D.C. Circuit Court Rejects EPA’s Multistate Power Plant Rule

On August 21, 2012, two judges on a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit issued an opinion¹ vacating the Cross-State Air Pollution Rule (CSAPR), a complex rule designed by the U.S. Environmental Protection Agency (EPA) to regulate emissions of sulfur dioxide (SO2) and nitrogen oxide (NOx) from multiple power plants across 28 states. The rule was meant to replace the Clean Air Interstate Rule (CAIR), which, although struck down and remanded to the agency in 2008, was left in force pending its replacement. Pending revisions to CSAPR consistent with the court's instructions, CAIR will continue to remain in place.

Background

CSAPR was promulgated by the EPA under Section 110 of the federal Clean Air Act (CAA) on July 6, 2011. CSAPR was intended to establish a complementary framework of four air pollutant cap-and-trade programs that together would cut interstate transport of emissions contributing to ozone and fine particulate