Delmarva Power & Light Co. v. Tulou

729 A.2d 868, 1998 Del. Super. LEXIS 741, 1998 WL 1029241
CourtSuperior Court of Delaware
DecidedDecember 4, 1998
DocketC.A. Nos. 98C-02-220 SCD, 98A-04-011 SCD
StatusPublished
Cited by1 cases

This text of 729 A.2d 868 (Delmarva Power & Light Co. v. Tulou) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Delmarva Power & Light Co. v. Tulou, 729 A.2d 868, 1998 Del. Super. LEXIS 741, 1998 WL 1029241 (Del. Ct. App. 1998).

Opinion

MEMORANDUM OPINION

DEL PESCO, Judge.

This case concerns the adoption of Regulation No. 37 by the Delaware Department of Natural Resources and Environmental Control (“DNREC” or “the Department”). The plaintiffs contend the regulation was adopted without a reasonable basis on the record. They seek to have the regulation vacated and remanded to the Department.

Although the business of air quality regulation is very complex, there are a number of statutory relationships which must be understood in order to make sense of the arguments of the petitioners. As is so often true, there is also an alphabet soup of terminology which seems to be unavoidable.

In its simplest form, the discussion begins with the Clean Air Act (“CAA”).1 The goal of the CAA is to reduce air pollutants. One method for accomplishing that goal is to empower the Environmental Protection Agency (“EPA”) to establish, through a process not pertinent here, national ambient air quality standards [870]*870(“NAAQS”). The NAAQS are the maximum acceptable concentrations of air pollutants, such as ozone, that will protect public health and welfare.2 The NAAQS for ozone have been established at 0.12 parts per million of ozone, calculated on a 1-hour average basis.3 Ozone is not emitted directly from emission sources. Instead, it is formed in the lower-atmosphere by the reaction of other substances in sunlight. Pertinent to this discussion is the fact that emissions believed to contribute to ozone are nitrogen oxides (“NOx”). There is some uncertainty in the scientific community as to the role of NOx emissions in the formation of ozone.4

Two of Delaware’s three counties, New Castle and Kent, fail to meet the NAAQS;5 those counties are nonattainment areas.6 That being the case, the State has a strong interest in taking steps to reduce its emissions in order to avoid various sanctions that can be imposed by the federal government in years to come.

Another part of the amended CAÁ requires our attention. Since emissions cross state boundaries and can contribute to ozone formation, Congress included a provision that specifically addresses the phenomenon of windborn transport of pollutants. This section creates the Northeast Ozone Transport Region (“OTR”) and Ozone Transport Commission (“OTC”), of which Delaware and eleven other states and the District of Columbia are a part.7 Through this structure, states collectively may consider whether to recommend to the EPA (by majority vote) “additional control measures” for ozone beyond the measures required by other provisions of the CAA.8

If the OTC decides to recommend any additional control measures, the commission is required to “transmit such recommendations to the Administrator” of the EPA for the Administrator’s further consideration.9 This is significant because it demonstrates that the OTC lacks any power itself to impose additional control measures. Additional measures can only be imposed by the Administrator of the EPA after publication, public comment and a well-defined process of implementation.10

The amended CAA has resulted in a variety of regulatory activities. The activity at issue here arises from the fact that in September 1995 the OTC adopted a document entitled “Memorandum of Understanding (“MOU”) Among the States of the Ozone Transport Commission on Development of a Regional Strategy Concerning the Control of Stationary Source Nitrogen Oxide Emissions.”11 The MOU contemplates that member states will undertake additional rulemaking at the state level to further reduce NOx emissions from major stationary sources.12 The MOU did not commit any states to the adoption of a specific rule; in fact, it specifically contemplated that the states could consider alternative approaches that achieve “equivalent reductions ... in an equitable manner.”13 The MOU also contemplated the existence of a “regionwide” [871]*871system for trading NOx emission allowances, an integral part of the plan contemplated by the MOU.14

After the signing of the MOU, representatives of the OTC, in consultation "with industry representatives, developed the Budget Model Rule (“Model Rule”).15 The Model Rule was made available on May 1, 1996. It was not developed using rule-making procedures, or on the basis of a public record, and it does not have any regulatory or other binding effect on Delaware or any other state in the OTR.

While it is clear that no state would be bound to adopt the model rule, the opportunity to implement a regional plan, particularly as it relates to the trading [buying and selling] of NOx emission allowances, depends on substantial similarity of the programs among the involved states.

On November 1, 1997, the Department published in the Delaware Register of Regulations a proposed rule, designated as Regulation No. 87,16 which it described as intended to implement the 1994 OTR MOU. The Regulation closely followed the model rule. The Department relied on 7 Del. C. Chapter 60 as the basis of its rulemaking authority.17 That statute provides:

The Secretary [of DNREC] may adopt ... rules or regulations, or plans, after public hearing, to effectuate the policy and purposes of this chapter. No such rule or .regulation shall extend, modify or conflict with any law of this State or the reasonable implications thereof.18

The Delaware Code further requires that any regulations assure the “reasonable and beneficial use”19 of the States’s resources, and the “adequate supplies [of such resources] for domestic, industrial, power, agricultural, recreational and other beneficial uses.”20

On appeal, the plaintiffs argue that the Department has failed to meet the requirements of the Delaware Administrative Procedures Act which requires the agency to provide: notice of its proposed action;21 an opportunity for public comment;22 “[a] brief summary of the evidence and information submitted;”23 “[a] brief summary of its findings of fact with respect to the evidence and information;”24 ánd “[a] decision ... supported by its findings on the evidence and information received.”25

The Administrative Procedures Act also permits an agency to “designate a subordinate to organize, classify, summarize and make recommendations with respect to the materials.”26 In this instance, a hearing officer was designated. A public hearing was held on December 8, 1997 to receive comment. The record was left open for three days to receive additional comments. The Division of Air Quality Management (“AQM”) prepared a Memorandum in response to the comments dated December 18, 1997.27 The Hearing Officer’s Report (“Report”) was issued on December 22, 1997.28 The Report, a copy of which is [872]

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Bluebook (online)
729 A.2d 868, 1998 Del. Super. LEXIS 741, 1998 WL 1029241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delmarva-power-light-co-v-tulou-delsuperct-1998.