In Chevron v. NRDC the Supreme Court held that court of appeals was correct that the EPA had taken too much power to itself by allowing a "bubble" concept for air pollution regulation at major stationary sources in violation of the desire of Congress.

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In Chevron v. NRDC, the Supreme Court held that the EPA's interpretation of the Clean Air Act, which allowed for the "bubble" concept in regulating air pollution at major stationary sources, was a permissible construction of the statute. The Court established the Chevron deference principle, which gives federal agencies discretion in interpreting statutes they administer if the statute is ambiguous and the agency's interpretation is reasonable.

In Chevron V