Illinois Environmental Protection Agency v. United States Environmental Protection Agency

KANNE, Circuit Judge.

After the United States Environmental Protection Agency (the “US-EPA”) denied the Illinois Environmental Protection Agency’s (the “IL-EPA”) fiscal year 1988 supplemental grant application, the IL-EPA filed a petition for review of the federal agency’s final action. The IL-EPA argues that the US-EPA unlawfully diverted state grant funds to federal programs; specifically, it contends that the US-EPA’s set-aside or reallocation regulation, 40 C.F.R. § 35.110, was not authorized by the Clean Air Act, 42 U.S.C. §§ 7401 et seq., and violates the Fiscal Year 1988 Appropriations…