Lakosh v. Alaska Department of Environmental Conservation

49 P.3d 1111, 156 Oil & Gas Rep. 361, 2002 Alas. LEXIS 91
CourtAlaska Supreme Court
DecidedJune 28, 2002
DocketNo. S-9619
StatusPublished
Cited by1 cases

This text of 49 P.3d 1111 (Lakosh v. Alaska Department of Environmental Conservation) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lakosh v. Alaska Department of Environmental Conservation, 49 P.3d 1111, 156 Oil & Gas Rep. 361, 2002 Alas. LEXIS 91 (Ala. 2002).

Opinion

OPINION ON REHEARING

BRYNER, Justice.

I. INTRODUCTION

In 1990, after the Exxon spilled more than 280,000 barrels of crude oil into Prince William Sound, the Alaska legislature strengthened Alaska's oil spill contingency plan statute by adding to the existing provisions, which required the use of "best available technology," a new provision that required all contingency plans to meet a set of specified response planning standards. After the Department of Environmental Conservation (DEC) adopted regulations to implement the new response standards and the best available technology requirement, Tom Lakosh sued DEC, challenging two aspects of its regulation defining best available technology. The superior court granted summary judgment to the state, and Lakosh appealed. Because the challenged regulation conflicts with the authorizing statute, we reverse and remand.

II. FACTS AND PROCEEDINGS

In 1980 the Alaska legislature, finding that "it is a matter of the highest urgency and priority to protect Alaska's coastal and inside water, estuaries, wetlands, beaches, and land from the damage which may be occasioned by the discharge of oil," enacted Alaska's Oil Pollution Control Act.1 One provision of the Act, AS 46.04.0830, required persons engaged in various oil-related activities to file and obtain DEC's approval of oil spill prevention and contingency plans.2

As originally enacted, this statute simply required that oil spill prevention and contin-geney plans "provide for the use of the best available technology by the applicant." 3 But in 1990, the year after the Exxon VaupEz ran aground in Prince William Sound, the legislature strengthened the statute to require that all contingency plans meet legislatively specified response planning standards for containing, controlling, and cleaning up spills.4 At the same time, the legislature retained a slightly modified version of the best available technology requirement, specifying that contingency plans "must provide for use ... of the best technology that was available at the time the contingency plan was submitted or renewed." 5

The legislature left the phrase "best available technology" undefined but directed DEC to "establish the procedures and time limits applicable to agency review of contingency plans."6 To address this directive, DEC formed a working group comprising various stakeholders from the regulated industries, environmental and other public interest groups, local governments, and DEC representatives. The group held public workshops, published notices of proposed regulations in various newspapers, and received comments regarding the regulatory definition of best available technology. Tom Lakosh participated in the workshops and submitted written comments voicing his dis[1114]*1114approval of the regulations. But the regulations were ultimately adopted, and their definition of best available technology took effect on April 4, 1997.

Lakosh filed a declaratory judgment action in superior court, challenging the new definition of best available technology as inconsistent with the underlying statutory requirements set out in AS 46.04.080(e). Superior Court Judge John Reese granted summary judgment in favor of DEC, upholding the regulations. Lakosh appeals, challenging two aspects of the regulations' definition of best available technology.

III. DISCUSSION

A. Standard of Review

We review a grant of summary judgment de novo.7 We exercise our independent judgment to determine whether administrative regulations are valid and to interpret the underlying statutory language.8 When an agency has adopted regulations under a delegation of authority from the legislature and using the process prescribed by the Administrative Procedure Act,9 we presume that the regulations are valid and place the burden of proving otherwise on the challenging party.10 We limit our review to "whether the regulation{s)][are] consistent with and reasonably necessary to carry out the purposes of the statutory provisions .... [and] whether the regulation[s][are] reasonable and not arbitrary." 11

In making the consistency determination, we use our independent judgment unless the "issue involves agency expertise or the determination of fundamental policy questions on subjects committed to an agency." 12 If the issue involves agency expertise, we review under the reasonable basis standard and defer to the ageney if its interpretation is reasonable.13 We also employ rational basis review in deciding whether a regulation is necessary to implement the statute 14 and whether a regulation is reasonable and not arbitrary.15

B. Statutory and Regulatory Provisions

Alaska Statute 46.04.030(a) provides that "[al person may not cause or permit the operation of an oil terminal facility in the state unless an oil discharge prevention and contingency plan for the facility has been approved by [DEC] and the person is in compliance with the plan." 16 Moreover, subsection .080(k) further requires that contingency plan holders be able to comply with specified standards. The subsection sets specific spill containment and cleanup response planning standards 17 and commands

[1115]*1115plan holders to maintain, or have available under contract, "sufficient oil discharge containment, storage, transfer, and cleanup equipment, personnel, and. resources to meet" these standards.18 DEC has adopted regulations setting analogous performance standards that plan holders must meet with respect to oil spill prevention.19 And finally, subsection .080(e) requires that oil spill contingency plans also "provide for the use by the applicant of the best technology that was available at the time the contingency plan was submitted or renewed."

It is this latter provision, subsection .080(e)'s best available technology requirement, that is in controversy here. DEC chose to adopt a three-tiered approach for determining whether a contingency plan provides for the use of the best available technology.20 The first tier of the definition, set out in 18 AAC 75.445(k)(1), covers cleanup and containment technology governed by the oil spill response planning standards mandated by AS 46.04.030(k); cleanup and containment technology included in this tier meets the best available technology requirement if it is capable of complying with the statutory cleanup and containment standards-that is, if the technology "as a whole" is "appropriate and reliable for the intended use as well as the magnitude of the applicable response planning standard." 21

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Related

Lakosh v. ALASKA DEPT. OF ENVIRON. CONSERV.
49 P.3d 1111 (Alaska Supreme Court, 2002)

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Bluebook (online)
49 P.3d 1111, 156 Oil & Gas Rep. 361, 2002 Alas. LEXIS 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lakosh-v-alaska-department-of-environmental-conservation-alaska-2002.