U.S. Supreme Court to Examine Environmental Impact of Proposed Utah Railway

By Andrew Chung and John Kruzel
WASHINGTON (Reuters) – The U.S. Supreme Court is set to examine federal agencies' responsibility to review environmental impacts in a dispute regarding a proposed railway in Utah challenged by environmental groups and Eagle County, Colorado.

The court will hear arguments on Tuesday concerning an appeal made by seven Utah counties against a lower court's decision that halted the 88-mile (142-km) railway project intended to connect the Uinta Basin region with an existing freight rail network primarily for transporting waxy crude oil.

This case evaluates the extent of environmental impact studies required under the National Environmental Policy Act (NEPA), enacted in 1970 to avert potential environmental harms from major projects.

Companies and environmental organizations anticipate the ruling's effect on future infrastructure and energy projects. In 2021, the Surface Transportation Board approved the proposed railway after issuing an environmental impact statement.

The dispute revolves around the environmental review's scope defined by NEPA, which necessitates agencies to investigate the “reasonably foreseeable” effects of a project. Overly expansive reviews can prolong regulatory timelines and jeopardize projects, according to business advocates.

Environmental groups, including the Center for Biological Diversity, and Eagle County filed lawsuits against the board’s approval, citing increased train traffic and significant ecological risks to the Colorado River.

The U.S. Circuit Court of Appeals for the D.C. Circuit sided with the challengers in 2023, finding the environmental review insufficient regarding upstream and downstream effects of increased oil production.

President Joe Biden's administration, alongside Utah's support, urges the Supreme Court to overturn the lower court's ruling. The Justice Department asserted that NEPA does not require an agency to evaluate every foreseeable environmental harm, arguing that the Surface Transportation Board appropriately limited its analysis.

Colorado expressed support for the challengers, emphasizing its economy’s reliance on outdoor recreation and concerns over potential environmental hazards linked to the railway project. Fourteen other states joined Colorado in supporting the challengers.

Eight justices will deliberate on the case, with Justice Neil Gorsuch recusing himself due to a potential conflict of interest involving a former legal client. A ruling is anticipated by the end of June.