Record and brief — Chamber of Commerce of the United States v. Envtl. Prot. Agency
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UPREME COURT
F THE UNITED STATES
No. 12-1272
Vide 12-1146, 12-
1248, 12-1254,
12-1268, 12-1269
Title: Chamber of Commerce of the United States, et al., Petitioners
V
Environmental Protection Agency, et al.
Docketed: April 24, 2013
Linked with 12A871
Lower Ct United States Court of Appeals for the District of Columbia Circuit
Case Nos. (09-1322, et al.)
Decision Date: June 26, 2012
Rehearing
Denied: December 20, 2012
Questions
Presented
~~~Date~~~ ~~~~~~~Proceedings and Orders
Mar 5 2013 Application (12A871) to extend ine time to file a petition for a writ of certioran
from March 20, 2013 to April 19, 2013, submitted to The Chief Justice
Mar 7 2013 Application (12A871) granted by The Chief Justice extending the time to file
until April 19, 2013.
Mar 14 2013 Application (12A909) 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 18 2013 Application (12A920) 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 20 2013 Application (12A909) granted by The Chief Justice extending the time to file
until April 19, 2013.
Mar 25 2013 Application (12A920) granted by The Chief Justice extending the time to file
until April 19, 2013.
Apr 19 2013 Petition for a writ of certioran filed. (Response due May 24, 2013)
Apr 19 2013 Appendix of Chamber of Commerce of the United States, et al. filed. (Volumes
I-V)
May 8 2013 Consent to the filing of amicus cunae briefs, in support of either party or of
neither party, received from counsel for Texas, and eight other states.
May 9 2013 Response in support of the petition for writ of certioran from respondent
Peabody Energy Corporation filed.
May 13 2013 Consent to the filing of amicus curiae briefs, in support of either party or of
neither party, received from counsel for 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 14 2013 Letter of respondent National Environmental Development Association's Clean
Air Project in support of petition
May 16 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
May 21 2013 Waiver of right of respondent Pamela Jo Bondi, Attorney General of Florida to
respond filed.
May 23 2013 Bnef amici cunae of Scientists filed VIDED.
May 24 2013 Brief amicus curiae of Institute for Trade, Standards and Sustainable
Development filed.
May 24 2013 Bnef amicus cunae of Mountain States Legal Foundation filed.
May 24 2013 Brief amici curiae of Economists Thomas C. Schelling, Vernon L. Smith, and
Robert W. Hahn filed.
May 24 2013 Brief amici curiae of Administrative Law Professors, and The Judicial Education
Jun 6 2013
Jun 7 2013
Jun 7 2013
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
Project filed.
Order further extending time to file response to petition to and including July
22, 2013, for all respondents.
Application (12A1181) to file consolidated brief in opposition in excess of word
limits, submitted to The Chief Justice.
Application (12A1181) to file consolidated brief in opposition in excess of word
limits granted by The Chief Justice. The consolidated brief in opposition may
not exceed 12,000 words.
Application (13A35) to file consolidated brief in opposition in excess of word
limits, submitted to The Chief Justice.
Application (13A35) to file consolidated brief in opposition in excess of word
limits granted by The Chief Justice. The consolidated brief in opposition may
not exceed 11,000 words.
Bnef of respondents Environmental Protection Agency, et al. in opposition filed
VIDED.
Brief of Environmental Organization respondents in opposition filed. VIDED.
Brief of respondents New York, et al. in opposition filed. VIDED.
Reply of petitioners Chamber of Commerce of the United States, 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, Inc., et el. 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 briefs of petitioners shall not
exceed 45,000 words in aggregate. The briefs of respondents in support of
petitioners shal! not exceed 6,000 words each. The brief 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
Nov 12013 Consent from petitioner Utility Air Regulatory Group to the filing of amicus
curiae briefs in support of either party or neither party. VIDED.
Nov 12013 The time to file joint appendix, petitioners’ briefs on the merits, and bnefs of
respondents in support of petitioners is extended to and including December 9,
2013. VIDED
Nov 12013 The time to file respondents’ bnefs on the merits is extended to and including
January 21, 2014. VIDED
Nov 12013 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.
Nov 72013 Consent to the filing of amicus curiae briefs, in support of either party, or of
neither party, received from counsel for Texas, et al. VIDED.
Nov 8 2013 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.
Nov 8 2013 Consent to the filing of amicus curiae briefs, in support of either party or of
niether party, received from counsel for Coalition for Responsible Regulation,
inc., et al. VIDED.11082013
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 12 2013 Letter received from counsel for the Automobile Respondents. 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, recieved 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, 2014
Dec 92013 Consent to the filing of amicus curiae briefs, in support of either party or of
neither party, received from counsel for the National Mining Association.
VIDED.
Dec 92013 Brief of respondents Coalition for Responsible Regulation, |nc., 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 Brief of petitioners Southeastem 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 Brief of petitioner Utility Air Regulatory Group filed. VIDED.
Dec 12 2013 Brief 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 Bnef amici curiae of Economists Thomas C. Schelling, et al. filed. VIDED.
Dec 16 2013 Brief 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 Lega! Foundation filed. VIDED.
Dec 16 2013 Brief 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 Brief amici cunae of State and Local Chambers of Commerce, and Other
Business Associations. filed. VIDED.
Dec 16 2013 Bnef amici curiae of Administrative Law Professors, et al. filed. VIDED
(Distributed)
Dec 16 2013 Bnef amicus curiae of American Road & Transportation Builders Association in
support of neither party filed. VIDED. (Distributed)
Dec 16 2013 Bnef 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 Bnref 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
Schoo! 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.
(Distnbuted)
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 12-1272 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. Verrilli, Jr., Solicitor General, Department of Justice,
Washington, D. C.
PETITION
FOR
WRIT OF
CERTIORARI
RECORD 1 9 -19 79 Snare Con UE
APR 19 2013
OFFICE OF THE Cr ea :¢
3n the Supreme Court of the United States
CHAMBER OF COMMERCE OF THE UNITED STATES
OF AMERICA, STATE OF ALASKA, AND
AMERICAN FARM BUREAU FEDERATION,
Petitioners,
v.
ENVIRONMENTAL PROTECTION AGENCY, ET AL.,
Respondents.
ON PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE DISTRICT OF COLUMBIA CIRCUIT
PETITION FOR A WRIT OF CERTIORARI
RACHEL L. BRAND ROBERT R. GASAWAY
SHELDON GILBERT Counsel of Record
National Chamber JEFFREY A. ROSEN, P.C.
Litigation Center, Inc. JEFFREY BOSSERT CLARK
1615 H Street, NW ADITYA BAMZAI
Washington, DC 20062 WILLIAM H. BURGESS
(202) 463-5337 Kirkland & Ellis LLP
655 Fifteenth Street, N.W.
MICHAEL C. GERAGHTY Washington, DC 20005
Attorney General robert.gasaway@kirkland.com
STEVEN E. MULDER (202) 879-5000
State of Alaska
1031 W. 4th Avenue Counsel for Petitioner
Anchorage, AK 99501 Chamber of Commerce of the
(907) 269-5274 United States of America
[Additional Counsel Listed on Signature Page]
anata rene eetemneenl eaiidaiitldtintiadiennamtantateneeiemmnmenteennt innit
WILSON-EPES PRINTING Co., Inc. — (202) 789-0086 — WASHINGTON, D.C. 20002
of Congress
oo
QUESTIONS PRESENTED
The Environmental Protection Agency (“EPA”)
promulgated a series of four broad-ranging and inter-
connected rules to control emissions of greenhouse
gases. In proposing the last rule in the sequence,
EPA acknowledged that it would create a result “so
contrary to what Congress had in mind — and that in
fact so undermines what Congress attempted to ac-
complish with the [statute’s] requirements — that it
should be avoided under the ‘absurd results’ doc-
trine.” App. 1837a. EPA nonetheless finalized the
rule and then, in an attempt to cure the absurdity,
rewrote codified limitations in the Clean Air Act.
The questions presented are:
1. Whether, once an agency has identified absurd
results produced by its construction of a complex
statutory scheme as a whole, the agency may deem
the identified absurdity irrelevant to the construction
of some individual provisions within the scheme and
a justification for rewriting others.
2. Whether EPA’s determination that greenhouse
gases “may reasonably be anticipated to endanger
public health or welfare” and otherwise are regulable
under section 202(a)(1) of the Clean Air Act, 42
U.S.C. § 7521(a)(1), was “not in accordance with law”
or was “arbitrary, capricious, {and} an abuse of dis-
cretion,” § 7607(d)(9)(A).
3. Whether EPA incorrectly determined that all
“air pollutants” regulated by the agency under the
Clean Air Act’s motor vehicle emissions provision, 42
U.S.C. § 7421(a)(1), must also be regulated under the
Act's Prevention of Significant Deterioration of Air
Quality and Title V programs when emitted from sta-
tionary sources.
‘:
RULE 14.1(b) STATEMENT
Petitioners are the Chamber of Commerce of the
United States of America, State of Alaska, and Amer-
ican Farm Bureau Federation. The Chamber of
Commerce of the United States of America was peti-
tioner or petitioner-intervenor as to all of the chal-
lenged agency actions addressed by the consolidated
judgment below. The State of Alaska and the Ameri-
can Farm Bureau Federation were petitioners and/or
petitioner-intervenors in cases addressed by the con-
solidated judgment below.
Respondents herein, who were also respondents in
the cases below, are the Environmental Protection
Agency and the Administrator of the Environmental
Protection Agency. Lisa P. Jackson held the office of
Administrator until February 15, 2013, and Robert
Perciasepe currently holds that office in an acting ca-
pacity.
Other parties who were petitioners in the cases
addressed by the consolidated judgment below are
the following: American Chemistry Council; Ameri-
can Frozen Food Institute; American Fuel & Petro-
chemical Manufacturers; American Iron and Steel In-
stitute; American Petroleum Institute; Brick Industry
Association; Clean Air Implementation Project; Corn
Refiners Association; Glass Association of North
America; Independent Petroleum Association of
America; Indiana Cast Metals Association; Michigan
Manufacturers Association; Mississippi Manufactur-
ers Association; National Association of Home Build-
ers; The National Association of Manufacturers; Na-
tional Federation of Independent Business; National
Oilseed Processors Association; North American Die
Casting Association; Portland Cement 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; Greg Abbott, Attorney General of Texas; Al-
pha Natural Resources, Inc.; Michele Bachmann, U.S.
Representative, Minnesota 6th District; Haley Bar-
bour, Governor of the State of Mississippi; Marsha
Blackburn, U.S. Representative, Tennessee 7th Dis-
trict; Kevin Brady, U.S. Representative, Texas 8th
District; Paul Broun, U.S. Representative, 10th Dis-
trict; Dan Burton, U.S. Representative, Indiana 5th
District; Glass Packaging Institute; Coalition for Re-
sponsible Regulation, Inc.; Collins Industries, Inc.;
Collins Trucking Company, Inc.; Commonwealth of
Virginia; Competitive Enterprise Institute; Nathan
Deal, U.S. Representative, Georgia 9th District; En-
ergy-Intensive Manufacturers’ Working Group on
Greenhouse Gas Regulation; Freedom Works; the Sci-
ence and Environmental Policy Project; Georgia Ag-
ribusiness Council, Inc.; Georgia Coalition for Sound
Environmental Policy, Inc.; Georgia Motor Trucking
Association, Inc.; Gerdau Ameristeel US Inc.; Phil
Gingrey, U.S. Representative, Georgia 11th District;
Great Northern Project Development, L.P.; Industrial
Minerals Association—North America; J&M Tank
Lines, Inc.; Kennesaw Transportation, Inc.; Steve
King, U.S. Representative, Iowa 5th District; Jack
Kingston, U.S. Representative, Georgia Ist District;
Landmark Legal Foundation; Langboard, Inc.-MDF;
Langboard, Inc.-OSB; Langdale Chevrolet-Pontiac,
Inc.; The Langdale Company; Langdale Farms, LLC;
Langdale Ford Company; Langdale Forest Products
Company; Langdale Fuel Company; Mark R. Levin;
John Linder, U.S. Representative, Georgia 7th Dis-
trict; Louisiana Department of Environmental Quali-
iv
ty; Missouri Joint Municipal Electric Utility Commis-
sion; National Cattlemen’s Beef Association; National
Environmental Development Association’s Clean Air
Project; National Mining Association; Ohio Coal As-
sociation; Pacific Legal Foundation; Peabody Energy
Company; Rick Perry, Governor of Texas; Tom Price,
U.S. Representative, Georgia 6th District; Dana
Rohrabacher, U.S. Representative, California 46th
District; Rosebud Mining Co.; John Shadegg, U.S.
Representative, Arizona 3rd District; John Shimkus,
U.S. Representative, Illinois 19th District; South
Carolina Public Service Authority; Southeast Trailer
Mart, Inc.; Southeastern Legal Foundation, Inc.;
State of Alabama; State of Nebraska; State of North
Dakota; State of South Carolina; State of South Da-
kota; State of Texas; Texas Agriculture Commission;
Texas Commission on Environmental Quality; Texas
General Land Office; Texas Public Utilities Commis-
sion; Texas Railroad Commission; Utility Air Regula-
tory Group; and Lynn Westmoreland, U.S. Repre-
sentative, Georgia 3rd District.
Intervenors for petitioners in cases addressed by
the consolidated judgment below—other than peti-
tioners herein—include Alpha Natural Resources,
Inc.; American Frozen Food Institute; American Fuel
& Petrochemical Manufacturers; American Petrole-
um Institute; Arkansas State Chamber of Commerce;
Associated Industries of Arkansas; Brick Industry
Association; Coalition for Responsible Regulation,
Inc.; Colorado Association of Commerce & Industry;
Commonwealth of Kentucky; Corn Refiners Associa-
tion; Glass Association of North America; Glass
Packaging Institute: Governor of Mississippi Haley
Barbour; Great Northern Project Development, L.P.;
Idaho Association of Commerce and Industry; Inde-
v
pendent Petroleum Association of America; Indiana
Cast Metals Association; Industrial Minerals Associa-
tion North America; Kansas Chamber of Commerce
and Industry; Langdale Farms, LLC; Langdale Fuel
Company; Langdale Chevrolet-Pontiac, Inc; Langdale
Ford Company; Langboard, Inc--MDF; Langboard,
Inc.—OSB; Louisiana Department of Environmental
Quality; Louisiana Oil and Gas Association; Michigan
Manufacturers Association; Mississippi Manufactur-
ers Association; National Association of Manufactur-
ers; National Association of Home Builders; National
Cattlemen’s Beef Association; National Electrical
Manufacturers Association; National Environmental
Development Association’s Clean Air Project; Nation-
al Federation of Independent Business; National
Mining Association; National Oilseed Processors As-
sociation; Nebraska Chamber of Commerce and In-
dustry; North American Die Casting Association;
Ohio Coal Association; Ohio Manufacturers Associa-
tion; Peabody Energy Company; Pennsylvania Manu-
facturers Association; Portland Cement Association;
Rosebud Mining Company; South Coast Air Quality
Management District; Specialty Steel Industry of
North America; State of Florida; State of Georgia;
State of Indiana; State of Louisiana; State of Michi-
gan; State of Nebraaka; State of North Dakota; State
of Oklahoma; State of South Carolina; State of South
Dakota; State of Utah; Steel Manufacturers Associa-
tion; Tennessee Chamber of Commerce and Industry;
Utility Air Regulatory Group; Virginia Manufactur-
ers Association; Western States Petroleum Associa-
tion; West Virginia Manufacturers Association; and
Wisconsin Manufacturers & Commerce.
Intervenors for respondents in cases addressed by
the consolidated judgment below include Alliance of
vi
Automobile Manufacturers; Association of Global Au-
tomakers; Center for Biological Diversity; City of
New York; Commonwealth of Massachusetts; Con-
servation Law Foundation; Environmental Defense
Fund; Georgia ForestWatch; Global Automakers; In-
diana Wildlife Federation; Michigan Environmental
Council; Natural Resources Council of Maine; Natu-
ral Resources Defense Council; National Wildlife
Federation; Ohio Environmental Council; Pennsylva-
nia Department of Environmental Protection; Sierra
Club; South Coast Air Quality Management District;
State of California; State of Connecticut; State of
Delaware; State of Illinois; State of Iowa; State of
Maine; State of Maryland; State of Minnesota; State
of New Hampshire; State of New Mexico; State of
New York; State of North Carolina; State of Oregon;
State of Rhode Island; State of Vermont; State of
Washington; Wetlands Watch; and Wild Virginia.
RULE 29.6 STATEMENT
No petitioner has a parent company, and no pub-
licly-held corporation has a 10% or greater ownership
interest in any petitioner.
vil
TABLE OF CONTENTS
Page(s)
QUESTIONS PRESENTED .............0.........cccceeeeeeeeeeeeee i
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PETITION FOR A WRIT OF CERTIORARI.............. 1
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(TES aT eT 1
STATUTORY PROVISIONS INVOLVED.................. 1
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A. Statutory and regulatory framework.......... 4
i RI i sicinicitcasreeciniinticdigaribinaninniicise 7
REASONS FOR GRANTING THE PETITION........ 17
1. EPA improperly deployed the “absurd
I Se iui dicincturcneiaincncnititaninsinbiniicumanianinuweniis 18
II. EPA improperly failed to construe the
CAA in a manner that would avoid the
absurdity that resulted from its own
IID, siiictenssisihtnnindsonicicnnitesinniasecmecsesess 21
A. EPA incorrectly construed section
202(a)(1)'s requirement that an air
pollutant “reasonably be anticipated
to endanger public health or
SITET" aeLeclinshtecicsnntclaiasicsncioenindnaiesinaicnisiniiclaspidebenndintds 21
B. EPA incorrectly determined that any
“air pollutant” regulated pursuant to
section 202(a) must also be regulated
under the PSD program. ........................... 28
C. EPA incorrectly exercised its
delegated authority in regulating
In cesiasutihieblasipeiticandinitadipdlndababammdbiinmonniédeineuens 29
Ill. This case presents recurring questions
of national importance. ...........................-.000++ 31
Se TIIIITIET snicinnussivishbnsdniitbicnetennaniinibaginnalabeninantidadnd 34
APPENDIX CONTENTS
VOLUME I
U.S. Court of Appeals for the D.C. Circuit
Panel opinion, 684 F.3d 102
cc ateteinininhaitininedoniannnd la
Judgment
I atin eallaiatens 95a
Order denying rehearing en banc
RS EE 99a
Statement of Chief Judge Sentelle, and
Circuit Judges Rogers and Tatel,
concurring in denial of
rehearing en banc (Dec. 20, 2012)................... 103a
Statement of Circuit Judge Brown,
dissenting from denial of
rehearing en banc (Dec. 20, 2012)................... 107a
ix
Statement of Circuit Judge Kavanaugh,
dissenting from denial of
rehearing en banc (Dec. 20, 2012)................... 133a
Order denying panel rehearing
it nat iealaiminncntiins 156a
Order re: briefing in “Endangerment Rule”
I I oa iscemcendeinibiitiideesbennanon 160a
Order re: briefing in “Tailpipe Rule” cases
Gs NUTT si crsiinsiettadliinetibesdiddsigsinbdeniiiiabinenanniines 164a
Order re: briefing in
“Timing Rule and Tailoring
Rule” cases (Mar. 21, 2011).........................200- 168a
Order re: briefing in “Historic Regulations”
I iene 172a
Order granting Motion for Coordination
of Related Cases (Dec. 10, 2010)..................... 176a
VOLUME II
Federal Register Notices
EPA, Endangerment and Cause or Contribute Find-
ings for Greenhouse Gases Under
Section 202(a) of the Clean Air Act;
Final Rule,
74 Fed. Reg. 66,496 (Dec 15, 2009) ...........000.-. 180a
EPA, Denial of the Petitions to Reconsider
the Endangerment and Cause or
Contribute Findings for Greenhouse
Gases under Section 202(a) of the
Clean Air Act; Final Rule,
75 Fed. Reg. 49,556 (Aug. 13, 2010) ............... 413a
x
EPA, Reconsideration of Interpretation of
Regulations That Determine Pollutants
Covered by Clean Air Act Permitting
Programs; Final Rule,
75 Fed. Reg. 17,004 (Apr. 2, 2010).................. 598a
VOLUME III
EPA, Prevention of Significant Deterioration
and Title V Greenhouse Gas Tailoring
Rule; Final Rule,
75 Fed. Reg. 31,514 (June 3, 2010)................. 690a
VOLUME IV
EPA, Regulating Greenhouse Gas Emissions
Under the Clean Air Act; Advance
Notice of Proposed Rulemaking,
73 Fed. Reg. 44,354 (July 30, 2008).............. 1126a
VOLUME V
EPA, Prevention of Significant Deterioration
and Title V Greenhouse Gas Tailoring
Rule; Proposed Rule,
74 Fed. Reg. 55,292 (Oct. 27, 2009) ............. 1756a
Statutes
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A EEE ENT
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Miscellaneous
Motion for Coordination of Related Cases
I i etic
Chamber of Commerce of the United States
of America’s Combined Petition for Panel
Rehearing or for Rehearing en banc
I Sn i neti parcial ctcetenecnncnnncinnine
sii
TABLE OF AUTHORITIES
Page(s)
Cases
Babbitt v. Sweet Home Chapter of Communities
for a Great Oregon,
I i eseiaideneenl 23
CSX Transp., Inc. v. McBride,
earn 23
Environmental Defense v. Duke Energy Corp.,
8 fT eae 29
Ethyl Corp. v. EPA,
Be LR 23
FDA v. Brown & Williamson Tobacco Corp.,
S&T ener EneE 17, 19, 30
Free Enterprise Fund v. Public Company
Accounting Oversight Board,
kL eT 32
Hamdan v. Rumsfeld,
leet 32
Kloeckner v. Solis,
ne ee, Ce. suieunesesasueuenusedsednmeens 3
Massachusetts v. EPA,
Be I I i cc cccncinnncisicinnenmmennnnasen 3, 4, 6, 7, 9,
PRE ne aN ea OE Paes 15, 22, 23, 27, 28, 29, 30
MCI Telecommunications Corp. v. AT&T Co.,
I satenliumnednctinnniesainan 30
Mova Pharm. v. Shalala,
140 F.3d 1060 (D.C. Cir. 1998).....................cceceeees 19
NLRB v. Federbush Co.,
eB 19
NRDC, Inc. v. EPA,
902 F.2d 962 (D.C. Cir. 1990)............c cece cece eee eeeee 24
Palsgraf v. Long Island R.R.,
By as Cs aie ee 23
Pub. Citizen v. U.S. Dep't of Justice,
ee es I iiiciecinetii aici ticks 18, 19, 20
Ragsdale v. Wolverine World Wide, Inc.,
ft REE eR eo ade 19
SEC v. Chenery Corp.,
Be es I incitiecenssianindiissiinpitiaiidlie eit tate 25
Tesoro Alaska Petroleum Co. v. FERC,
234 F.3d 1286 (D.C. Cir. 2000)...............00.00.0.. cee. 21
Waters v. Merchants’ Louisville Ins. Co..,
4k GS | eee 23
Whitman v. American Trucking Associations, Inc.,
gE REE nee S A eat: 27
Statutes
ee ee Oe IS winctininictictsiinasisetigneee 5
ee ee Oe iiiciinicininnctistiieincictineeibsinniieiaeiiee 5
Se is Oe a icincincniniceiilisictianiieeeleieeeins 4
ae Se Oe Pe i iciciinnsticiacitnddiintintasaineal oni 4
a le Oe Pe i iitriiniticidiccincceniintsdinabiabinntenicleceaan 4
ee Ie Pi iiintinidinnsbanithaccudicseeipetieesel all een 4
ae a te I iicsiihsscccteitbiiciiansiacenieaammniienaiaes aan 4
CTE Oe iviitertiiilie eee 4
iti cei nit iach dencseneninientnnntnnmencesinns 4
TN 5, 6
da tiie dllecsipsnmnmannnancaminntocens 6
Ol IS Oe II sc cccccccscccncnnesscesescucsessososonseees 4
|__| Ean 4,9, 11, 18, 21
I I IID <s.0csccccccsennsscversocoensonsesconseseos 4
nar arhnndeamienenions 4
a arrcrmansnanneeneintenenhans 4
cre rmansinsomenedel 4,9
iid cs ncihienctnanenimninntnnceniennies 6
sacra cmsecnsnnesuorennenncees 23, 25
nes crs sasacinneneiiinneasaninmesnendonees 6
a ccrrrreersstipnnnsnbnnsnnnnannnanent 4,14
ee 18
a csentnenenenenneeens 4
Federal Register Notices
Endangerment and Cause or Contribute Findings for
Greenhouse Gases Under Section 202(a) of the
Clean Air Act,
74 Fed. Reg. 66,496 (Dec. 15, 2009) ...........ccccceeeseee- 9
Light-Duty Vehicle Greenhouse Gas Emission
Standards and Corporate Average Fuel Economy
Standards; Final Rule,
75 Fed. Reg. 25,324 (May 7, 2010)........................ 11
xV
Part 51-Requirements for Preparation, Adoption, and
Submittal of Implementation Plans,
43 Fed. Reg. 26,380 (June 19, 1978) ...........cccece0e0+- 6
Prevention of Significant Deterioration and Title V
Greenhouse Gas Tailoring Rule,
75 Fed. Reg. 31,514 (June 3, 2010)................. 11, 12
Prevention of Significant Deterioration and Title V
Greenhouse Gas Tailoring Rule; Proposed Rule,
74 Fed. Reg. 55,292 (Oct. 27, 2009).................cscceees 2
Requirements for Preparation, Adoption, and
Submittal of Implementation Plans; Approval and
Promulgation of Implementation Plans,
45 Fed. Reg. 52,676 (Aug. 7, 1980)........................ 11
Other Authorities
American Heritage Dictionary of the English
Language (4th ed. 2000) ......................... eee eeee ee 22, 23
Blackstone, William,
1 Commentaries on the
I ae er I sccctntncrcncccnscencenssenicnseinataente 18
Energy Independence and Security Act,
Pub. L. No. 110—140,
Re Ss TP: CE Ci Rteritccccisicncnnicinetnntninsnis 28
Exec. Order No. 12,866 (Sept. 30, 1993)..................... 9
PETITION FOR A WRIT OF CERTIORARI
Petitioners respectfully submit this petition for a
writ of certiorari to review the judgment of the Unit-
ed States Court of Appeals for the District of Colum-
bia Circuit.
OPINIONS BELOW
The statement of the panel on rehearing en banc
is unpublished but electronically reported at 2012 WL
6621785. App. 99a. The panel opinion appears at
684 F.3d 102. App. la.
JURISDICTION
The panel rendered its decision on June 26, 2012.
The court of appeals then denied petitioners’ petition
for panel rehearing and rehearing en banc on Decem-
ber 20, 2012. On March 7, 20, and 25, 2013, the Chief
Justice extended petitioners’ respective deadlines for
filing a petition for certiorari to and including
April 19, 2013. The jurisdiction of this Court is in-
voked under 28 U.S.C. § 1254(1).
STATUTORY PROVISIONS INVOLVED
Relevant provisions of the Clean Air Act (“CAA”),
42 U.S.C. § 7401 et seqg., are reproduced in the Ap-
pendix. App. 2097a-2129a.
STATEMENT
In the set of related rulemakings below, the Env’-
ronmental Protection Agency (“EPA”) sought to erect
the costliest, farthest reaching, and most intrusive
regulatory apparatus in the history of the American
administrative state — regulations to govern emis-
sions of greenhouse gases (“GHGs”) that could even-
tually touch practically every aspect of every industry
across the entire economy. If that were not enough to
2
warrant the Court’s review of the judgment below,
the unprecedented interpretive paths taken by EPA
surely are.
Starting from a premise that it should interpret
individual statutory provisions in isolation, EPA
reached an endpoint that, in its own words, is “so
contrary to what Congress had in mind — and that in
fact so undermines what Congress attempted to ac-
complish * * * — that it should be avoided under the
‘absurd results’ doctrine.” App. 1837a. This absurdi-
ty was sufficiently stark that “stationary sources”
regulated under the CAA’s programs designed for
utility and heavy industrial “sources” of air pollution
would include vast swaths of the economy never in-
tended to be within the Act’s ambit, including for the
first time thousands of multifamily dwellings and
even large single family homes. See Prevention of
Significant Deterioration and Title V Greenhouse Gas
Tailoring Rule; Proposed Rule, 74 Fed. Reg. 55,292,
55,338 (Oct. 27, 2009); App. 1756a, 1960a.
When faced with the admittedly absurd results
caused by its construction of some provisions of the
statute, EPA rewrote other provisions of the statute
rather than stopping to consider whether the absurd-
ity meant its statutory construction was wrong from
the outset. To address the fact that its construction
of the statute would sweep sources as small as indi-
vidual homes within the Clean Air Act’s ambit (which
Congress admittedly never intended), EPA “unilater-
ally” increased the statute’s emissions thresholds for
stationary pollution sources from “250 tons to 100,000
tons — a 400-fold increase.” App. 137a (Kavanaugh,
J., dissenting).
EPA took this path even though this Court’s opin-
3
ion in Massachusetts v. EPA, 549 U.S. 497 (2007),
nowhere compelled the interpretations made in the
agency rulemakings. To the contrary, the Court’s de-
cision in Massachusetts envisioned that any EPA
GHG regulations would not lead to “extreme
measures,” id. at 531, such as a wholesale, agency-
crafted, revision of statutory thresholds, and that
EPA would “ground its reasons for action or inaction
in the statute,” id. at 535.
As Judges Kavanaugh and Brown observed in
separate dissents from the denial of rehearing en
banc, “this is not the proper way to interpret a stat-
ute.” App. 138a (Kavanaugh, J., dissenting); see App.
118a-119a (Brown, J., dissenting). The existence of
an absurdity requires agencies and courts to inter-
pret ambiguous provisions or to exercise delegated
interpretive discretion to avoid the absurdity. Ab-
surd consequences have never been thought to confer,
until this case, a license for agencies (or courts) to
rewrite plain statutory language as the agency (or
court) sees fit. “Instead of ‘reading new words into
the statute’ to avoid absurd results, * * * the statute
should be interpreted so that ‘no absurdity arises in
the first place.” App. 138a (Kavanaugh, J., dissent-
ing) (quoting Kloeckner v. Solis, 133 S. Ct. 596, 607
(2012)). By allowing an agency to engage in a series
of statutory interpretations that produce a concededly
“absurd” version of the whole statute, and then allow-
ing it to declare the absurdity its jumping off point for
rewriting plain statutory text, the decision below pos-
es profound risks to the Constitution’s separation of
powers.
In the wake of its recent GHG rulemakings, EPA
enforces a Clean Air Act fundamentally different
from the one Congress enacted. This Court’s imme-
4
diate review of the panel’s error is necessary and ap-
propriate. No other court of appeals can consider
these EPA regulations because the D.C. Circuit has
exclusive review jurisdiction over these EPA rule-
makings. See 42 U.S.C. § 7607(b)(1). It is simply not
possible to await further developments in lower
courts. The petition for a writ of certiorari should be
granted.
A. Statutory and regulatory framework.
Distinct parts of the CAA authorize EPA to regu-
late emissions from motor vehicle engines and emis-
sions from stationary sources. In Massachusetts, this
Court interpreted the Act’s definition of “air pollu-
tant” for purposes of the motor-vehicle provision
without analyzing other aspects of the Act’s motor-
vehicle provision and without mentioning the Act's
stationary source provisions.
1. Under section 202(a)(1) of the CAA,
The Administrator shall by regulation
prescribe *** standards applicable to
the emission of any air pollutant from
any class or classes of new motor vehi-
cles or new motor vehicle engines, which
in his judgment cause, or contribute to,
air pollution which may reasonably be
anticipated to endanger public health or
welfare.
42 U.S.C. § 7521(a)(1). Similar terminology appears
throughout the CAA. See §§ 7521(a)(3)(D), (e); 7671n;
7547(a)(1), (4); 7411(b+)()(A), WRB), j&l:
7408(a)(1)(A); 7571(a)(2)(A); 7545(c)(1); 7422(a);
7415(a); 7511b(H(1)(A); 7429(e).
2. Under the CAA’s core program, EPA may set
5
standards for pollutants designated as national am-
bient air quality standards (“NAAQS”) pollutants —
requiring, for example, that the concentration of a
given NAAQS pollutant may not exceed more than a
certain number of parts per billion in the ambient air.
See 42 U.S.C. § 7407. Thus far, EPA has designated
six NAAQS pollutants, none of which ‘: a GHG: car-
bon monoxide, lead, nitrogen diox:de, ozone, particle
pollution, and sulfur dioxide.
Under the related “Prevention of Significant Dete-
rioration of Air Quality” (“PSD”) part of the CAA,
EPA determines whether a region of the country is in
“attainment” or “nonattainment” for each designated
NAAQS pollutant, or, alternatively, whether a region
is “unclassifiable” for that pollutant. 42 U.S.C.
§ 7407(d)(1)(A). An area in attainment is “any area
*** that meets the * * * ambient air quality stand-
ard for the pollutant.” § 7407(d)(1)(A)(@i). By con-
trast, an area in nonattainment is “any area that
does not meet (or that contributes to ambient air
quality in a nearby area that does not meet) the na-
tional * * * ambient air quality standard for the pol-
lutant.” § 7407(d)(1)(A)Q). Finally, an unclassifiable
area is any area that “cannot be classified on the ba-
sis of available information as meeting or not meeting
the * * * ambient air quality standard for the pollu-
tant.” § 7407(d)(1)(A)(iii). The PSD program applies
to those areas of the United States designated as in
“attainment” or “unclassifiable,” § 7471, and requires
permits for major emitting facilities embarking on
construction or modification projects in those regions,
§ 7475(a).
Section 165(a) of the CAA makes clear that the
PSD program establishes permitting requirements
solely for “major emitting facilities” located in at-
6
tainment or unclassifiable regions. Under section
165(a), “[n]o major emitting facility * * * may be con-
structed in any area to which this part applies un-
less” the facility obtains a PSD permit. 42 U.S.C.
§ 7475(a). To obtain a PSD permit, a covered source
must, among other things, install the “best available
control technology [BACT] for each pollutant subject
to regulation under [the CAA].” § 7475(a)(4).
Section 169(a) defines “major emitting facility,” for
the purposes of the PSD program, as a stationary
source “which emit[s], or [has] the potential to emit”
either 100 tons per year (“tpy”) or 250 tpy of “any air
pollutant.” 42 U.S.C. § 7479(1). Certain categories of
sources — for example, iron and steel mill plants —
qualify as “major emitting facilitfies]” if they have the
potential to emit over 100 tpy of “any air pollutant.”
Id. All other stationary sources are “major emitting
facilit[ies]” if they have the potential to emit over 250
tpy of “any air pollutant.” Jd. Similarly, under the
Act’s Title V, stationary sources must obtain state-
issued operating permits to establish compliance with
the PSD requirements, among others, if they have
the potential to emit at least 100 tpy of “any air pol-
lutant.” § 7602G). In 1978, EPA interpreted the Act
to define “major emitting facility” as a source that
emits major amounts of “any air pollutant regulated
under the [CAA].” Part 51-Requirements for Prepara-
tion, Adoption, and Submittal of Implementation
Plans, 43 Fed. Reg. 26,380, 26,382 (June 19, 1978).
3. In Massachusetts, the Court considered wheth-
er the term “any air pollutant” in the CAA’s new mo-
tor vehicle provision, section 202(a)(1), included
GHGs such as “[c]arbon dioxide, methane, nitrous ox-
ide, and hydrofluorocarbons.” 549 U.S. at 529; see 42
U.S.C. § 7602(g). After answering this question in
7
the affirmative, the Court remanded to EPA, noting
that it had not reached “whether on remand EPA
must make an endangerment finding” of the type re-
quired to promulgate regulations under section
202(a)(1). 549 U.S. at 534-535. While the Court not-
ed that in the event such a finding were made EPA
would “no doubt” have “significant latitude as to the
manner, timing, content, and coordination of its regu-
lations with those of other agencies,” it emphasized
that it was not precluding EPA from denying the
rulemaking petition altogether on grounds that other
portions of the Act cabined EPA’s regulatory authori-
ty: “[O)nce EPA has responded to a petition for rule-
making, its reasons for action or inaction must con-
form to the authorizing statute.” Id. at 533. The fi-
nal sentence of the Court’s analysis underscored the
point: “EPA must ground its reasons for action or in-
action in the statute.” Jd. at 535 (emphasis added).
B. Proceedings below.
1. On remand from this Court’s decision, EPA
opened a single regulatory docket, and issued a uni-
fied Advance Notice of Proposed Rulemaking
(‘ANPR”), to address GHG emissions. App. 1126a.
In the ANPR’s preface, the EPA Administrator ob-
served it had “become clear” that EPA’s regulation of
GHGs from motor vehicle emissions under section
202(a)(1) could “trigger[]” “regulation of smaller sta-
tionary sources that also emit GHGs — such as
apartment buildings, large homes, schools, and hospi-
tals,” resulting in “an unprecedented expansion of
EPA authority that would have a profound effect on
virtually every sector of the economy and touch every
household in the land.” App. 1130a-113la. The Ad-
ministrator explained that, in his view, the CAA was
“il]-suited for the task of regulating global greenhouse
gases.” App. 1131la.
Other agencies submitted letters included in the
ANPR that expressed concern about regulating GHGs
under the CAA. For example, the Department of
Transportation expressed concern “that attempting to
regulate [GHGs] under the [CAA] will harm the U.S.
economy while failing to actually reduce global [GHG]
emissions.” App. 1140a. The Department of Energy
expressed concern about “an enormously elaborate,
complex, burdensome and expensive regulatory re-
gime that would not be assured of significantly miti-
gating global atmospheric GHG concentrations and
global climate change.” App. 1157a. And the De-
partment of Commerce expressed concern that such
regulation “would impose significant costs on U.S.
workers, consumers, and producers and harm U.S.
competitiveness without necessarily producing mean-
ingful reductions in global GHG emissions.” App.
1182a.
EPA’s ANPR proposed to conduct a single rule-
making comprehensively addressing the propriety of
regulating GHGs under the CAA. But despite having
initially opened a single regulatory docket, EPA later
elected to proceed in piecemeal fashion (thus making
subsequent review in the court of appeals more diffi-
cult). EPA recognized that an affirmative endanger-
ment fading could make it impossible for it to abide
by statutory commands within the CAA. App. 1756a,
1836a-1837a. Yet despite recognizing the intercon-
nections between the provisions of the Act, EPA con-
ducted its administrative process in a fashion that
ensured each individual rulemaking construed the
Act’s individual provisions but none construed the
Act as a whole. And despite the sweeping scope of
the combined rulemakings, which authorize EPA to
9
regulate the energy consumption of buildings every-
where in the United States, nowhere did EPA ana-
lyze the combined rules’ total costs. Compare App
27a, 49a, with Massachusetts, 549 U.S. at 531 (re-
marking the EPA “would have to delay any action” to
“siv[e] appropriate consideration to the cost of com-
pliance”) (quoting 42 U.S.C. § 7521(a)(2)); see also
Executive Order 12,866 (Sept. 30, 1993) (requiring
cost-benefit analysis).
2. EPA’s rulemaking unfolded in a series of steps.
EPA first issued a finding that GHGs were anticipat-
ed to endanger public health or welfare, which it then
used as the predicate for promulgating emission
standards for motor vehicles. EPA next determined
that, having regulated motor vehicles, it was required
also to regulate stationary sources. Finally, because
the statutory thresholds for triggering regulation of
stationary sources would require regulation of mil-
lions of sources never contemplated by Congress,
EPA claimed authority to rewrite (and in fact re-
wrote) those regulation-triggering thresholds.
First, in the course of a rulemaking involving sole-
ly motor vehicles, EPA determined that a combina-
tion of six separate gases (including two not emitted
by motor vehicles) defined as a single “air pollutant”
were “reasonably [] anticipated to endanger public
health or welfare.” 42 U.S.C. § 7521(a)(1). See En-
dangerment and Cause or Contribute Findings for
Greenhouse Gases Under Section 202(a) of the Clean
Air Act, 74 Fed. Reg. 66,496 (Dec. 15, 2009); App.
180a. EPA measured the impact of these gases —
carbon dioxide, methane, nitrous oxide,
hydroflourocarbons, perflourocarbons, and _ sulfur
hexafluoride — on a “carbon dioxide equivalent basis”
that reflects the “warming effect” of each “relative to
10
carbon dioxide.” App. 29la. EPA concluded that mo-
tor-vehicle emissions of these gases “contribute to the
total greenhouse gas air pollution, and thus to the
climate change problem, which is reasonably antici-
pated to endanger public health and welfare.” App.
195a.
In making the Endangerment Finding, EPA relied
on analysis involving many steps between the emit-
ted GHGs and the anticipated endangerment. In ad-
dition, EPA adopted an analysis that was “largely
qualitative in nature, and is not reducible to precise
metrics or quantification” — without “establish[ing] a
specific threshold metric for each category of risk and
impacts” and without “necessarily placing the great-
est weight on those risks and impacts which have
been the subject of the most study or quantification.”
App. 31la-312a. This “qualitative” assessment cov-
ered a period of analysis spanning “from the current
time to the next several decades, and in some cases to
the end of this century.” App. 313a.
EPA rejected the view that it could consider only
“direct health effects such as respiratory or toxic ef-
fects associated with exposure to greenhouse gases.”
App. 3l4a. EPA determined that GHGs endangered
public “welfare” based on multi-step causation chains
leading to effects over the long term on (i) “food pro-
duction and agriculture,” (ii) “forestry,” (iii) “water
resources,” (iv) “sea level rise and coastal areas,”
(v) “energy, infrastructure, and settlements,” and
(vi) “ecosystems and wildlife.” App. 343a.
Second, as a consequence of its endangerment
finding, and pursuant to the CAA’s provision author-
izing EPA to establish motor-vehicle emission stand-
ards for “any air pollutant * * * which may reasona-
11
bly be anticipated to endanger public health or wel-
fare,” 42 U.S.C. § 7521(a)(1), EPA issued a “Tailpipe
Rule” setting emission standards for cars and light
trucks. Light-Duty Vehicle Greenhouse Gas Emission
Standards and Corporate Average Fuel Economy
Standards; Final Rule, 75 Fed. Reg. 25,324 (May 7,
2010).
Third, EPA determined that once the agency had
triggered regulation of GHGs from motor vehicles, it
was obliged automatically to regulate “stationary
sources” of GHGs under the PSD and Title V pro-
grams. EPA understood in making this determina-
tion that regulating stationary-source emissions of
carbon dioxide as a GHG means regulating the burn-
ing of fossil fuels, which in turn means regulating the
production and consumption of energy throughout the
economy. Nonetheless, EPA reasoned that, once the
Tailpipe Rule set motor-vehicle emission standards
for GHGs, those gases became regulated pollutants
under the Act, requiring PSD regulation and Title V
permitting as well. See Prevention of Significant De-
terioration and Title V Greenhouse Gas Tailoring
Rule, 75 Fed. Reg. 31,514 (June 3, 2010); App. 690a.
In reaching this conclusion, EPA relied on its
preexisting, pre-Massachusetts interpretation of the
CAA, under which emissions regulations under other
parts of the Act trigger regulation of stationary GHG
emitters because “any air pollutant” means any air
pollutant regulated under the CAA. See App. 871a-
881la; see also Requirements for Preparation, Adop-
tion, and Submittal of Implementation Plans; Ap-
proval and Promulgation of Implementation Plans, 45
Fed. Reg. 52,676, 52,711 (Aug. 7, 1980).
Because GHGs, especially carbon dioxide, are
12
emitted in far greater amounts and from many more
sources (including people) than other “air pollutants,”
EPA recognized that extending its preexisting inter-
pretation of the Act to GHGs would produce regulato-
ry effects so severe as to be “absurd.” App. 690a.
EPA recognized in particular that the energy con-
sumption practices of millions of industrial, residen-
tial, and commercial sources would newly become
subject to EPA regulation because those facilities’
GHG emissions would exceed the 100/250 tons-per-
year emission thresholds provided for by statute. The
number of facilities subject to PSD and Title V would
thus jump 400-fold — from 15 thousand to 6.1 mil-
lion. See App. 782a-798a, 813a & Table V-I. Its new
rules taken together, EPA acknowledged, would re-
quire an expenditure of $22.5 billion in paperwork
costs alone (compared to $74 million today, see id.)
plus billions more in compliance costs (which EPA
declined to estimate, App. 27a, 49a).
Having identified an absurdity inherent in its
statutory construction, EPA addressed the situation
by rewriting the statute, not revisiting the construc-
tion. Specifically, whereas Congress decided that the
PSD and Title V programs would apply to facilities
discharging more than either 100 or 250 tons per
year of regulated pollutants, the agency reworked the
statutory language and held henceforth the programs
would apply only to sources emitting greenhouse gas-
es in amounts more than 75,000 or 100,000 tons per
year — two new, EPA-invented thresholds. App.
690a. EPA contended that it was forced to engage in
this statutory rewriting because, after EPA had in-
terpreted the CAA to require regulation of GHGs
from stationary sources, the consequences of a
straightforward application of the statutory thresh-
13
olds were absurd:
To apply the statutory PSD and title V
applicability thresholds literally to
sources of GHG emissions would bring
tens of thousands of small sources and
modifications into the PSD program
each year, and millions of small sources
into the title V program. These extraor-
dinary increases in the scope of the per-
mitting programs would mean that the
programs would become several hun-
dred-fold larger than what Congress ap-
peared to contemplate. Moreover, the
great majority of additional sources
brought into the PSD and title V pro-
grams would be small sources that Con-
gress did not expect would need to un-
dergo permitting and that, at the pre-
eent time, in the absence of streamlined
permit procedures, would face unduly
high permitting costs.
App. 780a.
EPA asserted further authority to revise statutory
thresholds on grounds that it claimed were both “in-
tertwined” with and “independent” of the absurdity
canon. App. 817a. Specifically, EPA relied on an
“administrative necessity” doctrine, which it contend-
ed allows an agency to decline to “follow the literal
requirements” of a statute that “is impossible for the
agency to administer.” App. 827a-828a. And EPA
relied on a so-called “one-step-at-a-time” doctrine,
which it contended allows agencies to “implement
statutory mandates one step at a time.” App. 830a.
Having once rewritten statutory language on authori-
14
ty of the absurdity canon (and other doctrines), EPA
then claimed further discretion to rewrite the same
language by way of adjusting the invented thresholds
over time and as it sees fit. App. 844a.
Fourth, in a separate “Timing Rule,” EPA estab-
lished January 2, 2011 as the date when major sta-
tionary emitters of GHGs would become subject to
EPA regulation. See Reconsideration of Interpreta-
tion of Regulations That Determine Pollutants Cov-
ered by Clean Air Act Permitting Programs, 75 Fed.
Reg. 17,004 (Apr. 2, 2010); App. 598a.
8. A diverse coalition of more than seventy busi-
ness groups, public policy groups, and States chal-
lenged EPA’s GHG rules. In addition, several indus-
try and public policy groups petitioned for review of
EPA’s interpretation of the PSD permitting triggers
set forth in EPA’s 1978, 1980, and 2002 rules. Be-
cause 42 U.S.C. § 7607(b)(1) permits parties to peti-
tion for review of final agency action “within sixty
days’ of any “grounds arising after” the expiration of
the ordinary statutory review period, these petition-
ers explained that their challenges to the historical
rules did not ripen until 2010, when EPA first elected
to regulate GHGs under the CAA by promulgating
the Tailpipe Rule.
In a per curiam opinion, a panel of the D.C. Cir-
cuit, composed of then-Chief Judge Sentelle and
Judges Rogers and Tatel, dismissed the petitions for
review as to the Timing and Tailoring Rules and de-
nied the petitions for review as to the remainder of
the rules. App. 98a.
As an initial matter, although Massachusetts had
expressly declined to address whether EPA “must”
make an endangerment finding, the panel assumed
15
that the decision actually went farther. The panel
construed Massachusetts as holding “that EPA had a
‘statutory obligation’ to regulate harmful greenhouse
gases.” App. 18a.
Starting from this premise, the panel addressed
the heart of EPA’s analysis — the Endangerment
Finding. The panel held that the ultimate absurdity
EPA had identified was “irrelevant” to the initial en-
dangerment inquiry. App. 28a. It then concluded
that the Endangerment Finding rested upon an “un-
ambiguously correct” construction of the CAA and
was not arbitrary and capricious, in part because the
CAA “does not leave room for EPA to consider as part
of the endangerment inquiry the stationary-source
regulation triggered by an endangerment finding.”
App. 28a-29a.
The panel determined that the grounds-arising-
after challenges to EPA’s PSD permitting triggers
were timely at least as to two industry petitioners.
App. 50a-56a. The panel ruled, however, that no pe-
titioner had standing to challenge the Timing and
Tailoring Rules — the two rules acknowledging the
absurdity and rewriting the statute in its wake — be-
cause those rules supposedly served to ease regulato-
ry burdens that EPA had already set in motion via its
other GHG rulemakings. App. 88a.
4. The panel denied rehearing, and the full D.C.
Circuit denied rehearing en banc, with Judge
Kavanaugh and Judge Brown dissenting separately.
App. 99a.
Judge Kavanaugh opened his opinion by noting
this case is “plainly one of exceptional importance.”
App. 133a (Kavanaugh, J., dissenting). Judge
Kavanaugh reiterated the U.S. Chamber’s statement
16
that “the EPA regulations at issue here as ‘the most
burdensome, costly, far-reaching program ever adopt-
ed by a United States regulatory agency.” Jd. “By
requiring a vastly increased number of facilities to
obtain pre-construction permits,” Judge Kavanaugh
said, “EPA’s interpretation will impose enormous
costs on tens of thousands of American businesses,
with corresponding effects on American jobs and
workers; on many American homeowners who move
into new homes or plan other home construction pro-
jects; and on the U.S. economy more generally.” App.
142a.
Judge Kavanaugh noted that EPA had reserved
unto itself a right to adjust its invented 75,000 and
100,000 ton-per-year thresholds over time, thus
bringing more and more facilities into its program
through its own “unilateral discretion.” App. 137a
n.l. Judge Kavanaugh observed that “EPA’s asser-
tion of such extraordinary discretionary power both
exacerbates the separation of powers concerns in this
case and underscores the implausibility of EPA’s
statutory interpretation.” Jd. According to Judge
Kavanaugh, “[a]llowing agencies to exercise that kind
of statutory re-writing authority could significantly
enhance the Executive Branch’s power at the expense
of Congress’s and thereby alter the relative balance of
powers in the administrative process.” App. 138a.
Judge Brown, in turn, emphasized that EPA had
failed to properly interpret the “reasonably anticipat-
ed to endanger” language in section 202(a)(1): “In or-
der to reasonably anticipate that a pollutant will con-
tribute to air pollution that endangers public health
or welfare, the Agency would have to conclude that
pollution created by CO2 or another GHG is a reason-
ably direct cause of the damage to public health and
17
welfare.” App. 116a (emphasis added).
According to Judge Brown, “[q]uestions of public
health impacts from air pollution have consistently
been based on the direct — that is, inhalational —
effects of exposure to the pollutant,” as opposed to the
more indirect harms caused by climate change. App.
116a-117a; see also App. 118a (“If there can be this
much logical daylight between the pollutant and the
anticipated harm, there is nothing EPA is not author-
ized to do.”). Judge Brown further observed that
“Congress should not be presumed to have deferred to
agencies on questions of great significance more
properly resolved by the legislature.” App. 122a (cit-
ing FDA v. Brown & Williamson Tobacco Corp., 529
U.S. 120 (2000)). Both Judge Brown and Judge
Kavanaugh skeptically viewed EPA’s invocation of
the “absurd results” canon — as a kind of “abuse”
used “to preempt legislative prerogatives.” App. 121la
(Brown, J., dissenting); see also App. 154a
(Kavanaugh, J., dissenting). Far from minimizing
the importance of this case, the members of the origi-
nal panel responded with a joint statement acknowl-
edging that “the underlying policy questions and the
outcome of this case are undoubtedly matters of ex-
ceptional importance.” App. 106a.
REASONS FOR GRANTING THE PETITION
EPA’s GHG rulemakings violate an elementary
interpretive principle: Before using the absurdity
doctrine to rewrite codified numerical thresholds, an
agency must endeavor to construe the statute to
avoid the absurdity in the first instance. The “whole
statute” canon of construction requires that all statu-
tory provisions be considered together, a task that is
particularly important in the context of a complex
18
statutory scheme like the CAA. In the rulemakings
below, EPA could and should have construed the Act
as a whole, thus avoiding the need to rewrite numeri-
cal thresholds. Having failed to do so, the agency's
interpretation of the Act was “not in accordance with
law” or, at best, was “arbitrary, capricious, [and] an
abuse of discretion.” 42 U.S.C. § 7607(d)(9)(A).
I. EPA improperly deployed the “absurd re-
sults” canon.
EPA employed a novel and expansive interpreta-
tion of its authority to regulate pollutants that “may
reasonably be anticipated to endanger public health
or welfare,” 42 U.S.C. § 7521(a)(1). The agency rec-
ognized that its construction of the statute caused
consequences “so contrary to what Congress had in
mind” that they “should be avoided under the ‘absurd
results’ doctrine.” App. 1840a. The agency then re-
wrote other provisions of the statute to avoid the ab-
surdity of its initial construction. This interpretive
approach was fundamentally misguided.
1. The principle that statutes should be construed
to avoid absurd results “demonstrates a respect for
the coequal Legislative Branch, which we assume
would not act in an absurd way.” Pub. Citizen v. U.S.
Dep’t of Justice, 491 U.S. 440, 470 (1989) (Kennedy,
J., concurring in the judgment). As William Black-
stone explained, “the rule is, that where words bear
either none, or a very absurd signification, if literally
understood, we must a little deviate from the received
sense of them.” 1 W. Blackstone, Commentaries on
the Laws of England 60 (1765) (emphasis added).
Blackstone’s formulation recognized that “little” devi-
ations from legislative text — as opposed to wholesale
rewriting — could at times allow a court to construe
19
statutes more consistently with legislative intent
than “literal[]” application of the law.
Critically, the absurdity canon does not permit “an
unhealthy process of amending the statute by judicial
interpretation.” Pub. Citizen, 491 U.S. at 470 (Ken-
nedy, J., concurring in judgment). Where (as here) a
court or agency acknowledges absurd results that
would follow from a particular statutory interpreta-
tion, the proper course is to interpret the statute to
avoid the absurdity. See Mova Pharm. v. Shalala,
140 F.3d 1060, 1068 (D.C. Cir. 1998) (absurd results
do not grant the agency “a license to rewrite the stat-
ute”).
Such an approach is especially appropriate where
the provisions being interpreted are interwoven into
a complicated regime like the CAA. As Judge Hand
explained, statutory text lives a “communal exist-
ence” with the meaning of each word informing the
others and “all in their aggregate tak{ing] their pur-
port from the setting in which they are used.” NLRB
v. Federbush Co., 121 F.2d 954, 957 (2d Cir. 1941). A
reviewing court thus “should not confine itself to ex-
amining a particular statutory provision in isolation,”
but should instead determine “[t]he meaning — or
ambiguity — of certain words or phrases” by placing
those words “in context.” Brown & Williamson, 529
U.S. at 132-133. “Regardless of how serious the prob-
lem an administrative agency seeks to address, * * *
it may not exercise its authority in a manner that is
inconsistent with the administrative structure that
Congress enacted into law.” Ragsdale v. Wolverine
World Wide, Inc., 535 U.S. 81, 91 (2002) (quotation
marks and citations omitted).
Accordingly, to the extent the CAA contained am-
20
biguities or gaps, both EPA and the Court below were
obliged to fill in the gaps and interpret the ambigu-
ous terms to avoid absurd consequences. EPA should
have endeavored to construe the Act reasonably and
comprehensively — and not necessarily in a manner
that would most aggrandize its authority.
2. Instead of taking a lawful interpretive path,
EPA chose the “unhealthy process of amending the
statute by [agency and] judicial interpretation.” Pub.
Citizen, 491 U.S. at 470 (Kennedy, J., concurring in
judgment). After engaging in a series of statutory in-
terpretations and acknowledging the resulting ab-
surdity, EPA frankly discarded precise numerical
limitations that Congress had placed on its authority.
App. 780a.
Far from scrutinizing EPA’s highly unusual inter-
pretive method, the panel concluded that petitioners
could not challenge the absurd consequences that
concededly flow from the Endangerment Rule. First,
the panel claimed that the absurdity EPA had identi-
fied was “irrelevant” to the endangerment inquiry,
because the CAA “does not leave room for EPA to
consider as part of the endangerment inquiry the sta-
tionary-source regulation triggered by an endanger-
ment finding.” App. 29a. Second, when petitioners
argued the Tailoring Rule unlawfully attempted to
address a conceded absurdity by simply rewriting the
statute, the panel held that they lacked Article III
standing because EPA’s Tailoring Rule eased the
regulatory burdens earlier set in motion by EPA’s
Endangerment Rule. See App. 88a-89a.
The upshot was that the panel nowhere addressed
the absurdity that EPA acknowledges follows from its
construction of the CAA — thus allowing EPA to es-
21
cape judicial scrutiny of its rewriting of the Clean Air
Act. This cannot be right. Agencies may not “use
shell games to elude review.” Tesoro Alaska Petrole-
um Co. v. FERC, 234 F.3d 1286, 1293-1294 (D.C. Cir.
2000). The panel should have seen the agency’s pro-
cedural gerrymandering for what it was — an im-
proper means of sidestepping judicial review. And it
should have recognized that substituting much high-
er numerical thresholds for much lower ones is never
a permissible way to construe a statute. These fail-
ures by the panel require correction by this Court.
Il. EPA improperly failed to construe the CAA
in a manner that would avoid the absurdity
that resulted from its own interpretation.
Had the panel required EPA to construe the entire
CAA sensibly as a whole, it would have concluded
that EPA had several available avenues for avoiding
the absurdity that resulted from the agency’s pre-
ferred interpretation.
A. EPA incorrectly construed _ section
202(a)(1)’s requirement that an air pollu-
tant “reasonably be anticipated to endan-
ger public health or welfare.”
To make an endangerment finding, EPA was stat-
utorily required to find that an air pollutant may
“reasonably be anticipated to endanger public health
or welfare.” 42 U.S.C. § 7521(a)(1). The statutory
text, and its settled construction, do not allow EPA to
address any and all issues that may be thought of as
relating to “health” or “welfare” in the abstract. In-
stead, the Act cabins EPA's authority by using the
specific statutory terms “health” and “welfare” and
requiring a particular type of causal connection be-
tween air pollutants and endangerment.
22
Here, EPA departed from prior agency practice
and failed to find the requisite causal connection be-
tween GHG emissions, on the one hand, and an en-
dangerment of (a) public health or (b) public welfare,
on the other. The agency’s strained analysis — to-
gether with its concession that its overall construc-
tion of the Act produces an absurdity — makes clear
that the Act’s structure simply is not a good fit for
addressing harms caused by GHG emissions.
Nor does the Court’s decision in Massachusetts
compel a different result. Indeed, Massachusetts
could hardly have been clearer in directing that, on
remand, “EPA must ground its reasons for action or
inaction in the statute.” Massachusetts, 549 U.S. at
535 (emphasis added). By overlooking this Court’s
clear directive, and mistakenly reading Massachu-
setts to hold that the “EPA had a statutory obligation
to regulate harmful greenhouse gases,” App. 18a
(emphasis added, quotations marks omitted), the
panel left undisturbed EPA’s failure to articulate a
standard for establishing causal connections.
1. The statutory term “reasonably be anticipated
to endanger” requires EPA to establish an appropri-
ate causal connection between emissions of “air pollu-
tants” and “public health” or “public welfare,” as
those terms are used in the CAA.
Congress's use of the terms “endanger” and “antic-
ipate” ensure that EPA regulates only those types of
endangerment that fit within the Act’s structure by
requiring the agency to establish appropriate causal
connections between a pollutant and endangerment.
“Endanger” means to “expose to harm or danger” or
“to imperil.” American Heritage Dictionary of the
English Language (4th ed. 2000). “Anticipate” means
23
among other things to “realize beforehand,” to “fore-
see,” to “deal with beforehand.” Id. (definition of “an-
ticipate”). The term “reasonably be anticipated to
endanger” thus calls to mind the “foreseeability” tests
long used in a variety of contexts to determine legal
causation of cognizable harms. See Palsgraf v. Long
Island R.R., 162 N.E. 99 (N.Y. 1928). “It is a well es-
tablished principle of law, that in all cases of loss we
are to attribute it to the proximate cause, and not to
any remote cause: causa proxima non remota
spectatur.” Waters v. Merchants’ Louisville Ins. Co.,
36 U.S. (Pet. 11) 213, 222 (1837) (Story, J.); cf. CSX
Transp., Inc. v. McBride, 131 S. Ct. 2630, 2642 (2011)
(“To prevent ‘infinite liability,’ courts and legislatures
appropriately place limits on the chain of causation
that may support recovery on any particular claim.”);
Babbitt v. Sweet Home Chapter of Communities for a
Great Oregon, 515 U.S. 687, 712 (1995) (O’Connor, J.,
concurring).
Without these limitations, EPA could claim a
sweeping authority to regulate all “airborne com-
pounds of whatever stripe,” Massachusetts, 549 U.S.
at 529, that affect “well-being,” 42 U.S.C. § 7602(h),
thus assuming unto itself an almost limitless policy
discretion. An essential predicate to regulation under
the Act is, therefore, that EPA must reasonably fore-
see that a particular type of air pollution will harm or
imperil public health or welfare. The “statutory term
‘will endanger’ and the “relationship of that term to
other sections of the Clean Air Act” thus “limit” and
“direct” EPA’s authority. Ethyl Corp. v. EPA, 541
F.2d 1, 29 (D.C. Cir. 1976) (en banc).
Here, EPA failed to appreciate these limitations
on its authority. EPA found endangerment of public
health and welfare based, not on the harms involving
24
people’s exposures to pollutants, but on remote causal
connections of a type beyond the bounds of what Con-
gress intended for the agency to address. Had the
panel below scrutinized EPA’s analysis of legal cau-
sation — as opposed to concluding such scrutiny is
pretermitted by Massachusetts — it would have real-
ized that its analysis as to both public health and
public welfare was inadequate under the plain terms
of the statute and a poor fit with the overall structure
of the Act.
2. EPA’s finding of an endangerment of “public
health” was based on a misreading of the Act. The
CAA treats effects on “health” and “welfare” distinct-
ly. In addressing the effects of GHGs on public
“health,” EPA inappropriately included considera-
tions that, if they are relevant to an endangerment
finding at all, may be considered only as relating to
public “welfare.”
In the context of the CAA, references to protecting
or endangering “public health” have long been under-
stood to refer to health risks based on inhalational or
other exposures to a pollutant. See NRDC, Inc. v.
EPA, 902 F.2d 962, 973 (D.C. Cir. 1990) (holding that,
in promulgating NAAQS, the CAA “does not permit
EPA to consider” the health consequences of unem-
ployment), vacated in irrelevant part by NRDC, Inc.
v. EPA, 921 F.2d 326 (D.C. Cir. 1991). Consistent
with the structure of the Act, effects unrelated to ex-
posure to pollutants and occurring over a long time
horizon have never before been treated as “health”
effects.
EPA’s rulemaking proposal acknowledged that
“there is no evidence that greenhouse gases directly
cause health effects.” App. 322a (emphasis added).
25
But despite vigorous objections from commenters that
EPA could lawfully find endangerment of health only
for exposure-related effects of pollutants involving
inhalation, skin exposures, ingestion, and the like,
App. 322a-324a, EPA nonetheless found an endan-
germent of public health based, not on harms involv-
ing people’s exposure to pollutants, but on more re-
mote causal connections more appropriately consid-
ered under the Act’s “welfare effects” provisions.
App. 324a.
3. EPA’s finding of endangerment of public “wel-
fare” also misreads the Act.
As an initial matter, EPA never made clear that
endangerment to “welfare” — as opposed to public
“health” — was an independent and sufficient ground
for the Endangerment Finding. EPA’s erroneous in-
terpretation of the term “public health” therefore suf-
fices, standing alone, to require reversal of the rule-
making. See SEC v. Chenery Corp., 318 U.S. 80
(1943).
At any rate, EPA’s failure to identify the statutori-
ly required causal connection was, if anything, more
glaring with respect to endangerment of “welfare”
than endangerment of “health.” The CAA provides a
specific statutory method for categorizing “welfare
effects.” Against this backdrop, past findings of wel-
fare endangerment have focused on particularized
exposure-related welfare effects falling into one or
more of ten primary categories enumerated by stat-
ute; namely, effects on (i) soils, (ii) water, (iii) crops,
(iv) vegetation, (v) manmade materials, (vi) animals,
(vii) wildlife, (viii) weather, visibility, and climate,
(ix) damage to and deterioration of property, and
(x) hazards to transportation. See 42 U.S.C.
26
§ 7602(h). EPA’s analysis should have turned on ap-
plying this statutory scheme.
Rather than pursuing the inquiry framed by the
CAA, EPA chose to organize its endangerment analy-
sis for welfare around an invented six-part scheme
lacking a discernible relation to principles drawn
from the Act. EPA thus set aside the categories
enumerated by the Act in favor of making predictions
of how a multi-stage set of causes might produce im-
pacts in future decades on (i) “food production and
agriculture,” (ii) “forestry,” (iii) “water resources,”
(iv) “sea level rise and coastal areas,” (v) “energy, in-
frastructure and settlements,” and (vi) “ecosystems
and wildlife.” See generally App. 338a-366a.
EPA’s analysis under its chosen scheme for ana-
lyzing “welfare effects,” like its analysis of endanger-
ment of public health, did not rely on findings of ex-
posure-related harms. Indeed, EPA never contended
that harmful welfare effects attributable to exposures
to greenhouse gases were likely to occur in the near
term. Cf., e.g., App. 363a (addressing “near term”
impacts). Rather, EPA interpreted the Act as allow-
ing the agency to conclude that welfare endanger-
ment may reasonably be anticipated based on effects
both distant in time and causal proximity from the
relevant pollutant emissions.
EPA did not contend its finding of welfare endan-
germent could be justified exclusively based on direct
welfare effects involving “climate.” Compare App.
71a, 78a (panel opinion). And while EPA noted that
section 202(a)(1)’s enumeration of welfare effects con-
cludes by listing two extremely broad categories of
potential welfare effects after the dividing phrase “as
well as” — namely, “effects on economic values and
27
on personal comfort and well-being,” App. 247a — it
provided no “intelligible principle” for analysis of the-
se statutory terms that would allow for realistic as-
sessments of welfare effects rather than arbitrarily
truncated analysis. Whitman v. American Trucking
Associations, Inc., 531 U.S. 457 (2001). Indeed, EPA
failed to identify any discernible limits on its inter-
pretation of these statutory terms, let alone the “sub-
stantial guidance” that this Court deemed necessary
for EPA’s “setting air standards that affect the entire
national economy.” Jd. at 475 (emphasis added). And
it refused to be guided by Congress’ framing of the
welfare endangerment inquiry by discarding the
statute’s categorization of “welfare effects” in favor of
newly devise.’ categories of its own choosing. In do-
ing so, EPA discarded the “intelligible principle”
based on traditional exposure-related causation of
harms (relied on in Whitman), but failed to replace it
with any other intelligible principle drawn from the
statute.
For its part, the panel overlooked EPA’s failures
to articulate any intelligible standard, thinking there
was no interpretive work to do other than apply Mas-
sachusetts.
4. Finally, EPA erred by interpreting the Act as
compelling it to disregard the effect of compliance
with law already in place under related regulatory
programs.
Although the National Highway Traffic Safety
Administration had been directed by a 2007 congres-
sional enactment to issue fuel economy standards for
new motor vehicles providing major reductions in
GHG emissions, see Energy Independence and Secu-
rity Act, Pub. L. No. 110—140, 121 Stat. 1492 (Dec.
28
19, 2007), EPA’s rulemaking ignored the emissions
reductions that could be “reasonably anticipated” due
to the new statutory requirements. App. 257a. EPA
reasoned that, despite its obligation to assess what
“may reasonably be anticipated,” section 202(a)
somehow precluded it from considering the emissions
reductions reasonably to be expected from compliance
with the law. App. 272a-273a.
EPA’s refusal to consider reasonably anticipated
legal compliance behaviors violates the plain terms of
the Act. Any real-world welfare endangerment that
“may reasonably be anticipated” over decades to cen-
turies must necessarily account for behavior reasona-
bly expected to occur over those long timespans under
laws already in place. App. 272a-273a.
B. EPA incorrectly determined that any “air
pollutant” regulated pursuant to section
202(a) must also be regulated under the
PSD program.
EPA’s rulemaking was also infected by a second,
independent error. Relying on prior rulemakings,
EPA determined that this Court’s holding that GHGs
are included within the term “air pollutant” in the
Act’s overall definitional provision, see Massachu-
setts, 549 U.S. at 529, means a fortiorari that GHGs
must be deemed “air pollutants” under the CAA’s
Prevention of Significant Deterioration program, see
App. 62a.
EPA failed to recognize that the term “air pollu-
tant,” as used in the PSD program, could be given a
narrower interpretation to cover just the six NAAQS
pollutants — all of which cause exposure-related
health problems — rather than encompassing all air-
borne compounds deemed harmful and regulated by
29
EPA under any CAA program. As this Court recently
explained in interpreting the Clean Air Act, “the nat-
ural presumption that identical words used in differ-
ent parts of the same act are intended to have the
same meaning * * * is not rigid and readily yields
whenever there is such variation in the connection in
which the words are used as reasonably to warrant
the conclusion that they were employed in different
parts of the act with different intent.” Environmental
Defense v. Duke Energy Corp., 549 U.S. 561, 574
(2007) (quotation marks and ellipsis omitted).
Here, the terms “air pollutant” in the definitional
provision and PSD program clearly have distinct
meanings — as even EPA acknowledges. Although
Massachusetts said that “air pollutant” means “all
airborne compounds of whatever stripe” under section
202(a)(1), 549 U.S. at 529, EPA did not use that broad
definition for the term “air pollutant” in the PSD
statute, recognizing that it would be illogical to re-
quire preconstruction permits because of emissions of
any airborne compound, including airborne com-
pounds that have not been deemed harmful enough to
be regulated under the CAA. EPA itself has therefore
recognized that the Massachusetts definition of “air
pollutant” cannot control the definition of “air pollu-
tant” under the PSD statute. As Judge Kavanaugh
explained, “EPA cannot simultaneously latch on to
Massachusetts v. EPA and reject Massachusetts v.
EPA” in interpreting the term “air pollutant” in the
PSD context. App. 150a (dissenting opinion).
C. EPA incorrectly exercised its delegated
authority in regulating GHGs.
In Massachusetts, the Court recognized that EPA
could decline to make an endangerment finding for
30
GHGs “if it provides some reasonable explanation as
to why it cannot or will not exercise its discretion to
determine whether [GHGs endanger public health or
welfare].” 549 U.S. at 533. Accordingly, once it rec-
ognized the absurd consequences of squeezing GHGs
into the terms of the CAA, EPA was obliged to decline
to regulate GHGs if no saving construction of the Act
were available. It is “highly unlikely that Congress”
would have wanted concededly absurd, economy-wide
regulation of these air pollutants. MCI Telecommu-
nications Corp. v. AT&T Co., 512 U.S. 218, 231
(1994).
Indeed, if Brown & Williamson was an “extraordi-
nary case” requiring the agency to “hesitate before
concluding that Congress” intended an improbable
“implicit delegation” of authority to regulate, 529 U.S.
at 143, 159, this case is even more extraordinary and
requires even more hesitation. See App. 122a-123a
(Brown, J., dissenting). In Massachusetts, the Court
reasoned that construing “air pollutant” to include
GHGs “would lead to no [] extreme measures” as had
occurred in Brown & Williamson, because there was
“nothing counterintuitive to the notion that EPA can
curtail” harmful automotive GHG emissions as it had
long done under the CAA. 549 U.S. at 531. Now,
however, EPA’s admittedly absurd extension of GHG
emissions controls to hundreds of thousands of small,
non-industrial sources far outside anything contem-
plated by Congress undercuts this distinction.
a. * >
At all events, were there any doubts about EPA’s
interpretations of section 202(a)(1) or the relevant
PSD and Title V statutes, EPA was bound to inter-
pret one or all of them to avoid the absurdity that
31
would be produced by a contrary interpretation.
Massachusetts does not compel a different result, but
to the extent that the Court finds that it does, peti-
tioners respectfully submit that the Court should re-
visit some aspects of the decision.
III. This case presents recurring questions of
national importance.
EPA’s GHG rulemakings have enormous economic
consequences, and the agency’s interpretive method
poses profound questions under the Constitution’s
system of separation of powers.
1. There can be little doubt that “[t]his case is [ ]
one of exceptional importance” with “massive real-
world consequences.” App. 133a (Kavanaugh, J., dis-
senting), As even the members of the panel that up-
held the regulations recognized, “{t}he underlying pol-
icy questions and the outcome of this case are un-
doubtedly matters of exceptional importance.” App.
106a. Neither EPA nor any of its intervenors or ami-
ct has questioned the staggering practical conse-
quences of these rulemakings. Indeed, EPA avoided
performing a cost-benefit analysis of the stationary
source aspects of these rulemakings, perhaps hesitat-
ing to find out how staggering those consequences re-
ally are.
EPA’s rulemakings establish a regulatory appa-
ratus the likes, costs, and breadth of which have nev-
er before been seen, effectively establishing EPA as a
national zoning board with jurisdiction over the en-
tire economy — for the first time ever imposing the
CAA’s regulatory burdens so heavily and directly on
States, industry, farms, convenience stores, hospitals,
shopping malls, churches, even homes.
2. The rulemakings below pose profound ques-
32
tions under the Constitution’s separation of powers.
If uncorrected, EPA’s new understanding of the ab-
surdity canon as granting carte blanche for agency
amendments to clear statutory text will establish a
milestone in the relationship between the legislative
and executive branches. As Judge Kavanaugh ob-
served, “undue deference or abdication to an agency
carries its own systemic costs. If a court mistakenly
allows an agency’s transgression of statutory limits,
then we green-light a significant shift of power from
the Legislative Branch to the Executive Branch.”
App. 152a-153a (Kavanaugh, J., dissenting).
Whatever the magnitude of the threat to health or
welfare posed by climate change, the threat surely
does not justify an agency's wholesale rewriting of
statutory provisions. No matter how important an
agencys policy goals, the agency may not pursue
means and ends not encompassed within its congres-
sional delegation of authority — however fondly it
may wish to press the square peg of a preferred regu-
latory program into the nearest statutory round hole.
“Where a statute provides the conditions for the exer-
cise of governmental power, its requirements are the
result of a deliberative and reflective process engag-
ing both of the political branches.” Hamdan v.
Rumsfeld, 548 U.S. 557, 637 (2006) (separate opinion)
(emphasis added). As the Framers recognized, the
“failures of * * * regulation may be a pressing nation-
al problem, but a judiciary that licensed
extraconstitutional government with each issue of
comparable gravity would, in the long run, be far
worse.” Free Enterprise Fund v. Public Company Ac-
counting Oversight Board, 130 S. Ct. 3138, 3157
(2010) (quotation marks, alterations, and citations
omitted).
33
The willingness, perhaps eagerness, of unelected
EPA officials to construe statutory language in a
manner producing absurd results justifying agency-
crafted, statutory amendments conflicts with the de-
liberative governance our Framers envisioned. The
Court’s review is needed to determine the legitimacy
of EPA’s new understandings of its interpretive au-
thority.
34
CONCLUSION
The petition for a writ of certiorari should be
granted.
RACHEL L. BRAND
SHELDON GILBERT
National Chamber
Litigation Center, Inc.
1615 H Street, NW
Washington, DC 20062
(202) 463-5337
MICHAEL C. GERAGHTY
Attorney General
STEVEN E. MULDER
State of Alaska
1031 W. 4th Avenue
Anchorage, AK 99501
(907) 269-5274
ELLEN STEEN
DANIELLE QUIST
American Farm Bureau
Federation
600 Maryland Ave., SW
Washington, DC 20024
(202) 406-3600
April 19, 2013
Respectfully submitted,
ROBERT R. GASAWAY
Counsel of Record
JEFFREY A. ROSEN, P.C.
JEFFREY BOSSERT CLARK
ADITYA BAMZAI
WILLIAM H. BURGESS
Kirkland & Ellis LLP
655 Fifteenth Street, N.W.
Washington, DC 20005
robert.gasaway@kirkland.com
(202) 879-5000
Counsel for Petitioner
Chamber of Commerce of the
United States of America
DOUGLAS A. HENDERSON
Troutman Sanders LLP
600 Peachtree Street, NE
Atlanta, GA 30308
(404) 885-3479
JESSE K. MARTIN
Troutman Sanders LLP
401 Ninth Street, N.W.
Washington, D.C. 20001
(202) 274-2950
Counsel for Petitioner American
Farm Bureau Federation
APPENDIX
RECORD
12
-1272
AND No. OFFICE OF THE CLERK |
RIEF Sin the Supreme Court of the Gnited States
FILED
1 Supreme Court, Us.
APR 19 2013
}
CHAMBER OF COMMERCE OF THE UNITED STATES
OF AMERICA, STATE OF ALASKA, AND
AMERICAN FARM BUREAU FEDERATION,
Petitioners,
Vv.
ENVIRONMENTAL PROTECTION AGENCY, ET AL.,
Respondents.
ON PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE DISTRICT OF COLUMBIA CIRCUIT
PETITIONERS’ APPENDIX
VOLUME I OF V (1a-179a)
RACHEL L. BRAND
SHELDON GILBERT
National Chamber
Litigation Center, Inc.
1615 H Street, NW
Washington, DC 20062
(202) 463-5337
MICHAEL C. GERAGHTY
Attorney General
STEVEN E. MULDER
State of Alaska
1031 W. 4th Avenue
Anchorage, AK 99501
(907) 269-5274
ROBERT R. GASAWAY
Counsel of Record
JEFFREY A. ROSEN, P.C.
JEFFREY BOSSERT CLARK
ADITYA BAMZAI
WILLIAM H. BURGESS
Kirkland & Ellis LLP
655 Fifteenth Street, N.W.
Washington, DC 20005
robert.gasaway@kirkland.com
(202) 879-5000
Counsel for Petitioner
Chamber of Commerce of the
United States of America
[Additional Counsel Listed on Signature Page of Petition]
(ERENT SA STRANI AR CL AE Beh ARIE ERRNO, ES, A SMAI TER AREA SE
WiLson-EPes PRINTING CO., INC. — (202) 789-0096 -— WASHINGTON, D. C. 20002
Library of Conaress
Law Library
APPENDIX CONTENTS
VOLUME I
U.S. Court of Appeals for the D.C. Circuit
Panel opinion, 684 F.3d 102
eae la
Judgment
ES ee nr 95a
Order denying rehearing en banc
I I Tic eaicacinhiepemenninninioennnien 99a
Statement of Chief Judge Sentelle, and
Circuit Judges Rogers and Tatel,
concurring in denial of
rehearing en banc (Dec. 20, 2012)................... 103a
Statement of Circuit Judge Brown,
dissenting from denial of
rehearing en banc (Dec. 20, 2012)................... 107a
Statement of Circuit Judge Kavanaugh,
dissenting from denial of
rehearing en banc (Dec. 20, 2012)................... 133a
Order denying pane! rehearing
I, SI ica niniidbiincnpeinneabinnennnindiatiieneies 156a
Order re: briefing in “Endangerment Rule”
I ical 160a
Order re: briefing in “Tailpipe Rule” cases
I ssa plamininsiaien 164a
‘i
Order re: briefing in
“Timing Rule and Tailoring
Rule” cases (Mar. 21, 2011)......................00200
Order re: briefing in “Historic Regulations”
re
Order granting Motion for Coordination
of Related Cases (Dec. 10, 2010)....................
VOLUME I
Federal Register Notices
EPA, Endangerment and Cause or Contribute
Findings for Greenhouse Gases Under
Section 202(a) of the Clean Air Act;
Final Rule,
74 Fed. Reg. 66,496 (Dec 15, 2009)................
EPA, Denial of the Petitions to Reconsider
the Endangerment and Cause or
Contribute Findings for Greenhouse
Gases under Section 202(a) of the
Clean Air Act; Final Rule,
75 Fed. Reg. 49,556 (Aug. 13, 2010) ..............
EPA, Reconsideration of Interpretation of
Regulations That Determine Pollutants
Covered by Clean Air Act Permitting
Programs; Final Rule,
75 Fed. Reg. 17,004 (Apr. 2, 2010).................
ili
VOLUME II
EPA, Prevention of Significant Deterioration
and Title V Greenhouse Gas Tailoring
Rule; Final Rule,
75 Fed. Reg. 31,514 (June 3, 2010)................
VOLUME IV
EPA, Regulating Greenhouse Gas Emissions
Under the Clean Air Act; Advance
Notice of Proposed Rulemaking,
73 Fed. Reg. 44,354 (July 30, 2008)..............
VOLUME V
EPA, Prevention of Significant Deterioration
and Title V Greenhouse Gas Tailoring
Rule; Proposed Rule,
74 Fed. Reg. 55,292 (Oct. 27, 2009) ..............
Statutes
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I ic sicsiensiaidsipmtepeiniiaian
ESSER ee
I I ocestececcctsecnenrnscciccnnvicsccensen
Pe eae
ee
42 U.S.C. §§ 7521(a)(1)-(3)......c.ceccececeecececessececeees
GB UBL. © FERED cccceeveccccenvesssssssensesncseemnenesin
GB UO BBAS. © FID ccceccenccevccsssesvesssensssesemnnnenannnns
GB UES. © TED ecevecsceecsccsseesssenssveseremmamimantante
42 U.S.C. §§ 7607(d)(7)-(9) .................-ccececceseceees
GB DIB. & FIGS ccccccresesecccssessmnessesesensmnnmmnenita
Miscellaneous
Motion for Coordination of Related Cases
EF SS ee
Chamber of Commerce of the United States
of America’s Combined Petition for Panel
Rehearing or for Rehearing en banc
EF eer
la
UNITED STATES COURT OF APPEALS
For The District of Columbia Circuit
Argued February 28 and 29, 2012 Decided June 26, 2012
No. 09-1322
COALITION FOR RESPONSIBLE REGULATION, INC., ET
AL.,
PETITIONERS
Vv.
ENVIRONMENTAL PROTECTION AGENCY,
RESPONDENT
STATE OF MICHIGAN, ET AL.,
INTERVENORS
Consolidated with 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
On Petitions for Review of Final Actions
of the Environmental Protection Agency
Patrick R. Day, Harry W. MacDougald, and
Jeffrey Bossert Clark argued the causes for Non-State
Petitioners 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.
2a
Thompson, Robin S. Conrad, Rachel L. Brand,
Sheldon Gilbert, Quentin Riegel, Jeffrey A. Rosen,
Robert R. Gasaway, William H. Burgess, Sam
Kazman, Hans Bader, 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. Parrish,
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, dr. entered
appearances.
E. Duncan Getchell, Jr., Solicitor General, Office
of the Attorney General for the Commonwealth of
Virginia, 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
Delegation Issues. With him on the briefs were
Kenneth T. Cuccinelli, IT, Attorney General, Stephen
R. McCullough, Senior Appellate Counsel, Charles E.
James dJr., 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,
3a
Pamela Jo Bondi, Attorney General, Office of the
Attorney General for the State of Florida, Gregory F.
Zoeller, Attorney General, Office of the Attorney
General for the State of Indiana, Jack Conway,
Attorney 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
Nebraska, Katherine J. Spohn, Special Counsel to the
Attorney General, Wayne Stenehjem, Attorney
General, 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 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, I, 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.
4a
Christian J. Ward, Scott A. Keller, and April L.
Farris were on the brief for amici curiae Scientists in
support of Petitioners.
Derek Schmidt, Attorney General, Office of the
Attorney 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 Landmark Legal Foundation, et al. in support
of Petitioners.
Jon M. Lipshultz and Angeline Purdy, Attorneys,
U.S. Department of Justice, argued the causes for
respondent. With them on the brief were John
Hannon, Carol Holmes, and Steven Silverman, U.S.
Environmental 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
Massachusetts, argued the cause for State and
Environmental MIntervenors 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, Kathleen A. Kenealy, Senior
Assistant Attorney General, Marc N. Melnick and
Sa
Nicholas Stern, Deputy 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 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, 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
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.
6a
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 General, Office of the Attorney
General for the State of Vermont, Thea J. Schwariz,
Assistant Attorney General, Christopher King,
Assistant Corporation Counsel, 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 IIT, Craig
Holt Segall, and Joanne Spalding.
Deborah Sivas, Douglas A. Ruley, Edward Lloyd,
and Susan J. Kraham were on the brief for amici
curtae America's Great Waters Coalition, et al. in
support of respondent. James K. Thornton entered an
appearance.
No. 10-1073
COALITION FOR RESPONSIBLE REGULATION, INC., ET
AL.,
PETITIONERS
Vv.
ENVIRONMENTAL PROTECTION AGENCY,
RESPONDENT
AMERICAN FROZEN FOOD INSTITUTE, ET AL.,
INTERVENORS
Consolidated with 10-1083, 10-1099, 10-1109, 10-1110,
10-1114, 10-1118, 10-1119, 10-1120, 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,
7a
10-1208, 10-1210, 10-1211, 10-1212, 10-1213, 10-1216,
10-1218, 10-1219, 10-1220, 10-1221, 10-1222
On Petitions for Review of Final Agency Action
of the Environmental Protection Agency
Jonathan F. Mitchell, Solicitor General, Office of
the Attorney General for the State of Texas, argued
the cause for State Petitioners and Supporting
Intervenor. With him on the briefs were Gregg
Abbott, Attorney General, Bill Cobb, deputy Attorney
General, 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 Attorney General for the State of Alabama,
Herman 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 dJackley, 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. Getchell, Jr., Assistant Attorney General,
Office of the Attorney General for the Commonwealth
of Virginia, Andrew M. Grossman, David B. Rivkin,
8a
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. Bryeon, 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. 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, I, Samuel B. Boxerman and Leslie
A. Hulse were on the brief for ~mici curiae the
Commonwealth of Kentucky and the American
9a
Chemistry Council in support of petitioners. Angus
Macbeth entered an appearance.
Amanda Shafer Berman and Perry M Rosen,
Attorneys, 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, IIT and Michele L. Walter, Counsel, U.S.
Environmental Protection Agency, entered
appearances.
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 Zalzal, Eric T. Schneiderman,
Attorney General, Office of the Attorney General for
the State of New York, Barbara D. Underwood,
Solicitor 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 General, David Doniger, Meleah Geertsma,
10a
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 General for the State of Maryland, Mary
Raivel, Deputy 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, 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 General, 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 Oregon, 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 Attorneys General.
Kenneth P. Alex and Gavin G. McCabe, Deputy
Assistant Attorneys General, Office of the Attorney
General for the State of California, entered
appearances.
No. 10-1092
COALITION FOR RESPONSIBLE REGULATION, INC., ET
AL.,
PETITIONERS
Vv.
lla
ENVIRONMENTAL PROTECTION AGENCY,
RESPONDENT
LANGBOARD, INC. - MDF, ET AL.,
INTERVENORS
em
Consolidated with 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
On Petitions for Review of Final Actions
of the Environmental Protection Agency
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 Kazman, 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 Jdr.,
Robin S. Conrad, Rachel L. Brand, Sheldon Gilbert,
F. William 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,
12a
Jonathan F. Mitchell, Solicitor General, J. Reed Clay
Jr., Special Assistant and Senior Counsel to the
Attorney General, Michael P. Murphy, Assistant
Solicitor General, Luther Strange, Attorney General,
Office of the Attorney General for the State of
Alabama, Samuel S. Olens, Attorney General, Office
of the Attorney General 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, dJr., 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 Attorney General for the Commonwealth of
Virginia, were on the briefs for State Petitioners and
Supporting 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.
13a
Eric G. Hostetler, Attorney, U.S. Department of
Justice, 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
intervenors 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 General, Kathleen A. Kenealy, Senior
Assistant Attorney General, Marc N. Melnick and
Nicholas Stern, Deputy Attorneys General, Sean H.
Donahue, Howard I. Fox, David S. Baron, Pamela
Campos, Megan Ceronsky, Vickie L. Patton, Peter
Zalzal, Joseph R. Biden, III, Attorney General, Office
of the Attorney 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, Attorney General, Office of the Attorney
14a
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, Assistant Attorney-in-Charge, William H.
Sorrell, Attorney General, Office of the Attorney
General for the State of Vermont, Thea J. Schwariz,
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 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 amicus
curiae Institute for Policy Integrity at New York
University School of Law in support of respondents.
15a
No. 10-1167
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
eee
On Petitions for Review of a Final Action
of the Environmental Protection Agency
Timothy K. Webster, Roger R. Martella, Jr., James
W. Coleman, William H. Lewis, dr., 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,
Attorneys, U.S. Department of Justice, and Elliott
Zenick and Howard J. Hoffman, Counsel, U.S.
Environmental Protection Agency, were on the brief
for respondents. Jon M. Lipshultz, Senior Counsel,
U.S. Department of Justice, entered and appearance.
16a
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 Massachusetts v. EPA, 549 U.S. 497
(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 Endangerment Finding, in
which it determined that greenhouse gases may
“reasonably be anticipated to endanger public health
or welfare.” See 42 U.S.C. § 7521(a)(1). 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 in overwhelming
permitting burdens on permitting authorities and
sources, EPA issued the Timing and Tailoring Rules,
in which it determined that only the largest
17a
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
otherwise arbitrary and capricious. But for the
reasons set forth below, we conclude: 1) the
Endangerment Finding and Tailpipe Rule are neither
arbitrary nor capricious; 2) EPA’s interpretation of
the governing CAA provisions is unambiguously
correct; and 3) no petitioner has standing to challenge
the Timing and Tailoring Rules. We thus dismiss for
lack of jurisdiction all petitions for review of the
Timing and Tailoring 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. 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
increase in the concentration of [greenhouse gases] in
the atmosphere.” Jd. at 504-05. 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,
18a
increasingly severe weather events, and rising sea
levels.
The genesis of this litigation came in 2007, when
the Supreme Court held in Massachusetis v. EPA
that greenhouse gases “unambiguous/ly]” may be
regulated as an “air pollutant” under the Clean Air
Act (“CAA”). Id. at 529. Squarely rejecting the
contention—then advanced by EPA—that
“greenhouse gases cannot be ‘air pollutants’ within
the meaning of the Act,” id. at 513, the Court held
that the CAA’s definition of “air pollutant” “embraces
all airborne compounds of whatever stripe.” Id. at
529 (emphasis added). Moreover, because the CAA
requires EPA to establish motor-vehicle emission
standards for “any air pollutant . . . which may
reasonably be anticipated to endanger public health
or welfare,” 42 U.S.C. § 7521(a)(1) (emphasis added),
the Court held that EPA had a “statutory obligation”
to regulate harmful greenhouse gases. Id. at 534.
“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 contribute to climate change or if it provides some
reasonable explanation as to why it cannot or will not
exercise its discretion to determine whether they do.”
Id. at 533. The Court thus directed EPA to determine
“whether sufficient information exists to make an
endangerment finding” for greenhouse gases. Jd. at
534.
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
19a
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
pollutant” an “aggregate group of six long-lived aan
directly-emitted greenhouse gases” that are “well
mixed” together in the atmosphere and cause global
climate change: carbon dioxide, methane, nitrous
oxide, hydroflourocarbons, perflourocarbons, and
sulfur hexafluoride. Jd. at 66,536-37. Following
“common practice,” EPA measured the impact of
these gases on a “carbon dioxide equivalent
basis,”"(COze) which is based on the gases’ “warming
effect relative to carbon dioxide .. . over a specified
timeframe.” Id. 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 COze). After
compiling and considering a considerable body of
scientific evidence, EPA concluded that motor-vehicle
emissions of these six well-mixed gases “contribute to
the total greenhouse gas 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-vehicle emission standards for
“any air pollutant . . . which may reasonably be
anticipated to endanger public health or welfare,” 42
U.S.C. § 7521(a)(1), the agency promulgated its
Tailpipe Rule for greenhouse gases. Light-Duty
Vehicle Greenhouse Gas Emission Standards and
Corporate Average Fuel Economy Standards; Final
Rule (“‘Tailpipe Rule”), 75 Fed. Reg. 25,324 (May 7,
2010). Effective January 2, 2011, the Tailpipe Rule
20a
set greenhouse gas emission standards for cars and
light trucks as part of a joint rulemaking with fuel
economy 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
regulation of stationary greenhouse gas emitters
under two separate sections of the Act. The first, the
Prevention of Significant Deterioration of Air Quality
(PSD) program, requires state-issued construction
permits for certain types of stationary sources—for
example, 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 permitting if
they have the potential to emit over 250 tpy of “any
air pollutant.” Id. § 7479(1). The second provision,
Title V, requires state-issued operating permits for
stationary sources that have the potential to emit at
least 100 tpy of “any air pollutant.” Jd. § 7602(j). EPA
has long interpreted the phrase “any air pollutant” in
both these provisions to mean any air pollutant that
is regulated under the CAA. See Requirements for
Preparation, Adoption, and Submittal of
Implementation Plans; Approval and Promulgation of
Implementation Plans (“1980 Implementation Plan
Requirements”), 45 Fed. Reg. 52,676, 52,711 (Aug. 7,
1980) (PSD program); Prevention of Significant
Deterioration and Title V Greenhouse Gas Tailoring
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
greenhouse gases, they became a regulated pollutant
2la
under the Act, requiring PSD and Title V greenhouse
permitting.
Acting pursuant to this longstanding
interpretation 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 requiring control of that pollutant takes
effect. Reconsideration of MInterpretation of
Regulations That Determine Pollutants Covered by
Clean Air Act Permitting Programs (“Timing Rule”),
75 Fed. Reg. 17,004 (Apr. 2, 2010). Therefore, EPA
concluded, major stationary emitters of greenhouse
gases would 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
commercial sources exceed the 100/250 tpy statutory
emissions threshold for COze. Tailoring Rule, 75 Fed.
Reg. at 31,534-36. Immediately adding these sources
to the PSD and Title V programs would, EPA
predicted, 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
22a
emissions threshold, the Tailoring Rule provided that
only the largest sources—those exceeding 75,000 or
100,00 tpy COsze, depending on the program and
project ~«-ould initially be subject to greenhouse gas
permitting. Jd. at 31,523. (The Tailoring Rule further
provided that regulated sources must also emit
greenhouse gases at leve's 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.)
A mumber of groups—including states and
regulated 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
arbitrary, 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 (1984).
But “if the statute is silent or ambiguous with respect
23a
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.
This opinion proceeds in several steps. Part Il
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
may timely challenge EPA’s longstanding
interpretation of the PSD statute. Because we
conclude that they may, Part V addresses the merits
of their statutory arguments, and explains why EPA’s
interpretation 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 disj.oses of several
arguments that have nothing to do with the rules
under review, and thus are not properly before us.
I.
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
decision 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 climate change.” Massachusetts v. EPA,
549 U.S. at 534. 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
anticipated both to endanger public health and to
24a
endanger public welfare.” Endangerment Finding, 74
Fed. Reg. at 66,497. EPA went on to find that motor-
vehicle emissions of greenhouse gases “contribute to
the total greenhouse gas air pollution, and thus to the
climate change problem, which is _ reasonably
anticipated to endanger public health and welfare.”
Id. at 66,499.
State and Industry Petitioners challenge several
aspects of EPA’s decision, including (1) EPA's
interpretation of CAA § 202(a)(1), which sets out the
endangerment-finding standard; (2) the adequacy of
the scientific record supporting the Endangerment
Finding; (3) EPA’s decision not to “quantify” the risk
of endangerment to public health or welfare created
by climate change; (4) EPA’s choice to define the “air
pollutant” at iasue as an aggregate of six greenhouse
gases; (5) EPA’s failure to consult its Science
Advisory Board before issuing the Endangerment
Finding; and (6) EPA’s denial of all petitions for
reconsideration of the Endangerment Finding. We
ultimately conclude that the Endangerment Finding
is consistent with Massachusetts v. EPA and the text
and structure of the CAA, and is adequately
supported by the administrative record.
A.
Industry Petitioners contend that EPA improperly
interpreted CAA § 202(a)(1) as restricting the
Endangerment Finding to a science-based judgment
devoid of considerations of policy concerns and
regulatory consequences. They assert that CAA
§ 202(a)(1) requires EPA to consider, e.g., the benefits
of activities that require greenhouse gas emissions,
the effectiveness of emissions regulation triggered by
25a
the Endangerment Finding, and the potential for
societal adaptation to or mitigation of climate change.
They maintain that eschewing those considerations
also made the Endangerment Finding arbitrary and
capricious. These contentions are foreclosed by the
language of the statute and the Supreme Court’s
decision in Massachusetts v. EPA. Section 202(a) of
the CAA states in relevant part that EPA's
Administrator
shall by regulation prescribe (and from
time to time revise) in accordance with the
provisions of this section, standards
applicable to the emission of any air
pollutant from any class or classes of new
motor vehicles or new motor. vehicle
engines, which in his judgment cause, or
contribute to, air pollution which may
reasonably be anticipated to endanger
public health or welfare.
42 U.S.C. § 7521(a)(1). This language requires that
the endangerment evaluation “relate to whether an
air pollutant ‘cause[s], or contribute[s}] to, air
pollution which may reasonably be anticipated to
endanger public health or welfare.” Massachusetts v.
EPA, 549 U.S. at 532-33. At bottom, § 202(a)(1)
requires EPA to answer only two questions: whether
particular “air pollution”—here, greenhouse gases—
“may reasonably be anticipated to endanger public
health or welfare,” and whether motor-vehicle
emissions “cause, or contribute to” that
endangerment.
These questions require a “scientific judgment”
about the potential risks greenhouse gas emissions
26a
pose to public health or welfare—not policy
discussions. Massachusetts v. EPA, 549 U.S. at 534.
In Massachusetts v. EPA, the Supreme Court
rebuffed an attempt by EPA itself to inject
considerations of policy into its decision. At the time,
EPA had “offered a laundry list of reasons not to
regulate” greenhouse gases, including
that a number of voluntary Executive
Branch programs already provide an
effective response to the threat of global
warming, that regulating greenhouse gases
might impair the President's ability to
negotiate with “key developing nations” to
reduce emissions, and that curtailing motor-
vehicle emissions would reflect “an
inefficient, piecemeal approach to address
the climate change issue.”
Id. at 533 (citations omitted). The Court noted that
“these policy judgments .. . have nothing to do with
whether greenhouse gas emissions contribute to
climate change. Still less do they amount to a
reasoned justification for declining to form a scientific
judgment.” Id. at 533—34. In the Court’s view, EPA’s
policy based explanations contained “no reasoned
explanation for [EPA’s] refusal to decide” the key part
of the endangerment inquiry: “whether greenhouse
gases cause or contribute to climate change.” Id. at
534.
As in Massachusetts v. EPA, a “laundry list of
reasons not to regulate” simply has “nothing to do
with whether greenhouse gas emissions contribute to
climate change.” Id. at 533-34. The additional
exercises State and Industry Petitioners would have
27a
EPA undertake—e.g., performing a_ cost-benefit
analysis for greenhouse gases, gauging the
effectiveness of whatever emission standards EPA
would enact to limit greenhouse gases, and predicting
society's adaptive response to the dangers or harms
caused by climate change—do not inform the
“scientific judgment” that § 202(a)(1) requires of EPA.
Instead of focusing on the question whether
greenhouse gas emissions may reasonably be
anticipated to endanger public health or welfare, the
factors State and Industry Petitioners put forth only
address what might happen were EPA to answer that
question in the affirmative. As EPA stated in the
Endangerment Finding, such inquiries “muddle the
rather straightforward scientific judgment about
whether there may be endangerment by throwing the
potential impact of responding to the danger into the
initial question.” 74 Fed. Reg. at 66,515. To be sure,
the subsection following § 202(a)(1), § 202(a)(2),
requires that EPA address limited questions about
the cost of compliance with new emission standards
and the availability of technology for meeting those
standards, see infra Part III, but these judgments are
not part of the § 202(a)(1) endangerment inquiry. The
Supreme Court made clear in Massachusetts v. EPA
that it was not addressing the question “whether
policy concerns can inform EPA’s actions in the event
that it makes such a finding,” 549 U.S. at 534—35, but
that policy concerns were not part of the calculus for
the determination of the endangerment finding in the
first instance. The Supreme Court emphasized that it
was holding “that EPA must ground its reasons for
action or inaction in the statute.” Jd. at 535. The
statute speaks in terms of endangerment, not in
terms of policy, and EPA has complied with the
statute.
28a
State and Industry Petitioners insist that because
statutes should be interpreted to avoid absurd
results, EPA should have considered at least the
“absurd” consequences that would follow from an
endangerment finding for greenhouse’ gases.
Specifically: having made an endangerment finding,
EPA will proceed to promulgate emission standards
under § 202(a)(1). Issuing those standards triggers
regulation—under EPA’s PSD and @Title V
programs—of stationary sources that emit
greenhouse gases at levels above longstanding
statutory thresholds. Because greenhouse gases are
emitted in much higher volumes than other air
pollutants, hundreds of thousands of small stationary
sources would exceed those thresholds. This would
subject those sources to PSD and Title V permitting
requirements despite what Petitioners claim was
Congress’s clear intent that the requirements apply
only to large industrial sources. Petitioners assert
that even EPA believed such overbroad regulation to
be an absurd result, which it attempted to rectify by
adopting the Tailoring Rule to raise the statutory
thresholds, see infra Part V1.
However “absurd” Petitioners consider this
consequence, though, it is still irrelevant to the
endangerment inquiry. That EPA adjusted the
statutory thresholds to accommodate regulation of
greenhouse gases emitted by stationary sources may
indicate that the CAA is a regulatory scheme less-
than perfectly tailored to dealing with greenhouse
geses. But the Supreme Court has already held that
EPA indeed wields the authority to regulate
greenhouse gases under the CAA. See Massachusetts
v. EPA. The plain language of § 202(a)(1) of that Act
29a
does not leave room for EPA to consider as part of the
endangerment inquiry the _ stationary-source
regulation triggered by an endangerment finding,
even if the degree of regulation triggered might at a
later stage be characterized as “absurd.”
State and Industry Petitioners next challenge the
adequacy of the scientific record underlying the
Endangerment Finding, objecting to both the type of
evidence upon which EPA relied and EPA’s decision
to make an Endangerment Finding in light of what
Industry Petitioners view as significant scientific
uncertainty. Neither objection has merit.
1.
As an initial matter, State and Industry
Petitioners question EPA’s reliance on “major
assessments” addressing greenhouse gases and
climate change issued by the Intergovernmental
Panel on Climate Change (IPCC), the U.S. Global
Climate Research Program (USGCRP), and the
National Research Council (NRC). Endangerment
Finding, 74 Fed. Reg. at 66,510-11. These peer
reviewed assessments synthesized thousands of
individual studies on various aspects of greenhouse
gases and climate change and drew “overarching
conclusions” about the state of the science in this
field. Id. at 66,511. The assessments provide data and
information on, inter alia, “the amount of greenhouse
gases being emitted by human activities”; their
continued accumulation in the atmosphere; the
resulting observed changes to Earth’s energy balance,
temperature and climate at global and regional
30a
levels, and other “climate-sensitive sectors and
systems of the human and natural environment’; the
extent to which these changes “can be attributed to
human-induced buildup of atmospheric greenhouse
gases’; “future projected climate change”; and
“projected risks and impacts to human health, society
and the environment.”/d. at 66,510—11.
State and Industry Petitioners assert that EPA
improperly “delegated” its judgment to the IPCC,
USGCRP, and NRC by relying on these assessments
of climate-change science. See U.S. Telecom Ass’n v.
FCC, 359 F.3d 554, 566 (D.C. Cir. 2004). This
argument is little more than a semantic trick. EPA
did not delegate, explicitly or otherwise, any decision-
making to any of those entities. EPA simply did here
what it and other decisionmakers often must do to
make a science-based judgment: it sought out and
reviewed existing scientific evidence to determine
whether a particular finding was warranted. It
makes no difference that much of the scientific
evidence in large part consisted of “syntheses” of
individual studies and research. Even individual
studies and research papers often synthesize past
work in an area and then build upon it. This is how
science works. EPA is not required to re-prove the
existence of the atom every time it approaches a
scientific question.
Moreover, it appears from the record that EPA
used the assessment reports not as substitutes for its
own judgment but as evidence upon which it relied to
make that judgment. EPA evaluated the processes
used to develop the various assessment reports,
reviewed their contents, and considered the depth of
the scientific consensus the reports represented.
3la
Based on these evaluations, EPA determined the
assessments represented the best source material to
use in deciding whether greenhouse gas emissions
may be reasonably anticipated to endanger public
health or welfare. Endangerment Finding, 74 Fed.
Reg. at 66,510-11. It then reviewed those reports
along with comments relevant to the scientific
considerations involved to determine whether the
evidence warranted an endangerment finding for
greenhouse gases as it was required to do under the
Supreme Court’s mandate in Massachusetts v. EPA.
2.
Industry Petitioners also assert that the scientific
evidence does not adequately support’ the
endangerment Finding. As we have stated before in
reviewing the science-based decisions of agencies
such as EPA, “[a]lthough we perform a searching and
careful inquiry into the facts underlying the agency’s
decisions, we will presume the validity of agency
action as long as a rational basis for it is presented.”
Am. Farm Bureau Fed’n v. EPA, 559 F.3d 512, 519
(D.C. Cir. 2009) (internal quotation marks omitted).
In so doing, “we give an extreme degree of deference
to the agency when it is evaluating scientific data
within its technical expertise.” Jd. (internal quotation
marks omitted).
The body of scientific evidence marshalled by EPA
in support of the Endangerment Finding is
substantial. EPA’s scientific evidence of record
included support for the proposition that greenhouse
gases trap heat on earth that would otherwise
dissipate into space; that this “greenhouse effect”
warms the climate; that human activity is
32a
contributing to increased atmospheric levels of
greenhouse gases; and that the climate system is
warming.
Based on this scientific record, EPA made the
linchpin finding: in its judgment, the “root cause” of
the recently observed climate change is “very likely”
the observed increase in anthropogenic greenhouse
gas emissions. Endangerment Finding, 74 Fed. Reg.
at 66,518. EPA found support for this finding in three
lines of evidence. First, it drew upon our “basic
physical understanding” of the impacts of various
natural and manmade changes on the climate
system. For instance, EPA relied on evidence that the
past half-century of warming has occurred at a time
when natural forces such as solar and volcanic
activity likely would have produced _ cooling.
Endangerment Finding, Response to Comments
(RTC) Vol. 3, at 20. Other evidence supports EPA’s
conclusion that the observed warming pattern—
warming of the bottommost layer of the atmosphere
and cooling immediately above it—is consistent with
greenhouse-gas causation. Id.
EPA further relied upon evidence of historical
estimates of past climate change, supporting EPA’s
conclusion that global temperatures over the last
half-century are unusual. Endangerment Finding, 74
Fed. Reg. at 66,518. Scientific studies upon which
EPA relied place high confidence in the assertion that
global mean surface temperatures over the last few
decades are higher than at any time in the last four
centuries. Technical Support Document for the
Endangerment Finding (TSD), at 31. These studies
also show, albeit with significant uncertainty, that
temperatures at many individual locations were
33a
higher over the last twenty-five years than during
any period of comparable length since 900 A.D. Id.
For its third line of evidence that anthropogenic
emissions of greenhouse gases spurred the perceived
warming trend, EPA turned to computer-based
climate-model simulations. Scientists have used
global climate models built on basic principles of
physics and scientific knowledge about the climate to
try to simulate the recent climate change. These
models have only been able to replicate the observed
warming by including anthropogenic emissions of
greenhouse gases in the simulations. Endangerment
Finding, 74 Fed. Reg. at 66,523.
To recap, EPA had before it substantial record
evidence that anthropogenic emissions of greenhouse
gases “very likely” caused warming of the climate
over the last several decades. EPA further had
evidence of current and future effects of this warming
on public health and welfare. Relying again upon
substantial scientific evidence, EPA determined that
anthropogenically induced climate change threatens
both public health and public welfare. It found that
extreme weather events, changes in air quality,
increases in food- and water-borne pathogens, and
increases in temperatures are likely to have adverse
health effects. Id. at 66,497-98. The record also
supports EPA’s conclusion that climate change
endangers human welfare by creating risk to food
production and agriculture, forestry, energy,
infrastructure, ecosystems, and wildlife. Substantial
evidence further supported EPA’s conclusion that the
warming resulting from the greenhouse’ gas
emissions could be expected to create risks to water
resources and in general to coastal areas as a result
34a
of expected increase in sea level. Id. at 66,498.
Finally, EPA determined from substantial evidence
that motor-vehicle emissions of greenhouse gases
contribute to climate change and thus to the
endangerment of public health and welfare.
Industry Petitioners do not find fault with much of
the substantial record EPA amassed in support of the
Endangerment Finding. Rather, they contend that
the record evidences too much uncertainty to support
that judgment. But the existence of some uncertainty
does not, without more, warrant invalidation of an
endangerment finding. If a statute is “precautionary
in nature” and “designed to protect the public health,”
and the relevant evidence is “difficult to come by,
uncertain, or conflicting because it is on the frontiers
of scientific knowledge,” EPA need not provide
“rigorous step-by-step proof of cause and effect” to
support an endangerment finding. Ethyl Corp. v.
EPA, 541 F.2d 1, 28 (D.C. Cir. 1976). As we have
stated before, “Awaiting certainty will often allow for
only reactive, not preventive, regulation.” Id. at 25.
Congress did not restrict EPA to remedial
regulation when it enacted CAA § 202(a). That
section mandates that EPA promulgate new emission
standards if it determines that the air pollution at
issue “may reasonably be anticipated to endanger
public health or welfare.” 42 U.S.C. § 7521(a)(1). This
language requires a precautionary, forward-looking
scientific judgment about the risks of a particular air
pollutant, consistent with the CAA’s “precautionary
and preventive orientation.” Lead Indus. Ass’n, Inc. v.
EPA, 647 F.2d 1130, 1155 (D.C. Cir. 1980). Requiring
that EPA find “certain” endangerment of public
health or welfare before regulating greenhouse gases
35a
would effectively prevent EPA from doing the job
Congress gave it in § 202(a)—utilizing emission
standards to prevent reasonably anticipated
endangerment from maturing into concrete harm. Cf.
id. (“[RJequiring EPA to wait until it can conclusively
demonstrate that a particular effect is adverse to
health before it acts is inconsistent with both the
[CAA]’s precautionary and preventive orientation and
the nature of the Administrator's § statutory
responsibilities. Congress provided that the
Administrator is to use his judgment in setting air
quality standards precisely to permit him to act in
the face of uncertainty.”).
In Massachusetts v. EPA the Supreme Court
confirmed that EPA may make an endangerment
finding despite lingering scientific uncertainty.
Indeed, the Court held that the existence of “some
residual uncertainty” did not excuse EPA’s decision to
decline to regulate greenhouse gases. Massachusetis
v. EPA, 549 U.S. at 534. To avoid regulating
emissions of greenhouse gases, EPA would need to
show “scientific uncertainty . . . so profound that it
precludes EPA from making a reasoned judgment as
to whether greenhouse gases contribute to global
warming.” Jd. Clearly, then, EPA may issue an
endangerment finding even while the scientific record
still contains at least “some residual uncertainty.”
Industry Petitioners have shown no more than thet.
In the end, Petitioners are asking us to re-weigh
the scientific evidence before EPA and reach our own
conclusion. This is not our role. As with other reviews
of administrative »roceedings, we do not determine
the convincing force of evidence, nor the conclusion it
should support, but only whether the conclusion
36a
reached by EPA is supported by substantial evidence
when considered on the record as a whole. See, e.g.,
New York v. EPA, 413 F.3d 3, 30 (D.C. Cir. 2005).
When EPA evaluates scientific evidence in its
bailiwick, we ask only that it take the scientific
record into account “in a rational manner.” Am.
Petroleum Inst. v. Costle, 665 F.2d 1176, 1187 (D.C.
Cir. 1981). Industry Petitioners have not shown that
EPA failed to do so here.
C.
State Petitioners, hcre led by Texas, contend that
the Endangerment Finding is arbitrary and
capricious because EPA did not “define,” “measure,”
or “quantify” either the atmospheric concentration at
which greenhouse gases endanger public health or
welfare, the rate or type of climate change that it
anticipates will endanger public health or welfare, or
the risks or impacts of climate change. According to
Texas, without defining these thresholds and
distinguishing “safe” climate change from climate
change that endangers, EPA’s Endangerment
Finding is just a “subjective conviction.”
It is true that EPA did not provide a quantitative
threshold at which greenhouse gases or climate
change will endanger or cause certain impacts to
public health or welfare. The text of CAA § 202(a)(1)
does not require that EPA set a precise numerical
value as part of an endangerment finding. Quite the
opposite; the § 202(a)(1) inquiry necessarily entails a
case-bycase, sliding-scale approach to endangerment
because “[djanger . . . is not set by a fixed probability
of harm, but rather is composed of reciprocal
elements of risk and harm, or probability and
37a
everity.” Ethyl, 541 F.2d at 18. EPA need not
establish a minimum threshold of risk or harm before
determining whether an air pollutant endangers. It
may base an endangerment finding on “a lesser risk
of greater harm ... or a greater risk of lesser harm”
or any combination in between. Id.
Ethyl is instructive. There, EPA made an
endangerment finding for airborne lead. During its
endangerment inquiry, EPA initially tried to do what
Texas asks of it here: find a specific concentration of
the air pollutant below which it would be considered
“safe” and above which it would endanger public
health. Id. at 56. However, EPA abandoned that
approach because it failed to account for “the wide
variability of dietary lead intake” and lacked
predictive value. EPA substituted a “more
qualitative” approach, which relied on “predictions
based on uncertain data” along with clinical studies.
Id. at 56—57. This court upheld the endangerment
finding that used that qualitative approach despite
the lack of a specific endangerment “threshold.”
In its essence, Texas’s call for quantification of the
endangerment is no more than a specialized version
of Industry Petitioners’ claim that the scientific
record contains too much uncertainty to find
endangerment. EPA relied on a substantial record of
empirical data and scientific evidence, making many
specific and often quantitative findings regarding the
impacts of greenhouse gases on climate change and
the effects of climate change on public health and
welfare. Its failure to distill this ocean of evidence
into a specific number at which greenhouse gases
cause “dangerous” climate change is a function of the
38a
precautionary thrust of the CAA and the multivariate
and sometimes uncertain nature of climate science,
not a sign of arbitrary or capricious decision-making.
D.
EPA defined both the “air pollution” and the “air
pollutant” that are the subject of the Endangerment
Finding as an aggregate of six greenhouse gases,
which EPA called “well mixed greenhouse gases”:
carbon dioxide (CO:), methane (CH), nitrous oxide
(N2zO), hydrofluorocarbons (HFCs), perfluorocarbons
(PFCs), and sulfur hexafluoride (SFs). Industry
Petitioners argue that EPA’s decision to include PFCs
and SFe in this group of greenhouse gases was
arbitrary and capricious primarily because motor
vehicles generally do not emit these two gases.
No petitioner for review of the Endangerment
Finding has established standing to make this
argument. Industry Petitioners concede that EPA’s
decision to regulate PFCs and SFs along with the
other four greenhouse gases does not injure any
motorvehicle-related petitioner. Nor has any non-
motor-vehicle related petitioner shown an injury-in-
fact resulting from EPA’s inclusion of these two gases
in the six-gas amalgam of “wellmixed greenhouse
gases.” At oral argument, Industry Petitioners
asserted for the first time that certain utility
companies—members of associations that petitioned
for review of the Endangerment Finding—own utility
transformers that emit SFe. However, they never
demonstrated or even definitively asserted that any
of these companies would not be subject to regulation
or permitting requirements but for EPA’s decision to
include SF as part of the “well-mixed greenhouse
39a
gases” that are the subject of the Endangerment
Finding. See Sierra Club u\EPA, 292 F.3d 895, 898-
900 (D.C. Cir. 2002) (requiring that a petitioner
seeking review of agency action demonstrate
standing by affidavit or other evidence if standing is
not “self-evident” from the administrative record).
Absent a petitioner with standing to challenge EPA’s
inclusion of PFCs and SF in the “air pollution” at
issue, this court lacks jurisdiction to address the
merits of Industry Petitioners’ contention.
E.
EPA did not submit the Endangerment Finding
for review by its Science Advisory Board (SAB).
Industry Petitioners claim that EPA’s failure to do so
violates its mandate to “make available” to the SAB
“any proposed criteria document, standard,
limitation, or regulation under the Clean Air Act” at
the time it provides the same “to any other Federal
agency for formal review and comment.” 42 U.S.C. §
4365(c)(1); see Am. Petroleum Inst., 665 F.2d at 1188.
To begin with, it is not clear that EPA provided the
Endangerment Finding “to any other Federal agency
for formal review and comment,” which triggers this
duty to submit a regulation to the SAB. EPA only
submitted a draft of the Endangerment Finding to
the Office of Information and Regulatory Affairs
pursuant to Executive Order 12,866. EPA contends
that this was merely an informal review process, not
“formal review and comment’—at least when
compared with a statutory review-and-comment
requirement in which other agencies are given the
opportunity to provide written comments about the
impacts of a proposed regulation on the reviewing
agency's universe of responsibility. See, e.g., 49 U.S.C.
40a
§ 32902(j). Industry Petitioners failed to respond to
this contention.
In any event, even if EPA violated its mandate by
failing to submit the Endangerment Finding to the
SAB, Industry Petitioners have not shown that this
error was “of such central relevance to the rule that
there is a substantial likelihood that the rule would
have been significantly changed if such errors had
not been made.” 42 U.S.C. § 7607(d)(8); see Am.
Petroleum Inst., 665 F.2d at 1188-89 (applying this
standard to EPA’s failure to submit an ozone
standard to the SAB).
F.
Lastly, State Petitioners maintain that EPA erred
by denying all ten petitions for reconsideration of the
Endangerment Finding. Those petitions asserted that
internal emails and documents released from the
University of East Anglia’s Climate Research Unit
(CRU)}—a contributor to one of the_ global
temperature records and to the IPCC’s assessment
report—undermined the scientific evidence
supporting the Endangerment Finding by calling into
question whether the IPCC scientists adhered to
“best science practices.” EPA’s Denial of the Petitions
To Reconsider the Endangerment and Cause or
Contribute Findings for Greenhouse Gases Under
Section 202(a) of the Clean Air Act (“Reconsideration
Denial”), 75 Fed. Reg. 49,556, 49,556—57 (Aug. 13,
2010). The petitions pointed to factual mistakes in
the IPCC’s assessment report resulting from the use
of non-peer-reviewed studies and several scientific
studies postdating the Endangerment Finding as
4la
evidence that the Endangerment Finding was flawed.
Id.
On August 13, 2010, EPA issued a denial of the
petitions for reconsideration accompanied by a 360-
page response to petitions (RTP). Jd. at 49,556. It
determined that the petitions did not provide
substantial support for the argument that the
Endangerment Finding should be revised. According
to EPA, the petitioners’ claims based on the CRU
documents were exaggerated, contradicted by other
evidence, and not a material or reliable basis for
questioning the credibility of the body of science at
issue; two of the factual inaccuracies alleged in the
petitions were in fact mistakes, but both were
tangential and minor” and did not change the key
IPCC conclusions; and the new scientific studies
raised by some petitions were either already
considered by EPA, misinterpreted or misrepresented
by petitioners, or put forth without acknowledging
other new studies. Jd. at 49,557—58.
1.
EPA is required to convene a proceeding for
reconsideration of a rule if a party raising an
objection to the rule
can demonstrate to the Administrator that it
was impracticable to raise such objection
within such time or if the grounds for such
objection arose after the period for public
comment (but within the time specified for
judicial review) and if such objection is of
central relevance to the outcome of the rule.
42a
42 U.S.C. § 7607(d)(7)(B). For the purpose of
determining whether to commence reconsideration of
a rule, EPA considers an objection to be of “central
relevance to the outcome” of that rule “if it provides
substantial support for the argument that
theregulation should be revised.” Reconsideration
Denial, 75 Fed. Reg. at 49,561.
State Petitioners have not provided substantial
support for their argument that the Endangerment
Finding should be revised. State Petitioners point out
that some studies the IPCC referenced in its
assessment were not peer-reviewed, but they ignore
the fact that (1) the IPCC assessment relied on
around 18,000 studies that were peer-reviewed, and
(2) the IPCC’s report development procedures
expressly permitted the inclusion in the assessment
of some non-peer-reviewed studies (“gray” literature).
Moreover, as EPA determined, the limited
inaccurate information developed from the gray
literature does not appear sufficient to undermine the
substantial overall evidentiary support for the
Endangerment Finding. State Petitioners have not,
as they assert, uncovered a “pattern” of flawed
science. Only two of the errors they point out seem to
be errors at all, and EPA relied on neither in making
the Endangerment Finding. First, as State
Petitioners assert, the IPCC misstated the
percentage of the Netherlands that is below sea level,
a statistic that was used for background information.
However, the IPCC corrected the error, and EPA
concluded that the error was “minor and had no
impact,” and the Endangerment Finding did not refer
to the statistic in any way. Id. at 49,576—7
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