Petition for Writ of Certiorari — West Virginia, et al., Petitioners v. Environmental Protection Agency, et al.
Supreme Court briefApr 29, 2021
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No. ______
In the Supreme Court of the United States
STATE OF WEST VIRGINIA, ET AL.,
Petitioners,
v.
U.S. ENVIRONMENTAL PROTECTION AGENCY
AND MICHAEL REGAN, ADMINISTRATOR OF THE
U.S. ENVIRONMENTAL PROTECTION AGENCY,
Respondents.
——————
ON PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE DISTRICT OF COLUMBIA CIRCUIT
PETITION FOR A WRIT OF CERTIORARI
PATRICK MORRISEY
Attorney General
OFFICE OF THE
WEST VIRGINIA
ATTORNEY GENERAL
State Capitol Complex
Building 1, Room E-26
Charleston, WV 25305
lindsay.s.see@wvago.gov
(304) 558-2021
LINDSAY S. SEE
Solicitor General
Counsel of Record
ROBERT D. CHEREN*
Special Assistant
THOMAS T. LAMPMAN
Assistant Solicitor General
Counsel for Petitioner State of West Virginia
[additional counsel listed at end]
QUESTION PRESENTED
In 42 U.S.C. § 7411(d), an ancillary provision of the
Clean Air Act, did Congress constitutionally authorize the
Environmental Protection Agency to issue significant
rules—including those capable of reshaping the nation’s
electricity grids and unilaterally decarbonizing virtually
any sector of the economy—without any limits on what the
agency can require so long as it considers cost, nonair
impacts, and energy requirements?
II
PARTIES TO THE PROCEEDING AND RELATED
PROCEEDINGS
Petitioners are the States of West Virginia, Alabama,
Alaska, Arkansas, Georgia, Indiana, Kansas, Louisiana,
Missouri, Montana, Nebraska, Ohio, Oklahoma, South
Carolina, South Dakota, Texas, Utah, and Wyoming; and
Mississippi Governor Tate Reeves. Each petitioner was a
respondent-intervenor below.
Respondents who were respondents below are the
United States Environmental Protection Agency and
Michael Regan, in his official capacity as Administrator of
the United States Environmental Protection Agency).
Respondents who were petitioners below are, by court
of appeals case number, as follows:
In Case No. 19-1140: American Lung Association and
the American Public Health Association.
In Case No. 19-1165: State of New York, State of
California, State of Colorado, State of Delaware, State of
Hawaii, State of Illinois, State of Maine, State of
Maryland, Commonwealth of Massachusetts, People of
the State of Michigan, State of Minnesota, State of New
Jersey, State of New Mexico, State of North Carolina,
State of Oregon, Commonwealth of Pennsylvania, State of
Rhode Island, State of Vermont, Commonwealth of
Virginia, State of Washington, State of Wisconsin, District
of Columbia, City of Boulder (CO), City of Chicago, City
of Los Angeles, City of New York, City of Philadelphia,
and the City of South Miami (FL).
In Case No. 19-1166: Appalachian Mountain Club,
Center for Biological Diversity, Clean Air Council, Clean
Wisconsin,
Conservation
Law
Foundation,
Environmental Defense Fund, Environmental Law and
III
Policy Center, Minnesota Center for Environmental
Advocacy, Natural Resources Defense Council, and Sierra
Club.
In Case No. 19-1173: Chesapeake Bay Foundation.
In Case No. 19-1175:
Robinson Enterprises, Inc.,
Nuckles Oil Co., Inc., DBA Merit Oil Co., Construction
Industry Air Quality Coalition, Liberty Packing Co. LLC,
Dalton Trucking, Inc., Norman R. “Skip” Brown, Joanne
Brown, The Competitive Enterprise Institute, and the
Texas Public Policy Foundation.
In Case No. 19-1176: Westmoreland Mining Holdings,
LLC.
In Case No. 19-1177: City and County of Denver (CO).
In Case No. 19-1179: The North American Coal Corp.
In Case No. 19-1185: Biogenic CO2 Coalition.
In Case No. 19-1186: Advanced Energy Economy.
In Case No. 19-1187:
American
Wind
Energy
Association and Solar Energy Industries Association.
In Case No. 19-1188:
Consolidated Edison, Inc.,
Exelon Corp., National Grid USA, New York Power
Authority, Power Companies Climate Coalition, Public
Service Enterprise Group Inc., and Sacramento Municipal
Utility District.
Respondents who were petitioner-intervenors below
are, by court of appeals case number, as follows:
In Case No. 19-1140: State of Nevada.
Respondents who were respondent-intervenors below
are, by court of appeals case number, as follows:
In Case No. 19-1140:
State of North Dakota;
Commonwealth of Kentucky by and through Governor
IV
Andy Beshear; Mississippi Public Service Commission;
Indiana Michigan Power Co., Kentucky Power Co., Public
Service Co. of Oklahoma, Southwestern Electric Power
Co., AEP Generating Co., AEP Generation Resources,
Inc., Wheeling Power Co.; America’s Power; Basin
Electric Power Cooperative; Chamber of Commerce of
the United States of America; Indiana Energy Association
and Indiana Utility Group; International Brotherhood of
Boilermakers, Iron Ship Builders, Blacksmiths, Forgers
& Helpers, AFL-CIO; Murray Energy Corp.; National
Rural Electric Cooperative Association; Nevada Gold
Mines and Newmont Nevada Energy Investment;
PowerSouth Energy Cooperative; Westmoreland Mining
Holdings, LLC.
In Case Nos. 19-1175, 19-1176, and 19-1179: American
Lung Association, American Public Health Association,
Appalachian Mountain Club, Center for Biological
Diversity, Clean Air Council, Clean Wisconsin,
Conservation Law Foundation, Environmental Defense
Fund, Environmental Law and Policy Center, Minnesota
Center for Environmental Advocacy, Natural Resources
Defense Council, Sierra Club; State of New York, State of
California, State of Colorado, State of Delaware, State of
Hawaii, State of Illinois, State of Maine, State of
Maryland, Commonwealth of Massachusetts, People of
the State of Michigan, State of Minnesota, State of New
Jersey, State of New Mexico, State of North Carolina,
State of Oregon, Commonwealth of Pennsylvania, State of
Rhode Island, State of Vermont, Commonwealth of
Virginia, State of Washington, State of Wisconsin, District
of Columbia, City of Boulder (CO), City of Chicago, City
of Los Angeles, City of New York, City of Philadelphia,
and the City of South Miami (FL).
There are no other directly related proceedings.
V
TABLE OF CONTENTS
Page
Question Presented .............................................................. I
Opinion Below ....................................................................... 1
Jurisdiction............................................................................ 1
Statutory Provisions Involved ............................................ 1
Statement .............................................................................. 1
Reasons For Granting The Petition ................................. 13
I. This Case Involves Compelling And Timely
Questions Of Federal Law That The Court Should
Resolve ......................................................................... 13
A. This case presents unusually important questions
about EPA’s power to unilaterally remake
significant sectors of the economy........................ 13
B. The important federal issues in this case need
resolution now......................................................... 19
II. The Decision Below Is Wrong ................................... 25
A. Congress did not clearly authorize EPA to
exercise the expansive powers the court below
affirmed ................................................................... 25
B. Section 111’s text and context foreclose the
majority’s approach ............................................... 29
C. The majority’s interpretation of Section 111
violates the separation of powers ......................... 32
Conclusion ........................................................................... 34
VI
TABLE OF APPENDICES
Appendix A — Court of appeals opinion
(Jan. 19, 2022) ........................................... 1a
Appendix B — 42 U.S.C. § 7411.................................... 204a
VII
TABLE OF AUTHORITIES
Page(s)
Cases
Ark. Elec. Co-op Corp. v. Ark. Pub. Serv.
Comm’n,
461 U.S. 375 (1983) ....................................................... 28
Bond v. United States,
572 U.S. 844 (2014) ....................................................... 26
Cent. Hudson Gas & Elec. Corp. v. Pub.
Serv. Comm’n of N.Y.,
447 U.S. 557 (1980) ....................................................... 29
Chamber of Com. of USA v. U.S. Dep’t of
Labor,
885 F.3d 360 (5th Cir. 2018) ......................................... 19
City & Cty. of San Francisco v. Trump,
897 F.3d 1223 (9th Cir. 2018) ....................................... 19
Essex Chem. Corp. v. Ruckelshaus,
486 F.2d 427 (D.C. Cir. 1973) .................................. 5, 32
FDA v. Brown & Williamson Tobacco
Corp.,
529 U.S. 120 (2000) ....................................................... 18
Gonzales v. Oregon,
546 U.S. 243 (2006) ................................................. 27, 28
Gundy v. United States,
139 S.Ct. 2116 (2019) .............................................. 32, 33
VIII
TABLE OF AUTHORITIES
(continued)
Page(s)
Hollingsworth v. Perry,
558 U.S. 183 (2010) ......................................................... 9
Hughes v. Talen Energy Mktg., LLC,
136 S.Ct. 1288 (2016) .................................................... 29
Indus. Union Dep’t, AFL-CIO v. Am.
Petroleum Inst.,
448 U.S. 607 (1980) ................................................ 33, 34
Int'l Refugee Assistance Project v. Trump,
883 F.3d 233 (4th Cir. 2018) ......................................... 19
King v. Burwell,
576 U.S. 473 (2015) ................................................. 27, 28
Marshall Field & Co. v. Clark,
143 U.S. 649 (1982) ....................................................... 32
Massachusetts v. EPA,
549 U.S. 497 (2007) ....................................................... 13
McCulloch v. Sociedad Nacional,
372 U.S. 10 (1963) ......................................................... 24
Michigan v. EPA,
135 S.Ct. 2699 (2015) .............................................. 23, 33
Mistretta v. United States,
488 U.S. 361 (1989) ....................................................... 32
IX
TABLE OF AUTHORITIES
(continued)
Page(s)
Pac. Gas & Elec. Co. v. State Energy Res.
Conservation & Dev. Comm’n,
461 U.S. 190 (1983) ................................................. 23, 29
Touby v. United States,
500 U.S. 160 (1991) ................................................. 32, 34
U.S. Forest Serv. v. Cowpasture River
Pres. Ass’n,
140 S.Ct. 1837 (2020) .................................................... 27
United States Telecom Ass’n v. FCC,
855 F.3d 381 (D.C. Cir. 2017) ................................ 18, 26
Util. Air Regulatory Grp. v. EPA,
573 U.S. 302 (2014) ................ 8, 12, 13, 17, 20, 26, 28, 31
Verizon v. FCC,
740 F.3d 623 (D.C. Cir. 2014) ...................................... 18
West Virginia v. EPA,
136 S.Ct. 1000 (2016) ...................................................... 9
West Virginia v. EPA,
No. 15-1363 (D.C. Cir. Jan. 21, 2016) ............................ 8
Whitman v. Am. Trucking Ass’ns,
531 U.S. 457 (2001) ....................................................... 33
Will v. Mich. Dep’t of State Police,
491 U.S. 58 (1989) ......................................................... 27
X
TABLE OF AUTHORITIES
(continued)
Page(s)
Statutes
21 U.S.C. § 823 .................................................................... 27
21 U.S.C. § 824 .................................................................... 27
28 U.S.C. § 1254 .................................................................... 1
42 U.S.C. § 7409 .................................................................... 4
42 U.S.C. § 7411 ..................................... 4, 5, 6, 11, 29, 30, 31
42 U.S.C. § 7412 .................................................................... 4
42 U.S.C. § 7429 .................................................................... 4
42 U.S.C. § 7475 .................................................................... 4
42 U.S.C. § 7503 .................................................................... 4
42 U.S.C. § 7651 .................................................................... 3
42 U.S.C. § 7671d ................................................................. 3
Regulations
73 Fed. Reg. 44,354 (July 30, 2008) .................................. 15
80 Fed. Reg. 64,510 (Oct. 23, 2015) ..................................... 7
80 Fed. Reg. 64,662 (Oct. 23, 2015) ...... 6, 7, 8, 16, 27, 29, 33
84 Fed. Reg. 32,520 (July 8, 2019) .................................. 8, 9
XI
TABLE OF AUTHORITIES
(continued)
Page(s)
Other Authorities
Clean Air Act Amendments of 1987:
Hearings on S.300, S.321, S.1351, &
S.1384 before the Subcmte. on Envtl.
Prot. of the S. Cmte. on Env’t & Public
Works, 100th Cong. (1987) ............................................ 6
Jeff Deason et al., Electrification of
Buildings and Industry in the United
States (Mar. 2018) ......................................................... 15
Nat’l Renewable Energy Lab.,
Electrification & Decarbonization
(July 2017) ..................................................................... 16
United States of America, Nationally
Determined Contribution
(Apr. 22, 2021) ............................................................... 15
U.S. Energy Information Administration,
Electric Power Annual 2019
(Feb. 2021) ..................................................................... 14
U.S. Envt’l Prot. Agency, CO2 Emission
Performance Rate and Goal
Computation Technical Support
Document for CPP Final Rule
(Aug. 2015)....................................................................... 7
U.S. Envt’l Prot. Agency, Draft Inventory
of U.S. Greenhouse Gas Emissions &
Sinks: 1990-2019 (Feb. 2021)................................. 15, 16
XII
TABLE OF AUTHORITIES
(continued)
Page(s)
U.S Envt’l Prot. Agency, In Perspective:
The Supreme Court’s Mercury and Air
Toxics Rule Decision (June 30, 2015) ........................ 23
WEBSTER’S THIRD NEW INTERNATIONAL
DICTIONARY OF THE ENGLISH
LANGUAGE UNABRIDGED (2d ed. 1968) ...................... 31
1
PETITION FOR A WRIT OF CERTIORARI
_________________
Petitioners the States of West Virginia, Alabama,
Alaska, Arkansas, Georgia, Indiana, Kansas, Louisiana,
Missouri, Montana, Nebraska, Ohio, Oklahoma, South
Carolina, South Dakota, Texas, Utah, and Wyoming; and
Mississippi Governor Tate Reeves respectfully petition
for a writ of certiorari to review the judgment of the
United States Court of Appeals for the District of
Columbia Circuit.
OPINION BELOW
The opinion of the D.C. Circuit (App. 1a-203a) is
reported at 985 F.3d 914.
JURISDICTION
The D.C. Circuit entered judgment on January 19,
2021. This petition is timely filed consistent with the
Court’s March 19, 2020 Order. The Court has jurisdiction
under 28 U.S.C. § 1254(1).
STATUTORY PROVISIONS INVOLVED
Relevant provisions of the Clean Air Act are set forth
at App. 204a-209a.
STATEMENT
The court below held that a rarely used, ancillary
provision of the Clean Air Act grants an agency unbridled
power—functionally “no limits”—to decide whether and
how to decarbonize almost any sector of the economy.
App. 56a. Five years ago the Environmental Protection
Agency (“EPA”) claimed to find similar powers in the
same provision—authority to reshape the nation’s utility
2
power sector by mandating standards impossible for coal
and natural gas power plants to meet without limiting
operations, shutting down, or subsidizing investment in
alternate electricity generation that EPA preferred. This
Court took the extraordinary step of staying EPA’s
“Clean Power Plan” rule even before the lower court
finished its review, strongly signaling that EPA (and by
extension the court below now) were wrong.
The Court never had a chance to resolve that case on
the merits because the D.C. Circuit ultimately dismissed
it. EPA, however, heeded the Court’s unsubtle nod and
repealed the rule in 2019 on the basis that it exceeded the
agency’s statutory authority. Asked in the consolidated
challenges below whether EPA’s revised assessment was
correct, a divided panel answered “no” without even
acknowledging the Court’s stay. Instead, it insisted that
EPA had more statutory power than the agency had
originally claimed.
The decision below is wrong. To reach its momentous
result, the court deviated from the text-based reading that
the statute creates a process for EPA and the States to
work together to ensure that power plants and other
stationary sources use proven equipment and practices to
reduce their own emissions. And it purported to find
grounds for EPA to dictate huge shifts in most sectors of
the economy even though nothing in the statute
approaches the clear language Congress must use to
assign such vast policymaking authority—assuming, of
course, it can delegate enormous powers like these in the
first place.
The decision also has massive consequences. EPA now
has a judicial edict not to limit itself to measures that can
be successfully implemented at and for individual
facilities. It can set standards on a regional or even
3
national level, forcing dramatic changes in how and where
electricity is produced, as well as transforming any other
sector of the economy where stationary sources emit
greenhouse gases. Power to regulate factories, hospitals,
hotels, and even homes would have tremendous costs and
consequences for all Americans; EPA’s steps on remand
and every regulation under the statute to follow will be
shaped by this new and wildly expansive authority.
Only the Court can resolve whether EPA has this
unilateral power—or if Congress must take up the mantle
instead. How we respond to climate change is a pressing
issue for our nation, yet some of the paths forward carry
serious and disproportionate costs for States and
countless other affected parties. Continued uncertainty
over the scope of EPA’s authority will impose costs we can
never recoup because EPA, the States, and others will be
forced to sink even more years and resources into an
enterprise that is—at best—legally uncertain. The Court
should intervene now.
1. A key purpose of the Clean Air Act, 42 U.S.C. § 7401
et seq., is to address emissions from certain categories of
buildings and facilities. Congress chose two approaches
to address this goal:
The first is target-based, directing emission reductions
to a specific amount or threshold level. On the more
specific end of the spectrum, Title IV’s Acid Deposition
Control program includes a cap-and-trade system to
reduce sulfur dioxide emissions by “ten million tons from
1980 emission levels,” and nitrogen oxides emissions by
“approximately two million tons.” 42 U.S.C. § 7651(b).
Similarly, the Stratospheric Ozone Protection Program
“phase[s]-out” certain ozone-depleting substances
through a detailed statutory process and schedule. Id.
§ 7671d. On the other end of the spectrum, National
4
Ambient Air Quality Standards target emission levels
“requisite to protect the public health,” “allowing an
adequate margin of safety.” Id. § 7409(b). And the second
phase of the Hazardous Air Pollutants program aims to
“provide an ample margin of safety to protect public
health . . . or to prevent, taking into consideration costs,
energy, safety, and other relevant factors, an adverse
environmental effect.” Id. § 7412(f)(2); see also id.
§ 7429(h)(3) (same authority for solid waste combustion
units).
Congress’s second approach focuses on improved
controls and processes. Instead of targeting specific
reductions or ambient air concentrations, emissionreduction goals in this category are tied to what individual
sources can achieve using available technology.
New Source Review, for example, ensures that a new
or modified stationary source—“any building, structure,
facility, or installation which emits or may emit any air
pollutant,” 42 U.S.C. § 7411(a)(3)—employs the “best
available control technology” or matches the “lowest
achievable emission rate.” Id. §§ 7475(a)(4), 7503(a)(2). In
the first phase of the Hazardous Air Pollutants program,
EPA’s standards require “the maximum degree of
reduction in emissions” that sources can achieve “through
application of measures, processes, methods, systems or
techniques.” Id. § 7412(d)(2). And under Section 112 EPA
can issue rules for smaller sources that “provide for the
use of generally available control technologies or
management practices.” Id. § 7412(d)(5).
2. The performance standards program in Section
111—the provision at issue here—falls within the second
category.
5
Section 111(b) directs EPA to establish “standards of
performance” for new stationary sources. 42 U.S.C.
§ 7411(b)(1)(B). A “standard of performance” is a
“standard for emissions of air pollutants which reflects the
degree of emission limitation achievable through the
application of the best system of emission reduction which
(taking into account the cost of achieving such reduction
and any nonair quality health and environmental impact
and energy requirements) the Administrator determines
has been adequately demonstrated.” Id. § 7411(a)(1).
For existing sources, Congress forged a deliberate
partnership between the States and EPA. 42 U.S.C.
§ 7411(d). EPA identifies the “best system of emission
reduction” available for designated categories of sources,
then promulgates a “procedure” for States to submit
standards of performance for the individual sources within
their borders. Id. § 7411(d)(1). The States follow that
procedure to set particular “standard[s] for emissions of
air pollutants,” which “reflect[]” the best system of
emission reduction but can be modified based on sourcespecific factors like a facility’s “remaining useful life.” Id.
§ 7411(a)(1), (d)(1). EPA may step in only if a State fails
to submit or enforce a “satisfactory plan.”
Id.
§ 7411(d)(2)(A).
Several features confirm that Section 111 aligns with
the statute’s second category of individual source-focused
programs. Section 111(a)(1) calls for standards based on
an “achievable” degree of emission limitation after
applying an “adequately demonstrated” system of
emission reduction. 42 U.S.C. § 7411(a)(1); see Essex
Chem. Corp. v. Ruckelshaus, 486 F.2d 427, 433-34 (D.C.
Cir. 1973) (explaining that “achievable” means more than
“purely theoretical or experimental,” and “adequately
demonstrated” has similar real-world meaning).
6
Similarly, EPA must issue periodic “information on
pollution control techniques,” 42 U.S.C. § 7411(b)(3), and
States may seek revised performance standards for new
sources based on “a new, innovative, or improved
technology or process which achieves greater continuous
emission reduction,” id. § 7411(g)(4)(A). Where numbersbased emission standards are infeasible, EPA may use a
“design, equipment, work practice, or operational
standard” instead. Id. § 7411(h)(1). And EPA’s discretion
to issue waivers is likewise steeped in what individual
sources can achieve: Waivers encourage “innovative
technological system[s]” that have not yet been
adequately demonstrated, and their length must consider
“the design, installation, and capital cost of the
technological system or systems being used.”
Id.
§ 7411(j)(1)(A), (D), (F).
3. Although EPA often uses Section 111(b) to set
standards of performance for new sources, it has rarely
deployed Section 111(d). App. 23a-24a (listing just seven
regulations in over 40 years). During the debates
considering the 1990 amendments to the Clean Air Act, in
fact, one of the amendments’ architects characterized
Section 111(d) as “some obscure, never-used section of the
law.” Clean Air Act Amendments of 1987: Hearings on
S.300, S.321, S.1351, & S.1384 before the Subcmte. on
Envtl. Prot. of the S. Cmte. on Env’t & Public Works,
100th Cong. 13 (1987).
That situation changed when EPA finalized the Clean
Power Plan (“CPP”) rule in October 2015. 80 Fed. Reg.
64,662 (Oct. 23, 2015). The CPP implemented President
Obama’s directive to use Section 111(d) to “lead[] global
efforts to address climate change” and thereby “do what
Congress wouldn’t.”
App. 170a (citation omitted).
Designed to overhaul national electricity generation, the
7
CPP imposed mandates for existing coal and natural gas
power plants that were—by EPA’s own admission—
unachievable
through
technology
or
process
improvements at any individual source. 80 Fed. Reg. at
64,754.
EPA first determined that existing coal-fired plants
could adopt equipment and practices to reduce emissions
an average of 4.1%, lowering emission rates from 2,160
pounds per megawatt hour to 2,071. See U.S. Envt’l Prot.
Agency, CO2 Emission Performance Rate and Goal
Computation Technical Support Document for CPP
Final Rule 12, Dkt. No. EPA-HQ-OAR-2013-0602-36850
(Aug. 2015). No adequately demonstrated equipment and
practices, though, would reduce average emissions for
natural gas plants. 80 Fed. Reg at 64,728. Dissatisfied
with these findings, EPA fashioned a novel mandate in the
form of an “adjusted CO2 emission rate”—which it
calculated by dividing the amount of emissions from the
source by the amount of that source’s generation and the
amount of generation from EPA-preferred, zero-emitting
sources that the disfavored plants could subsidize. Id. at
64,949. Thus, despite current technology putting average
reductions to 2,071 pounds per megawatt hour in reach for
coal-fired plants, EPA mandated an impossible-to-achieve
standard of 1,305 pounds. 80 Fed. Reg. at 64,667; see also
id. at 64,961 (setting 771 pounds limit for natural gas
plants). This standard was even lower than EPA’s
requirements for new sources under Section 111(b), see 80
Fed. Reg. 64,510, 64,513 (Oct. 23, 205), which is
unsurprising because it was not a traditional emission
limit at all. Instead, the CPP established a credit system
that required sources to subsidize “energy generated or
saved with zero associated emissions” elsewhere. Id. at
64,949, 64,961.
8
The upshot is that most coal- and gas-fired plants
would have been required to reduce operations and invest
in alternate types of generation, or (most often) subsidize
their competitors’ or out-of-state companies’ investments.
Some plants would have been forced to close down. App.
174a. Projected implementation costs and increased
utilities rates for consumers were staggering. App. 174a.
And States would have been stripped of their statutory
flexibility to adjust performance standards based on
sources’ individual characteristics, forced instead to
facilitate reordering their electricity infrastructure. The
CPP required States to impose EPA’s sweeping
subsidization mandate unless they adopted an equivalent
state-level scheme or a mass-based emission allowance
that EPA designed to achieve the same industrytransforming changes as the primary subsidy plan. 80
Fed. Reg. at 64,820-26.
4. Twenty-seven States and numerous other parties took
issue with EPA’s claim “to discover in a long-extant statute
an unheralded power to regulate a significant portion of
the American economy,” Util. Air Regulatory Grp. v.
EPA, 573 U.S. 302, 324 (2014) (“UARG”) (citation
omitted), and challenged the CPP in the D.C. Circuit. 84
Fed. Reg. 32,520 (July 8, 2019). Petitioners in those
actions urged the court to stay the CPP pending judicial
review, but it refused. Order, West Virginia v. EPA, No.
15-1363 (D.C. Cir. Jan. 21, 2016).
This Court was more receptive. The challengers
applied to the Court for a stay pending the D.C. Circuit’s
(and potentially this Court’s) review. Requirements for a
stay include “a reasonable probability that four Justices
will consider the issue sufficiently meritorious to grant
certiorari”; a “fair prospect that a majority of the Court
will vote to reverse [a] judgment below”; and “a likelihood
9
that irreparable harm will result from the denial of a stay.”
Hollingsworth v. Perry, 558 U.S. 183, 190 (2010). On
February 9, 2016, the Court took the unprecedented step
of staying EPA’s rule. E.g., West Virginia v. EPA, 136
S.Ct. 1000 (2016) (No. 15A773).
5. Without waiting for a three-judge panel to decide
the case, the D.C. Circuit sua sponte took it up en banc
and heard oral argument in September 2016. After the
January 2017 change in presidential administration, the
court granted a request to hold the challenges in abeyance
while EPA reconsidered the rule. App. 36a. The court
ultimately dismissed the challenges before issuing a
decision. App. 36a.
On July 8, 2019, following this Court’s “not-so-subtle
hint,” App. 172a, EPA repealed and replaced the CPP. 84
Fed. Reg. at 32,522. EPA determined that the CPP
“significantly exceeded” its authority under Section 111.
Id. at 32,523. Section 111 is limited by its terms to systems
of controls that can be applied successfully at individual
sources, and the CPP unlawfully departed from that
unambiguous constraint. Id. at 32,521, 32,526-27. EPA
also recognized that clear-statement canons bolstered its
view, and that the CPP would have run afoul of the Clean
Air Act’s cooperative federalism framework and
significantly infringed areas of traditional state
sovereignty. Id. at 32,529, 32,521. EPA found telling the
“notable absence of a valid limiting principle” in the CPP’s
contrary approach, and concluded there was no basis to
divine “[c]ongressional intent to endow the Agency with
discretion of this breadth”—including power to regulate
“fundamental sector[s] of the economy.” Id. at 32,529.
EPA also adopted new Section 111(d) guidelines for
existing coal-fired power plants. 84 Fed. Reg. at 32,532.
This Affordable Clean Energy (“ACE”) rule was built on
10
the same threshold determination that measures
achievable only on a regional or grid-wide level cannot be
a “system of emission reduction.” App. 37a-42a.
6. A new group of States and interested parties
challenged the CPP repeal and ACE rule. App. 43a-44a.
Another group of States and other entities intervened in
support of both actions—including Petitioners here and
many of the original challengers in the CPP lawsuits. App.
172a.
On January 19, 2021, after copious briefing and roughly
nine hours of remote oral argument, the D.C. Circuit
issued a 2-1 decision vacating and remanding the CPP
repeal and ACE rule. App. 1a-163a. Without even
acknowledging the Court’s stay, the majority rejected
EPA’s conclusion that no reasonable interpretation of
Section 111(d) authorizes rules that go beyond using
adequately demonstrated equipment and practices for
limiting emissions at particular sources.
The majority relied heavily on the phrase “system of
emission reduction,” one part of Section 111(a)(1)’s
definition of “standard of performance.” App. 56a-58a.
Even though standards of performance indisputably
apply to individual sources, the majority concluded that
EPA can rely on systems that apply to “the source
category” as a whole, or even “emissions” in the abstract.
App. 63a, 66a. Requiring States’ electricity-generation
fleets to shift to zero-emitting alternatives was thus
among the statutorily permitted options.
Indeed, the majority’s analysis allows even more
expansive power than the CPP claimed. The majority
insisted that EPA “tied its own hands” by restricting the
systems it considered for the CPP to, for example, those
“target[ing] supply-side activities” or that reduce
11
emissions directly instead of offsetting their effects. App.
91a n.9. It emphasized that “Congress imposed no limits”
in Section 111 other than directives to consider costs,
nonair health and environmental impacts, and energy
requirements. App. 56a.
The majority did not, however, find clear and
unmistakable delegation of this industry-changing power.
It concluded instead that Section 111 does not implicate
what it characterized as the “so-called ‘major questions
doctrine.’” App. 83a. Congress clearly delegated power
over “what” and “whom” EPA may regulate (greenhouse
gas pollution and power plants), and the majority deemed
Section 111 to give sufficient clarity to “how,” as well.
App. 89a. It similarly rejected federalism concerns
because “[i]nterstate air pollution is not an area of
traditional state regulation,” and EPA is otherwise
authorized to mandate pollution-reduction measures with
broad consequences for States’ electricity-generation
fleets. App. 102a-109a.
The majority also rejected some parties’ challenges to
the ACE rule, including an argument that EPA cannot
regulate coal-fired power plants under Section 111
because that source category is already regulated under
Section 112. App. 124a-146a.
7. By contrast, Judge Walker would have held that
EPA “was required to repeal [CPP] and wrong to replace
it” under Section 111. App. 165a (Walker, J., concurring
in part, concurring in the judgment in part, and dissenting
in part). He explained that Congress disabled EPA from
regulating pollutants “emitted from a source category
which is regulated under [Section 112]”—like coal-fired
power plants. App. 181a (quoting 42 U.S.C. § 7411(d)).
12
Judge Walker was also highly skeptical that Congress
delegated the enormous power the CPP and the majority
claimed. App. 165a-181a. He looked first to Congress’s
failed attempt to enact comprehensive climate-change
legislation in 2009 and President Obama’s order for EPA
to act instead. App. 168a. Then he catalogued the CPP’s
breathtaking consequences: It was self-consciously
conceived as a “groundbreaking” rule for reshaping the
power sector, aimed to reduce carbon emissions “equal to
the annual emissions from more than 166 million cars,”
and would have exacted “almost unfathomable costs” to do
so. App. 173a-174a (citation omitted).
There was therefore nothing “minor” about “one of the
most consequential rules ever proposed by an
administrative agency.” App. 173a. How to address
climate change and “who should pay” for solutions are
matters “of vast economic and political significance.” App.
177a (quoting UARG, 573 U.S. at 324). Judge Walker
noted the Court has not (yet) fully resolved “the nature of
major questions and limits of delegation,” but he
emphasized that the doctrine’s basic premise is sure:
“Either a statute clearly endorses a major rule, or there
can be no major rule.” App. 178a, 180a. And no party
below made “a serious and sustained argument that § 111
includes a clear statement unambiguously authorizing”
the CPP’s approach. App. 165a.
Finally, Judge Walker explained that even if Congress
“allowed generation shifting” under Section 111(d), it
would have been an unconstitutional delegation because
Congress did not “clearly require it.” App. 178a.
Congress must decide “what major rules make good
sense” and cannot shirk that duty by passing off critical
questions to “the impenetrable halls of an administrative
agency.” App. 179a-180a.
13
8. On February 22, 2021, the D.C. Circuit granted
EPA’s motion for a partial stay of issuance of the mandate
with respect to the CPP vacatur, and issued a partial
mandate concerning vacatur of ACE and certain
implementing regulations only. Order, Am. Lung Ass’n v.
EPA, No. 19-1140 (D.C. Cir. Feb. 22, 2021). This Petition
followed.
REASONS FOR GRANTING THE PETITION
I.
This Case Involves Compelling And Timely
Questions Of Federal Law That The Court
Should Resolve.
The Court has reviewed aspects of EPA’s authority to
address greenhouse gas emissions under the Clean Air
Act twice before. UARG, 573 U.S. 302; Massachusetts v.
EPA, 549 U.S. 497 (2007). This case should be the third.
In an “unprecedented intervention” into the previous
iteration of this case concerning these same issues, the
Court stayed the CPP even before the lower court had its
say. App. 171a-172a. This extraordinary order signaled
that the CPP’s legal framework hinges on important
issues of federal law that EPA then—and the court below
now—got so wrong this Court was likely to grant review.
Five years later EPA, the States, and the American
people still lack resolution on these weighty issues. This
case poses exceptionally important questions only the
Court can resolve, and because further delay would carry
serious and far-reaching costs, it should do so now.
A. This case presents unusually important
questions about EPA’s power to unilaterally
remake significant sectors of the economy.
14
The CPP was “one of the most consequential rules ever
proposed by an administrative agency.” App. 173a. Even
more expansively, the decision below gives EPA more
policymaking power than ever before placed in an
agency’s hands. In rejecting Petitioners’ (and EPA’s
below) position that Section 111(d) focuses on what
individual stationary sources can accomplish using
demonstrated technology, the majority concluded that one
portion of one definition is the only restraint on EPA
rulemaking. App. 56a. That novel and atextual reading
sweeps broader than the agency itself tried to go five
years ago in the CPP—giving EPA power to reorder the
utility power sector and mandate sweeping changes to any
industry. Indeed, the majority insisted that EPA “tied its
own hands” in the CPP by setting limits on the scope of its
powers that Congress never required. App. 91a n.9. And
it rejected concerns that its reading affords no limiting
principle: As long as EPA’s purpose is pollution-reduction
and it considers costs and nonair environmental and
energy effects, even measures that fundamentally
reshape the economy are all on the regulatory table. App.
56a. Questions surrounding new and almost limitless
agency powers like these are as important as they come.
1. The consequences of the decision below are
massive—for the electricity sector and the rest of the
economy alike.
In the utility power context, the ruling threatens the
existence of over 200 gigawatts of coal plants and over 500
gigawatts of natural gas plants, or roughly two-thirds of
the nation’s total electricity-generation capacity. U.S.
Energy Information Administration, Electric Power
Annual 2019 tbl. 4.3 (Feb. 2021). Eliminating these power
plants would, in turn, likely lead to shutting down coal
mines and natural gas development that provide high-
15
paying jobs and significant revenues for States and local
governments.
It is also highly unlikely the decision’s ripple effects
will be limited to power plants. There is every reason to
expect EPA will exercise its judicially expanded powers
aggressively: President Biden committed the country to
reducing greenhouse gas emissions 50-52% from 2005
levels by 2030—just 8.5 years from now. See United
States of America, Nationally Determined Contribution
1-2 (Apr. 22, 2021), available at https://www4
.unfccc.int/sites/ndcstaging/PublishedDocuments/United
%20States%20of%20America%20First/United%20States
%20NDC%20April%2021%202021%20Final.pdf.
This
target is far greater than any the Obama Administration
proposed, id., and even the immense changes the CPP
envisioned for the coal and natural gas sectors would not
be enough to get there.
The decision below, however, creates near-boundless
leeway to make up the difference: EPA need only heed the
majority’s reprimand and unlock its self-imposed
handcuffs. Although this case is certainly about power, all
sectors of the economy with buildings that emit
greenhouse gases—that is, nearly all of them—are now in
Section 111(d)’s sights.
Existing stationary sources account for two-thirds of
the carbon emissions subject to President Biden’s
promised target. See U.S. Envt’l Prot. Agency, Draft
Inventory of U.S. Greenhouse Gas Emissions & Sinks:
1990-2019, ES-7 (Feb. 2021). Over 2,000 large buildings
such as “schools, churches, hospitals, hotels, and police
stations” use fossil fuel combustion for heat. 73 Fed. Reg.
44,354, 44375 (July 30, 2008). Nearly every manufacturing
plant in the United States would be covered as well. See
Jeff Deason et al., Electrification of Buildings and
16
Industry in the United States 14 (Mar. 2018). So too the
millions of homes and small businesses that use fossil fuels
for heating air and water. Nat’l Renewable Energy Lab.,
Electrification & Decarbonization 7 (July 2017).
Combined, these sectors emit over 1.4 billion tons of
carbon dioxide emissions each year—almost as much as
the utility power sector’s 1.6 billion tons. See Draft
Inventory, at 1-18 (0.8 billion tons industrial settings, 0.34
billion tons residential settings, and 0.25 billion tons
commercial settings).
Future decarbonization targets also extend beyond the
industries—and individual Americans—that use fossil
fuels for energy. EPA has identified “key categories” for
potential Section 111(d) regulation like “fugitive”
emissions from oil and gas development, as well as certain
aspects of iron, steel, cement, and petrochemical
production. Draft Inventory, at 1-18 to 1-20.
Further, how EPA can now regulate makes the huge
number of potentially regulated entities more troubling.
The majority interpreted “system of emission reduction”
to encompass any means—Section 111 contains “no limits”
as long as EPA thinks about “costs, nonair health and
environmental impacts, and energy requirements.” App.
56a (citation omitted). Thus the agency’s next rule might
not stop with “supply-side activities.” App. 91a n.9
(quoting 80 Fed. Reg. at 64,776, 64,778-79). There is now
no obstacle to calculating emission guidelines that
presume reducing electricity availability for customers in
States that depend on coal and natural gas—just as the
CPP’s guidelines depended on generation-shifting and
subsidization on the supply side. App. 56a.
Similarly, although the majority concluded the
interconnected nature of the nation’s power grids limited
the CPP’s intrusive effects, App. 99a, it found nothing in
17
the statute restricting measures to those within a source’s
particular industry. If EPA can regulate from the
perspective of “emissions” as a whole, App. 66a, not only
is “planting trees” a possible “system of emission
reduction,” App. 91a n.9, but nothing would stop EPA
from requiring regulated parties to subsidize carbon
offsets in any industry with a system it deems “best.”
The majority’s approach would therefore mean EPA
could commandeer almost any greenhouse-gas emitting
building, factory, or house through almost any
mechanism. If this is not transformative power, it is only
because (so far) EPA has stayed its own hand. The
decision below pushes it to regulate to Section 111’s “true”
breadth.
2. The incredible reach of the majority’s decision also
makes this the right case to resolve whether and how
Congress can ever delegate issues of this magnitude. The
Court is clear that agencies may make “decision[s] of vast
economic and political significance” only when clearly
authorized by Congress. App. 177a-178a (citing UARG,
573 U.S. at 324). But there is considerable uncertainty in
the lower courts about when a decision reaches that
threshold.
The division in the panel below illustrates the
confusion. The majority began with skepticism that the
major rules doctrine applies at all. App. 83a (describing
“so-called ‘major questions doctrine’”). It then embraced
a piecemeal analysis, considering whether “each critical
element” of the CPP has been “recognized by Congress
and judicial precedent.” App. 84a. And although the
majority acknowledged the CPP’s economy-shifting
power, it found no need for a clear statement because the
statute requires EPA to consider some potentially
limiting factors. App. 94a-96a.
18
Judge Walker emphasized the CPP’s practical effects,
which made it “arguably one of the most consequential
rules ever proposed by an administrative agency.” App.
173a-174a. He cautioned that approaching the analysis too
abstractly risks erasing the rule: If courts “frame a
question broadly enough, Congress will have always
answered it.” App. 178a. As a result, he viewed EPA’s
purported power holistically, taking seriously its costs and
economic and political significance. App. 173a.
This intra-panel disagreement reflects the D.C.
Circuit’s uneven approach to major-questions cases more
generally. In 2014, for example, the court acknowledged
that broadband regulation involved “decisions of great
‘economic and political significance,’” quoting one of the
seminal major questions cases. Verizon v. FCC, 740 F.3d
623, 639-40 (D.C. Cir. 2014) (quoting FDA v. Brown &
Williamson Tobacco Corp., 529 U.S. 120 (2000)). Yet it did
not require a clear statement pursuant to that case’s
direction because, it reasoned, it was enough for Congress
to provide “limiting principle[s]” on the agency’s power.
Id. Three years later when faced with a near-identical
question, however, the court took no position on “the
precise contours” or even the “existence” of the major
questions doctrine, yet held the statute contained a
sufficiently “clear” statement after all. United States
Telecom Ass’n v. FCC, 855 F.3d 381, 384 (D.C. Cir. 2017)
(per curiam).
There are good grounds to disagree how the doctrine
applies. Judge Walker noted that the Court’s guidance
has been “neither sweeping nor precise,” and expressed
confidence that the Court “will further illuminate the
nature of major questions and the limits of delegation.”
App. 178a, 180a. This language echoes Fourth Circuit
Judge Wynn’s lament that the doctrine is too “difficult” to
19
apply in part because “no judicially accepted standard
appears to have emerged for determining when a question
is sufficiently ‘major.’” Int’l Refugee Assistance Project v.
Trump, 883 F.3d 233, 328 n.3 (4th Cir. 2018), judgment
vacated, 138 S.Ct. 2710 (2018) (Wynn, J., concurring;
citation omitted). The Fifth Circuit, too, recognized
confusion over “the precise status of a ‘major questions’”
doctrine, yet ultimately invalidated a rule based on
separation-of-powers concerns from implicitly delegating
issues of unusual importance. Chamber of Com. of USA v.
U.S. Dep’t of Labor, 885 F.3d 360, 387-88 (5th Cir. 2018).
The Ninth Circuit also recognized an exception to
deference principles where “an agency’s interpretation
involves an issue of deep economic and political
significance”—but in a case involving an executive order,
where by definition non-delegation concerns are not in
play. City & Cty. of San Francisco v. Trump, 897 F.3d
1223, 1242 (9th Cir. 2018) (citation omitted).
This case is thus far from the only context where it
matters whether the major-questions doctrine exists,
what principles animate it, and how clearly Congress must
speak to satisfy it. The Court should resolve these
important questions, too.
B. The important federal issues in this case need
resolution now.
EPA unveiled significant Section 111(d) regulation
under the last two presidential administrations. It plans
to do the same under President Biden’s leadership. See
Resps.’ Mot. for Partial Stay of Issuance of the Mandate,
Am. Lung Ass’n v. EPA, No. 19-1140 (D.C. Cir. Feb. 12,
2021) (“Resp’ts’ Mot.”). Yet without the Court’s review,
EPA and all affected parties will be in an even worse
position this third time around: The D.C. Circuit sent EPA
20
on a “multiyear voyage of discovery” to craft systems of
emission reduction “without regard for the thresholds
prescribed by Congress.” UARG, 573 U.S. at 328. If
EPA’s vessel runs aground—or when it does, considering
the court below sanctioned power more expansive than in
the rule this Court stayed—another several years and
countless resources will be lost with it. Granting review is
critical to avoid this waste, as well as other serious
consequences that could not be undone if the next years of
market decisions are shaped by the specter of EPA’s
unlawful mandate.
1. Rulemaking of the CPP and ACE rules’ magnitude
takes time, as do the accompanying legal challenges from
the many parties on all sides of the issue. EPA proposed
the CPP in June 2014 and finalized it sixteen months later
in October 2015. By January 2017 when a new president
directed EPA to change course, the D.C. Circuit had not
yet issued a decision in the CPP challenges. The
regulatory cycle for the CPP repeal was not much faster:
EPA proposed the new rule in October 2017 and finalized
it in July 2019. The D.C. Circuit rejected that rule in the
decision below over a year-and-a-half later, one day before
President Biden’s inauguration began the cycle yet again.
Looking ahead to another round of rulemaking and
litigation, EPA will begin in the doubly unenviable
position of being bound by the majority’s interpretation
while not knowing whether it accurately reflects the limits
Congress set. This is the Court’s first opportunity to
decide these issues on the merits, and there is no
guarantee when the next will arise if the Court sits this
round out. Depending on timing, the anticipated third rule
in as many administrations might evade review just like
the first. It may thus be 2025 (or later) before the Court
could next provide much-needed clarity. Yet taking up the
21
issue now would put a definitive resolution in reach no
later than June 2022—allowing EPA to propose a rule on
a similar timeframe as the CPP rulemaking, but this time
with certainty in its legal footing.
2. The costs of waiting, however, are too high. Dozens
and dozens of governmental and private parties put
enormous resources into the last two notice-and-comment
processes and following years of litigation. EPA also
committed significant energy into promulgating and
defending its rules. A third cycle will be similarly timeand cost-intensive. More years of resources taken from
the critical areas of energy security and climate-change
policy could thus be erased if the Court declines to clarify
EPA’s legal framework from the outset.
Given the stakes it is important to get these questions
right. But it is also imperative simply to get an answer.
Whatever else can be said for the past rules, nine hours of
oral argument and over “a quarter of a million words” in
briefing show that perhaps the only point on which all
sides agree is that these issues are vital. App. 172a.
The majority emphasized the importance of finding
solutions to climate change, App. 19a—which makes it
essential to know now, not another four or more years in,
which options EPA can use. If the Court ultimately holds
that the D.C. Circuit misread the Clean Air Act, better to
shift public debate as soon as possible to the entity that
can and should act: Congress. There are many pathways
to address climate change, often diametrically opposed,
and the choices have significant and multifaceted
consequences.
Economy-changing issues like these
require bicameral legislative solutions, not an agency
going it alone.
22
And if Section 111 does not grant EPA the wholesale
power the majority envisioned, then States like
Petitioners and myriad regulated parties will suffer
unjustified and weighty consequences along the way.
EPA does not intend merely to shore up the CPP, but is
poised to undertake new rulemaking under the D.C.
Circuit’s flawed directive. Resp’ts’ Mot. 4. Presumably it
will take to heart the court’s rebuke against extrastatutory limits and flex the unbridled power the majority
assured it Congress delegated in Section 111. President
Biden put his 2030 emission-limit commitment on the
world stage, after all, and given the nationwide changes
needed to meet that aggressive target, the majority’s
approach to Section 111 makes it an especially powerful
tool.
States like Petitioners have much to lose under the
majority’s view. The policies we pursue to address climate
change and how costs are allocated are serious issues, and
the States’ contributions will vary significantly. Some
States, for example, are blessed with abundant fossil fuel
resources, while others have extensive industrial
operations like steel mills and cement plants. States like
these will almost certainly bear a disproportionate share
of the massive costs that restructuring mandates would
require. They should not face those consequences based
on the decisions of an unelected and unaccountable
agency.
Critically, the decision below also casts a wide shadow
apart from any specific regulations EPA will promulgate
under it. In terms of setting stable, reliable energy policy,
it is bad enough that States and regulated industries have
been bounced back-and-forth between the past two
administrations’ priorities.
But the fact that the
majority’s decision is the only statement on EPA’s
23
authority makes the short-term situation worse—with an
interpretation biased toward executive unilateralism, the
States are left under a sword of Damocles.
Infrastructure cannot change on a dime; States and
market participants must plan and make resource
commitments years in advance. Pac. Gas & Elec. Co. v.
State Energy Res. Conservation & Dev. Comm’n, 461 U.S.
190, 201-02 (1983). This means that without review the
States (and other stakeholders) would have little choice
but to work with an agency empowered to exercise
unprecedented authority. The States and others will
likely be boxed into concessions and priorities against
their constituents’ interests, and the effects of those
decisions will have ripple effects throughout the power
sector and beyond. After the Court held a prior EPA rule
unlawful in Michigan v. EPA, 135 S.Ct 2699 (2015), for
example, the agency downplayed the decision’s
significance because the majority of regulated entities
were “already in compliance or well on their way to
compliance” with the challenged rule. U.S Envt’l Prot.
Agency, In Perspective: The Supreme Court’s Mercury
and Air Toxics Rule Decision (June 30, 2015),
https://blog.epa.gov/2015/06/30/in-perspective-thesupreme-courts-mercury-and-air-toxics-rule-decision/. If
market forces could be shaped so forcefully by an
erroneous view of EPA’s power while litigation remained
pending, delaying review will likely lead to even more
significant and irreparable changes.
At bottom, this case will determine the overall balance
of power—legislative versus executive, and federal verses
state—for one of the most significant public policy issues
of our day. Questions “particularly high in the scale of our
national interest” are “a uniquely compelling justification
for prompt judicial resolution of [a] controversy.”
24
McCulloch v. Sociedad Nacional, 372 U.S. 10, 17 (1963).
It has already been six years since EPA announced its
vast and newly discovered powers under Section 111(d).
The Court should grant the Petition to ensure it does not
take a full decade—or longer—before all affected parties
know whether that “discovery” was real.
3. Finally, the nature of the decision below gives even
more reason to take up these important matters of
delegation, agency rulemaking, and state sovereignty
now.
First, the question presented has been thoroughly
developed over five years of litigation. The D.C. Circuit
heard the first set of challenges to the CPP in 2016, and
many of the same entities were parties to the consolidated
cases below challenging its repeal. Indeed, over 50 parties
and amici curiae participated below, and briefing
“exceeded a quarter of a million words.” App. 172a.
Questions involving this type of rulemaking do not
percolate through multiple circuits; nevertheless, there is
little question these issues have been fully developed and
reflect the benefit of thoughtful participation from
stakeholders on all sides.
Second, the case presents pure issues of law. EPA
repealed the CPP because of a simple premise: Section
111 does not allow EPA to choose a system of emission
reduction based on offsite compliance measures that
individual stationary sources may not be able to achieve.
App. 37a. This meant the D.C. Circuit answered statutory
and constitutional questions only. It did not view the
question of what Section 111 allows through the lens of
agency discretion, see App. 51a, and its analysis did not
turn on the specific record before EPA when it repealed
the CPP—nor, for that matter, the record when EPA
adopted it four years prior. As a result, granting review
25
will allow the Court to rule on important legal issues that
are not fact-bound and that will necessarily control how
EPA exercises its statutory authority in all future Section
111 proceedings. The States, the many other interested
parties and regulated entities, and EPA itself need
answers to these threshold questions. This is the right
time and the right case to give them.
II.
The Decision Below Is Wrong.
The Court should also grant the Petition because the
D.C. Circuit got the important and time-sensitive issues in
this case wrong. In dissent, Judge Walker characterized
the Court’s 2016 stay as a “not-so-subtle hint,” App. 172a:
EPA should have known then it was building its
regulatory house on sand. Yet when asked whether EPA
was right to repeal that same rule, the majority did not
even mention the stay, and instead turned EPA’s house
into a fortress. The Court should grant review to hold that
EPA was right, the second time, to build elsewhere.
A. Congress did not clearly authorize EPA to
exercise the expansive powers the court
below affirmed.
The majority gave short shrift to the clear-statement
canons. It referred to the Court’s “so-called” major rules
doctrine with a lineage of only a “few” cases. App. 83a. It
concluded the federalism canon “lends no support” to the
claim that EPA cannot functionally require States to
remake their electricity-generation fleets under the guise
of pollution regulation. App. 103a (emphasis added).
And—not surprisingly given this cavalier approach—it
did not attempt to show that Congress spoke with
requisite clarity in Section 111. While Judge Walker
emphasized that none of the many parties challenging the
26
CPP repeal offered “a serious and sustained argument”
that the statute includes clear, unambiguous delegation,
App. 165a, the majority found it sufficient that Section 111
does not unambiguously forbid its reading. Because the
clear statement canons require more, the majority’s
decision must fall if even one applies. Both do here.
If an agency can ever wield economy-transforming
power to decide major questions and significantly alter the
balance of power between the States and federal
government, Congress must delegate that authority with
unmissable clarity. This is because two constitutional
presumptions militate against implicit delegations of such
weighty matters: First, courts presume that “Congress
intends to make major policy decisions itself” and does not
lightly assign “major lawmaking authority . . . to the
Executive Branch.” U.S. Telecom Ass’n, 855 F.3d at 419
(Kavanaugh, J., dissenting from denial of rehearing en
banc). And likewise, courts presume Congress does not
intend to make “a dramatic departure” from the
Constitution’s state-federal balance “[a]bsent a clear
statement of that purpose.” Bond v. United States, 572
U.S. 844, 866 (2014).
In the “major rules” context, the first presumption
translates to the canon that Congress must “speak clearly
if it wishes to assign to an agency decisions of vast
‘economic and political significance.’” UARG, 573 U.S. at
324 (citation omitted). Several types of decisions carry the
“economic and political” heft of a major rule. Most on
point, in another case involving regulation of carbon
dioxide emissions the Court demanded “clear[]”
congressional authorization before affirming EPA’s
“claims to discover in a long-extant statute an unheralded
power to regulate a significant portion of the American
economy.” Id. Exercising established authority in novel
27
and unexpectedly far-reaching ways is another example:
Although the Attorney General routinely denies or
revokes individual doctors’ authorizations to distribute
controlled substances, 21 U.S.C. §§ 823(f), 824(a)(4),
“declar[ing] an entire class of activity outside the course
of professional practice” for all doctors was a “major” rule.
Gonzales v. Oregon, 546 U.S. 243, 262, 267 (2006) (citation
omitted). So too for a rule expanding eligibility for health
insurance tax credits that “involv[ed] billions of dollars in
spending each year and affect[ed] the price of health
insurance for millions of people.” King v. Burwell, 576
U.S. 473, 485 (2015).
The second presumption requires similarly compelling
evidence of delegation. In the federalism context,
Congress must “enact exceedingly clear language if it
wishes to significantly alter the balance between federal
and state power.” U.S. Forest Serv. v. Cowpasture River
Pres. Ass’n, 140 S.Ct. 1837, 1849-50 (2020) (citation
omitted). In other words, a statute may not be read to
delegate power in areas of traditional state sovereignty
unless Congress made that intent “unmistakably clear in
the language of the statute.” Will v. Mich. Dep’t of State
Police, 491 U.S. 58, 65 (1989) (citation omitted).
The power EPA claimed for itself in the CPP—much
more the wildly expansive authority the majority blessed
it with below—triggers both of these canons.
First, if the decision below does not involve a “major
question,” it is difficult to imagine what would. Although
Congress undoubtedly gave EPA power to “make our air
cleaner” by requiring “at least some carbon reduction,”
App. 178a, the majority distorted that grant into a license
for industry-transforming mandates using essentially any
means. The majority downplayed the magnitude of the
CPP’s subsidization mandate. See 80 Fed. Reg. at 64,949.
28
The CPP was deliberately designed to be
“groundbreaking” and economy changing. App. 173a. It
started from the premise that “lives [were] at stake” and
was intended to mark “the moment when the rise of the
oceans began to slow and our planet began to heal”—not
minor issues by any measure. App. 175a, 177a (citation
omitted). Nor is who should pay for EPA’s vision: The
costs of implementing the CPP were projected at
hundreds of billions of dollars and could have led to
immense spikes in consumer electricity rates. App. 174a.
The major rule in Burwell, by contrast, involved “only”
billions. 576 U.S. at 486.
The majority was also wrong that decisions about how
much and what kinds of energy can be generated—along
with all the attendant economic, infrastructure, and
reliability concerns—are of a piece with EPA’s ordinary
“scientific and technological” judgments. App. 91a. It
likewise failed to grapple with the extraordinary
implications if EPA accepts its call to go beyond the CPP:
“Major” power is the ability to dictate how any industrial
or commercial sector operates, or to decide whether
heating systems for millions of homes and thousands of
hospitals and factories must be retrofitted. Claiming
“broad and unusual authority” beyond the agency’s
expertise should have triggered a searching look for clear
authorizing language, Gonzales, 546 U.S. at 267—and all
the more where before the CPP neither EPA nor anyone
else thought that “long-extant” Section 111(d) permitted
anything like it. UARG, 573 U.S. at 324.
Second, the majority’s reading of Section 111 has
striking implications for state sovereignty. Energy
generation and utilities regulation are among “the most
important . . . functions traditionally associated with the
police power of the States.” Ark. Elec. Co-op Corp. v. Ark.
29
Pub. Serv. Comm’n, 461 U.S. 375, 377 (1983); see also
Cent. Hudson Gas & Elec. Corp. v. Pub. Serv. Comm’n of
N.Y., 447 U.S. 557, 568-69 (1980). These “traditional
responsibilit[ies]” include “determining questions of need,
reliability, cost and other related state concerns”—
assessing the State’s energy-generation capacity needs as
well as what types of facilities to license. Pac. Gas, 461
U.S. at 205, 212; see also Hughes v. Talen Energy Mktg.,
LLC, 136 S.Ct. 1288, 1299 (2016) (describing States’ wide
discretion when modifying existing or exploring new
energy systems).
The majority brushed past the CPP’s intrusion into
this sphere on the theory that States were “free to choose
the compliance measures” they preferred, as long as they
satisfied EPA’s emission guideline. App. 107a. Yet this
ephemeral protection ignores how the CPP would have
operated: Though not technically requiring generation
shifting, EPA set emission standards that would have
“been unachievable or too costly to meet” otherwise. App.
171a; see also 80 Fed. Reg. at 64,822. The CPP was thus
a functional mandate for coal and natural gas States to
remake their utility fleets according to one top-down,
federal design. And the decision below is an invitation for
EPA to make its next standards stricter still, leaving even
fewer options for States with the bad luck to depend on
sources of energy the agency disfavors.
B. Section 111’s text and context foreclose the
majority’s approach.
The fact that Congress did not clearly authorize the
majority’s near-boundless view of agency power should
have ended the analysis. But in any event, no fair
construction of Section 111 supports the sweeping holding
below, either. The majority’s “no limits” view rests on an
30
unreasonable reading of the phrase “system of emission
reduction”—both by itself and in context with the rest of
Section 111.
Reading Section 111(d)’s precise terms in context
makes its meaning plain: EPA must establish a process
through which States set “standards of performance for
any [covered] existing source.” 42 U.S.C. § 7411(d)(1)
(emphases added). A “standard of performance,” in turn,
must “reflect[] the degree of emission limitation
achievable through the application of the best system of
emission reduction.” Id. § 7411(a)(1) (emphases added).
The “system” EPA selects is thus one aspect of one
definition; the key terms surrounding it make clear that it
refers to measures a particular source can successfully
adopt to reduce its own emissions. A “stationary source,”
for instance, is defined in physical terms and at the
individual—not industry-wide—level. Id. § 7411(a)(3).
And a standard of “performance” presumes action; a
system that requires curtailing or stopping operations
altogether requires the opposite.
The majority erred by letting “system” do the heavy
lifting without accounting for how that word operates
within the definition of “standard of performance” and the
broader statute.
Understanding that performance
standards are source-specific targets makes it difficult to
reconcile the majority’s view that a system of emission
reduction—an essential aspect of developing those
standards—could be so far divorced from anything a
particular source could achieve.
The majority’s analysis also fails on its own terms. The
majority determined that “best system of emission
reduction” encompasses any “means” or “measures” to
reduce emissions when viewed from a nationwide or gridwide lens, instead of equipment or practices a particular
31
source can adopt to reduce its own emissions. App. 54a58a. This interpretation turned on a definition of “system”
as a “complex unity formed of many often diverse parts
subject to a common plan or serving a complex purpose.”
App. 56a-57a (quoting System, WEBSTER’S THIRD NEW
INTERNATIONAL DICTIONARY OF THE ENGLISH
LANGUAGE UNABRIDGED 2322 (2d ed. 1968)). Yet the CPP
was no “unity” of “parts,” but a singular mandate
requiring reduced output, subsidization, or both. App.
56a. Tying “system” to what a particular source can
achieve, by contrast, better reflects this dictionary
definition: Technology and practices individual sources
can implement do constitute a set of physical and
operational parts aimed at a particular end.
The cracks get wider when reading “best system of
emission reduction” in its statutory context. E.g., UARG,
573 U.S. at 321 (statutory construction accounts for a
term’s “specific context” and “the broader context of the
statute as a whole” (citation omitted)). For example, EPA
must select an “adequately demonstrated” system. 42
U.S.C. § 7411(a)(1). This term has readily apparent
meaning for equipment and practices—the difference
between research and development and successful
implementation. Not so for the many “measures” EPA
could adopt under the lower court’s interpretation: There
is no need to “demonstrate” that emissions will go down if
an emission-emitting source reduces operations or closes
down. Similarly, requiring one source to subsidize
another is a policy choice about preferred energy
generation. It is unclear what research and development
would “demonstrate” for a mandate like that.
Further, CPP’s focus on the “degree of emission
limitation achievable” in the aggregate would have left
States lacking EPA’s preferred energy resources little or
32
no leeway to craft individual standards for each source in
their fleets—much less to take into account sourcespecific factors like “remaining useful life” while doing so.
42 U.S.C. § 7411(d)(1). In many cases, it would have been
impossible for a particular existing source in those States
to “achieve” the stringent standard EPA set. Cf. Essex
Chem. Corp., 486 F.2d at 434 (explaining that achievability
means more than “purely theoretical or experimental”).
The idea of a standard of performance that source could
meet would thus have become meaningless under the
CPP, and even more now under the majority’s any
“means” or “measures” test.
C. The majority’s interpretation of Section 111
violates the separation of powers.
Finally, if the majority is right that Congress placed
functionally “no limits” on EPA’s authority, App. 56a, then
Section 111 would raise serious non-delegation concerns.
It is a “principle universally recognized as vital to the
integrity and maintenance” of our constitutional system
that Congress “cannot delegate legislative power.”
Marshall Field & Co. v. Clark, 143 U.S. 649, 692 (1982);
see also Gundy v. United States, 139 S.Ct. 2116, 2133
(2019) (Gorsuch, J., dissenting). Yet because “Congress
simply cannot do its job absent an ability to delegate
power under broad general directives,” the Constitution
permits agency delegation so long as Congress provides
“specific restrictions” that “meaningfully constrain[]” the
agency’s scope of authority. Mistretta v. United States,
488 U.S. 361, 372 (1989); Touby v. United States, 500 U.S.
160, 166-67 (1991).
This doctrine means Congress cannot “confer[]
authority to regulate the entire economy on the basis of”
an overly vague standard, just as it cannot provide the
33
agency “literally no guidance.” Whitman v. Am. Trucking
Ass’ns, 531 U.S. 457, 474 (2001) (citation omitted).
Instead, the people’s representatives must make
“fundamental policy decisions”—that is, “the hard
choices,” as opposed to “filling in of the blanks.” Indus.
Union Dep’t, AFL-CIO v. Am. Petroleum Inst., 448 U.S.
607, 687 (1980) (Rehnquist, J., concurring in the
judgment). As Judge Walker put it, it is Congress’s job to
decide “what major rules make good sense.” App. 179a.
More specifically, the Court demands “substantial”
congressional guidance when it comes to setting “air
standards that affect the entire national economy.”
Whitman, 531 US at 475; see also Michigan, 135 S.Ct. at
2713 (Thomas, J., concurring) (noting “potentially
unconstitutional delegation[]” if EPA possessed
unfettered discretion over “which policy goals [it] wishes
to pursue”). True, EPA may fill in the gaps with some
“judgments of degree.” Whitman, 531 U.S. at 475. But
Congress cannot ask EPA to decide for itself “the criteria
against which to measure” its decisions. Gundy, 139 S.Ct.
at 2141 (Gorsuch, J., dissenting).
Properly understood, Section 111 passes muster: It
requires EPA to make technical and scientific judgments
about source-level systems of emission reductions. The
majority, however, read Section 111 to “allow[]” but not
“require” EPA to go much further—mandating wholesale
restructuring of the energy sector. App. 178a. After all,
the CPP was not merely a standard premised on the
degree of reductions generation-shifting could yield; by
requiring States to set rate-based standards to subsidize
alternate generation or a mass-based standard tailored to
accomplish the same “kinds of generation shifts,” it made
generation-shifting itself the goal. 80 Fed. Reg. 64,949 at
(40 C.F.R. § 60.5790(c)(1)); id. at 64,823.
34
The decision below would thus allow EPA to decide
what policy goals to pursue when structuring the
electricity grid—as well as which other sectors to
decarbonize, how much, and how fast. That type of power
looks suspiciously like Congress shirked the fundamental
questions and failed to “meaningfully constrain[]” EPA,
while at the same time empowering EPA to assume
Congress’s rightful role. Touby, 500 U.S. at 167. Even if
Congress had enacted such a statute, this “sweeping
delegation of legislative power” almost certainly could not
stand. Indus. Union, 448 U.S. at 646 (Stevens, J.,
controlling op.).
CONCLUSION
The petition for a writ of certiorari should be granted.
Respectfully submitted.
PATRICK MORRISEY
Attorney General
OFFICE OF THE
WEST VIRGINIA
ATTORNEY GENERAL
State Capitol Complex
Building 1, Room E-26
Charleston, WV 25305
lindsay.s.see@wvago.gov
(304) 558-2021
LINDSAY S. SEE
Solicitor General
Counsel of Record
ROBERT D. CHEREN*
Special Assistant
THOMAS T. LAMPMAN
Assistant Solicitor
General
*admitted in Ohio; practicing
under supervision of West
Virginia attorneys
Counsel for Petitioner State of West Virginia
35
ADDITIONAL COUNSEL
STEVE MARSHALL
Attorney General
State of Alabama
AUSTIN KNUDSEN
Attorney General
State of Montana
TREG R. TAYLOR
Attorney General
State of Alaska
DOUGLAS J. PETERSON
Attorney General
State of Nebraska
LESLIE RUTLEDGE
Attorney General
State of Arkansas
DAVE YOST
Attorney General
State of Ohio
CHRISTOPHER M. CARR
Attorney General
State of Georgia
MIKE HUNTER
Attorney General
State of Oklahoma
THEODORE E. ROKITA
Attorney General
State of Indiana
ALAN WILSON
Attorney General
State of South Carolina
DEREK SCHMIDT
Attorney General
State of Kansas
JASON RAVNSBORG
Attorney General
State of South Dakota
JEFF LANDRY
Attorney General
State of Louisiana
KEN PAXTON
Attorney General
State of Texas
ERIC S. SCHMITT
Attorney General
State of Missouri
SEAN D. REYES
Attorney General
State of Utah
36
BRIDGET HILL
Attorney General
State of Wyoming
TATE REEVES
Governor
State of Mississippi
By counsel:
Joseph Anthony Scalfani
Office of the Governor of
Mississippi
550 High Street, Suite 1900
Post Office Box 139
Jackson, MS 39205
joseph.scalfani@
govreeves.ms.gov
(601) 576-2138
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.