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1. 21 July 2008
   at 9:05 a.m.

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   DougCounty (Anonymous) says…

   A more complete, better article from subscription site www.eenews.net:Judge refuses to dismiss coal plant expansion case (07/18/2008)Katherine Boyle, E&ENews PM reporterA federal judge refused today to toss out a lawsuit by environmentalists over government approval of loan restructuring that allowed the expansion of a coal-fired power plant in Holcomb, Kan.The Sierra Club argued in the District Court for the District of Columbia that the federal Rural Utilities Service was required by law to weigh the environmental consequences of and possible alternatives to the planned expansion of the Sunflower Electric Power Corp. plant before approving the restructuring.The Justice Department's Brian Toth said the case should be dismissed because the Rural Utilities Service merely approved the deals and did not loan Sunflower money for the expansion. Approvals are not subject to National Environmental Policy Act review, he said, adding that it was in the government's interest to approve the company's loan restructuring to ensure it paid off its government debt.But Nick Persampieri, an Earthjustice attorney representing the Sierra Club, argued the government had subordinated its lien to allow private financing for the new construction.Both sides differed over whether the restructuring approval constituted a major federal action, with the Sierra Club saying it did and the government arguing it was “minor.”Judge Emmet Sullivan said he was troubled that no environmental impact study was required. “This is more than restructuring debt,” he said. “This is restructuring debt with new construction going on.”:The group has until Sept. 8 to amend the complaint. The government will have until Nov. 10 to add documents to the administrative record. Earthjustice will be able to file objections until Dec. 19, and the government must respond by Jan. 21.The judge has scheduled a status hearing for Feb. 19, 2009.Sullivan suggested that in the meantime, the Sierra Club could present a settlement option to the government.But Persampieri said a settlement is not likely. “It's kind of all-or-nothing,” he said, noting that the government would have to agree to an environmental impact statement.”The government has indicated they're not interested at this point,” he added.