Public Service Company of Indiana, Inc. v. United States Environmental Protection Agency and Douglas M. Costle

682 F.2d 626, 12 Envtl. L. Rep. (Envtl. Law Inst.) 20928, 18 ERC (BNA) 1457, 1982 U.S. App. LEXIS 26077
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 25, 1982
Docket81-1241
StatusPublished
Cited by15 cases

This text of 682 F.2d 626 (Public Service Company of Indiana, Inc. v. United States Environmental Protection Agency and Douglas M. Costle) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Public Service Company of Indiana, Inc. v. United States Environmental Protection Agency and Douglas M. Costle, 682 F.2d 626, 12 Envtl. L. Rep. (Envtl. Law Inst.) 20928, 18 ERC (BNA) 1457, 1982 U.S. App. LEXIS 26077 (7th Cir. 1982).

Opinion

WILLIAM J. CAMPBELL, Senior District Judge.

Appellant, Public Service Company of Indiana (hereafter PSI) brought this action in District Court contesting the appellees’, the Environmental Protection Agency and its *628 Administrator Douglas M. Costle (hereafter “the EPA,” “the agency,” or “the Administrator”), acquisition and utilization of certain inspection warrants. The warrants were issued by a United States Magistrate based upon sworn allegations of possible violations of the Clean Air Act, 42 U.S.C. § 7401 et seq., at two of PSI’s facilities. The appellant contends that the warrants were issued without probable cause and that the inspections authorized thereby were excessively broad. After a hearing, the District Court granted summary judgment for the defendants. PSI then filed this appeal.

On March 6, 1979, an authorized inspector for the EPA requested permission to inspect PSI’s facility in Gibson County, Indiana (hereafter “the Gibson Station”). The inspector was denied admittance because he refused to sign a “Visitor’s Admission Agreement” which contained a waiver of liability provision. On May 17, 1979, two EPA employees were again denied admission to a PSI facility, the Wabash River Generating Station (hereafter the “Wabash River Station”) because they declined to sign a similar “Visitor’s Admission Agreement.”

Subsequently, the EPA applied to United States Magistrate J. Patrick Endsley for the issuance of warrants authorizing the inspection of those facilities. The application for the Wabash River Station was supported, inter alia, by the affidavit of David Schulz, an EPA inspector, in which he stated that stack tests and other monitoring data indicated possible violations of the Indiana State Implementation Plan, i.e. emissions in excess of the particulate emissions limitation. (Regulation APC-4R) and the opacity limitation (Regulation APC-3). In support of the warrant for the Gibson Station, the EPA also submitted an affidavit of David Schulz which stated that certain monitoring data indicated possible violations of Regulation APC-3. Magistrate Endsley issued the two warrants on January 7, 1980 and they were executed on the following two days.

After the inspections, PSI moved to quash the warrants but those motions were denied by Magistrate Endsley on April 1, 1980. This action was then filed in District Court seeking declaratory and injunctive relief. PSI sought a declaratory judgment determining that:

(1) Indiana’s Regulation APC-3 is not enforceable; (2) there was no probable cause for issuance of the warrants (because APC-3 is not federally enforceable); (3) the warrants authorized overly broad inspections; and (4) the warrants did not authorize the seizure or demand of documents stored at locations other than those specifically authorized for inspection. 1 PSI also requested injunctive relief preventing future inspections and enforcement actions resulting from information obtained pursuant to those warrants. As noted previously, the District Judge denied all the relief requested.

LEGAL BACKGROUND

Prior to addressing the issues on appeal, a summary of the legal background of this case is necessary.

The Clean Air Act, 42 U.S.C. § 7401, et seq. (hereafter “The Act”) authorizes the EPA to promulgate national primary and secondary ambient air quality standards designed to protect the public health and welfare, 42 U.S.C. § 7409(a)(1). However, the primary responsibility for the promulgation of regulations to implement, maintain and enforce these standards is given to the states, 42 U.S.C. § 7401(a)(3). The Act directs each state to submit to the EPA a State Implementation Plan (hereafter “SIP”), 42 U.S.C. § 7410(a)(1), which the Administrator must approve if the plan satisfies the criteria specified in 42 U.S.C. § 7410(a)(2)(A)-(K), 42 U.S.C. § 7410(a)(2). The agency is authorized to promulgate additional or substitute provisions for a state’s SIP if a satisfactory plan is not submitted, 42 U.S.C. § 7410(c)(1). The Act contemplates that the states will periodically revise their SIPs, see, inter alia, 42 U.S.C. § 7410(a)(2)(H), and any such revisions *629 must be submitted to the Administrator for approval based on the criteria of 42 U.S.C. § 7410(a)(2)(A)-(K), 42 U.S.C. § 7410(a) (3)(A).

The specific standards used to determine whether a SIP or its revisions conform to the requirements of 42 U.S.C. § 7410 (a)(2)(A)-(K) are contained in the agency’s regulations, see 40 C.F.R. Part 51. The Administrator’s approval actions on each state’s SIP and its revisions are published in the Federal Register and are contemporaneously codified and incorporated into the agency’s regulations, see 40 C.F.R. Part 52.

Pursuant to the statutory scheme, Indiana submitted its SIP to the EPA for approval in January of 1972. The Plan included, inter alia, a provision limiting the emission of particulate matter, labelled APC-4, 2 and a provision relating to opacity limitations, labelled APC-3. These regulations were approved by the EPA (with some minor modifications to APC-4 not relevant here) and thus became part of the federally enforceable SIP. In 1974, Indiana submitted to the EPA new and revised regulations, including a revision of APC-3. 3 Like its predecessor, the new version of APC-3 (hereafter the “1974 APC-3”) mandated a maximum opacity limitation of 40% (Ringel-mann No. 2). However, it included a new provision which permitted a fifteen minute exemption from that requirement for each 24-hour period.

The EPA published a notice summarizing the proposed regulations and soliciting comments, 40 Fed.Reg. 19210-19211 (May 2, 1975). Subsequently, the EPA published an order (hereafter the “October 1975 order”) consisting of “final agency action” on six of the regulations, including the 1974 APC-3, 40 Fed.Reg.

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682 F.2d 626, 12 Envtl. L. Rep. (Envtl. Law Inst.) 20928, 18 ERC (BNA) 1457, 1982 U.S. App. LEXIS 26077, Counsel Stack Legal Research, https://law.counselstack.com/opinion/public-service-company-of-indiana-inc-v-united-states-environmental-ca7-1982.