U.S. Supreme Court to Review Emergency Petition Challenging EPA’s “Good Neighbor” Rule

Supreme Court Set to Hear Arguments on Controversial EPA Rule

In a significant development, the U.S. Supreme Court has announced that it will hold oral arguments in February to deliberate an emergency petition seeking a stay on the U.S. Environmental Protection Agency’s (EPA) “good neighbor” rule. This regulation addresses pollution that drifts to downwind states, but its contentious nature has led to a legal challenge by energy companies, trade groups, and specific conditions.

Diverse Interests Unite in Legal Challenge

The consolidated cases before the Supreme Court represent a coalition of energy companies, trade groups, and the states of Ohio, Indiana, and West Virginia. This diverse group has raised concerns about the potential impact of the “good neighbor” rule on various sectors, including electricity generation. The New York Times notes that the court’s decision to consider a stay in these cases is rare, emphasizing the significance of the matter at hand.

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Unprecedented Supreme Court Proceedings

Legal scholars point out the rarity of the Supreme Court holding oral arguments on emergency applications, noting that such instances have occurred only twice since 1971. Both previous cases were related to challenges against the Biden administration’s COVID-19 policies. This underscores the unique and pressing nature of the issues surrounding the EPA’s rule.

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Dual Legal Proceedings: Supreme Court and D.C. Circuit

Simultaneously, the Supreme Court’s order does not halt the U.S. Court of Appeals proceedings for the District of Columbia Circuit, where the EPA case will continue. Opening briefs for this parallel legal track are due on January 26. The appeals court had previously declined to stay the EPA’s plan while considering the broader challenge.

“Good Neighbor” Rule Overview and Opposition

The “good neighbor” rule mandates states to reduce smog-causing nitrogen oxide emissions that affect neighboring states. Despite the EPA rejecting the adequacy of plans from 23 states, litigation ensued, resulting in all seven federal appeals courts hearing challenges blocking EPA action in 12 states, according to the New York Times.

Ohio, one of the states challenging the rule, contends that the mandated cuts are “potentially unachievable” and could lead to insufficient electrical generating capacity. On the other hand, the U.S. government argues that a stay on the rule would have adverse health consequences and impose additional regulatory burdens on downwind states, contradicting the rule’s central objective.

The Road Ahead: Ohio v. EPA, Kinder Morgan v. EPA, American Forest & Paper Association v. EPA, U.S. Steel Corp. v. EPA

The cases before the Supreme Court are Ohio v. EPA, Kinder Morgan v. EPA, American Forest & Paper Association v. EPA, and U.S. Steel Corp. v. EPA. These cases are poised to shape the future landscape of environmental regulations and industry compliance. As the legal battle unfolds, stakeholders eagerly await the court’s decision and its implications for the EPA’s “good neighbor” rule.

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