Central Arizona Water Conservation District v. United States Environmental Protection Agency

Petitioners Central Arizona Water Conservation District (“CAWCD”) and four irrigation districts 1 (collectively “Petitioners” or the “Districts”) challenge an Environmental Protection Agency (“EPA”) Final Rule which requires a 90% reduction in sulfur dioxide (S02) emissions at the Navajo Generating Station (“NGS”) in order to improve winter average visibility in the Grand Canyon National Park (“Grand Canyon”).

Petitioners argue (1) that, because the Final Rule seeks to regulate “regional haze” when EPA has yet to promulgate Phase II implementing regulations addressing regional haze, EPA exceeded the scope of its regulatory authority by issuing the Final Rule, and (2) that the Final Rule constitutes arbitrary and capricious agency action. In addition to responding to Petitioners’ substantive criticisms, EPA asserts that Petitioners lack standing to bring this challenge.

The Final Rule was issued by EPA under 42 U.S.C. §§ 7410 (c)(1), 7491, and is directly appealable to this court under 42 U.S.C. § 7607 (b)(1). Petitioners do have standing to bring this challenge. We hold, however, that EPA acted within its statutory and regulatory authority when it promulgated the Final Rule, and…