Industry groups and states recently filed petitions in the U.S. Supreme Court, seeking review of the D.C. Circuit’s June 26, 2012, decision in Coalition for Responsible Regulations, Inc. et al. v. EPA, 684 F.3d 102 (D.C. Cir. 2012). The decision addressed challenges to the following suite of EPA rules regulating greenhouse gases (GHGs) under the Clean Air Act: (1) the Endangerment Finding (74 Fed. Reg. 66,496; Dec. 15, 2009) and EPA’s denial of reconsideration of that finding (75 Fed. Reg. 49,556; Aug. 13, 2010); (2) the Tailpipe Rule (75 Fed. Reg. 25,324; May 7, 2010); (3) the Timing Rule (75 Fed. Reg. 17,004; April 2, 2010); and (4) the Tailoring Rule (75 Fed. Reg. 31,514; June 3, 0210). EPA promulgated these GHG regulations following the U.S. Supreme Court’s ruling in Massachusetts v. EPA, 549 U.S. 479 (2007), that the Act’s general definition of “air pollutant” was broad enough to encompass GHGs and that GHGs were an “air pollutant” that was potentially eligible for regulation under the mobile source provisions in Title II of the Act. For additional information about the various petitioners seeking U.S. Supreme Court review and their arguments, continue reading.
· The petition filed by the Utility Air Regulatory Group (UARG), a trade association of electric utilities and electric generating companies, seeks review of the D.C. Circuit’s decision insofar as it pertains to EPA’s Tailoring and Timing Rules. The UARG petition emphasizes that unlike the pollutants sulfur dioxide (SO2), nitrogen oxides (NOx) and particulate matter (PM), which are regulated under the Title I stationary source provisions of the Clean Air Act, carbon dioxide (CO2) does not deteriorate the quality of the air that people breathe. UARG argues that Massachusetts v. EPA does not compel regulation of GHGs under the Clean Air Act’s preconstruction and operating permit programs for stationary sources such as power plants. UARG also argues that U.S. Supreme Court review is needed to address the D.C. Circuit’s decision that petitioners lack standing to challenge the Timing and Tailoring Rules. The Washington Legal Foundation, a non-profit, public interest law and policy center based in Washington, D.C., filed an amicus curiae brief in support of UARG. WLF asserts that the U.S. Supreme Court needs to limit the applicability of Massachusetts to regulation of motor vehicle GHG emissions. For the text of the petition and amicus brief, click here and here.
· The state of Virginia filed a petition focusing on EPA’s Endangerment Finding and denial of reconsideration of that finding, arguing that evidence of “central relevance” to EPA’s Endangerment Finding that was not available during the comment period obligated the Administrator to convene a proceeding for reconsideration with procedural rights of notice and comment. Virginia also argues that EPA’s reasons for relying on the Intergovernmental Panel on Climate Change (IPCC) were undermined by the “climategate” data, namely internal emails and computer files from the University of East Anglia’s Climatic Research Unit, provided in the reconsideration petitions. Finally, the Virginia petition asserts that EPA impermissibly delegated its statutory authority to outside entities. Kentucky and Utah joined in the petition on the Endangerment Finding delegation issue. For the text of the petition, click here.
· The Pacific Legal Foundation, a nonprofit organization, filed a petition, arguing that the Endangerment Finding must be set aside because EPA violated the congressional mandate to submit the proposed Endangerment Finding to the Science Advisory Board for peer review as required by the Clean Air Act. For the text of the petition, click here.
· The petition filed by the Energy-Intensive Manufacturers Working Group on Greenhouse Gas Regulation and the Glass Packaging Institute focuses on EPA’s Tailoring Rule and use of the stationary source permitting provisions in the Clean Air Act to regulate GHGs. They argue that the D.C. Circuit used a mistaken approach to statutory construction and erred in determining that the Clean Air Act unambiguously requires application of the Title I Prevention of Significant Deterioration preconstruction and Title V operating permit programs to GHGs. For the text of the petition, click here.
· The American Chemistry Council (ACC) petition, which the West Virginia Manufacturers Association and other industry groups joined, focuses on the Tailoring Rule and argues that the D.C. Circuit violated principles of statutory construction in accepting EPA’s interpretation of the Act that the Agency concedes produces absurd results and allowing EPA to rewrite the statutory thresholds established by Congress for the stationary source permit programs when a reasonable, alternative interpretation existed. The ACC petition would have the U.S. Supreme Court limit the PSD permitting trigger to “NAAQS air pollutants,” namely SO2, NOx, PM, lead, carbon monoxide, and ground-level ozone which have national ambient air quality standards. The ACC petition also argues that review by the U.S. Supreme Court is warranted because of the “extraordinary national importance” of EPA’s regulation of GHG emissions. Other industry groups joining in the ACC petition are: American Frozen Food Institute; American Fuel & Petrochemical Manufacturers; American Iron and Steel Institute; 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 Manufacturers Association; National Association of Home Builders; The National Association of Manufacturers; National 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; and Wisconsin Manufacturers and Commerce. For the text of the petition, click here.
· The Chamber of Commerce of the United States, the State of Alaska, and American Farm Bureau Federation jointly filed a petition, arguing that EPA improperly relied upon the absurd results doctrine and that EPA's Endangerment Finding was “not in accordance with law” or was “arbitrary, capricious [and] an abuse of discretion.” The petition also challenges the Tailoring Rule, arguing that EPA incorrectly determined that GHG emissions from stationary sources must also be addressed under the Act’s PSD and Title V permitting programs once regulated under mobile source provisions of the Act. For the text of the petition, click here.
· The Coalition for Responsible Regulation, Alpha Natural Resources, Great Northern Project Development, and National Cattlemen’s Beef Association jointly filed a petition, focusing on whether EPA can properly impose GHG regulations that do not meaningfully mitigate the climate change risks identified as the basis for adoption of the regulations. They argue that “by concluding that EPA must regulate without showing that its rules will have any appreciable effect on the risk identified, the [D.C. Circuit panel] imputes to Congress the implausible intent of compelling futile regulation.” For the text of the petition, click here.
· The Southeastern Legal Foundation, Inc., a non-profit constitutional public interest law firm and policy center that advocates limited government, individual economic freedom, and the free enterprise system, along with other industry groups, and twelve members of Congress, jointly filed a petition arguing that EPA may not properly exercise authority over GHG emissions where EPA acknowledges that its interpretation of the Clean Air Act produces absurd results and is impossible to administer, particularly where there are alternative interpretations of the Act. The petition also argues that the D.C. Circuit erred in concluding that none of the petitioners had standing to challenge the Timing and Tailoring Rules. The twelve member of Congress joining the petition are: U.S. Representative Michele Bachmann; U.S. Representative Joe Barton; U.S. Representative Marsha Blackburn; U.S. Representative Kevin Brady; U.S. Representative Paul Broun; U.S. Representative Phil Gingrey; U.S. Representative Steve King; U.S. Representative Jack Kingston; U.S. Representative Tom Price; U.S. Representative Dana Rohrabacher; U.S. Representative John Shimkus; and U.S. Representative Lynn Westmoreland. The other industry groups joining the petition are: The Langdale Company; Langdale Forest Products Company; Langdale Timber Company; Langdale Farms, LLC; Langdale Fuel Company; Langdale Chevrolet, Inc.; Langdale Ford Company; Langboard, Inc. – MDF; Langboard, Inc. – OSB; Georgia Motor Trucking Association, Inc.; Collins Industries, Inc.; Collins Trucking Company, Inc.; Kennesaw Transportation, Inc.; J&M Tank Lines, Inc.; Southeast Trailer Mart, Inc.; Georgia Agribusiness Council, Inc.; Competitive Enterprise Institute; FreedomWorks; and Science and Environmental Policy Project. For the text of the petition, click here.
· The states of Texas, Alabama, Florida, Georgia, Indiana, Louisiana, Michigan, Nebraska, North Dakota, Oklahoma, South Carolina, South Dakota, and the Louisiana Department of Environmental Quality jointly filed a petition, arguing that the Tailoring Rule violates the Clean Air Act by replacing Congress’s unambiguous numerical permitting thresholds, and that the D.C. Circuit “improperly ducked this question on Article III standing grounds.” These states also ask the U.S. Supreme Court to reconsider or overrule Massachusetts v. EPA in light of the “absurd permitting burdens” that result from regulating CO2 as an air pollutant under the Act. For the text of the petition, click here.
The D.C. Circuit rejected all of these arguments in Coalition for Responsible Regulations, Inc. et al. v. EPA, 684 F.3d 102 (D.C. Cir. 2012). There, a three-judge panel of the D.C. Circuit consisting of Chief Judge Sentelle and Judges Rogers and Tatel denied petitions for review of the Endangerment Finding and Tailpipe Rule on the merits. The panel held that the Endangerment Finding was “consistent with Massachusetts and the text and structure of the [Clean Air Act].” and rejected the petitioners’ argument that EPA had failed to show “certain” endangerment of public health or welfare. The panel reasoned that “requiring that EPA find ‘certain’ endangerment of public health or welfare before regulating greenhouse gases would effectively prevent EPA from doing the job Congress gave it in [Clean Air Act] §202(a) – utilizing emission standards to prevent reasonably anticipated endangerment from maturing into concrete harm.” In upholding the Tailpipe Rule, the panel stated that EPA was, in essence, required to set forth the regulation having “determined that motor-vehicle emissions contribute to greenhouse gas emissions that, in turn, endanger the public health and welfare.” The panel further held that Petitioners lacked standing to challenge the Timing and Tailoring Rules, finding that Petitioners “failed to establish that the Timing and Tailoring Rules caused them ‘injury in fact,’ much less injury that could be redressed by the Rules’ vacatur.” According to the panel, “neither the Timing nor Tailoring Rules caused the injury Petitioners allege: having to comply with PSD and Title V for greenhouse gases.” Those injuries, the panel said, were caused by the statute and were not remediable by any judgment of the court.
Following the adverse panel decision, petitioners sought rehearing en banc before all of the active judges of the D.C. Circuit. By 6-to-2 vote, the D.C. Circuit denied the petitions for rehearing en banc on December 20, 2012. Judge Brown concurred with the panel’s determination that EPA may regulate GHGs in tailpipe emissions but did so “reluctantly” and did not agree that Massachusetts compels the same result for the stationary source Title V and the PSD programs and dissented on that issue. Judge Kavanaugh dissented. He would interpret “air pollutant” for purposes of the stationary source permit programs as applying to only the six criteria pollutants or NAAQS air pollutants. He wrote: “EPA chose an admittedly absurd reading over a perfectly natural reading of the relevant statutory text. An agency cannot do that.” Petitions for a writ of certiorari followed. Initially, all petitions for a writ of certiorari were due March 20, 2013; however, some groups applied for and obtained an extension of time to file their petition until April 19, 2013. EPA’s and other respondents’ responses are currently due in May 2013.
This article was authored by Gale Lea Rubrecht, Jackson Kelly PLLC. For more information on the author, see here.