Justia U.S. 5th Circuit Court of Appeals Opinion Summaries

In 2015, bipartisan legislation repealed the U.S. ban on crude oil exports, leading to expanded efforts to export U.S. crude oil. This case involves an administrative challenge to a construction permit issued by the U.S. Army Corps of Engineers for expanding operations at the Moda Ingleside Crude Export Terminal in Texas. The expansion includes constructing new docks and a turning basin, requiring dredging and discharging material into U.S. waters. The Corps conducted an Environmental Assessment (EA) and approved the permit. Plaintiffs, including Native American tribes and an environmental association, sued to invalidate the permit, claiming violations of the National Environmental Policy Act (NEPA), the Clean Water Act (CWA), and the Administrative Procedure Act (APA).The United States District Court for the Southern District of Texas denied summary judgment for the plaintiffs and granted summary judgment for the Corps, concluding that the Corps had adequately studied the environmental impacts of the proposed expansion. The court found that plaintiffs had associational standing but had waived certain claims by not raising them in summary judgment briefing. The court also found that plaintiffs forfeited claims related to increased vessel traffic by not raising them during the notice-and-comment period.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's decision. The Fifth Circuit held that the Corps did not act arbitrarily or capriciously in its environmental impacts analysis, including its assessment of cumulative impacts and climate change. The court found that the Corps's EA was sufficient and that an Environmental Impact Statement (EIS) was not required. The court also agreed that plaintiffs had forfeited arguments related to increased vessel traffic. The judgment of the district court was affirmed. View "Indigenous Peoples v. U.S. Army" on Justia Law

The case involves the Environmental Protection Agency's (EPA) disapproval of State Implementation Plans (SIPs) submitted by Louisiana, Texas, and Mississippi under the Clean Air Act (CAA) to address interstate air pollution. The EPA disapproved these SIPs, arguing that they did not meet the requirements of the Good Neighbor Provision, which mandates that states prevent their emissions from significantly contributing to nonattainment or interfering with maintenance of national air quality standards in downwind states.The lower courts had not previously reviewed this case. The case was directly brought to the United States Court of Appeals for the Fifth Circuit, where the petitioners sought to vacate the EPA's disapprovals. The petitioners argued that the EPA's actions were arbitrary, capricious, and inconsistent with the CAA.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court denied the petitions for review from Louisiana and Texas, finding that the EPA's disapprovals were justified based on the states' own data and interpretations of the Good Neighbor Provision. The court concluded that the EPA had reasonably considered the relevant issues and provided adequate explanations for its decisions.However, the court granted the petition for review from Mississippi, vacated the EPA's disapproval of Mississippi's SIP, and remanded the matter to the EPA. The court found that the EPA's disapproval of Mississippi's SIP was arbitrary and capricious because it was based on updated data that was not available to Mississippi at the time of its SIP submission. The court held that the EPA failed to reasonably explain its decision to use this updated data in an outcome-determinative manner. View "Texas v. Environmental Protection Agency" on Justia Law

The City of New Orleans filed a lawsuit against several pipeline operators and Entergy New Orleans LLC, alleging that their oil and gas production and transportation activities caused damage to the City's coastal zone. The City claimed that Entergy allowed its pipeline canals to widen and erode, threatening the City's storm buffer. The lawsuit was filed under Louisiana’s State and Local Coastal Resources Management Act of 1978 (SLCRMA).The defendants removed the case to federal court, arguing that Entergy, the only in-state defendant, was improperly joined to defeat diversity jurisdiction. Entergy consented to the removal and argued that it was exempt from SLCRMA’s permit requirements because its activities commenced before the statute's effective date. The City moved to remand the case to state court, but the United States District Court for the Eastern District of Louisiana denied the motion, dismissed Entergy as a party, and stayed the case pending appeal.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's judgment. The appellate court held that Entergy was improperly joined because its activities were exempt under SLCRMA’s Historical-Use Exception, which applies to uses legally commenced before the statute's effective date. The court found no reasonable basis for the City to recover against Entergy, thus disregarding Entergy's citizenship and establishing complete diversity among the parties. The court also rejected the City's argument that it was merely a nominal party representing Louisiana, concluding that the City filed the suit on its own behalf and stood to benefit from a favorable ruling. Consequently, the appellate court affirmed the district court's denial of the City's motion to remand. View "New Orleans City v. Aspect Energy" on Justia Law

The United States Army Corps of Engineers partnered with the City of Dallas on the Dallas Floodway Extension (DFE) project, which began in 1999. Plaintiffs Timpy Ondrusek and Barbara Ann Ondrusek Wolfe own property that Dallas attempted to condemn for the DFE. They sued the Corps and the City in federal district court, seeking declaratory and injunctive relief under the Administrative Procedure Act (APA), claiming the Corps failed to prepare a supplemental environmental impact statement (SEIS) to account for new information, violating the National Environmental Policy Act (NEPA) and the Clean Water Act (CWA).The United States District Court for the Northern District of Texas dismissed the claims, determining the case was not justiciable. The court found the plaintiffs had not shown Article III standing and dismissed the complaint without prejudice. The plaintiffs filed an amended complaint, but the district court again concluded the case was not justiciable, noting the levee design phase was only 35 percent complete, and dismissed the case as unripe without prejudice, denying leave to amend.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found the claims against the Army Corps of Engineers were ripe for decision, as the Corps' failure to comply with NEPA presented a present controversy. The court determined the plaintiffs had standing, as they alleged a concrete and particularized risk of environmental harm to their property due to the Corps' failure to prepare an SEIS. The court reversed the district court's dismissal of the suit with respect to the Army Corps of Engineers, affirmed the dismissal with respect to the City of Dallas, and remanded for further proceedings. View "Ondrusek v. United States Army Corps of Engineers" on Justia Law

A group of plaintiffs, including several states and corporations, challenged a Department of Labor rule that allowed ERISA fiduciaries to consider environmental, social, and governance (ESG) factors when making investment decisions if those factors equally serve the financial interests of the plan. This rule was issued following an executive order by President Biden, which counteracted a previous Trump-era rule that prohibited considering non-pecuniary factors in investment decisions.The United States District Court for the Northern District of Texas upheld the Department of Labor's rule, relying on the Chevron deference doctrine, which allows courts to defer to a federal agency's interpretation of ambiguous statutory language. The district court concluded that the rule was not "manifestly contrary to the statute" after affording the Department the deference due under Chevron.The United States Court of Appeals for the Fifth Circuit reviewed the case. During the appeal, the Supreme Court decided Loper Bright Enterprises v. Raimondo, which overruled Chevron, thus eliminating the deference previously given to agency interpretations. Given this significant change in the legal landscape, the Fifth Circuit vacated the district court's judgment and remanded the case for reconsideration in light of the new Supreme Court decision. The appellate court emphasized the importance of allowing the district court to reassess the merits without the Chevron framework, ensuring that the lower court's independent judgment is applied to the statutory interpretation of ERISA. View "State of Utah v. Su" on Justia Law

Several Louisiana coastal parishes, joined by the Louisiana Attorney General and the Louisiana Secretary of Natural Resources, filed lawsuits against various oil and gas companies, alleging violations of Louisiana’s State and Local Coastal Resources Management Act of 1978. The companies removed these cases to federal court, asserting that they satisfy the requirements of the federal officer removal statute due to their refining contracts with the government during World War II. The district courts granted the parishes’ motions to remand these cases to state court, concluding that the oil companies did not meet their burden of establishing federal jurisdiction.The oil companies appealed the district courts' decisions. The United States Court of Appeals for the Fifth Circuit affirmed the district courts’ orders remanding these cases to state court. The court concluded that the oil companies failed to satisfy the “acting under” requirement of the federal officer removal statute, as their compliance with federal regulations or cooperation with federal agencies was insufficient to bring a private action within the statute. The court also found that the oil companies failed to establish that the conduct challenged in the parishes’ lawsuits was “connected or associated with” acts the companies had taken under color of federal office. View "Plaquemines Parish v. BP America Production Co." on Justia Law

The case involves a challenge by the Sierra Club to the pre-construction permits issued by the Louisiana Department of Environmental Quality (LDEQ) to Commonwealth LNG, LLC for its planned liquefied natural gas (LNG) export facility. The Sierra Club argued that the facility’s emissions would exceed National Ambient Air Quality Standards (NAAQS) and that LDEQ failed to require Commonwealth to use the best available control technology (BACT) to limit those emissions.Before the United States Court of Appeals for the Fifth Circuit, LDEQ argued that the court lacked jurisdiction to hear the case, asserting that the claim arose under state law, not federal law. However, the court found that it had jurisdiction to review the petition because when LDEQ issued the permit, it was acting pursuant to federal law, not merely state law.On the merits, the court found that LDEQ did not act arbitrarily in its use of significant impact levels (SILs) to calculate which pollutants will have an insignificant effect on the NAAQS. The court also found that LDEQ did not act arbitrarily in its use of AP-42 emission factors to determine potential emissions from an LNG facility that has not yet been built. Furthermore, the court held that LDEQ did not violate its public trustee duty under Louisiana law, which requires LDEQ to evaluate and avoid adverse environmental impacts to the maximum extent possible.The court denied Sierra Club’s petition for review and affirmed LDEQ’s permitting decision. View "Sierra Club v. Louisiana Department of Environmental Quality" on Justia Law

The case revolves around a dispute between Good River Farms and Martin Marietta Materials and TXI Operations, who own land directly across from each other along the Colorado River. In 2015, a "120-year flood" event occurred near Austin, Texas, causing severe damage to Good River's pecan farm. Good River claimed that Martin Marietta's strip mining activities resulted in a large pit filled with groundwater that breached and released a deluge of impounded surface water onto their property. Following a jury trial, Good River was awarded $659,882.00 in damages, prevailing on claims for violations of Texas Water Code § 11.086 and for negligence. Martin Marietta appealed the decision.The case was initially heard in the United States District Court for the Western District of Texas. The jury rejected Good River's nuisance claims but found in favor of Good River on the issues of water diversion and negligence. The trial court entered final judgment on that verdict, awarding Good River $659,882.00 in damages. Martin Marietta filed a renewed motion for judgment as a matter of law under Rule 50(b), which the trial court denied.The case was then reviewed by the United States Court of Appeals for the Fifth Circuit. The court affirmed the lower court's decision, ruling that there was sufficient evidence to support the jury's conclusions that Martin Marietta violated Texas Water Code § 11.086 and committed common law negligence. The court noted that the jury verdict demands deference and that the unique factual scenario presented in this case supported the jury's conclusions. View "Good River Farms v. TXI Operations" on Justia Law

In this case, a government agency had approved a license to construct and operate a massive deepwater oil facility off the coast of Texas. Several environmental organizations alleged that the approval was unreasonable, arguing that the agency failed to adequately support its decision with a thorough environmental impact analysis. The groups claimed this was in violation of the Deepwater Port Act and the National Environmental Policy Act. They contended that the agency's approval was arbitrary or capricious. The environmental organizations asserted that operating the facility would produce emissions equivalent to more than 80 new coal-fired power plants and could increase the likelihood of mass oil spills along miles of the Texas coastline. They also voiced concerns about potential threats to the Gulf's marine environment.After their concerns were initially dismissed by the agency overseeing the project, the environmental organizations appealed the licensing decision. They claimed the agency had not conducted the appropriate level of review in its environmental impact statement and had not followed relevant statutory provisions during the approval process.The United States Court of Appeals for the Fifth Circuit held that the agency had adequately considered the environmental consequences of the facility before approving its deepwater port license. The court found that the agency's decision was not arbitrary or capricious, and as such, it denied the petition for review brought by the environmental organizations. The court ruled that the agency had taken a "hard look" at the environmental consequences of the project, provided sufficient detail for the public to understand and consider the relevant environmental influences, and evaluated alternatives in a way that permitted a reasoned choice among different courses of action. View "Citizens for Clean Air & Clean Water in Brazoria County v. United States Department of Transportation" on Justia Law

The case involves a petition by Inhance Technologies, L.L.C. against orders issued by the United States Environmental Protection Agency (EPA). Inhance, a company that has been fluorinating plastic containers since 1983, was charged by the EPA for violating a Significant New Use Rule regarding long-chain perfluoroalkyls (PFAS) due to the presence of PFAS in an insecticide stored in a container fluorinated by Inhance. PFAS are long-lasting chemicals found in various products and have been linked to several health issues. The EPA issued two orders under Section 5 of the Toxic Substances Control Act (TSCA), prohibiting Inhance from manufacturing or processing PFAS during its fluorination process. Inhance claimed that if the orders were enforced, they would shutdown their fluorination process and bankrupt the company.The United States Court of Appeals for the Fifth Circuit ruled in favor of Inhance, stating that the EPA exceeded its statutory authority by issuing the orders. The court held that Inhance's decades-old fluorination process could not be deemed a "significant new use" under Section 5 of TSCA. The court vacated the EPA's orders and noted that the EPA could regulate Inhance's fluorination process under Section 6 of TSCA, which requires a cost-benefit analysis for ongoing uses. The court's ruling was based on the interpretation of the term "new" in TSCA, the statutory framework, and the requirement for agencies to provide fair notice of their rules. View "Inhance Technologies v. EPA" on Justia Law