IN THE MATTER OF THE IMPLEMENTATION OF L. 2012, C. 24, THE SOLAR ACT OF 2012, ETC. (BOARD OF PUBLIC UTILITIES) ( 2017 )


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  •                      NOT FOR PUBLICATION WITHOUT THE
    APPROVAL OF THE APPELLATE DIVISION
    This opinion shall not "constitute precedent or be binding upon any court."
    Although it is posted on the internet, this opinion is binding only on the
    parties in the case and its use in other cases is limited. R. 1:36-3.
    SUPERIOR COURT OF NEW JERSEY
    APPELLATE DIVISION
    DOCKET NO. A-4666-15T3
    IN THE MATTER OF THE
    IMPLEMENTATION OF L. 2012,
    C. 24, THE SOLAR ACT OF
    2012; IN THE MATTER OF THE
    IMPLEMENTATION OF L. 2012,
    C. 24 N.J.S.A. 48:3-87(Q)
    (R) and (S) – PROCEEDINGS
    TO ESTABLISH THE PROCESSES
    FOR DESIGNING CERTAIN GRID-
    SUPPLY PROJECTS AS CONNECTED
    TO THE DISTRIBUTION SYSTEM;
    BRICKYARD, LLC.
    ______________________________
    Argued September 26, 2017 – Decided October 20, 2017
    Before Judges Reisner and Mayer.
    On appeal from the Board of Public Utilities,
    Docket Nos. EO12090832V, EO12090880V, and
    QO13101020.
    Steven W. Griegel argued the cause for
    appellant Brickyard, LLC (Roselli Griegel
    Lozier & Lazzaro, PC; Mr. Griegel, on the
    briefs).
    Renee Greenberg, Deputy Attorney General,
    argued the cause for respondent New Jersey
    Board of Public Utilities (Christopher S.
    Porrino, Attorney General, attorney; Andrea M.
    Silkowitz, Assistant Attorney General, of
    counsel; Ms. Greenberg, on the brief).
    PER CURIAM
    Brickyard, LLC appeals from a May 25, 2016 final decision of
    the Board of Public Utilities, denying Brickyard's application for
    an extension of time beyond May 31, 2016 to complete construction
    of Phase II of its solar energy project, pursuant to N.J.S.A.
    48:3-87(q) of the Solar Act.        The Board initially disapproved the
    Phase II project, but later granted approval as part of the
    settlement of Brickyard's appeal from the disapproval decision.
    On    this   appeal,   Brickyard    contends    that   the   Board   erred     in
    rejecting Brickyard's proffered interpretation of the settlement
    as permitting completion of the project after May 31, 2016.                    In
    the    alternative,     Brickyard    contends     that   the    Board     acted
    arbitrarily in denying its extension request while granting an
    extension to a similarly-situated applicant, True Green Capital
    Management LLC (True Green), and that the Board failed to explain
    its reasons for the different treatment.
    The Board's May 25, 2016 decision thoroughly explained the
    applicable statutory scheme, set forth in section 87(q) of the
    Solar Act of 2012, L. 2012, c. 24, and the procedural history of
    this matter.     Those details need not be repeated here.               Suffice
    to say that the purpose of the Act is to encourage the development
    of solar energy, and what is at stake for Brickyard is the
    opportunity to obtain financial subsidies for the energy that
    2                                 A-4666-15T3
    would be produced by its Phase II solar project.        See In re
    Implementation of L. 2012, C. 24, 
    443 N.J. Super. 73
    , 75-76 (App.
    Div. 2015).
    Our review of a contract, including a settlement agreement,
    is de novo.   GMAC Mortg., LLC v. Willoughby, 
    230 N.J. 172
    , 183
    (2017).   After considering the record in light of that standard,
    we agree with the Board that the settlement was unambiguous.        It
    required Brickyard to complete construction of the Phase II project
    by May 31, 2016, which was the deadline that applied to all solar
    projects approved under 87(q) for Energy Year 2015 (EY2015).        In
    fact, on June 23, 2015, shortly after the appeal was settled and
    the Board approved the Phase II project, the agency sent Brickyard
    written notice of the May 31, 2016 deadline, to which Brickyard
    raised no objection.   Brickyard's arguments with respect to the
    construction of the settlement agreement are without sufficient
    merit to warrant further discussion.   R. 2:11-3(e)(1)(E).
    However, we are constrained to remand this matter to the
    Board for reconsideration, because the agency did not meaningfully
    consider or sufficiently explain why, having placed Brickyard in
    the same position as any other EY2015 applicant, it did not then
    apply the same considerations to Brickyard that it applied to True
    Green, another applicant that previously sought an extension.     See
    In The Matter Of The Implementation Of L. 2012, C. 24, The Solar
    3                            A-4666-15T3
    Act Of 2012; And In The Matter Of The Petition Of True Green
    Capital Management LLC For An Extension Of The Designation Date
    Set   Forth   In   The   Matter   Of   Augusta   Solar   Farms   (Docket   No.
    QO13101014) Pursuant To N.J.S.A. 48:3-87(Q), 2016 N.J. PUC LEXIS
    58 (Feb. 24, 2016).1      In the True Green case, the applicant sought
    an extension of the deadline for its FY2014 project, due to
    extraordinary      circumstances,      including   the   inability   of    its
    contractor    to   finish    construction.         The   Board   granted   the
    application as a matter of equity, noting that no other FY2014
    applicant had sought an extension.         In seeking a minimum six-month
    extension, Brickyard submitted a detailed certification explaining
    why it was unable to complete the project and explaining the
    extensive steps it had already taken toward completion.               On its
    face, the application set forth many of the same factors present
    in the True Green matter.
    However, in rejecting Brickyard's application, the Board made
    no effort to distinguish True Green, other than the conclusory
    statement that Brickyard's section 87(q) approval resulted from a
    settlement.    The Board did not explain why the deadline set forth
    in the settlement was essential or why, in its capacity as an
    1
    Ordinarily we do not cite to unpublished decisions of courts or
    agencies.   However, we cite this agency decision because it is
    directly relevant to the history of the Board's decision-making
    under section 87(q) and is central to the issue before us.
    4                              A-4666-15T3
    adjudicator rather than as a litigant, the Board considered the
    settlement     as    a    definitive    factor.     Nor   did    it    provide   any
    meaningful analysis of whether Brickyard's extension application
    otherwise differed from that of True Green.
    Ordinarily, our review of an agency decision is deferential.
    See E. Orange Bd. of Educ. v. N.J. Sch. Constr. Corp., 
    405 N.J. Super. 132
    , 143-44 (App. Div.), certif. denied, 
    199 N.J. 540
    (2009).    "However, the exercise of such deference is premised on
    our confidence that there has been a careful consideration of the
    facts in issue and appropriate findings addressing the critical
    issues in dispute."            Bailey v. Bd. of Review, 
    339 N.J. Super. 29
    ,
    33 (App. Div. 2001); see also N.J. Bell Tel. Co. v. Commc'ns
    Workers, 
    5 N.J. 354
    , 374-79 (1950). In this case, it was incumbent
    on the Board to give due consideration to Brickyard's arguments
    and "to explain, in this case, why an exception was permitted in
    the   past"    and,       if   Brickyard's     application      was    sufficiently
    different from that of True Green as to warrant a different result,
    what factors led the agency to that conclusion.                   Green v. State
    Health Benefits Comm'n, 
    373 N.J. Super. 408
    , 417-18 (App. Div.
    2004).
    The agency's failure to accord that consideration, and to
    provide an explanation sufficient for meaningful appellate review,
    requires      that       we    remand   this    matter    to     the    Board    for
    5                                 A-4666-15T3
    reconsideration and a more complete decision.    In remanding, we
    infer no view as to the outcome of the proceedings on remand.
    Remanded.   We do not retain jurisdiction.
    6                          A-4666-15T3
    

Document Info

Docket Number: A-4666-15T3

Filed Date: 10/20/2017

Precedential Status: Non-Precedential

Modified Date: 4/18/2021