ALLCO FINANCE LIMITED, Plaintiff-Appellant, v. ROBERT J. KLEE, in his official capacity as Commissioner of the Connecticut Department of Energy and Environmental Protection, Defendant-Appellee, OFFICE OF CONSUMER COUNSEL, FUSION SOLAR LLC, NUMBER NINE WIND FARM LLC, GREENSKIES RENEWABLE ENERGY, LLC, Intervenors-Appellees.
Docket No. 15-20
UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT
Decided: November 6, 2015
August Term, 2015. Submitted: September 2, 2015.
KATZMANN, Chief Judge, HALL and LIVINGSTON, Circuit Judges.
Thomas Melone, Allco Renewable Energy Limited, New York, New York, for Plaintiff-Appellant.
Robert D. Snook, Assistant Attorney General, for George Jepsen, Attorney General of the State of Connecticut, Hartford, Connecticut, for Defendant-Appellee.
Bradford S. Babbitt and James R. Nault, Robinson & Cole LLP, Hartford, Connecticut, for Intervenors-Appellees Fusion Solar LLC and Number Nine Wind Farm LLC.
Joseph A. Rosenthal, Principal Attorney, for Elin Swanson Katz, Consumer Counsel of the State of Connecticut, New Britain, Connecticut, for Intervenor-Appellee Office of Consumer Counsel.
KATZMANN, Chief Judge:
Plaintiff-Appellant Allco Finance Limited (“Allco“) appeals from a final
We AFFIRM the district court‘s judgment on alternative grounds. Specifically, we hold that: (1) Allco cannot bring claims under
BACKGROUND
A. The Federal Power Act and PURPA Statutory Schemes
We begin with some background on the Federal Power Act and PURPA statutory schemes. The Federal Power Act gives the Federal Energy Regulatory Commission (“FERC“) exclusive authority to regulate sales of electricity at wholesale in interstate commerce. See
Even though Allco concedes that it “does not rely on the private right of
B. Factual Background
This case centers on Connecticut‘s implementation of a 2013 state statute
Implementing this statute, the Commissioner solicited Section 6 proposals in July 2013. Allco submitted proposals for five solar projects, each of which was no more than 80 megawatts and satisfied PURPA‘s criteria for a qualifying facility.
In September 2013, the Commissioner selected Number Nine as one of the recipients of a contract with the utilities. Number Nine received a fifteen-year contract at a fixed price. According to Allco, Number Nine is too large to be a qualifying facility under PURPA, so its selection prevented the selection of at least one of Allco‘s projects. The Commissioner also directed the utilities to enter into a separate fixed-price contract with Fusion Solar, a generator that was a qualifying facility. According to Allco, Fusion Solar‘s fixed price will differ from the price that Number Nine otherwise would have received from selling its electricity into
In a determination accompanying its selection of Number Nine and Fusion Solar, the Connecticut Department of Energy and Environmental Protection “describ[ed] the basis for its selection of [these] two renewable energy projects to enter into long-term power purchase agreements pursuant to Section 6.” J.A. 55. In so doing, the Department set forth a ranked list of proposals. Allco‘s Harwinton Solar project appeared fourth on that list. Other Allco projects ranked seventh, tenth, and thirteenth. Additionally, Allco bid a project at a lower price than Fusion Solar, but that project was excluded, without explanation, from the ranked list.
After failing to receive a Section 6 contract, Allco filed a complaint in the U.S. District Court for the District of Connecticut, alleging that the Commissioner‘s implementation of Section 6 was preempted by the Federal Power Act. The complaint alleged that Number Nine was too large to be a qualifying facility and that the Commissioner‘s action in compelling a wholesale electricity transaction could be lawful only with respect to a qualifying facility
The Commissioner moved to dismiss this complaint, and the district court granted that motion for two independent reasons. The district court first concluded that Allco lacked standing, both because its injuries were not within the Federal Power Act and PURPA‘s “zone of interests” and because its injuries were not likely to be redressed by a favorable judgment. Allco Fin. Ltd. v. Klee, No. 13-cv-1874, 2014 WL 7004024, at *3–6 (D. Conn. Dec. 10, 2014). In the alternative, the district court concluded that Allco failed to state a claim, both because the Commissioner‘s actions were not preempted and because there was no right of action available to Allco under
DISCUSSION
We review de novo a district court‘s dismissal of a complaint both for lack
To establish Article III standing, Allco must demonstrate: “(1) injury-in-fact, which is a ‘concrete and particularized’ harm to a ‘legally protected interest‘; (2) causation in the form of a ‘fairly traceable’ connection between the asserted injury-in-fact and the alleged actions of the defendant; and (3) redressability, or a non-speculative likelihood that the injury can be remedied by the requested relief.” W.R. Huff Asset Mgmt. Co., LLC v. Deloitte & Touche LLP, 549 F.3d 100, 106–07 (2d Cir. 2008) (emphases omitted) (quoting Lujan v. Defenders of Wildlife, 504 U.S. 555, 560–61 (1992)). In determining whether an injury is redressable, we examine whether each aspect of the relief requested by Allco would redress its asserted injury. See, e.g., Steel Co. v. Citizens for Better Env‘t, 523 U.S. 83, 105–09 (1998).
The crux of Allco‘s challenge to the power-purchase agreements is that the Commissioner failed to conduct the challenged procurement in compliance with the Federal Power Act and PURPA. Allco seeks to invalidate the results of the first procurement so that the Commissioner can award Allco a Section 6 contract
But, as noted earlier, Allco does not seek to enforce PURPA‘s requirements through the private right of action contained within PURPA itself. Allco concedes that it “does not rely on the private right of action under”
A. Allco‘s Claims Under 42 U.S.C. §§ 1983 and 1988
Allco has Article III standing to bring a claim for money damages and fees under
Because Allco is in effect seeking to enforce PURPA when it requests money damages for its lost Section 6 contract, we must decide whether
We need not consider the first question because the answer to the second question clearly forecloses the availability of relief under
Additionally, because no
B. Allco‘s Preemption Claim
Allco also seeks equitable relief through what it describes as “a straightforward pre-emption claim for regulating wholesale sales.” Appellant‘s Supp. Br. 2. This preemption claim requests two forms of relief: (1) enjoining the Commissioner from conducting future procurements that violate the Federal
1. Injunction Related to Future Procurements
First, we affirm the district court‘s dismissal of Allco‘s claims seeking equitable relief regarding future procurements conducted by the Commissioner. For such relief to redress Allco‘s injury, it must be “likely, as opposed to merely speculative,” that Allco receive the Section 6 contract that it seeks. Friends of the Earth, Inc. v. Laidlaw Envtl Servs. (TOC), Inc., 528 U.S. 167, 181 (2000). Based on the record before us, the only way in which the Commissioner can issue a Section 6 contract that is not preempted by the Federal Power Act is if that contract meets the requirements of the PURPA exception. As Allco acknowledges, its “status as a small power producer” under PURPA “is relevant to [its] Article III standing and to explain[ing] why [its] injury is redressable.” Appellant‘s Supp. Br. 2. As such, any equitable relief relating to future contracts awarded under Section 6 necessarily implicates PURPA; otherwise, such relief would provide no path by which Allco could eventually obtain a non-preempted Section 6 contract.
PURPA requires administrative exhaustion for claims brought by qualified facilities5 that are attempting to enforce the requirements of
Allco‘s preemption claim presents us with a novel application of PURPA‘s administrative exhaustion requirement. Allco‘s attempt to enforce PURPA‘s requirements stems not from a challenge to a state regulation promulgated under
Our reading of
This Court has also held that the administrative exhaustion requirement is jurisdictional.7 See Niagara Mohawk Power, 306 F.3d at 1270 (“We hold that the District Court correctly dismissed [the plaintiff‘s] PURPA claim as against the [defendants] for lack of subject matter jurisdiction because of [the plaintiff‘s] failure to exhaust its administrative remedy by petitioning FERC to bring an
2. Equitable Relief Voiding Fusion Solar and Number Nine‘s Contracts
Having disposed of Allco‘s claims seeking equitable relief regarding future procurements, we must finally resolve Allco‘s claims that seek solely to invalidate the results of the challenged procurement and void its competitors’ contracts. To the extent that these claims seek only to invalidate the results of the prior procurement—and not also to require the Commissioner to conduct future procurements in compliance with PURPA—Allco lacks standing because that requested relief does not redress its injury, i.e., its not being selected for a Section 6 contract.
CONCLUSION
For the reasons stated herein, we AFFIRM the district court‘s judgment.
