OCTOBER TERM, 2023 · DECIDED JUNE 27, 2024 · 5–4

603 U.S. 279 · No. 23A349 · Argued February 21, 2024

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Ohio v. Environmental Protection Agency

Stay grantedEmergency action
air pollutionEPA rulesozone standardsenvironmental regulationGood Neighbor Plan

Opinion of the Court by Justice Gorsuch, joined by Justices Roberts, Thomas, Alito, and Kavanaugh

The Supreme Court blocked enforcement of the EPA's 'Good Neighbor Plan' — a rule requiring upwind states to cut nitrogen oxide emissions contributing to ozone pollution in neighboring states — while a legal challenge plays out in lower courts.

The 5-4 ruling found that the EPA likely failed to explain why its emissions-control plan still made sense after courts had already exempted more than half the states the plan was designed around, representing over 70 percent of the emissions it targeted.

EPA's response did not address the applicants' concern so much as sidestep it.
Justice Gorsuch

The majority's core criticism of the EPA's 'severability' clause as a non-answer to the challengers' key objection.

How it got here: After the D.C. Circuit denied a request to pause enforcement of the EPA rule while the challengers appealed, the states and industry groups brought emergency stay applications directly to the Supreme Court.

The Case in Depth

What happened

The EPA issued the "Good Neighbor Plan," a federal rule requiring 23 upwind states to reduce nitrogen oxide emissions that contribute to ozone pollution in neighboring downwind states. The rule was built on a cost-effectiveness analysis that assumed all 23 states would participate. After courts in separate cases blocked the rule from applying to 12 of those states — representing over 70 percent of the emissions the plan targeted — the remaining states and a group of industrial companies argued the plan's underlying analysis was no longer valid and that enforcing it against them was unlawful.

The question before the Court

The EPA designed an air-pollution rule assuming 23 states would participate, but courts had already blocked it for more than half of them. Should enforcement be paused while courts decide if the rule was still valid with so many states gone?

The Court's answer

Yes — the Court granted the stay, blocking enforcement of the EPA's Good Neighbor Plan against the states and companies that challenged it while the D.C. Circuit reviews the case on appeal.

The Court concluded that the challengers were likely to succeed on their argument that the EPA acted arbitrarily. The plan was designed around an assumption that all 23 target states would participate, but commenters specifically warned during the rulemaking process that if states dropped out, the point of diminishing returns on emissions controls — the "knee in the curve" — might shift, changing which measures were actually cost-effective. Instead of explaining why the plan remained valid for a smaller group, the EPA added only a "severability" clause saying the rule would continue regardless of how many states were covered. Because the EPA sidestepped this important question without a real explanation, the challengers were likely to win on the merits, and since the real-world harms and benefits were closely balanced on both sides, that likelihood of success was enough to tip the stay in their favor.

Curious how the Court got there? See the step-by-step legal reasoning →

Why it matters

Millions of people in downwind states who were counting on the EPA's plan to improve their air quality may wait years for those improvements while this litigation runs its course. Meanwhile, industries and states still nominally subject to the rule get a reprieve from compliance costs that could reach hundreds of millions to billions of dollars — costs they said they could never recover if the rule were ultimately struck down.

What changes now

The stay blocks enforcement of the Good Neighbor Plan against the challenging states and industry groups while the D.C. Circuit decides the merits of their appeal. If the challengers lose at the D.C. Circuit and do not seek Supreme Court review within the required time, the stay terminates automatically. If they seek Supreme Court review, the stay continues until the Court acts. The 12 states already exempt under separate court orders remain unaffected by this ruling.

What this does not decide

The Court does not decide whether the Good Neighbor Plan is ultimately invalid — only that enforcement should pause while lower courts examine that question. The ruling also does not address the validity of the EPA's underlying decisions to reject individual states' air-quality plans, which remain the subject of separate ongoing litigation.

Concurrences and dissents

Dissent — Justice Barrett

Justice Barrett argued the majority granted sweeping emergency relief based on a theory that was barely briefed by the challengers and that faces at least three major obstacles: the Clean Air Act's procedural rule likely bars a failure-to-explain challenge that was never raised during public comment; no commenter actually raised the specific concern about the plan's cost-effectiveness changing with fewer states; and the plan's emissions limits appear to have been set using nationwide industry data rather than state-specific figures, meaning the number of covered states probably would not have changed the result. She would have denied the stay.

How the Court got there

The legal reasoning, step by step

  1. Courts deciding stay applications apply a four-factor test: how likely is the party seeking the pause to win in the end, how seriously will it be hurt without the pause, how seriously will others be hurt if the pause is granted, and where does the broader public interest lie (from the Court's prior ruling in Nken v. Holder, 556 U.S. 418).
  2. Both the states and industries on one side and the EPA and downwind states on the other had strong real-world-harm arguments — billions in compliance costs versus lost air-quality benefits — so the case turned on the first factor: who was likely to prevail on the merits in the D.C. Circuit.
  3. Under the 'arbitrary and capricious' standard — the legal rule courts use to check whether an agency acted reasonably — an agency must offer a satisfactory explanation showing a rational connection between the facts it found and the choice it made, and cannot simply ignore 'an important aspect of the problem' (from Motor Vehicle Mfrs. Assn. v. State Farm, 463 U.S. 29).
  4. The EPA's plan rested on a cost-effectiveness model calibrated assuming all 23 states would participate; commenters warned during the public notice-and-comment process that if states dropped out, the 'knee in the curve' — the point at which further emissions controls stop being cost-effective — might shift, potentially requiring a different set of controls for the remaining states.
  5. Rather than address whether the plan's emissions-control measures still maximized cost-effective air-quality gains with fewer states, the EPA added a 'severability' provision saying the rule would continue unchanged regardless of how many states remained — a response the Court found sidestepped rather than answered the concern.
  6. The Court rejected the EPA's three alternative defenses: (1) the severability clause responded to the commenters' concern (it only acknowledged awareness of the issue, not an answer to it); (2) no commenter raised the specific concern with sufficient clarity (the record showed EPA itself acknowledged the concern and drafted a response to it); and (3) the challengers had to return to EPA for reconsideration before going to court (not required when the agency already had a full opportunity to address the concern during the comment period).

Doctrinal impact

Laws and provisions at issue

Clean Air Act Good Neighbor Provision, 42 U.S.C. § 7410(a)(2)(D)(i)(I)

Requires each state's air quality plan to prohibit emissions that significantly contribute to pollution problems in neighboring states.

Clean Air Act § 7607(d)(9)(A)

Allows courts to reverse EPA rules that are arbitrary or capricious.

Clean Air Act § 7607(d)(7)(B)

Bars challengers from raising in court objections that were not first raised with reasonable specificity during the public comment period.

Supreme Court Opinion

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