MORRISON C. ENGLAND, Jr., District Judge.
Plaintiffs Laborers' International Union of North America Local Union No. 783, Randal Sipes, Jr., and Russel Covington filed a citizen suit pursuant to section 304(a) of the federal Clean Air Act ("CAA"), 42 U.S.C. § 7604, which allows any person to bring a lawsuit in federal court against any person who violates an "emission standard or limitation."
Presently before the Court are four motions: (1) Plaintiffs' Motion for Partial Summary Judgment, ECF No. 75; (2) Defendants' Motion for Summary Judgment, ECF No. 82; (3) Defendants' Motion to Exclude, ECF No. 90; and (4) Defendants' Motion for Leave to File Surreply, ECF No. 100. For the reasons that follow, Defendants' Motion for Summary Judgment is GRANTED. However, Defendants' Motion for Leave to File Surreply is DENIED, and the Defendants' counsel is directed to pay a sanction of $2,500 for making a frivolous filing, continuing to use lengthy footnotes, and ignoring page limits despite the Court's prior warning. Furthermore, in light of the disposition of Defendants' Motion for Summary Judgment, Plaintiffs' Motion for Partial Summary Judgment and Defendants' Motion to Exclude are DENIED AS MOOT.
Plaintiffs' Complaint asserts eight causes of action against Defendants Mammoth Pacific, L.P., Ormat Technologies, Inc., and Ormat Nevada, Inc., the owners and operators of several geothermal plants located in the Great Basin Valleys Air Basin. Three of the plants—(1) Mammoth Pacific I ("MP-I"), which is made up of MP-I East and MP-I West; (2) Mammoth Pacific II ("MP-II"); and (3) Pacific Lighting Energy Systems Unit I ("PLES-I")—are operational. Another plant, M-1, is a proposed replacement plant for MP-I that has thus far only received local land use permits.
At the plants, Defendants use hot geothermal water pumped from deep underground to heat volatile organic compounds ("VOCs"), which in turn spin turbines to generate electricity. The facilities emit VOCs (in the form of fugitive emissions of either n-pentane or isobutene) through valves, flanges, seals, or other unsealed joints in facility equipment. VOCs combine with nitrogen oxides to form ozone in the atmosphere. Ozone is a criteria air pollutant regulated by the CAA, and thus VOCs are regulated as ozone precursors. According to the United States Environmental Protection Agency ("EPA"), breathing ground-level ozone can result in a number of negative health effects, including induction of respiratory symptoms, decrements in lung function, and inflammation of airways. Plaintiffs are individuals and an organization with members who live, work, and recreate in direct vicinity of the plants.
The Great Basin Unified Air Pollution Control District (the "Air District") is the state agency charged with developing air regulations for Mono, Inyo and Alpine Counties. The Air District has established rules and regulations to reduce the emission of ozone-forming pollutants. On August 20, 1979, the Air District promulgated Rules 209-A and 209-B. Rule 209-A prohibits the Air District from issuing an authority to construct ("ATC") permit for any new stationary source or modification
Plaintiffs' Complaint alleges that Defendants violated both Rules 209-A and 209-B. With respect to the existing plants, Plaintiffs allege that while originally separately permitted as four plants in the late 1980s, in 2010 Defendants applied for and obtained PTOs from the Air District that authorize combined emissions limits for MP-I East and MP-I West as a single source and for MP-II and PLES-I as a single source. Each single source was permitted to emit up to 500 pounds per day of fugitive VOC emissions— double the limit under Rule 209-A—without receiving ATC permits that required installing BACT and obtaining emissions offsets. Additionally, Plaintiffs allege that in 2013, the Air District issued ATC permits for a modification of MP-I without requiring Defendants to install BACT or obtain emissions offsets.
Plaintiffs' Complaint also alleges that Defendants have operated the three existing geothermal plants for over twenty years as a single stationary source without applying for the permits required by Rules 209-A and 209-B.
While Plaintiffs originally challenged the proposed M-1 facility's permitting and sought an injunction to halt construction, they then conceded that the Court does not have jurisdiction to consider these claims since the Air District has yet to issue permits to Defendants for this plant. ECF No. 21, at 8. Accordingly, the Court dismissed Plaintiffs' sixth and seventh causes of action, which pertain to the M-1 facility. ECF No. 27. The Court also dismissed Plaintiffs' first through fifth causes of action for failure to state a claim under Federal Rule of Civil Procedure ("Rule") 12(b)(6).
The first cause of action was premised on the 2013 modification of the MP-I plant, alleging that the modification should have triggered BACT requirements under Rule 209-A. However, the modification reduced the plant's emissions and therefore did not result in the "net increase in emissions of 250 or more pounds" required under Rule 209-A(B)(2) before a BACT requirement is imposed. The second, third, fourth, and fifth causes of actions were based on the 2010 combining of emissions limits for MP-I East and MP-I West as a single source and for MP-II and PLES-I as a single source. Because combining the limits amounted to nothing more than an administrative change, no modification occurred that would have triggered BACT requirements. Furthermore, even if combining emission limits constituted a modification under Rule 209-A, it could not possibly have caused a "net increase in emissions of 250 or more pounds" and again Rule 209-A would not have imposed a BACT requirement.
All that remains pending before the Court is Plaintiffs' Eighth Cause of action, which alleges all four plants should be considered a single source. Because the plants were all permitted individually when constructed, Plaintiffs contend that Defendants are in violation of Rule 209-A and should have been required to install a BACT.
The Federal Rules of Civil Procedure provide for summary judgment when "the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a);
Rule 56 also allows a court to grant summary judgment on part of a claim or defense, known as partial summary judgment.
In a summary judgment motion, the moving party always bears the initial responsibility of informing the court of the basis for the motion and identifying the portions in the record "which it believes demonstrate the absence of a genuine issue of material fact."
In attempting to establish the existence or non-existence of a genuine factual dispute, the party must support its assertion by "citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits[,] or declarations . . . or other materials; or showing that the materials cited do not establish the absence or presence of a genuine dispute, or that an adverse party cannot produce admissible evidence to support the fact." Fed. R. Civ. P. 56(c)(1). The opposing party must demonstrate that the fact in contention is material, i.e., a fact that might affect the outcome of the suit under the governing law.
In resolving a summary judgment motion, the evidence of the opposing party is to be believed, and all reasonable inferences that may be drawn from the facts placed before the court must be drawn in favor of the opposing party.
Defendants move for summary judgment on the basis that Plaintiffs' claims are time-barred under the statute of limitations. Defs.' MSJ, at 7. They argue that Plaintiffs have only alleged a violation of Rule 209-A, and any violation of that rule could only have occurred when the units were originally constructed.
As indicated, this Court's May 11, 2015, Order dismissed Plaintiffs' first through seventh causes of action, leaving only the eighth cause of action for adjudication. Mem. & Order, ECF No. 27, at 21. The dismissed causes of action alleged various violations of Rule 209-A (first, second, fourth, and sixth) as well as Rule 209-B (third, fifth, and seventh). The sixth and seventh causes of action were dismissed as unripe because they were based on permits for a new plant that had not yet been issued.
Though the header of Plaintiffs' eighth cause of action is explicitly limited to Rule 209-A ("Clean Air Act, 42 U.S.C. § 7604(a) — Violation of Rule 209-A"), Plaintiffs argue that the cause of action also includes violations of Rule 209-B because it incorporates the preceding paragraphs by reference. Pls.' Opp'n to Defs.' MSJ, at 4-6. This argument makes little sense. It is true that the Complaint's "Introduction," "Jurisdiction and Prerequisites to Filing," "Parties," and "Factual Allegations" sections contain references to Rule 209-B and allegations that Defendants have violated Rule 209-B. However, the eighth cause of action contains no reference to Rule 209-B and is in fact titled "Violation of Rule 209-A." Accordingly, Plaintiffs cannot seriously contend that their eighth cause of action includes any allegations based on Rule 209-B, regardless of the incorporation of the Complaint's prior paragraphs.
In determining whether failure to obtain a valid preconstruction permit constitutes a singular event or an ongoing violation, "the court must engage in a close examination of the relevant `permitting' scheme."
In arguing that Defendants' alleged violations are ongoing, Plaintiffs rely heavily on the Eleventh Circuit's decision in
This Court finds the Eleventh Circuit's analysis instructive, but comes to the opposite conclusion of Plaintiffs. The Eleventh Circuit did not base its decision on whether the obligation to
The California SIP at issue in the instant case does not place an ongoing obligation to
The Eleventh Circuit also distinguished cases treating preconstruction permit violations as continuing violations on the basis that they considered "integrated construction and operating permits."
This distinction between preconstruction and operation permits further supports finding that Rule 209-A violations constitute a singular event. While a PTO issued under Rule 209-B requires obtaining and complying with an ATC, PTOs are separate permits such that obtaining a legally invalid ATC does not necessarily invalidate a PTO. A PTO obtained under Rule 209-B requires only that the owner or operator of a source obtain an ATC and comply with that ATC. Defendants have done exactly that. Furthermore, even if an invalid ATC rendered a resulting PTO also invalid, Plaintiffs have failed to allege a violation under Rule 209-B, as described above, and therefore cannot obtain relief based on such a theory.
In 2009, new ATCs and PTOs were issued, combining emissions limits between MP-I East and MP-I West, and between MP-II and PLES-I. In 2014, new ATCs and PTOs were issued for a "major equipment overhaul." Plaintiffs argue that in each case, the Mammoth Complex should have been treated as a single source. Pls.' Opp'n to Defs.' MSJ, at 12. Thus, they continue, the ATCs issued in 2009 and 2014 were unlawful.
However, even if the Court found Plaintiffs' arguments persuasive, invalidating the 2009 and 2014 ATCs would not provide the relief Plaintiffs seek. Defendants would simply be forced to apply for an ATC that combined the emissions limits of all four units. The Court has already ruled that combining the emissions limits of MP-I East and MP-I West and of MP-II and PLES-I was not a modification that would trigger imposing a BACT on the combined units. Mem. & Order, at 19. Similarly, combining the emissions limits of all four would not constitute a modification, and thus any new ATC that "remedied" the errors of the 2009 and 2014 ATCs would not achieve the relief sought.
BACTs can only be imposed when a new stationary source or a modification to a stationary source results in a net increase in emissions of 250 or more pounds per day. Reissuing the permits to treat the units as a single source would not constitute a modification or result in any increase in emissions. Nor would invalidation of the 2009 and 2014 ATCs warrant creating a legal fiction that the Mammoth Complex is a new stationary source, as Plaintiffs urge.
28 U.S.C. § 2462 creates a five-year statute of limitations for "action[s], suit[s] or proceeding[s] for the enforcement of any civil fine, penalty, or forfeiture, pecuniary or otherwise." Here, Plaintiffs seek injunctive relief. Defendants maintain the five-year statute of limitations nonetheless applies because of the concurrent remedy doctrine, which bars injunctive relief if legal relief is time-barred.
Ninth Circuit has not ruled on the application of 28 U.S.C. § 2462 to CAA citizen suits. However, in
Furthermore, other circuits, such as the Eleventh Circuit, have found Plaintiffs' reasoning unpersuasive in the CAA context: "We are not aware of other authority for this novel distinction [between the purposes of relief] and are not persuaded that it is a meaningful one. We conclude that the civil penalties and equitable relief sought in this case are concurrent because `an action at law or equity could be brought on the same facts.'"
Accordingly, 28 U.S.C. § 2462's five-year statute of limitations applies to Plaintiffs' claims for injunctive relief. Because any of the alleged violations of the CAA could only have occurred over twenty years ago when the Mammoth Complex units were built, Plaintiffs' claim is time-barred. Defendants' Motion for Summary Judgment is therefore GRANTED, and Plaintiffs' Motion for Partial Summary Judgment is DENIED as moot.
Both sides filed their own Motions for Summary Judgment, oppositions to each other's motions and replies to those oppositions, making very similar arguments whether they were arguing in favor of their own motion or against their opponents' motion.
More specifically, Defendants contend that a surreply was necessary because Plaintiffs submitted new evidence. ECF No. 103, at 1. However, they then contradict themselves and admit that the evidence addressed in the Surreply was not actually new, "since [it is] the same excerpts Plaintiffs relied upon in their opening brief."
Moreover, the Court previously admonished Defendants against using lengthy footnotes and otherwise attempting to avoid page limit requirements set by the Court. Mem. & Order, ECF No. 27, at 22 n.12. Nevertheless, Defendants' moving papers continued to follow the same practices, ignored page limits set out by the Court, and moved for leave to file a frivolous surreply. For these reasons, Defendants' counsel is hereby sanctioned in the amount of $1,500.
For the reasons above, Defendants' Motion for Summary Judgment, ECF No. 82, is GRANTED. However, their Motion for Leave to File Surreply, ECF No. 100, is DENIED, and the Court imposes sanctions against Defendants' counsel in the amount of $1,500. Said sanctions shall be paid to the Clerk of this Court within ten (10) days, and Defendants are further ordered to file a notice with this Court within the same ten (10)-day period that the sanctions have in fact been remitted.
Finally, in light of the resolution of Defendants' Motion for Summary Judgment, Plaintiffs' Motion for Summary Judgment, ECF No. 75, and Defendants' Motion to Exclude, ECF No. 90, are DENIED as moot.
IT IS SO ORDERED.