Be Careful what you wish for, you just might get it!

The case is American Electric Power Co. v. Connecticut, 10-174.
The Supreme Court unanimously ruled on a federal lawsuit Monday by states and conservation groups trying to force cuts in greenhouse gas emissions from power plants.

Eight states initiated this novel approach. They argued that under traditional common law, power plants were creating a public nuisance, and that state governments had the power to intervene. Eight states were originally involved: California, Connecticut, Iowa, New Jersey, New York, Rhode Island and Wisconsin. When Republican governors took over in New Jersey and Wisconsin, those states withdrew from the case.

The court said that the authority to seek reductions in emissions rests with the Environmental Protection Agency, not the courts.

EPA said that it will issue new regulations by May 2012 to reduce power plants' emissions of carbon dioxide, the chief greenhouse gas. The Obama administration has already started controlling heat-trapping pollution from automobiles and from some of the largest, and most polluting, industrial plants.

Justice Ruth Bader Ginsburg, writing for the court, said the Clean Air Act gives the EPA authority to regulate carbon-dioxide emissions from power plants.

The landmark environmental law leaves no room for what Ginsburg described as a parallel track, "control of greenhouse gas emissions by federal judges."

On the other hand, Ginsburg said, that the states and conservation groups can go to federal court under the Clean Air Act if they object to EPA's eventual decision.

The private defendants in the suit are American Electric Power Co. of Ohio, Cinergy Co., now part of Duke Energy Corp. of North Carolina; Southern Co. Inc. of Georgia, and Xcel Energy Inc. of Minnesota. Five of the biggest greenhouse gas emitters in America. Four of them are part of the Edison Electric Institute, a major industry group.

If the EPA puts forward a national cap & trade regime – much like say Europe; then you have some good shorts on your investment list above. If they don’t, you are still likely to see stiffer state regulations on emissions and that can go to point of origin – simple meaning -- a dirty coal plant in Utah cannot sell power in California without being penalized.

In any event we can all wheeze, cough, and tear while sucking in some more dirty air.