Opinion

BCCA Appeal Group v. United States Environmental Protection Agency

  • 476 F. App'x 579
Court
Court of Appeals for the Fifth Circuit
Filed
Jun 15, 2012
Status
Unpublished
On the bench
Smith, Southwick, Graves
Cited by
0 cases
Authority
More cited than 24.8%

The opinion

Case: 10-60459 Document: 00511887879 Page: 1 Date Filed: 06/15/2012

IN THE UNITED STATES COURT OF APPEALS

FOR THE FIFTH CIRCUIT United States Court of Appeals

Fifth Circuit

FILED

June 15, 2012

No. 10-60459 Lyle W. Cayce

Clerk

BCCA APPEAL GROUP; STATE OF TEXAS; TEXAS ASSOCIATION OF

MANUFACTURERS; TEXAS OIL & GAS ASSOCIATION,

PETITIONERS

v.

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

RESPONDENT

Petitions for Review of an Order of the

Environmental Protection Agency

Before SMITH, SOUTHWICK, and GRAVES, Circuit Judges.

PER CURIAM:*

BCCA Appeal Group, the State of Texas, the Texas Association of

Manufacturers, and the Texas Oil & Gas Association (collectively “BCCA”)

petition this Court for review of the Environmental Protection Agency’s (EPA)

final order disapproving a state implementation plan revision submitted by the

State of Texas pursuant to the Clean Air Act.1 At issue is whether the EPA

abused its discretion, acted arbitrarily and capriciously, and exceeded its

*

Pursuant to 5TH CIR. R. 47.5, the court has determined that this opinion should not

be published and is not precedent except under the limited circumstances set forth in 5TH CIR.

R. 47.5.4.

1

42 U.S.C. §§ 7401-7671q.

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statutory authority in denying the plan revision. We conclude that it did not and

deny the petitions for review.

FACTS AND PROCEDURAL HISTORY

This case involves state implementation plan (SIP) revisions to the

Qualified Facilities Program (QFP) enacted by Texas in 1995 and submitted for

EPA approval in 1996. The plan was resubmitted for EPA approval in 1998.2

In 2008, industry groups (BCCA) filed suit against the EPA for failing to timely

make a decision on approval of the plan under the eighteen-month time period

set out in the Clean Air Act (CAA). See 42 U.S.C. §§ 7410(k)(1)(B), (k)(2). The

lawsuit was prompted by EPA enforcement letters that facilities should comply

with existing rules prior to the proposed revisions. BCCA asked the district

court to order a schedule establishing deadlines by which the EPA would have

to take action on pending Texas air permit revisions. The parties agreed to a

settlement and a consent decree was entered on Jan. 21, 2010, obligating EPA

to “approve or disapprove, in whole or in part,” the relevant revisions within the

time period established by the court. See BCCA Appeal Group v. EPA, No. 3:08-

cv-01491-G (N.D. Tex. Jan. 21, 2010).

On April 14, 2010, EPA issued its final rule disapproving the program. 75

Fed. Reg. 19,468-93 (Apr. 14, 2010). EPA disapproved the program because it

did not meet the Minor New Source Review (NSR) SIP nor did it meet the NSR

SIP requirement for a substitute Major NSR SIP revision. Thereafter, BCCA

Appeal Group, Texas Oil & Gas Association, and Texas Association of

Manufacturers (collectively “BCCA”), and the State of Texas filed petitions for

2

Texas has since submitted proposed revisions to the program under State law to

address the reasons for the disapproval of the program. The EPA has not completed its review

of this submission, which it says “fully re-writes the Qualified Facilities Program.” Those

rules are not before this court.

2

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review of the final EPA action with this court, which has jurisdiction under 42

U.S.C. § 7607(b)(1).

STANDARD OF REVIEW

In considering the EPA’s interpretation of the CAA, a statute it

administers, this Court applies the two-step analysis set forth in Chevron

U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 104 S.Ct. 2778, 81

L.Ed.2d 694 (1984). If Congress has spoken directly on the question at issue, the

“court, as well as the agency, must give effect to the unambiguously expressed

intent of Congress.” Id. at 842-43. However, if “Congress has not directly

addressed the precise question at issue, the court does not simply impose its own

construction on the statute.” Id. at 843. “Rather, if the statute is silent or

ambiguous with respect to the specific issue, the question for the court is

whether the agency’s answer is based on a permissible construction of the

statute.” Chevron, 467 U.S. at 843.

Otherwise, this Court reviews final action by the EPA on SIP revisions

under the Administrative Procedure Act, which requires that this court shall:

“hold unlawful and set aside agency action, findings, and conclusions found to

be – (A) arbitrary, capricious, an abuse of discretion, or otherwise not in

accordance with law. . . .” 5 U.S.C. § 706(2)(A). Under this standard, this court

must be assured that the agency considered the relevant factors in making the

decision, that the action bears a rational relationship to the purpose of the

statute, and that there is substantial evidence in the record to support it. Public

Citizens, Inc. v. EPA, 343 F. 3d 449, 455 (5th Cir. 2003). “[B]ut, we cannot

substitute our judgment for that of the agency.” Id. This court will uphold the

agency’s actions if the minimum standards of rationality are satisfied by its

reasons and policy choices. Id. “Moreover, the EPA’s interpretations of its

regulations are entitled to substantial deference and are given ‘controlling

weight’ unless ‘plainly erroneous or inconsistent with the regulation.’” Id. at 455-

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56 (quoting Thomas Jefferson Univ. v. Shalala, 512 U.S. 504, 512, 114 S.Ct.

2381, 129 L.Ed.2d 405 (1994).

DISCUSSION

The petitioners assert that the EPA’s disapproval of the QFP is arbitrary,

capricious, an abuse of discretion and otherwise not in accordance with the law.

In doing so, BCCA asserts that the EPA acted “more than a decade too late.”

With regard to this timeliness issue, there are provisions in the CAA setting out

a time period of some eighteen months. 42 U.S.C. §§ 7410(k)(1)(B), (k)(2).

However, the CAA also says: “The plan revision shall not be treated as meeting

the requirements of this chapter until the Administrator approves the entire

plan revision as complying with the applicable requirements of this chapter.”

42 U.S.C. § 7410(k)(3). Further, the remedy for an Administrator’s failure to

perform an act or duty under this chapter is a civil action in district court to

compel agency action. 42 U.S.C. § 7604(2).

BCCA filed such a suit and obtained a consent decree obligating the EPA

to “approve or disapprove, in whole or in part,” the relevant revisions within the

time period established by the court. See BCCA Appeal Group v. EPA, No. 3:08-

cv-01491-G (N.D. Tex. Jan. 21, 2010). BCCA admits in its complaint filed in that

district court action that it did not file the suit, which was more than a decade

after the revisions were submitted, until the EPA sent enforcement letters to

facilities demanding that they operate under existing rules rather than the

proposed revisions that had not yet been approved. Id. Nevertheless, BCCA

properly pursued a civil action and obtained the appropriate relief through the

consent decree, which also provided payment of attorneys’ fees by the EPA.

With regard to the revisions, the EPA found that the program did not meet

the Minor NSR3 SIP requirements nor did it meet the Major NSR4 SIP

3

The CAA requires that Minor NSR programs provide for the enforcement and

“regulation of the modification and construction of any stationary source within the areas

4

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requirements for a substitute Major NSR SIP revision. In other words, as stated

in the EPA’s brief:

EPA disapproved the program because it determined, among other

things, (i) that because the Program is not explicitly limited to

smaller sources of pollutants as Texas claims, a major source may

circumvent applicable requirements, (ii) that the Program allows

facilities to make changes that potentially increase emissions of

pollutants without ensuring that there will be no interference with

clean air standards or control strategies, and (iii) that Texas did not

provide EPA with sufficient information to demonstrate that the

Program meets certain statutory and regulatory requirements

necessary to approve the Program under 42 U.S.C. § 7410(l).

The petitioners assert that the EPA improperly or mistakenly injected

requirements found in Major NSR provisions. However, the EPA found that the

program was not clearly limited to Minor NSR. The petitioners conceded at oral

argument that the plan does not explicitly state that it is limited to Minor NSR.

Therefore, the issue of whether the program was clearly limited to Minor NSR

is dispositive of many of the petitioners’ assertions and they are not all discussed

individually herein.

The proposed revisions at issue were enacted by Texas in Senate Bill No.

1126. These revisions amend the State’s definition of “modification of existing

facility” to exclude certain facility changes and exempts facilities from the

obligation to obtain certain authorizations before engaging in modification.

Specifically, under the revisions enacted in Senate Bill 1126, “modification of

existing facility” does not include:

covered by the plan as necessary to assure that national ambient air quality standards are

achieved. . . .” 42 U.S.C. § 7410(a)(2)(c).

4

Major NSR means any new or modified source that is subject to nonattainment new

source review (NNSR) or prevention of significant deterioration (PSD) of air quality under the

CAA. 75 Fed. Reg. 19468. Generally, a source is deemed major if it has a potential to emit in

excess of 10 tons per year of any single hazardous air pollutant or 25 tons per year of any

combination of hazardous air pollutants. 42 U.S.C. § 7412(a)(1).

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(E) a physical change in, or change in the method of operation of, a

facility that does not result in a net increase in allowable emissions

of any air contaminant and that does not result in the emission of

any air contaminant not previously emitted, provided that the

facility:

(i) has received a preconstruction permit or permit

amendment or has been exempted pursuant to Section 382.057 from

preconstruction permit requirements no earlier than 120 months

before the change will occur; or

(ii) uses, regardless of whether the facility has received a

permit, an air pollution control method that is at least as effective

as the best available control technology, considering technical

practicability and economic reasonableness, that the board required

or would have required for a facility of the same class or type as a

condition of issuing a permit or permit amendment 120 months

before the change will occur. . . .

Act of May 9, 1995. 74th Leg., R.S., ch. 150, § 1, § 382.003, 1995 Tex. Gen. Laws

997, 997-98.

The revisions further provide, in relevant part:

(b) In determining whether a proposed change at an existing facility

that meets the criteria of Section 382.003(9)(E) results in a net

increase in allowable emissions, the board shall consider the effect

on emissions of:

(1) any air pollution control method applied to a facility;

(2) any decreases in allowable emissions from other facilities

that have received a preconstruction permit or permit amendment

no earlier than 120 months before the change will occur; and

(3) any decreases in actual emissions from other facilities that

meet the criteria of Section 382.003(9)(E)(i) or (ii).

Act of May 9, 1995. 74th Leg., R.S., ch. 150, § 2, § 382.0512, 1995 Tex. Gen. Laws

997, 998.

These revisions were later adopted by the Texas Natural Resource

Conservation Commission (TNRCC), the predecessor of the Texas Commission

on Environmental Quality (TCEQ). The Guidance Document regarding the

Modification of Existing Facilities Under Senate Bill 1126 provides in the

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Purpose and Scope that the “legislative intent of SB 1126 was to provide

additional flexibility to certain facilities to make physical and operational

changes without a requirement to obtain a permit or other approval from

TNRCC.” The Guidance Document further provides the following: “SB 1126

revised the TCAA statutory definition of ‘modification of existing facility’ by

adding three types of physical and operational changes that are not considered

to be modifications, even if the change results in an increase in emissions.” This

document also maintains that “SB 1126 only revised the Texas ‘minor new

source review’ program to allow some changes to be made without a requirement

to obtain a permit or other ‘approval’ from the TNRCC.”

BCCA cites Florida Power & Light Company v. Costle, 650 F.2d 579, 588

(5th Cir. Unit B 1981), for the proposition that the EPA “should defer to the

state’s interpretation of the terms of its air pollution control plan when said

interpretation is consistent with the Clean Air Act.” Id. However, in Florida

Power & Light, the EPA was attempting to require Florida to incorporate a

state-imposed two-year limitation on relief into an EPA-approved proposed

revision of a SIP. Here the EPA has not approved the proposed revisions and

was not attempting to require Texas to incorporate any state-imposed limitation.

BCCA states in its brief that, “[p]urporting to conduct a ‘legal

interpretation,’ EPA disagreed that the Program is exclusively a Minor NSR

program. 75 Fed. Reg. 19,476.” Further, “EPA is not vested with expertise in

‘legal interpretation’ of state law, however, and it had no basis upon which to

disregard Texas statutes, rules, and the TCEQ’s position regarding the limited

scope of the Program.” BCCA is referring to the EPA’s response to comments

generally opposing the EPA proposal and the quoted portions are taken out of

context. The full response said:

EPA understands TCEQ’s explanation of the origination of the

Program in SB 1126. Nonetheless, the Qualified Facilities Program

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must meet all Federal requirements under the CAA in order to be

approvable. The fact that EPA failed to act on the Qualified

Facilities Program SIP revision within the statutory timeframe does

not dictate the action EPA must take on the Program at this time.

We cannot approve a program that fails to meet the requirements

of the CAA. As discussed throughout our proposal and this final

notice, the current Qualified Facilities Program fails to meet all

requirements. We disagree with commenters that the Qualified

Facilities Program is exclusively a Minor NSR program, based upon

the ambiguities in the Program’s rules. Furthermore, EPA need not

prove that the Program is actually used for major modifications.

EPA is required to review a SIP revision submission for its

compliance with the Act and EPA regulations. [Citations omitted].

This includes an analysis of the submitted regulations for their legal

interpretation. The Program’s rules are ambiguous and therefore

do not adequately prohibit use under Major NSR. We recognize that

TCEQ considers the Program to be a Minor NSR Program; however,

the State admits that its rules are insufficient to limit the Program

to Minor NSR. See 74 FR 48450, at 48456-48457; Section V.F.

below for further information.

75 Fed. Reg. 19468, 19476 (EPA Apr. 14, 2010) (final rule) (to be codified at 40

C.F.R. pt. 52).

BCCA and Texas both point out that in a 1995 comment, the EPA said

that Texas had adequately addressed the issue of preventing circumvention of

Major NSR. However, the EPA said that after it sent that 1995 comment letter,

State legislators significantly revised the Texas Clean Air Act.

Texas asserts that any attempt to circumvent Major NSR would constitute

violations of Texas’ Major NSR rules and its QFP. However, petitioners also

state that the EPA is without authority to interpret Texas law. Notwithstanding

Texas rules, the EPA ultimately found that Texas did not provide it with

sufficient information to demonstrate that the program meets the statutory and

regulatory requirements necessary for approval under 42 U.S.C. § 7410(l) of the

federal CAA.

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Texas asserts that States have great flexibility in creating their minor new

source review programs and quotes 75 Fed. Reg. at 19,485 as follows: “We [EPA]

agree that states have great flexibility to create their own Minor NSR SIP

programs.” Again, the context of this quote is very telling. The sentences

immediately following say, “[h]owever, at a minimum, those Minor NSR SIP

programs must meet all of the Federal requirements. Likewise, the Qualified

Facilities Program must meet all Federal requirements under the CAA in order

to be approvable.” While Texas has flexibility, the QFP must meet all Federal

requirements under the CAA.

The petitioners also assert that the EPA improperly imposes Major NSR

netting5 requirements. Texas takes issue with the EPA’s use of Major NSR

netting requirements to analyze the program’s Minor NSR netting approvability

“because these principles are designed to ensure that there is no interference

with the NAAQS [national ambient air quality standards] and control

strategies.” 75 Fed. Reg. at 19,473. Texas then asserts that the “proper test for

netting under minor new source review is whether the netting interferes with

the national ambient air quality standards [NAAQS] and control strategies.”

While this is exactly what the Major NSR netting requirements are designed to

ensure, again, the EPA found that the plan was not limited to Minor NSR.

Further, as stated previously, petitioners conceded at oral argument that the

plan does not state that it is explicitly limited to Minor NSR.

The petitioners rely heavily on Train v. Natural Res. Def. Council, 421

U.S. 60, 79, 95 S.Ct. 1470, 43 L.Ed.2d 731 (1975), for the following:

The Act gives the Agency no authority to question the wisdom of a

State’s choices of emission limitations if they are part of a plan

which satisfies the standards of § 110(a)(2) . . . . Thus, so long as the

ultimate effect of a State’s choice of emission limitations is

5

Netting basically refers to the offsetting of emissions increases at one facility with a

greater or equal reduction of emissions at another facility.

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compliance with the national standards for ambient air, the State

is at liberty to adopt whatever mix of emission limitations it deems

best suited to its particular situation.

Id. (Emphasis added). Here, the EPA found that the plan was not in compliance

with the national standards.

BCCA asserts that the failure to cite an example of anyone attempting to

use the plan to circumvent Major NSR thus far should prevent the EPA from

suggesting that it could be used for such. The flaw in that argument is that the

plan has not yet been approved by the EPA, a fact that in no way indicates that

an improper attempt to circumvent Major NSR would somehow be prevented

upon approval.

The EPA’s factual findings are entitled to substantial deference and should

be upheld if they are supported by the administrative record, even if there are

alternative findings supported by the record. See Arkansas v. Oklahoma, 503

U.S. 91, 113, 112 S.Ct. 1046, 117 L.Ed.2d 239 (1992).6 The record in this matter

6

In his concurring opinion, Judge Southwick takes issue with any deference to the

EPA, yet offers no applicable authority for his assertion that the EPA is not entitled to

deference. Instead, he cites dictum in a footnote quoting a portion of a law journal article in

United States v. Mead Corp., 533 U.S. 218, 230, n. 11 (2001), a tariff classification case from

The Court of International Trade. In Mead, the Supreme Court found Chevron deference

inapplicable for reasons not existing in the EPA case before us. ( “There are, nonetheless,

ample reasons to deny Chevron deference here. The authorization for classification rulings,

and Customs’s practice in making them, present a case far removed not only from notice-and-

comment process, but from any other circumstances reasonably suggesting that Congress ever

thought of classification rulings as deserving the deference claimed for them here.” Id. at 231.)

Judge Southwick also cites Mayo Found. for Med. Educ. & Research v. United States, 131 S.Ct.

704, 714 (2011). However, in Mayo, the Supreme Court found that the agency rule at issue

merited Chevron deference, saying: “In the Long Island Care case, we found that Chevron

provided the appropriate standard of review where an agency rule sets forth important

individual rights and duties, where the agency focuses fully and directly upon the issue, where

the agency uses full notice-and-comment procedures to promulgate a rule, and where the

resulting rule falls within the statutory grant of authority. These same considerations point

to the same result here. This case falls squarely within the bounds of, and is properly

analyzed under, Chevron and Mead.” Mayo, 131 S.Ct. at 714 (internal marks and citations

omitted). As in Mayo, the instant case falls squarely within the bounds of Chevron and

deference applies.

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establishes that the EPA considered the relevant factors in disapproving the

program, that the action bears a rational relationship to the purpose of the

statute, and that there is substantial evidence in the record to support it.

Despite any interpretations to the contrary, the relevant portions of Senate Bill

1126 quoted previously herein support the EPA’s finding that the revisions are

not clearly limited to Minor NSR.

CONCLUSION

For the foregoing reasons, we deny the petitions for review and uphold the

EPA’s action disapproving the plan revisions.

DENIED.

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LESLIE H. SOUTHWICK, Circuit Judge, concurring in the judgment:

I agree we should deny the petition for review. Respectfully, my reasoning

differs from that of the majority.

After notice and comment, EPA offered four reasons for disapproving the

Qualified Facilities Program (QFP) as a Minor New Source Review (NSR)

revision to Texas’s state implementation plan (SIP): (1) the regulatory text

permits evasion of Major NSR requirements; (2) its “netting” features jeopardize

attainment and maintenance of national ambient air quality standards

(NAAQS); (3) Texas did not furnish the necessary data and modeling to predict

whether the QFP’s impact on future air quality would truly be de minimis; and

(4) the definition of “facility” in the program was overly broad. See 75 Fed. Reg.

19,468, 19,473-19,474 (Apr. 14, 2010) (to be codified at 40 C.F.R. pt. 52). I do not

join the majority in ratifying the first of these. Also, like the majority, I express

no position on the final two. I conclude the problems identified by EPA with

netting are sufficiently supported by the record and justify denial of the petition.

I. EPA’s Legal Interpretation

My concern with the majority’s approach is that, central to its reasoning,

we are taking sides in a dispute over drafting styles. Invoking Chevron, EPA

argues that the court should defer to its “legal interpretation” that without

explicit text warning that major sources may not use this program, the QFP

cannot be understood solely to pertain to minor sources of pollution. 75 Fed.

Reg. at 19,476, 19,469.

Texas rightly observes that express negative language is not the only way

to convey a limitation. I see no reason to credit EPA for any expertise on

whether Texas should express the purposes of this program in a negative or

affirmative manner, so long as it is clear. For example, EPA has not pointed to

evidence from its regulatory experiences that affirmative descriptions of plan

coverage are less effective than negative statements. Experience might be a

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foundation for expertise here, or at least be a basis for arguing it. On this

record, I see nothing beyond a quibble. Without any historical pattern or other

basis to support the preference, insisting on one expression compared to the

other is arbitrary and, perhaps more accurately, capricious.

Texas still must have given an adequate affirmative explanation. It

identified an applicant’s affirmative obligation to comply with Major NSR

requirements. See Envtl. Conservation Org. v. City of Dallas, 529 F.3d 519, 526

(5th Cir. 2008). It argues that the QFP requires persons modifying a qualified

facility to keep documentation and information sufficient “to show that the

project will comply with § 116.150 and § 116.151 of this title (relating to

Nonattainment Review) and §§ 116.160-116.163 of this title (relating to

Prevention of Significant Deterioration Review).” 30 Tex. Admin. Code § 116.117

(1998). These Nonattainment and so-called PSD programs only regulate major

sources, leading EPA to refer to them “together as the major NSR program.” 74

Fed. Reg. 51,418, 51,421 (Oct. 6, 2009) (to be codified at 40 C.F.R. pts. 70-71).

The Texas Commission on Environmental Quality has always considered QFP

to be exclusively a Minor NSR program. EPA acknowledges that fact. 75 Fed.

Reg. at 19,476.

Confronted with a dispute between Texas and EPA about the meaning of

the submitted SIP, the majority, implicitly as a matter of administrative

deference, privileges EPA’s construction. E.g., Chevron, USA, Inc. v. NRDC, 467

U.S. 837, 842-43 (1984). I would not. It is of some significance that the SIP is

purely state law until approved; the Texas Legislature enacted it with Senate

Bill 1126 – an amendment to the Texas Clean Air Act. This fact is not

conclusive, since in a given situation EPA’s environmental expertise might

improve its understanding of a proposed SIP, warranting some deference.1 As

1

Under the APA, “our deference to the agency’s expertise is significant,” meaning that

“a court reviewing an agency action may not substitute its own judgment for that of the

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to whether the Texas Administrative Code codifies the prohibition that the

Texas Commission on Environmental Quality claims it does, I do not believe

EPA has special policy insight. There is no plausible account that Congress

would have wished for EPA to “enjoy primary interpretational authority” as to

how Texas law should express itself. United States v. Mead Corp., 533 U.S. 218,

230 n.11 (2001) (quotation marks and citation omitted); see also Mayo Found. for

Med. Educ. & Research v. United States, 131 S. Ct. 704, 714 (2011). The

majority makes reasonable efforts to distinguish these authorities factually, as

they are distinguishable, but does not support its own position that a federal

agency would be owed Chevron deference in a situation such as this.

Though I do not agree that Chevron has any relevance here, I would prefer

neither reaching that issue nor deciding which party has the more persuasive

interpretation of the QFP. Even stipulating that the program is limited to

Minor NSR, EPA’s disapproval may stand under the APA.

I turn now, briefly, to why I believe that is so.

II. Netting

As an experiment in deregulation, the premise behind the QFP proposal

is that physical changes that do “not result in a net increase in allowable

emission[s]” are no longer defined as facility modifications. 30 Tex. Admin. Code

§ 116.10(11)(E) (2002). As a consequence, they avoid the need to secure a Minor

NSR permit under one of the mechanisms provided for in the already approved

SIP. Credible netting is thus the glue that holds the program together.

EPA “disapprove[d] netting under the Qualified Facilities Program as a

Minor NSR program, in part because the Program fail[ed] to ensure that

ambient air is protected in consideration of all changes in the netting.” 75 Fed.

agency.” La. Envtl. Action Network v. EPA, 382 F.3d 575, 582 (5th Cir. 2004).

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Reg. at 19,477. At least two particular faults in QFP netting identified in the

final rule stand out as valid, justifying agency disapproval.

First, the program “fails to define a contemporaneous period or require

that emission reductions occur within a specified period.” 75 Fed. Reg. at 19,478.

In other words, the program does not specify the time frame for when a pollution

increase must be offset. Unlike as to Major NSR evasion, this is not a matter of

interpretation, but rather of complete statutory and regulatory silence.2

Second, EPA found a weakness in the pollutant interchange methodology,

a technical subject at the heart of its environmental expertise. QFP permits

“[e]missions of different compounds within the same air contaminant category”

to be interchanged. 30 Tex. Admin. Code § 116.116(e)(3)(B) (2000). An “air

contaminant category” is defined as “a group of related compounds, such as

volatile organic compounds, particulate matter, nitrogen oxides, and sulfur

compounds.” § 116.116(e)(3)(F). Because the term “sulfur compounds” embraces

both hydrogen sulfide and sulfur dioxide, EPA reasonably concluded that this

definition would jeopardize the NAAQS for sulfur dioxide. By the same token,

the general category “particulate matter” would permit increases of smaller

particulate (PM-2.5) to be offset by reductions in larger ones (PM-10). Different

NAAQS govern PM-2.5 and PM-10, because generally the more fine a

particulate, the more deleterious to human health.

Establishing, monitoring, and enforcing the nation’s air quality standards

is EPA’s central charge under the Clean Air Act. State SIPs are the means to

2

As this court recently recognized, “extensive and complex” requirements govern

Major NSR, while “[i]n stark contrast, the CAA [Clean Air Act] prescribes only the barest of

requirements for ‘minor’ NSR.” Luminant Generation Co. v. EPA, 675 F.3d 917, 922 (5th Cir.

2012). Thus, Texas is correct that EPA may not condition Minor NSR approval on features

imported from Major NSR, as this would upset the statutory scheme. While references to

“contemporaneous” reductions are indeed found in the Major NSR rules, 40 C.F.R. §

51.165(a)(1)(vi)(A)(2), offsets without some time-equivalence cannot in any logical sense be

said to be net-neutral. As such, EPA is justified in insisting on this bedrock feature, dictated

by common sense.

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Case: 10-60459 Document: 00511887879 Page: 16 Date Filed: 06/15/2012

No. 10-60459

these ends, and EPA “shall not approve a revision” to a SIP if it “would interfere”

with NAAQS. See 42 U.S.C. § 7410(a)(l). In accord with this statutory mandate,

in terms of timing and how pollutants are defined, EPA found that the QFP

would undermine specific NAAQS. Because these conclusions are rooted in

agency expertise, adequately explained, and based on the congressionally

prescribed factors, our duty is to uphold EPA’s final action to disapprove. See

Luminant, 675 F.3d at 925 (discussing the court’s purview under the APA, 5

U.S.C. § 706).

I therefore concur in the judgment.

16

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BCCA Appeal Group v. United States Environmental Protection Agency · 476 F. App'x 579 | Frix