At least, I assume that's the rationale behind what otherwise seems like a non sequitur:
Steele said the post-Katrina workload on his short-staffed office has been intense, with just four project managers available to oversee work in the six Mississippi counties: Hancock, Harrison and Jackson, which abut the Gulf of Mexico; and Pearl River, Stone and George to the north. The Corps is also grappling with a June decision by the U.S. Supreme Court that muddied the federal agency's authority in regulating virtually all of the nation's wetlands, a sweeping power it had claimed under the 1972 Clean Water Act.(Neat use of metaphor with the "muddied" there.) I have a mental image of the Army Corps getting recent Supreme Court decisions about their wetlands jurisdiction and mutter, "To hell with all y'all, we ain't regulatin' anything, see how you like that!"