AES Puerto Rico, L.P. v. Trujillo-Panisse

133 F. Supp. 3d 409, 2015 U.S. Dist. LEXIS 135043, 2015 WL 5734410
CourtDistrict Court, D. Puerto Rico
DecidedOctober 1, 2015
DocketCivil No. 14-1767 (FAB)
StatusPublished
Cited by16 cases

This text of 133 F. Supp. 3d 409 (AES Puerto Rico, L.P. v. Trujillo-Panisse) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AES Puerto Rico, L.P. v. Trujillo-Panisse, 133 F. Supp. 3d 409, 2015 U.S. Dist. LEXIS 135043, 2015 WL 5734410 (prd 2015).

Opinion

OPINION AND ORDER

BESOSA, District Judge.

Two Puerto Rican municipalities passed ordinances restricting the use of ash derived from coal combustion within their territorial borders. AES Puerto Rico, L.P. (“AES-PR”), a coal-fired power plant owner, filed suit against the municipalities to challenge the legality of the ordinances. (Docket No. 1.)

Currently before the' Court are AES-PR’s motion for partial summary judgment on its preemption claims, (Docket No. 29), which defendants oppose, (Docket No. 40), as well as AES-PR’s unopposed requests for judicial notice, (Docket No. 32; Docket No. 49 at p. 9). Also before the Court is defendants’ motion for judgment on the pleadings on justiciability grounds, (Docket No. 37), which AES-PR opposes, (Docket No. 45).

For the reasons below, the Court GRANTS AES-PR’s requests for judicial notice, (Docket No. 32; Docket No. 49 at p. 9), DENIES defendants’ motion for judgment on the pleadings, (Docket No. 37), and DENIES AES-PR’s motion for [412]*412partial summary judgment, (Docket No. 29).

BACKGROUND

Plaintiff AES-PR owns and operates a coal-fired power plant in Guayama, Puerto Rico (the “Guayama facility”). (Docket No. 31 at ¶2.) The Guayama facility imports coal from outside of Puerto Rico, primarily from Colombia, which it burns to generate electricity. (Docket No. 1 at ¶¶20, 25.) AES-PR sells this electricity to the Puerto Rico Electric Power Authority (“PREPA”). Id. at ¶¶ 22-23. Pursuant to its arrangement with PREPA, AES-PR satisfies approximately fifteen percent of Puerto Rico’s total electric power needs. Id. at ¶ 21.

The combustion of coal produces two types of ashes: bottom ash and fly ash,1 which are collectively referred to as coal combustion residuals (“CCRs”). (Docket No. 31 at ¶ 3.) When coal is burned at the Guayama facility, AES-PR collects the CCRs and transports them to storage silos on the premises. (Docket No. 1 at ¶ 26.) AES-PR produces approximately 200,000 to 250,000 tons of CCRs per year. Id. at ¶ 27.

AES-PR uses the CCRs from the Gua-yama facility to produce coal combustion products (“CCPs”), including a manufactured aggregate product (sometimes referred to as “rock ash”), which AES-PR markets under the trade name AGRE-MAX0 (“Agremax”). See Docket No. 1 at ¶¶ 30-31; Docket No. 31 at ¶ 4.2 According to AES-PR, Agremax can be “beneficially used” in several ways. (Docket No. 1 at ¶ 33.) For example, Agremax can be used in the construction industry as “structural fill” and for transportation projects as “subbase material” for roads. Id. at ¶¶ 3, 33. Agremax also has waste treatment applications: it can be used for liquid waste solidification and as “daily cover” for solid waste landfills, meaning Agremax (instead of natural materials like soil) is placed every day on top of the solid waste deposited in the landfill. See id.; Docket No. 31 at ¶ 20.

AES-PR currently has contracts with landfills in Puerto Rico to provide Agre-max for use as an alternative daily cover. (Docket No. 31 at ¶ 20.) For example, AES-PR has agreements with El Coqui Landfill Company LLC (“Coqui Waste”), Ecosystems, Inc. (“Ecosystems Waste”), and Peñuelas Valley Landfill Company, Inc. (“PV Waste”) to provide CCPs — including Agremax — for beneficial use at El Coqui Landfill (the “Coqui Landfill”) in Humacao, Ecosystems Landfill in Peñue-las,3 and Peñuelas Valley Landfill (the “PV Landfill”) in Peñuelas, respectively. See Docket No. 31 at ¶¶ 19, 21; Docket No. 51 at p. 3.

The Ordinances

Two municipalities in Puerto Rico enacted ordinances restricting the use of coal ash within their territorial borders. These [413]*413ordinances are the subject of this suit. On April 10, 2013, the Municipality of Peñue-las adopted Ordinance Number 13, Series 2012-2013 (the “Peñuelas Ordinance”), which provides:

The use of ashes coming from the burning of coal, in energy generating plants, as landfill material and its depositing on lands within the territorial limits of the Municipality of Peñuelas is forbidden.

(Docket No. 32-2 at p. 8, § 1 (emphasis added).)

On February 10, 2014, the Municipality of Humacao adopted Ordinance Number 21, Series 2013-2014 (the “Humacao Ordinance”), which provides:

Any kind of use of the ash derived from coal combustion in electric power generating plants or any other industrial or commercial activity as filler material, whether to level the terrain, for landfills, or in any other kind of filler, is hereby prohibited within the territorial limits of the Autonomous Municipality of Huma-cao.

(Docket No. 32-1 at p. 9, § 1 (emphasis added).)

Violators of either ordinance are subject to administrative fines up to $5,000. Id. at p. 10, § 6; Docket No. 32-2 at p. 8, § 1.

Both Ordinances are aimed specifically at curbing AES-PR’s use of coal ash. They each discuss AES-PR’s extensive use of coal ash on the island of Puerto Rico over the past few years, noting that coal ashes have been used in various municipal projects, from rural and agricultural lands to residential roads, and that in many of these places, coal ashes were deposited near aquifers. See Docket No. 32-1 at p. 8; Docket No. 32-2 at p. 7. They each express concern over the implications of this pervasive use, describing the findings of a 2010 study in which samples of CCR filler taken from the Parque Gabriela Development of Salinas showed high concentrations of carcinogenic and toxic metals, including arsenic and lead, and excessive radiation levels.4 See Docket No. 32-1 at p. 9; Docket No. 32-2 at p. 7. Both Ordinances provide examples of possible damage to the environment and human health involving AES-PR’s use of coal combustion byproducts in places outside of Puerto Rico, including Tennessee and the Dominican Republic. See Docket No. 32-1 at p. 9; Docket No. 32-2 at p. 7.

The Lawsuits in Commonwealth Court

Since the enactment of the Ordinances, the Municipality of Peñuelas and the Municipality of Humacao have each filed lawsuits in Commonwealth Court against parties with which AES-PR has ongoing contracts. See Docket No. 49 at p. 9. In August 2014, the Municipality of Peñuelas brought suit against Ecosystems Waste seeking to enjoin the use of Agremax in the construction of the Ecosystems Landfill in Peñuelas. (Docket No. 49-3.) The Peñuelas complaint alleges that Ecosystems Waste used Agremax in the construction of the landfill’s access road and, in doing so, violated the Peñuelas Ordinance by “disposing of and/or depositing” the filler material on the ground. Id. at p. 4. Similarly, in October 2014, the Municipality of Humacao filed suit against Coqui Waste seeking a permanent cease and desist order to prevent the deposit of AES-PR’s coal ash material in the Coqui Landfill. (Docket No. 49-2.)

Shortly thereafter, AES-PR initiated this action.

[414]*414Procedural History

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133 F. Supp. 3d 409, 2015 U.S. Dist. LEXIS 135043, 2015 WL 5734410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aes-puerto-rico-lp-v-trujillo-panisse-prd-2015.