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State of Texas v. United States Environmental Protection Agency
Texas, Louisiana, and Mississippi, joined by numerous oil and gas industry associations including the Texas Oil & Gas Association and Mid-Continent Oil and Gas Association, challenged EPA's disapproval of their state implementation plans under the Good Neighbor Provision for 2015 ozone NAAQS. The Fifth Circuit granted the petitions in part, holding that EPA would overstep its authority if it required upwind states to reduce emissions by more than the amount necessary to achieve attainment in every downwind state to which they are linked.
Analysis
Fifth Circuit Upholds EPA Disapproval of Texas Ozone SIP Under Clean Air Act Good Neighbor Provision
The Fifth Circuit rejected Texas's challenge to EPA's disapproval of its state implementation plan for managing ozone emissions under the Clean Air Act's Good Neighbor provision, holding that EPA reasonably interpreted the statute to require evaluation of impacts on downwind areas measuring clean data but potentially struggling to maintain air quality standards. The court denied Texas's motion to strike documents from the administrative record and upheld EPA's authority to disapprove state plans that fail to adequately demonstrate compliance with statutory requirements.
Fifth Circuit Limits EPA's Authority Under Clean Air Act Good Neighbor Provision in Multi-State SIP Disapproval Challenge
Texas, Louisiana, and Mississippi, joined by numerous oil and gas industry associations including the Texas Oil & Gas Association and Mid-Continent Oil and Gas Association, challenged EPA's disapproval of their state implementation plans under the Good Neighbor Provision for 2015 ozone NAAQS. The Fifth Circuit granted the petitions in part, holding that EPA would overstep its authority if it required upwind states to reduce emissions by more than the amount necessary to achieve attainment in every downwind state to which they are linked.
Fifth Circuit Withdraws EPA Regional Haze Rule Decision, Substitution Opinion Pending
The Fifth Circuit docketed a consolidated petition for review challenging EPA's regional haze rule published at 88 Fed. Reg. 9336, brought by Texas, Louisiana, Mississippi, their environmental agencies, and a coalition including the Texas Oil & Gas Association, Louisiana Mid-Continent Oil and Gas Association, Luminant Generation, Entergy Louisiana, and multiple power generators. The March 9, 2026 filing reflects broad industry and state opposition to EPA's Clean Air Act regional haze requirements affecting power plants, petrochemical facilities, and oil and gas operations across the Gulf Coast.