Starcher, Justice, concurring:
In the instant case, the West Virginia Department of Environmental Protection (DEP) appeals a lower court judgment that construed the Groundwater Protection Act, W.Va. Code, 22-12-1 to -14, and an accompanying regulation, W.Va. C.S.R. § 47-57-4.1 (1994), as precluding DEP from ordering appellee Cookman Realty Group, Inc. (Cookman Realty) to eliminate motor-oil contamination from its property in Grant County absent evidence that Cookman Realty was the originator of such pollution. The DEP argues that the circuit court erred in failing to afford proper deference to its policy interpretation of its own legislative rule, which the DEP argues is ambiguous as to the reach of the agency's power to order remediation.
The Court's opinion holds
that there is no ambiguity in the text of the subject regulation; I do not
differ with that holding. The concurrence by Justice Albright states that
even if there were some ambiguity in the statute or regulation at issue in
the instant case, the agency's policy interpretation of the regulation,
at best an interpretive rule, is not formulated pursuant to discretion given by statute to the DEP; and therefore
may not be used against Cookman. W.Va. Code, 29A-1-2(c) [1982].
I agree with this point also.
I write separately to emphasize
the point that in general, while an agency's interpretation of its own regulations
should not ipso facto be given deference, the agency's views should
nevertheless be recognized and given the weight that their own persuasiveness
demands. The proper approach is the multi-factor approach
of Skidmore v. Swift & Co., 323 U.S. 134, 65 S. Ct. 161, 89 L.
Ed. 124 (1944).
In Appalachian Power Co.
v. State Tax Dep't of West Virginia, 195 W. Va. 573, 466 S.E.2d 424
(1995), this Court undertook to define the standard governing judicial review
of an agency's construction of a statute that the agency was charged
by law with administering. As a starting point, we noted in Syllabus Point
1 of Appalachian Power that [i]nterpreting a statute or a regulation
presents a purely legal question subject to de novo review. This
point was qualified, however, by a recognition that an inquiring court_even
a court empowered to conduct de novo review_must examine a regulatory
interpretation of a statute by standards that include appropriate deference
to agency expertise and discretion. 195 W.Va. at 582, 466 S.E.2d
at 433.
Borrowing heavily from federal
case law on the subject, Syllabus Point 3 of Appalachian Power directs
that a reviewing court first ascertain whether a statute is silent or ambiguous
as to a particular matter so as to sanction an independent interpretation
on the part of the administrative agency:
Judicial review of an agency's
legislative rule and the construction of a statute that it administers involves
two separate but interrelated questions, only the second of which furnishes
an occasion for deference. In deciding whether an administrative agency's position
should be sustained, a reviewing court applies the standards set out by the
United States Supreme Court in Chevron U.S.A., Inc. v. Natural Resources
Defense Council, Inc., 467 U.S. 837, 104 S. Ct. 2778, 81 L. Ed. 2d
694 (1984). The court first must ask whether the Legislature has directly spoken
to the precise question at issue. If the intention of the Legislature is clear,
that is the end of the matter, and the agency's position only can be upheld
if it conforms to the Legislature's intent. No deference is due the agency's
interpretation at this stage.
Where clear evidence of legislative
intent is lacking, a reviewing court is obligated to defer to a reasonable construction
placed upon a statute by an agency's legislative rule. As we instructed in Syllabus
Point 4 of Appalachian Power,
If legislative intent is not
clear, a reviewing court may not simply impose its own construction of the statute
in reviewing a legislative rule. Rather, if the statute is silent or ambiguous
with respect to the specific issue, the question for the court is whether the
agency's answer is based on a permissible construction of the statute. A valid
legislative rule is entitled to substantial deference by the reviewing court.
As a properly promulgated legislative rule, the rule can be ignored only if
the agency has exceeded its constitutional or statutory authority or is arbitrary
or capricious. W. Va. Code, 29A-4-2 (1982).
Accord, Syllabus Point 3, City of Wheeling v. Public Service Comm'n,
199 W.Va. 252, 483 S.E.2d 835 (1997) (per curiam); Syllabus Point 5, West
Virginia Health Care Cost Review Authority v. Boone Memorial Hosp., 196
W.Va. 326, 472 S.E.2d 411 (1996).
Appalachian Power, as noted, dealt with an agency's construction of a statute through the promulgation of a legislative rule which itself had the force of law. While there is language in Appalachian Power that appears to support DEP's reliance upon the Chevron approach in context of rules, see 195 W.Va. at 586 n.13, 466 S.E.2d at 437 n.13 (noting that second step of Chevron analysis would apply in the unlikely event that we found that a legislative rule, valid in all respects, was itself ambiguous as to its intent or meaning), this Court, I believe, will clearly not extend full-blown Appalachian Power-Chevron deference to an agency's informal interpretation of its own regulation.
Admittedly, the principle that
an administrative agency should be afforded substantial deference with respect
to its interpretation of a regulation penned by its own hand has a firm basis
in federal case law that predates the United States Supreme Court's adoption
of the Chevron standard. In Bowles v. Seminole Rock & Sand Co.,
325 U.S. 410, 65 S.Ct. 1215, 89 L.Ed. 1700 (1945), the Court held that an administrative
agency's construction of its own ambiguous regulation is entitled to controlling
weight unless it is plainly erroneous or inconsistent with the regulation.
Id. at 414, 65 S.Ct. at 1217. Under this standard of judicial
review, an agency's interpretation of an ambiguous regulation controls so
long as it is 'reasonable,' that is, so long as the interpretation sensibly
conforms to the purpose and wording of the regulations Martin v. Occupational
Safety & Health Review Comm'n, 499 U.S. 144, 150-51, 111 S.Ct. 1171,
1176, 113 L.Ed.2d 117 (1991) (internal citations and quotations omitted); see
also Shalala v. Guernsey Mem. Hosp., 514 U.S. 87, 94-95, 115 S.Ct. 1232, 1236, 131 L.Ed.2d 106 (1995) (applying rule that reviewing court must
defer to a reasonable regulatory interpretation); Thomas Jefferson
Univ. v. Shalala, 512 U.S. 504, 512, 114 S.Ct. 2381, 129 L.Ed.2d 405 (1994)
(stating that HHS Secretary's interpretation of agency regulations is entitled
to substantial deference); Lyng v. Payne, 476 U.S. 926,
939, 106 S.Ct. 2333, 2341, 90 L.Ed.2d 921 (1986) (an agency's construction
of its own regulations is entitled to substantial deference). The Supreme
Court has consistently reaffirmed this principle,
(See footnote 1) and has gone so far as to
apply this form of controlling deference to an agency pronouncement set forth
in the relatively informal medium of an amicus brief. See Auer
v. Robbins, 519 U.S. 452, 462, 117 S.Ct. 905, 912, 137 L.Ed.2d 79 (1997)
(holding that Seminole Rock standard applies in such context so long
as there is no reason to suspect that the interpretation does not reflect
the agency's fair and considered judgment on the matter in question).
A number of commentators have,
however, lodged strong objections to giving administrative agencies Chevron-type
interpretive powers with respect to their own regulations. One of the more persuasive
arguments against continued adherence to Seminole Rock posits that permitting
an agency to have broad power to interpret its own regulations violates constitutional separation-of-powers restrictions by uniting the
law-making and law-exposition functions in the same agency hands. See
John F. Manning, Constitutional Structure and Judicial Deference to Agency
Interpretation of Agency Rules, 96 Colum. L. Rev. 612, 638-654 (1996).
According to this critique, Chevron and Seminole Rock operate
quite differently:
In a Chevron case,
the reviewing court asks whether agency action_usually the promulgation of
a rule, an agency enforcement action, or an adjudication_is consistent with
an authorizing statute. If the reviewing court is effectively bound by the
agency's interpretation of the statute, separation remains between the relevant
lawmaker (Congress) and at least one entity (the agency) with independent
authority to interpret the applicable legal text. In contrast, under Seminole
Rock, the reviewing court asks whether the agency action_typically an
enforcement action or adjudication_is consistent with an agency regulation.
In those circumstances, if the court is bound by the agency's interpretation
of the meaning of its own regulation, there is no independent interpreter;
the agency lawmaker has effective control of the exposition of the legal text
that it has created. In short, whereas Chevron retains one independent
interpretive check on lawmaking by Congress, Seminole Rock leaves in
place no independent interpretive check on lawmaking by an administrative
agency.
Id. at 639 (footnotes omitted). Thus, under this reasoning, it is constitutionally
imperative for the courts to impos[e] an independent judicial check
on agencies' interpretations of their own regulations. Id. at 682.
Seminole Rock has also
been criticized for fostering the promulgation of ambiguous regulations. As
one observer has stated, Seminole Rock generates incentives to
be vague in framing regulations, with the plan of issuing 'interpretations'
to create the intended new law without observance of notice and comment procedures.
Robert A. Anthony, The Supreme Court and the APA: Sometimes They Just Don't
Get It, 10 Admin. L.J. of Am.U. 1, 12 (1996); see Manning, supra,
at 655 (noting that Seminole Rock removes an important affirmative
reason for the agency to express itself clearly; since the agency can say
what its own regulations mean . . . the agency bears little, if
any, risk of its own opacity or imprecision); Thomas Jefferson Univ.
v. Shalala, 512 U.S. 504, 525, 114 S.Ct. 2381, ___, 129 L.Ed.2d 405 (1994)
(Thomas, J., dissenting) (It is perfectly understandable, of course,
for an agency to issue vague regulations, because to do so maximizes agency
power and allows the agency greater latitude to make law through adjudication
rather than through the more cumbersome rulemaking process.).
In addition to reducing the
efficacy of notice-and-comment rule-making procedures, it is further argued
that the incentives for ambiguity provided by Seminole Rock increase
the potential for governmental arbitrariness, since vague regulations provide
neither regulators nor regulated parties with explicit guidance as to the
standard by which particular conduct must be measured. See Manning,
supra, at 669-74. It is likewise pointed out that any system which
increases an agency's proclivity to promulgate vague regulations increases
the potential that the agency's actions will come under the control of special
interests: If Seminole Rock makes for systematically more indefinite
regulations and provides that the regulations mean anything the agency says
they mean (within a very broad range), then it becomes far more difficult
for an agency to cite its own regulations as a source for resisting blandishments or threats from legislators acting on behalf of organized,
but not broadly representative, interest groups. Id. at 680.
Based upon these shortcomings,
it has been argued that Seminole Rock should be abrogated, and that
the federal courts should instead apply the multi-factor approach of Skidmore
v. Swift & Co., 323 U.S. 134, 65 S.Ct. 161, 89 L.Ed. 124 (1944). See
Manning, supra, at 686-96; cf. Anthony, supra, at 34
(expressing view that Supreme Court should make clear . . .
the circumstances in which reviewing courts should not 'defer' to agency interpretations,
but should form their own interpretations after extending appropriate consideration
to agency views). Skidmore places an emphasis upon the specialized
experience and broader investigations and information available to the agency,
323 U.S. at 139, 65 S. Ct. at 164, and instructs that
the rulings, interpretations
and opinions of [an administrator], while not controlling upon the courts
by reason of their authority, do constitute a body of experience and informed
judgment to which courts and litigants may properly resort for guidance. The
weight [accorded an administrative] judgment in a particular case 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.
Id. at 140, 65 S.Ct. at 164. In the present context, Professor Manning
argues that because it places the burden of persuasion upon the agency
to convince a reviewing court of the meaning of the relevant legal text, Skidmore
satisfies the constitutionally-inspired requirement of an independent interpretive
check. Manning, supra, at 687. Furthermore,
unlike Seminole Rock, Skidmore would more generally
encourage regulatory clarity by placing a premium on well-explained agency
accounts of regulatory meaning. Id.
I believe that Skidmore,
rather than Seminole Rock, illuminates the better course for resolving
the meaning of ambiguous administrative rules and the course that this Court
will follow in establishing the law of West Virginia. Significantly, in Appalachian
Power, this Court addressed the issue of the appropriate analysis for
reviewing an agency's construction of its own interpretive rules,
(See footnote 3)
and expressly adopted the Skidmore standard. See 195 W.Va.
at 583, 466 S.E.2d at 434. I discern no basis for affording Chevron
deference to an agency's informal interpretation of its own regulations, where
we have otherwise refused to do so in the case of formal interpretive rules
promulgated pursuant to the notice-and- comment provisions of W.Va. Code,
29A-3-8 (1985) (1998 Repl. Vol.). Indeed, to do so would run afoul of the
spirit, if not the letter, of the Legislature's admonition that such interpretive
rules should not be given controlling weight unless they are issued pursuant
to a legislative grant of discretion:
An interpretive rule may not
be relied upon to impose a civil or criminal sanction nor to regulate private
conduct or the exercise of private rights or privileges nor to confer any
right or privilege provided by law and is not admissible in any administrative
or judicial proceeding for such purpose, except where the interpretive rule established the conditions for the exercise of discretionary
power as herein provided.
W.Va. Code, § 29A-1-2(c).
Thus, in the absence of
statutory or other principles that prescribe a different standard of review,
judicial review of an administrative agency's interpretation of its own legislative
rule should be governed by the standard set forth in Skidmore. The
agency's construction, while not controlling upon the courts, nevertheless
constitutes a body of experience and informed judgment to which a reviewing
court should properly resort for guidance. The weight that must be accorded
an administrative judgment in a particular case will depend upon (1) the thoroughness
evident in its consideration, (2) the validity of its reasoning, (3) its consistency
with earlier and later pronouncements, and (4) all those factors which give
it power to persuade, if lacking power to control. As we observed in Appalachian
Power, under Skidmore and its analogues,
an interpretive rule is entitled
to some deference, but it is not to be given the full Chevron deference
that applies to legislative rules. We are obligated to give appropriate
consideration to all agency interpretations (which many of our cases have
referred to as deference). Then we must decide how much weight the
interpretation should receive. To say that we give it no deference
implies that we do not even consider the interpretation, which is not the
case. We refuse to become a rubber stamp for an agency's action.
But, it is more accurate to say that interpretive rules are not to be given
controlling weight than it is to say that they would be given no deference.
There is, indeed, a great danger in giving Chevron deference (and often
legislative effect) to rules promulgated without the benefit of legislative
oversight.
195 W.Va. at 583 n.7, 466 S.E.2d at 434 n.7 (emphasis in original).
Accordingly, I concur in
the majority opinion.