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USCA Case #12-1100Document #1488346Filed: 04/15/2014United States Court of AppealsFOR THE DISTRICT OF COLUMBIA CIRCUITArgued December 10, 2013Decided April 15, 2014No. 12-1100WHITE STALLION ENERGY CENTER, LLC,PETITIONERv.ENVIRONMENTAL PROTECTION AGENCY,RESPONDENTAMERICAN ACADEMY OF PEDIATRICS, ET AL.,INTERVENORSConsolidated with 12-1101, 12-1102, 12-1147, 12-1172,12-1173, 12-1174, 12-1175, 12-1176, 12-1177, 12-1178,12-1180, 12-1181, 12-1182, 12-1183, 12-1184, 12-1185,12-1186, 12-1187, 12-1188, 12-1189, 12-1190, 12-1191,12-1192, 12-1193, 12-1194, 12-1195, 12-1196On Petitions for Review of Final Rule of theUnited States Environmental Protection AgencyLee B. Zeugin and Neil D. Gordon, Assistant AttorneyGeneral, Office of the Attorney General for the State ofMichigan, argued the causes for State, Industry, and LaborPetitioners. With them on the joint briefs were F. WilliamBrownell, Lauren E. Freeman, Elizabeth L. Horner, BillPage 1 of 90

USCA Case #12-1100Document #1488346Filed: 04/15/20142Schuette, Attorney General, Office of the Attorney General forthe State of Michigan, John J. Bursch, Solicitor General, S.Peter Manning, Assistant Attorney General, Luther Strange,Attorney General, Office of the Attorney General for the Stateof Alabama, Michael C. Geraghty, Attorney General, Office ofthe Attorney General for the State of Alaska, Steven E. Mulder,Attorney, Peter S. Glaser, George Y. Sugiyama, Michael H.Higgins, David B. Rifkin, Jr., Lee A. Casey, Mark W. DeLaquil,Andrew M. Grossman, David Flannery, Gale Lea Rubrecht,Kathy G. Beckett, Edward L. Kropp, Leslie Sue Ritts, ThomasHorne, Attorney General, Office of the Attorney General for theState of Arizona, Joseph P. Mikitish and James T. Skardon,Assistant Attorneys General, Dustin McDaniel, AttorneyGeneral, Office of the Attorney General for the State ofArkansas, Kendra Akin Jones, Assistant Attorney General,Charles L. Moulton, Senior Assistant Attorney General, PamelaJo Bondi, Attorney General, Office of the Attorney General forthe State of Florida, Jonathan A. Glogau, Attorney, Lawrence G.Wasden, Attorney General, Office of the Attorney General forthe State of Idaho, Grant Crandall, Arthur Traynor, III, EugeneM. Trisko, Gregory F. Zoeller, Attorney General, Office of theAttorney General for the State of Indiana, Valerie Tachtiris,Deputy Attorney General, Dennis Lane, Derek Schmidt,Attorney General, Office of the Attorney General for the Stateof Kansas, Jeffrey A. Chanay, Deputy Attorney General, HenryV. Nickel, George P. Sibley III, Eric A. Groten, Jeremy C.Marwell, John A. Riley, Christopher C. Thiele, Harold E.Pizzetta III, Assistant Attorney General, Office of the AttorneyGeneral for the State of Mississippi, Chris Koster, AttorneyGeneral, Office of the Attorney General for the State ofMissouri, James R. Layton and John J. McManus, Attorneys,Paul D. Clement, Nathan A. Sales, Lisa Marie Jaeger, JonBruning, Attorney General, Office of the Attorney General forthe State of Nebraska, Katherine J. Spohn, Special Counsel tothe Attorney General, Wayne Stenehjem, Attorney General,Page 2 of 90

USCA Case #12-1100Document #1488346Filed: 04/15/20143Office of the Attorney General for the State of North Dakota,Margaret I. Olson, Steven C. Kohl, Eugene E. Smary, Sarah C.Lindsey, E. Scott Pruitt, Attorney General, Office of theAttorney General for the State of Oklahoma, P. ClaytonEubanks, Assistant Attorney General, Michael DeWine,Attorney General, Office of the Attorney General for the Stateof Ohio, Dale T. Vitale and Gregg H. Bachmann, AssistantAttorneys General, Robert M. Wolff, Special Counsel, AlanWilson, Attorney General, Office of the Attorney General for theState of South Carolina, James Emory Smith, Jr., AssistantDeputy Attorney General, Mark L. Shurtleff, Attorney General,Office of the Attorney General for the State of Utah, GregAbbott, Attorney General, Office of the Attorney General for theState of Texas, Jon Niermann, Chief, Mark Walters and Mary E.Smith, Assistant Attorneys General, Kenneth T. Cuccinelli, II,Attorney General, Office of the Attorney General for theCommonwealth of Virginia, Patrick Morrisey, AttorneyGeneral, Office of the Attorney General for the State of WestVirginia, Silas B. Taylor, Senior Deputy Attorney General,Jeffrey R. Holmstead, Sandra Y. Snyder, Gregory A. Phillips,Attorney General, Office of the Attorney General for the Stateof Wyoming, Jay A. Jerde, Deputy Attorney General, JackConway, Attorney General, Office of the Attorney General forthe State of Kentucky, Bart E. Cassidy, and Katherine L.Vaccaro.Bill Cobb argued the cause for Industry Petitioners’ SpecificIssues. With him on the briefs were Michael Nasi, Leslie SueRitts, Jeffrey R. Holmstead, Sandra Y. Snyder, Paul D. Clement,Nathan A. Sales, Steven C. Kohl, Eugene E. Smary, Sarah C.Lindsay, Bart E. Cassidy, Katherine L. Vaccaro, John C. Hayes,Jr., Dennis Lane, John A. Riley, Christopher C. Thiele, C. GradyMoore, III, P. Stephen Gidiere, III, and Thomas Lee Casey, III.Sanjay Narayan and Eric Schaeffer argued the causes forPage 3 of 90

USCA Case #12-1100Document #1488346Filed: 04/15/20144Environmental Petitioners. With them on the briefs wereWhitney Farrell, James S. Pew, Neil Gormley, Ann BrewsterWeeks, and Darin Schroeder.David Bookbinder argued the cause and filed the briefs forpetitioner Julander Energy Company.Michael B. Wigmore, Sandra P. Franco, Robin S. Conrad,Rachel Brand, and Sheldon Gilbert were on the brief for amicuscuriae The Chamber of Commerce of the United States ofAmerica in support of Industry Petitioners.Eric G. Hostetler, Matthew R. Oakes, and Amanda S.Berman, Attorneys, U.S. Department of Justice, argued thecauses for respondent. With them on the brief was Wendy L.Blake, Attorney, U.S. Environmental Protection Agency.Melissa Hoffer, Assistant Attorney General, Office of theAttorney General for the Commonwealth of Massachusetts,argued the cause for State and Local Government Intervenors insupport of Respondent. With her on the brief were MarthaCoakley, Attorney General, Office of the Attorney General forthe State of Massachusetts, Tracy Triplett and Carol A. Iancu,Assistant Attorneys General, Kamala D. Harris, AttorneyGeneral, Office of the Attorney General for the State ofCalifornia, Janill L. Richards, Supervising Deputy AttorneyGeneral, Susan L. Durbin, Deputy Attorney General, Joseph R.Biden, III, Attorney General, Office of the Attorney General forthe State of Delaware, Valerie M. Satterfield, Deputy AttorneyGeneral, Thomas L. Miller, Attorney General, Office of theAttorney General for the State of Iowa, David R. Sheridan,Assistant Attorney General, George Jepsen, Attorney General,Office of the Attorney General for the State of Connecticut,Kimberly P. Massicotte and Matthew I. Levine, AssistantAttorneys General, Lisa Madigan, Attorney General, Office ofPage 4 of 90

USCA Case #12-1100Document #1488346Filed: 04/15/20145the Attorney General for the State of Illinois, Matthew J. Dunnand Gerald T. Karr, Assistant Attorneys General, Douglas F.Gansler, Attorney General, Office of the Attorney General forthe State of Maryland, Roberta R. James, Assistant AttorneyGeneral, Michael A. Delaney, Attorney General, Office of theAttorney General for the State of New Hampshire, K. AllenBrooks, Senior Assistant Attorney General, Janet T. Mills,Attorney General, Office of the Attorney General for the Stateof Maine, Gerald D. Reid, Assistant Attorney General, LoriSwanson, Attorney General, Office of the Attorney General forthe State of Minnesota, Max Kieley, Assistant Attorney General,Eric T. Schneiderman, Attorney General, Office of the AttorneyGeneral for the State of New York, Michael J. Myers and KevinP. Donovan, Assistant Attorneys General, Ellen F. Rosenbaum,Attorney General, Office of the Attorney General for the Stateof Oregon, Paul A. Garrahan, Assistant Attorney-in-Charge,Gary K. King, Attorney General, Office of the Attorney Generalfor the State of New Mexico, Stephen R. Farris, AssistantAttorney General, Roy Cooper, Attorney General, Office of theAttorney General for the State of North Carolina, James C.Gulick, Senior Deputy Attorney General, J. Allen Jernigan,Marc Bernstein, and Amy L. Bircher, Special Deputy AttorneysGeneral, William H. Sorrell, Attorney General, Office of theAttorney General for the State of Vermont, Thea J. Schwartz,Assistant Attorney General, George A. Nilson, William R.Phelan, Jr., Peter F. Kilmartin, Attorney General, Office of theAttorney General for the State of Rhode Island, George S.Schultz, Special Assistant Attorney General, Irvin B. Nathan,Attorney General, Office of the Attorney General for the Districtof Columbia, Amy E. McDonnell, Deputy General Counsel,Christopher King, Benna Ruth Solomon, and Jeremy Toth.Sean H. Donahue argued the cause for Public Health,Environmental, and Environmental Justice Group RespondentIntervenors. With him on the brief were Pamela A. Campos,Page 5 of 90

USCA Case #12-1100Document #1488346Filed: 04/15/20146Tomás Carbonell, Ann Brewster Weeks, Darin T. Schroeder,James S. Pew, Neil E. Gormley, Sanjay Narayan, John D.Walke, and John Suttles. Vickie L. Patton entered anappearance.Brendan K. Collins argued the cause for IndustryRespondent Intervenors. With him on the brief were Robert B.McKinstry Jr., Lorene L. Boudreau, and Erik S. Jaffe.Peter S. Glaser, George Y. Sugiyama, F. William Brownell,Lauren E. Freeman, Lee B. Zeugin, Elizabeth L. Horner, DavidB. Rivkin Jr., Lee A. Casey, Mark W. DeLaquil, Andrew M.Grossman, Jeremy C. Marwell, Eric A. Groton, Jeffrey R.Holmstead, and Sandra Y. Snyder were on the brief for IndustryIntervenors in response to Environmental Petitioners. Henry V.Nickel entered an appearance.Peter S. Glaser, George Y. Sugiyama, Hahnah Williams, F.William Brownell, Lauren E. Freeman, Lee B. Zeugin, ElizabethL. Horner, Jeremy C. Marwell, Eric A. Groton, Jeffrey R.Holmstead, Sandra Y. Snyder, Bill Cobb, Michael Nasi, DavidB. Rivkin Jr., Lee A. Casey, Mark W. DeLaquil, and Andrew M.Grossman were on the brief for Intervenor Respondents inOpposition to Brief of Petitioner Julander Energy Company.Wendy B. Jacobs, Adam Babich, and Michael A. Livermorewere on the brief for amici curiae Institute for Policy Integrity,et al. in support of respondent.Before: GARLAND, Chief Judge, and ROGERS andKAVANAUGH, Circuit Judges.Page 6 of 90

USCA Case #12-1100Document #1488346Filed: 04/15/20147PER CURIAM:*1 In 2012, the Environmental ProtectionAgency promulgated emission standards for a number of listedhazardous air pollutants emitted by coal- and oil-fired electricutility steam generating units. See National Emission Standardsfor Hazardous Air Pollutants From Coal- and Oil-Fired ElectricUtility Steam Generating Units and Standards of Performancefor Fossil-Fuel-Fired Electric Utility, Industrial-CommercialInstitutional, and Small Industrial-Commercial-InstitutionalSteam Generating Units, Final Rule, 77 Fed. Reg. 9304 (Feb.16, 2012). In this complex case, we address the challenges tothe Final Rule by State, Industry, and Labor petitioners, byIndustry petitioners to specific aspects of the Final Rule, byEnvironmental petitioners, and by Julander Energy Company.For the following reasons, we deny the petitions challenging theFinal Rule.I.In 1970, Congress enacted § 112 of the Clean Air Act, Pub.L. No. 91-604, § 4(a), 84 Stat. 1676, 1685 (1970), to reducehazardous air pollutants (“HAPs”). See Sierra Club v. EPA, 353F.3d 976, 979 (D.C. Cir. 2004); H. R. REP. NO. 101-490, at 150(1990). The statute defined HAPs as “air pollutant[s] . . . whichin the judgment of the Administrator [of the EnvironmentalProtection Agency (“EPA”)] cause, or contribute to, airpollution which may reasonably be anticipated to result in anincrease in mortality or an increase in serious irreversible, orincapacitating reversible, illness.” § 112(a)(1), 84 Stat. at 1685.In its original form, § 112 required EPA to publish a listcontaining “each hazardous air pollutant for which [it] intendsto establish an emission standard.” § 112(b)(1)(A), 84 Stat. at* Parts I, II, and IV are written by Judge Rogers. Part III iswritten by Judge Kavanaugh, as are his dissenting opinion in PartII.B.2 and his concurring opinion in Part IV.Page 7 of 90

USCA Case #12-1100Document #1488346Filed: 04/15/201481685. EPA then was to promulgate, within 360 days, emissionstandards “provid[ing] an ample margin of safety to protect thepublic health” for each listed HAP, unless EPA found that aparticular listed substance was in fact not hazardous.§ 112(b)(1)(B), 84 Stat. at 1685. Over the next eighteen years,EPA listed only eight HAPs, established standards for onlyseven, and as to these seven addressed only a limited selectionof possible pollution sources. See New Jersey v. EPA, 517 F.3d574, 578 (D.C. Cir. 2008); S. REP. NO. 101-228, at 131 (1989).To remedy the slow pace of EPA’s regulation of HAPs,Congress amended the Clean Air Act in 1990, see Pub. L. No.101-549, 104 Stat. 2531 (1990) (“CAA”), by eliminating muchof EPA’s discretion in the process. See New Jersey, 517 F.3d at578. In the amended § 112, Congress itself listed 189 HAPs thatwere to be regulated, see CAA § 112(b), 42 U.S.C. § 7412(b),and directed EPA to publish a list of “categories andsubcategories” of “major sources” and certain “area sources”that emit these pollutants, CAA § 112(c), 42 U.S.C. § 7412(c).Once listed, a source category may only be delisted (with oneexception not relevant here) if EPA determines that “no source”in that category emits HAPs in quantities exceeding specifiedthresholds. CAA § 112(c)(9)(B), 42 U.S.C. § 7412(c)(9)(B).For each listed “category or subcategory of major sources andarea sources” of HAPs, EPA must promulgate emissionstandards. CAA § 112(d)(1), 42 U.S.C. § 7412(d)(1). Section112(d) provides, as relevant, that emission standardsshall require the maximum degree of reduction inemissions of the hazardous air pollutants subject to thissection (including a prohibition on su