Puna Geothermal Venture (PGV) appeals the third circuit court’s order denying PGVs motion to dismiss for lack of subject matter jurisdiction in an agency appeal brought by Pele Defense Fund (PDF) and other named parties
1
(collectively “Appellees”). PDF’s appeal of the Department of Health’s (DOH) decision to grant PGVs requested permits
I. Facts
PGV applied to the DOH for two Authority to Construct permits pursuant to HRS chapter 342 (1985). 5 Respectively, the permits were for (1) a well field containing fourteen geothermal exploratory and developmental wells, and (2) a power plant. By statute and agency rule, the DOH has discretionary authority to hold public hearings on such applications. See HRS § 342—6(c); Hawai'i Administrative Rules (HAR) § ll-60-45(a). 6 At two “public informational hearings” held by the DOH, various individuals testified after requesting contested case hearings. The DOH referred these requests to the Attorney General’s (AG’s) office, and later informed the individuals that the AG’s office had determined that there was no legal mandate to grant a contested case hearing. The DOH aсcordingly denied the contested case hearing requests and later granted PGV’s permit application.
Appellees sought judicial review of the DOH decision in the third circuit court pursuant to HRS § 91-14, HRS § 603-21.8 and HRCP Rule 72. PGV moved to dismiss the appeal arguing that the circuit court lacked subject matter jurisdiction. The circuit court denied the motion, and PGV moved for reconsideration. In a hearing on various motions, the circuit court gave the following reasons for its denial of PGV’s motion:
[I]f this was a regular agency appeal ... the Court would basically agree with the PGV’s position in terms of a contested case[,] ... [b]ut the Court was greatly influenced by ... the [Mahuiki ] case and another case where there was a directive by the [appellate] courts that in environmental issues, that the technical requirements should not bar an appeal.
And I appreciate that there is no Hawai'i case that says that where an environmental issues where there are no mandated public hearings, that you can still have a contested case. I appreciate all the contested cases that have been cited ... [a]ll have a statutory requirement for public hearing.
But the Court was influenced by the admonition that in environmental issues that the technical requirements should not be a bar.
The circuit court then denied PGVs motion for -reconsideration, granted Appellees’ motion to stay the granted permits, and granted PGV’s motion for an interlocutory appeal regarding the jurisdictional issue. PGV timely filed a notice of appeal to this court.
II. Discussion
A. Source of Appellate Jurisdiction
The circuit court was correct in identifying our concern about the barriers facing litigants in matters affecting the environment. Accordingly, in
Pele Defense Fund v. Paty,
However broadly we may view a litigant’s standing to pursue a legal issue in court or before an agency, every court must nevertheless determine as a threshold matter whether it has jurisdiction to decide the issue presented.
Bush v. Hawaiian Homes Comm’n,
B. Statutory Provisions
1. HRS § 34.2-13
On appeal, PDF argues that HRS § 342-13 (1985) provides the circuit court with appellate jurisdiction. This section sets forth the following:
If any party is aggrieved by the decision of the director, the party may appeal in the manner provided in chapter 91 to the circuit court of the circuit in which the party resides or has the party’s principal place оf business or in which the action in question occurred; provided that the operation of a cease and desist order will not be stayed on appeal unless specifically ordered by a court of competent jurisdiction.
HRS § 342-13 (emphasis added).
HRS § 342-13 must be read together with HRS chapter 91, which provides for appeals only from contested cases. See infra subsection II.B.2. Contrary to Appellees’ assertions, therefore, HRS § 342-13 itself does not provide a basis for obtaining judicial review.
2. HRS § 91-Up
HRS § 91-14(a) provides the means by which judicial review of administrative contested cases can be obtained. Among its prerequisites, the section requires that a contested case must have occurred before appellate jurisdiction may be exercised.
Bush,
a. Hearing required by law
According to HRS § 91-1(5), a discretionary hearing cannot be a “contested case” because it fails to meet the “required by law” test.
See Bush,
Constitutional due process protections mandate a hearing whenever the claimant seeks to protect a “proрerty interest,” in other words, a benefit to which the claimant is legitimately entitled.
Id.
at 136,
PGV itself asserts that “a [contested case] is required when property interests, such as PGV’s use of its project site, are implicated.” PGV is correct with respect to the agency’s
denial
of a proposed property use.
See supra
note 8 (quoting HRS § 342-6(c)). Furthermore, as a matter of constitutional duе process, an agency hearing is also required where the
issuance
of a permit implicating an applicant’s property rights adversely affects the constitutionally protected rights of other interested persons who have followed the agency’s rules governing participation in contested cases.
See infra
sections II.B.2.b. and c.;
cf. Bush,
The public hearings held by the DOH were proceedings in which PGV “sought to have the legal rights, duties or privileges of land in which it held an interest declared over the objections of other landowners and residents of’ Puna.
Mahuiki v. Planning Comm’n,
b. Agency rules followed
In
Simpson,
the Intermediate Court of Appeals (ICA) held that a public
Properly promulgated DLNR rules establishing formal procedures for contested case hearings were in effect at the time of Simpson’s application. These rules provided for, inter alia, the exchange of exhibits, a verbatim record of the evidence presented, cross-examination of witnesses, and separate findings of facts and conclusions of law.
Id.
at 24,
In the instant ease, some of the Appellees submitted “Application^] for Contested Case[s]” on forms provided by the DOH and in full compliance with the agency’s rules. See DOH, Rules of Practice and Procedure, Part C, “Hearings on Contested Cases” (1962). 12 The record of proceedings with respect to several of the Appellees, see'infra subsection H.B.2.C., is neither sparse nor inadequate for purposes of judicial review. Consequently, the circuit court prоperly exercised jurisdiction in this case.
c. The right to appeal—standing
Establishing that a contested case took place does not end the inquiry into justiciability. The Appellees must also show that they are “entitled to request a review of the agency determination.”
Mahuiki,
First, we shall address the requirement of specially affected interests, or “injury in
Before the circuit court, the Appellees alleged that allowing PGV’s activities to proceed under the authority of the ATC permits would expose the Appelleеs “to potential harm including diminished property values, deterioration of air quality, odor nuisance, and possible physical injury resulting from the permitted operations.” If this were an action for declaratory and injunctive relief,
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we could simply conclude that “the pleadings ... contain a sufficient showing of individualized harm ... [so that] it cannot be said that [Appellees] sought ‘to do no more than vindicate their own value preferences through the judicial process.’ ”
Id.
(citing
Sierra Club v. Morton,
Based on our review of the record, Appel-lees Perry, Petricci, Phillips, and Martino-vitch each clearly demonstrated an “injury in fact” as discussed in Hawaii’s Thousand Friends: (1) an actual or threatened injury, (2) traceable to the challenged action, which is (3) likely to be remedied by favorable action. Id. 14 See infra notes 15, 16 and accompanying text (discussing the current state of the record with respect to the other Appellees).
The remaining element of our analysis requires involvement or participation in a contested case. The Appellees must, therefore, “demonstrate ... [that] they were involved in the administrative proceeding that culminated in the unfavorable decision.”
Mahuiki,
In the Appellees’ original pleadings before the circuit court, they apparently concede that only “certain” Appellees requested contested case hearings pursuant to the procedures set forth by the DOH. 15 See supra subsection II.B.2.b. It is not clear, however, whether any evidence in the record would support an allegation that any member of PDF suffered potential harm constituting an “injury in fact.” 16
In
Jordan,
the court stated that “[p]artic-ipation in a hearing as an adversary without formal intervention has been held sufficient to give rise to appeal rights.”
Jordan,
Appellants, having comported with all board procedural dictates, could not “for-mally intervene” as the trial сourt mistakenly demanded. Manifestly, all appellants here have done everything possible to perfect an appeal.
That the public hearing was not a contested case [under HRS § 91-1(5) ] is without merit.
East Diamond Head,
III. Conclusion
Although the relevant statutе and agency rules provide the DOH with discretionary authority to hold hearings on applications for ATC permits, the proceedings nonetheless constituted contested eases because they were required by constitutional due process. The circuit court, therefore, properly concluded that it was vested with appellate jurisdiction pursuant to HRS § 91-14(a).
With respect to the issue of standing, the record reveals that Appellees Martinoviteh,
Notes
. In addition to the Kapoho Community Associаtion, the following individuals are also named Appellants/Appellees in this case: Robert Petric-ci, Jennifer Perry, Steve Phillips, and Aurora Martinovitch.
. HRS § 91-14(a) provides:
Any person aggrieved by a final decision and order in a contested case or by a preliminary ruling of the nature that deferral of review pending entry of a subsequent final decision would deprive appellant of adequate relief is entitled to judicial review thereof under this chapter; but nothing in this section shall be deemed to prevent resort to other means of review, redress, relief, or trial de novo, including the right of trial by jury, provided by law.
. HRS § 603-21.8 provides that "[t]he several circuit courts shall have jurisdiction of all causes that may properly come before them on any appeal allowed by law from any other court or agency.”
. HRCP 72 provides that "[wjhere a right of redetermination or review in a circuit court is allowed by statute, any person adversely affected by the decision, order or action of a governmental оfficial or body other than a court, may appeal from such decision, order or action by filing a notice of appeal in the circuit court having jurisdiction of the matter."
. HRS chapter 342, Environmental Quality (enacted in 1972), was repealed in 1989. See Act 212, § 8, 1989 Haw.Sess.Laws 438, 509. Its replacement, HRS chapter 342B, Air Pollution, was also repealed and replaced in 1992 with HRS chapter 342B, Air Pollution Control (Supp. 1992). See Act 240, § 2, 1992 Haw.Sess.Laws 618, 638.
.HRS § 342-6(c) provided, in pertinent part, that “[t]he director may hold a public hearing before ruling on an apрlication for a permit to control waste or hazardous waste pollution if the director determines such public hearing to be in the public interest." (Emphasis added.)
HAR § ll-60-45(a) provides:
Except as provided in subsection (b), in considering any application for authority to construct or permit to operate, the director, at the director’s sole discretion or upon the timely written request of any person, may allow for notice and opportunity for public comment in accordance with the this section, if the direсtor is of the opinion that public comment would aid in the director’s decision.
(Emphasis added.) HRS § ll-60-45(b) provides:
The director shall provide for notice and opportunity for public comment for any application for authority to construct a major stationary source or major modification subject to the prevention of significant deterioration review requirements of subchapter 4 in accordance with this section.
. HRS § 91-1(5) provides that " '[c]ontested case' means a proceeding in which the legal rights, dutiеs, or privileges of specific parties are required by law to be determined after an opportunity for agency hearing.” In a classic example of circular definition, HRS § 91-1(6) defines “agency hearing” as a “hearing held by an agency immediately prior to a judicial review of a contested case as provided in section 91-14.” See supra note 2 (quoting HRS § 91~14(a)).
. See supra note 6. HRS § 342-6(c) also indicates, however, that "[t]he director shall not deny an application for the issuance ... of a permit without affording the applicant a hearing in accordance with chapter 91.” (Emphasis added.) Nonetheless, we need not rely on the stаtute because a hearing is mandated by constitutional due process. See infra this subsection.
In the context of a claim brought under statutes currently in force, our inquiry into constitutional due process would appear to be unnecessary. See HRS § 342B-30 (allowing both "[t]he applicant and any person who participated in the public comment process” to obtain judicial review). However, this provision does not pre-elude other forms of judicial review, for example, under HRS § 91-14(a).
.
Aguiar
discusses an additional inquiry concerning the specific procedures required by constitutional due process.
See Aguiar,
. Although the ICA found that the circuit court lacked jurisdiction because Simpson did not participate in a contested case, it nonetheless revеrsed the dismissal of Simpson's claim and “remanded with direction to remand the matter to the DLNR for a contested case hearing.”
Id.
at 27,
. An adequate record is essential because our inquiry into jurisdiction under HRS § 91-14 does not end upon a finding that the agency's rules were followed.
Mahuiki,
.Part C, subsection 2(a) provides that the DOH may hold a contested case hearing "on its own motion or upon complaint or application of any interested person[.]" Subsection 2(c) of the same part provides:
A complaint ... shall contain concise statements of: (1) the legal authority under which the proceeding, hearing or action is to be held or made, (2) the disagreement, denial, grievance or such matter which is being contested by the petitioner or applicant, (3) the basic facts and issues raised, and (4) the relief to which the party, petitioner or applicant deems himself entitled. The Department may prepare departmental forms which may he substituted for any petition or application which may be required for any authorized proceeding pursuant to law or rules.
. Although the Appellees' requested relief includes declaratory and injunctive remedies, in an agency appeal, the court only has power to grant relief in accordance with HRS § 91—14(g).
. In a sworn statement attached as an exhibit to her Application for Contested Case, Martinovitch claimed under penalty of perjury that: (1) she and her daughter live "on properly adjacent to Ormat's Planned Site"; (2) activities on the Or-mat site "have caused my family distress [and] discomfort”—specifically, diesel exhaust entering bedroom and kitchen windows, being wakened daily at early morning hours by the operation of bulldozers parked less than 20' from her proрerty, helicopter noise, property destruction, and increased traffic unsuitable to the area—and (3) she fears the recurrence of physical illness suffered as a result of leaks from another geothermal project. Martinovitch repeated many of these claims, including ill health effects, in her testimony at one of the DOH public hearings.
Although they did not attach similar exhibits, several of the other Appellees also testified at the DOH public hearings. Perry and Petricci alleged thаt they were adjacent property owners who feared for their health. Phillips stated that he has experienced "ill effects" at his home and business (flower farm) in Leilani Estates.
. Our review of the record reveals that Martino-vitch, PDF, Petricci and Phillips each submitted an application, however, both Perry and the Ka-poho Community Association apparently failed to do so.
. PDF submitted a document to DOH that mentions an individual named Sheila Dorsey and her daughter, who suffered injuries related to geоthermal projects; the document also notes that Dorsey interviewed fifteen area residents who suffered similar injuries. We could find no assertion by PDF, however, that Dorsey or any of the other injured persons is a member of PDF. Nor could we find any relevant assertion specifically linking a PDF member to actual or threatened harm of an individualized nature.
The record does not indicate that the DOH denied PDF’s request for a contested case hearing because PDF did not have standing to participate in such a proceeding. The agency’s response, which was also sent to those individuals who clearly had standing, merely indicated that the DOH found "no legal mandate to grant such a request[.]” Apparently, this finding was based upon advice provided by the Attorney General’s office but not included in the record. Therefore, we expressly reserve comment on PDF's standing to request judicial review in this case. See HRS § 91-14(e).
. Jordan was admitted as an intervenor in a contested case; he failed to comply with non-jurisdiсtional aspects of HRCP Rule 72 on appeal, but otherwise met the relevant jurisdictional requirements.
Jordan, 62
Haw. at 451,
.
See, e.g., Life of the Land v. Land Use Comm'n,
