EPA’s Clean Air Act (“CAA”) rulemakings directed at power plants are often the target of regulatory challenges in federal court.  EPA’s latest rulemaking regulating Hazardous Air Pollutant (“HAP”) emissions from coal- and oil-fired electric utility steam generating units (“EGUs”) is unlikely to be an exception. 88 Fed. Reg. 13956 (Mar. 6, 2023).  In the now final rule, EPA has revoked an earlier action taken in 2020, in which the agency declined to regulate HAP emissions from EGUs after comparing the costs of compliance relative to the benefits of regulation, relying at the time on the Supreme Court’s decision in Michigan v. EPA, 576 U.S. 743 (2015).  Id. at 13957; see also 85 Fed. Reg. 31286. Now, just three years later under a new administration, the agency has backtracked, finding that it is appropriate and necessary to regulate HAP emissions from EGUs based on new data regarding the costs and benefits of regulating HAP emissions.  EPA claims that its latest decision is actually more in line with the statutory factors identified in Michigan for determining whether it is “appropriate and necessary” to regulate HAP emissions from EGUs under the CAA. Read More »

Share | Email| Comments|  Topics: Air, Clean Air Act, EPA, HAPs, Hazardous Air Pollutants, Rulemaking

This post was authored by Trang Do, a summer associate.

In West Virginia v. EPA, the Supreme Court limited the authority of the United States Environmental Protection Agency (EPA) to reduce greenhouse gases by setting emission guidelines for existing power plants, characterizing the energy generation shifting strategy proposed in the Clean Power Plan (CPP) as an overreach of the agency’s power. In a 6-3 decision, with the three liberal justices dissenting, the Court held that the authority to adopt a regulatory program that would significantly alter how the nation’s energy is generated fell under an “extraordinary case” of the major questions doctrine. West Virginia v. EPA 597 U. S. ____ (2022). The major questions doctrine requires that a federal agency have “clear congressional authorization” when acting on issues of great “economic and political significance.” Id. (citing Utility Air Regulatory Group v. EPA, 573 U. S. 302, 324). Read More »

Share | Email| Comments|  Topics: Clean Air Act, Climate Change, Decisions of Note, Electric, Emissions, Energy, EPA, Greenhouse Gas, Legislation, Refinery, Rulemaking, Supreme Court, West Virginia

The Freedom of Information Act (“FOIA”) requires federal agencies to produce certain documents upon request to the general public unless one of nine exemptions applies. FOIA’s fifth exemption “protects from disclosure documents generated during an agency’s deliberations about a policy, as opposed to documents that embody or explain a policy that the agency adopts.” On March 4, 2021, in United States Fish and Wildlife Service et al. v. Sierra Club, Inc., No. 19-547, the Supreme Court of the United States held that draft biological opinions prepared by the U.S. Fish and Wildlife service (“FWS”) and National Marine Fisheries Service (“NMFS”) (collectively, the “Services”) fall within this deliberative process privilege exemption. Read More »

Share | Email| Comments|  Topics: Endangered Species Act, FOIA, Rulemaking

On February 22, 2021, the D.C. Circuit granted the Environmental Protection Agency’s (“EPA”) motion to stay the vacatur of the Trump administration’s Clean Power Plan Repeal Rule until EPA conducts further rulemaking on the issue in the case of American Lung Association v. EPA, No. 19-1140 (D.C. Cir., Feb. 22, 2021). This decision marks the latest action in the ongoing efforts by EPA and states to regulate greenhouse gas emissions; particularly in terms of carbon emissions from currently existing power plants. For additional background, please see previous MGKF blog on this topic here.  Read More »

Share | Email| Comments|  Topics: Air, Case Update, Clean Air Act, Climate Change, D.C. Circuit, Greenhouse Gas, Rulemaking

Last week the U.S. Fish and Wildlife Service ("FWS") and the National Marine Fisheries Service ("NMFS") (collectively, the "Services") finalized a rule defining the term "habitat" as used for designating "critical habitat" under the Endangered Species Act (the "ESA"). The ESA requires the Services to designate critical habitat for threatened and endangered species to conserve the ecosystems relied upon by these species. By definition, “critical habitat” includes both areas occupied and unoccupied by the species that are “essential to the conservation of the species.” Read More »

Share | Email| Comments|  Topics: Administrative Procedures Act, Case Update, Endangered Species Act, Fish and Wildlife Service, Rulemaking

On January 19, 2021, the U.S. Court of Appeals for the D.C. Circuit vacated and remanded the Trump administration’s Affordable Clean Energy Rule (“ACE Rule”), which itself was a rollback of the Obama administration’s Clean Power Plan (“CPP”); once again reshaping the heart of American climate policy. American Lung Association v. EPA, No. 19-1140 (D.C. Cir., Jan. 19, 2021). The CPP and ACE Rule both sought to regulate greenhouse gas (“GHG”) emissions from existing stationary sources but used highly divergent interpretations of the Clean Air Act (“CAA”) to do so. In making its ruling, the Court called the Trump Environmental Protection Agency’s interpretation of the CAA a “fundamental misconstruction” of the statute and provided a lengthy analysis of its findings. Id. at 16. The Court ultimately held that because the Environmental Protection Agency (“EPA”) based the ACE Rule “on an erroneous view of the law” (as opposed to having based the ACE Rule on a valid exercise of agency discretion), the court had no choice but to vacate the rule and remand it to the EPA for additional interpretation. Id. at 46. Because President Biden has described climate change as the “existential threat of our time,” the Biden EPA will likely use this opportunity to draft new rulemaking regarding the regulation of GHG emissions. Read More »

Share | Email| Comments|  Topics: Air, Clean Air Act, Climate Change, D.C. Circuit, Greenhouse Gas, Rulemaking

Section 612 of the Clean Air Act (“CAA”) requires that manufacturers replace substances that have been determined to deplete the stratospheric ozone layer with alternatives that do not have the same effect. Section 612 further directs EPA to develop a list of safe substitutes and a list of prohibited substitutes. Hydrofluorocarbons (“HFCs”) were on the safe substitutes list until 2015, when EPA moved many of them to the prohibited substitutes list.  EPA asserted that this change required manufacturers who had been using HFCs to replace them with other substances from the safe list.  The 2015 Rule was challenged, and on August 8, 2017, in Mexichem Fluor Inc. et al., v. U.S. Environmental Protection Agency, No. 15-1328, the D.C. Circuit vacated the 2015 Rule to the extent that it required manufacturers to cease using HFCs as a replacement for ozone-depleting substances.  Read More »

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UPDATE: 

This past Thursday, the U.S. Court of Appeals for the District of Columbia Circuit delayed for two weeks its mandate which required the U.S. Environmental Protection Agency to lift its 90-day stay on portions of its methane rule for new oil and gas infrastructure.  The Court issued the mandate after determining that the EPA lacked authority under the Clean Air Act to issue the stay on the Obama-era regulations as further discussed in the original blog post below.  The order delaying the mandate indicates that the Court is providing EPA with time to “determine whether to seek panel rehearing, rehearing en banc, or pursue other relief” with respect to the mandate.  Thus, the methane rule is again on hold for the next several weeks while EPA decides whether and how to challenge the Court’s lifting of the 90-day stay.     

ORIGINAL POST:

Last week, the U.S. Court of Appeals for the District of Columbia Circuit struck down a 90-day stay imposed by the U.S. Environmental Protection Agency on portions of its methane rule for new oil and gas infrastructure, finding the agency lacked authority under the Clean Air Act to issue the stay. Clean Air Council v. Pruitt, No. 17-1145 (D.C. Cir. July 3, 2017).  The methane rule, which establishes “New Source Performance Standards” for fugitive emissions of methane and other pollutants by the oil and natural gas industries, was finalized in June 2016 by the Obama administration.  Notably, the Court’s 2-1 decision puts back into effect the June 3, 2017 deadline for regulated entities to conduct an initial monitoring survey to identify leaks from equipment. Read More »

Share | Email| Comments|  Topics: Air, Clean Air Act, D.C. Circuit, Emissions, EPA, Procedure, Rulemaking

This Post was authored by Christopher Rodrigues, a MGKF summer associate.

In a unanimous decision penned by Circuit Judge Kavanaugh, the United States Court of Appeals for the D.C. Circuit affirmed a lower court decision holding that the EPA properly withheld information from its response to several environmental groups' Freedom of Information Act (“FOIA”) requests. Envtl. Integrity Project v. EPA, No. 16-5109, 2017 U.S. App. LEXIS 9332, at *4 (D.C. Cir. May 30, 2017).  The court held that Section 308 of the Clean Water Act (“CWA”) does not supersede Exemption 4 of FOIA. Id.  In relevant part, Section 308 of the CWA states that effluent data shall be made available to the public, unless releasing the information would divulge trade secrets.  33 U.S.C. § 1318(b) (1987).  Exemption 4 under FOIA, however, allows the government to withhold information that would reveal a company’s trade secrets or commercial or financial information.  5 U.S.C. § 552(b)(4) (2016).  Thus, the inconsistent exemptions have created tension in the lower courts that the D.C. Circuit has attempted to alleviate for future decisions in Environmental Integrity. Read More »

Share | Email| Comments|  Topics: Administrative Procedures Act, Clean Water Act, D.C. Circuit, Effluents, FOIA, Rulemaking

Last week, the United States District Court for the Western District of Washington, in Trident Seafoods Corp. v. Bryson, No. C12-134 MJP (Nov. 30, 2012), sent litigants a reminder about the necessity of proper standing in rulemaking challenges.  Indeed, standing is often one of the most difficult aspects of these cases, and often result in early case dismissal, as it did in Trident. Read More »

Share | Email| Comments|  Topics: Administrative Procedures Act, Federal Procedure, Procedure, Rulemaking, Standing