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Amicus brief in suncor energy on the foreign commerce clause and climate change lawsuits

This piece from Reason cuts through the noise of climate litigation to ask a question most legal observers have stopped asking: does a county in Colorado have the constitutional authority to regulate the global carbon output of multinational energy firms? The argument is not merely about environmental policy; it is a structural challenge to the very architecture of American federalism. By focusing on the Foreign Commerce Clause, the editors pivot away from the merits of climate science to the mechanics of sovereignty, suggesting that local nuisance suits are actually an unconstitutional overreach into the exclusive domain of the federal government.

The Exclusive Nature of Federal Power

The core of the argument rests on a textualist reading of the Constitution that has largely fallen out of fashion in modern jurisprudence. Reason reports that "Boulder attempts to penalize multinational companies not merely for the local and immediate consequences of any local operations, but for the multi-causal long-term consequences of their sales and speech around the country and around the globe." This distinction is crucial. The piece argues that when a local entity tries to dictate terms for global commerce, it violates the structural constraints designed to prevent exactly this kind of fragmentation.

Amicus brief in suncor energy on the foreign commerce clause and climate change lawsuits

The editors lean heavily on early Supreme Court precedents to bolster their claim, specifically invoking Martin v. Hunter's Lessee from 1816. They note that "Taking the 'words in their natural and obvious sense, and not in a sense unreasonably restricted or enlarged,'... any 'legislative power' granted 'is absolutely vested.'" This historical anchor is the piece's strongest asset. It reminds the reader that the Constitution was not designed to be a flexible suggestion box for state regulators but a rigid framework where specific powers, once granted to Congress, were divested from the states.

The Constitution sought to free foreign commerce from state mischief, not to preserve all opportunity for such mischief while the national legislative process struggles to keep up.

This framing is effective because it reframes the climate lawsuits not as a noble attempt to fill a regulatory vacuum, but as a source of "state mischief" that the Founders explicitly sought to eliminate. The piece suggests that the default rule should be the absence of state power to regulate interstate and foreign commerce, not the endless encroachment we see today. Critics might note that this originalist reading ignores the practical reality that Congress has often failed to act on climate change, leaving a vacuum that states feel compelled to fill. However, the editors counter that the difficulty of the legislative process is a feature, not a bug, and that states cannot simply assume powers that were never delegated to them.

The Foreign Commerce Distinction

Where the argument becomes most compelling is in its distinction between interstate and foreign commerce. The piece argues that while the Court has eroded the exclusivity of federal power over domestic trade, it has maintained a firmer line regarding international trade. Reason notes that in Atlantic Cleaners & Dyers v. United States, the Court explained that the "power when exercised in respect of foreign commerce may be broader than when exercised as to interstate commerce."

The editors use this precedent to argue that the extraterritorial reach of Boulder County's lawsuit is particularly dangerous. They write, "In the foreign commerce context, this Court should be even more cautious in permitting direct or indirect burdens on international commerce." This is a vital point for busy readers to grasp: the stakes are higher when a local court's decision ripples across international borders, potentially triggering diplomatic friction or trade wars. The piece cites Crutcher v. Kentucky to reinforce this, stating that the "prerogative, the responsibility, and the duty of providing for the security of the citizens and the people of the United States in relation to foreign corporate bodies... belong to the government of the United States, and not to the governments of the several states."

By invoking the concept of vertical separation of powers, the commentary suggests that the current legal landscape allows states to act as rogue actors in the global arena. The editors contend that "Plaintiffs' attempt to extend their tort laws to encompass extraterritorial conduct and global consequences reaches well into the regulation of foreign commerce that is the exclusive province of the federal government." This is a bold claim that challenges the prevailing trend of using state tort law as a proxy for national climate policy.

The Limits of State Autonomy

The piece also tackles the Tenth Amendment, often used as a shield for state sovereignty, by flipping the script. It argues that the amendment actually confirms the exclusivity of federal power. "The powers not delegated to the United States by the Constitution... are reserved to the States," the editors quote, but they immediately follow with the implication that powers delegated to the United States are not reserved. This logical inversion is sharp and legally sound within the framework of originalism.

However, the argument does face a significant hurdle: the modern Court's reluctance to return to a strict exclusivity model for the Commerce Clause. The editors acknowledge this, noting that the Court has "discovered the very 'residuum of power' in the States to act in 'the absence of conflicting legislation by Congress.'" Yet, they argue this should not apply to foreign commerce. The piece suggests that the Court's hesitation to rein in state power domestically should not prevent it from drawing a hard line internationally. This is a nuanced position that requires the Court to distinguish between two types of commerce, a task that has proven difficult in recent decades.

The power to regulate commerce is general and unlimited in its terms and left 'no residuum' to the States.

This quote from Justice Story, cited by the editors, serves as a powerful reminder of the original intent. It highlights the tension between the historical understanding of the Constitution and the modern judicial approach. The editors are essentially asking the Supreme Court to reclaim a precedent that has been quietly eroded, arguing that the unique nature of foreign commerce demands a return to exclusivity.

Bottom Line

The strongest part of this argument is its rigorous adherence to the text and early precedent of the Foreign Commerce Clause, successfully framing local climate lawsuits as a constitutional violation rather than a policy dispute. Its biggest vulnerability lies in the practical difficulty of convincing a modern Supreme Court to overturn decades of precedent that allows states some leeway in regulating commerce. Readers should watch for how the Court navigates the tension between federal exclusivity and the urgent need for climate action in the upcoming Suncor Energy decision.

Deep Dives

Explore these related deep dives:

  • Dormant Commerce Clause

    The brief explicitly contrasts the Supreme Court's variable 'dormant' jurisprudence with a stricter textual reading of the Foreign Commerce Clause to argue for exclusive federal power.

  • Martin v. Hunter's Lessee

    Cited in the text to establish the originalist principle that federal treaty and commerce powers are exclusive of state authority, serving as the historical anchor for the argument against Boulder's extraterritorial reach.

  • Extraterritoriality

    The core legal conflict described is whether a local county can impose liability on multinational corporations for global sales, a specific application of the doctrine prohibiting states from regulating conduct outside their borders.

Sources

Amicus brief in suncor energy on the foreign commerce clause and climate change lawsuits

by Various · Reason · Read full article

As I noted in a separate post, the legal advocacy group Neutral Principles engaged Erik Jaffe and me to draft an amicus brief for them in Suncor Energy (U.S.A.) Inc. v. County Commissioners of Boulder County, which the Court will hear this Fall. You can read the PDF, but here is the Foreign Commerce Clause analysis (the First Amendment analysis is excerpted here):

Besides the serious First Amendment concerns favoring a broad preemption ruling that would avoid such constitutional problems, the state-law suits in this case and others around the country seek to regulate national and international commerce in violation of the Commerce Clause and related structural constraints on extraterritorial regulation.

Boulder attempts to penalize multinational companies not merely for the local and immediate consequences of any local operations, but for the multi-causal long-term consequences of their sales and speech around the country and around the globe. And it is seeking to impose liability on Suncor for the joint consequences of millions of decisions by actors beyond its borders, operating in interstate and international trade. Whatever reticence this Court might have in preempting largely ordinary State regulation that incidentally affects interstate commerce, that reticence would be misplaced when it comes to such a major encroachment on international commerce and an attempt to impose Boulder's views of nuisance and appropriate speech on actors not just in other States but also in foreign countries.

For good reasons, this Court has understood Congress's delegated power over foreign commerce as exclusive of State powers. That understanding is consistent with the original public meaning of both the delegation of power to Congress in Article I, and the catch-all reservation of powers to the states and the people in the Tenth Amendment.

Regardless whether the Constitution supports the somewhat variable dormant interstate Commerce Clause as it had evolved over the years, a more textually grounded reading of the clause supports exclusive federal authority here. Boulder's attempt to impose Colorado law on interstate and foreign commerce conflicts with the Commerce Clause, Article I's delegation of powers, and the Tenth Amendment. And it more broadly conflicts with the Constitution's structure, which organizes horizontal relations among States on principles of (partial) state autonomy, equality, territoriality, non-aggression, and mutual recognition.

The power to "regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes" U.S. Const. art. I, ยง 8, cl. 3, is one of the ...