BOLGER, Justice.
Lake and Peninsula Borough voters passed an initiative prohibiting large-scale mining activities that have a "significant adverse impact" on anadromous waters within the Borough. Pebble Limited Partnership and the State of Alaska pursued separate suits against the Borough, later consolidated, claiming that the initiative was preempted by state law. Two of the initiative sponsors intervened to support the initiative. The superior court granted summary judgment in favor of Pebble and the State and enjoined the Borough from enforcing the initiative. The initiative sponsors appeal, arguing that the dispute is unripe and that the superior court's preemption analysis was erroneous. But because at least the State has articulated a concrete harm stemming from the initiative's mere enactment, the case is ripe for adjudication. And because the initiative purports to give the Borough veto power over mining projects on state lands within its borders, it seriously impedes the implementation of the Alaska Land Act, which grants the Department of Natural Resources "charge of all matters affecting exploration, development, and mining" of state resources. We therefore affirm.
The Lake and Peninsula Borough (the Borough) is a home rule borough in southwest Alaska bordering the world's largest wild sockeye salmon fishery. Within the Borough, on state-owned land, lies what may be the world's largest discovery of undeveloped copper ore. Pebble Limited Partnership (Pebble) holds the mineral rights to this copper and has spent over a decade exploring the feasibility of mining. However, because extracting the copper would likely generate significant amounts of waste, there is concern that the Pebble project may have detrimental environmental effects that could impair the long-term sustainability of the Borough's salmon industry.
In March 2011 George Jacko, Jackie Hobson, Sr., and other Borough residents proposed the "Save Our Salmon" Initiative # 2 (the SOS Initiative), a borough initiative prohibiting the Borough Planning Commission from issuing a permit whenever a proposed resource extraction activity (a) "could result in excavation, placement of fill, grading, removal and disturbance of the topsoil of more than 640 acres of land," and (b) "will have a Significant Adverse Impact on existing anadromous waters." The SOS Initiative defined "Significant Adverse Impact" as
The SOS Initiative also replaced the requirement that an applicant obtain "[a]ll applicable state and federal permits ... before a development permit will be issued by the Borough" with the recommendation that an "applicant should obtain its development permit from the Borough prior to obtaining applicable state and federal permits." Additionally, the SOS Initiative authorized the Borough Planning Commission to indefinitely consider applications for large-scale resource extraction permits.
Before the 2011 election, Pebble sued the Borough for declaratory and injunctive relief, contending that the SOS Initiative exceeded the Borough's "power to legislate on matters governing land use permit requirements" and was thus "unenforceable as a matter of law." Pebble asked the superior court to order the Borough not to certify the SOS Initiative and to remove it from the ballot. George Jacko and Jackie Hobson, Sr. (the sponsors) moved to intervene, and the superior court granted their motion. Pebble, the Borough, and the sponsors moved for summary judgment, but the court abstained from ruling on the certification issue and deferred its evaluation of the SOS Initiative's validity until after the election.
In October 2011 Borough voters approved the SOS Initiative, enacting it as Borough law. Pebble then amended its complaint, alleging that the enacted initiative was constitutionally preempted by article VIII of the Alaska Constitution and statutorily preempted by the Alaska Land Act.
The State separately sued the Borough for declaratory and injunctive relief. Like Pebble, the State alleged that the SOS Initiative was preempted by the Alaska Constitution and by the Alaska Land Act. The State further claimed that it had "immunity from the operation of the law enacted by the SOS initiative to the extent that it purports to prohibit development of State land and State-owned minerals." The superior court consolidated the State's case with Pebble's previously filed case.
Each of the parties — Pebble, the State, the sponsors, and the Borough — moved for summary judgment on the merits of Pebble's and the State's claims. The sponsors and the Borough also argued that the case was not ripe because Pebble had not yet applied for a Borough permit.
The superior court granted summary judgment in favor of Pebble and the State. Turning first to ripeness, the court found that there was an "actual controversy" because the likelihood of permit denial would have a "dissuasive effect on potential investors" and place a "real burden" on Pebble. Likewise, the court found that the ability of "local government entities ... [to] impede natural resource development via permitting ordinances" would have a "profound[] [e]ffect[]" on "the regulatory climate in Alaska" and harm the State's royalty and tax revenues, regardless of whether local entities ultimately chose to grant or deny local development permits.
On the merits, the superior court concluded that the SOS Initiative was impliedly preempted by state statute. The court noted that the state legislature "comprehensively
The sponsors appeal.
Summary judgment is appropriate where, "view[ing] the facts in the light most favorable to the non-moving party," "the record presents no genuine issue of material fact and ... the movant is entitled to judgment as a matter of law."
Alaska Statute 22.10.020(g) grants the superior court jurisdiction to issue a declaratory judgment "[i]n case of an actual controversy." This "actual controversy" language "reflects a general limitation on the power of courts to entertain cases ... [and] encompasses a number of more specific reasons for not deciding cases, including lack of standing, mootness, and lack of ripeness."
A ripe suit for declaratory judgment will present "a substantial controversy, between parties having adverse legal interests, of sufficient immediacy and reality."
For example, in State v. ACLU of Alaska a group of citizens claimed that the state statute prohibiting marijuana possession "conflict[ed] with the privacy clause of the Alaska Constitution ... to the extent that it criminalize[d] possession of small amounts of marijuana in the home by adults for personal
Similarly, in Brause v. State, Department of Health & Social Services we held unripe a same-sex couple's claim that Alaska's then-existing prohibition on same-sex marriage prevented them from enjoying at least 115 separate rights afforded to married couples.
Although the sponsors accuse the superior court of basing its ripeness analysis on the dissenting opinions in ACLU of Alaska
We do not need to evaluate Pebble's claims of harm, because the State's claimed harm is sufficiently immediate and real to require a facial review of the SOS Initiative's validity. In its superior court briefing, the State noted that it did "not sue[] as a potential permittee." Instead, the State contended that the Initiative's mere enactment "inappropriately infringe[d] on its sovereign power" and therefore "impose[d] a concrete harm even without application."
In an effort to rebut the State's claimed harm, the sponsors pointed out that the State had not sued other boroughs regarding their land use regulations. But the superior court found this lack of previous litigation unpersuasive, and we are similarly unpersuaded. The State's decision not to sue other boroughs for different ordinances does not mean it cannot sue them. As the superior court noted, "the [S]tate has scant incentive to challenge" other boroughs' ordinances "insofar as [they] fill[] in unregulated interstices of state law" and only "theoretically conflict with DNR authority." The SOS Initiative is different, the court concluded, because it grants the Borough regulatory power that
On appeal the sponsors' ripeness arguments largely pertain to Pebble's claims and do not directly address the State's sovereignty argument. Critically, the sponsors' ripeness discussion does not address the superior court's finding that the enactment of the SOS Initiative hinders the State's ability to regulate natural resource policy. This finding provides adequate and independent support for the court's conclusion that this controversy is ripe.
The sponsors also point to our suggestion in ACLU of Alaska that even a facial challenge to a statute "could be aided by one or more concrete factual scenarios."
Finally, the sponsors accuse the superior court of "rest[ing] its ripeness determination entirely on ... facts ... obtained in an ex parte investigation."
The sponsors point out that the news of Anglo American's withdrawal from the Pebble project became public "five days after oral argument" and was therefore "never made a part of the record." (Emphasis in original.) As a result, the sponsors argue, "[t]he parties ... were precluded from any opportunity to present argument on these points." But though there is some validity to this criticism with regard to Pebble's claims of harm,
For these reasons, we agree with the superior court's conclusion that this controversy was ripe for adjudication.
Article X, section 11 of the Alaska Constitution grants home rule boroughs "all legislative powers not prohibited by law or by charter." In Jefferson v. State we noted that although "home rule powers are intended to be broadly applied," a municipal ordinance may be preempted or invalidated by state statute.
Though Jefferson involved express preemption,
Under the implied preemption standard articulated in Jefferson and Johnson, we must determine whether the SOS Initiative is so substantially irreconcilable with a state statute that the "one cannot be given its substantive effect if the other is to be accorded the weight of law."
Article VIII, section 2 of the Alaska Constitution states that "[t]he legislature shall provide for the utilization, development, and conservation of all natural resources belonging to the State, including land and waters, for the maximum benefit of its people." And the legislature, through its passage of the Alaska Land Act, has delegated to DNR "charge of all matters affecting exploration, development, and mining of the mineral resources of the state, ... and the administration of the laws with respect to all kinds of mining."
But while DNR has broad power to regulate mining throughout the state, an "act of the state legislature" is necessary before DNR may close any area of state land larger than 640 contiguous acres to mining.
Here the superior court concluded that the state legislature, "[b]y so definitively conferring gatekeeper permitting authority upon DNR, ... impliedly prohibited local governments from assuming a concurrent role." The court also concluded that "to the extent ... the SOS Initiative may be seen as potentially closing the entire [Borough] watershed to large scale mineral development, it would violate the clear purpose of AS 38.05.300" — the provision requiring DNR to obtain legislative approval before completely closing off large tracts of land to resource extraction.
The sponsors argue that these conclusions were erroneous. They contend that "there is no expressed or implied preemption of [the Borough's] authority to regulate large-scale resource extraction in the manner the SOS Initiative mandates," because "the SOS Initiative does not confer [the Borough] with `co-equal permitting authority' with the state or federal government."
The sponsors contest this point, claiming that the SOS Initiative "merely inserts an additional local layer into the permitting process" in "an effort to minimize the adverse environmental effects of large-scale mining on the [B]orough and its residents." But as noted above, the SOS Initiative sets a high standard for Borough development permits and would allow the Borough to veto projects otherwise authorized by state and federal regulators. Indeed, the SOS Initiative goes so far as to suggest that an "applicant should obtain its development permit from the Borough prior to obtaining applicable state and federal permits."
For these reasons, the superior court was correct to conclude that the SOS Initiative, if upheld, would represent a "power shift" requiring DNR — the state agency tasked by the legislature to regulate resource extraction — "to share power with a local government that ... may ignore DNR's rulings. Under such a scheme, DNR [would] no longer function[] as the sole gatekeeper" in granting and denying mining permits. Such a power shift is impliedly preempted by AS 27.05.010's provision that DNR "has charge of all matters affecting exploration, development, and mining of the mineral resources of the state."
The sponsors argue that this preemption analysis is incorrect. Citing Pebble Ltd. Partnership ex rel. Pebble Mines Corp. v. Parnell
Relatedly, the sponsors claim that we have "repeatedly found that the State does not have exclusive law-making powers over natural resources merely because of its management role under Article VIII" and that we have "accepted municipal regulation preempted by state law, the initiative also appears to be expressly preempted by AS 38.05.135(a), which states: "Except as otherwise provided, valuable mineral deposits in land belonging to the state shall be open to exploration, development, and the extraction of minerals." of mining as appropriate." (Emphasis omitted.) They cite Owsichek v. State, Guide Licensing & Control Board,
The sponsors next argue that the superior court misconstrued our holding in Johnson, which they contend was "premised upon the fact that `the local enactment [must] yield if it directly or indirectly impede[s] implementation of statutes which [seek] to further a specific statewide policy.'"
The legislature has granted DNR "charge of all matters affecting exploration, development, and mining of the mineral resources of the state."
We AFFIRM the judgment of the superior court.
FABE, Chief Justice, and MAASSEN, Justice, not participating.