A federal appeals court upheld a previous ruling from 2021 that imposed a significant penalty of $14.25 million on Exxon Mobil due to numerous violations of the Clean Air Act at its refinery and chemical facility located in Baytown. The Fifth Circuit Court of Appeals’ decision came down on Wednesday, effectively concluding more than ten years of legal battles since the Sierra Club and Environment Texas initiated a lawsuit against Exxon in 2010.
This ruling reinforces a fundamental aspect of constitutional law, emphasizing that residents living near pollution-emitting industries have a vested interest in ensuring that these polluters abide by federal air quality standards. As stated by Josh Kratka, a managing attorney at the National Environmental Law Center who played a key role in the case, this ruling affirms the right of local citizens to take legal action to ensure compliance with the Clean Air Act as originally intended by Congress.
The court found that between 2005 and 2013, Exxon’s operations in Baytown emitted over 10 million pounds of pollutants that exceeded the limits of its state-issued air permits, including various carcinogenic and toxic substances. In a prior ruling in 2017, U.S. District Judge David Hittner had ordered Exxon to pay $19.95 million for violating air pollution regulations over a staggering 16,386 days.
In light of this decision, an Exxon spokesperson expressed disappointment and noted that the company is exploring other possible legal avenues. The Baytown facility, situated 25 miles from Houston, is in close proximity to a large residential area. Exxon has challenged the initial penalty, urging the judge to reconsider its determination based on potential financial savings gained from delaying necessary repairs that could have mitigated the excess emissions. The company also contended that it had shown sufficient proof that the emissions were unavoidable.
In 2021, the judge reduced the penalty to $14.25 million, which, according to Environment Texas, is the largest penalty levied by a court from a citizen-initiated lawsuit under the Clean Air Act. Exxon’s subsequent appeal questioned the standing of the plaintiffs to initiate the lawsuit.
While the majority of the Fifth Circuit affirmed the 2021 decision, seven members of the 17-judge panel expressed that they would have upheld the original $19.95 million fine. In a concurring opinion, the judges underscored that the principal matter was whether the plaintiffs, who reside, work, and engage in activities near Exxon’s facility, had a legitimate personal stake in addressing Exxon’s ongoing and future excessive emissions of hazardous pollutants. They concluded that the plaintiffs had indeed established standing for their claims and that the imposition of the penalty was justified to deter further violations from the company.
The legal action against Exxon was initiated under a specific provision of the Clean Air Act, which empowers citizens to take action when state and federal environmental authorities fail to act. Investigations have revealed that the Texas Commission on Environmental Quality seldom enforces penalties for unauthorized air emissions. Luke Metzger, executive director of Environment Texas, asserted that the public expects industries to act responsibly and be good community members, declaring that accountability is essential when companies disregard the law and jeopardize health through pollution.
