United States v. GLOBAL PARTNERS LP

District Court, D. Maine·Decided December 19, 2019·No. 2:19-cv-00122·Unknown

Opinion

UNITED STATES DISTRICT COURT

DISTRICT OF MAINE

UNITED STATES OF AMERICA, ) ) PLAINTIFF ) ) V. ) CIVIL NO. 2:19-CV-122-DBH ) GLOBAL PARTNERS LP, ET AL., ) ) DEFENDANT )

MEMORANDUM DECISION GRANTING MOTION TO ENTER CONSENT DECREE

This is a case about emissions of smog-causing compounds from a petroleum storage site in South Portland. The federal government and the site owners have agreed to settle their dispute and have proposed a consent decree for which they seek court approval. South Portland’s local government and residents widely criticized the proposed decree during an extended public comment period, but no one has moved to intervene in this lawsuit, and the criticisms generally relate to matters outside the scope of the complaint that the government filed in court against the defendants. As the executive branch, the government has full control over what legal proceedings to bring, and as a judge, I must measure the settlement and proposed decree against the scope of the complaint the government actually filed, not against what it could have or perhaps should have done. See SEC v. Citigroup Glob. Mkts., Inc., 752 F.3d 285, 297 (2d Cir. 2014) (“To the extent the district court withheld approval of the charges against Citigroup, that constituted an abuse of discretion. . . . The exclusive right to choose which charges to levy against a defendant rests with the S.E.C.”); United States v. Davis, 261 F.3d 1, 22 (1st Cir. 2001) (“[A] consent decree must . . . come within the general scope of the case based on the

pleadings.”); see generally Brandon L. Garrett, The Public Interest in Corporate Settlements, 58 B.C. L. Rev. 1483, 1514-16 (2017). I conclude that I must GRANT the motion to enter the consent decree. BACKGROUND On March 25, 2019, the United States, on behalf of the Environmental Protection Agency (I will call the government or plaintiff the EPA), filed in this court a complaint against the defendants (I will call them collectively Global). Compl. (ECF No. 1). Global owns and operates a petroleum storage facility in

South Portland. The EPA’s complaint says that Global failed to comply with several licensing and emission requirements for volatile organic compounds (VOCs) that come out of its storage tanks or its transfer of petroleum products. VOCs react with nitrogen oxides in sunlight to produce ground-level ozone, a pollutant that contributes to smog. EPA, Ground-level Ozone Basics, https://www.epa.gov/ground-level-ozone-pollution/ground-level-ozone-basics (last visited Dec. 19, 2019). Because VOCs have unhealthy effects, the EPA and state authorities try to control them using the Clean Air Act, 42 U.S.C. § 7401 et

seq. Here is the legal framework. Under the Clean Air Act, Maine has created a state implementation plan (the jargon is “SIP,” but there are enough other acronyms in this lawsuit, so I will call it the “Plan”) that limits VOC emissions, and the EPA approved it.1 See EPA Approved Regulations in the Maine SIP, https://www.epa.gov/sips-me/epa-approved-regulations-maine-sip (last visited Dec. 19, 2019)2; 42 U.S.C. § 7410 (provision of the Clean Air Act concerning state implementation plans). Maine’s Plan prohibits any VOC emission without a

license. Me. Plan Ch. 115 § II. To obtain a license, an entity must demonstrate that its air emissions are receiving the “best practical treatment,” id. § V(A)(2)(a), which means that the entity is reducing its emissions to the lowest level possible given existing technology, the effectiveness of alternative methods, and economic feasibility, id. Ch. 100(19). Any facility that has the potential to emit at least 40 tons of VOCs per year must comply with additional “reasonably available control technology” requirements to limit its VOC emissions. Id. Ch. 134. Finally, an entity that is a “major source” of air pollution—meaning it is subject to certain

federal regulations and has the potential to emit at least 50 tons of VOCs per year, id. Ch. 100(78)—must obtain what is known as a Part 70 license (also called a Title V operating permit). Id. Ch. 140 (laying out details of Part 70 licensing program); 40 C.F.R § 70.5 (requiring major sources to apply for the license). In 2014, the EPA informed Global that its South Portland facility was a “major source” of air pollution and it therefore had to obtain a Title V operating permit.3 June 6, 2014, Notice of Violation, Kudarauskas Decl. Ex. D at 63 ¶ 15

1 The EPA can enforce the state’s plan. 42 U.S.C. § 7413(b). 2 Throughout its filings, the EPA cites the federally approved versions of the Maine Plan, which are found on the EPA’s website at the address in text. The Maine DEP also publishes these rules on its website, see Me. DEP, Air Rules, https://www.maine.gov/dep/air/rules/index.html (last visited Dec. 19, 2019), but they are numbered and arranged differently. To remain consistent with the EPA filings, I use the numbering found on the EPA’s website. 3 The EPA learned about the emissions at the South Portland facility from Global itself. After Global disclosed elevated VOC emissions from tanks it owns in Chelsea, Massachusetts, the EPA (ECF No. 19-3). The EPA said Global was also exceeding the VOC emissions limit contained in its existing Maine license and failing to apply “best practical treatment” to its emissions. Id. at 63 ¶¶ 16-17. The following year, the EPA issued a second notice finding that the South Portland facility was subject to and

failing to follow the “reasonably available control technology” requirements. April 7, 2015, Notice of Violation, Kudarauskas Decl. Ex. D at 66 (ECF No. 19-3). On March 25, 2019, the EPA filed in this court a four-count complaint alleging that Global violated: (1) Chapter 115 of the Maine Plan by failing to obtain a license for its VOC emissions and failing to control VOC emissions by applying “best practical treatment”; (2) Chapter 115 of the Plan by exceeding the VOC emissions limit of its existing license; (3) Chapter 134 of the Plan by failing to comply with the “reasonably available control technology” requirements; and

(4) Sections 502(a) and 503(c) of the Clean Air Act, 42 U.S.C. §§ 7661a(a) and 7661b(c), by failing to obtain a Title V operating permit even though the facility was a “major source” of VOCs. On the same day it filed its complaint, the EPA also filed a proposed consent decree. The decree, to which Global consented, would require Global to pay a $40,000 penalty, follow a variety of new requirements aimed at reducing VOC emissions, apply for an amended VOC license from the Maine Department of Environmental Protection, and spend at least $150,000 on “a supplemental

environmental project” to improve local air quality by replacing residential wood-

required it to conduct emissions testing at one of its other facilities. Gov’t’s Consent Mot. to Enter Consent Decree at 6 (ECF No. 19). The EPA allowed the company to choose which facility to test, Nov. 2, 2011, letter to Global Partners, Kudarauskas Decl. Ex. C at 47 (ECF No. 19-3), burning stoves or boilers in Cumberland County.

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