Alaska v. United States Environmental Protection Agency

298 F.3d 814
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 30, 2002
DocketNos. 00-70166, 00-70169, 00-70175 and 00-70301
StatusPublished
Cited by6 cases

This text of 298 F.3d 814 (Alaska v. United States Environmental Protection Agency) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alaska v. United States Environmental Protection Agency, 298 F.3d 814 (9th Cir. 2002).

Opinion

WARDLAW, Circuit Judge.

The Alaska Department of Environmental Conservation (“ADEC”) and Teck Comineo Alaska, Inc. (“Comineo”) petition for review of three enforcement orders [816]*816entered by the United States Environmental Protection Agency (“EPA”), which effectively invalidated a Prevention of Significant Deterioration (“PSD”) permit issued by ADEC to Comineo. Petitioners challenge the EPA’s authority to issue these orders, and argue that the EPA abused its discretion in finding that ADEC’s Best Available Control Technology (“BACT”) determination did not comply with the requirements of the Clean Air Act and Alaska’s State Implementation Plan (“SIP”). We find that the EPA acted within its authority and, further, that it did not abuse its discretion.

I. Background

The Clean Air Act (“the Act”), 42 U.S.C. §§ 7401-7671q, establishes a program for controlling and improving the nation’s air quality through a system of shared federal and state responsibility. The Act requires states to submit for the EPA’s approval a state implementation plan that provides for attainment and maintenance of the national ambient air quality standards (“NAAQS”) promulgated by the EPA. 42 U.S.C. § 7410.

The Act’s Prevention of Significant Deterioration program controls the level of degradation in “clean air areas” of the nation by requiring a pollutant-emitting source to obtain a permit before construction. See 42 U.S.C. §§ 7470-7492. In implementing the PSD program and permitting process, states can either operate within the federal PSD program, in which the EPA is the PSD permit issuer, or include a PSD program within their own EPA-approved state implementation plan. 42 U.S.C. §§ 7410(a)(2)(C), 7471.

Alaska is a “clean air area” under the Act — that is, its air quality regions are cleaner than the national standards with respect to ozone and nitrogen dioxide. Under Alaska’s State Implementation Plan, which the EPA accepted as meeting the Act’s requirements in 1983, Alaska, through the Alaska Department of Environmental Conservation, is the PSD permit issuer. See Approval and Promulgation of Implementation Plans; Alaska, 48 Fed.Reg. 30623 (July 5, 1983), as amended at 56 Fed.Reg. 19284 (April 26, 1991). For new and modified sources, the Alaska SIP requires “a demonstration that the proposed [emissions control] limitation represents the best available control technology” before ADEC will issue a permit. Alaska Admin. Code tit. 18, § 50.310(d)(3) (1997).

Comineo operates the Red Dog Mine facility (“the Mine”), a major producer of zinc concentrates, in partnership with the Northwest Arctic Native Association, an Alaska corporation. The Mine is approximately 100 miles north of the Arctic Circle and about five miles west of the Noatak National Preserve. The closest residential communities are the native villages of Ki-valina and Noatak.

Due to its remote location, the Mine requires an independent, on-site power source. The current power supply for the Mine consists of six diesel-fired Wartsila 5000-watt generators, labeled “MG-1” through “MG-6,” which were constructed under a 1988 PSD permit. In April 1996, Comineo began its Production Rate Increase (“PRI”) project to boost the Mine’s output of zinc and zinc concentrates. Comineo determined it needed more electricity at the Mine to power the additional mining equipment.

In June 1998, Comineo submitted an application to ADEC for a new PSD permit, requesting permission to increase the amount of nitrogen oxides (“NOx”), a regulated air pollutant, from its MG-5 generator. Cominco’s application proposed the use of “Low NOx” as BACT for MG-5. Low NOx is a process that uses high-[817]*817combustion air temperatures to better atomize toxic particles, thereby reducing the amount of NOx released into the environment. A review by AD.EC, however, reached the contrary conclusion that Selective Catalytic Reduction (“SCR”), a process in which exhaust is injected with ammonia or urea and then combined with a catalyst, was BACT for MG-5.

Comineo responded by amending its application in April 1999. As an alternative to installing SCR on MG-5, Comineo volunteered to install the less costly Low NOx technology on all six of its existing generators, including those not subject to BACT standards, and on a proposed seventh generator, “MG-17.”

In its May 4,1999 Preliminary Technical Analysis Report, ADEC accepted Comin-co’s proposal because it would reduce the total NOx output from the Mine to a level comparable to that which would result were SCR installed in only the MG-5 and MG-17 generators.

In July 1999, the EPA entered the discussion over Cominco’s application at the urging of the National Park Service, which had expressed concern that the “[njitrogen oxide emissions ... could affect vegetation at Cape Krusenstern National Monument and Nqatak National Preserve.” In a letter to ADEC, the EPA stated that SCR was the best available control technology for the MG-5 and MG-17 generators, and that “the PSD program does not allow the imposition of a limit that is less stringent than BACT even if the equivalent emission reductions are obtained by imposing new controls on other emission units.”

On September 3, 1999, ADEC issued a Final Technical Analysis Report and permit decision, concluding that SCR was not economically feasible and that Low NOx was instead BACT. The EPA responded with a review of ADEC’s report, asserting that ADEC’s cost-effectiveness estimate for SCR was “well within the range that the EPA considers reasonable,” and that Comineo had not adequately demonstrated why SCR was economically infeasible.

ADEC, Comineo, and the EPA met to discuss the pending PSD permit, agreeing to install Low NOx on MG-1, MG-3, MG-4, and' MG-5, but without agreeing on BACT for MG-17.

After further unsuccessful negotiations, the EPA issued a “Finding of Noncompliance Order” on December 10, 1999, stating that ADEC’s authorization of Cominco’s construction and installation of new equipment was not in compliance with the Clean Air Act and the Alaska SIP. Pursuant to Sections 113(a)(5) and 167 of the Act, 42 U.S.C. §§ 7413(a)(5) and 7477, the EPA ordered ADEC to withhold issuance of Cominco’s PSD permit.

Later that same day, however, in disregard of the EPA’s order, ADEC issued the PSD permit along with a second Final Technical Analysis Report.

On February 8, 2000, the EPA sent a letter to ADEC with a formal finding that the December 10, 1999 report and PSD permit failed to comply with federal and state PSD requirements. On the same day, the EPA issued a second order to Comineo preventing the company from beginning construction on the MG-17 generator until Comineo had demonstrated to the EPA’s satisfaction compliance with the Act and the SIP.

The EPA’s third order, dated March 7, 2000, modified the February 8, 2000 order to allow Comineo to engage in summer-dependent construction activities.

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