Westfield Twp. Zoning Inspector v. Emerald Bioenergy, L.L.C.

2021 Ohio 3843
CourtOhio Court of Appeals
DecidedOctober 28, 2021
Docket2021 CA 0001
StatusPublished
Cited by1 cases

This text of 2021 Ohio 3843 (Westfield Twp. Zoning Inspector v. Emerald Bioenergy, L.L.C.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Westfield Twp. Zoning Inspector v. Emerald Bioenergy, L.L.C., 2021 Ohio 3843 (Ohio Ct. App. 2021).

Opinion

[Cite as Westfield Twp. Zoning Inspector v. Emerald Bioenergy, L.L.C., 2021-Ohio-3843.]

COURT OF APPEALS MORROW COUNTY, OHIO FIFTH APPELLATE DISTRICT

THE WESTFIELD TOWNSHIP ZONING JUDGES: INSPECTOR Hon. William B. Hoffman, P. J. Hon. John W. Wise, J. Plaintiff-Appellant Hon. Earle E. Wise, Jr., J.

-vs- Case No. 2021 CA 0001

EMERALD BIOENERGY, LLC

Defendant-Appellee OPINION

CHARACTER OF PROCEEDING: Civil Appeal from the Court of Common Pleas, Case No. 2020 CV 00053

JUDGMENT: Affirmed

DATE OF JUDGMENT ENTRY: October 28, 2021

APPEARANCES:

For Plaintiff-Appellant For Defendant-Appellee

DAVID HOMER CATHERINE CUNNINGHAM ASSISTANT PROSECUTOR KEGLER, BROWN, HILL & RITTER 60 East High Street 65 East State Street, Suite 1800 Mt. Gilead, Ohio 43338 Columbus, Ohio 43215

N. TREVOR ALEXANDER BENESCH, FRIEDLANDER, COPLAN & ARANOFF 41 South High Street, Suite 2600 Columbus, Ohio 43215 Morrow County, Case No. 2021 CA 0001 2

Wise, John, J.

{¶1} Appellant The Westfield Township Zoning Inspector appeals the February

2, 2021, decision by the Morrow County Court of Common Pleas, dismissing its Complaint

for Injunction Due to a Zoning Violation filed against Appellee Emerald Bioenergy, LLC.

STATEMENT OF THE FACTS AND CASE

{¶2} The relevant facts and procedural history are as follows:

{¶3} On April 16, 2020, Appellant Westfield Township Zoning Inspector

(Westfield Township) filed a "Complaint for Injunction Due to a Zoning Violation” against

Appellee Emerald Bioenergy, LLC, (Emerald) along with other individually named

defendants who were subsequently dismissed by the trial court. The Complaint sought to

enjoin the business from operating its anaerobic biodigester in the township as if it were

an agricultural use of the land because it was located in a district zoned for agricultural

use only, in which people lived and worked.

{¶4} In paragraph 19 of its Complaint, Appellant asserted “[t]he stench and noise

from the biodigester are constantly emitted from the defendant’s premises at all times of

the day and night. The people of Westfield Township are deprived of the enjoyment of

their property.”

{¶5} In its Answer, at paragraph 19, Appellant stated “as long as at least fifty

percent of the feedstock used in the biodigester is derived from parcels of land contiguous

to or part of parcels otherwise devoted exclusively to agricultural use that are under

common ownership or leasehold, the biodigester facility is an agricultural use exempt

from township zoning under state law and … R.C. 5713.30 is relevant to that

determination.” Morrow County, Case No. 2021 CA 0001 3

{¶6} On December 14 and December 29, 2020, a bench trial was held.

{¶7} At the bench trial, the trial court heard testimony and received evidence as

follows:

{¶8} Emerald operates an anaerobic biodigester on Morrow County Tax Parcel

R4 1-001-00-123-02. Anaerobic digestion is a natural process by which microorganisms

break down organic matter in a closed space without oxygen and produce biogas that is

used to generate electricity. (T. at 333-334). The Biodigester was built in 2013 as a

renewable energy facility that would process farm and other biological waste and convert

it into renewable energy. (T. at 50, 214-218, 331-334, 364). The Permit to Install the

Biodigester was issued by the Ohio Environmental Protection Agency ("OEPA") in 2012

and allows Emerald to process a variety of biological feedstocks including animal manure,

food wastes and sewage sludge (biosolids), which are used to produce biologically-

derived methane gas that is used to generate electricity, and fertilizer.

{¶9} The Biodigester is located on property owned by Ringler Energy, LLC, a

company owned by Alex Ringler and leased to Emerald. (T. at 190, 328-332). Alex Ringler

and his companies own 510 acres of property and farming operations contiguous to the

Property that are all subject to current agricultural use valuation (CAUV) and include a

hog farm with finishing barns housing 7,000 hogs, row crops and other farming

operations.

{¶10} Testimony was presented by Alex Ringler and Michael Oberfield, Chief

Financial Officer of Renergy, Emerald’s parent company, that the Biodigester is integral

to the adjacent Ringler farming operations. It directly accepts and processes 100% of the

manure from the farm through a closed underground piping system. It also accepts other Morrow County, Case No. 2021 CA 0001 4

biological feedstocks including food waste and, at one time, biosolids that produce

methane gas within the Biodigester that is used to generate electricity. (T. at 213-216,

331-334). A small portion of that electricity powers the entire Ringler Farm, and the

remainder is sold through Buckeye Power, Inc., a local electric co-op, to the wholesale

electric grid for public consumption. The fertilizer it produces is used on Ringler and other

farm fields. (Tr. 212-218, 329-332). It is a continuing integrated process and system. (Tr.

445-451).

{¶11} John Bentine, an attorney who worked at PUCO and the Attorney General’s

office as counsel to PUCO, was called by Appellant as an expert witness in public utility

issues in the state of Ohio. He testified that Emerald’s name plate generation capacity for

electricity is 850 kW, over three times the minimum 250 kW statutory threshold of the size

that Ohio renewable energy resources are required to have, which subjects it to

government regulation. (T. at 412-414). Atty. Bentine stated that although Emerald does

not generate electricity on the same scale as big coal-fired or nuclear units, it

"nonetheless, is a significant size in terms of its effect on the overall electric system,

especially locally in the area" where it would serve someplace between 500 and 800

homes. (T. at 412-414). He stated that the electricity generated is a "renewable energy

resource" as certified by the Public Utilities Commission of Ohio ("PUCO") since 2014.

(T. at 412-414). As such, Emerald is certified to produce "Renewable Energy Credits"

which are sold into the public market. (T. at 339-344).

{¶12} At its inception, the Biodigester received support from Morrow County and

others. The State of Ohio and United States government have adopted laws providing for

a variety of grants and tax incentives to implement their policies to encourage the Morrow County, Case No. 2021 CA 0001 5

development and use of renewable energy. (T. at 53-55, 419-420). Emerald received a

$500,000 grant and loan guarantees from the United States Department of Agriculture for

its $5.5 million investment in the facility. (T. at 187-191, 419-420). It also received a public

utility tax exemption and "Conversion Facilities Tax Exemption Certificate" through the

Ohio Development Services Agency for the Biodigester as a solid waste conversion

facility based on a 2016 Ohio Tax Commissioner finding. (T. at 47, 53, 56, 58-60, 67).

{¶13} According to Mr. Oberfield, the first objection received by Emerald from

Westfield Township regarding the Biodigester or its use was the notice of violation it

received on September 25, 2019. (T. at 358-359).

{¶14} Patricia Davies, who at the time was the Morrow County Director of

Operations1, testified that the State of Ohio determines whether an entity is a public utility

for purposes of the personal property tax. (T. at 56-62). Ohio made that determination for

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2021 Ohio 3843, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westfield-twp-zoning-inspector-v-emerald-bioenergy-llc-ohioctapp-2021.