Honeywell International, Inc. v. EPA, No. 10-1347 (D.C. Cir. 2013)
Annotate this CaseThis case stemmed from the EPA's administration of a cap-and-trade program regulating the production and consumption of hydrochlorofluorcarbons (HCFCs) under the Clean Air Act, 42 U.S.C. 7671d(c), 7671e(b). The program entailed overall caps on production and consumption of various HCFCs for each year, as well as EPA-administered baseline allowances of HCFCs for each participating company. Companies were then permitted to transfer their allowances subject to certain statutory and regulatory restrictions. Honeywell complained that certain 2008 transfers made by their competitors Arkema and Solvay were deemed to permanently increase those competitors' future baseline allowances of HCFCs. The court concluded that Honeywell's claim was foreclosed by the court's decision in Arkema, Inc. V. EPA, which held that the EPA, having approved the 2008 interpollutant transfers, had to honor them in the future at least so long as the EPA continued to set baselines by considering the historical usage of HCFCs by participating companies. The Arkema Court necessarily concluded that permanent interpollutant transfers were permissible under the statute. Absent en banc review, the court must adhere to circuit precedent. Because Honeywell's other challenges to the 2008 transfers were meritless, the court denied the petition for review.
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