The Supreme Court opened its new term Monday with justices questioning both sides of a dispute over whether oil companies can block a Colorado climate lawsuit.

The city and county of Boulder allege that Exxon Mobil and Suncor Energy misled consumers about the climate effects of greenhouse gases from their products. The companies deny the allegations and argue that a national and international issue such as climate change should not be litigated in state court.

The case could affect more than two dozen similar lawsuits filed by local governments across the country. Boulder officials say climate impacts have raised their costs, including spending to reduce wildfire risks. The companies warn that allowing such cases to reach trial could expose energy producers to billions of dollars in damages.

Justice Samuel Alito recused himself, leaving eight justices to hear the case. A 4-4 split could let Boulder’s lawsuit proceed without settling the broader legal questions.