Nat Resrc Def Cncl v. EPA

489 F.3d 1364
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 19, 2007
Docket04-1323
StatusPublished

This text of 489 F.3d 1364 (Nat Resrc Def Cncl v. EPA) 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
Nat Resrc Def Cncl v. EPA, 489 F.3d 1364 (D.C. Cir. 2007).

Opinion

489 F.3d 1364

NATURAL RESOURCES DEFENSE COUNCIL and Sierra Club, Petitioners
v.
ENVIRONMENTAL PROTECTION AGENCY and Stephen L. Johnson, Administrator, Environmental Protection Agency, Respondents
American Forest and Paper Association Inc., et al., Intervenors.

No. 04-1323.

No. 04-1325.

No. 04-1328.

No. 06-1140.

United States Court of Appeals, District of Columbia Circuit.

Argued April 23, 2007.

Decided June 19, 2007.

On Petitions for Review of an Order of the Environmental Protection Agency.

James S. Pew argued the cause for petitioners NRDC, et al. With him on the briefs was John D. Walke. Amanda C. Leiter and David G. McIntosh entered appearances.

Russell S. Frye argued the cause and filed the briefs for petitioner Louisiana-Pacific Corporation.

Thomas E. Starnes and L. Eden Burgess were on the brief for amici curiae State and Territorial Air Pollution Program Administrators and Association of Local Air Pollution Control Officials in support of petitioners.

David S. Gualtieri, Attorney, and David Gunter, Attorney, U.S. Department of Justice, argued the cause for respondent. With him on the brief were John C. Cruden, Deputy Assistant Attorney General, David Gunter, Attorney, and Michael W. Thrift, Counsel, U.S. Environmental Protection Agency.

Claudia M. O'Brien argued the cause for industry intervenors in support of respondent. With her on the brief was Cassandra Sturkie. Brock R. Landry, Guy J. Sternal, Paul H. Amundsen, and William F. Lane entered appearances.

Peter L. de la Cruz was on the brief for amicus curiae Formaldehyde Council, Inc. in support of respondents.

Before: GINSBURG, Chief Judge, and ROGERS and GRIFFITH, Circuit Judges.

Opinion for the Court filed by Circuit Judge ROGERS.

ROGERS, Circuit Judge.

These are consolidated petitions for review of two final rules promulgated by the Environmental Protection Agency in 2004 and 2006 under Section 112 of the Clean Air Act ("CAA"), 42 U.S.C. § 7412, to regulate hazardous air pollution from processing plywood and composite wood products ("PCWP").1 PCWP sources use heat and pressure to bond wood material, usually with resin, to form a panel or other engineering product. The outputs from PCWP processes include veneer, particleboard, oriented strandboard, hardboard, fiberboard, medium density fiberboard, as well as other products. As a result of the PCWP process, at least six primary hazardous air pollutants ("HAPs") are released into the air. HAPs are defined in the CAA as "pollutants which present, or may present . . . a threat of adverse human health effects . . . or adverse environmental effects whether through ambient concentrations, bioaccumulation, deposition, or otherwise." 42 U.S.C. § 7412(b)(2).

The Environmental Petitioners — the Natural Resources Defense Counsel, the Sierra Club, and the Environmental Integrity Project (together, "NRDC") — contend that EPA has failed to adhere to the statutory requirements to set emission standards for listed HAPs. They also contend that EPA exceeded its authority in creating a risk-based subcategory and in extending the deadline for complying with emission standards set by the 2004 Rule. Pursuant to EPA's request following this court's decision in Sierra Club v. EPA, 479 F.3d 875 (D.C.Cir.2007), we vacate and remand the 2004 Rule insofar as it fails to set emission standards for listed HAPs; neither the NRDC nor industry intervenors object, although each seeks an additional remedy, which we will leave for EPA's consideration. We hold that EPA lacked authority to create a low-risk subcategory and to extend the compliance deadline and therefore grant NRDC's petitions on those issues and vacate those provisions of the rules.

Louisiana-Pacific Corporation also petitions for review of the two rules. It contends that EPA was arbitrary and capricious in declining to create a separate subcategory for wet/wet hardboard presses and to establish a variance procedure. Finding no arbitrary or capricious action by EPA, we deny the petition.

I.

The relevant statutory provisions and the regulatory background of the 2004 and 2006 Rules are as follows.

A.

Until 1990, Section 112 of the CAA directed EPA to use health-risk-based regulations for air pollution. Thus, Congress directed EPA to establish risk-based air pollution standards that provided an "ample margin of safety to protect public health." 42 U.S.C. § 7412(b)(1)(B) (1990). In 1990, Congress determined that the risk-based approach had "worked poorly." National Lime Ass'n v. EPA, 233 F.3d 625, 633-34 (D.C.Cir.2000). Over the course of twenty years, EPA had promulgated only seven standards. H.R. REP. No. 101-490, pt. 1, at 151, reprinted in 2 A LEGISLATIVE HISTORY OF THE CLEAN AIR ACT AMENDMENTS OF 1990, at 3175 (1993) ("LEGISLATIVE HISTORY"). Concerned, then, that EPA had failed to adequately regulate toxic emissions, see S. REP. No. 101-228 (1990), reprinted in 5 LEGISLATIVE HISTORY, supra, at 8338, U.S.Code Cong. & Admin.News 1990, p. 3385. Congress adopted the current version of Section 112 to require technology based standards in place of the previous risk-based standards. See Cement Kiln Recycling Coalition v. EPA, 255 F.3d 855, 857 (D.C.Cir.2001). Additionally, EPA no longer had discretion to set emission standards for individual sources, nor to set whatever standards EPA deemed adequate.

Section 112, as amended, provides that EPA "shall promulgate regulations establishing emission standards for each category or subcategory of major sources . . . [and that these] standards . . . shall require the maximum degree of reduction in emissions." 42 U.S.C. § 7412(d)(1)-(2) (emphasis added). Section 112 thus mandates that EPA list and establish emission standards for each category and subcategory of "major sources" that emit one or more of over 100 HAPs. Id. § 7412(b), (c), (e). The standards "shall require the maximum degree of reduction in emissions" of HAPs that EPA, "taking into consideration the cost of achieving such emission reduction, and any non-air quality health and environmental impacts and energy requirements, determines is achievable for new or existing sources." Id. § 7412(d)(1), (2). The standards for "major sources" of HAPs must reflect the "maximum reduction in emissions which can be achieved by application of [the] best available control technology." S. REP. No. 101-228, at 133, reprinted in 5 LEGISLATIVE HISTORY, supra, at 8473, U.S.Code Cong & Admin.News 1990, pp. 3385, 3518.

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