Sierra Club v. JohnsonSierra Club v. Johnson
This Clean Air Act case involves a dispute over what triggers the Environmental Protection Agency’s statutory duty to object to the issuance of a Title Y operating permit under
I. BACKGROUND
Georgia Power Company operates several large coal-fired power plants throughout the State of Georgia. This case involves two of those plants: the Bowen Steam-Electric Generating Plant and the Scherer Steam-Electric Generating Plant.
Petitioners believe the operating permits issued to the Bowen and Scherer plants are deficient and do not list all of the clean air requirements that should apply to those plants. On its face, Petitioner’s position would appear to be supported by a violation notice issued by the EPA and a resulting civil action filed against Georgia Power to force compliance with certain provisions of the Clean Air Act. Not so, says EPA. The underlying fight with Georgia Power is still unresolved and an agency’s discretion is vast. Thus, in this case the EPA finds itself in the peculiar position of defending its decision not to object to the operating permits without backing away from its violation notice or enforcement action. To explain why we conclude the EPA’s position is ultimately tenable, we begin with a brief overview of the provisions of the Clean Air Act and the facts that underlie the dispute.
A. Title v. Permit Program
The Clean Air Act is a comprehensive regulatory scheme developed by Congress to prevent and control air pollution.
See
Title V requires all major sources of air pollution to obtain operating permits that contain emission limitations and other conditions to ensure compliance with air quality control standards.
Sierra Club v. Johnson,
In order to carry out Title V, Congress called on the states to design and enforce their own permitting programs and to submit those programs to the EPA for final approval.
Among the many air quality requirements included in an operating permit, if applicable, are prevention of significant deterioration (PSD) limits. PSD limits were enacted as part of the 1977 amendments to the Clean Air Act for the purpose of ensuring air quality in clean areas does not degrade.
Alaska Dep’t of Envtl. Conservation v. EPA,
As it does with all state issuing authorities, the EPA oversees permits issued by EPD in order to ensure they comply with the letter of the law.
See
The Administrator shall issue an objection ... if the petitioner demonstrates to the Administrator that the permit is not in compliance with the requirements of [the Clean Ar Act], including the requirements of the applicable implementation plan.
Id
(emphasis added). Thus, if the petitioner successfully demonstrates that a permit does not comply with clean air requirements, the EPA Administrator must issue an objection to the permit.
Sierra Club v. Johnson,
If the Administrator issues an objection, the proposed permit is sent back to the state permitting authority which must correct the problem; if the problem is not corrected, the EPA will issue the permit itself.
See
B. Enforcement Mechanisms
Congress has empowered the EPA with a variety of enforcement mechanisms. In most cases, the enforcement process is initiated with an EPA-issued violation notice.
See
Whenever, on the basis of any information available to the Administrator, the Administrator finds that any person has violated or is in violation of any requirement or prohibition of an applicable implementation plan or permit, the Administrator shall notify the person and the State in which the plan applies of such finding.
C. The Bowen and Scherer Plants
For many years, the Bowen and Scherer plants have considered themselves exempt from clean air requirements used to prevent the significant deterioration of air quality. In 1999, however, the EPA issued a violation notice to Georgia Power because it found the Bowen and Scherer plants were operating in violation of PSD requirements. See S. Servs. Co., Notice of Violation, EPA-CAA-2000-04-0006 (Nov. 2, 1999). Specifically, it alleged Georgia Power constructed two new steam emission units at the Scherer plant without a permit; at Bowen, it alleged numerous modifications had been made to the plant’s boiler, including the replacement and redesign of an economizer in 1992, without obtaining a permit. Id. at 8-11. The EPA believed these acts constituted “major modifications” under the Act and had triggered the application of PSD requirements to the plants. The EPA’s violation notice announced Georgia Power had “violated and continuéis] to violate” the Clean Air Act. Id. at 8,11.
When Georgia Power did not correct the violations, the United States, on behalf of the EPA, filed an enforcement action in the Northern District of Georgia seeking civil penalties and injunctive relief against Georgia Power. See United States v. Ga. Power Co., No. 1:99-CV-2859-JEC (N.D. Ga. filed Nov. 3, 1999). 1 The allegations in the complaint mirrored the PSD violations listed in the EPA-issued violation notice. Georgia Power responded by denying the allegations and asserting affirmative defenses: it denied wrongdoing at Scherer on the ground that it commenced construction of the units in 1974, and therefore the units were grandfathered out of PSD requirements; at Bowen, it argued the modifications had not resulted in significant net emissions increases and disputed the EPA’s methodology for calculating those emissions. The district court administratively closed the case in 2001, pending a potentially-relevant decision from a multi-district litigation panel. In 2002, the court denied without prejudice a motion by the United States to reopen the case. Since that time the United States has not attempted to reopen, and currently “expresses no intent, one way or the other, about seeking to reopen” the case. (Respondent’s Br. 53 n.ll.)
In 2004, Georgia Power applied to Georgia’s state permitting authority, EPD, to renew its Title V operating permits for the Bowen and Scherer plants. It submitted
Petitioners filed a timely petition with the EPA Administrator seeking to force him to object to the Bowen and Scherer permits on the ground that they lacked PSD requirements and corresponding compliance schedules. The Administrator denied the petition; he acknowledged he was required to object to a permit if “the petitioner demonstrates ... that the permit is not in compliance with the requirements of [the Clean Air Act].” EPA Order at 6 (quoting 42 U.S.C
Sierra Club and the Coosa River Basin Initiative petition this Court for review of the agency order. They maintain the Bowen and Scherer permits are required to contain PSD requirements and corresponding compliance schedules with enforceable remedial measures. They argue the Administrator does not have discretion to refuse to object when the agency has already made administrative findings resulting in a violation notice and the filing of a complaint. The EPA, on the other hand, argues the Administrator offered a reasonable interpretation of
II. DISCUSSION
This case presents a question of first impression for this Circuit, namely, whether the EPA Administrator has discretion under
A. Standard of Review
The EPA’s decision cannot be set aside unless it is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.”
[W]e will not vacate an agency’s decision unless it “has relied on factors which Congress had not intended it to consider, entirely failed to consider an important aspect of the problem, offered an explanation for its decision that runs counter to the evidence before the agency, or is so implausible that it could not be ascribed to a difference in view or the product of agency expertise.”
Nat’l Ass’n of Home Builders v. Defenders of Wildlife,
— U.S.—,
B. Degree of Deference
To determine if the EPA’s actions were arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law, we begin by reviewing the statutory provision of Title V which controlled the Administrator’s review of the Bowen and Scherer petitions:
Agency interpretations of statutes they have responsibility for administering are reviewed using a two-step analysis.
Chevron, U.S.A., Inc. v. Natural Res. Def. Council, Inc.,
The statutory language at the heart of this dispute contains both a discretionary and a nondiscretionary component: “The Administrator
shall
issue an objection ... if the petitioner
demonstrates
to the Administrator that the permit is not in compliance with the requirements of [the Clean Air Act] .... ”
Easier cases than the one presented here have involved situations where the EPA concedes a permit is defective, yet still withholds its objection — an indefensible position under existing law.
See Sierra Club v. Johnson,
At the same time, it is undeniable
Reinforcing our conclusion is the basic principle that when it comes to interpreting provisions of the Clean Air Act, “[c]on-text counts.”
Envtl. Defense v. Duke Energy Corp.,
We do not attempt today to define precisely the burdens facing a petitioner under
C. Petitioners’ Attempt to Demonstrate Permit Noncompliance
The Petitioners attempted to demonstrate the Georgia Power permits did not comply with PSD requirements by reminding the Administrator of the agency’s earlier PSD-related actions. The Administrator took note of the agency’s violation notice and civil enforcement action, but concluded these were merely early steps in the process of determining whether a violation had, in fact, occurred. Thus, he concluded Petitioners’ evidence alone was not sufficient to satisfy their burden of demonstrating the permits were out of compliance with the Act (ie., that PSD requirements apply to the Bowen and Scherer plants and therefore should have been included in the plant’s operating permits). Whether the Administrator’s position is reasonable depends on the legal significance of a violation notice and the initiation of an enforcement action.
The EPA has broad authority to issue violation notices; it may do so, “[w]henever, on the basis of any information available to the Administrator, the Administrator finds that any person has violated or is in violation of any requirement or prohibition of an applicable implementation plan or permit .... ”
Although
Similarly, the initiation of a civil enforcement action against Georgia Power did not resolve the applicability of PSD limits to Georgia Power’s permits. The Act provides that thirty days after the EPA has issued a violation notice it may then “bring a civil action” to force compliance.
The Petitioners rely heavily on the Second Circuit’s
New York Public Interest Research Group v. Johnson,
The NYPIRG v. Johnson court appears to have been persuaded by four main arguments: (1) before a violation notice can be issued an administrative finding must be made that the Act has been violated; (2) while “ordinarily we may understand a complaint as a series of allegations whose truth is ascertained over the course of a proceeding,” an agency-issued complaint is more significant due to the procedures an agency undertakes before initiating an enforcement action; (3) the agency is in a “privileged position to monitor and regulate” and thus could not reasonably claim to be uncertain as to what emission levels apply; and (4) private citizens should not be required to duplicate an agency’s fact finding when a violation notice and complaint have been issued. See id. at 181-82.
None of these arguments persuade us here. Petitioners have urged us to give special significance to the Administrator’s
findings
that lead to the violation notice and complaint; yet, peering beyond the statute’s use of the word “finds” reveals the only statutory prerequisite to leveling allegations of a violation is that they be based on “any information available.”
Finally,
NYPIRG v. Johnson
presents an interesting policy argument for avoiding the inefficiencies associated with burdening private citizens with the task of
In summary, we conclude the EPA has offered a reasonable interpretation of the statute that deserves deference: Title V operating permits are required to contain all applicable clean air requirements,
see
III. CONCLUSION
The EPA Administrator’s order is not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law; therefore, we deny the petition.
DENIED.
Notes
. The parties do not contest the summary of the procedural history of case No. 1:99-CV-2859-JEC as it appears in the EPA’s order, see In re Ga. Power Co., Order Denying Petition for Objection to Permit (Jan. 8, 2007) (EPA Order). We only rely on that order for the purpose of describing the events in that case, which are not dispositive to our decision.
. “Because the Clean Air Act sets forth no independent standard of review ... and because an EPA decision not to object to a Title V permit is a final agency decision, we apply the deferential standard of review set forth in the Administrative Procedure Act,
. In
Chevron,
the Supreme Court held a court must give effect to an agency's reasonable interpretation of an ambiguous statute.
. If the intent of Congress were not otherwise clear from the plain language of the text, "the conference report for the 1990 amendments settles it,”
Sierra Club v. Johnson,
This section sets out clearly the procedures required of EPA in reviewing permits. Simply put, the Administrator is required to object to permits that violate the Clean Air Act. This duty to object to such permits is a nondiscretionary duty. Therefore, in the event a petitioner demonstrates that a permit violates the Act, the Administrator must object to that permit.
136 Cong. Rec. S16,895, 16,944 (1990);
see also N.Y. Pub. Interest Research Group v. Whitman,
. Petitioners also label the EPA's position as arbitrary because they say it conflicts with a position the agency took when it objected to the lack of a compliance schedule in permits issued to the Gallatin Steel Company. See NYPIRG v. Johnson, 427 F.3d at 182. No one disputes that a compliance schedule would be required in the Georgia Power permits if PSD requirements apply to the Bowen and Scherer plants; the problem here is, unlike the situation in Gallatin Steel, the parties remain locked in a protracted dispute over the applicability of those requirements.