JULIA SMITH GIBBONS, Circuit Judge.
In 2011, the Environmental Protection Agency ("EPA") determined that the Cincinnati-Hamilton metropolitan area had attained national air quality standards for particulate matter, thanks in no small part to regional cap-and-trade programs that had reduced the flow of interstate pollution. EPA also redesignated the area to "attainment" status even though the three States that administer its pollution controls had never implemented particular provisions, known as "reasonably available control measures," applicable to nonattainment areas. Sierra Club thought the agency had acted illegally with respect to both actions, and it filed a petition for direct appellate review in this court. The parties dispute both Sierra Club's standing to challenge the agency action and the correct interpretation of the relevant statute, the Clean Air Act.
We find that the Club has standing, and we agree with its claim that "reasonably available control measures" are a prerequisite to redesignation. Therefore, we vacate EPA's redesignation of the Ohio and Indiana portions of the Cincinnati area.
The Clean Air Act ("CAA") authorizes EPA to promulgate National Ambient Air Quality Standards ("NAAQS") for various types of emissions deemed injurious to public health and welfare. 42 U.S.C. § 7409(a)-(b). Once the agency has promulgated a particular NAAQS, the Governor of each State must submit a "state implementation plan" ("SIP") with particular methods for achieving the NAAQS. Id. § 7410. EPA will then designate portions of each State as "attainment areas" (that attain the standard), "nonattainment areas" (that do not), or as "unclassifiable." Id. § 7407(d)(1)(B). If an area is designated as nonattainment, the State or States containing that area must revise their SIPs to meet additional requirements located in Part D of Subchapter 1, Chapter 85 of Title 42. See, e.g., id. § 7502. One such requirement, which we will refer to as "RACM" or "RACT," is that the state SIP "provide for the implementation of all reasonably available control measures ["RACM"] as expeditiously as practicable (including such reductions in emissions from existing sources in the area as may be obtained through the adoption, at a minimum, of reasonably available control technology ["RACT"]) and shall provide for attainment of the national primary ambient air quality standards." Id. § 7502(c)(1). Another such provision, termed "New Source Review" or "NSR," forces the State to set up a permit regime "for the construction and operation of new or modified major stationary sources anywhere in the nonattainment area, in accordance with section 7503 of [Title 42]." Id. § 7502(c)(5).
Id. § 7407(d)(3)(E).
In 1997, EPA promulgated a NAAQS concerning fine particulate matter (referred to as PM
To combat the flow of air pollutants across state lines, EPA has also created so-called "cap-and-trade" programs. In this sort of scheme, the agency first "caps" the total emissions allowable from a particular facility, state, or region, and then requires any source that pollutes too much either to invest in cleaner technology or to purchase emission reduction credits from other, more environmentally friendly sources (the "trade" part). Three cap-and-trade programs are pertinent to this case.
The first is the NO
In 2011, EPA issued Direct Final Rules approving requests from Ohio, Indiana, and Kentucky to redesignate each of their respective portions of the Cincinnati-Hamilton area from nonattainment to attainment
In those comments Sierra Club made two arguments of particular relevance to this appeal. First, it contended that improvements in the area's air quality attributable to the cap-and-trade programs were not "permanent and enforcement reductions in emissions" required under 42 U.S.C. § 7407(d)(3)(E)(iii), and that the Cincinnati area could therefore not be redesignated. Second, Sierra Club argued that the existing nonattainment SIPs had never implemented RACM/RACT rules under § 7502(c)(1), and that therefore EPA could not have "fully approved the applicable implementation plan" for purposes of § 7407(d)(3)(E)(ii). EPA rejected these comments in its Final Rule and redesignated the area to attainment status. See 76 Fed.Reg. 80,253, 80,255-56, 80,258 (Dec. 23, 2011) [hereinafter "Final Rule (Ohio/Indiana)"]. Sierra Club then filed timely petitions asking this court to vacate the redesignation. The State of Ohio and a group of utilities operating in the Cincinnati area (the "Utilities Group") intervened in support of EPA's position.
At the outset, we must address a jurisdictional question. "Before bringing a case in federal court, a plaintiff must establish standing to do so." Klein v. Dep't of Energy, 753 F.3d 576, 579 (6th Cir. 2014). An organization like Sierra Club can establish standing through two routes: on behalf of its members, in what we have called "representational standing," or on its own behalf if directly injured. Am. Canoe Ass'n v. City of Louisa Water & Sewer Comm'n, 389 F.3d 536, 540, 544 (6th Cir.2004). For this case, we need address only the former. "An association has standing to bring suit on behalf of its members when its members would otherwise have standing to sue in their own right, the interests at stake are germane to the organization's purpose, and neither the claim asserted nor the relief requested requires the participation of individual members in the lawsuit." Friends of the Earth, Inc. v. Laidlaw Envtl. Servs. (TOC) Inc., 528 U.S. 167, 181, 120 S.Ct. 693, 145 L.Ed.2d 610 (2000). No one disputes that the second and third requirements are met here.
"The party invoking federal jurisdiction bears the burden of establishing these elements." Lujan v. Defenders of Wildlife, 504 U.S. 555, 561, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992). And "each element must be supported in the same way as any other matter on which the plaintiff bears the burden of proof, i.e., with the manner and degree of evidence required at the successive stages of the litigation." Id. "At the pleading stage, general factual allegations of injury resulting from the defendant's conduct may suffice, for on a motion to dismiss we presum[e] that general allegations embrace those specific facts that are necessary to support the claim." Id. (alteration in original) (internal quotation marks omitted). But upon a motion for summary judgment, "the plaintiff can no longer rest on such mere allegations, but must set forth by affidavit or other evidence specific facts, which for purposes of the summary judgment motion will be taken to be true." Id. (citations and internal quotation marks omitted).
Here, we have a form of litigation not directly addressed by the Supreme Court in Lujan or subsequent cases: a petition for direct appellate review of final agency action. Surprisingly, more than two decades after Lujan, our circuit has not decided the "manner and degree of evidence" necessary to prove standing upon direct review, id., so we must consider an issue of first impression. We now hold, like several of our sister circuits, that the petitioner carries a burden of production similar to that required at summary judgment.
The D.C. Circuit first took up the question of a petitioner's burden in, fittingly, Sierra Club v. Environmental Protection Agency, 292 F.3d 895 (D.C.Cir.2002). The D.C. Circuit thought a direct petition more analogous to summary judgment than a motion to dismiss. Id. at 899. Because "a petitioner seeking review in the court of appeals does not ask the court merely to assess the sufficiency of its legal theory[,]" but instead seeks "a final judgment on the merits, based upon the application of its legal theory to facts established by evidence in the record[,]" that party "must either identify in that record evidence sufficient to support its standing ... [or] submit additional evidence to the court of appeals." Id. The D.C. Circuit also thought this requirement "the most fair and orderly" means to adjudicate standing because petitioners are often best situated to produce evidence of their injuries. Id. at 901. The court therefore required the petitioner to present specific facts supporting standing through citations to the administrative record or "affidavits or other evidence" attached to its opening brief, unless standing is self-evident. Id. at 900.
The Seventh, Eighth, and Tenth Circuits each found this reasoning persuasive. N. Laramie Range Alliance v. FERC, 733 F.3d 1030, 1034 (10th Cir.2013); Iowa League of Cities v. EPA, 711 F.3d 844, 869-70 (8th Cir.2013); Citizens Against Ruining The Env't v. EPA, 535 F.3d 670, 675 (7th Cir.2008). We agree with the view of our sister circuits and see no reason why a petitioner should not be able to establish, by affidavit or other evidence, specific facts supporting each element of standing. And in fact Sierra Club has anticipated this burden and appended declarations to its opening brief from Nachy Kanfer, its Deputy Director for the Beyond
An injury in fact must be "concrete and particularized" to the petitioner, and also "actual or imminent, not conjectural or hypothetical." Lujan, 504 U.S. at 560, 112 S.Ct. 2130 (internal quotation marks omitted). The Club's petitions and opening brief claim virtually every type of injury the Supreme Court has recognized, but we need only address two. The Wall Declaration asserts aesthetic and recreational injury from "regional haze" and reduced "outdoor activities[,]" Wall Decl. ¶¶ 11, 13, and potential physical injury in the form of "respiratory symptoms" caused by increased particulate matter, id. ¶ 7. Each of these is a judicially cognizable form of injury.
We first note that many courts have apparently found it so obvious that redesignation would lead to higher emissions that they did not even need to discuss the standing of environmental litigants, see, e.g., BCCA Appeal Grp. v. EPA, 355 F.3d 817, 847-48 (5th Cir.2003) (assuming Sierra Club's standing to force implementation of RACM/RACT), and we ourselves have done so in a challenge by the Club concerning some of these very same rules, see Wall v. EPA, 265 F.3d 426 (6th Cir.2001).
Sierra Club more clearly identifies an impact on PM
Having found injury in fact, we can easily dispose of the redressability and causation requirements, which often run together. See Allen v. Wright, 468 U.S. 737, 753 n. 19, 104 S.Ct. 3315, 82 L.Ed.2d 556 (1984). We have already traced a cognizable injury from EPA's actions through the RACM/RACT provisions to the alleged injuries of the Club's members; we therefore see a clear causal connection. Since the alleged injuries flow from EPA's redesignations, and since the Club asks us to vacate these redesignations, granting the Club's petitions would redress its injuries. Thus, we conclude that Sierra Club has constitutional standing to challenge the EPA's redesignations.
A reviewing court will set aside agency action that is "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law[.]" 5 U.S.C. § 706(2)(A). Where a petitioner challenges an agency's interpretation of a statute promulgated after notice-and-comment rulemaking, we assess the lawfulness of the interpretation under the familiar two-step Chevron framework. See United States v. Mead Corp., 533 U.S. 218, 226-27, 121 S.Ct. 2164, 150 L.Ed.2d 292 (2001). The court will first ask if "Congress has directly spoken to the precise question at issue." Chevron, U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 842, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). "If the intent of Congress is clear, that is the end of the matter"; no other interpretations may be permitted. Id. at 842-43, 104 S.Ct. 2778. "When conducting the inquiry required by Chevron's first step, [the court's] primary goal is to effectuate legislative intent using traditional tools of statutory interpretation." Alliance for Cmty. Media v. FCC, 529 F.3d 763, 777 (6th Cir.2008) (internal quotation marks omitted). These traditional tools include analysis of the statutory text, the structure of the statute, and its legislative history. See Fullenkamp v. Veneman, 383 F.3d 478, 481-84 (6th Cir.2004).
But "[i]f the intent of Congress on a matter of statutory meaning is ambiguous, however, the court is to proceed to `step two' of the Chevron inquiry: whether the agency's interpretation is a `permissible construction of the statute.'" Mid-America Care Found. v. NLRB, 148 F.3d 638, 642 (6th Cir.1998) (quoting Chevron, 467 U.S. at 843, 104 S.Ct. 2778). "The court need not conclude that the agency construction was the only one it permissibly could have adopted to uphold the construction, or even the reading the court would have reached if the question initially had arisen in a judicial proceeding." Chevron, 467 U.S. at 843 n. 11, 104 S.Ct. 2778. Rather, the court need only find that "EPA's understanding of this very complex statute is a sufficiently rational one to preclude a court from substituting its judgment from that of EPA." Greenbaum v. EPA, 370 F.3d 527, 534 (6th Cir.2004) (internal quotation marks omitted).
Sierra Club aims its first challenge at EPA's compliance with 42 U.S.C. § 7407(d)(3)(E)(iii), which bars redesignation to attainment unless "the Administrator determines that the improvement in air quality is due to permanent and enforceable reductions in emissions resulting from implementation of the applicable implementation plan and applicable Federal air pollutant control regulations and other permanent and enforceable reductions[.]" More specifically, Sierra Club claims that EPA improperly included emissions reductions
The heart of this dispute is really where the sources that reduce their emissions must be located. Sierra Club implicitly asks this court to read § 7407(d)(3)(E)(iii) as requiring "permanent and enforceable reductions in emissions from sources in the nonattainment area." Under this interpretation, EPA would need to determine that the Cincinnati area has achieved attainment status solely because sources within the confines of the nonattainment area have sufficiently reduced their emissions; improvements in Cincinnati air quality due to emissions reductions from anywhere else would be ignored. EPA and the Intervenors respond that the statutory text is silent on the location of the reductions and that a regional focus is necessary to address a fundamentally regional pollution problem. In other words, the States can show an improvement in Cincinnati air quality due to less inflow of particulate matter from sources outside the nonattainment area.
We think that the statutory context alone is sufficiently ambiguous for EPA to clear the first step of Chevron. Cf. Nat'l Ass'n of Home Builders v. Defenders of Wildlife, 551 U.S. 644, 666, 127 S.Ct. 2518, 168 L.Ed.2d 467 (2007) (finding a "fundamental ambiguity" from potential inferences across statutory sections). At least three times, appellate courts have vacated EPA rules that ignored explicit, area-specific mandates in assessing emission reductions under other sections of the CAA. See Natural Res. Def. Council v. EPA, 571 F.3d 1245, 1256 (D.C.Cir.2009) (holding that the phrase "reductions in emission from existing sources in the area," § 7502(c)(1), excluded regional source reductions attributable to NO
Here, EPA's interpretation seems eminently reasonable. In its direct final rule, the agency indicated that emissions from other "upwind" States significantly influence particulate matter concentrations in the Cincinnati area. See Final Rule (Ohio/Indiana), 76 Fed.Reg. at 80,256 (noting the "regional nature of particulate matter"); Direct Final Rule (Ohio/Indiana), 76 Fed.Reg. at 64,831-32 tbl. 4. It might well be the case that regional source reductions would be necessary to attainment under any scenario, but we need not examine that question in full. The existence of a regional problem is enough to conclude
Moreover, even if EPA can count improvements in air quality attributable to reductions from extra-area sources, Sierra Club contends that these reductions are not "permanent and enforceable." 42 U.S.C. § 7407(d)(3)(E)(iii). In its view, the plain meaning of "permanent" requires that each and every source reducing its emissions "will never increase [its] emissions" again. We, however, do not think it so obvious from this one word alone that the statute forecloses inclusion of cap-and-trade programs. For one thing, Sierra Club assumes that emissions "reductions" must be evaluated at the level of individual sources. But the statute does not explicitly state whether the net "reductions" may be calculated for a wider area (like the state or region). And for substantially the same reasons that § 7407(d)(3)(E)(iii) does not necessarily limit the inquiry to reductions in the nonattainment area, EPA can plausibly and rationally interpret the statute to allow a wider purview than individual sources. Under such an interpretation, the "cap" in each of the cap-and-trade programs would ensure that the relevant "reductions" are not foreseeably reversed, at least at the level of the entire cap-and-trade region. See Final Rule (Ohio/ Indiana), 76 Fed.Reg. at 80,255 (discussing the "strict emission ceiling in each state" under CSAPR, which, cumulatively, create a regional ceiling). With a sufficiently broad level of analysis, then, EPA would simply meet Sierra Club's interpretation of "permanent." In other words, since we do not believe EPA must be limited to reductions within the nonattainment area, the agency can reasonably stretch the geographic scope to guarantee "permanence."
And we cannot say that this interpretation of "permanent" is impermissible. Sierra Club asserts that anything other than an interpretation forbidding even temporary upticks in emissions could, in the aggregate, completely undermine the NAAQS, but it overlooks that § 7407(d)(3)(E)(i) independently requires attainment of the standard as a condition of redesignation. Furthermore, the threat of future designations of nonattainment (perhaps under future particulate matter NAAQS) helps to mitigate any runaway increases in emissions after this initial redesignation. See 42 U.S.C. § 7407(d)(1)(B). Attainment status aside, the net benefits of forbidding any source to ever increase emissions post-redesignation, a patently harsh standard, is a policy judgment best left to the agency. See Chevron, 467 U.S. at 865, 104 S.Ct. 2778.
This leaves Sierra Club with only one remaining argument: that reductions attributable to cap-and-trade programs are not "enforceable." 42 U.S.C. § 7407(d)(3)(E)(iii). Congress did not directly define "enforceable" in the Clean Air Act. See id. § 7602. Nor does Sierra Club attempt to provide a fully inclusive definition of the term. Instead, it proffers other uses of the term "enforceable" as evidence that Congress did not think cap-and-trade programs create enforceable reductions. As noted earlier, § 7410(a)(2)(A) requires SIPs to "include enforceable emission limitations and other control measures, means, or techniques (including economic incentives such as fees, marketable permits, and auctions of emissions rights)...." (emphasis added). Sierra Club argues that Congress set "enforceable emission limitations" apart from "other control measures" (including tradeable permits) because the latter were not "enforceable." But it seems at least as plausible
Ultimately, then, EPA has permissibly interpreted § 7407(d)(3)(E)(iii) to allow for a showing of "improvement in air quality" at least partially due to regional cap-and-trade schemes.
Sierra Club next challenges EPA's approval of the States' respective SIPs without RACM/RACT provisions specifically tailored towards fine particulate matter. Here, Sierra Club alleges non-compliance with 42 U.S.C. § 7407(d)(3)(E)(ii), which prevents redesignation unless "the Administrator has fully approved the applicable implementation plan for the area under section 7410(k)." The Club argues that this section mandates implementation of the Clean Air Act's general RACM/RACT provision, which states that all SIPs for nonattainment areas "shall provide for the implementation of all reasonably available control measures [RACM] as expeditiously as practicable (including such reductions in emissions from existing sources in the area as may be obtained through the adoption, at a minimum, of reasonably available control technology [RACT])...." 42 U.S.C. § 7502(c)(1). In approving the redesignation requests of Ohio and Indiana despite their lack of RACM/RACT,
We have already addressed, and accepted, a similar challenge by the Club in Wall v. EPA, 265 F.3d 426 (6th Cir.2001). There, EPA granted requests from Kentucky and Ohio to redesignate the Cincinnati area to attainment status under the ozone NAAQS, despite the fact that the States' SIPs had not fully adopted ozone-specific RACT measures as required under a distinct, but similar, part of the statute, 42 U.S.C. § 7511a(b)(2). See id. at 433-34. We vacated the redesignations, holding that the agency received no Chevron deference because "the statutory language regarding the implementation of RACT rules is not ambiguous.... By this language, it is clear that Congress intended for SIPs submitted in redesignation requests to include provisions to require the implementation of RACT measures." Id. at 440 (internal quotation marks omitted). And we held thus even though EPA had interpreted the ozone RACT provision as operative only if "needed to bring about the attainment of the [air quality] standard in Cincinnati." Id. at 433 (internal quotation marks omitted).
EPA raises two final arguments that we also find unconvincing. Relying mostly on a decision from the Seventh Circuit, Sierra Club v. EPA, 375 F.3d 537, 540 (7th Cir. 2004), the agency contends that we are looking at the wrong "implementation plan." In its view (and that of the Seventh Circuit), the phrase "applicable implementation plan" in § 7407(d)(3)(E)(ii) could conceivably refer to something other than the pre-attainment SIP; perhaps the "applicable" modifier "implies that there may be differences between the contents of the pre-attainment plan and those required for the post-attainment period." Id. at 541. As a consequence, EPA arguably needs only to "fully approve" those parts of the SIP that "proved to be necessary to achieve compliance" with the NAAQS, not all statutory provisions imposed on nonattainment areas. Id. at 540-41. Similarly, EPA claims that it need only approve a SIP to the extent that the plan satisfies all of the Act's "applicable requirements"; the agency considers statutory requirements for nonattainment areas, including RACM/ RACT, as "applicable" only if they were necessary to attain the PM
But Wall forecloses either of these readings. Again, we held in that case that the Act unambiguously requires RACT in the area's SIP as a prerequisite to redesignation-despite use of the phrase "applicable implementation plan" in the ozone RACT provision. See Wall, 265 F.3d at 440. Clearly, we did not read this phrase as an implicit delegation to the EPA to require ozone RACT only if necessary to attainment, and we do not now read that phrase in § 7407(d)(3)(E)(ii) as a similar delegation with respect to the general RACM/RACT provisions for all types of emissions. So we must respectfully disagree with the Seventh Circuit that "applicable implementation plan" is sufficiently vague to trigger Chevron deference.
As to EPA's "applicable requirements" argument, we did note in Wall that this language could be read to "limit[] the number of actual requirements within [§ 7410] and Part D that apply to a given area." 265 F.3d at 439. In Wall, in fact, we deferred to the agency's view that separate nonattainment provisions, transportation conformity requirements, were not "requirements applicable to the area" for the purposes of a separate redesignation requirement located in § 7407(d)(3)(e)(v). Id. at 438-39. But EPA cannot rely on that language to avoid implementation of RACT provisions under the statutory sections at issue in this case — a
In sum, a State seeking redesignation "shall provide for the implementation" of RACM/RACT, even if those measures are not strictly necessary to demonstrate attainment with the PM
The petitions are granted in part and denied in part. We vacate the redesignations of the Ohio and Indiana portions of the Cincinnati-Hamilton area but leave the redesignation of the Kentucky portion undisturbed.