WVALDC v. State Corporation Commission

CourtSupreme Court of Virginia
DecidedMarch 27, 2025
Docket1240315
StatusPublished

This text of WVALDC v. State Corporation Commission (WVALDC v. State Corporation Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WVALDC v. State Corporation Commission, (Va. 2025).

Opinion

PRESENT: All the Justices

WEST VIRGINIA & APPALACHIAN LABORERS’ DISTRICT COUNCIL OPINION BY v. Record No. 240315 JUSTICE CLEO E. POWELL MARCH 27, 2025 STATE CORPORATION COMMISSION, ET AL.

FROM THE STATE CORPORATION COMMISSION

The West Virginia & Appalachian Laborers’ District Council (“WVALDC”) appeals the

decision of the State Corporation Commission (“Commission”) granting the application of

Sycamore Cross Solar LLC (“Sycamore”) for certificates of public convenience and necessity

(“CPCN”). The WVALDC argues that the Commission failed to consider the Projects’ benefits

to the groups enumerated in Enactment Clause 7 of the Virginia Clean Economy Act (“VCEA”),

failed to make specific findings of fact related to the specified groups, and abused its discretion

in declining to impose a hiring-related condition in the CPCN. For the reasons that follow, we

affirm the judgment of the Commission.

I. BACKGROUND

In July 2023, Sycamore filed an application and supporting documents with the

Commission for CPCNs to construct and operate a solar facility totaling up to 240 megawatts

with transmission lines and associated facilities to interconnect to the grid (the “Project”). The

Project would be located in Isle of Wight County and Surry County (the “Counties”). The

application asserted that the Project would provide economic benefits to the Counties and

surrounding area, as well as promote the renewable energy policies and goals set forth in the Commonwealth Clean Energy Policy (“CCEP”) and VCEA.1 See Code § 45.1-1706.1; 2020 Va.

Acts chs. 1193, 1994. Sycamore included an economic and fiscal impact analysis prepared by

Mangum Economics as an exhibit to the application (the “Mangum Report”). The Mangum

Report estimated that the Project would create 197 full-time jobs during construction and 7 full-

time jobs during operation. The WVALDC, a labor organization that represents over 6,300

workers in Virginia, West Virginia, and North Carolina, filed a notice of participation in the

case.

In November 2023, a Hearing Examiner conducted an evidentiary hearing, in which

Sycamore, the WVALDC, and Commission staff participated. 2 Gregory Creswell, a witness for

Sycamore, testified that the Project would provide positive economic benefits through increased

tax revenue, employment opportunities, and the use of local businesses. Relevant to the VCEA,

he noted that the Project site is not located in a “historically economically disadvantaged area.”

Creswell also reiterated the job projections from the Mangum Report. Creswell represented that

Sycamore was “committed to hiring local employees” and would make “best efforts to work with

contractors and identify opportunities for local workforce.” However, he stated that Sycamore

1 Enactment Clause 7 of the VCEA provides:

That it shall be the policy of the Commonwealth that the State Corporation Commission . . . in the development of energy programs, job training programs, and placement of renewable energy facilities, shall consider whether and how those facilities and programs benefit local workers, historically economically disadvantaged communities . . . veterans, and individuals in the Virginia coalfield region that are located near previously and presently permitted fossil fuel facilities or coal mines.

2020 Acts. chs. 1193, 1994. 2 All relevant witnesses pre-filed their direct testimony, which was admitted into evidence at the hearing.

2 had not “made a firm commitment” to a quantity or percentage of local jobs. He explained that

Sycamore would likely hire a contractor to be responsible for hiring, but had not done so yet, and

that Sycamore was at least one year away from hiring for the Project. On cross-examination,

Creswell acknowledged that it would be possible to include a local hiring goal for the contractor

to achieve, and that the hiring assumptions in the Mangum Report were realistic.

Anthony Ciani, a representative for the WVALDC, testified that the organization

supported the Project on the condition that Sycamore followed through on its representation to

hire a majority local workforce to construct the Project. Ciani testified to the benefits of using

local labor, including maximizing local economic benefits and creating quality job opportunities

that align with the policies and goals of the CCEP and VCEA. He noted that, “to date, many of

the solar developments in Virginia have been built by out-of-state, low-wage workers.”

Matthew Glattfelder, a Commission analyst, testified that Commission staff generally

agreed that the Project would provide some direct and indirect economic benefits to the

Counties, including construction jobs. With regard to a separate statutory requirement that the

Commission consider the environmental impact of the Project, 3 he stated that although 3.7% of

the fenced area of the Project is designated as an environmental justice community,4 specifically

a community of color, no homes are located within the fenced acreage.

3 See Code § 56-265.2(B) (requiring the Commission, in reviewing a CPCN application, to consider the effect of the proposed facility on the environment); Code § 2.2-235 (stating that “[i]t is the policy of the Commonwealth to promote environmental justice and ensure that it is carried out throughout the Commonwealth, with a focus on environmental justice communities and fenceline communities”). 4 Code § 2.2-234 (defining “environmental justice community” as “any low-income community or community of color”).

3 During closing arguments, the WVALDC reiterated its position that Sycamore’s local

hiring representations should be binding like any other condition. Sycamore rejected imposing a

local hiring commitment because it did not “know what the circumstances [would] be, [or] what

the workforce [would] look like” a year in advance.

The Hearing Examiner issued a 34-page report, which summarized the evidence and her

findings, and recommended that the Commission issue the requested CPCNs. Relevant to this

appeal, the Hearing Examiner did not find that the Commission should condition the CPCNs on

Sycamore hiring a majority of local workers for the Project. The Hearing Examiner noted that,

absent a legal requirement or Commission precedent, imposing a local hiring requirement was a

policy decision for the Commission. However, the Hearing Examiner recommended that

Sycamore’s “reasonable efforts” should include notifying the WVALDC either when it would

begin hiring or when it signed a contract with the contractor responsible for hiring.

In its final order, the Commission adopted the Hearing Examiner’s findings and

recommendations but declined to adopt the proposed notification requirement. The Commission

noted that Sycamore represented that it would make reasonable efforts to hire local laborers and

explained that neither a local hiring requirement nor notice are “necessary to satisfy the statutory

requirements for approval.”

The WVALDC moved for reconsideration. First, the WVALDC argued that the

Commission failed to address the enumerated groups in the VCEA. To the extent that the final

order could be construed to make the requisite findings, the WVALDC argued the Commission’s

findings were not supported by substantial evidence, which rendered the decision arbitrary and

capricious. Second, the WVALDC argued that Commission failed to explain its decision not to

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