# Amicus Curiae Brief — Environmental Defense v. Duke Energy Corporation

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URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385016_0237%3A29

## Record

- **Collection:** Supreme Court brief
- **Document type:** Amicus Curiae Brief
- **Published:** January 1, 2007
- **Citation:** 549 U.S. 561

## Text

9

and it did not conclude that the actual annual emissions
test adopted by EPA for the PSD program is inconsistent
with that text, or with the structure, purposes, or history
of the Clean Air Act.

Had the court bothered to consider the text of the
“modification” definition, it could only have reached the
conclusion that the actual annual emission test is not only
a permissible construction of that text but is in fact re-
quired by it. Section 7411(a)(4) defines “modification” of
stationary sources subject to the PSD program as “any
physical change in *** a stationary source which in-
creases the amount of any air pollutant emitted by such
source.” The ordinary meaning of the operative words—
“amount,” “emitted,” and “increases”—comport with the
actual annual emission test. Under the actual annual
emissions test, the “amount” of air pollutants “emitted” is
said to “increase” when a stationary source “emitted” more
tons of pollutants this year than it did in past years. That
test perfectly tracks the everyday meanings of the statu-
tory terms, as the “amount” of pollution “emitted” surely
“increases” when more tons of pollution are released now
than in the past. It would be difficult to find a more
obvious example of the plain meaning of common words.’

The alternative test, the hourly rate test, which
measures the maximum amount of pollution a source can
emit per hour, does not so easily conform with the statutory

* See Webster's Third New International Dictionary 1145 (2002)
(defining “increase” as “to become greater in some respect (as in size,
quantity, number, degree, value, intensity, power, authority, reputa-
tion, wealth): GROW, ADVANCE, WAX”); id. at 72 (defining “amount”
as “the total number or quantity: AGGREGATE”); id. at 742 (defining
“emit” as “to send out: DISCHARGE, RELEASE”).

10

language. Nothing in the text of the “modification” defini-
tion suggests any concern for maximum emission rates
unconnected to actual pollution emitted. The definition
makes clear that Congress was concerned about the
“amount” of pollution “emitted,” which does not necessar-
ily depend on a source’s capacity for emissions. On the one
hand, a change to a source may increase its capacity for
emissions without increasing the amount of pollution
emitted if the source operates below its capacity. On the
other hand, a change that allows a source to operate for
more hours may increase the amount of pollution actually
emitted even though its hourly emissions capacity stays
the same or even decreases. Accordingly, a test that
focuses on hourly emission rates does not capture Con-
gress’s intent to focus on changes that “increase” the
“amount” pollutants actually “emitted.”

Although the Fourth Circuit did not undertake any
analysis of the language of the “modification” definition,
the D.C. Circuit thoroughly examined the statutory text
and held that the actual annual emissions test is required
by the plain language of the modification definition, ruling
that “the Clean Air Act unambiguously defines ‘increases’
in terms of actual emissions.” New York v. EPA, 413 F.3d 3,
39 (D.C. Cir. 2005). The court found that the phrase “the
amount of any air pollutant emitted” in the “modification”
definition “plainly refers to actual emissions.” Jd. at 40. The

* The hourly rate test would not square with the statutory lan-
guage even if it focused on the hourly rate of pollutants that a source
actually emits, rather than its hourly emissions capacity. The “amount”
of pollutants “emitted” from a source can “increase” if a source makes a
change that allows it to operate more hours without increasing the
hourly rate of emissions, but such a change would not be captured by
any version of an hourly rate test.

11

court noted that other Clean Air Act provisions distinguish
between actual, potential, and allowable emissions: “If
Congress had intended for ‘increases’ in emissions to be
measured in terms of potential or allowable emissions, it
would have added a reference to ‘potential to emit’ or
‘emission limitations.’ The absence of such a reference
must be given effect.” Jd. Accordingly, the court found that
the “plain language” of the modification definition man-
dates that EPA examine “actual emissions instead of
potential or allowable emissions.” Jd. Unlike the Fourth
Circuit, the D.C. Circuit has authority to determine the
validity of EPA regulations, a fact that provides an inde-
pendent basis for reversal. See 42 U.S.C. § 7607(b).

To the extent that the validity of the actual annual
emissions test is not fully resolved by the plain language
of the “modification” definition alone, other provisions of
the PSD program make it clear that the “modification”
definition refers to actual emissions. The program applies
to “major emitting sources,” expressly defined in terms of
their total annual emissions. See 42 U.S.C. § 7479(1). It
would be incongruous to define a “modification” of these
major sources in terms of anything but increases in annual
emissions. The compliance provisions likewise speak in
terms of limits on actual emissions, see, e.g., 42 U.S.C.
§ 7475(a)(1), (3), making it exceedingly unlikely that
Congress could have intended a threshold test to allow
actual emissions increases to go unregulated.

Moreover, the purpose of the PSD program supports
the actual annual emissions test but not the hourly rate
test. The PSD program seeks to prevent increases in the
emission of pollutants in attainment areas, that is, areas
in compliance with ambient air quality standards. See 42
U.S.C. § 7470; Ala. Power v. Costle, 636 F.2d 323, 346-351

12

(D.C. Cir 1979). It does so, as the Fourth Circuit correctly
stated, by “fix[ing] on the actual emissions from a site.”
411 F.3d at 543; see also Alaska Dept. of Environmental
Conservation v. EPA, 540 U.S. 461, 470-471 (2004). Con-
gress declared that the PSD program is intended “to
assure that any decision to permit increased air pollution
in [attainment areas] is made only after careful evaluation
of all the consequences of such a decision and after ade-
quate procedural opportunities for informed public par-
ticipation.” 42 U.S.C. §7470(5). Congress’s goal of
preventing increased pollution emissions without “careful
evaluation” and “public participation” would be thwarted
by the hourly rate test because it allows increased emis-
sions without any agency evaluation or public participa-
tion.”

* Moreover, if the court of appeals were correct that consistency
requires that the hourly rate test be applied in identifying “modifica-
tions” in attainment areas under the PSD program, that would
presumably mean that the same test must also be applied to “modifica-
tions” in non-attainment areas under the Non-Attainment New Source
Review (“NNSR”) program. As under the PSD provisions, the definition
of “modification” for NNSR is incorporated by reference to the NSPS
provision. See 42 U.S.C. § 7501(4). Application of the hourly rate test
under NNSR would have disastrous consequences for air quality. The
purpose of the NNSR program is to decrease the total amount of
pollution emissions in non-attainment areas so that the national
ambient air quality standards can be achieved, but that purpose would
be thwarted if regulatory authorities must focus on hourly emission
rates rather than actual annual emissions. Indeed, if EPA were stuck
with the hourly rate test under the NNSR program, air pollution in
non-attainment areas could get much worse and EPA could do little
about it.

13

Il. THE PRESUMPTION OF CONSISTENCY DOES
NOT SUPPORT THE INVALIDATION OF THE
ACTUAL ANNUAL EMISSIONS TEST

In refusing to apply the actual annual emissions test,
the Fourth Circuit relied principally, if not entirely, on the
presumption of consistency—the principle that a word
appearing in different statutory provisions should be given
a consistent meaning. This Court long ago warned, how-
ever, that “only mischief can result” i . term appearing in
two statutory provisions must be “given one meaning
regardless of the statutory context.” Lee v. Madigan, 358
U.S. 228, 231 (1959). The Fourth Circuit’s decision in this
case reveals exactly the sort of mischief this Court meant.
There is no basis in principles of statutory construction or
in this Court’s cases for concluding that EPA must employ
the same test for emissions increases under the PSD and
NSPS programs. Moreover, even if EPA must employ
identical tests for both programs, that conclusion would in
no way mean that the actual annual emissions test is
invalid.

A. This Court Has Unanimously Rejected the
Argument that a Term Must Be Construed
Identically Whenever It Is Defined in a
Single Statutory Provision

This Court has long recognized a presumption that a
term be given a consistent meaning when it appears in
different provisions of the same statute. See, e.g., Atlantic
Cleaners & Dyers, Inc. v. United States, 286 U.S. 427, 433
(1932) (“[T]here is a natural presumption that identical
words used in different parts of the same act are intended
to have the same meaning.”); 2A Norman J. Singer, Stat-
utes and Statutory Construction 357 (6th ed. 2000). The

14

presumption of consistency arises from the principle that
“a phrase gathers meaning from the words around it.”
General Dynamics Land Systems v. Cline, 540 U.S. 585,
591 (2004). Thus, a “provision that may seem ambiguous
in isolation is often clarified by the remainder of the
statutory scheme—because the same terminology is used
elsewhere in a context that makes its meaning clear.”
United Sav. Assn. of Tex. v. Timbers of Inwood Forest
Associates, Ltd., 484 U.S. 365, 371 (1988).

The Fourth Circuit applied the presumption, however,
in a manner at odds with this Court’s cases and oft-
repeated instructions. The Fourth Circuit held that the
presumption rigidly requires identical regulatory tests in
different programs that make use of the same statutory
term whenever Congress has given the term a single
statutory definition. As this Court has long recognized,
however, the presumption of consistency “is not rigid” and
“readily yields” when statutory context reveals that a term
should be construed differently in different statutory
provisions. Atlantic Cleaners & Dyers, Inc. v. United
States, 286 U.S. 427, 433 (1932). This Court’s cases are
replete with instances in which the presumption of consis-
tency was rejected. In a passage that this Court has

* See, e.g., Wachovia Bank v. Schmidt, __ U.S. __, 126 S.Ct. 941
(2006) (holding that the word “located” as its appearances in the
banking laws “is a chameleon word; its meaning depends on the context
in and purpose for which it is used”); General Dynamics Land Systems,
Inc. v. Cline, 540 U.S. 581 (2004) (holding that the word “age” has
different meanings in different provisions of the Age Discrimination in
Employment Act); United States v. Cleveland Indians Baseball Co., 532
U.S. 200 (2001) (construing the phrase “wages paid” to have different
meanings in different parts of the tax code); Atlantic Cleaners & Dyers,
Inc. (holding that the word “trade” has a more encompassing meaning
in Section 3 than in Section 1 of the Sherman Act).

15

declared that “[t}he tendency to assume that a word which
appears in two or more legal rules, and so in connection
with more than one purpose, has and should have pre-
cisely the same scope in all of them, runs all] through legal
discussions. It has all the tenacity of original sin and must
constantly be guarded against.” Cline, 540 U.S. at 585 n.8
(quoting Cook, “Substance” and “Procedure” in the Conflict
of Laws, 42 Yale L.J. 333, 337 (1933)).

Notwithstanding this Court’s repeated instruction
that the presumption of consistency must “readily yield”
when statutory context supports a different result, the
Fourth Circuit asserted that the presumption of consis-
tency is “effectively irrebuttable” under the Clean Air Act
because Congress defined the term “modification” for both
PSD and NSPS in a single provision. As the Fourth Circuit
stated: “Congress’ decision to create identical statutory
definitions of the term ‘modification’ has affirmatively
mandated that this term be interpreted identically in the
two programs.” 411 F.3d at 550.

In Robinson v. Shell Oil Co., 519 U.S. 337 (1997), a
case also arising from the Fourth Circuit, this Court
unanimously rejected an argument identical to the one
adopted by the court of appeals here, and ruled that
Congress’s use of a single statutory definition of a term
does not mean that the term must be given an identical
construction in every instance. Robinson addresses
whether the term “employee” could include past and
present employees in some provisions in Title VII but only
present employees in other provisions. The Fourth Circuit
had held that the term must be given identical meanings
throughout the statute because Congress had given the
word a single statutory definition. See Robinson v. Shell
Oil Co., 70 F.3d 325, 328-331 (4th Cir. 1995). As the court

16

of appeals stated, “employee” could only mean one thing
throughout Title VII because “Title VII defines ‘employee’
for purposes of all provisions of Title VII.” Jd. at 329-330.
This Court unanimously reversed, holding that the statu-
tory definition of “employee” did not resolve the question
because the definition “is consistent with either current or
past employment.” Robinson, 519 U.S. at 542. Finding
that the term “employee” is ambiguous as to whether it is
limited to current employees, this Court held that the
ambiguity could be resolved differently in the different
statutory provisions in which the term appears.

Robinson dictates reversal. Robinson demonstrates
that a statutory term can be given different meanings as
used in different provisions notwithstanding the fact that
Congress gave the term a single statutory definition. Just
as the term “employee” appears in various provisions in
Title VII and is defined in a single statutory provision, so
the term “modification” appears in both the NSPS and
PSD provisions and is defined in a single statutory provi-
sion. Just as the definition of “employee” in Title VII does
not resolve whether it covers both past and present em-
ployees, the definition of “modification” in the Clean Air
Act does not resolve complex questions of how “increases”
in air pollution emissions should be measured.’ Thus,

" Under the Fourth Circuit’s conclusion that identical regulatory
tests for “modification” are required, it would appear that EPA could
not, for reasons of technological feasibility or administrative conven-
ience, choose to measure emissions increases by volume in one program
and by weight in the other. The presumption of consistency, however,
addresses only whether a term should be construed to have a consistent
interpretation across statutory provisions and does not speak to the
particulars of the regulatory tests by which an agency’s interpretation
is put into action.

17

while the Fourth Circuit held that Congress’s decision to
employ a single definition of “modification” applicable to
both the NSPS and PSD program requires that the term
be “interpreted identically,” 411 F.3d at 550, Robinson
holds that Congress’s use of a single definition of “em-
ployee” does not require that the term be interpreted
identically in every provision.

One difference between Title VII and the Clean Air
Act bears special emphasis. Title VII does not delegate
regulatory and thus interpretive authority to an adminis-
trative agency, but the Clean Air Act unquestionably gives
EPA authority to promulgate regulations establishing
exactly how emissions “increases” should be measured. As
the D.C. Circuit correctly ruled, judicial review of the
validity of EPA regulations like those embodying the
actual emissions test must “apply a highly deferential
standard of review,” under which the regulations can be
set aside only if it “exceeds EPA’s statutory jurisdiction,
authority, or limitations or is arbitrary, capricious, an
abuse of discretion, or otherwise not in accordance with
law.” New York v. EPA, 413 F.3d at 17 (quoting 42 U.S.C.
§ 7607(d)\(9)). For the reasons discussed in Part I, supra,
EPA’s decision to employ an actual annual emissions test
for the PSD program is eminently reasonable and is
entitled to deference.

B. Rowan Does Not Support the Fourth Cir-
cuit’s Decision

The Fourth Circuit placed particular reliance on this
Court’s decision in Rowan Cos. v. United States, 452 U.S.
247 (1981), which it characterized as addressing “a situa-
tion strikingly similar to the one at hand,” 411 F.3d at 547.

18

Rowan, however, supports neither the “effectively irrebut-
table” presumption of consistency adopted by the court of
appeals nor the court’s rejection of the actual annual
emission test.

Rowan addresses the validity of Treasury Department
regulations construing the meaning of the word “wages” as
it appears in the Federal Insurance Contributions Act
(FICA), the Federal Unemployment Tax Act (FUTA), and
the income tax withholding provisions of the tax code. The
Treasury Department had adopted regulations requiring
employers to include employer-provided meals and lodging
in computing “wages” under FICA and FUTA but not in
calculating “wages” for income tax withholding purposes.
This Court held that the various tax code provisions were
best construed to employ a single meaning of “wages.” In
holding that a consistent meaning of “wages” is required
by the tax code, Rowan does not employ anything like the
principle adopted by the Fourth Circuit—that the use of a
single statutory definition establishes an “effectively
irrebuttable” presumption that an agency must employ
identical regulatory tests.

Instead, employing ordinary principles of statutory
construction, Rowan holds that Congress intended the
Treasury Department to employ a consistent interpreta-
tion of “wages.” This Court carefully examined the text,
purposes, legislative history, and regulatory history of the
provisions at issue, and concluded that, read together,
these sources demonstrate a congressional intent that the
Treasury Department construe the term “wages” consis-
tently. The Court supported its conclusion with the texts of
the three statutes, which define “wages” in “substantially
the same language.” 452 U.S. at 255. The fact that Con-
gress employed nearly identical definitions of wages in the

19

different statutes was not the end of this Court’s analysis
but rather only the beginning, as the similarity provided
“strong evidence that Congress intended ‘wages’ to mean
the same thing” in each statute. Jd. Other sources relied
upon in Rowan supported the conclusion that consistent
meanings were intended. This Court thus relied on the
legislative history and purposes of the tax code provisions
at issue, finding that these sources “reveal a congressional
concern for ‘the interest of simplicity and ease of admini-
stration.’” 452 U.S. at 255 (quoting S.Rep. No. 1631, 77th
Cong., 2d Sess., 165 (1942)). Congress’s interest in simplic-
ity and ease of administration would be jeopardized, this
Court reasoned, if employers were required to calculate
wages differently in different tax programs. /d. at 257."

* Rowan suggests that the Treasury Department was entitled to
diminished deference for regulations interpreting the term “wages”
because those regulations amounted to interpretive regulations adopted
pursuant to a general grant of rulemaking authority. See Rowan, 452
U.S. at 251 (“[W]Je owe the interpretation less deference than a regula-
tion issued under a specific grant of authority to define a statutory term
or prescribe a method of executing a statutory provision.”). That aspect
of Rowan may no longer be good law. As Justice Scalia has explained,
the era in which this Court distinguished the degree of deference owed
to agency statutory constructions based on whether the construction is
embodied in “interpretive” rather than “legislative” regulations or
whether the agency’s rulemaking authority is general or specific “came
to an end with our watershed decision in Chevron, which established
the principle that ‘a court may not substitute its own construction of a
statutory provision for a reasonable interpretation made by the
administrator of an agency.’” Christensen v. Harris County, 529 US.
576, 589 (2000) (Scalia, J., concurring) (quoting Chevron, 467 U.S. at
844). If the term “modification” is ambiguous (and the D.C. Circuit
concluded that it unambiguously refers to actual emissions), EPA is
entitled to the full measure of deference under Chevron for its construc-
tion of the term and, correspondingly, it has authority to determine
whether differences between the NSPS and PSD programs require
different tests for measuring modifications.

20

Rowan does not lend any support to the creation of an
“effectively .crebuttable” presumption of consistency
whenever Congress enacts a single definition of a term
appearing throughout a statute. On the contrary, Rowan is
an unremarkable application of the presumption of consis-
tency. In Rowan, this Court found that the text, purposes,
and legislative history of the tax provisions established no
basis for departing from consistency and, in fact, affirma-
tively demonstrated a congressional! intent that the term
be construed consistently.

The considerations supporting this Court’s conclusion
in Rowan are absent here. There is no basis in the statu-
tory text, legislative history, or purposes of the PSD and
NSPS programs to conclude that Congress intended the
two programs to be governed by identical regulatory tests
without regard to any differences in the programs. There
is no reason to conclude that, in incorporating the NSPS
definition of modification in the PSD program, Congress
was concerned about simplicity and ease of administration
as it was in enacting the provisions of the tax code at issue
in Rowan. Of course, simplicity and ease of administration
are salutary in any program, but in Rowan this Court
identified a specific reason for finding a congressional
intent that the tax code provisions be easily understood:
the provisions were intended to be applied by practically
every employer in the United States and therefore con-
cerns for simplicity and ease of administration were
paramount. The Clean Air Act’s PSD program, in contrast,
only applies to major sources of air pollution, which are
quite capable of adjusting to different tests in different
circumstances. Cf. Chevron, 467 U.S. at 848 (characteriz-
ing the Clean Air Act as “lengthy, detailed, technical,
complex, and comprehensive’).

21

As the Fourth Circuit and other courts have recog-
nized, there are fundamental differences between the PSD
and NSPS programs. Thus, if the plain meaning of the
modification definition does not require the actual annual
emission test for both programs, differences between the
PSD and NSPS programs could support different emis-
sions tests. The NSPS program focuses on uniform tech-
nology-based performance standards, which apply to all
new and modified sources in particular source categories
regardless of where they are located. See 42 U.S.C. § 7411.
The PSD program, in contrast, as the Fourth Circuit
recognized, “fixes on the actual emissions from a site.” 411
F.3d at 543; see also N. Plains Res. Council v. EPA, 645
F.2d 1349, 1356 (9th Cir. 1981) (“The NSPS program is
*** equipment oriented. On the other hand, the PSD
program [is] site oriented.”).

C. The Actual Annual Emissions Test Would Be
Valid Even if EPA Were Required to Employ
the Same Test for the NSPS and PSD Pro-
grams

Having mistakenly ruled that EPA is required to
employ the same test for measuring emissions increases
under both the PSD and NSPS programs, the Fourth
Circuit compounded its mistake by ruling that inconsis-
tency alone provides a ground for invalidating the actual
annual emissions test. Even if the Fourth Circuit were
correct that EPA must adopt identical emissions tests
under the two programs, it would not mean that the actual
annual emissions test is invalid. Consistency could be
established in any of three ways: the actual annual emis-
sions test could be required for both the PSD and NSPS
programs, the hourly rate test could be required for both

22

programs, or some other test could be required for both
programs. The conclusion that identical tests must be
adopted for both the NSPS and PSD programs, even if it
were correct, says nothing about what test is valid.

The presumption of consistency can require invalida-
tion of a statutory interpretation only in circumstances not
present here: when it is clear how a statutory term should
be construed in one provision and an inconsistent con-
struction of the term has been given to the term appearing
in another provision. For instance, in Cohen v. de la Cruz,
523 U.S. 213 (1998), this Court examined the meaning of
the phrase “debt for” as it appeared in Section 532(a)(2)(A)
of the bankruptcy code. In Cohen, the Court first found
that the term was used for identical purposes in various
bankruptcy provisions, and the Court therefore concluded
that the term should be given the same meaning in each
provision. Jd. at 220. Next, the Court found that the term
had a clear meaning as it was used in one provision,
Section 532(a)(9). Jd. Finally, the Court reasoned that the
clear meaning of the term as it appeared in Section
532(a\(9) should be imported into the provision at issue.
Id. (“It is clear that ‘debt for’ in [Section 532(a)(9)] means
‘debt arising from’ or ‘debt on account of,’ and it follows
that ‘debt for’ has the same meaning in § 523(a)(2)(A).”). To
put this reasoning in generic terms, a court can invalidate
an agency's statutory construction for violating the pre-
sumption of consistency if it finds that a term appearing in
Provisions 1 and 2 must be construed consistently, finds
that the term appearing in Provision 1 clearly has mean-
ing X, and then finds that the term appearing in Provision
2 should also be given meaning X. But where there is no
authoritative basis for determining what the term means
in either Provision 1 or 2, inconsistent constructions

23

establish no basis for invalidating the agency’s construc-
tion.

The Fourth Circuit did not adhere to this reasoning. It
did not hold that Congress mandated an hourly rate test
for either the NSPS or PSD program. The only reason it
gave for preferring one test to the other is that the hourly
rate test was adopted first: “No one disputes that prior to
enactment of the PSD statute, the EPA promulgated NSPS
regulations that define the term ‘modification’ so that only
a project that increases a plant’s hourly rate of emissions
constitutes a ‘modification. The EPA must, therefore,
interpret its PSD regulations defining ‘modification’
congruently.” 411 F.3d at 550. As the D.C. Circuit held,
however, there is no basis for finding that Congress
intended to incorporate the regulatory hourly rate test in
enacting the PSD provisions. See New York v. EPA, 413
F.3d at 19-20. Indeed, the Fourth Circuit appears to have
recognized that the hourly rate test is not mandated by
the text of the statute, as the court recognized EPA’s
authority to adopt a different test. 411 F.3d at 550. (“Of
course, this does not mean that this regulatory interpreta-
tion must be retained indefinitely. The EPA retains its
authority to amend and revise this and other regula-
tions.”). Thus, the only basis the court of appeals gave for
finding that the PSD program must apply the hourly rate
test rather than the actual annual emissions test is that
the hourly rate test came first in time. That conclusion is
unsupported by law or logic, and the court provided none.

+

24

CONCLUSION

For the foregoing reasons, as well those in the briefs
filed by petitioners and their amici, the judgment of the
United States Court of Appeals for the Fourth Circuit
should be reversed.

Respectfully submitted,

JARED A. GOLDSTEIN

ROGER WILLIAMS UNIVERSITY
SCHOOL OF LAW

Ten Metacom Ave.

Bristol, Rhode Island 02908

(401) 254-4594

Counsel for Amici Curiae

‘4 FILED
No. 05-848 JUL 2 1 2006
| ICE OF THE CLERK

In The UPREME COURT, U.S.
Supreme Court of the Gnited States

e

ENVIRONMENTAL DEFENSE, et al.,

Petitioners,
Vv.

DUKE ENERGY CORPORATION,
Respondent.

¢

On Writ Of Certiorari
To The United States Court Of Appeals
For The Fourth Circuit

®

BRIEF OF FORMER EPA ADMINISTRATORS
CAROL M. BROWNER AND RUSSELL E. TRAIN
AS AMICI CURIAE IN SUPPORT OF PETITIONERS

¢

HOLLy D. GORDON*

DEBORAH A. SIVAS

STANFORD LAW SCHOOL
ENVIRONMENTAL LAW CLINIC

Crown Quadrangle

559 Nathan Abbott Way

Stanford, California 94305-8610

Telephone: (650) 725-8571

Facsimile: (650) 723-4426

*Counsel of Record

Counsel for Amici Curiae

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

Ww

TABLE OF CONTENTS

Page

INTEREST OF AMICI CURIAE....................ccssessesseseees 1

SUMMARY OF THE ARGUMENT ...................eeeeeeees 2

IIT iseiiesduinvicsietuindsinddennsiiclbdaiisobiiiihaiamsedpedseipaeieninliaieiihden 3
I. SECTION 307 OF THE CLEAN AIR ACT

II.

REQUIRES JUDICIAL REVIEW OF NATION-
ALLY APPLICABLE REGULATIONS TO OC-
CUR SOLELY IN THE DISTRICT OF
COLUMBIA CIRCUIT COURT ........0.0...c cee

A. Rather than Applying the Regulations to
the Facts to Determine if Enforcement Was
Warranted, the Fourth Circuit Improperly
Invalidated the 1980 PSD Regulations.........

B. Uniform Judicial Review of Nationally Ap-
plicable Regulations Is Critical to EPA's
Ability to Properly Carry Out the Directives
I sii saisiidscciinnndincmeceeniniaions

EVEN IF THE FOURTH CIRCUIT HAD JURIS-
DICTION, ITS REGULATORY INTERPRETA-
TION DISREGARDS THE PLAIN LANGUAGE
OF THE PSD REGULATIONS AND VIOLATES
ET iiiieeahitbicesnenicneilinnsisialioeuiedguilasdinainniamebtiuciiebinn

A. Industry’s Hourly Test Is Contrary to the
Plain Language of EPA’s PSD Regulations...

B. The EPA Regulations and Related Case Law
Regarding PSD Confirm that Duke Was Re-
quired to Consider Increased Emissions
Caused by Increased Hours of Operation
When Evaluating Whether PSD Require-
ments Applied to its Plant Renovations........

13

14

rH

TABLE OF CONTENTS — Continued
Page

C. An Hourly Emissions Rate Test for PSD
Would Undermine the Purposes of the Act’s
elie 21

D. Industry, Including Duke, Was Well Aware
that the Test for PSD Was Annual Emis-
sions, Not Hourly Emissions......................... 24

END <seininsncnnsinsinitainieniniinigsediaiamusacaiecdbepvdnidnusnad . 27

ill

TABLE OF AUTHORITIES
Page
FEDERAL CASES

Adamo Wrecking v. United States, 434 U.S. 275
Pe concshsshidnivicssendanieedieliniaicebtieeddnitiaialentsippdndsuesieaingipdiadidiaia 7,9, 11

Alabama Power Co. v. Costle, 636 F.2d 323 (D.C.
at 11, 20

Lubrizol Corp. v. Train, 547 F.2d 310 (6th Cir. 1976)... 4, 11

New York v. Environmental Protection Agency, 413

I el 5, 8, 9, 10
Northern Plains Resource Council v. EPA, 645 F.2d

2 SEEN ee ee i cee Re 5, 21
Puerto Rican Cement Co. v. Environmental Protec-

tion Agency, 889 F.2d 292 (1st Cir. 1989)........... 7, 18,19
United States v. Duke Energy, 278 F. Supp. 2d 619

I a 13, 16
United States v. Duke Energy, 411 F.3d 539 (4th

a 6, 7, 16
United States v. Ethyl Corp.; 761 F.2d 1153 (5th

A TERR ASE TREE EE Se POL aD g
United States v. Ho, 311 F.3d 589 (5th Cir. 2002).............. 7
United States v. Ohio Edison Co., 276 F. Supp. 2d

I 6,19
United States v. Southern Indiana Gas and Electric

Co., 245 F. Supp. 2d 994 (S.D. Ind. 2003)................. 6, 20

Whitman v. American Trucking Ass'ns, 531 U.S.
RAR RSE 2 97 A CESARE Sit AIC OS OCR ODE iE 9,11

lV

TABLE OF AUTHORITIES - Continued

Page

Wisconsin Electric Power Company v. Reilly, 893
Pe Ne CHE EE GED iincensrnccevtacssosinticegsempininios 5, 6, 7, 18

DOCKETED CASES

Chemical Manufacturers Ass’n v. Environmental

Protection Agency, Nos. 79-1112, et all. .............0ccccccceeeeees 8
FEDERAL STATUTES

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Se as SP cicercncvniiiciicccsichetintiatisiesisaitihianadimie 2, 5, 14
Ge se PIES stcidiicisiiassecctioretuatene 13
GD es 6 FSO tivicttinincenbiitineeeimnaene 13
BEB BIB iors 5, 21
Gs B Pee sicsevisiniinctttendcicanvitnadionmiemene 11
Be Bs Oe Bence ssisctisiiecesdnidiiilacmmepeinnabensiaenenn 11, 22
CD EA. B Fee ictvtsicisimisenictcscisnimmeciinaceamesieaiaal 22
Ge is 2 Pi iintintitiniomniinmenaee 22
OD es Pe iti ioiisessthsenicietadectadencectimmmmaaain 22
es © FD titiitnisiciistincimiammaumnmaane 11, 22
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Go PTR, © Pr iccecsnsnincivnsssticnincstccccsccnitaneclasminsidiaiaal 11

GB TENE. F FP Pee rsseniccictsinnunanninemissiunsbaniamaan 2

TABLE OF AUTHORITIES -— Continued

Page
EE 4,7
EERE Ee 4

FEDERAL RULES AND REGULATIONS
ESET SES CR 1
i cieulintennivonncs 10
a csccpmunnsmnneni 10
EE CEE 14, 16
a IED nc cccvcnsncccesonveconsecooceoooosorente 16
ae Be IFIED cncecccccecesevecccsecccenesescossoccosscoses 14
Ey Oy I IIIIED cccocccocceccccosesesosussccosecscosesecosces 15
TR a TED 15
40 C.F.R. § 51.166(b)(21)(ii)............ sieinchitiatanie 5, 15, 16
| | 15, 23
a. clnbumbenovetuboowanen 22
i coateininbantonts 14
Sn 5
43 Fed. Reg. 26,380 (June 19, 1978) .....0.0......cccccccceeceeceeees 11
45 Fed. Reg. 52,676 (Aug. 7, 1980)........0.0..0cccccc0c0e. 11, 16, 23
57 Fed. Reg. 32,314 (July 21, 1992) ........0ccccccceee. 19, 21, 22
61 Fed. Reg. 38,250 (July 23, 1996).......0000.0.0.0cccceeeee 24, 25
62 Fed. Reg. 38,856 (July 18, 1997) ..................ccccceeseeseeees 11

67 Fed. Reg. 80,186 (Dec. 31, 2002) .......0000000000..... 19, 25, 26

TABLE OF AUTHORITIES ~— Continued

Page
69 Fed. Reg. 23,951 (April 30, 2004).......00.... eee 11
70 Fed. Reg. 61,081 (Oct. 20, 2005) ................ 12, 20, 26, 27

REPORTS AND PUBLICATIONS

Air Pollution: EPA Should Improve Oversight of
Emissions Reporting at Large Facilities, Gov-
ernment Accounting Office, April 2001................... 12, 13

New Source Review Rule Change Harms EPA’s
Ability to Enforce Against Coal-fired Electric
Utilities, Office of Inspector General, Report No.
2004-P-00034, Sept. 30, 2004 .0...........ccceeceeceeeeeeeeeeeeeeeees 12

INTEREST OF AMICI CURIAE'

Amici curiae’ are a bipartisan team of former Envi-
ronmental Protection Agency (“EPA”) Administrators,
spanning over a decade of service, with an interest in the
uniform and consistent application of the Clean Air Act’s
(“Act”) New Source Review (“NSR”) program to regulated
entities across the country. This case is not just about an
enforcement action against a single regulated entity.
Sanctioning the Fourth’s Circuit’s decision to invalidate
long-standing EPA regulations would undermine Congress’
intent to have prompt judicial review of nationally appli-
cable regulations in a single court. As the agency primarily
charged with implementing the Act, EPA has worked
diligently over the last three and one half decades to
appropriately and efficiently promulgate final rules on
which EPA and the states could base state implementation
plans, permits for regulated entities, and enforcement
actions. Ad hoc review of final rules by the lower courts
would undermine EPA’s ability to carry out these impor-
tant functions that protect our Nation's air. In addition,
amict have a strong interest in ensuring that long-
standing consistent interpretations of EPA rules are
upheld by the courts.

' All parties have consented to the filing of this brief in letters that
are on file with the Clerk. Pursuant to Rule 37.6, counsel! for amici
state that no counsel for a party authored this brief in whole or in part.
The Energy Foundation made a monetary contribution to cover the
costs of printing the bnef

* Amici are Former EPA Administrator Caro! M. Browner (Jan.
1993 to Jan. 2001) and Former EPA Administrator Russell E. Train
(Sept. 1973 to Jan. 1977).

2

SUMMARY OF THE ARGU MENT

When the Clean Air Act was enacted in 1970, and
amended in 1977, Congress was careful to include particu-
larized judicial review provisions that streamlined and
forced prompt challenges to nationally applicable regula-
tions. See 42 U.S.C. § 7607(b). Section 307 of the Act
allows only the United States Court of Appeals for the
District of Columbia Circuit (“D.C. Circuit”) (and, on
appeal, the Supreme Court) to make decisions regarding
the validity of such regulations. Congress recognized that
if other circuit and district courts across the country were
allowed to invalidate these regulations at any point in time,
it would substantially interfere with EPA's ability to carry
out the directives of the Act. Therefore, the Fourth Circuit
can only interpret EPA’s regulations; it cannot invalidate or
effectively re-write EPA’s regulations as it did in this case.
The Fourth Circuit has overstepped its jurisdictional
bounds in this case and the decision must be reversed.

In the alternative, even if the Fourth Circuit had
jurisdiction, its alleged interpretation of the regulations is
improper as it runs counter to EPA's long-standing consis-
tent interpretation of the regulations. The Act, as
amended in 1977, requires any major source (i.e., a source
that emits above certain thresholds), to obtain a permit
prior to undertaking a “modification,” defined in the Act as
any physical or operational change that “increases the
amount of any air pollutant emitted by such source or
which results in the emission of any air pollutant not
previously emitted.” 42 U.S.C. § 7411(a\4). In this case, the
Clean Air Act programs at issue are the New Source Per-
formance Standards (“NSPS”) and Prevention of Significant
Deterioration (“PSD”). The NSPS program applies location-
neutral, general emissions rate limitations to categories of

3

sources, while the PSD program requires case-by-case
facility-wide emissions control technologies based on
ambient air quality at the location of the source. Due to
these fundamental differences in the programs, EPA has
consistently used different rules for imposing the require-
ments of each program on regulated entities. While EPA
interprets its NSPS rules to define “modification” as a
physical or operational change that will increase a source's
maximum hourly emissions rate, the plain language of the
PSD rules establish an actual annual emissions test. Since
1980, EPA has consistently applied an actual annual
emissions test, which includes the facility's number of
hours of operation. Industry, including Respondent Duke
Energy, was well aware of that test. The Fourth Circuit's
decision should be reversed and remanded to carry out
EPA’s enforcement action and apply the actual annual
emissions test to the facts of this case.

6

ARGUMENT

I. SECTION 307 OF THE CLEAN AIR ACT REQUIRES
JUDICIAL REVIEW OF NATIONALLY APPLICA-
BLE REGULATIONS TO OCCUR SOLELY IN THE
DISTRICT OF COLUMBIA CIRCUIT COURT.

Although this case began as an enforcement action
against Duke Energy for modifying its electric generating
plants without applying for required permits or installing
up-to-date pollution controls, it has turned into a platform
for industry to entice the Fourth Circuit into improperly
invalidating nationally applicable regulations that were
promulgated over 25 years ago. The job of the lower courts
was to apply EPA's regulations to the facts and to deter-
mine if Duke violated those regulations. Instead, under

4

the guise of interpreting the regulations, the Fourth
Circuit has, in effect, improperly invalidated EPA's long-
standing PSD regulations. Affirming the Fourth Circuit's
decision would allow regulated entities to belatedly attack
long-standing rules rather than promptly challenging
disputed rules, thereby significantly disrupting EPA’s
ability to carry out the Clean Air Act’s directive “to protect
and enhance the quality of the Nation’s air resources so as
to promote the public health and welfare.” 42 U.S.C.
§ 7401(b)(1). :

A. Rather than Applying the Regulations to
the Facts to Determine if Enforcement Was
Warranted, the Fourth Circuit Improperly
Invalidated the 1980 PSD Regulations.

Section 307 of the Clean Air Act provides that “[a]
petition for review of action of the Administrator in prom-
ulgating ... nationally applicable regulations ... may be
filed only in the United States Court of Appeals for the
District of Columbia.... Any petition for review under
this subsection shall be filed within sixty days from the
date notice of such promulgation ... appears in the Fed-
eral Register.” 42 U.S.C. § 7607(b\(1). In addition, section
307 provides that challenges to nationally applicable
regulations shall not occur in civil enforcement proceed-
ings. 42 U.S.C. § 7607(b\(2). The purpose of the section 307
judicial review provision is “to avoid needless delays in the
implementation of important national programs caused by
incessant litigation and inconsistent decisions .. . [and] to
ensure uniformity in decisions concerning issues of more
than purely local or regional impact.” Lubrizol Corp. v.
Train, 547 F.2d 310, 315 (6th Cir. 1976) (internal citations
omitted). Rather than promoting uniformity, the Fourth

+)

Circuit’s decision flies in the face of the purposes of
streamlined judicial review for nationally applicable
regulationzis.

The Clean Air Act requires modified sources to comply
with New Source Performance Standards (“NSPS”) and
Prevention of Significant Deterioration (“PSD”) require-
ments by, inter alia, installing emissions control technolo-
gies. 42 U.S.C. §§ 7411, 7470 et seg. Under the Act,
“modification” is defined as “any physical change in, or
change in the method of operation of, a stationary source
which increases the amount of any air pollutant emitted
by such source or which results in the emission of any air
pollutant not previously emitted.” 42 U.S.C. § 7411(a)(4).
Although in the Act itself the broad definition of modifica-
tion is identical for NSPS and PSD, the regulations for
these provisions are different in order to account for the
different purposes of the programs. “The focus of the NSPS
program ... [is) the particular apparatus to which a
standard is applied. The NSPS program is therefore
equipment oriented. On the other hand, the PSD program
covers the whole stationary source, and focuses on where
the plant will be located and its potentiai effect on its
environs. The PSD program is therefore site oriented.”
Northern Plains Resource Council v. EPA, 645 F.2d 1349,
1356 (9th Cir. 1981) (internal citations omitted). Given the
differing purposes of the programs, EPA promulgated regula-
tions establishing an hourly emissions test for determining
whether a physical or operational change constitutes a
“modification” under the NSPS program, while establishing
an annual emissions test for the PSD program. 40 C.FR.
§ 60.14 (NSPS); 40 C.F-R. § 51.166(b)(21 ii) (PSD). See also
New York v. Environmental Protection Agency, 413 F.3d 3,
18 (D.C. Cir. 2005) (“New York I”); Wisconsin Electric

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385016_0237%3A29. Public record. Not legal advice.
