E.P.A. v. EME Homer City Generation, L.P.
This text of 134 S. Ct. 1584 (E.P.A. v. EME Homer City Generation, L.P.) 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.
Opinion
Justice GINSBURG delivered the opinion of the Court.
These cases concern the efforts of Congress and the Environmental Protection Agency (EPA or Agency) to cope with a complex problem: air pollution emitted in one State, but causing harm in other States. Left unregulated, the emitting or upwind State reaps the benefits of the economic activity causing the pollution without bearing all the costs. See Revesz, Federalism and Interstate Environmental Externalities,
Interpreting the Good Neighbor Provision, EPA adopted the Cross-State Air Pollution Rule (commonly and hereinafter called the Transport Rule). The rule calls for consideration of costs, among other factors, when determining the emission reductions an upwind State must make to improve air quality in polluted downwind areas. The Court of Appeals for the D.C. Circuit vacated the rule in its entirety. It held, 2 to 1, that the Good Neighbor Provision requires EPA to consider only each upwind State's physically proportionate responsibility for each downwind State's air quality problem. That reading is demanded, according to the D.C. Circuit, so that no State will be required to decrease its emissions by more than its ratable share of downwind-state pollution.
In
Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.,
I
A
Air pollution is transient, heedless of state boundaries. Pollutants generated by upwind sources are often transported by air currents, sometimes over hundreds of miles, to downwind States. As the pollution travels out of state, upwind States are relieved of the associated costs. Those costs are borne instead by the downwind States, whose ability to achieve and maintain satisfactory air quality is hampered by the steady stream of infiltrating pollution.
For several reasons, curtailing interstate air pollution poses a complex challenge for environmental regulators. First, identifying the upwind origin of downwind air pollution is no easy endeavor. Most upwind States propel pollutants to more than one downwind State, many downwind States receive pollution from multiple upwind States, and some States qualify as both upwind and downwind. See Brief for Federal Petitioners 6. The overlapping and interwoven linkages between upwind and downwind States with which EPA had to contend number in the thousands. 1
Further complicating the problem, pollutants do not emerge from the smokestacks of an upwind State and uniformly migrate downwind. Some pollutants stay within upwind States' borders, the wind carries others to downwind States, and some subset of that group drifts to States without air quality problems. "The wind bloweth where it listeth, and thou hearest the sound thereof, but canst not tell whence it cometh, and whither it goeth." The Holy Bible, John 3:8 (King James Version). In crafting a solution to the problem of interstate air pollution, regulators must account for the vagaries of the wind.
Finally, upwind pollutants that find their way downwind are not left unaltered by the journey. Rather, as the gases emitted by upwind polluters are carried downwind, they are transformed, through various chemical processes, into altogether different pollutants. The offending gases at issue in these cases-nitrogen oxide (NO X ) and sulfur dioxide (SO 2 )-often develop into ozone and fine particulate matter (PM 2.5 ) by the time they reach the atmospheres of downwind States. See 76 Fed.Reg. 48222-48223 (2011). See also 69 Fed.Reg. 4575-4576 (2004) (describing the components of ozone and PM 2.5 ). Downwind air quality must therefore be measured for ozone and PM 2.5 concentrations. EPA's chore is to quantify the amount of upwind gases (NO X and SO 2 ) that must be reduced to enable downwind States to keep their levels of ozone and PM 2.5 in check.
B
Over the past 50 years, Congress has addressed interstate air pollution several times and with increasing rigor. In 1963, Congress directed federal authorities to "encourage cooperative
activities by the States and local governments for the prevention and control of air pollution."
The Act then shifts the burden to States to propose plans adequate for compliance with the NAAQS. Each State must submit a State Implementation Plan, or SIP, to EPA within three years of any new or revised NAAQS. § 7410(a)(1).
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Justice GINSBURG delivered the opinion of the Court.
These cases concern the efforts of Congress and the Environmental Protection Agency (EPA or Agency) to cope with a complex problem: air pollution emitted in one State, but causing harm in other States. Left unregulated, the emitting or upwind State reaps the benefits of the economic activity causing the pollution without bearing all the costs. See Revesz, Federalism and Interstate Environmental Externalities,
Interpreting the Good Neighbor Provision, EPA adopted the Cross-State Air Pollution Rule (commonly and hereinafter called the Transport Rule). The rule calls for consideration of costs, among other factors, when determining the emission reductions an upwind State must make to improve air quality in polluted downwind areas. The Court of Appeals for the D.C. Circuit vacated the rule in its entirety. It held, 2 to 1, that the Good Neighbor Provision requires EPA to consider only each upwind State's physically proportionate responsibility for each downwind State's air quality problem. That reading is demanded, according to the D.C. Circuit, so that no State will be required to decrease its emissions by more than its ratable share of downwind-state pollution.
In
Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.,
I
A
Air pollution is transient, heedless of state boundaries. Pollutants generated by upwind sources are often transported by air currents, sometimes over hundreds of miles, to downwind States. As the pollution travels out of state, upwind States are relieved of the associated costs. Those costs are borne instead by the downwind States, whose ability to achieve and maintain satisfactory air quality is hampered by the steady stream of infiltrating pollution.
For several reasons, curtailing interstate air pollution poses a complex challenge for environmental regulators. First, identifying the upwind origin of downwind air pollution is no easy endeavor. Most upwind States propel pollutants to more than one downwind State, many downwind States receive pollution from multiple upwind States, and some States qualify as both upwind and downwind. See Brief for Federal Petitioners 6. The overlapping and interwoven linkages between upwind and downwind States with which EPA had to contend number in the thousands. 1
Further complicating the problem, pollutants do not emerge from the smokestacks of an upwind State and uniformly migrate downwind. Some pollutants stay within upwind States' borders, the wind carries others to downwind States, and some subset of that group drifts to States without air quality problems. "The wind bloweth where it listeth, and thou hearest the sound thereof, but canst not tell whence it cometh, and whither it goeth." The Holy Bible, John 3:8 (King James Version). In crafting a solution to the problem of interstate air pollution, regulators must account for the vagaries of the wind.
Finally, upwind pollutants that find their way downwind are not left unaltered by the journey. Rather, as the gases emitted by upwind polluters are carried downwind, they are transformed, through various chemical processes, into altogether different pollutants. The offending gases at issue in these cases-nitrogen oxide (NO X ) and sulfur dioxide (SO 2 )-often develop into ozone and fine particulate matter (PM 2.5 ) by the time they reach the atmospheres of downwind States. See 76 Fed.Reg. 48222-48223 (2011). See also 69 Fed.Reg. 4575-4576 (2004) (describing the components of ozone and PM 2.5 ). Downwind air quality must therefore be measured for ozone and PM 2.5 concentrations. EPA's chore is to quantify the amount of upwind gases (NO X and SO 2 ) that must be reduced to enable downwind States to keep their levels of ozone and PM 2.5 in check.
B
Over the past 50 years, Congress has addressed interstate air pollution several times and with increasing rigor. In 1963, Congress directed federal authorities to "encourage cooperative
activities by the States and local governments for the prevention and control of air pollution."
The Act then shifts the burden to States to propose plans adequate for compliance with the NAAQS. Each State must submit a State Implementation Plan, or SIP, to EPA within three years of any new or revised NAAQS. § 7410(a)(1). If EPA determines that a State has failed to submit an adequate SIP, either in whole or in part, the Act requires the Agency to promulgate a Federal Implementation Plan, or FIP, within two years of EPA's determination, "unless the State corrects the deficiency" before a FIP is issued. § 7410(c)(1). 2
The Act lists the matters a SIP must cover. Among SIP components, the 1970 version of the Act required SIPs to include "adequate provisions for intergovernmental cooperation" concerning interstate air pollution. § 110(a)(2)(E),
In 1977, Congress amended the Good Neighbor Provision to require more than "cooperation." It directed States to submit SIPs that included provisions "adequate" to "prohibi[t] any stationary source within the State from emitting
any air pollutant in amounts which will ... prevent attainment or maintenance [of air quality standards] by any other State." § 108(a)(4),
Congress most recently amended the Good Neighbor Provision in 1990. The statute, in its current form, requires SIPs to "contain adequate provisions ... prohibiting ... any source or other type of emissions activity within the State from emitting any air pollutant in amounts which will ... contribute significantly to nonattainment in, or interfere with maintenance by, any other State with respect to any ... [NAAQS]."
C
Three times over the past two decades, EPA has attempted to delineate the Good Neighbor Provision's scope by identifying when upwind States "contribute significantly" to nonattainment downwind. In 1998, EPA issued a rule known as the "NO
X
SIP Call." That regulation limited NO
X
emissions in 23 upwind States to the extent such emissions contributed to nonattainment of ozone standards in downwind States. See 63 Fed.Reg. 57356, 57358. In
Michigan v. EPA,
In 2005, EPA issued the Clean Air Interstate Rule, or CAIR. 70 Fed.Reg. 25162. CAIR regulated both NO
X
and SO
2
emissions, insofar as such emissions contributed to downwind nonattainment of two NAAQS, both set in 1997, one concerning the permissible annual measure of PM
2.5
, and another capping the average ozone level gauged over an 8-hour period. See
id.,
at 25171. The D.C. Circuit initially vacated CAIR as arbitrary and capricious. See
North Carolina v. EPA,
The rule challenged here-the Transport Rule-is EPA's response to the D.C. Circuit's North Carolina decision. Finalized in August 2011, the Transport Rule curtails NO X and SO 2 emissions of 27 upwind States to achieve downwind attainment of three different NAAQS: the two 1997 NAAQS previously addressed by CAIR, and the 2006 NAAQS for PM 2.5 levels measured on a daily basis. See 76 Fed.Reg. 48208-48209.
Under the Transport Rule, EPA employed a "two-step approach" to determine when upwind States "contribute[d] significantly to nonattainment," id., at 48254, and therefore in "amounts" that had to be eliminated. At step one, called the "screening" analysis, the Agency excluded as de minimis any upwind State that contributed less than one percent of the three NAAQS 3 to any downwind State "receptor," a location at which EPA measures air quality . See id., at 48236-48237. 4 If all of an upwind State's contributions fell below the one-percent threshold, that State would be considered not to have " contribute [d] significantly" to the nonattainment of any downwind State. Id., at 48236. States in that category were screened out and exempted from regulation under the rule.
The remaining States were subjected to a second inquiry, which EPA called the "control" analysis. At this stage, the Agency sought to generate a cost-effective allocation of emission reductions among those upwind States "screened in" at step one.
The control analysis proceeded this way. EPA first calculated, for each upwind State, the quantity of emissions the State could eliminate at each of several cost thresholds. See id., at 48248-48249. Cost for these purposes is measured as cost per ton of emissions prevented, for instance, by installing scrubbers on powerplant smokestacks. 5 EPA estimated, for example, the amount each upwind State's NO X emissions would fall if all pollution sources within each State employed every control measure available at a cost of $500 per ton or less. See id., at 48249-48251. The Agency then repeated that analysis at ascending cost thresholds. See ibid. 6
Armed with this information, EPA conducted complex modeling to establish the combined effect the upwind reductions projected at each cost threshold would have on air quality in downwind States. See id., at 48249. The Agency then identified "significant cost threshold[s]," points in its model where a "noticeable change occurred in downwind air quality, such as ... where large upwind emission reductions become available because a certain type of emissions control strategy becomes cost-effective." Ibid. For example, reductions of NO X sufficient to resolve or significantly curb downwind air quality problems could be achieved, EPA determined, at a cost threshold of $500 per ton (applied uniformly to all regulated upwind States). "Moving beyond the $500 cost threshold," EPA concluded, "would result in only minimal additional ... reductions [in emissions]." Id., at 48256. 7
Finally, EPA translated the cost thresholds it had selected into amounts of emissions upwind States would be required to eliminate. For each regulated upwind State, EPA created an annual emissions "budget." These budgets represented the quantity of pollution an upwind State would produce in a given year if its in-state sources implemented all pollution controls available at the chosen cost thresholds. See id., at 48249. 8 If EPA's projected improvements to downwind air quality were to be realized, an upwind State's emissions could not exceed the level this budget allocated to it, subject to certain adjustments not relevant here.
Taken together, the screening and control inquiries defined EPA's understanding of which upwind emissions were within the Good Neighbor Provision's ambit. In short, under the Transport Rule, an upwind State "contribute[d] significantly" to downwind nonattainment to the extent its exported pollution both (1) produced one percent or more of a NAAQS in at least one downwind State (step one) and (2)
could be eliminated cost-effectively, as determined by EPA (step two). See id., at 48254. Upwind States would be obliged to eliminate all and only emissions meeting both of these criteria. 9
For each State regulated by the Transport Rule, EPA contemporaneously promulgated a FIP allocating that State's emission budget among its in-state sources. See
id.,
at 48271, 48284-48287.
10
For each of these States, EPA had determined that the State had failed to submit a SIP adequate for compliance with the Good Neighbor Provision. These determinations regarding SIPs became final after 60 days, see
D
A group of state and local governments (State respondents), joined by industry and labor groups (Industry respondents), petitioned for review of the Transport Rule in the U.S.
Court of Appeals for the D.C. Circuit. Over the dissent of Judge Rogers, the Court of Appeals vacated the rule in its entirety. See
EPA's actions, the appeals court held, exceeded the Agency's statutory authority in two respects. By promulgating FIPs before giving States a meaningful opportunity to adopt their own implementation plans, EPA had, in the court's view, upset the CAA's division of responsibility between the States and the Federal Government. In the main, the Court of Appeals acknowledged, EPA's FIP authority is triggered at the moment the Agency disapproves a SIP. See
But the Court of Appeals ruled that a different regime applies to a State's failure to meet its obligations under the Good Neighbor Provision. While a NAAQS was a "clear numerical target," a State's good neighbor obligation remained "nebulous and unknown," the court observed, until EPA calculated the State's emission budget.
The D.C. Circuit also held that the Agency's two-part interpretation of the Good Neighbor Provision ignored three "red lines ... cabin[ing the] EPA's authority."
According to the Court of Appeals, EPA had also failed to ensure that the Transport Rule did not mandate upwind States to reduce pollution unnecessarily. The Good Neighbor Provision, the D.C. Circuit noted, "targets [only] those emissions from upwind States that 'contribute significantly
to nonattainment
' " of a NAAQS in downwind States.
Finally, by deciding, at the screening analysis, that upwind contributions below
the one-percent threshold were insignificant, EPA had established a "floor" on the Agency's authority to act. See
In dissent, Judge Rogers criticized the majority for deciding two questions that were not, in her view, properly before the court. See
We granted certiorari to decide whether the D.C. Circuit had accurately construed the limits the CAA places on EPA's authority. See 570 U.S. ----,
II
Once EPA has calculated emission budgets, the D.C. Circuit held, the Agency must give upwind States the opportunity to propose SIPs allocating those budgets among in-state sources before issuing a FIP.
Before reaching the merits of this argument, we first reject EPA's threshold objection that the claim is untimely. According to the Agency, this argument-and the D.C. Circuit's opinion accepting it-rank as improper collateral attacks on EPA's prior SIP disapprovals. As earlier recounted, see
supra,
at 1597 - 1598, EPA, by the time it issued the Transport Rule, had determined that each regulated upwind State had failed to submit a SIP adequate to satisfy the Good Neighbor Provision. Many of those determinations, because unchallenged, became final after 60 days, see
We disagree. The gravamen of the State respondents' challenge is not that EPA's disapproval of any particular SIP was erroneous. Rather, respondents urge that, notwithstanding these disapprovals, the Agency was obliged to grant an upwind State a second opportunity to promulgate adequate SIPs once EPA set the State's emission budget. This claim does not depend on the validity of the prior SIP disapprovals. Even assuming the legitimacy of those disapprovals, the question remains whether EPA was required to do more than disapprove a SIP, as the State respondents urge, to trigger the Agency's statutory authority to issue a FIP. 12
Turning to the merits, we hold that the text of the statute supports EPA's position. As earlier noted, see
supra,
at 1594 - 1595, the CAA sets a series of precise deadlines to which the States and EPA must adhere. Once EPA issues any new or revised NAAQS, a State has three years to adopt a SIP adequate for compliance with the Act's requirements. See
If EPA determines a SIP to be inadequate, the Agency's mandate to replace it with a FIP is no less absolute:
"[EPA] shall promulgate a [FIP] at any time within 2 years after the [Agency]
"(A) finds that a State has failed to make a required submission or finds that the plan or plan revision submitted by the State does not satisfy the minimum [relevant] criteria ..., or
"(B) disapproves a [SIP] in whole or in part,
"unless the State corrects the deficiency, and [EPA] approves the plan or plan revision, before the [Agency] promulgates such [FIP]." § 7410(c)(1).
In other words, once EPA has found a SIP inadequate, the Agency has a statutory duty to issue a FIP "at any time" within two years (unless the State first "corrects the deficiency," which no one contends occurred here).
The D.C. Circuit, however, found an unwritten exception to this strict time prescription for SIPs aimed at implementing the Good Neighbor Provision. Expecting any one State to develop a "comprehensive solution" to the "collective problem" of interstate air pollution without first receiving EPA's guidance was, in the Court of Appeals' assessment, "set[ting] the States up to fail."
However sensible (or not) the Court of Appeals' position,
13
a reviewing court's "task is to apply the text [of the statute],
not to improve upon it."
Pavelic & LeFlore v. Marvel Entertainment Group, Div. of Cadence Industries Corp.,
Nor does the Act condition the duty to promulgate a FIP on EPA's having first quantified an upwind State's good neighbor obligations. As Judge Rogers observed in her dissent from the D.C. Circuit's decision, the Act does not require EPA to furnish upwind States with information of any kind about their good neighbor obligations before a FIP issues. See
The practical difficulties cited by the Court of Appeals do not justify departure from the Act's plain text. See
Barnhart v. Sigmon Coal Co.,
In short, nothing in the statute places EPA under an obligation to provide specific metrics to States before they undertake to fulfill their good neighbor obligations. By altering the schedule Congress provided for SIPs and FIPs, the D.C. Circuit stretched out the process. It allowed a delay Congress did not order and placed an information submission obligation on EPA Congress did not impose. The D.C. Circuit, we hold, had no warrant thus to revise the CAA's action-ordering prescriptions.
At oral argument, the State respondents emphasized EPA's previous decisions, in the NO
X
SIP Call and CAIR, to quantify the emission reductions required
of upwind States before the window to propose a SIP closed. See Tr. of Oral Arg. 37-39, 42-43, 45-46. In their view, by failing to accord States a similar grace period after issuing States' emission budgets, EPA acted arbitrarily. See
Whatever pattern the Agency followed in its NO
X
SIP call and CAIR proceedings, EPA retained discretion to alter its course provided it gave a reasonable explanation for doing so.
Motor Vehicle Mfrs. Assn. of United States, Inc. v. State
Farm Mut. Automobile Ins. Co.,
III
The D.C. Circuit also held that the Transport Rule's two-step interpretation of the Good Neighbor Provision conflicts with the Act. Before addressing this holding, we take up a jurisdictional objection raised by EPA.
The CAA directs that "[o]nly an objection to a rule ... raised with reasonable specificity during the period for public
comment ... may be raised during judicial review."
Assuming, without deciding, that respondents did not meet the Act's "reasonable specificity" requirement during the comment period, we do not regard that lapse as "jurisdictional." This Court has cautioned against "profligate use" of the label "jurisdictional."
Sebelius v. Auburn Regional Medical Center,
568 U.S. ----, ----,
Ryan,
We routinely accord dispositive effect to an agency's reasonable interpretation of ambiguous statutory language.
Chevron U.S.A. Inc. v. Natural Resources Defense Council,
Inc.,
This Court held EPA's interpretation of "source" a reasonable construction of an ambiguous statutory term. When "Congress has not directly addressed the precise [interpretative] question at issue," we cautioned, a reviewing court cannot "simply impose its own construction o[f] the statute."
We conclude that the Good Neighbor Provision delegates authority to EPA at least as certainly as the CAA provisions involved in Chevron . The statute requires States to eliminate those "amounts" of pollution that "contribute significantly to nonattainment " in downwind States.
A simplified example illustrates the puzzle EPA faced. Suppose the Agency sets a NAAQS, with respect to a particular pollutant, at 100 parts per billion (ppb), and that the level of the pollutant in the atmosphere of downwind State A is 130 ppb. Suppose further that EPA has determined that each of three upwind States-X, Y, and Z-contributes the equivalent of 30 ppb of the relevant pollutant to State A's airspace. The Good Neighbor Provision, as just observed, prohibits only upwind emissions that contribute significantly to downwind nonattainment . EPA's authority under the provision is therefore limited to eliminating a total of 30 ppb, 16 i.e., the overage caused by the collective contribution of States X, Y, and Z. 17
How is EPA to divide responsibility among the three States? Should the Agency allocate reductions proportionally (10 ppb each), on a per capita basis, on the basis of the cost of abatement, or by some other metric? See Brief for Federal Petitioners 50 (noting EPA's consideration of different
approaches). The Good Neighbor Provision does not answer that question for EPA. Cf.
Chevron,
Yet the Court of Appeals believed that the Act speaks clearly, requiring EPA to allocate responsibility for reducing emissions in "a manner proportional to" each State's "contributio[n]" to the problem.
The realities of interstate air pollution, however, are not so simple. Most upwind States contribute pollution to multiple downwind States in varying amounts. See 76 Fed.Reg. 48239-48246. See also Brief for Respondent Calpine Corp. et al . in Support of Petitioners 48-49 (offering examples). Suppose then that States X and Y also contribute pollutants to a second downwind State (State B), this time in a ratio of seven to one. Though State Y contributed a relatively larger share of pollution to State A, with respect to State B, State X is the greater offender. Following the proportionality approach with respect to State B would demand that State X reduce its emissions by seven times as much as State Y. Recall, however, that State Y, as just hypothesized, had to effect five times as large a reduction with respect to State A. The Court of Appeals' proportionality edict with respect to both State A and State B appears to work neither mathematically nor in practical application. Proportionality as to one downwind State will not achieve proportionality as to others. Quite the opposite. And where, as is generally true, upwind States contribute pollution to more than two downwind receptors, proportionality becomes all the more elusive.
Neither the D.C. Circuit nor respondents face up to this problem. The dissent, for its part, strains to give meaning to the D.C. Circuit's proportionality constraint as applied to a world in which multiple upwind States contribute emissions to multiple downwind locations. In the dissent's view,
upwind States must eliminate emissions by "whatever minimum amount reduces" their share of the overage in each and every one of the downwind States to which they are linked. See
post,
at 1613 - 1614. In practical terms, this means each upwind State will be required to reduce emissions by the amount necessary to eliminate that State's largest downwind contribution. The dissent's formulation, however, does not account for the combined and cumulative effect of each upwind State's reductions on attainment in multiple downwind locations. See
Persuaded that the Good Neighbor Provision does not dictate the particular allocation of emissions among contributing States advanced by the D.C. Circuit, we must next decide whether the allocation method chosen by EPA is a "permissible construction of the statute."
Chevron,
The Industry respondents argue that, however EPA ultimately divides responsibility among upwind States, the final calculation cannot rely on costs. The Good Neighbor Provision, respondents and the dissent emphasize, "requires each State to prohibit only those 'amounts' of air pollution emitted within the State that 'contribute significantly' to another State's nonattaintment." Brief for Industry Respondents 23 (emphasis added). See also post, at 1612 - 1613. The cost of preventing emissions, they urge, is wholly unrelated to the actual "amoun[t]" of air pollution an upwind State contributes. Brief for Industry Respondents 23. Because the Transport Rule considers costs, respondents argue, "States that contribute identical 'amounts' ... may be deemed [by EPA] to have [made] substantially different " contributions. Id., at 30.
But, as just explained, see supra, at 1603 - 1604, the Agency cannot avoid the task of choosing which among equal "amounts" to eliminate. The Agency has chosen, sensibly in our view, to reduce the amount easier, i.e., less costly, to eradicate, and nothing in the text of the Good Neighbor Provision precludes that choice.
Using costs in the Transport Rule calculus, we agree with EPA, also makes good sense. Eliminating those amounts that can cost-effectively be reduced is an efficient and equitable solution to the allocation problem the Good Neighbor Provision requires the Agency to address. Efficient because EPA can achieve the levels of attainment, i.e., of emission reductions, the proportional approach aims to achieve, but at a much lower overall cost. Equitable because, by imposing uniform cost thresholds on regulated States, EPA's rule subjects to stricter regulation those States that have done relatively less in the past to control their pollution. Upwind States that have not yet implemented pollution controls of the same stringency as their neighbors will be stopped from free riding on their neighbors' efforts to reduce pollution. They will have to bring down their emissions by installing devices of the kind in which neighboring States have already invested.
Suppose, for example, that the industries of upwind State A have expended considerable resources installing modern pollution-control devices on their plants. Factories in upwind State B, by contrast, continue to run old, dirty plants.
Yet, perhaps because State A is more populous and therefore generates a larger sum of pollution overall, the two States' emissions have equal effects on downwind attainment. If State A and State B are required to eliminate emissions proportionally ( i.e., equally ), sources in State A will be compelled to spend far more per ton of reductions because they have already utilized lower cost pollution controls. State A's sources will also have to achieve greater reductions than would have been required had they not made the cost-effective reductions in the first place. State A, in other words, will be tolled for having done more to reduce pollution in the past. 20 EPA'S COST-BASED ALLocation avoids these anomalies.
Obligated to require the elimination of only those "amounts" of pollutants that contribute to the nonattainment of NAAQS in downwind States, EPA must decide how to differentiate among the otherwise like contributions of multiple upwind States. EPA found decisive the difficulty of eliminating each "amount,"
i.e.,
the cost incurred in doing so. Lacking a dispositive statutory instruction to guide it, EPA's decision, we conclude, is a "reasonable" way of filling the "gap left open by Congress."
Chevron,
The D.C. Circuit stated two further objections to EPA's cost-based method of defining an upwind State's contribution. Once a State was screened in at step one of EPA's analysis, its emission budget was calculated solely with reference to the uniform cost thresholds the Agency selected at step two. The Transport Rule thus left open the possibility that a State might be compelled to reduce emissions beyond the point at which every affected downwind State is in attainment, a phenomenon the Court of Appeals termed "over-control."
We agree with the Court of Appeals to this extent: EPA cannot require a State to reduce its output of pollution by more than is necessary to achieve attainment in every downwind State or at odds with the one-percent threshold the Agency has set. If EPA requires an upwind State to reduce emissions by more than the amount necessary to achieve attainment in every downwind State to which it is linked, the Agency will have overstepped its authority, under the Good Neighbor Provision, to eliminate those "amounts [that] contribute ... to nonattainment." Nor can EPA demand reductions that would drive an upwind State's contribution to every downwind State to which it is linked below one percent of the relevant NAAQS. Doing so would be counter to step one of the Agency's interpretation of the Good Neighbor Provision. See 76 Fed.Reg. 48236 ("[S]tates whose contributions are below th[e] thresholds do not significantly contribute to nonattainment ... of the relevant NAAQS.").
Neither possibility, however, justifies wholesale invalidation of the Transport Rule. First, instances of "over-control" in particular downwind locations, the D.C. Circuit acknowledged, see
Finally, in a voluminous record, involving thousands of upwind-to-downwind linkages, respondents point to only a few instances of "unnecessary" emission reductions, and even those are contested by EPA. Compare Brief for Industry Respondents 19 with Reply Brief for Federal Petitioners 21-22. EPA, for its part, offers data, contested by respondents, purporting to show that few (if any) upwind States have been required to limit emissions below the one-percent threshold of significance. Compare Brief for Federal Petitioners 37, 54-55, with Brief for Industry Respondents 40.
If any upwind State concludes it has been forced to regulate emissions below the one-percent threshold or beyond the point necessary to bring all downwind States into attainment,
that State may bring a particularized, as-applied challenge to the Transport Rule, along with any other as-applied challenges it may have. Cf.
Babbitt v. Sweet Home Chapter, Communities for Great Ore.,
In sum, we hold that the CAA does not command that States be given a second opportunity to file a SIP after EPA has quantified the State's interstate pollution obligations. We further conclude that the Good Neighbor Provision does not require EPA to disregard costs and consider exclusively each upwind State's physically proportionate responsibility for each downwind air quality problem. EPA's cost-effective allocation of emission reductions among upwind States, we hold, is a permissible, workable, and equitable interpretation of the Good Neighbor Provision.
* * *
For the reasons stated, the judgment of the United States Court of Appeals for the D.C. Circuit is reversed, and the cases are remanded for further proceedings consistent with this opinion.
It is so ordered.
Justice ALITO took no part in the consideration or decision of these cases.
Justice SCALIA, with whom Justice THOMAS joins, dissenting.
Too many important decisions of the Federal Government are made nowadays by unelected agency officials exercising broad lawmaking authority, rather than by the people's representatives in Congress. With the statute involved in the present cases, however, Congress did it right. It specified quite precisely the responsibility of an upwind State under the Good Neighbor Provision: to eliminate those amounts of pollutants that it contributes to downwind problem areas. But the Environmental Protection Agency was unsatisfied with this system. Agency personnel, perhaps correctly, thought it more efficient to require reductions not in proportion to the amounts of pollutants for which each upwind State is responsible, but on the basis of how cost-effectively each can decrease emissions .
Today, the majority approves that undemocratic revision of the Clean Air Act. The Agency came forward with a textual justification for its action, relying on a farfetched meaning of the word "significantly" in the statutory text. That justification is so feeble that today's majority does not even recite it, much less defend it. The majority reaches its result ("Look Ma, no hands!") without benefit of text, claiming to have identified a remarkable "gap" in the statute, which it proceeds to fill (contrary to the plain logic of the statute) with cost-benefit analysis-and then, with no pretended textual justification at all, simply extends cost-benefit analysis beyond the scope of the alleged gap.
Additionally, the majority relieves EPA of any obligation to announce novel interpretations of the Good Neighbor Provision before the States must submit plans that are required to comply with those interpretations. By according the States primacy in deciding how to attain the governing air-quality standards, the Clean Air Act is pregnant with an obligation for the Agency to set those standards before the States can be expected to achieve them. The majority nonetheless approves EPA's promulgation of federal plans implementing good-neighbor benchmarks before the States could conceivably have met those benchmarks on their own.
I would affirm the judgment of the D.C. Circuit that EPA violated the law both in crafting the Transport Rule and in implementing it. 1
I. The Transport Rule
"It is axiomatic that an administrative agency's power to promulgate legislative
regulations is limited to the authority delegated by Congress."
Bowen v. Georgetown Univ. Hospital,
In the Government's argument here, the asserted textual support for the efficient-reduction approach adopted by EPA in the Transport Rule is the ambiguity of the word "significantly" in the statutory requirement that each State eliminate those "amounts" of pollutants that "contribute significantly to nonattainment" in downwind States. § 7410(a)(2)(D)(i)(I) (emphasis added). As described in the Government's briefing:
"[T]he term 'significantly' ... is ambiguous, and ... EPA may permissibly determine the amount of a State's 'significant' contribution by reference to the amount of emissions reductions achievable through application of highly cost-effective controls." Reply Brief for Federal Petitioners 15-16 (emphasis added; some internal quotation marks omitted).
And as the Government stated at oral argument:
"[I]n terms of the language, 'contribute significantly,' ... EPA reasonably construed that term to include a component of difficulty of achievement [ i.e., cost]; that is, in common parlance, we might say that dunking a basketball is a more significant achievement for somebody who is 5 feet 10 than for somebody who is 6 feet 10." Tr. of Oral Arg. 9 (emphasis added).
But of course the statute does not focus on whether the upwind State has "achieved significantly"; it asks whether the State has "contributed significantly" to downwind pollution. The provision addresses the physical effects of physical causes, and it is only the magnitude of the relationship sufficient to trigger regulation that admits of some vagueness. Stated differently, the statute is ambiguous as to
how much
of a contribution to downwind pollution is "significant," but it is not at all ambiguous as to whether factors unrelated to the
amounts of pollutants
that make up a contribution
affect the analysis. Just as "[i]t does not matter whether the word 'yellow' is ambiguous when the agency has interpreted it to mean 'purple,' "
United States v. Home Concrete & Supply, LLC,
566 U.S. ----, ----, n. 1,
It would be extraordinary for Congress, by use of the single word "significantly," to transmogrify a statute that assigns responsibility on the basis of amounts of pollutants emitted into a statute authorizing EPA to reduce interstate pollution in the manner that it believes most efficient. We have repeatedly said that Congress "does not alter the fundamental details of a regulatory scheme in vague terms or ancillary provisions-it does not, one might say, hide elephants in mouseholes."
Whitman v. American Trucking Assns., Inc.,
The statute's history demonstrates that "significantly" is not code for "feel free to consider compliance costs." The previous version of the Good Neighbor Provision required each State to prohibit emissions that would "
prevent
attainment or maintenance by any other State of any [NAAQS]."
In another respect also EPA's reliance upon the word "significantly" is plainly mistaken. The Good Neighbor Provision targets for elimination not only those emissions that "contribute significantly to nonattainment [of NAAQS] in ... any other State," but also those that "interfere with maintenance [of NAAQS] by ... any other State." § 7410(a)(2)(D)(i)(I). The wiggle-word "significantly" is absent from the latter phrase. EPA does not-cannot-provide any textual justification for the conclusion that, when the same amounts of a pollutant travel downwind from States X and Y to a single area in State A, the emissions from X but not Y can be said to "interfere with maintenance" of the NAAQS in A just because they are cheaper to eliminate. Yet EPA proposes to use the "from each according to its ability" approach for nonattainment areas and maintenance areas.
To its credit, the majority does not allude to, much less try to defend, the Government's "significantly" argument. But there is a serious downside to this. The sky-hook of "significantly" was called into service to counter the criterion of upwind-state responsibility plainly provided in the statute's text: amounts of pollutants contributed to downwind problem areas. See Brief for Federal Petitioners 42-45. Having forsworn reliance on "significantly" to convert responsibility for amounts of pollutants into responsibility for easy reduction of pollutants, the majority is impaled upon the statutory text.
B. The Alleged "Gap"
To fill the void created by its abandonment of EPA's "significantly" argument, the majority identifies a supposed gap in the text, which EPA must fill: While the text says that each upwind State must be responsible for its own contribution to downwind pollution, it does not say how responsibility is to be divided among multiple States when the total of their combined contribution to downwind pollution in a particular area exceeds the reduction that the relevant NAAQS requires. In the example given by the majority, ante, at 1603 - 1604, when each of three upwind States contributes 30 units of a pollutant to a downwind State but the reduction required for that State to comply with the NAAQS is only 30 units, how will responsibility for that 30 units be apportioned? Wow, that's a hard one-almost the equivalent of asking who is buried in Grant's Tomb. If the criterion of responsibility is amounts of pollutants, then surely shared responsibility must be based upon relative amounts of pollutants -in the majority's example, 10 units for each State. The statute makes no sense otherwise. The Good Neighbor Provision contains a gap only for those who blind themselves to the obvious in order to pursue a preferred policy.
But not only does the majority bring in cost-benefit analysis to fill a gap that does not really exist. Having filled that "gap," it then extends the efficiency-based principle to situations beyond the imaginary gap -that is, situations where no apportionment is required . Even where only a single upwind State contributes pollutants to a downwind State, its annual emissions "budget" will be based not upon the amounts of pollutants it contributes, but upon what "pollution controls [are] available at the chosen cost thresholds." Ante, at 1597. EPA's justification was its implausible (and only half-applicable) notion that "significantly" imports cost concerns into the provision. The majority, having abandoned that absurdity, is left to deal with the no-apportionment situation with no defense-not even an imaginary gap-against a crystal-clear statutory text.
C. The Majority's Criticisms of Proportional Reduction
1. Impossibility
The majority contends that a proportional-reduction approach "could scarcely be satisfied in practice" and "appears to work neither mathematically nor in practical application," ante, at 1605 -in essence, that the approach is impossible of application. If that were true, I know of no legal authority and no democratic principle that would derive from it the consequence that EPA could rewrite the statute, rather than the consequence that the statute would be inoperative. "There are sometimes statutes which no rule or canon of interpretation can make effective or applicable to the situations of fact which they purport to govern. In such cases the statute must simply fail." 3 R. Pound, Jurisprudence 493 (1959) (footnote omitted). In other words, the impossibility argument has no independent force: It is relevant only if the majority's textual interpretation is permissible. But in any event, the argument is wrong.
The impossibility theorem rests upon the following scenario: "Imagine that States X and Y ... contribute air pollution to State A in a ratio of one to five...."
Ante,
at 1605. And suppose that "States X and Y also contribute pollutants to a second downwind State (State B), this time in a ratio of seven to one."
First, the majority's formulation suggests that EPA measures the comparative downwind drift of pollutants in free-floating proportions between States. In reality, however, EPA assesses quantities (in physical units), not proportions. So, the majority's illustration of a 1-to-5 ratio describing the relative contributions of States X and Y to State A's pollution might mean (for example) that X is responsible for 0.2 unit of some pollutant above the NAAQS in A and that Y is responsible for 1 unit. And the second example, assuming a 7-to-1 ratio underlying State X's and Y's contributions to State B's pollution, might mean that State X supplies 0.7 unit of the same pollutant above the NAAQS and State Y, 0.1 unit. Under a proportional-reduction approach, State X would be required to eliminate emissions of that pollutant by whatever minimum amount reduces both State A's level by 0.2 unit and State B's by 0.7 unit. State Y, in turn, would be required to curtail its emissions by whatever minimum amount decreases both State A's measure by 1 unit and State B's by 0.1 unit.
But, the majority objects, the reductions that State X must make to help bring State B into compliance may be more than those necessary for it to help bring State A into compliance, resulting in "over-control" of X with respect to A. See
ante,
at 1604 - 1606, and n. 19. This objection discloses the second flaw in the impossibility theorem. Echoing EPA, see Brief for Federal Petitioners 47-48, the majority believes that the D.C. Circuit's interpretation of the Good Neighbor Provision forbids over-control with respect to even a single downwind receptor. That is the only way in which the proportional-reduction approach could be deemed "to work neither mathematically nor in practical application" on its face.
Ante,
at 1605. But the premise is incorrect. Although some of the D.C. Circuit's simplified examples might support that conclusion, its opinion explicitly acknowledged that the complexity of real-world conditions demands the contrary: "To be sure, ... there may be some truly unavoidable over-control in some downwind States that occurs as a byproduct of the necessity of reducing upwind States' emissions enough to meet the NAAQS in other downwind States."
The majority relies on an EPA document preceding the Transport Rule to establish the Agency's supposed belief that the proportional-reduction approach "could scarcely be satisfied in practice." Ante, at 1605. But the document says no such thing. Rather, it shows that the Agency rejected a proportion-based, "air[-]quality-only" methodology not because it was impossible of application, but because it failed to account for costs. See App. in No. 11-1302 etc. (CADC), pp. 2311-2312. The document labels as a "technical difficulty" (not an impossibility) the fact that "most upwind states contribute to multiple downwind [receptors] (in multiple states) and would have a different reduction percentage for each one." Id., at 2312. The Clean Air Act is full of technical difficulties, and this one is overcome by requiring each State to make the greatest reduction necessary with respect to any downwind area.
2. Over-Control
Apparently conceding that the proportional-reduction approach may not be impossible of application after all, the majority alternatively asserts that it would cause "costly overregulation unnecessary to, indeed in conflict with, the Good Neighbor Provision's goal of attainment." Ante, at 1605. This assertion of massive overregulation assumes that a vast number of downwind States will be the accidental beneficiaries of collateral pollution reductions-that is, nontargeted reductions that occur as a consequence of required reductions targeted at neighboring downwind States. (Collateral pollution reduction is the opposite of collateral damage, so to speak.) The majority contends that the collateral pollution reductions enjoyed by a downwind State will cause the required upwind reductions actually targeting that State to exceed the level necessary to assure attainment or maintenance, thus producing unnecessary over-control. I have no reason to believe that the problem of over-control is as extensive and thus "costly" as the majority alleges, and the majority provides none.
But never mind that. It suffices to say that over-control is no more likely to occur when the required reductions are apportioned among upwind States on the basis of
amounts of pollutants
contributed than when they are apportioned on the basis of
cost
. There is no conceivable reason why the efficient-reduction States that bear the brunt of the majority's (and EPA's) approach are less likely to be over-controlled than the major-pollution-causing States that would bear the brunt of my (and the statute's) approach. Indeed, EPA never attempted to establish that the Transport Rule did not produce gross over-control. See
In any case, the solution to over-control under a proportional-reduction system is not difficult to discern. In calculating good-neighbor responsibilities, EPA would simply be required to make allowance for what I have called collateral pollution reductions. The Agency would set upwind States' obligations at levels that, after taking into account those reductions, suffice to produce attainment in all downwind States. Doubtless, there are multiple ways for the Agency to accomplish that task in accordance with the statute's amounts-based, proportional focus. 2 The majority itself invokes an unexplained device to prevent over-control "in uncommon particular applications" of its scheme. Ante, at 1609. Whatever that device is, it can serve just as well to prevent over-control under the approach I have outlined.
I fully acknowledge that the proportional-reduction approach will demand some complicated computations where one upwind State is linked to multiple downwind States and vice versa. I am confident, however, that EPA's skilled number-crunchers can adhere to the statute's quantitative (rather than efficiency) mandate by crafting quantitative solutions. Indeed, those calculations can be performed at the desk, whereas the "from each according to its ability" approach requires the unwieldy field examination of many pollution-producing sources with many sorts of equipment.
D. Our Precedent
The majority agrees with EPA's assessment that "[u]sing costs in the Transport Rule calculus ... makes good sense." Ante, at 1607. Its opinion declares that "[e]liminating those amounts that can cost-effectively be reduced is an efficient and equitable solution to the allocation problem the Good Neighbor Provision requires the Agency to address." Ibid. Efficient, probably. Equitable? Perhaps so, but perhaps not. See Brief for Industry Respondents 35-36. But the point is that whether efficiency should have a dominant or subordinate role is for Congress, not this Court, to determine.
This is not the first time parties have sought to convert the Clean Air Act into a mandate for cost-effective regulation.
Whitman v. American Trucking Assns., Inc.,
In
American Trucking,
the Court "refused to find implicit in ambiguous sections of the [Clear Air Act] an authorization to consider costs that has elsewhere, and so often, been expressly granted,"
id
., at 467,
II. Imposition of Federal Implementation Plans
The D.C. Circuit vacated the Transport Rule for the additional reason that EPA
took the reins in allocating emissions budgets among pollution-producing sources through Federal Implementation Plans (FIPs) without first providing the States a meaningful opportunity to perform that task through State Implementation Plans (SIPs). The majority rejects that ruling on the ground that "the Act does not require EPA to furnish upwind States with information of any kind about their good neighbor obligations before a FIP issues." Ante, at 1601. "[N]othing in the statute," the majority says, "places EPA under an obligation to provide specific metrics to States before they undertake to fulfill their good neighbor obligations." Ante, at 1601. This remarkably expansive reasoning makes a hash of the Clean Air Act, transforming it from a program based on cooperative federalism to one of centralized federal control. Nothing in the Good Neighbor Provision suggests such a stark departure from the Act's fundamental structure.
A. Implications of State Regulatory Primacy
Down to its very core, the Clean Air Act sets forth a federalism-focused regulatory strategy. The Act begins by declaring that "air pollution prevention (that is, the reduction or elimination, through any measures, of the amount of pollutants produced or created at the source) and air pollution control at its source is the primary responsibility of States and local governments ." § 7401(a)(3) (emphasis added). State primacy permeates Title I, which addresses the promulgation and implementation of NAAQS, in particular . Under § 7409(a), EPA must promulgate NAAQS for each pollutant for which air-quality criteria have been issued pursuant to § 7408. Section 7410(a)(1), in turn, requires each State, usually within three years of each new or revised NAAQS, to submit a SIP providing for its "implementation, maintenance, and enforcement." EPA may step in to take over that responsibility if, and only if, a State discharges it inadequately. Specifically, if the Agency finds that a State has failed to make a required or complete submission or disapproves a SIP, it "shall promulgate a [FIP] at any time within 2 years ..., unless the State corrects the deficiency, and [EPA] approves the [SIP] or [SIP] revision." § 7410(c)(1).
To describe the effect of this statutory scheme in simple terms: After EPA sets numerical air-quality benchmarks, "Congress plainly left with the States ... the power to determine which sources would be burdened by regulation and to what extent."
Union Elec. Co.,
The Good Neighbor Provision is one of the requirements with which SIPs must comply. § 7410(a)(2)(D)(i)(I). The statutory structure described above plainly demands that EPA afford States a meaningful opportunity to allocate reduction responsibilities among the sources within their borders. But the majority holds that EPA may in effect force
the States
to guess at what those responsibilities might be by requiring them to submit SIPs before learning what the Agency regards as a "significan[t]" contribution-with the consequence of losing their regulatory primacy if they guess wrong. EPA asserts that the D.C. Circuit "was wrong as a factual matter" in reasoning that States cannot feasibly implement the Good Neighbor Provision without knowing what the Agency considers their obligations to be. Brief for Federal Petitioners 29. That is literally unbelievable. The only support that EPA can muster are the assertions that "States routinely undertake technically complex air quality determinations" and that "emissions information from all States is publicly available."
Call it "punish[ing] the States for failing to meet a standard that EPA had not yet announced and [they] did not yet know,"
"It is one thing to expect regulated parties to conform their conduct to an agency's interpretations once the agency announces them; it is quite another to require regulated parties to divine the agency's interpretations in advance or else be held liable when the agency announces its interpretations for the first time ... and demands deference." Christopher v. SmithKline Beecham Corp., 567 U.S. ----, ----,132 S.Ct. 2156 , 2168,183 L.Ed.2d 153 (2012).
That principle applies a fortiori to a regulatory regime that rests on principles of cooperative federalism.
B. Past EPA Practice
EPA itself has long acknowledged the proposition that it is nonsensical to expect States to comply with the Good Neighbor Provision absent direction about what constitutes a "significan[t]" contribution to interstate pollution.
The Agency consistently adopted that position prior to the Transport Rule. In 1998, when it issued the NO
X
SIP Call under § 7410(k)(5), EPA acknowledged that "[w]ithout determining an acceptable level of NO
X
reductions, the upwind State would not have guidance as to what is an acceptable submission." 63 Fed.Reg. 57370. EPA deemed it "most efficient-indeed necessary-for the Federal government to establish the overall emissions levels for the various States."
Similarly, when EPA issued the Clean Air Interstate Rule (CAIR) in 2005 under § 7410(c), it explicitly "recognize[d] that States would face great difficulties in developing transport SIPs to meet the requirements of today's action without th[e] data and policies" provided by the Rule, including "judgments from EPA concerning the appropriate criteria for determining whether upwind sources contribute significantly to downwind nonattainment under [§ 74]10(a)(2)(D)." 70 id., at 25268-25269. The Agency thus gave the States 18 months to submit SIPs implementing their new good-neighbor responsibilities. See id., at 25166-25167, 25176. Although EPA published FIPs before that window closed, it specified that they were meant to serve only as a "Federal backstop" and would not become effective unless necessary "a year after the CAIR SIP submission deadline." 71 id., at 25330-25331 (2006).
Even since promulgating the Transport Rule, EPA has repeatedly reaffirmed that States cannot be expected to read the Agency's mind. In other proceedings, EPA has time and again stated that although "[s]ome of the elements of the [SIP-SUBMISSION PROCESS] ARE RELATIVELY STraIGHTforward, ... others clearly require interpretation by EPA through rulemaking, or recommendations through guidance, in order to give specific meaning for a particular NAAQS." 76 id., at 58751 (2011). As an example of the latter, the Agency has remarked that the Good Neighbor Provision "contains numerous terms that require substantial rulemaking by EPA in order to determine such basic points as what constitutes significant contribution," citing CAIR. Ibid., n. 6. In fact, EPA repeated those precise statements not once, not twice, but 30 times following promulgation of the Transport Rule. 4
Notwithstanding what parties may have argued in other litigation many years ago, it is beyond responsible debate that the States cannot possibly design FIP-proof SIPs without knowing the EPA-prescribed targets at which they must aim. EPA insists that it enjoys significant discretion-indeed, that it can consider essentially whatever factors it wishes-to determine what constitutes a "significan[t]" contribution to interstate pollution; and it simultaneously asserts that the States ought to know what quantities it will choose. The Agency-and the majority-cannot have it both ways.
C. Abuse of Discretion
The majority attempts to place the blame for hollowing out the core of the Clean Air Act on "the Act's plain text." Ante, at 1601. The first textual element to which it refers is § 7410(c)'s requirement that after EPA has disapproved a SIP, it "shall promulgate a[FIP] at any time within 2 years." That is to say, the Agency has discretion whether to act at once or to defer action until some later point during the 2-year period. But it also has discretion to work within the prescribed timetable to respect the rightful role of States in the statutory scheme by delaying the issuance or enforcement of FIPs pending the resubmission and approval of SIPs-as EPA's conduct surrounding CAIR clearly demonstrates. And all of this assumes that the Agency insists on disapproving SIPs before promulgating the applicable good-neighbor standards-though in fact EPA has discretion to publicize those metrics before the window to submit SIPs closes in the first place.
The majority states that the Agency "retained discretion to alter its course" from the one pursued in the NO
X
SIP Call and CAIR,
ante,
at 1601 - 1602, but that misses the point. The point is that EPA has discretion to arrange things so as to preserve the Clean Air Act's core principle of
state primacy-and that it is an
abuse of discretion
to refuse to do so. See § 7607(d)(9)(A) ; see also
The majority's conception of administrative discretion is so sprawling that it would allow EPA to subvert state primacy not only with respect to the interstate-pollution concerns of the Good Neighbor Provision, but with respect to the much broader concerns of the NAAQS program more generally. States must submit SIPs "within 3 years" of each new or revised NAAQS " or such shorter period as [EPA] may prescribe ." § 7410(a)(1) (emphasis added). Because there is no principled reason to read that scheduling provision in a less malleable manner than the one at issue here, under the majority's view EPA could demand that States submit SIPs within a matter of days-or even hours-after a NAAQS publication or else face the immediate imposition of FIPs.
The second element of "plain text" on which the majority relies is small beer indeed. The Good Neighbor Provision does not expressly state that EPA must publish target quantities before the States are required to submit SIPs-even though the Clean Air Act does so for NAAQS more generally and for vehicle inspection and maintenance programs, see § 7511a(c)(3)(B). From that premise, the majority reasons that "[h]ad Congress intended similarly to defer States' discharge of their obligations under the Good Neighbor Provision, Congress ... would have included a similar direction in that section." Ante, at 1601. Perhaps so. But EPA itself read the statute differently when it declared in the NO X SIP Call that "[d]etermining the overall level of air pollutants allowed to be emitted in a State is comparable to determining [NAAQS], which the courts have recognized as EPA's responsibility, and is distinguishable from determining the particular mix of controls among individual sources to attain those standards, which the caselaw identifies as a State responsibility." 63 Fed.Reg. 57369 (emphasis added).
The negative implication suggested by a statute's failure to use consistent terminology can be a helpful guide to determining meaning, especially when all the provisions in question were enacted at the same time (which is not the case here). But because that interpretive canon, like others, is just one clue to aid construction, it can be overcome by more
powerful indications of meaning elsewhere in the statute. It is, we have said, "no more than a rule of thumb that can tip the scales when a statute could be read in multiple ways."
Sebelius v. Auburn Regional Medical Center,
568 U.S. ----, ----,
Addressing the problem of interstate pollution in the manner Congress has prescribed-or in any other manner, for that matter-is a complex and difficult enterprise. But "[r]egardless of how serious the problem an administrative agency seeks to address, ... it may not exercise its authority 'in a manner that is inconsistent with the administrative structure that Congress enacted into law.' "
Brown & Williamson,
I dissent.
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Cite This Page — Counsel Stack
134 S. Ct. 1584, 188 L. Ed. 2d 775, 572 U.S. 489, 2014 U.S. LEXIS 3108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/epa-v-eme-homer-city-generation-lp-scotus-2014.