History
  • No items yet
midpage
64 F.4th 1368
11th Cir.
2023
Read the full case

Background:

  • Congress enacted the AIM Act directing EPA to phase down HFCs and to allocate tradable annual "allowances"; EPA promulgated a Framework Rule (methodology) and an Allocation Notice listing firm-by-firm 2022 consumptions.
  • EPA’s methodology computed each firm’s share by using each firm’s three highest years (2011–2019) averaged in the numerator and the sum of all firms’ three-year averages in a shared nationwide denominator.
  • RMS of Georgia (Choice Refrigerants) challenged its 2022 consumption allocation, alleging EPA improperly credited historical HFC usage to two other companies (Company A as shipper vs. importer; Company B via alleged patent infringement), reducing RMS’s three-year average.
  • RMS filed its petition in the regional circuit; key procedural question was whether the challenged action (the Allocation Notice) was "nationally applicable" under 42 U.S.C. § 7607(b)(1) (exclusive D.C. Circuit review) or "locally or regionally applicable" (regional court).
  • The Allocation Notice consisted principally of nationwide, firm-specific tables (40 firms) and did not geographically limit use of allowances; permits are transferable and not site-specific.
  • The court concluded the Allocation Notice was a single EPA action allocating allowances nationwide (changes to one firm’s numbers affect every firm via the shared denominator) and therefore transferred the petition to the D.C. Circuit.

Issues:

Issue Plaintiff's Argument Defendant's Argument Held
Whether the Allocation Notice is a "nationally applicable" action under § 7607(b)(1) RMS: Allocation is effectively local because it reflects RMS’s facility-specific historical usage and its dispute over credits pertains only to RMS EPA/Respondent: Allocation operates nationwide; tables assign firm-specific allowances from a single national pool with a shared denominator; no geographic limit Allocation Notice is nationally applicable; review lies only in D.C. Circuit (transfer ordered)
Whether RMS’s challenge is confined to a separable line-item (a local action) RMS: It is challenging only its line-item in table 3, so this is a local, firm-specific action EPA: The allocation is one integrated nationwide action—any change to one firm’s average recalculates every firm’s allocation RMS cannot isolate its line-item; the allocation is inseparable and nationwide

Key Cases Cited

  • ATK Launch Sys., Inc. v. EPA, 651 F.3d 1194 (10th Cir. 2011) (analysis should focus on the nature of the regulation, not the particular challenge)
  • Am. Road & Transp. Builders Ass'n v. EPA, 705 F.3d 453 (D.C. Cir. 2013) (determine scope from the face of the rulemaking rather than practical effects)
  • S. Ill. Power Coop. v. EPA, 863 F.3d 666 (7th Cir. 2017) (venue depends on the nature of the agency action)
  • Madison Gas & Elec. Co. v. EPA, 4 F.3d 529 (7th Cir. 1993) (treated allowance allocations as locally reviewable when based on local factors; later circuit decisions have rejected its petition-centric approach)
Read the full case

Case Details

Case Name: RMS of Georgia, LLC v. U.S. Environmental Protection Agency
Court Name: Court of Appeals for the Eleventh Circuit
Date Published: Apr 13, 2023
Citations: 64 F.4th 1368; 21-14213
Docket Number: 21-14213
Court Abbreviation: 11th Cir.
Log In
    RMS of Georgia, LLC v. U.S. Environmental Protection Agency, 64 F.4th 1368