Sierra Club v. Moser

310 P.3d 360, 298 Kan. 22
CourtSupreme Court of Kansas
DecidedOctober 4, 2013
DocketNo. 105,493
StatusPublished
Cited by60 cases

This text of 310 P.3d 360 (Sierra Club v. Moser) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sierra Club v. Moser, 310 P.3d 360, 298 Kan. 22 (kan 2013).

Opinion

The opinion of the court was delivered by

Luckert, J.:

In this appeal, environmental organization Sierra Club seeks judicial review of the decision of the Secretary of the Kansas Department of Health and Environment (KDHE) to issue an air emission source construction permit to Sunflower Electric Power Corporation (Sunflower) for the construction of an 895-megawatt coal-fired power plant, referred to as Holcomb 2, at the [26]*26site of Sunflower’s existing plant in Holcomb, Holcomb 1. Sierra Club raises four issues and contends the permit fails to comply with the requirements of the federal Clean Air Act (CAA), 42 U.S.C. § 7401 etseq. (2006); implementing federal regulations; the Kansas Air Quality Act (KAQA), K.S.A. 65-3001 et seq.-, and applicable Kansas Administrative Regulations, K.A.R. 28-19-1 et seq. As a preliminary matter, the KDHE questions whether Sierra Club has standing to challenge the permit.

We hold that Sierra Club has standing to bring this action and has established that the KDHE erroneously interpreted and applied the CAA and the KAQA when it failed to apply the regulations of the federal Environmental Protection Agency (EPA) regarding 1-hour emission limits for nitrogen dioxide and sulfur dioxide during the Holcomb 2 permitting process. These EPA regulations became effective before the Holcomb 2 permit was issued, and we hold that the CAA, KAQA, and implementing regulations required the KDPIE to apply the regulations during the permitting process. We therefore reverse the KDHE’s action of issuing the permit and remand this matter to the KDHE.

Sierra Club’s petition for judicial review presents three other issues. One of those issues—whether the KDHE erred in its application of hazardous air pollution emission requirements—is rendered moot by our decision to remand the Holcomb 2 permit because die EPA has adopted new regulations that must be applied on remand. In another issue, Sierra Club argues the KDHE erred in its analysis of the best available control technology (BACT). We reject this argument and Sierra Club’s final argument that the procedure followed by the KDHE violated the CAA.

I. Facts and Procedural Posture

In 2006, Sunflower filed with die KDHE an application for a prevention of significant deterioration (PSD) permit for the construction of three new coal-fired electric generators at the site of its existing facility in Holcomb. Soon after, Tri-State Generation and Transmission Association, Inc., obtained an option from Sunflower for rights to a portion of the new power and facilities. Later that year, public hearings were conducted on the draft permit.

[27]*27In October 2007, although the KDHE staff recommended the PSD permit be issued, the Secretary of the KDHE denied the permit based on the level of greenhouse gas (carbon dioxide) emissions from the proposed generators. At that time, neither the EPA nor the KDHE had placed specific limitations on carbon dioxide emissions. Nevertheless, the Secretary declared carbon dioxide emissions an imminent and substantial hazard to public health and the environment and invoiced the Secretary’s then-existing power under K.S.A. 65-3012 to “take such action as may be necessary to protect the health of persons or the environment.”

Sunflower challenged the KDHE’s decision in state and federal courts. While those cases were pending, then-Governor Mark Parkinson and Sunflower entered into a settlement agreement. The agreement established terms and conditions for resuming the KDHE’s consideration of Sunflower’s permit application and called for Sunflower to reduce the size of its planned expansion, develop wind resources and energy efficiency programs, dismiss the federal lawsuit, and file a motion to stay any pending state court proceedings until tire issuance of a permit, at which time Sunflower would request the dismissal of the state court proceedings.

Subsequent to the settlement agreement, the 2009 Kansas Legislature enacted what is now K.S.A. 2012 Supp. 65-3029 (L. 2009, ch. 141, sec. 42; effective May 28, 2009), which provides:

“(a) The secretary shall timely approve a prevention of significant deterioration permit (PSD) to sunflower electric power corporation to be issued consistent with the settlement agreement executed May 4, 2009, by sunflower electric power corporation and tire governor of the state of Kansas to resolve all claims or causes of action, or both, pending before various courts and administrative agencies consistent with article V of the settlement agreement.
“(b) This section shall be part of and supplemental to the Kansas air quality act.”

The legislature also amended the powers of the Secretary in several ways, one of which was to limit the emergency power that the Secretary had relied upon in denying Sunflower’s 2006 PSD permit application. See K.S.A. 2012 Supp. 65-3012; L. 2009, ch. 141, sec. 25 (adopting H.B. 2369).

[28]*28Consistent with the settlement agreement and the 2009 legislation, Sunflower submitted supplemental materials to the KDHE in late 2009 and early 2010 to update its PSD permit application for tire construction of the Plolcomb 2 coal-fired power plant. These updates were necessaiy, at least partially, because of changes in federal requirements that became effective after the first permit had been denied.

The KDHE issued a draft PSD permit for Holcomb 2 and published a notice of scheduled public hearings and a public comment period. During the comment period, the EPA discovered errors in Sunflower s air quality impact modeling. As a result, Sunflower submitted a new modeling analysis, and, in September 2010, the KDHE issued a new draft PSD permit and another public notice of hearings and a comment period. During the subsequent proceedings, the KDHE received numerous communications from various individuals and organizations, including Sierra Club. Sierra Club officials and experts spoke at public hearings and presented written comments, as did Sierra Club members. After the hearings and the final public comment period, Sunflower provided the KDHE with proposed responses to the comments.

At the conclusion of this process, the KDHE staff recommended the permit be issued, and on December 16, 2010, the Secretary of the KDHE issued the final PSD permit'—the air emission source construction permit at issue in this appeal—for construction of Holcomb 2. In an extensive “Responsiveness Summary,” the KDHE addressed hundreds of public comments, including those submitted by Sierra Club. In large part, the KDHE’s responses were identical to those proposed by Sunflower.

Sierra Club filed a petition for judicial review of the permit in the Kansas Court of Appeals. See K.S.A. 2012 Supp. 65-3008a(b) (under the KAQA, the Court of Appeals has “original jurisdiction to review any such final agency action”).

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Bluebook (online)
310 P.3d 360, 298 Kan. 22, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sierra-club-v-moser-kan-2013.