Northern Alaska Environmental Center v. State, Department of Natural Resources

2 P.3d 629, 2000 Alas. LEXIS 52
CourtAlaska Supreme Court
DecidedJune 2, 2000
DocketS-9367
StatusPublished
Cited by43 cases

This text of 2 P.3d 629 (Northern Alaska Environmental Center v. State, Department of Natural Resources) 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
Northern Alaska Environmental Center v. State, Department of Natural Resources, 2 P.3d 629, 2000 Alas. LEXIS 52 (Ala. 2000).

Opinion

OPINION

FABE, Justice.

I. INTRODUCTION

The Department of Natural Resources granted Golden Valley Electric Association a right-of-way permit for the construction of an electric transmission line across sixty-five miles of state land between Healy and Fairbanks. DNR claims that this permit is exempted from the best interest finding requirement of AS 38.05.085(e) due to its revocable nature. Because the permit is not revocable for purposes of AS 38.05.035(e)(6)(C), we reverse and remand to DNR for a best interest finding. 1

II FACTS & PROCEEDINGS

In 1993 the legislature appropriated $48.2 million for the construction of a second electric transmission line between Healy and Fairbanks (Northern Intertie). 2 In August 1996 Golden Valley Electric Association (Golden Valley), a not-for-profit electric cooperative, applied to the Department of Natural Resources (DNR), Division of Lands for a right-of-way permit to build the Northern Intertie. In its permit application, Golden Valley sought a right-of- way 150 feet wide and sixty-five miles long, encompassing an area of approximately 1,200 acres.

Because potential routes for the Northern Intertie crossed federal lands, Golden Valley also sought approval from the Bureau of Land Management (BLM). BLM prepared an Environmental Impact Statement for the proposed intertie that analyzed at least seven alternative routes. The Final Environmental Impact Statement, issued in June 1998, ree-ommended construction of the Northern In-tertie along the "Rex/South" route.

In that same month, DNR issued its proposed decision, which also recommended construction of the Northern Intertie along the Rex/South route. DNR explicitly relied on the Final Environmental Impact Statement as the basis for its proposed decision. 3 Following a month-long comment period, DNR issued its decision, which recommended granting Golden Valley a thirty-year right-of-way permit along the Rex/South route. Northern Alaska Environmental Center (Northern Center) appealed DNR's decision to the Commissioner of Natural Resources. After briefing and oral arguments, the commissioner remanded the Northern Intertie decision to DNR to address fully DNR's role in the environmental assessment and route selection processes.

On February 22, 1999, DNR issued its decision on remand. DNR concluded that the right-of-way permit was specifically exempted from the AS 88.05.035(e) best interest finding requirement 4 because: (1) it was "a permit or other authorization revocable by the commissioner," 5 and (2) it did not dispose of an interest in land. Instead, DNR determined that AS 38.05.850(a) governed the issuance of the permit: DNR "shall give *633 preference to that use of the land that will be of greatest economic benefit to the state and the development of its resources." 6 In making this determination, DNR considered whether any competing uses of the Rex/ South route would bring greater economic benefit. DNR ultimately concluded that the "Northern Intertie [gave] the greatest economic benefit to the state" and authorized the issuance of the right-of-way permit.

Consistent with this decision on remand, DNR issued the right-of-way permit to Golden Valley, effective February 22, 1999. The permit, entitled "Land Use Permit Under AS 38.05.850," contains the following provision: "This permit is not a property right. It is a temporary authorization, revocable by the state with or without cause. This permit is effective beginning February 22, 1999, and ending on February 21, 2004, unless sooner terminated at the state's discretion." Further, Golden Valley's "right-of-way permit will be issued for a term of thirty years and will be subject to renewal."

Northern Center requested reconsideration of DNR's decision on remand. The commissioner rejected this request on March 26, 1999. Northern Center and Sierra Club filed an appeal in superior court. The superior court affirmed DNR's grant of the right-of-way permit.

Northern Center and Sierra Club appeal.

III, DISCUSSION

A. Standard of Review

When the superior court acts as an intermediate court of appeal, we give no deference to its decision." 7 Rather, we review the merits of the administrative agency determination directly. 8 The standard of review for agency decisions of law depends on whether agency expertise is implicated. We apply the "reasonable basis" test to questions of law involving agency expertise but apply the "substitution of judgment" test where no expertise is involved. 9 The substitution of judgment standard thus applies where the agency's expertise provides little guidance to the court or where the case concerns "statutory interpretation or other analysis of legal relationships about which courts have specialized knowledge and expertise." 10

The parties disagree about whether DNR's expertise is implicated by its interpretation of AS 38.05.035(e). The statutory interpretations contested on appeal are: (1) whether the right-of-way permit is a "disposal" of an "interest in land" within the meaning of AS 38.05.035(e) and (2) whether the permit is "revocable" within the meaning of AS 38.05.035(e)(6)(C). 11

We review the agency's interpretation of such non-technical statutory terms under the substitution of judgment standard. 12 In State v. Aleut Corp., 13 we reviewed whether the Division of Lands had complied with AS

*634 38.05.305 prior to conducting a public land auction. 14 The Division of Lands contended that the reasonable basis test applied to its interpretations of "adjacent to," "other organized community," and "local authorized planning agencies." 15 In rejecting the reasonable basis approach, we concluded:

The terms of AS 88.05.305 are not technical, and mere familiarity in their application by the Division of Lands does not render that agency any better able to discern the intent of the legislature than the courts. We will therefore apply our own independent judgment as to whether the agency's interpretation complies with the legislature's intent. [16]

In light of this precedent, we conclude that the interpretation of the terms "disposal," "interest in land," and "revocable" does not implicate agency expertise or broad policy formulations.

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Bluebook (online)
2 P.3d 629, 2000 Alas. LEXIS 52, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-alaska-environmental-center-v-state-department-of-natural-alaska-2000.