Sierra Club, Inc. v. Sandy Creek Energy Associates, L.P.

627 F.3d 134, 41 Envtl. L. Rep. (Envtl. Law Inst.) 20036, 71 ERC (BNA) 1993, 2010 U.S. App. LEXIS 24144, 2010 WL 4725044
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 23, 2010
Docket09-51079
StatusPublished
Cited by172 cases

This text of 627 F.3d 134 (Sierra Club, Inc. v. Sandy Creek Energy Associates, L.P.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sierra Club, Inc. v. Sandy Creek Energy Associates, L.P., 627 F.3d 134, 41 Envtl. L. Rep. (Envtl. Law Inst.) 20036, 71 ERC (BNA) 1993, 2010 U.S. App. LEXIS 24144, 2010 WL 4725044 (5th Cir. 2010).

Opinion

BENAVIDES, Circuit Judge:

The present case requires the Court to determine whether Sandy Creek’s current and ongoing construction of a coal-fired power plant, for which no MACT determination has ever been made, violates the Clean Air Act § 112(g). 1 Because we conclude that § 112(g)(2)(B) prohibits the act of construction, and not merely the commencement thereof, we find that Sandy Creek’s current and ongoing construction of a “major source” without a final MACT determination violates the plain language of the statute. Accordingly, we REVERSE the judgment, and remand to the district court for further proceedings not inconsistent with this opinion.

Facts and Regulatory/Procedural Background

Defendant Sandy Creek Energy Associates, L.P. (“Sandy Creek”) is currently constructing a coal-fired power plant in Riesel, Texas. The Texas Commission on Environmental Quality (“TCEQ”) would ordinarily perform a routine case-by-case “MACT determination” prior to the company’s commencement of construction on a coal-fired power plant, in order to comply with federal Clean Air Act (“CAA”) requirements. See 42 U.S.C. § 7412(g)(2)(B) (“No person may construct or reconstruct any major source of hazardous air pollutants, unless the Administrator (or the State) determines that the maximum achievable control technology emission limitation under this section for new sources will be met. Such determination shall be made on a case-by-case basis where no applicable emission limitations have been established by the Administrator.”); see also 30 Tex. Admin. Code § 116.711(5) & (11) (implementing § 112(g)’s “case-by-case MACT determination” by incorporating it into the State’s pre-construction permitting process). Because Sandy Creek’s Riesel plant will emit more than ten tons per year of hydrogen chloride — a listed hazardous pollutant under the Act — the Riesel plant falls under § 112(g)’s MACT construction proscription. 2

*137 “MACT” refers to “Maximum Achievable Control Technology” — an emission limitation standard for the listed “hazardous” pollutants Congress ordered the EPA to regulate in § 112. Section 112 requires major sources, like the Riesel plant, to “comply with technology-based emission standards requiring the maximum degree of reduction in emissions EPA deems achievable, often referred to as ‘maximum achievable control technology’ or MACT standards.” Nat’l Min. Ass’n v. EPA 59 F.3d 1351, 1353 (D.C.Cir.1995) (quoting 42 U.S.C. § 7412(d)(1)-(2)). Congress noted that § 112’s MACT emissions standards would “be more stringent” than the standards imposed by other provisions of the Act-such as New Source Review or Prevention of Significant Deterioration (“PSD”)-and explained this as necessary since the MACT “program is for the control of extremely harmful air pollutants.” S.Rep. No. 101-228, at 140 (1989), U.S. Code Cong. & Admin.News 1990, pp. 3385, 3552.

Thus, in ordinary circumstances, we would not question whether § 112(g)(2)(B)’s requirement of a case-by-case MACT determination applied to Sandy Creek’s Riesel Plant. 3 The present case, however, presents us with an unusual circumstance. In March of 2005, the EPA issued a rule removing coal and oil-fired electric utility steam generating units (“EGUs”) from the list of sources whose emissions are regulated under § 112. 4 Thus, although Sandy Creek submitted an application for a MACT determination to TCEQ, TCEQ concluded that, as a result of EPA’s Delisting Rule, no such determination was legally required. On May 25, 2006, TCEQ stated that “[n]o case-by-case MACT determination for the PC boiler is needed because the type of steam generating unit (PC boiler) that Sandy Creek is proposing is not subject to MACT regulation.” Sandy Creek then commenced construction on its coal-fired power plant in Riesel, Texas, on January 7, 2008.

One month later, on February, 8, 2008, the D.C. Circuit vacated EPA’s March 2005 Delisting Rule, declaring that EPA’s decision to remove EGUs from the list of § 112’s regulated sources violated “the plain text and structure of section 112.” 5 New Jersey v. EPA 517 F.3d 574, 583 (D.C.Cir.2008). Consequently, the D.C. *138 Circuit held that EGUs “remain listed under section 112.” On March 14, 2008, the mandate issued and the Delisting Rule was officially vacated. As a result of the D.C. Circuit’s decision in New Jersey, § 112(g)’s construction prohibition on “major sources” with no MACT determination once again became applicable to all coal-fired power plants. 6

Soon thereafter, on August 8, 2008, Plaintiffs Public Citizen, Inc. and Sierra Club, Inc. (collectively, “Sierra Club”) filed their complaint in federal district court. In the complaint, the Plaintiffs alleged that Sandy Creek’s construction of its coal-fired plant in Riesel was in violation of CAA § 112(g)(2)(B) because Sandy Creek had never obtained a MACT determination for the plant.

Sierra Club filed a motion for summary judgment on March 4, 2009, and then on April 2, 2009, Sandy Creek filed its cross-motion for summary judgment, arguing that the district court should abstain from deciding Sierra Club’s § 112(g)(2)(B) challenge pursuant to Burford v. Sun Oil Co., 319 U.S. 315, 63 S.Ct. 1098, 87 L.Ed. 1424 (1943). On September 28, 2009, the district court issued its Order. Although the district court declined to abstain pursuant to Burford, the district court determined that § 112(g)’s requirement for a MACT determination no longer applied to Sandy Creek, and consequently, the district court granted summary judgment in Sandy Creek’s favor and denied Sierra Club’s motion for summary judgment. Sierra Club timely appealed, asserting that the district court erred when it found that § 112(g)(2)(B)’s requirement for a final MACT determination no longer applies to Sandy Creek. On appeal, Sandy Creek asserts that the district court abused its discretion when it declined to abstain under Burford.

We will consider both claims in turn.

Standard of Review

“We review a grant of summary judgment de novo, applying the same legal standard as the district court.” Croft v. Governor of Tex., 562 F.3d 735, 742 (5th Cir.2009) (internal quotations omitted). Summary judgment should be rendered if the record demonstrates that “there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P.

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627 F.3d 134, 41 Envtl. L. Rep. (Envtl. Law Inst.) 20036, 71 ERC (BNA) 1993, 2010 U.S. App. LEXIS 24144, 2010 WL 4725044, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sierra-club-inc-v-sandy-creek-energy-associates-lp-ca5-2010.