NOTICE: This opinion is subject to
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SUPREME COURT OF THE UNITED STATES
_________________
No. 23–1229
_________________
ENVIRONMENTAL PROTECTION AGENCY, PETITIONER
v. CALUMET SHREVEPORT REFINING, L.L.C., et al.
on writ of certiorari to the united states
court of appeals for the fifth circuit
[June 18, 2025]
Justice Thomas delivered the opinion of the
Court.
The Clean Air Act (CAA) establishes a tripartite
system for determining venue in CAA litigation. Challenges to
“nationally applicable” Environmental Protection Agency (EPA)
actions belong in the U. S. Court of Appeals for the
D. C. Circuit, while challenges to “locally or regionally
applicable” EPA actions ordinarily belong in a regional Circuit. 42
U. S. C. §7607(b)(1). But, the CAA makes an exception for
local or regional actions that are “based on a determination of
nationwide scope or effect” and accompanied by an EPA finding of
this basis, which also must be challenged in the D. C.
Circuit.
Ibid. Applying this framework to EPA’s 2022 denials
of certain small refineries’ exemption petitions, we hold that the
refineries’ challenges belong in the D. C. Circuit. EPA’s
denials are only locally or regionally applicable, but they fall
within the “nationwide scope or effect” exception.
I
A
Section 7607(b)(1)—the CAA’s venue
provision—governs where petitioners should file challenges to EPA
actions under that statute. As originally enacted, §7607(b)(1)
dictated venue only for an enumerated subset of EPA actions.
Certain actions with a national reach, such as “any national
primary or secondary ambient air quality standard” (NAAQS) were
reviewable only in the D. C. Circuit. §1857h–5(b)(1) (1970
ed.). Area-specific “implementation plan[s]” went to “the
appropriate” regional Circuit.
Ibid. Any other unmentioned
actions could be heard only in district courts through their
general grant of federal-question jurisdiction.
Harrison v.
PPG Industries, Inc.,
446 U.S.
578, 584 (1980); see 28 U. S. C. §1331.
In 1977, Congress replaced this patchwork system
with the CAA’s current scheme, which makes all EPA actions directly
reviewable in a federal court of appeals. 91Stat. 776 (codified as
amended at 42 U. S. C. §7607(b)(1)). The amended statute
specifies that, in addition to NAAQS and other enumerated actions,
“any other nationally applicable . . . final action
taken” by EPA under the CAA may be reviewed only in the D. C.
Circuit. §7607(b)(1). And, in addition to implementation plans,
“any other final action of [EPA] under this chapter . . .
which is locally or regionally applicable” ordinarily may be
reviewed only in a regional Circuit.
Ibid. Congress has
since amended the CAA to specify additional kinds of actions that
fall within these two categories. 91Stat. 1404; 104Stat. 2681.
Congress also created a third venue category in
the 1977 amendments. This category provided an exception to the
default rule that locally or regionally applicable actions should
be reviewed in the regional Circuits. Congress instructed that a
locally or regionally applicable action must be reviewed in the
D. C. Circuit “if [it] is based on a determination of
nationwide scope or effect” and “if in taking such action [EPA]
finds and publishes that such action is based on such a
determination.” §7607(b)(1).
B
The EPA actions at issue in this case relate
to the CAA’s renewable fuel program (RFP). The RFP “requires most
domestic refineries to blend a certain amount of ethanol and other
renewable fuels into the transportation fuels they produce.”
HollyFrontier Cheyenne Refining, LLC v.
Renewable Fuels
Assn., 594 U.S. 382, 385 (2021). Each covered refinery’s
precise obligation turns on its proportional share of various
“nationwide volume mandates.”
Id., at 385–386; see
§§7545(
o)(2)(A)(i), (
o)(3); 40 CFR §80.1407(a)
(2024).
Covered refineries demonstrate compliance
through a system of Renewable Identification Number credits (RINs).
See 40 CFR §§80.1425, 80.1426(a). A refinery generates RINs
whenever it blends renewable fuels, §80.1426(a), and refineries may
also buy and sell RINs, 42 U. S. C.
§7545(
o)(5)(B). Thus, each year, a refinery may show
compliance “thanks to its own blending efforts, the purchase of
credits from someone else, or a combination of both.”
HollyFrontier, 594 U. S., at 386.
The CAA contains a phased exemption scheme for
small refineries—
i.
e., refineries whose “average
aggregate daily crude oil throughput for a calendar year
. . . does not exceed 75,000 barrels.”
§7545(
o)(1)(K). The scheme exempted all small refineries
from RFP compliance until 2011. §7545(
o)(9)(A)(i). It then
required EPA to extend this blanket exemption, for at least two
years, for all small refineries found by a Department of Energy
study to face “disproportionate economic hardship” if subjected to
the RFP’s obligations. §7545(
o)(9)(A)(ii). Finally, the
scheme allows a small refinery to “at any time petition [EPA] for
an extension of [its] exemption . . . for the reason of
disproportionate economic hardship.” §7545(
o)(9)(B)(i). We
interpreted this last provision in
HollyFrontier, holding
that a small refinery may obtain an “extension” even after its
original exemption has lapsed.
Id., at 396.
C
This case arose in the aftermath of
HollyFrontier. Pending that decision, the D. C. Circuit
had been holding in abeyance challenges to EPA’s resolution of 36
small refineries’ exemption petitions for the 2018 compliance year.
Afterwards, that court granted EPA’s motion for remand without
vacatur, so that EPA could reconsider its orders in light of the
HollyFrontier litigation. Order in
Sinclair Wyoming
Refining Co. v.
EPA, No. 19–1196 etc. (CADC, Dec. 8,
2021), p. 3. The D. C. Circuit instructed EPA to issue
its new decisions within 120 days.
Ibid.
Shortly thereafter, EPA noticed for public
comment a proposal to deny all pending exemption petitions. 86 Fed.
Reg. 71000 (2021). EPA’s notice set out two principles.
First, EPA offered its interpretation of “disproportionate
economic hardship,” the CAA’s threshold for an exemption petition
to be granted. §7545(
o)(9)(B)(i). On EPA’s view, that phrase
covers only hardship that is caused by RFP compliance. App. in No.
22–60266 etc. (CA5), pp. 545–548.
Second, EPA theorized
that, as a matter of economics, small refineries ordinarily do not
suffer disproportionate economic hardship as a result of the RFP
because “RIN costs are fully passed through to consumers.”
Id., at 549; see
id., at 548–584. Based on this “RIN
passthrough” theory, EPA proposed denying all pending petitions “by
finding the petitioning refineries do not face [disproportionate
economic hardship] caused by compliance with their [RFP]
obligations.” 86 Fed. Reg. 71000.
After receiving comments, EPA followed through
and denied the pending exemption petitions in two omnibus notices.
EPA issued the first in April 2022 to deny the 36 petitions subject
to the D. C. Circuit’s deadline. 87 Fed. Reg. 24300. EPA
issued the second in July 2022, to deny an additional 69 petitions
from the 2016 to 2021 compliance years.
Id., at 34874. In
both notices, EPA relied primarily on the principles from its
proposal—namely, its statutory interpretation of “disproportionate
economic hardship” and its RIN passthrough theory. App. to Pet. for
Cert. 100a, 107a, 242a, 249a. EPA treated the passthrough theory as
creating a presumption against granting exemptions, and it examined
the petitioning refineries’ evidence regarding their specific
circumstances to confirm that none of the refineries had rebutted
this presumption. See
id., at 107a–108a, 163a–168a,
249a–250a, 305a–310a.
EPA also asserted in the denial notices that its
denials were reviewable only in the D. C. Circuit. According
to EPA, the notices were “ ‘nationally applicable’ ”
actions under §7607(b)(1).
Id., at 187a, 328a.
Alternatively, if the actions were only “locally or regionally
applicable,” then EPA invoked the exception for actions “based on a
determination of ‘nationwide scope or effect.’ ”
Ibid.
EPA included in both notices a finding that its new statutory
interpretation and RIN passthrough theory supplied the relevant
determinations of nationwide scope or effect.
Id., at
187a–188a, 329a.
Notwithstanding EPA’s position, small refineries
challenged these denials in a host of regional Circuits. Agreeing
with EPA that the litigation belonged in the D. C. Circuit,
most of these Circuits either dismissed the petitions for improper
venue or transferred them to the D. C. Circuit.[
1]
The Fifth Circuit took a different approach.
Evaluating the petitions filed by six small refineries (respondents
here), the Fifth Circuit held that the litigation was properly
before it. The majority rejected the arguments for transfer raised
by EPA and a group of intervenors, reasoning that EPA’s notices
were merely locally or regionally applicable actions, because their
“
legal effect” was limited to the petitioning refineries. 86
F. 4th 1121, 1131–1132 (2023). And, contra EPA, the notices
were not based on any determination of nationwide scope or effect.
Both EPA’s new interpretation and its RIN passthrough theory
“fail[ed] to provide the agency with a sufficient basis to
adjudicate exemption petitions,” because EPA still looked to
refinery-specific facts before it issued its denials.
Id.,
at 1133. Accordingly, the case properly belonged in the Fifth
Circuit, and the majority proceeded to rule against EPA on the
merits, vacating and remanding EPA’s denials for further
consideration.
Id., at 1133, 1142.
Judge Higginbotham dissented on venue grounds.
In his view, EPA’s denial notices were nationally applicable
because they applied throughout the country: EPA applied a
consistent approach to small refineries spanning “eighteen
different states, in the geographical boundaries of eight different
circuit courts.”
Id., at 1143–1144. And, if the notices were
only locally or regionally applicable, then EPA was correct to find
that the “nationwide scope or effect” exception applied: EPA’s
statutory interpretation and its passthrough theory were “core
determinations” that have nationwide scope or effect in that they
“are applicable to all small refineries no matter the location or
market in which they operate.”
Id., at 1145. We granted
certiorari to clarify where venue properly lies. 604 U. S. ___
(2024).
II
Section 7607(b)(1) creates a two-step inquiry
for determining venue. At the first step, we assess whether an EPA
action is nationally applicable, or only locally or regionally
applicable. If the action is nationally applicable, then our
inquiry ends: The case belongs in the D. C. Circuit. If the
action is locally or regionally applicable, then we proceed to the
second step. There, we ask whether the “nationwide scope or effect”
exception applies to override the default rule that locally or
regionally applicable actions belong in the regional Circuits.
Turning to §7607(b)(1)’s first step, we hold that the actions
before us are only locally or regionally applicable.
A
To properly categorize EPA’s actions at the
first step, we must determine what the relevant “action” is, and
what it means for an action to be “nationally applicable” as
opposed to “locally or regionally applicable.” Once those
principles are clarified, the categorization here is
straightforward.
1
Because §7607(b)(1) pegs venue to the scope of
the EPA action being challenged, our threshold task is to identify
the “action” at issue. To do so, we must read “action” in its
context. That word means “a thing done.” Webster’s Third New
International Dictionary 21 (1976) (Webster’s); see also Black’s
Law Dictionary 26 (5th ed. 1979) (Black’s) (“something done”). But,
we could define the “thing done” by EPA in different ways. Both
EPA’s denials of each individual exemption petition and its
aggregation of those denials into omnibus notices are in a sense
things done. The former is an “activity the Clean Air Act allows
the EPA to take,” while the latter is how EPA has chosen to
undertake that activity.
Kentucky v.
EPA, 123
F. 4th 447, 460 (CA6 2024).
To determine which framing matters for purposes
of §7607(b)(1), we look to the example “actions” this provision
enumerates. Section 7607(b)(1) lists various examples of EPA
actions that qualify as either “nationally applicable” or “locally
or regionally applicable.” For both these terms, it then provides a
catchall for “any other” “final action.” And, we “interpret a
‘general or collective term’ . . . in light of any
‘common attribute[s]’ shared by” statutory examples of that term.
Southwest Airlines Co. v.
Saxon, 596 U.S. 450, 458
(2022).
The enumerated “actions” in §7607(b)(1) make
clear that this provision “treats each activity the Clean Air Act
allows the EPA to take as a distinct ‘action.’ ”
Kentucky, 123 F. 4th, at 460. These “actions” all refer
to particular exercises of EPA authority undertaken pursuant to
particular CAA provisions. For instance, the example of a NAAQS
must be understood by reference to §7409(a), which directs EPA to
issue a NAAQS “for each air pollutant,” and thus indicates that
each pollutant-specific standard is its own “action.” Likewise,
§7607(b)(1)’s example of EPA’s approval of an “implementation plan
under section 7410” must be read in light of §7410, which makes
clear that an implementation plan is a proposal “submitted by a
State,” and thus indicates that EPA’s approval decision is state
specific. §7410(a)(2). In each case, the enumerated EPA “action” is
defined by reference to the substantive authority under which EPA
is acting. See
id., at 461.
Accordingly, for both §7607(b)(1)’s enumerated
examples and “any other . . . final action taken” by EPA
“under this chapter,” we must look to the authorizing CAA provision
to identify the “action” at hand. This provision makes the CAA’s
framing of the relevant “action” controlling, regardless of how EPA
chooses to package its decisions in the Federal Register.[
2]
2
The next question is whether a given action is
“nationally applicable” or only “locally or regionally applicable.”
Because §7607(b)(1) does not define those terms, we presumptively
give those terms their ordinary meaning.
Burrage v.
United States,
571 U.S.
204, 210 (2014). The word “ ‘[n]ational’ contemplates an
activity with a nationwide scope,” while the words “local” and
“regional” relate only to particular “place[s]” or regions. See
Black’s 845, 923. And, the word “applicable” requires us to ask
what the EPA action in question “ ‘ha[s] reference to.’ ”
Kentucky, 123 F. 4th, at 459. Put another way, we ask
whether the action “[o]n its face” applies throughout the entire
country, or only to particular localities or regions.
Sierra
Club v.
EPA, 926 F.3d 844, 849 (CADC 2019).
The statutory context supplied by §7607(b)(1)’s
enumerated examples confirms the correctness of this
ordinary-meaning approach. The actions that §7607(b)(1) identifies
as “nationally applicable” facially apply nationwide. For example,
courts have identified a NAAQS—a “ ‘
national primary or
secondary ambient air quality standard’ ”—as “[t]he textbook
example of nationally applicable action.”
Sierra Club v.
EPA, 47 F. 4th 738, 743 (CADC 2022). Conversely, the
actions that the CAA enumerates as “locally or regionally
applicable” all have more particularized reach. For instance, “the
prototypical ‘locally or regionally applicable’ action” is EPA’s
approval of a state implementation plan, which, as explained, is
state specific.
American Road & Transp. Builders Assn.
v.
EPA, 705 F.3d 453, 455 (CADC 2013) (majority opinion of
Kavanaugh, J.);
supra, at 8. Because catchall “clauses are
to be read as bringing within a statute categories similar in type
to those specifically enumerated,” the examples make clear that the
ordinary meaning of the terms “nationally applicable” and “locally
or regionally applicable” controls.
Federal Maritime Comm’n
v.
Seatrain Lines, Inc.,
411 U.S.
726, 734 (1973).[
3]
3
Applying these principles here, we treat each
EPA denial of a refinery’s exemption petition as its own “action”
for venue purposes. And, EPA’s denial of a single refinery’s
petition plainly is only locally or regionally applicable.
This conclusion follows from how the CAA defines
the submission and evaluation of an RFP exemption petition. The CAA
allows “[a] small refinery” to “at any time petition [EPA] for an
extension of [its] exemption” from RFP obligations.
§7545(
o)(9)(B)(i). EPA, in turn, is to “evaluat[e] a
petition” and then “act on any petition submitted . . .
not later than 90 days after the date of receipt of the petition.”
§§7545(
o)(9)(B)(ii)–(iii). Thus, the CAA pegs EPA’s
“actions” under the exemption provision by reference to each
individual exemption petition.
Against this backdrop, our classification
decision is straightforward. By definition, EPA’s denial of a
single refinery’s exemption petition only applies to that refinery,
which is a particular entity located in a particular place. That
limited reach makes EPA’s denials paradigmatically “locally or
regionally applicable” actions. See
Sierra Club, 926
F. 3d, at 849.
B
We are unpersuaded by EPA’s and the
intervenors’ counterarguments. EPA proffers its omnibus denial
notices as the relevant “actions” on the ground that it has the
discretion to structure its decisions. According to EPA, it is free
to “aggregate similar petitions for joint resolution” in a single
“action”—here, its omnibus Federal Register notices—given its right
as an agency “ ‘to fashion [its] own rules of procedure and to
pursue methods of inquiry capable of permitting [it] to discharge
[its] multitudinous duties.’ ” Brief for Petitioner 26–27
(quoting
FCC v.
Pottsville Broadcasting Co.,
309 U.S.
134, 143 (1940)). But, whatever discretion EPA has to manage
its internal affairs, Congress conclusively defined the term
“action” in §7607(b)(1) to focus on the specific statutory
authority EPA is exercising.
Tellingly, EPA’s position that it can control
the unit of “action” used to determine venue lacks any statutory
limiting principle. If EPA had free rein to group decisions into a
single “action” for venue purposes, then it could bundle even
unrelated matters into one Federal Register pronouncement that is,
in the aggregate, nationally applicable. Such a possibility would
effectively give EPA a veto power over venue under the CAA. We see
no reason to read §7607(b)(1) to permit such gamesmanship. Absent
indication that Congress meant to give a party unfettered control
over venue, we will not read a venue provision to confer such broad
discretion. Cf.
Deal v.
United States,
508 U.S.
129, 133–134 (1993) (disfavoring a reading that would “give a
prosecutor unreviewable discretion” as to a sentencing
enhancement’s applicability).
Because EPA does not dispute that the actions
here can be nationally applicable only if it is right that the
omnibus denial notices are the relevant “actions,” we need not
resolve EPA’s remaining arguments. At a minimum, however, we note
that EPA’s theory for distinguishing between nationally applicable
and locally or regionally applicable actions cannot withstand
scrutiny. EPA argues that any agency action is nationally
applicable if it affects more than one Circuit. But, as we have
recognized, the term “nationally applicable” bears its ordinary
meaning,
supra, at 8–9, and EPA’s view would render actions
with a plainly local or regional focus “nationally applicable”
simply because the locality or region at issue straddles Circuit
lines. For example, some EPA air quality control regions cover
metropolitan areas that extend into two Circuits. It would defy
credulity to say that an EPA action regarding such a region would
therefore be nationally applicable rather than locally or
regionally applicable. Cf. Brief for Small Refinery Respondents 41
(“Can there be any doubt that an EPA disapproval of a regional
implementation plan for only Region 90 (Metropolitan Kansas City)
is a ‘regionally applicable’ action . . . , even
though that action touches both the Eighth and Tenth
Circuits? ”). Whatever the precise line should be, see
n. 3,
supra, EPA’s line cannot be it.
EPA justifies its position based on
§7607(b)(1)’s language equating regional Circuit review with review
in “
the appropriate circuit.” §7607(b)(1) (emphasis added).
To be reviewable only in a single “appropriate circuit,” EPA
contends, the category of “locally or regionally applicable”
actions must be limited to those actions affecting only one
Circuit. But, in the absence of other evidence, §7607(b)(1)’s use
of the definite article “the” is too thin a reed to support EPA’s
conclusion. See 1 U. S. C. §1 (directing that “words
importing the singular include and apply to several persons,
parties, or things” “unless the context indicates otherwise”).
Finally, we find no merit in the intervenors’
arguments for why the denial of an individual refinery’s exemption
petition should still be considered nationally applicable.
According to the intervenors, the individual denials are nationally
applicable because they have follow-on effects for the amount of
renewable fuel that must be produced under the RFP and because EPA
in issuing the denials announced a new standard for adjudicating
exemption petitions. But, again, we determine an action’s range of
applicability by “look[ing] only to the face of the [action],
rather than to its practical effects.”
American Road &
Transp. Builders Assn., 705 F. 3d, at 456. Any follow-on
implications of EPA’s denials have no bearing on our analysis of
their facial applicability. Cf.
Sierra Club, 47 F. 4th,
at 744 (“ The fact that ‘EPA’s interpretive reasoning’ may
have ‘precedential effect in future EPA proceedings . . .
does not make [an action] nationally applicable’ ”).
III
Because we conclude that EPA’s actions were
only locally or regionally applicable, we must proceed to the
second step of the §7607(b)(1) inquiry. That is, we ask whether the
“nationwide scope or effect” exception applies to override the
default of regional Circuit review for locally or regionally
applicable actions. This exception channels an action to the
D. C. Circuit if (1) it “is based on a determination of
nationwide scope or effect,” and (2) “in taking such action [EPA]
finds and publishes that such action is based on such a
determination.” §7607(b)(1). Here, all agree that the second
requirement is satisfied: EPA included the necessary finding in
both its April and June denial notices.
Supra, at 5.
Accordingly, the question before us is whether EPA’s exemption
denials were “based on a determination of nationwide scope or
effect.” We conclude that they were.
A
Here too, we begin by laying out the framework
for deciding whether an action is “based on a determination of
nationwide scope or effect.” We conclude that this requirement is
met if such a determination supplies a core justification for EPA’s
action and that courts should evaluate the basis for EPA’s
determinations
de novo. Applying that framework, we
hold that this case is one in which the “nationwide scope or
effect” exception applies.
1
To understand the phrase “based on a
determination of nationwide scope or effect,” we again turn to
ordinary meaning.
Burrage, 571 U. S., at 210. In
particular, we look to the plain meaning of this phrase’s component
words, which are all terms of everyday usage. And, we read these
words “in their context and with a view to their place in the
overall statutory scheme.”
Davis v.
Michigan Dept. of
Treasury,
489 U.S.
803, 809 (1989).
To begin, a “determination” is the “settling and
ending of a controversy,” or “the resolving of a question by
argument or reasoning.” Webster’s 616; see also 4 Oxford English
Dictionary 548 (2d ed. 1989) (“[t]he decision arrived at or
promulgated; a determinate sentence, conclusion, or opinion”). In
an EPA action, EPA’s underlying “determinations are the
justifications [it] gives for the action,” which “can be found in
[its] explanation of its action.”
Texas v.
EPA, 829
F.3d 405, 419 (CA5 2016).
In turn, a determination’s “scope” and “effect”
refer, respectively, to its “formal ‘area’ of operation” and to its
“ ‘operative influence.’ ”
Kentucky, 123
F. 4th, at 465; see,
e.
g., American Heritage
Dictionary 1164 (1969) (defining “scope” as the “area covered by a
given activity or subject”); Webster’s 724 (defining “effect” as
“something that is produced by an agent or cause”). An agency’s
determinations are of “nationwide” scope or effect if they apply
“throughout [the] entire nation.”
Id., at 1505. Taken
together, an agency action involves determinations of nationwide
“scope” if they apply throughout the country “as a legal matter
(de jure)” and determinations of nationwide “effect” if they
so apply “as a practical one (de facto).”
Kentucky, 123
F. 4th, at 465.
Of course, nearly all agency actions can be said
to involve justifications of nationwide reach or consequence. For
example, most EPA actions presumably rely on EPA’s interpretations
of its governing statutes.
The key question, then, is the degree of
causality contained in the phrase “based on.” And, the meaning of
that phrase is context dependent. In many cases, it “indicates a
but-for causal relationship.”
Safeco Ins. Co. of America v.
Burr,
551 U.S.
47, 63 (2007). But-for causation is a comparatively lenient
standard, which is met so long as a result “would not have occurred
in the absence of—that is, but for—[a party’s] conduct.”
Burrage, 571 U. S., at 211 (internal quotation marks
omitted). In other cases, however, more is needed. Congress
sometimes uses phrases such as “based on” to cover only “core”
causes amounting to an action’s “
sine qua non” or
“ ‘gravamen.’ ” See,
e.
g.,
Fry v.
Napoleon Community Schools, 580 U.S. 154, 167, 169 (2017);
OBB Personenverkehr AG v.
Sachs,
577 U.S.
27, 35 (2015).
Section 7607(b)(1) incorporates the more
demanding, “core” understanding of “based on.” This constraint
follows from the function of the “nationwide scope or effect”
exception as just that—an exception. Congress, after all, is
unlikely to intend for an exception to swallow the rule. See
Smith & Wesson Brands, Inc. v.
Estados Unidos
Mexicanos, 605 U. S. ___, ___ (2025) (slip op., at 15).
Thus, in this context, but-for causation is inadequate: In almost
any case, a determination of nationwide scope or effect will be at
least a but-for cause of EPA’s action, given that any EPA action is
downstream of EPA’s conclusions as to what its governing statutes
permit or require. But, Congress made regional Circuit review the
default for locally or regionally applicable actions, so we must
read the “nationwide scope or effect” exception in a way that
preserves regional Circuit review as the norm.
It follows that an EPA action is “based on” a
particular determination only if that determination “lie[s] at the
core of the agency action,” so as to form the most important part
of the agency’s reasoning.
Texas, 829 F. 3d, at 419.
Put more concretely, an EPA action is based on a determination of
nationwide scope or effect only if a justification of nationwide
breadth is the primary explanation for and driver of EPA’s action.
A determination of nationwide scope or effect does not rise to this
level if EPA also relied in significant part on other, “intensely
factual” considerations, or if the key driver of EPA’s action is
otherwise debatable.
Id., at 421; see also
id., at
419 (“ The default presumption is that petitions for review of
locally or regionally applicable actions ‘may only be filed in the
United States Court of Appeal for the appropriate
circuit’ ”).
2
In deciding whether a particular EPA action is
“based on a determination of nationwide scope or effect,” courts
should assess EPA’s reasoning
de novo. This standard
follows from the structure of the “nationwide scope or effect”
exception: The exception applies only “
if ” a locally
or regionally applicable action is based on a determination of
nationwide scope or effect “
and if ” EPA, in taking the
action, finds and publishes that the action has this basis.
§7607(b)(1) (emphasis added). In other words, the CAA requires both
that EPA deem its action to have a qualifying basis and that the
action in fact have this basis. This dual formulation does not
naturally suggest that courts should simply give EPA’s finding
deference. Cf.
Regalado Cuellar v.
United States,
553 U.S.
550, 565 (2008) (finding it “implausible” to infer that
Congress intended a particular meaning, where it used a “more
complex formulation”).
The upshot is that courts must “make an
independent assessment of the scope of [EPA’s] determinations.”
Texas, 829 F. 3d, at 421. That is, they should parse
the reasoning offered by EPA in taking an action to decide which
determinations primarily drove the action. Courts routinely analyze
filings to identify their substance, and the language of the
“nationwide scope or effect” exception directs them to do the same
here.
In so holding, we do not downplay the importance
of EPA’s role. Because the “nationwide scope or effect” exception
can apply only when “EPA so finds and publishes” that it does, EPA
can decide whether the exception is even potentially relevant.
Sierra Club, 47 F. 4th, at 746. And, where EPA does
invoke the exception, its explanation for doing so will at a
minimum focus the courts’ assessment of the possible determinations
of nationwide scope or effect.[
4] Thus, EPA’s choices will matter, even as courts must
assess the bases for EPA’s actions themselves.
3
Applying this framework, we conclude that
EPA’s denials of the small refineries’ exemption petitions were
based on determinations of nationwide scope or effect. We agree
with EPA’s finding—published in both its April and June denial
notices—that its interpretation of the phrase “disproportionate
economic hardship” under §7545(
o)(9)(B)(i) and its RIN
passthrough theory were determinations of nationwide scope or
effect that formed the core basis for EPA’s denials.
Supra,
at 5.
Both conclusions are clear determinations of
nationwide scope or effect: EPA invoked both its statutory
interpretation and its passthrough theory in justifying its
denials, and both points apply generically to all refineries,
regardless of their geographic location. After all, the CAA is a
federal statute, and §7545(
o)(9)(B)(i) by its terms applies
nationwide. Likewise, EPA’s RIN passthrough theory is a finding
about how the national refinery market works. See
supra, at
4–5.
These conclusions also can be deemed the “basis”
for EPA’s denials here. EPA decided, in light of the foregoing
determinations, that it would presumptively deny all the exemption
petitions before it.
Supra, at 4–5. It then considered
other, refinery-specific considerations only to confirm that it had
no reason to depart from its presumptive disposition.
Supra,
at 5. In this posture, EPA’s statutory interpretation and
passthrough theory plainly are the most important parts of its
reasoning. Or, put another way, where EPA relies on determinations
of nationwide scope or effect to reach a presumptive resolution,
those determinations qualify as the primary driver of its decision.
EPA’s confirmatory review of refinery-specific facts is “[m]erely
peripheral” by comparison.
Texas, 829 F. 3d, at
419.
Accordingly, we agree with EPA that the
“nationwide scope or effect” exception applies here. The Fifth
Circuit should have transferred this case.
B
We are unpersuaded by the counterarguments
raised by EPA, respondents, the Fifth Circuit, and the dissent.
Although we agree with EPA’s bottom-line
position that the “nationwide scope or effect” exception applies,
we reject its roundabout approach to the word “determination.” EPA
argues that “[t]he word ‘determination’ ” in §7607(b)(1)
“suggests a resolution of an unsettled issue,” such that EPA does
not make “determinations” when it “applies a previously established
agency rule, policy, or interpretation to new . . .
circumstances.” Brief for Petitioner 41. We agree with EPA that a
“determination” here means the “ ‘settling and ending of a
controversy,’ ”
ibid.;
supra, at 14, but nothing
in that term or its use in §7607(b)(1) suggests that only novel
conclusions count. Rather, given §7607(b)(1)’s focus on the face of
the agency action, “determination” is most naturally read to cover
any EPA conclusion within the four corners of an action.
Moreover, we do not see how EPA’s proposed
approach can be squared with its requested disposition. If a
“determination” covers only the resolution of an unsettled issue,
it is not obvious why EPA’s June denials contain any
determinations: EPA’s June notice purported to “appl[y] the
approach . . . adopted in the April” notice. App. to Pet.
for Cert. 80a. EPA attempts to avoid this difficulty by proposing a
holistic assessment of novelty that considers factors such as
“whether EPA announced the rule or policy at roughly the same time
as the challenged agency action itself.” Brief for Petitioner 41.
But, we do not see how this amorphous test follows even from EPA’s
view.[
5]
Respondents argue that the word “determination”
in §7607(b)(1) is a term of art, wherein an agency action can
trigger the “nationwide scope or effect” exception only if it is
undertaken based on a CAA provision that “textually direct[s] EPA
to make a ‘determination’ for the entire nation.” Brief for Small
Refinery Respondents 32 (emphasis deleted). But, “determination” is
“hardly a rarely used word,” and nothing in the CAA’s context
suggests that Congress meant for its use in §7607(b)(1) to reach
only CAA provisions that happen to use some variant of that word.
Bruesewitz v.
Wyeth LLC,
562
U.S. 223, 235 (2011). Such a limitation would at best lead to
arbitrary outcomes, as Congress did not act in a standardized way
when using “determination” as opposed to other words. Compare
§7410(k)(3) (not speaking in terms of “determinations”) with
§7410(k)(6) (requiring a “determination” when EPA “[c]orrect[s]”
its actions under §7410(k)(3)). At worst, respondents’ approach
would render the “nationwide scope or effect” exception
meaningless: Respondents have conceded that their term-of-art view
may render the exception “a null set, or close to a null set.” Tr.
of Oral Arg. 103–104. But, Congress would not have gone to the
trouble of creating a superfluous exception, so we will not “force
[a] term-of-art definitio[n]” where it “plainly do[es] not fit.”
Gonzales v.
Oregon,
546 U.S.
243, 282 (2006) (Scalia, J., dissenting).
The dissent would similarly limit the
“nationwide scope or effect” exception to reach only statutorily
enumerated determinations, but its arguments fare no better. The
dissent highlights that various CAA substantive provisions require
EPA to make particular “determinations” before taking an action.
Post, at 3–6, 10 (opinion of Gorsuch, J.). But, it does not
follow that Congress meant to encompass only statutorily enumerated
determinations when it spoke generally in the exception of actions
“based on
a determination of nationwide scope or effect.”
§7607(b)(1) (emphasis added). And, although some statutes
“ ‘distinguis[h] between “considerations” that inform [a]
“determination,” and the “determination” itself,’ ”
post, at 10 (quoting
Commissioner v.
Zuch, 605
U. S. ___, ____ (2025) (slip op., at 6); alterations in
original), statutes like the one in
Zuch use “determination”
to refer to an agency’s ultimate decision, see
id., at
___–___ (slip op., at 5–6). In asking whether a determination
supplies the basis for an EPA action, §7607(b)(1) uses the term in
a different sense. Likewise, the dissent’s concern that our test
could be difficult for “lower courts and lawyers to apply” is not a
problem of our creation.
Post, at 11. Insofar as the
reticulated venue framework that Congress enacted creates
difficulty for courts or litigants, “it is a problem for Congress,
not one that federal courts can fix.”
Lewis v.
Chicago,
560 U.S.
205, 217 (2010).
Finally, we are unpersuaded by respondents’
argument, accepted by the Fifth Circuit, that the “nationwide scope
or effect” exception is inapplicable in light of EPA’s
consideration of refinery-specific facts. That exception requires
that an EPA action be “based on” a determination of nationwide
scope or effect, in contrast to another part of §7607(b)(1) where
Congress used the phrase “based solely on.” Accordingly, EPA’s
consideration of local facts does not preclude its invocation of
the exception, either generally or here. So long as a determination
of nationwide scope or effect served as the primary driver of EPA’s
action, other, more “peripheral” determinations “are not relevant”
for venue purposes.
Texas, 829 F. 3d, at 419.
* * *
We agree with the Fifth Circuit that EPA’s
actions here are only locally or regionally applicable, although we
clarify that the relevant actions are EPA’s individual denials of
the small refineries’ exemption petitions. But, under a proper
understanding of §7607(b)(1), the “nationwide scope or effect”
exception applies, and the case belongs in the D. C. Circuit.
The Fifth Circuit therefore erred in denying EPA’s request to
transfer. The judgment of the Court of Appeals is vacated, and the
case is remanded for further proceedings consistent with this
opinion.
It is so ordered.
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