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All opinions are subject to modification and technical correction prior to official publication in the North Carolina Reports and North Carolina Court of Appeals Reports. In the event of discrepancies between the electronic version of an opinion and the
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MW CLEARING & GRADING, INC. Petitioner, v. NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES, DIVISION OF AIR
QUALITY, Respondent
NO. COA04-852
Filed: 5 July 2005
1. Environmental Law-_property boundaries on land--proper calibration of
measuring wheel--open burning piles--whole record test
The trial court did not err by affirming the Environmental Management Commission's
decision affirming the civil penalty and investigation costs against petitioner company for
violation of the burning regulation while clearing a large parcel of land in Gaston County even
though petitioner contends the agency did not provide sufficient evidence that the occupied
structure and the open burning piles were on different pieces of property or that the measuring
device was properly calibrated as required by 15A N.C.A.C. 2D .1903(2)(b)(B), because: (1)
there is a presumption of regularity of official acts by public officials and petitioner failed to
present evidence showing the burning piles were located on the same property as the nearby
residence; (2) petitioner did present evidence regarding the accuracy of the measuring wheel
through the testimony of the company president, respondent also presented evidence regarding
the wheel's accuracy, and the trial court weighed the conflicting evidence using the whole record
test; (3) if there is more than one reasonable interpretation of the evidence in the record and the
agency has chosen one, the trial court may not replace the agency's interpretation with its own;
(4) it is the agency's province to weigh the credibility of witnesses, and the trial court may not
overrule the agency's determination as to the value of testimony and credibility of witnesses; and
(5) although petitioner argued the agency's action was arbitrary and capricious based on the lack
of substantial evidence regarding property boundaries or the accuracy of the measuring device,
this argument is without merit since the Court of Appeals upheld the agency's interpretation of
the evidence with respect to both of these claims.
2. Environmental Law_-application of controlling law--mandatory assessment factors-
_equal protection claim--de novo review
Applying a de novo review, the trial court did not err by affirming the Environmental
Management Commission's decision affirming the civil penalty and investigation costs against
petitioner company for violation of the burning regulation while clearing a large parcel of land in
Gaston County even though petitioner contends the agency misapplied the controlling law under
N.C.G.S. § 143-215.114A(a)(1) by failing to require evidence of all elements of the violation,
failing to correctly apply mandatory assessment factors, and finding multiple violations from a
single incident, because: (1) even though the agency had previously counted multiple piles as a
single violation where a single penalty was considered sufficient to effect future compliance, it is
not irrational or illogical to count each pile as one violation; (2) each individual pile located
within the 1,000 foot requirement does in fact violate the statute; (3) in light of petitioner's
continued disregard for the regulations as evidenced by three prior violations, the agency
properly exercised its discretion in counting each open burning pile as a separate violation; (4) in
regard to petitioner's equal protection claim, no fundamental right is implicated by imposing a
fine on petitioner for violation of a regulatory scheme, nor does petitioner fall within any suspect
class, and the imposition of multiple fines for multiple open burning piles is rationally related to
a legitimate government purpose; and (5) although petitioner contends the Court of Appeals
should use a de novo review to overrule the agency's determination of the significance of the
impact of petitioner's violations, the legislature has granted such discretion to the agency, the
Court of Appeals may only review the agency's evaluation under the whole record test, and therewas substantial evidence to support the agency's application of the mandatory assessment
factors.
Judge JACKSON dissenting.
Appeal by petitioner from judgment entered 1 March 2004 by
Judge Evelyn W. Hill in Wake County Superior Court. Heard in the
Court of Appeals 21 March 2005.
Knox, Brotherton, Knox & Godfrey, by Allen C. Brotherton and
Kara F. McIvor, for petitioner-appellant.
Attorney General Roy Cooper, by Assistant Attorney General
Elizabeth J. Weese, for respondent-appellee.
MARTIN, Chief Judge.
Petitioner, MW Clearing and Grading, Inc., is a grading
contractor with its office in Blacksburg, South Carolina.
Petitioner is engaged in the business of clearing parcels of land
by removing trees, vegetation, and other unwanted materials from
above and below the ground's surface. These materials are then
disposed of by either grinding or open burning. In November of
1999, petitioner cleared a large area of land in Cramerton, North
Carolina in Gaston County. Tony McManus, an inspector for the
North Carolina Department of Environment and Natural Resources
(DENR), Division of Air Quality, respondent, was driving home from
work on 4 November 1999 when he noticed several large columns of
white smoke off of Highway 74. McManus stopped to investigate.
When he arrived at the cleared site, he discovered several burning
piles of land-clearing debris. Kenneth Wilson had been left in
charge of the site that day by Richard Moorhead, petitioner'spresident. McManus discussed the open burning regulations with
Wilson, including the requirement that [t]he location of the
burning [be] at least 1,000 feet from any dwelling, group of
dwellings, or commercial or institutional establishment, or other
occupied structure not located on the property on which the burning
is conducted. 15A N.C.A.C. 2D .1903(2)(b)(B)(1999). Wilson said
he was not familiar with the regulations, but he agreed to meet
McManus the next day to measure the distance of the existing piles
from the closest residence. McManus did not have a measuring
device, and Wilson offered to bring the company's measuring wheel
to the site with him the following day.
On 5 November 1999, using petitioner's measuring device,
McManus counted nine open burning piles that were within one
thousand feet of the nearest residence. The distances of these
piles from the residence were 453 feet, 536 feet, 610 feet, 659
feet, 704 feet, 758 feet, 873 feet, 923 feet, and 990 feet. Prior
to making these measurements, McManus had not calibrated or tested
the accuracy of the measuring device. As a result of these
violations, petitioner was assessed a civil penalty of $36,000:
$4,000 for each of the nine piles, plus $365 for the investigation
costs. Petitioner had previously violated the same open burning
regulation on three separate occasions, for which it was assessed
civil penalties of $1,247.44, $1,341.56, and $2,842.00.
On 15 March 2000, petitioner filed a petition for a contested
case hearing in the Administrative Office of Hearings. Petitioner
contested the civil penalty assessment, claiming DENR (1) exceededits authority or jurisdiction, (2) acted erroneously, (3) failed to
use proper procedure, (4) acted arbitrarily or capriciously, and
(5) failed to act as required by law or rule. See N.C. Gen. Stat.
§ 150B-51(b)(2003). The administrative law judge issued a
recommended decision affirming the civil penalty and investigation
costs, to which petitioner excepted. The Environmental Management
Commission then issued a final agency decision adopting the
recommended decision to affirm the penalty and costs. Petitioner
sought judicial review of the agency decision in Wake County
Superior Court, where the agency decision was affirmed. Petitioner
appeals.
________________________________
Upon appeal from an order of the superior court affirming an
agency decision, the appellate court must examine the trial
court's order to determine first, whether the trial court exercised
the appropriate standard of review, and secondly, whether the trial
court properly applied that standard to the record before it.
Skinner v. N.C. Dep't of Corr., 154 N.C. App. 270, 273, 572 S.E.2d
184, 187 (2002). The proper standard of review in the superior
court depends upon the nature of the alleged error. Id.; Dixie
Lumber Co. of Cherryville v. N.C. Dept. of Env't, Health, and Nat.
Res., 150 N.C. App. 144, 146, 563 S.E.2d 212, 214, disc. review
denied, 356 N.C. 161, 568 S.E.2d 192 (2002). When the petitioner
alleges the agency decision was not supported by substantial
evidence or was arbitrary and capricious, the proper standard isthe whole record test. When the petitioner contends the agency
made an error of law, the superior court is required to review the
error de novo. Skinner, 154 N.C. App. at 273-74, 572 S.E.2d at
187; Dixie Lumber, 150 N.C. App. at 146, 563 S.E.2d at 214.
The reviewing court may be required to utilize both standards
of review if warranted by the nature of the issues raised. R.J.
Reynolds Tobacco Co. v. N.C. Dep't of Env't & Natural Res., 148
N.C. App. 610, 614, 560 S.E.2d 163, 166, disc. review denied, 355
N.C. 493, 564 S.E.2d 44 (2002). Here, petitioner presents two
principal arguments on appeal. First, petitioner argues the trial
court erred by affirming the agency's decision as it was not
supported by substantial evidence and was arbitrary and capricious.
Specifically, petitioner claims the agency did not provide
sufficient evidence that the occupied structure and the open
burning piles were on different pieces of property, as required by
statute, or that the measuring device was properly calibrated.
These arguments required the court to apply the whole record test.
Second, petitioner argues the agency misapplied the controlling law
by: (1) failing to require evidence of all elements of the
violation, (2) failing to correctly apply mandatory assessment
factors, and (3) finding multiple violations from a single
incident. Therefore, petitioner contends the trial court
incorrectly applied de novo review by affirming the agency's
conclusions of law. In neither argument does petitioner allege the
trial court applied an incorrect standard of review; therefore, ourreview is limited to whether the trial court properly applied each
standard to petitioner's arguments.
In applying the whole record test, the reviewing court must
examine the entire record to determine whether the agency decision
was supported by substantial evidence. 'Substantial evidence is
such relevant evidence as a reasonable mind might accept as
adequate to support a conclusion.' 'If substantial evidence
supports an agency's decision after the entire record has been
reviewed, the decision must be upheld.' Dixie Lumber, 150 N.C.
App. at 147, 563 S.E.2d at 214 (citations omitted). The court must
consider evidence that supports the agency's decision as well as
evidence that contradicts it. In re Rogers, 297 N.C. 48, 65, 253
S.E.2d 912, 923 (1979). However, if there is more than one
reasonable interpretation of the evidence in the record, and the
agency has chosen one, the reviewing court may not replace the
agency's interpretation with its own. Thompson v. Board of
Education, 292 N.C. 406, 410, 233 S.E.2d 538, 541 (1977). Nor may
the reviewing court weigh the probative value of testimony. The
agency may accept or reject in whole or part the testimony of any
witness, and the agency's determination as to the value of
testimony and the credibility of witnesses is final. Little v.
Board of Dental Examiners, 64 N.C. App. 67, 69, 306 S.E.2d 534, 536
(1983).
[1] Petitioner argues the trial court incorrectly applied the
whole record test because the agency decision was not supported by
substantial evidence. According to petitioner, DENR failed topresent evidence regarding the property boundaries on the land in
question and failed to prove the measuring wheel was properly
calibrated. Therefore, petitioner claims the evidence in the
record did not show the burning piles were located on different
property than the residence from which they were measured, nor did
it show the distance of the piles from the residence had been
accurately measured, two essential elements of the statute. 15A
N.C.A.C. 2D .1903(2)(b)(B)(1999). The burden is on petitioner,
however, to prove DENR's noncompliance with the statute.
There is a presumption of regularity of official acts by
public officials. This presumption
is rebuttable by affirmative evidence of
irregularity or failure to perform duty, but
the burden of producing such evidence rests on
him who asserts unlawful or irregular conduct.
The presumption, however, prevails until it is
overcome by . . . evidence to the contrary. .
. [and] [e]very reasonable intendment will be
made in support of the presumption.
Huntley v. Potter, 255 N.C. 619, 628, 122 S.E.2d 681, 687,
(1961)(citations omitted). Petitioner claims this burden was not
an affirmative duty but was met by simply showing the agency's
evidence was insufficient. We disagree. The clear import of the
presumption is to require petitioner to present substantial
evidence that DENR failed to comply with the statute. See In re
Annexation Ordinance, 304 N.C. 549, 551, 284 S.E.2d 470, 472
(1981); Painter v. Board of Education, 288 N.C. 165, 178, 217
S.E.2d 650, 658 (1975); Civil Service Bd. v. Page, 2 N.C. App. 34,
40, 162 S.E.2d 644, 647 (1968). Petitioner, however, presented no
evidence showing the open burning piles were located on the sameproperty as the nearby residence and therefore failed to rebut this
element of the statute.
Petitioner did present evidence regarding the accuracy of the
measuring wheel through the testimony of Richard Moorhead, the
company president. Respondent also presented evidence regarding
the wheel's accuracy, largely through the testimony of its
inspector, Mr. McManus. The trial court weighed the conflicting
evidence and made the following findings:
5. The record contains testimony of both Tony
McManus, the field inspector for the Division
of Air Quality and testimony of Richard D.
Moorhead, owner of MW Clearing and Grading,
Inc. Testimony at the hearing shows that the
measuring wheel used by McManus to determine
the distance the nine piles of burning debris
were located from the nearest residence was
provided by petitioner to respondent for the
purpose of measuring the distances involved.
Mr. McManus testified that there was no
malfunctioning of the wheel apparent to him at
the time the wheel was being used. Further
testimony indicates that neither Mr. Wilson
nor Mr. Richard M. Moorhead, agents of
petitioner who were present at the time of the
measurement, ever cautioned Mr. McManus about
any malfunction involving their measuring
wheel.
6. Mr. Richard D. Moorhead testified that he
was aware of an error in the measurements when
he first received the civil penalty assessment
document in February, 2000. The administrative
law judge's order for pre-hearing statements
required petitioner to identify issues to be
resolved at the hearing. Petitioner's pre-
hearing statement dated 19 April 2000 did not
identify any possible malfunctioning of the
wheel or accuracy of measurements as an issue
to be resolved. Nor did the order on final
pretrial conference signed by counsel identify
such an issue. Moreover, petitioner's initial
response to the notice of violation indicated
that the house had not even been seen.
7. Where there are two reasonably conflicting
views as to whether the wheel actually
malfunctioned, the whole record test does not
allow the court to replace the administrative
agency's judgment, even though it could
justifiably have reached a different result
had the matter been before the court de novo.
While taking into account contradictory
evidence from petitioner that the wheel had
two bent pegs, there is substantial other
evidence in the whole record to discredit that
testimony and to support the agency's
acceptance of the testimony of Mr. McManus
(and inferences therefrom) that the wheel was
not malfunctioning at the time he was using
it. The credibility of witnesses and the
probative value of particular testimony are
for the administrative body to determine and
it may accept or reject, in whole or in part,
the testimony of any witness.
The trial court correctly stated the whole record test and properly
applied the test to the evidence before it. The trial court noted,
as we have above, that if there is more than one reasonable
interpretation of the evidence in the record, and the agency has
chosen one, the trial court may not replace the agency's
interpretation with its own. Thompson v. Board of Education, 292
N.C. 406, 410, 233 S.E.2d 538, 540 (1977). The final agency
decision was a reasonable interpretation of the substantial
evidence before it, and the trial court properly affirmed the
agency's action.
We also stated that it is the agency's province to weigh the
credibility of witnesses, and the trial court may not overrule the
agency's determination as to the value of testimony and credibility
of witnesses. Little v. Board of Dental Examiners, 64 N.C. App.
67, 69, 306 S.E.2d 534, 536 (1983). Petitioner argues that the
Environmental Management Commission made an improper inference offalse testimony from petitioner's failure to disclose the
inaccuracy of the measuring wheel prior to trial. The trial court,
however, could not reconsider Mr. Moorhead's credibility or the
value of his testimony, nor could it substitute its own
interpretation of his testimony for the agency's. The trial court,
therefore, properly upheld the agency's finding that such testimony
failed to overcome the presumption of regularity of official acts.
Agency decisions have been found to be arbitrary and
capricious when they indicate a lack of fair and careful
consideration; [or] when they fail to indicate 'any course of
reasoning and the exercise of judgment.' Comr. of Insurance v.
Rate Bureau, 300 N.C. 381, 420, 269 S.E.2d 547, 573, reh'g denied,
301 N.C. 107, 273 S.E.2d 300 (1980)(citation omitted). Petitioner
argued the agency's action was arbitrary and capricious because of
the lack of substantial evidence regarding property boundaries or
the accuracy of the measuring device. Because we have upheld the
agency's interpretation of the evidence with respect to both of
these claims, we find this argument to be without merit.
[2] Petitioner's second argument is that the Environmental
Management Commission's interpretation of the controlling statute
was erroneous. Unlike the whole record test, the trial court is
free to substitute its own judgment for that of the agency when
reviewing questions of law
de novo. However, although courts are
the final interpreters of statutory terms, 'the interpretation of
a statute by an agency created to administer that statute is
traditionally accorded some deference.'
Best v. N.C. State Boardof Dental Examiners, 108 N.C. App. 158, 162, 423 S.E.2d 330, 332
(1992),
disc. review denied, 333 N.C. 461, 428 S.E.2d 184 (1993)
(quoting
Savings and Loan League v. Credit Union Comm., 302 N.C.
458, 466, 276 S.E.2d 404, 410 (1981)). The weight accorded to an
agency's interpretation of a statute by the trial court 'will
depend upon the thoroughness evident in its consideration, the
validity of its reasoning, its consistency with earlier and later
pronouncements, and all those factors which give it power to
persuade, if lacking power to control.'
Savings and Loan League
v. Credit Union Comm., 302 N.C. 458, 466, 276 S.E.2d 404, 410
(1981)(quoting
Skidmore v. Swift & Company, 323 U.S. 134, 140, 89
L. Ed. 124, 129 (1944)).
The Legislature has conferred on the Environmental Management
Commission the authority to set air quality standards and regulate
pollution abatement efforts. N.C. Gen. Stat. § 143-211(c)(2003);
N.C. Gen. Stat. § 143-215.107(a)(1),(3)(2003). Such authority
includes the ability to enforce these standards and regulations
through the imposition of civil penalties. N.C. Gen. Stat. § 143-
215.114A (2003). The statute provides, in pertinent part,
(a) A civil penalty of not more than ten
thousand dollars ($10,000) may be assessed by
the Secretary against any person who:
(1) Violates any classification, standard
or limitation established pursuant to G.S.
143-215.107 [Air quality standards].
N.C. Gen. Stat. § 143-215.114A(a)(1)(2003). Petitioner's primary
objection to the Commission's interpretation of this statute is the
imposition of separate penalties for each open burning pile. Petitioner contends DENR exceeded its discretion and
authority in interpreting each pile to be one violation because
such an interpretation was an overt avoidance of the $10,000
statutory limit. The statute, however, does not define what
constitutes a violation. Even though the agency had previously
counted multiple piles as a single violation where a single penalty
was considered sufficient to effect future compliance, it is not
irrational or illogical to count each pile as one violation. Each
individual pile located within the 1,000 foot requirement does, in
fact, violate the statute. Noting the deference given to an
agency's interpretation of a statute, the trial court concluded:
12. Notwithstanding petitioner's allegation
that respondent's treatment of this multiple
pile violation is inconsistent with
respondent's treatment of petitioner's
previous multiple pile violations, the
testimony reflects a consistent application of
graduated penalties in which the amount of
each penalty increases each time petitioner
repeats the violation. Respondent may
exercise its enforcement discretion, as it did
in the preceding penalty assessments, by
declining to enforce as to a particular
burning pile where it is anticipated that a
single penalty would be sufficient to obtain
compliance. However, where repeated
violations of the same nature continue to
occur, it is not inconsistent for respondent
to begin to enforce as to each separate pile
in an effort to deter continued non-
compliance.
In light of petitioner's continued disregard for the regulations as
evidenced by three previous violations, we agree with the trial
court that the agency properly exercised its discretion in counting
each open burning pile as a separate violation. Although an
agency's interpretation of a statute is not binding on the courts,it is afforded some deference, and we see no reason to fail to
yield such deference here.
Petitioner also argues such an interpretation violated its
rights to equal protection because (1) the evidence tended to show
that no previous violators of this statute had incurred multiple
penalties for multiple piles, and (2) the assessment of multiple
penalties bore no rational relationship to the purpose of the
statute because the same debris arranged in one large pile could
only have incurred a maximum penalty of $10,000.
We disagree.
A claim of equal protection requires a two-tiered scheme of
analysis. The first tier requires the court to apply strict
scrutiny where the petitioner is either placed in a suspect class
or claims an infringement of a fundamental right.
Texfi Industries
v. City of Fayetteville, 301 N.C. 1, 10-11, 269 S.E.2d 142, 149
(1980). No fundamental right is implicated by imposing a fine on
petitioner for violation of a regulatory scheme, nor does
petitioner fall within any suspect class. Although petitioner
correctly states that a class of one may arise where an
individual has been intentionally treated differently from others
similarly situated,
Village of Willowbrook v. Olech, 528 U.S. 562,
564, 145 L. Ed. 2d 1060, 1063 (2000), petitioner does not
constitute such a class.
Mr. McManus testified he was not aware of anyone else, in his
ten years of experience, who had been cited for violating the same
regulation four times. He could remember only one individual who
had been issued as many as two notices of violations. KeithOvercash, deputy director for DENR's Division of Air Quality, also
testified that most penalties assessed were rather light because
many first-time violators were not aware of the regulations. Here,
however, upon the admission of its president and as evidenced by
three prior violations, petitioner was clearly aware of the
regulations. The evidence before the trial court, therefore,
indicated that petitioner was not, as argued, similarly situated
to others subject to the same penalties, and we decline to find
that petitioner was placed in a suspect class. Because the State's
action neither affected a fundamental right nor implicated a
suspect classification, we need not apply strict scrutiny to
petitioner's claim.
We now consider whether the imposition of multiple fines under
N.C. Gen. Stat. § 143-215.114A(a)(1) bears a rational relationship
to a conceivable legitimate government purpose.
Texfi Industries,
301 N.C. at 11, 269 S.E.2d at 149. According to N.C. Gen. Stat. §
143-211,
Standards of water and air purity shall be
designed to protect human health, to prevent
injury to plant and animal life, to prevent
damage to public and private property, to
insure the continued enjoyment of the natural
attractions of the State, to encourage
expansion of employment opportunities, to
provide a permanent foundation for healthy
industrial development and to secure for the
people of North Carolina, now and in the
future, the beneficial uses of these great
natural resources.
N.C. Gen. Stat. § 143-211(c) (2003). Petitioner argues that
imposing multiple fines for multiple burning piles bears no
rational relationship to this stated purpose. We disagree. In determining the amount of a civil penalty for violating
open burning regulations, the Division of Air Quality considers
numerous assessment factors. One such factor is the degree and
extent of harm to the natural resources of the State, to the public
health, or to private property resulting from the violation. N.C.
Gen. Stat. § 143B-282.1(b)(1) (2003). The harm resulting from
petitioner's violation was assessed as significant. Another
factor is the effect . . . on air quality, which was also found
to be significant. N.C. Gen. Stat. § 143B-282.1(b)(3) (2003).
The State's protection of the natural environment and the health of
its citizens is a vital government function. Three prior penalties
failed to deter petitioner from adhering to air quality
regulations, and the Legislature granted DENR and the Environmental
Management Commission the
authority and discretion to prevent
continuing violations by petitioner. We find the imposition of
multiple fines for multiple open burning piles to be rationally
related to a legitimate government purpose, and we find no merit in
petitioner's claim that its right to equal protection of the laws
has been violated.
Finally, petitioner argues that DENR incorrectly applied the
statutory assessment factors in reaching the amount of the civil
penalty. The Legislature granted the Environmental Management
Commission quasi-judicial power to assess civil penalties for
violations of environmental regulations. N.C. Gen. Stat. § 143B-
282.1(a) (2003). In determining the amount of those penalties, theCommission considered the following factors under N.C. Gen. Stat.
§ 143B-282.1(b) and rated petitioner's violations accordingly:
(1) The degree and extent of harm to the
natural resources of the State, to the public
health, or to private property resulting from
the violation;
significant
(2) The duration and gravity of the violation;
significant
(3) The effect on ground or surface water
quantity or quality or on air quality;
significant
(4) The cost of rectifying the damage;
not significant
(5) The amount of money saved by
noncompliance;
very significant
(6) Whether the violation was committed
willfully or intentionally;
significant
(7) The prior record of the violator in
complying or failing to comply with programs
over which the Environmental Management
Commission has regulatory authority; and
extremely significant
(8) The cost to the State of the enforcement
procedures.
not significant
N.C. Gen. Stat. § 143B-282.1(b)(2003). Our Supreme Court has
previously held that some discretion may be granted to agencies to
ensure that they accomplish the purposes for which they werecreated, provided that such discretion is accompanied by adequate
guiding standards. In the Matter of Appeal from Civil Penalty,
324 N.C. 373, 382, 379 S.E.2d 30, 35-36 (1989). In Civil Penalty,
the following assessment factors were found to be adequate guiding
standards for the agency to impose civil penalties in varying
amounts within a statutory limit: the degree and extent of harm
caused by the violation, the cost of rectifying the damage, the
amount of money the violator saved by his noncompliance, whether
the violation was committed willfully and the prior record of the
violator in complying or failing to comply with this Article. Id.
at 383, 379 S.E.2d at 36. These five factors are virtually
identical to five of the factors in N.C. Gen. Stat. § 143B-282.1(b)
above; therefore, we also hold these mandatory assessment factors
to be sufficient to check the exercise of [the agency's]
discretion in its assessment of civil penalties in varying amounts,
commensurate with the seriousness of the violations of the Act.
Id. at 383, 379 S.E.2d at 36.
Petitioner argues that we, using
de novo review, should
overrule the agency's determination of the significance of the
impact of petitioner's violations. However, the Legislature has
granted such discretion to the agency. We cannot, as a matter of
law, reevaluate the impact on the environment of petitioner's
violations; we may only review the agency's evaluation under the
whole record test. Upon careful consideration of the entire record
before us, we conclude there was substantial evidence to supportthe agency's application of the mandatory assessment factors. This
assignment of error is overruled.
We have reviewed each of petitioner's assignments of error and
find each of them to be without merit. The Commission's final
decision was supported by substantial evidence on the whole record
as submitted, and therefore the decision was not arbitrary or
capricious. Upon
de novo review, the trial court correctly
interpreted and applied the relevant law. The order from which
petitioner appeals is affirmed.
Affirmed.
Judge HUDSON concurs.
Judge JACKSON dissents.
JACKSON, Judge dissenting.
For the reasons stated below, I must respectfully dissent from
the majority's conclusion that Petitioner's violations constituted
nine, rather than one, violations of North Carolina General
Statutes section 143-215.114A.
I concur, however, with the majority's conclusion that
Petitioner violated 15A North Carolina Administrative Code 2D.1900
and reluctantly agree that the agency's use of the measuring wheel
was acceptable, although I would caution regulatory agencies
against the dangers of using another's equipment as the basis for
their enforcement actions as became apparent in the instant case.
The majority cites_and dismisses_Petitioner's argument that
the agency's decision exceeded its statutory authority. Themajority correctly notes that an argument that an agency action was
in excess of statutory authority is subject to de novo review.
North Carolina Department of Natural Resources v. Carroll, 358 N.C.
649, 658, 599 S.E.2d 888, 894 (2004).
'[W]e must expect the Legislature to legislate only so far as
is reasonable and practical to do and we must leave to [the agency]
the authority to accomplish the legislative purpose, guided of
course by proper standards.' In the Matter of Appeal from Civil
Penalty, 324 N.C. 373, 381-82, 379 S.E.2d 30, 35 (1989)(emphasis
omitted)(quoting, Com'r of Insurance v. Rate Bureau, 300 N.C. 381,
402, 267 S.E.2d 547, 563 (1980)). It is well-settled that state
agencies must employ adequate guiding standards which ensure that
the agency's decision-making process is not arbitrary and that the
agency is not called upon to make significant policy determinations
appropriately left to other branches of government. Adams v. Dept
of N.E.R, 295 N.C. 683, 697-98, 249 S.E. 2d 402, 411 (1978); see
In the Matter of Appeal from Civil Penalty, 324 N.C. 373, 382, 379
S.E.2d 30, 35.
Petitioner was cited for nine violations of 15A North Carolina
Administrative Code 2D.1900, Open Burning, within 1,000 feet of
occupied structures. North Carolina General Statutes section
215.114A specifically states that [t]he Secretary may assess a
civil penalty of not more than ten thousand dollars ($10,000) per
day for a violation of the emissions limitations set out in G.S.
143-215.107D as provided in this subsection. The company's previous history of compliance was as follows:
on 16 September 1992 Notice of Violation was issued for open
burning within 1,000 feet and a civil penalty of $1,247.44 was
assessed and paid, on 21 March 1996 Notice of Violation was issued
for open burning within 1,000 feet and a civil penalty of $1,341.56
was assessed and paid, and on 6 October 1997 Notice of Violation
was issued for open burning within 1000 feet and a civil penalty of
$2,842.00 was assessed and paid.
The initial notice of violation prepared by Tony L. McManus
(McManus), an environmental specialist with the Mooresville
Division of Air Quality in the North Carolina Department of
Environment and Natural Resources, on 5 November 1999 indicated
that there was one, not nine, violations of 15A NCAC 2D.1900 in
accordance with the agency's past practice of citing for multiple
for violations.
In the Enforcement Case Assessment Factors Report, a
recommendation prepared by McManus, the alleged violation is
described as [t]he open burning of land clearing debris within
1,000 feet of an occupied residence by MW Clearing & Grading, Inc.
located off of Highway 74/Wilkinson Boulevard . . . . No mention
is made that there were nine debris piles burning in this
description of the alleged violation. Moreover, McManus sent a
memorandum on 29 December 1999 to Mike Aldridge, supervisor of the
enforcement group, regarding petitioner's violation. In the 29
December memorandum, with the subject of Fast Track Enforcement,
McManus identified the type and number of violations as Oneviolation of 15A NCAC 2D.1900, 'Open Burning.' This citation of
one violation of the administrative code was consistent with the
agency's past practices as both McManus and Keith Overcash
(Overcash), Deputy Director for the Division, testified at the
administrative hearing.
Deputy Director Overcash, however, elected unilaterally to
throw out the agency's past practices in assessing the penalty in
this matter. Included in the evidence presented at the
administrative hearing was a Division of Air Quality_Civil Penalty
Assessment worksheet. The assessment factors were based upon
provisions included in North Carolina General Statutes section 143B-
282.1 and North Carolina Administrative Code 15A 2J.0006. These
provisions are required considerations in each assessment according
to Overcash. Accordingly, he completed a worksheet for every
penalty the agency assessed for which he was responsible. For each
factor, the alleged violation could be rated as not significant,
moderately significant, significant, very significant, or extremely
significant. Petitioner was rated as follows:
1) The degree and extent of harm to the
natural resources of the State, to the
public health, or to private property
resulting from the violation;
significant
2) The duration and gravity of the violation;
significant
3) The effect on ground or surface water
quantity or quality or on air quality;
significant 4) The cost of rectifying the damage;
not significant
5) The amount of money saved by
noncompliance;
very significant
6) Whether the violation was committed
willfully or intentionally [Cause];
significant
7) The prior record of the violator in
complying of failing to comply with the
programs over which the Environmental
Management Commission has regulatory
authority; and
extremely significant
8) Cost to the State of enforcement
procedures.
not significant
9) The effectiveness of the action taken by
the violator to cease the violation.
not significant
In addition to the assessment factors preprinted on the page,
Overcash hand wrote in the following three items: [p]reviously
assessed (3 times) for same violation; [n]ine piles [within] 1000
f[ee]t of residence; and [r]esponse from violator indicated
savings of [$]31,000 by open-burn vs. hauling. No credit was given
to petitioner for the following Remission Factors:
Whether one or more of the civil penalty
assessment factors were wrongly applied to the
detriment of the petitioner;
Whether the violator promptly abated continuing
environmental damage resulting from the
violation;
Whether the violation was inadvertent or the
result of an accident;
Whether the violator had been assessed civil
penalties for any previous violations; and
Whether payment of the civil penalty will
prevent payment for the remaining necessary
remedial actions.
Overcash also testified that there was no Division policy on
treating multiple piles as a single violation. He further stated
that because of the financial savings petitioner would realize by
burning rather than hauling away its debris, he felt that we could
count them as separate violations. Overcash also testified that
the Division uses a penalty tree to ensure consistency between
assessments from one to the next, but that basically it was for
first and second time violators and after that, the decision to
assess at a higher amount was solely in his discretion. There
simply were no principled adequate guiding standards underlying
Overcash's decision to deviate from the agency's historical practice
of assessing one penalty for multiple piles, nor for failing to
utilize the Division's penalty tree that he specifically stated was
intended to ensure consistency.
It is a well-established principal that the long standing
interpretation of a statute by the administering agency should be
given deference. 2002 N.C.A.G. 525, 2002 W.L. 431451 (N.C.A.G.)
(citing Chevron U.S.A. Inc. v. National Resources Defense Council,
Inc., 467 U.S. 837, 104 S. Ct. 2778 (1984). Administrative
interpretation of a statute, acquiesced in over a long period of
time, is properly considered in the construction of the statute by
the courts. Petty v. Owen, 140 N.C. App. 494, 500, 537 S.E.2d 216,220 (2000)(citing Duggins v. Board of Examiners, 25 N.C. App. 131,
137, 212 S.E.2d 657, 662, cert allowed, 287 N.C. 258, 214 S.E.2d 430
(1975) and affirmed, 294 N.C. 120, 240 S.E.2d 406 (1978)). Although
not binding upon this Court, the advisory opinions of the Attorney
General do merit respectful consideration. Williams v. Alexander
County Board of Education, 128 N.C. App. 599, 602, 495 S.E.2d 406,
408 (1998).
The majority states, supra, that [e]ven though the agency had
previously counted multiple piles as a single violation where a
single penalty was considered sufficient to effect future
compliance, it is not irrational or illogical to count each pile as
one violation. The majority also correctly notes the deference
properly given to an agency's interpretation of its own statutes.
However, given the agency's longstanding prior history of
interpreting violations of North Carolina General Statutes section
143-215.114A and 15A North Carolina Administrative Code 2D.1900 with
multiple burn piles as constituting one violation of the statute and
the code, that is the proper interpretation which should receive
deference, not an interpretation in which the Deputy Director
essentially throws out the rule book in order to assess a civil
penalty inconsistent with the agency's previous actions.
Because I have determined that the agency acted in excess of
its statutory authority by its actions in this instance in that it
employed wholly new guidelines never utilized before that were not
a part of its worksheet and it deviated from its penalty tree, it
is unnecessary to determine at this time whether, afterimplementation of adequate guiding standards, imposition of such
a penalty would be appropriate.
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