Sugarloaf Citizens' Ass'n v. Department of Environment

686 A.2d 605, 344 Md. 271, 1996 Md. LEXIS 130
CourtCourt of Appeals of Maryland
DecidedDecember 20, 1996
Docket60 Sept. Term 1995
StatusPublished
Cited by64 cases

This text of 686 A.2d 605 (Sugarloaf Citizens' Ass'n v. Department of Environment) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sugarloaf Citizens' Ass'n v. Department of Environment, 686 A.2d 605, 344 Md. 271, 1996 Md. LEXIS 130 (Md. 1996).

Opinion

*277 ELDRIDGE, Judge.

The dispute in this case concerns the decision of the Maryland Department of the Environment (the Department) to issue two permits which authorized the construction of a solid waste incinerator near Sugarloaf Mountain in Dickerson, Maryland. A group comprised of local landowners, environmental organizations and citizens’ groups challenged the Department’s decision by filing in the Circuit Court for Montgomery County an action for judicial review under the Maryland Administrative Procedure Act, Maryland Code (1984, 1995 RepLVol.), § 10-222 of the State Government Article. 1 The circuit court dismissed the action on the ground that none of the plaintiffs had standing to seek review of the Department’s decision. The Court of Special Appeals affirmed. Sugarloaf v. Dept. of Environment, 103 Md.App. 269, 653 A.2d 506 (1995). We issued a writ of certiorari to determine whether the two courts below correctly interpreted and applied Maryland law regarding standing to maintain actions for judicial review of adjudicatory administrative decisions. Since we shall hold that both courts below erred with respect to standing, we shall also determine whether the administrative deci *278 sion should be upheld on the merits in light of the judicial review criteria set forth in the Administrative Procedure Act, § 10-222(h)(3) of the State Government Article.

I.

The Potomac Electric Power Company (PEPCO) owned a tract of land, containing over 1,000 acres, in the Dickerson area of Montgomery County, Maryland. Two generating stations operated by PEPCO and auxiliary structures were on the tract. In 1987, PEPCO and Montgomery County entered into a transaction whereby the County purchased a 35-acre portion of the PEPCO tract to build a Resource Recovery Facility which would incinerate solid waste and would produce energy for sale to PEPCO. The facility was to be designed and constructed jointly by Montgomery County and the Northeast Maryland Waste Disposal Authority.

Among the several plaintiffs who opposed the construction of this facility were the Buchanans, owners of approximately 234 acres of land immediately adjacent to the PEPCO tract. About two hundred of the Buchanans’ acres are devoted to farming, while the remaining acreage constitute woodland. 2 The Buchanans’ property is located approximately 2,000 feet from the facility, and is separated from the PEPCO property by a narrow road. 3

In 1988 Montgomery County and the Northeast Maryland Waste Disposal Authority filed an application with the Department for a Prevention of Significant Deterioration (PSD) *279 permit, the first permit in the PSD permit process required by the federal Clean Air Act, 42 U.S.C. § 7401 et seq., the Maryland Air Quality Control statutes, Code (1982, 1996 Repl. Vol.), Title 2 of the Environment Article, and implemented by the Air Management Administration of the Maryland Department of the Environment. 4

The present case had its genesis in this Court’s opinion in Sugarloaf v. Waste Disposal, 323 Md. 641, 594 A.2d 1115 (1991) (Sugarloaf I), where some of the present plaintiffs argued that they were entitled to a “contested case” administrative hearing on the application by the County and the Authority for the PSD approval permit. 5 In rejecting this argument, we held that, although a full contested case hearing was available upon an application for a construction permit, it was not available at the PSD approval stage. 6 The Court did not, however, determine whether any of the plaintiffs would have standing to seek judicial review of a Department decision *280 to issue a construction permit. Sugarloaf I, supra, 323 Md. at 650-651 n. 6, 594 A.2d at 1119 n. 6.

In light of this Court’s decision in Sugarloaf I, the Secretary of the Department delegated authority to the Office of Administrative Hearings, under Code (1984, 1995 Repl-Vol.), § 10-207 of the State Government Article, to hold a contested case hearing on the issue of whether a permit to construct should be issued to the applicants. The Secretary later expanded this authority to include consideration of whether a .refuse disposal permit should be issued. 7 The Secretary also requested that the Administrative Law Judge (ALJ) “enter *281 tain arguments on the issue of standing and make findings.” 8 Thereafter, Administrative Law Judge Suzanne S. Wagner conducted a 15-day hearing on these issues.

After the conclusion of the hearing, the ALJ submitted an opinion containing extensive findings and conclusions as well as a proposed order. The ALJ concluded: (1) the construction and refuse disposal permit applications conformed to applicable federal and state law, and the permits should be issued; (2) all of the plaintiffs lacked standing either under the Maryland Environmental Standing Act, Code (1974, 1989 RepLVol., 1995 Cum.Supp.), §§ 1-501 through 1-508 of the Natural Resources Article, or under Maryland common law principles of standing embodied in the Administrative Procedure Act, § 10-222(a) of the State Government Article, to bring an action challenging the Department’s decision to issue the permits. 9 The Department adopted, without modification, *282 the ALJ’s findings, conclusions, and proposed decision, and issued the two permits.

The plaintiffs then brought the present action in the Circuit Court for Montgomery County, seeking judicial review of the final administrative decision. The circuit court, in a brief order, dismissed the action on the ground that all of the plaintiffs lacked standing to seek judicial review of the administrative decision.

The Court of Special Appeals, agreeing that the plaintiffs lacked standing, affirmed. Sugarloaf v. Dept. of Environment, supra, 103 Md.App. 269, 653 A.2d 506. In its opinion, the Court of Special Appeals indicated that the standing issue in the present case concerned the plaintiffs’ standing to bring a judicial review action in the circuit court and not their standing to be parties at the administrative hearing. The intermediate appellate court thus stated (103 Md.App. at 277, 653 A.2d at 510):

“To have standing under common law principles to challenge a final order or decision of an administrative agency entered in a contested case, a person must show two things—that he was a party to the administrative proceeding and that he is ‘aggrieved’ by the agency’s order or decision. Medical Waste v.

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Bluebook (online)
686 A.2d 605, 344 Md. 271, 1996 Md. LEXIS 130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sugarloaf-citizens-assn-v-department-of-environment-md-1996.