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Arkema Inc. v. Environmental Protection Agency

618 F.3d 1 (2010)

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Arkema Inc. v. Environmental Protection Agency

United States Court of Appeals for the District of Columbia
618 F.3d 1 (2010)

  • Written by Jack Newell, JD

Facts

Congress directed the Environmental Protection Agency (EPA) (defendant) to gradually phase out the use of hydrochlorofluorocarbons (HCFCs) over a period of about 30 years. In 2003 the EPA adopted a cap-and-trade system whereby companies could buy and sell a finite number of credits that gave them the right to pollute based on how many they had. Transactions could take place between companies or within a company among different types of HCFCs. Both transactions were treated the same way by the EPA. In 2010, the EPA promulgated a new rule that changed the treatment of the latter type of transaction. This would cause a reduction in credits for all the companies that had made that sort of trade in the past. Arkema (plaintiff) sued the EPA over the new rule, claiming that it attached new legal obligations to their sales of HCFC credits and was therefore impermissibly retroactive.

Rule of Law

Issue

Holding and Reasoning (Brown, J.)

Dissent (Randolph, J.)

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