Amerenergy Medina Valley Cogen, LLC v. The Illinois Environmental Protection Agency

2021 IL App (4th) 210082-U
Appellate Court of Illinois·Decided November 18, 2021·No. 4-21-0082·Unpublished

Opinion

NOTICE FILED 2021 IL App (4th) 210082-U November 18, 2021 This Order was filed under Supreme Court Rule 23 and Carla Bender is not precedent except in the NO. 4-21-0082 4th District Appellate limited circumstances Court, IL allowed under Rule 23(e)(1). IN THE APPELLATE COURT

OF ILLINOIS

FOURTH DISTRICT

AMERENENERGY MEDINA VALLEY COGEN, LLC, ) Appeal from the Plaintiff-Appellant, ) Circuit Court of v. ) Sangamon County THE ILLINOIS ENVIRONMENTAL PROTECTION ) No. 20MR615 AGENCY; JOHN J. KIM, in His Official Capacity as )

Director of the Illinois Environmental Protection Agency; )

and WILLIAM E. BUSCHER, P.G., in His Official )

Capacity as Manager of the Hydrogeology and )

Compliance Unit in the Illinois Environmental Protection )

Agency’s Bureau of Water, Division of Public Water ) Honorable Supplies, ) Adam Giganti, Defendants-Appellees. ) Judge Presiding.

JUSTICE DeARMOND delivered the judgment of the court.

Justices Turner and Steigmann concurred in the judgment.

ORDER

¶1 Held: The appellate court affirmed, finding the circuit court did not err in dismissing for lack of ripeness plaintiff’s declaratory action regarding the Illinois Environmental Protection Agency’s assessment of fees for certain ash ponds located on plaintiff’s properties, where plaintiff failed to establish the existence of an actual controversy ripe for judicial determination.

¶2 In July 2020, plaintiff, Amerenenergy Medina Valley Cogen, LLC, filed a complaint for declaratory judgment, seeking the circuit court’s declaration certain ash ponds located on plaintiff’s properties were not coal combustion residual (CCR) surface impoundments as defined under section 3.143 of the Illinois Environmental Protection Act (Act) (415 ILCS

5/3.143 (West Supp. 2019)) and the issuance of a writ of certiorari to quash the Illinois Environmental Protection Agency’s (IEPA) “Final Determination” letter.

¶3 In September 2020, defendants, the IEPA, John J. Kim, and William E. Buscher, P.G., filed a motion to dismiss pursuant to section 2-619.1 of the Code of Civil Procedure (Civil Code) (735 ILCS 5/2-619.1 (West 2020)), arguing plaintiff’s complaint did not present a ripe controversy and otherwise failed to state a claim entitling plaintiff to recover. In January 2021, the circuit court entered a written order granting defendants’ motion to dismiss with prejudice.

¶4 Plaintiff appeals, arguing the circuit court erred by dismissing its complaint for declaratory judgment because the complaint (1) raised an issue ripe for judicial review, (2) alleged an actual controversy sufficient to state a viable cause of action for declaratory judgment, (3) sufficiently stated a violation under the Illinois Administrative Procedure Act (APA) (5 ILCS 100/1-1 et seq. (West 2018)), and (4) stated a claim for writ of certiorari. Because we find this case unripe for review, we affirm.

¶5 I. BACKGROUND

¶6 Plaintiff is an Illinois limited liability company which owns property previously used to generate electricity, including coal-fired electric generating units located near Hutsonville and Meredosia, Illinois. To generate electricity, these power plants burned coal, which produced coal combustion byproducts, including sluiced fly ash and bottom ash. Plaintiff then stored or disposed of the residual byproducts in ash ponds—depressions in the land which are regulated as water treatment facilities used for the management of coal combustion byproducts—located at those properties.

¶7 Relevant to this appeal, section 3.142 of the Act provides, “ ‘CCR’ means fly ash, bottom ash, boiler slag, and flue gas desulfurization materials generated from burning coal for

the purpose of generating electricity by electric utilities and independent power producers.” 415 ILCS 5/3.142 (West Supp. 2019). Pursuant to section 3.143 of the Act, “ ‘CCR surface impoundment’ means a natural topographic depression, man-made excavation, or diked area, which is designed to hold an accumulation of CCR and liquids, and the unit treats, stores, or disposes of CCR.” 415 ILCS 5/3.143 (West Supp. 2019). Section 22.59(j) of the Act also provides, in relevant part, owners or operators of a CCR surface impoundment shall pay initial fees of $50,000 for each closed CCR surface impoundment and $75,000 for each CCR surface impoundment which has not completed closure. 415 ILCS 5/22.59(j)(1) (West Supp. 2019).

¶8 Pursuant to these provisions, the IEPA issued a letter in June 2020, informing plaintiff it had made a “final determination” regarding three ash ponds located at plaintiff’s Hutsonville power plant and two ash ponds located at plaintiff’s Meredosia plant. The letter indicated the IEPA considered plaintiff’s ash ponds to be CCR surface impoundments, as defined in section 3.143 of the Act, and subject to initial fees pursuant to section 22.59(j)(1) of the Act. The letter advised plaintiff failure to pay the fees may result in the issuance of a violation notice pursuant to section 31(a) of the Act (415 ILCS 5/31(a) (West 2018)).

¶9 On July 27, 2020, plaintiff filed the instant complaint for declaratory judgment, challenging the IEPA’s issuance of its June 2020 letter. In its complaint, plaintiff sought a declaration that sections 3.143 and 22.59(j) of the Act were inapplicable to the ash ponds identified in the IEPA’s June letter because the ponds “did not store, treat, or dispose of CCR as of the effective date of the CCR law.” Plaintiff further asserted “the IEPA’s failure to adopt reasonable regulatory procedures and its unilateral and arbitrary application of the fee provisions constitute[d] invalid rulemaking” under the APA (5 ILCS 100/1-1 et seq. (West 2018)) and

sought the issuance of a writ of certiorari directing the IEPA “to withdraw, revoke, and/or disclaim the Final Determination Letter.”

¶ 10 On July 28, 2020, the IEPA issued two violation notices to plaintiff pursuant to section 31(a)(1) of the Act (415 ILCS 5/31(a)(1) (West 2018)). The notices alleged violations of section 22.59(j) of the Act because plaintiff failed to submit initial fees for the five identified ash ponds after the IEPA determined they were CCR surface impoundments and subject to initial fees under that section. The notices stated, “Due to the nature and seriousness of the alleged violations, please be advised that resolution of the violations may also require the involvement of a prosecutorial authority for purposes that may include, among others, the imposition of statutory penalties.”

¶ 11 In September 2020, defendants filed a motion to dismiss plaintiff’s complaint pursuant to section 2-619.1 of the Civil Code (735 ILCS 5/2-619.1 (West 2020)), asserting (1) the dispute was not ripe for adjudication and (2) plaintiff failed to identify a cause of action or otherwise allege sufficient facts. Defendants argued plaintiff failed to establish an actual controversy between the parties as required to provide the circuit court with jurisdiction under section 2-701 of the Civil Code (735 ILCS 5/2-701 (West 2020)). Defendants contended the issues raised by plaintiff were not ripe for adjudication as the IEPA’s June 2020 letter “was merely a preliminary step in an ongoing administrative process.” Defendants also argued plaintiff’s petition for a writ of certiorari was improper because the letter (1) was not issued through the exercise of quasi-judicial functions, (2) was not legally binding, and (3) had no effect on plaintiff or its properties. Further, “any effort to make the determination legally binding would require [the IEPA] to pursue enforcement measures before the [Pollution Control] Board [(Board)] or the circuit court, thus providing Plaintiff[ ] with meaningful judicial review.”

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