Enhesa Flash 72 September 2013 Issue | Page 28

Conflict in the Air that the CAA does not preempt state tort law claims as to intrastate sources of air pollution.10 The court, citing the U.S. Supreme Court’s Clean Water Act preemption opinion in International Paper Co. v. Ouellette,11 analogized that the CAA is also a “regulatory floor, not a ceiling,” and that “states are free to impose higher standards on their own sources of pollution, and that state tort law is a permissible way of doing so.”12 While this debate may complicate predictions as to whether the Clean Air Act preempts Arkansas’s new law, there is arguably a strong case for preemption under Act 1302. First, while federal and state common law nuisance claims exist separately and independently of the CAA regulatory scheme (whether or not they are in fact preempted), the CAA and its regulations expressly require states to incorporate air quality modeling into their respective state implementation plans (SIPs).13 Arkansas’s limitation on modeling therefore goes to the heart of its obligations under a broad federal statute. Second, while the CAA does contain a “savings clause”14 for states to independently regulate air emissions, Congress limited this power in that states “may not adopt or enforce any emission standard or limitation which is less stringent” than that required under the CAA or the state’s SIP. Arguably, Act 1302 fails this mandate by seeking to loosen preexisting air modeling requirements that have become the basis for evaluating new and modified sources under a federal regulatory scheme and ensuring compliance with the federal NAAQS. It would not be a stretch for EPA, or if there are legal challenges, the federal courts, to find that Act 1302 makes it impossible for industry to comply with both federal and state law or that the CAA regulatory scheme is so pervasive as to “occupy the field” of air regulation, thus finding preemption. And what should industry expect if EPA and/or the courts find that the CAA preempts Arkansas’s Act 1302? EPA has already promised greater oversight over ADEQ’s current permitting program.15 The federal government could institute an “SIP Call”—finding elements of Arkansas’s SIP insufficient to comply with the NAAQS or other CAA requirements—and require Arkansas to submit a revised SIP.16 It also could assume control of ADEQ’s permitting program or withhold grant money from Arkansas.17 For companies in Arkansas, this may increase uncertainty in regulatory 28 | Enhesa Flash September 2013 compliance because Act 1302 could be partially or wholly withdrawn. Given the recent increase in U.S. air emissions regulation and the reactionary aversion to regulation in more conservative states, similar conflicts may arise in the foreseeable future. In turn, companies should prepare by keeping an eye on these developing federal-state conflicts and maintaining maximum flexibility in their operations and regulatory compliance regimes. - Christian Petrangelo, US EHS Regulatory Consultant ____________________________ 1 Study: Air Pollution Causes 200,000 Early Deaths in US, VOICE OF AMERICA, Aug. 29, 2013, http://www.voanews.com/content/air-pollution-linked-toearly-death/1739804.html. 2 Id. 3 Virginia Shaffer & Tjeerd Hendel-Blackford, Then and Now: The Difference Four Years Can Make in Global Regulatory Subject Matter Focus, ENHESA FLASH, Mar. 2013, at 4, 4. http://www.joomag.com/magazine/mag/006314400136 3842084?feature=archive. 4 Id. at 7. 5 Id. at 6. 6 See Rob Moritz, ADEQ Moving Forward with New Air Testing Law Despite Concerns, THECABINET.NET: LOG CABIN DEMOCRAT, June 8, 2013, http://thecabin.net/ news/state/2013-06-08/adeq-moving-forward-new-airtesting-law-despite-concerns#.UiY6uTamjJW. 7 U.S. CONST. art. VI, cl. 2. 8 Am. Elec. Power Co. v. Connecticut, 131 S. Ct. 2527, 2537–38 (2011). 9 North Carolina ex rel. Cooper v. Tenn. Valley Auth., 615 F.3d 291, 303 (4th Cir. 2010). 10 Bell v. Cheswick Generating Station, No. 12-4216, slip op. at 23 (3d Cir. Aug. 20, 2013). 11 International Paper Co. v. Ouellette, 479 U.S. 481 (1987). 12 Bell, slip op. at 22. 13 42 U.S.C. § 7410(a)(2)(k) (2012); 40 C.F.R. § 51.112 (2012) (“The adequacy of a control strategy shall be demonstrated by means of applicable air quality models, data bases, and other requirements specified in appendix W of this part . . . .” (emphasis added)). 14 42 U.S.C. § 7416 (2012). 15 ARK. DEP’T OF ENVTL. QUALITY, FREQUENTLY ASKED QUESTIONS REGARDING ACT 1302 IMPLEMENTATION 6 (2013), available at http://www.adeq.state.ar.us/home/pdfs/hot_topics_201 3_air_act_1302_faq_5-17-13.pdf. 16 Id. at 7. 17 Moritz, supra note 6.