Sierra Club v. Otter Tail Power Co.

615 F.3d 1008, 40 Envtl. L. Rep. (Envtl. Law Inst.) 20213, 71 ERC (BNA) 1551, 2010 U.S. App. LEXIS 16692, 2010 WL 3168434
CourtCourt of Appeals for the Eighth Circuit
DecidedAugust 12, 2010
Docket09-2862
StatusPublished
Cited by38 cases

This text of 615 F.3d 1008 (Sierra Club v. Otter Tail Power Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sierra Club v. Otter Tail Power Co., 615 F.3d 1008, 40 Envtl. L. Rep. (Envtl. Law Inst.) 20213, 71 ERC (BNA) 1551, 2010 U.S. App. LEXIS 16692, 2010 WL 3168434 (8th Cir. 2010).

Opinion

MURPHY, Circuit Judge.

Sierra Club brought this Clean Air Act (CAA) citizen suit against Otter Tail Power Company, MDU Resources Group, and Northwestern Energy, who own and operate the Big Stone Generating Station, a coal fired power plant near the border between South Dakota and Minnesota. Sierra Club alleged that Otter Tail violated the CAA by failing to obtain permits for a series of modifications to the plant and by exceeding applicable emission limits. The district court 1 granted Otter Tail’s motion *1011 to dismiss, and Sierra Club timely appealed. We affirm.

I.

Since the factual allegations underlying this controversy are tied into the CAA and its related regulations, we begin with an examination of the applicable statutory and regulatory framework. Then we will turn to the factual and procedural background of the case.

A.

Congress enacted the Clean Air Act Amendments of 1970 seeking “ ‘to guarantee the prompt attainment and maintenance of specified air quality standards.’ ” Alaska Dep’t of Envtl. Conservation v. EPA, 540 U.S. 461, 469, 124 S.Ct. 983, 157 L.Ed.2d 967 (2004) (quoting Union Elec. Co. v. EPA, 427 U.S. 246, 249, 96 S.Ct. 2518, 49 L.Ed.2d 474 (1976)). To that end, it “directed EPA to devise National Ambient Air Quality Standards (NAAQS) limiting various pollutants, which the States were obliged to implement and enforce.” Envtl. Defense v. Duke Energy Corp., 549 U.S. 561, 566, 127 S.Ct. 1423, 167 L.Ed.2d 295 (2007) (citing 42 U.S.C. §§ 7409, 7410).

A central part of the CAA’s regulatory scheme was the New Source Performance Standards (NSPS) program, which required EPA to develop “technology-based performance standards” designed to limit emissions from major new sources of pollution. Chevron U.S.A., Inc. v. Natural Res. Defense Council, Inc., 467 U.S. 837, 846, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984); see 42 U.S.C. § 7411(b) (2006). “New sources” include both newly constructed facilities and those that have been modified such that their emissions increase. Duke Energy, 549 U.S. at 566-67, 127 S.Ct. 1423 (citing 42 U.S.C. § 7411(a)(2)). It is “unlawful for any owner or operator of any new source to operate such source in violation of’ applicable performance standards. 42 U.S.C. § 7411(e).

The Supreme Court has pointed out that the NSPS program “did too little to ‘achieve the ambitious goals of the 1970 amendments.’ ” Duke Energy, 549 U.S. at 567, 127 S.Ct. 1423 (quoting R. Belden, Clean Air Act 7 (2001)) (alteration omitted). Merely setting emissions limits failed to improve air quality in those areas that had already attained the minimum standards of the NAAQS because polluters had no incentive to diminish emissions below the established limits. Congress therefore amended the CAA again in 1977 to add the “Prevention of Significant Deterioration” (PSD) program, which seeks to ensure that the “air quality floor” established by the NAAQS does not “in effect become a ceiling.” Sierra Club v. Thomas, 828 F.2d 783, 785 (D.C.Cir.1987).

Under the PSD program, “[n]o major emitting facility ... may be constructed” or modified unless it meets certain preconditions. 42 U.S.C. §§ 7475(a); 7479(2)(C) (“The term ‘construction’ ... includes ... modification.”). Among the preconditions relevant here are that the facility must obtain a permit setting forth applicable emission limitations, § 7475(a)(1), and that it must be subject to “best available control technology” (BACT), § 7475(a)(4). BACT, despite what the term implies, is not a particular type of technology. Rather, it is an “emission limitation based on the maximum degree of reduction of each pollutant subject to regulation ... which the permitting authority, on a case-by-case basis, taking into account energy, environmental, and economic impacts and other costs, determines is achievable” for the facility in question. Id. § 7479(3).

The PSD program is primarily implemented by the states through “state implementation plans” (SIPs). Id. § 7471. States have broad discretion in designing their SIPs, but the plans must include certain federal standards and are subject *1012 to EPA review and approval. See Alaska Dep’t of Envtl. Conservation, 540 U.S. at 470, 124 S.Ct. 983. At all times relevant to this case, South Dakota had not yet incorporated approved PSD provisions into its SIP and the federal PSD regulations set forth at 40 C.F.R. § 52.21 therefore govern this case. See id. § 52.21(a)(1). 2

In 1990 Congress again amended the CAA to require each covered facility to obtain a comprehensive operating permit setting forth all CAA standards applicable to that facility. See 42 U.S.C. § 7661a(a). These “Title V” permits do not generally impose any new emission limits, but are simply intended to incorporate into a single document all of the CAA requirements governing a facility. See Romoland Sch. Dist. v. Inland Empire Energy Ctr., LLC, 548 F.3d 738, 742 (9th Cir.2008). Similar to other CAA programs, Title V is implemented primarily by the states under EPA oversight. See id. In states with EPA approved programs, Title V permits are issued by the state permitting authority, but are subject to EPA review and veto. See id. at 742-43; 42 U.S.C. § 7661d.

B.

The Big Stone Generating Station is a 450 megawatt coal fired power plant located in Big Stone City, South Dakota. 3 Otter Tail Power Company operates the plant, which it jointly owns with MDU Resources Group and Northwestern Energy (the three appellees will be collectively referred to as Otter Tail).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Casey Voigt v. U.S. E.P.A.
46 F.4th 895 (Eighth Circuit, 2022)
United States v. Ameren Missouri
9 F.4th 989 (Eighth Circuit, 2021)
Casey Voigt v. Coyote Creek Mining Co., LLC
999 F.3d 555 (Eighth Circuit, 2021)
Sierra Club v. EPA
964 F.3d 882 (Tenth Circuit, 2020)
United States v. Ameren Mo.
372 F. Supp. 3d 868 (E.D. Missouri, 2019)
USA v. Luminant Generation Co.,L.L.C., et a
905 F.3d 874 (Fifth Circuit, 2018)
Voigt v. Coyote Creek Mining Co.
329 F. Supp. 3d 735 (U.S. District Court, 2018)
United States v. Missouri
229 F. Supp. 3d 906 (E.D. Missouri, 2017)
United States v. Blue Lake Power, LLC
215 F. Supp. 3d 838 (N.D. California, 2016)
Nucor Steel-Arkansas v. Big River Steel, LLC
825 F.3d 444 (Eighth Circuit, 2016)
Sierra Club v. Oklahoma Gas & Electric Co.
816 F.3d 666 (Tenth Circuit, 2016)
United States Securities & Exchange Commission v. Collyard
154 F. Supp. 3d 781 (D. Minnesota, 2015)
Nucor Steel-Arkansas v. Big River Steel, LLC
93 F. Supp. 3d 983 (E.D. Arkansas, 2015)
B & H Medical, LLC v. United States
116 Fed. Cl. 671 (Federal Claims, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
615 F.3d 1008, 40 Envtl. L. Rep. (Envtl. Law Inst.) 20213, 71 ERC (BNA) 1551, 2010 U.S. App. LEXIS 16692, 2010 WL 3168434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sierra-club-v-otter-tail-power-co-ca8-2010.