This afternoon, Judge John Preston Bailey of the U.S. District Court for the Northern District of West Virginia ruled that the Environmental Protection Agency (EPA) unlawfully ignored its duty under Section 321 of the Clean Air Act to evaluate potential and actual job loss from its regulations. The agency has rolled out tens of billions of dollars worth of new air regulations on electric utilities, energy producers, manufacturers, vehicles and other sources and readily admits it had not done a single one of these mandatory job loss evaluations before finalizing any of those regulations.
The purpose of requirements like Section 321 is to get better regulations, the kind that achieve their environmental goals while preserving a strong economy. And while the EPA made this promise virtually every time it issued a new regulation, the facts show that it never even bothered to do a Section 321 analysis any of those times. The court gave the EPA two weeks to do a Section 321 job loss analysis for the coal industry, which has faced a regulatory burden heavier than perhaps any other sector over the past decade.
Manufacturers are pleased to see that the EPA will now have to properly evaluate the impact of its regulations on jobs. We are disappointed that this order comes years after the regulations at issue went final and at a time when the companies regulated have already started complying. We hope the EPA will comply with the law and routinely do job loss studies for each of its major new regulations before they are proposed, to ensure a better regulatory process.