# Record and brief — Energy-Intensive Mfrs. Working Grp. On Greenhouse Gas Regulation v. Envtl. Prot. Agency

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URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385015_0897%3A0

## Record

- **Collection:** Supreme Court brief
- **Document type:** Record and brief
- **Published:** January 1, 2013
- **Citation:** 571 U.S. 951

## Text

& “-

Pa
f Ws SUPREME COURT
‘igre? OF THE UNITED STATES

No. 12-1254

Vide 12-1146, 12-

1248, 12-1268,

12-1269, 12-1272

Title: Energy-intensive Manufacturers Working Group on Greenhouse Gas
Regulation, et al., Petitioners
V
Environmental Protection Agency, et al.

Docketed: April 19, 2013

Linked with 12A879

Lower Ct United States Court of Appeals for the District of Columbia Circuit

Case Nos.: (10-1073, et al.)
Decision Date: June 26, 2012

Rehearing
Denied: December 20, 2012
Questions
Presented
~~~Date~~~ ~~~~~~~Proceedings and Orders~~~

Mar 8 2013 Application (12A879) to extend the time to file a petition for a wnt of certioran
from March 20, 2013 to April 19, 2013, submitted to The Chief Justice.

Mar 11 2013 Application (12A879) granted by The Chief Justice extending the time to file
until April 19, 2013.

Apr 17 2013 Petition for a writ of certioran filed. (Response due May 20, 2013)

May 8 2013 Consent to the filing of amicus curiae briefs, in support of either party or of
neither party, received from counsel for Texas, and eight other states.

May 13 2013 Consent to the filing of amicus cuirae briefs, in support of either party or of
neither party, received from counsel for petitioners Southeastem Legal
Foundation, Inc., et al.

May 14 2013 Consent to the filing of amicus curiae briefs, in support of either party or of
neither party, received from counsel for the Federal Respondent.

May 15 2013 Order extending time to file response to petition to and including June 21.
2013, for all respondents.

May 17 2013 Consent to the filing of amicus curiae briefs, in support of either party or of
neither party, received from counsel! for the State of Indiana.

Jun § 2013 Order further extending time to file response to petition to and including July
22, 2013, for all respondents.

Jun 7 2013 Application (12A1181) to file consolidated brief in opposition in excess of word
limits, submitted to The Chief Justice.

Jun 7 2013 Application (12A1181) to file consolidated brief in opposition in excess of word

Jul 12013

Jul 8 2013

Jul 22 2013

Jul 22 2013
Jul 22 2013
Aug 6 2013

Aug 7 2013
Oct 7 2013
Oct 15 2013

Oct 22 2013
Oct 24 2013

Oct 29 2013

Nov 1 2013

Nov 1 2013

Nov 1 2013

Nov 1 2013

Nov 7 2013

Nov 8 2013

Nov 8 2013

limits granted by The Chief Justice. The consolidated brief in opposition may
not exceed 12,000 words.

Application (13A35) to file consolidated bnef in opposition in excess of word
limits, submitted to The Chief Justice.

Application (13A35) to file consolidated bnef in opposition in excess of word
limits granted by The Chief Justice. The consolidated brief in opposition may
not exceed 11,000 words.

Brief of respondents Environmental Protection Agency, et al. in opposition filed.
VIDED.

Brief of Environmental Organization respondents in opposition filed. VIDED.
Bnef of respondents New York, et al. in opposition filed. VIDED

Reply of petitioners Energy-intensive Manufacturers Working Group on
Greenhouse Gas Regulation, et al. filed.

DISTRIBUTED for Conference of September 30, 2013
DISTRIBUTED for Conference of October 11, 2013.

Petition GRANTED limited to the following Question: Whether EPA permissibly
determined that its regulation of greenhouse gas emissions from new motor
vehicles triggered permitting requirements under the Clean Air Act for
Stationary sources that emit greenhouse gases. The cases are consolidated
and a total of one hour is allotted for oral argument. VIDED.

Briefing proposal of the parties. VIDED

Letter from Coalition for Responsible Regulation, |nc., et al. regarding briefing
proposal. VIDED.

Upon consideration of the letter of October 22, 2013, from counsel for
petitioners in No. 12-1248 on behalf of the parties, the briefing proposal set out
in the letter is adopted with the exception that the bnefs of petitioners shall not
exceed 45,000 words in aggregate. The briefs of respondents in support of
petitioners shall not exceed 6,000 words each. The bref of the Solicitor
General shall not exceed 15,000 words. The briefs of other respondents shall
not exceed 10,000 words each. Reply briefs shall not exceed 18.000 words in

aggregate. VIDED

Consent from petitioner Utility Air Regulatory Group to the filing of amicus
curiae briefs in support of either party or neither party. VIDED.

The time to file joint appendix, petitioners’ bnefs on the ments, and briefs of
respondents in support of petitioners is extended to and including December 9,
2013. VIDED

The time to file respondents’ briefs on the merits is extended to and including
January 21, 2014. VIDED

Consent to the filing of amicus curiae briefs, in support of either party or of
neither party, received from counsel for the United States Federal
Environmental Protection Agency, et al. VIDED.

Consent to the filing of amicus curiae bnefs, in support of either party or of
neither party, received from counsel for Texas, et al. VIDED.

Consent to the filing of amicus curiae briefs, in support of either party or of
neither party, received from counsel for Southeastern Legal Foundation, Inc., et
al. VIDED.

Consent to the filing of amicus curiae briefs, in support of either party or of
neither party, received from counsel for Coalition for Responsible Regulation,

Inc., et al. VIDED.

Nov 12 2013 Consent to the filing of amicus curiae briefs, in support of either party or of
neither party received from counsel for American Chemistry Council, et al.
VIDED.

Nov 12 2013 Consent to the filing of amicus curiae briefs, in support of either party or of
neither party, received from counsel for New York, California et al. VIDED.

Nov 12 2013 Consent to the filing of amicus curiae briefs, in support of either party or of
neither party, received from counsel for Environmental Organizations, Center
for Biological diversity, et al. VIDED.

Nov 19 2013 Consent to the filing of amicus curiae briefs, in support of either party or of
neither party, received from counsel! for Energy-intensive Manufacturers
Working Group on Greenhouse Gas Regulation, et al. VIDED.

Nov 21 2013 Consent to the filing of amicus curiae briefs, in support of either party or of
neither party, received from counsel for The Chamber of Commerce of the
United States of America, et al. VIDED.

Nov 25 2013 SET FOR ARGUMENT ON Monday, February 24, 2013

Dec 92013 Consent to the filing of micus curiae briefs, in support of either party, or of
neither party, received from counsel for the National Mining Association. VIDED

Dec 92013 Bnef of respondents Coalition for Responsible Regulation, Inc., et al. in support
of petitioners filed. VIDED.

Dec 92013 Brief of petitioners American Chemistry Council, et al. filed. VIDED.

Dec 92013 Brief of petitioners Chamber of Commerce of the United States of America, et
al. filed. VIDED.

Dec 92013 Bref of petitioners Southeastern Legal Foundation, Inc., et al. filed. VIDED

Dec 92013 Brief of petitioner Energy-Intensive Manufacturers Working Group on
Greenhouse Gas Regulation, et al. filed. VIDED.

Dec 92013 Brief of petitioners Texas, et al. filed. VIDED.

Dec 92013 Joint appendix filed (5 volumes). (Statement of costs filed.) VIDED.

Dec 92013 Bnef of petitioner Utility Air Regulatory Group filed. VIDED.

Dec 12 2013 Bnef amici curiae of Pacific Legal Foundation, et al. filed. VIDED.

Dec 13 2013 Record received from U.S.C.A. DC Circuit. The record is electronic.

Dec 16 2013 Brief amici curiae of States of Kansas, et al. filed. VIDED.

Dec 16 2013 Brief amicus curiae of Peabody Energy Corporation filed. VIDED.

Dec 16 2013 Brief amici curiae of Political Economists Henry N. Butler, et al. filed. VIDED.
Dec 16 2013 Brief amici curiae of Economists Thomas C. Schelling, et al. filed. VIDED
Dec 16 2013 Bnef amicus curiae of Committee for a Constructive Tomorrow filed. VIDED.
Dec 16 2013 Brief amicus curiae of American Civil Rights Union filed. VIDED.

Dec 16 2013 Brief amici curiae of Texas Oil & Gas Association, et al. filed. VIDED.

Dec 16 2013 Brief amicus curiae of Senator Mitch McConnell and Other Members of the
United States Congress filed. VIDED.

Dec 16 2013 Brief amicus curiae of Mountain States Legal Foundation filed. VIDED.
Dec 16 2013 Bnef amici curiae of Five U.S. Senators filed. VIDED.
Dec 16 2013 Brief amicus curiae of Center for Constitutional Jurisprudence filed. VIDED.

Dec 16 2013 Bnef amici curiae of State and Local Chambers of Commerce, and Other
Business Associations filed. VIDED.

Dec 16 2013 Brief amici curiae of Administrative Law Professors, et al. filed VIDED

(Distnbuted)

Dec 16 2013 Bnef amicus curiae of American Road & Transportation Builders Association in
support of neither party filed. VIDED. (Distributed)

Dec 16 2013 Brief amici curiae of Scientists and Economists filed. VIDED. (Distributed)

Dec 20 2013 CIRCULATED.

Jan 62014 Motion for divided argument and enlargement of time for oral argument filed by
petitioners. VIDED.

Jan 21 2014 Brief of respondent Environmental Protection Agency filed. VIDED.
(Distributed)

Jan 21 2014 Brief of respondents Environmental Organization respondents filed. VIDED.
(Distributed)

Jan 21 2014 Brief of respondents New York, et al. filed. VIDED. (Distributed)

Jan 27 2014 Motion for divided argument filed by petitioners GRANTED. and the time is
divided as follows: 30 minutes for private party petitioners, 15 minutes for state
petitioners, and 45 minutes for respondents.

Jan 27 2014 Brief amici curiae of South Coast Air Quality Management District, et al. filed.
VIDED. (Distributed)

Jan 27 2014 Brief amicus curiae of Institute for Policy Integrity at New York University
School of Law filed. VIDED. (Distributed)

Jan 28 2014 Brief amicus curiae of Calpine Corporation filed. VIDED. (Distributed)

Jan 28 2014 Brief amicus curiae of American Thoracic Society filed. VIDED. (Distributed)

Jan 28 2014 Brief amicus curiae of Constitutional Accountability Center filed. VIDED.
(Distributed)

Feb 13 2014 Reply of respondents Coalition for Responsible Regulation, Inc., et al. in
support of petitioners filed. VIDED. (Distributed)

Feb 14 2014 Reply of petitioners in Nos. 12-1248, 12-1254, 12-1268, and 2-1272 filed.
VIDED. (Distributed)

Feb 14 2014 Reply of petitioners Texas, et al. filed. VIDED. (Distributed)

Feb 14 2014 Reply of petitioner Utility Air Regulatory Group filed. VIDED. (Distributed)

Feb 24 2014 Argued. For private petitioners: Peter Keisler, Washington, D. C. For state
petitioners: Jonathan F. Mitchell, Solicitor General, Austin, Tex. For
respondents: Donald B. Vermilli, Jr., Solicitor General, Department of Justice,
Washington, D. C.

PETITION

FOR
WRIT OF

CERTIORARI

13.1254

3n The
Supreme Court of the United States

¢

THE ENERGY-INTENSIVE MANUFACTURERS
WORKING GROUP ON GREENHOUSE
GAS REGULATION, ET AL.,

Petitioners,
v.

ENVIRONMENTAL PROTECTION AGENCY, ET AL.,
Respondents.

SJ

On Petition For Writ Of Certiorari
To The United States Court Of Appeals
For The District Of Columbia

¢

PETITION FOR A WRIT OF CERTIORARI

+

RONALD TENPAS JOHN J. MCMACKIN, JR.
MORGAN LEWIS & BOCKIUS WILLIAMS & JENSEN, PLLC
1111 Pennsylvania Ave., NW 701 8th Street, NW, Suite 500

Washington, DC 20004 Washington, DC 20001

(202) 739-5435 (202) 659-8201
jjmcmackin@wms-jen.com
Counsel of Record

Counsel for Petitioners

April 17, 2013

——. $e
= ————_—_——_- —-

il

COCKLE LAW BRIEF PRINTING CO. (800) 225-6964
OR CALL COLLECT (402) 342-2831

QUESTIONS PRESENTED

In the course of a series of regulatory actions
taken by the Environmental Protection Agency subse-
quent to Massachusetts v. EPA, 549 U.S. 497 (2007),
the Agency decided that a particular Clean Air Act
program regulating “stationary sources,” the Preven-
tion of Significant Deterioration (PSD) program, must
apply to greenhouse gases, as a matter of a Chevron
“step-one” mandate, once the Agency regulated
“mobile-source” greenhouse-gas emissions. The Agency
referred to this as the “automatic triggering” of PSD
greenhouse-gas regulation. In the EPA’s view, the
matter turned on the meaning of the term “any air
pollutant” in the PSD provisions governing those
emitters required to seek permits, i.e., any “major
emitting facility.” 42 U.S.C. §§ 7475(a), 7479(1) (2013).
By longstanding regulations, the Agency had defined
“any air pollutant” to include any air pollutant “sub-
ject to regulation” under any other part of the Act —
hence the “automatic triggering” once mobile sources
were regulated. As part of a consolidated judgment
addressing multiple challenges to the various Agency
actions involved, a panel of the United States Court
of Appeals for the D.C. Circuit upheld EPA’s action.
The questions presented are:

1. Whether the Court of Appeals erred in determin-
ing that regulating stationary-source greenhouse-gas
emissions under the Clean Air Act’s Prevention of
Significant Deterioration program, and an associated

‘i
QUESTIONS PRESENTED -— Continued

program known as “Title V,” is statutorily required
as a matter of a Chevron “step-one” legislative com-
mand.

2. Whether, in determining that the Clean Air Act
unambiguously requires application of the PSD
program to greenhouse gases, the Court of Appeals
and the EPA ignored required elements of statutory
construction in cases of this type by failing to exam-
ine whether the various statutory components of that
program were contradicted, nullified, or otherwise
contravened by application to greenhouse gases, and,
further, without considering whether alternative
mechanisms exist for regulating stationary-source
greenhouse-gas emissions under the Act that better
serve the statute’s dual concerns with the economy
and the environment.

3. Whether a claimant may be barred from assert-
ing a claim that applying the PSD program to green-
house gases is not authorized by the Act because the
claimant, or other large emitters of conventional
pollutants, did not assert that claim at the time EPA
promulgated decades-old regulations that involved
conventional pollutants only, when, first, the claim at
issue is uniquely and entirely limited to the applica-
tion of the statute to greenhouse gases, and, second,
the Agency, in any event, itself has modified the
regulations to reflect a unique greenhouse-gas-
specific definition of the key statutory term.

PARTIES TO THE PROCEEDING

Petitioners are the Energy-Intensive Manufac-
turers Working Group for Greenhouse Gas Regula-
tion (Energy-Intensive Manufacturers Group) and
the Glass Packaging Institute (GPI). The Energy-
Intensive Manufacturers Group was the sole petition-
er in the two principal cases below that are involved
in this petition (Nos. 10-1114 and 10-1206), and GPI
was a petitioner in related cases.

Respondents herein are the Environmental Pro-
tection Agency and Robert Perciasepe, Acting Admin-
istrator, Environmental Protection Agency.

The petitioners in related cases addressed by the
consolidated judgment below, which are not petitioners
herein, included the American Chemistry Council;
American Frozen Food Institute; American Fuel &
Petrochemical Manufacturers; American Petroleum
Institute; Brick Industry Association; the Clean Air
Implementation Project; Corn Refiners Association;
Glass Association of North America; Glass Packaging
Institute; Independent Petroleum Association of Amer-
ica; Michigan Manufacturers Association; Mississippi
Manufacturers Association; National Association of
Home Builders; The National Association of Manu-
facturers; National Oilseed Processors Association;
Specialty Steel Industry of North America; Tennessee
Chamber of Commerce and Industry; Western States
Petroleum Association; West Virginia Manufacturers
Association; Wisconsin Manufacturers and Com-
merce; Coalition for Responsible Regulation, Inc.;

iv
PARTIES TO THE PROCEEDING — Continued

Industrial Minerals Association — North America;
National Cattlemen’s Beef Association; Great North-
ern Project Development, L.P.; Rosebud Mining Co.;
Alpha Natural Resources, Inc.; Southeastern Legal
Foundation, Inc.; The Langdale Company; Langdale
Forest Products Company; Langdale Farms, LLC;
Langdale Fuel Company; Langdale Chevrolet-
Pontiac, Inc.; Langdale Ford Company; Langboard,
Inc. — MDF; Langboard, Inc. — OSB; Georgia Motor
Trucking Association, Inc.; Collins Industries, Inc.;
Collins Trucking Company, Inc.; Kennesaw Transpor-
tation, Inc.; J&M Tank Lines, Inc.; Southeast Trailer
Mart, Inc.; Georgia Agribusiness Council, Inc.; John
Linder, U.S. Representative, Georgia 7th District;
Dana Rohrabacher, U.S. Representative, California
46th District; John Shimkus, U.S. Representative,
Illinois 19th District; Phil Gingrey, U.S. Representa-
tive, Georgia 11th District; Lynn Westmoreland, U-S.
Representative, Georgia 3rd District; Tom Price, U.S.
Representative, Georgia 6th District; Paul Broun,
U.S. Representative, Georgia 10th District; Steve
King, U.S. Representative, Iowa 5th District; Nathan
Deal, U.S. Representative, Georgia 9th District; Jack
Kingston, U.S. Representative, Georgia lst District;
Michele Bachmann, U.S. Representative, Minnesota
6th District; Kevin Brady, U.S. Representative, Texas
8th District; John Shadegg, U.S. Representative,
Arizona 3rd District; Marsha Blackburn, U.S. Repre-
sentative, Tennessee 7th District; Dan Burton, U.S.
Representative, Indiana 5th District; Clean Air

v

PARTIES TO THE PROCEEDING -— Continued

Implementation Project; American Iron and Steel
Institute; Gerdeau Ameristeel US Inc.; Energy-
Intensive Manufacturers Working Group on Green-
house Gas Regulation; Peabody Energy Company;
American Farm Bureau Federation; National Mining
Association; Utility Air Regulatory Group; Chamber
of Commerce of the United States of America; Mis-
souri Joint Municipal Electric Utility Commission;
National Environmental Development Association’s
Clean Air Project; Ohio Coal Association; Indiana
Cast Metals Association; National Federation of
Independent Business; North American Die Casting
Association, State of Texas; State of Alabama; State of
South Carolina; State of South Dakota; State of
Nebraska; State of North Dakota; Commonwealth of
Virginia; Rick Perry, Governor of Texas; Greg Abbott,
Attorney General of Texas; Texas Commission on
Environmental Quality; Texas Agriculture Commis-
sion; Texas Public Utilities Commission; Texas Rail-
road Commission; Texas General Land Office; Haley
Barbour, Governor of the State of Mississippi;
Portland Cement Association; Georgia Coalition for
Sound Environmental Policy, Inc.; South Carolina
Public Service Authority; Mark R. Levin; Landmark
Legal Foundation; Competitive Enterprise Insti-
tute; FreedomWorks; the Science and Environmen-
tal Policy Project; Pacific Legal Foundation. The
respondents in related cases addressed by the
consolidated judgment below included the U.S.
Environmental Protection Agency (EPA) and Lisa P.

vi
PARTIES TO THE PROCEEDING — Continued

Jackson, Administrator, U.S. Environmental Protec-
tion Agency.

RULE 29.6 STATEMENT

Pursuant to the Court’s Rule 29.6, undersigned
counsel state that the petitioners have no parent
corporation and that no other publicly held corpora-
tion has ownership in them.

vill

TABLE OF CONTENTS

Page
QUESTIONS PRESENTED ...............0.............005. i
PARTIES TO THE PROCEEDING ...................... ill
RULE 29.6 STATEMENT ...................0... ccc eeeee eee vi
TABLE OF CONTENTS ............ccccscsccscsccscecescecees vii
TABLE OF AUTHORITIES .................0....0....0..... x
I I is cicliiniesonnininbdianianinaaiinmnedbiiesiondiin 1
i iacntahicenieiciiabaiiaibadiiaanenmaiiie 1

CONSTITUTIONAL AND STATUTORY PRO-
VISIONS INVOLVED..............ccccsccscsecccsccecsceeces 2
I ii nit ialaenarchiisiniiomigiabadntinnee 2
STATEMENT OF THE CASE......................2.0202055 10

REASONS FOR GRANTING THE PETITION.... 19

I. The Court of Appeals Has Decided a Mat-
ter of Extraordinary National Importance
that Should Be Decided — and Corrected
ET TE TE Rcnsccnniinnepiiciisatiiaimiiminbindeaoneniins 23

A. PSD-Program Carbon Regulation Is
One of the Most Extensive, Intrusive,
Unworkable and Potentially Damaging
Regulatory Regimes Ever Imposed ..... 23

B. The Interpretive Approach of the Agen-
cy and the Circuit Court Removes Poli-
cy Considerations and Judgment from
Vitally Important Policy Decisions Con-
cerning How to Regulate Carbon Diox-
ide and Other Greenhouse Gases........ 29

vill

TABLE OF CONTENTS — Continued

Page
C. The Court of Appeals Has Erected an
Erroneous “Timeliness” Bar in Cases of
This Type, Which Will Have the Effect
of Denying Claimants a Reasonable
Opportunity to Seek Judicial Review
of Allegedly Unauthorized Expansions
of the Scope of Regulatory Statutes,
Particularly Those Driven by Changes

in Science or Technology ..................... 30

II. The Decision of the Court of Appeals Con-
flicts with Important Decisions of This
ie cis niecatiaeitabalcslatcadeidabininanniahernah dada tale lias 31

A. This Case Represents a Fundamentally
Mistaken Approach to Statutory Inter-
pretation in Cases Regarding One of
Our Complex, Multi-Part Regulatory
Statutes Considered in Contexts Not
Contemplated by the Enacting Con-

I Nerisiscactiiiphiindhenid sib anicashaeienisialiagihenanpedainiasiciibaniaes 31

B. The Mistaken Approach to Statutory
Interpretation Is Inextricably Linked
to a Misreading of this Court’s Deci-
sion in Massachusetts v. EPA.............. 37

C. The Mistaken Approach Likewise
Involves Misunderstanding and Mis-
use of Important Doctrines in Admin-
istrative Law, Particularly Chevron,
“Implied Delegation” and “Absurd
IIIT cisiiniisareinisincninthioipiinaclyniainda 39

| _______EIO a Tere Tne a DEER OEE 41

ix
TABLE OF CONTENTS -— Continued

APPENDICES

The Opinion of the United States Court of
Appeals for the District of Columbia Circuit
III ices ninsiindiinnpenmnniunsenennnienal Pet. App. 1

Opinion of the United States Court of Appeals
for the District Court of Appeals (denial
of rehearing en banc) (December 20,
aided isla Ah icine cil eneeahiainnibicailiidapneieediane Pet. App. 102

Clean Air Act, 42 U.S.C. §§ 7401 et seq. ..... Pet. App. 162

x

TABLE OF AUTHORITIES
Page
CASES
Brown v. Gardner, 513 U.S. 115 (1994).............0000.... 31
Chevron, U.S.A, Inc. v. Natural Res. Def.
Council, 467 U.S. 837 (1984) ..................02.2205- passim

Coal. for Responsible Regulation, Inc. v. E.PA.,
No. 09-1322, 2012 WL 6621785 (D.C. Cir.

I TTT sii ccincsccedsistcetsnaniastiniastanialontaideemmaliinismnadeebialtnini 17
Crowell v. Bensen, 285 U.S. 22 (1932) ......... ccc 36
Food & Drug Admin. v. Brown & Williamson

Tobacco Corp., 529 U.S. 120 (2000)...... 31, 32, 33, 34
Gonzales v. Raich, 541 U.S. 1 (2005) ..................02..... 36
Massachusetts v. E.P-A., 549 U.S. 497 (2007) ..... passim
STATUTES
Oe rs Se PN OR ccnccicnnsceserintncnseneccssssonsens i, 17
ee Ss Pree CR eitcrsiccnccnedicisnsciniccneinsisisonosens 15
42 U.S.C. § T47TE(]K1) (2O1S)..............cccccccccscscccccsccccee 15
43 U.S.C. § T4THENSNb) (BOIS) ..........0..0...cccccoscccccceee 15
a: ae Se I iaciiechcnieiticintcnnticncencennnscasiesiniapiudiion i
| | 25, 28
ye Pe i ccsccinsisssinincnisnnsittinieniineiiniiasiads 39

SD BR, © Fe) Ge iene cescescstneniccssscsecstsnscsenseenes 17

xi
TABLE OF AUTHORITIES — Continued

FEDERAL REGISTER

Prevention of Significant Deterioration and
Title V Greenhouse Gas Tailoring Rule, 75
Fed. Reg. 31,513 (June 3, 2010) (to be codi-
ek passim

Endangerment and Cause or Contribute Find-
ings for Greenhouse Gases Under Section
202(a) of the Clean Air Act, 74 Fed. Reg.
66,496 (Dec. 15, 2009) (to be codified at 40
SI Ei insiiscncinnniatiniinbuiideiitiianiadnipiidilibideaiannvineasine 11

Light-Duty Vehicle Greenhouse Gas Emission
Standards and Corporate Average Fuel
Economy Standards, 75 Fed. Reg. 25,323
(May 7, 2010) (to be codified at 40 C.F.R. pts.

85, 86, 531, 533, 536-538, and 600)........................ 12

Reconsideration of Interpretation of Regula-
tions That Determine Pellutants Covered by
Clean Air Act Programs, 75 Fed. Reg. 17,004
(Apr. 2, 2010) (to be codified at 40 C.F-R. pts.
a I i la aed nace aah Neenah naire 12

Advance Notice of Proposed Rulemaking on
Regulating Greenhouse Gases under the
Clean Air Act (CAA), 73 Fed. Reg. 44,354
(proposed July 30, 2008) (to be codified at 40
NS NET: Sil iersstshsirisiniitensciaanapsndicnannlcendeiiinitbnieiiibensinepeitnndia 25

xXil

TABLE OF AUTHORITIES — Continued

MISCELLANEOUS

ANTONIN SCALIA & BRYAN A. GARNER, READING
LAW: THE INTERPRETATION OF LEGAL TEXTS
TE ae a eee a I 4

PSD and Title V Permitting Guidance for
Greenhouse Gases, EPA-457/B-11/001
I IED scciccstiissenhasiiiebetnnaniibiaten 15, 25, 26, 28, 29

STEPHEN A. BREYER, ACTIVE LIBERTY: INTERPRET-
ING OUR DEMOCRATIC CONSTITUTION (Knopf
EI reruns e ee Uren DOP eP ae Ren DM PO Bw eS 4

1

PETITION FOR WRIT OF CERTIORARI

Petitioners, the Energy-Intensive Manufacturers
Working Group on Greenhouse Gas Regulation and
the Glass Packaging Institute, respectfully petition
this Court for a writ of certiorari to review the judg-

ment of the United States Court of Appeals for the
D.C. Circuit.

SJ

OPINIONS BELOW

The opinion of the D.C. Circuit is reported at 684
F.3d 102 and reproduced at Petitioner Appendix (“Pet.
App.”) 1. The unpublished order of the D.C. Circuit
denying rehearing en banc, including statements
concurring or dissenting from the denial of rehearing
en banc, is set out at Pet. App. 102.

¢

JURISDICTION

The judgment of the Court of Appeals in the
several cases consolidated below was entered on June
26, 2012. Pet. App. 1. A petition for rehearing en banc
was denied on December 20, 2012. Pet. App. 102. This
Court has jurisdiction under 28 U.S.C. § 1254(1)
(2013).

2

CONSTITUTIONAL AND STATUTORY
PROVISIONS INVOLVED

The Constitution of the United States provides,
in pertinent part, that “[aJll legislative Powers herein
granted shall be vested in a Congress of the United
States, which shall consist of a Senate and House of
Representatives.” U.S. Const. art. I, § 1.

The Constitution of the United States provides,
in pertinent part, that “[t}he Congress shall have
Power ... [tlo regulate Commerce with foreign Na-
tions, and among the several States, and with the
Indian Tribes.” U.S. Const. art. I, § 8, cl. 3.

The Constitution of the United States provides,
in pertinent part, that “(t]he Congress shall have
Power ... [tlo make all Laws which shall be neces-
sary and proper for carrying into Execution the
foregoing Powers, and all other Powers vested by this
Constitution in the Government of the United States,
or in any Department or Officer thereof.” U.S. Const.
art. I, § 8, cl. 18.

Relevant provisions of the Clean Air Act, 42

U.S.C. §§ 7401 et seq. (2013) are reproduced at Pet.
App. 162.

+

INTRODUCTION

The Court will have received a number of worthy
petitions in this important matter. Ours is among
those that primarily address questions concerning the

3

proper interpretation of the Prevention of Significant
Deterioration (PSD) provisions of the Clean Air Act in
the context of the Environmental Protection Agency’s
(EPA’s) attempt to apply the PSD program to green-
house gases (GHGs).

It may be helpful to the Court if we outline here
how our petition relates to others of which we are
aware that deal with closely related questions. In
general, our principal argument raises the broadest
and most fundamental challenge to EPA’s interpretive
approach to the provisions. We have framed our first
question presented so that it is broad enough to
encompass our principal merits argument, as well as
those of other petitions concerned with interpretation
of the PSD provisions in the GHG context, should the
Court seek briefing on multiple approaches.

Petitioners’ Principal Argument

Our principal argument is that the Agency and
the court below used a mistaken approach to statuto-
ry construction, and that, when the correct approach
is used, it is apparent that the application of the PSD
program to greenhouse gases is not required by the
statute as a matter of Chevron step-one as the Agency
and lower court believe. In fact, it is our position that
this program is not authorized by the Act.

Under the correct interpretive approach, it is
apparent that each of the most important PSD statu-
tory provisions involved is contradicted, nullified, or
otherwise contravened by the attempt to apply the

4

PSD program to carbon dioxide and other greenhouse
gases. This is only apparent, however, once the differ-
ences between greenhouse gases and the conventional
pollutants for which Congress designed the program
are considered. Those differences need to be consid-
ered in combination with the relevant PSD provi-
sions, and the consequences of applying those
provisions to GHGs need to be assessed in relation te
the statute’s intent, purposes, structure, and con-
cerns.

The consequences that must be considered as
part of the core interpretive approach in a case of this
type result directly from the application of text to the
relevant facts, and they have thus been called “textu-
al consequences.” Though the precise role of “conse-
quences” can sometimes vary in different approaches
to statutory construction, “textual consequences”
represent an area of clear agreement.’ Our argument,
further, is that textual consequences are particularly
important in cases that involve the application of a
statute to a context that Congress did not contem-
plate as it fashioned the provisions in question.

By contrast, the Agency and the Court of Appeals’
approach to interpretation of the statute is deficient

' See ANTONIN SCALIA & BRYAN A. GARNER, READING LAW:
THE INTERPRETATION OF LEGAL TExTs 352 (Thompson/West 2012).

* Cf. Scalia & Garner, id., and STEPHEN A. BREYER, ACTIVE
LIBERTY: INTERPRETING OUR DEMOCRATIC CONSTITUTION 120
(Knopf 2005).

5

in three respects. First, it relies on language alone —
in the course of a “plain language” analysis it ignores
the facts that differentiate GHGs from conventional
pollutants and the importance of those differences
when addressing the relevant statutory text. Second,
the approach is highly selective in the text it consid-
ers, ignoring the most important and telling provi-
sions. Third, the approach fails to consider the “whole
statute” in the sense of the entire “statutory scheme,”
and thus fails to recognize that there are other pro-
grams within the Clean Air Act far better suited to
the regulation of the carbon emissions of stationary
sources; furthermore, this approach fails to consider
what this might mean for whether an ill-suited
program must cover GHGs.

Put differently, the PSD program’s provisions are
transformed by the attempt to apply them to carbon
dioxide, and those transformations must be included
as a part of the interpretive assessment. A clear
example of this transformation is the one featured in
the Agency’s effort to use the “absurd consequences”
doctrine (and others) to rewrite, on a rolling basis, the
statute’s threshold for the size of facilities regulated.
In order to capture only the nation’s largest industrial
facilities, the statute sets the threshold at 100 (and
under some circumstances 250) tons per year of any
air pollutant. Yet the statutory threshold when ap-
plied to ubiquitous and abundant carbon-dioxide
emissions is transformed into its opposite. It captures
facilities large and small.

6

As a matter of statutory construction, there are
three primary problems with the Agency and the
lower court’s treatment of this particular “absurd
consequence” and its standing in relation to the
broader issues in statutory interpretation. First, as
other petitions will likely emphasize, the Agency and
lower court’s approach violates the requirement that
application of the absurd consequences doctrine as
“rewriting authorization” must be a last resort, and a
reasonable construction that avoids the absurdity
must be adopted, if one is available, before turning to
the doctrine for that purpose. Our argument adds a
second reason the Agency and the lower court’s ap-
proach is faulty — it fails to include this consequence
as part of the assessment of textual consequences
required by the proper interpretive approach. The
Agency and lower court do not include it as part of
the interpretive process going to the basic question of
whether the PSD program can properly apply to
greenhouse gases. Its consideration was required
quite apart from the terms of the absurd consequenc-
es doctrine; it was required by the underlying proper
interpretive process in the first instance.

The third basic reason the Agency and the
Court’s treatment of this particular transformation is
part of a failed interpretive approach, as we empha-
size to a far greater degree than other petitions, is
that the Agency and the Court stopped there. That is,
they failed to consider the many other textual provi-
sions, some of them even more important, that were

7

transformed by application to greenhouse gases in
ways that contradict the statute.

Against this background, we can more specifical-
ly place our petition in relation to others the Court
has received or is likely to receive.

The petition of the Utility Air Regulatory Group
(UARG) has already been filed (because UARG did
not seek the extension provided to other petitioners).
Their petition raises the question of whether the PSD
program can be properly applied to greenhouse gases,
as does ours, and the UARG petition, like ours, uses
the absurd consequence involving the transformation
of the effect of the 100/250-ton limit as a reason that
the statute cannot properly apply. The UARG petition
emphasizes one other aspect of the PSD statutory
provisions. It relies on those provisions that embody
Congress’ intent that the PSD program apply only to
those pollutants that affect air “quality” in the sense
of a substance harmful to breathe.

We seek the opportunity to demonstrate that
many other provisions of the PSD text are also con-
tradicted, nullified, or otherwise contravened by
application to GHGs. Many of these other provisions
are highly consequential for energy-intensive indus-
tries. The potentially enormous (and difficult to
measure) costs and disruption involved in PSD regu-
lation of carbon, especially those that result from
changes in industrial processes, practices, designs,
and methods of operation that can be mandated

8

under the PSD program, have enormous and unique
implications for the manufacturing sector.

Moreover, our argument does not rely in a “di-
rect” or final way on Congressional intent at the time
of passage in and of itself. Our analysis takes an
additional step — one involving textual consequences.
It says that, consistent with this Court’s guidance,
even if the flexibility afforded by an “implied delega-
tion” to deal with a newly arising and un-
contemplated problem would allow an agency to move
beyond in some respects things “specifically intended”
at the moment of the statute’s enactment, it can do so
only if the statute still would make sense in its own
terms. An agency may not do so if, upon examination,
application to the new context contravenes the statu-
tory provisions in ways that render the statute un-
suited for the new application and contrary to the
statute’s intent, purposes, structure, and limitations
considered in the new context.

For example, we are in complete agreement with
UARG about the importance of the fact that Congress
constructed the PSD provisions having in mind air
quality and the associated reliance on local conditions
and impacts. But we would explore further important
consequences of this for the attempt to apply the
statute to GHGs. For example, this makes a nullity of
the PSD provisions establishing measurements of
local pollutant levels and assessment of local envi-
ronmental impacts as the factual context, and thus
the source of balanced and reasonable judgments, for
PSD permitting decisions.

9

Also, while the UARG petition raises a standing
question, we submit a different threshold question.
UARG focuses on the lower court’s entangling of
standing with the key merits question about applica-
bility of PSD to greenhouse gases. “© urs focuses on
the “timeliness” bar the court erected.

As we will further explain in our Statement, our
reading is that the court proceeded to the statutory
question of whether the PSD provisions can (or in its
view, “must”) accommodate greenhouse gases based
on — only because of — the “timeliness” of the chal-
lenge of the Oil Seed Producers and the Homebuild-
ers Association, who, because of their minimal
emission of conventional pollutants, could not have
challenged the relevant decades-old regulations
covering conventional pollutants. It denied as untime-
ly the challenges brought by larger emitters of con-
ventional pollutants. Hence, our view of the court’s
core error in this respect involves its mistaken notion
that a challenge by large emitters of conventional
pollutants to PSD applicability to greenhouse gases
could reasonably have been brought, or needed to be,
at the time those regulations were issued, and that is
how we frame the question presented. As petitioners
here present it, the court dismissed the challenges to
the Timing and Tailoring rules because it viewed the
statutory-interpretation question as separate from
those rules, which it viewed as providing only “relief”
from “full” force of the application to greenhouse
gases which the statute would otherwise require.

10

The other petition (or type of petition, if there is
more than one) that it is important to distinguish
from ours is that (or those) which do not seek relief
from PSD GHG applicability for all potentially cov-
ered facilities, only for smaller facilities. Under this
argument, all large emitters who have to obtain PSD
permits for conventional pollutants would also be
covered for greenhouse-gas emissions. This would
include most American industries, and it would leave
most of American industrial production subject to
PSD regulation. The relief that petitions with this
thrust would provide is very similar in scope to the
relief provided by the Agency under its “absurd
consequences” rewriting. Such petitions seek a
sounder statutory basis for such relief. The interpre-
tation of the statute they propose would apply to
conventional pollutants as well as greenhouse gases.

In keeping with the narrower focus, this argu-
ment does not address the various “substantive”
provisions of the PSD program or their transfor-
mation, contradiction, or nullification when applied to
greenhouse gases. Its focus is solely on the proper
interpretation of provisions relating to the 100/250-
ton threshold governing the size of facilities subject to
PSD regulation.

e

STATEMENT OF THE CASE

In the conception of the Agency and the lower
court, PSD carbon regulation is the result of an
essentially unstoppable cascade of dominoes that

11

began with Massachusetts v. EPA. In Massachusetts,
the Court found the term “air pollutant” in the Clean
Air Act “flexible” and “capacious” enough to include
greenhouse gases. Massachusetts, 549 U.S. at 532.

Massachusetts contains. significant limiting
language, and its express mandate to EPA is narrow-
ly tailored. At issue in that case was whether EPA
had to proceed to make an “endangerment finding”
with respect to greenhouse gases under the mobile-
source provisions of the Act. This Court concluded
that, “Because greenhouse gases fit well within the
Clean Air Act’s capacious definition of ‘air pollutant,’
we hold that EPA has the statutory authority to
regulate the emission of such gases from new motor
vehicles.” Id. The final line of the Court’s opinion
states, “We hold only that EPA must ground its
reasons for action or inaction in the statute.” Jd. at
535. The Court also said, “We need not and do not
reach the question of whether on remand EPA must
make an endangerment finding, or whether policy
concerns can inform EPA’s actions in the event that it
makes such a finding. Cf. Chevron U.S.A. Inc. v.
Natural Res. Def. Council, Inc., 467 U.S. 837, 843-844
(1984).” Id. at 534.

The mobile-source endangerment finding that
was the subject of Massachusetts is the first of four
proceedings that followed that case and that were
consolidated for review before the D.C. Circuit in this
case. This first Agency proceeding was officially
entitled Endangerment and Cause or Contribute
Findings for Greenhouse Gases Under Section 202(a)

12

of the Clean Air Act, 74 Fed. Reg. 66,496 (Dec. 15,
2009) (to be codified at 40 C.F.R. ch. I). Petitioners do
not challenge EPA’s actions in that rulemaking.

The second proceeding, known as the “Tailpipe
Rule,” established greenhouse-gas emission stan-
dards for light-duty vehicles, which we likewise do
not challenge. Light-Duty Vehicle Greenhouse Gas
Emission Standards and Corporate Average Fuel
Economy Standards; Fina] Rule, 75 Fed. Reg. 25,323
(May 7, 2010) (to be codified at 40 C.F.R. pts. 85, 86,
531, 533, 536-538, and 600). This rule is nevertheless
relevant to our case as what the Agency conceived to
be the “triggering event” for PSD stationary-source
regulation. As a result of the rule, GHGs became an
air pollutant “subject to regulation under the Act,”
because, as is the basis for the Agency’s position, its
regulations had long interpreted the PSD statute’s “any
air pollutant” phrase to include the Agency-injected
“subject to regulation under the Act” addendum.

The third proceeding, known as the “Timing
Rule,” addressed the question of “when” greenhouse
gases became “subject to regulation under the Act”
after the Tailpipe Rule. Reconsideration of Interpre-
tation of Regulations That Determine Pollutants
Covered by Clean Air Act Programs, 75 Fed. Reg.
17,004 (Apr. 2, 2010) (to be codified at 40 C.F.R. pts.
50-51, and 70-71). The key issue of whether — as
opposed to when -— light-duty-vehicle regulation
“automatically triggered” PSD _stationary-source
regulation was not addressed in the rule; instead it
was the unexamined premise of the rule. Hence, in

13

terms of the Petitioners’ core claim, it was at this
juncture that the Agency first failed to engage in the
requisite statutory interpretation, instead treating
the matter as self-evident and somehow already

decided.

The fourth proceeding was the “Tailoring Rule,”
which employed the “absurd consequences” doctrine,
along with the “administrative necessity” and “one
step at a time” doctrines, to address the single “ab-
surd consequence” that the Agency had pre-selected
for mitigation — the dramatic increase in the number
of facilities regulated under the program and the
increased sweep of the type of facility regulated.
Prevention of Significant Deterioration and Title V
Greenhouse Gas Tailoring Rule, 75 Fed. Reg. 31,513
(June 3, 2010) (to be codified at 40 C.F.R. pt. 52).
Here again, the assumed and unexamined premise
was that PSD did apply to GHGs. The Agency con-
cluded that the number of facilities covered and
permits required would increase many hundreds of
times, and that requiring all of these newly regulated
facilities to comply with permitting obligations would
“overwhelm permitting authorities,” incur additional
costs of billions of dollars per year, and “adversely
affect national economic development.” Tuiloring
Rule, 75 Fed. Reg. at 31,556-57. The Agency decided
on a plan of a rolling re-writing of the 100/250-ton-
per-year (tpy) threshold, beginning with 100,000 tons.
Id. at 31,524 and 31,548-49.

For purposes of this petition, there are four
particularly important aspects of the Tailoring Rule.

14

First, the absurdity that the Agency identifies
and cures is not the regulation of small facilities
contrary to Congress’ intent that the program cover
only the largest emitters, but the much narrower
problem that neither the permitting authorities nor
the small facilities could deal well with the permit-
ting process. Hence, while the Agency initially re-
wrote the statute’s 100/250-tpy thresholds to be a
100,000-tpy threshold, it promises to look for permit-
ting “streamlining” techniques to move closer to the
100/250-tpy level, explicitly reserving judgment on
how far it will or can go, based on streamlining
progress, in capturing the escaped small emitters.
Tailoring Rule, 75 Fed. Reg. at 31,566. It promises
that it “seeks to include as many GHG sources in the
permitting programs at as close to the statutory
thresholds as possible and as quickly as possible... .”
Id. at 31,548. Hence, the Agency avowedly seeks a
program that extends to hundreds of thousands or
millions of emitters of all kinds, not just the largest
industrial emitters that Congress targeted for PSD

regulation, which, the Agency reports, number about
15,000. Id. at 31,540.

Second, though the Agency had planned and
issued a Notice of Proposed Rulemaking to solve the
crush of permitting by directly rewriting the 100 and
250 numbers, it abandoned that in the final rule in
favor of a new definition of the term “subject to regu-
lation” itself. Under this new definition, which ap-
plies to greenhouse gases only, GHGs are “subject to
regulation” if they are emitted from a facility emitting
them in amounts above the Agency’s new (and future)

15

numerical thresholds, but not “subject to regulation”
if emitted from a facility emitting them in lesser
amounts. Jd. at 31,575-83 and 31,607. This is the first
time the Agency had defined a “regulated pollutant”
by the quantity in which it is emitted rather than by
the kind of pollutant the Agency sought to regulate.

Third, in what appears to be almost an aside in
the Rule, and as elaborated upon in the Agency’s
related Permitting Guidance, permitting authorities
and applicants are told they should ignore the provi-
sions of § 165(e) of the Act (42 U.S.C. § 7475(e) (2013))
that set out the program’s monitoring and environ-
mental-impact-analysis requirements. It includes
among the provisions to be ignored those found in
§ 165(eX1), 42 U.S.C. § 7475(eX1), requiring an
analysis of the air surrounding the applicant’s facility,
as well as the requirement found in § 165(eX3 XB), 42
U.S.C. § 7475(eX3Xb), requiring analysis of specified
local environmental impacts on things such as vege-
tation, soil and visibility. The Agency explains that
these are to be ignored because such analyses do not
make sense for greenhouse gases, which cause harm
by changes in upper layers of the atmosphere. Tailor-
ing Rule, 75 Fed. Reg. at 31,520; PSD and Title V
Permitting Guidance for Greenhouse Gases, EPA-
457/B-11/001, 47-48 (March 2011).°

* This is relevant to the issues presented in this petition in
several ways, two of which are most important. First, it nullifies
an essential ingredient of the statutory scheme that provides a
reasoned framework for the Agency’ permitting decisions.

(Continued on following page)

16

Fourth, though the Agency several times asserts
that it is not “reopening” the question of whether the
PSD provisions apply to greenhouse gases, it does in
the course of its “absurd consequences” analysis make
a (one-paragraph) foray into statutory interpretation
addressed to that question. Tailoring Rule, 75 Fed.
Reg. at 31,548. It evidently believed it must do so
because a principle of “absurd consequences” rewrit-
ing is that the statute otherwise and “literally” would
require the absurd consequence. The Agency thus
here explicitly based its argument for PSD applicabil-
ity to GHGs on the assertion that the statutory
“components” can be “readily applied” to GHGs and
thus can “readily accommodate” them. /d.

In fact, there are only two components of PSD
regulation which the Agency specifically examined to
see if they can be “readily applied” to and can “readily
accommodate” greenhouse gases. First, in the Tailor-
ing Rule’s principal topic and action, the Agency
concluded that the fit of the 100/250-ton PSD thresh-
olds and greenhouse gases was so poor it was absurd,
and the program could not, without “tailoring,” ac-
commodate the results. The other component it
examined, though it does not incorporate this insight
into the analysis, is the set of §165(e) impact-
analysis-requirement provisions discussed in point

Second, the statutory provision is couched in mandatory lan-
guage, including the phrase, “each pollutant subject to regula-
tion under the Act,” that taken literally would require
application to greenhouse gases.

17

three above — those that fit so poorly they should be
ignored.

Multiple challenges were brought to each of the
four EPA rulemakings. They were consolidated for
review in Coalition for Responsible Regulation uv.
EPA.‘ A three-judge panel of the D.C. Circuit, in a per
curiam opinion, rejected all challenges to the four
rulemakings. Pet. App. 1. The following elements of

the decision are of particular relevance to this peti-
tion.

The court held that the phrase “any air pollu-
tant” contained in the 42 U.S.C. §§ 7745(a), 7749(1)
“eligibility trigger” “includes all regulated air pollu-
tants, including greenhouse gases” (Pet. App. 67) and
that EP.’ 's “longstanding” interpretation to that effect
is “compelled by the statute” (Pet. App. 89) and is the
only “logical” (Pet. App. 67) or “plausible” (Pet. App.
68) reading of “any air pollutant.” The court’s reason-
ing relies on the generality of the word “any” (Pet.
App. 67) and the Supreme Court’s statement in
Massachusetts that greenhouse gases “are indisputa-
bly an ‘air pollutant’” (Pet. App. 66), finds that this
reading is “buttressed” by Massachusetts’ holding that
the statute’s “overarching” definition “unambiguous-
ly” includes greenhouse gases (Pet. App. 66), and
states that it finds further support throughout the
CAA, citing three provisions. Pet. App. 66-71.

* Coal. for Responsible Regulation, Inc. v. E.PA., 684 F.3d
102 (D.C. Cir. 2012) (to be found at Pet. App. 1).

18

The court also agreed with the EPA that because
the challenges to the PSD triggering mechanism as
set out in the Agency’s “longstanding” regulations
were based on “legal arguments that were available
during the normal judicial review periods for the
1978, 1980 and 2002 Rules,” none of the industry
challenges were timely — except for those of the
National Association of Home Builders and Oilseed
Processors Association. Pet. App. 56. Those two
groups were not barred because their emissions even
of conventional pollutants were too small to qualify at
the 100/250-ton threshold, and thus the addition of
greenhouse gases gave them newly “ripened” claims
concerning the regulations, which they brought
within the required 60-day period. Jd. The court
proceeded to the merits on that basis.

Petitions for rehearing en banc were denied on
December 20, 2012, with two dissents. Pet. App. 102.
In their joint response to the dissents from the denial
of rehearing, the three judges of the original panel
concluded:

To be sure, the stakes are high. The underly-
ing policy questions and the outcome of this
case are undoubtedly matters of exceptional
importance. The legal issues presented, how-
ever, are straightforward, requiring no more
than the application of clear statutes and
binding Supreme Court precedent. There is
no cause for en banc review. Pet. App. 109.

19

Earlier in the statement, the panel summarized its
approach to the case, and to the interpretation of the
statute, thus:

... Here, Congress spoke clearly, EPA ful-
filled its statutory responsibilities, and the
panel, playing its limited role, gave effect to
the statute’s plain meaning. See Chevron,
U.S.A., Inc. v. NRDC, 467 U.S. 837, 842-43
(1984) (“if the intent of Congress is clear,
that is the end of the matter; for the court, as
well as the Agency, must give effect to the
unambiguously expressed intent of Con-
gress.”) Pet. App. 108.

®

REASONS FOR GRANTING THE PETITION

Regulation of carbon-dioxide and other green-
house-gas emissions of “stationary sources” by EPA
under the PSD program is likely the most extensive,
intrusive, burdensome, and potentially harmful
scheme of regulation in the nation’s history. In its
basic structure as well as in all of its important
provisions, the PSD program does not fit the unique
challenges presented by greenhouse-gas regulation.
PSD regulation is prescriptive, particularistic, case-
by-case, and painfully prolonged. It requires a public
hearing in every case, and demands “maximum”
achievable reductions. It is not possible to conceive of
a worse way of regulating carbon-dioxide emissions.
No other country has contemplated any such thing,
and no policymaker would ever recommend it.

20

PSD regulation of carbon is a policy debacle,
unnecessary, indefensible, and undefended, that
emerged without an exercise in reasoned policymak-
ing from a fundamentally erroneous approach to
statutory interpretation in cases of this type, a lan-
guage-only and tendentiously language-selective
approach that renders the statute helpless in the face
of nonsensical regulatory results in a new context. It
assigns to Congress responsibility for “directly” and
“precisely” commanding the imposition of a regulato-
ry regime Congress did not and would never create.
PSD carbon regulation is an outcome that exceeds all
reasonable limits, produced by a process that evades
constitutional processes.

The position of the Agency, now adopted by the
lower court, was that “the law made them do it.”
Petitioner respectfully submits that as important as
this case is because of the nature of the regulation it
involves, it is even more important because of the
misconception of “law” it involves. It is a conception
that destroys the proper relationship between law,
policymaking, and the respective branches of gov-
ernment. In a statutory case, “what the law is” is
determined by the statute’s interpretation, under the
correct standards and processes, not by a form of
radically de-contextualized literalism.

* In fact, the government agreed to this very phrase in oral
argument below.

21

When a statute created for one context is applied
to another there is no a priori reason to believe that
the resultant regulatory regime will make sense or
that it will not contradict the intended meaning and
import of the statutory terms. The “literal” meaning
of the statutory provisions in the new context, such as
those in this case meant to define and cover only the
largest industrial facilities, may lead to outcomes
that defy the statute. In such a situation, no analyti-
cal method that depends on “language alone” can
determine whether the meaning and import of the
language involved has been transformed by the new
context into something that contradicts the statute as
a whole, and common sense as well.

The Agency and the court below did not venture
beyond plain and de-contextualized language. They
ignored the direct and practical consequences of
applying the statutory provisions to carbon-based
emissions. To compound the error, they chose to focus
only on a few provisions, ignoring most of the most
consequential and telling ones. By the first error they
divorced the statute from real-world consequences
and the evidence of meaning such consequences could
provide; by the second they divorced it from the rest

of the text and the evidence of meaning available
from it.

This approach to statutory interpretation by the
Agency and the court in fact involved policy creation —
but it was implicit, de facto policy creation that
ignored context, facts, consequences, and relevant
policy concerns. This would be dangerous in any area

22

of policymaking, but in the matter of carbon regula-
tion it is almost unlimitedly irresponsible, and conse-
quential — given the role of carbon-dioxide-releasing
processes in our economy and lives.

Carbon’s intimate relationship to much of human
productive activity and its associated ubiquity and
abundance puts great pressure on each of the three
questions inherent in the establishment of any regu-
latory regime: whether to regulate, if so how, and how
much. With respect to the second two questions, it is
possible that rules and standards fashioned for
conventional pollutants, when applied to carbon
dioxide, can create absurdly intrusive, unrestrained,
inefficient and, in light of alternatives, unnecessary
regulation that transgresses all reasonable limits.
That is this case.

The misconception of law involved in this case
removes human judgment from one of the most
significant policy choices of our times — how to regu-
late carbon. Similarly, it divorces governmental action
from constitutional and political accountability. It
amounts to a claim that Congress has directly and
precisely commanded something Congress did not
consider and that would be anathema to it. This case,
among other things, emphatically invokes this
Court’s obligation to say, in this context, what “the
law” is, and, at least in some respects, what the
nature of “law” is.

23

I. The Court of Appeals Has Decided a Mat-
ter of Extraordinary National Importance
that Should Be Decided - and Corrected -
by This Court.

A. PSD-Program Carbon Regulation Is
One of the Most Extensive, Intrusive,
Unworkable and Potentially Damag-
ing Regulatory Regimes Ever Imposed.

The scheme of regulation involved in this case is
unprecedented. The PSD program and carbon dioxide
are an unnatural and destructive mix. The PSD
permitting program is particularistic, prescriptive,
prolonged, and uncertain. When it is applied to
carbon dioxide, moreover, the components that estab-
lish its “scope” both in the sense of which facilities are
regulated and which aspects of those facilities are
regulated, written with conventional pollutants in
mind, balloon to elephantine proportions. Similarly,
the components which give PSD permitting decisions
a reasonable factual context involving local environ-
mental impacts are rendered meaningless. When
applied to carbon dioxide, the PSD provisions make
environmental permitting authorities, inter alia, into
comprehensive industrial regulators, without mean-
ingful restraints, able to dictate every decision that
affects a facility's emission of carbon dioxide or its
consumption of energy.

24

PSD GHG regulation can be described in five
basic dimensions.* Each is important to understand-
ing how consequential EPA's action is for American
industry, and each reflects a way that the PSD pro-
gram is unsuited for the regulation of greenhouse
gases.

1. Basic form or structure. PSD carbon regula-
tion is particularistic, prescriptive, and case-by-case.
It requires a public hearing, and has proven to be a
font of litigation. Petitioner submits it is not possible
to find a regulatory structure less compatible with
the regulation of carbon, primarily because of the
command-and-control PSD regime’s diametric and
classically inefficient opposition to market forces and
its inherent uncertainty and delay. In the Tailoring
Rule, the EPA itself described PSD permitting, before
such permitting was exponentially complicated by the
addition of carbon-dioxide emissions and energy
consumption, as a “complicated, resource-intensive,
time consuming and sometimes contentious process.”
Tailoring Rule, 75 Fed. Reg. at 55,321-22. In the

* Because the court below and the Agency view its sub-
stance (in light of the perceived “Chevron step-one” and “plain-
language” mandate) as irrelevant, the Court will not find a
meaningful description of PSD carbon regulation in the circuit
court’s opinion, and it takes considerable piecing-together to get
a good picture of it even from the Agency proceedings. Put
differently, we believe that the case, because of the elements of
the requisite and ignored interpretive approach, is “about”
something very different than the Court of Appeals and Agency
thought, and it thus involves very basic, descriptive facts about
the regulation in question which they avoided.

25

Agency’s first step after Massachusetts, when, in a
process it later abandoned, the Agency began think-
ing about its various options for the regulation of
carbon in an Advance Notice,’ the EPA had this to say
about it: “Because of the case-by-case nature ... the
complexity ... and the time needed to complete the
PSD permitting process, it can take ... more than a
year to receive a permit ... . Jd. at 44,500. “There
have been significant and broad-based concerns .. .
over the years due to the program’s complexity and
the costs, uncertainty, and construction delays... .”
Id. at 44,501.

2. “Scope” in the sense of aspects of production
regulated. The transformed PSD carbon-regulation
program now claims the power to prescribe every
aspect of production, practices, processes, operations,
methods, systems, techniques, equipment, technolo-
gies, work practices, or designs which affect carbon
emissions or the consumption of energy, because the
latter affects the former.® To understand the scope of

" Advance Notice of Proposed Rulemaking (ANPR) on
Regulating Greenhouse Gases under the Clean Air Act (CAA), 73
Fed. Reg. 147 (July 30, 2008).

* The statute, as part of its definition of “best available
control technology” uses the terms “production processes and
available methods, systems and techniques.” 42 U.S.C. § 747%3)
(2013). The EPA’s elaboration of what this allows it to control in
the context of GHG control is found in regulations or in PSD and
Title V Permitting Guidance for Greenhouse Gases (“Permitting
Guidance”), EPA-457/B-11/001 (March 2011). In fact, the Guid-
ance is in large measure an elaboration of things found buried in
the proceedings, particularly, in the Tailoring Rule, or otherwise

(Continued on following page)

26

the regulatory revolution involved, it is vital to un-
derstand that PSD carbon regulation is essentially a
scheme of energy-consumption regulation through
particularistic regulation of everything that consumes
energy. Environmental-permitting authorities have
now become comprehensive, prescriptive regulators of
industrial operations and design because they claim
the right to regulate anything and everything that
affects energy use. Permitting Guidance at 21-22, 28-
32, 40-46 (“The application of methods, systems, or
techniques to increase energy efficiency is a key
GHG-reducing opportunity that falls under the
category of ‘lower-polluting processes/practices.’”)°
The aspects regulated would include everything that
matters in making — every one of the hundreds of
complex and interrelated judgments that go into such
a decision — for instance, steel, aluminum, glass,
chemicals, paper, or cement. If this approach were
taken to the regulation of the carbon emissions of

hidden in plain sight in that rule and its predecessor proceed-
ings.

* Even with respect to energy-control equipment, as op-
posed to energy-consuming aspects of operations generally, the
program is unlimitedly prescriptive and intrusive. A useful
example is found in the Permitting Guidance for the relatively
simple matter of a “natural gas boiler,” under which regulation
could include a “combination of oxygen trim control, an econo
mizer and condensate recovery for the boiler, along with high
transfer efficiency design for the heat exchanger,” a “preventive
maintenance program” for the controller, and “a requirement for
periodic maintenance and calibration of the natural gas meter
and the steam flow analyzer.” Permitting Guidance at F1-3.

27

vehicles, the permitting authorities would hold sway
over the slope of the windshield, the height of the
vehicle, its weight, the pressure of its tires, and
whether it had a roof rack — and that would be before
the permitting authority got to the engine, transmis-
sion, fuel choice, or driving habits of its operator.

3. “Scope” in the sense of which facilities are
regulated. As all agree, the enacting Congress meant
to limit the PSD and Title V programs to only the
largest industrial emitters by specifying the threshold
as those facilities that emit more than 100 or 250 tpy
of “any air pollutant.” Though the Agency measures
the increase in facilities regulated caused by the
addition of GHGs to the phrase “any air pollutant” in
various (and confusing) ways, for PSD the best meas-
ure is the number of PSD permits required each year:
an increase from 668 to 81,598. Tailoring Rule, 75
Fed. Reg. at 31,538. For Title V (which involves
permitting at longer than annual intervals), the
increase in the number of permits went from 14,700
to over six million. Tailoring Rule, 75 Fed. Reg. at
31,536. Thus we have two measures of the dual-
program’s inflation: 277-fold and 408-fold. There is
likewise a transformation in “kind” — those subject to
regulation now include not just factories (now of all

sizes), but farms, apartments, churches, hospitals,
and bakeries.

4. Limits. When the potential scope and intru-
siveness of regulation reaches as broadly as the
above, it raises the question of whether there are
other, separate provisions that limit that scope.

28

Certainly, this would have been a central focus of a
congress that was establishing industrial regulation
of carbon emissions or energy consumption. The EPA,
however, recognizes no limit, at least in principle, on
the environmental authorities’ powers over industrial
practices, processes, production, or design. The most
trivial and most fundamental aspects of industrial
production offer good examples. With respect to the
smallest, most ancillary aspects, the Agency explicitly
refuses to rule out, in principle, the imposition of
more efficient light bulbs in the factory cafeteria,
though it says this level of regulation might not be
worth it. Permitting Guidance at 31. With respect to
fundamental things, the Agency explicitly refuses to
rule out, in principle, changes to the basic industrial
process involved that would “fundamentally redefine
the source” (Jd. at 26-27), as otherwise defined by the
facility owner’s “goal, objectives, purpose or basic
design of the facility” (Jd. at 26), though, the Agency
cautions permitting authorities, this should only be
done after a “hard look.” Id.

5. Standard. The PSD statutory scheme re-
quires the “maximum degree of reduction of each
pollutant regulated under this Act ... taking into
account energy, environmental, and economic impacts
and other costs.” 42 U.S.C. § 7479(3) (2013). To en-
force this for carbon, the Permitting Guidance calls
for “control options that result in energy efficiency
measures to achieve the lowest possible emission
level.” Permitting Guidance at 3/7. The selection
should “default to the highest level of control for

29

which the applicant could not adequately justify its
elimination based on energy, environmental and
economic impacts.” Jd. at 45.

B. The Interpretive Approach of the
Agency and the Circuit Court Removes
Policy Considerations and Judgment
from Vitally Important Policy Deci-
sions Concerning How to Regulate
Carbon Dioxide and Other Green-
house Gases.

A mistaken belief in PSD ineluctability, founded
on a mistaken approach to statutory construction, has
denied the Agency the clarity of policy vision that
would enable it to see less structurally problematic
means of carbon regulation than PSD available under
the Act. More generally, it represents a form of implic-
it and fact and consequence-blind policy creation that
renders reasoned and constitutional government
illusory. Without basic considerations of context,
statutes themselves can become vehicles for render-
ing the separation of powers ineffectual, and the
process of legislative rulemaking becomes a matter of
chance more than reason.

Moreover, this is an error likely to affect future
questions concerning the Clean Air Act and carbon
regulation. Other questions about regulation of
greenhouse gases under the Clean Air Act that will
face the nation and likely reach this Court are direct-
ly affected. For instance, there is the question of
whether a “National Ambient Air Quality Standard”

30

(“NAAQS”) must be issued for GHGs — since the
relevant NAAQS provisions share some terms and
characteristics in which the Agency and the circuit
find an ineluctable mandate to impose PSD regula-
tion of carbon. In fact, this was the principal issue in
the briefing cited by the court below, in the denial of
the petition for rehearing, for the proposition that
because some of the consequences of stationary-
source regulation were briefed to the Court in Massa-
chusetts, the Court considered them in rendering its
decision. See Pet. App. 138. Petitioners respectfully
submit that this contention alone is a serious error
worthy of review. Vigorously contested (as these were)
assertions in briefings to the Supreme Court, involv-
ing matters the Court does not address, cannot be
taken by lower courts effectively to decide these
matters, upon which later cases turn.

C. The Court of Appeals Has Erected an
Erroneous “Timeliness” Bar in Cases
of This Type, Which Will Have the Ef-
fect of Denying Claimants a Reasona-
ble Opportunity to Seek Judicial
Review of Allegedly Unauthorized Ex-
pansions of the Scope of Regulatory
Statutes, Particularly Those Driven by
Changes in Science or Technology.

The lower court was correct that petitioners’
challenge was untimely” only if the court was correct

'° See ante p. 18 for a description of the timeliness issue.

31

that textual consequences and the associated legal
claims unique to the challenged greenhouse-gas
application of PSD do not matter. Because they do,
the court’s timeliness bar represents a very serious
error, destructive of timely, rational, and necessary
judicial review in one of the most important types of
administrative law cases that will come to the courts
in general and the D.C. Circuit in particular.

II. The Decision of the Court of Appeals
Conflicts with Important Decisions of
This Court.

A. This Case Represents a Fundamental-
ly Mistaken Approach to Statutory In-
terpretation in Cases Regarding One
of Our Complex, Multi-Part Regulato-
ry Statutes Considered in Contexts
Not Contemplated by the Enacting
Congress.

In FDA v. Brown & Williamson, this Court cau-
tioned against the pseudo-Chevron clarity produced
by the de-contextualized reliance on general statutory
definitions of jurisdictionally important terms:

In determining whether Congress has specif-
ically addressed the question at issue, a re-
viewing court should not confine itself to
examining a particular statutory provision in
isolation. The meaning — or ambiguity — of
certain words or phrases may only become
evident when placed in context. See Brown v.
Gardner, 513 U.S. 115, 118 (1994) (“Ambiguity

32

is a creature not of definitional possibilities
but of statutory context.”) It is a “fundamen-
tal canon of statutory construction that the
words of a statute must be read in their con-
text and with a view to the overall statutory
scheme.” Food & Drug Admin. v. Brown &
Williamson Tobacco Corp., 529 U.S. 120, 132-
33 (2000) (citing Davis v. Michigan Dept. of
Treasury, 489 U.S. 803, 809 (1959)).

An essential component of this is a “whole statute”
approach to interpretation, and Brown & Williamson
uses that very phrase, or an “overall scheme” variant,
more than half a dozen times. In addition to its clear
directives, Brown & Williamson offers a clear example
of the kind of analysis required. The Court delved
deeply into contested matters involving various and
complex provisions of the Food, Drug and Cosmetic
Act as they applied to the facts that distinguish
tobacco and cigarettes from other “drugs” or “drug
delivery devices” covered by the Act.

As fully reflected in Brown & Williamson, by
logic and precedent, statutory interpretation in
“implied delegation/unanticipated context” cases of
this type requires, inter alia, a three-element process:
(i) identification of the facts that differentiate the
context of application from the context of enactment;
(ii) identification of the relevant statutory provisions;
and (iii) consideration of the “textual consequences” of
applying one to the other. Moreover, the “whole
statute” approach requires consideration of optional
means of regulation under all of the available statutory

33

programs, and a consideration of which can best serve
the statute’s purposes, given the new context. In the
Petitioners’ view, correcting the lower court’s substan-
tial departure from the approach required in cases
such as this by this Court’s precedents is a funda-
mental reason for granting this petition.

Clearly, the lower court and the Agency have
failed to recognize the approach required. As indicat-
ed above, they instead applied a de-contextualized
“plain language” approach that ignored the differ-
ences between carbon dioxide and conventional
pollutants, the relevant provisions of the PSD part of
the statute, and the textual consequences of combin-
ing the two. It may be that the Agency and lower
court misunderstood Massachusetts, believing that
when this Court distinguished Brown & Williamson
for limited purposes, it also extinguished the core
interpretive principles it represents.

An example of a hypothetical “Interstate Com-
merce Act,” paralleling the example used by Judge
Kavanaugh involving “vehicles in the park” in his
dissent to the denial of rehearing en banc,” illus-
trates the basic mismatch between the approach to

“ Judge Kavanaugh uses a variation on the staple of
discussions of law and language involving the regulation of all
“vehicles” in the park. Pet. App. 149-51, fn. 3. In terms of our
basic point, the inappropriateness of an original broad interpre-
tation that included bicycles is indicated by a “later” provision
that requires reinforced gas tanks on all “park vehicles,” and,
further, that inappropriateness is clear only based upon
knowledge of how bicycles differ from trucks.

34

interpretation employed by the Agency and the lower
court and the nature of the question presented. That
is, it shows why it is that the searching inquiry
including facts and consequences of the type conduct-
ed by the Court in Brown & Williamson is essential to
avoid the kind of absurdity that this case represents.

As illustrated by Judge Kavanaugh’s example,
the question is: what happens in the “next case”?
What if the expanded definition — expanded beyond
the legislative process of induction that produced it —
does not make sense in a particular statutory context
involved? If the early case defining the jurisdictional-
ly important term did not address particular pro-
grams within the regulatory scheme in question,
what should happen when a subsequent case does?

The Court in Massachusetts held that the statu-
tory phrase “any air pollutant” was capacious and
flexible enough to encompass new developments. This
is in the same way a court might say, in another case
involving multi-part regulatory statutes, that, for
instance, “mode of interstate transportation” is flexi-
ble enough to include the Internet once it was devel-
oped.

This case is akin to the “Interstate Commerce
Act” hypothetical in the following way. Imagine that
the act, written for a different era, hypothetically
contains speed limits for its “modes of interstate
transportation” when they encounter populated areas
and intersections. If the statute is to be applied to the
Internet as a “mode of interstate transportation,” the

35

agency involved could not determine if the speed-
limit part of the statute properly applied to the new
context without considering the differences between
the Internet as a mode of interstate commerce and
trains or trucks and the difference those differences
might make when combined with the relevant textual
components of the program. If the statute used “55
miles per hour” to specify a reasonable speed, that
does not have the same meaning or import when
applied to the Internet, and, indeed, the further
consideration of the facts and context might lead one
to conclude that for purposes of this provision, at
least, the term “mode of interstate transportation”
does not include the Internet, no matter how capa-
cious and flexible the term’s definitional potential.

Underlying the importance of context in this
example is the limited usefulness of categories. Thus,
the fact that carbon dioxide can be considered an “air
pollutant” does not answer most of the important
questions about regulating it or whether the term can
be reasonably so read within any given statutory
program, just as “mode of interstate transportation”
may not, without more, answer such questions with
respect to the Internet.

There is a further reason that the question of
interpretive approach involved in this case merits a
grant of certiorari. The combination involved in this
case of a misperceived Chevron step-one command,
the PSD provisions, and carbon dioxide raise sub-
stantial constitutional concerns. These, in turn,
invoke the constitutional-question “avoidance” canon.

36

See, e.g., Crowell v. Bensen, 285 U.S. 22, 62 (1932)
(“When the validity of an act of the Congress is drawn
into question, and even if a serious doubt of constitu-
tionality is raised, it is a cardinal principle that this
Court will first ascertain whether a construction of
the statute is fairly possible by which the question
can be avoided.”); cf. Pet. App. 157 (dissent to denial
of reh. en banc, Kavanaugh, J.) (“ ... (T)he bedrock

underpinnings of our separation of powers are at
stake.”).

One example of the serious constitutional issues
involved concerns Article I powers, the Commerce
Clause and the Necessary and Proper clause. “As
Chief Justice Marshall wrote in McCulloch v. Mary-
land, even when the end is constitutional and legiti-
mate, the means must be ‘appropriate’ and ‘plainly
adapted’ to that end. ... Moreover, the means must
be ‘consistent with the letter and spirit of the consti-
tution.’” Gonzales v. Raich, 541 U.S. 1, 421 (2005)
(Scalia, J., concurring). In light of its inherent charac-
teristics, its ubiquity and abundance, its pervasive
presence in much of human productive activity, the
means by which carbon is regulated is every bit as
important as whether or not it is regulated at all.
Regulation of carbon is a lever by which the govern-
ment can control much of the private sector. In this
case, actual legislation by Congress has been hol-
lowed out and made a vehicle for a Trojan-horse
invasion of legislative prerogatives. Among other
things, the EPA’s approach has denied Congress the
opportunity to make any judgment about the necessity

37

and propriety of the PSD mechanism as a means of
regulating carbon under the Commerce Power. More-
over, the lower court and Agency’s conclusion that a
Chevron step-one obligation exists implies that Con-
gress would be a party to an absurd type of implied
delegation. Under it, the authority to regulate an
unforeseen problem is deemed delegated but Con-
gress commands that rules it created for another
context be applied whether or not they fit the new
situation and regardless of the availability of other
options.

The nature of the creation of PSD GHG regula-
tion denies citizens protections inherent in the nature
of representative government, under which there are
matters upon which Congress would not intrude in
command-and-control fashion even if it has the power
to do so. The concerns as to which tle interpretive
approach of the Agency and lower court is oblivious
are concerns that make PSD carbon regulation un-
thinkable to any American congress — and yet, it
exists.

B. The Mistaken Approach to Statutory
Interpretation Is Inextricably Linked
to a Misreading of this Court’s Deci-
sion in Massachusetts v. EPA.

The key to understanding the misuse of Massa-
chusetts by the Agency and lower court is the fact that
Massachusetts did not consider the PSD provisions,
and thus the Court was not conducting a “whole

38

statute” examination that considered the term “any
air pollutant” in the PSD statutory context. Even if
some urged the court to anticipate the quandary that
EPA has now created — a program that as EPA itself
says Congress would not recognize” — this Court,
instead, in Massachusetts clearly decided on a one-
step-at-a-time approach.

As Judge Kavanaugh put it in his dissent to the
denial of rehearing en banc, “(Massachusetts] did not
purport to say that every other use of the term ‘air
pollutant’ throughout the sprawling and multi-faceted
Clean Air Act necessarily includes greenhouse gases.
Each individual Clean Air Act program must be
considered in context.” Pet. App. 149. Or, as Judge
Brown put it in her dissent to denial, “But we need
not follow Massachusetts off the proverbial cliff and
apply its reasoning to the unique Title V and PSD
provisions not considered in that case.” Pet. App. 122.

Of the many other important ways in which
Massachusetts was misunderstood by the Agency and
lower court, one stands out: they treat the decision as
if it held that “any air pollutant” as defined in the Act
must be read to contain greenhouse gases, as opposed
to a reading that says it is sufficiently flexible and
capacious such that one cannot say that it cannot. In
other words, the Agency and the court mistakenly
read Massachusetts to say that inclusion, as a matter
of statutory definition, is mandatory and inflexible

" Tailoring Rule, 75 Fed. Reg. at 31,547.

39

and that the usage within the statute must be univo-
cal. That reading of the definition in question is not
linguistically supportable, since the definition turns
on a tautological use of the term “pollutant,” and the
associated reading of Massachusetts, for that addi-
tional reason, is incorrect. 42 U.S.C. § 7602(g) (2013).

C. The Mistaken Approach Likewise
Involves Misunderstanding and Mis-
use of Important Doctrines in Admin-
istrative Law, Particularly Chevron.
“Implied Delegation” and “Absurd
Consequences.”

If PSD carbon regulation is allowed to stand on
the Agency and lower court’s terms, a new Chevron
category will have been created, one that cannot
logically exist in an “unanticipated context” case. It
combines a Chevron step-one “clear” command, based
upon Congress having “directly addressed the precise
question at issue,” with a context Congress did not
consider.

Massachusetts is an implied delegation case. It
holds that the Clean Air Act, by the generality of its
key terms, particularly “air pollutant,” is flexible
enough, at least potentially, to allow the EPA to try to
address a problem that was neither contemplated by
the enacting Congress nor expressly delegated to the
Agency. It is nonsensical to view the terms of the

*’ Chevron, 467 U.S. at 843.

40

implied delegation involved as they are, effectively,
viewed by the Agency and the lower court: apply the
provisions of the PSD program to greenhouse gases
without an inquiry that includes the consequences of
doing so and thus without a basis for determining
whether it makes sense and whether there are better
ways available under the Act.

This case also manipulates the “absurd conse-
quences” doctrine to facilitate absurdity, not correct
it. The EPA promises a rolling rewrite of relevant
statutory provisions over the years, combined with
permitting streamlining, to get as close as possible to
regulating all of the left-out small facilities, under a
statute that used a 100/250-ton limit in order to
exclude them. Just as this case represents a misap-
prehension of what law is, it misunderstands what is
absurd and what is not. So oblivious is the Agency to
the effects of de-contextualization that in its approach
to absurdity, the Agency thinks it must honor Con-
gress’ abiding concern with the de-contextualized
numbers “100” and “250,” regardless of their meaning
within the statute and regardless of the consequenc-
es. It refuses to acknowledge that what is to be hon-
ored is the statute’s concern for small businesses, not
de-contextualized numbers.

°

41

CONCLUSION

For the aforementioned reasons, this petition for
a writ of certiorari should be granted.

Respectfully submitted.

RONALD TENPAS JOHN J. MCMACKIN, JR.
MORGAN LEWIS & BOCKIUS WILLIAMS & JENSEN, PLLC
1111 Pennsylvania Ave., NW 701 8th Street, NW, Suite 500

Washington, DC 20004 Washington, DC 20001
(202) 739-5435 (202) 659-8201
ymcmackin@wms-jen.com

Counsel of Record

Counsel for Petitioners
April 17, 2013

App. l

684 F.3d 102

United States Court of Appeals,
District of Columbia Circuit.

COALITION FOR RESPONSIBLE
REGULATION, INC., et al., Petitioners

v.
ENVIRONMENTAL PROTECTION AGENCY,
Respondent
State of Michigan, et al., Intervenors.
Coalition for Responsible Regulation, Inc., et al.,
Petitioners
v.

Environmental Protection Agency, Respondent
American Frozen Food Institute, et al., Intervenors.
Coalition for Responsible Regulation, Inc., et al.,
Petitioners
v.

Environmental Protection Agency, Respondent
Langboard, Inc. — MDF, et al., Intervenors.
American Chemistry Council, Petitioner
v.

Environmental Protection Agency and
Lisa Perez Jackson, Administrator,

U.S. Environmental Protection Agency,
Respondents Chamber of Commerce of the
United States of America, et al., Intervenors.

Nos. 09-1322, 10-1024, 10-1025, 10-1026, 10-1030,
10-1035, 10-1036, 10-1037, 10-1038, 10-1039,
10-1040, 10-1041, 10-1042, 10-1044, 10-1045,
10-1046, 10-1234, 10-1235, 10-1239, 10-1245,
10-1281, 10-1310, 10-1318, 10-1319, 10-1320,
10-1321, 10-1073, 10-1083, 10-1099, 10-1109,
10-1110, 10-1114, 10-1118, 10-1119, 10-1120,

App. 2

10-1122, 10-1123, 10-1124, 10-1125, 10-1126,
10-1127, 10-1128, 10-1129, 10-1131, 10-1132,
10-1145, 10-1147, 10-1148, 10-1199, 10-1200,
10-1201, 10-1202, 10-1203, 10-1206, 10-1207,
10-1208, 10-1210, 10-1211, 10-1212, 10-1213,
10-1216, 10-1218, 10-1219, 10-1220, 10-1221,
10-1222, 10-1092, 10-1094, 10-1134, 10-1143,
10-1144, 10-1152, 10-1156, 10-1158, 10-1159,
10-1160, 10-1161, 10-1162, 10-1163, 10-1164,
10-1166, 10-1182, 10-1167, 10-1168, 10-1169,
10-1170, 10-1173, 10-1174, 10-1175, 10-1176,
10-1177, 10-1178, 10-1179, 10-1180.

Argued Feb. 28 and 29, 2012.
Decided June 26, 2012.

On Petitions for Review of Final Actions of the Envi-
ronmental Protection Agency.

Attorneys and Law Firms

Patrick R. Day, Harry W. MacDougald, and Jeffrey
Bossert Clark argued the causes for Non-State Peti-
tioners and Supporting Intervenors. With them on
the briefs were John J. Burns, Attorney General,
Office of the Attorney General of the State of Alaska,
Steven E. Mulder, Chief Assistant Attorney General,
Peter Glaser, Mark E. Nagle, Matthew Dukes, Paul
D. Phillips, John A. Bryson, Ellen Steen, Eric Groten,
John P. Elwood, James A. Holtkamp, Chet M. Thompson,
Robin S. Conrad, Rachel L. Brand, Sheldon Gilbert,
Quentin Riegel, Jeffrey A. Rosen, Robert R. Gasaway,
William H. Burgess, Sam Kazman, Hans Bader,

App. 3

Matthew G. Paulson, Harry Moy Ng, Michele Marie
Schoeppe, Michael R. Barr, Alexandra M. Walsh,
Adam J. White, Jeffrey A. Lamken, Timothy K.
Webster, Roger R. Martella, Neal J. Cabral, Theodore
Hadzi-Antich, Ashley C. TDarrish, Cynthia A.M.
Stroman, Scott C. Oostdyk, Gordon R. Alphonso,
Shannon L. Goessling, Edward A. Kazmarek, F.
William Brownell, Norman W. Fichthorn, Henry V.
Nickel, and Allison D. Wood. Paul D. Clement, Mark
W. DeLaquil, Andrew M. Grossman, and David B.
Rivin, Jr. entered appearances.

E. Duncan Getchell, Jr., Solicitor General, Office of
the Attorney General for the Commonwealth of Vir-
ginia, argued the cause for State Petitioners Texas
and Virginia on Denial of Reconsideration of the
Endangerment Finding and State Petitioners and
Supporting Intervenors on Endangerment Finding Del-
egation Issues. With him on the briefs were Kenneth
T. Cuccinelli, II, Attorney General, Stephen R.
McCullough, Senior Appellate Counsel, Charles E.
James Jr., Chief Deputy Attorney General, and
Wesley G. Russell, Jr., Deputy Attorney General.

Greg Abbott, Attorney General, Office of the Attorney
General for the State of Texas, Bill Cobb, Deputy
Attorney General for Civil Litigation, J. Reed Clay,
Jr., Special Assistant and Senior Counsel to the
Attorney General, Jonathan F. Mitchell, Solicitor
General, Michael P. Murphy, Assistant Solicitor
General, Luther Strange III, Attorney General, Office
of the Attorney General for the State of Alabama,
Pamela Jo Bondi, Attorney General, Office of the

App. 4

Attorney General for the State of Florida, Gregory F.
Zoeller, Attorney General, Office of the Attorney
General for the State of Indiana, Jack Conway, Attor-
ney General, Office of the Attorney General for the
Commonwealth of Kentucky, James D. “Buddy”
Caldwell, Attorney General, Office of the Attorney
General for the State of Louisiana, Bill Schuette,
Attorney General, Office of the Attorney General for
the State of Michigan, John J. Bursch, Solicitor
General, Neil D. Gordon, Assistant Attorney General,
Gary C. Rikard, Jon Bruning, Attorney General,
Office of the Attorney General for the State of Ne-
braska, Katherine J. Spohn, Special Counsel to the
Attorney General, Wayne Stenehjem, Attorney Gen-
eral, Office of the Attorney General for the State of
North Dakota, Margaret Olson, Assistant Attorney
General, Scott Pruitt, Attorney General, Office of the
Attorney General for the State of Oklahoma, Alan
Wilson, Attorney General, Office of the Attorney
General for the State of South Carolina, Marty
Jackley, Attorney General, Office of the Attorney
General for the States [sic] of South Dakota, Roxanne
Giedd, Chief, Civil Litigation Division, Mark L.
Shurtleff, Attorney General, Office of the Attorney
General for the State of Utah, and Kenneth T.
Cuccinelli, Il, Attorney General, Office of the Attorney
General for the Commonwealth of Virginia were on
the briefs for State Petitioners and Supporting
Intervenors. Robert D. Tambling, Assistant Attorney
General, Office of the Attorney General for the State
of Alabama, entered an appearance.

App. 5

Christian J. Ward, Scott A. Keller, and April L. Farris
were on the brief for amici curiae Scientists in sup-
port of Petitioners.

Derek Schmidt, Attorney General, Office of the At-
torney General for the State of Kansas, and John
Campbell, Chief Deputy Attorney General, were on
the brief for amicus curiae State of Kansas in support
of Petitioners.

Martin R. Levin, Michael J. O’Neill, Donald M. Falk,
Mark S. Kaufman, Steven J. Lechner, and Richard P.
Hutchison were on the brief for amici curiae Land-
mark Legal Foundation, et al. in support of Peti-
tioners.

Jon M. Lipshultz and Angeline Purdy, Attorneys, U.S.
Department of Justice, argued the causes for re-
spondent. With them on the brief were John Hannon,
Carol Holmes, and Steven Silverman, U.S. Environ-
mental Protection Agency, Attorneys. Thomas A.
Lorenzen, Attorney, U.S. Department of Justice,
entered an appearance.

Carol Iancu, Assistant Attorney General, Office of the
Attorney General for the Commonwealth of Massa-
chusetts, argued the cause for State and Environ-
mental Intervenors in support of respondents. With
her on the briefs were Martha Coakley, Attorney
General, William L. Pardee, Attorney Assistant
General, Sean H. Donahue, Howard I. Fox, David S.
Baron, Megan Ceronsky, Vickie L. Patton, Peter
Zalzal, Kamala D. Harris, Attorney General, Office of
the Attorney General for the State of California,

App. 6

Kathleen A. Kenealy, Senior Assistant Attorney
General, Marc N. Melnick and Nicholas Stern, Dep-
uty Attorneys General, Joseph R. Biden, III, Attorney
General, Office of the Attorney General for the State
of Delaware, Valerie M. Satterfield, Deputy Attorney
General, George Jepsen, Attorney General, Office of
the Attorney General for the State of Connecticut,
Kimberly P. Massicotte, Matthew I. Levine, Scott N.
Koschwitz, Assistant Attorneys General, Lisa Madigan,
Attorney General, Office of the Attorney General for
the State of Illinois, Gerald T. Karr, Assistant Attor-
ney General, Thomas J. Miller, Attorney General,
Office of the Attorney General for the State of Iowa,
David R. Sheridan, Assistant Attorney General,
Douglas F. Gansler, Attorney General, Office of
the Attorney General for the State of Maryland, Mary
E. Raivel, Assistant Attorney General, Michael A.
Delaney, Attorney General, Office of the Attorney
General for the State of New Hampshire, K. Allen
Brooks, Senior Assistant Attorney General, William J.
Schneider, Attorney General, Office of the Attorney
General for the State of Maine, Gerald D. Reid,
Assistant Attorney General, Lori Swanson, Attorney
General, Office of the Attorney General for the State
of Minnesota, Jocelyn F. Olson, Assistant Attorney
General, Gary K. King, Attorney General, Office of
the Attorney General for the State of New Mexico,
Stephen R. Farris, Assistant Attorney General, Eric
T. Schneiderman, Attorney General, Office of the
Attorney General for the State of New York, Michael
J. Myers and Yueh-Ru Chu, Assistant Attorneys
General, John Kroger, Attorney General, Office of the

App. 7

Attorney General for the State of Oregon, Paul Logan,
Assistant Attorney-in-Charge, Robert M. McKenna,
Attorney General, Office of the Attorney General for
the State of Washington, Leslie R. Seffern, Assistant
Attorney General, Peter F. Kilmartin, Attorney
General, Office of the Attorney General for the State
of Rhode Island, Gregory S. Schultz, Special Assistant
Attorney General, William H. Sorrell, Attorney Gen-
eral, Office of the Attorney General for the State of
Vermont, Thea J. Schwartz, Assistant Attorney Gen-
eral, Christopher King, Assistant Corporation Coun-
sel, Corporation Counsel for the City Of New York,
Ann B. Weeks, Helen D. Silver, David Doniger,
Meleah Geertsma, Morgan Butler, Frank W. Rambo,
Joseph Mendelson II, Craig Holt Segall, and Joanne
Spalding.

Deborah Sivas, Douglas A. Ruley, Edward Lloyd, and
Susan J. Kraham were on the brief for amici curiae
America’s Great Waters Coalition, et al. in support of
respondent. James K. Thornton entered an appear-
ance.

Jonathan F. Mitchell, Solicitor General, Office of the
Attorney General for the State of Texas, argued the
cause for State Petitioners and Supporting Inter-
venor. With him on the briefs were Gregg Abbott,
Attorney General, Bill Cobb, Deputy Attorney Gen-
eral, J. Reed Clay, Jr., Special Assistant and Senior
Counsel to the Attorney General, Michael P. Murphy
and James P. Sullivan, Assistant Solicitors General,
Luther Strange, Attorney General, Office of the At-
torney General for the State of Alabama, Herman

App. 8

Robinson, Donald Trahan, Kathy M. Wright, Gary C.
Rikard, John Bruning, Attorney General, Office of
the Attorney General for the State of Nebraska,
Katherine J. Spohn, Special Counsel, Wayne
Stenehjem, Attorney General, Office of the Attorney
General for the State of North Dakota, Margaret
Olson, Assistant Attorney General, Alan Wilson,
Attorney General, Office of the Attorney General for
the State of South Carolina, J. Emory Smith, Jr.,
Assistant Deputy Attorney General, Marty Jackley,
Attorney General, Office of the Attorney General for
the State of South Dakota, Roxanne Giedd, Chief, and
Kenneth T. Cuccinelli, II, Attorney General, Office of
the Attorney General for the Commonwealth of
Virginia. Mark W. DeLaquil, Earle D. Getchelil, Jr.,
Assistant Attorney General, Office of the Attorney
General for the Commonwealth of Virginia, Andrew
M. Grossman, David B. Rivkin, Jr., and Robert D.
Tambling, Assistant Attorney General, Office of the
Attorney General for the State of Alabama, entered
appearances.

F. William Brownell and Peter Keisler argued the
causes for Non-State Petitioners and Supporting
Intervenors. With them on the briefs were Norman W.
Fichthorn, Henry V. Nickel, Allison D. Wood, Charles
H. Knauss, Shannon S. Broome, Timothy K. Webster,
Roger R. Martella, Eric Groten, Patrick R. Day, John
A. Bryson, Matthew G. Paulson, John P. Elwood, Paul
D. Phillips, James A. Holtkamp, Shannon L.
Goessling, Harry W. MacDougald, William H. Lewis,
Jr., Ronald J. Tenpas, Gordon R. Alphonso, Edward A.

App. 9

Kazmarek, Chet M. Thompson, Neal J. Cabral, Scott
C. Oostdyk, Richard P. Hutchison, John J. McMackin,
Jr., Robin S. Conrad, Sheldon Gilbert, Michael W.
Steinberg, Levi McAllister, Jeffrey A. Rosen, Robert
R. Gasaway, Jeffrey Bossert Clark, William H. Burgess,
Ashley C. Parrish, Cynthia A.M. Stroman, Ellen
Steen, Leslie Sue Ritts, Peter Glaser, Mark E. Nagle,
Terry J. Satterlee, Thomas J. Grever, Margaret
Claiborne Campbell, Bryon W. Kirkpatrick, Quentin
Riegel, Elizabeth Gaudio, Elizabeth Henry Warner,
Harry Moy Ng, Michele Marie Schoeppe, Thomas J.
Ward, and Peter H. Wyckoff. Mark A. Behrens, Paul
D. Clement, Matthew Dukes, Virginia L. Hudson, and
David B. Salmons entered appearances.

Jonathan S. Massey was on the brief for amicus
curiae Municipal Gas Commission of Missouri.

John G. Horne, Il, Samuel B. Boxerman and Leslie A.
Hulse were on the brief for amici curiae the Com-
monwealth of Kentucky and the American Chemistry
Council in support of petitioners. Angus Macbeth
entered an appearance.

Amanda Shafer Berman and Perry M. Rosen, At-
torneys, U.S. Department of Justice, argued the
causes for respondents. With them on the briefs were
Howard Hoffman, Elliott Zenick, Brian Doster, and
David Orlin, Counsel, U.S. Environmental Protection
Agency. Thomas A. Lorenzen and Kim N. Smaczniak,
Attorneys, U.S. Department of Justice, and John D.
Gunter, II and Michele L. Walter, Counsel, U-S.

App. 10

Environmental Protection Agency, entered appear-
ances.

Sean H. Donahue and Michael J. Myers argued the
causes for State and Environmental Intervenors
in support of respondents. With them on the briefs
were Vickie L. Patton, Pamela A. Campos, Megan
Ceronsky, Petere [sic] Zalzal, Eric T. Schneiderman,
Attorney General, Office of the Attorney General for
the State of New York, Barbara D. Underwood, Solici-
tor General, Morgan A. Costello, Assistant Attorney
General, Monica Wagner, Howard I. Fox, David S.
Baron, Lisa Madigan, Attorney General, Office of the
Attorney General for the State of Illinois, Gerald T.
Karr, Assistant Attorney General, Joanne Spalding,
Nathan Matthews, Craig Holt Segall, Kamala D.
Harris, Attorney General, Office of the Attorney
General for the State of California, Kathleen A.
Kenealy, Senior Assistant Attorney General, Susan
Durbin, Raissa Lerner, Marc N. Melnick, and Nicholas
Stern, Deputy Attorneys General, Martha Coakley,
Attorney General, Office of the Attorney General for
the Commonwealth of Massachusetts, William L.
Pardee and Carol Iancu, Assistant Attorneys Gen-
eral, David Doniger, Meleah Geertsma, William J.
Schneider, Attorney General, Office of the Attorney
General for the State of Maine, Gerald D. Ried,
Assistant Attorney General, Ann B. Weeks, Helen D.
Silver, Thomas J. Miller, Attorney General, Office of
the Attorney General for the State of Iowa, David R.
Sheridan, Assistant Attorney General, Douglas F.
Gansler, Attorney General, Office of the Attorney

App. 11

General for the State of Maryland, Mary Raivel,
Deputy Attorney General, Michael A. Delaney, Attor-
ney General, Office of the Attorney General for the
State of New Hampshire, K. Allen Brooks, Senior
Assistant Attorney General, Barbara Baird, William
B. Wong, Peter F. Kilmartin, Attorney General, Office
of the Attorney General for the State of Rhode Island,
Gregory S. Schultz, Special Assistant Attorney Gen-
eral, Frank Rambo, Morgan Butler, Gary K. King,
Attorney General, Office of the Attorney General for
the State of New Mexico, Stephen Farris, Assistant
Attorney General, John Kroger, Attorney General,
Office of the Attorney General for the State of Ore-
gon, Paul Logan, Assistant Attorney-in-Charge, Roy
Cooper, Attorney General, Office of the Attorney
General for the State of North Carolina, and J. Allen
Jernigan and Marc Bernstein, Special Deputy Attor-
neys General. Kenneth P. Alex and Gavin G. McCabe,
Deputy Assistant Attorneys General, Office of the
Attorney General for the State of California, entered

appearances.

Peter Glaser argued the cause for petitioners. With
him on the briefs were John P. Elwood, Eric Groten,
Patrick R. Day, John A. Bryson, Shannon L.
Goessling, Harry W. MacDougald, Paul D. Phillips,
James A. Holtkamp, Edward A. Kazmarek, Chet M.
Thompson, Sam Fazman, Hans Bader, Gordon R.
Alphonso, Richard P. Hutchison, Neal J. Cabral, Scott
C. Oostdyk, Ronald J. Tenpas, Michael W. Steinberg,
Levi McAllister, John J. McMackin Jr., Robin S.
Conrad, Rachel L. Brand, Sheldon Gilbert, F. William

App. 12

Brownell, Norman W. Fichthorn, Henry V. Nickel,
Allison D. Wood, Ashley C. Parrish, Cynthia A.M.
Stroman, Mark E. Nagle, Michael Higgins, Ellen
Steen, Timothy K. Webster, Roger R. Martella,
Matthew G. Paulson, Charles H. Knauss, Shannon S.
Broome, Quentin Riegel, Elizabeth Gaudio, Thomas
J. Ward, Harry Moy Ng, and Michele Marie Schoeppe.

Greg Abbott, Attorney General, Office of the Attorney
General for the State of Texas, Bill Cobb, Deputy
Attorney General for Civil Litigation, Jonathan F.
Mitchell, Solicitor General, J. Reed Clay Jr., Special
Assistant and Senior Counsel to the Attorney Gen-
eral, Michael P. Murphy, Assistant Solicitor General,
Luther Strange, Attorney General, Office of the At-
torney General for the State of Alabama, Samuel S.
Olens, Attorney General, Office of the Attorney Gen-
eral for the State of Georgia, John E. Hennelly, Senior
Assistant Attorney General, Gary C. Rikard, Jon C.
Bruning, Attorney General, Office of the Attorney
General for the State of Nebraska, Katherine J.
Spohn, Special Counsel to the Attorney General,
Wayne K. Stenehjem, Attorney General, Office of the
Attorney General for the State of North Dakota,
Margaret Olson, Assistant Attorney General, Alan
Wilson, Attorney General, Office of the Attorney
General for the State of South Carolina, J. Emory
Smith, Jr., Assistant Deputy Attorney General, Marty
Jackley, Attorney General, Office of the Attorney
General for the State of North Dakota, Roxanne
Giedd, Chief, Civil Litigation Division, and Kenneth
T. Cuccinelli, I], Attorney General, Office of the

App. 13

Attorney General for the Commonwealth of Virginia,
were on the briefs for State Petitioners and Support-
ing Intervenor. Paul D. Clement, James W. Coleman,
Wayne J. D’Angelo, Mark W. DeLaquil, E. Duncan
Getchell Jr., Solicitor General, Office of the Attorney
General for the Commonwealth of Virginia, Andrew
M. Grossman, Virginia L. Hudson, David B. Rivkin
Jr., and Robert D. Tambling, Assistant Attorney
General, Office of the Attorney General for the State
of Alabama, entered appearances.

Samuel B. Boxerman and Leslie A. Hulse were on the
brief for amicus curiae American Chemistry Council
in support of petitioners. Angus Macbeth entered an
appearance.

Eric G. Hostetler, Attorney, U.S. Department of Jus-
tice, argued the cause for respondents. With him on
the brief were John Hannon and Steven Silverman,
Attorneys, U.S. Environmental Protection Agency.

Raymond B. Ludwiszewski argued the cause for in-
tervenors Association of Global Automakers, et al.
With him on the brief were Kathleen M. Sullivan,
Sanford I. Weisburst, and William B. Adams.

Gavin G. McCabe, Deputy Attorney General, Office of
the Attorney General for the State of California,
argued the cause for intervenor State of California.
On the brief were Kamala D. Harris, Attorney Gen-
eral, Kathleen A. Kenealy, Senior Assistant Attorney
General, Marc N. Melnick and Nicholas Stern, Dep-
uty Attorneys General, Sean H. Donahue, Howard
I. Fox, David S. Baron, Pamela Campos, Megan

App. 14

Ceronsky, Vickie L. Patton, Peter Zalzal, Joseph R.
Biden, III, Attorney General, Office of the Attor-
ney General for the State of Delaware, Valerie M.
Satterfield, Deputy Attorney General, Thomas J.
Miller, Attorney General, Office of the Attorney
General for the State of Iowa, David R. Sheridan,
Assistant Attorney General, Douglas F. Gansler,
Attorney General, Office of the Attorney General for
the State of Maryland, Roberta R. James, Assistant
Attorney General, Lisa Madigan, Attorney General,
Office of the Attorney General for the State of Illinois,
Gerald T. Karr, Assistant Attorney General, William
T. Schneider, Attorney General, Office of the Attorney
General for the State of Maine, Gerald D. Reid,
Assistant Attorney General, Martha Coakley, Attor-
ney General, Office of the Attorney General for the
Commonwealth of Massachusetts, Carol Iancu, Tracy
Triplett, and William L. Pardee, Assistant Attorneys
General, Gary K. King, Attorney General, Office of
the Attorney General for the State of New Mexico,
Stephen R. Farris, Assistant Attorney General, John
Kroger, Attorney General, Office of the Attorney
General for the State of Oregon, Paul Logan, Assis-
tant Attorney-in-Charge, William H. Sorrell, Attorney
General, Office of the Attorney General for the State
of Vermont, Thea J. Schwartz, Assistant Attorney
General, Eric T. Schneiderman, Attorney General,
Office of the Attorney General for the State of New
York, Michael J. Myers and Yueh-Ru Chu, Assistant
Attorneys General, Peter F. Kilmartin, Attorney
General, Office of the Attorney General for the State
of Rhode Island, Gregory S. Schultz, Special Assistant

App. 15

Attorney General, Robert M. McKenna, Attorney
General, Office of the Attorney General for the State
of Washington, Leslie R. Seffern, Assistant Attorney
General, Christopher King, Assistant Corporation
Counsel, Corporation Counsel] for the City of New
York, Joanne Spalding, Craig Holt Segall, David
Doniger and Meleah Geertsma. Judith A. Stahl
Moore, Assistant Attorney General, Office of the
Attorney General for the State of New Mexico, and
John D. Walke entered appearances.

Richard E. Ayres, Jessica L. Olson, and Kristin L.
Hines were on the brief for amicus curiae Honeywell
International, Inc. in support of respondents.

Richard L. Revesz, Michael A. Livermore, and
Jennifer S. Rosenberg were on the brief for ami-
cus curiae Institute for Policy Integrity at New
York University School of Law in support of respon-
dents.

Timothy K. Webster, Roger R. Martella, Jr., James W.
Coleman, William H. Lewis, Jr., Ronald J. Tenpas,
Charles H. Knauss, Shannon S. Broome, Bryan M.
Killian, and Matthew G. Paulson were on the briefs
for petitioners. Peter D. Keisler, Leslie A. Hulse, and
Quentin Riegel entered appearances.

Amanda Shafer Berman and Perry M. Rosen, Attor-
neys, U.S. Department of Justice, and Elliott Zenick
and Howard J. Hoffman, Counsel, U.S. Environ-
mental Protection Agency, were on the brief for re-
spondents. Jon M. Lipshultz, Senior Counsel, U.S.
Department of Justice, entered and [sic] appearance.

App. 16

Ann Brewster Weeks, Sean H. Donahue, Vickie
Patton, Peter Zalzal, Joanne Spalding, Craig Segall,
David Doniger, and Meleah Geertsma were on the
brief of intervenors in support of respondents. David
S. Baron, Pamela A. Campos, Colin C. O’Brien, and
John D. Walke entered appearances.

Vera P. Pardee, Brendan R. Cummings, and Kevin P.
Bundy were on the brief for amicus curiae Center for
Biological Diversity in support of respondents.

Before: SENTELLE, Chief Judge; ROGERS and
TATEL, Circuit Judges.

Opinion for the Court filed PER CURIAM.
PER CURIAM:

Following the Supreme Court’s decision in Mas-
sachusetts v. EPA, 549 U.S. 497, 127 S.Ct. 1438, 167
L.Ed.2d 248 (2007) — which clarified that greenhouse
gases are an “air pollutant” subject to regulation
under the Clean Air Act (CAA) — the Environmental
Protection Agency promulgated a series of greenhouse
gas-related rules. First, EPA issued an Endanger-
ment Finding, in which it determined that green-
house gases may “reasonably be anticipated to
endanger public health or welfare.” See 42 U.S.C.
§ 7521(aX1). Next, it issued the Tailpipe Rule, which
set emission standards for cars and light trucks.
Finally, EPA determined that the CAA requires major
stationary sources of greenhouse gases to obtain
construction and operating permits. But because
immediate regulation of all such sources would result

App. 17

in overwhelming permitting burdens on permitting
authorities and sources, EPA issued the Timing and
Tailoring Rules, in which it determined that only the
largest stationary sources would initially be subject to
permitting requirements.

Petitioners, various states and industry groups,
challenge all these rules, arguing that they are based
on improper constructions of the CAA and are other-
wise arbitrary and capricious. But for the reasons set
forth below, we conclude: 1) the Endangerment Find-
ing and Tailpipe Rule are neither arbitrary nor capri-
cious; 2) EPA’s interpretation of the governing CAA
provisions is unambiguously correct; and 3) no peti-
tioner has standing to challenge the Timing and
Tailoring Rules. We thus dismiss for lack of jurisdic-
tion all petitions for review of the Timing and Tailor-
ing Rules, and deny the remainder of the petitions.

I.

We begin with a brief primer on greenhouse
gases. As their name suggests, when released into the
atmosphere, these gases act “like the ceiling of a
greenhouse, trapping solar energy and retarding the
escape of reflected heat.” Massachusetts v. EPA, 549
U.S. at 505, 127 S.Ct. 1438. A wide variety of modern
human activities result in greenhouse gas emissions;
cars, power plants, and industrial sites all release
significant amounts of these heat-trapping gases.
In recent decades “[a] well-documented rise in global
temperatures has coincided with a _ significant

App. 18

increase in the concentration of [greenhouse gases] in
the atmosphere.” Jd. at 504-05, 127 S.Ct. 1438. Many
scientists believe that mankind’s greenhouse gas
emissions are driving this climate change. These
scientists predict that global climate change will
cause a host of deleterious consequences, including

drought, increasingly severe weather events, and
rising sea levels.

The genesis of this litigation came in 2007, when
the Supreme Court held in Massachusetts v. EPA that
greenhouse gases “unambiguous[ly!” may be regu-
lated as an “air pollutant” under the Clean Air Act
(“CAA”). Id. at 529, 127 S.Ct. 1438. Squarely rejecting
the contention — then advanced by EPA — that
“greenhouse gases cannot be ‘air pollutants’ within
the meaning of the Act,” id. at 513, 127 S.Ct. 1438,
the Court held that the CAA’s definition of “air pollu-
tant” “embraces all airborne compounds of whatever
stripe.” Id. at 529, 127 S.Ct. 1438 (emphasis added).
Moreover, because the CAA requires EPA to establish
motor-vehicle emission standards for “any air pollu-
tant ... which may reasonably be anticipated to
endanger public health or welfare,” 42 U.S.C.
§ 7521(aX1) (emphasis added), the Court held that
EPA had a “statutory obligation” to regulate harmful
greenhouse gases. Id. at 534, 127 S.Ct. 1438. “Under
the clear terms of the Clean Air Act,” the Court
concluded, “EPA can avoid taking further action only
if it determines that greenhouse gases do not contrib-
ute to climate change or if it provides some reason-
able explanation as to why it cannot or will not

App. 19

exercise it discretion to determine whether they do.”
Id. at 533, 127 S.Ct. 1438. The Court thus directed
EPA to determine “whether sufficient information
exists to make an endangerment finding” for green-
house gases. Id. at 534, 127 S.Ct. 1438.

Massachusetts v. EPA spurred a cascading series
of greenhouse gas-related rules and regulations.
First, in direct response to the Supreme Court’s
directive, EPA issued an Endangerment Finding for
greenhouse gases. Endangerment and Cause or
Contribute Findings for Greenhouse Gases Under
Section 202(a) of the Clean Air Act (“Endangerment
Finding”), 74 Fed. Reg. 66,496 (Dec. 15, 2009). The
Endangerment Finding defined as a single “air pol-
lutant” an “aggregate group of six long-lived and
directly-emitted greenhouse gases” that are “well
mixed” together in the atmosphere and cause global
climate change: carbon dioxide, methane, nitrous ox-
ide, hydrofluorocarbons, perfluorocarbons, and sulfur
hexafluoride. Jd. at 66,536-37. Following “common
practice,” EPA measured the impact of these gases on
a “carbon dioxide equivalent basis,” (CO,e) which is
based on the gases’ “warming effect relative to carbon
dioxide .. . over a specified timeframe.” Jd. at 66,519.
(Using the carbon dioxide equivalent equation, for
example, a mixture of X amount of nitrous oxide and
Y amount of sulfur hexafluoride is expressed as Z
amount of CO,e). After compiling and considering a
considerable body of scientific evidence, EPA con-
cluded that motor-vehicle emissions of these six well-
mixed gases “contribute to the total greenhouse gas

App. 20

air pollution, and thus to the climate change problem,
which is reasonably anticipated to endanger public
health and welfare.” Id. at 66,499.

Next, and pursuant to the CAA’s requirement
that EPA establish motor-vehiclé emission standards
for “any air pollutant ... which may reasonably be
anticipated to endanger public health or welfare,” 42
U.S.C. §7521(aX1), the agency promulgated its
Tailpipe Rule for greenhouse gases. Light-Duty Vehi-
cle Greenhouse Gas Emission Standards and Corpo-
rate Average Fuel Economy Standards; Final Rule
(“Tailpipe Rule”), 75 Fed. Reg. 25,324 (May 7, 2010).
Effective January 2, 2011, the Tailpipe Rule set
greenhouse gas emission standards for cars and light
trucks as part of a joint rulemaking with fuel econ-
omy standards issued by the National Highway
Traffic Safety Administration (NHTSA). Id. at 25,326.

Under EPA’s longstanding interpretation of the
CAA, the Tailpipe Rule automatically triggered reg-
ulation of stationary greenhouse gas emitters under
two separate sections of the Act. The first, the Pre-
vention of Significant Deterioration of Air Quality
(PSD) program, requires state-issued construction
permits for certain types of stationary sources — for
eyample, iron and steel mill plants — if they have the
potential to emit over 100 tons per year (tpy) of “any
air pollutant.” See 42 U.S.C. §§ 7475; 7479(1). All
other stationary sources are subject to PSD permit-
ting if they have the potential to emit over 250 tpy of
“any air pollutant.” Jd. § 7479(1). The second provi-
sion, Title V, requires state-issued operating permits

App. 21

for stationary sources that have the potential to emit
at least 100 tpy of “any air pollutant.” Id. § 7602(j).
EPA has long interpreted the phrase “any air pollu-
tant” in both these provisions to mean any air
pollutant that is regulated under the CAA. See
Requirements for Preparation, Adoption, and Submit-
tal of Implementation Plans; Approval and Promulga-
tion of Implementation Plans (“1980 Implementation
Plan Requirements”), 45 Fed. Reg. 52,676, 52,711
(Aug. 7, 1980) (PSD program); Prevention of Signifi-
cant Deterioration and Title V Greenhouse Gas Tailor-
ing Rule (“Tailoring Rule”), 75 Fed. Reg. 31,514,
31,553-54 (June 3, 2010) (discussing history of Title V
regulation and applicability). And once the Tailpipe
Rule set motor-vehicle emission standards for green-
house gases, they became a regulated pollutant under
the Act, requiring PSD and Title V greenhouse per-
mitting.

Acting pursuant to this longstanding interpreta-
tion of the PSD and Title V programs, EPA issued two
rules phasing in stationary source greenhouse gas
regulation. First, in the Timing Rule, EPA concluded
that an air pollutant becomes “subject to regulation”
under the Clean Air Act — and thus subject to PSD
and Title V permitting — only once a regulation re-
quiring control of that pollutant takes effect. Recon-
sideration of Interpretation of Regulations That
Determine Pollutants Covered by Clean Air Act Per-
mitting Programs (“Timing Rule”), 75 Fed. Reg.
17,004 (Apr. 2, 2010). Therefore, EPA concluded,
major stationary emitters of greenhouse gases would

App. 22

be subject to PSD and Title V permitting regulations
on January 2, 2011 — the date on which the Tailpipe
Rule became effective, and thus, the date when
greenhouse gases first became regulated under the
CAA. Id. at 17,019.

Next, EPA promulgated the Tailoring Rule. In the
Tailoring Rule, EPA noted that greenhouse gases are
emitted in far greater volumes than other pollutants.
Indeed, millions of industrial, residential, and com-
mercial sources exceed the 100/250 tpy statutory
emissions threshold for CO,e. Tailoring Rule, 75 Fed.
Reg. at 31,534-36. Immediately adding these sources
to the PSD and Title V programs would, EPA predict-
ed, result in tremendous costs to industry and state
permitting authorities. See id. As a result, EPA
announced that it was “relieving overwhelming
permitting burdens that would, in the absence of this
rule, fall on permitting authorities and sources.” Id.
at 31,516. Departing from the CAA’s 100/250 tpy
emissions threshold, the Tailoring Rule provided that
only the largest sources — those exceeding 75,000 or
100,000 tpy CO,e, depending on the program and
project — would initially be subject to greenhouse gas
permitting. /d. at 31,523. (The Tailoring Rule further
provided that regulated sources must also emit
greenhouse gases at levels that exceed the 100/250
tpy emissions threshold on a mass basis. That is, they
must emit over 100/250 tpy of actual pollutants, in
addition to exceeding the 75,000/100,000 tpy carbon
dioxide equivalent. Jd. at 31,523.)

App. 23

A number of groups — including states and regu-
lated industries — filed petitions for review of EPA's
greenhouse gas regulations, contending that the
agency misconstrued the CAA and otherwise acted
arbitrarily and capriciously. This appeal consolidates
the petitions for review of the four aforementioned
rules: the Endangerment Finding, the Tailpipe Rule,
the Timing Rule, and the Tailoring Rule.

“The Clean Air Act empowers us to reverse the
Administrator’s action in rulemaking if it is ‘arbi-
trary, capricious, an abuse of discretion, or otherwise
not in accordance with the law.’” Med. Waste Inst. &
Energy Recovery Council v. EPA, 645 F.3d 420, 424
(D.C.Cir.2011) (quoting 42 U.S.C. § 7607(d)(9)(A)).
Questions of statutory interpretation are governed by
the familiar Chevron two-step: “First . . . if the intent
of Congress is clear, that is the end of the matter; for
the court, as well as the agency, must give effect to
the unambiguously expressed intent of Congress.”
Chevron, U.S.A. Inc. v. Natural Resources Defense
Council, Inc., 467 U.S. 837, 842-43, 104 S.Ct. 2778, 81
L.Ed.2d 694 (1984). But “if the statute is silent or
ambiguous with respect to the specific issue, the
question for the court is whether the agency’s answer
is based on a permissible construction of the statute.”
Id. at 843, 104 S.Ct. 2778.

This opinion proceeds in several steps. Part II
explains why the Endangerment Finding was neither
arbitrary nor capricious, while Part III does the same
for the Tailpipe Rule. Turning to stationary source
regulation, Part IV examines whether any petitioners

App. 24

may timely challenge EPA’s !ongstanding interpreta-
tion of the PSD statute. Because we conclude that
they may, Part V addresses the merits of their statu-
tory arguments, and explains why EPA’s interpreta-
tion of the CAA was compelled by the statute. Next,
Part VI explains why petitioners lack standing to
challenge the Timing and Tailoring Rules themselves.
Finally, Part VII disposes of several arguments that
have nothing to do with the rules under review, and
thus are not properly before us.

IT.

We turn first to State and Industry Petitioners’
challenges to the Endangerment Finding, the first of
the series of rules EPA issued after the Supreme
Court remanded Massachusetts v. EPA. In the deci-
sion ordering the remand, the Supreme Court held
that EPA had failed in its statutory obligations when
it “offered no reasoned explanation for its refusal to
decide whether greenhouse gases cause or contribute
to cimate change.” Massachusetts v. EPA, 549 U.S. at
534, 127 S.Ct. 1438. On remand, EPA compiled a
substantial scientific record, which is before us in the
present review, and determined that “greenhouse
gases in the atmosphere may reasonably be antici-
pated both to endanger public

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385015_0897%3A0. Public record. Not legal advice.
