Cement Kiln Recycling Coalition v. Environmental Protection Agency

                  United States Court of Appeals

               FOR THE DISTRICT OF COLUMBIA CIRCUIT

        Argued April 24, 2001      Decided July 24, 2001 

                           No. 99-1457

             Cement Kiln Recycling Coalition, et al.,
                           Petitioners

                                v.

               Environmental Protection Agency and 
             Christine Todd Whitman, Administrator, 
                           Respondents

                  Dow Chemical Company, et al., 
                           Intervenors

                        Consolidated with 
          99-1477, 99-1480, 99-1483, 99-1485, 99-1486, 
          99-1490, 99-1491, 99-1492, 99-1493, 99-1494, 
                99-1495, 99-1496, 99-1497, 99-1498

           On Petitions for Review of an Order of the 
                 Environmental Protection Agency

                            ---------

     James S. Pew argued the cause for petitioner Sierra Club.  
With him on the briefs was Howard I. Fox.

     Jeremiah J. Jewett, III, David P. Novello, Ronald A. 
Shipley, and Scott H. Segal argued the cause for Industry 
Petitioners.  With them on the briefs were Richard G. Stoll, 
Michael W. Steinberg, Terry J. Satterlee, Alok Ahuja, Karl S. 
Bourdeau, David M. Friedland, Aaron H. Goldberg, Lisa M. 
Jaeger, David R. Case, Thomas G. Echikson, James N. 
Cahan, William M. Bumpers, David A. Smart, and Douglas 
H. Green.

     David R. Case argued the cause and filed the briefs for 
petitioner Environmental Technology Council.

     Richard G. Stoll, David P. Novello, Michael W. Steinberg, 
Ronald A. Shipley, Karl S. Bourdeau, David M. Friedland, 
Aaron H. Goldberg, Scott H. Segal, Lisa M. Jaeger, David R. 
Case, William M. Bumpers, and Jeremiah J. Jewett, III were 
on the brief for industry intervenors.  Joshua D. Sarnoff 
entered an appearance.

     Lois Godfrey Wye and Norman L. Rave, Jr., Attorneys, 
U.S. Department of Justice, and Steven E. Silverman, Attor-
ney, Environmental Protection Agency, argued the cause for 
respondents.  With them on the brief was Lois J. Schiffer, 
Assistant Attorney General at the time the brief was filed, 
U.S. Department of Justice.  Christopher S. Vaden, Attorney, 
U.S. Department of Justice, entered an appearance.

     James S. Pew and Howard I. Fox were on the brief for 
intervenor Sierra Club.

     David R. Case was on the brief for intervenor Environmen-
tal Technology Council.

     Before:  Randolph, Rogers and Tatel, Circuit Judges.

     Opinion for the Court filed Per Curiam.*

     Per Curiam:  In this case, industry and environmental 
petitioners challenge EPA air pollution standards for hazard-

__________
     * Judge Tatel wrote Parts I, II, III, IV, and VII;  Judge Ran-
dolph wrote Parts V and VI.

ous waste combustors.  Because the standards fail to reflect 
the emissions achieved in practice by the best-performing 
sources as required by the Clean Air Act, we remand to the 
Agency for further proceedings.  In all other respects, we 
deny the petitions for review.

                                I

     Until 1990, the Clean Air Act ("CAA"), 42 U.S.C. ss 7401-
7671q, required the Environmental Protection Agency to set 
risk-based air pollution standards that would provide an 
"ample margin of safety to protect the public health."  Id. 
s 7412(b)(1)(B) (1990);  see also H.R. Rep. No. 101-490, at 
151, 322 (1990).  To address problems with the implementa-
tion of risk-based regulation, Congress amended the Act in 
1990 to require EPA to set the most stringent standards 
achievable, 42 U.S.C. s 7412(d)(2), that is, standards "based 
on the maximum reduction in emissions which can be 
achieved by application of [the] best available control technol-
ogy."  S. Rep. No. 101-228, at 133 (1989).

     The 1990 amendments included the provision at issue in 
this case--42 U.S.C. s 7412(d)--which directs EPA to set 
standards limiting emissions of listed hazardous air pollutants 
("HAPs"), id. ss 7412(b), (c)(1)-(2), from major stationary 
sources.  Section 7412(d)(2) provides that:

     Emission standards ... shall require the maximum de-
     gree of reduction in emissions of the hazardous air 
     pollutants subject to this section ... that the Administra-
     tor, taking into consideration the cost of achieving such 
     emission reduction, and any non-air quality health and 
     environmental impacts and energy requirements, deter-
     mines is achievable for new or existing sources....
     
Supplementing this general guidance, Congress imposed min-
imum stringency requirements--EPA calls them "emission 
floors"--which "apply without regard to either costs or the 
other factors and methods listed in section 7412(d)(2)."  Nat'l 
Lime Ass'n v. EPA, 233 F.3d 625, 629 (D.C. Cir. 2000) 
("National Lime II").  For "new sources"--factories or other 

sources on which construction begins after EPA publishes 
emission standards, 42 U.S.C. s 7411(a)(2)--"[t]he maximum 
degree of reduction in emissions that is deemed achievable 
... shall not be less stringent than the emission control that 
is achieved in practice by the best controlled similar 
source...."  Id. s 7412(d)(3).  For existing sources, what 
EPA deems achievable "shall not be less stringent than[ ] the 
average emission limitation achieved by the best performing 
12 percent of the existing sources (for which the Administra-
tor has emissions information)...."  Id.  As we explained in 
National Lime II, EPA implements these requirements 
through a two-step process:  the Agency first sets emission 
floors for each pollutant and source category and then deter-
mines whether stricter standards, known as "beyond-the-
floor" limits, are achievable in light of the factors listed in 
section 7412(d)(2).  233 F.3d at 629.

     Hazardous waste combustors ("HWCs"), the focus of this 
case, are also subject to regulation under the Resource Con-
servation and Recovery Act ("RCRA"), 42 U.S.C. ss 6901-
6992k, which "establishes a comprehensive 'cradle to grave' 
regulatory program for the treatment, storage, and disposal 
of hazardous waste."  Horsehead Res. Dev. Co. v. Browner, 
16 F.3d 1246, 1252 (D.C. Cir. 1994).  A pre-1990 risk-based 
statute, RCRA directs EPA to set standards for hazardous 
waste-burning facilities that "protect human health and the 
environment."  42 U.S.C. s 6924(q)(1).  Both Congress and 
EPA have acknowledged the overlap between RCRA and the 
CAA.  Indeed, the CAA itself directs the Administrator to 
"take into account any regulations of such emissions which 
are promulgated under [RCRA] and ... to the maximum 
extent practicable ... ensure that the requirements of 
[RCRA] and [section 7412] are consistent."  Id. s 7412(n)(7).  
Hazardous waste combustors must have RCRA permits for 
stack air emissions until they can demonstrate compliance 
with CAA standards through required tests;  once a source 
complies with the CAA, it no longer needs a separate RCRA 
permit.  Final Standards for Hazardous Air Pollutants for 
Hazardous Waste Combustors, 64 Fed. Reg. 52,828, 52,833 
(Sept. 30, 1999).

     In 1999, acting pursuant to CAA section 7412(d) and follow-
ing notice and comment, EPA issued standards limiting emis-
sions from three types of HWCs:  incinerators that destroy 
hazardous waste;  cement kilns that use hazardous waste as 
fuel in the cement-manufacturing process;  and lightweight 
aggregate kilns that use hazardous waste as fuel to produce 
lightweight aggregate concrete, a building material used for 
structural purposes and thermal insulation.  These HWCs 
burn approximately 80% of the hazardous waste combusted 
each year in the United States, id. at 52,832, emitting more 
than 11,000 metric tons of HAPs.

     For each type of HWC, i.e., each "source category," EPA 
set standards for the following HAPs:  dioxins;  mercury;  the 
semi-volatile metals lead and cadmium;  the low-volatility 
metals chromium, arsenic, and beryllium;  particulate matter;  
chlorine;  carbon monoxide;  and hydrocarbons.  All of these 
HAPs can have serious health effects.  Dioxin, mercury, and 
semi-volatile metal emissions are of particular concern;  expo-
sure can cause effects such as cancer, neurological and organ 
damage, and impaired child development.  See id. at 53,002-
03.

     To set these standards, EPA, acting pursuant to section 
7412(d)(3), began by setting emission floors for new and 
existing sources--EPA calls them "MACT (maximum achiev-
able control technology) floors."  After assembling a database 
of sources and their emission levels recorded primarily during 
RCRA compliance tests, the Agency went through the follow-
ing steps for each HAP in each source category.  For existing 
sources, EPA identified the best-performing 12 percent of 
sources, creating what it calls the "MACT pool."  EPA then 
identified the primary emission control technology used by 
sources in the MACT pool with emission levels equivalent to 
or lower than the pool's median.  It labeled that technology 
the "MACT control."  For some HAPs, EPA chose end-of-
stack pollution control technology as the MACT control;  for 
other HAPs, the Agency chose the technique of "feedrate"--
the rate at which source operators feed hazardous waste into 
combustors.  EPA next expanded the MACT pool to include 
all sources using the MACT control (provided the control was 

well-designed and properly operated) and set the MACT floor 
at the worst emission level achieved by any source in that 
expanded pool.  For new sources, EPA used the same meth-
odology but chose as the MACT control the technology used 
by the best-performing source for which it had information.

     After setting forty-nine floors, EPA considered, as required 
by section 7412(d)(2), whether stricter limits--"beyond-the-
floor" standards--would be achievable.  Taking into account 
cost, energy requirements, and certain non-air quality health 
and environmental impacts, EPA ultimately set five beyond-
the-floor standards.

     Environmental and industry petitioners now challenge the 
HWC emission standards.  The Sierra Club argues that: 
(1) the MACT approach results in emission standards that 
violate section 7412(d)(3) because they fail to reflect the 
emissions achieved in practice by the best-performing 
sources;  (2) the Agency violated the Act by basing standards 
on RCRA test data, which are generated under worst-case 
conditions;  and (3) in making beyond-the-floor determina-
tions, the Agency failed to consider certain "non-air quality 
health and environmental impacts" as required by section 
7412(d)(2) and arbitrarily and capriciously refused to consider 
tougher standards based on additional controls for some 
HAPs.  Industry petitioners contend that EPA violated sec-
tion 7412(d)(3)(A) by basing existing-source floors on actual 
emissions data rather than on existing regulatory require-
ments, such as RCRA permit limits.  Industry petitioners 
also challenge as arbitrary and capricious many individual 
emission standards, as well as several monitoring and imple-
mentation regulations.  One industry petitioner, Continental 
Cement, argues that EPA violated the Regulatory Flexibility 
Act, 5 U.S.C. ss 601-612.  Another petitioner, the Environ-
mental Technology Council, challenges EPA's adoption of 
procedures that permit sources to petition the Agency for 
alternative requirements if they cannot meet MACT stan-
dards due to raw material contributions to emissions.  See 40 
C.F.R. ss 63.1206(b)(9) & (10).

                                II

     We begin with industry petitioners' argument that EPA 
violated CAA section 7412(d)(3)(A) by basing existing-source 
standards on emissions data rather than RCRA or other 
permit limits.  Section 7412(d)(3)(A) provides that "[e]mission 
standards promulgated ... for existing sources ... shall not 
be less stringent ... than[ ] the average emission limitation 
achieved by the best performing 12 percent of the existing 
sources (for which the Administrator has emissions informa-
tion)...."  42 U.S.C. s 7412(d)(3)(A).  Focusing on the 
phrase "emission limitation," petitioners point out that CAA 
section 7602(k) defines that term as "a requirement estab-
lished by the State or the Administrator which limits the 
quantity, rate, or concentration of emissions of air pollu-
tants...."  Id. s 7602(k).  According to petitioners, section 
7412(d)(3)(A) must therefore be read as follows:  "[e]mission 
standards promulgated ... for existing sources ... shall not 
be less stringent ... than the average state or federal re-
quirement limiting emissions of a pollutant achieved in 
practice by the best performing 12 percent of the existing 
sources."  Indus. Petitioners' Opening Br. at 8.

     Although EPA disputes this reading of the statute--it 
contends that CAA section 7412(d)(3)(A)'s use of the word 
"achieved" indicates that standards must be based on actual 
emissions data--the Agency argues that we may not even 
consider petitioners' argument because they failed to present 
it to the Agency during the rulemaking.  See 42 U.S.C. 
s 7607(d)(7)(B) ("Only an objection to a rule or procedure 
which was raised with reasonable specificity during the period 
for public comment ... may be raised during judicial re-
view.").  Having reviewed each page of the record petitioners 
cite to demonstrate that they presented their interpretation 
of section 7412(d)(3)(A) during the rulemaking, we agree with 
EPA.  The first cited comment argued only that the Agency 
should set the standard for particulate matter emissions from 
lightweight aggregate kilns at the same level as existing New 
Source Performance Standards ("NSPS"), to which EPA re-
sponded that "[w]e rejected the NSPS as the basis for the 
floor emission level because our MACT analysis of data from 

existing sources indicates that a particulate matter floor level 
lower than the NSPS is currently being achieved in prac-
tice...."  Final Response to Comments to the Proposed 
HWC MACT Standards, Vol. I:  Standards ("1 Final Re-
sponse to Comments"):  LWAK Standards, at 13-14 (July 
1999).  The second cited comment stated only that "[t]he 
MACT floor should be set based on projections of Tier I 
allowable mercury feedrate limits," to which EPA responded, 
"[w]e agree that BIF Tier I feedrate limits could be consid-
ered as a floor control option.  We conclude, however, that 
those allowable feedrate limits are much higher than actual 
feedrate levels ... and thus do not represent MACT."  Id.  
Cement Kilns Mercury, at 7.  As the Agency points out, these 
comments "merely argued that EPA could permissibly con-
sider RCRA permit limitations in establishing floors," Re-
spondent's Br. at 51, not (as petitioners now argue) that 
section 7412(d)(3)(A) requires existing-source floors to be 
based on permit limits.  And the final page petitioners cite 
says nothing at all about existing regulatory limits.  See Final 
Technical Support Document for HWC MACT Standards, 
Vol. III:  Selection of MACT Standards and Technologies, at 
2-2 (July 1999) ("3 Final TSD").

     In considering the extent to which a statutory interpreta-
tion must have been presented to an agency before a petition-
er can raise it here, we have said that:

     [w]hile there are surely limits on the level of congruity 
     required between a party's arguments before an adminis-
     trative agency and the court, respect for agencies' proper 
     role in the Chevron framework requires that the court be 
     particularly careful to ensure that challenges to an agen-
     cy's interpretation of its governing statute are first 
     raised in the administrative forum.
     
Natural Res. Def. Council, Inc. v. EPA, 25 F.3d 1063, 1074 
(D.C. Cir. 1994).  Though we have recognized that "precisely 
the same argument that was made before the agency [need 
not] be rehearsed again, word for word, on judicial review," 
Appalachian Power Co. v. EPA, 135 F.3d 791, 818 (D.C. Cir. 
1998), petitioners point us to nothing in the record even 

hinting that the phrase "emission limitation" must be defined 
by reference to section 7602(k).  EPA (as opposed to its 
appellate counsel) has not had "the first opportunity to bring 
its expertise to bear on the resolution" of this question.  Id.

                               III

     The Sierra Club also challenges EPA's interpretation of 
CAA section 7412(d)(3), but on different grounds.  The Sierra 
Club argues that section 7412(d)(3) requires floors to reflect 
emissions actually "achieved" by the best-performing sources, 
and that EPA violated the statute by setting floors the 
Agency considered achievable by all sources using MACT 
technology.  See, e.g., 1 Final Response to Comments:  MACT 
Floor Approaches, at 54-55 ("[W]e do not agree that the 
proper interpretation of the CAA would require that the 
MACT standards be based solely on an analysis of the 
emissions levels being achieved by the best performing 12% 
of sources....  MACT standard[s] must be achievable by all 
sources judged to be using MACT or MACT equivalent 
technology.").  According to the Sierra Club, the contrast 
between the language of section 7412(d)(2), which requires 
the maximum degree of reduction "achievable," and section 
7412(d)(3), which establishes that what EPA deems achievable 
"shall not be less stringent" than what certain sources actual-
ly "achieve[ ]," demonstrates that "Congress was well aware 
of the difference between what EPA believes to be 'achiev-
able' through the use of a particular technology and what the 
relevant sources actually 'achieved.' "  Sierra Club's Opening 
Br. at 20.  "EPA's insistence that [section 7412] floors must 
reflect what the agency determines to be achievable through 
the use of a particular technology," the Sierra Club concludes, 
"boils down to an attempt to nullify the objective limits that 
Congress deliberately placed on EPA's standard setting dis-
cretion by enacting [section 7412]'s mandatory floor provi-
sions in the 1990 Amendments."  Id. at 21-22.

     Defending its achievability rationale, EPA argues that sec-
tion 7412(d)(3)'s floor provision "is a gloss" on section 
7412(d)(2), which establishes the achievability requirement.  
Respondent's Br. at 23.  According to the Agency, section 

7412(d)(3) incorporates section 7412(d)(2)'s achievability stan-
dard.  For this reason, EPA explains, it designed the MACT 
approach to produce achievable standards.

     We agree with the Sierra Club.  Though section 7412(d)(2) 
does direct EPA to require the "maximum emission reduc-
tion" that it determines to be achievable, section 7412(d)(3) 
provides that "the maximum degree of reduction in emissions 
that is deemed achievable ... shall not be less stringent 
than" what the best-performing sources "achieve[ ]."  Section 
7412(d)(3) therefore limits the scope of the word "achievable" 
in section 7412(d)(2).  While standards achievable by all 
sources using the MACT control might also ultimately reflect 
what the statutorily relevant sources achieve in practice, EPA 
may not deviate from section 7412(d)(3)'s requirement that 
floors reflect what the best performers actually achieve by 
claiming that floors must be achievable by all sources using 
MACT technology.  See Chevron U.S.A., Inc. v. Natural Res. 
Def. Council, Inc., 467 U.S. 837, 842-43 (1984) (holding that if 
Congress has spoken directly to the disputed issue of statuto-
ry construction, "that is the end of the matter;  for the court, 
as well as the agency, must give effect to the unambiguously 
expressed intent of Congress").

     This interpretation is required by our decisions in Sierra 
Club v. EPA, 167 F.3d 658 (D.C. Cir. 1999), and National 
Lime II, 233 F.3d 625.  In Sierra Club, we held that CAA 
section 7429(a)(2), which (in language virtually identical to the 
terms of section 7412(d)(3)) directs EPA to set emission floors 
for medical waste incinerators, requires EPA "to make a 
reasonable estimate of the performance of the top 12 percent 
of units."  167 F.3d at 662 (interpreting 42 U.S.C. 
s 7429(a)(2), which requires that "[t]he degree of reduction in 
emissions that is deemed achievable for new units in a 
category shall not be less stringent than the emissions control 
that is achieved in practice by the best controlled similar 
unit," and that "[e]missions standards for existing units in a 
category ... shall not be less stringent than the average 
emissions limitation achieved by the best performing 12 per-
cent of units in the category").  While acknowledging that 
EPA has authority to devise the means of deriving this 

estimate, we made clear that the method the Agency selects 
must "allow[ ] a reasonable inference as to the performance of 
the top 12 percent of units."  Id. at 663.  We emphasized that 
EPA must show not only that it believes its methodology 
provides an accurate picture of the relevant sources' actual 
performance, but also why its methodology yields the re-
quired estimate.  Id.  In evaluating EPA's new-source floors 
in particular, which the Agency based on emission levels 
achieved by the worst-performing sources using a given con-
trol technology, we concluded that EPA had not explained 
"why the phrase 'best controlled similar unit' encompasses all 
units using the same technology as the unit with the best 
observed performance, rather than just that unit itself, as the 
use of the singular in the statutory language suggests."  Id. 
at 665.  In National Lime II, we addressed a Sierra Club 
petition challenging emission standards set under section 
7412(d) for non-hazardous waste-burning portland cement 
kilns.  In evaluating EPA's standards, we reiterated Sierra 
Club's central holding that "to comply with the statute, EPA's 
method of setting emission floors must reasonably estimate 
the performance of the relevant best performing plants."  233 
F.3d at 632 (citing Sierra Club, 167 F.3d at 665).

     We thus turn to EPA's alternative argument:  that the 
MACT approach does in fact measure what the best-
performing sources actually achieve.  According to EPA, 
Sierra Club requires standards to reflect "the worst reason-
ably foreseeable performance of the best unit[s]," 167 F.3d at 
665.  EPA argues that to meet this requirement, as well as to 
account for "inherent process variability in pollution control 
devices," the Agency set the floors at the worst emission level 
experienced by any source using the MACT control.  Respon-
dent's Br. at 28.  Indeed, EPA claims, Sierra Club actually 
suggests that considering data from all sources using a 
common control approach is a reasonable means of estimating 
the performance of the best sources under the worst foresee-
able circumstances.

     The Sierra Club disagrees, arguing that EPA has failed to 
abide by Sierra Club because the Agency has not demonstrat-

ed that its floors based on the worst performers' emissions 
reflect a reasonable estimate of the emissions achieved in 
practice by the best-performing sources. As to new-source 
floors, the Sierra Club contends that Sierra Club, by ques-
tioning whether EPA can represent "the performance of the 
best performing source in the category with the performance 
of the worst performing source that uses the same technolo-
gy[,].... casts serious doubt" on the legitimacy of the MACT 
approach as a means of implementing section 7412(d)(3).  
Sierra Club's Opening Br. at 27-28.  Indeed, according to the 
Sierra Club, "common use of one control technology provides 
little or no reason to believe that the performance of the 
worst performing source that was using that technology is in 
any way representative of the best source's performance."  
Id. at 29-30.  The Sierra Club points to other factors, such as 
the use of additional control techniques or of newer and 
better versions of MACT technology, better training of opera-
tors, and better design and operation of the source itself, that 
could all contribute to the best-performing source's level of 
emissions.  By failing to consider these factors, the Sierra 
Club claims, EPA set floors that fail to reflect the estimates 
required by CAA section 7412 and Sierra Club.

     Applying the principles set forth in Sierra Club and Na-
tional Lime II, we again agree with the Sierra Club.  To 
begin with, Sierra Club permits EPA to account for variabili-
ty by setting floors at a level that reasonably estimates "the 
performance of the 'best controlled similar unit' under the 
worst reasonably foreseeable circumstances," 167 F.3d at 665, 
not the worst foreseeable circumstances faced by any unit in 
a given source category.  Moreover, although Sierra Club 
also notes that "[p]erhaps considering all units with the same 
technology is justifiable because the best way to predict the 
worst reasonably foreseeable performance of the best unit 
with available data is to look at other units' performance," id., 
we explained in National Lime II that such an approach 
would satisfy the statute "if pollution control technology were 
the only factor determining emission levels of that HAP," 233 
F.3d at 633 (emphasis added).  Moreover, using language 

especially relevant to this case, National Lime II observed 
that:

     it became clear [at oral argument] that the Sierra Club 
     believes that EPA's MACT approach would not accurate-
     ly estimate emission levels of the best performing twelve 
     percent of plants if the best performing plants achieved 
     their emission levels not just by using technology, but 
     also by selecting cleaner manufacturing inputs.  For 
     example, the best performing twelve percent of plants 
     might perform well because, in comparison to other 
     plants having the same technology, they use less-
     polluting fuels or purer raw materials.  Such plants 
     would have predictably lower emissions than plants using 
     MACT floor technology alone.
     
Id. at 632-33.  National Lime II goes on to note that 
although "this argument may well have merit," id. at 633, the 
argument could not be considered because the Sierra Club 
failed to present it in its opening brief, thus failing to explain 
"why the emissions standards EPA set might not accurately 
estimate the performance of the best performing twelve 
percent of plants,"  id. at 632.

     Here, unlike in National Lime II, the Sierra Club has 
argued that factors other than MACT technology influence 
emissions:  "The best source may use other control techniques 
that the worst source does not, may use a newer and better 
version of the chosen technology, may train its operators 
more rigorously, or may simply be better designed and 
operated."  Sierra Club's Opening Br. at 29.  The statute 
itself, the Sierra Club points out, directs EPA to consider 
factors such as "process changes, substitution of materials or 
other modifications ... design, equipment, work practice, or 
operational standards ... [or] a combination of above," 42 
U.S.C. ss 7412(d)(2)(A)-(E), suggesting that "Congress itself 
recognized that many factors ... affect sources' emissions," 
Sierra Club's Opening Br. at 29.  In addition, the Sierra Club 
points to record evidence that other factors contribute to 
emissions.  For example, although EPA's particulate matter 
floors for incinerators reflect what the Agency thought was 

achievable with just one control technology--either a fabric 
filter, an electrostatic precipitator, or an ionizing wet scrub-
ber, 64 Fed. Reg. at 52,864--record evidence suggests that 
some incinerators use these devices in combination with other 
control devices, see 3 Final TSD, at 4-2.  As the Sierra Club 
also observes, EPA has acknowledged that different models 
of the same technology vary significantly in their perfor-
mance.  See id. at 4-3 ("Fabric filters with conventional 
woven fiberglass bags have demonstrated emissions control 
levels on [incinerators]....  With improved fiberglass or 
Nomex felt and tri-loft fabrics, levels lower than 0.005 gr/dscf 
have been demonstrated.  High performance membrane fab-
rics ... have demonstrated levels below 0.0010 gr/dscf over 
long term operation.").

     The record contains still more indications that variables 
other than the MACT control affect HWC emissions.  For 
example, in a 1996 technical support document, EPA ob-
served that "[t]he MACT [expanded pool] contains conditions 
with a large range of [dioxin/furan] levels, from 0.005 to 38.5 
TEQ ng/dscm.  This indicates that the air pollution control 
device system type ... may not be the only important 
consideration[ ] affecting [dioxin/furan] control;  other factors 
such as combustion quality and waste composition ... may 
also be of importance."  Draft Technical Support Document 
for HWC MACT Standards, Vol. III:  Selection of MACT 
Standards and Technologies, at 3-3 (Feb. 1996) ("3 Draft 
TSD").  In a 1999 technical support document detailing its 
strategy for estimating variability, EPA noted that "[t]he 
MACT [expanded pools] typically contain data from a wide 
variety of different sources within each HAP and source 
category combination, thus capturing the potential range in 
emissions due to differences in equipment operations, design, 
waste type, etc."  3 Final TSD, at 2-17 to 2-18;  see also 64 
Fed. Reg. at 52,857.  Commenters also brought to the Agen-
cy's attention factors other than the MACT control.  One 
commenter noted that:

     [t]he data in the expanded MACT pools ... do not 
     provide meaningful information because many factors, 
     other than the type of control device, significantly affect 
     
     HWCs' emissions.  Obvious examples of such factors 
     include feedrates, various operating parameters, operator 
     training and behavior, and variations between similar 
     (but not identical) control devices....  Because many 
     variables significantly influence emission rates, identify-
     ing the emissions rates associated with a particular type 
     of control device indicates very little about the actual 
     capability of that type of control device.
     
1 Final Response to Comments:  MACT Floor Approaches, at 
51.  EPA responded to this comment not by explaining why 
these factors are insignificant to estimating emissions of the 
best-performers, but rather by claiming (as it does here) that 
floors must be achievable by all sources using MACT technol-
ogy.  See id. at 53-55.

     We think this record evidence supports the Sierra Club's 
claim that because factors other than MACT technology 
affect emissions, emissions of the worst-performing MACT 
source may not reflect what the best-performers actually 
achieve.  EPA's responses are unpersuasive.

     The Agency argues that "there is no question as to the type 
of control device each source uses."  Respondent's Br. at 38-
39.  But as the Sierra Club points out, this claim is non-
responsive:  just because EPA can identify which sources use 
the MACT control does not mean that factors other than the 
MACT control have no effect on emissions.  The Agency also 
emphasizes that it "considered only the variability consistent 
with proper design and operation of MACT control."  Id. at 
39.  Again, this claim misses the point:  whether variability in 
the MACT control accurately estimates variability associated 
with the best-performing sources depends on whether factors 
other than the MACT control contribute to emissions.  In 
other words, if factors other than MACT technology do 
indeed influence a source's performance, it is not sufficient 
that EPA considered sources using only well-designed and 
properly operated MACT controls.

     EPA next claims that even though the performance of the 
MACT controls themselves vary, "effort[s] at further specifi-
cation [of the MACT control] failed because the myriad 
factors that create operating variability proved impossible to 

reliably quantify."  Id. (citing 3 Draft TSD, at 2-6, which 
notes that instead of setting the MACT control as any fabric 
filter, the Agency could have differentiated among different 
fabric filter units according to parameters such as "cloth type, 
fabric age, cleaning practices, and pressure drop," but de-
clined to do so "due to lack of information" on specific 
facilities' fabric filters).  In a similar vein, the Agency claimed 
in a 1996 technical support document (though not in this 
court) that, at least in the case of the dioxin/furan standards, 
factors other than technology that affect emissions, "such as 
combustion quality and waste composition[,] ... are difficult 
to quantify for the definition of MACT."  3 Draft TSD, at 
3-3.  Even accepting the proposition that factors affecting 
source performance--either design features of the control 
itself (such as the type of fabric used) or non-MACT variables 
(such as waste composition or use of additional controls)--are 
difficult to quantify when defining the MACT control, nothing 
in the statute requires the Agency to use the MACT ap-
proach.  Section 7412(d)(3) requires only that EPA set floors 
at the emission level achieved by the best-performing sources.  
If EPA cannot meet this requirement using the MACT 
methodology, it must devise a different approach capable of 
producing floors that satisfy the Clean Air Act.  Indeed, the 
very fact that EPA recognizes both design differences in 
MACT technology and non-MACT factors as causes of wide-
ranging variations in performance suggests that the emissions 
achieved by the worst-performing MACT source do not, as 
the CAA requires, represent a reasonable estimate of emis-
sions achieved by the best-performing sources.

     Finally, we are unpersuaded by EPA's claim that to ac-
count for the best-performing sources' operational variability, 
it had to base the floors on the worst performers' emissions.  
While we have recognized that a given control can experience 
operational variability, see Nat'l Lime Ass'n v. EPA, 627 F.2d 
416, 424-25, 436, 439-41 (D.C. Cir. 1980) (recognizing variabil-
ity in the performance of emission controls such as baghous-
es, ESPs, scrubbers, feed materials, and types of fuel), the 
relevant question here is not whether control technologies 
experience variability at all, but whether the variability expe-

rienced by the best-performing sources can be estimated by 
relying on emissions data from the worst-performing sources 
using the MACT control.  In this case, the evidence EPA 
cites to support the MACT approach as a means of account-
ing for operational variability fails to demonstrate the rele-
vant relationship.  Some of the Agency's citations to the 
record merely contain assertions that "[the] approach ... 
fully accounts for normal process variability."  1 Final Re-
sponse to Comments:  MACT Floor Approaches, at 59;  see 
also 64 Fed. Reg. at 52,923 (noting that HWCs are particular-
ly susceptible to variability).  The actual variability data EPA 
cites suggest only that emissions from sources using a given 
control vary over a wide range, not that the high emission 
levels achieved by sources at one end of that range reflect 
levels achieved by sources at the other end, nor that the best-
performing sources ever experience a wide range of variabili-
ty at all.  See, e.g., 3 Draft TSD, at 3-3 to 3-12, 4-2 to 4-8;  
see also Final Technical Support Document for HWC MACT 
Standards, Vol. IV:  Compliance with the HWC MACT Stan-
dards, at 4-7 (July 1999) (explaining the operating parame-
ters of various control technologies).  Indeed, throughout the 
rulemaking, EPA defended its reliance on the worst-
performing MACT source as a means of setting achievable 
floors, not as a way of determining the operational variability 
experienced by the best-performing sources.  See, e.g., 64 
Fed. Reg. at 52,859 & n.77 (explaining that its decision to 
base the floors "on the highest test condition average for 
sources in the expanded MACT pool" was designed to ensure 
that all sources using the MACT control could achieve the 
standard).

     What is more, statements in the record actually cast doubt 
on the possibility that the emissions of the worst-performing 
sources estimate the variability experienced by the best per-
formers.  For example, in the introduction to the proposed 
rule, EPA acknowledged that it considered a "12 percent 
approach," according to which it would have set the floors 
based on the statistical average of the 12 percent MACT pool 
and then added the "average within-test condition variability 
within the expanded MACT pool."  Revised Standards for 

Hazardous Waste Combustors, 61 Fed. Reg. 17,358, 17,367 
(Apr. 19, 1996).  EPA chose not even to propose this ap-
proach, however, concluding that "it could not be demonstrat-
ed that sources within the expanded MACT pool using MACT 
floor controls could achieve the floor levels" that resulted 
from the Agency's calculations.  Id.  The fact that EPA 
calculated the variability experienced by the top 12 percent of 
sources, but then declined to use those results to set the 
floors because they would not be achievable by all MACT 
sources, strongly suggests a real difference between emis-
sions achieved by the worst-performing sources and the varia-
bility experienced by the best performers.  Similarly, EPA's 
use of worst-case emissions data from RCRA compliance 
tests, during which sources routinely spike their feed--a 
practice we discuss in more detail in Part IV--further under-
mines the Agency's claim that to account for the variability 
experienced by the best-performing sources, it had to set 
floors based on the worst-performers' emissions:  if, as the 
Agency claims, RCRA data reflect sources' performance un-
der the worst foreseeable circumstances, why is the use of 
worst-case data, on its own, insufficient to account for the 
variability in emissions experienced by the best-performing 
sources?

     To sum up, the possibility we acknowledged in National 
Lime II--that the "best performing plants achieve[ ] their 
emission levels not just by using technology," 233 F.3d at 
633--appears to have been borne out in this case.  Because 
record evidence suggests that factors other than the MACT 
control influence emissions, EPA has not demonstrated, in 
Sierra Club's words, that floors based on the worst-
performing MACT sources' emissions represent "a reasonable 
estimate of the performance of the [best-performing] units."  
167 F.3d at 662.  To be sure, it is not our place to dictate to 
the Agency how to account for variables other than the 
MACT control.  If in the case of a particular source category 
or HAP, the Agency can demonstrate with substantial evi-
dence--not mere assertions--that MACT technology signifi-
cantly controls emissions, or that factors other than the 
control have a negligible effect, the MACT approach could be 
a reasonable means of satisfying the statute's requirements.  

See Nat'l Lime II, 233 F.3d at 633.  But even if, as EPA 
claims, accounting for non-MACT factors is difficult, the 
Agency may not use a proxy for the best performers that it 
has considerable reason to believe falls short of section 
7412(d)(3)'s requirements.

                                IV

     As part of its challenge to the MACT approach, the Sierra 
Club contends that EPA violated the Clean Air Act by relying 
on "worst-case data" to derive the HWC standards.  In 
setting the floors, EPA relied on emissions data generated 
during incinerator trial burn tests and RCRA compliance 
testing of cement and lightweight aggregate kilns.  During 
such testing, sources often operate under worst-case condi-
tions by

     spiking metals and chlorine in the waste feed [and] 
     detuning the emissions control equipment.... [T]hese 
     sources conduct tests in a manner that will establish a 
     wide envelope for their operating parameter limits in 
     order to accommodate the expected variability ... [in] 
     types of wastes, combustion system parameters, and 
     emission control parameters.
     
64 Fed. Reg. at 52,858.  The Sierra Club argues that because 
compliance data reflect abnormally bad performance, they 
"do not represent any source's actual performance."  Sierra 
Club's Opening Br. at 23.  Indeed, "sources' emissions during 
normal operations tend to be less than one half of their 
'worst-case' emissions."  Id.

     Defending its use of RCRA compliance data, EPA argues 
that such data are in fact actual test results and therefore 
reflect actual source performance.  The fact that RCRA data 
measure worst-case conditions, the Agency explains,

     merely confirms that standards based on the data reflect 
     the most adverse conditions that can reasonably be ex-
     pected to recur....  Because these test conditions are 
     specifically designed to help account for operating varia-
     bility, they are more helpful than normal operating data 
     
     would be in estimating performance under a variety of 
     conditions and thus in helping to assure that properly 
     designed and operated sources can achieve the standard.
     
Respondent's Br. at 33 (internal quotation omitted).  Accord-
ing to EPA, because the statute permits it to use available 
information to identify the best-performing sources, and be-
cause RCRA data are available information, it reasonably 
relied on RCRA test results.

     Section 7412(d)(3) requires EPA to set emission floors 
based on "the average emission limitation achieved by the 
best performing 12 percent of the existing sources (for which 
the Administrator has emissions information)."  42 U.S.C. 
s 7412(d)(3)(A) (emphasis added).  We think it not at all 
unreasonable for the Agency to read this language as permit-
ting it to rely on "information" in its database--i.e., the 
RCRA data.  See Chevron, 467 U.S. at 843 ("[A] court may 
not substitute its own construction of a statutory provision for 
a reasonable interpretation made by the administrator of an 
agency.").  And as we pointed out in Sierra Club, "EPA 
typically has wide latitude in determining the extent of data-
gathering necessary to solve a problem.  We generally defer 
to an agency's decision to proceed on the basis of imperfect 
scientific information, rather than to invest the resources to 
conduct the perfect study."  167 F.3d at 662 (internal quota-
tion omitted).  Although sources do spike their feed during 
RCRA compliance tests, the Sierra Club has offered us no 
basis for concluding that using RCRA data would prevent 
EPA from identifying the best-performers and predicting 
their emissions under the "worst reasonably foreseeable cir-
cumstances."  Id. at 665.  In other words, the Sierra Club 
has failed to demonstrate that EPA's model "bears no ration-
al relationship to the reality it purports to represent," Colum-
bia Falls Aluminum Co. v. EPA, 139 F.3d 914, 923 (D.C. Cir. 
1998) (internal quotation omitted).

                                V

     Industry petitioner Continental Cement claims that EPA 
failed to meet its obligations under the Regulatory Flexibility 

Act ("RFA"), as amended by the Small Business Regulatory 
Enforcement Fairness Act of 1996 ("SBREFA").  Pub. L. 
No. 96-354, 94 Stat. 1165-70 (1980), codified at 5 U.S.C. 
ss 601-612, as amended by Pub. L. No. 104-121, 110 Stat. 
864 (1996).  Failure to comply with the RFA "may be, but 
does not have to be, grounds for overturning a rule."  Small 
Refiner Lead Phase-Down Task Force v. EPA, 705 F.2d 506, 
538 (D.C. Cir. 1983).

     Under the RFA, agencies promulgating a rule that will 
have a "significant impact" on "small entities" are required to 
"prepare and make available for public comment an initial 
regulatory flexibility analysis ... [that] describe[s] the impact 
of the proposed rule" on those entities, and to publish a "final 
regulatory analysis" with the final rule.  5 U.S.C. ss 605, 603, 
604.  Small entities include small businesses, small organiza-
tions, and small governmental jurisdictions.  Id. s 601(6).  
The regulatory analysis forces the agency to consider various 
factors set forth in the statute, including "a description of the 
steps the agency has taken to minimize the significant eco-
nomic impact [of the rule] on small entities."  Id. s 604(a) 
(final regulatory flexibility analysis);  see also id. ss 603(b) & 
(c) (initial regulatory flexibility analysis).

     This procedure is intended to evoke commentary from 
small businesses about the effect of the rule on their activi-
ties, and to require agencies to consider the effect of a 
regulation on those entities.  An agency may dispense with 
the regulatory analysis if it certifies "that the rule will not, if 
promulgated, have a significant economic impact on a sub-
stantial number of small entities."  Id. s 605(b).  EPA relied 
on the s 605(b) exception.

     In seeking to determine whether its regulations would have 
"significant economic impact" on a "substantial number of 
small entities," 64 Fed. Reg. at 53,023-24, EPA examined the 
entities that would be "directly impacted"--hazardous waste 
combustion facilities.  EPA concluded that only six of the 
HWC facilities met the definition of a "small business" and 
that only two of these would experience compliance costs in 
excess of one percent of annual sales.  Id. at 53,024.  EPA 

therefore certified that there would be no significant impact 
on a substantial number of small business HWC facilities.  
Id.  EPA then considered the economic effects of the new 
rule on small businesses that generate and blend the hazard-
ous waste consumed in the HWCs.  Id.  EPA did not believe 
the statute required it to conduct this inquiry, but it decided 
to do so in the "spirit" of the RFA because some portion of 
the burden of compliance might pass through to the genera-
tors and blenders of hazardous waste.  Id. at 53,023-24.  As 
to these entities, EPA did not certify that there would be no 
"significant impact" on a "substantial number" of small busi-
nesses.  Id.

     Continental claims that EPA should have considered each 
category of HWCs separately in conducting its "direct im-
pact" analysis.  Continental also maintains that EPA had to 
certify that there would be no substantial effect on generators 
of hazardous waste in order to meet the requirements of the 
RFA.  In response, EPA argues that it complied with the 
requirements of the RFA.

     Continental is a "cement manufacturer" under the relevant 
Small Business Administration Regulations, and therefore 
qualifies as a small business because it has fewer than 750 
employees.  Small Business Size Regulations, 65 Fed. Reg. 
30,836, 30,847 (May 15, 2000).  While Continental's petition 
did not refer to its status as a hazardous waste generator, we 
accept counsel's representation at oral argument that the 
company also generates hazardous waste, and therefore is not 
bringing this claim solely in its capacity as a hazardous waste 
combustor.  Accordingly, Continental has standing.

     We decline to consider Continental's argument that EPA 
should have conducted independent RFA analyses for each 
class of HWCs.  Continental's opening brief contains only a 
single conclusory sentence stating this point, and its reply 
brief does nothing to expand on the subject.  A litigant does 
not properly raise an issue by addressing it in a "cursory 
fashion" with only "bare-bones arguments."  Wash. Legal 
Clinic for the Homeless v. Barry, 197 F.3d 32, 39 (D.C. Cir. 
1997);  Terry v. Reno, 101 F.3d 1412, 1415 (D.C. Cir. 1996);  

Carducci v. Regan, 714 F.2d 171, 177 (D.C. Cir. 1983).  Even 
if the briefing were sufficient to raise this issue, it certainly is 
not persuasive enough to carry Continental's burden of show-
ing that the agency's analysis was arbitrary and capricious.

     As to Continental's second claim regarding generators of 
hazardous waste, this court has consistently rejected the 
contention that the RFA applies to small businesses indirectly 
affected by the regulation of other entities.  Mich. v. EPA, 
213 F.3d 663, 688-89 (D.C. Cir. 2000);  Motor & Equip. Mfrs. 
Ass'n v. Nichols, 142 F.3d 449, 467 (D.C. Cir. 1998);  Mid-Tex 
Elec. Coop. v. FERC, 773 F.2d 327, 342 (D.C. Cir. 1985).  
EPA's rule regulates hazardous waste combustors, not waste 
generators.  We explained in Mid-Tex that the language of 
the statute limits its application to the "small entities which 
will be subject to the proposed regulation"--that is, those 
"small entities to which the proposed rule will apply."  Mid-
Tex Elec. Coop., 773 F.2d at 342 (quoting 5 U.S.C. s 603(b)).  
Congress "did not intend to require that every agency consid-
er every indirect effect that any regulation might have on 
small businesses in any stratum of the national economy."  
Id. at 343.

     Continental acknowledges these precedents, but seeks to 
distinguish this case on the basis that EPA actually intended 
to affect the conduct of hazardous waste generators by rais-
ing the cost of incineration.  This increase in cost would 
create an economic incentive to minimize waste production.  
As evidence, Continental cites the portion of the preamble to 
the rule which states that the rule "fulfills our 1993 and 1994 
public commitments to upgrade emissions standards for 
HWCs.  These commitments are the centerpiece of our Haz-
ardous Waste Minimization and Combustion Strategy."  64 
Fed. Reg. at 52,832.  Continental also refers us to EPA's 
statement that "[a]s today's rule is implemented, the costs of 
burning hazardous waste will increase, resulting in market 
incentives for greater waste minimization."  64 Fed. Reg. at 
53,021.

     Contrary to what Continental supposes, application of the 
RFA does turn on whether particular entities are the "tar-

gets" of a given rule.  The statute requires that the agency 
conduct the relevant analysis or certify "no impact" for those 
small businesses that are "subject to" the regulation, that is, 
those to which the regulation "will apply."  Mid-Tex Elec. 
Coop., 773 F.2d at 342;  5 U.S.C. s 605(b)(3).  EPA's rule 
applies, by its terms, only to HWCs.  The rule will doubtless 
have economic impacts in many sectors of the economy.  But 
to require an agency to assess the impact on all of the 
nation's small businesses possibly affected by a rule would be 
to convert every rulemaking process into a massive exercise 
in economic modeling, an approach we have already rejected.  
See Mid-Tex Elec. Coop., 773 F.2d at 343.

                                VI

     The Environmental Technology Council, a trade association 
representing firms involved in disposal of hazardous wastes, 
petitions for review of 40 C.F.R. ss 63.1206(b)(9) & (10).  
These provisions create alternative emission standards for 
cement kilns and lightweight aggregate kilns.  EPA ex-
pressed concern that some sources might not be able to meet 
some of the MACT standards because of raw material contri-
bution to emissions, and therefore enacted the alternative 
standards for SVMs, LVMs, chlorine and mercury.  Id.;  see 
also 64 Fed. Reg. at 52,962-67;  Revised Standards for Haz-
ardous Waste Combustors, 61 Fed. Reg. 17,358, 17,395 & 
17,405 (Apr. 19, 1996);  Final Response to Comments to the 
Proposed HWC MACT Standards, Volume II:  Compliance:  
Equivalency Determination and Alternate Standards, at 7 
(July 1999). The Council contends that these provisions vio-
late the language of s 7412, and are arbitrary and capricious.  
We refuse to consider these contentions because the Council 
lacks prudential standing.

     The Council rests its claims of constitutional and prudential 
standing on the ground that its members will suffer "econom-
ic and competitive injury, most significantly diminished value 
of capital investment, if competing facilities are excused from 
the MACT standards and thereby avoid the substantial com-
pliance costs."  Envtl. Tech. Council's Opening Br. at 7.  

According to the Council, its members have already made 
substantial investments in various pollution control technolo-
gies and constitute the "best performing sources" to which 
the CAA refers in s 7412(d).  It alleges that its interests in 
ensuring that other HWCs comply with the MACT standards 
(which they concede are purely economic), are congruent with 
the interests protected by the statute, and that it is therefore 
a "suitable challenger" within the zone of interests of the 
CAA.

     The Council appears to have constitutional standing.  It 
claims that there are numerous costs associated with meeting 
the MACT standards, and that EPA's creation of an alterna-
tive standard will save some competitors from those costs.1  
Basic economics indicates that a competitor whose costs are 
lower will be able to provide services at lower cost--and one 
can reasonably expect this to result in lost business to the 
Council's members.  Accordingly, we think the Council has 
met its constitutional obligation to show injury, causation, and 
redressability.  Lujan v. Defenders of Wildlife, 504 U.S. 555, 
560-62 (1992).

     The problem for the Council is that we have previously 
rejected prudential standing in two nearly identical cases in 
which industry groups claimed to be suitable challengers to 
regulations directed at competitors.  Hazardous Waste 
Treatment Council v. EPA, 885 F.2d 918 (D.C. Cir. 1989) 
(HWTC IV);  Hazardous Waste Treatment Council v. EPA, 
861 F.2d 277 (D.C. Cir. 1988) (HWTC II).  To demonstrate 
prudential standing, ordinarily a party must show that the 
interest it seeks to protect "is arguably within the zone of 

__________
     1 At oral argument the court pointed out to counsel that the 
alternative standards require a facility seeking the exemption to 
demonstrate that "even though [it uses] MACT control" technology, 
it still cannot meet the standard.  64 Fed. Reg. at 52,965-66.  In 
light of this, the court inquired what injury the exception might 
inflict on the Council's members.  The attorney for the Council 
explained that the "best performing sources" rely on techniques 
other than just technological aids to reduce pollution, and that these 
techniques cost money to implement.  EPA did not contest this 
representation.

interests to be protected or regulated by the statute ... in 
question."  Ass'n of Data Processing Serv. Orgs. v. Camp, 
397 U.S. 150, 153 (1970).  Under this "zone of interests" test, 
the "essential inquiry is whether Congress 'intended for [a 
particular] class [of plaintiffs] to be relied upon to challenge 
agency disregard of the law.' "  Clarke v. Securities Indus. 
Ass'n, 479 U.S. 388, 399 (1987) (quoting Block v. Cmty. 
Nutrition Inst., 467 U.S. 340, 347 (1984)).  While the "zone of 
interests" test is not meant to be "especially demanding," it 
will deny standing to one claiming to be a "suitable challeng-
er" when "plaintiff's interests are so marginally related to or 
inconsistent with the purposes implicit in the statute that it 
cannot reasonably be assumed that Congress intended to 
permit the suit."  Id.

     In HWTC II we considered the claim of an industry group 
similar to the Council that challenged EPA regulations under 
RCRA and sought tighter controls on competitors.2  861 F.2d 
at 282.  Petitioner there claimed prudential standing because 
"tightening of environmental standards will generally foster 
not only a cleaner environment but also expand the member 
companies' profits, as it will expand the market for their 
services."  Id. Petitioner argued that its interests were "in 
sync" with those served by RCRA.  We rejected this argu-
ment.  The "consumers of the environmental purity afforded 
by RCRA seem highly suitable champions of enforcement."  
Id. at 284.  Petitioner's interest was not in environmental 
purity, but in increasing the regulatory burden on its compet-
itors.  To hold that this satisfied prudential standing would 
be to create "a considerable potential for judicial intervention 
that would distort the regulatory process."  Id. at 285.  We 
followed the same analysis in HWTC IV.  885 F.2d at 922-26.

     The case before us is identical to HWTC II and IV, except 
that the relevant statute is the CAA, not RCRA.  The 

__________
     2 EPA contends that the Council is actually the same organization 
as the HWTC, with a different name.  The Council does not contest 
this representation.  Whether the two organizations are the same 
does not matter here, however, as it is clear that their positions and 
arguments are identical.

Council thinks this makes all the difference--that by adopting 
a technology-based approach to emissions standards, Con-
gress aligned the interests of competitors and environmental-
ists in such a way as to bring the former into the zone of 
interests.  We disagree.  The Council has identified nothing 
to indicate that Congress' shift to a technology-based ap-
proach was anything more than a determination that this 
would provide a more workable basis for promulgating stan-
dards.  The statute's language indicates that, contrary to the 
Council's contention, Congress' "evident purpose" was not to 
"compel[ ] those sources with less-than-best pollution control 
to invest in upgraded equipment."  Neither the statute nor 
the rules actually require HWCs to use the same methods of 
emission control used by the best performing sources;  they 
must only meet the standards of those that do.  See 42 U.S.C. 
s 7412(d)(2);  64 Fed. Reg. at 52,963 n.255.  As in the HWTC 
cases, the Council's interest lies only in increasing the regula-
tory burden on others.  See HWTC IV, 885 F.2d at 924-25;  
HWTC II, 861 F.2d at 285.  The Council therefore lacks 
prudential standing.

                               VII

     We remand the HWC floors to EPA for further proceed-
ings consistent with this opinion.  In so doing, we emphasize 
that we do not expect the impossible of the Agency.  Floors 
need not be perfect mirrors of the best performers' emissions.  
But whether EPA chooses end-of-stack technology or feed-
rate as the MACT control, or abandons the MACT approach 
altogether, CAA section 7412(d)(3), as interpreted by this 
court in Sierra Club and National Lime II, requires that 
floors reflect a reasonable estimate of the emissions 
"achieved" in practice by the best-performing sources.  See 
Nat'l Lime II, 233 F.3d at 632.

     Because EPA will have to set new floors, we need not 
address the Sierra Club's additional arguments that in decid-
ing whether to set beyond-the-floor standards pursuant to 
CAA section 7412(d)(2), EPA failed to consider several non-
air quality health and environmental impacts that commen-

ters claimed result from HWC emissions, as well as whether 
stricter standards based on additional controls would be 
achievable.  See id. at 634 (declining to address beyond-the-
floor arguments regarding two HAPs because the floors for 
those HAPs were being remanded).  Nor, for the same 
reason, need we consider industry petitioners' challenges to 
specific standards.

     Finally, the Sierra Club requests that we leave the current 
regulations in place during remand in order to "avoid serious 
adverse implications for public health and the environment 
that would result from vacating the regulations (and thus 
allowing hazardous waste combustors to emit even more 
HAPs than allowed by the regulation[s] ... )."  Sierra Club's 
Opening Br. at 36.  Though we granted similar requests in 
Sierra Club, 167 F.3d at 664, and National Lime II, 233 F.3d 
at 635, we think this case is different:  in Sierra Club, there 
were no industry petitioners, and in National Lime II, we 
considered and rejected industry claims.  Here, in contrast, 
we have chosen not to reach the bulk of industry petitioners' 
claims, and leaving the regulations in place during remand 
would ignore petitioners' potentially meritorious challenges.  
For example, industry petitioners may be correct that EPA 
should have exempted HWCs from regulatory limits during 
periods of startup, shutdown, and malfunction, permitting 
sources to return to compliance by following the steps of a 
startup, shutdown, and malfunction plan filed with the Agen-
cy.  We have similar doubts about EPA's decision to require 
sources to comply with standards even during openings of 
emergency safety valves caused by events beyond the 
sources' control.  It is also possible that some of the emission 
standards themselves would not have withstood arbitrary and 
capricious analysis:  when setting the beyond-the-floor stan-
dard for dioxin emissions from lightweight aggregate kilns, 
EPA may have relied inappropriately on data from cement 
kilns (a method it had previously rejected) to demonstrate 
that the standard was achievable;  in setting the beyond-the-
floor standard for semi-volatile metal emissions from cement 
kilns, EPA may have exceeded its statutory mandate by 

relying on policy objectives other than those enumerated in 
section 7412(d).

     In light of these circumstances, we think the better course 
of action is to vacate the challenged regulations.  Because 
this decision leaves EPA without standards regulating HWC 
emissions, EPA (or any of the parties to this proceeding) may 
file a motion to delay issuance of the mandate to request 
either that the current standards remain in place or that EPA 
be allowed reasonable time to develop interim standards.  See 
Columbia Falls, 139 F.3d at 924 ("If EPA wishes to promul-
gate an interim treatment standard, the Agency may file a 
motion in this court to delay issuance of this mandate in order 
to allow it a reasonable time to develop such a standard.").

                                                                      So ordered.