Louisiana Court Reinstates Formosa Plastics Permits, Clarifying Environmental Justice Analysis
The Louisiana First Circuit Court of Appeal has reinstated air permits for Formosa Plastics' ('FG LA') facility, following a ruling that clarified environmental justice (EJ) analysis requirements. The court, in the case Rise St. James v. Louisiana Department of Environmental Quality, 2023-CA-0578, provided significant guidance on EJ considerations in state permitting.
The court accepted LDEQ's EJ analysis framework, which first assesses if there are any adverse impacts and then determines if these impacts are disparate. In the FG LA case, LDEQ found no adverse impacts, thus no disparate impact analysis was required.
The court agreed that an EJ analysis is part of Louisiana's public trust duty, making it mandatory for state permitting. LDEQ's public engagement, including a hearing and considering community concerns, supported the court's conclusion that the agency appropriately considered EJ.
The court also ruled that LDEQ's decision not to rely on certain EJScreen values was not arbitrary. EJScreen, while a useful tool, does not label areas as EJ communities or quantify specific risk values, and is not the sole basis for agency decision-making regarding EJ concerns.
The First Circuit's opinion provides clear guidance on EJ considerations in state permitting. It reinforces the importance of public engagement and the mandatory nature of EJ analyses under Louisiana's Public Trust Doctrine. The ruling reinstates FG LA's permits, following LDEQ's appropriate consideration of EJ factors.
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