South Dearborn Environmental Improvement Assn v. Deq

CourtMichigan Supreme Court
DecidedJuly 17, 2018
Docket154524
StatusPublished

This text of South Dearborn Environmental Improvement Assn v. Deq (South Dearborn Environmental Improvement Assn v. Deq) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
South Dearborn Environmental Improvement Assn v. Deq, (Mich. 2018).

Opinion

Michigan Supreme Court Lansing, Michigan

Syllabus Chief Justice: Justices: Stephen J. Markman Brian K. Zahra Bridget M. McCormack David F. Viviano Richard H. Bernstein Kurtis T. Wilder Elizabeth T. Clement This syllabus constitutes no part of the opinion of the Court but has been Reporter of Decisions: prepared by the Reporter of Decisions for the convenience of the reader. Kathryn L. Loomis

SOUTH DEARBORN ENVIRONMENTAL IMPROVEMENT ASSOCIATION, INC v DEPARTMENT OF ENVIRONMENTAL QUALITY

Docket Nos. 154524 and 154526. Argued on application for leave to appeal March 6, 2018. Decided July 17, 2018.

South Dearborn Environmental Improvement Association, Inc. (South Dearborn) and several other environmental groups petitioned the Wayne Circuit Court for judicial review of a decision of the Department of Environmental Quality (DEQ) to issue a permit to install (PTI) for an existing source under the Natural Resources and Environmental Protection Act (NREPA), MCL 324.101 et seq. In 2006, the DEQ issued Severstal Dearborn, LLC (Severstal) a PTI that authorized the rebuilding of a blast furnace and the installation of three air pollution control devices at Severstal’s steel mill. In the years that followed, the permit was revised twice; each successive permit modified and replaced the preceding permit. Emissions testing performed in 2008 and 2009 revealed that several emission sources at the steel mill exceeded the level permitted. The DEQ sent Severstal a notice of violation, and after extended negotiations, they entered into an agreement, pursuant to which Severstal submitted an application for PTI 182- 05C, the PTI at issue in this case. The DEQ issued the permit on May 12, 2014, stating that the purpose of PTI 182-05C was to correct inaccurate assumptions about preexisting and projected emissions and to reallocate emissions among certain pollution sources covered by the PTI. On July 10, 2014, 59 days after PTI 182-05C was issued, South Dearborn and several other environmental groups appealed the DEQ’s decision in the circuit court. AK Steel Corporation (AK Steel) purchased the steel mill a short time later and moved to dismiss the action, arguing that the circuit court lacked jurisdiction over the appeal because South Dearborn’s petition was untimely filed. According to AK Steel, South Dearborn’s right to appeal a PTI for an existing source was based in MCL 600.631 of the Revised Judicature Act, MCL 600.101 et seq., and therefore the period in which to file an appeal was governed by MCR 7.123(B)(1) and MCR 7.104(A), which require that an appeal be filed within 21 days after the issuance of the permit. The court, Daniel A. Hathaway, J., denied AK Steel’s motion to dismiss, holding that South Dearborn’s petition for judicial review was timely filed because MCL 324.5506(14) governed the PTI appealed in this case and, therefore, South Dearborn had 90 days to file the petition. AK Steel appealed in the Court of Appeals, and the Court of Appeals, RIORDAN P.J., and SAAD and M. J. KELLY, JJ., affirmed the result but on different grounds, holding that the appeals period outlined in MCL 324.5506(14) applies only to operating permits and that MCL 600.631 and MCR 7.119 governed this appeal because, in its view, the contested-case provisions of the Administrative Procedures Act (APA), MCL 24.201 et seq., applied to the permitting decision pursuant to MCL 24.291(1). Accordingly, the Court of Appeals held that the petition was timely because it was filed within the 60-day period provided by MCR 7.119 and MCR 7.104(A). 316 Mich App 265 (2016). AK Steel sought leave to appeal in the Supreme Court, and the DEQ filed a separate application raising nearly identical arguments. The Supreme Court consolidated the applications and scheduled oral argument on whether to grant the applications or take other action. 500 Mich 966 (2017).

In an opinion by Justice BERNSTEIN, joined by Justices MCCORMACK, VIVIANO, and CLEMENT, the Supreme Court, in lieu of granting leave to appeal, held:

The final sentence of MCL 324.5505(8) recognizes the right to judicial review of the issuance or denial of a permit to install for an existing source in accordance with MCL 600.631 and provides that an appeal of such a permit action is governed by MCL 324.5506(14). MCL 324.5506(14) provides 90 days to seek judicial review of a decision to issue or deny a permit to install for an existing source. A petition for judicial review of the issuance or denial of any of the types of permits for an existing source that are governed by MCL 324.5505 and MCL 324.5506 must be filed within 90 days of the DEQ’s final permit action. Accordingly, the trial court correctly denied AK Steel’s motion to dismiss because the petition for judicial review was timely filed. Given that decision, Part III(B) of the Court of Appeals opinion was vacated as moot.

1. The final sentence of MCL 324.5505(8) provides that appeals of permit actions for existing sources are subject to MCL 324.5506(14). The plain language of this sentence indicates that a court must turn to MCL 324.5506(14) for the rules governing appeals of permit actions for an existing source, including appeals in the circuit court in accordance with MCL 600.631. The last sentence of MCL 324.5505(8) does not merely notify the reader of the contents of MCL 324.5506(14); reading the last sentence as a mere descriptor of the contents of MCL 324.5506(14) would strip it of any independent meaning or legal purpose. Rather, by saying that appeals of permit actions for existing sources are “subject to” MCL 324.5506(14), the last sentence of MCL 324.5505(8) instructs the reader that a right to appeal certain permit actions for an existing source, including a right to appeal in the circuit court in accordance with MCL 600.631, exists and is subject to MCL 324.5506(14). By using the phrase “subject to” in MCL 324.5505(8), the Legislature indicated its intent that MCL 324.5505(8) and MCL 324.5506(14) be read together, not in isolation. Reading MCL 324.5505(8) as working with MCL 324.5506(14) gives the full text of both statutes independent meaning and avoids reducing the final sentence of MCL 324.5505(8) to a mere descriptor of the next section. Additionally, the general reference to “permit actions” in the final sentence of MCL 324.5505(8), rather than a reference to a specific type of permit, indicates that appeals of all three permit types listed in the first sentence of MCL 324.5505(8) are contemplated. Accordingly, appeals of permit actions that are subject to MCL 324.5506(14) include, at a minimum, appeals of the issuance or denial of a permit to install, a general permit, or a permit to operate for an existing source.

2. The fourth sentence of MCL 324.5506(14) provides that a petition for judicial review is the exclusive means of obtaining judicial review of a permit and shall be filed within 90 days after the final permit action. The term “a permit” does not only refer to the operating permits described in the immediately preceding sentence of MCL 324.5506(14), which provides, in pertinent part, that any person may appeal the issuance or denial of an operating permit in accordance with MCL 600.631. Rather, MCL 324.5506(14) must be read together with MCL 324.5505(8), and the cross-reference in MCL 324.5505(8) to MCL 324.5506(14) demonstrates that appeals of the issuance or denial of a permit are subject to MCL 324.5506(14) when the permit is for an existing source. Furthermore, the presence of the indefinite article “a” preceding the word “permit” in MCL 324.5506(14) suggests that the statute refers to more than one type of permit.

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South Dearborn Environmental Improvement Assn v. Deq, Counsel Stack Legal Research, https://law.counselstack.com/opinion/south-dearborn-environmental-improvement-assn-v-deq-mich-2018.