Clean Water Action Council v. Wisconsin Department of Natural ResourcesClean Water Action Council v. Wisconsin Department of Natural Resources
¶ 1. Clеan Water Action Council of Northeast Wisconsin (CWAC) appeals an order dismissing its petition for judicial review of the Wisconsin Department of Natural Resources' (DNR) decision to reissue a Wisconsin Pollution Discharge Elimination System (WPDES) permit to Appleton Coated LLC. Relying on Sewerage Commission v. DNR,
BACKGROUND
¶ 2. The United States Congress enacted the Federal Water Pollution Control Act Amendments of 1972 (the Clean Water Act) to "restore and maintain the chemical, physical, and biological integrity of the Nation's waters."
¶ 3. On October 1, 2012, the DNR reissued a WPDES permit to Appleton Coated authorizing it to discharge treated wastewater from its paper production facility into the lower Fox River. CWAC filеd a petition for judicial review of the DNR's decision to reissue the permit, under
DISCUSSION
¶ 4. "[W]here a statute sets forth a procedure for review of administrative action and court review of the administrative decision, such remedy is exclusive and must be employed before other remedies are used." Nodell Inv. Corp. v. City of Glendale, 78 Wis. 2d 416, 422,
¶ 5. Whether to apply the doctrine of exhaustion is committed to the circuit court's discrеtion. Id., ¶ 10 & n.5. Thus, we will uphold the circuit court's decision if it examined the relevant facts, applied a proper standard of law, and used a demonstrably rational
¶ 6. The circuit court concluded CWAC failed to exhaust its administrative remedies because it proceeded directly to judicial review under
I. Failure to exhaust administrative remedies
¶ 7. To determine whether the circuit court properly exercised its discretion when it concluded CWAC failed to exhaust its administrative remedies, we must interpret the relevant statutes —
¶ 8. Wisconsin Stat.
Any [WPDES] permit applicant, permittee, affected state or 5 or more persons may secure a review by the [DNR] of any permit denial, modification, termination, or revocation and reissuance, the reasonableness of or necessity for any term or condition of any issued, reissued or modified permit, аny proposed thermal effluent limitation established under s. 283.17 or any water quality based effluent limitation established under s. 283.13(5).
The statute further provides that a petition for review of a WPDES permitting decision must be filed "within 60 days after notice of any action which is reviewable under this section is issued[.]"
¶ 9. The circuit court cоncluded the two-step review procedure set forth in
¶ 10. CWAC's argument is foreclosed by Sewerage Commission. There, the DNR issued two WPDES permits to the Milwaukee sewerage commission in December 1974. Sewerage Commission,
¶ 11. The commission apparently failed to meet the permits' deadlines for the achievement of effluent limitations. Id. Faced with the threat of an enforcement action by the DNR, the commission filed a declaratory judgment action under
¶ 12. On appeal, the DNR argued the circuit court never gained "subject matter jurisdiction" over the commission's declaratory judgment action because "the only way the commission[] could properly challenge the DNR's administrative authority to require achievement of effluent limitations prior to July 1, 1977, was under [
¶ 13. In support of this conclusion, the court noted that, "where a specified method of review is prescribed by an act creating a new right or conferring a new power, the method so prescribed is exclusive." Id. at 630. The court further stated a method of review will generally be deemed exclusive if it provides "a statutory remedy that is 'plain, speedy, and adequate[.]'" Id. (quoting Kegonsa Joint Sanitary Dist. v. City of Stoughton,
¶ 14. The court further concluded the public policies underlying the Clean Water Act and Wis. Stat. ch. 283 supported its holding. The court observed both laws "reveal a strong commitment to timely achievement of the control of effluent discharges within technological capacity to do so." Id. at 624-25. Thus, the DNR and permittee "should be given every opportunity" to negotiate and resolve mutually acceptable permit terms "at the earliest possible date[.]" Id. at 625. The court concluded early resolution of disputes over permit terms
is well served by requiring, as does [Wis. Stat. § 283.63 ], first, the negotiation of such matters between the department and the permit holder, as envisioned by the sixty-day period established for administrative appeal; and, second, timely appeal..., if necessary, to the courts for resolution of matters as to which agreement cannot be reached before the agency.
Id.
¶ 15. CWAC argues Sewerage Commission is distinguishable because it involved a declaratory judgment challenge to both a rule and a permit under
¶ 16. Sewerage Commission's analysis of
¶ 17. CWAC nevertheless argues
¶ 18. We reject CWAC's argument for two reasons. First, the supreme court recently clarified that whether Wis. Stat. ch. 283 and the associated regulations are consistent with the Clean Water Act is a matter for the EPA to decide. See Andersen,
¶ 19. Second, we are not convinced that our interpretation of
¶ 20. CWAC's arguments on appeal rely heavily on a letter the Wisconsin attorney general wrote to the DNR on January 19, 2012. In the letter, the attorney general opined that
¶ 21. Thе attorney general's January 19, 2012 letter is not a formal attorney general opinion. Even if it were, attorney general opinions are not binding on this court. State v. C.A.J.,
¶ 22. The attorney general's conclusion that individual persons may obtain direct judicial review of WPDES pеrmitting decisions under
¶ 23. Finally, we note an additional policy consideration supporting our conclusion that a contested case hearing under
¶ 24. For all the foregoing reasons, we conclude CWAC was required to obtain a contested case hearing under
II. Exceptions to the exhaustion doctrine
¶ 25. CWAC next argues that, even if the circuit court properly concluded CWAC failed to exhaust its
¶ 26. CWAC first argues the court should have made an exception to the exhaustion doctrine because the review procedure described in
¶ 27. CWAC also argues the circuit court should have granted an exception to the exhaustion doctrine because denying CWAC judicial review in these circumstances would be "harsh and unfair." See Metz v. Veterinary Examining Bd.,
¶ 28. We disagree. Sewerage Commission has been the law for over thirty years. Rather than following the procedure required under Sewerage Commission, CWAC chose to rely on a novel interpretation of that case proffered by the attorney general in an informal opinion. It did so despite the well-established fact that attorney general opinions are not precedential authority. The situation here is one of CWAC's own making and is not the type of circumstance in which courts have found it would be harsh and unfair to apply the exhaustion doctrine.
¶ 29. For instance, in Trager,
¶ 30. The supreme court also refused to apply the exhaustion doctrine in a case where a pro se prisoner litigant failed to timely file an administrative appeal of a decision to revoke his probation and subsequently sought judicial review of the decision via a writ of certiorari. See Mentek,
¶ 31. The harsh and unfair consequences of the exhaustion doctrine that were present in Trager, Town of Menasha, and Mentek are not present in this case. CWAC is not an unwilling defendant in a forfeiture action facing a monetary sanction. Nor is CWAC a pro se litigant facing the deprivation of its liberty interest. Instead, CWAC is a party that, while represented by counsel, chose to initiate litigation using a procedure contrary to well-settled law in reliance on a novel interpretation advanced by the attorney general. Under
By the Court. — Order affirmed.
Notes
All references to the Wisconsin Statutes are to the 2011-12 version unless othеrwise noted.
Wisconsin Stat.
Sewerage Commission v. DNR,
For purposes of Wis. Stat. ch. 283, the term "person" means "an individual, оwner, operator, corporation, limited liability company, partnership, association, municipality, interstate agency, state agency or federal agency."
Appleton Coated argues the legislature likely chose to restrict review of WPDES permitting decisions to groups of five or more persons because it made a policy decision that individual persons should not be able to compel the expenditure of agency and judicial resources required for contested case hearings and subsequent judicial review. However, we find no legislative history to support this contention.
See
We acknowledge that agency decisions not arising from contested case hearings are generally reviewable under
See What is CWAC?, http://www.cleanwateractioncouncil. org/ about/(last visited Apr. 16, 2014).