Dow Chemical Co. Louisiana Operations Complex Cellulose & Light Hydrocarbons Plants, Part 70 Air Permit Major Modifications & Emission v. Reduction Credits

885 So. 2d 5, 2004 La. App. LEXIS 2134, 2004 WL 2074056
CourtLouisiana Court of Appeal
DecidedSeptember 17, 2004
DocketNo. 2003 CA 2278
StatusPublished
Cited by14 cases

This text of 885 So. 2d 5 (Dow Chemical Co. Louisiana Operations Complex Cellulose & Light Hydrocarbons Plants, Part 70 Air Permit Major Modifications & Emission v. Reduction Credits) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Dow Chemical Co. Louisiana Operations Complex Cellulose & Light Hydrocarbons Plants, Part 70 Air Permit Major Modifications & Emission v. Reduction Credits, 885 So. 2d 5, 2004 La. App. LEXIS 2134, 2004 WL 2074056 (La. Ct. App. 2004).

Opinions

I (WHIPPLE, J.

The Louisiana Environmental Action Network (“LEAN”) and Albertha Hasten1 sought judicial review, pursuant to LSA-R.S. 80:2050.21(A), of two final permit decisions granting major air permit modifications to Dow Chemical’s Louisiana Operations Complex (“Dow”) in Plaquemine, Louisiana, and a decision approving Dow’s Volatile Organic Compound (“VOC”) Emission Reduction Credit application, by the Louisiana Department of Environmental Quality (“the DEQ”). By judgment dated June 24, 2003, the Nineteenth Judicial District Court upheld the decision of the DEQ to grant the air permit modifications and the VOC Emission Reduction Credit application.

For the following reasons, we affirm.

FACTS AND PROCEDURAL HISTORY

On March 30, 2001, Dow applied for a permit to modify existing Permit No. 2024-V1, at the Light Hydrocarbons III Plant, to increase VOC emissions. In the application, Dow proposed to offset the emission increases called for in the requested permit modifications with emission reduction credits from the 1992 closure of a wastewater pond, Pond EC-2. Pond EC-2, a wastewater collection and treatment pond, had served as the end-point of a number of wastewater streams within the Dow facility, including a wastewater stream from the Cellulose Plant. The closure of Pond EC-2, and its replacement with a floating roof tank for storage and treatment of wastewater had resulted in a VOC emission reduction.

[8]*8On February 8, 2002, Dow applied for a modification of another existing permit. This permit authored a major modification of Cellulose |3PIant Air Permit No. 2227-VI. One of the projects addressed by the proposed modification, the Modified Low Salt Project,2 was projected to result in a net increase of VOC emissions, thus constituting a “major modification,” and thereby invoking the nonattainment3 new source review procedure by the DEQ.4

Dow further requested that the DEQ review and approve Dow’s application for certain VOC Emission Reduction Credits, identified as VOC-10, pursuant to Louisiana Administrative Code 33:111. Chapter 6. The emission reduction credits generated by the closure of Pond EC-2 and its replacement by a floating roof tank were the subject of the emission reduction credit application VOC-10, as discussed above in Dow’s application for a permit to modify the existing permit at the Light Hydrocarbons III Plant. According to Dow, the replacement of the pond with the floating roof tank resulted in a net reduction in VOC emissions. These emission reduction credits were used as the necessary offsets for the major modifications.

|4Both permit applications, relying on the VOC Emission Credit Application previously approved by the DEQ, requested adjustment of the permit limits for the existing facility based upon updated emission estimation factors and authorization of construction of modifications of the facility despite the increase in emissions.

After publication on September 19, 2002 of a notice of public hearings and a thirty-day comment period in The Advocate, The West Side Journal, and The Plaquemine Post South, the DEQ held public hearings on October 22, 2002. On October 29, 2002, at the close of the public comment period, the DEQ approved the applications and issued new permits, No. 2024-V2 and No. 2227-V2. In response to the VOC-10 application, the DEQ granted Dow emission reduction credits.

By letter dated November 7, 2002, representatives from the DEQ notified all interested parties, including LEAN, that Permits 2227-V2, 2024-V2, and Application VOC-10 had been granted. The DEQ attached to these letters copies of a lengthy and detailed document entitled “Basis for Decision” and “Public Comment [9]*9Response Summary” for each permit and application decision. The Basis for Decision included a detailed analysis, which formed the basis for the DEQ’s ultimate decision articulating a rational connection between the facts found and the order issued pursuant to the mandates of the Louisiana Supreme Court in Save Ourselves, Inc. v. Louisiana Environmental Control Commission, 452 So.2d at 1152, 1159 (La.1984).

Petitioners then filed a Petition for Review in the Nineteenth Judicial District Court, pursuant to LSA-R.S. 30:2050.21, seeking judicial review of the DEQ’s two final permit decisions, as well as its decision to approve Dow’s VOC Emission Reduction Credit application. After review and 1 ^consideration of the administrative record, the briefs, and oral argument of the parties, the district court rendered judgment and written reasons on August 7, 2003, affirming the action of the DEQ.

Specifically, the district court: (1) affirmed the DEQ’s issuance of the Light Hydrocarbons III air permit modification, Permit No. 2024-V2; (2) affirmed the DEQ’s issuance of the Emission Reduction Credit Certificate for VOC-10; and (3) remanded to the DEQ to remove the provisions of the Cellulose Plant pefmit modification, Permit No. 2227-V2, that involved the Modified Salt Project and VOC emission increases associated with the Modified Low Salt Project; the remainder of the provisions of Permit No. 2227-V2 were affirmed. LEAN filed the instant appeal, challenging the district court’s judgment.

STANDARD OF REVIEW

Under Louisiana law, the DEQ has a constitutional duty to act as the trustee of the environment. In re Shintech, Inc., 2000-1984, p. 7 (La.App. 1st Cir.2/15/02), 814 So.2d 20, 25, writ denied, 2002-0742 (La.5/10/02), 815 So.2d 845. The Supreme Court has interpreted this constitutional mandate to impose a “rule of reasonableness,” which requires the DEQ to determine, before granting approval of any proposed action affecting the environment, that adverse environmental impacts have been minimized or avoided as much as possible consistently with the public welfare. Save Ourselves, Inc., 452 So.2d at 1157. However, considerable weight is afforded to an administrative agency’s construction of a statutory scheme that it is entrusted to administer. Calcasieu League For Environmental Action Now v. Thompson, 93-1978, p. 12 (La.App. 1st Cir.7/14/95), 661 So.2d 143, 149; writ denied, 95-2495 (La.12/15/95), 664 So.2d 459.

| (¡In rendering a decision, the DEQ is required to: (1) make basic findings, as supported by the evidence, (2) make ultimate findings, which flow from the basic findings, and (3) to articulate a rational connection between the facts found and the order issued. Save Ourselves, Inc., 452 So.2d at 1159. This circuit has held that pursuant to Save Ourselves, Inc., the DEQ’s written findings of fact and reasons for decision must address whether: (1) the potential and real adverse environmental effects of the proposed project have been avoided to the maximum extent possible; (2) a cost-benefit analysis of the environmental impact costs balanced against the social and economic benefits of the project demonstrates that the latter outweighs the former; (3) there are alternative projects or alternative sites or mitigating measures that would offer more protection to the environment than the proposed project without unduly curtailing non-environmental benefits to the extent applicable. See In re Belle Company, L.L.C., 2000-0504, pp. 16-17 (La.App. 1st Cir.6/27/01), 809 So.2d 225, 238; In re Rubicon, Inc., 95-0108, p. 12 (La.App. 1st Cir.2/14/96), 670 So.2d 475, 483. [10]

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