According to the allegations in Communities' complaint for declaratory and injunctive relief (Complaint),
The Complaint details the history of judicial review for Energy Commission certification decisions. When the Energy Commission was established in 1974 by the Warren-Alquist State Energy Resources Conservation and Development Act (Act), power plants had to obtain both a certification from the Energy Commission and a Certificate of Public Convenience and Necessity from the California Public Utilities Commission (PUC). At that time, the Act required that judicial review of an Energy Commission certification be conducted in the same manner as judicial review of the related PUC-issued certificate. Between 1974 and 1996, such PUC decisions were reviewable solely in the Supreme Court, and thus Energy Commission siting decisions
This practice was scrutinized by the Supreme Court in 1985 in Sonoma , supra ,
The Complaint further alleges, however, that, after deregulation of the energy industry in the 1990's, power plant ownership was shifted to independent power producers who do not need a Certificate of Public Convenience and Necessity or any other approval from the PUC to construct a power plant. Rather, they may proceed solely on the basis of an Energy Commission certification. At the same time, the Legislature reportedly concluded that deregulation required broader judicial oversight of PUC decisions. In 1996, the Legislature amended the PUC's judicial review statute, allowing for review of adjudicatory PUC decisions in the courts of appeal as well as by the Supreme Court. (Stats. 1996, ch. 855, § 5.) Two years later, in 1998, the Legislature extended appellate court review to additional PUC decisions, stating: "The Legislature finds and declares that the conversion of the energy, transportation, and telecommunications industries from traditional regulated markets to competitive markets necessitates a change in the judicial review of Public Utilities Commission decisions that pertain to those industries. The Legislature finds that the activities of the energy, telecommunications, and transportation industries will require expanded access to the court system at all levels." (Stats. 1998, ch. 886, § 1.5(a).) The Legislature further stated that its intent was to "conform judicial review of the Public Utilities Commission decisions that pertain to utility service providers with competitive markets to be consistent with judicial review of the other state agencies." (Id. § 1.5(b).) Since, between
However, as the Complaint additionally asserts, in 2001, the Legislature amended section 25531 to remove reference to the PUC and again make Energy Commission certificates reviewable only by the Supreme Court. Communities claims that there are no reported instances where the Supreme Court has conducted a substantive review of a power plant siting decision under section 25531 since deregulation, essentially allowing the Energy Commission to act as "its own court of last resort." Moreover, Communities asserts, this practice can no longer be sanctioned by the Supreme Court's Sonoma decision, as the regulatory landscape has fundamentally changed, and Energy Commission certification decisions are no longer necessarily linked to PUC review. The Complaint thus seeks a declaratory judgment that section 25531 is, in its current incarnation, unconstitutional and void on its face.
As stated above, in response to the filing of the Complaint, both the Energy Commission and the California State Controller (Controller) filed demurrers in the superior court, arguing, among other things, that, because the Complaint was not grounded in any actual existing controversy among the parties, it sought an advisory opinion only and thus was not ripe for review. After hearing, the trial court sustained the demurrers on ripeness grounds,
A. Standard of Review
Our standard of review on appeal from a judgment dismissing an action after sustaining a demurrer without leave to amend is well settled. ( Aubry v. Tri-City Hospital Dist. (1992)
" 'When a demurrer is sustained, we determine whether the complaint states facts sufficient to constitute a cause of action.' " ( Carloss , supra ,
As stated above, the trial court sustained the demurrers in this case on the ground that the underlying controversy was not ripe for resolution. Whether a matter is ripe for adjudication is a question of law which is subject to our independent review on appeal. ( Wilson & Wilson v. City Council of Redwood City (2011)
B. Ripeness
"The ripeness requirement, a branch of the doctrine of justiciability, prevents courts from issuing purely advisory opinions." (
In determining whether a controversy is ripe in the context of a request for declaratory relief, we engage in the two-pronged analysis advanced by Pacific Legal Foundation : "(1) whether the dispute is sufficiently concrete to make declaratory relief appropriate; and (2) whether the withholding of judicial consideration will result in a hardship to the parties." ( Farm Sanctuary, Inc. v. Department of Food & Agriculture (1998)
On appeal, both the Energy Commission and the Controller argue, citing Pacific Legal Foundation , that the trial court correctly dismissed this matter on ripeness grounds because Communities is seeking a purely advisory opinion on the constitutionality of a statute, unmoored to any concrete dispute regarding an actual Energy Commission decision. In particular, respondents each cite Pacific Legal Foundation for the proposition that a difference of opinion as to the validity of a statute is "not enough by itself to constitute an actual controversy" between the parties. (See Pacific Legal Foundation , supra ,
Pacific Legal Foundation involved an action for declaratory relief brought by a group of coastal property owners and the Pacific Legal Foundation as a facial challenge to guidelines adopted by the California Coastal Commission regarding public access to the beach. ( Pacific Legal Foundation , supra , 33 Cal.3d at pp. 162-163,
Thus, in Pacific Legal Foundation , the matter was found to be unripe not because it was merely a facial challenge to the guidelines, but because a factual context was necessary in order to resolve the parties' dispute regarding the validity of the challenged guidelines. ( Pacific Legal Foundation , supra , 33 Cal.3d at pp. 169, 172,
On the other hand, we agree with the trial court that the hardship alleged by Appellants-essentially the chilling effect on their advocacy imposed by the severe (and allegedly unconstitutional) limitations on judicial review-is not the type of specific hardship that weighs in favor of ripeness. ( Pacific Legal Foundation , supra ,
Given the tension between the two prongs of Pacific Legal Foundation , we look to cases applying this analysis under similar circumstances and conclude that the most relevant cases support finding ripeness here. For instance, Communities for a Better Environment v. California Resources Agency (2002)
Similarly, in Environmental Defense Project , supra ,
Finally, Division Five of this district recently addressed the ripeness issue in California Building Industry Assn. v. Bay Area Air Quality Management Dist. (2016)
In a petition for rehearing, the district argued that writ relief was inappropriate because the guidelines were nonbinding and review of them was premature given the lack of a specific controversy. ( CBIA , supra ,
In the present case, it is beyond dispute that the constitutional challenge to section 25531 raised by Communities is not dependent in any way on the facts of any particular Energy Commission certification proceeding.
Finally, although it may be true, as respondents suggest, that there is nothing to preclude Communities from bringing their constitutional challenge in a future action contesting an actual Energy Commission decision, to require them to do so under the present facts seems an elevation of form over substance. Indeed, the potential perils of such an approach can be seen in Santa Teresa , supra ,
In sum, under all of these circumstances, we conclude that the ripeness requirement should not operate in this case to prevent the trial court from resolving the concrete dispute before it, given that "the consequence of a deferred decision will be lingering uncertainty in the law, especially when there is widespread public interest in the answer to a particular legal question." (See Pacific Legal Foundation , supra ,
The judgment is reversed. Appellants are entitled to their costs on appeal.
We concur:
RUVOLO, P.J.
STREETER, J.
Notes
Judge of the Superior Court of California, County of Contra Costa, assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution.
All statutory references are to the Public Resources Code unless otherwise indicated.
As discussed further below, when reviewing an order sustaining a demurrer, we treat the demurrer " ' "as admitting all material facts properly pleaded." ' " (Carloss v. County of Alameda (2015)
In fact, section 5 of article XII provides that "[t]he Legislature has plenary power, unlimited by the other provisions of this constitution but consistent with this article, to confer additional authority and jurisdiction upon the commission, to establish the manner and scope of review of commission action in a court of record, and to enable it to fix just compensation for utility property taken by eminent domain." (Italics added.)
The trial court declined to address several alternate arguments made by the Controller on demurrer, largely involving the appropriateness of the Controller as a defendant. Similarly, although the Controller also filed a motion to strike Communities' request for injunctive relief-which the Energy Commission subsequently joined-the court did not rule on this motion. Under these circumstances, we do not express an opinion with regard to the merits of any of these ancillary matters.
Specifically, pursuant to section 1060 of the Code of Civil Procedure : "Any person interested under a written instrument ... or who desires a declaration of his or her rights or duties with respect to another, or in respect to, in, over or upon property, ... may, in cases of actual controversy relating to the legal rights and duties of the respective parties , bring an original action or cross-complaint in the superior court for a declaration of his or her rights and duties in the premises, including a determination of any question of construction or validity arising under the instrument or contract .... The declaration may be had before there has been any breach of the obligation in respect to which said declaration is sought." (Italics added.)
In support of its determination that this action is unripe, the trial court observed that there is no dispute among the parties regarding the construction of section 25531. Although true, we believe this is beside the point because the parties have a fundamental dispute regarding the statute's validity as applied to the review of every Energy Commission certification decision. Indeed, as discussed above, the fact that the statute applies unambiguously to all Energy Commission certification decisions actually supports ripeness.
The Santa Teresa court expressly concluded that there was no separation of powers concern, because the Supreme Court's review of the executive branch decision was on the merits. (Santa Teresa , supra ,
In reaching this conclusion, we acknowledge the Controller's argument that section 1061 of the Code of Civil Procedure allows a court to reject a request for declaratory relief in its discretion where a " 'declaration or determination is not necessary or proper at the time under all the circumstances.' " However, the trial court never exercised its discretion in this matter because it concluded that no actual controversy existed, thereby precluding review. Code of Civil Procedure section 1061 thus has no relevance to our analysis of the ripeness question raised in this appeal. (See Environmental Defense Project , supra ,
Given our resolution of this matter, we need not address appellants' other contention-that the trial court abused its discretion by refusing to grant Communities leave to amend the Complaint.
