ELR Citation: 45 ELR 20087
No(s). 13-1093 (D.C. Cir. May 1, 2015)

The D.C. Circuit reversed and vacated a portion of a January 2013 rule in which EPA revised the NESHAPs and new source performance standards for backup generators. Specifically, the court held that EPA acted arbitrarily and capriciously when it modified the NESHAPs and NSPS to allow backup generators to operate without emissions controls for up to 100 hours per year as part of an emergency demand-response program. During the notice-and-comment period, petitioners presented their concerns about the rule's impact on the efficiency and reliability of the energy grid, but EPA failed to respond properly to those concerns. The court ruled that EPA's action was arbitrary and capricious on that ground alone. In addition, EPA relied on faulty evidence when justifying the exemption increase from 15 hours to 100 hours. And EPA failed to consider the alternative of limiting the exception to parts of the country not served by organized capacity markets. The court therefore reversed and remanded the rule to EPA.