A unanimous three-judge panel of the U.S. Court of Appeals for the Fourth Circuit has rejected the EPA’s efforts to enforce “New Source Review,” holding that the more stringent interpretation of the Clean Air Act adopted by the Clinton Administration was invalid. As reported here, this undermines the case against the Bush Administration’s NSR reforms; it also bolsters the policy argument for Bush’s “Clear Skies” legislation. The decision comes on the heels of another EPA loss in federal district court in Alabama.