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Department of Environmental Protection v. North American Refractories Co.

Environmental Hearing Board erred by refusing to defer to Environmental Protection Department's authoritative interpretation of regulation governing deadline to apply for emission reduction credit.

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Argued: December 4, 2001

The Department of Environmental Protection (Department) petitions for review of an order of the Environmental Hearing Board (EHB) that sustained the appeal of North American Refractories Company (North American) and remanded its emission reduction credit (ERC) registry application to the Department for consideration on the merits. The EHB concluded that the Department erroneously denied North American’s application based upon the Department’s misinterpretation of a one-year deadline for applications set forth in 25 Pa. Code �127.207(2). The EHB, however, stated in its opinion that the Department’s interpretation of the regulation was reasonable. The principal issue in this appeal is whether the EHB must defer to the Department’s interpretation of Department regulations when it determines that the interpretation is reasonable.

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