Mathis v. Iowa Utilities Board

CourtSupreme Court of Iowa
DecidedMay 3, 2019
Docket18-1184
StatusPublished

This text of Mathis v. Iowa Utilities Board (Mathis v. Iowa Utilities Board) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mathis v. Iowa Utilities Board, (iowa 2019).

Opinion

IN THE SUPREME COURT OF IOWA No. 18–1184

Filed May 3, 2019

BERTHA MATHIS and STEPHEN MATHIS,

Appellants,

vs.

IOWA UTILITIES BOARD,

Appellee,

and

PALO ALTO WIND ENERGY, L.L.C. and MIDAMERICAN ENERGY COMPANY,

Appellees,

PALO ALTO COUNTY BOARD OF SUPERVISORS,

Appellee.

Appeal from the Iowa District Court for Palo Alto County, Nancy L.

Whittenburg, Judge.

Landowners appeal a district court order affirming a declaratory

order issued by the Iowa Utilities Board. AFFIRMED.

Wallace L. Taylor of Law Offices of Wallace L. Taylor, Cedar Rapids,

and John M. Murray of Murray and Murray, Storm Lake, for appellants.

Cecil I. Wright II, Assistant General Counsel, and Emily Willits,

Assistant Attorney General, for appellee Iowa Utilities Board. 2

Bret A. Dublinske and Brant M. Leonard of Fredrikson & Byron,

P.A., Des Moines, for appellees Palo Alto Wind Energy, L.L.C. and

MidAmerican Energy Company.

Sheila K. Tipton and Haley R. Van Loon of Brown, Winick, Graves,

Gross, Baskerville & Schoenebaum, PLC, Des Moines, and Peter C. Hart,

Palo Alto County Attorney, for appellee Palo Alto County Board of

Supervisors. 3

MANSFIELD, Justice.

In this case we are asked to review a longstanding Iowa Utilities

Board (IUB) legal standard for when a series of wind turbines constitute

an “electric power generating plant or combination of plants at a single

site” within the meaning of Iowa Code section 476A.1(5) (2017). The

statute itself does not provide an obvious answer. Each wind turbine on

its own generates energy, but wind turbines are often combined into “wind

farms” or “wind projects” dispersed over a wide geographic area. So what

is “a single site”?

Since 1997, in over twenty separate proceedings, the IUB has

provided a consistent middle-path answer. It has ruled that for wind

energy purposes all turbines connected to a single gathering line shall be

considered a “single site” or “facility.” Turbines connected to separate

gathering lines are treated by the IUB as different sites or facilities. This

ruling means that a large wind project may avoid the need for a certificate

of public convenience, use, and necessity because it does not meet certain

minimum power output requirements, although the IUB has authority to

waive that requirement in some circumstances in any event.

Here, landowners in Palo Alto County are challenging a large 170-

turbine wind project. They contend the IUB should have exercised

jurisdiction over it by treating it as one facility. The IUB declined to require

a certificate for the facility because, under the common-gathering-line

standard, it did not exceed the minimum power output requirements. This

meant that the County, rather than the IUB, had primary oversight over

the project. The district court upheld the IUB’s position.

On our review, we conclude the legislature has not clearly vested the

IUB with authority to interpret Iowa Code section 476A.1(5). Nonetheless,

after reviewing the chapter as a whole and considering other factors 4

relevant to statutory interpretation, we cannot find fault with the IUB’s

interpretation of an inherently ambiguous term. For this reason, we affirm

the judgment of the district court upholding the IUB’s declaratory order.

I. Facts and Procedural History.

This case involves a wind energy project in Palo Alto County

consisting of 170 wind turbines. Each turbine has a capacity of two

megawatts; the overall capacity of the project is up to 340 megawatts of

energy.

Palo Alto Wind Energy, L.L.C. (PAWE) submitted a “site plan” to the

County for the project. The project extends over a wide swath of

farmland—approximately 50,000 acres (about eighty square miles) in four

separate townships.

Each turbine would have a hub height of 95 meters and a rotor

diameter of 110 meters. Thus, from the ground to the tip of the rotor

would measure 150 meters.

Bertha and Stephen Mathis live in Palo Alto County. On December

5, 2017, they filed a petition for declaratory order with the IUB. The

Mathises sought a ruling that the project was a “facility” within the

meaning of Iowa Code section 476A.1(5) for which a certificate of public

convenience, use, and necessity from the IUB was required before the

project could go forward. 1

Iowa Code section 476A.1(5) defines a facility as

any electric power generating plant or a combination of plants at a single site, owned by any person, with a total capacity of twenty-five megawatts of electricity or more and those associated transmission lines connecting the generating plant

1Previously,the Mathises had filed a declaratory judgment action with the Iowa District Court of Palo Alto County. This was dismissed for failure to exhaust administrative remedies. 5 to either a power transmission system or an interconnected primary transmission system or both. Iowa Code § 476A.1(5) (emphasis added). Since 1997, in recognition of the “single site” language in the

definition of “facility,” the IUB has consistently taken the position that a

wind project comprising multiple turbines and extending over a geographic

expanse does not constitute a single “facility.” Rather, in the context of a

wind energy project, “ ‘facility’ refers to the wind turbines connected to a

common gathering line.” Zond Dev. Corp., Docket Nos. DRU-97-5, DRU-

97-6, at 6 (November 6, 1997). Thus, in Zond, where the wind turbines

were dispersed over 20 square miles (for one project) and 15 square miles

(for another), but the subset of turbines connected to a common gathering

line never exceeded twenty-five megawatts in power capacity, the IUB

concluded that there was no covered “facility” for which a certificate of

public convenience, use, and necessity was required. Id. at 5, 6. It is not

disputed that the IUB has followed Zond in approximately twenty different

regulatory proceedings since 1997.

On December 22, 2017, the Palo Alto County Board of Supervisors

(Board), MidAmerican Energy Company (MidAmerican), PAWE, the

Environmental Law & Policy Center, and the Iowa Environmental Council

were granted leave to intervene in the Mathises’ declaratory order

proceeding. Later, Interstate Power and Light was allowed to intervene.

On February 2, 2018, the Iowa Utilities Board issued its declaratory order, finding,

The Board has ruled on the issue presented by Petitioners on several prior occasions, beginning with its order in Zond Development Corporation, Docket Nos. DRU-97-5 and DRU-97-6. In Zond, the Board found that “facility” “refers to the wind turbines connected to a common gathering line.” Zond, “Declaratory Ruling” (November 6, 1997). On multiple occasions the Board has confirmed the gathering line standard as its interpretation of “facility.” See e.g., MWW 6 Holdings, LLC and Storm Lake Power Partners I, LLC, “Order Granting Waiver,” Docket No. WRU-2015-0001-3700 (February 6, 2015) (“[I]f the capacity of turbines connected to a single gathering or feeder line is less than 25 MW of nameplate capacity, there is no facility as defined in Iowa Code § 476A.1(5).”); MidAmerican Energy Company, “Declaratory Order,” Docker No.

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