California v. Regan

On September 17, 2020, the D.C. Circuit Court of Appeals administratively stayed U.S. Environmental Protection Agency (EPA) <a href="https://www.federalregister.gov/documents/2020/09/14/2020-18114/oil-and-natural-gas-sector-emission-standards-for-new-reconstructed-and-modified-sources-review">amendments</a> to the 2012 and 2016 new source performance standards (NSPS) for the oil and gas sector. The amendments—which were effective upon their publication in the Federal Register—removed transmission and storage sources from the oil and natural gas source category, rescinded the NSPS for such sources for both volatile organic compounds and methane, and separately rescinded methane requirements for production and processing sources. The amendments were challenged in a petition filed by 20 states, along with Chicago, Denver, and the District of Columbia, and in a second petition filed by 10 environmental groups. The D.C. Circuit issued the administrative stay to allow the court “sufficient opportunity” to consider an emergency motion for stay filed by the environmental groups. After the amendments were stayed, the state and city petitioners filed their own emergency motion. The environmental groups also filed a separate petition challenging <a href="https://www.federalregister.gov/documents/2020/09/15/2020-18115/oil-and-natural-gas-sector-emission-standards-for-new-reconstructed-and-modified-sources">amendments</a> to the NSPS resulting from EPA’s reconsideration of fugitive emissions requirements, well site pneumatic pump standards, requirements for certification of closed vent systems, and provisions to apply for use of an alternative means of emission limitation.

Petitioners challenging the September 2020 EPA rule that repealed significant portions of the new source performance standards (NSPS) for the oil and natural gas sector moved for voluntary dismissal of their petitions for review in the D.C. Circuit after President Biden signed a joint resolution under the Congressional Review Act disapproving the September 2020 rule. The rule removed sources in the transmission and storage segment from the source category, rescinded the NSPS applicable to such sources, and also rescinded methane-specific requirements applicable to production and processing sources. The final rule also adopted an interpretation of Clean Air Act Section 111 that required, as a predicate to establishing NSPS, a determination by EPA that a pollutant causes or contributes significantly to dangerous air pollution.

On June 14, 2021, EPA filed a status report in the case challenging the 2020 rule that repealed portions of EPA’s Clean Air Act regulations for emissions from the oil and gas sector. EPA reported on actions it had taken in its review of the 2020 rule, including opening a public docket, holding training sessions on the rulemaking process, and scheduling listening sessions for June 15-17. EPA said it also was monitoring congressional action on S.J. Res. 14, which would disapprove the 2020 rule under the Congressional Review Act. EPA reported that the Senate passed S.J. Res. 14 on April 28, and that the House Committee on Energy and Commerce approved it on June 10. EPA said it would notify the court if the resolution was signed into law since it would have the effect of terminating EPA’s administrative reconsideration of the rule. In light of these developments, EPA requested that the case continue to be held in abeyance. The House of Representatives subsequently passed the resolution on June 25, and President Biden signed it on June 30.

The D.C. Circuit granted EPA’s motions to hold in abeyance cases that challenged EPA’s amendments to emission standards for new, reconstructed, and modified sources in the oil and gas sector while EPA conducts its review pursuant to Executive Order 13990. There are two rules under review in two sets of cases. Both sets of cases are held in abeyance pending further order of the court.