The federal regulatory agency had denied that the environmental group could bring action, but the court disagreed, ruling that Scenic Hudson had legal standing because of their "special interest in aesthetic, conservational, and recreational aspects" of the mountain.

As Justice Hays stated, "the cost of a project is only one of several factors to be considered" in addition to "the preservation of natural beauty and national historic sites" as a basic concern.

In September, 1962, Consolidated Edison announced plans to build the country's largest pumped-storage,[4] 2,000-megawatt (MW) hydroelectric power plant on Storm King Mountain at a cost of $234 million.

[5] The proposed project also required that Con Edison buy about three hundred acres of the Black Rock Forest owned by Harvard University, which was unwilling to sell.

[6] In response to the proposal, by November 1963[4] citizens had formed the Scenic Hudson Preservation Conference to provide a stronger unified voice against the project.

Petitioners' contention that the Commission must take these factors into consideration in evaluating the Storm King project is justified by the history of the Federal Power Act.

The New York Court of Appeals set aside the Storm King license and remanded to the Federal Power Commission in a decision marking the birth of environmental law.

The court stated that "The Commission's renewed proceedings must include as a basic concern the preservation of natural beauty and national historic sites, keeping in mind that in our affluent society, the cost of a project is only one of several factors to be considered."

In addition, the court ruled that "On remand, the Commission should take the whole fisheries question into consideration before deciding whether the Storm King Project is to be licensed.

"[13] This case was significant because the court decided the Scenic Hudson Preservation Conference was an aggrieved party[14] under § 313(a) of the Federal Power Act and thus "has standing to challenge the Commission's order.

[citation needed] The Natural Resources Defense Council started in 1970 from a partnership including attorneys of the Scenic Hudson Preservation Conference, led by Stephen Duggan.