The US Supreme Court has sharply clipped the wings of federal agencies, overturning a legal doctrine that for 40 years has given them significant latitude to set standards in areas ranging from environmental protection to securities regulation. The legal doctrine at the centre of the 6-3 decision on Friday is known as “Chevron deference”, stemming from a 1984 Supreme Court decision involving the oil major.
“It has become part of the warp and woof of modern government, supporting regulatory efforts of all kinds.” She also warned that the decision “is likely to produce large-scale disruption”, noting that it had been applied “in thousands of judicial decisions”. The majority sought to limit some of the fallout by clarifying that it was not over-ruling decisions that had previously been made using the standard, including the original Clean Air Act case involving Chevron.
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