In re Application of Duke Energy Ohio, Inc. (Slip Opinion)

2021 Ohio 3301, 187 N.E.3d 472, 166 Ohio St. 3d 438
CourtOhio Supreme Court
DecidedSeptember 22, 2021
Docket2020-0511
StatusPublished
Cited by2 cases

This text of 2021 Ohio 3301 (In re Application of Duke Energy Ohio, Inc. (Slip Opinion)) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Application of Duke Energy Ohio, Inc. (Slip Opinion), 2021 Ohio 3301, 187 N.E.3d 472, 166 Ohio St. 3d 438 (Ohio 2021).

Opinion

[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as In re Application of Duke Energy Ohio, Inc., Slip Opinion No. 2021-Ohio-3301.]

NOTICE This slip opinion is subject to formal revision before it is published in an advance sheet of the Ohio Official Reports. Readers are requested to promptly notify the Reporter of Decisions, Supreme Court of Ohio, 65 South Front Street, Columbus, Ohio 43215, of any typographical or other formal errors in the opinion, in order that corrections may be made before the opinion is published.

SLIP OPINION NO. 2021-OHIO-3301 IN RE APPLICATION OF DUKE ENERGY OHIO, INC., FOR A CERTIFICATE OF ENVIRONMENTAL COMPATIBILITY AND PUBLIC NEED FOR THE C314V CENTRAL CORRIDOR PIPELINE EXTENSION PROJECT; WALTZ, CITY MGR., ET AL., APPELLANTS; POWER SITING BOARD, APPELLEE; DUKE ENERGY OHIO,

INC., INTERVENING APPELLEE. [Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as In re Application of Duke Energy Ohio, Inc., Slip Opinion No. 2021-Ohio-3301.] Power Siting Board—Natural-gas pipeline—R.C. 4906.10(A)—Certificate of environmental compatibility and public need—Determination approving construction, operation, and maintenance of a natural-gas pipeline was lawful, reasonable, and not manifestly against the weight of the evidence— Board did not misapply the statutory criteria, decide the issue on incomplete information, misweigh the evidence, or limit any parties’ ability to meaningfully participate. (No. 2020-0511—Submitted March 31, 2021—Decided September 22, 2021.) APPEAL from the Power Siting Board, No. 16-0253-GA-BTX. SUPREME COURT OF OHIO

_________________ STEWART, J. {¶ 1} Appellants, the city of Reading and its safety-service director, Patrick Ross (“Reading”); the city manager for the city of Blue Ash, David Waltz (“Blue Ash”); and Neighbors Opposed to Pipeline Extension, L.L.C. (“NOPE”), appeal an order of appellee, Ohio Power Siting Board, granting a certificate of environmental compatibility and public need to intervening appellee, Duke Energy Ohio, Inc., for the construction, operation, and maintenance of a natural-gas pipeline in Hamilton County. The appellants argue, among other things, that the board misapplied the statutory criteria governing certificate approval, decided the case on incomplete information, misweighed the evidence, and limited their ability to meaningfully participate. We disagree and affirm. I. FACTUAL BACKGROUND {¶ 2} In March 2016, Duke notified the board that it would soon be applying for a certificate of environmental compatibility and public need to construct a natural-gas pipeline. Duke filed the application about five months later, stating that it had decided to reduce the pipeline’s proposed diameter from 30 to 20 inches and its proposed operating pressure from 600 to 400 pounds per square inch gauge. {¶ 3} Duke refiled and amended the application in January 2017, stating that the pipeline formed part of its “long-term planning process to retire propane- air plants, balance system supply from north to south, and support the replacement of aging infrastructure.” To this end, Duke proposed two routes for the pipeline: a preferred route and an alternate route. Both routes would start at a point near the intersection of Hamilton, Warren, and Butler Counties and run approximately 13 to 14 miles in a mostly north-to-south direction through Hamilton County. The preferred route would end in Fairfax; the alternate route in Norwood. {¶ 4} The board notified Duke in March 2017 that the application had been certified as sufficiently complete. In May 2017, the board’s staff filed its

2 January Term, 2021

investigatory report on the proposal, recommending that the board grant a certificate for the alternate route because, among other things, that route presented fewer adverse effects on the project area. {¶ 5} In August 2017, Duke filed a motion to stay the proceedings, explaining that it needed additional time to investigate concerns associated with specific sites along the alternate route. The board granted the motion. {¶ 6} In April 2018, Duke asked the board to reestablish the proceedings (the board later did so) and filed a six-part supplement to the application. Duke explained that prior to the time the staff had filed its report recommending the alternate route, its focus had been on the preferred route, for which the design was partially complete and soil borings, utility locations, and surveying had been significantly completed. Duke took additional time during the stay to investigate the alternate route and meet with stakeholders, which led it to modify the alternate route’s path to reduce the impact of construction on affected municipalities and businesses. Minor alignment changes, Duke said, would continue to be implemented as the engineering design progressed. {¶ 7} Duke provided supplemental reports in July 2018, one addressing a Superfund site and the other addressing environmental risks associated with specific properties. {¶ 8} In March 2019, the staff filed an amended investigatory report that replaced and superseded its May 2017 report. The amended report accounted for Duke’s supplemental information and reports and, as before, recommended that the board consider the alternate route, subject to conditions. {¶ 9} In November 2019, after a three-day evidentiary hearing, the board issued a lengthy order in which it determined that the proposed pipeline met the criteria of R.C. 4906.10(A) and granted Duke a certificate for the construction, operation, and maintenance of the pipeline along the alternate route, subject to 41 conditions. Several parties sought rehearing of the board’s order, which the board

3 SUPREME COURT OF OHIO

denied. Reading, Blue Ash, NOPE, and the village of Evendale then filed this appeal. {¶ 10} During the appeal’s pendency, we denied a motion to stay the board’s order, 159 Ohio St.3d 1413, 2020-Ohio-3275, 147 N.E.3d 654, and dismissed Evendale’s assignments of error and sua sponte dismissed Evendale as a party, 159 Ohio St.3d 1467, 2020-Ohio-3884, 150 N.E.3d 120. II. STANDARD OF REVIEW {¶ 11} We apply the same standard of review to a board order that we would apply to an order of the Public Utilities Commission of Ohio (“PUCO”). See In re Application of Black Fork Wind Energy, L.L.C., 138 Ohio St.3d 43, 2013-Ohio- 5478, 3 N.E.3d 173, ¶ 10, citing R.C. 4906.12. Under this standard, we will reverse, vacate, or modify a board order “if, upon consideration of the record, [we are] of the opinion that such order was unlawful or unreasonable.” R.C. 4903.13. We “will not reverse or modify a board decision as to questions of fact when the record contains sufficient probative evidence to show that the board’s decision was not manifestly against the weight of the evidence and was not so clearly unsupported by the record as to show misapprehension, mistake or willful disregard of duty.” In re Application of Champaign Wind, L.L.C., 146 Ohio St.3d 489, 2016-Ohio- 1513, 58 N.E.3d 1142, ¶ 7. Our review of legal questions is de novo. Id. III. ANALYSIS A. Whether Duke provided adequate information about the pipeline (Reading proposition of law No. 1; Blue Ash proposition of law No. 2) 1. Reading’s arguments {¶ 12} Under Ohio law, an applicant for a gas-pipeline certificate must file with the board’s chairperson “[s]uch * * * information * * * as the board by rule or order may require.” R.C. 4906.06(A)(6). By rule, the application “shall include fully developed information on two * * * routes,” one designated as a “preferred” route and the other as an “alternate” route. Ohio Adm.Code 4906-3-05. Each route

4 January Term, 2021

“shall be a viable alternative on which the applicant could construct the proposed facility.” Id. Within 60 days of receiving the application, the chairman shall either accept it as complete and in compliance with R.C.

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Bluebook (online)
2021 Ohio 3301, 187 N.E.3d 472, 166 Ohio St. 3d 438, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-application-of-duke-energy-ohio-inc-slip-opinion-ohio-2021.