Federal judge dismisses enviro oil sands lawsuit

By Andrew Restuccia - 08/03/11 12:55 PM ET

A federal judge has dismissed a lawsuit brought by two environmental groups alleging that the Defense Department violated the law by procuring Canadian oil sands.

The Sierra Club and the Southern Alliance for Clean Energy had alleged the Defense Department violated Section 526 of a 2007 energy law that prevents the military and other agencies from buying alternative fuels that have higher greenhouse gas emissions than conventional petroleum fuels.

But United States District Judge Claude Hilton, out of the District Court for the Eastern District of Virginia, dismissed the case late last week because he said the plaintiffs lacked standing.

Canadian oil sands production results in more greenhouse gas emissions than convention oil production and has long been the target of environmental groups’ ire. The debate over the fuel has gained new prominence amid the ongoing Obama administration review of a controversial proposed pipeline that would carry oil sands from Canada to refineries on the Texas Gulf coast.

The environmental groups, Hilton said, were unable to show that the DOD contracts resulted directly in “an increased risk of harm to their health, recreational, economic, and aesthetic interests,” as they alleged.

“Plaintiffs fail to establish a reasonable probability that the [DOD actions are] responsible for the asserted harms and threats to their interests, and also fail to establish that the relief requested is capable of redressing those harms and interests,” Hilton said in the decision.

The Sierra Club downplayed the significance of the decision Wednesday, noting that it was made on procedural grounds and not the merits of the case.

"I think it’s unfortunate and it’s a disappointment," Sierra Club Beyond Oil Associate Campaign Director Kate Colarulli told The Hill. "But it’s not the disaster that it’s been made out to be.”

The U.S. Chamber of Commerce, which intervened in the lawsuit along with the American Petroleum Institute, applauded Hilton’s decision to dismiss the case.

“Today’s ruling was a victory for the many U.S. industries that produce, process, transport or rely on oil derived from Canadian oil sands — making it ultimately a victory for the consumer,” said Karen Harbert, president of the Chamber’s Energy Institute, in a statement Tuesday night.

“At this time of high energy prices and economic hardships, the last thing we should do is restrict the use of a stable, reliable fuel source which would harm our energy security and cost us jobs.”

The court decision comes as Republicans are ramping up efforts to limit or repeal Section 526. But military officials appointed under President Obama have defended Section 526.