Citizens for Pennsylvania's Future v. Ultra Resources, Inc.

898 F. Supp. 2d 741, 42 Envtl. L. Rep. (Envtl. Law Inst.) 20209, 2012 WL 4434465, 2012 U.S. Dist. LEXIS 136494
CourtDistrict Court, M.D. Pennsylvania
DecidedSeptember 24, 2012
DocketNo. 4:11-CV-1360
StatusPublished
Cited by1 cases

This text of 898 F. Supp. 2d 741 (Citizens for Pennsylvania's Future v. Ultra Resources, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Citizens for Pennsylvania's Future v. Ultra Resources, Inc., 898 F. Supp. 2d 741, 42 Envtl. L. Rep. (Envtl. Law Inst.) 20209, 2012 WL 4434465, 2012 U.S. Dist. LEXIS 136494 (M.D. Pa. 2012).

Opinion

MEMORANDUM OPINION

ROBERT D. MARIANI, District Judge.

I. Introduction

Plaintiff Citizens for Pennsylvania’s Future (“PennFuture”) filed this citizen suit against Defendant Ultra Resources, Inc. (“Ultra”) for alleged violations of the Clean Air Act (“CAA”), 42 U.S.C. §§ 7401 et seq. PennFuture contends that Ultra built a major facility which produces nitrogen oxide (“NOx”) emissions without obtaining the appropriate nonattainment New Source Review (“NNSR”) permit under the state regulations contained in 25 Pa. Code 127(E). Ultra responds that it properly applied for and received less stringent permits (GP-5s) from the Pennsylvania Department of Environmental Protection (“PADEP”). In issuing these GP-5s, PA-DEP decided to issue a permit to each compressor station as an individual NOx emitting facility instead of aggregating the facilities. Had PADEP aggregated the facilities, PennFuture argues, Ultra would have needed a major source permit.

Ultra filed a motion to dismiss for lack of subject-matter jurisdiction (Doc. 9), arguing that the proper forum for PennFuture to challenge the issuance of the GP-5 permits was before the Pennsylvania Environmental Hearing board (“EHB”). In support of its argument, Ultra says that if this Court were to recognize PennFuture’s ability to bring this citizen suit, it would “allow citizens’ groups to circumvent the established process and procedures under Pennsylvania law for challenging PADEP’s permitting decisions.” (Doc. 16, at 3). The motion has been fully briefed and is ripe for review.

II. Statutory Background

Though it enacted the CAA, Congress has found “that air pollution prevention ... and air pollution control at its source is the primary responsibility of States and [743]*743local governments” 42 U.S.C. § 7401(a)(3), with assistance and guidance from the federal government. Id. at 7401(a)(4). That is, each state, not the Environmental Protection Agency (“EPA”), issues any and all permits sought. Thus, consistent with the aims of the CAA, each state must submit to the EPA for review and approval a state implementation plan (“SIP”) “which provides for implementation, maintenance, and enforcement of ... standard[s] in each air quality control region ... within such State.” 42 U.S.C. § 7410(a)(1). A state agency must be designated to review applications for major source construction permits under Part D,1 and each SIP must use the “specific definitions” established in EPA regulations unless the state’s definitions are “more stringent, or at least as stringent” as the federal definitions. 40 C.F.R. 51.165(a)(1).

To comply with federal standards, Pennsylvania enacted the Air Pollution Control Act (“APCA”), 35 P.S. § 4001 et seq. The APCA delegates authority to the Environmental Quality Board (“EQB”) to develop rules and regulations to implement the provisions of the CAA,2 and PADEP evaluates applications and issues the appropriate air permits for constructions of new emission sources or for modifications to existing emissions sources.3

PennFuture has filed suit under Section 304 of the CM, which provides;

[A]ny person may commence a civil action on his own behalf — ... (3) against any person who proposes to construct or constructs any new or modified major emitting facility without a permit required under ... part D of subchapter I of this chapter (relating to nonattainment) 4 or who is alleged to have violated (if there is evidence that the alleged violation has been repeated) or to be in violation of any condition of such permit.

42 U.S.C. § 7604(a)(3) (“Section 304”). Anyone proposing to construct a “major emitting” source of pollutants must obtain the proper permit before construction.5 The CAA defines a “major emitting facility” as found in Section 304 as “any stationary facility6 or source of air pollutants [744]*744which directly emits, or has the potential to emit, one hundred tons per year or more of any air pollutant.” 42 U.S.C. § 7602(j).7

Defendant’s compressor stations emit NOx. Under the applicable state NNSR regulations, an NNSR permit is required for the construction of a new major facility that emits or has the potential to emit 100 tons per year or more of NOx. 25 Pa.Code § 127.201. In lieu of NNSR permits, PA-DEP may also issue less stringent general plan approvals and general permits,8 but only if the source is not subject to the NNSR requirements in Subchapter E. Id. Otherwise, an owner or operator must undergo the more onerous process of obtaining plan approval and receiving an operating permit on a case-by-case basis. Id.

Among the general permits discussed above, PADEP developed GP-5, which authorizes the construction and operation of natural gas production facilities. Like other general permits, a GP-5 may not be used if the construction or modification for which authorization is sought triggers NNSR requirements under Subchapter E. PADEP issued seven GP-5s to Ultra to construct and operate various compressor stations and associated equipment, which Ultra built beginning in 2009. (Compl., ¶¶ 2, 38-39, 45-46, 52-53, 59-60, 66-67, 73-74, 80-81). Each of the seven compressor stations emits less than 100 tons per year of NOx, so Ultra did not apply for a Part D permit.

Plaintiff argues that the seven compressor stations should have been aggregated as a single source, rendering GP-5s for Ultra’s facilities inappropriate. PADEP must determine whether a facility or facilities are a “single source” when “an air contamination source or combination of air contamination sources located on one or more contiguous or adjacent properties” is or are “owned and operated by the same person under common control.” 25 Pa. Code § 127.204(a).9 If the emissions from multiple sources are aggregated as a single source and those emissions reach major source thresholds, they would be considered a “single source” subject to Part D permit requirements under the NNSR and therefore ineligible for a GP-5.

The APCA specifically provides: “Any person aggrieved by an order or other administrative action of [PADEP] issued pursuant to this act ... shall have the right, within thirty (30) days from actual or constructive notice of the action, to appeal the action to the hearing board .... ” 35 P.S. § 4010.2; see also 25 Pa.Code § 1021.52(a)(2). Failure to timely appeal to the EHB precludes further challenges to PADEP’s action. See 35 P.S. § 7514(c) (“If a person has not perfected an appeal in accordance with the regulations of the [EHB], the department’s action shall be final as to the person.”).

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898 F. Supp. 2d 741, 42 Envtl. L. Rep. (Envtl. Law Inst.) 20209, 2012 WL 4434465, 2012 U.S. Dist. LEXIS 136494, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citizens-for-pennsylvanias-future-v-ultra-resources-inc-pamd-2012.