West Virginia v. EPA

597 U.S. 697
CourtSupreme Court of the United States
DecidedJune 30, 2022
Docket20-1530
StatusPublished
Cited by94 cases

This text of 597 U.S. 697 (West Virginia v. EPA) 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.

Bluebook
West Virginia v. EPA, 597 U.S. 697 (2022).

Opinion

(Slip Opinion) OCTOBER TERM, 2021 1

Syllabus

NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.

SUPREME COURT OF THE UNITED STATES

WEST VIRGINIA ET AL. v. ENVIRONMENTAL PROTECTION AGENCY ET AL.

CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT

No. 20–1530. Argued February 28, 2022—Decided June 30, 2022* In 2015, the Environmental Protection Agency (EPA) promulgated the Clean Power Plan rule, which addressed carbon dioxide emissions from existing coal- and natural-gas-fired power plants. For authority, the Agency cited Section 111 of the Clean Air Act, which, although known as the New Source Performance Standards program, also au- thorizes regulation of certain pollutants from existing sources under Section 111(d). 42 U. S. C. §7411(d). Prior to the Clean Power Plan, EPA had used Section 111(d) only a handful of times since its enact- ment in 1970. Under that provision, although the States set the actual enforceable rules governing existing sources (such as power plants), EPA determines the emissions limit with which they will have to com- ply. The Agency derives that limit by determining the “best system of emission reduction . . . that has been adequately demonstrated,” or the BSER, for the kind of existing source at issue. §7411(a)(1). The limit then reflects the amount of pollution reduction “achievable through the application of” that system. Ibid. In the Clean Power Plan, EPA determined that the BSER for exist- ing coal and natural gas plants included three types of measures, which the Agency called “building blocks.” 80 Fed. Reg. 64667. The first building block was “heat rate improvements” at coal-fired plants—essentially practices such plants could undertake to burn coal —————— * Together with No. 20–1531, North American Coal Corp. v. Environ- mental Protection Agency et al., No. 20–1778, Westmoreland Mining Holdings LLC v. Environmental Protection Agency et al., and No. 20– 1780, North Dakota v. Environmental Protection Agency et al., also on certiorari to the same court. 2 WEST VIRGINIA v. EPA

more cleanly. Id., at 64727. This sort of source-specific, efficiency- improving measure was similar in kind to those that EPA had previ- ously identified as the BSER in other Section 111 rules. Building blocks two and three were quite different, as both involved what EPA called “generation shifting” at the grid level—i.e., a shift in electricity production from higher-emitting to lower-emitting produc- ers. Building block two was a shift in generation from existing coal- fired power plants, which would make less power, to natural-gas-fired plants, which would make more. Ibid. This would reduce carbon di- oxide emissions because natural gas plants produce less carbon dioxide per unit of electricity generated than coal plants. Building block three worked like building block two, except that the shift was from both coal and gas plants to renewables, mostly wind and solar. Id., at 64729, 64748. The Agency explained that, to implement the needed shift in generation to cleaner sources, an operator could reduce the regulated plant’s own production of electricity, build or invest in a new or exist- ing natural gas plant, wind farm, or solar installation, or purchase emission allowances or credits as part of a cap-and-trade regime. Id., at 64731–64732. Taking any of these steps would implement a sector- wide shift in electricity production from coal to natural gas and renew- ables. Id., at 64731. Having decided that the BSER was one that would reduce carbon pollution mostly by moving production to cleaner sources, EPA then set about determining “the degree of emission limitation achievable through the application” of that system. §7411(a)(1). The Agency rec- ognized that, in translating the BSER into an operational emissions limit, it could choose whether to require anything from a little genera- tion shifting to a great deal. It settled on what it regarded as a “rea- sonable” amount of shift, which it based on modeling how much more electricity both natural gas and renewable sources could supply with- out causing undue cost increases or reducing the overall power supply. Id., at 64797–64811. The Agency ultimately projected, for instance, that it would be feasible to have coal provide 27% of national electricity generation by 2030, down from 38% in 2014. From these projected changes, EPA determined the applicable emissions performance rates, which were so strict that no existing coal plant would have been able to achieve them without engaging in one of the three means of gener- ation shifting. The Government projected that the rule would impose billions in compliance costs, raise retail electricity prices, require the retirement of dozens of coal plants, and eliminate tens of thousands of jobs. This Court stayed the Clean Power Plan in 2016, preventing the rule from taking effect. It was later repealed after a change in Presidential administrations. Specifically, in 2019, EPA found that the Clean Cite as: 597 U. S. ____ (2022) 3

Power Plan had exceeded the Agency’s statutory authority under Sec- tion 111(d), which it interpreted to “limit[ ] the BSER to those systems that can be put into operation at a building, structure, facility, or in- stallation.” 84 Fed. Reg. 32524. EPA explained that the Clean Power Plan, rather than setting the standard “based on the application of equipment and practices at the level of an individual facility,” had in- stead based it on “a shift in the energy generation mix at the grid level,” id., at 32523. The Agency determined that the interpretive question raised by the Clean Power Plan fell under the major questions doctrine. Under that doctrine, it determined, a clear statement is nec- essary for a court to conclude that Congress intended to delegate au- thority “of this breadth to regulate a fundamental sector of the econ- omy.” Id., at 32529. It found none. The Agency replaced the Clean Power Plan by promulgating a different Section 111(d) regulation, known as the Affordable Clean Energy (ACE) rule. Id., at 32532. In that rule, EPA determined that the BSER would be akin to building block one of the Clean Power Plan: a combination of equipment up- grades and operating practices that would improve facilities’ heat rates. Id., at 32522, 32537. A number of States and private parties filed petitions for review in the D. C. Circuit, challenging EPA’s repeal of the Clean Power Plan and its enactment of the replacement ACE rule. The Court of Appeals consolidated the cases and held that EPA’s “repeal of the Clean Power Plan rested critically on a mistaken reading of the Clean Air Act”— namely, that generation shifting cannot be a “system of emission re- duction” under Section 111. 985 F. 3d 914, 995. The court vacated the Agency’s repeal of the Clean Power Plan and remanded to the Agency for further consideration. It also vacated and remanded the ACE rule for the same reason. The court’s decision was followed by another change in Presidential administrations, and EPA moved the court to partially stay its mandate as to the Clean Power Plan while the Agency considered whether to promulgate a new Section 111(d) rule. No party opposed the motion, and the Court of Appeals agreed to stay its vaca- tur of the Agency’s repeal of the Clean Power Plan. Held: 1.

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Cite This Page — Counsel Stack

Bluebook (online)
597 U.S. 697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-virginia-v-epa-scotus-2022.