Natural Resources Defense Council v. Poet Biorefining- North Manchester, LLC, Poet Biorefining- Cloverdale, LLC, Central Indiana Ethanol, Inc.
15 N.E.3d 555
Ind.2014Background
- Agency interpretation of regulatory term in SIP; IDEM changed interpretation to exclude fuel ethanol plants from 'chemical process plant' after Ethanol Rule; ethanol facilities may be major sources subject to PSD; NRDC challenged permits and sought admin review; OEA vacated permits and remanded; trial court and Court of Appeals proceedings culminated in Indiana Supreme Court affirming IDEM’s interpretation.
- Putnam County and POET Biorefining permits treated ethanol plants as minor sources; NRDC argued SIP amendment was required; IDEM cited EPA Ethanol Rule and state law approving interpretation.
- Indiana’s SIP remained EPA-approved but did not define 'chemical process plant' to include ethanol plants; the Ethanol Rule advised SIP revisions may not be required to implement interpretation.
- Court held SIP revision not required to effect IDEM’s interpretation; IDEM’s interpretation of 'chemical process plant' was reasonable and permissible under Chevron principles.
- Conclusion: IDEM’s exclusion of fuel ethanol plants from 'chemical process plant' is reasonable; SIP revision not required; trial court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether SIP revision was mandatory for IDEM’s change | NRDC: SIP must be formally revised | NRDC: no formal SIP change needed; Ethanol Rule supports interpretation | Not required; interpretation permissible without SIP revision |
| Whether IDEM’s interpretation is reasonable | NRDC: strict plain-meaning interpretation required | IDEM: interpretation consistent with EPA rule and SIP framework | Reasonable interpretation; permits valid under current SIP/CAA framework |
| Effect of Cinergy on interpretation | Cinergy controls unless SIP defines term | Cinergy distinguishable; no SIP definition here | Cinergy not controlling; no definitional SIP provisionmandates SIP revision |
| Role of SIC Manual in interpretation | SIC defines categories including ethanol as chemical process plant | SIC used only for grouping, not defining SIP terms | SIC does not compel SIP revision; IDEM may interpret term without revising SIP |
Key Cases Cited
- U.S. v. Cinergy Corp., 623 F.3d 455 (7th Cir. 2010) (regulatory SIP amendments must be approved to alter specific standards)
- Chevron, U.S.A., Inc. v. NRDC, Inc., 467 U.S. 837 (Supreme Court, 1984) (agency interpretations given deference unless inconsistent with statute)
- Indiana Dept. of Envtl. Mgmt. v. Boone Cnty. Res. Sys., Inc., 803 N.E.2d 267 (Ind. Ct. App. 2004) (administrative interpretation given deference when reasonable)
- Envtl. Def. v. EPA, 467 F.3d 1329 (D.C. Cir. 2006) (EPA-approved SIP and agency interpretations subject to deferential review)