¶ 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." 33 U.S.C. § 1251(a). "To effectuate that objective, the Clean Water Act generally prohibits the discharge of any pollutant into navigable waters except when done pursuant to a National Pollution Discharge Elimination System (NPDES) permit." Andersen v. DNR,
¶ 3. On October 1, 2012, the DNR reissued a WPDES permit to Appleton Coated authorizing it to dischаrge treated wastewater from its paper production facility into the lower Fox River. CWAC filed a petition for judicial review of the DNR's decision to reissue the permit, under Wis. Stat. § 227.52, arguing the permit violated several state statutes and administrative rules. Appleton Coated moved to dismiss CWAC's petition, arguing: (1) CWAC failed to exhaust its administrative remedies because it did not obtain a contested case
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 tо the circuit court's discretion. 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 Wis. Stat. § 227.52. without first obtaining a contested case hearing under Wis. Stat. § 283.63. CWAC argues the court erred because § 283.63 is not the exclusive review procedure for WPDES permitting decisions. In the alternative, CWAC argues that, even if it was required to proceed under § 283.63, the circuit court should have applied an exception to the exhaustion doctrine. We reject both of these arguments for the reasons explained below.
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 — Wis. Stat. §§ 227.52 and 283.63. Statutory interpretation presents a question of law that we review independently. McNeil v. Hansen,
¶ 8. Wisconsin Stat. § 227.52 provides a general right to judicial review of administrative decisions "except as otherwise provided by law."
Any [WPDES] permit applicant, permittee, affected state or 5 or more persons may secure a review by the [DNR] of any permit denial, modification, terminаtion, or revocation and reissuance, the reasonableness of or necessity for any term or condition of any issued, reissued or modified permit, any 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[.]" Wis. Stat. § 283.63(l)(a). After the DNR receives the petition, it must hold a public hеaring, at which the petitioner "shall present evidence . . . which is in support of the allegation made in the petition." Wis. Stat. § 283.63(l)(b). In addition, "[a] 11 interested persons or their representative shall be afforded an opportunity to present facts, views or arguments relevant to the issues raised by the petitioners, and cross-examination shall be allowed." Id. The DNR must "consider anew all matters concerning the permit denial, modification, termination, or revocation and reissuance" and issue а decision within ninety days. Wis. Stat. §§ 283.63(l)(b), (l)(d). The DNR's decision is then "subject to judicial review as provided in ss. 227.52 to 227.58." Wis. Stat. § 283.63(2).
¶ 9. The circuit court concluded the two-step review procedure set forth in Wis. Stat. § 283.63 — that is, agency review, followed by judicial review — is the exclusive, mandatory method of review for WPDES permit
¶ 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 Wis. Stat. § 227.40,
¶ 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 [Wis. Stat. § 283.63]." Id. at 620. The DNR contended § 283.63 was the "exclusive forum of challenge to the [DNR's] authority to require early compliance^]" Id. at 621. The supreme court agreed, stating the commission's "failure to challenge the [DNR's] authority under the procedures of [§ 283.63] precluded the later challenge under ch. 227, because [§ 283.63] is the exclusive method of administrative and judicial review of the [DNR's] action." Id.
¶ 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 Wis. Stat. § 227.40, whereas this case involves a challenge to a рermit under Wis. Stat. § 227.52. We do not agree that
¶ 16. Sewerage Commission's analysis of Wis. Stat. § 283.63 is on point and is controlling precedent in this case. When the supreme court interprets a statute, that interpretation becomes "as much a part of the statute as if plainly written into it originally." State ex rel. Klinger v. Baird,
¶ 17. CWAC nevertheless argues Wis. Stat. § 283.63 cannot be the exclusive review procedure for WPDES permitting decisions because, if that were the case, the statute would violatе federal regulations implementing the Clean Water Act. CWAC observes the
¶ 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 Wis. Stat. § 283.63 actually runs afoul оf 40 C.F.R. § 123.30 by narrowly restricting the class of persons who may obtain review of WPDES permitting decisions. The federal regulation lists the following as examples of impermissible restrictions: "if only the permittee can obtain judicial review, if persons must demonstrate injury to a pecuniary interest in order to obtain judicial review, or if persons must have a property interest in close proximity to a discharge or surface waters in order to obtain judicial review." 40 C.F.R. § 123.30. Section 283.63 is significantly less restrictive
¶ 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 Wis. Stat. § 283.63 is the mandatory, exclusive review procedure when permit applicants, permittees, affected states, and groups of fivе or more persons seek to challenge WPDES permitting decisions. However, because individual persons cannot proceed under § 283.63, the attorney general concluded they must be able to obtain direct judicial review of WPDES permitting decisions under Wis. Stat. § 227.52. As a corporation, CWAC is an individual person for purposes of Wis. Stat. ch. 283. See Wis. Stat. § 283.01(11). CWAC therefore argues it was entitled to proceed under § 227.52, pursuant to the attorney general's interpretation.
¶ 21. The attorney general's January 19, 2012 letter is nоt 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 permitting decisions under Wis. Stat. § 227.52 is inconsistent with Sewerage Commission. Further, the attorney general's interprеtation produces an illogical result. According to the attorney general, groups of five or more persons are required to engage in contested case hearings under Wis. Stat. § 283.63 before obtaining judicial review, but any group of fewer than five persons may bypass the contested case hearing and proceed directly to court. If that were the case, nothing would prevent groups of five or more litigants from simply filing multiple, separate petitions for judicial review in order to avoid the contested case hearing requirement. The attorney general's letter does not explain why the legislature would have required groups of five or more persons to undertake an additional administrative process to secure judicial review, when they could just as easily avoid that process by proceeding separately.
¶ 23. Finally, we note an additional policy consideration supporting our conclusion that a contested case hearing under Wis. Stat. § 283.63 is a mandatory prerequisite to judicial review of a WPDES permitting decision. When reviewing an administrative decision under Wis. Stat. §§ 227.52-227.58, a circuit court is generally restricted to considering only the record developed before the agency. Wis. Stat. § 227.57(1). Here, the record developed before the DNR is lengthy, but it is also highly technical, and there is little or no explanation of which information the DNR relied on or how that information supports its decision. A circuit court
¶ 24. For all the foregoing reasons, we conclude CWAC was required to obtain a contested case hearing under Wis. Stat. § 283.63 before petitioning for judicial review of Appleton Coated's WPDES permit. Accordingly, the circuit court properly concluded CWAC failed to exhaust its administrative remedies.
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 Wis. Stat. § 283.63 is unavailable to CWAC. We are unpersuaded. We acknowledge that the review procedure in § 283.63 is restricted to permit applicants, permittees, affected states, and groups of five or more persons. We alsо acknowledge CWAC is a single person within the meaning of the statute. However, that does not mean relief under § 283.63 was completely unavailable to CWAC. Instead, as the circuit court concluded, to obtain review of Appleton Coated's WPDES permit, CWAC simply needed to identify four like-minded individuals willing to join its petition for a contested case hearing. CWAC is a self-described "environmental advocacy group" that is "led by a board of directors and composed of hundreds of eco-minded members."
¶ 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 referencеs to the Wisconsin Statutes are to the 2011-12 version unless otherwise noted.
Wisconsin Stat. § 227.52 lists six specific types of administrative decisions that are not subject to judicial review under Wis. Stat. ch. 227. See Wis. Stat. § 227.52(l)-(7). The DNR's decision to issue a WPDES permit is not one of them.
Sewerage Commission v. DNR,
For purposes of Wis. Stat. ch. 283, the term "person" means "an individual, owner, operator, corporation, limited liability company, partnership, association, municipality, interstate agency, state agency or federal agency." Wis. Stat. § 283.01(11).
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 Wis. Stat. § 227.57(6) (court must defer to agency's factual findings if supported by "substantial evidence in the record"); Andersen v. DNR, 2011 WI19, ¶¶ 27, 30,
We acknowledge that agency decisions not arising from contested case hearings are generally reviewable under Wis. Stat. §§ 227.52-227.58. See, e.g., Wis. Stat. § 227.53(l)(a)2m. However, because WPDES permitting decisions involve complex environmental issues, it makes sense the legislature would have chosen to require contested case hearings as a prerequisite to judicial review of these specific decisions.
See What is CWAC?, http://www.cleanwateractioncouncil. org/ about/(last visited Apr. 16, 2014).
