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Administrative Law Keyed to Breyer
Michigan v. Environmental Protection Agency
Citation:
576 U.S. 743 (2015)Facts
The Clean Air Act Amendments of 1990 established a program to regulate hazardous air pollutants from stationary sources. For power plants specifically, Congress created a unique procedure: EPA was required to conduct a study of health hazards from power plant emissions and then determine if regulation was “appropriate and necessary.” In 2000, EPA found regulation of coal and oil-fired power plants was “appropriate and necessary” based on health and environmental risks, explicitly stating that costs should not be considered at this initial stage. EPA later promulgated emissions standards in 2012, which included extensive cost considerations in setting the standards themselves. EPA’s Regulatory Impact Analysis estimated compliance costs at $9.6 billion annually, with benefits ranging from $37 to $90 billion. Petitioners challenged EPA’s refusal to consider costs when making its threshold “appropriate and necessary” determination.
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