Empire Power Co. v. N. C. Department of Environment

447 S.E.2d 768, 337 N.C. 569, 1994 N.C. LEXIS 492
CourtSupreme Court of North Carolina
DecidedSeptember 9, 1994
Docket570PA93
StatusPublished
Cited by69 cases

This text of 447 S.E.2d 768 (Empire Power Co. v. N. C. Department of Environment) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Empire Power Co. v. N. C. Department of Environment, 447 S.E.2d 768, 337 N.C. 569, 1994 N.C. LEXIS 492 (N.C. 1994).

Opinion

WHICHARD, Justice.

The dispositive question is whether petitioner George Clark is entitled under the North Carolina Administrative Procedures Act, N.C.G.S. § 150B-1 to -53 (1991), and the Air Pollution Control Act, N.C.G.S. § 143-215.105 to -215.114C (1993), to appeal to the Office of Administrative Hearings from the decision of the Department of Environmental Management, to grant an air pollution control permit to Duke Power Company. We hold that he is, and we thus reverse the Court of Appeals.

I.

On 4 September 1991 respondent Department of Environment, Health and Natural Resources, Division of Environmental Management (“DEHNR”), gave public notice that it had awarded a draft air quality permit to intervenor-respondent Duke Power Company (“Duke Power”) for the construction and operation of sixteen combustion turbine electric generating units at the Lincoln Combustion Turbine Station (“LCTS”) in Lincoln County, North Carolina. Petitioner Empire Power Company (“Empire Power”) submitted written comments opposing finalization of the draft permit. Petitioner George Clark (“Clark”), who lives with his family on property immediately adjacent to the proposed LCTS, submitted written comments and spoke at a public hearing, also opposing finalization of the draft permit. On 20 December 1991 DEHNR finalized the draft permit, issuing Permit No. 7171 to Duke Power for the LCTS.

On 10 January 1992 Empire Power filed a petition for a contested case hearing with the Office of Administrative Hearings (“OAH”), alleging that DEHNR had issued a final permit to Duke Power without addressing the comments filed with the State by Empire Power, without complying with federal and state law or rules in that it had failed to properly implement certain review requirements, and without requiring an environmental impact statement as required by state law. On 21 January 1992 Clark also filed a petition for a contested case hearing with the OAH, alleging that DEHNR had issued the permit in violation of its statutory duty to act on all permit applications “so as *573 to effectuate the [legislative] purpose ... by reducing existing air pollution and preventing, so far as reasonably possible, any increased pollution of the air from any additional or enlarged sources,” N.C.G.S. § 143-215.108(b) (1993); to reduce levels of ozone pollution in Mecklenburg County; to assess fully the impact of emissions of air pollutants from the LCTS on levels of ozone pollution, and, in particular, the impact of sulfur dioxide emissions from the LCTS; to require air pollution control technology adequate to control the emission of potentially harmful pollutants from the LCTS; to require Duke Power to cause air quality offsets; and to adequately address comments filed by Clark and other members of the public during the public comment period.

The OAH consolidated the contested cases for hearing and allowed Duke Power to intervene therein. Both DEHNR and Duke Power filed motions to dismiss the contested cases in the OAH for lack of subject matter jurisdiction. On 13 August 1992 the Administrative Law Judge assigned to the case found that the OAH had subject matter jurisdiction, and accordingly denied respondents’ motions to dismiss.

On 18 August 1992 respondents DEHNR and Duke Power filed a Petition for Writ of Certiorari in the Superior Court, Wake County, to review that order. On 18 August 1992 the court allowed the Petition for Writ of Certiorari ex parte, stayed the contested case proceedings before the OAH, and set the case for hearing. On 8 September 1992 Clark filed a motion to dismiss respondents’ Petition for Writ of Certiorari. Finding that OAH has jurisdiction over petitions for review of grants of air pollution control permits by parties other than permit-tees or permit applicants, the court, on 22 September 1992, allowed Clark’s motion to dismiss the judicial proceeding, and remanded the case to the OAH.

DEHNR and Duke Power appealed the dismissal of their Petition for Writ of Certiorari to the Court of Appeals, and, as noted, the Court of Appeals reversed the trial court’s order. It held that third-party petitioners may not seek a contested case hearing to challenge DEHNR’s issuance of an air pollution control permit. Empire Power Co. and Clark v. N.C. Dept. of E.H.N.R., 112 N.C. App. 566, 570, 436 S.E.2d 594, 597 (1993). It reasoned that the language of the organic statute, N.C.G.S. § 143-215.108(e), provided only the permit applicant or permittee the right to commence a contested case hearing, notwithstanding the language of the North Car *574 olina Administrative Procedure Act (“NCAPA”), N.C.G.S. Ch. 150B (1991). Id. Relying on Batten v. N.C. Dept. of Correction, 326 N.C. 338, 342-43, 389 S.E.2d 35, 38 (1990), the court reasoned that “the [NC]APA only ‘describe[s] the procedures’ for OAH review in the event the North Carolina General Assembly [in the organic statute] vests a party with the right to administrative review, such as a contested case hearing.” Empire and Clark, 112 N.C. App. at 570, 436 S.E.2d at 597. The court also held that third-party petitioners are nonetheless entitled to judicial review of DEHNR’s decision to issue an air pollution control permit to Duke Power under Article 4 of the NCAPA. Id. at 573, 436 S.E.2d at 599. We allowed Clark’s petition for discretionary review on 3 March 1994.

On this appeal, Clark contends that respondents’ reliance upon Batten is misplaced, and that he is an aggrieved person entitled to an administrative hearing under the NCAPA to appeal from the decision of DEHNR to issue a permit to Duke Power to construct the LCTS. For the following reasons, we conclude that respondents’ reliance upon Batten is misplaced, and that construing the relevant statutes in pari materia, as we must, Clark is an “aggrieved person” entitled to appeal the decision to the OAH. Accordingly, we reverse the decision of the Court of Appeals, and remand the case to the Superior Court, Wake County, for reinstatement of its order.

II.

We stated in Batten:

The jurisdiction of the OAH over the appeals of state employee grievances derives not from Chapter 150B, but from Chapter 126. The administrative hearing provisions of Article 3, Chapter 150B, do not establish the right of a person “aggrieved” by agency action to OAH review of that action, but only describe the procedures for such review.

Batten, 326 N.C. at 342-43, 389 S.E.2d at 38 (emphasis added). Relying on this language, respondents contend that the NCAPA cannot confer upon petitioners the right to an administrative hearing in the OAH. Rather, they contend, the right to an administrative hearing must be expressly set forth in the organic statute, N.C.G.S. ch. 143, art. 21B (“Air Pollution Control”).

Batten involved the grievance of an employee of the Department of Correction, an agency expressly exempted from application of the administrative hearing provisions of the NCAPA. See

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Bluebook (online)
447 S.E.2d 768, 337 N.C. 569, 1994 N.C. LEXIS 492, Counsel Stack Legal Research, https://law.counselstack.com/opinion/empire-power-co-v-n-c-department-of-environment-nc-1994.