In these appeals, we consider whether the Court of Appeals of Virginia correctly determined that an environmental conservation organization has standing to appeal the approval of a wastewater discharge permit affecting the James River issued by the State Water Control Board. Specifically, the issue presented in these appeals is whether the organization has representational and individual standing to request judicial review to challenge the issuance of the permit pursuant to the provisions of Code § 62.1-44.29.
BACKGROUND
Philip Morris USA Inc. (Philip Morris), with headquarters in Richmond, Virginia, is the nation's largest cigarette manufacturer. Philip Morris' Park 500 facility in Chester, Virginia is used to produce a reconstituted tobacco product. Since 1972, the Park 500 facility has held a discharge permit allowing the disposal of treated wastewater into the James River at a point below Richmond. On October 28, 2002, Philip Morris filed a permit renewal application under the Virginia Pollution Discharge Elimination System. Code § 62.1-44.15.
The discharge of pollutants into public waterways is regulated by the federal Clean Water Act of 1977, 33 U.S.C § 1251 et seq. (2000 & Supp. IV 2004). The Clean Water Act allows states to administer the issuance of wastewater discharge permits within their territories. The State Water Control Board administers the wastewater discharge permit program in Virginia under the State Water Control Law. Code §§ 62.1-44.2 through 62.1-44.34:28.
The Chesapeake Bay Foundation (the Foundation), a non-profit corporation registered with the Virginia State Corporation Commission and dedicated to protecting the Chesapeake Bay and its tributaries, participated in the public comment process regarding the renewal of the Park 500 facility permit. The Foundation contended that the levels of nitrogen and phosphorus in the wastewater discharged by the Park 500 facility would impair the river's designated uses and kill or injure fish and aquatic plants. Following a public hearing, the State Water Control Board approved the renewal of Philip Morris' Park 500 facility permit.
Thereafter, the Foundation timely filed a petition for appeal in the Circuit Court of Chesterfield County. The petition alleged that the State Water Control Board's decision to issue the permit violated various provisions of the federal Clean Water Act and the State Water Control Law, citing
Philip Morris and the Commonwealth, acting on behalf of the State Water Control Board, filed demurrers asserting that the Foundation had failed to plead sufficient facts to establish its standing in an individual capacity. Philip Morris and the Commonwealth further asserted that the Foundation's claims of representational standing were not authorized under any relevant statute.
Following a hearing on these demurrers, the circuit court issued an opinion letter dated January 4, 2005 in which it concluded that the Foundation had neither individual nor representational standing to pursue an appeal of the decision of the State Water Control Board to issue the renewed permit. In the opinion letter, subsequently incorporated by reference into a final order entered on April 28, 2005, the circuit court found that the Foundation had "suffered no particularized injury in fact and does not have the authority to sue on behalf of a class as required by the legislature." 1
The Foundation appealed the judgment of the circuit court to the Court of Appeals. In that appeal, the Foundation asserted that the circuit court incorrectly ruled that Virginia does not recognize representational standing and contended that it had pled sufficient facts to establish both representational and individual standing under Code § 62.1-44.29.
Philip Morris and the Commonwealth contended, based on prior Court of Appeals precedent, that representational standing is not recognized in Virginia unless it is specifically authorized by statute.
See Pearsall v. Virginia Racing Commission,
On April 4, 2006, the Court of Appeals issued a published opinion reversing the judgment of the circuit court.
Chesapeake Bay Foundation, Inc. v. Commonwealth,
Philip Morris and the Commonwealth filed separate petitions for appeal in this Court challenging the judgment of the Court of Appeals. We awarded appeals to both and consolidated the appeals for argument.
DISCUSSION
The principles of appellate review that guide our consideration of a circuit court's judgment granting a demurrer are well-established and do not need repetition at length here. A demurrer admits the truth of the facts alleged in the pleading to which it is addressed, as well as any facts that may be reasonably and fairly implied and inferred from those facts.
See, e.g., Mattaponi Indian Tribe v. Commonwealth,
Representational Standing
As they did in the circuit court and before the Court of Appeals, Philip Morris and the Commonwealth contend principally that representational standing to seek judicial review is not recognized in Virginia unless expressly granted by statute. With regard to the provisions of Code § 62.1-44.29 entitling "any person" under specific circumstances to judicial review of a State Water Control Board decision, they maintain that the language of the statute tracks the requirements for finding individual standing to challenge an administrative agency's action and, thus, they conclude that Code § 62.1-44.29 does not grant representational standing to seek judicial review of the decision of the State Water Control Board in this case. Accordingly, they maintain that the Court of Appeals erred in its previous holding in Stumpy Lake that Code § 62.1-44.29 grants representational standing in cases meeting its requirements and in reiterating that holding in the present case.
Initially, we think it helpful to clarify the procedural history regarding
Stumpy Lake.
The Court of Appeals noted in its opinion in the present case that "[a]lthough a petition for appeal of the
Stumpy Lake
decision was filed, the Supreme Court ultimately
refused to consider the appeal on the merits.
"
Chesapeake Bay Foundation,
The authority to issue wastewater discharge permits is granted to Virginia pursuant to the federal Clean Water Act,
All States that administer or seek to administer a program under this part shall provide an opportunity for judicial review in State Court of the final approval or denial of permits by the State that is sufficient to provide for, encourage, and assist public participation in the permitting process. A State will meet this standard if State law allows an opportunity for judicial review that is the same as that available to obtain judicial review in federal court of a federally-issued NPDES permit (see § 509 of the Clean Water Act). A State will not meet this standard if it narrowly restricts the class of persons who may challenge the approval or denial of permits.
Code § 62.1-44.29 provides for judicial review of decisions of the State Water Control Board. The current version of Code § 62.1-44.29 provides that:
Any owner aggrieved by, or any person who has participated, in person or by submittal of written comments, in the public comment process related to, a final decision of the Board under §§ 62.1-44.15(5), 62.1-44.15(8a), (8b), and (8c), 62.1-44.15:5, 62.1-44.16, 62.1-44.17, 62.1-44.19 or § 62.1-44.25, whether such decision is affirmative or negative, is entitled to judicial review thereof in accordance with the provisions of the Administrative Process Act (§ 2.2-4000 et seq.) if such person meets the standard for obtaining judicial review of a case or controversy pursuant to Article III of the United States Constitution. A person shall be deemed to meet such standard if (i) such person has suffered an actual or imminent injury which is an invasion of a legally protected interest and which is concrete and particularized; (ii) such injury is fairly traceable to the decision of the Board and not the result of the independent action of some third party not before the court; and (iii) such injury will likely be redressed by a favorable decision by the court.
However, prior to 1996, Code § 62.1-44.29 limited the right to seek judicial review of a decision of the State Water Control Board to aggrieved owners of permitted facilities.
See Stumpy Lake,
Also in 1996, the United States Court of Appeals for the Fourth Circuit issued its opinion in
Virginia v. Browner,
Like the then effective language of Code § 62.1-44.29, the judicial review provisions of Code § 10.1-1318 limited standing for judicial review to owners aggrieved by decisions of the state's permitting agency.
Id.
at 876. The Fourth Circuit held that the EPA's interpretation that a state must, at a minimum, provide judicial review of permitting decisions to any person who would have standing under Article III of the United States Constitution was correct and, accordingly, the EPA's decision denying delegatory permitting authority under the existing statutory scheme was proper.
Browner,
In response to Browner, but while that decision was on appeal to the United States Supreme Court, the General Assembly amended both Code § 10.1-1318 and Code § 62.1-44.29, as well as Code § 10.1-1457, the judicial review provision of the Virginia Waste Management Act, to include nearly identical provisions allowing any person aggrieved of a decision of the respective permitting authority to seek judicial review. These amendments were made effective on the condition that any subsequent reversal of the decision in Browner would repeal the amendments and revert the statutes to their original forms. 1996 Acts ch. 1032. The General Assembly subsequently and appropriately acknowledged that the Supreme Court's denial of certiorari in Browner effectively invalidated the prior provisions of Code § 10.1-1318, and by implication those of Code § 10.1-1457 and Code § 62.1-44.29, and, accordingly, the 1996 amendments to those statutes became final. 1997 Acts ch. 520.
In interpreting a statute, we presume that the General Assembly acted with full knowledge of the law in the area in which it dealt.
United Masonry, Inc. v. Riggs National Bank,
Representational standing essentially allows an organization to bring a suit on behalf of its members and was a well-established principle in federal law at the time of the 1996 amendment of Code § 62.1-44.29. We presume that the General Assembly was aware of this circumstance when it amended Code § 62.1-44.29. Accordingly, we will look to the federal court's requirements for establishing representational standing to determine whether the Foundation may claim representational standing in seeking judicial review of the decision of the State Water Control Board under this statute.
In
Warth v. Seldin,
In
Hunt v. Washington State Apple Advertising Comm'n,
The first prong of the representational standing test requires that the representing organization include "at least one member with standing to present, in his or her own right, the claim ... pleaded by the association."
United Food and Commercial Workers Union Local 751 v. Brown Group, Inc.,
We begin by examining whether the Foundation has alleged sufficient facts to establish individual standing for at least one of its members. In order to satisfy the first prong of the
Lujan
test a plaintiff must have pled that at least one of its members has an "injury in fact." In an environmental suit, allegations of injury to the environment are not sufficient to show a legally protected interest.
Laidlaw,
In their petition filed in the circuit court, the Foundation alleges that "[t]he discharge of nutrients in amounts and concentrations authorized by the unlawful [p]ermit . . . has and will continue to cause injury to the [Foundation] and . . . its members who regularly use and enjoy the James River, a tributary of the Chesapeake Bay[,] for swimming, boating, kayaking, canoeing, sport fishing, and other educational and recreational pursuits." (Emphasis added.) These constitute allegations of an actual and ongoing injury to the recreational interests of members of the Foundation sufficient to satisfy the injury in fact prong of Lujan.
Philip Morris and the Commonwealth contend that the alleged injury does not represent a legally protected interest and that generalized grievances of the public are not sufficient to grant standing.
See Gaston
Copper,
We therefore hold that the Foundation has sufficiently pled a concrete, particularized and legally protected injury to at least one of its members. At the pleading stage, the Foundation is not required to name those members.
The second prong of
Lujan
requires a causal connection between the injury alleged and the actions of defendants. More specifically, in the context of a challenge to a State Water Control Board decision, a plaintiff must allege that the "injury is fairly traceable to the decision of the Board and not the result of the independent action of some third party not before the court." Code § 62.1-44.29(ii);
see also Lujan,
The Foundation's petition alleges that the State Water Control Board's decision to issue the permit will excessively increase the amount of nutrients in the James River. The increase in nutrients causes algae blooms that harm aquatic life and increase the turbidity of the James River. As a direct result, the James River is changed in such a way as to harm the interest of the Foundation's members. As is common in environmental cases, there is admittedly more than one step in the causal chain. Despite this, the petition alleges sufficient facts, if true, to support the conclusion that there is a clear connection between the injury asserted and the decision of the State Water Control Board.
See Mattaponi Indian Tribe,
The final prong of the individual standing test requires an injury that "will likely be redressed by a favorable decision by the court." Code § 62.1-44.29(iii);
see also Lujan,
The Foundation seeks to have the discharge permit set aside and for the discharge into the James River to cease until such time as Philip Morris demonstrates that it is able to comply with the state designated use for the waterway. This result is a civil remedy that is available to an appropriate court of review. As such, the injury is redressable through a favorable decision by the court.
Based on the preceding analysis, we hold that the Foundation has sufficiently pled an injury to at least one member that would grant Article III standing.
The additional two prongs for representational standing described in Hunt are not significant issues in this case. Philip Morris and the Commonwealth have not contested that the interests the Foundation seeks to protect are germane to its purpose or that the relief requested requires the participation of the individual members. The Foundation is an organization established to protect the waterways of the Chesapeake Bay, of which the James River is one. An action to protect the James River from wastewater discharge that may be harmful to the river and bay is within that organizational purpose. Additionally, the remedy sought by the Foundation will address the asserted injury and will not require the participation of individual members. Accordingly, we hold that the second and third prongs of the test for representational standing have been met.
Having concluded that the petition filed in the circuit court has met, under the criteria of Code § 62.1-44.29, all the requirements that would grant Article III standing for an organization seeking representational standing, we hold that the statute authorizes representational standing to a corporate person to seek judicial review of a decision of the State Water Control Board and that the Foundation's petition was thus sufficient to survive the demurrers of Philip Morris and the Commonwealth.
We emphasize that our holding in this case is limited to instances where representational standing is provided for by a statute requiring Article III standing to seek judicial review of an action by a state agency under delegatory authority from the federal government. We are not called upon to consider under the facts of this case whether Virginia would recognize representational standing under any circumstances other than those presented by the facts of this case.
Individual Standing
We turn now to consider the assertion of Philip Morris and the Commonwealth that the Foundation lacked individual standing to seek judicial review in this case. Code 62.1-44.29 allows "any person who has participated, in person or by submittal of written comments, in the public comment process related to, a final decision of the Board" to obtain judicial review where there is Article III standing. Code § 62.1-44.3 defines a "`Person'" as "an individual, corporation, partnership, association, governmental body, municipal corporation or any other legal entity." The Foundation is a registered corporation and therefore falls within the relevant definition of person.
In order to have Article III individual standing, the Foundation must have pled facts sufficient to meet the test in Lujan and Code § 62.1-44.29 as previously described. The analysis is substantially similar to the analysis for individual standing of the organization's members.
The Foundation has alleged injury to itself as an organization separate and apart from any injury to its members. In its petition, the Foundation alleges that it "operates fifteen (15) educational programs, which include projects in and around the segment of the James River impacted by the unlawful nutrient discharges authorized by the challenged Permit. Among the [Foundation's] programs that are and will continue to be adversely affected by the unlawful nutrient discharges ... is the replenishment of underwater aquatic grasses in the vicinity of and downstream from the Philip Morris facility." The Foundation's petition further alleges that the excessive nitrates and phosphates in the wastewater discharge cause algae blooms that impact the usefulness of the James River for the Foundation's educational and recreational programs. The wastewater discharge also harms aquatic plants such as the ones included in the Foundation's planting activities. Based on these allegations, we hold that the Foundation has alleged sufficient facts to establish an "injury in fact" to itself as an organization.
The harms alleged on an individual and representational basis are similar. The reasoning in the previous discussion of causal connection and redressability also applies to the Foundation's assertion of individual standing and does not need to be repeated here. The facts alleged in the Foundation's petition, if true, establish a causal connection with its injury and that the relief sought is redressable by the courts.
CONCLUSION
In sum, we hold that Code § 62.1-44.29 provides for representational standing, by an appropriate entity, to seek judicial review of a case decision by the State Water Control Board, as well as for individual standing. We further hold that in the present case the Foundation's petition adequately establishes, for purposes of surviving the demurrers filed by Philip Morris and the Commonwealth, its representational and individual standing to seek judicial review of the State Water Control Board's decision to renew the permit with regard to Philip Morris' Park 500 facility.
For these reasons, the judgment of the Court of Appeals will be affirmed.
Affirmed.
The circuit court further found that the Foundation would not be able to cure these defects by amending the petition for appeal and, accordingly, although the Foundation had not yet requested leave to amend, prospectively opined that such a request would not be granted. The Foundation subsequently filed a motion for reconsideration and request for leave to amend. On April 8, 2005, the circuit court issued a second opinion letter reiterating its findings from the January 4, 2005 opinion letter and rejecting further authority cited by the Foundation. In denying the motion for reconsideration in the final order, the circuit court incorporated by reference this second opinion letter.
As in this case, both the Commonwealth and the permit-holder, Aegis Waste Solutions, brought independent appeals from the decision of the Court of Appeals in Concerned Taxpayers of Brunswick County.
Carol M. Browner was the Administrator of the EPA and was sued in her official capacity.
