Supreme Court's "Major Question Doctrine" Challenges Administrative Agencies

KEY TAKEAWAYS

• The Supreme Court served notice to federal administrative agencies that novel new regulatory programs will need a "clear statement" of authorization from Congress.
• The "major questions doctrine" provides a framework for federal courts to apply when interpreting statutes before granting Chevron
• Regulated entities are certain to rely on the major questions doctrine in coming challenges to new regulations proposed by agencies across the Biden Administration—including not just the EPA, but the SEC, CFTC, OSHA, FERC, and others.

The Supreme Court has long been skeptical of novel proposals by federal agencies to address issues of vast economic and political significance. And this week, in West Virginia v. EPA, the Court made clear that its past cases reviewing novel applications and interpretations of agency powers do constitute an identifiable "doctrine" for application by courts going forward. When an administrative agency makes a "major policy