The Bunker Hill Company v. Environmental Protection Agency

572 F.2d 1286, 7 Envtl. L. Rep. (Envtl. Law Inst.) 20681, 11 ERC (BNA) 1204, 1977 U.S. App. LEXIS 5458
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 28, 1977
Docket75-3670
StatusPublished
Cited by63 cases

This text of 572 F.2d 1286 (The Bunker Hill Company v. Environmental Protection Agency) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Bunker Hill Company v. Environmental Protection Agency, 572 F.2d 1286, 7 Envtl. L. Rep. (Envtl. Law Inst.) 20681, 11 ERC (BNA) 1204, 1977 U.S. App. LEXIS 5458 (9th Cir. 1977).

Opinion

SNEED, Circuit Judge:

Petitioner challenges the actions of the Environmental Protection Agency (EPA) in rejecting portions of the State of Idaho’s implementation plan under the Clean Air Act, 42 U.S.C.A. §§ 1857, et seq. (Supp. 1977), and substituting therefor its own regulations. See 40 Fed.Reg. 53584 (1975). The rejected portions of the Idaho implementation plan deal with the control of sulfur dioxide (S02) from the Idaho plant of petitioner. The petitioner’s challenge relies on several grounds. While we find in favor of the Administrator on various legal and procedural issues, we remand this proceeding to the EPA for further consideration of the technological feasibility of certain modifications of petitioner’s smelter operations which would be required by the substituted regulations.

I.

History of the Case.

Bunker Hill’s Kellogg, Idaho operations include lead and zinc smelters that emit substantial amounts of S02 gas. Some of the S02 gas presently is vented directly to the atmosphere; the remainder is treated in three acid plants — two servicing the zinc operations, and the third handling the lead smelter. There is no dispute that, as presently operated, Bunker Hill’s Idaho plant is *1290 not meeting the federal ambient air quality standards for SO2. 1 The primary issue before us is what modifications Bunker Hill must make in its operations in order to satisfy the requirements of the Clean Air Act. To understand this issue the administrative proceedings culminating in this challenge will be outlined and thereafter the focus will be upon the technological feasibility of the control technology made necessary by EPA’s substituted regulations. Our disposition of this challenge will conclude with a discussion of certain other issues raised by petitioner and with our instructions pertaining to the procedure on remand to the EPA.

On January 3, 1975, the Idaho Department of Health and Welfare (IDHW) adopted a regulation requiring Bunker Hill to “capture” 72 percent of its SO2 emissions; 2 the IDHW had decided, after lengthy hearings, that this percentage emission control was the maximum percentage feasible under currently available technology. 3 This level of emission control would be achieved through a series of specific emission limitations: (i) a 4000 parts per million (ppm) SO2 limitation on the emissions from each of Bunker Hill’s acid plants and from its zinc plant main stack, based on eight-hour averages; (ii) a 100 tons per day limitation on emissions from the lead plant main stack; and (iii) a 1200 tons per week limitation on emissions from the entire smelting complex.

*1291 Since even this level of emission control would not meet the ambient air quality standards, the Idaho plan also would require Bunker Hill to supplement its control program with whatever dispersion enhancement techniques 4 prove necessary to meet these standards. Bunker Hill would be held responsible for violations in the Kellogg Valley of any federal ambient air quality standard, although, in the case of the primary annual standard, 5 a 30-day investigation period would be provided for purposes of determining whether other undetected and uncontrolled sources might have been the actual cause of the violation, in which case Bunker Hill would not be held liable. Finally, Bunker Hill would be required to conduct research and development aimed at improving emission control techniques; as these techniques became feasible, Bunker Hill’s emission limitations would be tightened.

The EPA refused to approve Idaho’s proposed emission limitations and instead substituted standards that would guarantee 82 percent control. On the basis of a study commissioned by EPA of Bunker Hill’s operation, together with other evidence, the EPA held that 82 percent, rather than 72 percent, was the maximum level of control technologically and economically feasible for Bunker Hill. The EPA study (prepared for EPA by Mr. Tim Browder, an expert in SO2 control technology — hereinafter referred to as the Browder Study) contended that various efficiency problems presently plaguing Bunker Hill’s control process could be solved by modifying Bunker Hill’s acid plants. In particular, the Browder Study argued that adding sulfur burners to the acid plants would guarantee sustained autothermality. 6

Under the EPA regulations, SO2 emissions from Bunker Hill’s acid plants would not be allowed to exceed 2600 ppm on a 6-hour average; 7 emissions from the main lead stack would not be allowed to exceed 2000 ppm; and a 680 tons per day limitation would be imposed on the entire Kellogg operation. Since even 82 percent control would not guarantee attainment of the air quality standards, dispersion enhancement techniques would again be required. As under the Idaho provisions, Bunker Hill would be held accountable for any violations of the federal ambient air quality standards; however, the EPA made no provision for a 30-day investigation period. Again, Bunker Hill would be required to carry on a research and development program with the objective of raising over the years the level of constant emission control.

Bunker Hill focuses its attack on the EPA’s determination that Bunker Hill can feasibly achieve 82 percent emission control. First, it argues that the EPA was bound by the contrary conclusion of the IDHW that only a 72 percent control level is feasible. Second, even assuming that the EPA was free to reconsider the question of the maximum feasible control level, Bunker Hill argues that the EPA’s determination was “arbitrary and capricious” and was marred by *1292 various procedural irregularities. Bunker Hill also attacks the EPA’s decision to eliminate the 30-day review period provided for in the original Idaho regulations.

Our study of the administrative record cast considerable doubt on whether the sulfur burner system proposed in the Browder Study, a necessary element in EPA’s proposed 82 percent emission control standard, is indeed technologically feasible. 8 In particular, Bunker Hill’s principal expert witness contended that sulfur burners could not track, or be coordinated with, the wide fluctuations in SO2 concentration that plague Bunker Hill’s smelter gases. Mr. Browder failed to respond fully and satisfactorily. However, because of the complexity of the technological issues involved and the importance of clearly establishing the deficiencies in the Administrator’s deliberations before remanding the regulations, we requested a supplemental brief from the EPA clarifying Browder’s sulfur burner proposal; 9 a reply brief was requested from Bunker Hill and both parties were allowed to augment the record. 10 The EPA was also granted permission to file a response to Bunker Hill’s reply brief.

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572 F.2d 1286, 7 Envtl. L. Rep. (Envtl. Law Inst.) 20681, 11 ERC (BNA) 1204, 1977 U.S. App. LEXIS 5458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-bunker-hill-company-v-environmental-protection-agency-ca9-1977.