Sierra Club Challenges RUS Lien Accommodation Regulation


The Sierra Club has broadened its campaign against approvals granted by the Rural Utilities Service (RUS) related to new coal plants involving electric cooperatives. Having previously challenged specific RUS approvals, the Sierra Club recently filed suit challenging the overall validity of the RUS regulation on which such approvals are based. Approvals, including lien accommodations, granted by RUS pursuant to loan agreements are excluded from environmental review under this regulation. This facial challenge to RUS’s regulation has implications for all RUS borrowers.

As previously reported, the Sierra Club is engaged in an aggressive campaign to stop the construction of new coal plants. In a lawsuit filed more than two years ago, the Sierra Club challenged specific RUS approvals related to Sunflower Electric Power Corporation’s expansion of its coal-fired Holcomb plant in Kansas. The Sierra Club alleged that such approvals were invalid because they were granted in the absence of any environmental review under the National Environmental Policy Act (NEPA). Even though the expansion will be financed with private funds, the Sierra Club sued to rescind the approvals. Sierra Club v. USDA, Docket No. 1:07-cv-01860-EGS (D.D.C. filed Oct. 16, 2007).

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Eversheds Sutherland (US) LLP | Attorney Advertising

Written by:


Eversheds Sutherland (US) LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.