“The U.S. Supreme Court ruled..in the West Virginia v. Environmental Protection Agency that it “is a major questions case.” As such, the Court ruled 6–3 that the Environmental Protection Agency (EPA) did not have clear authority from Congress to regulate the entire U.S. electric power production industry through exercising “unheralded power representing a transformative expansion of its regulatory authority in the vague language” in a rarely used section of the Clean Air Act. This decision will likely curtail future efforts by the Biden administration to significantly cut the emissions of carbon dioxide from fossil-fuel-burning power plants that contribute to man-made global warming.”
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“So what is the major questions doctrine? “The Supreme Court has declared that if an agency seeks to decide an issue of major national significance, its action must be supported by clear statutory authorization,” explained the Congressional Research Service in a recent analysis. Certainly, the huge costs imposed by new regulations that are not clearly authorized by Congress would seem to qualify as an issue of national significance. In fact, in his majority opinion, Chief Justice John Roberts notes, “EPA’s own modeling concluded that the rule would entail billions of dollars in compliance costs (to be paid in the form of higher energy prices), require the retirement of dozens of coal-fired plants, and eliminate tens of thousands of jobs across various sectors.””
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“In her dissent, Associate Justice Elena Kagan counters by pointing out the Obama administration’s EPA calculated that by 2030 the annual public health and climate benefits of proposed regulations under its Clean Power Plan would be between $34 to $54 billion while the costs would amount to $8.4 billion. While electricity would cost more, consumers would save $7 monthly on their electric bills due to increased energy efficiency. A 2016 study in the journal PLOS One similarly found that the health co-benefits outweighed the costs incurred from reducing carbon dioxide emissions.
Despite the fact that the benefits of costly and transformative regulations might outweigh their costs that still does not mean for the Court’s majority that their issuance is not a major question requiring clear direction from Congress before going forward.
“Capping carbon dioxide emissions at a level that will force a nationwide transition away from the use of coal to generate electricity may be a sensible ‘solution to the crisis of the day,'” concludes Chief Justice Roberts. “But it is not plausible that Congress gave EPA the authority to adopt on its own such a regulatory scheme in [the Clean Air Act]. A decision of such magnitude and consequence rests with Congress itself, or an agency acting pursuant to a clear delegation from that representative body.””