Environmental & Natural Resources Alert

The US Supreme Court Narrows EPA’s Authority to Regulate GHG Under the Clean Air Act

In a 6-3 decision issued today in the case West Virginia v. EPA, the United States Supreme Court held that the U.S. Environmental Protection Agency (EPA) exceeded its statutory authority when it attempted to enact an economy-wide, power generation shifting rule in 2015 known as the Clean Power Plan.

Writing for the majority, Chief Justice John Roberts cited a series of recent decisions where the Court held that administrative agencies had attempted to regulate the economy far beyond Congressionally delegated powers, implicating serious constitutional separation of powers questions. Citing its “major questions” doctrine, the Court concluded that Section 111 of the Clean Air Act does not empower EPA to substantially restructure the American energy market. Rather, the statute empowers the agency to regulate emissions and not direct an economy-wide shift of energy sources, that Congress “conspicuously and repeatedly” rejected. The Court noted that its “major questions” doctrine refers to “an identifiable body of law that has developed over a series of significant cases all addressing a particular and recurring problem: agencies asserting highly consequential power beyond what Congress could reasonably be understood to have granted.” The decision does not disturb EPA’s authority to regulate GHGs under the Clean Air Act, but significantly narrows that authority. The decision also fails to directly address the scope of EPA’s authority to regulated GHG’s under Section 111(d) of the Clean Air Act.

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