american corn growers v epa 291_f_3d_1 dc cir 2002

8/3/2019 American Corn Growers v EPA 291_F_3D_1 DC Cir 2002

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291 F.3d 1, 54 ERC 1417, 351 U.S.App.D.C. 351, 32 Envtl. L. Rep. 20,658

(Cite as: 291 F.3d 1, 351 U.S.App.D.C. 351)

United States Court of Appeals,

District of Columbia Circuit.

AMERICAN CORN GROWERS ASSOCIATION,

Petitioner,

v.

ENVIRONMENTAL PROTECTION AGENCY,

Respondent.

State of Michigan, Department of Environmental

Quality, et al., Intervenors.

Nos. 99-1348 through 99-1352, 99-1357 through 99-

1359, 01-1111 through 01-1113.

Argued Feb. 25, 2002.

Decided May 24, 2002.

Rehearing and Rehearing En Banc Denied Sept. 19,

2002.

Industry and environmental groups challengedEnvironmental Protection Agency's (EPA) regional

haze regulation promulgated pursuant to Clean Air

Act. The Court of Appeals held that: (1) regulationviolated Clean Air Act by requiring states to engage

in regional rather than source-by-source analysis in

making Best Available Retrofit Technology (BART)

determinations concerning air pollution sources; (2)

EPA did not exceed its authority by adopting goal of

natural visibility and standard of no degradation;

and (3) environmental group's challenge was not ripe.

Regulation sustained in part and vacated in part.

Garland, Circuit Judge, filed opinion concurring

in part and dissenting in part.

West Headnotes

[1] Environmental Law 149E 267

149E Environmental Law

149EVI Air Pollution

149Ek266 Particular Sources of Pollution 149Ek267 k. In General. Most Cited Cases

(Formerly 199k25.6(5.1) Health and

Environment)

Environmental Protection Agency (EPA)

regional haze regulation violated Clean Air Act by

requiring states to engage in regional rather than

source-by-source analysis in deciding whether todesignate air pollution sources as subject to Best

Available Retrofit Technology (BART), and by

requiring regional analysis of anticipated degree of

improvement statutory factor in deciding what

BART controls to place on sources; requirementsinfringed on states' broad authority over BART

determinations granted by Act. Clean Air Act,

169A(b)(2)(A), (g)(2), as amended, 42 U.S.C.A. 7491(b)(2)(A), (g)(2); 40 C.F.R. 51.308(e)(1)(ii)

(B).


149E Environmental Law

149EVI Air Pollution

149Ek275 Particular Pollutants

149Ek276 k. In General. Most Cited Cases


Environment)

Environmental Protection Agency (EPA) did not

exceed its authority, in promulgating regional haze

regulation pursuant to Clean Air Act, by adoptinggoal of natural visibility and standard of no

degradation; goal and standard comported with Act's

goal of prevention of any future, and the remedying

of any existing, impairment of visibility. Clean Air

Act, 169A(a)(1, 4), as amended, 42 U.S.C.A.

7491(a)(1, 4); 40 C.F.R. 51.308(d)(1).


149E Environmental Law 149EXIIIJudicial Review or Intervention

149Ek662 k. Ripeness. Most Cited Cases

2011 Thomson Reuters. No Claim to Orig. US Gov. Works.
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Environment)

Court of Appeals' invalidation of Environmental

Protection Agency (EPA) regional haze regulation,based on finding of violation of Clean Air Act inrequirement that states engage in regional rather than

source-by-source analysis of air pollution sources in

connection with imposition of Best Available Retrofit

Technology (BART) controls, rendered unripe

environmental group's claim that regulation's

standards for air-quality improvement were

insufficiently rigorous, since EPA's modification of

regulation's BART provisions could result in changesto challenged standards. Clean Air Act, 169A, as

amended, 42 U.S.C.A. 7491;40 C.F.R. 51.308.

*1**351 On Petitions for Review of an Order of theEnvironmental Protection Agency*2**352 PeterGlaser argued the cause for Industry petitioners and

intervenors on the BART Issues in Case Nos. 99-

1348, 99-1349, 99-1350, 99-1351, 99-1352, 99-1356,

99-1357, 99-1358 and 99-1359. With him on the joint

briefs were Paul M. Seby, Henry V. Nickel, F.

William Brownell,Michael L. Teague,Kevin L. Fast,

David M. Flannery, Kathy G. Beckett, Scott D.

Goldman, Harold P. Quinn, Jr., William H. Lewis,Jr., and Michael A. McCord.

Kevin L. Fast argued the cause for Industry

petitioners in Case Nos. 01-1111, 01-1112 and 01-1113. With him on the joint briefs were Peter Glaser,Paul M. Seby, Henry V. Nickel, F. William

Brownell, andMichael L. Teague.

David S. Baronargued the cause and filed the briefs

for petitioner Sierra Club.

Jennifer M. Granholm, Attorney General, State of

Michigan, Thomas L. Casey, Solicitor General, and

John Fordell Leone, Assistant Attorney General,

were on the briefs for intervenor State of Michigan.

Pamela S. Tonglao, Kenneth C. Amaditz, and H.

Michael Semler, Attorneys, U.S. Department of

Justice, argued the causes for respondents. With them

on the brief was M. Lea Anderson, Attorney, U.S.

Environmental Protection Agency.

Erick Titrud argued the cause for intervenors State of

Maine, State of New Hampshire, State of Vermont,

and Tribal and Environmental intervenors. With him

on the joint brief were Ann Brewster Weeks,VickieL. Patton, William G. Grantham, G. Steven Rowe,

Attorney General, State of Maine, Philip T.McLaughlin, Attorney General, State of New

Hampshire, Maureen D. Smith, Senior Assistant

Attorney General, and William H. Sorrell, Attorney

General, State of Vermont.

Peter Glaser,Henry V. Nickel,F. William Brownell,

Michael L. Teague, Kevin L. Fast, Paul M. Seby,

Harold P. Quinn, Jennifer M. Granholm, Attorney

General, State of Michigan, John Fordell Leone,Assistant Attorney General, David M. Flannery,

Kathy G. Beckett, William H. Lewis, Jr., andMichael A. McCord were on the joint brief for

Industry and State intervenors, in support ofrespondents.

Mark L. Shurtleff, Attorney General, State of Utah,

Fred Nelson, Assistant Attorney General, and Susan

M. McMichael were on the brief for amici curiae

State of Utah and State of New Mexico Environment

Department, in support of respondent EPA.

Before: EDWARDS,RANDOLPH, andGARLAND,

Circuit Judges.

Opinion for the Court filed PER CURIAM.

Opinion concurring in part and dissenting in part

filed by Circuit JudgeGARLAND.

PER CURIAM:

In 1999, the Environmental Protection Agency

promulgated a final rule to address regional haze. See

Regional Haze Regulations, 64 Fed.Reg. 35,714 (July

1, 1999). The Haze Rule calls for states to play the

lead role in designing and implementing regional

haze programs to clear the air in national parks andwilderness areas that have been classified as

mandatory class I Federal areas,FN1 such asYellowstone*3 **353 National Park, Grand Canyon

National Park, and Shenandoah National Park. See40

C.F.R. 81.401-.437 (listing areas that have been

designated as Class I areas where visibility is an

important value). Numerous petitioners now

challenge the Haze Rule. We vacate the rule in part

and sustain it in part.
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FN1.Class I areas include all international

parks, national wilderness areas which

exceed 5,000 acres in size, national

memorial parks which exceed 5,000 acres insize, and national parks which exceed 6,000acres in size and which were in existence on

August 7, 1977. See 42 U.S.C. 7472(a).

The term mandatory class I Federal areas

is defined as Federal areas which may not

be designated as other than class I. Id.

7491(g)(5). At the time the Haze Rule was

promulgated, there were 156 Class I areas

across the country. See 64 Fed.Reg. at35,714.

I. Introduction

Regional haze, as EPA defines it, is visibilityimpairment caused by geographically dispersedsources emitting fine particles and their precursors

into the air. See64 Fed.Reg. at 35,715. The emission

and movement of sulfur dioxide, oxides of nitrogen,

and fine particulate matter from sources, such as

power plants, contribute to haze. See id. Fine

particulate matter scatters and absorbs light. See id.

Haze has degraded visibility in most of the

country's national parks and wilderness areas. See id.

The average visual range in many Class I areas in the

western United States is 100 to 150 kilometers -

which is just one-half to two-thirds the estimatedvisual range that would exist without manmade air

pollution. See id. In most of the eastern United States,

the average visual range is less than 30 kilometers -

or about one-fifth the visual range that would exist

under estimated natural conditions. See id.

Before 1977, the Clean Air Act (the CAA or

the Act) did not elaborate on the protection of

visibility as an air-quality related value. Chevron

U.S.A., Inc. v. EPA, 658 F.2d 271, 272 (5th

Cir.1981). But in 1977, [i]n response to a growing

awareness that visibility was rapidly deteriorating in

many places, such as wilderness areas and nationalparks,id. at 272, Congress added 169A to the Act.See Clean Air Act Amendments of 1977,Pub.L. No.

95-95, 128, 91 Stat. 685, 742 (current version at 42

U.S.C. 7491). Section 169A established as a

national goal the prevention of any future, and the

remedying of any existing, impairment in visibility in

mandatory class I areas which impairment results

from manmade air pollution. See 91 Stat. at 742

(current version at 42 U.S.C. 7491(a)(1)). Congress

directed EPA to issue regulations requiring states tosubmit State Implementation Plans (SIPs)

containing emission limits, schedules of compliance,and other measures necessary to make reasonable

progress toward meeting the national visibility goal.

See 91 Stat. at 743 (current version at 42 U.S.C.

7491(b)(2)). In addition, Congress required states to

address possible visibility impairment caused by

currently-operating large stationary sources whichhad been in operation between 1962 and 1977. See 91

Stat. at 743 (current version at 42 U.S.C. 7491(b)

(2)(A)).

Congress also gave EPA the responsibility ofpromulgating regulations under 169A to assure ...

reasonable progress toward meeting the nationalgoal. See 91 Stat. at 742-43 (current version at 42

U.S.C. 7491(a)(4)). EPA issued its first regulations

in 1980. See 45 Fed.Reg. 80,084 (Dec. 2, 1980). The

1980 visibility regulations, which apply to states

containing at least one Class I area, addressed

visibility impairment reasonably attributable to onesource, or to a small number of sources. See id. at

80,085. EPA limited the reach of the 1980

regulations to impairment attributable to specific

sources and deferred any action on regional haze

attributable to multiple sources located across broad

geographic regions because there was insufficient

data regarding the relationship between emitted pollutants, pollutant transport and visibilityimpairment. See id. at 80,086.

*4**354 In 1990, Congress amended the CleanAir Act again, adding 169B in an attempt to prompt

EPA to further address visibility impairment innational parks and wilderness areas. See Clean Air

Act Amendments, Pub.L. No. 101-549, 816, 104

Stat. 2695 (1990) (current version at 42 U.S.C.

7492). Section 169B requires, among other things,

that EPA undertake research to identify sources

and source regions of visibility impairment in Class

I areas, consider designating transport commissionsto study the interstate movement of pollutants, andestablish a transport commission for the Grand

Canyon National Park. See42 U.S.C. 7492.

EPA established the Grand Canyon Visibility

Transport Commission (GCVTC) in 1991 to assess

information about the adverse impacts on visibility in

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4/20

and around sixteen Class I areas on the Colorado

Plateau region and to provide policy

recommendations to EPA to address such impacts.See 56 Fed.Reg. 57,522 (Nov. 12, 1991). The

GCVTC issued its report to EPA in 1996. Then in1997 EPA issued a notice of proposed rulemaking

with regard toregional haze,see 62 Fed.Reg. 41,138

(July 31, 1997), noting that advances in scientific and

technical knowledge, including analyses provided by

the GCVTC, had made it possible for EPA to target

region-wide visibility impairment. After receivingmore than 1,300 comments to the proposed rule, EPA

published the final Haze Rule on July 1, 1999. See64

Fed.Reg. at 35,714. The final Haze Rule reaches all

states because, EPA concluded, all states contain

sources whose emissions are reasonably anticipated

to contribute to regional haze in a Class I area. Id. at

35,721. Under the Haze Rule, a state must developand submit a SIP that provides for reasonable

progress toward achieving natural visibility

conditions in the national parks and wilderness areasin that state. See 40 C.F.R. 51.308(d)(1). SIPs

addressing regional haze in an attainment area must

be submitted within one year of the date the area is

designated as attainment, and revised SIPs for

non-attainment areas must be submitted within

three years after the designation. See id. 51.308(b)

(1)-(2).

The Haze Rule, for the most part, does not

specify what control measures a state mustimplement in its initial SIP. See 64 Fed.Reg. at35,721(noting that the determination of what specific

control measures must be implemented can only be

made by a State once it has conducted the necessary

technical analyses of emissions, air quality, and the

other factors that go into determining reasonable

progress). But the rule does require states to: (1)

provide for an improvement in visibility in the 20

percent most impaired days; (2) ensure that there isno degradation in visibility during the 20 percent

clearest days; and (3) determine the annual rate ofvisibility improvement that would lead to natural

visibility conditions in 60 years. See 40 C.F.R. 51.308(d)(1); see also id. 51.301; 64 Fed.Reg. at

35,734. A state may not adopt a rate of improvement

that would achieve natural visibility conditions in

more than 60 years unless it demonstrates that the 60-

year rate is unreasonable. See40 C.F.R. 51.308(d)

(1)(ii).

The Haze Rule also provides that each state must

develop a long-term strategy for achieving its

visibility improvement goals. This strategy mustinclude the identification of all major stationary

sources subject to Best Available RetrofitTechnology (BART) requirements. See id.

51.308(e). In identifying sources subject to BART,

the Haze Rule calls for states to use a group rather

than a source-by-source approach. See64 Fed.Reg. at

35,740 (providing that a state should find a source

subject to BART if it can be shown that the sourceemits pollutants *5 **355within a geographic area

from which pollutants can be emitted and transported

downwind to a Class I area) (italics added). In

addition, when establishing emission limits for

BART sources, states must consider the improvement

in visibility that would result if the technology were

used at allcomparable BART sources (rather than theimprovement that a particular device at a particularsource would accomplish). See40 C.F.R. 51.308(e)

(1)(ii)(B).

The various petitioners and intervenors in this

consolidated case raise numerous challenges to theHaze Rule. In Part II we address the claim that EPA

acted contrary to law in establishing a group rather

than a source-by-source approach to BART

determinations. In Part III we address the claims of

industry petitioners in Case Nos. 01-1111, 01-1112,

and 01-1113 that EPA acted without legal authority

and in an arbitrary and capricious manner inpromulgating the natural visibility goal and the nodegradation requirement in the regional haze

regulations. Finally, in Part IV, we address the

challenges raised by the Sierra Club - namely that

EPA failed to set reasonable criteria for measuring or

assuring reasonable progress, and that EPA acted

contrary to law in extending the statutory deadline for

submission of state haze control plans.

II. BART Issues

Under 169A of the Act, each state must review

all BART-eligible sources -meaning all major

stationary sources built between August 1962 andAugust 1977 - to determine whether the sources emitany air pollutant which may reasonably be

anticipated to cause or contribute to any impairment

of visibility in a Class I area.FN242 U.S.C. 7491(b)

(2)(A). After deciding that a BART-eligible source

emits a pollutant which may reasonably be

anticipated to cause or contribute to Class I visibility
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impairment, the state then must determine what is the

best available retrofit technology for controlling

emissions from that source. See id. Under the Act,states must take the following five factors into

consideration when deciding what BART controls toplace on a source:

FN2.A major stationary source is a source

that has the potential to emit 250 tons or

more of any pollutant. See 42 U.S.C.

7491(g)(7).

the costs of compliance, the energy and nonair

quality environmental impacts of compliance, any

existing pollution control technology in use at the

source, the remaining useful life of the source, and

the degree of improvement in visibility which may

reasonably be anticipated to result from the use ofsuch technology.

Id. 7491(g)(2).

The Haze Rule interprets and implements thesestatutory BART provisions in two main ways. First,

the Haze Rule requires states to find that a BART-

eligible source is reasonably anticipated to cause or

contribute to regional haze if it can be shown that

the source emits pollutants within a geographic area

from which pollutants can be emitted and transported

downwind to a Class I area. 64 Fed.Reg. at 35,740

(italics added). In other words, states must subject

BART-eligible sources to BART requirements evenabsent empirical evidence of that source's individualcontribution to visibility impairment in a Class I area

so long as the source is located within a region that

may contribute to visibility impairment. See id. at

35,740; see also Br. for EPA at 26-27. EPA

explained in the preamble to the Haze Rule that this

sort of collective contribution approach was

consistent with that taken in the programs for acid

rain and ozone, *6 **356 programs which alsoaddress regional air quality problems caused by

transported pollutants. 64 Fed.Reg. at 35,740;seealso63 Fed.Reg. at 57,376.

Second, the Haze Rule provides that once a state

has decided that a particular source is subject to

BART and is considering what BART controls to

place on that source, the state must analyze the

degree of visibility improvement that would be

achieved in each mandatory Class I Federal area as a

result of the emission reductions achievable from all

sources subject to BART located within the region

that contributes to visibility impairment in the Class I

area. 40 C.F.R. 51.308(e)(1)(ii)(B) (italics added).This means that of the five statutory factors to be

considered by states when determining BARTcontrols, see 42 U.S.C. 7491(g)(2), only four

factors (the costs of compliance, the environmental

impacts of compliance, any existing pollution control

technology in use at the source, and the remaining

useful life of the source) are considered on a source-

specific basis. The Haze Rule requires states toconsider the fifth statutory factor (the degree in

improvement) on a group or area wide basis.

Industry petitioners attack EPA's decision to use

a group rather than a source-by-source BARTapproach, arguing that the language, statutory

structure, and legislative history of 169A make itclear that the Haze Rule runs afoul of the Act. See Br.

for Industry Pet'rs and Intervenor in Case Nos. 99-

1348, et al. at 13. For the reasons that follow, we

grant the petition for review, vacate the BART rules,

and remand to EPA.

[1] In the Haze Rule, EPA extracts one of the

five statutory factors listed in 169A(g)(2) and treats

it differently than the other four. See64 Fed.Reg. at35,741 (providing that only the degree in

improvement in visibility that would be expected at

each Class I area as a result of imposing BART is to

be considered on a group rather than a source-specific basis). In effect, EPA bifurcates the states'

determination of the appropriate BART emission

limitations for specific sources. States must first

estimate possible emission reductions on a source-by-source basis based on the application of the

technology, the cost, time for compliance, energy andnonair environmental impacts, and the remaining

useful life of the source. See id.;see also40 C.F.R.

51.308(e)(1)(ii)(A). Taking these factors into

account allows the State to arrive at an estimate of

the best system of retrofit control technology for a

particular source. 64 Fed.Reg. at 35,741.States must

then calculate the degree in improvement in visibilitythat would be expected at each Class I area as a resultof imposing BART on allsources subject to BART.

See id.;see also40 C.F.R. 51.308(e)(1)(ii)(B).

EPA argues that its bifurcated approach to

determining appropriate BART controls is

permissible because 169A(g)(2) is unclear about

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how a state must analyze anticipated visibility

improvement. See Chevron U.S.A., Inc. v. Natural

Res. Def. Council, 467 U.S. 837, 842-43, 104 S.Ct.

2778, 2781-82, 81 L.Ed.2d 694 (1984). We cannot

agree. The Haze Rule's splitting of the statutoryfactors is consistent with neither the text nor the

structure of the statute. See42 U.S.C. 7491(g)(2).

All five 169A(g)(2) factors inform the states'

inquiries into what BART controls are appropriate for

particular sources. Although no weights were

assigned, the factors were meant to be consideredtogether by the states. The language of 169A(g)(2)

can be read in no other way. To treat one of the five

statutory factors in such a dramatically different

fashion distorts the judgment Congress directed the

states to make for each BART-eligible source. This is*7 **357 most apparent with respect to the states'

duty to take into account the costs of compliance indeciding not only whether to order an individualsource to install any new pollution control

equipment, but also what type of equipment -or as thestatute puts it, what type of retrofit technology.

How is a state to determine what is too costly (and

what is not) for a particular source? The statute

answers that the state must consider the degree of

improvement in visibility in national parks and

wilderness areas that would result from the source's

installing and operating the retrofit technology. EPA

has a far different answer: in assessing the cost ofcompliance imposed on a source, the state may not

consider the degree to which new equipment at aparticular source would help cure the haze in some

distant national park. Under EPA's take on the

statute, it is therefore entirely possible that a source

may be forced to spend millions of dollars for new

technology that will have no appreciable effect on the

haze in any Class I area.FN3A similar problem ariseswhen a state considers, as it must, the existing

pollution control technology in use at the source.

How is a state to decide whether the source already

has installed sufficient devices without determining

how much, if at all, the source is contributing to

visual impairment in downwind Class I areas? As the

industry petitioners correctly note, there is no point

during the Haze Rule's BART determination in

which it could be demonstrated that the degree of

improvement in visibility obtained from installing aparticular set of emissions controls at a source with

exceedingly low or even merely theoretical

visibility impacts is not justified by the cost of BART

in light of those low or theoretical impacts. Br. for

Industry Pet'rs and Intervenor in Case Nos. 99-1348,

et al. at 17-18.

FN3. EPA's rule requires states to consider

the cost of compliance in terms of the likely

emission reductions which would beachieved by the imposition of BART, nomatter whether this reduction would

enhance visibility in downwind national

parks. See64 Fed.Reg. at 35,741 (explaining

that the four factors, including cost, should

be taken into account for each source subject

to BART in order to compare tradeoffs

between the control efficiencies and costs

associated with various controlalternatives). The preamble to the rule

provides very little guidance about howstates are to calculate the degree of

improvement in visibility under the regimeEPA contemplates. The preamble tells the

states only this:

To calculate the degree of improvement in

visibility that would be expected at each

Class I area as a result of imposing BART

on all sources subject to BART, the State

should estimate the possible emissions

reductions resulting from the applicationof BART at all subject sources located

within the region that contributes to

visibility impairment in the Class I area.

The State should work on its own or inconjunction with other States, such as a

regional planning body, to determine the

geographic scope of the region that

contributes to each Class I area. TheStates should consult with one another to

determine the emission reductionsachievable from sources subject to BART

in other states.

Id.

The Haze Rule's treatment of 169A(g)(2)'s

degree-of-improvement calculation is, the industrypetitioners argue, not the only respect in which the

rule is inconsistent with the Act. As they see it, the

Haze Rule also unlawfully constrains the states'

statutory authority because under the Act it is the

states - not EPA - who must determine which BART-

eligible sources should be subject to BART. See 42

U.S.C. 7491(b)(2)(A)(providing that each BART-
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eligible source that, as determined by the State ...

emits any air pollutant which may reasonably be

anticipated to cause or contribute to any impairmentof visibility, shall install and operate the best

available retrofit technology (italics *8 **358added));see also id. 7491(g)(2) (listing the factors

that the State ... shall take into consideration in

determining BART controls (italics added)).

We agree with these petitioners that the Haze

Rule's BART provisions are inconsistent with the

Act's provisions giving the states broad authority over

BART determinations. See id. 7491(b)(2)(A); see

alsoid. 7491(g)(2). The Haze Rule ties the states'hands and forces them to require BART controls at

sources without any empirical ev

american corn growers v epa 291_f_3d_1 dc cir 2002

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