Client Alert: Supreme Court Strikes Tailoring Rule But Affirms GHG Regulations of "Anyway" Sources

On June 23, 2014, the U.S. Supreme Court issued its opinion for Utility Air Regulatory Group v. Environmental Protection Agency (UARG v. EPA).  In this ruling, the Court found that the potential of stationary sources to emit greenhouse gases (GHGs), on its own, may not act as a trigger for the permitting requirements under the Prevention of Significant Deterioration (PSD) and Title V provisions of the Clean Air Act (CAA).  However, the Court affirmed EPA’s ability to require “anyway” sources (i.e., sources which would need permits under the PSD and Title V programs anyway based on their emissions of conventional pollutants) to comply with Best Available Control Technology (BACT) for GHGs.