Mexichem Specialty Resins, Inc. v. Environmental Protection Agency

787 F.3d 544, 415 U.S. App. D.C. 295, 80 ERC (BNA) 1541, 2015 U.S. App. LEXIS 8903
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 29, 2015
Docket12-1260, 12-1265, 12-1266, 12-1267
StatusPublished
Cited by93 cases

This text of 787 F.3d 544 (Mexichem Specialty Resins, Inc. v. Environmental Protection Agency) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mexichem Specialty Resins, Inc. v. Environmental Protection Agency, 787 F.3d 544, 415 U.S. App. D.C. 295, 80 ERC (BNA) 1541, 2015 U.S. App. LEXIS 8903 (D.C. Cir. 2015).

Opinions

Opinion for the Court filed by Circuit Judge PILLARD.

Opinion dissenting in part filed by Circuit Judge KAVANAUGH.

PILLARD, Circuit Judge:

This case concerns the production of polyvinyl chloride (PVC), one of the world’s most common and versatile plastics, used in everything from water pipes to credit cards. As is true of the making of so many good things, however, the less one knows, the better one sleeps. PVC production results in the emission of more than a dozen known or suspected carcinogens and other hazardous air pollutants, a miasma that includes the known carcinogens 1, 3-butadiene, benzene, and vinyl chloride. See Proposed PVC Rule, 76 Fed.Reg. 29,528, 29,532 (May 20, 2011). Congress has charged the Environmental Protection Agency with the difficult task of protecting the health of the American public by ensuring that industry reduce to the greatest extent it can emissions into the atmosphere of carcinogens and similarly dangerous chemicals.

In 2012, EPA promulgated a Rule setting first-time-ever limits on the emission of most hazardous air pollutants from PVC production. Petitioners, PVC manufacturers, challenge the Rule. They contend that many of the Rule’s emissions limits should be vacated on the grounds that EPA did not follow required rulemaking procedures, used faulty data in setting some of the limits, and poorly designed certain aspects of the regulation. They also ask the court to set aside some of the Rule’s monitoring and compliance requirements. Petitioners raised many of these objections for the first time in petitions for reconsideration with EPA that are awaiting resolution. The Clean Air Act therefore precludes the court from reviewing them now, and we decline Petitioners’ request that we stay EPA’s Rule pending the agency’s completion of its reconsideration. As to those challenges to the Rule that are ready for our review, we hold that EPA acted reasonably and in accordance with the Clean Air Act. We therefore deny the petitions.

I.

The Clean Air Act requires EPA to promulgate regulations limiting the emission of hazardous air pollutants from “major sources” and “area sources.” 42 U.S.C. § 7412(d)(1). Those pollutants are specified on a list of hazardous air pollutants Congress established in 1990 in an amendment to the Act.1 42 U.S.C. § 7412(b)(1); see Nat’l Lime Ass’n v. EPA, 233 F.3d 625, 628-29, 633-34 (D.C.Cir.2000). For listed pollutants, EPA must set emissions standards in two steps: First EPA sets a baseline, or “MACT floor,” derived from data about the cleanest-performing similar sources already in the market; and, second, EPA investigates methods that may not already be in use to discern whether even more stringent, “beyond-the-floor” standards are achievable to [550]*550further reduce emissions.2 See 42 U.S.C. §§ 7412(d)(2), (d)(3); Nat’l Lime, 233 F.3d at 629, 634.

The Rule under review establishes limits on hazardous air pollutant emissions from major and area sources at various points in the PVC production process. See PVC Rule, 77 Fed. Reg. 22,848, 22,851-55 (Apr. 17, 2012); id. at 22,857-59 (summarizing major source emissions standards); id. at 22,862-63 (summarizing area source emissions standards). The Rule limits the concentration of hazardous air pollutants that may remain in PVC resins (the “stripped resins” limits), the concentration of hazardous air pollutants that can be present in exhaust vented into the atmosphere (the “process vent” limits), and the concentration of hazardous air pollutants that may be dissolved in wastewater (the “process wastewater” limits). Proposed PVC Rule, 76 Fed. Reg. at 29,531-35; see also 40 C.F.R. § 63.12005. The Rule also requires the installation of monitoring equipment and the implementation of testing policies and workplace practices, all of which are designed to ensure initial and continuous compliance with EPA’s emissions limits. See PVC Rule, 77 Fed. Reg. at 22,859-62 (summarizing compliance requirements).

The Rule stems from Congress’s 1990 amendments to the Clean Air Act. In those amendments, Congress (1) mandated that EPA regulate over one hundred specified hazardous air pollutants, Nat’l Lime, 233 F.3d at 633, and (2) required EPA to review within ten years of the Act’s amendment all of its preexisting emissions standards to ensure that they cover listed pollutants. 42 U.S.C. § 7412(q)(1); see Mossville Envtl. Action Now v. EPA, 370 F.3d 1232, 1236-37 (D.C.Cir.2004). As of 1990, EPA already had a longstanding regulation limiting the emission of vinyl chloride, one of the hazardous air pollutants from PVC sources. 41 Fed. Reg. 46,560 (Oct. 21, 1976). Congress’s amendments required EPA to revisit its pre-1990 vinyl chloride emissions standard and expand it to regulate all the newly listed hazardous air pollutants from PVC sources.

EPA got part of the way there. It promulgated a rule in 1992, the “HON Rule,” that regulated emissions from the production of ethylene dichloride and vinyl chloride monomer, two inputs to PVC production.3 Mossville, 370 F.3d at 1237. The HON Rule did not, however, regulate emissions arising from the production of PVC itself. Id. Because the HON Rule did not cover PVC production, EPA still needed to undertake another rulemaking to comply with Congress’s mandate that it revisit and expand its earlier vinyl chloride regulation. Id. That second Rule is at issue here.

EPA began development in 1998 of a version of the Rule that it promulgated in 2002. See 67 Fed. Reg. 45,886, 45,889 (July 10, 2002). In that Rule, EPA readopted its pre-1990 limits for vinyl chloride emissions from PVC production, determining that those limits were a good estimate of the MACT floors for vinyl chloride. Mossville, 370 F.3d at 1237. In a challenge to the 2002 rule’s lawfulness and rationality under the Clean Air Act, we sustained EPA’s judgment. Id. at 1234, 1237, 1242. We found the Rule [551]*551flawed in part, however, for its failure to set limits on all of the remaining hazardous air pollutants the Act requires EPA to regulate. Id. at 1242-43. EPA argued that the same technologies that remove vinyl chloride from PVC emissions — “stripping, scrubbing, incineration” — reduce the emission of all hazardous air pollutants to a similar degree and that the emissions limit for vinyl chloride therefore could stand in as a “surrogate” for setting individual limits on the emission of other hazardous air pollutants. Id. at 1237. We found EPA’s judgment on that point unsupported by the record and vacated and remanded the Rule for further explanation and reconsideration, as appropriate. Id. at 1243.

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787 F.3d 544, 415 U.S. App. D.C. 295, 80 ERC (BNA) 1541, 2015 U.S. App. LEXIS 8903, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mexichem-specialty-resins-inc-v-environmental-protection-agency-cadc-2015.