23-3. Business Case Problem with Sample Answer- Agency Powers. A well-documented rise in global tem- peratures has coincided with a significant increase in the concentration of carbon dioxide in the atmosphere. Many scientists believe that the two trends are related, because when carbon dioxide is released into the atmosphere, it produces a greenhouse effect, trapping solar heat. Under the Clean Air Act (CAA), the Environmental Protection Agency (EPA) is authorized to regulate any air pollutants emitted into ... the ambient air that in its judgment cause, or contribute to, air pollution. A group of private organizations asked the EPA to regu- late carbon dioxide and other greenhouse gas emissions from new motor vehicles. The EPA refused, stating, among other things, that the most recent congressional amendments to the CAA did not authorize any new, binding auto emis- sions limits. Nineteen states, including Massachusetts, asked a district court to review the EPA's denial. Did the EPA have the authority to regulate greenhouse gas emissions from new motor vehicles? If so, was its stated reason for refusing to do so consistent with that authority? Discuss. (Commonwealth of Massachusetts v. Environmental Protection Agency, 549 U.S. 497, 127 S.Ct. 1438, 167 L.Ed.2d 248 (2007)] (See Agency Creation and Powers.)