Advocates v. U.S. Forest Serv.
This text of 333 F. Supp. 3d 1107 (Advocates v. U.S. Forest Serv.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
PHILIP A. BRIMMER, United States District Judge
This matter is before the Court on plaintiffs' First Amended Complaint for Declaratory *1113and Injunctive Relief and Petition for Review of Agency Action [Docket No. 39] and Plaintiffs' Amended Opening Brief on the Merits [Docket No. 47]. Plaintiffs challenge the approval of the North Fork Exception to the Colorado Roadless Rule ("CRR") by the United States Forest Service ("Forest Service") and the joint approval of lease modifications in favor of defendant-intervenor Mountain Coal Company, LLC ("Mountain Coal") by the Forest Service and Bureau of Land Management ("BLM") (collectively with the Forest Service and the individual defendants named in their official capacities, the "Agencies"). Plaintiffs' claims arise under the federal Administrative Procedures Act ("APA"),
I. BACKGROUND
This lawsuit is part of an ongoing dispute over proposed exploration and coal mining activities in and around the Sunset Roadless Area near the west flank of Mount Gunnison in Colorado. As explained by District Judge R. Brooke Jackson in his 2014 decision:
The Sunset Roadless Area contains 5,800 acres of relatively undeveloped forest and scrub land in a part of western Colorado called the North Fork Valley. Mount Gunnison and the West Elk Wilderness lie to the east....[T]here have been human activities in the area making it less pristine than the nearby West Elk Wilderness Area. But at the same time the area is undoubtedly wild, relatively empty, and home to diverse flora and fauna.
Recreational opportunities are available in the area as well,...there are two trails...- the Sunset Trail and Trail 8152 - though they do not receive heavy use. The area is more popular for dispersed recreational activities.
High Country Conservation Advocates v. United States Forest Serv. ,
The Sunset Roadless Area is located on National Forest lands managed by the Forest Service. The BLM is, however, responsible for managing coal leases on Forest Service land. See
Mountain Coal currently operates the West Elk Coal Mine, an underground mine that runs below parts of the Grand Mesa, Uncompahgre, and Gunnison National Forests. R. at FSLeasingII-0000046; see also WildEarth Guardians v. U.S. Forest Serv. ,
The present dispute has its roots in earlier administrative approval processes and the lawsuit between the parties that concluded with Judge Jackson's order in *1114HighCountry . In 2012, the Forest Service approved the CRR, which "extended roadless protections to a vast amount of acreage that was previously unprotected under the national rule in exchange for various concessions from environmentalists." High Country ,
On June 27, 2014, Judge Jackson issued his order on the merits in High Country .
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PHILIP A. BRIMMER, United States District Judge
This matter is before the Court on plaintiffs' First Amended Complaint for Declaratory *1113and Injunctive Relief and Petition for Review of Agency Action [Docket No. 39] and Plaintiffs' Amended Opening Brief on the Merits [Docket No. 47]. Plaintiffs challenge the approval of the North Fork Exception to the Colorado Roadless Rule ("CRR") by the United States Forest Service ("Forest Service") and the joint approval of lease modifications in favor of defendant-intervenor Mountain Coal Company, LLC ("Mountain Coal") by the Forest Service and Bureau of Land Management ("BLM") (collectively with the Forest Service and the individual defendants named in their official capacities, the "Agencies"). Plaintiffs' claims arise under the federal Administrative Procedures Act ("APA"),
I. BACKGROUND
This lawsuit is part of an ongoing dispute over proposed exploration and coal mining activities in and around the Sunset Roadless Area near the west flank of Mount Gunnison in Colorado. As explained by District Judge R. Brooke Jackson in his 2014 decision:
The Sunset Roadless Area contains 5,800 acres of relatively undeveloped forest and scrub land in a part of western Colorado called the North Fork Valley. Mount Gunnison and the West Elk Wilderness lie to the east....[T]here have been human activities in the area making it less pristine than the nearby West Elk Wilderness Area. But at the same time the area is undoubtedly wild, relatively empty, and home to diverse flora and fauna.
Recreational opportunities are available in the area as well,...there are two trails...- the Sunset Trail and Trail 8152 - though they do not receive heavy use. The area is more popular for dispersed recreational activities.
High Country Conservation Advocates v. United States Forest Serv. ,
The Sunset Roadless Area is located on National Forest lands managed by the Forest Service. The BLM is, however, responsible for managing coal leases on Forest Service land. See
Mountain Coal currently operates the West Elk Coal Mine, an underground mine that runs below parts of the Grand Mesa, Uncompahgre, and Gunnison National Forests. R. at FSLeasingII-0000046; see also WildEarth Guardians v. U.S. Forest Serv. ,
The present dispute has its roots in earlier administrative approval processes and the lawsuit between the parties that concluded with Judge Jackson's order in *1114HighCountry . In 2012, the Forest Service approved the CRR, which "extended roadless protections to a vast amount of acreage that was previously unprotected under the national rule in exchange for various concessions from environmentalists." High Country ,
On June 27, 2014, Judge Jackson issued his order on the merits in High Country . He found that the lease modification's final environmental impact statement improperly discussed only the beneficial impacts expected to result from additional mining, but failed to consider environmental harms that would result. High Country ,
On September 11, 2014, with the benefit of the parties' briefing on the appropriate remedy, Judge Jackson vacated the approvals of the lease modifications and the exploration plans.
*1115High Country , No. 13-cv-01723, Docket No. 101 at 7. With respect to the CRR, Judge Jackson severed the North Fork Exception from the remainder of the CRR and vacated the North Fork Exception.
After the High Country court entered judgment for plaintiffs, Mountain Coal renewed its mine expansion applications. R. at FSLeasingII-0000132 ("Applications for lease modification were resubmitted to BLM on January 30, 2015 and sent to the Forest Service for consent to lease."). It is the regulatory actions taken by the Forest Service and BLM in relation to these renewed applications that are at issue in this proceeding. The Forest Service initiated a rulemaking to reimplement the North Fork Exception with the purpose of "provid[ing] management direction for conserving about 4.2 million acres of [Colorado roadless areas] while addressing the State's interest in not foreclosing opportunities for exploration and development of coal resources in the North Fork Coal Mining Area." R. at CRR2-0000011. The Forest Service also reaffirmed that the new rulemaking was meant to accomplish the purposes of the 2012 CRR rulemaking.
In April 2017, the BLM, along with Forest Service and other participating agencies, issued a supplemental environmental impact statement related to the lease modifications (the "Leasing SFEIS") with the purposes to "facilitate recovery of federal coal resources in an environmentally sound manner" and "ensure that compliant and super-compliant coal reserves are recovered *1116and not bypassed." R. at FSLeasingII-0000135. The Leasing SFEIS disclosed the anticipated greenhouse gas emissions from a mine expansion, but did not use the social cost of carbon protocol to quantify expected environmental harms. R. at FSLeasingII-0000241. On December 11, 2017, the Forest Service consented to the lease modifications. R. at FSLeasingII-0000023. On December 15, 2017, the Department of the Interior approved the lease modifications. R. at BLM000017.
On December 15, 2017, plaintiffs filed their complaint in this action. Docket No. 1. Three days later, plaintiffs moved for a preliminary injunction and temporary restraining order ("TRO"). Docket No. 8. On December 21, 2017, the Court held a hearing on plaintiffs' motion for a TRO. Docket No. 26. The Court denied plaintiffs' request for a TRO and set a preliminary injunction hearing.
II. AMICUS MOTION
The Institute requests permission to file an amicus brief in support of plaintiffs. Docket No. 41. The Agencies and Mountain Coal (collectively, "defendants") oppose. They argue that the Institute's motion is untimely, that the Institute is not a disinterested party because it submitted comments during the administrative proceedings, and that plaintiffs are represented by competent counsel who address the same issues in plaintiffs' briefing. See Docket No. 53 at 6-12; Docket No. 54 at 2-4.
Courts have broad discretion in determining whether to allow participation by amicus curiae. WildEarth Guardians v. Lane ,
The Court finds that the Institute's participation as amicus curiae is warranted and will grant its motion. Although the Institute addresses the same issues as the parties, the Court finds its unique perspective *1117helpful in understanding and analyzing the issues presented. See Hydro Res., Inc. v. EPA ,
III. STANDING
The party seeking redress bears the burden of establishing standing. Colorado Outfitters Ass'n v. Hickenlooper ,
In conjunction with their merits brief, plaintiffs filed updated declarations from their members that addressed events occurring after the denial of plaintiffs' TRO motion. See Docket Nos. 47-1, 47-2, 47-7, 47-8. Mountain Coal challenges the standing of plaintiffs, arguing that plaintiffs' members are unlikely to visit the Sunset Roadless Area in the future because of the road construction that occurred after the Court denied the TRO. Docket No. 52 at 10. Mountain Coal argues that the updated declarations of plaintiffs' members that they would be deterred from returning to the Sunset Roadless Area by road construction are "not credible" because either "(1) the TRO Declarants' December testimony was exaggerated, to accentuate the perception of harm and improve their chances of obtaining injunctive relief; or (2) their updated testimony is misleading, promising future visits where none are in fact likely." Id. at 13 (emphasis omitted). However, contrary to Mountain Coal's characterization of them, the declarations do not suggest that plaintiffs' members only visit undisturbed wilderness or that the limited damage that has occurred thus far would rule out future visits to the areas at issue. See, e.g. , Docket No. 47-1 at 26, ¶ 26 ("I intend to return to hike, view wildlife, and enjoy the natural and undeveloped nature of the area in June of 2018, if not earlier....[R]oad construction in this area...will irreversibly alter the natural and undeveloped character of the area and irreparably diminish my enjoyment of future recreation."); Docket No. 47-2 at 18-19, ¶ 39 ("My favorite time of year to visit is in the fall....I hope to have this experience this coming year and for years to come."). The Court finds the declarations establish potential harm to plaintiffs' members' aesthetic and recreational interests, which is sufficient to confer standing on plaintiffs. See Summers v. Earth Island Inst. ,
IV. ADMINISTRATIVE APPEAL
A. Waiver and Res Judicata
As an initial matter, the Court addresses defendants' arguments that plaintiffs waived, or are barred from raising, arguments that were not raised during the administrative proceedings before the decision in High Country . In particular, defendants argue that plaintiffs cannot raise the Pilot Knob alternative, the lack of baseline environmental information, and the methane flaring alternative. See Docket No. 51 at 13-16, 18-19, 32-33.
Defendants' preclusion and waiver arguments are based on the argument that the High Country court "remanded" issues to the Agencies for consideration. See, e.g. , Docket No. 51 at 18 ("Plaintiffs, moreover, cannot elude claim preclusion by directing their baseline arguments at the Exception SFEIS, because baseline information was not among the deficiencies the [ High Country ] Court instructed the USDA to address on remand."); Docket No. 52 at 15 ("Fundamentally, the Pilot Knob, Baseline Data, and Methane Flaring claims are attempts to inject new arguments or relitigate old issues that are well beyond the scope of the supplemental FEIS ordered in the [ High Country ] remand and are thus waived."). However, no such remand occurred. Defendants did argue in High Country that vacatur was inappropriate and that the Agencies should be allowed to supplement their findings through a continuation of the administrative procedure. High Country , No. 13-cv-01723, Docket Nos. 97 at 1-2, 98 at 3 ("Vacatur would require...starting the leasing process from scratch."). But the court rejected these arguments, and it vacated the Forest Service and BLM's administrative actions as unlawful. High Country , No. 13-cv-01723, Docket Nos. 101 at 7, 102 at 2. The Forest Service and BLM later initiated new administrative approval processes based on a renewed application by Mountain Coal. R. at CRR2-0000013-14; R. at FSLeasingII-0000132. In its new rulemaking, the Forest Service considered a new alternative to the North Fork Exception that it had not considered during the 2012 rulemaking process. Compare R. at CRR-0153301 with R. at CRR2-0000012. Defendants provide no basis for barring plaintiffs from proposing new alternatives where the agency itself reopened the alternatives analysis. The cases that defendants cite involve remand or instances where the Court ordered specific analysis, which are inapposite here.3 The newly issued SFEIS and lease modifications were "supplemental" administrative actions only in the sense that they incorporated by reference substantial information from earlier, vacated administrative actions. See, e.g. , R. at CRR2-0000014 (explaining that the Exception SFEIS addressed several new issues, but incorporated by reference the earlier record because the "Colorado Roadless Rule interdisciplinary team determined that the majority of the analyses in the 2012 FEIS did not warrant supplementation due to changed circumstances and/or new information"). In such circumstances, *1119plaintiffs are not barred by res judicata from proposing new alternatives or considered to have waived arguments not raised in prior administrative proceedings. Ohio Valley Envtl. Coal. v. Aracoma Coal Co. ,
B. Standard of Review
Pursuant to the Administrative Procedure Act ("APA"),
"In addition to requiring a reasoned basis for agency action, the 'arbitrary or capricious' standard requires an agency's action to be supported by the facts in the record." Olenhouse v. Commodity Credit Corp. ,
A presumption of validity attaches to the agency action and the burden of proof rests with the appellants who challenge such action. Citizens' Comm. to Save Our Canyons v. Krueger ,
C. National Environmental Policy Act
NEPA declares the federal government's policy to "use all practicable means and measures, including financial and technical assistance...to create and maintain conditions under which man and nature can exist in productive harmony."
Before an agency may take a "major Federal action[ ] significantly affecting the quality of the human environment," it must prepare an in-depth environmental impact statement ("EIS").
Although NEPA imposes procedural requirements on federal agencies, NEPA does not dictate the substantive results of an agency's analysis, and "[s]o long as the record demonstrates that the agencies in question followed the NEPA procedures, which require agencies to take a 'hard look' at the environmental consequences of the proposed action, the court will not second-guess the wisdom of the ultimate decision." Utahns for Better Transp. ,
D. Failure to Consider Alternatives
Under NEPA, agencies are required to "[r]igorously explore and objectively evaluate all reasonable alternatives, and for alternatives which were eliminated from detailed study, briefly discuss the reasons for their having been eliminated."
The reasonableness of the alternatives considered is measured against two guideposts. First, when considering agency actions taken pursuant to a statute, an alternative is reasonable only if it falls within the agency's statutory mandate. Second, reasonableness is judged with reference to an agency's objectives for a particular project.
Plaintiffs argue that defendants failed to consider reasonable alternatives to the North Fork Exception and lease modifications. Regarding the exception, plaintiffs argue that the Forest Service should have considered an alternative protecting the Pilot Knob Roadless Area. Docket No. 47 at 10-14. With respect to the lease modifications, plaintiffs argue that the BLM should have considered an alternative that required Mountain Coal to flare methane vented from the mine.
1. Pilot Knob Alternative
In its rulemaking, the Forest Service considered three alternatives in detail: Alternative A, which was the required no action alternative, and two action alternatives - Alternative B, the adopted North Fork Exception, and Alternative C, which left roadless protection in place for those portions of the three roadless areas previously found to be wilderness capable.5 R. at CRR2-0000020-24. Plaintiffs proposed an additional alternative, referred to as Pilot Knob Alternative, that would maintain the Pilot Knob Roadless Area as subject to the CRR and limit the exception allowing road construction proposals to the Sunset and Flatirons Roadless Areas. R. at CRR2-0105826. The Pilot Knob Roadless Area lacks any active mining operations, is the smallest of the three roadless areas subject to the North Fork Exception, and is expected to contain the least coal.
The Forest Service declined to provide a detailed analysis of the Pilot Knob Alternative, stating that it
was dismissed from detailed analysis because the Colorado Roadless Rule is considering access to coal resources within the North Coal Mining Area over the long-term based on where recoverable coal resources might occur. The Rule preserves the option of future coal exploration and development by allowing temporary road construction for coal exploration and coal-related surface activities. One of the State-specific concerns is the stability of local economies in the North Fork Valley and recognition of the contribution that the coal industry provides to those communities. Preserving coal exploration and development opportunities in the area is a means of providing community stability.
R. at CRR2-0000029. The Forest Service also rejected plaintiffs' wildlife-related concerns stating, in part, that such concerns "will be addressed and mitigated as appropriate in future NEPA evaluations, forest plan consistency reviews, and Forest Service decisions." R. at CRR2-0000327.
Plaintiffs argue that the Forest Service violated NEPA because the Pilot Knob Alternative was a reasonable alternative meeting the purpose and need of the rulemaking that is significantly distinguishable from the two action alternatives that were considered in detail. Docket No. 47. The Agencies respond that the Pilot Knob Alternative "would have foreclosed long-term opportunities" such as reopening the currently-idled mine in the area and was similar to Alternative C insofar as it increased the protected acreage. Docket No. 51 at 12, 17.6 Mountain Coal argues that the Pilot Knob alternative is not significantly distinguishable from Alternative C and that the adopted North Fork Exception does not itself allow road construction in the Pilot Knob area without further approvals. Docket No. 52 at 16-17.
The Agencies' claim that the Pilot Knob alternative is "impractical and ineffective and, therefore, not reasonable" because it forecloses long-term opportunities for coal mining is hard to reconcile with Alternative C. Docket No. 51 at 16. Under NEPA, federal agencies are required to "study, develop, and describe appropriate alternatives to recommended courses of action in any proposal which involves unresolved conflicts concerning alternative uses of available resources."
The Court, however, finds that this apparent contradiction does not demonstrate that the Forest Service violated NEPA or acted arbitrarily. The additional areas that would have been protected under Alternative C are all within the Flatirons and Sunset Roadless Areas, not in the Pilot Knob Roadless Area. R. at CRR2-0000024. Both action alternatives contemplated opening the same section of the Pilot Knob area to mining-related road construction, namely, the area where the idled Elk Creek Mine is located. Compare R. at CRR2-0000023 with CRR2-0000025. The record indicates that the Elk Creek Mine was idled "due to mining difficulties and underground safety issues," but that it still contains recoverable coal. R. at CRR2-0000036. With this context, the Forest Service's justification for declining to give detailed consideration to the Pilot Knob Alternative is reasonable. See Wyoming v. U.S. Dep't of Agric. ,
2. Methane Flaring Alternative
Methane and coal exist together in underground coal deposits and, as a result, methane is released during coal mining. For the safety of mine workers, regulations require that methane be kept *1124below certain levels, which is generally accomplished by diluting the gas and venting it into the atmosphere. R. at FSLeasingII-0000183. Methane flaring is a process by which methane that would otherwise vent from a coal deposit is captured and burned. See R. at FSLeasingII-0000188. Because the combustion products (mostly carbon dioxide and water) are less potent greenhouse gases than methane, this process reduces the greenhouse gas impact of accessing buried coal.
During the North Fork Exception rulemaking, plaintiffs argued that the Forest Service should "analyze in full...at least one action alternative that significantly reduces the climate change impacts of methane emissions caused by mining [by requiring mines to] use best available technology to capture and/or combust... methane to be emitted from the mine, including from methane drainage wells." R. at CRR2-0105833. In the Exception SFEIS, the Forest Service declined to consider in detail methane flaring as an alternative because "methane flaring is best considered at the leasing stage when there is more information on the specific minerals to be developed and the lands that would be impacted by a flaring operation." R. at CRR2-0000295.
At the leasing stage, the Agencies did not consider flaring as an alternative, but did discuss methane flaring as a potential mitigation measure. FSLeasingII-0000182-0000186. The lease modifications, however, also put off a decision on whether to require methane flaring to a later point. The Leasing SFEIS states that methane flaring was not considered as an alternative because there are no legal limits on methane emissions and "it would be arbitrary to mandate its control when effectiveness of the mitigation is only measured in tons of CO2e8 and not by effects on either surface or non-mineral resources." R. at FSLeasingII-0001100-1101. The report noted that expected greenhouse gas emissions had been disclosed and stated that "NEPA does not require us to mitigate all impacts (particularly in an EIS) or to include anything beyond 'appropriate mitigation measures' ( 40 CFR 1502.14(f) ), which in this case are lease stipulations that we can ensure can be implemented at this stage of the process." R. at FSLeasingII-0001100. The Forest Service's record of decision states that methane flaring was not considered in detail "because it, like all other methane mitigation measures, requires detailed engineering and economic considerations that would occur later in the process." R. at FSLeasingII-0000079. The Agencies also noted that Section 2.6 of the lease stipulations "require additional analysis" of the feasibility of methane use or capture. R. at FSLeasingII-0001100. More specifically, the modified leases require periodic reporting on "changing technical and economic parameters that can either enable or create barriers to the implementation or adoption of a particular methane control strategy." R. at FSLeasingII-0000185.
Plaintiffs argue that the Agencies are impermissibly delaying making a decision on methane flaring and that requiring methane flaring represented a reasonable *1125alternative to the proposed action alternatives for the lease modifications. Docket No. 47 at 39. Plaintiffs note that methane flares have been used safely, both abroad and at the idle Elk Creek Mine. Id. at 40-44. Plaintiffs argue that the current circumstances are distinguishable from WildEarth Guardians v. U.S. Forest Serv. ,
Defendants respond that methane flaring was properly considered along with other mitigation measures and that the lease modifications provide for an appropriate multi-stage analysis of whether methane flaring is appropriate. Docket No. 51 at 33-34. Defendants argue that, through the periodic reports to the BLM required by the lease modifications, Mountain Coal will be required to implement methane capture or flaring when it is economically feasible to do so. Id. at 35.10
In their reply, plaintiffs argue that defendants failed to address whether methane flaring should have been considered as an alternative and, therefore, that defendants have conceded that mandatory methane flaring "meets the project's purpose." Docket No. 55 at 22.
Whether methane flaring is considered as an alternative or a mitigation measure appears to be of little moment here. In considering methane flaring as an alternative, instead of a mitigation measure, the Agencies would not have avoided the dilemmas that they encountered during the *1126lease modification process, namely, that a different agency, the MSHA, is responsible for mine safety, MSHA would need to approve any proposed flaring system, MSHA has never approved a flaring system for an active coal mine, and MSHA has not received any proposal for a flaring system at the West Elk Mine. R. at FSLeasingII-0000189. Plaintiffs do not dispute that Mountain Coal needs to design the proposed mine ventilation system in order to propose a ventilation system to the MSHA and that such a design is dependent on the location of coal to be mined, which Mountain Coal has not yet explored, but is currently doing pursuant to the lease. See Docket No. 55 at 23. Moreover, even without detailed consideration of a methane flaring alternative, the Agencies' task under NEPA included consideration of mitigation of environmental impacts,
The determination whether a particular site-specific analysis can wait until a later decisionmaking stage is a "fact-specific inquiry" that is "tied to the existing environmental circumstances, not to the formalities of agency procedures." See New Mexico ex rel. Richardson ,
E. Failure to Disclose and Consider Information
Courts apply a "rule of reason standard (essentially an abuse of discretion standard) in deciding whether claimed deficiencies in a [SFEIS] are merely flyspecks, or are significant enough to defeat the goals of informed decisionmaking and informed public comment." Lee v. U.S. Air Force ,
1. Baseline Environmental Data
Plaintiffs argue that the Forest Service violated NEPA by failing to disclose and consider the baseline environmental conditions in the three roadless areas subject to the North Fork Exception necessary to assess the environmental impacts of each alternative. Docket No. 47 at 14-15. Plaintiffs claim that the "Exception SFEIS provides virtually no data about the resources - including vegetation, watersheds, surface and ground water quality, hydrology, visual resources, topography, and recreational resources - across the roadless areas that would be harmed" by the construction of surface roads and pads to allow for mining. Id. at 16. Plaintiff argues that, by failing to provide such baseline environmental data, defendants failed to "describe the environment of the area(s) to be affected" by the North Fork Exception as required by
Defendants respond that the Agencies developed and disclosed relevant baseline environmental information concerning the roadless areas during the earlier CRR rulemaking, "particularly with respect to big game habitat and wetlands." Docket No. 51 at 20. With regard to plaintiffs' argument that the roadless areas vary, defendants argue that plaintiffs "have failed to explain or demonstrate with any supporting authority how any differences in habitat across the Pilot Knob, Sunset, and Flatirons roadless areas, whether major or minor, would somehow increase impacts to this resource so as to alter the agency's analysis in any meaningful way." Docket No. 51 at 21.
The 2012 CRR FEIS contains a large amount of general information about the environments of the areas subject to the CRR as well as information about the ranges and critical habitat of sensitive, threatened, and endangered species that is specific to each of the 363 separate roadless areas. R. at CRR-0153489-153501; see also CRR-0077060-77110 (underlying data on terrestrial species habitat). The CRR FEIS also contains a description of the expected effects of road construction on such environments, R. at CRR-0153503-153505, and expected environmental effects under the preferred alternative, which included the North Fork Exception. R. at CRR-0153507-13. This information is incorporated by reference into the Exception SFEIS. R. at CRR2-0000014. The Exception SFEIS provided supplemental environmental information specific to the three roadless areas that is focused on the habitat of sensitive, threatened, and endangered species in addition to aquatic animals. R. at CRR2-0000065-77, 84-87. The Exception SFEIS also distinguishes the environmental characteristics of the three roadless areas with respect to the "wilderness capable" areas that would have been excluded from the exception under Alternative C and concludes that Alternative C would "reduc[e] future concerns" related to sensitive fish by removing their habitat from the Exception area.
*1128R. at CRR2-0000088. Plaintiffs do not challenge the fact that the information in the 2012 CRR FEIS or the supplementary information accurately reflects current environmental conditions in roadless areas subject to the North Fork Exception. See Docket No. 47 at 14-18.
Although plaintiffs are correct that the Agencies bear the burden to gather and analyze baseline information required by NEPA, Docket No. 55 at 11 (citing Half Moon Bay Fishermans' Mktg. Ass'n v. Carlucci ,
2. Greenhouse Gas Emissions
Consistent with governing regulations, the Agencies' analyses of climate change impacts during the administrative proceedings incorporated prior work. By regulation, "[a]gencies shall incorporate material into an environmental impact statement by reference when the effect will be to cut down on bulk without impeding agency and public review of the action."
Plaintiffs challenge the Agencies' disclosure of the environmental impacts of climate change with respect to both the North Fork Exception and the lease modifications. With respect to the North Fork Exception, plaintiffs argue that the Forest Service's calculations regarding increased pollution fail to account for increased demand for electricity resulting from additional coal supplies lowering electricity prices. Docket No. 47 at 21. With respect to the lease modifications, plaintiffs argue that the Leasing SFEIS should have included further discussion of the expected climate change-related environmental impacts of the lease modification, including application of the social cost of carbon protocol.
a. Increased Demand for Electricity
Plaintiffs make a straightforward supply and demand argument that an increased supply of coal will reduce the cost of coal generally. Docket No. 47 at 20. And, because coal is burned to create electricity, cheaper coal will result in cheaper electricity, leading, in turn, to an increased demand for electricity.
The Agencies respond that, "[i]n time, [plaintiffs'] conclusions may or may not prove true (despite Plaintiffs' certainty), but in 2016 they were unquestionably speculative and thus not useful to decision makers or the public." Docket No. 51 at 23. The Agencies note that the Exception SFEIS disclosed the assumptions underlying the analysis, including a steadily increasing demand for electricity and that electricity generation across all fuel sources would remain constant, and also identified many other factors that could affect demand for electricity and related greenhouse gas emissions.
Change in consumption of fuels by power generating facilities in response to changes in fuel prices varies by supply region (e.g., natural gas-coal elasticity *1130ranges from 0.05 to 0.38; -0.14 to -0.22 for coal's own price elasticity), as expected given differing market, technology, policy, and demand conditions across regions (see Appendix C). However, consumption of coal is generally, relatively unresponsive to prices (inelastic).
R. at CRR2-0000117. In responding to plaintiffs' comments about increases in demand for electricity, the Forest Service stated, in part:
There is no clear evidence to support the suggestion that making available a pre-determined quantity of coal would lower coal prices enough to cause an increase in electric demand in a decision of this magnitude. While it is true that under the law of demand 'a decrease in the own price of a normal good will cause quantity demanded to increase'; the responsiveness of how quantity demanded changes relative to a change in price is more nuanced (own-price elasticity) and depends upon numerous factors such as the availability of substitutes, length of adjustment period and the budget share spent on the good. In the case of electric power generation, the consumption of coal is generally, relatively unresponsive to prices (inelastic).
* * *
There is also a lack of data supporting the phenomena where retail electric rates would decrease enough to cause a noticeable change in electric demand due to changes in fuel prices, in response to shifts in fuel supply of the magnitude modeled in this action. In this present case, evidence has not been presented to support the claim that electricity demand would change with the addition or subtraction of projected amounts of North Fork coal from the coal supply. The assumption that [the] IPM [method used] does not incorporate the basic economic principle of price elasticity of demand is mistaken. In actuality, IPM does not hard-wire coal demand or coal plant dispatch; rather, the demand for coal is allowed to be determined in a competitive environment with other generating resources.
R. at CRR2-0000342. The Exception SFEIS also included an appendix, Appendix C, discussing the economic analysis underlying the Forest Service's conclusions. R. at CRR2-0000233-67. Based on these disclosures, the Agencies argue that the "record reflects that the agency examined the issue [of electricity demand] in considerable detail, acknowledged the possibility of price variation, dependent of course on a number of factors difficult to predict, and ultimately disagreed with Dr. Power's conclusions." Docket No. 51 at 25-26.
Under NEPA, the Agencies need only disclose effects of a project that are "reasonably foreseeable."
The Court finds that WildEarth Guardians is distinguishable. The Forest Service provided significant evidence and analysis showing that the basic supply and demand relationship asserted by plaintiffs is questionable *1131because of other factors that bear on the relationship between coal availability and electricity demand. In particular, with respect to future demand for coal to produce energy, the Exception SFEIS notes that numerous factors affect whether other energy sources can substitute for coal and that power plants operate subject to numerous technological and regulatory limitations that determine whether coal generally, or coal of the particular type recoverable in the North Fork area, can be substituted for other fuels, regardless of its price. R. at CRR2-0000250. Likewise, with respect to electricity consumption, the Exception SFEIS discusses how numerous factors other than fuel price influence the cost of and demand for electricity. R. at CRR2-0000342. In light of these disclosures, the Court is unpersuaded by plaintiffs' argument that the Agencies failed to take a hard look at climate impacts because the Agencies disagreed that one factor in a complex analysis, an increased supply of a particular type of coal, would lead to additional climate impacts through a mechanism, namely, the fluctuating demand for electricity, that is itself subject to various disclosed factors. Unlike in WildEarth Guardians , the Court finds no basis to conclude that the Forest Service "[f]ail[ed] to disclose the data critical to the key distinction between two alternatives" leading to "an uninformed agency decision" that "did not adequately disclose the [Forest Service's] rationale to the public." WildEarth Guardians ,
b. Repeal of the Clean Power Plan
Plaintiffs argue that, in approving the lease modifications, the Agencies could not rely on the social cost of carbon analysis in the Exception SFEIS because of changes to the expected regulations that will govern the use of coal to produce electricity in the future. Docket No. 47 at 24-25. Specifically, plaintiffs claim that the Exception SFEIS's estimates of carbon emissions and the social cost of those emissions were outdated and required revision in light of the intervening Administration announcement that it planned to repeal the Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Utility Generating Units, commonly referred to as the "Clean Power Plan." Id. at 35. The Clean Power Plan was adopted by the EPA on October 23, 2015.
*1132As the Agencies note, the High Country decision did not mandate that the Agencies apply the social cost of carbon protocol in their decisions; the court merely found arbitrary the Agencies' failure to do so without explanation. See High Country ,
In light of the social cost of carbon analysis in the Exception SFEIS addressing the same areas, the Court finds that the omission of a social cost of carbon analysis from the leasing SFEIS was not an abuse of discretion. While such a project-specific analysis could be helpful, the Agencies' reasoned decision that it was unnecessary to provide a project-level analysis with revisions specific to the potential repeal of the Clean Power Plan does not constitute an omission "significant enough to defeat the goals of informed decisionmaking and informed public comment." Lee ,
V. CONCLUSION
For the above-stated reasons, it is
ORDERED that the Motion of the Institute for Policy Integrity at New York University School of Law to Participate as Amicus Curiae and with Proposed Amicus Brief in Support of Plaintiffs [Docket No. 41] is GRANTED . It is further
ORDERED that the Agencies' decisions are AFFIRMED , judgment shall enter in favor of defendants, and this case shall be closed in its entirety.
Related
Cite This Page — Counsel Stack
333 F. Supp. 3d 1107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/advocates-v-us-forest-serv-cod-2018.