Supreme Court Rules Against EPA In Case That Could Have Long-Reaching Effects On Federal Regulations

In a 6-3 decision, the Supreme Court of the United States limited the Environmental Protection Agency’s (EPA) authority to regulate greenhouse gas emissions under the Clean Air Act.

At issue in the case was the Obama administration’s Clean Power Plan, a massive regulatory regime that never took effect, but would have required coal-burning utilities to make way for low-carbon power options or to use a market-based system of emissions trading. The question before the court was whether language in the Clean Air Act enables the EPA to regulate power plants using a “best system of emissions reduction” and what specifically that system can entail.

The majority’s decision found neither the EPA, or other federal agency, may adopt regulations that are “transformational” to the economy without Congress specifically authorizing such a rule to address a specific issue, including climate change. More specifically, the opinion stated, “Congress did not grant EPA … the authority to devise emissions caps based on the generation shifting approach the Agency took in the Clean Power Plan.”

The decision could severely limit the Biden administration’s options to fight climate change since the justices specifically prohibited the EPA from proposing similarly broad changes to the entire power system.

Additionally, according to The Hill, the principle applied in the case could be used to restrict the Biden administration from imposing regulations in other areas, including other energy and environmental rulemakings.