Hunter v. Page Cnty.

102 F.4th 853

James HUNTER; Sheri Hunter; Bradley Hutchison; Katherine Hutchison;Susan Kelley; William McConnell; Cindy O'Hearn; Michael O'Hearn; Barbara Oliver;James Rine; Mary Rine; Stephanie Sholes, Plaintiffs - Appellants v. PAGE COUNTY, IOWA; Board of Supervisors of Page County, Iowa;Alan Armstrong; Jacob Holmes; James King; Chuck Morris; Carl Sonksen, Defendants - AppelleesShenandoah Hills Wind Project, LLC, Intervenor - Appellee

No. 23-1405

United States Court of Appeals, Eighth Circuit

Submitted: October 19, 2023

Filed: May 17, 2024

Appeal from United States District Court for the Southern District of Iowa - Western

Counsel who presented argument on behalf of the appellant and appeared on the brief was Shawn E. Shearer, of Des Moines, IA.

Counsel who presented argument on behalf of the appellees Page County, Iowa and the Board of Supervisors of Page County, Iowa, and appeared on the brief was Jason Michael Craig, of Des Moines, IA. The following attorney also appeared on the appellee brief of Page County, Iowa and the Board of Supervisors of Page County, Iowa: Marie Evelyne Brownell, of Des Moines, IA. Counsel who presented argument on behalf of the appellee Shenandoah Hills Wind Project, LLC and appeared on the brief was Kristy Dahl Rogers, of Des Moines, IA. The following attorney also appeared on the brief of Shenandoah Hills Wind Project, LLC: Bret A. Dublinske, of Des Moines, IA. The following attorneys appeared on the appellee brief of Jacob Holmes: Cathy Trent-Vilim, of Omaha, NE.,and Jason Palmer, of West Des Moines, IA.

Before SMITH, Chief Judge,¹ LOKEN and COLLOTON,² Circuit Judges.

SMITH, Chief Judge.

The Board of Supervisors of Page County, Iowa (Board) issued a commercial wind energy permit to Shenandoah Hills Wind Project, LLC (SHW) to erect wind turbines in Page County, Iowa (County). Plaintiffs, who own properties or reside near proposed turbine sites, sued the County, the Board, and County officials (collectively, "defendants") in Iowa state court. Plaintiffs claimed that (1) the permit's issuance violated the Due Process Clause of the Fourteenth Amendment to the United States Constitution; (2) it violated the Iowa Constitution, Iowa Code, and County ordinances; and (3) County officials, in violation of the Iowa Open Meetings Act, held nonpublic meetings on SHW's application. Defendants removed the case to federal court based on the federal due process claim.

The district court exercised federal question jurisdiction over the federal due process claim and supplemental jurisdiction over the state claims. It dismissed the federal due process claim for lack of prudential standing and as implausibly pleaded under Federal Rule of Civil Procedure 12(b)(6). It further dismissed the state claims as time-barred under Iowa law and implausibly pleaded under Rule 12(b)(6). A few days later, the County revoked the permit. Even though the permit has been revoked, plaintiffs have appealed the district court's order.

Although the parties have not raised jurisdiction as an issue in this appeal, we have an independent obligation to determine whether a dispute is a constitutional case or controversy that we may decide. U.S. Const. art. III, § 2, cl. 1. For the reasons stated herein, we hold that the County's revocation of SHW's permit mooted plaintiffs' claims, except their claims under the Iowa Open Meetings Act. The district court permissibly exercised supplemental jurisdiction over these remaining claims and properly dismissed them. We affirm in part, vacate in part, and remand to the district court for further proceedings consistent with this opinion.

I. Background

Since 1983, the State of Iowa has promoted the development of alternative energy resources, including wind, solar, and hydroelectric energy. Iowa Code §§ 476.41-.42. As of 2022, Iowa exceeded every other state in the percentage of wind energy—62 percent—used to meet residents' electricity demands. U.S. Energy Info. Admin., Iowa: State Profile and Energy Estimates, U.S. Energy Atlas, https://www.eia.gov/state/?sid=IA (accessed Mar. 28, 2024). In Iowa, county governments play an integral role in assisting the state government's efforts to develop wind energy. See, e.g., Iowa Code § 476.48 ("Small wind innovation zone program").

In accordance with these statewide efforts, the Board enacted the Wind Energy Conversion Systems on Property Located in the Unincorporated Areas of Page County Ordinance (Wind Ordinance) in 2019. The Wind Ordinance establishes a framework for siting, building, and operating commercial wind turbines in the County. According to plaintiffs, the Board enacted the Wind Ordinance at the behest of representatives of Invenergy Renewables Holdings LLC (Invenergy)—a privately owned, international developer of alternative energy resources. SHW, the intervenor in this case, is Invenergy's subsidiary. SHW was created to develop the Shenandoah Hills Wind Project in Page and Fremont Counties, Iowa.³

Pursuant to the Wind Ordinance, Invenergy and SHW applied for a Commercial Wind Energy Conversion Systems (C-WECS) permit in March 2022. Obtaining a C-WECS permit was merely the first of several steps that Invenergy and SHW would need to complete before proceeding with their proposed project. They would also need further regulatory approvals, including building or construction permits, a road-use agreement, and a decommissioning plan. The County's zoning administrator thoroughly reviewed Invenergy and SHW's application, determined that it complied with the Wind Ordinance, and forwarded it to the Board. The Board conducted its own review, consulted outside counsel, received public comments, and ultimately issued a C-WECS permit in August 2022.

Plaintiffs are County residents who oppose the project. They own properties near proposed turbine sites. They are concerned that turbines would interfere with the use, enjoyment, and values of their properties and could injure bald eagles, migratory birds, bats, butterflies, and other winged species. In Iowa state court, plaintiffs filed a 219-page complaint against the County and its Board, supervisors, zoning administrator, and attorney. Plaintiffs made numerous claims. These included claims that the Wind Ordinance is void for vagueness under the due process clauses of the federal and state constitutions; the Board did not follow proper procedures when it enacted the Wind Ordinance, and an older zoning ordinance still controls;⁴ issuance of a permit to SHW was arbitrary and capricious under Iowa law; the Board unlawfully favored SHW by considering its application despite a local moratorium on new wind projects; the Board exceeded its authority under home-rule provisions in Iowa law; one Board member was conflicted when he voted because he had an interest in a Nebraska company that explores for minerals, some of which can be used in wind turbines; and County officials violated the Iowa Open Meetings Act by holding nonpublic meetings with Invenergy and SHW lobbyists. Plaintiffs' entire complaint sounded in Iowa law, except for their federal due process claim.

Based on the federal due process claim, defendants removed this case from state court to federal court. See 28 U.S.C. §§ 1441(a), 1446. The district court exercised federal question jurisdiction over the federal due process claim and supplemental jurisdiction over the state claims. See id. §§ 1331, 1367(a). SHW intervened to defend its interests in the project. See Fed. R. Civ. P. 24.

During the district court proceedings, County voters elected County officials who opposed the project. Plaintiffs moved to remand the case to Iowa state court, defendants (the new officials) consented to remand, and intervenor SHW opposed remand. Against the express desires of plaintiffs and defendants, the district court declined to remand the case. It cited a "public interest" in developing alternative energy resources, federal and state interests in developing these resources, SHW's interest in moving forward with the project, and judicial interests in "efficiency" and "economy, convenience, fairness, and comity." Hunter v. Page Cnty., 653 F. Supp. 3d 600, 606, 613, 615 (S.D. Iowa 2023).

On January 31, 2023, the district court dismissed plaintiffs' claims. It first concluded that plaintiffs had constitutional but not prudential standing to bring their federal due process claim. Thus, it dismissed this claim and cited implausibility as an alternative rationale. Next, the district court exercised its discretion and retained supplemental jurisdiction over plaintiffs' state claims, notwithstanding its dismissal of the only federal claim. Then, the district court addressed defendants' and intervenor's Rule 12(b)(6) motions. The district court concluded that plaintiffs' state claims were time-barred under Iowa law and implausible on their face. See id. at 616 (citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)).

On February 3, 2023, the County's zoning administrator sent a letter to SHW, purporting to revoke the C-WECS permit. SHW appealed to the County Board of Adjustment. On March 3, 2023, the Board of Adjustment upheld the decision to revoke the permit.⁵ On March 9, 2023, SHW filed a complaint in the federal district court against the County, Board of Supervisors, Board of Adjustment, zoning administrator, and other County officials. Am. Compl., SHW v. Page Cnty., No. 1:23-CV-00005-SMR-SBJ (S.D. Iowa Mar. 9, 2023), ECF No. 4. Among other things, SHW claimed violations of its property interests under the Takings and Due Process Clauses of the United States Constitution. U.S. Const. amends. V, XIV.

On February 27, 2023, plaintiffs filed a notice of appeal in this case. No party suggested that this case became moot after the zoning administrator's decision of February 3, 2023, or the Board of Adjustment's decision of March 3, 2023.

II. Discussion

In this appeal, the parties have meaningfully addressed a number of issues. Howev...