With the Supreme Court handing down significant rulings on such issues as housing, Obamacare, and same-sex marriage, it’s not surprising other decisions handed down last month received less attention. A prime example is the defeat the Court handed to President Obama administration’s agencies.
In the 5-4 ruling, the Supreme Court recently struck down forthcoming EPA regulations concerning emissions of mercury and other toxins at power plants. the Court pointed out that the EPA did not properly consider the costs of regulating such emissions from coal-fired power plants before imposing the regulations.
Congress had previously authorized the EPA to take any “appropriate and necessary” action to regulate power plants. In this case, the EPA found power plant regulation to be “appropriate” since the plants’ emissions pose risks to the environment and because controls capable of reducing these emissions were available. The agency also found regulation “necessary” because the imposition of other Clean Air Act requirements did not eliminate those risks.
But five of the nine justices found the EPA had failed to due diligence. “Read naturally in the present context, the phrase ‘appropriate and necessary’ requires at least some attention to cost,” wrote Justice Scalia in his opinion for the Court. “One would not say that it is even rational, never mind ‘appropriate,’ to impose billions of dollars in economic costs in return for a few dollars in health or environmental benefits.”