By Ayesha Rascoe
WASHINGTON (Reuters) - An appeals court on Tuesday upheld the first-ever U.S. proposed regulations governing heat-trapping greenhouse gases, handing a setback to major industries like coal-burning utilities and a victory to the Obama administration and environmental groups.
The U.S. Court of Appeals for the District of Columbia Circuit unanimously ruled that the EPA's finding that carbon dioxide is a public danger and setting limits for emissions from cars and light trucks were "neither arbitrary nor capricious."
In the 82-page ruling, the court also found that the EPA's interpretation of the Clean Air Act to regulate carbon dioxide regulations is "unambiguously correct."
The court also said it lacked jurisdiction to review the timing and scope of greenhouse gas rules that affect stationary sources like new coal-burning power plants and other large industrial sources.
The court in February heard arguments brought by state and industry challenging the EPA's authority to set carbon dioxide limits.
(Additional reporting by Jonathan Stempel, writing by Chris Baltimore; Editing by Gerald E. McCormick)
