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Kennecott Corp. v. Environmental Protection Agency

Citations: 221 U.S. App. D.C. 485; 684 F.2d 1007; 12 Envtl. L. Rep. (Envtl. Law Inst.) 21037; 17 ERC (BNA) 1833; 1982 U.S. App. LEXIS 16978Docket: Nos. 80-2036, 80-2039 to 80-2041 and 81-1173

Court: Court of Appeals for the D.C. Circuit; July 30, 1982; Federal Appellate Court

Narrative Opinion Summary

This case involves a judicial review sought by several corporations challenging the Environmental Protection Agency’s (EPA) regulations under Section 119 of the Clean Air Act, which governs primary nonferrous smelter orders (NSOs). The petitioners contest the EPA's denial of reconsideration petitions and allege violations of Section 119, procedural errors under Section 307(d), and unconstitutional aspects of Section 110(a)(6). The smelting process releases sulfur dioxide (SO2), necessitating compliance with air quality standards through constant control technologies. The EPA’s regulations include a financial test for NSO eligibility, assessing economic viability against shutdown potential. The court vacated and remanded the regulations, finding EPA's closure standard inconsistent with the statutory requirement of 'reasonably available' controls and procedural lapses in not allowing public comment on economic forecasts. The court upheld the constitutionality of Section 110(a)(6), which prohibits pay reductions due to dispersion techniques, and determined that molybdenum roasters should receive NSO relief. The ruling underscored the necessity for EPA to align its eligibility criteria with statutory language and procedural standards, necessitating further regulatory review. Consequently, the interim regulations for acid plant operations were sustained, while the broader NSO regulations were invalidated and remanded for reconsideration.

Legal Issues Addressed

Clean Air Act - Section 119 NSO Eligibility

Application: The EPA's financial test for NSO eligibility was challenged as being inconsistent with statutory requirements, focusing on operational shutdown rather than profitability.

Reasoning: The court emphasizes that the statute requires determining whether controls are 'reasonably available,' and finds the EPA's closure standard inconsistent with this requirement.

Constitutionality of Section 110(a)(6) of the Clean Air Act

Application: Arguments challenging the constitutionality of Section 110(a)(6) were rejected, as it serves a national purpose related to air quality and economic fairness.

Reasoning: The appropriateness of alternative funding methods for idled workers is a legislative matter, affirming that Section 110(a)(6) is a legitimate congressional exercise of power and not unconstitutional.

Inclusion of Molybdenum Roasters under Section 119

Application: The exclusion of molybdenum roasters from NSO relief was found to be legally erroneous, as the statutory term 'nonferrous smelter' was intended to include a broader range of facilities.

Reasoning: NSO relief must be available to all 'nonferrous smelters,' including molybdenum roasters, due to the absence of evidence suggesting contrary congressional intent and the unambiguous nature of the statutory term.

Judicial Review Standard

Application: Judicial review of EPA's actions is limited to assessing whether such actions are arbitrary or capricious, not substituting the court's judgment for that of the Administrator.

Reasoning: Judicial review of the EPA’s actions is limited to whether those actions are arbitrary or capricious, with courts not substituting their judgment for that of the Administrator.

Procedural Requirements under Section 307(d)

Application: The court found that the EPA failed to comply with procedural requirements by not allowing public comment on significant economic forecast data used in NSO eligibility tests.

Reasoning: Moreover, EPA violated procedural requirements under section 307(d) by failing to allow public comment on its economic forecast data.