Washington (CNN) In a loss for the Obama administration, the Supreme Court ruled that the EPA unreasonably interpreted the Clean Air Act when it decided to set limits on the emissions of toxic pollutants from power plants without first considering the costs on the industry to do so.

The ruling was 5-4, with Justice Antonin Scalia writing for the majority. Justice Elena Kagan wrote the dissent for the four liberal justices.

Bill Schuette, the attorney general for Michigan, the state named in the suit, cheered the ruling, as did several conservative groups and business organizations.

"Today's ruling is a victory for family budgets and job creation in Michigan," Schuette said in a statement. "The court agreed that we can and must find a constructive balance in protecting the environment and continuing Michigan's economic comeback."

EPA spokeswoman Melissa Harrison said the agency was reviewing the decision Monday.

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