FPL Energy Maine Hydro LLC v. Department of Environmental Protection

2007 ME 97, 926 A.2d 1197, 2007 Me. LEXIS 98
CourtSupreme Judicial Court of Maine
DecidedJuly 26, 2007
StatusPublished
Cited by39 cases

This text of 2007 ME 97 (FPL Energy Maine Hydro LLC v. Department of Environmental Protection) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FPL Energy Maine Hydro LLC v. Department of Environmental Protection, 2007 ME 97, 926 A.2d 1197, 2007 Me. LEXIS 98 (Me. 2007).

Opinion

SILVER, J.

[¶ 1] FPL Energy Maine Hydro LLC appeals from a judgment entered in Superior Court (Kennebec County, Marden, J.) affirming the Board of Environmental Protection’s denial of water quality certification for the Flagstaff Storage Project, owned and operated by FPL. The Board’s *1199 denial reversed an earlier decision by the Department of Environmental Protection, which certified the Project. FPL argues that (1) because the Board acted after the one-year statutory deadline, either the Department waived certification or the Board’s reversal of the Department’s determination is ineffective; (2) the Board applied the wrong standard when analyzing the water quality; and (3) the Board erred in concluding that the Flagstaff Project does not meet the Class C water quality standards of 38 M.R.S.A. § 465(4) (2001 & Supp.2003). 1 Because the Board’s interpretation of the statute, the statute it is charged with administering, is reasonable, we affirm.

I. BACKGROUND

[¶2] This case concerns the Flagstaff Storage Project, which consists of a dam, known as the Long Falls Dam, a reservoir, called Flagstaff Lake, and appurtenant facilities. The Project is located on the Dead River in Somerset and Franklin counties. Originally constructed between 1948 and 1950, the dam was intended to control flooding, enhance log driving, and generate electricity.

[¶ 3] The Federal Power Commission, now called the Federal Energy Regulatory Commission (FERC), originally licensed the Project to the Central Maine Power Company (CMP) from April 12, 1979, to December 31, 1997. Before expiration of the Project’s license, CMP filed two applications: one with the Department to obtain water quality certification, which would allow the Project to continue; and another with FERC requesting a new license for the Project. 2 CMP subsequently withdrew its application to the Department for water quality certification and refiled it once each year between 1997 and 1999. 3 FPL acquired the Project from CMP in 1999.

[¶ 4] FPL continued to refile the application for renewal of the Project until November 15, 2002, when FPL made its final filing. On November 14, 2003, 364 days later, the Department granted water quality certification for the continued operation of the Project. Specifically, when analyzing the aquatic habitat of Flagstaff Lake, the Department found in relevant part that, “[t]he available evidence indicates that the structure and function of the resident biological community in Flagstaff Lake is the structure and function that would be expected to exist in a water storage reservoir with a drawdown of similar magnitude,” 4 and it, therefore, con- *1200 eluded that FPL’s proposal for managing water levels would be sufficient to meet applicable water quality standards.

[¶ 5] Subsequent to the certification, a group of non-governmental organizations, including Maine Rivers, Trout Unlimited, Appalachian Mountain Club, and the Natural Resources Council of Maine, filed a timely appeal of the order to the Board. The Town of Eustis, where part of the Dead River is located, also filed an appeal and requested a public hearing.

[¶ 6] On July 15, 2004, the Board issued a judgment, vacating the Department’s decision and denying, without prejudice, FPL’s application for water certification. The Board found that the Department had employed a new standard for assessing water quality when it used an impoundment-to-impoundment standard, which compares a storage reservoir to another storage reservoir with similar drawdowns. 5 The old standard, referenced by the Board in its decision, is a natural lake standard, which compares a storage reservoir to a natural lake.

[¶ 7] Having found that the Department used a new standard for assessing the water quality of the Project, the Board concluded that in order to obtain certification for this Project under the impoundment-to-impoundment standard, either the Department has to obtain EPA approval for its new standard or FPL should conduct a use attainability analysis (UAA), a review conducted when a state seeks to create a water sub-classification with less stringent standards. The Board also rejected FPL’s argument that, regardless of whether an impoundment-to-impoundment standard applies, the Project meets Class C standards as a matter of law because it does not discharge a pollutant,' as required by 38 M.R.S.A. § 465(4X0 (2001) and 38 M.R.S. § 361-A (2006). 6

[¶ 8] On August 9, 2004, FPL filed a petition for review of the Board’s judgment to the Superior Court. On May 26, 2006, the court entered a judgment affirming the Board’s decision to deny water quality certification. The Superior Court concluded that the Board’s interpretation of the standard for water quality certification is entitled to deference, and thus, FPL should either obtain EPA approval for its impoundment-to-impoundment standard or it should conduct a UAA to recalibrate the water quality standards for water storage reservoirs. The court also concluded that the federal Water Quality Act requires certification because the Project releases a “discharge,” and is, thus, subject to existing water quality standards.

*1201 [¶ 9] While certification was pending at the state level, FERC, the agency in charge of issuing federal licenses, was also taking action on FPL’s application for a federal license. On March 30, 2004, after the Department granted certification, FERC issued an order granting FPL a new license for the Flagstaff Project. FPL Energy Maine Hydro LLC, 106 FERC ¶ 62,232 (2004). The Appalachian Mountain Club filed a request for rehearing, and while the request was pending, the Board issued its order denying certification. FPL Energy Maine Hydro LLC, 108 FERC ¶ 61,261 (2004). On September 21, 2004, FERC stayed its new license application because of the Board’s denial of certification. Id. FPL filed a request for rehearing and on April 19, 2005, FERC denied FPL’s request. FPL Energy Maine Hydro LLC, 111 FERC ¶ 61,104 (2005).

[¶ 10] On June 9, 2006, FPL filed a notice of this appeal to us.

II. STANDARD OF REVIEW

[If 11] Generally, “[statutory construction is a question of law, subject to de novo review,” however, “[w]hen a dispute involves an agency’s interpretation of a statute it administers, the agency’s interpretation, although not conclusive, is entitled to great deference and will be upheld unless the statute plainly compels a contrary result.” Town of Eagle Lake v. Comm’r, Dep’t of Educ., 2003 ME 37, ¶¶ 7-8, 818 A.2d 1034, 1037 (quotation marks omitted). When the statute is ambiguous, we will “review whether the agency’s construction is reasonable.” Id. ¶ 8, 818 A.2d at 1037 (quotation marks omitted).

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Bluebook (online)
2007 ME 97, 926 A.2d 1197, 2007 Me. LEXIS 98, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fpl-energy-maine-hydro-llc-v-department-of-environmental-protection-me-2007.