Climate Change RulingToday the US Supreme Court will play a large role in determining the future of US climate policy and environmental regulation.
Earlier this year, the Supreme Court’s decision in National Federation of Independent Business (NFIB) v. Department of Labor, Occupational Safety and Health Administration (OSHA) elevated the major questions doctrine—the argument that federal agencies should have strict limits on their ability to enforce regulations of major importance. In the ongoing case of West Virginia v. Environmental Protection Agency (EPA), application of either or both doctrines would undermine EPA’s authority to promulgate regulation similar to the Obama administration’s Clean Power Plan. Should the Supreme Court side with West Virginia, EPA’s ability to regulate greenhouse gas emissions would be truncated.
Growing judicial interest in the social cost of carbon (SCC)—a number that’s critical for assessing the benefits of implementing environmental regulations—could also have implications for climate policy. Last month, the US District Court for the Western District of Louisiana blocked EPA’s use of an interim value for the SCC. This district court decision was overturned by the 5th Circuit Court of Appeals on March 16, but it has hindered the Biden administration’s plans to issue a new—potentially higher—value, which is expected to be unveiled in the coming months.