Regulatory Tracker

Clean Air Power Sector

Air Transport Rules History: Cross-State Air Pollution Rule/Good Neighbor Rule

Last updated:

January 13, 2025

Agencies

EPA

Industry smoke stacks set against an orange hazed background.

Current Status

In February 2023, EPA found 21 states’ state implementation plans insufficient in protecting downwind states from interstate ozone, which is required before EPA can issue an interstate air pollution program federal implementation plan (FIP).

On March 15, 2023 EPA finalized the Good Neighbor Plan Rule as a FIP, which implements NOx limits on power plants and industrial sources (for the first time) in 23 states. The Rule is based on previous interstate air pollution program for power plants, with several revisions including dynamic budgets and annual recalibration of the allowance bank.

Litigation is ongoing regarding the merits of the rule as well as EPA’s denial of state SIPs. Several courts stayed EPA’s decision to deny states SIPs and on June 27, 2024, the Supreme Court stayed the enforcement of the Good Neighbor Rule for the applicants in Ohio v EPA. In response to the Supreme Court’s stay, on Nov. 6, 2024, EPA issued an interim final rule confirming that the Good Neighbor Rule is stayed nationwide. On Dec. 3 2024, EPA offered a “fuller explanation” for how the Good Neighbor Rule would operate if some states dropped out of the plan as part of ongoing litigation in the D.C. Circuit. On Jan. 13, 2025, the Supreme Court denied cert to Ohio and other states challenging the DC Circuit’s decision to allow EPA to respond to comments to the Good Neighbor Rule.

Why it Matters

The Clean Air Act’s (CAA) “Good Neighbor” provision requires upwind states to ensure that the air pollution they create does not affect downwind states’ ability to meet the NAAQS. Upwind states are required to address interstate pollution in their State Implementation Plans (SIPs) for implementing the NAAQS and if EPA finds the SIP inadequate it must issue a Federal Implementation Plan (FIP).

A downwind state can file a CAA section 126 petition asking EPA to regulate pollution from sources in another state when that pollution is impairing its air quality. EPA established the Cross-State Air Pollution Rule (CSAPR) FIP to require upwind states to reduce interstate pollution and ensure downwind states can meet the NAAQS for the 2008 ozone standard. In 2023, EPA finalized the Good Neighbor Plan FIP to address air transport related to the 2015 ozone standard.

Timeline

Biden Administration

Jan. 13 2025 The Supreme Court declined to review the D.C. Circuit’s decision to allow EPA to more fully respond to comments on its Good Neighbor Rule.

Dec. 3, 2024 EPA responded to the concerns expressed by commenters on the efficacy of the Good Neighbor Rule if some states dropped out of the plan. The “fuller response” was submitted following the D.C. Circuit’s remand for additional comments in September. State of Utah v. EPA, Docket No. 24-01040 (D.C. Cir. Feb. 28, 2024).

Nov. 6, 2024 EPA issued an interim final rule that imposed a nationwide administrative stay on the Good Neighbor Rule, clarifying the status of the Good Neighbor Rule following the Supreme Court’s emergency stay in Ohio v. EPA. EPA further detailed the trading groups that each state is subject to in the interim.

Sep. 12, 2024 The D.C. Circuit ordered that the record be remanded to allow EPA to further respond to comments in the record relating to the severability of the Good Neighbor Plan. Only the record, and not the case, was remanded, and the rule was not vacated. It was further ordered that the consolidated cases be held in abeyance pending further order of the court. State of Utah v. EPA, Docket No. 24-01040 (D.C. Cir. Feb. 28, 2024).

June 27, 2024 The Supreme Court granted states and industry applicants’ request to stay the Good Neighbor Plan while the case proceeds in the D.C. Circuit. In the majority opinion, the Court focused on the question of whether the emission control installation costs were reasonable regardless of the number of states subject to the Rule. The Court found that some comments on the Rule raised the concern that EPA failed to consider how its cost-effectiveness methodology would yield different results if some of the states were to leave the program and concluded that EPA’s failure to address these concerns in the Rule means that it was not “reasonably explained.” Based on the Court’s conclusion of likelihood of success on EPA’s failure to reasonably respond to comments, it granted the applicants’ stay while the D.C. Circuit considers the case. The dissent strongly criticizes the majority’s decision to issue the stay without “fully engaging with both the relevant law and the voluminous record.” Ohio v. EPA, 603 U. S. (2024).

April 24, 2024 The D.C. Circuit stayed litigation pending the Supreme Court petition. State of Utah v. EPA, Docket No. 24-01040 (D.C. Cir. Feb. 28, 2024).

April 1, 2024 Oklahoma and Utah filed a petition with the Supreme Court asking them to reverse the Tenth Circuit’s decision finding that the D.C. Circuit is the appropriate venue for ruling on SIP denials. Oklahoma, et al, v. EPA, Docket No. 23-1067 (Apr. 1, 2024).  

May 8, 2024 Oral argument was held in Kentucky v. EPA, Docket No. 23-03216 (6th Cir. Mar 13, 2023).

May 1, 2024 EPA published a proposed settlement with Nevada Cement Company that would establish a process for Nevada Cement Company to apply to EPA for a case-by-cast emission limit request in exchange for lifting the Ninth Circuit stay. Nevada Cement Co., LLC v. EPA et al, Docket No. 23-682 (9th Cir. Apr. 14, 2023). Comments are due by May 31, 2024.

Mar. 29, 2024 EPA requested a petition for rehearing en banc of the Fourth Circuit’s denial of EPA’s preliminary motion to transfer or dismiss West Virginia’s petition in State of West Virginia v. EPA. Docket No. 23-01418 (4th Cir. Apr 14, 2023).

Mar. 28, 2024 EPA partially denied four petitions for reconsideration and associated requests for administrative stay of the federal Good Neighbor Plan. The petitions were submitted by the United States Steel Corporation, the Minnesota Good Neighbor Coalition, the State of Arkansas, and Hybar LLC. Read EPA’s response.

Feb. 28, 2024 Parties in Tenth Circuit case file petitions in D.C. Circuit. State of Utah v. EPA, Docket No. 24-01040 (D.C. Cir. Feb. 28, 2024).

Feb. 21, 2024 The Supreme Court heard oral argument for the four consolidated cases challenging the EPA’s “good neighbor” rule. Listen to the recording and find the transcript.  Ohio, et al. v. EPA, Docket No. 23A349 (Dec. 20, 2023); American Forest & Paper Association, et al. v. EPA, Docket No. 23A351 (Dec. 20, 2023); Kinder Morgan, Inc., et al. v. EPA, Docket No. 23A350 (Dec. 20, 2023); United States Steel v. EPA, Docket No. 23A384 (Dec. 20, 2023).

Feb. 16, 2024 The Tenth Circuit granted in part a motion for transfer of Utah v. EPA to the DC Circuit Court. State of Utah v. EPA, et al, Docket No. 23-09509 (10th Cir. Feb 13, 2023)

Jan. 24, 2024 EPA proposed adding five states to the Good Neighbor Plan, a move that would bring Arizona, Iowa, Kansas, New Mexico, and Tennessee under the FIP. The proposal will be subject to a 45-day comment period once it is published. Read the full proposed rule to bring five new states under the Good Neighbor Plan.

Jan. 10, 2024 The Fourth Circuit denied the EPA’s preliminary motion to transfer or dismiss West Virginia’s petition in State of West Virginia v. EPA. The court granted West Virginia’s motion to stay pending the outcome of its petition for review. Read the full opinion. Docket No. 23-01418 (4th Cir. Apr 14, 2023).

Dec. 20, 2023 The Supreme Court deferred a request by challengers for an emergency stay to EPA’s SIP disapprovals, pending oral arguments for the four consolidated cases in February 2024. In its order, the Supreme Court noted that parties should be prepared to “address, among other issues related to the challenge based on the SIP disapprovals, whether the emissions controls imposed by the Rule are reasonable regardless of the number of States subject to the Rule.” Ohio, et al. v. EPA, Docket No. 23A349 (Dec. 20, 2023); American Forest & Paper Association, et al. v. EPA, Docket No. 23A351 (Dec. 20, 2023); Kinder Morgan, Inc., et al. v. EPA, Docket No. 23A350 (Dec. 20, 2023); United States Steel v. EPA, Docket No. 23A384 (Dec. 20, 2023).

Dec. 4, 2023 Fifth Circuit Court heared oral arguments on State of Texas v. EPA, the case in which Texas, Louisiana, and Mississippi are requesting that the court reject EPA’s disapprovals of their respective state good neighbor plans. Listen to the full recording. Docket No. 23-60069 (5th Cir. Feb. 14, 2023).

Nov. 30, 2023 EPA published the results of the Good Neighbor Plan’s first ozone season.

Nov. 15, 2023 The DC Circuit consolidated the following cases: Commonwealth of Kentucky, Energy and Environment Cabinet v. EPA, et al, Docket No. 23-1314 (D.C. Cir. Nov. 09, 2023); Commonwealth of Kentucky v. EPA, et al, Docket No. 23-01315 (D.C. Cir. Nov. 09, 2023); Energy Transfer LP v. EPA, et al, Docket No. 23-01316 (D.C. Cir. Nov. 09, 2023); and Buckeye Power, Inc., et al v. EPA, et al, Docket No. 23-01317 (D.C. Cir. Nov. 09, 2023) with State of Utah v. EPA, et al, Docket No. 23-01157 (D.C. Cir. Jun. 20, 2023).

Nov. 9, 2023 Sixth Circuit Court granted motion to transfer Kentucky Energy and Environment Cabinet v. EPA, et al, Docket No. 23-3605 (6th Cir. Jul 24, 2023) to the DC Circuit.

Nov. 7, 2023 The DC Circuit filed an order to consolidate Energy Transfer L.P. v. EPA, et al, Docket No. 23-01306 (D.C. Cir. Nov. 6, 2023) and Energy Transfer L.P. v. EPA, et al, Docket No. 23-01307, (D.C. Cir. Nov. 6, 2023) with State of Utah v. EPA, et al, Docket No. 23-01157 (D.C. Cir. Jun. 20, 2023).

Nov. 6, 2023 The Seventh Circuit granted EPA’s motion to transfer the proceeding to the DC Circuit. Energy Transfer LP v. EPA, et al, Docket No. 23-02510 (7th Cir. Aug. 3, 2023)

Mar. 15, 2023 EPA released its final Good Neighbor Plan Rule, which implements NOx limits on power plants and industrial sources (for the first time) in 23 states. The Rule carries forward previous interstate air pollution program cap-and-trade programs for power plants, with several revisions including dynamic budgets and annual recalibration of the allowance bank. It also includes backstop emissions rates and flexibilities to ensure states meet the 2015 ozone NAAQS attainment deadlines, without compromising electric grid reliability. For more information on this rule, you can read our summary of the rule.

Oct. 18, 2023 Ohio, Indiana, and West Virginia and industry filed emergency applications for a stay of the Good Neighbor Plan rule with the Supreme Court. Ohio, et al. v. EPA, Docket No. 23-1183 (Oct. 18, 2023); American Forest & Paper Association, et al. v. EPA, Docket No 23-1191 (Oct. 18, 2023); Kinder Morgan, Inc., et al. v. EPA, Docket No 23-1190 (Oct. 18, 2023).

Oct. 18, 2023 EPA posted a new webpage to help Industrial Sources comply with the Good Neighbor Plan requirements.

Sept. 29, 2023 EPA issued its second interim final rule responding to judicial stays of EPA’s SIP disapprovals by staying implementation of the Good Neighbor Plan FIP in Alabama, Minnesota, Nevada, Oklahoma, Utah, and West Virginia. The rule ensures that sources in these states will be subject to previously established interstate air pollution reduction requirements.

Aug. 14, 2023 EPA proposed to approve Wyoming’s 2015 ozone Interstate Air Transport plan, which would remove Wyoming from being subject to Good Neighbor Plan FIP requirements.  Sept. 25, 2023 The DC Circuit rejected petitioners’ motion to stay the Good Neighbor Plan rule pending court review. Utah v. EPA, No. 23-1157 (D.C. Cir. June 20, 2023).

Aug. 4, 2023 Alabama challenged the Good Neighbor Plan Rule in the 11th Circuit. Alabama, et al. v. EPA, No. 23-12528 (Aug. 4, 2023).

Aug. 3, 2023 Energy Transfer LP challenged the Good Neighbor Plan Rule in the 7th CircuitEnergy Transfer LP v. EPA, No. 23-2510 (7th Cir. Aug. 3, 2023).

Aug. 2, 2023 EPA published a Notice of Forthcoming EPA Action to Address Additional Judicial Stay Orders in Minnesota, Nevada, Oklahoma, and Utah. Arkansas challenges the Good Neighbor Plan Rule in the 8th CircuitArkansas, et al. v. EPA, No. 23-2769 (8th Cir. Aug. 2, 2023).

July 31, 2023 The 10th Circuit stayed Utah’s and Oklahoma’s SIP denials. Utah v. EPA, No. 23-09509 (10th Cir. Feb 13, 2023); Oklahoma v. EPA, No. 23-9514 (10th Cir. Mar. 2, 2023).

July 24, 2023 Kentucky challenged the Good Neighbor Plan Rule in the 6th CircuitKentucky, et al. v. EPA, No. 23-3605 (6th Cir. July 24, 2023).

July 5, 2023 The 8th Circuit stayed Minnesota’s SIP disapproval. Allete, Inc. v. EPA, No. 23-1776 (8th Cir. Apr. 14, 2023).

July 3, 2023 The 9th Circuit stayed Nevada’s SIP disapproval. Nevada Cement Co. v. EPA, No. 23-682 (9th Cir. Jun. 6, 2023).

June 29, 2023 EPA issued an Interim Final Rule Amending the Good Neighbor Plan in response to regional court stay orders in Arkansas, Kentucky, Louisiana, Mississippi, Missouri, and Texas.

June 20, 2023 The State of Utah challenged the Good Neighbor Plan Rule in the D.C. CircuitUtah v. EPA, No. 23-1157 (D.C. Cir. June 20, 2023).

June 1, 2023 EPA’s Principal Deputy Assistant Administrator of the Office of Air and Radiation, Joe Goffman, published a memo with a notice of forthcoming EPA action to address the judicial stay orders in regional courts.

June 6, 2023 Tulsa Cement filed a petition challenging EPA’s Good Neighbor Plan in the 10th Circuit. Tulsa Cement d/b/a/ Central Plains Cement Co. LLC v. EPA, No. 23-9551 (10th Cir. Jun. 6, 2023). Nevada Cement Company filed a petition challenging the Good Neighbor Plan in the 9th Circuit. Nevada Cement Company v. EPA, No. 23-1098 (9th Cir. Jun. 6, 2023).

June 5, 2023 EPA published the final Good Neighbor Plan rule in the Federal Register. On the same day, Texas and several companies filed petitions challenging the rule in the 5th CircuitState of Texas, et al., v. EPA, No. 23-60300 (5th Cir. Jun. 5, 2023).

May 31, 2023 The 6th Circuit granted Kentucky’s request for a temporary “administrative stay” of EPA’s rule disapproving Kentucky’s SIP, while the court reviewed Kentucky’s motion to stay enforcement. Kentucky v. EPA, Docket No. 23-3216 (6th Cir. Mar. 13, 2023).

May 25, 2023 The 8th Circuit granted Arkansas’ request to stay EPA’s rejection of the state’s implementation plan. State of Arkansas v. EPA, No. 23-01320 (8th Cir. Feb 16, 2023).

May 1, 2023 The Fifth Circuit rejected EPA’s motion to transfer the case to the DC Circuit and granted the states’ motions to stay EPA’s final rule rejecting the SIPs submitted by Texas and Louisiana. Texas, et al. v. EPA, Docket No. 23-60069 (5th Cir. Feb. 14, 2023).

Apr. 25, 2023 The Eighth Circuit denied EPA’s motion to dismiss or move the Arkansas litigation to the D.C. Circuit. State of Arkansas v. EPA, No. 23-01320 (8th Cir. Feb 16, 2023).

Apr. 25, 2023 The DC Circuit rejected Midwest Ozone Group’s petition for rehearing en banc. Midwest Ozone Group v. EPA, et al, Docket No. 21-01146 (D.C. Cir. Jun. 25, 2021).

Apr. 17, 2023 Following the DC Circuit Court’s March 3 opinion rejecting Midwest Ozone Group’s challenge to EPA’s CSAPR revision, Midwest Ozone Group files a petition for a rehearing. Midwest Ozone Group v. EPA, et al, Docket No. 21-01146 (D.C. Cir. Jun. 25, 2021).

Apr. 14, 2023 Power producers in Minnesota challenged EPA’s rejection of the Minnesota SIPAllete, Inc. v. EPA, Docket No. 23-1775 (8th Cir. Apr. 14, 2023). West Virginia challenged EPA’s rejection of the West Virginia SIPWest Virginia v. EPA, Docket No. 23-1418 (4th Cir. Apr. 14, 2023). Nevada Cement Company challenged EPA’s rejection of the Nevada SIPNevada Cement Co. v. EPA, Docket No. 23-682 (9th Cir. Apr. 14, 2023).

Apr. 13, 2023 Missouri challenged EPA’s rejection of the Missouri SIPMissouri v. EPA, Docket No. 23-1719 (8th Cir. Apr. 13, 2023). Alabama challenged EPA’s rejection of the Alabama SIP. Alabama v. EPA, Docket No. 23-11173, (11th Cir. Apr. 13, 2023). In another response to EPA’s March rejection of proposed SIPs, the states of Utah, Nevada, and Oklahoma, and industry backers file protective suits in the D.C. Circuit Court, and the DC Circuit consolidated the cases under State of Utah v. EPA, No. 23-1102 (D.C. Cir. Apr. 13, 2023).

Mar. 20, 2023 The State of Louisiana filed a petition for review of EPA’s rule disapproving Louisiana’s SIP in the Fifth Circuit. Texas, et al. v. EPA, Docket No. 23-60069 (5th Cir. Feb. 14, 2023).

Mar. 17, 2023 The Commonwealth of Kentucky challenged EPA’s rejection of the Kentucky SIPKentucky v. EPA, Docket No. 23-3225 (6th Cir. Mar. 17, 2023).

Mar. 16, 2023 Mississippi challenged EPA’s rejection of the Mississippi SIP. The Fifth Circuit consolidates the Mississippi proceeding under the Texas proceeding. State of Texas v. EPA, et al. v. EPA, Docket No. 23-60069 (5th Cir. Feb. 14, 2023).

Mar. 13, 2023 Kentucky challenged EPA’s rejection of the Kentucky SIP. Kentucky v. EPA, Docket No. 23-3216 (6th Cir. Mar. 13, 2023).

Mar. 7, 2023 State of Utah filed a motion for stay of the Final Rule disapproving the state SIP. State of Utah v. EPA, No. 23-09509 (10th Cir. Feb 13, 2023).

Mar. 3, 2023 The DC Circuit upheld the 2021 CSAPR Update for the 2008 Ozone NAAQS, rejecting Midwest Ozone Group’s argument that EPA’s technical basis for rule was arbitrary and capricious. Midwest Ozone Group v. EPA. No. 21-01146 (D.C. Cir.).

Mar. 2, 2023 The State of Oklahoma challenged EPA’s rejection of the Oklahoma SIPOklahoma v. EPA, Docket No. 23-9514 (10th Cir. Mar. 2, 2023).

Feb. 16, 2023 Following EPA’s disapproval of 21 SIPs, UtahTexas, and Arkansas sued EPA over EPA’s rejection of their SIPs. State of Utah v. EPA, No. 23-09509 (10th Cir. Feb 13, 2023); State of Texas v. EPA, No. 23-60069 (5th Cir. Feb 14, 2023); State of Arkansas v. EPA, No. 23-01320 (8th Cir. Feb 16, 2023).

Feb. 13, 2023 The EPA disapproved of 21 states’ “Good Neighbor” SIPs, which were submitted pursuant to the “interstate transport” or “good neighbor” provisions of the 2015 NAAQS. If these states are unable to obtain EPA approval on updated SIPs in the next two years, they will be subject to an FIP.

Jan. 24, 2023 The Northern District of California approves the Nov. 3, 2022, proposed consent decree between the parties in Sierra Club et al v. Environmental Protection Agency, which establishes FIP deadlines for the four states. Sierra Club, et al. v. Regan, No. 3:22–cv–01992–JD (N.D. Cal.).

Nov. 3, 2022 EPA published a proposed consent decree in Sierra Club, et al. v. Regan, in which Sierra Club alleged that EPA failed to promulgate timely FIPs to address “Good Neighbor” requirements of the 2015 Ozone NAAQs. If approved in its proposed form, the EPA must issue FIPs for four states by the following deadlines: Pennsylvania, Utah, and Virginia by March 15, 2023, and New Mexico by June 1, 2024. Sierra Club, et al. v. Regan, No. 3:22–cv–01992–JD (N.D. Cal.).

Sept. 28, 2022 The DC Circuit held an oral argument in Midwest Ozone Group v. EPA. No. 21-01146 (D.C. Cir.).

Aug. 26, 2022 EPA released a final rule, revising certain administrative deadlines under CSAPR’s trading program. EPA made clear it is not taking final action with respect to the remainder of the April 2022 proposed rule.

Aug. 17, 2022 Alabama sued EPA in the United States Court of Appeals for the Eleventh Circuit, challenging EPA’s June 22, 2022 rule finding that Alabama’s SIP did not satisfy the CAA good neighbor provisions.

June 22, 2022 EPA published a notice that Alabama failed to submit a SIP sufficient to limit interstate emissions under the 2015 ozone NAAQS, which clears the way for EPA to include the state in the interstate trading program. EPA also published a proposed consent decree with WildEarth Guardians that would require EPA to determine whether the proposed good neighbor rule would apply to New Mexico. WildEarth Guardians v. Regan, No. 1:22-cv-174-RB-GBW (D.N.M.).

May 24, 2022 EPA proposed to disapprove “good neighbor” interstate ozone transport SIPs by CaliforniaUtahNevada, and Wyoming. EPA proposed to regulate these states for the first time under the interstate trading program.

Apr. 6, 2022 EPA published its proposed Good Neighbor Plan in the Federal Register to address states’ obligation to eliminate significant contribution to nonattainment of the 2015 ozone standard. The proposal includes new requirements for EGUs under CSAPR as well as “dynamic adjustments of emissions budgets over time and backstop daily emissions rate limits for most coal-fired units” affected by the rule. EPA also proposes NOx emission limits for certain industrial sources including: reciprocating internal combustion engines for natural gas pipelines; cement kilns; iron and steel boilers and furnaces; furnaces in glass and glass product manufacturing; and certain large boilers in chemical manufacturing, petroleum and coal products manufacturing, and pulp, paper, and paperboard mills.

Mar. 29, 2022 Several NGOs filed suit in the Northern District of California to compel EPA to to promulgate federal Good Neighbor plans for New Mexico, Pennsylvania, Utah, and Virginia for the 2015 ozone standard, which are states that were not included in the consent decree leading to the 2015 Ozone Good Neighbor Plan. The complaint recognizes that EPA has signed, but not finalized, proposed plans for Pennsylvania, Utah, and Virginia and has not proposed a plan for New Mexico. Sierra Club et al v. Environmental Protection Agency, No. 3:22-cv-01992 (N.D. Cal.).

Feb. 14, 2022 Downwind states filed a notice of intent to sue on EPA’s failure to implement a federal implementation plan for Pennsylvania and Virginia.

Oct. 15, 2021 EPA released a proposed consent decree in Downwinders at Risk v. Regan, which required EPA to approve or disapprove six states’ 2015 ozone SIPs by April 30, 2022 or propose a FIP addressing the good neighbor obligations for such states by February 22, 2022, and a final FIP by December 15, 2022.

July 29, 2021 EPA published a notice of a proposed consent decree in State of New York, et al. v. Regan et al., No. 21 Civ. 252 (ALC) (S.D.N.Y.) with New York, Connecticut, Delaware, Massachusetts, and New Jersey, and the City of New York, which established deadlines for EPA to act under the good neighbor provision of the Act to either approve or disapprove portions of certain 2015 ozone NAAQS SIPs.

July 9, 2021 The District Court for the District of Columbia dismissed Downwinders at Risk v. Wheeler, No. 1:20-cv-00349 (D.D.C.) in light of EPA’s CSAPR Update rule published on April 30.

June 25, 2021 The Midwest Ozone Group filed a petition for review of EPA’s 2021 CSAPR Update with the D.C. Circuit. Midwest Ozone Group v. EPA, No. 21-01146 (D.C. Cir.). Oral argument scheduled for May 13, 2022.

April 30, 2021 EPA published a final rule updating the CSAPR for the 2008 ozone NAAQS. The rule regulates the release of nitrogen oxides in twelve states and allows emissions credit trading. The rule issues new or amended FIPs for New York and Pennsylvania, and accepts Texas’ FIP promulgated under the CSAPR Update as satisfying the 2008 ozone NAAQS requirements.

April 8, 2021 WildEarth Guardians sued EPA for not making a determination that Colorado failed to submit a plan to address air pollution in the Denver Metro/North Front Range area by an August 2020 deadline. The area is in “serious” nonattainment with the 2008 ozone NAAQS. WildEarth Guardians v. Regan, No. 21-994 (D. Colo.).

Jan. 20, 2021 In his Public Health & Environment Executive Order, President Biden directed EPA to consider promulgating a Federal Implementation Plan for states that have failed to submit state implementation plans satisfying the 2008 ozone NAAQS, specifically California, Connecticut, New York, Pennsylvania, and Texas.

Trump Administration

Jan. 12, 2021 A coalition of northeastern states sued EPA over the agency’s failure to “timely act” within the required 12-month timeframe on upwind states’ plans to comply with the 2015 ozone NAAQS under the Clean Air Act’s Good Neighbor Provision. State of New York et al. v. Wheeler, No. 1:21-cv-252 (S.D.N.Y.).

Oct. 30, 2020 The Center for Biological Diversity (CBD) filed an opening brief in its suit to vacate EPA’s approval of Colorado’s ozone SIP, arguing that the plan underestimates pollution effects on downwind states Utah and Mexico. CBD also argued that EPA arbitrarily included emissions reductions from rules EPA has repealed or is attempting to repeal, including the Clean Power Plan. Center for Biological Diversity v. EPA, No. 20-09560 (10th Cir.).

Oct. 30, 2020 EPA issued a proposed rule in response to the D.C. Circuit’s remand in Wisconsin v. EPA, No. 16-1406, to resolve 21 states’ outstanding interstate ozone transport obligations under the 2008 ozone NAAQS. 

Sept. 15, 2020 EPA sent the proposed revisions to the CSAPR update rule to the White House Office of Information and Regulatory Affairs for review. This proposal is in response to the D.C. Circuit’s ruling in Wisconsin v. EPA, No. 16-1406.

July 28, 2020 Judge Koeltl ruled in favor of the states in New Jersey v. Wheeler, No. 20-cv-1425 (S.D.N.Y.). The court set a March 15, 2021 deadline for EPA to finalize plans for upwind states that meet the Clean Air Act’s “good neighbor” requirements.

Feb. 19, 2020 New Jersey, Connecticut, Delaware, New York, Massachusetts, and New York City filed a lawsuit seeking to compel EPA to adopt federal Good Neighbor plans for seven upwind states (Illinois, Indiana, Michigan, Ohio, Pennsylvania, Virginia, and West Virginia). New Jersey v. Wheeler, No. 20-cv-1425 (S.D.N.Y.). The lawsuit is similar to New York v. Wheeler, No. 1:20-cv-00419 (S.D.N.Y).

Feb. 14, 2020 New York and Connecticut voluntarily dismissed their Jan. 16, 2020 lawsuit. New York v. Wheeler, No. 1:20-cv-00419 (S.D.N.Y).

Feb. 7, 2020 A coalition of environmental groups sued EPA seeking to compel the agency to adopt federal Good Neighbor plans for twenty upwind states. Downwinders at Risk v. Wheeler, No. 1:20-cv-00349 (D.D.C.).

Jan. 16, 2020 New York and Connecticut sued EPA seeking to compel the agency to promulgate federal implementation plans for sources in five upwind states (Illinois, Michigan, Pennsylvania, Virginia, and West Virginia) whose state plans failed to fully comply with the Good Neighbor provision. New York v. Wheeler, No. 1:20-cv-00419 (S.D.N.Y).

Jan. 3, 2020 Following EPA’s actions in November, New Jersey, Connecticut, and New York voluntarily dismissed their lawsuit seeking to compel EPA to find that Pennsylvania and Virginia failed to submit Good Neighbor State Implementation Plans.

Nov. 22, 2019 EPA released a final rule finding that seven states (Maine, New Mexico, Pennsylvania, Rhode Island, South Dakota, Utah, and Virginia) failed to submit complete state implementation plans to limit interstate pollution that affects downwind states’ ability to meet the 2015 ozone NAAQS. If EPA does not approve interstate transport state implementation plans for these states within two years of making this determination, EPA will be required to promulgate federal implementation plans.

Oct. 29, 2019 New Jersey and Connecticut sued EPA for failing to meet its April 1, 2019 deadline to take action on Pennsylvania and Virginia for their failure to file Good Neighbor State Implementation Plans. Pennsylvania and Virginia are both upwind of New Jersey and Connecticut. New Jersey v. Wheeler, No. 1:19-cv-03247 (D.D.C).

Oct. 28, 2019 The deadline passed for EPA to appeal the two D.C. Circuit decisions from Sep. and Oct. 2019 ordering the agency to revisit its Cross-State Air Pollution Rule update and the Close-Out Rule. This means EPA is accepting the decisions and will need to make changes to those rules. New York v. EPA, No. 19-1019 and Wisconsin v. EPA, No. 16-1406 (D.C. Cir.).

Oct. 1, 2019 The D.C. Circuit rejected EPA’s CSAPR Close-Out Rule, finding that EPA has not implemented stringent enough rules to deal with cross-state air pollution affecting downwind states. New York v. EPA, No. 19-1019 (D.C. Cir.).

Sep. 13, 2019 The D.C. Circuit largely upheld the 2016 CSAPR Update, except for a provision that allows upwind states to continue to pollute downwind states past the statutory deadline for downwind states to comply with the NAAQS. This portion of the rule is sent back to EPA for review. Wisconsin v. EPA, No. 16-1406 (D.C. Cir.).

Jan. 30, 2019 A coalition of six states asked the D.C. Circuit to review the CSAPR Close-Out Rule. New York v. EPA, No. 19-1019 (D.C. Cir.). The lawsuit is brought by New York, Maryland, Connecticut, New Jersey, Massachusetts and Delaware, all downwind states to coal plants such as Homer City Generation in Pennsylvania. A coalition of environmental groups also filed a petition for review. Downwinders at Risk v. EPA, No. 19-1020 (D.C. Cir).

Dec. 6, 2018 EPA published a final rule announcing its determination that the 2016 CSAPR Update fully satisfies “good neighbor” obligations for the 2008 ground-level ozone NAAQS. This is known as the “Close-Out” Rule, because EPA will not require further emissions reductions from upwind states. EPA acknowledges that downwind states will not be able to meet the 2008 ozone NAAQS requirements until 2023 — two years after the NAAQS deadline.

Aug. 31, 2018 EPA released a memo to its regional offices with guidance on setting pollution thresholds for ozone levels in State Implementation Plans. The memo states that it may be appropriate to allocate a higher amount of ozone pollution to upwind states when evaluating downwind states’ SIPs. Specifically, the memo suggests using a 1-part-per-billion (ppb) contribution, which is higher than the 1 percent of the NAAQS threshold (0.70 ppb) set under the Obama administration in 2015. This change allows upwind states to contribute more ozone pollution to downwind states.

July 10, 2018 EPA issued a proposed determination that the CSAPR Update fully addresses upwind states’ “good neighbor” obligations for the 2008 NAAQS.

Feb. 24, 2017 President Trump signed the Regulatory Reform Executive Order directing EPA to “evaluate existing regulations … and make recommendations to the agency head regarding their repeal, replacement, or modification …). EPA may review CSAPR under that broad directive.

Obama Administration

Jan. 19, 2017 New York, Rhode Island, New Hampshire, Vermont, Massachusetts, and Maryland filed a motion to intervene in Wisconsin v. EPA in support of the 2016 CSAPR Update. No. 16-406 (D.C. Cir.).

Nov. 22, 2016 Sixteen lawsuits are filed to challenge the Oct. 2016 CSAPR Update. The consolidated case is Wisconsin v. EPA, No. 16-406 (D.C. Cir.).

Oct. 26, 2016 EPA published the 2016 CSAPR Update, which goes into effect Dec. 26, 2016. This rule promulgates Federal Implementation Plans (FIPs) for states that have not incorporated CSAPR into their State Implementation Plans (SIPs). It requires emissions reductions from power plants in the affected states. EPA also adjusts some of the Phase 2 NOx limits.

Jan. 1, 2015 EPA begins implementing Phase 1 of CSAPR. Phase 2 is scheduled to begin Jan. 1, 2017. Emissions limits become stricter for some states in Phase 2.

April 29, 2014 The Supreme Court upholds CSAPR in EPA v. EME Homer City GenerationNo. 12-1182 (Apr. 29, 2014).

Aug. 8, 2011 EPA promulgates the Cross-State Air Pollution Rule (CSAPR) to address the deficiencies in the Clean Air Interstate Rule that the D.C. Circuit identified in 2008. In CSAPR, EPA allocates emissions budgets for sulfur dioxide (SO2) and oxides of nitrogen (NOx) to each state. EPA then uses Federal Implementation Plans to implement the emissions reductions, again including regional trading programs.

G.W. Bush Administration

July 11, 2008 The D.C. Circuit invalidates the Clean Air Interstate Rule, finding that it did not adequately address interstate pollution’s impact on downwind air quality.

May 12, 2005 EPA promulgates the Clean Air Interstate Rule to address interstate pollution that impairs downwind states’ ability to meet the NAAQS. Under the rule, affected states must reduce their emissions. They may choose to require facilities in their state to participate in EPA-administered cap and trade programs to meet the emissions reduction targets,