In an opinion released this morning, the U.S. Supreme Court reversed a ruling by the U.S. Court of Appeals that vacated the U.S. Environmental Protection Agency’s (EPA) emissions transport rule. The Supreme Court remanded consideration of legal challenges to the Cross-State Air Pollution Rule (CSAPR) for further proceedings, and the EPA may have the option to reinstate the program.
In August 2012, the U.S. Court of Appeals for the D.C. Circuit vacated the CSAPR program and sent it back to EPA for further revision. In the meantime, EPA continued to administer the legacy Clean Air Interstate Rule (CAIR) program, which CSAPR was meant to replace. The District Court initially suspended CSAPR in a rule handed down late 2011.
Today’s opinion stated that the EPA followed proper procedures for implementing its emissions control guidelines for states. In addition, the Court held that the analysis used by EPA to craft the CSAPR program was appropriate, thereby overturning the underlying premise of the Appeals Court’s decision.
For further information on the impact of today’s decision on SO2 and NOX emissions trading markets, please contact our Emissions Markets team at: +1 914.323.0255 or firstname.lastname@example.org.