Opinion ID: 371077
Heading Depth: 2
Heading Rank: 1

Heading: Refining the Issue.

Text: 98 The new definition of 'commence' in the 1977 Amendments generally follows the Strelow Memoranda interpretation of the pre-amendment regulatory definition, with one significant distinction. 99 As with the Memoranda interpretation, an owner or operator must either begin 'a continuous program of physical on-site construction' or enter into contractual obligations, 'which cannot be canceled or modified without substantial loss . . ., to undertake a program of construction of the facility to be completed within a reasonable time.' 30 Clean Air Act Sec. 169(2)(A). 100 The difference is that, whether a source 'has obtained all necessary preconstruction approvals or permits required by Federal, State or local air pollution emissions and air quality laws or regulations,' id., is no longer merely a 'relevant factor' in determining if a source is irrevocably committed to its site, but rather is a prerequisite to satisfying the definition of 'commence' irrespective of how the source claims its exemption. 101 Section 168 bridges the gap between the regulatory and statutory definitions of 'commence.' It provides that if a source meets the statutory definition between June 1, 1975, and August 7, 1977, 'the review and permitting of such facility shall be in accordance with' the pre-amendment PSD review and permitting procedures in the regulations. 102 Thus, three time periods are relevant under the 1977 Amendments to determine the effect of PSD review and permitting on a given source. If the source 'commenced construction,' as defined in the statute: 103 (1) before June 1, 1975, it is exempt from PSD review and permitting under the 1977 Amendments; 104 (2) between June 1, 1975, and August 7, 1977, it is subject to PSD review and permitting under the pre-amendment regulations; and 105 (3) after August 7, 1977, or not at all, it could be subject to stricter PSD review and permitting under the PSD regulations amended to conform to the 1977 Amendments. 106 There is no question that Montana Power did not commence construction, under the statutory definition, before June 1, 1975. It concedes it began no on-site construction before that date and we determined above that, under the EPA's acceptable interpretation, the company would sustain no substantial loss if it had been forced to cancel or modify its contractual obligations as of that time. 107 Montana Power argues that, even if it had not commenced construction under the statutory definition before June 1, 1975, it did so before August 7, 1977. It maintains that the language in Sec. 168, specifying that sources commencing construction in this interim shall be reviewed 'in accordance with' the regulations in effect before the 1977 Amendments, preserves the Colstrip Units' grandfather status as established by the district court. Since we reverse the district court, we need not reach this issue. 31 108 Montana Power is at least subject to PSD review and permitting under the preamendment regulations. Even if it commenced construction under the statutory definition before August 7, 1977, the same PSD requirements would apply. The issue then becomes whether it failed to commence construction before August 7, 1977. If so, Colstrip Units 3 & 4 might be subject to the stricter PSD review and permitting procedures in the regulations amended to conform to the 1977 Amendments. 109