Northern Plains Resource Councill v. United States Environmental Protection Agency

645 F.2d 1349
Court of Appeals for the Ninth Circuit·Decided May 26, 1981·No. No. 79-7618·Published·Cited by 1 cases

Opinion

NELSON, Circuit Judge:

Petitioner, Northern Plains Resource Council (the “Council”),1 seeks a review of the U.S. Environmental Protection Agency’s [“EPA”] decision2 conditionally granting a “prevention of significant deterioration of air quality” [PSD] permit, as required by the Clean Air Act3 and by EPA regulations,4 to a consortium of investor-owned utilities (the “Consortium”)5 for two coal-fired electric power plants under construction at Colstrip, Montana (“Colstrip Units Nos. 3 and 4”). Two rather technical issues are raised:6

The first is whether the EPA’s approval of the Consortium’s permit application is improper because the Colstrip Units will not utilize the “best available control technology” [hereinafter BACT] as required by Section 165(a)(4) of the Act, 42 U.S.C. § 7475(a)(4), and the EPA’s regulations, 40 CFR § 52.21(j)(2) (1980). Two sub-issues are raised by the Council in its challenge to EPA’s acceptance of the Colstrip plan as BACT. First, the Council argues that, because the projected emissions of particulates exceed the applicable 1978 new source performance standards [NSPS], EPA has violated the dictates of § 165(a)(3XC) of the Act which requires that BACT must not result in emissions in excess of any applicable standard of performance under the Act. [1351]*1351EPA’s response is that the plant would meet the 1971 NSPS standards, and that these are the applicable standards. We conclude that the appropriate standard is the 1971 standard.

The other BACT sub-issue is whether, because more sophisticated techniques (i.e. the “baghouse”) exist, acceptance of the Colstrip plan as BACT was without rational basis. The statute provides that BACT is to be determined on a case-by-case basis, taking into account energy, environmental, and economic impacts. See 42 U.S.C. § 7479(3). Given the constraints in this case, including the need to protect the Class I SO2 increment on the nearby reservation, the EPA’s action was not irrational.

The second major issue raised by the Council is a challenge to EPA’s refusal to validate its air dispersion model with monitoring data proffered by the Council.7 Because the data was collected on low terrain, it has no relevance to the model used by the EPA to project SO2 emissions on high terrain, the only area where projections approached the relevant PSD increments. Although the monitored readings differed from those the model would have predicted, the Council does not show that the EPA’s actions were arbitrary and capricious or that the agency ignored a significant threat to the relevant PSD increment, given the lower projected SO2 concentrations on low terrain.

We therefore affirm the EPA.

I. BACKGROUND

A. Facts Relating To The Colstrip Units

Colstrip Units Nos. 3 and 4 are part of a complex of four power plants, the first two of which were completed in 1976.8 Plans to build Units Nos. 3 and 4 were formalized in 1973. On January 25,1974, the Consortium entered into a contract for the construction of two steam generators for Colstrip Units Nos. 3 and 4. Other additional significant preliminary steps for construction of the units were taken in 1974.9 Thereafter, however, the Consortium ran into significant delays in obtaining three of the requisite state and federal permits.

Originally, the Consortium took the position that it was not required to obtain a PSD permit under the EPA’s 1974 PSD regulations because the Colstrip Units fell within the grandfather provision, having commenced construction prior to June 1, 1975. That position was initially upheld by the district court in Montana Power Co. v. EPA, 429 F.Supp. 683, 703 (D.Mont.1977). Nevertheless, on July 1, 1976, under protest and reserving its rights, the Consortium applied for a PSD permit. Thereafter, the 1977 amendments to the Act were enacted. The EPA held that the statutory PSD program clearly required that the Consortium obtain a PSD permit. 42 Fed. Reg. 60784-86 (1977). This court agreed, reversing the district court’s ruling and upholding the EPA’s subsequent determination. Montana Power Co. v. EPA, 608 F.2d 334, 357-58 (9th Cir. 1979).

During this period, on August 5, 1976, the Northern Cheyenne Tribe, whose reservation is in the vicinity of the Colstrip plants, announced its intention to redesignate its reservation from Class II to Class I. See 42 U.S.C. §§ 7472, 7474. The Consortium’s PSD permit application was held in abeyance by the EPA pending the outcome of the redesignation process. On August 5, 1977, the redesignation was approved. 42 [1352]*1352Fed. Reg. 40695 (1977).10 The Consortium’s PSD permit was denied on September 30, 1977, because the EPA’s air quality modeling indicated that the newly applicable Class I sulfur dioxide increments on the Northern Cheyenne Reservation would be violated by Colstrip Units Nos. 3 and 4.11

On November 14, 1977, the Consortium petitioned the EPA for reconsideration. Although initially issuing a public notice of its proposed approval of the permit, on June 12,1978, the EPA reversed itself and denied the permit after holding public hearings on the matter and conducting further analyses. The Consortium then modified its plans for the pollution abatement system at Colstrip Units Nos. 3 and 4, and on February 15, 1979 submitted a revised application.12 The EPA issued a public notice of its proposed approval of the revised PSD permit application. At the hearings on the proposed permit, the Council proffered materials purportedly demonstrating that the revised plans did not incorporate the best available control technology and that the air dispersion model used in the validation process was inaccurate. After considering the information presented at the hearings, the EPA issued the PSD permit on September 11, 1979, subject to several conditions.13 This petition challenging that decision followed.

II. DISCUSSION

A. Do The Colstrip Units Employ The Best Available Control Technology As Required By Section 165(a)(4) Of The Act?

The Council raises two arguments in support of its position that the Colstrip Units do not utilize the requisite BACT. First, it asserts that the pollution control system at Colstrip Units Nos. 3 and 4, which were approved by the EPA, will permit a particulate emission rate which exceeds the standard allowed by the applicable NSPS. This initial argument is based on the premise that the 1978 NSPS regulations for fossil-fuel-fired generating units, 40 CFR §§ 60

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Northern Plains Resource Councill v. United States Environmental Protection Agency, 645 F.2d 1349 (9th Cir. 1981).

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