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The first week of July will witness a remarkable flurry of activity by the Environmental Protection Agency to regulate air pollution. Air rules historically have the highest costs and greatest benefits of all federal regulations and, accordingly, present the most difficult policy problems. After the 4th of July holiday, EPA will take action in two critical areas: establishing final limits on emissions of major pollutants on a state-by-state basis, and moving toward fuel economy standards for cars and greenhouse gas (GHG) limits for trucks. Collectively these rules will cost tens of billions of dollars and save millions of lives over time.

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