Caithness Rica Ltd. Partnership v. Malachowski

619 A.2d 833, 1993 R.I. LEXIS 21, 1993 WL 14480
CourtSupreme Court of Rhode Island
DecidedJanuary 27, 1993
Docket92-276-M.P.
StatusPublished
Cited by6 cases

This text of 619 A.2d 833 (Caithness Rica Ltd. Partnership v. Malachowski) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caithness Rica Ltd. Partnership v. Malachowski, 619 A.2d 833, 1993 R.I. LEXIS 21, 1993 WL 14480 (R.I. 1993).

Opinion

OPINION

FAY, Chief Justice.

The petitioners, Caithness RICA Limited Partnership, Newbay Corporation, and Rhode Island Cogeneration Associates, L.P. (collectively Newbay), have filed a petition for certiorari pursuant to G.L.1956 (1988 Reenactment) § 42-98-12 and G.L.1956 (1990 Reenactment) § 39-5-2 to review a Report and Order of the Energy Facility Siting Board (EFSB). On May 15, 1992, the EFSB ruled that it has jurisdiction over Newbay’s proposed coal-fired cogeneration facility (facility) and ordered Newbay to submit a licensing application to the EFSB. Newbay raises seven specifications of error in support of its claim that the EFSB wrongly assumed jurisdiction over New-bay’s proposed facility. For the reasons stated herein, we find that the EFSB incorrectly determined that the facility satisfied its jurisdictional threshold.

In 1988 the General Assembly created a procedure governing the siting of major *835 energy facilities in Rhode Island. As codified in G.L.1956 (1988 Reenactment) chapter 98 of title 42, the Energy Facility Siting Act (siting act) delineated two mutually exclusive licensing paths for electric generating facilities proposed for construction. Those facilities “designed or capable of operating at a gross capacity of 80 megawatts or more” must submit a licensing application to the EFSB. Section 42-98-3. Alternatively, facilities that fall below the eighty-megawatt threshold must adhere to the piecemeal permitting process involving state and local licensing agencies. Both the EFSB and the state licensing agencies have exclusive jurisdiction. Thus, if an application to construct and site an energy facility is properly before the EFSB, no state or local licensing agency will hold concurrent jurisdiction, and vice versa. See §§ 42-98-2(D) and 42-98-12(A).

Newbay intends to construct and operate a combined-cycle cogeneration facility immediately east of the Seekonk River in East Providence. Newbay has a contractual commitment to sell approximately 72.5 megawatts of electricity to the New England Power Company and eleven member utilities of the Massachusetts Municipal Light Company. Newbay also plans to sell process steam to a manufacturing plant that is to be built adjacent to Newbay’s plant. Realizing that its facility would require less than 7.5 megawatts of electricity for internal purposes, Newbay contends that it is not required to obtain a license from the EFSB because the facility’s gross electric capacity falls below the siting act’s 80-megawatt jurisdictional threshold. Relying on this premise, Newbay began its long journey down the path of state and local licensing proceedings. Suddenly, as Newbay neared the end of its tumultuous licensing odyssey, the EFSB decided sua sponte to conduct an investigatory hearing to determine whether Newbay’s proposed facility was within the EFSB’s exclusive jurisdiction. In response, Newbay sought and obtained a preliminary injunction from the Superior Court enjoining the EFSB’s jurisdictional proceeding. The injunction was vacated by this court, which decision thereby allowed the hearing to go forward. See Newbay Corp. v. Malachowski, 599 A.2d 1040 (R.I.1991).

After conducting an extensive five-day hearing that included four days of testimony and a day of public comment, the EFSB released a Report and Order finding that the total power capacity of Newbay’s proposed facility exceeded eighty megawatts. In reaching this conclusion, the EFSB majority interpreted Newbay’s total electric generating capacity to include all forms of energy produced by the facility, including the steam that Newbay had contracted to sell. According to the EFSB, the energy content of the steam must be measured in British thermal units (Btus) and then converted by an arithmetic formula to an equivalent megawatt value. Adding the steam’s megawatt value to the facility’s electric generating value, the EFSB concluded that the gross generating capacity of Newbay’s facility exceeded eighty megawatts. The EFSB also dismissed Newbay’s argument that the addition of several design criteria prevented the facility from exceeding the siting act’s eighty-megawatt jurisdictional threshold. Although acknowledging that such refinements and changes would curtail the facility’s gross capacity, the EFSB majority concluded that “it is appropriate that we measure electric generating capacity for jurisdictional purposes as of the date our investigation began.” In other words, since these limiting controls were not a part of Newbay’s design when the EFSB began its investigation on July 30, 1991, the EFSB found the facility’s electric output capable of exceeding eighty megawatts. Accordingly the EFSB directed Newbay to file an application to the EFSB for siting approval pursuant to § 42-98-3(A). The EFSB chairman, James J. Malachowski (Malachowski), dissented from the majority’s decision. He claimed that the majority erred by including the energy value of steam in calculating the gross electrical capacity of New-bay’s proposed facility. Malachowski opined that the majority’s inclusion of steam was inapposite to the siting act’s plain meaning and was nothing more than “an opportunistic and selective attempt to *836 stretch the jurisdictional power of the Board.”

On May 20,1992, Newbay filed a petition for the issuance of a writ of certiorari, seeking reversal of the EFSB’s decision. This court then issued an order requiring Newbay to show cause why we should not quash the writ as interlocutory. After hearing oral arguments, we issued an order on September 17,1992, discharging the previous show cause order and setting the case for full argument. See Caithness RICA Limited Partnership v. Malachowski, No. 92-276-M.P. (order filed Sept. 17, 1992).

Notwithstanding the extensive media coverage and political hype surrounding this case, the task before this court is straightforward and simple. We must decide whether the EFSB, pursuant to its authority under the siting act, was correct in holding that Newbay’s facility was within its jurisdictional grasp. It is a basic tenet of statutory construction that if the language of a statute is “clear on its face, then the plain meaning of the statute must be given effect.” Gilbane Co. v. Poulas, 576 A.2d 1195, 1196 (R.I.1990). In the absence of equivocal or ambiguous language, the wording of the statute must be applied literally and cannot be interpreted or extended. State v. LaPlume, 118 R.I. 670, 683, 375 A.2d 938, 944 (1977). We have consistently prevented state administrative agencies from expanding their jurisdiction through strained interpretations of unambiguous statutes. See City of East Providence v. Public Utilities Comm’n, 566 A.2d 1305, 1308 (R.I.1989).

Applying this standard of statutory construction, we find the siting act’s language to be plain and unambiguous. As stated in § 42-98-4, “No person shall site, construct or alter a major energy facility within the state without first obtaining a license” from the EFSB. A “major energy facility” is defined as a facility “for the generation of electricity

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619 A.2d 833, 1993 R.I. LEXIS 21, 1993 WL 14480, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caithness-rica-ltd-partnership-v-malachowski-ri-1993.