Sierra Pacific Power Company and Idaho Power Company v. United States Environmental Protection Agency

This case involves the applicability of the anti-pollution requirements of the Clean Air Act, section 111 ( 42 U.S.C. § 7411 ), and the regulations promulgated under that section. Sierra Pacific Power Company and Idaho Power Company appeal Environmental Protection Agency (EPA) decisions holding that Unit 2 of their coal-fired power plant must conform to the stringent anti-pollution regulations promulgated by the EPA in 1978. The power companies argue that they had “commenced construction” of Unit 2 prior to September 19, 1978, and are therefore exempt from proposed standards promulgated on that date. The EPA interpreted its regulations to require actual physical construction of or a binding construction contract for Unit 2, independent of Unit 1, prior to the relevant regulatory date, and refused to consider planning and design activity. Because the EPA did not abuse its discretion in so interpreting its regulations, we affirm.

FACTS

Sierra Pacific Power Company and Idaho Power Company (Sierra Pacific) are jointly constructing a coal-fired electric power plant at North Valmy Station in Humboldt County, Nevada. The plant consists of two boilers (Unit 1 and Unit 2) which are…