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

2021 IL App (4th) 210082-U
CourtAppellate Court of Illinois
DecidedNovember 18, 2021
Docket4-21-0082
StatusUnpublished

This text of 2021 IL App (4th) 210082-U (Amerenergy Medina Valley Cogen, LLC v. The Illinois Environmental Protection Agency) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amerenergy Medina Valley Cogen, LLC v. The Illinois Environmental Protection Agency, 2021 IL App (4th) 210082-U (Ill. Ct. App. 2021).

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

-2- 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

-3- 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

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