486 P.3d 787
Or.2021Background
- Energy Facility Siting Council (EFSC) issued permanent rules in January 2020 (Order EFSC 1-2020) revising procedures for site-certificate applications and amendments.
- Petitioners challenged three rules: two that limit participation in contested-case proceedings (OAR 345-015-0083(2) and OAR 345-027-0371(10)(a)) and one that lets the Department of Energy authorize site-boundary expansions without a certificate amendment (OAR 345-027-0357(1)).
- Under Oregon law, EFSC issues site certificates authorizing construction/expansion of energy facilities; the Administrative Procedure Act (APA) defines "party" and distinguishes full parties (with broad participatory rights) from limited parties (whose scope may be restricted by agency rule).
- The challenged participation rules used the term "party" without distinguishing limited parties, and imposed a raise-it-or-waive-it limitation tied to issues raised at the public hearing.
- The challenged boundary rule lets the Department approve added site area without an EFSC amendment if the department determines functional amendment criteria are not implicated.
- The Supreme Court reviewed whether these rules exceeded EFSC's statutory authority and declared all three invalid; the decision is stayed pending any timely petition for reconsideration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Do OAR 345-015-0083(2) and OAR 345-027-0371(10)(a) lawfully limit participation in contested cases? | Rules unlawfully restrict participation of full parties by limiting them to issues raised at the public hearing, violating APA participatory rights. | Rules apply only to intervenors and, in practice, only to limited parties; EFSC may control whether an intervenor is a full or limited party. | Invalid — rules restrict "parties" generically and therefore improperly limit full-party rights protected by the APA. |
| Does OAR 345-027-0357(1) permissibly allow the Department to authorize site-boundary expansions without a site-certificate amendment? | Department lacks statutory authority to permit boundary expansions without an EFSC amendment; ORS requires a site certificate for construction/expansion. | Departmental determination procedure merely changes process; substantive authority to allow non-amendment expansions is valid. | Invalid — rule authorizes boundary expansion without council amendment, exceeding EFSC's statutory authority. |
Key Cases Cited
- Friends of Columbia Gorge v. Energy Fac. Siting Coun., 365 Or 371 (2019) (discusses EFSC rulemaking and prior invalidation of RFA rules)
- Friends of Columbia Gorge v. Energy Fac. Siting Coun., 366 Or 78 (2020) (post-invalidation temporary rules and rulemaking context)
- Oil Re-Refining Co. v. Environmental Quality Comm., 361 Or 1 (2017) (framework for judicial deference to agency interpretation of its own rules)
