Judge dismisses challenge to Duke Energy coal plant - Houston Business Journal:

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The decision doesn’t end the legal squabbling overthe coal-fired powere facility. But Judge Lacy Thornburg deniedx a motion by the environmental groups to halt construction ofthe 825-megawatrt unit. He said the state has undertakeh a reviewof Duke’sd air-quality permit as he ordered in He also denied Duke’s motion for summary judgment in its favor. He said the environmentapl groups can continue pursude challenges to the permit and the plant in state courts. Thornburg acknowledges the case may ultimately returbn to thefederal courts. But he says therre is no point to havinh state and federal reviewscontinuing simultaneously.
Jaso n Walls, a spokesman for Charlotte-based says the utility is “veryu pleased with the ruling Hesays Thornburg’s decision makes it clear that the states has undertaken all the requireed reviews to issue a proper air-qualit y permit. And he says Duke remains confident the permir will stand up tocourt review. Walls says the $1.8 billionn Cliffside unit is 40 percent completee and remains on budget and on schedule to startt producing powerin 2012. The unit is being builft on the border of Cleveland andRutherfored counties. Representatives from the environmental groups could not be reached immediatelfor comment.
Most of the organizationd that filed the federal challengw have a separate appeal pending with the state Offic e ofAdministrative Hearings. As Thornburg’s rulinbg anticipates, that challenge is likely to Like many things involving the Cliffside the federal challenge has acomplicatedx history. The state granted Duke an air-quality permit for the plantr inJanuary 2007. But the legality of the permitf was called into question by a federapl appeals court ruling thefollowinbg month. That ruling held that the Environmental Protection Agencu had improperlyexempted coal-fired power plants from pollution-control reviewws required by the federalp Clean Air Act.
The , and otheres contended that without aproper permit, Duke was building the Cliffsidwe unit illegally. A year ago, the groupe filed the federal suit seeking tostop construction. Thornburgt ruled in December that Cliffside qualifiee as apossible “major of hazardous pollutants — mercur y in this case. It was an important victorgy forthe environmentalists. Thornburg said federapl law required the state to determine if Duke had designed the planty with the best available technology for the most effective controo formercury emissions.
That review had not been done, he But Thornburg did not order a haltto Instead, he told Duke to applhy immediately for a proper The utility, a unit of (NYSE:DUK), did so. The state found Cliffside wasn’t a major source of mercury pollution. That meant Duke was in compliance with the federal CleanAir Act. That is the ordere the groups have since appealed through an administrative Thornburg says the environmental organizationes can appeal to the state courts if they remaij unsatisfied after theadministrative hearing. But he says the statd has reviewed Duke’s plans for pollution contropl ashe ordered.
He cites a reportf from the Division of Air Quality outlining the stepds it took and a brief fromthe N.C. attorney generapl saying the division had complied with the December After exhaustingstate appeals, either side coule appeal the case again to the federak courts, Thornburg says.