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Supreme Court of the United States - 467 U.S. 837
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This legal case involves the interpretation of the Clean Air Act Amendments of 1977 and the EPA's regulation allowing states to adopt a plantwide definition of "stationary source." The Supreme Court upheld the EPA's regulation, allowing states to treat all pollution-emitting devices within the same industrial grouping as a single "bubble." The case highlights the authority of administrative agencies to create policies and regulations to fill gaps left by Congress in a program. The case also discusses the requirements for States in non-attainment areas to prepare and obtain approval of a new SIP by July 1, 1979, and comply with the EPA's interpretative Ruling of December 21, 1976, until then. It pertains to Section 127 of the Clean Air Act, which aims to facilitate economic growth while achieving standards by a fixed date and give States more flexibility than current EPA regulations. The case discusses the test for determining whether a new or modified source is subject to the EPA interpretative regulation, known as the Offset Ruling, and how any physical change that increases the amount of any air pollutant for which the standards in the area are exceeded makes a source subject to all the nonattainment requirements as a modified source. The legal case also involves the EPA's adoption of a regulation in 1980 that created a dual definition of "source" for nonattainment areas, requiring a permit whenever a change in the entire plant or one of its components would result in a significant increase in emissions. However, in 1981, a new administration reevaluated the arguments and concluded that the term "source" should have the same definition in both nonattainment areas and PSD areas. The EPA proposed a rulemaking in August 1981, which was formally promulgated in October, to simplify its rules by using the same definition of "source" for PSD, nonattainment new source review, and the construction moratorium.
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