Justia Environmental Law Opinion Summaries

Six small refineries1 (“petitioners”) challenge the EPA’s decision to deny their requested exemptions from their obligations under the Renewable Fuel Standard (“RFS”) program of the Clean Air Act (“CAA”). The EPA denied petitioners’ years-old petitions using a novel CAA interpretation and economic theory that the agency published in December 2021.The Fifth Circuit granted the petitions for review, vacated the challenged adjudications, denied a change of venue, and remanded. The court concluded that the denial was (1) impermissibly retroactive; (2) contrary to law; and (3) counter to the record evidence. The court noted that the agency supports its assertion by dreaming up a hypothetical contract—filled with unsubstantiated speculation about terms such RIN clip sale prices and broker service fees—that TSAR might be able to negotiate. But EPA never explains why it believes small refineries can get contract terms like those. Unsubstantiated agency speculation does not overcome petitioners’ proven inability to purchase market-rate RINs ratably. The court explained that as a general matter, courts cannot compel agencies to act. Petitioners do not allege that the CAA expressly requires EPA to issue such guidance. An agency’s control over its timetables is entitled to considerable deference.That EPA has yet to make good on its promise to provide further guidance does not render the agency’s current (lack of) guidance arbitrary and capricious. View "Placid Refining Company, L.L.C. v. EPA" on Justia Law

This case involves alleged violations of the Clean Water Act (CWA). Plaintiff Cottonwood Environmental Law Center (Cottonwood) filed suit against Defendants Big Sky County Water & Sewer District No. 363 (the District) and Boyne USA, Inc. (Boyne) for their alleged discharge of treated wastewater into the West Fork of the Gallatin River (the West Fork) without a National Pollution Discharge Elimination System (NPDES) permit. The district court ruled that Cottonwood could not advance a direct-discharge theory of CWA liability against the District at trial. The district court also dismissed Cottonwood’s claim against Boyne for lack of proper notice.   The Ninth Circuit affirmed in part and reversed in part the district court’s judgment. Affirming in part, the panel held that the district court properly ruled, in orders denying summary judgment, that Cottonwood could not advance a direct-discharge theory of liability against the District at trial. The panel held that it had jurisdiction to review the district court’s orders denying summary judgment to Cottonwood because, in those orders, the district court rejected Cottonwood’s direct-discharge theory as a matter of law. The panel affirmed the district court’s holding that the District could not be liable on a direct-discharge theory because an underdrain pipe below but not connected to the District’s holding ponds did not transfer pollutants between meaningfully distinct water bodies and thus was not a “point source” of pollution. Reversing the district court’s dismissal of Cottonwood’s Clean Water Act the panel held that Cottonwood’s letter to Boyne provided sufficient notice of Cottonwood’s indirect-discharge theory of liability. View "COTTONWOOD ENVIRONMENTAL LAW CENTER, ET AL V. RON EDWARDS, ET AL" on Justia Law

For several years, Defendant, Shannon Poe, engaged in instream suction dredge mining in Idaho’s South Fork Clearwater River (the South Fork) without a National Pollutant Discharge Eliminating System (NPDES) permit. Plaintiff Idaho Conservation League (ICL) sued Poe, arguing that he violated the CWA each time he operated a suction dredge on the South Fork without an NPDES permit. Poe countered that (1) his suction dredge mining did not add pollutants to the South Fork and therefore did not require an NPDES permit, and (2) even if his suction dredge mining did add pollutants, those pollutants are “dredged” or “fill” material regulated exclusively pursuant to Section 404, not Section 402, of the CWA. The district court granted summary judgment to ICL. Poe appealed the judgment as to liability.   The Ninth Circuit affirmed. The panel held that to establish a violation of the Clean Water Act’s NPDES requirements, also referred to as Section 402 permitting, a plaintiff must prove that the defendant (1) discharged, i.e., added (2) a pollutant (3) to navigable waters (4) from (5) a point source. As to the first element, the panel held that Poe’s suction dredge mining “added” a pollutant to the South Fork. The panel followed Rybachek v. EPA, 904 F.2d 1276 (9th Cir. 1990), which upheld Environmental Protection Agency regulations interpreting the Clean Water Act. The panel further held that the processed material discharged from Poe’s suction dredge mining was a pollutant, not dredged or fill material, and therefore required an NPDES permit under Section 402 of the Clean Water Act rather than a permit from the Army Corps of Engineers under Section 404. View "IDAHO CONSERVATION LEAGUE V. SHANNON POE" on Justia Law

The Texas Commission on Environmental Quality (“TCEQ”) declined to impose certain emissions limits on a new natural gas facility that it had recently imposed on another such facility. In doing so, it contravened its policy of adhering to previously imposed emissions limits, but it did not adequately explain why.   The Fifth Circuit vacated the Commission’s order granting the emissions permit at issue and remanded. The court explained that in this case, the Commission rejected the ALJs’ proposed CO and NOX emissions limits because they were “not demonstrated to be achievable or proven to be operational, obtainable, and capable.” Even though those limits had been approved for Rio Grande LNG, there was no “operational data to prove” they were achievable. Here, the record is clear—the limits imposed on Port Arthur LNG are not “at least equivalent” to those imposed on Rio Grande LNG. Therefore, the Commission’s own policy directed it to consider Rio Grande LNG’s limits, even if Rio Grande LNG was not currently in operation. It therefore acted arbitrarily and capriciously under Texas law. View "Port Arthur Cmty Actn Netwk v. TCEQ" on Justia Law

The Inflation Reduction Act (“IRA”) requires the federal government to hold a specific oil-and-gas lease sale (“Lease Sale 261”), covering territory in the northwest and north-central Gulf of Mexico, by September 30, 2023, in accordance with a particular administrative record of decision. A month before that deadline, however, the bureau in the Department of the Interior charged with conducting the sale—the Bureau of Ocean Energy and Management (“BOEM”)—abruptly changed the sale terms, removing six million acres from the lease and imposing new limits on vessels that pass through the to-be-leased area. Plaintiffs—the State of Louisiana, the American Petroleum Institute, Chevron USA, Inc., and Shell Offshore, Inc.—sued BOEM and other federal entities and officials, arguing that BOEM’s implementation of the new terms was arbitrary and capricious in violation of the Administrative Procedure Act (“APA”). The merits panel stayed the preliminary injunction pending its decision on the merits. On appeal, BOEM does not challenge the injunction, instead asking only for enough time to comply with it. Only the four environmental organizations that intervened below (“Intervenors”) challenge the preliminary injunction on appeal.   The Fifth Circuit dismissed the intervenors’ appeal and amended the preliminary injunction to require that the lease sale at issue be conducted within thirty-seven days. The court explained that here, the causal chain of events necessary to support Intervenors’ theory of standing is so attenuated that the alleged harm is not “certainly impending.” Namely, for the complained-of conduct to result in the alleged injury, the following chain of events needs to occur. View "State of Louisiana v. Haaland" on Justia Law

A dispute arose under the Sustainable Groundwater Management Act (SGMA; Water Code 10720) regarding which local groundwater sustainability agency is authorized to manage the groundwater in a portion of the 180/400 Foot Aquifer Subbasin of the Salinas Valley Groundwater Basin called the CEMEX area. The City of Marina challenged the groundwater sustainability plan of the Salinas Valley Basin Groundwater Sustainability Agency (SVBGSA) as adopted by Monterey County and posted by the Department of Water Resources as the operative groundwater sustainability plan for most of the Subbasin. The County sought a declaration that the formation of the City’s groundwater sustainability agency was void.The court of appeal affirmed the trial court, agreeing with the Department that under section 10724 the County could step in as the presumptive groundwater management agency for the CEMEX area when the City and SVBGSA failed to reach an agreement to allow prompt designation of a groundwater sustainability agency; the Department properly posted the County’s notice of the formation of a groundwater sustainability agency for the CEMEX area on its website and properly identified the County’s groundwater sustainability agency as the exclusive groundwater sustainability agency for the area. View "City of Marina v. County of Monterey" on Justia Law

The California Construction and Industrial Materials Association and the Ventura County Coalition of Labor, Agriculture and Business (Project Opponents) separately petitioned for writs of mandate to require the County of Ventura (County) to vacate an ordinance (the Project) creating overlay zones to protect wildlife migration corridors in rural portions of the County. The Project Opponents claim the Project violates the Surface Mining and Reclamation Act of 1975 (SMARA) and the California Environmental Quality Act (CEQA). The trial court denied the petitions.   The Second Appellate District affirmed. The court explained that the Project Opponents claim that the Project’s location distinguishes it from other projects in its exempt class. They point out that the Project overlays 10,000 acres of classified mineral resources. However they cite no evidence that other projects in Classes 7 and 8 do not overlay similar resources. Neither mining nor ordinances that attempt to preserve wildlife are unique to the County. The Project Opponents compare the Project to the Class 33 exemption. That exemption is for projects not to exceed five acres to assure the maintenance, restoration, enhancement, or protection of habitat for fish, plants, or wildlife. But the County is not relying on the Class 33 exemption. It is relying on the Classes 7 and 8 exemptions. They are separate exemptions and not comparable. View "Cal. Construction & Industrial Mat. Assn. v. County of Ventura" on Justia Law

In 2015, the International Agency for Research on Cancer (IARC) identified glyphosate as “probably carcinogenic” to humans. That conclusion is not shared by a consensus of the scientific community. As a result, Certain businesses whose products expose consumers to glyphosate were required to provide a Prop 65 warning that glyphosate is a carcinogen. Plaintiffs, a coalition of agricultural producers and business entities, asserted that Prop 65’s warning violated their First Amendment rights to be free from compelled speech. The district court granted summary judgment in favor of Plaintiffs.   The Ninth Circuit affirmed. The panel concluded that the government’s proposed Prop 65 warnings as applied to glyphosate were not purely factual and uncontroversial and thus were subject to intermediate scrutiny. The proposed warning that “glyphosate is known to cause cancer” was not purely factual because the word “known” carries a complex legal meaning that consumers would not glean from the warning without context, and thus the word was misleading. As to the most recent warning proposed by the California Office of Environmental Health Hazard Assessment (OEHHA), the panel held that the warning still conveys the overall message that glyphosate is unsafe, which is, at best, disputed. The panel held that because none of the proposed glyphosate Prop 65 warnings were narrowly drawn to advancing California’s interest in protecting consumers from carcinogens, and California had less burdensome ways to convey its message than to compel Plaintiffs to convey it for them, the Prop 65 warning requirement as applied to glyphosate was unconstitutional. View "NAWG, ET AL V. ROB BONTA, ET AL" on Justia Law

Facing a tight deadline from the Ninth Circuit, the Environmental Protection Agency banned the use of chlorpyrifos on food crops. Two environmental groups petitioned the EPA in 2007 to have all tolerances revoked. In denying the petition, the EPA concluded that their objections were “not supported by valid, complete, and reliable evidence.”   The Eighth Circuit granted the petitions, finding that the EPA’s decision was arbitrary and capricious. The court explained that in this case, the EPA believed it lacked discretion or at least acted that way. The Ninth Circuit’s opinion had already narrowed its options down to two: revoke the tolerances or modify them. With little time to act, the agency ruled out the second option, leaving only revocation by default. In doing so, however, it misread the statute and misunderstood the “scope of its discretion”. Therefore, the court set aside the decision as arbitrary and capricious. Further, the court explained that a partial ban was a real alternative for the EPA. It could have canceled some registrations and retained others that satisfied the statutory safety margin. View "RRVSG Assoc. v. Michael Regan" on Justia Law

The Supreme Court affirmed the judgment of the court of appeals in this dispute arising out of environmental-cleanup and remediation work at two Superfund sites in Bronson, Michigan, holding that Restatement (Second) 193 does not govern the choice-of-law analysis for bad faith claims.Scott Fetzer Company filed this action asserting a breach of contract claim against certain insurance companies, including Travelers Casualty and Surety Company, alleging breaches of certain insurance contracts. Fetzer also asserted a tort claim against each company, arguing that they had acted in bad faith when handling his claims. As to Travelers, an administrative judge concluded that Ohio law applied to a discovery dispute concerning Scott Fetzer's bad faith claim. The court of appeals affirmed, determining that Ohio law governed the bad-faith discovery dispute because the cause of action was a tort. In affirming, the court applied the choice-of-law rules set forth in section 145 of the Restatement. Travelers appealed, arguing that section 193 governs the choice-of-law analysis for bad faith claims because they arise out of insurance contracts. The Supreme Court affirmed, holding that the court of appeals correctly ruled that the choice-of-law analysis applicable to a bad-faith claim as provided by section 145. View "Scott Fetzer Co. v. American Home Assurance Co." on Justia Law