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Spectre, LLC v. South Carolina Dhec.

Citations: 688 S.E.2d 844; 386 S.C. 357; 40 Envtl. L. Rep. (Envtl. Law Inst.) 20043; 2010 S.C. LEXIS 11Docket: 26764

Court: Supreme Court of South Carolina; February 1, 2010; South Carolina; State Supreme Court

Narrative Opinion Summary

In a case concerning the denial of a stormwater/land disturbance permit by the South Carolina Department of Health and Environmental Control (DHEC), the Supreme Court of South Carolina addressed key issues regarding the applicability and enforceability of the Coastal Management Program (CMP). Spectre, LLC sought to fill 31.76 acres of freshwater wetlands for commercial development, which DHEC denied based on inconsistency with the CMP. The Administrative Law Court (ALC) initially ruled in favor of Spectre, arguing that the CMP was unenforceable under the Administrative Procedures Act (APA) and did not apply to the project. However, the Supreme Court reversed this decision, affirming DHEC's authority under the Coastal Zone Management Act (CZMA) to enforce CMP provisions. The court emphasized the ecological significance of wetlands and upheld the CMP's broader jurisdiction over coastal projects, including those involving wetlands delineated by the Army Corps of Engineers. The decision reinforced that DHEC's review system, developed under statutory requirements, is valid for ensuring compliance with the CMP, and the permit could not be granted by operation of law. This ruling highlights the importance of environmental considerations in state and federal permitting processes within the coastal zone.

Legal Issues Addressed

Authority under Coastal Zone Management Act

Application: The South Carolina Department of Health and Environmental Control (DHEC) has the authority to deny permits inconsistent with the Coastal Management Program.

Reasoning: The Supreme Court of South Carolina reversed this decision, affirming DHEC's authority under the Coastal Zone Management Act (CZMA) to deny the permit.

Enforceability of the Coastal Management Program

Application: The Coastal Management Program (CMP) is deemed enforceable despite not being promulgated as a regulation under the Administrative Procedures Act.

Reasoning: The CMP’s enactment procedure, being more specific and rigorous than the APA's general provisions, takes precedence.

Environmental Impact on Wetlands

Application: Wetlands are recognized for their ecological value, which supports DHEC's decision to deny permits unless no feasible alternatives exist.

Reasoning: Wetlands are recognized as critical habitats for wildlife and plant species, as well as hydrologic buffers for stormwater runoff and aquifer recharge, leading to the discouragement of commercial development in these areas.

Jurisdiction and Applicability of CMP

Application: The CMP applies to all projects within the coastal zone, including those involving wetlands delineated by the Army Corps of Engineers, despite the ALC's narrower interpretation.

Reasoning: The property in question has already been identified as containing wetlands delineated by the Army Corps, validating the application of the Coastal Management Program (CMP).

Review Process for Coastal Zone Projects

Application: DHEC is required to create a system for reviewing state and federal permit applications to ensure consistency with the CMP.

Reasoning: DHEC is mandated to create a system for reviewing all state and federal permit applications within the coastal zone to ensure compliance with the coastal management plan (CMP).