COUNTY OF WAKE,
Petitioner
v
.
NORTH CAROLINA DEPARTMENT OF ENVIRONMENT & NATURAL RESOURCES,
and
JERRY FRANKS and JOHN SCHIFANO, et al.,
Respondents
and
TOWN OF HOLLY SPRINGS,
Respondent-Intervenor
Wake County Attorney's Office, by Michael R. Ferrell, for
petitioner-appellee County of Wake.
Land Loss Prevention Project, by Katherine Carpenter and
Marcus Jimison; John Schifano; and John D. Runkle, for
respondent-appellants Jerry Franks and John Schifano, et al.
The Sanford Holshouser Law Firm, by Anna K. Baird and Ernest
C. Pearson, for respondent-intervenor-appellant Town of Holly
Springs.
Attorney General Roy Cooper, by Assistant Attorneys General
Nancy E. Scott and Lauren M. Clemmons, for North Carolina
Department of Environment and Natural Resources, amicus
curiae.
James B. Blackburn, General Counsel; and Jordan Price Wall
Gray Jones & Carlton, by R. Frank Gray and Hope Derby
Carmichael, for North Carolina Association of County
Commissioners, amicus curiae.
CAMPBELL, Judge.
Jerry Franks, John Schifano, et al., and the Town of Holly
Springs (collectively, "respondents"), appeal the superior court's
reversal of a judicially-imposed final agency decision of the North
Carolina Department of Environment and Natural Resources ("DENR").
(See footnote 1)
The judicially-imposed final agency decision had ordered the
withdrawal of a permit to construct a municipal solid waste
landfill ("Facility Permit 92-22") that had been issued to Wake
County.
This appeal deals with numerous issues involving the
interpretation and application of North Carolina statutory and
regulatory law pertaining to solid waste management. This body of
law impacts decisions on where solid waste landfills are to be
located in this State and the relationships between counties and
municipalities in making and implementing such decisions.
In 1990, Wake County began pursuing plans to expand its South
Wake Sanitary Landfill, commonly referred to as the Feltonsville
Landfill, in order to provide additional space for the disposal and
storage of solid waste. The Feltonsville Landfill is located just
outside the Town of Holly Springs ("Town").
In October 1990, the Wake County Board of Commissioners
("County Board") authorized the purchase of a 162.37-acre tract of
land adjacent to the Feltonsville Landfill. In July 1991, anengineering consulting firm hired by Wake County informed the
County Board that the 162.37-acre tract was insufficient to handle
the long-term solid waste disposal needs of the County and
recommended that several tracts near the 162.37-acre tract also be
purchased for additional landfill space. On 5 August 1991, the
County Board directed County staff to pursue the acquisition of
additional property adjacent to the initial 162.37-acre expansion
area for the Feltonsville Landfill. The County Board subsequently
approved the purchase of four additional tracts of land, totaling
approximately 311 acres, all located within the zoning jurisdiction
of the Town.
In December 1991, Wake County officials met with the Town of
Holly Springs Board of Commissioners ("Town Board") to explain the
County's plans for expansion of the Feltonsville Landfill. County
officials delivered a detailed explanation of the landfill
expansion plans, provided maps showing the size and scope of the
project, and made themselves available for questions from the Town
Board. The minutes of the Town Board meeting recite that the
expansion is to "include a total of 482 acres, 400 of which [are]
to be located within Holly Springs." The minutes of the meeting
indicate no objections from the Town Board to the landfill
expansion plans as presented.
On 1 September 1992, County officials attended a second Town
Board meeting and again provided a detailed explanation of the
landfill expansion plans. The Town Board was informed that the
project would cover approximately 471 acres, with approximately 189acres used for municipal solid waste disposal, with the remaining
acreage used for buffers, sedimentation basins, access roads,
borrow areas, construction waste disposal, and ancillary
facilities. At the meeting, the Town Board voted to approve a
resolution granting "prior approval for the issuance of a sanitary
landfill permit by the Division of Solid Waste Management to Wake
County, said landfill to be established on approximately 380 acres
shown on the attached map, part of which acreage is located within
the extra-territorial zoning jurisdiction of the Town of Holly
Springs, North Carolina." Approximately 320 acres of the proposed
landfill was to be located within the Town's zoning jurisdiction.
On 4 December 1992, Wake County submitted a site plan
application for the proposed landfill facility to DENR pursuant to
the applicable solid waste management regulations. The cover
letter accompanying the site plan application referred to its
contents as an application for site approval for "the new South
Wake Solid Waste Management Facility." The submission of the site
plan application was accompanied by the required local government
approval from the Town Board, but was not accompanied by the
required approval from the County Board. The County Board's
approval was subsequently submitted to DENR's Division of Solid
Waste Management, Solid Waste Section.
In 1993, after Wake County had submitted its site plan
application, the law governing the construction of municipal solid
waste landfills changed to address the groundwater contamination
problem caused by "leachate seepage." "Leachate" is "liquid thathas passed through or emerged from solid waste and contains
soluble, suspended, or miscible materials removed from such waste."
15A NCAC 13B.1602(15) (2002). The new law and implementing
regulations required that all landfills be lined; that is, have a
system to capture and collect leachate for treatment at a local
wastewater treatment plant. In addition, all existing unlined
landfills, such as the Feltonsville Landfill, were required to
cease operations by 1 January 1998. As a result, the County's
proposed landfill facility could no longer accurately be referred
to as an "expansion" of the Feltonsville Landfill. Thereafter, the
proposed facility began to properly be referred to as a "new"
landfill. However, neither the size, location, anticipated years
of operation, location of roads, location of buffer areas, nor any
other factor related to the operation of the proposed facility
changed in any material respect from the plans presented to and
approved by the Town Board on 1 September 1992 and subsequently
submitted in the County's site plan application. The only thing
that changed was the law, which now mandated that the County's
proposed facility be considered a "new" landfill instead of an
"expansion" of the existing Feltonsville Landfill, which was now
set for closure in 1998.
On 15 December 1994, the County and the Town entered into an
Interlocal Agreement under which the Town agreed to provide the
County 50,000 gallons per day of wastewater treatment capacity in
the Town's wastewater treatment plant for the treatment of leachate
generated by the new landfill. In return, the County agreed toforgive $298,291.00 in debt owed by the Town and pay $228,800.00 to
the Town for construction of a wastewater collection system and
pumping station to service the landfill site. The Interlocal
Agreement reiterated the Town's approval of the construction and
operation of the proposed landfill facility within the Town's
zoning jurisdiction.
On 14 March 1995, DENR approved the County's site plan
application and authorized the County to prepare an application for
a permit to construct the proposed landfill. The County then
authorized its engineering consultants to prepare the documents
required to obtain the permit to construct. Those documents were
filed with DENR on 31 December 1996.
In the interim, on 17 April 1995, the Town and the County
amended their Interlocal Agreement to require the County to
forthwith pay the $228,800.00 to the Town for construction of the
wastewater collection system and pumping station instead of waiting
for approval of its permit to construct. The County paid the Town
accordingly.
On 20 May 1997, the Town Board adopted Resolution 97-23,
approving the Wake County Ten Year Comprehensive Solid Waste
Management Plan ("Plan"). The Plan stated that all municipal solid
waste generated in Wake County between the years 2003 and 2023
would be disposed of and stored at the proposed new facility
partially located in the Town of Holly Springs.
On 19 May 1998, the Town Board passed a resolution revoking
its prior approval of the issuance of a sanitary landfill permitfor the County's proposed landfill facility. The reasons given for
the Town Board's decision to revoke its approval included the
following: (1) the Town had only approved an "expansion" of the
Feltonsville Landfill, not a "new" landfill facility; (2)
conditions within the Town had changed dramatically since the Town
Board's grant of approval and the proposed landfill site was now
unsuitable; and (3) numerous procedural requirements related to the
permitting of the landfill had not been followed by the County.
On 18 February 1999, DENR issued Facility Permit 92-22,
allowing the County to begin construction of the landfill facility.
This permit, which is the focus of this case, grants specific
approval for the actual construction of Phase I of the municipal
solid waste disposal area ("MSW Phase I"), which is to be
constructed in five phases. MSW Phase I covers approximately 47
acres plus infrastructure such as a sediment pond and access roads.
MSW Phase I will be permitted to accept household, industrial, and
commercial solid waste, and has a projected life of approximately
four years. Facility Permit 92-22 also grants general approval
of the overall facility concept and layout. However, no other
phase of the landfill may be constructed without additional
approval from DENR. To construct any phase beyond MSW Phase I,
Wake County must receive an amendment to Facility Permit 92-22.
On 19 March 1999, respondent Jerry Franks filed a petition for
a contested case hearing with the Office of Administrative Hearings
("OAH"), alleging DENR had issued Facility Permit 92-22 (1) withoutapproval from the Town and County as required under 15A NCAC
13B.1618(c)(5)(A); (2) without the Town and County holding the
required public meetings under 15A NCAC 13B.1618(c)(5)(A)(i); (3)
based on inaccurate and incomplete application data; (4) in
violation of N.C. Gen. Stat. § 130A-294(b1)(2); and (5) in
violation of N.C. Gen. Stat. § 153A-136(c).
On 23 March 1999, John Schifano, et al. also filed a contested
case petition with OAH, alleging DENR had issued the permit (1) in
violation of N.C. Gen. Stat. §§ 160A-325 and 153A-292; and (2)
without the Town's required approval.
DENR and Wake County were both named as respondents in the
petition filed by Franks. However, Wake County was not named as a
respondent in the petition filed by Schifano et al. Wake County
was allowed to intervene in the Schifano, et al. contested case and
the OAH consolidated the contested cases for hearing. Thereafter,
all parties moved for summary disposition.
On 28 September 1999, the administrative law judge ("ALJ")
issued a recommended decision granting summary judgment in favor of
respondents Franks and Schifano et al. and ordering withdrawal of
Facility Permit 92-22 until all applicable procedural requirements
were met. The ALJ concluded: (1) respondents Franks and Schifano,
et al. were "persons aggrieved" under the North Carolina
Administrative Procedure Act ("NCAPA") with standing to bring a
contested case petition challenging DENR's issuance of Facility
Permit 92-22; (2) respondents Franks and Schifano, et al. also had
taxpayer standing; (3) the Town's 1 September 1992 resolution onlygranted approval for a "lateral expansion" to the Feltonsville
Landfill and not a "new" landfill facility; (4) the Town's approval
on 1 September 1992, however classified, was properly and legally
withdrawn prior to DENR's issuance of the permit; (5) the County
failed to obtain a franchise for operation of a solid waste
landfill pursuant to N.C. Gen. Stat. § 160A-319; (6) issuance of
the permit violated 15A NCAC 13B.1618; (7) issuance of the permit
violated N.C. Gen. Stat. § 130A-294; and (8) issuance of the permit
violated N.C. Gen. Stat. § 153A-136(c).
On 3 November 1999, the sealed record in this matter was
transmitted from OAH to DENR for a final agency decision. DENR had
90 days from that date to render its final agency decision under
N.C. Gen. Stat. § 150B-44.
(See footnote 2)
On 1 February 2000, a few days before
the final agency decision was due, DENR unilaterally declared "good
cause" shown for an extension of time to render its final agency
decision up to and including 2 March 2000. On 1 March 2000, DENR
again unilaterally declared "good cause" for an extension of time
up to and including 31 March 2000. On 30 March 2000, DENR for a
third time extended the time for rendering its final agency
decision up to and including 7 April 2000.
On 6 April 2000, the individual respondents filed a petition
for judicial intervention alleging DENR had violated N.C. Gen.
Stat. § 150B-44 by taking multiple extensions of time in which torender its final agency decision. On 7 April 2000, DENR issued a
final agency decision modifying the ALJ's recommended decision,
withdrawing Facility Permit 92-22, and remanding the matter to the
Division of Waste Management, Solid Waste Section, to await Wake
County's compliance with N.C. Gen. Stat. § 153A-136(c). However,
on 4 October 2000, the individual respondents' petition for
judicial intervention was granted and the superior court ordered
that the recommended decision of the ALJ be treated as DENR's final
agency decision. See Holland Group v. N.C. Dept. of
Administration, 130 N.C. App. 721, 504 S.E.2d 300 (1998) (holding
an administrative agency is only entitled to one extension of time
in which to render its final decision under N.C.G.S. § 150B-44).
On 11 October 2000, Wake County filed a petition for judicial
review of the final agency decision pursuant to N.C. Gen. Stat. §
150B-45. Wake County asserted the final agency decision was "1) in
excess of the statutory authority or jurisdiction of the Agency, 2)
made upon unlawful procedure, 3) affected by error of law, 4)
unsupported by substantial evidence in view of the entire record
and/or 5) arbitrary and capricious."
On 28 November 2000, the parties entered into a consent order
allowing the Town of Holly Springs to intervene in the matter.
On 19 March 2001, the superior court entered an order
reversing the final agency decision and ordering Facility Permit
92-22 be reissued. The superior court concluded: (1) respondents
Franks and Schifano, et al. lacked standing under the NCAPA to
raise the issue of whether the Town approved the location of theproposed landfill; (2) by its 1 September 1992 resolution, the Town
approved the location of a "new" landfill within its jurisdiction
as required by N.C.G.S. § 130A-294 and 15A NCAC 13B.0504(1)(e) as
they existed at the time; (3) once DENR issued site plan approval
to Wake County on 14 March 1995, the Town was prevented from
"withdraw[ing] [its] approval absent a showing that the approval
was obtained by fraud or material misrepresentation, or that
construction plan documents subsequently filed demonstrate[d] that
the facility being submitted for a permit [was] substantially
different from that which was presented to the [Town] for its
approval[;]" (4) the Interlocal Agreement between the County and
Town was an enforceable contract by which the Town released its
right to withdraw approval for the proposed landfill; (5) Wake
County was not required to obtain a franchise from the Town under
N.C.G.S. § 160A-319; (6) the provisions of 15A NCAC 13B.1618 did
not apply to Wake County's application; (7) N.C.G.S. § 130A-
294(b1)(1)-(3) did not apply to Wake County's application; and (8)
N.C.G.S. § 153A-136(c) did not apply to Wake County's application.
Respondents Franks, Schifano et al., and the Town of Holly Springs
appeal to this Court.
Under the NCAPA, a final administrative agency decision may be
reversed or modified by the superior court if the agency's
findings, inferences, conclusions or decisions are:
(1) In violation of constitutional provisions;
(2) In excess of the statutory authority or
jurisdiction of the agency;
(3) Made upon unlawful procedure;
(4) Affected by other error of law;
(5) Unsupported by substantial evidence
admissible under G.S. 150B-29(a), 150B-30, or
150B-31 in view of the entire record as
submitted; or
(6) Arbitrary, capricious, or an abuse of
discretion.
N.C. Gen. Stat. § 150B-51(b) (2001). The standard of review to be
employed by the superior court is dictated by the nature of the
error asserted by the party seeking review. Dillingham v. N.C.
Dep't of Human Res., 132 N.C. App. 704, 708, 513 S.E.2d 823, 826
(1999). If the petitioner contends the agency's decision was
affected by errors of law, N.C.G.S. § 150B-51(1)(2)(3) & (4), de
novo review is required; if the petitioner contends the agency
decision was not supported by the evidence, N.C.G.S. § 150B-51(5),
or was arbitrary, capricious, or an abuse of discretion, N.C.G.S.
§ 150B-51(6), the whole record test is utilized. Id. "De novo
review requires a court to consider the question anew, as if the
agency has not addressed it." Blalock v. N.C. Dep't of Health and
Human Servs., 143 N.C. App. 470, 475-76, 546 S.E.2d 177, 182
(2001). Under the whole record test, the reviewing court must
examine all competent evidence (the 'whole record') in order to
determine whether the agency decision is supported by 'substantial
evidence.'" ACT-UP Triangle v. Commission for Health Services, 345
N.C. 699, 706, 483 S.E.2d 388, 392 (1997) (quoting Amanini v. N.C.
Dept. Of Human Resources, 114 N.C. App. 668, 674, 443 S.E.2d 114,
118 (1994)). In reviewing a superior court order entered upon
review of an administrative agency decision, this Court has a two-fold task: "(1) determine whether the trial court exercised the
appropriate scope of review and, if appropriate; (2) decide whether
the court did so properly." Deep River Citizen's Coalition v. N.C.
Dep't of Env't & Natural Res., 149 N.C. App. 211, 213, 560 S.E.2d
814, 816 (2002). In performing this task, this Court need only
consider "'those grounds for reversal or modification argued by the
petitioner before the superior court and properly assigned as error
on appeal to this Court.'" Amanini v. N.C. Dept. of Human
Resources, 114 N.C. App. 668, 675, 443 S.E.2d 114, 118 (1994)
(quoting Professional Food Services Mgmt. v. N.C. Dept. of Admin.,
109 N.C. App. 265, 268, 426 S.E.2d 447, 449 (1993).
Having reviewed the superior court's order, we conclude it
properly exercised de novo review in examining the substantive
issues raised by respondents' appeal. We now determine whether it
did so properly.
As an initial matter, respondents contend the superior court
erred in concluding the individual respondents lacked standing to
raise the issue of whether the Town approved the location of the
County's proposed solid waste landfill within its jurisdiction.
The superior court concluded the right of approval belonged
exclusively to the Town Board and, since the Town Board had
expressly refused to file an administrative appeal of DENR's
issuance of Facility Permit 92-22, the individual respondents
lacked standing. In contrast, DENR, through the judicially-imposed
decision of the ALJ, concluded the individual respondents were
"persons aggrieved" under the NCAPA with standing to file acontested case petition.
In its petition for judicial review, Wake County failed to
assert as error the agency's conclusion that the individual
respondents were "persons aggrieved" under the NCAPA with a right
to challenge DENR's issuance of the permit. Nevertheless,
"[w]hether one has standing to obtain judicial review of an
administrative decision is a question of subject matter
jurisdiction[,]" Carter v. N.C. State Bd. for Professional
Engineers, 86 N.C. App. 308, 313, 357 S.E.2d 705, 708 (1987), which
"can be raised at any time, even for the first time on appeal and
even by a court sua sponte." Hedgepeth v. N.C. Div. of Servs. for
the Blind, 142 N.C. App. 338, 341, 543 S.E.2d 169, 171 (2001).
"Under the NCAPA, any 'person aggrieved' within the meaning of
the organic statute is entitled to an administrative hearing to
determine the person's rights, duties, or privileges." Empire
Power Co. v. N.C. Dept. Of E.H.N.R., 337 N.C. 569, 588, 447 S.E.2d
768, 779 (1994) (citing N.C. Gen. Stat. §§ 150B-23(a) (2001)).
"'Person aggrieved' means any person or group of persons of common
interest directly or indirectly affected substantially in his or
its person, property, or employment by an administrative decision."
N.C. Gen. Stat. § 150B-2(6) (2001). Under the predecessor judicial
review statute, which did not define the term, the Supreme Court
gave it an expansive interpretation:
The expression "person aggrieved" has no
technical meaning. What it means depends on
the circumstances involved. It has been
variously defined: "Adversely or injuriously
affected; damnified, having a grievance,
having suffered a loss or injury, or injured;also having cause for complaint. More
specifically the word(s) may be employed
meaning adversely affected in respect of legal
rights, or suffering from an infringement or
denial of legal rights."
In re Assessment of Sales Tax, 259 N.C. 589, 595, 131 S.E.2d 441,
446 (1963) (quoting 3 C.J.S. Aggrieved, at 509 (1973)); accord
Empire Power, 337 N.C. at 588, 447 S.E.2d at 779; Orange County v.
Dept. of Transportation, 46 N.C. App. 350, 360, 265 S.E.2d 890,
898-99 (1980). For the following reasons, we conclude the
individual respondents are "persons aggrieved" within the meaning
of the NCAPA.
Respondents Franks and Schifano et al. allege DENR issued
Facility Permit 92-22 in violation of statutory and regulatory
requirements; specifically, without the approval of the Town and
County, without the Town and County holding public hearings, and
without the Town and County considering alternative sites and
socioeconomic and demographic data.
The individual respondents further allege that, as owners of
property located adjacent to the site of the proposed landfill--the
construction of which will result in noise, pollution, inalterable
landscape changes, and other negative environmental consequences--
they will suffer interference with the use and enjoyment of their
property and diminution in the value of their property.
In the solid waste management provisions of the North Carolina
General Statutes, the General Assembly mandated the Department of
Environment and Natural Resources maintain a Division of Waste
Management "to promote sanitary processing, treatment, disposal,and statewide management of solid waste," "[f]or the purpose of
promoting and preserving an environment that is conducive to public
health and welfare, and preventing the creation of nuisances and
the depletion of our natural resources." N.C. Gen. Stat. § 130A-
291(a) (2001) (emphasis added). The General Assembly further
required the Environmental Management Commission to adopt, and the
Department of Environment and Natural Resources to enforce, rules
to implement a comprehensive statewide solid waste management
program. N.C. Gen. Stat. § 130A-294(b).
The rules shall be consistent with
applicable State and federal law; and shall be
designed to protect the public health, safety,
and welfare; preserve the environment; and
provide for the greatest possible conservation
of cultural and natural resources.
Id. (emphasis added). In concluding that a comprehensive statewide
solid waste management program was desirable, the General Assembly
found that:
(1) Inefficient and improper methods of
managing solid waste create hazards to public
health, cause pollution of air and water
resources, constitute a waste of natural
resources, have an adverse effect on land
values, and create public nuisances.
N.C. Gen. Stat. § 130A-309.03(a)(1) (2001) (emphasis added).
Clearly, the individual respondents alleged sufficient injury
in fact to interests within the zone of those to be protected and
regulated by the solid waste management statutes, and rules and
regulations promulgated pursuant thereto, the procedural
requirements of which they assert the agency violated when it
issued Facility Permit 92-22. As adjacent property owners, theindividual respondents may be expected to suffer whatever adverse
environmental consequences arise from construction of the landfill.
The individual respondents may also experience a decrease in the
value of their property caused by construction and eventual
operation of the landfill. The individual respondents therefore
are "persons aggrieved" within the meaning and intent of the solid
waste management statutes, with standing to assert that the permit
was issued in violation of statutory and regulatory requirements,
including the requirement that the Town grant prior approval for
location of a landfill in its jurisdiction. See Empire Power, 337
N.C. at 589-90, 447 S.E.2d at 780-81 (individual petitioner was
"person aggrieved," within the meaning of the NCAPA, by DENR's
issuance of a permit allowing the construction and operation of
sixteen combustion turbine electric generating units where the
petitioner owned property immediately adjacent to and downwind of
the site of the proposed units); Orange County, 46 N.C. App. at
360-62, 265 S.E.2d 899 (plaintiffs were all "persons aggrieved" by
a decision of the State Board of Transportation on the location of
an interstate highway where the individual plaintiffs were property
owners within the proposed corridor of the highway, the members of
plaintiff non-profit corporation were citizens and taxpayers who
lived in or near the proposed highway corridor, and plaintiff
county's tax base and planning jurisdiction would be affected;
further, the "procedural injury" implicit in the failure of an
agency to prepare an environmental impact statement was itself a
sufficient "injury in fact" to support standing as an "aggrievedparty" under former N.C. Gen. Stat. § 150A-43, as long as such
injury was alleged by a plaintiff having sufficient geographical
nexus to the site of the challenged project that he might be
expected to suffer whatever environmental consequences the project
might have).
In addition, we conclude the Town, which was added to the case
by consent of the parties following Wake County's filing of its
petition for judicial review, also qualifies as a "person
aggrieved" under the NCAPA because its tax base and planning
jurisdiction will be affected by the proposed landfill. See Orange
County, 46 N.C. App. at 361, 265 S.E.2d at 899; see also N.C. Gen.
Stat. § 150B-2(7) (2001) (defining "person" under the NCAPA as any
"natural person, partnership, corporation, body politic and any
unincorporated association, organization, or society which may sue
or be sued under a common name") (emphasis added)).
(See footnote 3)
Therefore,
the issue of whether the Town of Holly Springs approved the
location of the proposed landfill facility within its jurisdiction,
along with all other issues raised by respondents on appeal, was
properly before the OAH and the superior court, and is properly
presented for review by this Court.
Respondents argue the Town's initial approval, contained in
its 1 September 1992 resolution, was only for an "expansion" of the
existing Feltonsville Landfill and not the construction of a "new"and separate facility. In the judicially-imposed final agency
decision, the ALJ agreed, relying on the distinction between a
"lateral expansion" of an "existing municipal solid waste landfill
unit," and a "new municipal solid waste landfill unit," see 15A
NCAC 13B.1602 (7), (14), (18) (2002), to support its conclusion
that the Town had not granted approval for a "new" landfill
facility. However, the superior court concluded the Town gave Wake
County approval to site the proposed landfill within the Town's
jurisdiction as required by N.C. Gen. Stat. § 130A-294 and 15A NCAC
13B.0504(1)(e) as they existed at the time the Town passed the
approval resolution. For the reasons discussed herein, we agree
with the superior court's reasoning.
On 1 September 1992, the Town Board passed a resolution
granting "prior approval for the issuance of a sanitary landfill
permit by the Division of Solid Waste Management to Wake County,
said landfill to be established on approximately 380 acres," part
of which was located in the Town's zoning jurisdiction. At the
time, there was no legal distinction between a "new" landfill and
a "lateral expansion" of a landfill under the applicable solid
waste management statutes and regulations governing landfill permit
applications. See 15A NCAC 13B.0101 through .0204 (effective 1
April 1982); 15A NCAC 13B.0501 through .0510 (effective 1 April
1982); N.C. Gen. Stat. § 130A-290 through 310.23 (1992).
The distinction between a "lateral expansion" of an existing
landfill and a "new" landfill did not appear in the solid waste
management regulations until the passage of Title 15A, Subchapter13B, Section .1600, which became effective 9 October 1993. Under
these new regulations, the term "'lateral expansion' means a
horizontal expansion of the waste boundaries of an existing MSWLF
[municipal solid waste landfill] unit." 15A NCAC 13B.1602(14). An
"'existing MSWLF unit' means any municipal solid waste landfill
unit that is receiving solid waste as of October 9, 1993 and is not
a new MSWLF unit." 15A NCAC 13B.1602(7). A "'new MSWLF unit'
means any solid waste landfill unit that has not received waste
prior to October 9, 1993." 15A NCAC 13B.1602(18).
Because the Town granted approval for the proposed landfill on
1 September 1992, prior to the effective date of the new solid
waste management regulations, we agree with the superior court that
the ALJ erred in concluding the Town only approved a "lateral
expansion" to the existing Feltonsville Landfill. The term
"lateral expansion" was not a legal term of art with a definite
meaning at that time. Further, the record on appeal does not
indicate Wake County ever used the term "lateral expansion" when
referring to the proposed landfill facility.
We also agree with the superior court that the County's
references to the proposed landfill as an "expansion" of the
Feltonsville Landfill, which became inaccurate in 1993 when it was
mandated that the Feltonsville Landfill be closed by 1 January
1998, were simply a method of identifying the location of the
proposed landfill adjacent to the Feltonsville Landfill. The term
"expansion" was not a legal term of art with any particular legal
significance under the solid waste management statutes andregulations applicable at the time the Town granted its approval in
September 1992.
The record shows the County proceeded with its landfill plans
in accordance with the applicable regulations in existence at the
time. The County sought and was granted local government approval
from the Town as required by N.C. Gen. Stat. § 130A-294(a)(4), as
it existed at the time, and 15A NCAC 13B.0504(1)(e). The County
then filed its site plan application with DENR on 4 December 1992,
beginning the permitting process. See 15A NCAC 13B.0202 (stating
permit applications must contain both site and construction plans);
15A NCAC 13B.0504 (enumerating the requirements for a site plan
application for a proposed sanitary landfill before the
requirements for a construction plan application).
In addition, there is no evidence in the record that the
County misled or deceived the Town in any way in securing the
Town's approval. In fact, the plans for the proposed landfill
contained in the construction permit application approved by DENR
do not differ in any material respect from the plans presented to
and approved by the Town Board on 1 September 1992. In short, the
landfill facility approved by the Town in September 1992 is the
same landfill facility permitted to be constructed under Facility
Permit 92-22. Accordingly, the superior court did not err in
concluding the Town gave approval for the proposed landfill
facility at issue here.
Respondents next contend that, even if the Town granted
approval for a "new" landfill facility on 1 September 1992, theTown at all times possessed the inherent power to withdraw its
approval pursuant to its discretionary governmental authority.
Thus, the Town maintains its withdrawal of approval for the
landfill on 19 May 1998 was valid and effective.
However, subsequent to 1 September 1992, the Town Board took
several actions which explicitly ratified its previous approval of
the County's proposed landfill. We conclude that these multiple
acts of ratification equitably estopped the Town from withdrawing
its approval for the proposed landfill following DENR's acceptance
of the County's site plan application on 14 March 1995.
As a general rule, the doctrine of equitable estoppel is not
applicable to municipal corporations in matters pertaining to
governmental functions. 12 McQuillan Municipal Corporations §
34.85 (3d ed. 1995). However, courts in many jurisdictions have
applied "the doctrine in exceptional cases, where, upon all the
circumstances of the case, right and justice require it." Id. at
251. In Land-of-Sky Regional Council v. Co. of Henderson, 78 N.C.
App. 85, 336 S.E.2d 653 (1985), this Court addressed the
application of the doctrine of equitable estoppel to a municipal
corporation as follows:
We recognize that counties [and
municipalities] are not subject to an estoppel
to the same extent as a private individual or
a private corporation. See Henderson v. Gill,
Comr. of Revenue, 229 N.C. 313, 49 S.E.2d 754
(1948). Otherwise a county [or municipality]
could be estopped from exercising a
governmental right. Id. However, a
governmental entity may be estopped if it is
necessary to prevent loss to another and the
estoppel will not impair the exercise of
governmental powers. Washington v. McLawhorn,237 N.C. 449, 454, 75 S.E.2d 402, 406 (1953).
Estoppel is a means whereby a party may
be prevented from asserting a legal defense
contrary to or inconsistent with previous
conduct. Godley v. County of Pitt, 306 N.C.
357, 360, 293 S.E.2d 167, 169 (1982). In
Godley, the court determined that detrimental
reliance need not be established to invoke the
remedial doctrine of quasi estoppel. Id. at
361, 293 S.E.2d at 170. Quasi estoppel "is
directly grounded upon a party's acquiescence
or acceptance of payment or benefits, by
virtue of which that party is thereafter
prevented from maintaining a position
inconsistent with those acts." Id. One who
has the right to accept or reject the benefits
flowing from a transaction or instrument and
does not do so but instead accepts these
benefits has ratified that transaction.
Redevelopment Comm. of City of Greenville v.
Hannaford, 29 N.C. App. 1, 4, 222, S.E.2d 752,
754 (1976)
Id. at 91-92, 336 S.E.2d at 657.
Applying the equitable principles stated in Land-of-Sky, we
conclude the Town repeatedly ratified its initial approval of the
County's proposed landfill. On 15 December 1994, the Town agreed
to provide Wake County 50,000 gallons of wastewater treatment
capacity in the Town's treatment plant in exchange for forgiveness
of $298,291.00 in debt and payment of $228,800.00 for construction
of a wastewater collection system and pumping station to service
the landfill site. This agreement reiterated the Town's approval
of the construction, as well as operation, of the County's proposed
landfill.
On 17 April 1995, the agreement between the Town and Wake
County was amended to require Wake County to forthwith pay the Town
$228,800.00 for construction of the wastewater collection systemand pumping station instead of waiting until Wake County received
a permit to construct. Wake County subsequently paid the Town. In
sum, counting debt forgiveness and payment, the Town received a
financial benefit of approximately $527,000.00 as a result of its
approval of the proposed landfill site.
Finally, on 20 May 1997, over four-and-a-half years after
giving its approval for the new landfill, the Town approved Wake
County's Ten Year Solid Waste Management Plan which stated that all
municipal solid waste generated in Wake County between 2003 and
2023 would be disposed of at the proposed new facility.
Wake County relied upon the Town's ratification of its 1
September 1992 approval of the proposed landfill. Not only did
Wake County provide the Town a large financial benefit following
its grant of approval, but Wake County proceeded with the steps
required to make the proposed landfill a reality. Wake County
filed and received approval of a site plan application and a permit
to construct. These steps required large financial investments on
Wake County's part. To allow the Town to withdraw its approval and
take a position inconsistent with its actions running over a period
of nearly six years would be inequitable under the circumstances.
It would create needless instability in the permitting process for
the siting and construction of solid waste management facilities
within this State, a process which is necessarily time consuming
due to the significant public interest and highly-technical
complexities involved, by allowing local governments to grant prior
approval for a landfill site then withdraw that approval prior tothe completion of the permitting process. The superior court
refused to countenance such a result, as do we. We conclude, under
the circumstances here, that the Town was equitably estopped from
withdrawing its prior approval for the County's proposed landfill
facility.
(See footnote 4)
Respondents next contend the superior court erred in
concluding Wake County was not required to obtain a franchise from
the Town for operation of the landfill prior to receiving Facility
Permit 92-22. Respondents argue a franchise was required under
both Chapter 160A, Article 16 of the General Statutes, entitled
"Public Enterprises," and N.C. Gen. Stat. § 130A-294(b1)(3). It is
undisputed that Wake County did not obtain a franchise from the
Town. Thus, respondents maintain the Town's approval was a mere
license which was revocable at any time. Wake County counters by
arguing that the statutes relied upon by respondents did not
require the County to obtain a franchise prior to starting
construction of the landfill pursuant to Facility Permit 92-22.
We first address respondents' argument as to N.C.G.S. § 130A-
294(b1)(3), which reads in pertinent part:
(3) An applicant for a new permit, the renewal
of a permit, or a substantial amendment to a
permit for a sanitary landfill shall obtain,
prior to applying for a permit, a franchise
for the operation of the sanitary landfill
from each local government having jurisdictionover any part of the land on which the
sanitary landfill and its appurtenances are
located or to be located. A local government
shall adopt a franchise ordinance under G.S.
153A-136 or G.S. 160A-319 prior to the
submittal by an applicant of an application
for a new permit, the renewal of a permit, or
a substantial amendment to a permit for a
sanitary landfill. A franchise granted for a
sanitary landfill shall include:
a. A statement of the population to be served,
including a description of the geographic
area.
b. A description of the volume and
characteristics of the waste stream.
c. A projection on the useful life of the
landfill.
N.C. Gen. Stat. § 130A-294(b1)(3) (2001).
If Wake County was to begin today the permitting process for
a new landfill to be located in the Town, N.C.G.S. § 130A-
294(b1)(3) would require it to secure a franchise from the Town to
operate the new landfill facility prior to applying for a permit
from DENR. However, N.C.G.S. § 130A-294 (b1)(3) was added to the
General Statutes by Session Laws 1993 (Reg. Sess. 1994), c. 722,
and became effective on 7 July 1994. Section 3 of this Act states
that it is "effective upon ratification and applies to applications
submitted on or after the effective date." Here, Wake County began
the permitting process for the proposed landfill by submitting its
site plan application on 4 December 1992, prior to the effective
date of N.C.G.S. § 130A-294(b1)(3). Accordingly, Wake County was
not required to secure a franchise for operation of the landfill
pursuant to N.C.G.S. § 130A-294(b1)(3).
Respondents also contend Wake County was required to obtain afranchise from the Town pursuant to the Public Enterprise Statutes
set forth in Chapter 160A, Article 16. N.C. Gen. Stat. § 160A-319,
entitled "Utility Franchises," reads in pertinent part:
(a) A city shall have authority to grant upon
reasonable terms franchises for the operation
within the city of any of the enterprises
listed in G.S. 160A-311 and for the operation
of telephone systems . . . Except as otherwise
provided by law, when a city operates an
enterprise, or upon granting a franchise, a
city may by ordinance make it unlawful to
operate an enterprise without a franchise.
N.C. Gen. Stat. § 160A-319(a) (2001) (emphasis added). Included
among the list of "public enterprises" is "[s]olid waste collection
and disposal systems and facilities." N.C. Gen. Stat. § 160A-
311(6) (2001). Pursuant to N.C.G.S. § 160A-76, any such ordinance
granting a "public enterprise" franchise must be passed at two
regular meetings of the city or town council. N.C. Gen. Stat. §
160A-76(a) ("No ordinance making a grant, renewal, extension, or
amendment of any franchise shall be finally adopted until it has
been passed at two regular meetings of the council, and no such
grant, renewal, extension, or amendment shall be made otherwise
than by ordinance.").
Respondents contend that these statutes, when read in pari
materia, required Wake County to obtain a franchise from the Town
of Holly Springs prior to receiving Facility Permit 92-22.
We first note that the language used in the statutes is not
mandatory in nature. N.C.G.S. § 160A-319 states that cities and
towns shall have the authority to grant franchises for public
enterprises and, when they choose to do so, they may pass anordinance making it unlawful to operate a public enterprise within
the city or town without a franchise. The statute does not by its
language require the grant of a franchise from a city or town prior
to the operation of a public utility not owned and operated by the
city or town.
However, case law interpreting Chapter 160A, and its
predecessor, indicates that a franchise is mandatory for the
operation of a "public enterprise." See Madison Cablevision v.
City of Morganton, 325 N.C. 634, 654, 386 S.E.2d 200, 212 (1989)
("A city needs no grant from itself to own and operate public
enterprises, including operating a CATV [cable television] system;
it does so in its own right pursuant to the authority granted to it
by the legislature under General Statutes chapter 160A, article 16,
part 1. It needs no franchise or other grant of authority from
itself as do non-municipal suppliers of the same enterprise.");
Shaw v. Asheville, 269 N.C. 90, 152 S.E.2d 139 (1967); Power Co. v.
Membership Co., 253 N.C. 596, 604, 117 S.E.2d 812, 817 (1961)
("Every town has by statute, G.S. 160-2(6) [now N.C.G.S. § 160A-
311], the power to grant franchises to public utilities, that is,
the right to engage within the corporate boundaries in business of
a public nature. Businesses requiring sovereign permission to
operate are multitudinous: transportation of goods and persons by
railroad or by motor carrier, transmission of telegrams,
transmission and distribution of electric power, water and sewerage
systems, telephone systems . . . and street railways are but
illustrative of the many kinds of businesses which may requiresovereign approval."). Based on this case law, we are constrained
to conclude that a city or town is required to pass an ordinance
granting a franchise any time a third party, be it a private
individual or corporation, another municipality, or a county, seeks
to operate a public utility such as a solid waste disposal
facility.
Nonetheless, we conclude the Town of Holly Springs is
equitably estopped from arguing that Wake County has failed to
receive a franchise from the Town for operation of the proposed
landfill. When the Town granted its approval of the County's
proposed landfill, on 1 September 1992, the Town had no ordinance
requiring a franchise for the operation of a public utility within
its jurisdiction. Over the ensuing period of nearly six years, the
Town took several steps to ratify this approval, including: (1)
entering into an Interlocal Agreement, and subsequent amendment
thereto, reiterating its approval of the construction and operation
of the landfill and receiving a significant financial benefit, and
(2) approving Wake County's Ten Year Solid Waste Management Plan
calling for the disposal of all solid waste generated in Wake
County between 2003 and 2023 at the proposed landfill.
Wake County relied on the Town's conduct in proceeding with
its plans to construct the landfill. In so doing, Wake County made
large financial investments. To allow the Town to now, or in the
future, pass an ordinance requiring a franchise for the operation
of a public utility within its jurisdiction, and subsequently
attempt to prevent Wake County from operating the proposed landfillon the grounds that a franchise has not been secured, would be
grossly inequitable under the circumstances of the instant case.
Accordingly, we hold the Town is equitably estopped from contending
that a franchise is currently, or in the future, required for
operation of the proposed landfill.
Respondents next contend the superior court erred in
concluding 15A NCAC 13B.1618 did not apply to Wake County's permit
to construct the landfill. Respondents further maintain the County
failed to adhere to the public notice and public hearing
requirements set forth in 15A NCAC 13B.1618(c)(5)(A)(i-iv).
While respondents correctly contend that 15A NCAC
13B.1618(c)(5)(A)(i-iv) require a public hearing with sufficient
public notice prior to the granting of local government approval
for a site plan application for a new landfill, these provisions do
not apply to the permitting process in the instant case due to the
grandfather provision found in 15A NCAC 13B.1618(e), which states:
(e) New facility applications in transition.
Site plan applications for a new facility
submitted in accordance with Rule .0504 (1) of
this Section after January 15, 1992 and prior
to April 9, 1993 and approved by the Division
consistent with Subparagraph (a)(1) of this
Rule are not subject to the requirements of
this Rule.
15A NCAC 13B.1618(e) (2002).
Here, the County filed its site plan application with DENR on
4 December 1992. The site plan application was submitted in
accordance with the requirements of Rule .0504(1), including the
approval of the Town Board. The County's site plan application was
subsequently approved, on 14 March 1995, by the Division of SolidWaste Management and the County was authorized to prepare an
application for a permit to construct. See 15A NCAC
13B.1618(a)(1). Accordingly, the County's site plan application
was not subject to 15A NCAC 13B.1618(c)(5)(A).
Respondents next contend the superior court erred in
concluding N.C. Gen. Stat. § 153A-136(c) was inapplicable to Wake
County's selection of the site for the proposed new landfill. We
disagree.
N.C.G.S. § 153A-136(c), effective 22 July 1992, sets forth
requirements that must be satisfied by a county prior to the
selection or approval of certain landfill sites.
§ 153A-136 Regulation of solid wastes.
. . .
(c) The board of commissioners of a county
shall consider alternative sites and
socioeconomic and demographic data and shall
hold a public hearing prior to selecting or
approving a site for a new sanitary landfill
that receives residential solid waste that is
located within one mile of an existing
sanitary landfill within the State. The
distance between an existing and a proposed
site shall be determined by measurement
between the closest points on the outer
boundary of each site. The definitions set
out in G.S. 130A-290 apply to this subsection.
As used in this subsection:
(1) "Approving a site" refers to prior
approval of a site under G.S. 130A-294(a)(4).
(2) "Existing sanitary landfill" means a
sanitary landfill that is in operation or that
has been in operation within the five-year
period immediately prior to the date on which
an application for a permit is submitted.
(3) "New sanitary landfill" means a sanitary
landfill that includes areas not within thelegal description of an existing sanitary
landfill as set out in the permit for the
existing sanitary landfill.
(4) "Socioeconomic and demographic data" means
the most recent socioeconomic and demographic
date compiled by the United States Bureau of
the Census and any additional socioeconomic
and demographic data submitted at the public
hearing.
. . . .
N.C. Gen. Stat. § 153A-136(c) (2001).
Here, it is undisputed that the proposed landfill facility
constitutes a "new sanitary landfill" under N.C.G.S. § 153A-136(c),
since the area of the proposed landfill is not within the legal
description of an existing sanitary landfill. It is likewise
undisputed that the proposed landfill is located within one mile of
the Feltonsville Landfill, which was in operation when the County's
site plan application was submitted. It is further uncontested
that Wake County did not meet the requirements of N.C.G.S. § 153A-
136(c) in selecting or approving the site for the proposed
landfill. Wake County argues that it is excused from compliance
with N.C.G.S. § 153A-136(c) by the exemption enacted
contemporaneously therewith, which provides in pertinent part:
G.S. 153A-136(c) . . . shall not apply to the
selection or approval of a site for a new
sanitary landfill if, prior to the effective
date of this act [22 July 1992]:
(1) The site was selected or approved by the
board of commissioners of a county or the
governing board of a city;
(2) A public hearing on the selection or
approval of the site has been held;
(3) A long-term contract was approved by theDepartment of Environment, Health, and Natural
Resources [now the Department of Environment
and Natural Resources] under Part 4 of Article
15 of Chapter 153A of the General Statutes; or
(4) An application for a permit for a sanitary
landfill to be located on the site has been
submitted to the Department of Environment,
Health and Natural Resources [now the
Department of Environment and Natural
Resources].
Session Laws 1991 (Reg. Sess., 1992), c. 1013, s. 9 (emphasis
added).
Wake County contends the actions of the County Board
constituted selection or approval of the proposed landfill site
prior to 22 July 1992, the effective date of N.C.G.S. § 153A-
136(c). Respondents however contend Wake County had not selected
or approved a site for a "new" landfill prior to 22 July 1992.
According to respondents, all Wake County had done at that time was
authorize the "lateral expansion" of the existing Feltonsville
Landfill. Since a "new" landfill had not been authorized prior to
22 July 1992, respondents insist N.C.G.S. § 153A-136(c) applies to
the selection of the proposed landfill site. Respondents further
contend the County could not have selected or approved the proposed
landfill site prior to 22 July 1992, whether it be considered a
"new" landfill or a "lateral expansion," because the Town's
approval of the site was a condition precedent to the County's
approval and the Town did not grant its approval until 1 September
1992, after the effective date of N.C.G.S. § 153A-136(c).
As earlier noted, the distinction between a "new" municipal
solid waste landfill and a "lateral expansion" of an existinglandfill did not appear in the solid waste management rules and
regulations until 9 October 1993, after both the Town and the
County had clearly selected and approved the proposed landfill
site. Further, the record shows that the County's plans for the
landfill did not change in any material respect following the
Town's approval on 1 September 1992. Because the County initially
referred to its proposed plans as an "expansion" of the
Feltonsville Landfill does not change the fact that the plans
approved by the County and Town were at all times for the
construction of a "new sanitary landfill" facility, as defined
under N.C.G.S. § 153A-136(c). Accordingly, we must determine
whether the County selected or approved the site prior to the
effective date of N.C.G.S. 153A-136(c).
In Grassy Creek Neighborhood Alliance, Inc. V. City of
Winston-Salem, 142 N.C. App. 290, 542 S.E.2d 296 (2001), this Court
faced a similar question. In Grassy Creek, the plaintiffs argued
that the City of Winston-Salem Board of Alderman had not selected
or approved the site for a landfill prior to 22 July 1992, the
effective date of N.C.G.S. § 160A-325, which sets forth the same
requirements for cities and towns as does N.C.G.S. § 153A-136(c)
for counties.
The Court noted that, prior to 22 July 1992, the City had
entered into an interlocal agreement with Forsyth County creating
a Utility Commission with responsibility over, inter alia, solid
waste management and disposal. On 12 August 1991, the Utility
Commission approved a resolution to proceed with the landfill. Theresolution created access restrictions and buffer requirements for
the landfill site and identified the site by tax lots and block
numbers. The resolution also stated the approximate price of the
property for the landfill site and resolved that the City undertake
to acquire the property.
On 9 September 1991, the Finance Committee of the Board of
Alderman approved a resolution entitled "RESOLUTION OF THE CITY OF
WINSTON-SALEM, NORTH CAROLINA APPROVING THE LEASE AGREEMENT WITH
NORTH CAROLINA MUNICIPAL LEASING CORPORATION AND RELATED MATTERS."
Under the terms of the lease, North Carolina Municipal Leasing
Corporation would purchase the property for the landfill and lease
it to the City. The Finance Committee attached a "Board of
Alderman-Action Request Form" to the resolution stating that the
lease was, in part, for the acquisition of "land for future solid
waste disposal."
On 16 September 1991, the Finance Committee resolution and the
Action-Request Form were brought before the Board of Alderman. The
Board approved the following resolution:
the Mayor, the City Manager, the City
Secretary, and the Director of Finance of the
City are hereby authorized, empowered and
directed to do any and all other acts and to
execute any and all other documents, which
they in their discretion, deem necessary and
appropriate in order to consummate the
transactions contemplated by (I) this
Resolution, (ii) the Lease, and (iii) the
documents presented to this meeting . . .
This Court concluded the actions of the Board of Alderman--
approving the lease agreement for the property that had previously
been identified as "land for solid waste disposal"--were sufficientto constitute a selection or approval of the landfill expansion
site on 16 September 1991, prior to the effective date of N.C.G.S.
§ 160A-325.
Here, the County Board, on 29 October 1990, authorized the
purchase of the 162.37-acre tract of land for the landfill. On 5
August 1991, the County Board directed staff to pursue acquisition
of additional property for the landfill. Finally, on 6 April 1992,
the County Board authorized the purchase of the four additional
tracts of land to be used for the landfill.
We hold these actions of the County Board to be sufficient to
constitute selection of the landfill site as of 6 April 1992, prior
to the effective date of N.C.G.S. § 153A-136(c). Accordingly, the
exemption found in Session Laws 1991 (Reg. Sess., 1992), c. 1013,
s. 9 applies and the County was not required to consider
alternative sites and socioeconomic and demographic data, or to
hold a public hearing prior to selecting the site.
Respondents correctly point out that the Town, under N.C. Gen.
Stat. § 160A-325(a), has a separate and independent duty to
consider alternative sites and socioeconomic and demographic data
prior to granting its approval of the location of a "new sanitary
landfill." Because the Town's approval was not granted until 1
September 1992, after the effective date of N.C.G.S. § 160A-325,
and the Town did not meet the requirements of the statute,
respondents maintain Facility Permit 92-22 was issued in violation
of N.C.G.S. § 160A-325 and must be set aside.
However, consideration of the requirements found in N.C.G.S.§§ 153A-136(c) and 160A-325(a) are not part of the permitting
process for a solid waste management landfill. DENR is authorized
to issue permits "governing the establishment and operation of
solid waste management facilities." N.C. Gen. Stat. § 130A-294(4)a
(2001). DENR's authority to promulgate rules and regulations and
to develop a permitting system for landfills is therefore derived
from N.C.G.S. § 130A-294(a)(4)a. The administrative rules
promulgated pursuant to N.C.G.S. § 130A-294 specify detail
requirements that applicants must meet and state specifically that
applications for permits shall be reviewed "to assure that all
provisions of these Rules, the Solid Waste Management Act [N.C.
Gen. Stat. § 130A, Article 9], and the Federal Act [the Resource
Conservation and Recovery Act of 1976], will be met." 15A NCAC
13B.0203 (2002). Neither the Rules, the Solid Waste Management
Act, nor the Federal Act incorporates N.C.G.S. § 153A-136(c), or
N.C.G.S. § 160A-325(a), as a requirement which must be met by
landfill permit applicants.
Generally, an administrative agency may exercise its authority
only as specifically delegated by the legislature. North Carolina
has embraced this principle in N.C. Gen. Stat. § 150B-19 (2001),
which reads in pertinent part:
An agency may not adopt a rule that does one
or more of the following:
(1) Implements or interprets a law unless
that law or another law specifically
authorizes the agency to do so.
Because neither N.C.G.S. § 160A-325(a) nor any other statute
specifically authorizes DENR to implement or interpret Section160A-325(a), it is not part of DENR's regulatory permitting scheme
for solid waste management landfills, and assuming, arguendo, the
Town was required to adhere to its requirements, failure to do so
does not require withdrawal of Facility Permit 92-22.
Finally, even if a municipality's failure to comply with
N.C.G.S. § 160A-325(a) could warrant withdrawal of a landfill
permit issued by DENR, we would still conclude, based on the facts
of the instant case, that here the Town of Holly Springs and the
individual respondents are equitably estopped from raising such a
failure in contesting Facility Permit 92-22.
For the reasons discussed herein, we agree with the able and
learned superior court judge, and affirm his reissuance of Facility
Permit 92-22 to Wake County.
Affirmed.
Judge McGEE concurs.
Judge WALKER concurs in a separate opinion.
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