American Trucking Associations, Inc. v. United States Environmental Protection AgencyAmerican Trucking Associations, Inc. v. United States Environmental Protection Agency
Lead Opinion
Opinion for the Court filed PER CURIAM.
Sеparate opinion dissenting from Part I filed by Circuit Judge TATEL.
Introduction
The Clean Air Act requires EPA to promulgate and periodically revise national ambient air quality standards (“NAAQS”) for each air pollutant identified by the agency as meeting certain statutory criteria. See Clean Air Act §§ 108-09,
In July 1997 EPA issued final rules revising the primary and secondary NAAQS for particulate matter (“PM”) and ozone. See National Ambient Air Quality Standards for Particulate Matter, 62 Fed. Reg. 38,652 (1997) (“PM Final Rule”); National Ambient Air Quality Standards for Ozone, 62 Fed.Reg. 38,856 (1997) (“Ozone Final Rule”). Numerous petitions for review have been filed for each rule.
In Part I we find that the construction of the Clean Air Act on which EPA relied in promulgating the NAAQS at issue here effects an unconstitutional delegation of legislative power. See
In Part II we reject the following claims: that § 109(d) of the Act allows EPA to consider costs; that EPA should have considered the environmental damage likely to result from the NAAQS’ financial impact on the Abandoned Mine Reclamation Fund; that the NAAQS revisions violated the National Environmental Policy Act (“NEPA”), Unfunded Mandates Reform Act (“UMRA”), and Regulatory Flexibility Act (“RFA”).
In Part III we decide two ozone-specific statutory issues, holding that the 1990 revisions to the Clean Air Act limit EPA’s ability to enforce new ozone NAAQS and that EPA cannot ignore the possible health benefits of ozone.
Finally, in Part IV we resolve various challenges to the PM NAAQS. We agree with petitioners that EPA’s choice of PMJ0 as the indicator for coarse particulate mat
The remaining issues cannot be resolved until such time as EPA may develop a constitutional construction of the act (and, if appropriate, modify the disputed NAAQS in accordance with that construction).
I. Delegation
Certain “Small Business Petitioners” argue in each case that EPA has construed §§ 108 & 109 of the Clean Air Act so loosely as to render them unconstitutional delegations of legislative power. We agree. Although the factors EPA uses in determining the degree of public health concern associated with different levels of ozone and PM are reasonable, EPA appears to have articulated no “intelligible principle” to channel its application of these factors; nor is one apparent from the statute. The nondelegation doctrine requires such a principle. See J.W. Hampton, Jr. & Co. v. United States,
EPA regards ozone definitely, and PM likely, as non-threshold pollutants, i.e., ones that have some possibility of some adverse health impact (however slight) at any exposure level above zero. See Ozone Final Rule, 62 Fed.Reg. at 38,863/3 (“Nor does it seem possible, in the Administrator’s judgment, to identify [an ozone concentration] level at which it can be concluded with confidence that no 'adverse’ effects are likely to occur.”); National Ambient Air Quality Standards for Ozone and Particulate Matter, 61 Fed.Reg. 65,637, 65,651/3 (1996) (proposed rule) (“[T]he single most important factor influencing the uncertainty associated with the risk estimates is whether or not a threshold concentration exists below which PM-assoeiat-ed health risks are not likely to occur.”). For convenience, we refer to both as non-threshold pollutants; the indeterminacy of PM’s status does not affect EPA’s analysis, or ours.
Thus the only concentration for ozone and PM that is utterly risk-free, in the sense of direct health impacts, is zero. Section 109(b)(1) says that EPA must set each standard at the level “requisite to protect the public health” with an “adequate margin of safety.”
We begin with the criteria EPA has announced for assessing health effects in setting the NAAQS for non-threshold pollutants.
Read in light of these factors, EPA’s explanations for its decisions amount to assertions that a less stringent standard would allow the relevant pollutant to inflict a greater quantum of harm on public health, and that a more stringent standard would result in less harm. Such arguments only support the intuitive propоsition that more pollution will not benefit public health, not that keeping pollution at or below any particular level is “requisite” or not requisite to “protect the public health” with an “adequate margin of safety,” the formula set out by § 109(b)(1).
Consider EPA’s defense of the 0.08 ppm level of the ozone NAAQS. EPA explains that its choice is superior to retaining the existing level, 0.09 ppm, because more people are exposed to more serious effects at 0.09 than at 0.08. See Ozone Final Rule, 62 Fed.Reg. at 38,868/1. In defending the decision not to go down to 0.07, EPA never contradicts the intuitive proposition, confirmed by data in its Staff Paper, that reducing the standard to that level would bring about comparable changes. See EPA, “Review of National Ambient Air Quality Standards for Ozone: Assessment of Scientific and Technical Information: OAQPS Staff Paper,” at 156 (June 1996) (“Ozone Staff Paper”). Instead, it gives three other reasons. The principal substantive one is based on the criteria just discussed:
The most certain 03-related effects, while judged to be adverse, are transient and reversible (particularly at 03 exposures below 0.08 ppm), and the more serious effects with greater immediate and potential long-term impacts on health are less certain, both as to the percentage of individuals exposed to various concentrations who are likely to experience such effects and as to the long-term medical significance of these effects.
Ozone Final Rule, 62 Fed.Reg. at 38,868/2.
In other words, effects are less certain and less severe at lower levels of exposure. This seems to be nothing more than a statement that lower exposure levels are associated with lower risk to public health. The dissent argues that in setting the standard at 0.08, EPA relied on evidence that health effects occurring below that level are “transient and reversible,” Dissent at 1059, evidently assuming that those at higher levels are not. But the EPA language quoted above does not make the categorical distinction the dissent says it does, and it is far from apparent that any hеalth effects existing above the level are permanent or irreversible.
In addition to the assertion quoted above, EPA cited the consensus of the Clean Air Scientific Advisory Committee (“CASAC”) that the standard should not be set below 0.08. That body gave no specific reasons for its recommendations, so the appeal to its authority, also made in defense of other standards in the PM Final Rule, see PM Final Rule, 62 Fed.Reg. at 38,677/2 (daily fine PM standard); id. at 38,678/3 (annual coarse PM standard); id.'
Finally, EPA argued that a 0.07 standard would be “closer to peak background levels that infrequently occur in some areas due to nonanthropogenic sources of 03 precursors, and thus more likely to be inappropriately targeted in some areas on such sources.” Ozone Final Rule,
EPA frequently defends a decision not to set a standard at a lower level on the basis that there is greater uncertainty that health effects exist at lower levels than the level. of the standard. See Ozone Final Rule, 62 Fed.Reg. at 38,868/2; PM Final Rule, 62 Fed.Reg. at 38,676/3 (annual fine PM standard); id. at 38,677/2 (daily fine PM standard). And such an argument is likely implicit in its defense of the сoarse PM standards. See PM Final Rule, 62 Fed.Reg. at 38,678/3-79/1. The dissent’s defense of the fine particulate matter standard cites exactly such a justification. See Dissent at 1060 (“The Agency explained that ‘there is generally greatest statistical confidence in observed associations ... for levels at and above the mean concentration [in certain studies]’ ”) (emphasis added in dissent). But the increasing-uncertainty argument is helpful only if some principle reveals how much uncertainty is too much. None does.
The arguments EPA offers here show only that EPA is applying the stated factors and that larger public health harms (including increased probability of such harms) are, .as expected, associated with higher pollutant concentrations. The principle EPA invokes for each increment ‘in stringency (such as for adopting the annual coarse particulate matter standard that it chose here) — that it is “possible, but not certain” that health effects exist at that level, see PM Final Rule, 62 Fed.Reg. at 38,678/3
The latitude EPA claims here seems even broader than that OSHA asserted in International Union, UAW v. OSHA (“Lockout/Tagout I”),
In Lockout/Tagout I certain special conditions that have justified an exceptionally relaxed application of the nondelegation doctrine were absent, id. at 1317-18, and they are equally absent here. The standards in question affect the whole economy, requiring a “more precise” delegation than would otherwise be the case, see A.L.A. Schechter Poultry Corp. v. United States,
EPA cites prior decisions of this Court holding that when there is uncertainty about the health effects of concentrations of a particular pollutant within a particular range, EPA may use its discretion to make the “policy judgment” to set the standards at one point within the relevant range rather than another. NRDC v. EPA,
It was suggested at oral argument that EPA’s vision of its discretion in application of § 109(b)(1) is no broader than that asserted by OSHA after a remand by this court and upheld by this court in International Union, UAW v. OSHA (“Lockout/Tagout II”),
The dissent argues that a nondelegation challenge similar to this one was rejected in South Terminal Corp. v. EPA,
What sorts of “intelligible principles” might EPA adopt? Cost-benefit analysis, mentioned as a possibility in Lockout/Tagout I,
In theory, EPA could make its criterion the eradication of any hint of direct health risk. This approach is certainly determinate enough, but it appears that it would require the agency to set the permissible levels of both pollutants here at zero. No party here appears to advocate this solution, and EPA appears to show no inclination to adopt it.
EPA’s past behavior suggests some readiness to adopt standards that leave non-zero residual risk. For example, it has employed commonly used clinical criteria to determine what qualifies as an adverse health effect. See Ozone Staff Paper at 59-60 (using American Thoracic Society standards to determine threshold for “adverse health effect” from ozone). On the issue of likelihood, for some purposes it might be appropriate to use standards drawn from other areas of the law, such as the familiar “more probable than not” criterion.
We have discussed only the primary standards. Because the secondary standards are at least in part based on those, see Ozone Final Rule, 62 Fed.Reg. at 38,-875/3-76/1; PM Final Rule, 62 Fed.Reg. at 38,680/3, we also remand the cases to the agency with regard to the secondary standards as well, for further consideration in light of this opinion.
II. Other General Claims
The petitioners and amici contend that the EPA erroneously failed to consider a host of factors in revising the PM and ozone NAAQS. We reject each of these claims in turn.
A. Consideration of Cost in Revising Standards
As this court long ago made clear, in setting NAAQS under § 109(b) of the Clean Air Act, the EPA is not permitted to consider the cost of implementing those standards.' See Lead Industries,
First, the petitioners claim that in Lead Industries we held only that the Clean Air Act does not compel the EPA to consider-the costs of implementation in setting a NAAQS; on the contrary, we held that the Act precludes the EPA from doing so. See Lead Industries,
Second, that we decided Lead Industries prior to the Supreme Court’s decision in Chevron U.S.A. Inc. v. NRDC,
Third, though the petitioners are correct that in Lead Industries we interpreted § 109(b), which governs the setting of NAAQS, and not § 109(d), which governs the revising of NAAQS, we can discern no legally relevant difference in the two sections that would make Lead Industries inapplicable to § 109(d). Section 109(d)(1) directs the EPA to:
complete a thorough review of the criteria published under section 7408 of this title and the [NAAQS] promulgated under this section and [to] make such revisions in such criteria and standards and promulgate such new standards as may be appropriate in accordance with section 7408 of this title and subsection (b) of this section.
Fourth, the petitioners point to § 109(d)(2), which creates the CASAC and requires it to advise the EPA about, among other things, “any adverse public health, welfare, social, economic, or energy effects which may result from various strategies for attainment and maintenance of such [NAAQS].”
B. Environmental Consequences of Implementing NAAQS
The State Petitioners argue that the EPA erred in failing “to consider the environmental consequences resulting from the financial impact of the [revised PM2.5 and ozone NAAQS] on the federal Abandoned Mine Reclamation Fund Act.” This argument is squarely foreclosed by our decision in NRDC. In reviewing the EPA’s previous revision of the PM NAAQS, we rejected the argument that the EPA “erred in refusing to consider the health consequences of unemployment in determining the primary [NAAQS] for particulate matter” and held that “[i]t is only health effects relating to pollutants in the air that EPA may consider.”
C. The National Environmental Policy Act
In challenging both the revisеd PM2.5 and ozone NAAQS, the State Petitioners also argue that the EPA failed to comply with certain requirements of the NEPA. The petitioners recognize that the Congress has exempted all actions under the Clean Air Act, including the setting of NAAQS, from the central requirement of the NEPA, namely, the preparation of an Environmental Impact Statement. Compare
First, the State Petitioners contend that this court has “recognized that the ‘[CAA], properly construed, requires the functional equivalent of a NEPA impact statement,’ ”
Second, the State Petitioners contend that a provision of the NEPA “requires that EPA weigh ‘economic considerations.’ ” The section to which the petitioners refer reads as follows: “all agencies of the Federal Government shall ... identify and develop methods and procedures ... which will insure that presently unquantified environmental amenities and values may be given appropriate consideration in decisionmak-ing along with economic and technical considerations.”
The State Petitioners’ remaining arguments—that the EPA failed to comply with two other sections of the NEPA— fare little better.
If, on the other hand,
D. The Unfunded Mandates Reform Act
The State Petitioners in the particulate matter case and Congressman Bli-ley in the ozone case both contend that the EPA is required by the Unfunded Mandates Reform Act,
The State Petitioners, recognizing the limitations upon judicial review in § 1571, contend that the EPA’s failure to prepare a RIS can nonetheless render the NAAQS arbitrary and capricious, see
E. The Regulatory Flexibility Act
In both the ozone and particulate matter cases, the Small Business Petitioners argue that the EPA improperly certified that the revised NAAQS would not have a significant impact upon a substantial number of small entities. The Regulatory Flexibility Act,
A regulatory flexibility analysis is not required, however, if the agency “certifies that the rule will not, if promulgated, have
The EPA certified that its revised NAAQS will “not have a significant economic impact on smаll entities within the meaning of the RFA.” PM Final Rule, 62 Fed.Reg. at 38,702/2; Ozone Final Rule, 62 Fed.Reg. at 38,887/2-3. According to the EPA, the NAAQS themselves impose no regulations upon small entities. Instead, the several States regulate small entities through the state implementation plans (SIPs) that they are required by the Clean Air Act to develop. See
The EPA’s description of the relationship between NAAQS, SIPs, and small entities strikes us as incontestable. The States have broad discretion in determining the manner in which they will achieve compliance with the NAAQS. The EPA “is required to approve a state plan which provides for the timely attainment and subsequent maintenance of ambient air standards” and cannot reject a SIP based upon its view of “the wisdom of a State’s choices of emission limitations,” Train v. NRDC,
The responses of the Small Business Petitioners do not persuade us to reject the EPA’s argument or to deviate from our holdings in Mid-Tex and its progeny. First, the Small Business Petitioners contend that we must defer to the Small Business Administration’s interpretation of the Act, as expressed in a letter to the EPA from the SBA’s Chief Counsel for Advocacy, that the NAAQS do impose requirements upon small entities. The SBA, however, neither administers nor has any policymaking role under the RFA; at most its role is advisory. See, e.g.,
Third, the Small Business Petitioners attempt to distinguish the possible effects upon small entities in this case from the indirect effects that, as we found in Mid-Tex, are not within the contemplation of the RFA. But Mid-Tex is not so easily distinguished. The petitioners in that case argued that the RFA required the FERC to consider economic effects not only upon regulated industries but also upon the small entities that are their wholesale customers, even though the customers were not directly regulated by the FERC. We rejected that argument, finding a “clear indication” in the language of
Finally, the Small Business Petitioners suggest that the Congress in enacting the SBREFA overruled our prior interpretation of the RFA in Mid-Tex and its progeny. The SBREFA made a number of changes in the RFA, but it did not change anything in
III. Ozone
A. Subpart 2 and the Revised Ozone Standard
In 1990 the Congress substantially revised the Clean Air Act by, among other things, adding specific enforcement provisions for carbon monoxide, particulate matter, sulfur oxides, nitrogen dioxide, lead, and as pertinent here, ozone. Previously, the Act required that all areas of the country not attaining the primary ozone standard, no matter how far from attainment, come into compliance “as expeditiously as practicable but not later than
Subpart 2 requires the EPA to classify nonattainmеnt areas based upon their design value, which is a rough measure of whether an area complies with the 0.12 ppm, 1-hour primary ozone standard.
The State and Non-State Petitioners, along with Congressman Bliley appearing as an amicus curiae, argue that Subpart 2 precludes the EPA from revising the primary and secondary ozone NAAQS. We reject this argument (in Part III.A.1) insofar as it pertains to the EPA’s continued ability to promulgate a revised ozone NAAQS or to designate areas as not in attainment with a revised NAAQS. We agree (in Part III.A.2) with those petitioner's, however, insofar as they maintain, based upon the text and structure of Sub- • parts 1 and 2, that the EPA is precluded from enforcing a revised primary ozone NAAQS other than in accordance with the classifications, attainment dates, and control measures set out in Subpart 2. Further, we conclude (in Part III.A.3) that the EPA may not require a State to comply with a revised secondary ozone NAAQS in any area that has yet to attain the 0.12 ppm primary standard.
The 1990 amendments did not alter the section of the Clean Air Act that provides for setting and revising primary and secondary NAAQS. See
To the extent that the 1990 amendments shed any light upon this question, they suggest that the EPA retains its authority to revise the ozone NAAQS. For example, if the EPA relaxes a NAAQS after enactment of the 1990 amendments, then “the Administrator shall ... promulgate requirements applicable to all areas which have not attained that [relaxed] standard as of the date of such relaxation.... [which] shall provide for controls ... not less stringent than the controls applicable to areas designated nonattainment before such relaxation.”
The petitioners and amicus raise two other arguments to support their position that the EPA cannot alter the ozone NAAQS without the approval of the Congress. We reject both in short order.
First, the Non-State Petitioners contend' that Subpart 2 renders revision of the ozone NAAQS “inappropriate” within the meaning of § 109(d)(1), which provides the EPA shall “make such revisions in such ... standards ... as may be appropriate.”
Second, the State Petitioners and Congressman Bliley argue, based upon the classification table in § 181(a)(1),
Not only does the EPA, as we conclude above, retain authority to promulgate a
2. The EPA’s Power to Enforce the Revised Ozone Standard
That the enactment of Subpart 2 does not alter the EPA’s authority to revise the ozone NAAQS or to designate areas as nonattainment for ozone does not, however, compel the conclusion that Sub-part 2 has no effect upon the EPA’s authority to enforce a revised primary ozone NAAQS. (We consider the enforcement of secondary ozone NAAQS in Part III.A.3, below.) In fact, the text and structure of Subparts 1 and 2 suggest precisely the opposite conclusion. After designating an area as nonattainment under a NAAQS, the EPA normally looks to Subpart 1 for authority to “classify the area for the purрose of applying an attainment date.”
The EPA argues that Subpart 2 specifically provides classifications and attainment dates only for nonattainment designations under the 0.12 ppm ozone NAAQS. The State and Non-State Petitioners counter that Subpart 2 specifically provides classifications and dates for all areas designated nonattainment under any ozone NAAQS. We agree with the petitioners.
The pertinent provision of Subpart 2 reads as follows:
(a) Classification and attainment dates for 1989 nonattainment areas. — (1) Each area designated nonattainment for ozone pursuant tosection 7407(d) of this title shall be classified at the time of such designation, under table 1, by operation of law, as a Marginal Area, a Moderate Area, a Serious Area, a Severe Area, or an Extreme Area....
Id. § 7511(a)(1). As the petitioners note, § 107(d),
First, the reference to § 107(d) in § 181(a)(1) appears to have been purposeful and not the drafting error that the EPA’s interpretation impliеs. The Congress considered but did not adopt bills that clearly would have limited the reach of Subpart 2 to nonattainment designations
Second, our conclusion that the Congress intentionally referred to § 107(d) as a whole is supported by a comparison of Subparts 1 and 2. The Congress enacted Subpart 2 because of the failure of the controls in Subpart. 1 to bring areas into attainment with the 0.12 ppm standard in the allotted time. See H.R.Rep. No. 101-490, at 145-50, reprinted in II 1990 Legislative History, at 3169-74. Rather than continue treating all ozone nonattainment areas alike, the Congress allowed the various areas between 3 and 20 years to attain the ozone NAAQS, depending upon the extent of the area’s ozone problem. See id. at 146-47 (“In 1977, Congress tried to waive [sic] a ‘magic wand’ and command that all nonattainment areas [for ozone] will meet the applicable [NAAQS].... by December 31, 1987. ... [That] date[ ] ha[s] come and gone and it is clear that ... we had no ‘magic’ solutions.”), reprinted in II 1990 Legislative History, at 3170-71. As the petitioners argue, because the 1990 amendments extended the time for nonattainment areas to comply with the 0.12 ppm ozone NAAQS, they must preclude the EPA from requiring areas to comply either more quickly or with a more stringent ozone NAAQS.
Subpart 1 requires compliance with a primary NAAQS “as expeditiously as practicable, but no later than 5 years from the date such area was designated nonattainment.”
The EPA offers two arguments against this interpretation of Subparts 1 and 2. First, the EPA contends that a recent statute confirms its power to designate nonattainment areas under the revised ozone standard. See Pub.L. No. 105-178, § 6103(a), 112 Stat. 465 (1998) (extending time to two years from one year for governor to submit proposed designation under 0.08 ppm ozone NAAQS). That statute also specifically states, however, that “[n]othing in section[ ] ... 6103 shall be construed by the Administrator of Environmental Protection Agency or any court
Second, the EPA argues that read in context the reference to § 107(d) in § 181(a)(1) relates only to designations made under § 107(d)(4). Because the table in § 181(a)(1) classifies areas based upon a design value that roughly measures attainment of the 0.12 ppm ozone NAAQS, the EPA contends that the nonattainment designations referenced in § 181(a)(1) are only those designations made under the 0.12 ppm ozone NAAQS. This explanation, however, does not square with either the Congress’s decision not to refer to § 107(d)(4) specifically or the long-term nature of the attainment scheme enacted in Subpart 2; on the EPA’s interpretation, that scheme would have been stillborn had the EPA revised the ozone NAAQS immediately after the Congress enacted the 1990 amendments.
The EPA points next to § 181(b)(1), which specifies the attainment dates for areas that met the 0.12 ppm standard when the Congress enacted the 1990 amendments but that later cease to comply. That section, however, applies only to areas designated under § 107(d)(3) that previously were “designated attainment or unclassifiable for ozone under section [107(d)(4)].” That § 181(b)(1) provides special rules for such areas, but not for areas designated under § 107(d)(3) that had previously been designated attainment for ozone or unclassifiable under § 107(d)(1), does not support the EPA’s argument that the phrase in § 181(a)(1) “designated nonattainment for ozone pursuant to section 107(d)” denotes only those designations made under § 107(d)(4). If anything, the specification of § 107(d)(4) in § 181(b)(1) makes its absence from § 181(a)(1) all the more striking.
The final bit of context to which the EPA points is the title of § 181(a): “Classification and attainment dates for 1989 nonattainment areas.” Because the title specifies “1989 nonattainment areas,” we are told, § 181(a) must refer only to nonattainment designations made immediately after enactment of the 1990 amendments, that is, designations made under § 107(d)(4). Although “the title of a statute or section can aid in resolving an ambiguity in the legislation’s text,” INS v. National Ctr. for Immigrants’ Rights, Inc.,
In sum, § 181(a) “specifically provide[s]” for classifications and attainment dates for areas designated nonattainment for ozone pursuant to § 107(d)(1). Accordingly, Subpart 2, not Subpart 1, provides the classifications and attainment dates for any areas designated nonattainment under a revised primary ozone NAAQS, see
3. The Secondary Ozone NAAQS
The Non-State Petitioners briefly contend that our conclusion that Subpart 2 provides the classifications and attainment dates for areas designated nonattainment under a revised primary ozone NAAQS is equally applicable to the enforcement of a
B. Ozone’s Health Benefits
Petitioners presented evidence that according to them shows the health benefits of tropospheric ozone as a shield from the harmful effects of the sun’s ultraviolet rays — including cataracts and both melanoma and nonmelanoma skin cancers. In estimating the effects of ozone concentrations, EPA explicitly disregarded these alleged benefits.
EPA explained its decision first as a matter of statutory interpretation. Under the Clean Air Act, EPA’s ambient standards for any pollutant are to be “based on [the] criteria” that EPA has published for that pollutant.
EPA attempts to avoid this straightforward reading in several ways. First, it points to the term “such pollutant,” arguing that the statute requires it to focus exclusively on the characteristics that make the substance a “pollutant.” But the phrase “pollutant” is simply a label used to identify a substance to be listed and controlled by the statute. While it is perfectly true that a substance known to be utterly without adverse effects could not make it onto the list, this fact of nomenclature does not visibly manifest a congressional intent to banish consideration of whole classes of “identifiable effects.”
EPA also relies on the fact that two of the three specified considerations under § 108(a)(2)’s general mandate refer to “adverse effect[s]”:
The criteria for an air pollutant, to the extent practicable, shall include information on—
(A) those variable factors (including atmospheric conditions) which of themselves or in combination with other factors may alter the effects on public health or welfare of such air pollutant;
(B) the types of air pollutants which, when present in the atmosphere, may interact with such pollutant to produce an adverse effect on public health or welfare; and
(C) any known or anticipated adverse effects on welfare.
EPA next argues that Title VI of the Clean Air Act, id. §§ 7671~7671q, which mandates certain measures to preserve stratospheric ozone, represents a complete consideration of ozone’s beneficial role as a UV shield. Petitioners’ claim, however, is that ground-level (tropospheric) ozone— the subject of this rule — has a UV-screening function independent of the ozone higher in the atmosphere. EPA points to nothing in the statute that purports to address tropospheric ozone.
Finally, EPA directs us towards legislative history from the 1970 and 1990 Clean Air Act Amendments. The “all identifiable effects” language, however, dates to the 1967 Amendments. Legislative history from the 1970 and 1990 Congresses cannot be “an authoritative interpretation of what the [1967] statute meant,” because it is “the function of the courts and not the Legislature, much less a Committee of one House of the Legislature, to say what an enacted statute means.” Pierce v. Underwood,
Under Chevron, we dеfer to an agency’s interpretation of a statute if “the statute is silent or ambiguous with respect to the specific issue” and “the agency’s answer is based on a permissible construction of the statute.”
Legally, then, EPA must consider positive identifiable effects of a pollutant’s presence in the ambient air in formulating air quality criteria under § 108 and NAAQS under § 109. EPA’s other arguments are technical, and are of two sorts: those that allegedly show petitioners’ studies to be fatally flawed and those that allegedly show specific inflation of results in these studies. We- need only consider the first sort, for EPA chose to give the studies no weight at all.
Petitioners rely primarily on studies by Lutter and Cupitt. EPA found that these could be ignored because the marginal benefits are difficult, if not impossible, to quantify reliably and because there is “no convincing basis for concluding that any such effects ... would be significant.” But these are not the criteria by which EPA assesses adverse health effects. It does not rigorously or uniformly demand either quantifiability, see, e.g., Ozone Final Rule, 62 Fed.Reg. at 38,860/3 (admitting that “quantitative risk estimates could not
As we said above, we are remanding to EPA to formulate adequate decision criteria for its ordinary object of analysis — ill effects. We leave it to the agency on remand to determine whether, using the same approach as it does for those, tropospheric ozone has a beneficent effect, and if so, then to assess ozone’s net adverse health effect by whatever criteria it adopts.
IV. Particulate Matter
A. PM10 as Coarse Particle Indicator
We now turn to petitioners’ challenges to the Agency’s regulation of coarse particulate pollution. Both the 1987 NAAQS and the proposed standards regulate all particles with diameters under 10 micrometers, signified by the indicator PM10. The PM10 spectrum includes both coarse and fine particles. While the main distinction between coarse and fine particles is the process by which they are produced, EPA and epidemiologists who study the health effects of particulate pollution identify coarse and fine particles through rough approximations of those particles’ diameters. Coarse particles, which become airborne usually from the crushing and grinding of solids, generally have diameters between 2.5 and 10 micrometers and can thus be identified by the indicator PMio-2.5- Fine particles, indicated in these new NAAQS by PM2.5, come mainly from combustion or gases and generally have diameters of 2.5 micrometers or less.
Despite EPA’s conclusion that coarse and fine particles pose independent and distinct threats to public health, the Agency chose not to adopt an indicator, such as PM10-2.5, that would measure only the coarse fraction of PM10. Petitioners make two arguments: that there is no scientific basis for regulating coarse particles at all, and that even if there were, retention of the PM10 indicator simultaneously "with the establishment of the new fine particle indicator is unsupported by evidence in the record and arbitrary and capricious. We agree with this latter argument.
Beginning with petitioners’ first challenge, we think the record contains sufficient evidence to justify the Agency’s decision to regulate coarse particulate pollution. While the relationship between PM10 pollution and adverse health effects justifying the 1987 NAAQS was well-established, see NRDC v. EPA
Having found independent health consequences from coarse particulate pollution, EPA nevertheless decided to regulate the coarse fraction of PM10 indirectly, using PM10 (which includes both coarse and fine PM) as a “surrogate for coarse fraction particles.” PM Final Rule, 62 Fed.Reg. at 38,668/2. While recognizing that PM10_2.5 would have served as a satisfactory coarse particle indicator, EPA offers three justifications for its decision to use PM10 instead: (1) Both the Gordian and Hefflin studies used PM10, not PM10_2.5, as the variable in their models, (2) the PM10 standards will work in conjunction with the PM2.e standards by regulating the portion of particulate pollution not regulated by the PM2.5 standards, and (3) a nationwide monitoring program for PM10 already exists. We find none of these explanations persuasive.
As to the first argument, while acknowledging that the indicator used in the studies captures both coarse and fine particles, EPA nevertheless maintains that PM10 is an effective indicator for the regulation of coarse particulate pollution. “Adopting the indicator used in the studies,” the Agency says, “increases the likelihood that the level selected will result in the health protections predicted.” But as EPA’s own staff paper suggests, PM10 is “inherently confounded” by the presence of PM2.B particles, meaning that any regulation of PM10 pollution will include both coarse and fine particles. See PM Staff Paper at V-59. Using PM10 as the coarse particle indicator, instead of PM10_2.B, will thus regulate more than just the coarse fraction of PM10, and the amount of coarse particulate pollution permitted will depend (quite arbitrarily) on the amount of PM2,B pollution in the air. For example, assuming the 50 micro-gram annual PM10 level adopted by the Agency and a region with an annual PM2.5 pollution level of 15 micrograms, the PM10 indicator would prohibit coarse particulate (PM10.2.6) pollution from exceeding 35 micrograms. But in an area with only 5 micrograms of PM2.B pollution, the NAAQS would permit, coarse particulate pollution to reach as high as 45 micrograms.
EPA’s second argument — that the PM10 standard will work in conjunction with the PM2.b standard — suffers from the same deficiency. Accepting EPA’s finding of “profound physicochemical differences” between coarse and fine PM, PM Staff Paper at V-59, such that each requires independent regulation, we cannot discern exactly how a PM10 standard, instead of a PM10_2.b standard, will work alongside a PM2,5 standard to regulate only the coarse fraction of PM10. EPA provides no explanation to aid us in understanding its decision. In fact, as the example above indicates, it is the very presence of a separate PM2B standard that makes retention of the PM10 indicator arbitrary and capricious. Far from working in conjunction to regulate coarse particles, PM10 and PM2.b indicators, when used together, lead to “double regulation” of the PM2.b component of PM10 and potential underregulation of the PM10_2.5 component since the amount of PM10.2 B permitted will always depend on the amount of PM2B in the air.
EPA’s final argument is pragmatic. It maintains that PM10 is a better indicator than PM10_2.b for coarse particulate pollution because a nationwide monitoring program for PM10 already exists. But as EPA acknowledges elsewhere in its brief, NRDC bars EPA from considering factors unrelated to public health in setting air quality standards. Echoing our decision in Vinyl Chloii.de, NRDC held that “the Administrator may not consider cost and technological feasibility in determining what is ‘safe’; such a determination ‘must
In view of our conclusion that PM10 amounts to an arbitrary indicator for coarse particle pollution, we need not address petitioners’ separate challenge to the PM10 levels or secondary standards. We note, however, that whatever levels the Agency ultimately selects for coarse particle pollution will need to comply with the requirements set forth in Part I of this opinion.
B. Fine Particles as “New Pollutant”
The Attorneys General of Ohio, Michigan, and West Virginia (“state petitioners”) argue that EPA is regulating PM2.6 for the first time. Because they consider PM25 to be a “new pollutant,” they argue that § 108 of the Clean Air Act requires EPA to conduct further research on PM2.6’s health effects before listing it as a pollutant, to issue an air quality criteria document reflecting the latest science on the health effects of the pollutant, and to assist states by developing “data relating to the cost of installation and operation, energy requirements, emission reduction benefits, and environmental impact of the emission control technology.”
Although EPA never responds to this argument, five northeastern states (as respondent intervenors and amici) do. Pointing out that previous NAAQS have always included PM2.5, these attorneys general support the EPA’s decision not to list PM2.5 separately as a new pollutant. We agree.
The state petitioners cannot escape the fact that the original standards for particulate pollution using Total Suspended Particulates (TSP) as indicator, as well as the 1987 NAAQS that used PM10, included by definition every particle 2.5 micrometers and smaller. Moreover, in some areas fine particles often dominate PM10 pollution. See PM Staff Paper at V-63. By refining the NAAQS to focus on smaller particles that EPA found posed distinct threats to public health, EPA has done with these regulations exactly what we held it could do in 1987 when it made the change from Total Suspended Particulates to PM10. See NRDC,
C. Failure to Identify a Biological Mechanism for Particulate Pollution’s Relationship to Adverse Health Effects
Also challenging the establishment of a fine particle standard, non-state petitioners argue that EPA failed to explain the biological mechanism through which particulate pollution causes adverse health effects. Even if epidemiological studies show robust statistical relationships between pollution and health effects, they say, the absence of proof of causation — i.e., how particles actually interact with cells and organs to cause sickness and death — -is fatal to the standard. We- disagree.
To begin with, the statute itself requires no such proof. The Administrator may regulate air pollutants “emissions of which, in his judgment, cause or contribute to air pollution which may reasonably be anticipated to endanger public health or welfare.”
The numerous epidemiological studies appearing in this record, some of which EPA also used to support the 1987 NAAQS, easily satisfy the standard articulated in the statute and emphasized repeatedly in decisions of this court. Covering diverse geographic locations with widely varying mixes of air pollution, the studies found statistically significant relationships between air-borne particulates signified by a variety of indicators and adverse health effects. Given EPA’s statutory mandate to establish standards based on “the latest scientific knowledge,”
D. Visibility Effects
The Environmental Petitioners challenge the EPA’s decision to set the secondary PM2.5 NAAQS at levels equivalent to the primary NAAQS. According to the petitioners, the EPA’s failure to set the secondary NAAQS at more stringent levels will result in “adverse visibility impacts” in parts of the country. In view of our conclusion in Part I, above, that the EPA has not adequately explainеd the principles upon which it relied in setting the levels in the NAAQS for PM, we need not reach the main thrust of the petitioners’ challenge to the secondary NAAQS. On the other hand, the Environmental Petitioners have also raised a question of statutory interpretation, the resolution of which should assist the EPA if it revisits its decision to set the secondary PM25 NAAQS.
In the PM Final Rule, the EPA decided “to address the welfare effects of PM on visibility by setting secondary standards identical to the suite of PM2.5 primary standards, in conjunction with the establishment of a regional haze program under § 169A of the Act.” PM Final Rule, 62 Fed.Reg. at 38,679/3. Section 169A “declares as a national goal the prevention ... and the remedying of any ... impairment of visibility in mandatory class I Federal areas ... result[ing] from man-made air pollution.”
The Environmental Petitioners argue that § 109(b)(2),
Conclusion
We remand the cases to EPA for further consideration of all standards at issue. We do not vacate the new ozone standards because the standard is unlikely to engender costly compliance activities in light of our determination that it cannot be enforced by virtue of Clean Air Act § 181(a),
Because of the substantial investment of time this matter has required and the many unresolved issues bearing on application of whatever standards may emerge, this panel will in the interest of judicial economy retain jurisdiction over the cases following remand. See Sierra Club v. Gorsuch,
Notes
Judge Williams wrote Parts I and III.B; Judge Ginsburg wrote Parts II, III.A, and IV.D; Judge Tatel wrote Parts IV.A-C.
. Technically, EPA describes the criteria as used only for setting the "adequate margin of safety.” There might be thought to be a separate step in which EPA determines what standard would protect public health without any margin of safety, and that step might be governed by different criteria. But EPA did not use such a process, and it need not. See NRDC v. EPA, 902 F.2d 962, 973 (D.C.Cir.1990). Thus, the criteria mentioned in the
. EPA did cite qualitative evidence' for further support for its annual standard, and argued that the evidence "does not provide evidence of effects below the range of 40-50 |x g/m
. See W.P.D. Logan, "Mortality in the London Fog Incident, 1952," The Lancet, Feb. 4, 1953, at 336-38.
. A zero-risk policy might seem to imply de-industrialization, but in fact even that seems inadequate to the task (and even if the calculus is confined to direct risks from pollutants, as opposed to risks from the concomitant poverty). First, PM (at least) results from almost all combustion, so only total prohibition of fire or universal application of some heretofore unknown control technology would reduce manmade emissions to zero. See PM Staff Paper at IV-1. Second, the combustion associated with pastoral life appears to be rather deadly. See World Bank, World Development Report 1992: Development and the Environment 52 (1992) (noting that "biomass” fuels (i.e., 'wood, straw, or dung) are often the only fuels that "poor households, mostly in rural areas” can obtain or afford, and that indoor smoke from biomass burning "contributes to acute respiratory infections that cause an estimated 4 million deaths annually among infants and children.”).
. The ‘'quality'1 of various health states was determined by poll, and medical professionals determined the probabilities and durations of various health states with and without the treatment in question.
Oregon was twice forced to revise its system because the United States Department of Health & Human Services determined that the original proposal and a revision violated the Americans with Disabilities Act,
We take no position on whether HHS’s view was correct, or if the underlying norm also governs EPA’s decisions under § 109(b)(1). An affirmative answer, however, would not seem to preclude use of some of Oregon's approach. The first step would be giving appropriate weight to the views of persons with disabilities. The second might be measuring the seriousness of a pollution-induced health effect by the absolute level of well-being that the effect brings about, not by the decrease in level that the effect causes. In other words, if the maximum well-being level is 100 and the average asthmatic whose asthma constitutes a disability has a well-being of 80 in the absence of air pollution (according to a measure that appropriately considers asthmatics' own assessments of their condition), then a response to air pollution that reduces the asthmatics' well-being to 70 could be counted as an effect of magnitude 30 (the difference from full health), rather than 10 (the difference from the level without the pollution). That approach would ensure that effects on persons with disabilities were not underestimated, even in the broad sense of that term apparently adopted by HHS.
. More specifically, the design value is the fourth-highest daily maximum ozone concentration in an area over three consecutive years for which there are sufficient data. If that value is less than or equal to 0.12 ppm, then an area will have only three expected values above that level and it will be in attainment with the ozone NAAQS. See EPA, The Clean Air Act Ozone Design Value Study: Final Report 1-1 to 1-22 (1994) (filed pursuant to
. This table appears in Clean Air Act § 181(a)(1), ,
TABLE 1
Area Class Design value [ppm] Primaiy standard attainment date
Marginal. 0.121 up to 0.138. 3 years after November 15, 1990
Moderate. 0.138 up to 0.160. 6 years after
November 15, 1990 Serious. 0.160 up to 0.180. 9 years after
November 15, 1990 Severe. 0.180 up to 0.280 . 15 years аfter November 15, 1990
Extreme. 0.280 and above. 20 years after November 15, 1990
The Severe Area category is later subdivided, creating a sixth classification for ozone nonattainment areas. See
. Briefing should address the possibility that the previous particulate matter standard will spring back to life in response to our decision to vacate the new coarse particulate matter standard.
Dissenting Opinion
dissenting from Part I:
The Clean Air Act has been on the books for decades, has been amended by Congress numerous times, and has been the subject of regular congressional oversight hearings. The Act has been parsed by this circuit no fewer than ten times in published opinions delineating EPA authority in the NAAQS setting process. Yet this court now threatens to strike down section 109 of the Act as an unconstitutional delegation of congressional authority unless EPA can articulate an intelligible principle cabining its discretion. In doing so, the court ignores the last hálf-century of Supreme Court nondelegation jurisprudence, apparently viewing these permissive precedents as mere exceptions to the rule laid down sixty-four years ago in A.L.A. Schechter Poultry Corp. v. United States,
Section 109 requires EPA to publish air quality standards “the attainment and maintenance of which in the judgment of the Administrator, based on such criteria and allowing an adequate margin of safety, are requisite to protect the public health.”
Given this extensive Supreme Court precedent sustaining general congressional delegations, no wonder the First Circuit rejected a similar nondelegation challenge to the Clean Air Act’s “requisite to protect the public health” language:
The power granted to EPA is not “unconfined and vagrant”. [Schechter Poultry,295 U.S. at 551 ,55 S.Ct. 837 (Cardozo, J., concurring).] The Agency has been given a well defined task by Congress — to reduce pollution to levels “requisite to protect the public health”, in the case of primary standards. The Clean Air Act outlines the approach to be followed by the Agency and describes in detail many of its powers.... Yet there are many benchmarks to guide the Agency and the courts in determining whether or not EPA is exceeding its powers, not the least of which is that the rationality of the means can be tested against goals capable of fairly precise definition in the language of science.
Administrative agencies are created by Congress because it is impossible for the Legislature to acquire sufficient information to manage each detail in the long process of extirpating the abuses identified by the legislation; the Agency must have flexibility to implement the congressional mandate. Therefore, although the delegation to EPA was a broad one, ... we have little difficulty concluding that the delegation was not excessive.
South Terminal Corp. v. EPA,
I do not agree with my colleagues that International Union, UAW v. OSHA,
Moreover, in setting standards “requisite to protect the public health,” EPA discretion is not unlimited. The Clean Air Act directs EPA to base standards on “air quality criteria” that “accurately reflect the latest scientific knowledge useful in indicating the kind and extent of all identifiable effects on public health or welfare which may be expected from the presence of such pollutant in the ambient air, in varying quantities.”
Although this court’s opinion might lead one tо think that section 109’s language permitted EPA to exercise unfettered discretion in choosing NAAQS, the record shows that EPA actually adhered to a disciplined decisionmaking process constrained by the statute’s directive to set standards “requisite to protect the public health” based on criteria reflecting the “latest scientific knowledge.” To identify which health effects were “significant enough” to warrant protection, EPA followed guidelines published by the American Thoracic Society. See National Ambient Air Quality Standards for Ozone: Proposed Decision, 61 Fed.Reg. 65,716, 65,722/1 (1996). It then set the ozone and fine particle standards within ranges recommended by CASAC, the independent scientific advisory committee created pursuant to section 109 of the Act. See
CASAC must consist of at least one member of the National Academy of Sciences, one physician, and one person representing state air pollution control agencies. See
Beginning with CASAC’s ozone recommendations — not one member recommended going below .08 ppm — EPA gave two perfectly rational explanations for the level it selected. First, it set the annual level based on the different types of health effects observed above and below .08 ppm. Particularly below .08, the Agency determined, “[t]he most certain [ozone-Jrelated effects, while judged to be adverse, are transient and reversible.” National Ambient Air Quality Standards for Ozone, 62 Fed.Reg. 38,856, 38,868/2 (1997) (emphasis added). Characterizing this explanation as saying nothing more than that “lower exposure levels are associated with lower risk to public health,” Maj. Op. at 1035, my colleagues find the Agency’s reasoning unintelligible. But EPA did not find simply that public health risks decrease at lower levels. Instead, it found that public health effects differ below .08 ppm, i.e., that they are “transient and reversible.”
Second, EPA explained that the level should not be set below naturally occurring background ozone concentrations. The Agency selected .08 ppm because it found that “a 0.07 ppm level would be closer to peak background levels that infrequently occur in some areas due to
EPA offered an equally reasonable explanation for the fine particle pollution standard. Again limiting itself to the range approved by CASAC, EPA set the annual standard for PM2.5 pollution at the lowest level where it had confidence that the epidemiological evidence (filtered through peer-reviewed, published studies) displayed a statistically significant relationship between air pollution and adverse public health effects.
Recognizing that its decision must “accurately reflect the latest scientific knowledge useful in indicating the kind and extent of all identifiable effects on public health,”
In a passage directly answering this court’s concerns, see Maj. Op. at 1036-1037, the Staff Paper explained why the long-term mean served as a reasonable level for setting the fine particle NAAQS:
The mean (or median) concentration may serve as a reasonable cutpoint of increased PM health risk since at this point there is generally the greatest confidence (i.e., the smallest confidence intervals) in the association and the reported [relative risk] estimates. The mean concentration considered by staff as most informative to test implications of potential alternative concentration-response functions is the minimum mean concentration associated with a study or studies reporting statistically significant increases in risk across a number of study locations....
Office of Air Quality PlaNning and StandaRds, U.S. Environmental Protection Agenoy, Review of National Ambient Air Quality StandaRds for Partioulate Matter: PoliCY Assessment of Scientifio and TECHNICAL Information, at E-4 (1996) (emphasis added).
EPA thus did not, as my colleagues charge, arbitrarily pick points on the ozone and particulate pollution continua indistinguishable from any other. Instead, acting pursuant to section 109’s direction that it establish standards that, based on the “latest scientific knowledge,” are “requisite” to protect the public health with “an adequate margin of safety,” and operating within ranges approved by CASAC, the Agency set the ozone level just above peak background concentrations where the most certain health effects are not transient and reversible, and the fine particle level at the lowest long-term mean concentration observed in studies that showed a statistically significant relationship between fine particle pollution and adverse health effects. Whether EPA arbitrarily selected the studies it relied upon or drew mistaken conclusions frdm those studies (as petitioners argue), or whether EPA failed to live up to the principles it established for itself (as my colleagues believe, see Maj. Oр. at 1035-1037), has nothing to do with our inquiry under the nondelegation doctrine. Those issues relate to whether the NAAQS are arbitrary and capricious. See NRDC v. EPA,
A final point. Unlike OSHA, which Lockout/Tagout I recognized has authority to reach into every workplace to dictate what is safe, to impose extensive civil and criminal penalties, and “to decide which firms will live and which will die,” Lockout/Tagout I,