Throughout today's ruling, the judges refer to the Supreme Court decision in rejecting the challengers' arguments that the EPA rules are unlawful.
"This is a huge victory for our children's future," David Doniger, senior attorney for the Climate and Clean Air Program at the Natural Resources Defense Council, said in a statement. "These rulings clear the way for EPA to keep moving forward under the Clean Air Act to limit carbon pollution from motor vehicles, new power plants and other big industrial sources."
The lawsuits were consolidated, with arguments divided into three parts and held over two days in February. The parties argued over the agency finding that greenhouse gases are pollutants that endanger human health. The judges also heard arguments against a 2010 rule on motor-vehicle emissions that opponents said improperly sets standards for stationary sources, such as steel mills and power plants.
Tailoring Rule
The court considered challenges to the EPA's tailoring rule, which limits the businesses covered by carbon regulation and phases in controls. The agency plans to phase in industrial polluters covered by the carbon rules through 2016.
The EPA argued in court filings that the tailoring rule is acceptable under the Clean Air Act and necessary to keep states from being overrun with permit requests.
The regulations require only the biggest emitters, such as power plants and oil refiners, to obtain state carbon permits before building or upgrading facilities. State officials will determine pollution controls case by case.
Virginia and Texas said the endangerment finding should be rejected because the EPA refused to reconsider its decision after learning that some of the data it relied on may have been "manipulated," referring to findings by the United Nations Intergovernmental Panel on Climate Change.
New Plants
"This decision doesn't change the fact that people aren't building new plants in the U.S.," said Jeffrey Holmstead, a lawyer at Bracewell & Giuliani LLP in Washington who wasn't involved in the case.
Holmstead, who was an EPA official during the George W. Bush administration, said Congress will ultimately step in. How soon that happens will depend on the November elections, he said.
The lead case is Coalition for Responsible Regulation Inc. v. Environmental Protection Agency, 09-1322, U.S. Court of Appeals, District of Columbia (Washington).