States Challenge 2011 Settlement Requiring EPA To Propose And Finalize A Rule Regulating Existing Coal-Fired Power Plants

On August 1, 2014, several states petitioned the United States Court of Appeals for the District of Columbia Circuit for review of a final settlement agreement between United States Environmental Protection Agency and various other states, governmental entities, and private organizations. Pursuant to the settlement agreement, EPA committed to proposing and finalizing a rule requiring states to regulate existing coal-fired power plants under Section 111(d) of the Clean Air Act ("CAA"). On June 18, 2014, EPA issued a proposed rule regulating greenhouse gas emissions from existing coal-fired power plants under Section 111(d).

In the petition for review, the petitioner-states argue that certain  intervening events following execution of the settlement agreement, but before EPA issued its proposed rule of June 18, 2014, rendered unlawful EPA's regulation of existing coal-fired power plants under Section 111(d). Namely, the petitioners argue that EPA's February 26, 2012