Post on 07-Apr-2018
8/3/2019 American Corn Growers v EPA 291_F_3D_1 DC Cir 2002
1/20
Page 1
291 F.3d 1, 54 ERC 1417, 351 U.S.App.D.C. 351, 32 Envtl. L. Rep. 20,658
(Cite as: 291 F.3d 1, 351 U.S.App.D.C. 351)
United States Court of Appeals,
District of Columbia Circuit.
AMERICAN CORN GROWERS ASSOCIATION,
Petitioner,
v.
ENVIRONMENTAL PROTECTION AGENCY,
Respondent.
State of Michigan, Department of Environmental
Quality, et al., Intervenors.
Nos. 99-1348 through 99-1352, 99-1357 through 99-
1359, 01-1111 through 01-1113.
Argued Feb. 25, 2002.
Decided May 24, 2002.
Rehearing and Rehearing En Banc Denied Sept. 19,
2002.
Industry and environmental groups challengedEnvironmental Protection Agency's (EPA) regional
haze regulation promulgated pursuant to Clean Air
Act. The Court of Appeals held that: (1) regulationviolated Clean Air Act by requiring states to engage
in regional rather than source-by-source analysis in
making Best Available Retrofit Technology (BART)
determinations concerning air pollution sources; (2)
EPA did not exceed its authority by adopting goal of
natural visibility and standard of no degradation;
and (3) environmental group's challenge was not ripe.
Regulation sustained in part and vacated in part.
Garland, Circuit Judge, filed opinion concurring
in part and dissenting in part.
West Headnotes
[1] Environmental Law 149E 267
149E Environmental Law
149EVI Air Pollution
149Ek266 Particular Sources of Pollution 149Ek267 k. In General. Most Cited Cases
(Formerly 199k25.6(5.1) Health and
Environment)
Environmental Protection Agency (EPA)
regional haze regulation violated Clean Air Act by
requiring states to engage in regional rather than
source-by-source analysis in deciding whether todesignate air pollution sources as subject to Best
Available Retrofit Technology (BART), and by
requiring regional analysis of anticipated degree of
improvement statutory factor in deciding what
BART controls to place on sources; requirementsinfringed on states' broad authority over BART
determinations granted by Act. Clean Air Act,
169A(b)(2)(A), (g)(2), as amended, 42 U.S.C.A. 7491(b)(2)(A), (g)(2); 40 C.F.R. 51.308(e)(1)(ii)
(B).
[2] Environmental Law 149E 276
149E Environmental Law
149EVI Air Pollution
149Ek275 Particular Pollutants
149Ek276 k. In General. Most Cited Cases
(Formerly 199k25.6(5.1) Health and
Environment)
Environmental Protection Agency (EPA) did not
exceed its authority, in promulgating regional haze
regulation pursuant to Clean Air Act, by adoptinggoal of natural visibility and standard of no
degradation; goal and standard comported with Act's
goal of prevention of any future, and the remedying
of any existing, impairment of visibility. Clean Air
Act, 169A(a)(1, 4), as amended, 42 U.S.C.A.
7491(a)(1, 4); 40 C.F.R. 51.308(d)(1).
[3] Environmental Law 149E 662
149E Environmental Law 149EXIIIJudicial Review or Intervention
149Ek662 k. Ripeness. Most Cited Cases
2011 Thomson Reuters. No Claim to Orig. US Gov. Works.
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American Corn Growers v EPA 291_F_3D_1 DC Cir 2002
2/20
(Formerly 199k25.15(3.2) Health and
Environment)
Court of Appeals' invalidation of Environmental
Protection Agency (EPA) regional haze regulation,based on finding of violation of Clean Air Act inrequirement that states engage in regional rather than
source-by-source analysis of air pollution sources in
connection with imposition of Best Available Retrofit
Technology (BART) controls, rendered unripe
environmental group's claim that regulation's
standards for air-quality improvement were
insufficiently rigorous, since EPA's modification of
regulation's BART provisions could result in changesto challenged standards. Clean Air Act, 169A, as
amended, 42 U.S.C.A. 7491;40 C.F.R. 51.308.
*1**351 On Petitions for Review of an Order of theEnvironmental Protection Agency*2**352 PeterGlaser argued the cause for Industry petitioners and
intervenors on the BART Issues in Case Nos. 99-
1348, 99-1349, 99-1350, 99-1351, 99-1352, 99-1356,
99-1357, 99-1358 and 99-1359. With him on the joint
briefs were Paul M. Seby, Henry V. Nickel, F.
William Brownell,Michael L. Teague,Kevin L. Fast,
David M. Flannery, Kathy G. Beckett, Scott D.
Goldman, Harold P. Quinn, Jr., William H. Lewis,Jr., and Michael A. McCord.
Kevin L. Fast argued the cause for Industry
petitioners in Case Nos. 01-1111, 01-1112 and 01-1113. With him on the joint briefs were Peter Glaser,Paul M. Seby, Henry V. Nickel, F. William
Brownell, andMichael L. Teague.
David S. Baronargued the cause and filed the briefs
for petitioner Sierra Club.
Jennifer M. Granholm, Attorney General, State of
Michigan, Thomas L. Casey, Solicitor General, and
John Fordell Leone, Assistant Attorney General,
were on the briefs for intervenor State of Michigan.
Pamela S. Tonglao, Kenneth C. Amaditz, and H.
Michael Semler, Attorneys, U.S. Department of
Justice, argued the causes for respondents. With them
on the brief was M. Lea Anderson, Attorney, U.S.
Environmental Protection Agency.
Erick Titrud argued the cause for intervenors State of
Maine, State of New Hampshire, State of Vermont,
and Tribal and Environmental intervenors. With him
on the joint brief were Ann Brewster Weeks,VickieL. Patton, William G. Grantham, G. Steven Rowe,
Attorney General, State of Maine, Philip T.McLaughlin, Attorney General, State of New
Hampshire, Maureen D. Smith, Senior Assistant
Attorney General, and William H. Sorrell, Attorney
General, State of Vermont.
Peter Glaser,Henry V. Nickel,F. William Brownell,
Michael L. Teague, Kevin L. Fast, Paul M. Seby,
Harold P. Quinn, Jennifer M. Granholm, Attorney
General, State of Michigan, John Fordell Leone,Assistant Attorney General, David M. Flannery,
Kathy G. Beckett, William H. Lewis, Jr., andMichael A. McCord were on the joint brief for
Industry and State intervenors, in support ofrespondents.
Mark L. Shurtleff, Attorney General, State of Utah,
Fred Nelson, Assistant Attorney General, and Susan
M. McMichael were on the brief for amici curiae
State of Utah and State of New Mexico Environment
Department, in support of respondent EPA.
Before: EDWARDS,RANDOLPH, andGARLAND,
Circuit Judges.
Opinion for the Court filed PER CURIAM.
Opinion concurring in part and dissenting in part
filed by Circuit JudgeGARLAND.
PER CURIAM:
In 1999, the Environmental Protection Agency
promulgated a final rule to address regional haze. See
Regional Haze Regulations, 64 Fed.Reg. 35,714 (July
1, 1999). The Haze Rule calls for states to play the
lead role in designing and implementing regional
haze programs to clear the air in national parks andwilderness areas that have been classified as
mandatory class I Federal areas,FN1 such asYellowstone*3 **353 National Park, Grand Canyon
National Park, and Shenandoah National Park. See40
C.F.R. 81.401-.437 (listing areas that have been
designated as Class I areas where visibility is an
important value). Numerous petitioners now
challenge the Haze Rule. We vacate the rule in part
and sustain it in part.
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American Corn Growers v EPA 291_F_3D_1 DC Cir 2002
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Page 3
291 F.3d 1, 54 ERC 1417, 351 U.S.App.D.C. 351, 32 Envtl. L. Rep. 20,658
(Cite as: 291 F.3d 1, 351 U.S.App.D.C. 351)
FN1.Class I areas include all international
parks, national wilderness areas which
exceed 5,000 acres in size, national
memorial parks which exceed 5,000 acres insize, and national parks which exceed 6,000acres in size and which were in existence on
August 7, 1977. See 42 U.S.C. 7472(a).
The term mandatory class I Federal areas
is defined as Federal areas which may not
be designated as other than class I. Id.
7491(g)(5). At the time the Haze Rule was
promulgated, there were 156 Class I areas
across the country. See 64 Fed.Reg. at35,714.
I. Introduction
Regional haze, as EPA defines it, is visibilityimpairment caused by geographically dispersedsources emitting fine particles and their precursors
into the air. See64 Fed.Reg. at 35,715. The emission
and movement of sulfur dioxide, oxides of nitrogen,
and fine particulate matter from sources, such as
power plants, contribute to haze. See id. Fine
particulate matter scatters and absorbs light. See id.
Haze has degraded visibility in most of the
country's national parks and wilderness areas. See id.
The average visual range in many Class I areas in the
western United States is 100 to 150 kilometers -
which is just one-half to two-thirds the estimatedvisual range that would exist without manmade air
pollution. See id. In most of the eastern United States,
the average visual range is less than 30 kilometers -
or about one-fifth the visual range that would exist
under estimated natural conditions. See id.
Before 1977, the Clean Air Act (the CAA or
the Act) did not elaborate on the protection of
visibility as an air-quality related value. Chevron
U.S.A., Inc. v. EPA, 658 F.2d 271, 272 (5th
Cir.1981). But in 1977, [i]n response to a growing
awareness that visibility was rapidly deteriorating in
many places, such as wilderness areas and nationalparks,id. at 272, Congress added 169A to the Act.See Clean Air Act Amendments of 1977,Pub.L. No.
95-95, 128, 91 Stat. 685, 742 (current version at 42
U.S.C. 7491). Section 169A established as a
national goal the prevention of any future, and the
remedying of any existing, impairment in visibility in
mandatory class I areas which impairment results
from manmade air pollution. See 91 Stat. at 742
(current version at 42 U.S.C. 7491(a)(1)). Congress
directed EPA to issue regulations requiring states tosubmit State Implementation Plans (SIPs)
containing emission limits, schedules of compliance,and other measures necessary to make reasonable
progress toward meeting the national visibility goal.
See 91 Stat. at 743 (current version at 42 U.S.C.
7491(b)(2)). In addition, Congress required states to
address possible visibility impairment caused by
currently-operating large stationary sources whichhad been in operation between 1962 and 1977. See 91
Stat. at 743 (current version at 42 U.S.C. 7491(b)
(2)(A)).
Congress also gave EPA the responsibility ofpromulgating regulations under 169A to assure ...
reasonable progress toward meeting the nationalgoal. See 91 Stat. at 742-43 (current version at 42
U.S.C. 7491(a)(4)). EPA issued its first regulations
in 1980. See 45 Fed.Reg. 80,084 (Dec. 2, 1980). The
1980 visibility regulations, which apply to states
containing at least one Class I area, addressed
visibility impairment reasonably attributable to onesource, or to a small number of sources. See id. at
80,085. EPA limited the reach of the 1980
regulations to impairment attributable to specific
sources and deferred any action on regional haze
attributable to multiple sources located across broad
geographic regions because there was insufficient
data regarding the relationship between emitted pollutants, pollutant transport and visibilityimpairment. See id. at 80,086.
*4**354 In 1990, Congress amended the CleanAir Act again, adding 169B in an attempt to prompt
EPA to further address visibility impairment innational parks and wilderness areas. See Clean Air
Act Amendments, Pub.L. No. 101-549, 816, 104
Stat. 2695 (1990) (current version at 42 U.S.C.
7492). Section 169B requires, among other things,
that EPA undertake research to identify sources
and source regions of visibility impairment in Class
I areas, consider designating transport commissionsto study the interstate movement of pollutants, andestablish a transport commission for the Grand
Canyon National Park. See42 U.S.C. 7492.
EPA established the Grand Canyon Visibility
Transport Commission (GCVTC) in 1991 to assess
information about the adverse impacts on visibility in
2011 Thomson Reuters. No Claim to Orig. US Gov. Works.
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and around sixteen Class I areas on the Colorado
Plateau region and to provide policy
recommendations to EPA to address such impacts.See 56 Fed.Reg. 57,522 (Nov. 12, 1991). The
GCVTC issued its report to EPA in 1996. Then in1997 EPA issued a notice of proposed rulemaking
with regard toregional haze,see 62 Fed.Reg. 41,138
(July 31, 1997), noting that advances in scientific and
technical knowledge, including analyses provided by
the GCVTC, had made it possible for EPA to target
region-wide visibility impairment. After receivingmore than 1,300 comments to the proposed rule, EPA
published the final Haze Rule on July 1, 1999. See64
Fed.Reg. at 35,714. The final Haze Rule reaches all
states because, EPA concluded, all states contain
sources whose emissions are reasonably anticipated
to contribute to regional haze in a Class I area. Id. at
35,721. Under the Haze Rule, a state must developand submit a SIP that provides for reasonable
progress toward achieving natural visibility
conditions in the national parks and wilderness areasin that state. See 40 C.F.R. 51.308(d)(1). SIPs
addressing regional haze in an attainment area must
be submitted within one year of the date the area is
designated as attainment, and revised SIPs for
non-attainment areas must be submitted within
three years after the designation. See id. 51.308(b)
(1)-(2).
The Haze Rule, for the most part, does not
specify what control measures a state mustimplement in its initial SIP. See 64 Fed.Reg. at35,721(noting that the determination of what specific
control measures must be implemented can only be
made by a State once it has conducted the necessary
technical analyses of emissions, air quality, and the
other factors that go into determining reasonable
progress). But the rule does require states to: (1)
provide for an improvement in visibility in the 20
percent most impaired days; (2) ensure that there isno degradation in visibility during the 20 percent
clearest days; and (3) determine the annual rate ofvisibility improvement that would lead to natural
visibility conditions in 60 years. See 40 C.F.R. 51.308(d)(1); see also id. 51.301; 64 Fed.Reg. at
35,734. A state may not adopt a rate of improvement
that would achieve natural visibility conditions in
more than 60 years unless it demonstrates that the 60-
year rate is unreasonable. See40 C.F.R. 51.308(d)
(1)(ii).
The Haze Rule also provides that each state must
develop a long-term strategy for achieving its
visibility improvement goals. This strategy mustinclude the identification of all major stationary
sources subject to Best Available RetrofitTechnology (BART) requirements. See id.
51.308(e). In identifying sources subject to BART,
the Haze Rule calls for states to use a group rather
than a source-by-source approach. See64 Fed.Reg. at
35,740 (providing that a state should find a source
subject to BART if it can be shown that the sourceemits pollutants *5 **355within a geographic area
from which pollutants can be emitted and transported
downwind to a Class I area) (italics added). In
addition, when establishing emission limits for
BART sources, states must consider the improvement
in visibility that would result if the technology were
used at allcomparable BART sources (rather than theimprovement that a particular device at a particularsource would accomplish). See40 C.F.R. 51.308(e)
(1)(ii)(B).
The various petitioners and intervenors in this
consolidated case raise numerous challenges to theHaze Rule. In Part II we address the claim that EPA
acted contrary to law in establishing a group rather
than a source-by-source approach to BART
determinations. In Part III we address the claims of
industry petitioners in Case Nos. 01-1111, 01-1112,
and 01-1113 that EPA acted without legal authority
and in an arbitrary and capricious manner inpromulgating the natural visibility goal and the nodegradation requirement in the regional haze
regulations. Finally, in Part IV, we address the
challenges raised by the Sierra Club - namely that
EPA failed to set reasonable criteria for measuring or
assuring reasonable progress, and that EPA acted
contrary to law in extending the statutory deadline for
submission of state haze control plans.
II. BART Issues
Under 169A of the Act, each state must review
all BART-eligible sources -meaning all major
stationary sources built between August 1962 andAugust 1977 - to determine whether the sources emitany air pollutant which may reasonably be
anticipated to cause or contribute to any impairment
of visibility in a Class I area.FN242 U.S.C. 7491(b)
(2)(A). After deciding that a BART-eligible source
emits a pollutant which may reasonably be
anticipated to cause or contribute to Class I visibility
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American Corn Growers v EPA 291_F_3D_1 DC Cir 2002
5/20
Page 5
291 F.3d 1, 54 ERC 1417, 351 U.S.App.D.C. 351, 32 Envtl. L. Rep. 20,658
(Cite as: 291 F.3d 1, 351 U.S.App.D.C. 351)
impairment, the state then must determine what is the
best available retrofit technology for controlling
emissions from that source. See id. Under the Act,states must take the following five factors into
consideration when deciding what BART controls toplace on a source:
FN2.A major stationary source is a source
that has the potential to emit 250 tons or
more of any pollutant. See 42 U.S.C.
7491(g)(7).
the costs of compliance, the energy and nonair
quality environmental impacts of compliance, any
existing pollution control technology in use at the
source, the remaining useful life of the source, and
the degree of improvement in visibility which may
reasonably be anticipated to result from the use ofsuch technology.
Id. 7491(g)(2).
The Haze Rule interprets and implements thesestatutory BART provisions in two main ways. First,
the Haze Rule requires states to find that a BART-
eligible source is reasonably anticipated to cause or
contribute to regional haze if it can be shown that
the source emits pollutants within a geographic area
from which pollutants can be emitted and transported
downwind to a Class I area. 64 Fed.Reg. at 35,740
(italics added). In other words, states must subject
BART-eligible sources to BART requirements evenabsent empirical evidence of that source's individualcontribution to visibility impairment in a Class I area
so long as the source is located within a region that
may contribute to visibility impairment. See id. at
35,740; see also Br. for EPA at 26-27. EPA
explained in the preamble to the Haze Rule that this
sort of collective contribution approach was
consistent with that taken in the programs for acid
rain and ozone, *6 **356 programs which alsoaddress regional air quality problems caused by
transported pollutants. 64 Fed.Reg. at 35,740;seealso63 Fed.Reg. at 57,376.
Second, the Haze Rule provides that once a state
has decided that a particular source is subject to
BART and is considering what BART controls to
place on that source, the state must analyze the
degree of visibility improvement that would be
achieved in each mandatory Class I Federal area as a
result of the emission reductions achievable from all
sources subject to BART located within the region
that contributes to visibility impairment in the Class I
area. 40 C.F.R. 51.308(e)(1)(ii)(B) (italics added).This means that of the five statutory factors to be
considered by states when determining BARTcontrols, see 42 U.S.C. 7491(g)(2), only four
factors (the costs of compliance, the environmental
impacts of compliance, any existing pollution control
technology in use at the source, and the remaining
useful life of the source) are considered on a source-
specific basis. The Haze Rule requires states toconsider the fifth statutory factor (the degree in
improvement) on a group or area wide basis.
Industry petitioners attack EPA's decision to use
a group rather than a source-by-source BARTapproach, arguing that the language, statutory
structure, and legislative history of 169A make itclear that the Haze Rule runs afoul of the Act. See Br.
for Industry Pet'rs and Intervenor in Case Nos. 99-
1348, et al. at 13. For the reasons that follow, we
grant the petition for review, vacate the BART rules,
and remand to EPA.
[1] In the Haze Rule, EPA extracts one of the
five statutory factors listed in 169A(g)(2) and treats
it differently than the other four. See64 Fed.Reg. at35,741 (providing that only the degree in
improvement in visibility that would be expected at
each Class I area as a result of imposing BART is to
be considered on a group rather than a source-specific basis). In effect, EPA bifurcates the states'
determination of the appropriate BART emission
limitations for specific sources. States must first
estimate possible emission reductions on a source-by-source basis based on the application of the
technology, the cost, time for compliance, energy andnonair environmental impacts, and the remaining
useful life of the source. See id.;see also40 C.F.R.
51.308(e)(1)(ii)(A). Taking these factors into
account allows the State to arrive at an estimate of
the best system of retrofit control technology for a
particular source. 64 Fed.Reg. at 35,741.States must
then calculate the degree in improvement in visibilitythat would be expected at each Class I area as a resultof imposing BART on allsources subject to BART.
See id.;see also40 C.F.R. 51.308(e)(1)(ii)(B).
EPA argues that its bifurcated approach to
determining appropriate BART controls is
permissible because 169A(g)(2) is unclear about
2011 Thomson Reuters. No Claim to Orig. US Gov. Works.
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American Corn Growers v EPA 291_F_3D_1 DC Cir 2002
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how a state must analyze anticipated visibility
improvement. See Chevron U.S.A., Inc. v. Natural
Res. Def. Council, 467 U.S. 837, 842-43, 104 S.Ct.
2778, 2781-82, 81 L.Ed.2d 694 (1984). We cannot
agree. The Haze Rule's splitting of the statutoryfactors is consistent with neither the text nor the
structure of the statute. See42 U.S.C. 7491(g)(2).
All five 169A(g)(2) factors inform the states'
inquiries into what BART controls are appropriate for
particular sources. Although no weights were
assigned, the factors were meant to be consideredtogether by the states. The language of 169A(g)(2)
can be read in no other way. To treat one of the five
statutory factors in such a dramatically different
fashion distorts the judgment Congress directed the
states to make for each BART-eligible source. This is*7 **357 most apparent with respect to the states'
duty to take into account the costs of compliance indeciding not only whether to order an individualsource to install any new pollution control
equipment, but also what type of equipment -or as thestatute puts it, what type of retrofit technology.
How is a state to determine what is too costly (and
what is not) for a particular source? The statute
answers that the state must consider the degree of
improvement in visibility in national parks and
wilderness areas that would result from the source's
installing and operating the retrofit technology. EPA
has a far different answer: in assessing the cost ofcompliance imposed on a source, the state may not
consider the degree to which new equipment at aparticular source would help cure the haze in some
distant national park. Under EPA's take on the
statute, it is therefore entirely possible that a source
may be forced to spend millions of dollars for new
technology that will have no appreciable effect on the
haze in any Class I area.FN3A similar problem ariseswhen a state considers, as it must, the existing
pollution control technology in use at the source.
How is a state to decide whether the source already
has installed sufficient devices without determining
how much, if at all, the source is contributing to
visual impairment in downwind Class I areas? As the
industry petitioners correctly note, there is no point
during the Haze Rule's BART determination in
which it could be demonstrated that the degree of
improvement in visibility obtained from installing aparticular set of emissions controls at a source with
exceedingly low or even merely theoretical
visibility impacts is not justified by the cost of BART
in light of those low or theoretical impacts. Br. for
Industry Pet'rs and Intervenor in Case Nos. 99-1348,
et al. at 17-18.
FN3. EPA's rule requires states to consider
the cost of compliance in terms of the likely
emission reductions which would beachieved by the imposition of BART, nomatter whether this reduction would
enhance visibility in downwind national
parks. See64 Fed.Reg. at 35,741 (explaining
that the four factors, including cost, should
be taken into account for each source subject
to BART in order to compare tradeoffs
between the control efficiencies and costs
associated with various controlalternatives). The preamble to the rule
provides very little guidance about howstates are to calculate the degree of
improvement in visibility under the regimeEPA contemplates. The preamble tells the
states only this:
To calculate the degree of improvement in
visibility that would be expected at each
Class I area as a result of imposing BART
on all sources subject to BART, the State
should estimate the possible emissions
reductions resulting from the applicationof BART at all subject sources located
within the region that contributes to
visibility impairment in the Class I area.
The State should work on its own or inconjunction with other States, such as a
regional planning body, to determine the
geographic scope of the region that
contributes to each Class I area. TheStates should consult with one another to
determine the emission reductionsachievable from sources subject to BART
in other states.
Id.
The Haze Rule's treatment of 169A(g)(2)'s
degree-of-improvement calculation is, the industrypetitioners argue, not the only respect in which the
rule is inconsistent with the Act. As they see it, the
Haze Rule also unlawfully constrains the states'
statutory authority because under the Act it is the
states - not EPA - who must determine which BART-
eligible sources should be subject to BART. See 42
U.S.C. 7491(b)(2)(A)(providing that each BART-
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Page 7
291 F.3d 1, 54 ERC 1417, 351 U.S.App.D.C. 351, 32 Envtl. L. Rep. 20,658
(Cite as: 291 F.3d 1, 351 U.S.App.D.C. 351)
eligible source that, as determined by the State ...
emits any air pollutant which may reasonably be
anticipated to cause or contribute to any impairmentof visibility, shall install and operate the best
available retrofit technology (italics *8 **358added));see also id. 7491(g)(2) (listing the factors
that the State ... shall take into consideration in
determining BART controls (italics added)).
We agree with these petitioners that the Haze
Rule's BART provisions are inconsistent with the
Act's provisions giving the states broad authority over
BART determinations. See id. 7491(b)(2)(A); see
alsoid. 7491(g)(2). The Haze Rule ties the states'hands and forces them to require BART controls at
sources without any empirical ev