IT’S TIME TO END ENVIRONMENTAL LAWFARE & UNLEASH U.S. ENERGY
WASHINGTON, D.C. — Today, the Consumer Choice Center (CCC), a nonpartisan consumer advocacy group and think tank, released its latest policy paper, Energy Production Liability Protection, outlining the urgent need for federal legislation to shield responsible energy producers from speculative climate litigation that drives up consumer energy costs and undermines America’s energy security goals.
As the U.S. prepares for a surge in energy demand fueled by artificial intelligence, data centers, advanced manufacturing, and electric vehicles, analysts project a +25% increase in electricity demand by 2030 and a doubling of LNG production. Yet, energy producers are facing a wave of lawsuits designed to hold them specifically liable for global climate change, an outcome shaped by centuries of emissions and billions of worldwide consumers.
“Litigation has become de facto energy policy in the United States, as energy producers continuously face the threat of spurious climate lawsuits that increase uncertainty, raise costs for consumers, and effectively thwart cleaner energy investments,” said Yaël Ossowski, deputy director at the Consumer Choice Center.
“The result is higher prices for families, fewer investments in innovation, and a less secure energy future. Our primer shows that consumers ultimately bear the cost of these lawsuits—whether in their gas prices, utility bills, or reduced energy choices, and Congress has a role in putting that to an end.”
READ THE PRIMER HERE
THE SCOPE OF THE PROBLEM
- Over 1,850 climate-related lawsuits filed against U.S. energy firms.
- Studies show major companies lose up to 1.5% of market value per lawsuit, and these costs are passed on to consumers.
- Litigation costs equate to an estimated 31 cents per gallon increase at the pump—about $326 per household per year.
- In California, wildfire-related liability passed on $1.6 billion in settlement costs directly to ratepayers, sending electricity bills soaring, providing an example of what is at stake.
OUR CORE PROPOSAL
The CCC calls for Congress to adopt an Energy Production Liability Protection Act, modeled after Section 230 of the Communications Decency Act and other liability protections in law, to establish a safe harbor for energy producers meeting American demand and strategic priorities.
KEY FEATURES INCLUDE
1. Safe Harbor Shield: Bars lawsuits that seek damages for broad climate impacts from lawful energy use.
2. Accountability Preserved: Energy firms remain fully liable for spills, pollution, fraud, and safety violations.
3. Uniform National Standard: Preempts conflicting state lawsuits that create a patchwork of liability.
BENEFITS FOR CONSUMERS
1. Lower Energy Prices: Prevents “litigation tax” from inflating household bills.
2. Future Energy Security: Ensures companies can invest confidently in new production and technology.
3. Innovation Growth: Capital would be freed up for producing cleaner energy, advanced grids, and next-gen renewables.
4. Real Choice: A diverse, competitive energy mix benefits households and businesses alike by allowing them to choose between energy options.
“Section 230 allowed a fledgling internet to flourish by shielding platforms from unreasonable liability while still holding them accountable for real wrongdoing. Energy policy warrants the same balanced approach,” concluded Ossowski. “A similar framework will protect consumers, encourage innovation, and keep energy affordable at a time when America needs it most.”
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