Natural Resources Defense Council v. Environmental Protection Agency

489 F.3d 1364, 376 U.S. App. D.C. 528, 37 Envtl. L. Rep. (Envtl. Law Inst.) 20146, 64 ERC (BNA) 1801, 2007 U.S. App. LEXIS 14368
Court of Appeals for the D.C. Circuit·Decided June 19, 2007·No. Nos. 04-1323, 04-1325, 04-1328, 06-1140·Published·Cited by 47 cases

Opinion

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 [532]*532set 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, 283 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)(l)-(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. Congress also specified the degree of control, namely, the maximum achievable control technology (“MACT”), which sets a floor for MACT emissions — a minimum degree of emissions reductions that HAP sources must achieve under the technology-based standards. 42 U.S.C. § 7412(d)(3). For new sources, the MACT floor “shall not be less [533]*533stringent than the emission control that is achieved in practice by the best-controlled similar source, as determined by the [EPA],” Id. § 7412(d)(3); for existing sources, the MACT floor shall be no less stringent than “the average emission limitation achieved by the best performing 12 percent of the existing sources (for which the Administrator has emissions information).” Id. Congress also set the compliance date:

After the effective date of any emissions standard, limitation or regulation ... the Administrator shall establish a compliance date or dates for each category or subcategory of existing sources, which shall provide for compliance as expeditiously as practicable, but in no event later than 3 years after the effective date of such standard ....

42 U.S.C. § 7412(i)(3)(A) (emphasis added).

Congress further envisioned that there would be circumstances where a “source category” could appropriately be exempted (“delisted”) from MACT emission standards. Subsection 112(c)(9)(B)(i) provides that:

(B) The Administrator may delete any source category from the list under this subsection, on petition of any person or on the Administrator’s own motion, whenever the Administrator makes the following determination or determinations, as applicable:

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Natural Resources Defense Council v. Environmental Protection Agency, 489 F.3d 1364, 376 U.S. App. D.C. 528, 37 Envtl. L. Rep. (Envtl. Law Inst.) 20146, 64 ERC (BNA) 1801, 2007 U.S. App. LEXIS 14368 (D.C. Cir. 2007).

489 F.3d 1364 (Natural Resources Defense Council v. Environmental Protection Agency) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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