Columbia Riverkeeper v. Port Of Vancouver

357 P.3d 710, 189 Wash. App. 800
CourtCourt of Appeals of Washington
DecidedAugust 25, 2015
Docket46130-7-II
StatusPublished
Cited by5 cases

This text of 357 P.3d 710 (Columbia Riverkeeper v. Port Of Vancouver) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Columbia Riverkeeper v. Port Of Vancouver, 357 P.3d 710, 189 Wash. App. 800 (Wash. Ct. App. 2015).

Opinion

¶1

Maxa, J.

Columbia Riverkeeper and the Northwest Environmental Defense Center (Riverkeeper) appeal the *803 trial court’s partial summary judgment order dismissing two of their six claims against the Port of Vancouver. Riverkeeper’s claims relate to the Port’s agreement to lease property to the Tesoro Corporation and Savage Companies (Tesoro/Savage) for construction of a crude oil transportation facility. Riverkeeper asserts that the Port violated the State Environmental Policy Act (SEPA), chapter 43.21C RCW, in entering into the lease agreement.

¶2 The parties agree that the Port’s execution of the lease is contingent on the project’s certification by the Energy Facility Site Evaluation Council (Council) 1 following preparation of an environmental impact statement (EIS) and ultimate approval by the governor, pursuant to the “Energy Facility Site Locations Act” (EFSLA), chapter 80.50 RCW. However, Riverkeeper claims that the Port violated SEPA by entering into an agreement to lease the property to Tesoro/Savage for the project before the Council issued its EIS. Riverkeeper also claims that the Port violated EFSLA regulations because the lease agreement with Tesoro/Savage limits the Port’s choice of reasonable alternatives available for the facility.

¶3 We hold that the Port’s decision to enter into the lease agreement (1) was exempt from SEPA’s EIS requirement under RCW 80.50.180, an EFSLA provision, because the lease agreement involved the approval of the location of an energy facility; and (2) did not violate WAC 197-11-070(1), a SEPA regulation, because the lease agreement does not limit the choice of reasonable alternatives available to the Council and the governor for the facility during the site certification process. Accordingly, we affirm the trial court’s order granting partial summary judgment in favor of the Port.

*804 FACTS

¶4 In late 2012, the Port solicited proposals from companies interested in developing a crude oil terminal on its property. In early 2013, it selected Tesoro/Savage as the most suitable companies for such a project. The Port negotiated a lease agreement with Tesoro/Savage and then approved that agreement at a public meeting in July 2013. However, because of concerns over the procedure used at that meeting, the Port voted a second time to approve the lease agreement at another public meeting in October 2013.

¶5 The lease agreement provides for a 10-year lease (extendable for two 5-year terms at Tesoro/Savage’s option) following construction of the terminal facility. But before the construction or lease periods begin, either party may terminate the agreement if any conditions precedent are not satisfied. The primary condition precedent is that “all necessary licenses, permits and approvals have been obtained for the Permitted Use.” Clerk’s Papers (CP) at 288. This provision requires Tesoro/Savage to acquire full regulatory approval for its operations before it may begin construction or use of the land. 2 Therefore, either the Port or Tesoro/Savage may terminate the agreement before the lease begins if Tesoro/Savage cannot obtain full regulatory approval.

¶6 The lease agreement describes the activities to be allowed on the land, which include the loading and unloading of crude oil from rail lines, the storage of crude oil, and the loading of crude oil onto marine vessels. The agreement also requires Tesoro/Savage to maintain pollution liability insurance with limits of $25 million.

¶7 Before approving the lease agreement, the Port did not prepare an EIS and did not formally assess whether one *805 was required under SEPA. The chair of the Council advised the Port that the Council would have sole responsibility for environmental review as part of the site certification process under EFSLA. After the parties executed the lease agreement, Tesoro/Savage applied to the Council for site certification as required under EFSLA. The Council determined that environmental review under SEPA was necessary and declared that it would prepare an EIS for the project.

¶8 Riverkeeper filed suit against the Port, asserting six claims relating to the Port’s execution of the lease agreement. Claim five alleged that the Port “violated SEPA by approving the lease for the petroleum products terminal before the completion of either a determination of nonsig-nificance or an EIS.” CP at 14. Claim six alleged that the Port “violated SEPA by taking action - approval and execution of the lease for the proposed petroleum products terminal - that limits the choice of reasonable alternatives concerning the proposal before completion of either a determination of nonsignificance or an EIS.” CP at 15.

¶9 The trial court granted the Port’s summary judgment motion regarding these two claims. The trial court ruled that RCW 80.50.180 exempts execution of the lease agreement from SEPA’s EIS requirement and that execution of the lease agreement did not limit the reasonable range of alternatives to be considered in the review of the project. The trial court subsequently entered final judgment on claims five and six under CR 54(b).

¶10 Riverkeeper appeals the trial court’s grant of partial summary judgment on claims five and six.

ANALYSIS

A. Standard of Review

¶11 We review a trial court’s grant of summary judgment de novo, engaging in the same inquiry as the trial court. Int’l Longshore & Warehouse Union, Local 19 v. City *806 of Seattle, 176 Wn. App. 512, 519, 309 P.3d 654 (2013) (ILWU). Summary judgment is proper if there are no issues of material fact and the moving party is entitled to judgment as a matter of law. CR 56(c).

B. Scope of EFSLA Exemption

¶12 Riverkeeper argues that SEPA applies to the Port’s proprietary decision to lease public property to Tesoro/ Savage, and therefore that the Port violated SEPA by entering into the lease agreement before completion of an EIS. We disagree because under RCW 80.50.180, the Port’s decision to enter into the lease agreement involved the approval or authorization of the location of an energy facility and therefore is exempt from SEPA’s EIS requirement.

1. SEPA EIS Requirement

¶13 In order to ensure that the government agencies consider the impact of their actions on the natural environment, SEPA requires agencies to submit an EIS before pursuing “major actions significantly affecting the quality of the environment.” RCW 43.21C.030

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Cite This Page — Counsel Stack

Bluebook (online)
357 P.3d 710, 189 Wash. App. 800, Counsel Stack Legal Research, https://law.counselstack.com/opinion/columbia-riverkeeper-v-port-of-vancouver-washctapp-2015.