SARAH S. VANCE, District Judge.
Defendant Lisa Jackson, administrator of the Environmental Protection Agency (EPA), moves to dismiss Zen-Noh's claim for lack of subject matter jurisdiction. For the following reasons, the EPA's motion is GRANTED.
The Louisiana Department of Environmental Quality ("LDEQ") issued permits for the Nucor facility in Convent, Louisiana to manufacture pig iron and direct reduced iron. On June 25, 2010, Zen-Noh petitioned the EPA to object to the pig iron process permit. LDEQ modified both permits for the Nucor facility before the EPA objected, but Zen-Noh again petitioned the EPA to object to the new permits. The EPA granted Zen-Noh's petition on March 23, 2012, and objected to the permits. On June 21, 2012, the LDEQ responded to the EPA's objection, but has not yet revised its permits. Nor has the EPA terminated, modified, or revoked the permits.
Zen-Noh brought this suit against the EPA charging that it has failed to perform nondiscretionary duties under 42 U.S.C. § 7661d(b)(2) and (c) by failing to terminate, modify, or revoke Nucor's permits. Zen-Noh sues under section 304 of the CAA, which allows any person to bring an
The Court must first determine whether the EPA's motion to dismiss is governed by Rule 12(b)(1) or Rule 12(b)(6). Federal Rule of Civil Procedure 12(b)(1) permits dismissal for lack of jurisdiction over the subject matter of the claim. In ruling on a Rule 12(b)(1) motion to dismiss, the court may rely on (1) the complaint alone, presuming the allegations to be true, (2) the complaint supplemented by undisputed facts, or (3) the complaint supplemented by undisputed facts and by the court's resolution of disputed facts. Den Norske Stats Oljeselskap As v. HeereMac Vof, 241 F.3d 420, 424 (5th Cir.2001); see also Barrera-Montenegro v. United States, 74 F.3d 657, 659 (5th Cir.1996). The party asserting jurisdiction bears the burden of establishing that the district court possesses jurisdiction. Ramming v. United States, 281 F.3d 158, 161 (5th Cir.2001). A court's dismissal of a case for lack of subject matter jurisdiction is not a decision on the merits, and the dismissal does not ordinarily prevent the plaintiff from pursuing the claim in another forum. See Hitt v. City of Pasadena, 561 F.2d 606, 608 (5th Cir.1977).
When a defendant attacks the complaint because it fails to state a legally cognizable claim, Rule 12(b)(6) provides the appropriate challenge. To survive a Rule 12(b)(6) motion to dismiss, the plaintiff must plead enough facts "to state a claim to relief that is plausible on its face." Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1960, 173 L.Ed.2d 868 (2009)(quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). A claim is facially plausible when the plaintiff pleads facts that allow the court to "draw the reasonable inference that the defendant is liable for the misconduct alleged." Id. at 1949. A court must accept all well-pleaded facts as true and must draw all reasonable inferences in favor of the plaintiff. Lormand v. U.S. Unwired, Inc., 565 F.3d 228, 239 (5th Cir.2009); Baker v. Putnal, 75 F.3d 190, 196 (5th Cir.1996). But the Court is not bound to accept as true legal conclusions couched as factual allegations. Iqbal, 129 S.Ct. at 1949.
Suits against officials of the United States in their official capacities, including the EPA Administrator, are barred if there is no waiver of sovereign immunity. Hawaii v. Gordon, 373 U.S. 57, 58, 83 S.Ct. 1052, 10 L.Ed.2d 191 (1963). Section 7604(a)(2) waives sovereign immunity for claims "against the Administrator where there is alleged a failure of the Administrator to perform any act or duty under this chapter which is not discretionary with the Administrator." 42 U.S.C. § 7604(a)(2). The EPA argues that because § 7661d(b)(2) and (c) are discretionary duties, Zen-Noh's claim falls outside of the waiver of sovereign immunity outlined in § 7604(a)(2). Accordingly, it argues that this Court lacks subject matter jurisdiction. Zen-Noh argues that the EPA's motion goes to the merits of its claim because:
Williamson v. Tucker, 645 F.2d 404, 415 (5th Cir.1981); see also Bell v. Hood, 327 U.S. 678, 682, 66 S.Ct. 773, 90 L.Ed. 939 (1946).
The Fifth Circuit held that "[a] district court has jurisdiction under [section 7604(a)(2)] only if the plaintiff has alleged a duty which is not discretionary." See Seabrook v. Costle, 659 F.2d 1371, 1372-75 (5th Cir. Unit A 1981); see also Clean-COALition v. TXU Power, 536 F.3d 469, 473-74 (5th Cir.2008) (affirming dismissal for lack of subject matter jurisdiction for claims brought under sections 7604(a)(1) and 7604(a)(3) of the CAA). Additionally, its decisions interpreting challenges to nondiscretionary duty claims under the APA analyze them under Rule 12(b)(1). See Watson v. Chief Admin. Law Judge, ___ Fed.Appx. ___, ___, No. 10-40411, 2010 WL 4033991, at *2 (5th Cir. Oct. 15, 2010)(per curiam) ("Under the APA, there is no judicial review of agency action when that `agency action is committed to agency discretion by law.'" (quoting 5 U.S.C. § 701(a)(2))). Accordingly, this Court will analyze the EPA's motion under Rule 12(b)(1).
This case arises under the Clean Air Act (CAA), 42 U.S.C. §§ 7401-7671q (2006). The CAA aims to "protect and enhance the quality of the Nation's air resources so as to promote the public health and welfare and the productive capacity of its population." Id. § 7401(b)(1). In pursuit of this goal, the CAA provides a role for the EPA, the states, and public citizens themselves. The following is a brief overview of the respective roles of these three players.
The EPA sets national ambient air quality standards (NAAQS) for certain air pollutants. Id. § 7409(a)(1). The states submit plans to the EPA for achieving and
Further rules, known as the Prevention of Significant Deterioration Program (PSD), attach to areas designated as attainment or unclassifiable. The PSD requires facilities that emit air pollution in excess of certain thresholds to obtain a permit prescribing its emission limitations before it begins constructing or modifying a major stationary emission source. Id. §§ 7475(a), 7479(1).
As to facility operations, Title V of the CAA implements a nationwide system of operating permits. Title V makes it unlawful to operate major sources of air pollution "except in compliance with a permit issued by a permitting authority." Id. § 7661a(a); see also Romoland Sch. Dist. v. Inland Empire Energy Ctr., LLC, 548 F.3d 738, 741-42 (9th Cir.2008). A permitting authority is the "air pollution control agency authorized by [the EPA] to carry out a permit program" in a state or local jurisdiction. 42 U.S.C. § 7661(4); Sierra Club v. EPA, 536 F.3d 673, 674 n. 1 (D.C.Cir.2008). The relevant permitting authority for this case is the Louisiana Department of Environmental Quality ("LDEQ").
While the state and local permitting authorities issue permits, the EPA has the opportunity to review proposed permits and object to them if "any permit contains provisions that are ... not in compliance" with law. 42 U.S.C. § 7661d(a)(1), (b)(1). If the EPA does not object, any person may petition the Administrator to object. Id. § 7661d(b)(2). The Administrator must object to the permit if the petitioner "demonstrates to the Administrator that the permit is not in compliance with the [CAA's] requirements." Id.
There are two settings in which the EPA objection process may arise. The first is if the EPA objects before the permitting authority issues a permit. In this setting, the permitting authority may not issue the permit before revising it to meet the objections. Id. § 7661d(b)(3). Section 505(c) provides that the permitting authority has 90 days to submit the revised permit. Id. § 7661d(c). If it does not, the EPA "shall issue or deny the permit in accordance with [Title V]." Id.
The second setting, and the one at issue here, involves cases in which the permitting authority has already issued a permit before it receives an objection from the EPA. In this setting, section 7661d(b)(3) provides:
42 U.S.C. 7661d(b)(3). Next, section 7661(c) provides:
42 U.S.C. 7661d(c).
Further, EPA regulations supplement these statutes and provide that if a permit has been issued before an EPA objection, the permitting authority has 90 days to resolve the objection. 40 C.F.R. § 70.7(g)(4). If the permitting authority fails to resolve the objection, the Administrator "will terminate, modify, or revoke and reissue the permit" after providing 30 days' notice to the permittee and providing the permittee an opportunity to comment on the Administrator's proposed action "and an opportunity for a hearing." Id. § 70.7(g)(5).
The merits of this motion turn entirely on whether the EPA's duties under sections 7661d(b)(2), 7661d(b)(3), and 7661d(c) are nondiscretionary duties. Here, LDEQ issued the permits before the EPA's objection, and Zen-Noh argues that these provisions impose a nondiscretionary duty on the EPA to modify, terminate, or revoke the permit. This Court determines that the duties at issue are discretionary for two reasons: (1) to be nondiscretionary the statute must provide an explicit deadline and (2) the regulatory framework provides the EPA discretion over when it acts. See discussion infra Parts IV.1-2.
The statutory scheme of the CAA provides two distinct avenues for a citizen to compel agency action. The first is when the EPA has failed to fulfil a nondiscretionary duty. As explained below, nondiscretionary duties are statutory obligations with an explicit deadline for the EPA to act. The second avenue is to compel agency action unreasonably delayed. Unreasonable delay claims concern statutory obligations that give the EPA discretion over when it will act. The EPA's duties at issue fall into the second category of statutory obligations without an explicit deadline. These conclusions follow from a reading of the CAA's statutory and regulatory scheme.
Section 7604 recognizes a cause of action for an agency's failure to perform a nondiscretionary duty, 42 U.S.C. § 7604(a)(2), and a cause of action to compel agency action unreasonably delayed. Id. § 7604(a). These are distinct causes of action: a claim alleging a failure to perform a nondiscretionary duty requires a plaintiff to give 60 days' notice, while a claim to compel agency action unreasonable delayed requires a plaintiff to give 180 days' notice. Id. § 7604(a), (b)(2). Further, unreasonable delay claims have their own venue requirement as they must be filed in a district court within the circuit in which "such action would be reviewable under section 7607(b)." Id. § 7604(a).
Courts have developed a bright-line test to distinguish the two claims:
Am. Lung. Ass'n v. Reilly, 962 F.2d 258, 263 (2d Cir.1992) (citing Sierra Club v. Thomas, 828 F.2d 783, 791 (D.C.Cir.1987)). In Sierra Club, the Court held that: "In order to impose a clear-cut nondiscretionary duty, we believe that a duty of timeliness must `categorically mandat[e]' that all specified action be taken by a date-certain deadline." Sierra Club, 828 F.2d at 791 (citing NRDC v. Train, 510 F.2d 692, 711 (D.C.Cir.1974)). Sierra Club sets out a bright-line rule that has been echoed by other circuit courts interpreting the CAA. See, e.g., Maine v. Thomas, 874 F.2d 883, 888 (1st Cir.1989) (holding that for a duty to be nondiscretionary "the appropriate check is to ask when the duty must be fulfilled"); NRDC v. Thomas, 885 F.2d 1067, 1075 (2d Cir.1989) (holding that a provision under the CAA requiring the Administrator to act "from time to time" is discretionary because of the absence of an explicitly listed deadline); see also Mountain States Legal Found. v. Costle, 630 F.2d 754, 766 (10th Cir.1980) ("Congress thus restricted citizens's suits to actions seeking to enforce specific non-discretionary clear-cut requirements of the Clean Air Act.") (citing Anaconda Co. v. Ruckelshaus, 482 F.2d 1301 (10th Cir.1973)).
The Fifth Circuit has not affirmatively adopted the Sierra Club rule, but in Seabrook, a case predating Sierra Club, it expressed the need for clear statutory language before finding a nondiscretionary duty. Seabrook interpreted section 113 of the CAA which provided that "[w]henever, on the basis of information available to him, the Administrator finds that violations... are so widespread ... he shall notify the state." 42 U.S.C. § 7413. The Court held that this language did not impose a nondiscretionary duty on the EPA to make such a finding:
Seabrook, 659 F.2d at 1374 (emphasis added); But see Manatee Cnty. v. Train, 583 F.2d 179, 183-184 (5th Cir.1978) (predating Seabrook and analyzing the Clean Water Act). As explained below, Seabrook supports the EPA's position that a bright-line rule is required for a statute to be nondiscretionary.
Further, Zen-Noh's argument that Congress's use of "shall" in the statute renders it nondiscretionary fails to preserve the distinction between nondiscretionary duty suits and unreasonable delay suits. First, to invoke either the nondiscretionary duty cause of action or the unreasonable delay cause of action, the agency action must be mandatory. See Norton v. S. Utah Wilderness Alliance, 542 U.S. 55, 64 n. 1, 124 S.Ct. 2373, 159 L.Ed.2d 137 (2004) ("[A] delay cannot be unreasonable with respect to action that is not required."); Ctr. for Biological Diversity v. EPA, 794 F.Supp.2d 151, 156-57 (D.D.C.2011) ("[A]n unreasonable-delay claim requires that the agency has a duty to act in the first place."). Accordingly, if a mandatory duty is all that is required to invoke section 7604(a)(2), there would be no substantive difference between nondiscretionary duty actions and unreasonable delay actions.
Zen-Noh has not cited to any authority compelling another conclusion.
Two district court cases have directly addressed this issue and have come to opposite conclusions. Compare Wild-Earth, 885 F.Supp.2d at 1116-18 (holding that the Administrator's duties are discretionary for the purpose of section 7604(a)(2)), with Johnson, 500 F.Supp.2d at 941 (holding that the Administrator's duties are nondiscretionary for the purpose of section 7604(a)(2)).
The EPA's regulations are consistent with its interpretation that the statutes at issue provide it discretion over when to act. When the permitting authority issues a permit before an EPA objection, EPA statutes and regulations provide the permitting authority with 90 days to resolve the objection. 40 C.F.R. § 70.7(g)(4). If the permitting authority fails to resolve the objection, the regulations provide that the Administrator "will terminate, modify, or revoke and reissue the permit" after providing 30 days' notice to the permittee, providing the permittee an opportunity to comment on the Administrator's proposed action, and providing the permittee an opportunity for a hearing. 40 C.F.R. §§ 70.7(g)(5), 71.4(e). These provisions negate the idea that the EPA must immediately act on the permit after 90 days.
Zen-Noh argues that the EPA's notice of final rulemaking provides support for its argument that the Administrator's duty at issue is nondiscretionary. Zen-Noh relies on the following passage from the notice to the final rule:
Operating Permit Program, 57 Fed.Reg. 32250-01, at *32290 (July 21, 1992). Zen-Noh derives two arguments from this passage. First, it argues that because suspending the permit would not comply with the statute, the statute must be mandatory. This is correct because, as discussed above, "shall" does mean "shall." But the mere existence of an obligation does not make it nondiscretionary for the purpose of section 7604(a)(2). Neither the EPA nor Zen-Noh disagrees that the Administrator must modify, terminate, or revoke the permit at some point. Here, the EPA is simply clarifying that a fourth option of suspending the permit would contradict the statute's mandatory nature. Accordingly, this first point does not help Zen-Noh.
Second, Zen-Noh argues that "upon" in the passage means that the Administrator must modify, terminate, or revoke the permit simultaneously with or immediately after its objection, or, at the latest, 90 days after its objection. This argument contradicts the final rule which provides that the EPA give the state 90 days to resolve the objection, and provide the permittee 30 days' notice, as well as an opportunity for a hearing. The EPA acknowledged these requirements:
Operating Permit Program, 57 Fed.Reg. at *32290. Zen-Noh's argument that "upon" means "immediately" is precluded by the EPA's own regulations. There is simply no explicit deadline to be found in either the notice or the rule itself. See Wild-Earth, 885 F.Supp.2d at 1117 ("To state these additional procedures, then, is to make apparent that there cannot be a date-certain deadline for EPA's decision to deny or revoke the permit."). Accordingly, Zen-Noh's interpretation is inconsistent with these procedures.
Zen-Noh's last attempt to work around the EPA's procedures is to argue that they must give way because: "To the extent that a regulatory process frustrates or renders meaningless a Congressional statutory mandate, it must yield to Congress's will." Avenal Power Ctr. v. EPA, 787 F.Supp.2d 1, 4 (D.D.C.2011). Avenal, however, dealt with an explicit statutory deadline. The statute at issue required the EPA to grant or deny specific permits within one year, and the Court held that: "while the Administrator is welcome to avail herself of whatever assistance the EAB can provide her within the one-year statutory period, she cannot use that process as an excuse, or haven, to avoid statutory compliance." Id. As discussed above, there is no explicit deadline in the statutes at issue. Accordingly, the EPA regulations are consistent with the statute and are not overriding any statutory deadline.
Accordingly, because the Administrator's duties are discretionary for the purposes of section 7604(a)(2), this Court lacks subject matter jurisdiction over this matter.
The EPA's motion to dismiss for lack of subject matter jurisdiction is GRANTED. There is no applicable waiver of the federal government's sovereign immunity. Zen-Noh's claims are dismissed for lack of jurisdiction.
Raymond Proffitt, 930 F.Supp. 1088 at 1100-01.
Sierra Club v. Leavitt also found that the statute provided an explicit deadline: "The words used in the regulation clearly indicate that the duty imposed on the Administrator is nondiscretionary, as it required the Administrator to prose a rule by July 1, 2003, and to finalize it within one year thereafter." Sierra Club, 355 F.Supp.2d at 549.