Procedure Act (APA) arbitrary-and-capricious review should apply.<\/p>\n<p>As for standalone NEPA claims, things are a bit hazy: The Supreme Court has previously recognized that heightened deference is warranted in the context of <em>some<\/em> NEPA decisions, for example where an agency is making \u201cspeculative assessments or predictive or scientific judgments, and decides what qualifies as significant or feasible or the like.\u201d <em>Baltimore Gas &amp; Electric Co. v. NRDC <\/em>(1983). But the majority opinion goes beyond precedent by directing courts to afford substantial deference to agencies across essentially all areas of NEPA decision-making, including decisions about scope, level of detail, significance determinations, and choice of alternatives. Most of these NEPA decisions entail mixed questions of law and fact. The majority seemed to recognize this, and at one point even asserted that agencies are entitled to substantial deference when determining the scope of their <em>legal authority<\/em> for the purpose of NEPA scoping decisions (see p. 20). This is not an obvious result, especially in the wake of the Supreme Court\u2019s recent decision in <a href=\"https:\/\/www.supremecourt.gov\/opinions\/23pdf\/22-451_7m58.pdf\"><em>Loper Bright Enterprises v. Raimondo<\/em><\/a> (overturning <em>Chevron <\/em>deference). The concurring opinion viewed the matter differently, as discussed below.<\/p>\n<p>Importantly, the majority does not suggest that substantial deference is absolute. It recognizes that courts will still play a role in enforcing NEPA (see FN1), that there are instances where agencies will have obligations to assess indirect effects and effects from related projects (see pp. 16, 19-20), and that courts should only defer to NEPA decisions that fall within a \u201czone of reasonableness.\u201d<\/p>\n<p><strong>Second<\/strong>, the majority\u2019s holding on STB\u2019s NEPA obligations in part II.B. of the opinion should be understood in the context of the substantial deference standard that the majority announced in part II.A and the specific facts of the case.\u00a0 As noted above, STB maintained that it did not need to further analyze the effects of oil drilling and refining because it had no authority to prevent those effects and thus they were irrelevant to its decision-making process.\u00a0 The majority found that this was a reasonable determination, as it was undisputed that STB had \u201cno authority or control over future oil and gas development\u201d in the Uinta Basin, and, moreover, STB \u201ccannot decline to provide \u2018common carrier\u2019 transport based on the product or commodity to be carried\u201d (see FN 6).\u00a0 Accordingly, the majority held that STB was not the legally relevant cause of the effects and not required to evaluate those effects, consistent with the rule articulated in <em><a href=\"https:\/\/supreme.justia.com\/cases\/federal\/us\/541\/752\/\">Department of Transportation v. Public Citizen<\/a><\/em> (\u201cwhere an agency has no ability to prevent a certain effect due to its limited statutory authority over the relevant actions, the agency cannot be considered a legally relevant cause of the effect.\u201d)<\/p>\n<p>The majority noted that the question of whether STB\u2019s determination was reasonable was \u201cnot close\u201d \u2013 and so this dispute did not test the limits of the \u201csubstantial deference\u201d standard. Indeed, the concurring opinion arrived at the same result applying the <em>Loper Bright <\/em>standard of review, and ultimately agreed that STB could not lawfully consider the contested upstream and downstream effects as part of the approval process, and therefore did not need to include further assessment of those effects in the EIS, also as per the Court\u2019s ruling in <em>Public Citizen<\/em>.<\/p>\n<p>In its application, then, the decision is not a major departure from past NEPA precedent, but merely a clarification and more modest expansion of preexisting standards, specifically: (i) the \u201crule of reason\u201d \u2013 agencies need only consider environmental information in NEPA reviews that is relevant and useful to the action under review; (ii) the \u201clegally relevant cause\u201d standard \u2013 agencies are not responsible for effects that they have no ability to control or prevent; and (iii) courts should afford <em>some amount <\/em>of deference to agency decisions about the breadth and depth of an EIS.<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a><\/p>\n<p><strong>But What About the Rhetoric?<\/strong><\/p>\n<p>Now, the <em>Seven County <\/em>majority opinion is laden with sweeping generalizations and unsupported assertions about the negative effects of NEPA litigation.<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a> Chief among those statements is that \u201cNEPA does not require the agency to evaluate the effects of [a] separate project\u201d that is separate in time or place from the action under review. But the import of these statements may be more limited than it at first blush seems.<\/p>\n<p>First, the \u201cseparate projects\u201d at issue in this case were structured activities that are regulated by other agencies, and STB had no ability to prevent or influence those activities due to its limited statutory authority. The majority also explicitly recognized that agencies may still have obligations to evaluate environmental <em>effects<\/em> that \u201cextend outside the geographical territory of the project or might materialize later in time.\u201d The distinction between \u201cseparate projects\u201d and \u201ceffects\u201d is important, as the majority does not at any point suggest that agencies do not have obligations to consider indirect effects that are caused by their actions but further removed in time or distance.<\/p>\n<p>Second, the majority invokes the tort law concept of proximate cause as the guiding principle for NEPA scoping decisions, consistent with the Court\u2019s prior holding in <em>Public Citizen<\/em> (\u201cNEPA requires a \u2018reasonably close causal relationship\u2019 akin to proximate cause in tort law\u201d). However, as other legal scholars have <a href=\"https:\/\/www.law.berkeley.edu\/wp-content\/uploads\/2024\/10\/The-Seven-Counties-Case-and-the-Limits-of-Causation-Under-NEPA_CLEE_Oct24.pdf\">noted<\/a>, the doctrine of proximate cause is context-specific, and should not be construed as imposing \u201cartificial limits\u201d on the scope of an agency\u2019s NEPA analysis. Generally speaking, the doctrine of proximate cause is concerned with ensuring a reasonably close relationship between conduct and consequence, but this does not necessarily hinge on issues such as geographical or temporal proximity, or even the fact that intervening actions may occur on a causal chain. Rather, the essential question is whether it is reasonable to hold an agent responsible for a given outcome, which in turn depends on what a reasonable agent would have considered before taking action.<a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a><\/p>\n<p>Foreseeability is a major component of proximate cause analysis, but the majority notes that this is not sufficient to establish an adequate causal connection for NEPA purposes, because foreseeability alone \u201cdoes not mean that those effects are relevant to the agency\u2019s decision-making process or that it is reasonable to hold the agency responsible for those effects.\u201d This statement suggests that proximate cause, for NEPA purposes, should be assessed in relation to: (i) whether the impact is relevant to the decision, and (ii) whether the agency is responsible for the effect, i.e., whether the agency has any authority to undertake a course of action that would prevent or mitigate the effect. That framework is consistent with the tort law principles noted above; however, as <a href=\"https:\/\/legal-planet.org\/2025\/06\/03\/a-critical-analysis-of-the-seven-counties-opinion\/\">other legal scholars have noted<\/a>, the majority\u2019s application of those principles is somewhat incoherent and inconsistent with tort law application.<\/p>\n<p>Third, in light of the above, the majority\u2019s statements about \u201cseparate projects\u201d should not be read to create some kind of categorical bar. The holding in Part II.B specifically dealt with STB\u2019s obligations to consider separate projects that it had no ability to influence due to its limited statutory authority (see FN 6). The majority acknowledged that there are other contexts where agencies may need to consider the effects of separate projects (e.g., \u201ca residential development next door to and built at the same time as a ski resort\u201d). Thus, to the extent the majority has made sweeping, arguably absolute claims about agency obligations that are divorced from context \u2013 and ultimately unnecessary to the resolution of the case \u2013 we think these are best understood as dictum. Courts should continue to interpret agency obligations to evaluate effects from activities that fall outside of their jurisdiction in light of the overarching legal standards articulated in this case, most notably the rule of reason, the legally relevant cause standard, and the standard of substantial deference.<\/p>\n<p><strong>Implications for Future Actions<\/strong><\/p>\n<p>How important will <em>Seven County<\/em> be? How will courts apply the \u201csubstantial deference\u201d standard in future NEPA cases? What will be the limits on indirect (and cumulative) effects analysis? In our reading, post-<em>Seven County<\/em> courts should continue to apply the basic principles of \u201carbitrary and capricious\u201d review used in APA and NEPA claims: judicial review should focus on whether the agency has considered all relevant factors and provided a reasonable explanation of its decision in light of its NEPA analysis. Although courts should afford \u201csubstantial deference\u201d to agency determinations about the scope of environmental review, and to the agencies\u2019 technical analyses, there are limits to deference. The scope inquiry should ultimately depend on both the statutory framework that governs the agency action as well as the nature of the action itself. The adequacy inquiry should ultimately depend, as it always has, on whether the agency missed something major, conducted an assessment that could plausibly be read as in bad faith, or otherwise messed up in a significant way.<\/p>\n<p><em>Seven County<\/em> involved a relatively small project (88 miles of railway) that was approved by an agency with limited statutory authority. Other agencies are responsible for different types of projects and operate under different statutory mandates, and unlike STB, agencies often have discretion to account for and respond to environmental impacts that may fall outside of their immediate jurisdiction. \u00a0There are some contexts where consideration of upstream and\/or downstream effects, including effects from activities undertaken by third parties, may be essential to the decision-making processes. For example, the agencies that are responsible for managing public lands and approving fossil fuel development on those lands operate under much broader mandates than the STB, including mandates related to multiple use, sustainable use, conservation, and environmental protection. These agencies have both the authority and an obligation to weigh various policy considerations, including environmental considerations, when making decisions about the utilization of public lands and resources. They also need to account for actions undertaken by other agencies and entities to accurately characterize baseline conditions for their environmental and land management decisions.<\/p>\n<p>Perhaps most importantly, climate change is an obviously salient environmental consideration for agencies tasked with considering whether and to what extent public lands should be used for fossil fuel development. The fact that fossil fuels will be combusted, generating GHG emissions, is a direct and foreseeable consequence of fossil fuel production. As we have discussed in previous articles, many courts have recognized agency obligations to account for those downstream impacts in their NEPA reviews (see <a href=\"https:\/\/scholarship.law.columbia.edu\/cgi\/viewcontent.cgi?article=1099&amp;context=sabin_climate_change\">here<\/a> and <a href=\"https:\/\/scholarship.law.wm.edu\/wmelpr\/vol44\/iss2\/4\/\">here<\/a> for further discussion). Moreover, fossil fuel use \u2013 a highly diffuse activity \u2013 does not clearly qualify as the type of \u201cseparate project\u201d contemplated in the Court\u2019s decision. Finally, and critically the agencies responsible for fossil fuel leasing decisions have the authority to account for environmental impacts that fall outside of their immediate jurisdiction when making decisions about land and resource uses.<a href=\"#_ftn4\" name=\"_ftnref4\">[4]<\/a>\u00a0 So courts should not assume that <em>Seven Counties<\/em> forecloses judicial review of agency obligations to assess downstream emissions from fossil fuel production. To the contrary, the guiding principle, as stated by the Court, is \u201cwhether the agency\u2019s final decision was reasonable and reasonably explained\u201d in light of its NEPA analysis. And reasonableness sometimes requires looking at those foreseeable indirect effects, from separate projects, remote in time and place, that are approximately proximately caused by, and legally relevant to, to the action under review.<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> The majority asserts that it is necessary to reiterate and clarify the deference owed to agencies because some courts have assumed an overly \u201caggressive\u201d role in enforcing NEPA requirements. However, litigation surveys have demonstrated that courts are already highly deferential to agencies in NEPA litigation, and agencies win the majority of these cases. <em>See <\/em>National Association of Environmental Professionals, National Environmental Policy Act (NEPA) Annual Reports , <a href=\"https:\/\/www.naep.org\/nepa-annual-reports\">https:\/\/www.naep.org\/nepa-annual-reports<\/a>.<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> The majority opinion is rooted in concern that NEPA litigation poses a major hurdle to federal projects, but recent scholarship suggests that this is not the case. <em>See <\/em>David E. Adelman, <em>Permitting Reform&#8217;s False Choice, <\/em>51 Ecology Law Quarterly 129 (2024) (finding that most federal energy infrastructure projects are subject to streamlined review procedures or avoid federal regulation altogether);\u00a0 John C. Ruple &amp; Kayla Race, <em>Measuring the NEPA Litigation Burden: A Review of 1,499 Federal Court Cases, <\/em>50(2) Environmental Law 479 (2020) (finding that, between 2001 and 2013, only one in 450 NEPA decisions were litigated, and the amount of NEPA litigation was declining).<\/p>\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> <em>See <\/em>Prosser &amp; Keeton on Torts, 5th Ed. 1984; <a href=\"https:\/\/lawreview.uchicago.edu\/print-archive\/proximate-cause-explained-essay-experimental-jurisprudence\">Knobe &amp; Shapiro (2021)<\/a>.<\/p>\n<p><a href=\"#_ftnref4\" name=\"_ftn4\">[4]<\/a> For example, the Bureau of Land Management (BLM) operates under a broad mandate to ensure the sustainable use of resources on public lands in a manner that will best serve the public interest for both present and future generations. <em>See <\/em>Federal Lands Policy and Management Act, 43 U.S.C. \u00a7\u00a7 1701 et seq. Pursuant to this mandate, BLM must consider how land management decisions will affect broad environmental, economic, and social interests in both the short- and long-term, and this requires consideration of effects that are removed in time and distance from the immediate land use decision. <em>See<\/em> 43 U.S.C. \u00a7 1702(c) (defining the \u201cmultiple use\u201d objective for public land management).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; On May 29, 2025, the U.S. Supreme Court issued a decision in Seven County Infrastructure Coalition v. Eagle County (No. 23-975) in which it perhaps clarified, perhaps modified, or perhaps announced entirely new standards for judicial review of agency obligations under the National Environmental Policy Act (NEPA). Justice Kavanaugh delivered the majority opinion, holding [&hellip;]<\/p>\n","protected":false},"author":2314,"featured_media":25747,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5673,69207],"tags":[65710,9431],"class_list":{"0":"post-25597","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-litigation","8":"category-cross-cutting-issues","9":"tag-eia","10":"tag-nepa","11":"czr-hentry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Seven County Infrastructure Coalition: The Supreme Court\u2019s \u201cSubstantial Deference\u201d Standard and Implications for Judicial Review under NEPA - Climate Law Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.law.columbia.edu\/climatechange\/2025\/07\/02\/seven-county-infrastructure-coalition-the-supreme-courts-substantial-deference-standard-and-implications-for-judicial-review-under-nepa\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Seven County Infrastructure Coalition: The Supreme Court\u2019s \u201cSubstantial Deference\u201d Standard and Implications for Judicial Review under NEPA - Climate Law Blog\" \/>\n<meta property=\"og:description\" content=\"&nbsp; On May 29, 2025, the U.S. Supreme Court issued a decision in Seven County Infrastructure Coalition v. 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