Molly Petty v. Virginia Department of Environmental Quality

Court of Appeals of Virginia·Decided September 10, 2024·No. 0928233·Unpublished

Opinion

COURT OF APPEALS OF VIRGINIA UNPUBLISHED

Present: Judges Ortiz, Friedman and White Argued at Richmond, Virginia

MOLLY PETTY, ET AL.

v. Record No. 0928-23-3

VIRGINIA DEPARTMENT OF

ENVIRONMENTAL QUALITY, ET AL. MEMORANDUM OPINION* BY JUDGE DANIEL E. ORTIZ

JEFFREY SCOTT, ET AL. SEPTEMBER 10, 2024

v. Record No. 0929-23-3

VIRGINIA DEPARTMENT OF

ENVIRONMENTAL QUALITY, ET AL.

FROM THE CIRCUIT COURT OF BOTETOURT COUNTY Joel R. Branscom, Judge

Evan D. Mayo (Tremblay & Smith, PLLC, on brief), for appellants.

Katherine E. Kulbok, Assistant Attorney General (Jason S. Miyares, Attorney General; Charles H. Slemp III, Chief Deputy Attorney General; Leslie A.T. Haley, Deputy Attorney General; A. Ross Phillips, Senior Assistant Attorney General & Section Chief, on brief), for appellee Virginia Department of Environmental Quality.

Robert W. Loftin (John J. Woolard; Juliet B. Clark; McGuireWoods LLP, on brief), for appellee Rocky Forge Wind, LLC.

This appeal is a consolidation of two matters concerning the Virginia Department of Environmental Quality’s (“DEQ”) granting of Rocky Forge Wind, LLC’s modification of its wind power facility permit. DEQ had previously granted Rocky Forge’s initial permit to construct a wind power facility. When Rocky Forge applied to modify its initial permit, DEQ

*

This opinion is not designated for publication. See Code § 17.1-413(A).

and Rocky Forge failed to make publicly available all documentation from the initial permit application during the public comment period. In the first matter, CL20-1199,1 the circuit court found that this failure was a procedural error. Because the court could not determine whether this procedural error was harmless, it instructed DEQ to conduct a second public comment period that included all documentation from the initial permit. In the second matter, CL22-521,2 the circuit court found no error in the second public comment period. Appellants, a group of landowners that neighbor the project site,3 appeal these findings on several grounds. We conclude that (1) the circuit court did not err by deferring to DEQ’s interpretation of 9 VAC 15-40-100(B) because the statute’s language is ambiguous and DEQ has wide discretion over permit by rule (“PBR”) modifications; (2) appellants’ second assignment of error is partially waived, under Rule 5A:20, and moot because DEQ’s second public comment period corrected the claimed error; (3) the court did not err by addressing both matters in the April 7, 2023 hearing and closing both matters based on this hearing because the two matters are so interlinked; (4) the court was correct in reviewing the alleged errors under the procedural standard of review as they are procedural; and (5) the court did not abuse its discretion by declining to reconsider several of appellants’ arguments. We affirm the circuit court’s rulings.

BACKGROUND

Under Code §§ 10.1-1197.6 to 10.1-1197.11, the General Assembly directed DEQ to develop PBR regulations for small renewable energy projects that generate 150 megawatts of

1 On appeal, this is matter 0928-23-3.

2 On appeal, this is matter 0929-23-3.

3 Though both appeals are brought by neighboring landowners, the parties in each case are not identical. Virginians for Responsible Energy was originally a petitioner in CL20-1199 but withdrew as it was unclear whether the organization had standing. Jason Fender also withdrew as a petitioner in CL20-1199 and did not join the petition for CL22-521. Robert Hundley joined in the petition for CL20-1199 but did not join in the petition for CL22-521.

electricity or less. Code § 10.1-1197.6 instructed DEQ that “[t]he conditions for issuance of the permit by rule for small renewable energy projects shall include” 14 requirements. Following this, DEQ issued wind PBR regulations. See 9 VAC 15-40-10 to 9 VAC 15-40-140. The regulations at 9 VAC 15-40-30 lay out the fourteen requirements from Code § 10.1-1197.6 and add a fifteenth requirement that the applicant pay a fee to DEQ.

In 2016, Rocky Forge, whose ultimate parent company is Apex Clean Energy, Inc., submitted to DEQ a permit request for a wind power facility on the southernmost portion of North Mountain in Botetourt County. The following year, DEQ authorized the permit. This initial permit was not challenged by appellants.

Roughly three years later, Rocky Forge applied for a permit modification. The permit modification increased the height of each wind turbine from 550 feet to 680 feet, reduced the number of wind turbines from 25 to 22, and reduced the project site from 200 acres to 120 acres. Rocky Forge did not resubmit all the documentation that it had already provided to DEQ for the initial permit application. But Rocky Forge did update several of the documents it had previously submitted. DEQ approved the permit modification application.

Appellants filed a petition in matter CL20-1199. They argued that 9 VAC 15-40-100(B)

required Rocky Forge to resubmit all documentation from the initial permit application in its permit modification application. In its May 31, 2022 order, the circuit court found that “DEQ’s interpretation and application of 9 VAC § 15-40-100(B)” to not require a resubmittal was “not erroneous and is entitled to deference” and concluded that the modification was valid. The court further stated that Rocky Forge’s failure to include materials from the initial permit application for public comment “was a procedural error.” But “based on the record filed in this case, the [c]ourt [wa]s unable to determine whether this procedural error was harmless.” Therefore, the circuit court remanded the case “to DEQ so that the materials from the original 2017 PBR

application w[ould] be made available for public comment pursuant to 9 VAC § 15-40-90 along with the materials that were made available for public comment with the [m]odification [a]pplication.”

Appellants appealed this order. This Court dismissed the appeal, holding that the May 31 circuit court order was interlocutory. Following the circuit court’s order, Rocky Forge held a second public comment period and public meeting that included the application materials from the initial permit. After receiving and reviewing the required documentation, DEQ affirmed the permit modification.

Appellants, in the separate action CL22-521, argued that the permit modification was still improper. The circuit court, in its April 28, 2023 order, affirmed DEQ’s decision to approve the permit modification and issued a final order in both CL20-1199 and CL22-521. The court held that DEQ correctly determined that Rocky Forge complied with the statutory public notice, public participation, and public comment requirements and that “[a]lternatively, to the extent that DEQ has committed any error, such error was harmless.” This appeal in both matters follows.

ANALYSIS

We first analyze whether the term “new documentation required under 9VAC15-40-30”

in 9 VAC 15-40-100 is ambiguous. Because we find that the term is ambiguous, and the General Assembly granted DEQ wide discretion over PBR regulations, we defer to DEQ’s interpretation of the term. Next, we examine appellants’ second assignment of error and find it is partially waived under Rule 5A:20. So we narrowly construe the assignment of error as only alleging the circuit court erred by finding DEQ failed to adhere to the public comment requirements. As DEQ corrected this error on remand, the second assignment of error is moot. We then reject appellants’ argument that the April 7, 2023 hearing was not for both matters, and thus the court’s decision to resolve both matters did not violate their notice or due process rights. Then, we

analyze if the court applied the procedural standard of review to the alleged errors, and assuming it did, find this was correct because the alleged errors were procedural. Lastly, we find that the court did not abuse its discretion when it refused to reconsider appellants’ previously argued claims.

I. Interpretation of 9 VAC 15-40-100(B)

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