North Carolina, Ex Rel. Cooper v. Tennessee Valley Authority

615 F.3d 291, 40 Envtl. L. Rep. (Envtl. Law Inst.) 20194, 2010 U.S. App. LEXIS 15286, 2010 WL 2891572
CourtCourt of Appeals for the Fourth Circuit
DecidedJuly 26, 2010
Docket09-1623
StatusPublished
Cited by40 cases

This text of 615 F.3d 291 (North Carolina, Ex Rel. Cooper v. Tennessee Valley Authority) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North Carolina, Ex Rel. Cooper v. Tennessee Valley Authority, 615 F.3d 291, 40 Envtl. L. Rep. (Envtl. Law Inst.) 20194, 2010 U.S. App. LEXIS 15286, 2010 WL 2891572 (4th Cir. 2010).

Opinion

*296 Reversed and remanded by published opinion. Judge WILKINSON wrote the opinion, in which Judge NIEMEYER and Judge SHEDD joined.

OPINION

WILKINSON, Circuit Judge:

The Tennessee Valley Authority (TVA) appeals an injunction requiring immediate installation of emissions controls at four TVA electricity generating plants in Alabama and Tennessee. The injunction was based on the district court’s determination that the TVA plants’ emissions constitute a public nuisance in North Carolina. As a result, the court imposed specific emissions caps and emissions control technologies that must be completed by 2013.

This ruling was flawed for several reasons. If allowed to stand, the injunction would encourage courts to use vague public nuisance standards to scuttle the nation’s carefully created system for accommodating the need for energy production and the need for clean air. The result would be a balkanization of clean air regulations and a confused patchwork of standards, to the detriment of industry and the environment alike. Moreover, the injunction improperly applied home state law extraterritorially, in direct contradiction to the Supreme Court’s decision in International Paper Co. v. Ouellette, 479 U.S. 481, 107 S.Ct. 805, 93 L.Ed.2d 883 (1987). Finally, even if it could be assumed that the North Carolina district court did apply Alabama and Tennessee law, it is difficult to understand how an activity expressly permitted and extensively regulated by botlj federal and state government could somehow constitute a public nuisance. For these reasons, the judgment must be reversed.

I.

The Tennessee Valley Authority (TVA) is a federal executive branch agency, established in 1933 and tasked with promoting economic development in the Tennessee Valley region. 48 Stat. 58 (May 18, 1933). One of TVA’s “primary objectives” is to “produce, distribute, and sell electric power.” 16 U.S.C. §§ 831d(Z), 831i, & 831n-4(f). As a result of this mandate, TVA provides electricity to citizens in parts of seven states. Much of this power is generated by eleven TVA owned and operated coal-fired power plants located in Tennessee, Alabama, and Kentucky.

As a natural byproduct of the power generation process, coal-fired power plants emit sulfur dioxide (SO 2) and nitrous oxides (NO K). In the atmosphere, both compounds can transform into microscopic particles known as “fine particulate matter” or “PM 2.5” (particulate matter less than 2.5 micrometers in diameter) that cause health problems if inhaled. When exposed to sunlight, NO x also assists in the creation of ozone, which is known to cause respiratory ailments.

SO 2, NO x, PM 2.5, and ozone are among the air pollutants extensively regulated through the Clean Air Act, 42 U.S.C. § 7401 et seq. Pursuant to the Act, the Environmental Protection Agency (EPA) has issued numerous regulations, and states have enacted further rules implementing the Act and the EPA requirements. Together, these laws and regulations form a system that seeks to keep air pollutants at or below safe levels.

In order to comply with requirements under the Clean Air Act, a number of controls can be fitted to coal-fired power plants to reduce the amounts of SO 2 and NO x they emit and, by extension, the amounts of PM 2.5 and ozone created. One of the ways SO can be reduced, for example, is by installing a flue gas desulfuriza *297 tion system, or “scrubber.” Scrubbers are large chemical plants — often larger than the power plants themselves — that remove SO 2 — from plant exhaust and cost hundreds of millions of dollars.

To control NO x emissions, plants may use selective catalytic reduction (SCR). Like scrubbers, SCRs are building-sized plants that can cost hundreds of millions of dollars to construct. However, they can remove approximately 90% of the NO x from the flue gasses a coal power plant produces. NO x emissions can also be reduced in alternative ways, such as retrofitting plants with burners that result in lower NO x emissions, burning types of coal that have low NO x output, and installing selective non-catalytic reduction (SNGR) controls. Although SNCRs are not as effective as SCRs, removing some 20 to 40% of NO x, they have the benefit of costing about one-tenth as much as SCRs.

TVA has already installed numerous pollution controls at its coal-fired plants. SO 2 scrubbers already operating cover 43% of TVA’s coal-fired electricity generation capacity, while scrubbers under construction and anticipated to be completed this year will bring that number above 50%. Nationwide, only one-third to one-half of the country’s coal plants are equipped with scrubbers. Similarly, while one-third to one-half of the country’s coal plants have SCRs to control NO x, TVA has installed SCRs on 60% of its coal-fired electricity generation capacity. At several plants that do not currently have SCRs, TVA is installing SNCRs and is also burning low NO x coal.

Unlike TVA, power plants in North Carolina historically had not put sufficient controls on their emissions, choosing instead to purchase emissions allowances under an EPA cap and trade program implemented by Congress in 1990 to address acid rain. See 42 U.S.C. §§ 7651-7651o (Clean Air Act Title IV, Acid Deposition Control); 42 U.S.C. § 7651b(b) (emissions allowance transfer system under acid rain program). As a result, North Carolina decided to implement more stringent controls on instate coal-fired plants as a matter of state law, as it is allowed to do under the Clean Air Act. See 42 U.S.C. § 7416. It passed the North Carolina Clean Smokestacks Act, N.C. Gen.Stat. § 143-215.107D, which requires investor-owned public utilities that operate coal-fired generating units to reduce their emissions of NO x and SO 2 to levels even lower than those specified in EPA regulations promulgated pursuant to the Clean Air Act. N.C. Gen.Stat. § 143-215.107D(b)-(e). '

Not all emissions are generated by instate sources, however. Prevailing high pressure weather systems in the states where TVA operates tend to cause emissions to move eastward into North Carolina and other states. North Carolina v. Tenn. Valley Auth., 593 F.Supp.2d 812, 825 (W.D.N.C.2009). Although there are lengthy Clean Air Act provisions and regulations controlling such interstate emissions, North Carolina chose to bring a public nuisance suit against TVA in the Western District of North Carolina, seeking an injunction against all eleven of TVA’s coal-fired power plants. TVA moved to dismiss based on the discretionary function doctrine and the Supremacy Clause. The district court denied the motions. North Carolina v. Tenn. Valley Auth., 439 F.Supp.2d 486 (W.D.N.C.2006).

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615 F.3d 291, 40 Envtl. L. Rep. (Envtl. Law Inst.) 20194, 2010 U.S. App. LEXIS 15286, 2010 WL 2891572, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-carolina-ex-rel-cooper-v-tennessee-valley-authority-ca4-2010.