Nucor Steel-Arkansas v. Arkansas Pollution Control & Ecology Commission

2015 Ark. App. 703, 478 S.W.3d 232, 2015 Ark. App. LEXIS 801
CourtCourt of Appeals of Arkansas
DecidedDecember 9, 2015
DocketCV-14-699
StatusPublished
Cited by5 cases

This text of 2015 Ark. App. 703 (Nucor Steel-Arkansas v. Arkansas Pollution Control & Ecology Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nucor Steel-Arkansas v. Arkansas Pollution Control & Ecology Commission, 2015 Ark. App. 703, 478 S.W.3d 232, 2015 Ark. App. LEXIS 801 (Ark. Ct. App. 2015).

Opinion

KENNETH S. HIXSON, Judge

hln this environmental-láw case, the Arkansas Department of Environmental •Quality (“ADEQ”) issued a permit allowing appellee Big River Steel, LLC (“BRS”) to build and operate a new steel mill in Mississippi County, Akansas. Appellants Nucor Steel-Arkansas and Nucor-Yamato Steel Company (collectively, “Nucor”), who also own steel mills in Mississippi County, opposed the permit and appealed ADEQ’s decision to the Akansas Pollution Control and Ecology Commission (“PC&E”). PC&E affirmed the permit, and Nucor sought judicial review in the Mississippi County Circuit Court. That court, upon a motion by BRS, transferred the case to the Akansas Court of Appeals, pursuant to Arkansas 12Code Annotated section 8-4-223(d) (Supp. 2015). The operative decir sion before us is the administrative ruling of PG&E, and we affirm PC&E’s decision.

I. Background

The BRS permit was issued under the terms of the federal Clean Air Act, which ensures that economic growth will occur in a manner consistent with the preservation of clean air. See 42 U.S.C. § 7401 et seq. (2014). The Act particularly addresses the pollution dangers posed by “major emitting facilities,” such as the BRS steel mill in this case. These types of facilities are subject to a pre-construction review and may not be built unless, among other things, a permit has been issued containing emission limitations; the permit has undergone a regulatory evaluation; the facility demonstrates that it will employ the best available pollution-control technology; and the facility demonstrates that its emissions will not cause or contribute to excessive air pollution. 42 U.S.C. § 7475 (2014). The preconstruction review is referred to as Prevention of Significant Deterioration (PSD), meaning that it ■ seeks to prevent significant deterioration of the air quality around the proposed construction site.

Under the Clean Air Act and its attendant regulations, the responsibility for the PSD process is shared by state and federal governments. State regulators are charged with conducting the necessary review of PSD applications and issuing the construction and operating permits. In Arkansas, the permitting authority is ADEQ. Ark.Code Ann. ■ § 8-4-203(a) (Supp. 2015). Federal regulators are responsible for establishing air-quality standards, which set limits on the amount of pollution that will be tolerated in a given region. Toward that end, the Environmental Protection Agency (“EPA”) has instituted National Ambient RAir Quality Standards (NAAQS) for certain “criteria” pollutants, which are the most common air pollutants found in the United States. See 42 .U.S.C. § 7409- (2014); 40 C.F.R. Part 50. Included among the criteria pollutants are the small, fine smoke particles, designated as PM2.6 (particulate matter with a diameter of -2.5 microns or less). As of March 2013, the EPA’s primary annual air-quality standard for PM2.5 was twelve micrograms per cubic meter, of air (12 M-g/m3).

In January 2013, BRS filed a PSD application with ADEQ to construct and operate a new steel mill near Osceola in Mississippi County. The application stated that the mill would produce up to 3.4 million short, tons per year of rolled steel products and would employ two electric arc furnaces and • various- other components, some of which would be natural-gas fired. Subsequent to its initial application, BRS submitted revised applications in March and June 2013 and asked that its application be processed in “an' accelerated timely manner.”

As required by law, BRS’s application included an air-quality analysis, ■ the purpose of which was to demonstrate that the new mill would-not have an adverse impact on air quality in the region. Because the mill had .not yet been constructed, BRS could only estimate the types and concentrations of pollutants that would be discharged once the mil) was operational. To properly estimate the concentration of air pollutants, BRS employed a technique referred to as air-dispersion modeling. Modeling is a complex process that, among other things, uses computer inputs to predict the future emissions of a planned industrial facility. The modeling results, when added to the existing emissions from other nearby plants, yield the concentration of pollutants, that will be released into the region’s ambient 14air by industrial means. An air-quality analysis must also account for the “background” pollution that exists in the area due to agricultural, vehicular, or other activities. Background pollution is ordinarily measured by" a monitor in place at the proposed construction site. However, no such monitor existed in Mississippi County. BRS therefore utilized a “representative” background monitor in Dyersburg, Tennessee, approximately-forty miles to the northeast.

BRS’s modeling, along with ADEQ’s confirmatory modeling, predicted that the new mill- and its neighboring facilities would emit a PM2.6 concentration of approximately 2.56 irg/m3. This figure, when combined with a reading of 9.44 p,g/m3 from the Dyersburg background monitor, demonstrated an -exceedance or near-ex-ceedance of the 12 \xgjm3 federal ceiling for PM2.6. BRS reviewed its data and determined that it could properly reduce some of the inputs it had utilized in its initial modeling run. BRS then repeated the modeling and arrived at a PM2b level of 11.91 pg/m3 — just below the 12 pg/m3 standard. This final air-quality analysis was submitted to ADEQ on June 24, 2015,

, The next day, ADEQ issued a Draft Permit that, -if finalized, would allow BRS to construct and operate the new mill. 1 The lengthy and data-rich Draft Permit included BRS’s most recent air-quality analysis results for PM2.b. The Draft Permit also required BRS to apply specific pollution-control technology to its emissions from all plant “sources,” such as [ ¡¡smokestacks and vents; set forth exact emission limits for each pollutant discharged by each source; and imposed requirements for post-construction testing and monitoring.

The issuance of the Draft Permit triggered a thirty-day public-comment period, during which BRS, the EPA, and any interested third party could present ADEQ with written comments about the draft. Ark.Code Ann. § 8-4-203(e) (Supp. 2015). Appellant Nucor, who had actively followed BRS’s application, submitted over forty comments, most objecting to the technical aspects of BRS’s modeling and to a perceived bias in ADEQ’s evaluation of BRS’s application. After reviewing the public comments, ADEQ modified the Draft Permit in some respects, then issued a Final Permit on. September 18, 2013. Nucor appealed ADEQ’s decision to PC&E pursuant to Arkansas Code Annotated section 8-4-205(b)(l) (Supp. 2015).

II. Appeal to PC&E

Nucor’s petition to PC&E cited approximately thirty errors that allegedly occurred during the permitting process. Upon receiving the petition, PC&E appointed an administrative hearing ■ officer (AHO) to review Nucor’s allegations and conduct the necessary proceedings. See Ark.Code Ann. § 8-1-204 (Supp.

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Bluebook (online)
2015 Ark. App. 703, 478 S.W.3d 232, 2015 Ark. App. LEXIS 801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nucor-steel-arkansas-v-arkansas-pollution-control-ecology-commission-arkctapp-2015.