Wildearth Guardians v. Lamar Utilities Board

899 F. Supp. 2d 1067, 42 Envtl. L. Rep. (Envtl. Law Inst.) 20212, 2012 WL 4476649, 2012 U.S. Dist. LEXIS 140502
CourtDistrict Court, D. Colorado
DecidedSeptember 28, 2012
DocketCivil Action No. 1:09-cv-02974-DME-BNB
StatusPublished

This text of 899 F. Supp. 2d 1067 (Wildearth Guardians v. Lamar Utilities Board) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wildearth Guardians v. Lamar Utilities Board, 899 F. Supp. 2d 1067, 42 Envtl. L. Rep. (Envtl. Law Inst.) 20212, 2012 WL 4476649, 2012 U.S. Dist. LEXIS 140502 (D. Colo. 2012).

Opinion

ORDER GRANTING PLAINTIFF PARTIAL SUMMARY JUDGMENT, DENYING PLAINTIFF’S MOTION TO TAKE JUDICIAL NOTICE, AND DENYING DEFENDANTS’ RENEWED MOTION FOR ABSTENTION AND MOTION FOR SUMMARY JUDGMENT

DAVID M. EBEL, District Judge.

This matter comes before the Court on three pending motions. After considering those motions and relevant briefing, the Court GRANTS Plaintiff Wildearth Guardians’ (“Wildearth’s”) Motion for Partial Summary Judgment (Doc. 77), DENIES Wildearth’s Motion to Take Judicial Notice of Documents in Support of Their Motion for Partial Summary Judgment (Doc. 78), and DENIES Defendants Lamar Utilities Board, doing business as Lamar Light and Power, and Arkansas River Power Authority’s Renewed Request for Abstention and Motion for Summary Judgment (Doc. 76). In doing so, the Court concludes that Wild-earth’s request for injunctive relief is MOOT, but the remainder of the case remains justiciable.

I. BACKGROUND

The Court set forth the facts of this case in its Order Granting in Part and Denying in Part Defendants’ Motion to Dismiss; however, due to their importance to the Court’s analysis, some facts are worth repeating here. Over the last decade, the Environmental Protection Agency (“EPA”) has twice changed its position on how coal-fired power plants, such as the one at issue here, are regulated under the Clean Air Act (“CAA”). See generally WildEarth, [1069]*1069Guardians v. Pub. Serv. Co. of Colo., 690 F.3d 1174, 1178-81 (10th Cir.2012) (to be reported at 690 F.3d 1174). This has created problems for the industry as the governing regulatory requirements have changed at the same time plants have actively been designed, built, and operated. That difficulty notwithstanding, it is incumbent on operators, such as Defendants Lamar Utilities Board and Arkansas River Power Authority (collectively “the Utilities”), to ensure that their facilities comport with federal law. The Court will first lay out that law and then briefly sketch the undisputed facts underlying this case.

A. Clean Air Act Section 112(g), the Delisting Rule and CAMR, and New Jersey v. EPA

Section 112 of the CAA, 42 U.S.C. § 7412,1 regulates the emission of hazardous air pollutants into the atmosphere. In 1990, Congress amended § 112 to list more than one hundred specific hazardous air pollutants, including mercury, that the EPA would be required to regulate. New Jersey v. EPA, 517 F.3d 574, 578 (D.C.Cir. 2008). These amendments also required the EPA to conduct a study to determine whether it was “appropriate and necessary” to regulate, under § 112, electric utility steam-generating units (“EGUs”) as sources of hazardous air pollutants. CAA § 112(n)(l)(A). This study, which the EPA completed in 1998, found “a plausible link” between human-generated sources of mercury, such as coal- and oil-fired EGUs, and methylmercury in fish, which poses a significant human health hazard. New Jersey, 517 F.3d at 579.

Based on this report, the EPA determined in 2000 that coal- and oil-fired EGUs would be regulated under § 112(g), which requires that all new and reconstructed EGUs meet the “maximum achievable control technology emission limitation” (“MACT”) standard. CAA § 112(g)(2)(A). Congress had previously directed the EPA to establish specific MACT standards applicable to various categories of hazardous waste emitters. See id. § 112(d) These standards “reflect the maximum reduction in emissions which can be achieved by application of the best available control technology.” Natural Res. Def. Council v. EPA, 489 F.3d 1364, 1368 (D.C.Cir.2007) (internal quotation marks, alteration omitted). In the interim, before the EPA promulgated MACT standards for EGUs, the relevant state or federal air pollution permitting authority was to determine whether an EGU met the required MACT standard “on a case-by-case basis.” CAA § 112(g)(2). The EPA authorized the State of Colorado to make MACT determinations for EGUs in this State, see WildEarth Guardians, 690 F.3d at 1179 & n. 1, and the State does so through the Air Pollution Control Division (“APCD”) of Colorado’s Department of Public Health and Environment.2 In the normal course, MACT determinations are [1070]*1070made prior to the construction or reconstruction of an EGU.

The MACT requirement applies only to EGUs that are a “major source” of hazardous air pollutants. CAA § 112(g). An EGU is a major source if it “emits or has the potential to emit considering controls, in the aggregate, 10 tons per year or more of any hazardous air pollutant or 25 tons per year or more of any combination of hazardous air pollutants.” Id. § 112(a)(1).

In 2005, the EPA changed course in its approach to regulating EGUs and determined that it would “de-list” EGUs from § 112 regulation and, instead, regulate EGUs under § 111. New Jersey, 517 F.3d at 579-80. It did this by issuing two rules: the Delisting Rule, which removed EGUs from § 112 coverage, and the Clean Air Mercury Rule (“CAMR”), which, under § 111, set nationwide mercury emission limits and established a voluntary cap-and-trade system for new and reconstructed EGUs. New Jersey, 517 F.3d at 577. These rules went into effect in May of 2005. Id. at 580. A number of states filed suit against the EPA in response, arguing that § 112(c)(9) of the CAA sets forth specific procedures for delisting sources of hazardous air pollutants and that the EPA did not follow those procedures when it delisted EGUs. Id. at 581. The D.C. Circuit agreed and vacated both the Delisting Rule and the CAMR.3 Id. at 583-84. Thus, as of the issuance of the mandate by the D.C. Circuit, on March 14, 2008, coal-fired EGUs that are major sources of hazardous air pollutants were once again required to obtain a MACT determination in order to operate lawfully.

In January of 2009, the EPA Principal Deputy Assistant Administrator sent a letter to all EPA Regional Administrators addressing the question of “coal- and oil-fired EGUs that are major sources and that began actual construction or reconstruction between the March 29, 2005 publication of [the Delisting Rule and CAMR] and the March 14, 2008 vacatur of the rule[s].” (Doc. 76-12 at 2 (footnote omitted).) In the EPA’s view, “these EGUs are legally obligated to come into compliance with the requirements of Section 112(g).” (Id.) In the letter, the EPA acknowledged that

[s]ection 112(g) proceedings ordinarily are concluded before the commencement of any construction activity, so it is reasonable for the permitting authority— under these unique and compelling circumstances, and within the bounds of its discretion under [CAA] Section 112(g) and EPA’s section 112(g) regulations— to give consideration to the effect of prior construction, undertaken in reasonable reliance on now-vacated rules, in making the case-by-case determination of applicable MACT requirements.

(Id.

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899 F. Supp. 2d 1067, 42 Envtl. L. Rep. (Envtl. Law Inst.) 20212, 2012 WL 4476649, 2012 U.S. Dist. LEXIS 140502, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wildearth-guardians-v-lamar-utilities-board-cod-2012.