State of Texas v. EPA

Court of Appeals for the Fifth Circuit·Decided September 22, 2025·No. 16-60670·Published

Opinion

Case: 16-60670 Document: 262-1 Page: 1 Date Filed: 09/22/2025

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

____________ FILED September 22, 2025 No. 16-60670 Lyle W. Cayce ____________ Clerk

State of Texas; Texas Commission on Environmental Quality,

Petitioners,

versus

United States Environmental Protection Agency; Lee Zeldin, in his official capacity as Administrator of the United States Environmental Protection Agency,

Respondents. ______________________________

Petition for Review of a Final Rule of the Environmental Protection Agency 81 Fed. Reg. 53,284 ______________________________

Before Smith, Higginson, and Douglas, Circuit Judges. Stephen A. Higginson, Circuit Judge: “It is a fair and reasonable demand on the part of a sovereign that the air over its territory should not be polluted on a great scale.” Georgia v. Tenn. Copper Co., 206 U.S. 230, 238 (1907). But every so often the winds fail to heed those demands, carrying pollutants emitted in one state into the air over others. Case: 16-60670 Document: 262-1 Page: 2 Date Filed: 09/22/2025

No. 16-60670

The people of the upwind and downwind states, through their representatives in Congress, negotiated a legislative solution to this problem in the Clean Air Act, 42 U.S.C. §§ 7401–7671q (CAA). The Good Neighbor Provision of the Act, id. § 7410(a)(2)(D)(i), requires upwind states to manage their pollution so that they do not prevent their downwind neighbors from attaining the federal air quality standards. States must account for Good Neighbor requirements in their plans—called SIPs, for State Implementation Plans—implementing the federal standards. The Environmental Protection Agency (EPA) is required to review these SIPs to ensure that upwind states comply with their Good Neighbor obligations. At issue in this case is EPA’s statutorily required review of a Good Neighbor SIP submitted by Texas in 2012. In the SIP, Texas said that its contributions to ozone pollution in other states were not significant enough to require any mitigating action at all. In support, Texas submitted (1) two charts showing declining ozone statistics in nine metro areas, (2) one paragraph summarizing general wind patterns in Dallas and Houston, and (3) a map of 2010 ozone levels at monitors in Texas and adjacent states. Texas attached (4) several pages of ozone measurement data without any analysis. After notice and comment, EPA reviewed this submission and rejected it on the grounds that the SIP did not adequately address the full set of statutory requirements and that the SIP’s conclusions were unsupported by sufficient analysis in any case. As additional support, EPA noted that data developed in a concurrent rulemaking showed that emissions in Texas did in fact contribute to violation of the federal ozone standards in other states. Texas now petitions this court for review of EPA’s disapproval. Texas says that it was entitled to additional process and that EPA’s reasoning was arbitrary. Because EPA’s procedure complied with the statutory requirements and its reasoning was sound, we deny the petition.

2 Case: 16-60670 Document: 262-1 Page: 3 Date Filed: 09/22/2025

I. The CAA requires EPA to regulate certain air pollutants, emissions of which “cause or contribute to air pollution which may reasonably be anticipated to endanger public health or welfare.” Id. §§ 7408(a)(1), 7409. These are called “criteria pollutants.” One is ozone. See 40 C.F.R. pt. 50. The CAA further requires EPA to set National Ambient Air Quality Standards (NAAQS) to limit concentrations of criteria pollutants to levels “requisite to protect the public health.” 42 U.S.C. § 7409(b)(1). EPA is required to revise the NAAQS periodically. Id. § 7409(d). Within three years of a NAAQS promulgation or revision, states submit SIPs to EPA for achieving the new NAAQS. Id. § 7410(a). SIPs must comply with the Good Neighbor Provision of the CAA, see id. § 7410(k)(3), which requires that a plan “contain adequate provisions” “prohibiting” emissions of “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, id. § 7410(a)(2)(D). To review SIPs, EPA promulgates “minimum criteria” “limited” to ensuring that a SIP submission contains “the information necessary to enable the Administrator to determine whether the plan submission complies with the provisions of this chapter.” Id. § 7410(k)(1)(A). When it receives a SIP, EPA first conducts a technical review within 60 days to determine whether the submission contains this information. Id. § 7410(k)(1)(B). EPA then has 12 months to conduct a substantive review to determine whether the SIP meets the requirements of the CAA, and to approve or disapprove the SIP accordingly. Id. § 7410(k)(2)–(3). If EPA disapproves a SIP (or finds a submission technically incomplete) it must promulgate a Federal Implementation Plan (FIP) within two years. Id. § 7410(c)(1).

3 Case: 16-60670 Document: 262-1 Page: 4 Date Filed: 09/22/2025

EPA is required to make sure that states meet their Good Neighbor obligations as part of its substantive review of SIP submissions. See id. § 7410(k)(3). That inquiry is scientifically complex. Because the wind can carry air pollutants from one state to another, with ozone forming from chemical reactions along the way, nonozone pollution in one state may interfere with attainment of the ozone NAAQS in another. See EPA v. EME Homer City Generation, L.P., 572 U.S. 489, 497 (2014). EPA has historically ensured that SIPs account for this problem by building models to apportion the transported emissions responsible for downwind ozone problems among upwind states. The first Good Neighbor rulemaking relevant here is EPA’s 2005 Clean Air Interstate Rule, 70 Fed. Reg. 25,162 (May 12, 2005) (CAIR). CAIR established Good Neighbor obligations for the 1997 fine particulate matter (PM2.5) and ozone NAAQS. EPA determined that Texas contributed significantly to downwind nonattainment of only the PM2.5 standard. See id. at 25,167. On review, the D.C. Circuit found “fatal flaws in the rule,” ultimately remanding the rule to EPA without vacating it. North Carolina v. EPA, 531 F.3d 896, 901 (D.C. Cir.) (per curiam), modified on reh’g, 550 F.3d 1176 (D.C. Cir. 2008) (per curiam). EPA accordingly replaced CAIR in 2011 with the Cross-State Air Pollution Rule, 76 Fed. Reg. 48,208 (Aug. 8, 2011) (CSAPR). CSAPR disapproved SIPs that had relied on CAIR and promulgated FIPs based on the 1997 ozone, 1997 PM2.5, and 2006 PM2.5 NAAQS. When CSAPR was challenged at the Supreme Court in EME Homer, the Court upheld EPA’s modeling approach, 572 U.S. at 524, and on remand the D.C. Circuit again remanded to EPA without vacating, EME Homer City Generation, L.P. v. EPA, 795 F.3d 118, 138 (D.C. Cir. 2015).

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EPA revised the ozone NAAQS in 2008. National Ambient Air Quality Standards for Ozone, 73 Fed. Reg. 16,436 (Mar. 27, 2008). Texas submitted a Good Neighbor SIP for the revised NAAQS on December 13, 2012.

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