Justia U.S. 3rd Circuit Court of Appeals Opinion Summaries

The Renewable Fuel Standard (RFS) program requires gasoline and diesel fuel refiners, blenders, and importers to ensure that a certain portion of their annual transportation fuel production consists of renewable fuels, 42 U.S.C. 7545(o)). United, a small Pennsylvania refinery, has periodically received hardship exemptions from those requirements, including in the 2017 and 2018 compliance years. In 2019, United sought an exemption. Rather than accepting United's data at face value—as in previous years—EPA asked how United had accounted for the financial benefit of its 2018 RFS exemption. United's amended financial statement explained that revenue from selling its renewable fuel credits (RINS) generated in a particular year was included in net revenues for that year, even if the RINs actually were sold in a later calendar year. United’s amended figures showed a three-year refining margin that was higher than the margin in United’s original submission and higher than the industry average. The Department of Energy (DOE) evaluated United’s submission and initially recommended that United not receive an exemption. DOE later changed its recommendation to account for the effects of COVID-19 and suggested a 50 percent exemption for 2019.EPA denied United any exemption, declining to consider events “that did not emerge until 2020, the year after the petition in question.” The Third Circuit denied a petition for review, rejecting United’s argument that EPA arbitrarily relied on an “accounting trick” that artificially inflated United’s running average net refining margin. View "United Refining Co v. Environmental Protection Agency" on Justia Law

The Federal Energy Regulatory Commission conditionally approved Adelphia’s application under 15 U.S.C. 717f(c), the Natural Gas Act, to acquire, construct, and operate an interstate natural gas pipeline system. As part of that project, Adelphia sought to construct a compressor station in West Rockhill Township and applied to the Pennsylvania Department of Environmental Protection (DEP) to demonstrate compliance with the Federal Clean Air Act and Pennsylvania’s Air Pollution Control Act. The DEP granted Plan Approval.Adelphia successfully moved to dismiss appeals to the Pennsylvania Environmental Hearing Board, arguing that federal courts of appeals have original and exclusive jurisdiction over challenges to environmental permits issued by the DEP. The Commonwealth Court of Pennsylvania reversed, reasoning that administrative proceedings are not “civil actions” and that the Natural Gas Act did not preempt the Board from exercising its jurisdiction. Adelphia then filed suit in the Middle District of Pennsylvania requesting that it enjoin the Board from acting. Adelphia also appealed to the Supreme Court of Pennsylvania.The district court dismissed Adelphia’s suit, holding that the issue preclusion doctrine bars Adelphia from bringing a federal action premised on arguments the Commonwealth Court rejected. The Third Circuit affirmed. Adelphia’s challenge impermissibly seeks to relitigate an issue decided by the Commonwealth Court. View "Adelphia Gateway LLC v. Pennsylvania Environmental Hearing Board" on Justia Law

The Delaware River Basin Commission banned high-volume hydraulic fracturing (fracking) within the Delaware River Basin, reflecting its determination that fracking “poses significant, immediate and long-term risks to the development, conservation, utilization, management, and preservation of the [Basin’s] water resources.” The ban codified a “de facto moratorium” on natural gas extraction in the Basin since 2010. Two Pennsylvania state senators, the Pennsylvania Senate Republican Caucus, and several Pennsylvania municipalities challenged the ban, alleging that the Commission exceeded its authority under the Delaware River Basin Compact, violated the Takings Clause, illegally exercised the power of eminent domain, and violated the Constitution’s guarantee of a republican form of government.The Third Circuit affirmed the dismissal of the suit for lack of standing. No plaintiff alleged the kinds of injuries that Article III demands. Legislative injuries claimed by the state senators and the Republican Caucus affect the state legislature as a whole; under Supreme Court precedent, “individual members lack standing to assert the institutional interests of a legislature.” The municipalities alleged economic injuries that are “conjectural” and “hypothetical” rather than “actual and imminent.” None of the plaintiffs have standing as trustees of Pennsylvania’s public natural resources under the Pennsylvania Constitution's Environmental Rights Amendment because the fracking ban has not cognizably harmed the trust. View "Yaw v. Delaware River Basin Commission" on Justia Law

The Clean Water Act empowers citizens to sue for violations of the Act, 33 U.S.C. 1365(a)(1); a citizen-suit plaintiff must “give[] notice of the alleged violation” to the “alleged violator,” and also to the U.S. Environmental Protection Agency and to the state in which the alleged violation occurs. After the plaintiff has provided the required notice, it must wait 60 days before suing, to give the alleged violator an opportunity to bring itself into complete compliance. Shark River Cleanup Coalition, a non-profit citizen’s group, delivered a notice letter alleging a Clean Water Act violation.The Third Circuit affirmed the dismissal of the Coalition's subsequent suit. Under the applicable regulation, Notice regarding an alleged violation “shall include sufficient information to permit the recipient to identify the specific standard, limitation, or order alleged to have been violated, the activity alleged to constitute a violation, the person or persons responsible for the alleged violation, the location of the alleged violation, the date or dates of such violation, and the full name, address, and telephone number of the person giving notice, 40 C.F.R. 135.3(a). The Coalition’s Notice was deficient in that it did not “include sufficient information to permit [Defendants] to identify the specific standard, limitation, or order alleged to have been violated[.]” View "Shark River Cleanup Coalition v. Township of Wall" on Justia Law

Delaware and Hoboken, New Jersey each sued the oil companies in state court for state-law torts. By “produc[ing], marketing, and s[e]l[ling] fossil fuels,” they claimed, the oil companies worsened climate change. They sought damages for the environmental harm they had suffered and injunctions to stop future harm. The oil companies removed the cases to federal district courts. The suits’ broad focus on “global climate change,” the companies reasoned, “demand[ed] resolution by a federal court under federal law.”. They argued the tort claims arose under federal law, either because they were inherently federal, not state claims, or they raised substantive federal issues; the suits related to producing oil on the Outer Continental Shelf; and the oil companies were acting under federal officers.The Third Circuit affirmed the remands of the cases to state courts, noting that four other circuits have refused to allow the oil companies to remove similar state tort suits to federal court. These lawsuits neither are inherently federal nor raise substantial federal issues that belong in federal court. Oil production on the Outer Continental Shelf is too many steps removed from the burning of fuels that causes climate change. Delaware and Hoboken are not suing over actions that the companies were directed to take by federal officers. View "City of Hoboken v. Chevron Corp" on Justia Law

Following two fires at its steel plant, U.S. Steel polluted the air. Because that pollution violated its Clean Air Act permits and regulations, it reported the incidents to the local officials who enforce that Act, the Allegheny County Health Department. The Clean Air Council, an environmental watchdog, sued, arguing that under CERCLA, U.S. Steel should have reported the pollution to the federal government too. CERCLA (the Comprehensive Environmental Response, Compensation, and Liability Act) exempts from reporting any “federally permitted” emissions, 42 U.S.C. 9603, including emissions “subject to” certain Clean Air Act permits and regulations. The Council argued that “subject to” means “obedient to” so that an emission cannot be “subject to” a permit or regulation that it violates.The Third Circuit affirmed the dismissal of the suit. In context, “subject to” means “governed or affected by.” Since U.S. Steel’s emissions were governed by a Clean Air Act permit, that means they were “federally permitted” under CERCLA and exempt from federal reporting. View "Clean Air Council v. United States Steel Corp." on Justia Law

Brace, a farmer, owns hundreds of acres in Erie County, Pennsylvania. He cleared 30 acres of wetlands, draining it to grow crops. In 1994, the Third Circuit affirmed that Brace had violated the Clean Water Act. In 2012, Brade bought 14 additional acres of wetlands. Again, he engaged in clearing, excavation, and filling without required permits. During a second suit under the Act, Brace’s counsel submitted perfunctory pleadings and failed to cooperate in discovery, repeatedly extending and missing deadlines. Counsel submitted over-length briefs smuggling in extra-record materials. The court repeatedly struck Brace’s materials but generally chose leniency. Eventually, the court struck Brace’s opposition to summary judgment after analyzing the “Poulis factors,” then granted the government summary judgment on liability, holding that Brace had violated the Act. The court ordered Brace to submit a proposed deed restriction and restoration plan.The Third Circuit rejected Brace’s appeal. While “it stretches credulity [to believe that Brace had] no idea how counsel [wa]s conducting this case,” the court gave Brace the benefit of the doubt. Brace’s lawyer’s misconduct forced the government to waste time and money “deciphering incomprehensible pleadings, scouring through noncompliant briefs, and moving again and again for compliance" to no avail. Counsel acted in bad faith; repeated orders to show cause, warnings, and threats of sanctions did not deter counsel’s chronic misbehavior. The sanction “was hardly an abuse of discretion.” View "United States v. Brace" on Justia Law

In 1948-1981, New Jersey's 65-acre Combe Superfund Site functioned as a municipal landfill. In 1978, Carter purchased the Site. Compaction conducted operations and transported hazardous materials to the Site. In 1983, the U.S. Environmental Protection Agency (USEPA) added the Site to the National Priorities List. USEPA and the New Jersey Department of Environmental Protection (NJDEP) entered into a cooperative agreement that designates NJDEP as the lead agency to oversee the cleanup. USEPA contributed 90% of the cost of managing and performing the work; NJDEP paid 10%. The agreement expressly “negated and denied” the authority of either party to “attempt to negotiate on behalf of the other.”The United States did not file a claim against Carter in its bankruptcy case. In 1983, USEPA notified Carter and others that they were potentially responsible parties (PRPs) under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. 9601, for the cleanup costs. In 1991 the Bankruptcy Court approved a settlement between Carter and the NJDEP with respect to the Site. In 1998, the United States and NJDEP sued several PRPs; they entered into a global consent decree with several parties (including Compaction) in 2009 for $62.6 million. Compaction consented to a judgment of $26 million but is not obligated to pay unless its recoveries from CERCLA contribution actions against other PRPs exceeds at least $11 million. Carter was not a party to the Decree or the Judgment.Compaction sought contribution from Carter in 2011. The district court granted Carter summary judgment, reasoning that the NJDEP Settlement protected it from contribution. The Third Circuit reversed. A polluting party’s settlement with a state does not protect it from lawsuits seeking contributions toward expenditures made by the federal government on the same site. View "New Jersey Department of Environmental Protection v. American Thermoplastics Corp" on Justia Law

Sierra Club sought review of the EPA’s approval of new Pennsylvania National Ambient Air Quality Standards (NAAQS) to govern pollution output at coal-burning power plants, as required by the Clean Air Act, 42 U.S.C. 7408(a). Sierra Club argued that the standards wrongly claim to reduce pollution output at Pennsylvania’s most advanced plants while simply rubber-stamping an average of current pollution output as its supposed new gold standard and criticized the proposal’s minimum temperature threshold—a measure that allows plants to nearly quintuple their pollution output when operating below 600 degrees Fahrenheit—as unsupported and unsupportable given the technical record before the agency. Sierra Club claims that the approved standards lack enforceable reporting regulations.The Third Circuit remanded to the EPA, finding that “the regulatory regime which springs forth from these three defining characteristics is neither supported by adequate facts nor by reasoning found in the administrative record.” Given the EPA’s concession that technological advances may allow for a more environmentally friendly standard than the one approved, reliance on a study that is more than 25 years old is neither a persuasive nor reasonable basis for adopting the standard it approved. The EPA is able neither to offer a reasonable justification for failing to require a stricter standard nor to justify the standard it endorsed. View "Sierra Club v. United States Environmental Protection Agency" on Justia Law

The Baptistes filed suit on behalf of a class of homeowner-occupants and renters (about 8,400 households) claiming interference with the use and enjoyment of their homes and loss in property value caused by noxious odors and other air contaminants emanating from the 224-acre Bethlehem Landfill. The Third Circuit reversed the dismissal of the suit. While everyone in the community—including visitors, commuters, and residents—may suffer from having to breathe polluted air in public spaces, the Baptistes have identified cumulative harms that are unique to residents, such as the inability to use and enjoy their outdoor spaces. These injuries are above and beyond any injury to the public; the Baptistes sufficiently alleged a “particular damage” to sustain a private claim for public nuisance. They also stated a claim for private nuisance. Pennsylvania law does not reject a private nuisance claim on the ground that the property affected was too far from the source of the alleged nuisance. Nor does Pennsylvania law condition an individual’s right to recover private property damages on a nuisance theory on the size of the nuisance or the number of persons harmed, as opposed to the nature of the rights affected or the degree of the harm suffered. The question remains whether the Baptistes have sufficiently pleaded a cognizable injury to state an independent negligence claim. View "Baptiste v. Bethlehem Landfill Co." on Justia Law