Environmental Protection Agency v. EME Homer City Generation L.P.
The U.S. Supreme Court determined the Environmental Protection Agency properly interpreted the “Good Neighbor Provision” of the Clean Air Act, 42 U.S.C. § 7410(a), in adopting the Transport Rule. The Court found, contrary to the D.C. Circuit Court of Appeals decision to vacate the rule entirely, the EPA did not act arbitrarily and capriciously by integrating a cost-effective allocation of emission reductions or by disallowing states a second opportunity to file a State Implementation Plan before promulgating a Federal Implementation Plan.