ELR Citation: 54 ELR 20166
No(s). 17-20545 (5th Cir. Dec 11, 2024)

In a per curiam opinion, a divided en banc Fifth Circuit affirmed a district court's civil penalty award of $14.25 million against an oil company in a long-running dispute concerning alleged CAA permit violations at an industrial complex in Baytown, Texas. Environmental groups had filed a CAA citizen suit, seeking civil penalties for thousands of unauthorized emissions over a nearly eight-year period. The district court found the alleged violations were actionable and imposed a $19.95 million civil penalty. The groups appealed, and the appellate court held they needed to prove standing for each violation and remanded to the district court to determine whether their members' injuries were traceable for each violation. On remand, the district court again found the groups had standing, held the company was liable for 16,386 days of violations, and imposed a $19.95 million civil penalty. The company appealed, and the appellate court held the groups had established the injury-in-fact and redressability prongs, but ordered a "limited remand" for additional analysis on which violations satisfied the "fairly traceable" requirement. On the second remand, the district court applied a rubric provided by the appellate court, held the groups established traceability for 3,651 days of violations, and reduced the award to $14.25 million. The company appealed a second time, and the appellate court affirmed. The full court ordered a rehearing en banc, and affirmed the penalty award of $14.25 million against the oil company.