The U.S. Supreme Court case Hodel v. Virginia Surface Mining & Reclamation Association, Inc., in 1980 revolved around the constitutionality of certain provisions within the Surface Mining Control and Reclamation Act (SMCRA) of 1977. The SMCRA was enacted to regulate environmental effects from coal mining activities, but it was challenged by a group of coal companies and individuals who claimed that it violated principles of federalism as well as their Fifth Amendment rights due to its regulatory nature and imposition on private property without just compensation. However, the Supreme Court upheld most parts of the act with a majority decision stating that Congress had authority under Commerce Clause to enact such regulations for interstate commerce purposes; also noting that there wasn't any violation against Fifth Amendment's Takings Clause since these were not physical invasions or appropriations but rather restrictions on use which did not deny all economically beneficial uses.

In the dissenting opinion for Hodel v. Virginia Surface Mining & Reclamation Association, Inc., Justice William Rehnquist argued that the Surface Mining Control and Reclamation Act of 1977 was an unconstitutional overreach of federal power. He believed that it violated principles of federalism by intruding on states' rights to regulate their own natural resources. The majority held that Congress had authority under the Commerce Clause to enact this legislation due to environmental impacts crossing state lines; however, Justice Rehnquist disagreed with this interpretation, asserting instead that such a broad reading would render any limits on Congressional power meaningless. He also took issue with provisions in the law allowing federal officials to seize privately owned land without compensation if owners failed to comply with regulations - he saw this as a violation of Fifth Amendment property rights protections.