EPA v. Calumet Shreveport Refining, L.L.C.

605 U.S. 627
Supreme Court of the United States·Decided June 18, 2025·No. 23-1229·Published

Opinions

Syllabus

NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.

SUPREME COURT OF THE UNITED STATES

Syllabus

ENVIRONMENTAL PROTECTION AGENCY v. CALUMET SHREVEPORT REFINING, L.L.C., ET AL.

CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT

No. 23–1229. Argued March 25, 2025—Decided June 18, 2025

The Clean Air Act (CAA) establishes a comprehensive venue framework for judicial review of Environmental Protection Agency (EPA) actions designed to ensure proper distribution of cases among federal courts. Under 42 U. S. C. §7607(b)(1), “nationally applicable” EPA actions must be challenged exclusively in the D. C. Circuit, while “locally or regionally applicable” actions ordinarily belong in regional Circuits. However, locally or regionally applicable actions that are “based on a determination of nationwide scope or effect” must be reviewed in the D. C. Circuit if EPA finds and publishes that such basis exists. This tripartite system reflects congressional intent to channel nationally significant EPA actions to the D. C. Circuit while keeping most regionally focused matters in local Circuits.

Under the CAA’s renewable fuel program, most domestic refineries must blend specified amounts of ethanol and other renewable fuels into transportation fuels they produce. The Act provides a phased exemption scheme for small refineries—those processing no more than 75,000 barrels of crude oil daily—allowing them to petition EPA for exemptions based on “disproportionate economic hardship.” §7545(o)(9)(B)(i). Following this Court’s decision in HollyFrontier Cheyenne Refining, LLC v. Renewable Fuels Assn., 594 U. S. 382, which clarified that small refineries could obtain exemption “extensions ” even after their original exemptions had lapsed, the D. C. Circuit remanded pending exemption cases to EPA for reconsideration.

EPA then proposed and ultimately denied 105 small refinery exemption petitions in two omnibus notices issued in April and July 2022. EPA’s denials were based on two principal determinations: first, its interpretation that “disproportionate economic hardship” covers only

hardship directly caused by renewable fuel program compliance; and second, its economic theory that Renewable Identification Number (RIN) costs are fully passed through to consumers, creating a presumption against granting exemptions. EPA applied these determinations uniformly while conducting confirmatory reviews of individual refinery circumstances. EPA asserted in its denial notices that the denials were reviewable only in the D. C. Circuit, either as “nationally applicable ” actions or, alternatively, as locally applicable actions “based on a determination of nationwide scope or effect.”

Small refineries challenged these denials in multiple regional Circuits . Most Circuits either dismissed the challenges for improper venue or transferred them to the D. C. Circuit. However, the Fifth Circuit retained jurisdiction, rejecting EPA’s venue arguments and ruling for the refineries on the merits. The Fifth Circuit reasoned that EPA’s actions were merely locally applicable because their “legal effect ” was limited to the petitioning refineries, and that the actions were not based on determinations of nationwide scope or effect because EPA still examined refinery-specific facts before issuing denials.

Held: EPA’s denials of small refinery exemption petitions are locally or regionally applicable actions that fall within the “nationwide scope or effect” exception, requiring venue in the D. C. Circuit. Pp. 6–21.

(a) Section 7607(b)(1) creates a two-step inquiry for determining venue. First, courts assess whether an EPA action is nationally applicable or only locally or regionally applicable. If nationally applicable, the case belongs in the D. C. Circuit. If locally or regionally applicable, courts proceed to the second step to determine whether the “nationwide scope or effect” exception applies to override the default rule of regional Circuit review. Pp. 6–13.

(1) To identify the relevant “action,” courts must look to the authorizing CAA provision rather than how EPA packages its decisions. The enumerated “actions” in §7607(b)(1) make clear that this provision “treats each activity the Clean Air Act allows the EPA to take as a distinct ‘action.’ ” Kentucky v. EPA, 123 F. 4th 447, 460. Because the CAA allows “[a] small refinery” to “petition [EPA] for an extension of [its] exemption” and requires EPA to “act on any petition submitted,” each EPA denial of a refinery’s exemption petition constitutes its own “action” for venue purposes. Pp. 7–8.

(2) An action is “nationally applicable” if it applies “[o]n its face”

throughout the entire country, or only “locally or regionally applicable” if it applies only to particular localities or regions. Sierra Club v. EPA, 926 F. 3d 844, 849. EPA’s denial of a single refinery’s exemption petition applies only to that refinery, a particular entity in a particular place, making such denials paradigmatically “locally or regionally applicable ” actions. Pp. 8–10.

(3) EPA’s argument that it can control the unit of “action” for venue purposes by aggregating similar petitions into omnibus notices lacks any statutory limiting principle and would effectively give EPA veto power over venue. EPA’s position that any action affecting more than one Circuit is nationally applicable would render actions with plainly local or regional focus “nationally applicable” simply because the locality or region straddles Circuit lines. Pp. 10–13.

(b) Because EPA’s actions are locally or regionally applicable, the Court must determine whether the “nationwide scope or effect” exception applies. This exception requires that (1) the action “is based on a determination of nationwide scope or effect,” and (2) EPA “finds and publishes that such action is based on such a determination.” All agree the second requirement is satisfied. Pp. 13–21.

(1) A “determination” refers to EPA’s justifications in taking the action. Determinations are of nationwide “scope” if they apply throughout the country “as a legal matter (de jure)” and of nationwide “effect” if they so apply “as a practical [matter] (de facto).” Kentucky, 123 F. 4th, at 465. An EPA action is “based on” a determination of nationwide scope or effect only if that determination “lie[s] at the core of the agency action” and forms the primary explanation for and driver of EPA’s action. Texas v. EPA, 829 F. 3d 405, 419. This requires more than but-for causation; it requires that a justification of nationwide breadth be the most important part of EPA’s reasoning. Courts should evaluate this de novo. Pp. 13–17.

(2) Applying this framework, EPA’s exemption denials were based on determinations of nationwide scope or effect. EPA’s interpretation of “disproportionate economic hardship” under §7545(o)(9)(B)(i) and its RIN passthrough theory are clear determinations of nationwide scope or effect that apply generically to all refineries regardless of geographic location. These determinations formed the core basis for EPA’s denials because EPA used them to reach a presumptive resolution to deny all petitions, then considered refinery-specific factors only to confirm it had no reason to depart from this presumptive disposition. Where EPA relies on determinations of nationwide scope or effect to reach a presumptive resolution, those determinations qualify as the primary driver of its decision. EPA’s confirmatory review of refinery-specific facts is “[m]erely peripheral” by comparison. Texas, 829 F. 3d, at 419. Pp. 17–18.

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EPA v. Calumet Shreveport Refining, L.L.C., 605 U.S. 627 (2025).

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