Clean Wisconsin, Inc. v. DNR

2021 WI 72
Wisconsin Supreme Court·Decided July 8, 2021·No. 2018AP000059·Published·Cited by 20 cases

Opinion

2021 WI 72

SUPREME COURT OF WISCONSIN CASE NO.: 2018AP59

COMPLETE TITLE: Clean Wisconsin, Inc. and Pleasant Lake Management

District,

Petitioners-Respondents,

v.

Wisconsin Department of Natural Resources, Respondent-Appellant,

Wisconsin Manufacturers & Commerce, Dairy Business Association, Midwest Food Processors Association, Wisconsin Potato & Vegetable Growers Association, Wisconsin Cheese Makers Association, Wisconsin Farm Bureau Federation, Wisconsin Paper Council and Wisconsin Corn Growers Association, Intervenors-Co-Appellants, Wisconsin Legislature,

Intervenor.

ON CERTIFICATION FROM THE COURT OF APPEALS

OPINION FILED: July 8, 2021 SUBMITTED ON BRIEFS: ORAL ARGUMENT: April 12, 2021

SOURCE OF APPEAL:

COURT: Circuit COUNTY: Dane JUDGE: Valerie Bailey-Rihn

JUSTICES: DALLET, J., delivered the majority opinion of the Court, in which ZIEGLER, C.J., ANN WALSH BRADLEY, and KAROFSKY, JJ., joined. REBECCA GRASSL BRADLEY, J., filed a dissenting opinion, in which ROGGENSACK, J., joined. NOT PARTICIPATING: HAGEDORN, J., did not participate.

ATTORNEYS:

For the intervenor, there were briefs filed by Eric M.

McLeod, Kirsten A. Atanasoff, Lisa M. Lawless, and Husch Blackwell LLP, Madison and Milwaukee. There was an oral argument by Eric M. McLeod.

For the intervenors-co-appellants, there were briefs file by Robert I. Fassbender and Great Lakes Legal Foundation, Madison. There was an oral argument by Robert I. Fassbender.

For the petitioners-respondents, there was a brief file by Carl A. Sinderbrand and Axley Brynelson, LLP, Madison. There was an oral argument by Carl Sinderbrand.

For the respondent-appellant, there was a brief filed by Gabe Johnson-Karp and Jennifer L. Vandermeuse assistant attorneys general; with whom on the brief was Joshua L. Kaul, attorney general, Madison. There was an oral argument by Gabe Johnson-Karp.

An amicus curiae brief was filed on behalf of Central Sands Water Action Coalition by Andrea Gelatt, Rob Lundberg, Adam Voskuil, and Midwest Environmental Advocates, Madison.

An amicus curiae brief was filed on behalf of Wisconsin Trout Unlimited, Inc. by Henry E. Koltz and Schmidt, Darling & Erwin, Milwaukee.

2021 WI 72

NOTICE

This opinion is subject to further editing and modification. The final version will appear in the bound volume of the official reports.

No. 2018AP59 (L.C. Nos. 2016CV2817, 2016CV2818, 2016CV2819, 2016CV2820, 2016CV2821, 2016CV2822, 2016CV2823, 2016CV2824)

STATE OF WISCONSIN : IN SUPREME COURT

Clean Wisconsin, Inc. and Pleasant Lake Management District,

Petitioners-Respondents,

v.

Wisconsin Department of Natural Resources,

Respondent-Appellant, FILED Wisconsin Manufacturers & Commerce, Dairy JUL 8, 2021 Business Association, Midwest Food Processors Association, Wisconsin Potato & Vegetable Sheila T. Reiff Growers Association, Wisconsin Cheese Makers Clerk of Supreme Court Association, Wisconsin Farm Bureau Federation, Wisconsin Paper Council and Wisconsin Corn Growers Association,

Intervenors-Co-Appellants, Wisconsin Legislature, Intervenor.

DALLET, J., delivered the majority opinion of the Court, in which ZIEGLER, C.J., ANN WALSH BRADLEY, and KAROFSKY, JJ., joined. REBECCA GRASSL BRADLEY, J., filed a dissenting opinion, in which ROGGENSACK, J., joined.

HAGEDORN, J., did not participate.

No. 2018AP59

APPEAL from a judgment and an order of the Circuit Court for Dane County, Valerie Bailey-Rihn, Judge. Modified and affirmed, and, as modified, cause remanded.

¶1 REBECCA FRANK DALLET, J. One of the Department of Natural Resources' (DNR) many responsibilities is to evaluate applications to operate high capacity groundwater wells. For certain wells, the DNR must follow a specific environmental review process before approving the application. For all other wells, that process is not required, although the DNR sometimes still considers the potential environmental effects of a proposed well when evaluating the well's application. The eight well applications at issue here fall into the latter category: a formal environmental review was not required, but the DNR had information that the wells would negatively impact the environment. Despite that knowledge, the DNR approved the applications after concluding it had no authority to consider

the proposed wells' environmental effects.

¶2 Clean Wisconsin, Inc. and the Pleasant Lake Management

District (collectively, "Clean Wisconsin") appealed that decision to the circuit court.1 They argued that the DNR's decision was contrary to Lake Beulah Management District v. DNR, 2011 WI 54, 335 Wis. 2d 47, 799 N.W.2d 73, where we held that the DNR had the authority and discretion to consider the

The Honorable Valerie 1 Bailey-Rihn of the Dane County Circuit Court presided.

No. 2018AP59

environmental effects of all proposed high capacity wells. The DNR argued that Lake Beulah is no longer good law because Wis. Stat. § 227.10(2m) (2019-20),2 enacted at roughly the same time we decided Lake Beulah, limits an agency's actions to only those "explicitly required or explicitly permitted by statute or by a rule," and, for these wells, a formal environmental review was not required under Wis. Stat. § 281.34.3 Thus, the question presented is whether § 227.10(2m) commands a different conclusion here than in Lake Beulah. The circuit court decided that it does not and we agree. We hold that the DNR erroneously interpreted the law when it concluded it had no authority to consider the environmental effects of the eight wells at issue here. Accordingly, we affirm the circuit court's order with the modification that the circuit court remand all eight well applications to the DNR.

I

¶3 Consolidated in this case are eight permit applications for high capacity wells, all of which were filed

2 All references to the Wisconsin Statutes are to the 2019-20 version.

3 The DNR "shall review" a well application "using the environmental review process in its rules" when a proposed well is "located in a groundwater protection area," loses more than 95 percent of the water it withdraws, or "may have a significant environmental impact on a spring." Wis. Stat. § 281.34(4)(a).

No. 2018AP59

between March 2014 and April 2015.4 At the time, and consistent with our holding in Lake Beulah, the DNR's common practice was to review environmental-impact information for most high capacity well applications, regardless of whether Wis. Stat. § 281.34(4)(a) required such a review. If the review revealed that the proposed well would cause adverse environmental effects, the DNR would either deny the application or place it "on hold," neither denying nor approving it. For all eight wells at issue here, the DNR flagged the applications for further review of their potential environmental impacts. For seven of the wells,5 it completed that review and determined that approving the well would adversely affect waters covered by the public trust doctrine.6 The DNR then placed all eight well applications on hold.

The well owners and respective case numbers are: Lutz, 4

2016CV2817; Pavelski, 2016CV2818; Peplinski, 2016CV2819; Frozene, 2016CV2820; Turzinski, 2016CV2821; Laskowski, 2016CV2822; Lauritzen, 2016CV2823; Derousseau, 2016CV2824. There is no dispute that all eight wells are "high-capacity wells" as defined in Wis. Stat. § 281.34(1)(b).

A 5 DNR scientist had recommended investigating the Turzinski well's effect on the headwaters of a nearby creek, but the DNR approved the application before collecting any evidence on those potential effects.

Rooted in the Wisconsin Constitution, the public trust 6

doctrine requires the state to protect its "navigable waters" for the public's benefit. See Wis. Const. art. IX, § 1; Movrich v. Lobermeier, 2018 WI 9, ¶¶25-29, 379 Wis. 2d 269, 905 N.W.2d 807.

No. 2018AP59

¶4 While those applications were on hold, the DNR's well-

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