Major Questions Doctrine as limit on agencies

Major Questions Doctrine

What is the Major Questions Doctrine?

The Major Questions Doctrine is a principle in administrative law that limits the scope of agency authority, especially when an agency claims broad regulatory power over issues of vast economic or political significance. Under this doctrine:

Courts require clear congressional authorization before allowing an agency to decide questions of “major” economic or political significance.

Agencies cannot rely solely on vague or broad statutory language to justify actions with wide-reaching impact.

This doctrine serves as a check on agency overreach, ensuring that major policy decisions are made by Congress, not unelected bureaucrats.

Why Does the Doctrine Exist?

Separation of Powers: Ensures that major policy decisions rest with the legislature, not administrative agencies.

Democratic Accountability: Important economic or political questions should be decided by elected representatives.

Preventing Agency Overreach: Avoids agencies using ambiguous statutes to expand their power beyond what Congress intended.

Key Elements

Courts apply heightened scrutiny to agency actions involving major questions.

They demand “clear congressional authorization” or explicit statutory mandate.

If the statute is ambiguous on a major issue, courts often side against the agency’s expansive interpretation.

Landmark Cases on the Major Questions Doctrine

1. FDA v. Brown & Williamson Tobacco Corp. (2000)

Facts: FDA attempted to regulate tobacco products as drugs/devices under the Food, Drug, and Cosmetic Act.

Issue: Whether FDA had authority to regulate tobacco products.

Holding: The Supreme Court ruled that Congress did not clearly authorize FDA to regulate tobacco, a major industry with vast economic and political significance.

Significance: Established the doctrine that agencies need clear congressional mandate for major regulatory actions; courts rejected broad agency power in major questions.

2. Utility Air Regulatory Group v. EPA (2014)

Facts: EPA sought to regulate greenhouse gas emissions from stationary sources under the Clean Air Act.

Issue: Whether EPA had authority to regulate greenhouse gases under the Act.

Holding: The Court held that EPA could regulate greenhouse gases only if sources were already subject to regulation for other pollutants; broader claims were rejected without clear congressional authorization.

Significance: Reinforced the Major Questions Doctrine by requiring clear statutory basis for expansive environmental regulations.

3. King v. Burwell (2015)

Facts: Challenged IRS regulations allowing subsidies for health insurance purchased on federal exchanges under the Affordable Care Act (ACA).

Issue: Whether IRS had authority to interpret “Exchange established by the State” to include federal exchanges.

Holding: The Court upheld IRS interpretation but applied the doctrine, reasoning that Congress did not intend to withhold subsidies on federal exchanges, which would have upended the Act.

Significance: Although it upheld the agency’s action, the Court emphasized that courts must be cautious about agency power on major questions and look carefully at congressional intent.

4. West Virginia v. EPA (2022)

Facts: EPA sought to regulate carbon emissions from power plants using broad authority under the Clean Air Act.

Issue: Whether EPA had clear congressional authorization for such sweeping regulatory power.

Holding: The Court ruled that EPA lacked clear authorization for the “generation shifting” approach to emissions reductions.

Significance: A recent and critical application of the Major Questions Doctrine, limiting agency authority on major policy questions absent clear congressional mandate.

5. FDA v. American Bioscience, Inc. (1992)

Facts: FDA sought to regulate genetically engineered foods under the Food, Drug, and Cosmetic Act.

Issue: Whether FDA had clear authority for such regulation.

Holding: Court rejected FDA’s claim based on lack of clear congressional authorization for regulating genetically engineered foods.

Significance: An earlier example reinforcing the need for clear congressional intent in major regulatory issues.

6. Michigan v. EPA (2015)

Facts: EPA regulated mercury emissions from power plants.

Issue: Whether EPA considered costs before regulation.

Holding: While not strictly a Major Questions case, the Court’s demand for EPA to consider economic consequences reflects the doctrine’s principles in restraining agency overreach.

Significance: Shows judicial insistence on clear statutory guidance when agencies address major economic questions.

Summary Table of Major Questions Doctrine Cases

CaseYearIssueHoldingSignificance
FDA v. Brown & Williamson2000Tobacco regulationNo clear authority for FDAFoundation of doctrine
Utility Air Regulatory Group v. EPA2014Greenhouse gas regulationLimited EPA authorityReinforced clear authorization
King v. Burwell2015ACA subsidies interpretationUpheld agency but stressed cautionCareful application of doctrine
West Virginia v. EPA2022Carbon emissions regulationEPA lacked clear authorityRecent strong application
FDA v. American Bioscience1992Genetically engineered foodsNo clear authority for FDAEarly application
Michigan v. EPA2015Consideration of costs in regulationEPA must consider costsRelated principle of restraint

Conclusion

The Major Questions Doctrine acts as a vital judicial check on administrative agencies, especially when agencies claim authority over issues of significant economic or political importance. Courts require explicit and clear congressional authorization before allowing agencies to make sweeping regulatory decisions, thus preserving the balance of powers and ensuring democratic accountability.

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