Source: https://case-law.vlex.com/vid/98-f-3d-799-597950646
Timestamp: 2020-02-23 04:19:35
Document Index: 47002435

Matched Legal Cases: ['§ 307', '§ 408', '§ 1331', '§ 7651', '§ 7651', '§ 7651', '§ 72', '§ 7651', '§ 7651', '§ 7651', '§ 7651', '§ 72', '§ 408', '§ 7651']

98 F.3d 799 (4th Cir. 1996), 95-1835, Ormet Corp. v. Ohio Power Co. - Federal Cases - Case Law - VLEX 597950646
Docket Nº: 95-1835.
Citation: 98 F.3d 799
Party Name: ORMET CORPORATION, now known as Ormet Primary Aluminum Corporation, Plaintiff-Appellant, v. OHIO POWER COMPANY; American Electric Power Service Corporation, Defendants-Appellees, and American Electric Power Company, Incorporated; John M. McManus; John E. Hollback, Jr.; Environmental Protection Agency; Carol M. Browner, as Administrator of the Unite
98 F.3d 799 (4th Cir. 1996)
We agree with Ormet that § 307 of the Clean Air Act does not apply to its claim, but we do not agree that § 408(i) of the Clean Air Act creates an implied cause of action. Nevertheless, we conclude that Ormet's action arises under federal law within the meaning of 28 U.S.C. § 1331 because resolution of Ormet's claim requires the determination
of substantial federal issues. Accordingly, we vacate the district court's dismissal order and remand this case for further proceedings.
Title IV of the Clean Air Act (the "Act"), enacted as part of the Clean Air Act Amendments of 1990, Pub.L. No. 101-549, 104 Stat. 2399 (1990), created an Acid Rain Program under the EPA's administration. The Act prescribes limits for emissions of sulfur dioxide and nitrogen oxides from specified electric utility plants in the contiguous 48 states, including the Kammer plant. 42 U.S.C. §§ 7651c-7651d. The Act requires that owners or operators of fossil fuel-fired combustion devices, referred to as "units," obtain emissions permits from the EPA for each location or "source" where units exist. 42 U.S.C. § 7651g. As part of the permit application, a designated representative of the owner or owners must submit a "certificate of representation" in which he must certify his authority to act on behalf of the owner or owners. 42 U.S.C. § 7651g(i); 40 C.F.R. § 72.24. Each permit allocates to each unit a number of emission "allowances" authorized by statute for the location, and each allowance authorizes the holder to emit one ton of sulfur dioxide. 42 U.S.C. §§ 7651g(a), 7651a(3). The Act provides that these emission allowances may be bought and sold as any other commodity. 42 U.S.C. § 7651b(b); 101 Cong. Rec. S16980 (daily ed. Oct. 27, 1990) ("[A]llowances will be treated in part like economic commodities." statement of Sen. Moynihan). To simplify administration of the Act, the Act provides that where there are multiple owners of a fossil fuel-fired unit, the designated representative must hold the allowances issued for it and distribute them and the proceeds from transactions involving them. 42 U.S.C. § 7651g(i).
Ormet claims that it is a partial owner of the Kammer plant and therefore is entitled to a proportionate share of the plant's allowances. To enforce its claim, Ormet filed this action in the district court against Ohio Power and affiliated companies and employees, 1 seeking a declaratory judgment that it owns 89% of the allowances issued for the Kammer plant because it is contractually obligated to contribute to the operation and maintenance of each of the plant's units for the "life of the unit," and it has paid 89% of those costs. See 42 U.S.C. § 7651a(27); 40 C.F.R. § 72.2 (defining owner to include a party with a life-of-the-unit contractual arrangement). 2 Ormet alleges that because it is a participating owner,
§ 408(i) of the Act--which provides that where there are multiple owners, "allowances and the proceeds of transactions involving allowances will be deemed to be held or distributed in proportion to each holder's legal, equitable, leasehold, or contractual reservation or entitlement"--entitles it to a share of the Kammer plant allowances. 42 U.S.C. § 7651g(i). In its complaint Ormet also seeks an injunction prohibiting Ohio Power and its affiliates from "using, transferring, selling, encumbering, disposing or otherwise exercising control over plaintiff's share of the allowances." The facts alleged in the complaint, which we accept as true in reviewing a dismissal order, reveal that in...