An earlier post on the US Supreme Court’s decision in Sackett v. EPA, wherein the Court said that parties facing administrative orders under the Clean Water Act had the right to an immediate judicial hearing if the parties were challenging the jurisdiction of EPA to issue the orders. Recently, on March 26, 2012 has come another blow to EPA jurisdiction from the federal 5th Circuit Court of Appeals.
In Luminant Generation Company, et al. v. US Environmental Protection Agency, the State of Texas had issued a permit covering a number of different emissions-producing entities on the basis that the entities all emitted the same type of pollutants and that these emissions, even when lumped together, did not exceed the National Ambient Air Quality Standards (the “Standards”) set by the federal Clean Air Act. None of the entities receiving the benefit of the permit were, on an individual basis, a “major” source of air pollution (“major” being defined as an entity emitting 100 tons or more or 250 tons or more of a regulated pollutant, depending on the source).
EPA refused to approve the State’s decision to issue the permit, contending that the Clean Air Act authorized EPA to require the State to measure pollutant emissions on the basis of narrowly-defined emission sources (e.g., a specific industry) rather than on the basis of emission types (e.g., different industries emitting the same type of pollutant). Along with Texas, some of the affected entities, including power companies and a mining company, filed suit, claiming that EPA had no authority under the Clean Air Act to limit the State’s decision as to how to issue permits so long as the permits were not issuing to any individual major source of pollution and so long as the effect was to keep overall emissions within the Standards.
The 5th Circuit agreed, stating that the Clean Air Act limits EPA’s review of State permits in minor-source cases, leaving the agency “with no discretion to do anything other than ensure that a state’s submission meets the [Act’s] requirements” [on limiting overall pollution] and, if it does, approve it….” The 5th Circuit also found that, while the Clean Air Act required EPA to approve or disapprove of Texas’regulatory scheme within 18 months after submission of the regulations to the agency, here EPA had issued its disapproval fully 2 years after that 18-month deadline had passed. The Court thus invalidated the EPA’s own invalidation of the Texas regulations and sent the matter back to the agency with the direction to reconsider the regulations in accordance with the Court’s opinion.
The Luminant and Sackett cases have been joined by yet a third opinion, Mingo Logan v. EPA, in which the federal Court of Appeals for the DC Circuit recently ruled that the agency had illicitly barred a coal company from using 2 streams as discharge sites. The Court found that the EPA’s action was inconsistent with a US Army Corps of Engineers action; the Corps of Engineers had years earlier given permission to the company to use the rivers for discharge.
This recent trio of decisions may mark a turning point in EPA jurisprudence. Traditionally, the agency has been given by the Courts broad, almost unquestioned discretion in decisions about how to pursue and regulate alleged polluters/alleged infringements on natural resources. Now the agency has faced real scrutiny as to how far its jurisdiction extends and even as to how decisions are made within
that jurisdiction.
Yet another test awaits the EPA in these regards. The DC Circuit has recently heard arguments challenging the agency’s implementation of rules regulating carbon-dioxide emissions (Coalition for Responsible Regulation v. EPA). The challenge comes from a wide variety of industries including coal, steel, cement, homebuilding and agricultural.
The challengers, among other things, dispute the agency’s authority to implement a so-called “tailoring rule”, requiring only the largest CO2 emitters (over 100,000 tons per year) to obtain permits. The argument here, somewhat like the argument in the Texas case above, is that the Clean Air Act nowhere contains a provision authorizing the EPA to regulate only such large sources of CO2 emissions to the exclusion of the other six-million or so smaller sources that emit the same pollutant. Were the challenge validated by the DC Circuit, EPA would be forced to regulate the emissions of such small emissions sources as churches and small businesses, probably making the regulations wildly unpopular and in need of further reform (which is what the industries want).
To the extent this line of decisions continues and thus constrains EPA, look for the individual States to step in using their own best judgment as to what environmental regulations to pass and implement.
From my column, "Legal News You Can Use", published inm the Valley News Group (San Fernando Valley California) newspapers.