Supreme Court rejects premise for GHG Tailoring Rule, but largely maintains EPA’s authority to set GHG emission limits

By Deborah E Jennings, Catherine B Campbell and Andrew B Schatz

In a split decision, the US Supreme Court confirmed the Environmental Protection Agency’s (EPA’s) authority to regulate greenhouse gas (GHG) emissions from new and modified stationary sources that are required to obtain pre-construction and operating permits for non-GHG air pollutants. The EPA may thus require these sources to meet GHG emissions limitations. 

The court also held in its 23 June decision that the EPA may not require a source to obtain a pre-construction or operating permit solely on the basis of its potential GHG emissions. See UARG v EPA.

The court’s decision upholds the EPA’s regulation of roughly 83 per cent of stationary-source GHG emissions under its permitting programme…

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