WILLIAMS, Senior Circuit Judge:
The Clean Air Act, 42 U.S.C. §§ 7401-7671q, directs the Environmental Protection Agency to establish air concentration levels above which certain pollutants may endanger public health and welfare, called National Ambient Air Quality Standards ("NAAQS"), id. §§ 7408-7409. On June 22, 2010 EPA exercised this authority to issue a new standard for sulfur dioxide, SO
Within two years after a new NAAQS is established (extendable as in this case to three for want of adequate data), id. § 7407(d)(1)(B)(i), EPA must designate all parts of the country as being in "attainment," in "nonattainment," or "unclassifiable" with respect to the air quality standards, id. § 7407(d)(1)(A). "Nonattainment" areas either fail to satisfy the NAAQS themselves or contribute to pollution in another area that does not satisfy the NAAQS. "Attainment" areas both satisfy the NAAQS and do not contribute to nonattainment status for another area. In "unclassifiable" areas, EPA lacks adequate information to make a determination either way. Id. § 7407(d)(1)(A)(i)-(iii).
On August 5, 2013 EPA designated 29 areas as not meeting its new SO
We deny the petitions for review. Except insofar as both are attacks on EPA's August 2013 designations with respect to the 2010 SO
The Association is "a trade association comprised of natural resource industries and associations, labor unions, consulting firms and law firms, and recreation organizations located throughout Montana." Petitioners' Br. iii. Its standing is clear and uncontested; its members are located within the nonattainment area and are subject to regulations resulting from the designation. The Association's primary arguments are: (1) that the data on which EPA relied were so unreliable that its reliance was arbitrary and capricious, 42 U.S.C. § 7607(d)(9)(A), and (2) that EPA's application of the Act was retroactive within the meaning of Landgraf v. U.S.I. Film Products, 511 U.S. 244, 114 S.Ct. 1483, 128 L.Ed.2d 229 (1994), and thus, there being no clear congressional intent to authorize retroactivity, not in accord with the statute.
The Association claims that EPA failed to follow its regulations because Montana, which collected the monitoring data, had an "outdated" Quality Assurance Project Plan ("QAPP") for data collection. In particular, EPA regulations require that states have a QAPP that
40 C.F.R. § Pt. 58, App. A. Although the Association says that Montana's QAPP was "outdated" because it was developed in 1996, it identifies only one respect in which Montana's failure to adjust the
The Association's last data-quality claim is that EPA inappropriately applied a "weight of evidence" standard in its evaluation of the air quality monitoring data. Specifically, it says, EPA's regulation requiring use of the "weight of evidence" was promulgated only weeks before comments were due on EPA's proposed SO
As to retroactivity, the Association's argument turns on the fact that EPA used data from as far back as 2009 to make the nonattainment designation under the June 2010 SO
The Act and EPA's enforcement strategy made it highly likely that data pre-dating
The Supreme Court will refuse "to give retroactive effect to statutes burdening private rights unless Congress ha[s] made clear its intent." Landgraf, 511 U.S. at 270, 114 S.Ct. 1483. (The due process clause also may place limits on retroactive burdens, see, e.g., Usery v. Turner Elkhorn Mining Co., 428 U.S. 1, 96 S.Ct. 2882, 49 L.Ed.2d 752 (1976), but is not in play here.) We have already found, in a case involving a party's attempt to have a non-attainment designation made effective before EPA actually issued the designation, that the sections of the Act relating to nonattainment "contain no language suggesting that Congress intended to give EPA the unusual ability to implement rules retroactively." Sierra Club v. Whitman, 285 F.3d 63, 68 (D.C.Cir.2002).
Although Landgraf requires that courts evaluating a rule for retroactivity ask "whether the new provision attaches new legal consequences to events completed before its enactment," that is far from the end of the story; "[a] statute does not operate `retrospectively' merely because it is applied in a case arising from conduct antedating the statute's enactment." 511 U.S. at 269-70, 114 S.Ct. 1483. The most concrete factors are "considerations of fair notice, reasonable reliance, and settled expectations," id. at 270, 114 S.Ct. 1483 (citations omitted), to which we now turn.
The typical form of unfairness that retroactivity may wreak is by radically undermining the value of costs that parties incurred in reasonable reliance on continuation of the status quo, or by discouraging parties from incurring costs that by virtue of the new rule might have yielded net savings. An example of the first would be decisions to build or improve a plant for compliance with the old standards—changes that as a result of the new rule and the nonattainment designation may require costly retrofitting. A cost that knowledge of the new rule and nonattainment classification might have encouraged would be building to the resulting specifications—again in order to avoid retrofitting costs that would stem from an improvement that complied merely with the old regulatory landscape. (A further advantage would have been the chance of avoiding nonattainment designation—and its attendant regulatory entanglement—by improving the area's overall air quality,
The absence of such evidence is hardly surprising in light of the established rules governing nonattainment designation and the ample public notice of the impending change in the NAAQS. The Act itself requires that "at five-year intervals . . . , the [EPA] Administrator shall complete a thorough review of" the NAAQS and revise them as appropriate. 42 U.S.C. § 7409(d)(1). Moreover, these changes have moved generally toward greater stringency over the life of the Act. See links to historical NAAQS standards at http://www3.epa.gov/ttn/naaqs/criteria.html. More specifically, EPA had long given notice of the prospect of more stringent SO
Finally, the Association challenges EPA's denial of its reconsideration petition. 79 Fed.Reg. 50,577/3. Its main argument in its petition for reconsideration was that if EPA had considered new data from 2013 it would have found that Yellowstone County was no longer out of attainment. Petition for Reconsideration or Repeal of a Portion of the Final Rule and Request for an Administrative Stay Pending Agency Proceedings at 7-8, J.A. 332-33. There are at least two problems with this claim. First, the 2013 data were not complete or certified at the time that the Association suggested that they be used. Id. at 6 n.28. And using only data for 2010-2012 would not have undone the county's violation of the NAAQS. Responses to Comments at 51, J.A. 437.
Second, a ruling that an agency's disregard of data gathered after final agency action was arbitrary and capricious could make it difficult for many actions to go into effect. Since new data may continue to pour in, reconsideration based on such data could materially delay arrival at a final decision. And the Act clearly did intend to produce final rules, since "Congress imposed deadlines on EPA and thus clearly envisioned an end to the designation process." Catawba County, N.C. v. EPA, 571 F.3d 20, 51 (D.C.Cir.2009). Further, parties in areas designated nonattainment aren't without recourse: Congress explicitly provided a re-designation process in 42 U.S.C. §§ 7407(d)(3), 7505a. Rejecting the petition for reconsideration, EPA explained this recourse, as well as the possibility of submitting a request for a "clean data determination," which "would suspend certain nonattainment planning requirements." Treasure State Den. Ltr. at 22-23, J.A. 318-19. Given the difficulties arising from reconsideration of new data and the availability of other avenues
The Association's remaining arguments, alleging data quality deficiencies that it claims the agency ignored in finalizing the Montana designation, were not specifically raised until reconsideration and were then fully and reasonably disposed of by EPA in its denial.
We therefore uphold the Final Rule's designation of part of Yellowstone County as nonattainment.
We turn now to the Michigan designation. U.S. Steel has a plant located in the nonattainment portion of Wayne County and does not dispute the designation of that portion as nonattainment. But it argues that it was not reasonable for EPA to designate part of Wayne County as nonattainment without simultaneously making the same determination for at least that portion of neighboring Monroe County that includes the Monroe Coal-Fired Power Plant (the "Monroe plant"). Pointing to the statutory criteria for nonattainment designation, § 107(d)(1)(A)(i), 42 U.S.C. § 7407(d)(1)(A)(i), which require inclusion of any area "that contributes to ambient area quality in a nearby area that does not meet" the NAAQS, U.S. Steel says that SO
U.S. Steel must first establish its standing by showing satisfaction of the now-standard elements of injury in fact, causation and redressability. Lujan v. Defenders of Wildlife, 504 U.S. 555, 560-61, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992). Once we understand the process for remedying nonattainment in an area so designated, it is apparent that U.S. Steel meets those requirements.
U.S. Steel has suffered an injury in fact that is "concrete and particularized" and "actual or imminent, not `conjectural' or `hypothetical,'" id. at 560, 112 S.Ct. 2130 (citations omitted), because the designation of Wayne County as nonattainment without the inclusion of the Monroe plant area subjects it to a markedly higher risk of facing costly (or more costly) regulatory pollution controls. EPA claims that there is little risk of such an injury, since Michigan can elect to address nonattainment in Wayne County by "impos[ing] emission reduction requirements on all facilities that it determines are, in fact, contributing to nonattainment." Respondents' Br. 40. Thus, says EPA, the burden of reducing pollution could be shared between U.S. Steel and the Monroe plant regardless of whether the Monroe plant is included in the nonattainment area. EPA's contention is a considerable oversimplification.
The Act gives a kind of primacy to reductions from sources in the nonattainment area itself, and we have read it as sharply prioritizing reductions inside the nonattainment area. Speaking of the SIP required for a nonattainment area, the Act provides:
Act, § 172(c)(1), 42 U.S.C. § 7502(c)(1) (emphasis added).
Given that understanding of § 172(c)(1), it might seem that the cutbacks likely to be imposed on U.S. Steel will be the same regardless of whether the Monroe plant is included in the nonattainment area. But EPA's concept of RACT is such that inclusion of the Monroe plant (again assuming that its contribution to SO
EPA also argues that its Final Rule is not final within the meaning of the APA, 5 U.S.C. § 704, with respect to this challenge, because it expressly said that it had not completed the designation process for Monroe County. Michigan Technical Support Document at 7-8, J.A. 655-56. But this misconceives U.S. Steel's claim, which, to repeat, is that it was unlawful to designate Wayne County without simultaneously designating the area containing the Monroe plant.
Reaching the merits, however, we find neither a violation of the Act nor any arbitrariness in EPA's action. For its SO
Of course, EPA's approach could still be arbitrary and capricious even in the absence of a statutory or regulatory mandate. Under the APA, EPA must "conform to `certain minimal standards of rationality.'" Small Refiner Lead Phase-Down Task Force v. EPA, 705 F.2d 506, 521 (D.C.Cir.1983). But EPA has offered many reasons that justify its decision to defer a decision on Monroe County. Most importantly, there was uncertainty over whether pollution from Monroe County is, in fact, substantially contributing to air quality in Wayne County. The Monroe plant is approximately 54 kilometers away from the violating Wayne County monitor. Responses to Comments at 27, J.A. 413; Michigan Technical Support Document at 6, J.A. 654. Additionally, another monitor located between the Monroe plant and the violating Wayne County monitor—and significantly closer to the former than to the latter—showed no exceedances. Responses to Comments at 28, J.A. 414. Finally, EPA reasonably asserted the need for further study on the effect of recently-installed emission control scrubbers on the Monroe plant. Michigan Technical Support Document at 6, J.A. 654. Given the current uncertainty, postponement of the classification of Monroe County was not arbitrary and capricious.
Finally, U.S. Steel's challenge to the denial of its petition for reconsideration fails. In denying that petition, EPA thoroughly and reasonably addressed U.S. Steel's arguments. See EPA Denial Letter to U.S. Steel, J.A. 598-610.
The petitions for review of the Final Rule and EPA's denial of petitions for reconsideration are accordingly
Denied.