Central Arizona Water Conservation District v. United States Environmental Protection Agency

990 F.2d 1531
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 25, 1993
DocketNo. 91-70731
StatusPublished
Cited by7 cases

This text of 990 F.2d 1531 (Central Arizona Water Conservation District v. United States Environmental Protection Agency) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Central Arizona Water Conservation District v. United States Environmental Protection Agency, 990 F.2d 1531 (9th Cir. 1993).

Opinion

GOODWIN, Circuit Judge:

Petitioners Central Arizona Water Conservation District (“CAWCD”) and four irrigation districts1 (collectively “Petitioners” or the “Districts”) challenge an Environmental Protection Agency (“EPA”) Final Rule which requires a 90% reduction in sulfur dioxide (S02) emissions at the Navajo Generating Station (“NGS”) in order to improve winter average visibility in the Grand Canyon National Park (“Grand Canyon”).

Petitioners argue (1) that, because the Final Rule seeks to regulate “regional haze” when EPA has yet to promulgate Phase II implementing regulations addressing regional haze, EPA exceeded the scope of its regulatory authority by issuing the Final Rule, and (2) that the Final Rule constitutes arbitrary and capricious agency action. In addition to responding to Petitioners’ substantive criticisms, EPA asserts that Petitioners lack standing to bring this challenge.

The Final Rule was issued by EPA under 42 U.S.C. §§ 7410(c)(1), 7491, and is directly appealable to this court under 42 U.S.C. § 7607(b)(1). Petitioners do have standing to bring this challenge. We hold, however, that EPA acted within its statutory and regulatory authority when it promulgated the Final Rule, and that EPA has not acted arbitrarily and capriciously.

I. BACKGROUND

This case involves regulations promulgated by EPA in an attempt to remedy, at least partially, visibility impairment at the Grand Canyon. In a final rule entitled “Approval and Promulgation of Implementation Plans: Revision of the Visibility FIP for Arizona,” 56 Fed.Reg. 50,172 (1991) (codified at 40 C.F.R. § 52) (“Final Rule”), EPA required a 90% reduction in S02 emissions at NGS, a power plant situated approximately twelve miles from the Grand Canyon, near Page, Arizona. The Final Rule limits S02 emissions from NGS to 0.10 pound per million British thermal units (lb/MMBtu), with an estimated 7% winter average visibility improvement in the Grand Canyon. The estimated cost of the improvement, following an initial capital cost estimated at $430 million, is $89.6 million per year.

The Salt River Project (“SRP”), a respondent-intervenor in this case,2 is the operating agent of NGS. NGS is jointly owned by SRP, the U.S. Department of Interior, Bureau of Reclamation (“BOR”), Los An-geles Department of Water and Power, Arizona Public Service Co., Nevada Power Co. and Tucson Gas & Electric Co.3 Peti[1534]*1534tioners are water districts that obtain electricity to pump their water primarily from NGS. They acknowledge that they are not owners of NGS, but nonetheless claim an economic interest in the Final Rule. CAWCD claims that it will be required, due to its contractual relationship with the BOR, to repay the major portion of the BOR’s 24.3% share of the costs of installing and maintaining the emission controls required by the Final Rule.

A. Regulatory Framework

1. The Clean Air Act, Visibility Impairment, and the Grand Canyon

In 1977, Congress substantially amended the Clean Air Act (the “Act”). Included in the 1977 amendments was section 169A, 42 U.S.C. § 7491, which declared “as a national goal the prevention of any future, and the remedying of any existing, impairment of visibility in mandatory class I Federal areas which impairment results from man-made air pollution.” 42 U.S.C. § 7491(a)(1). Congress required EPA to promulgate regulations to assure “reasonable progress toward meeting th[is] national goal.” 42 U.S.C. § 7491(a)(4). EPA was further directed to require each state with a class I Federal area to revise its state implementation plan (“SIP”) “to contain such emission limits, schedules of compliance and other measures as may be necessary to make reasonable progress toward meeting the national goal.” 42 U.S.C. § 7491(b)(2). Measures for achieving “reasonable progress” generally include best available retrofit technology (“BART”)4 and a long-term strategy. 42 U.S.C. §§ 7491(b)(2)(A), (B). If an individual state fails to fulfill its obligations under the Act, EPA is directed to take such measures as are required to achieve “reasonable progress” pursuant to a federal implementation plan (“FIP”) under section 110(c) of the Act. 42 U.S.C. § 7410(c)(1).

The Act defines class I Federal areas as international parks, national wilderness areas or memorial parks which exceed 5,000 acres in size, and national parks which exceed 6,000 acres in size. 42 U.S.C. § 7472(a). The Grand Canyon has been classified as a class I Federal area. See 44 Fed.Reg. 69,122 (1979). Congress recorded its concern with the visibility impairment at the Grand Canyon caused by NGS. See H.R.Rep. No. 294, 95th Cong., 1st Sess. 203-04 (1977) U.S.Code Cong. & Admin.News pp. 1077, 1282, 1283.

2. EPA’s 1980 Regulations

In 1980, EPA promulgated visibility regulations under section 169A of the Act. 45 Fed.Reg. 80,084 (1980) (codified at 40 C.F.R. §§ 51.300-307). The regulations adopted a “phased approach to visibility protection.” Id. at 80,085. Phase I was directed at controlling visibility impairment “that can be traced to a single existing stationary facility or small group of existing stationary facilities.” Id. EPA refers to this type of impairment as “reasonably attributable” impairment. 45 Fed.Reg. 34,-762, 34,779 (1980) (codified at 40 C.F.R. § 51). EPA deferred addressing other types of impairment such as “regional haze” for future phases due to the heightened complexity and the scientific and technical limitations inherent in attempts to identify, measure, and control such broads-cale visibility impairment. See 45 Fed.Reg. at 80,086; see also id. at 80,085 (defining regional haze as “widespread, regionally homogeneous haze from a multitude of sources which impairs visibility in every direction over a large area”).

[1535]*1535Generally, EPA’s “Phase I” regulations require affected states to coordinate the development of SIPs with the appropriate Federal land managers, to develop programs to assess and remedy visibility impairment from new and existing sources, and to develop a long-term strategy to assure reasonable progress toward section 169A’s national visibility goal. See 40 C.F.R.

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