June 26, 2014
On Monday, June 23, 2014, the Supreme Court decided Utility Air Regulatory Group v. Environmental Protection Agency. At issue was the EPA’s conclusion that its regulation of greenhouse gases from motor vehicles triggered mandatory regulation of GHGs from large stationary sources, as well as EPA’s subsequent decision to rewrite the statutory emission thresholds in order to facilitate GHG regulation. The Court held that the EPA is not obligated to regulate GHGs under the Prevention of Significant Deterioration (PSD) and Title V programs, and that the EPA is not permitted to rewrite the applicable statutory emission thresholds – an important reaffirmation that agencies are not allowed to rewrite the statutes that they administer. However, the Court also concluded that it was reasonable for the EPA to interpret the Clean Air Act to allow for the regulation of GHG emissions from sources already subject to regulation under the PSD and Title V program. Our expert discussed the opinion and its impact and future regulation of greenhouse gases.
- Robert R. Gasaway, Partner, Kirkland & Ellis LLP