Opinion
In this declaratory relief action, the trial court granted summary judgment to plaintiff and respondent San Diego Gas & Electric Co. (SDG&E) and against defendants and appellants the City of Carlsbad and its officials (City), on the ground that City’s effort to regulate, by way of City’s floodplain management regulations (Carlsbad Mun. Code
City appeals, contending it should have concurrent jurisdiction with the PUC over disposition of the spoils of SDG&E’s dredging operation because (1) the PUC has not taken any action to regulate this specific activity, (2) disposal of sand produced by dredging should not be considered to be аn essential utility facility or activity which would be clearly subject to PUC control, and/or (3) general police power allows such health and safety regulation. Applying standard rules for determining if state law preempts local regulation, we conclude the subject constitutional and statutory provisions grant power to the PUC, not to City, to place restrictions on this activity.
Factual and Procedural Background
At all relevant times, SDG&E, a public utility company, owned and operated the Encina Electrical Generating Plant (the plant), which supplies electricity to approximately 950,000 customers in and around City. The plant is located on land SDG&E owns on Agua Hedionda Lagoon (the lagoon) in the City. SDG&E extensively dredged the westernmost portion of the lagoon in 1952-1954 when it constructed the plant, and continues to do so to keep the lagoon open so that channeled and accumulated sea water may be used for the essential purpose of cooling the plant’s electric generating units. Normal tidal and wave action causes sand to migrate southward along the coast, building up inside the lagoon and its inlet. Should routine maintenance dredging be discontinued, the risk of lagoon closure, plant shutdown, and ecological damage is increased.
The proceeds from dredging, sediment from the lagoon floor, are termed dredging spoils and are piped westward and deposited on the adjacent coastline. The coastal area involved here is a state beach located within City’s boundaries. The beach is owned by the State Lands Commission (SLC) and operated by the State Parks and Recreation Department (DPR). City has no ownership interest in it. Pursuant to a lease from the SLC and permits from the DPR and the California Coastal Commission, SDG&E deposits dredging spoils (sand) on the state beach area. Historically, SDG&E
Beaches in the City area have sustained extensive erosion and sand loss in recent years. In 1983, City adopted the Agua Hedionda segment of its coastal zone plan, to establish a permit scheme to regulate coastal development, including dredging. (CMC, ch. 21.80.) The purpose of the ordinance was to implement coastal preservation goals as set forth in the California Coastal Act of 1976. (Pub. Resources Code, § 30000 et seq.) Such goals include protection of residents and minimization of costly flood control expenditures, which is also consistent with federal legislative goals found in the National Flood Insurance Act of 1968 (42 U.S.C. § 4001 et seq.), which required local entities to enact such regulations. Local entities which did not enact such development limitations effectively precluded their residents from being eligible for federal assistance in case of flooding. (42 U.S.C. § 4002(b)(3).)
In 1988, City adopted its floodplain management regulations (floodplain ordinance), designed to conserve natural resources, prevent flooding, and prevent and control beach and shore erosion. (CMC, ch. 21.110.) The preamble of the floodplain ordinance relies as authority on the comprehensive planning and zoning law of Government Code section 65302 et seq., which is designed to promote public health, safety and welfare. This ordinance provides that no structure or land in certain areas of City may be “constructed, located, extended, converted or altered” without a special use permit, and that failure to obtain a required permit is a misdemeanor. (CMC, § 21.110.080.)
Under protest, SDG&E obtained in 1993 a City special use permit for its maintenance dredging of the outer lagoon area, for a five-year period. The permit gives City officials the power to approve the dredge plan and the location of the deposit of spoils. In September 1995, as a condition of the permit, the city engineer ordered SDG&E to place the first 150,000 cubic yards of dredge spoils (later modified to 100,000 cubic yards, out of an anticipated 450,000 total cubic yards) on a northerly section of the state beach (North Beach), about a mile north of the mouth of the lagoon. North Beach was a critically eroded part of the shoreline. SDG&E did not appeal the conditions of the permit, but later began dredging in violation of those conditions, dumping sand elsewhere. City issued a stop work notice and sent police officers to enforce it. SDG&E then appealed the permit conditions to the city council, which amended but upheld the conditions.
Before the scheduled trial date, SDG&E brought a motion for summary judgment on the declaratory relief request (dismissing other causes of action for injunctive relief, etc.), and City did likewise, seeking a ruling on whether it had the authority to regulate the deposit of sand dredged by SDG&E on beaches within its boundaries. SDG&E’s expert oceanographer, Scott A. Jenkins, gave his opinion that it would be futile to deposit sand “immediately” to the north of the lagoon and jetty, as it would naturally migrate southward and require further dredging. City’s official, defendant City Engineer Lloyd Hubbs, stated that no evidence exists that placing sand on North Beach as requested, one mile north of the lagoon, will increase the flow of sand back to the lagoon.
Ultimately, SDG&E’s motion was granted and City’s denied, the court ruling that there were no triable issues of fact as to whether City’s floodplain ordinance and permit procedure were void as to SDG&E, “as they constitute an attempt to regulate an essential utility facility or activity under the guise of protecting public safety.” The trial court declined to grant declaratory relief at SDG&E’s request to the effect that City should have pursued grievance proceedings through the PUC, as that issue had not been raised in the pleadings. Judgment was entered accordingly and City appeals.
3
By
Discussion
Because the trial court’s decision was rendered in the context of cross-summary judgments (Code Civ. Proc., § 437c), our standard of review is well settled: “[T]he aрplicable standard of review on appeal in this case is de novo or independent review. There were no credibility issues at trial and the court decided only . . . limited question^] of law[.] As an appellate court, we ‘conduct independent review of the trial court’s determination of questions of law.’ [Citation.] Interpretation of a statute is a question of law. [Citations.] Further, application of the interpreted statute to undisputed facts is also subject to our independent determination. [Citation.]”
(Harbor Fumigation, Inc.
v.
County of San Diego Air Pollution Control Dist.
(1996)
We first set forth rules for examining if a particular area of regulation has been fully occupied by statutory or constitutional law, and then analyze the respective roles of state and local government concerning utility regulation and coastal management in this factual context.
I
Preemption Analysis
In
Sherwin-Williams Co.
v.
City of Los Angeles
(1993)
Statutes must be read in the context of related constitutional and statutory provisions.
(Dyna-Med, Inc.
v.
Fair Employment & Housing Com.
(1987)
Determining whether local legislation has entered an area “fully occupied” by general law first requires determining what is the relevant field of
II
Utility Regulation
A
State Regulation
Under California Constitution, article XII, section 3, a private utility corporation such as SDG&E is considered to be a public utility subject to control by the Legislature. California Constitution, article XII, section 8 establishes, in pertinent part, the permissible scope of local regulation in the utility context: “A city, county, or other public body may not regulate matters over which the Legislature grants regulatory power to the [PUC].”
Regulation of public utilities by the PUC is generally authorized by section 701: “The [PUC] may supervise and regulate every public utility in the State and may do all things, whether specifically designated in this part or in addition thereto, which are necessary and convenient in the exercise of such power and jurisdiction.” Section 768 is generally relevant here, as pertaining to the PUC’s power to require health and safety measures in the operation of utilities: “The commission may, after a hearing, require every public utility to construct, maintain, and operate its line, plant, system, equipment, apparatus, tracks, and premises in a manner so as to promote and safeguard the health and safety of its employees, passengers, customers, and the public. The commission may prescribe, among other things, the installation, use, maintenance, and operation of appropriate safety or other devices or appliances, including interlocking and other protective devices at grade
Section 2902 states that notwithstanding comprehensive statewide utility regulation, certain existing municipal powers are retained by municipalities, as follows: “This chapter shall not be construed to authorize any municipal corporation to surrender to the commission its powers of control to supervise and regulate the relationship between a public utility and the general public in matters affecting the health, convenience, and safety of the general public, including matters such as the use and repair of public streets by any public utility, the location of the poles, wires, mains, or conduits of any public utility, on, under, or above any public streets, and the speed of common carriers operating within the limits of the municipal corporation.” (§ 2902; see
Southern Cal. Gas Co.
v.
City of Vernon
(1995)
B
Local Regulation
The general authorization for a local entity’s police power is found in California Constitution, article XI, section 7: “A county or city may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws.” California Constitution, article XI, section 9, subdivision (b) permits municipalities to prescribe conditions and regulations for the operation of public utility works by private entities.
Under CMC section 21.110.080, no structure or land in certain areas of City may be “constructed, located, extended, converted or altered” without a special use permit. The methods of reducing flood losses contained in the floodplain ordinance include “[controlling filling, grading, dredging and other development which may increase flood damage” (CMC, § 21.110.040(4)), and “development” is defined in the ordinance as including dredging. (CMC, § 21.110.050(10).) A special use permit is required
C
Case Law
Case law has established the parameters of these various forms of regulation. Recently, the Supreme Court in
San Diego Gas & Electric Co.
v.
Superior Court
(1996)
In
Vernon, supra,
In
Vernon, supra,
In
Orange County Air Pollution Control Dist.
v.
Public Util. Com.
(1971)
In
California Water & Telephone Co.
v.
County of Los Angeles
(1967)
In a decision of the PUC,
Re Rules, Procedures and Practices Applicable to Transmission Lines Not Exceeding 200 Kilovolts
(1994) 55 Cal.P.U.C.2d 87
(200 Kilovolts)
provided in the record, the PUC was presented with a problem concerning jurisdiction over the construction of electric power lines and substation facilities designed to operate between 50 and 220 kilovolts.
7
Some confusion had arisen due to the PUC’s previous lack of active regulation of such facilities, and local agencies had filled the breach. In its decision, the PUC explained that it was now its intent to exercise exclusive jurisdiction over all privately owned utility electric facilities in California, and it made no difference that the PUC had not expressly exercised jurisdiction over a particular matter because: “The Commission’s jurisdiction is necessary to ensure that decisions made on the basis of strictly local concerns do not impede or impair the placement of facilities necessary for the rational development of a statewide utility system.”
(Id.
at pp. 96-97; see
California Coastal Comm’n
v.
Granite Rock Co.
(1987)
With all these authorities in mind, we turn to the facts of this case.
III
City’s Arguments and Application of Authority
City’s many and various arguments may be generally categorized as follows: First, because the PUC had not enacted specific regulations over the
A
Lack of Specific PUC Regulation
The narrow question presented is whether City’s floodplain ordinance has “enter[ed] an area that is ‘fully occupied’ by general law” (Sherwin-Williams, supra, 4 Cal.4th at p. 898), due to evident legislative intent that is impliedly present under the second of the three usual tests for such implied preemption, i.e., has the subject matter been partially covered by general law couched in such terms as to indicate clearly that a paramount state concern will not tolerate further or additional local action? (Ibid.) (Neither the rule of express preemption nor the first and third tests for implied preemption, as stated in Sherwin-Williams, supra, 4 Cal.4th at pp. 897-898, appear to be readily applicable under these facts; see pp. 792-793, ante.)
The first question to answer is what definition should the subject “field” of regulation be given. (CWTC, supra, 253 Cal.App.2d at pp. 27-28.) It is not disputed that the PUC has not specifically regulated the activity of disposing of the spoils of dredging; as argued by the amici curiae cities, “A vacuum exists that has been appropriately filled by Carlsbad’s Special Use Permit.” Nor is it disputed that, as stated in City’s opposition to the SDG&E motion, the purpose of maintenance dredging “is to increase the operating efficiency of the [pjlant by providing more water for cooling and to reduce risk of the closing of the mouth of the [ljagoon, for the benefit of SDG&E’s facility and the ecosystem of the [ljagoon.”
The PUC has been given the power in section 701 to “supervise and regulate every public utility in the State” and to “do all things, whethеr specifically designated in this part or in addition thereto, which are necessary and convenient in the exercise of such power and jurisdiction.” Section 768 then gives the PUC the power to require health and safety measures in the operation of utilities, such as requiring public utilities to “construct, maintain, and operate its line, plant, system, equipment, apparatus, tracks,
City argues here that it should be allowed to regulate disposition of spoils within its city limits (albeit on state owned and operated public beaches) because its residents have an interest in safe and sandy beaches, which should give rise to concurrent jurisdiction between City and the PUC over this activity. City contends the disposition of spoils does not constitute an essential utility facility or activity, such as the trial court found was involved, and that maintenance dredging itself can and must be differentiated from the spoils of such dredging.
To support its position, City relies on
OCAPCD, supra,
The OCAPCD authority, supra, 4 Cal.3d at page 951, footnote 5, further indicates that even though a matter may be of local geographical concern, it may still essentially be a subject of statewide concern (giving such examples as the business of supplying telephone service, the construction and maintenance of telephone lines within a city, and the control of city streets at railroаd grade crossings). Thus, the location of the beaches within City limits is not dispositive here.
Moreover, the PUC itself, in the
200 Kilovolt
case, expressed an intent to exercise exclusive jurisdiction over “[a]ll utility-owned electric transmission
Even though courts do not readily find implied preemption of a field of endeavor where it is deemed possible to read conflicting enactments in such a way as to uphold both
(People
ex rel.
Deukmejian
v.
County of Mendocino, supra,
Here, City’s requirement of a special use permit for dredging, placing conditions on the exercise of SDG&E’s right to dredge, on its face places a significant physical and economic burden on SDG&E’s operation and maintenance of its facilities. The floodplain ordinance is subject to enforcement through criminal and civil sanctions. This form of regulation goes beyond
As emphasized by the Supreme Court in the
San Diego Gas & Electric Co.
v.
Superior Court, supra,
In conclusion on this point, we reject City’s argument that the trial court’s ruling erroneously failed to specify if the floodplain ordinance were void as facially unconstitutional or only as applied. Facial challenges consider only the text of a measure, not the application of the measure to particular circumstances.
(Tobe
v.
City of Santa
Ana (1995)
B
Different Purposes of Alternative Regulatory Schemes
In its alternative argument, City contends that it was authorized to enact its floodplain ordinance and related coastal development ordinance (CMC, chs. 21.80, 21.110 et seq.) under federal and state law, which directed it to accomplish certain purposes that are unrelated to utility regulation. Specifically, it relies on coastal preservation goals as set forth in the California Coastal Act of 1976 (Pub. Resources Code, § 30000 et seq., Coastal Act), and the National Flood Insurance Act of 1968 (42 U.S.C. § 4001 et seq.), which required local entities to enact such regulations if they wished to make their residents eligible for disaster relief. Further, City contends its general police power to enact planning and zoning lаws under Government Code section 65302 et seq. should give it independent power and concurrent jurisdiction to regulate the disposition of dredging spoils as it affects, e.g., erosion control. (Gov. Code, § 65302, subd. (d)(4).)
City relies on the rule that if local legislation clearly serves local purposes, state legislation that appears to be in conflict but that actually serves different statewide purposes will not be found to have preemptive effect. (Santa Monica Pines, Ltd. v. Rent Control Board, supra, 35 Cal.3d at pp. 868-869.) Conflicting statutes should be harmonized wherever possible to give each effect. (Conway v. City of Imperial Beach, supra, 52 Cal.App.4th at pp. 84-85.) The local purpose asserted here is regulation of land use to restrict development in flood-prone areas, in order to minimize expensive flood damage.
Certainly, City had the duty to comply with the policies and regulations of the federal Flood Insurance Act and the state Coastal Act and land use law. However, such compliance does not authorize local regulation in a field otherwise occupied as a matter of statewide interest, and has nothing to do with the actual issue presented here: The legality of local restrictions on maintenance dredging by a highly regulated utility. Essentially, the
Finally, we are compelled by the above analyses to reject the proposed standards offered by the amici curiae cities to permit local regulation of public utilities where local law does not directly conflict with PUC rules and regulations, and where no state regulation directly conflicts with local law. 10 Each of these standards disregards the rule of implied preemption and would promote endless litigation to resolve questions of whether local law infringes on an occupied field, and whether such regulations would “unreasonably interfere” with essential public utility functions or facilities. Particularly in the utility field, a bright line rule is preferable, and we choose to draw a more readily definable line in the sand. As applied to the SDG&E plant, the floodplain ordinance dredging regulation is impliedly preempted by state regulation.
The summary judgment is affirmed.
McIntyre, J., and O’Neill, J., * concurred.
Appellants’ petition for review by the Supreme Court was denied September 23, 1998.
Notes
All further statutory references are to the Public Utilities Code unless otherwise specified.
Relief in mandamus and injunctive relief were requested to prevent City from enforcing the conditions of its special use permit. These requests were later dismissed, leaving only the declaratory relief issue.
Before oral argument, City advised this court that due to a merger of companies, the plant was anticipated to be sold by SDG&E by the year 2000 and inquired if further briefing on the effect of that factual development was desired. We did not seek such further briefing at this time as the issues presented must be decided on the current record.
In support of appellants’ position, the Cities of Bakersfield, Eureka, San Luis Obispo, San Pablo, Monterey. Chula Vista, Poway, Encinitas, Calabasas, Rialto, Carson, Berkeley, Culver City, Walnut Creek, Santa Rosa, Benecia, Coronado, San Rafael, Vista, Galt, Palm Springs, Ross, San Anselmo, Escondido, Redding, Redlands, Vacaville, Montebello, Marina, Del Rey Oaks, Vernon, Needles, Saratoga, Palm Desert, Hayward, Burbank, San Francisco, Long Beach, Walnut, Pico Rivera, Albany, Anaheim, Del Mar, Merced, Morro Bay, Saint Helena, Modesto, Lafayette, Imperial Beach, Woodlake, Visalia, Tulare, Porterville, Lodi, Moreno Valley, San Fernando, Malibu, Capitola, Burlingame, Sacramento and Campbell have filed an amici curiae brief.
To support its position that PUC jurisdiction is exclusive here, SDG&E cites to section 761, allowing the PUC to establish rules for performance of services or furnishing of commodities by a public utility, and section 762, dealing with PUC orders for additions to, repair, or change in physical property, and related matters. These sections allow extensive PUC regulation of facilities.
“Air pollution control districts were created by the Legislature in 1947 to protect the state’s ‘primary interest in atmospheric purity’ (Health & Saf. Code, § 24198). The air pollution control district is the agency charged with enforcing both statewide and district emission controls. (§ 24224.)” (OCAPCD, supra, 4 Cal.3d at p. 948, italics and fns. omitted.)
In
Western Oil & Gas Assn.
v.
Monterey Bay Unified Air Pollution Control Dist.
(1989)
This record does not present the abstract question of whether a local entity may regulate, within its jurisdiction, the disposal of dredging spoils taken in the operation of a public utility, and we express no opinion on that subject.
SDG&E points out that under its lease from the SLC it is allowed to deposit sand on state beaches, so that any jurisdiction over sand dumping should reside in the SLC. (Pub. Resources Code. §§ 6301, 6303. 6306.1, 6828.) It also claims that the California Coastal Act of 1976 regulates development of energy facilities (Pub. Resources Code, § 30601, subd. (3)), and under CMC section 21.80.030(b)(3), this plant is specifically exempted from coverage by the terms of the coastal development ordinance. These alternate jurisdictional issues need not be decided in our examination of the floodplain оrdinance itself. (CMC, ch. 21.110 et seq.)
As stated by amici curiae cities, their preferred standard for determining when a city can regulate a public utility is as follows: If no PUC order, rule or regulation exists governing the specific area sought to be regulated and no statutory provision covers the area, cities should be allowed to regulate public utilities operating in their jurisdiction on these matters. The modified standard offered would allow cities to regulate public utilities in the manner described above, “with the exception that if such regulation would unreasonably interfere with an essential public utility function or facility, such regulation would be deemed preempted because of such unreasonable interference.” (Italics omitted.)
Judge of the San Diego Superior Court, assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution.
