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

605 U.S. 627
CourtSupreme Court of the United States
DecidedJune 18, 2025
Docket23-1229
StatusPublished

This text of 605 U.S. 627 (EPA v. Calumet Shreveport Refining, L.L.C.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

Opinion

PRELIMINARY PRINT

Volume 605 U. S. Part 2 Pages 627–664

OFFICIAL REPORTS OF

THE SUPREME COURT June 18, 2025

REBECCA A. WOMELDORF reporter of decisions

NOTICE: This preliminary print is subject to formal revision before the bound volume is published. Users are requested to notify the Reporter of Decisions, Supreme Court of the United States, Washington, D. C. 20543, pio@supremecourt.gov, of any typographical or other formal errors. OCTOBER TERM, 2024 627

Syllabus

ENVIRONMENTAL PROTECTION AGENCY v. CALU- MET SHREVEPORT REFINING, L.L.C., et al.

certiorari to the united states court of appeals for the fth 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 region- ally applicable” actions ordinarily belong in regional Circuits. How- ever, locally or regionally applicable actions that are “based on a deter- mination of nationwide scope or effect” must be reviewed in the D. C. Circuit if EPA fnds and publishes that such basis exists. This tripar- tite system refects congressional intent to channel nationally signifcant 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 refneries must blend specifed amounts of ethanol and other renewable fuels into transportation fuels they produce. The Act provides a phased exemp- tion scheme for small refneries—those processing no more than 75,000 barrels of crude oil daily—allowing them to petition EPA for exemp- tions based on “disproportionate economic hardship.” § 7545(o)(9)(B)(i). Following this Court's decision in HollyFrontier Cheyenne Refning, LLC v. Renewable Fuels Assn., 594 U. S. 382, which clarifed that small refneries 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 refnery exemp- tion petitions in two omnibus notices issued in April and July 2022. EPA's denials were based on two principal determinations: frst, its in- terpretation that “disproportionate economic hardship” covers only hardship directly caused by renewable fuel program compliance; and second, its economic theory that Renewable Identifcation Number (RIN) costs are fully passed through to consumers, creating a presump- tion against granting exemptions. EPA applied these determinations uniformly while conducting confrmatory reviews of individual refnery circumstances. EPA asserted in its denial notices that the denials were reviewable only in the D. C. Circuit, either as “nationally applicable” 628 EPA v. CALUMET SHREVEPORT REFINING, L.L.C.

actions or, alternatively, as locally applicable actions “based on a deter- mination of nationwide scope or effect.” Small refneries 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 re- tained jurisdiction, rejecting EPA's venue arguments and ruling for the refneries on the merits. The Fifth Circuit reasoned that EPA's actions were merely locally applicable because their “legal effect” was limited to the petitioning refneries, and that the actions were not based on determinations of nationwide scope or effect because EPA still exam- ined refnery-specifc facts before issuing denials. Held: EPA's denials of small refnery 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. 636–650. (a) Section 7607(b)(1) creates a two-step inquiry for determining venue. First, courts assess whether an EPA action is nationally appli- cable 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. 636–642. (1) To identify the relevant “action,” courts must look to the author- izing 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 refnery” to “petition [EPA] for an extension of [its] exemption” and requires EPA to “act on any petition submitted,” each EPA denial of a refnery's exemption petition constitutes its own “action” for venue purposes. Pp. 636–638. (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 refnery's exemption peti- tion applies only to that refnery, a particular entity in a particular place, making such denials paradigmatically “locally or regionally applicable” actions. Pp. 638–640. (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 Cite as: 605 U. S. 627 (2025) 629

or regional focus “nationally applicable” simply because the locality or region straddles Circuit lines. Pp. 640–642. (b) Because EPA's actions are locally or regionally applicable, the Court must determine whether the “nationwide scope or effect” excep- tion applies. This exception requires that (1) the action “is based on a determination of nationwide scope or effect,” and (2) EPA “fnds and publishes that such action is based on such a determination.” All agree the second requirement is satisfed. Pp. 642–650. (1) A “determination” refers to EPA's justifcations 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 justifcation of nationwide breadth be the most important part of EPA's reasoning. Courts should evaluate this de novo. Pp. 643–646. (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 refneries regardless of geographic location.

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605 U.S. 627, Counsel Stack Legal Research, https://law.counselstack.com/opinion/epa-v-calumet-shreveport-refining-llc-scotus-2025.