Reply Brief — Oklahoma, et al., Applicants v. Environmental Protection Agency, et al.

Supreme Court briefSep 24, 2024

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No.24A213

In the Supreme Court of the United States

OKLAHOMA, ET AL.,

APPLICANTS,

v.

ENVIRONMENTAL PROTECTION AGENCY, ET AL.

REPLY IN SUPPORT OF APPLICATION FOR STAY OF FINAL

AGENCY ACTION DURING PENDENCY OF PETITION FOR REVIEW

On Application For Stay To The

United States Court Of Appeals For The District Of Columbia

To the Honorable John G. Roberts, Jr.,

Chief Justice of the United States and Circuit Justice for the United States

Court of Appeals for the District of Columbia Circuit

GENTNER DRUMMOND

Attorney General

GARRY M. GASKINS, II

Solicitor General

JENNIFER L. LEWIS

Deputy Attorney General

OFFICE OF THE ATTORNEY

GENERAL OF OKLAHOMA

313 NE Twenty-First St.

Oklahoma City, OK 73105

CARROLL WADE MCGUFFEY III

TROUTMAN PEPPER

HAMILTON SANDERS LLP

600 Peachtree St. N.E., Suite 3000

Atlanta, GA 30308

MISHA TSEYTLIN

Counsel of Record

KEVIN M. LEROY

KAITLIN L. O’DONNELL

EMILY A. O’BRIEN

DYLAN DEWITT

TROUTMAN PEPPER

HAMILTON SANDERS LLP

227 W. Monroe, Suite 3900

Chicago, Illinois 60606

(608) 999-1240

misha.tseytlin@troutman.com

JEFF P. JOHNSON

CARLY ROTHMAN SIDITSKY

TROUTMAN PEPPER

HAMILTON SANDERS LLP

1001 Haxall Point, Suite 1500

Richmond, VA 23219

Counsel for the State of Oklahoma

(Additional counsel listed on following pages)

STEVE MARSHALL

Attorney General

TIM GRIFFIN

Attorney General

EDMUND G. LACOUR JR.

Solicitor General

OFFICE OF THE ATTORNEY GENERAL OF

ALABAMA

501 Washington Avenue

P.O. Box 300152

Montgomery, Alabama 36130-0152

NICHOLAS J. BRONNI

Solicitor General

Counsel for the State of Alabama

DYLAN JACOBS

Deputy Solicitor General

OFFICE OF THE ARKANSAS ATTORNEY

GENERAL

323 Center Street, Suite 200

Little Rock, AR 72201

Counsel for the State of Arkansas

TREG TAYLOR

Attorney General

ASHLEY MOODY

Attorney General

GARRISON TODD

Assistant Attorney General

ALASKA DEPARTMENT OF LAW

1031 W. 4th Ave., Ste. 200

Anchorage, AK 99501

HENRY C. WHITAKER

Solicitor General

Counsel for State of Alaska

JAMES H. PERCIVAL

Chief of Staff

OFFICE OF THE ATTORNEY GENERAL OF

FLORIDA

The Capitol, Pl-01

Tallahassee, Florida 32399-1050

Counsel for the State of Florida

CHRISTOPHER M. CARR

Attorney General

BRENNA BIRD

Attorney General

STEPHEN J. PETRANY

Solicitor General

OFFICE OF THE ATTORNEY GENERAL OF

GEORGIA

40 Capitol Square, SW

Atlanta, GA 30334

ERIC H. WESSAN

Solicitor General

OFFICE OF THE ATTORNEY GENERAL

OF IOWA

1305 E. Walnut Street

Des Moines, IA 50319

Counsel for the State of Georgia

Counsel for the State of Iowa

RAÚL R. LABRADOR

Attorney General

THEODORE E. ROKITA

Attorney General

JOSHUA N. TURNER

Chief of Constitutional Litigation and

Policy

JAMES A. BARTA

Solicitor General

OFFICE OF THE ATTORNEY GENERAL OF

INDIANA

302 W. WASHINGTON ST.

Indianapolis, IN 46204

ALAN M. HURST

Solicitor General

OFFICE OF THE IDAHO ATTORNEY

GENERAL

P.O. Box 83720

Boise, Idaho 83720

Counsel for State of Indiana

Counsel for the State of Idaho

RUSSELL COLEMAN

Attorney General

KRIS KOBACH

Attorney General

MATTHEW F. KUHN

Solicitor General

OFFICE OF THE KENTUCKY ATTORNEY

GENERAL

700 Capital Avenue, Suite 118

Frankfort, KY 40601

ANTHONY J. POWELL

Solicitor General

KANSAS ATTORNEY GENERAL’S OFFICE

120 SW 10th Avenue, 2nd Floor

Topeka, Kansas 66612-1597

Counsel for the Commonwealth of

Kentucky

Counsel for the State of Kansas

LIZ MURRILL

Attorney General

ANDREW BAILEY

Attorney General

J. BENJAMIN AGUIÑAGA

Solicitor General

LOUISIANA DEPARTMENT OF JUSTICE

1885 N. Third Street

Baton Rouge, LA 70804

JOSHUA M. DIVINE

Solicitor General

Counsel for the State of Louisiana

SAMUEL C. FREEDLUND

Deputy Solicitor General

MISSOURI ATTORNEY GENERAL’S OFFICE

207 West High St.

Jefferson City, MO 65101

Counsel for State of Missouri

LYNN FITCH

Attorney General

AUSTIN KNUDSEN

Attorney General

JUSTIN L. MATHENY

Deputy Solicitor General

OFFICE OF THE MISSISSIPPI ATTORNEY

GENERAL

P.O. Box 220

Jackson, MS 39205-0220

CHRISTIAN B. CORRIGAN

Solicitor General

MONTANA DEPARTMENT OF JUSTICE

215 North Sanders P.O. Box 201401

Helena, MT 59620-1401

Counsel for State of Mississippi

Counsel for the State of Montana

DREW H. WRIGLEY

Attorney General

MICHAEL T. HILGERS

Attorney General

PHILIP AXT

Solicitor General

OFFICE OF ATTORNEY GENERAL OF

NORTH DAKOTA

600 E. Boulevard Ave., Dept. 125

Bismarck, ND 58505

ERIC J. HAMILTON

Solicitor General

NEBRASKA DEPARTMENT OF JUSTICE

2115 State Capitol

Lincoln, Nebraska 68509

Counsel for State of North Dakota

Counsel for the State of Nebraska

DAVID YOST

Attorney General

ALAN WILSON

Attorney General

T. ELLIOT GAISER

Solicitor General

ROBERT D. COOK

Solicitor General

MATHURA J. SRIDHARAN

Deputy Solicitor General

OHIO ATTORNEY GENERAL’S OFFICE

30 E. Broad Street

Columbus, OH 43215

J. EMORY SMITH, JR.

Deputy Solicitor General

Counsel for the State of Ohio

JOSEPH D. SPATE

Assistant Deputy Solicitor General

OFFICE OF THE ATTORNEY GENERAL OF

SOUTH CAROLINA

1000 Assembly Street

Columbia, SC 29201

Counsel for the State of South Carolina

JASON MIYARES

Attorney General

SEAN D. REYES

Attorney General

KEVIN M. GALLAGHER

Principal Deputy Solicitor General

VIRGINIA ATTORNEY GENERAL’S OFFICE

202 North 9th Street

Richmond, VA 23219

STANFORD E. PURSER

Solicitor General

UTAH ATTORNEY GENERAL’S OFFICE

160 East 300 South, 5th Floor

Salt Lake City, UT 84114

Counsel for the Commonwealth of

Virginia

Counsel for the State of Utah

BRIDGET HILL

Attorney General

PATRICK MORRISEY

Attorney General

D. DAVID DEWALD

Deputy Attorney General

OFFICE OF THE ATTORNEY GENERAL OF

WYOMING

109 State Capitol

Cheyenne, WY 82002

MICHAEL R. WILLIAMS

Solicitor General

OFFICE OF THE ATTORNEY GENERAL OF

WEST VIRGINIA

State Capitol Complex

Building 1, Room E-26

Charleston, WV 25301

Counsel for the State of Wyoming

Counsel for the State of West Virginia

WARREN PETERSEN

President Of The Arizona

State Senate

BEN TOMA

Speaker Of The Arizona

House Of Representatives

By Counsel:

BRUNN (BEAU) W. ROYSDEN III

FUSION LAW, PLLC

7600 N. 15th St., Suite 150

Phoenix, Arizona 85020

By Counsel:

BRUNN (BEAU) W. ROYSDEN III

FUSION LAW, PLLC

7600 N. 15th St., Suite 150

Phoenix, Arizona 85020

Counsel for President of the

Arizona State Senate Warren

Petersen

Counsel for Speaker of the Arizona

House of Representatives Ben Toma

TABLE OF CONTENTS

INTRODUCTION .......................................................................................................... 1

ARGUMENT .................................................................................................................. 3

I.

State-Applicants Have Shown That This Court Would Likely Review And

Reverse Any Decision Of The D.C. Circuit Upholding The Section 111(d)

Component Of The Rule ........................................................................................ 3

A.

The Rule’s Imposition Of “Presumptive Standards” That States Must

Rebut Before Exercising Their Authority To Establish Their Own

Standards Of Performance Violates Section 111(d) ..................................... 3

B.

The Two-Year Deadline For States To Submit Their Section 111(d)

Plans Violates The APA ................................................................................ 8

II. State-Applicants Will Suffer Irreparable Harm If This Court Does Not

Grant A Stay ....................................................................................................... 12

III. Leaving The Rule In Place Is Contrary To The Public Interest........................ 16

CONCLUSION............................................................................................................. 20

TABLE OF AUTHORITIES

Cases

Am. Lung Ass’n v. EPA,

985 F.3d 914 (D.C. Cir. 2021) ........................................................................... 11

Califano v. Yamasaki,

442 U.S. 682 (1979) ........................................................................................... 19

Louisiana v. Am. Rivers,

142 S. Ct. 1347 (2022) ....................................................................................... 19

Ohio v. EPA,

144 S. Ct. 2040 (2024) ................................................................................... 9, 10

Sierra Club v. Morton,

405 U.S. 727 (1972) ........................................................................................... 16

St. Mary’s Honor Ctr. v. Hicks,

509 U.S. 502 (1993) ............................................................................................. 5

West Virginia v. EPA,

597 U.S. 697 (2022) ....................................................................................... 3, 11

Statutes And Rules

42 U.S.C. § 7411 ....................................................................................... 3, 4, 5, 6, 9, 13

42 U.S.C. § 7436 ........................................................................................................... 17

Sup. Ct. R. 10 ................................................................................................................. 3

Regulations

40 C.F.R. § 60.24a .......................................................................................................... 6

40 C.F.R. § 60.27a ........................................................................................................ 12

74 Fed. Reg. 66,496 (Dec. 15, 2009) ............................................................................ 17

81 Fed. Reg. 35,824 (June 3, 2016) ............................................................................. 10

86 Fed. Reg. 63,110 (Nov. 15, 2021) .............................................................................. 7

88 Fed. Reg. 80,480 (Nov. 17, 2023) ............................................................................ 12

Other Authorities

Antonin Scalia & Bryan A. Garner, Making Your Case: The Art of Persuading

Judges (2008) ...................................................................................................... 8

Exec. Off. of the President, The President’s Climate Action Plan (June 2013) ......... 17

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INTRODUCTION

As State-Applicants explained in their Stay Application, EPA designed the

Rule at issue here to force States to adopt EPA’s “presumptive standards” for

regulating methane emissions from existing oil and gas facilities, thus depriving

States of their statutory right to craft their own standards of performance for these

facilities.

EPA accomplished this by first illegally promulgating “presumptive

standards of performance,” thus forcing States to rebut EPA’s standards before being

able to adopt their own standards, and then by giving States what the agency knew

would be an entirely insufficient amount of time to develop their own standards for

these facilities. Absent a stay, EPA’s gambit to force the States to submit to EPA’s

“presumptive standards” will impose irreparable harm upon the States. As StateApplicants showed through detailed declarations, absent a stay EPA’s Rule will

require States to surrender their sovereign right to adopt their own standards of

performance, while spending unrecoverable sovereign resources to design Rulecompliant state plans that States will scrap once the courts vacate the Rule at the

end of this litigation.

EPA responds largely with attempted misdirection. EPA repeats over and

again that the Rule’s “presumptive standards” do not completely “prevent” States

from taking a different approach, EPA Resp.18, are not “binding,” EPA Resp.22, and

do not “predetermine” the outcome of a state plan submission, EPA Resp.23. While

it would, of course, be illegal for EPA to have adopted “binding” standards for existing

facilities under Section 111(d)—as the agency can do for new facilities under Section

111(b)—it is also illegal for the agency to do what it did here: give presumptive weight

to its own standards, while leaving open the theoretical possibility that some State

could rebut that presumption. EPA also argues that States can submit standards

within EPA’s truncated two-year schedule because the Rule does not require States

to “devise bespoke methane regulations for each covered facility in a State” or force

States to inventory all regulated facilities. EPA Resp.25–26. But EPA disputes

neither that Section 111(d) gives States the right to adopt bespoke standards, which

requires an inventory, nor that two years is not enough time for many States to

complete that type of work—especially States like Oklahoma, which will be

regulating hundreds of thousands of existing facilities for the first time.

EPA’s responses to State-Applicants’ showing that a stay is necessary to

prevent irreparable harm and advance the public interest fare no better. EPA urges

that States can simply decline to submit a state plan and subject themselves to a

federal plan. But the federal plan would consist of the very same “presumptive

standards” that State-Applicants want to avoid. As to the consideration of the public

interest, EPA does not dispute that its “presumptive standards” would raise energy

rates on ordinary Americans, but it claims that urgency in combatting climate change

outweighs these harms.

Yet, EPA showed no such urgency when delaying the

issuance of any methane rule for existing oil and gas facilities for more than a decade.

EPA cannot now be heard to argue that States must surrender their sovereign,

statutory rights because the agency has decided it wants to now act with haste.

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ARGUMENT

I.

State-Applicants Have Shown That This Court Would Likely Review

And Reverse Any Decision Of The D.C. Circuit Upholding The Section

111(d) Component Of The Rule

A.

The Rule’s Imposition Of “Presumptive Standards” That States

Must Rebut Before Exercising Their Authority To Establish

Their Own Standards Of Performance Violates Section 111(d)

1. As State-Applicants explained, the Rule violates Section 111(d) of the Clean

Air Act by imposing “presumptive standards of performance” that States must rebut

to avoid EPA imposing a federal plan on the oil and gas facilities in their States, and

this Court would likely grant review of a decision from the D.C. Circuit resolving that

“important question of federal law” against State-Applicants. States Appl.15–20

(quoting Sup. Ct. R. 10(c)). Section 111(d) authorizes EPA only to determine the best

system of emission reduction and the degree of emission limitation achievable for

certain pollutants. 42 U.S.C. § 7411(a), (d); States Appl.15–16. Section 111(d) then

grants States the power to “set the actual rules governing existing” sources to meet

the emissions guidelines set by EPA for the pollutant at issue, West Virginia v. EPA,

597 U.S. 697, 710 (2022), including by achieving less reduction when “tak[ing] into

consideration, among other factors, the remaining useful life of the existing source to

which such standard applies,” 42 U.S.C. § 7411(d)(1); States Appl.15–16.

The Rule here subverts this carefully crafted statutory structure and so is

unlawful. The Rule arrogates to EPA a key portion of the States’ Section 111(d)

authority by purporting to impose “presumptive standards of performance” upon the

States’ state plan submission, such that States must rebut those “presumptive

standards” before they may establish their own standards. States Appl.16–17 (citing

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App.10a–11a; App.14a–16a; App.70a; App.176a).

That is how a “presumption”

operates under blackletter law: establishing some predicate fact that produces a

conclusion in the absence of a contrary showing by the party against whom the

presumption operates.

States Appl.16–17.

And that is how the “presumptive

standards” operate here, with EPA explaining in the Rule that “components of a state

plan that differ from any presumptively approvable aspects of the [emissions

guidelines] . . . will be thoroughly reviewed by the EPA,” App.187a (emphasis added);

States Appl.19, while making clear that States must satisfy certain heightened

requirements before they may exercise their statutory right to require smaller

emission reductions based upon each facility’s “remaining useful life,” 42 U.S.C.

§ 7411(d)(1); see States Appl.17–19.

2. EPA’s Response argues that the Rule’s “‘presumptive standards . . . do not

prevent States from adopting a different approach,” EPA Resp.18 (emphasis added),

because those standards are not “binding,” EPA Resp.22 (emphasis added), such that

EPA did “not predetermine the outcome” of its action on any particular state plan,

EPA Resp.23 (emphasis added). This is unresponsive to State-Applicants’ argument

that the “presumptive standards” operate just as their label indicates: When a State

wants a state plan that is different than EPA’s presumptively approvable standards,

States must make a special showing beyond the one that would be required if EPA

had stayed in its statutorily authorized lane by identifying “the best system of

emission reduction” and the “degree of emission limitation achievable through

application of” that system, 42 U.S.C. § 7411(a)(1), and then approving any state plan

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that achieves either that level of emission reductions or a lesser amount if the State

concludes that such lesser amount is justified after considering a facility’s “remaining

useful life,” id. § 7411(d)(1).

Nowhere in its Response does EPA engage with State-Applicants’ argument

that, by adopting “presumptive standards,” the Rule places upon the States “the

burden of producing an explanation to rebut” these standards, or else EPA will reach

the “required conclusion in the absence of [such] an explanation” that the State’s

Section 111(d) plan must include these standards.

Compare States Appl.17–18

(quoting St. Mary’s Honor Ctr. v. Hicks, 509 U.S. 502, 506 (1993)), with EPA Resp.18–

24. Rather, EPA just asserts generally that “its understanding and intent [is] that

its review of state methane-emission plans would be conducted under the generally

applicable statutory and regulatory provisions that govern the state-plan-submission

process.” EPA Resp.2. But the Rule explains how EPA would apply these “generally

applicable statutory and regulatory provisions,” EPA Resp.2, to review States’ Section

111(d) plan submissions, see States Appl.11–12, 16–17. And the Rule is clear on that

point: A State must either adopt EPA’s “presumptive standards” or rebut those

“presumptive standards” to justify adopting its own standards.

See States

Appl.17–18.

EPA’s Response has no serious answer to State-Applicants’ argument that the

Rule’s “presumptive standards” undermine the States’ statutory authority to adopt

standards of performance that “take into consideration, among other factors, the

remaining useful life of the existing source to which such standard applies.” 42 U.S.C.

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§ 7411(d)(1). EPA claims that the Rule does not limit the States’ statutory discretion

to consider a “facility’s remaining useful life” or “other factors” when crafting their

Section 111(d) plans, but its own words give the game away. See EPA Resp.22–23.

Under the Rule, States may only exercise their statutory rights to consider the

remaining useful life of a facility and choose to apply a less burdensome emissions

limitation on that facility—thereby departing from the Rule’s “presumptive

standards”—after satisfying specific, heightened requirements that the Rule lays out.

See App.183a–86a (incorporating 40 C.F.R. § 60.24a (subpart Ba)). This is contrary

to the plain text of Section 111(d), which expressly empowers the States to “take into

consideration”—throughout the entire development of their Section 111(d) plan, with

no limitation—“the remaining useful life of the existing source to which such

standard applies” and “other factors.” 42 U.S.C. § 7411(d)(1).

EPA’s efforts to whitewash its multiple statements that the agency will give

heightened review to state efforts to reject the agency’s “presumptive standards” are,

with respect, unserious.

EPA asserts that the preamble’s statement that

“components of a state plan that differ from any presumptively approvable aspects of

the [emissions guidelines] . . . will be thoroughly reviewed by the EPA,” App.187a

(emphasis added), “simply refers to EPA’s use of notice-and-comment rulemaking to

review state-plan submittals,” EPA Resp.22. No one believes that is what EPA means

here. The entire state plan must proceed through notice-and-comment rulemaking,

not just “components” that depart from EPA’s “presumptively approvable” standards.

See App.10a. What EPA is clearly saying with the phrase “thoroughly review” is just

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what it said elsewhere in the Federal Register: “[I]t would likely be difficult for States

to demonstrate that the “presumptive standards” are not reasonable for the vast

majority of designated facilities,” 86 Fed. Reg. 63,110, 63,251 (Nov. 15, 2021), so

States need to think twice before departing from the “presumptive standards” given

EPA’s threatened “thorough[ ] review[ ],” App.187a. The Rule also states that it

would be “extremely unlikely” that States could depart from certain “presumptive

standards” based on cost considerations, further showing that the Rule requires

States to justify any departure from the “presumptive standards” before adopting

their own standards. States Appl.19 (quoting App.185a (emphasis added)).

The Environmental and Health Respondents—but not EPA itself—attempt to

address State-Applicants’ point that the force of the “presumptive standards” is also

demonstrated by the Rule’s refusal to offer a “total program evaluation” for those

States that already regulate methane in satisfaction of the Rule’s requirements. See

States Appl.11–12; Env’l & Health Resp.7.

The Environmental and Health

Respondents’ only response is that a “total program evaluation” option would be

“extremely complicated,” given that States may have “programs containing a mix of

performance standards . . . and equipment and work practice standards.” Env’l &

Health Resp.7–8. However, these parties’ subjective view of the complexity of this

approach cannot justify limiting the States’ authority to set their own standards.

Finally, EPA claims that State-Applicants’ merits arguments are “speculative

and unripe” because they depend upon EPA “appl[ying] an unduly stringent standard

in determining whether [their] state plans should be approved” under the Rule. EPA

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Resp.23–24. But the Rule infringes States’ statutory and sovereign authority now by

imposing “presumptive standards,” thus changing the way that the States will design

their state plans. States Appl.16–20. Because the Rule requires States to rebut those

“presumptive standards” to set their own standards, see States Appl.16–20, these

“presumptive standards” will inevitably dictate how the States develop their Section

111(d) plans for EPA’s review, see, e.g., App.10a. To take an analogy, the standards

of review that an appellate court will apply to a given appellate issue dictate the

content and form of the parties’ submissions on appeal. See Antonin Scalia & Bryan

A. Garner, Making Your Case: The Art of Persuading Judges 11–13 (2008) (“Pay

careful attention to the applicable standard of decision.”). So too here: because the

Rule requires the States to rebut the “presumptive standards” if they wish to adopt

their own standards of performance, States will have to shape their Section 111(d)

plan-making efforts now around EPA’s illegal “presumptive standards.”

B.

The Two-Year Deadline For States To Submit Their Section

111(d) Plans Violates The APA

1. Many States commented during the rulemaking process that they needed at

least three years to prepare a Section 111(d) plan under the Rule, given the number

of previously unregulated sources involved. States Appl.21–22, 23–24. EPA did not

meaningfully respond to this critical concern in the Rule, instead addressing only a

different timing issue, related to completing state administrative processes and the

like. States Appl.22–23. EPA’s “fail[ure] to supply a satisfactory explanation” of how

it reasonably dealt with this problem is the same APA violation that EPA made with

the rule at issue in this Court’s recent decision in Ohio v. EPA, 144 S. Ct. 2040, 2053–

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54 (2024) (citation omitted).

States Appl.24–25.

And the error is particularly

significant here because the agency’s truncated timeframe, combined with the fact

that the Rule requires States to regulate hundreds of thousands of new facilities for

the first time, ensures that States will need to adopt EPA’s “presumptive standards.”

States Appl.23–24.

2. EPA again attempts misdirection, focusing on the fact that the Rule does not

require States to conduct an “inventory” of the hundreds of thousands of oil and gas

facilities that the Rule will cover and underscoring that “a state plan need not and

would not reasonably devise bespoke methane regulations for each covered facility in

a state.” EPA Resp.25–26 (emphasis added). But States have the statutory right

under Section 111(d) to set “bespoke” standards of performance, including to modify

appropriately the emissions-reduction amount set by EPA as “to any particular

source,” after “tak[ing] into consideration, among other factors, the remaining useful

life of the existing source,” 42 U.S.C. § 7411(d) (emphasis added). EPA does not

dispute that the two-year deadline that the Rule provides is not enough time for many

States to gather such an “inventory”—let alone to design a state plan tailored to the

States’ diverse oil and gas facilities—an omission that functions as a concession that

the Rule does not give States enough time to exercise the full scope of their Section

111(d) statutory authority. See generally EPA Resp.24–29.1 So, while the Rule does

EPA asserts that the Rule’s emission guidelines for existing sources cover only

methane, and not also volatile organic compounds (“VOC”)—a fact that, EPA claims, has

“obvious bearing on the achievability of the two-year deadline.” EPA Resp.24. But because

1

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not require every State to conduct an inventory of the numerous newly regulated oil

and gas facilities, States failing to carry out this task cannot fully and freely exercise

their statutory obligations under Section 111(d), including by considering how any

standards impact each existing facility’s remaining useful life. States Appl.21–22.

EPA prefers that the States just acquiesce to its one-size fits all approach, but Section

111(d) affords the States the right to make a contrary choice.2

EPA next argues that the Rule’s preamble discussed “in detail a range of

additional factors” that may make the development of state plans under Section

111(d) time-consuming. EPA Resp.28 (citing App.191a.). The preamble does not

“grapple with [State-Applicants’] concern.” Ohio, 144 S. Ct. at 2056 (citation omitted).

Rather, it only generally references the time-consuming nature of “the requisite

analysis,” App.191a, without addressing the specific problem that State-Applicants

present here: The Rule requires many States to regulate under Section 111(d), for the

first time, hundreds of thousands of diverse oil and gas facilities, and two years is an

covered facilities emit methane and VOCs in the same way, these facilities would adopt the

same measures to “simultaneously reduce both methane and VOC emissions.” See 81 Fed.

Reg. 35,824, 35,841 (June 3, 2016). Thus, that this aspect of the Rule covers only methane

has no “bearing on the achievability of the two-year deadline.” Contra EPA Resp.24.

While the State Respondent-Intervenors assert that “some of the state officials

charged with submitting applicants’ own plans agreed during the comment period that a twoyear deadline would be adequate,” see State Resp.19 & n.9, they do not (and cannot) point to

anything that actually supports that assertion. The only comment submitted to EPA during

the rulemaking that State Respondent-Intervenors cite stated that 24 months might be

adequate for States to adopt Section 111(d) plans that followed federal standards—such as

the Rule’s “presumptive standards” here—but expressly emphasized that this would not be

sufficient for States to develop their own standards of performance under Section 111(d). See

State Resp.19 & n9; contra 24 EPA-HQ-OAR-2021-0317-2330, Comment by Kentucky

Division for Air Quality, at 2, EPA-HQ-OAR-2021-0317-2330 (Feb. 13, 2023). That is the

same point that State-Applicants make here.

2

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insufficient amount of time for States to exercise their independent Section 111(d)

authority. States Appl.22–23. Indeed, the Rule’s preamble cuts against EPA. While

the preamble admits that States need more time to exercise fully their Section 111(d)

rights, it then sacrifices that state-sovereignty concern to regulatory expediency.

App.191a. The preamble “recognizes that states need time to follow their statespecific processes and laws”—consistent with the States’ authority under Section

111(d)—but then concludes that “[e]xtending the state plan submittal deadline

beyond 24 months to account for any and all unique state procedures would

inappropriately delay reductions in emissions.” App.191a. This strongly supports

State-Applicants’ argument that EPA did not give States sufficient time to perform

their statutory functions as it sought to advance its own policy objectives, States

Appl.1–2, 8, 22–25, after having delayed in issuing the Rule for a decade,

State Appl.12–13.

EPA’s invocation of American Lung Association v. EPA, 985 F.3d 914 (D.C. Cir.

2021)—the decision that this Court reversed in West Virginia, 597 U.S. 697—to argue

that “D.C. Circuit precedent” confirms that EPA has a “duty to ensure expeditious

implementation and safeguard the public,” gets the agency nowhere. EPA Resp.28.

To the extent that the cited portion of American Lung remains good law, it establishes

only that expeditious implementation is “an important aspect of the problem” that

EPA must consider and address. See 985 F.3d at 994–95. This policy aim cannot

override the States’ statutory rights, as expressed in Section 111(d).

Virginia, 597 U.S. at 723; id. at 736 (Gorsuch, J., concurring).

- 11 -

See West

Finally, EPA claims that if a State “miss[es] the state-plan submission

deadline,” the Rule “neither produces any immediate regulatory effect nor forecloses

the State from adopting its own standards” because the State could simply submit a

plan later. EPA Resp.28–29 (citing 40 C.F.R. § 60.27a(c)(1)); see also EPA Resp.6

(citing 88 Fed. Reg. 80,480, 80,495 (Nov. 17, 2023)). But EPA’s own regulations

confirm that failing to submit a plan “within the time prescribed” requires EPA to

promulgate a federal plan, 40 C.F.R. § 60.27a(c)(1), and nothing in those regulations

requires EPA to act on a later-submitted state plan. Instead, “the act of a state

submitting a plan alone does not abrogate the EPA’s authority or obligatory timeline

to promulgate a Federal plan,” and “EPA is not obligated to act on a late state plan

prior to promulgating a Federal plan.” 88 Fed. Reg. at 80,495. Further, once EPA

has imposed a federal plan upon a State’s existing facilities, the sources within that

State would then need to make irrevocable changes to their equipment and operations

to comply with the federal plan, meaning that the damage of EPA infringing upon

the States’ sovereign rights under Section 111(d) would be essentially irreversible,

even if a State were to later submit a tardy plan that EPA eventually approved.

II.

State-Applicants Will Suffer Irreparable Harm If This Court Does Not

Grant A Stay

A. State-Applicants have also shown that they will suffer irreparable harm

absent a stay. States Appl.25–30. The Rule’s “presumptive standards” and two-year

deadline for Section 111(d) plans impose significant, irreparable harm to StateApplicants’ sovereign interests, forcing them to expend unrecoverable resources to

submit Section 111(d) plans that they otherwise would not have developed. States

- 12 -

Appl.26–27. Faced with an unrealistic two-year deadline, State-Applicants must

either adopt EPA’s “presumptive standards” wholesale or quickly spend significant,

unrecoverable resources to develop modified versions of those “presumptive

standards.” States Appl.27–28; see States Appl.28–30. This undermines the States’

statutory right to adopt their own standards, based upon their knowledge of the

existing sources within their borders. States Appl.27–29. Further, States’ significant

expenditure of resources will be wasted once State-Applicants prevail in this

litigation, as EPA will have to allow States to adopt new Section 111(d) plans on a

realistic schedule, while allowing States to exercise their rights to adopt their own

standards of performance for the sources under the Rule’s purview. States Appl.27.

B. EPA’s various responses miss the mark.

First, EPA argues that States conducting the “state planning process” under

Section 111(d) to comply with the Rule cannot itself serve as a “harm to be avoided.”

EPA Resp.49. State-Applicants do not claim that any state-planning process harms

them, but rather that the Rule’s mandate to use the “presumptive standards” within

an unrealistic, two-year deadline harms the States by preventing them from

exercising their statutory right to develop their own “standards of performance for

any existing source for any air pollutant.” 42 U.S.C. § 7411(d)(1); States Appl.26.

While EPA disputes that the Rule requires States to adopt the “presumptive

standards” and deters the States from developing their own Section 111(d) plans,

EPA Resp.49–50, that is just a repeat of the agency’s erroneous arguments on the

merits, see supra Part I.

- 13 -

Second, EPA claims that a State “may simply refrain” from drafting a Section

111(d) plan to comply with the Rule or submit an untimely plan, so as to avoid

suffering any harm now. EPA Resp.49–50. This would not avoid State-Applicants’

harm, but asks States to surrender to federal regulation and the very “presumptive

standards” that they seek to avoid, as explained above. See supra p.12.

Third, EPA claims that State-Applicants “misunderstand[ ]” “what is actually

required to develop a state plan,” EPA Resp.50, asserting that State-Applicants’

alleged harms arise largely from implementing a plan after EPA has approved it,

rather than developing a plan to submit for EPA’s review. This too is wrong. As

State-Applicants explained above—and as EPA itself concedes, EPA Resp.25—the

Rule requires States to regulate hundreds of thousands of oil and gas facilities for the

first time, and to do so in the face of EPA’s “presumptive standards” and within a

truncated two-year deadline, supra pp.9–10.

State-Applicants have shown that

developing such plans will require substantial state resources to complete. States

Appl.28–30.

For example, developing a state plan requires going through state

rulemaking processes. States Appl.28–29 (citing App.441a–42a; App.451a–52a;

App.458a; App.463a; App.474a; App.482a; App.534a; App.544a–45a; App.563a–64a;

App.575a–76a; App.587a–88a).

Devising a state plan will also often involve an

inventory of all designated facilities (and, indeed, must include such an inventory to

develop and justify an alternative to the “presumptive standards”); of all attendant

performance standards; and of all compliance schedules (which must be made public

for a reasonable period of time) to ensure proper stakeholder engagement and public

- 14 -

comment.

See App.563a–64a; see also App.423a–25a; App.458a.

And State-

Applicants showed that they would need to hire and train hundreds of in-demand

workers to assist with developing a plan and then implementing it. States Appl.29–

30 (citing App. 472a; App.532a–33a; App.572a). Moreover, EPA cannot fault StateApplicants for having difficulty implementing Section 111(d) programs in line with

the Rule because EPA has failed to respond to States’ requests for implementation

guidance. App.618a (noting EPA’s failure to respond to Virginia’s inquiries).

Finally, EPA claims that State-Applicants will not suffer irreparable harm

because, even if they expend significant resources developing Section 111(d) plans

within the Rule’s two-year deadline and subsequently prevail in their challenge to

that deadline, “none” of State-Applicants’ “plan-development efforts will be wasted”

because they may apply these “efforts to submit compliant plans by whatever

alternative deadline is ultimately imposed.”

EPA Resp.50–51.

But the State-

Applicants’ declarations—which declarations neither EPA nor any of its supporting

parties has contested—explain that State-Applicants will not use those Section 111(d)

plans if they prevail here. Such plans, hurriedly developed under the two-year

timeline and within the context of EPA’s “presumptive standards,” would not be

sufficiently “tailored to the unique needs” of each State, App.614a, or “wellcalibrated” to “state rules that take [remaining useful life] into consideration,”

App.607a; see also App.591a; App.598a–99a; App.604a–07a; App.611a–13a;

App.618a–19a. So, State-Applicants have shown that their plan-development efforts

- 15 -

will be wasted and that they will re-do this resource-intensive work differently after

they prevail on the merits.

III.

Leaving The Rule In Place Is Contrary To The Public Interest

A. Considerations of the public interest also strongly favor a stay.

States Appl.30–33. To begin, the unlawful Section 111(d) component of the Rule

harms the public’s interest in the Clean Air Act’s cooperative-federalism regime—

including as embodied in Section 111(d)—by allowing States only enough time to

accept EPA’s “presumptive standards” or some modified version of such standards,

thereby limiting the States’ authority to adopt their own standards of performance

under Section 111(d) that account for their own unique state concerns.

States

Appl.31. Further, the Rule’s burdensome “presumptive standards” also harm the

public by imposing costs on the oil and gas industries that, as EPA concedes, will

ultimately be borne by consumers. States Appl.31–32. EPA, for its part, will not

suffer cognizable harm from a stay during the pendency of this case. EPA shares the

public’s interest in requiring it to “comply with its statutory mandate,” Sierra Club

v. Morton, 405 U.S. 727, 737 (1972), and EPA has delayed in regulating methane for

a decade, demonstrating that timing is not critical to achieving its ends,

States Appl.33.

B. EPA asserts that “[a]ny [ ] postponement” of the emission guidelines “would

cause significant harm to the government and the public,” because “[c]limate change

is the Nation’s most pressing environmental challenge” and “human-caused

emissions of methane . . . are responsible for ‘one-third of the [global] warming’ that

is attributable to greenhouse gases.” EPA Resp.51 (citation omitted; brackets in

- 16 -

original). EPA’s sudden urgency comes after years of delay. EPA determined that

methane and five other gases contribute to climate change in 2009, 74 Fed. Reg.

66,496, 66,497 (Dec. 15, 2009), and by 2013, the Obama Administration called on EPA

to “[c]urb[ ] emissions of methane” by “work[ing] collaboratively with state

governments,” Exec. Off. of the President, The President’s Climate Action Plan 10–11

(June 2013).3

Now, in 2024, EPA claims that the Rule must go into effect

immediately, lest a parade of horribles occur. See EPA Resp.51 (“sea level rise,”

“increased ‘storm surge and flooding,’” more frequent “‘drought’ and ‘extreme rainfall

events,’” “more intense and larger wildfires”). And, in any event, nowhere does EPA

show how the Rule itself will prevent these concerns during the pendency of StateApplicants’ challenges to the Rule here. EPA Resp.51–52.

EPA’s assertion that “[a] stay could also harm oil-and-gas-industry

participants” by “delay[ing] the availability of exemptions from methane charges

under 42 U.S.C. 7436,” EPA Resp.52, fails to weigh these charges against the

substantial costs that the Rule would impose on the oil-and-gas industry. Those

“charge[s]”—fines imposed on facilities with “methane emissions that exceed a[ ] . . .

[statutorily-defined] threshold,” 42 U.S.C. § 7436(c)—can only be waived after EPA

determines

that

the

offending

facility

achieves

the

emissions

reductions

contemplated by 42 U.S.C. § 7436(f)—so any fee waiver is speculative. Further, as

Industry-Applicants point out, they “have invested, planned, and developed their

3 Available at https://obamawhitehouse.archives.gov/sites/default/files/image/

president27sclimateactionplan.pdf (all websites last visited Sept. 24, 2024).

- 17 -

operations based on the longstanding application of State regulations” “[f]or decades.”

Appl. For Stay at 33–34, Cont’l Res., Inc. v. EPA, No.24A215 (Aug. 26, 2024). But the

Rule’s “erasing [of] States from the picture” caused them to “begin the time

consuming and costly process of adjusting their existing operations to comply with

the Final Rule’s presumptive standards,” which “substantially impairs Industry

Applicants’ funding and . . . is already affecting [their] day-to-day operations.” Id. at

33. These costs will lead to higher prices for consumers (as EPA admits) and, when

coupled with the anticipated baseline price increase stemming from the Rule, will

significantly impair access to essential utilities for Americans grappling with

financial hardship. Contra Env’t & Health Resp’ts Resp.37. And EPA’s concern over

assessing fees against oil and gas facilities should be weighed against the Rule’s

immense costs to oil and gas production, which is why no oil or gas facility is

supporting EPA here. See EPA, Response to Public Comments on the November 2021

Proposed Rule and the December 2022 Supplemental Proposed Rule, at I-20-63,

No.EPA-HQ-OAR-2021-0317-4009 (Nov. 2023); App.604a–06a (discussing “economic

and social damage” caused by the Rule); App.591a; App.597a–99a.

EPA and its supporting parties briefly make a series of other equitable

arguments about the timing of State-Applicants’ application, all of which fail. Each

wrongly claims that State-Applicants have sought “emergency relief.”

See EPA

Resp.3, 18, 29, 47–49; State Resp’t-Intervenor’s Resp.10; Env’t & Health Resp’ts

Resp.10, 31. But State-Applicants are not seeking stay relief on an emergency basis,

but rather standard stay relief against a Rule that imposes irreparable harms upon

- 18 -

them. See States Appl.14. In any event, the timing here is unremarkable. Compare

Order, In re: Clean Water Act Rulemaking, Nos.21-16958, 21-16960, 21-16961 (9th

Cir. Feb. 24, 2022) (denying applicants’ Motion For Stay Pending Appeal), with Appl.

For Stay, Louisiana v. Am. Rivers, No.21A539 (filing stay application on March 21,

2022); see Louisiana v. Am. Rivers, 142 S. Ct. 1347 (2022) (granting the stay). Some

of EPA’s supporters also bizarrely point to the allegedly “protracted briefing schedule”

in the D.C. Circuit below, Env’t & Health Resp’ts Resp.31, without revealing to this

Court that the parties in the D.C. Circuit agreed to that schedule after mutual

negotiation, including to accommodate the schedules that States, private parties, and

the Department of Justice were juggling (including as to multiple other stay

applications before this Court).

Finally, EPA argues that “this Court should limit any stay relief to the specific

portions of the Rule that applicants have contested.”

EPA Resp.52–53.

State-

Applicants have already tailored their requested stay to the Section 111(d) component

of the Rule, see, e.g., States Appl.1, which is the specific portion of the Rule harming

State-Applicants here. Thus, State-Applicants’ requested relief would “be no more

burdensome to the defendant than necessary to provide complete relief to the

plaintiffs.” Califano v. Yamasaki, 442 U.S. 682, 702 (1979).

- 19 -

CONCLUSION

This Court should stay the Section 111(d) component of the Rule pending

resolution of State-Applicants’ petition for review.

Respectfully submitted,

GENTNER DRUMMOND

Attorney General

GARRY M. GASKINS, II

Solicitor General

JENNIFER L. LEWIS

Deputy Attorney General

OFFICE OF THE ATTORNEY

GENERAL OF OKLAHOMA

313 NE Twenty-First St.

Oklahoma City, OK 73105

CARROLL WADE MCGUFFEY III

TROUTMAN PEPPER

HAMILTON SANDERS LLP

600 Peachtree St. N.E., Suite 3000

Atlanta, GA 30308

September 2024

/s/ Misha Tseytlin

MISHA TSEYTLIN

Counsel of Record

KEVIN M. LEROY

KAITLIN L. O’DONNELL

EMILY A. O’BRIEN

DYLAN DEWITT

TROUTMAN PEPPER

HAMILTON SANDERS LLP

227 W. Monroe, Suite 3900

Chicago, Illinois 60606

(608) 999-1240

misha.tseytlin@troutman.com

JEFF P. JOHNSON

CARLY ROTHMAN SIDITSKY

TROUTMAN PEPPER

HAMILTON SANDERS LLP

1001 Haxall Point, Suite 1500

Richmond, VA 23219

Counsel for the State of Oklahoma

- 20 -

STEVE MARSHALL

Attorney General

TIM GRIFFIN

Attorney General

EDMUND G. LACOUR JR.

Solicitor General

OFFICE OF THE ATTORNEY GENERAL OF

ALABAMA

501 Washington Avenue

P.O. Box 300152

Montgomery, Alabama 36130-0152

NICHOLAS J. BRONNI

Solicitor General

Counsel for the State of Alabama

DYLAN JACOBS

Deputy Solicitor General

OFFICE OF THE ARKANSAS ATTORNEY

GENERAL

323 Center Street, Suite 200

Little Rock, AR 72201

Counsel for the State of Arkansas

TREG TAYLOR

Attorney General

ASHLEY MOODY

Attorney General

GARRISON TODD

Assistant Attorney General

ALASKA DEPARTMENT OF LAW

1031 W. 4th Ave., Ste. 200

Anchorage, AK 99501

HENRY C. WHITAKER

Solicitor General

Counsel for State of Alaska

JAMES H. PERCIVAL

Chief of Staff

OFFICE OF THE ATTORNEY GENERAL OF

FLORIDA

The Capitol, Pl-01

Tallahassee, Florida 32399-1050

Counsel for the State of Florida

CHRISTOPHER M. CARR

Attorney General

BRENNA BIRD

Attorney General

STEPHEN J. PETRANY

Solicitor General

OFFICE OF THE ATTORNEY GENERAL OF

GEORGIA

40 Capitol Square, SW

Atlanta, GA 30334

ERIC H. WESSAN

Solicitor General

OFFICE OF THE ATTORNEY GENERAL

OF IOWA

1305 E. Walnut Street

Des Moines, IA 50319

Counsel for the State of Georgia

Counsel for the State of Iowa

- 21 -

RAÚL R. LABRADOR

Attorney General

THEODORE E. ROKITA

Attorney General

JOSHUA N. TURNER

Chief of Constitutional Litigation and

Policy

JAMES A. BARTA

Solicitor General

OFFICE OF THE ATTORNEY GENERAL OF

INDIANA

302 W. WASHINGTON ST.

Indianapolis, IN 46204

ALAN M. HURST

Solicitor General

OFFICE OF THE IDAHO ATTORNEY

GENERAL

P.O. Box 83720

Boise, Idaho 83720

Counsel for State of Indiana

Counsel for the State of Idaho

RUSSELL COLEMAN

Attorney General

KRIS KOBACH

Attorney General

MATTHEW F. KUHN

Solicitor General

OFFICE OF THE KENTUCKY ATTORNEY

GENERAL

700 Capital Avenue, Suite 118

Frankfort, KY 40601

ANTHONY J. POWELL

Solicitor General

KANSAS ATTORNEY GENERAL’S OFFICE

120 SW 10th Avenue, 2nd Floor

Topeka, Kansas 66612-1597

Counsel for the Commonwealth of

Kentucky

Counsel for the State of Kansas

LIZ MURRILL

Attorney General

ANDREW BAILEY

Attorney General

J. BENJAMIN AGUIÑAGA

Solicitor General

LOUISIANA DEPARTMENT OF JUSTICE

1885 N. Third Street

Baton Rouge, LA 70804

JOSHUA M. DIVINE

Solicitor General

Counsel for the State of Louisiana

SAMUEL C. FREEDLUND

Deputy Solicitor General

MISSOURI ATTORNEY GENERAL’S OFFICE

207 West High St.

Jefferson City, MO 65101

Counsel for State of Missouri

- 22 -

LYNN FITCH

Attorney General

AUSTIN KNUDSEN

Attorney General

JUSTIN L. MATHENY

Deputy Solicitor General

OFFICE OF THE MISSISSIPPI ATTORNEY

GENERAL

P.O. Box 220

Jackson, MS 39205-0220

CHRISTIAN B. CORRIGAN

Solicitor General

MONTANA DEPARTMENT OF JUSTICE

215 North Sanders P.O. Box 201401

Helena, MT 59620-1401

Counsel for State of Mississippi

Counsel for the State of Montana

DREW H. WRIGLEY

Attorney General

MICHAEL T. HILGERS

Attorney General

PHILIP AXT

Solicitor General

OFFICE OF ATTORNEY GENERAL OF

NORTH DAKOTA

600 E. Boulevard Ave., Dept. 125

Bismarck, ND 58505

ERIC J. HAMILTON

Solicitor General

NEBRASKA DEPARTMENT OF JUSTICE

2115 State Capitol

Lincoln, Nebraska 68509

Counsel for State of North Dakota

Counsel for the State of Nebraska

DAVID YOST

Attorney General

ALAN WILSON

Attorney General

T. ELLIOT GAISER

Solicitor General

ROBERT D. COOK

Solicitor General

MATHURA J. SRIDHARAN

Deputy Solicitor General

OHIO ATTORNEY GENERAL’S OFFICE

30 E. Broad Street

Columbus, OH 43215

J. EMORY SMITH, JR.

Deputy Solicitor General

Counsel for the State of Ohio

JOSEPH D. SPATE

Assistant Deputy Solicitor General

OFFICE OF THE ATTORNEY GENERAL OF

SOUTH CAROLINA

1000 Assembly Street

Columbia, SC 29201

Counsel for the State of South Carolina

- 23 -

JASON MIYARES

Attorney General

SEAN D. REYES

Attorney General

KEVIN M. GALLAGHER

Principal Deputy Solicitor General

VIRGINIA ATTORNEY GENERAL’S OFFICE

202 North 9th Street

Richmond, VA 23219

STANFORD E. PURSER

Solicitor General

UTAH ATTORNEY GENERAL’S OFFICE

160 East 300 South, 5th Floor

Salt Lake City, UT 84114

Counsel for the Commonwealth of

Virginia

Counsel for the State of Utah

BRIDGET HILL

Attorney General

PATRICK MORRISEY

Attorney General

D. DAVID DEWALD

Deputy Attorney General

OFFICE OF THE ATTORNEY GENERAL OF

WYOMING

109 State Capitol

Cheyenne, WY 82002

MICHAEL R. WILLIAMS

Solicitor General

OFFICE OF THE ATTORNEY GENERAL OF

WEST VIRGINIA

State Capitol Complex

Building 1, Room E-26

Charleston, WV 25301

Counsel for the State of Wyoming

Counsel for the State of West Virginia

WARREN PETERSEN

President Of The Arizona

State Senate

BEN TOMA

Speaker Of The Arizona

House Of Representatives

By Counsel:

BRUNN (BEAU) W. ROYSDEN III

FUSION LAW, PLLC

7600 N. 15th St., Suite 150

Phoenix, Arizona 85020

By Counsel:

BRUNN (BEAU) W. ROYSDEN III

FUSION LAW, PLLC

7600 N. 15th St., Suite 150

Phoenix, Arizona 85020

Counsel for President of the

Arizona State Senate Warren

Petersen

Counsel for Speaker of the Arizona

House of Representatives Ben Toma

- 24 -

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.

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