AC Interests L.P., Formerly American Coatings, L.P. v. Texas Commission on Environmental Quality

Court of Appeals of Texas·Decided July 9, 2015·No. 01-15-00378-CV·Published

Opinion

ACCEPTED

01-15-00378-CV

FIRST COURT OF APPEALS

HOUSTON, TEXAS 7/9/2015 3:40:21 PM CHRISTOPHER PRINE

CLERK

No. 01-15-00378-CV

IN THE COURT OF APPEALS FILED IN 1st COURT OF APPEALS

FOR THE FIRST DISTRICT OF TEXAS HOUSTON, TEXAS AT HOUSTON 7/9/2015 3:40:21 PM CHRISTOPHER A. PRINE

Clerk

AC INTERESTS, L.P., FORMERLY AMERICAN COATINGS, L.P., Appellant,

v.

TEXAS COMMISSION ON ENVIRONMENTAL QUALITY Appellee.

On Appeal from the 53rd Judicial District, Travis County, Texas, Cause No. D-1-GN-14-005160

BRIEF OF APPELLEE,

TEXAS COMMISSION ON ENVIRONMENTAL QUALITY

KEN PAXTON CYNTHIA WOELK Attorney General of Texas Assistant Attorney General State Bar No. 21836525

CHARLES E. ROY First Assistant Attorney General Environmental Protection Division JAMES E. DAVIS P. O. Box 12548 Deputy Attorney General for Civil Austin, TX 78711-2548 Litigation Tel: (512) 475-4013 Fax: (512) 320-0052ATTORNEYS JON NIERMANN FOR APPELLANT Chief, Environmental Protection TEXAS COMMISSION ON Division ENVIRONMENTAL QUALITY

July 9, 2015

TABLE OF CONTENTS

Page

TABLE OF CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii

INDEX OF AUTHORITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv

STATEMENT OF THE CASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

STATEMENT REGARDING ORAL ARGUMENT . . . . . . . . . . . . . . . . . . . . . . . 2

ISSUE PRESENTED FOR REVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

STATEMENT OF FACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

SUMMARY OF THE ARGUMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

STANDARD OF REVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

ARGUMENT AND AUTHORITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

A. The Third Court of Appeals has already decided this issue: service requirements like this one are mandatory. . . . . . . . . . . . . . . . . . . . . . 9

B. The 30-day requirement in the Clean Air Act controlled. . . . . . . . . 12

C. The legislature did not override the Clean Air Act’s 30-day service requirement by amending the Water Code. . . . . . . . . . . . . . . . . . . . 14

D. It does not matter if AC Interests promptly gave someone at the Commission a copy of the Original Petition. . . . . . . . . . . . . . . . . . 15

E. Clean Air Act § 382.032(c) does not include a good-andsufficient -cause-for-delay or due diligence exception to the 30-day requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

ii

Page

F. There is no undue harm exception to the 30-day service requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

G. AC Interests claims but does not show it has a vested property right in the Emission Reduction Credits that it seeks. . . . . . . . . . . . 18

CONCLUSION AND PRAYER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

CERTIFICATE OF COMPLIANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

CERTIFICATE OF SERVICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

iii

INDEX OF AUTHORITIES

Cases Page

Atty. Gen. of Tex. v. Farmers Ins. Exchange, 411 S.W.3d 139 (Tex. App.—Austin 2013, no pet.) . . . . . . . . . . . . . . . . . 14

Balistreri-Amrhein v. AHI, No. 05-09-01377-CV, 2012 WL 3100775 (Tex. App.—Dallas July 31, 2012, pet. denied) (mem. op.) . . . . . . . . . . . 18

Bragg v. Edwards Aquifer Auth., 71 S.W.3d 729 (Tex. 2002) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Curry v. Heard, 819 F.2d 130 (5th Cir. 1987) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17, 18

Fireman’s Fund County Mut. Ins. Co. v. Hidi, 13 S.W.3d 767 (Tex. 2000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Fleming Foods of Tex. v. Rylander, 6 S.W.3d 278 (Tex. 1999) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Hallco Texas, Inc. v. McMullen County, 1997 WL 184719 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Helle v. Hightower, 735 S.W.2d 650 (Tex. App.—Austin 1987, writ denied) . . . . . . . . . . . . . . 18

Heritage on San Gabriel Homeowners Ass’n v. Tex. Comm’n on Envtl. Quality, 393 S.W.3d 417 (Tex. App.—Austin 2012, pet. denied) . . . . . . . . . . . . . . . 7

Hooks v. Dep’t of Water Res., 611 S.W.2d 417, 419 (Tex. 1981) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Horizon/CMS Healthcare Corp. v. Auld, 34 S.W.3d 887, 901 (Tex. 2000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

iv

Cases (cont’d) Page

MCI Sales & Serv., Inc. v. Hinton, 329 S.W.3d 475 (Tex. 2010) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

N.E. Neighbors Coal. v. Tex. Comm’n on Envt’l Quality, No. 03-11-00277-CV, 2013 WL 1315078 Tex. App.—Austin Mar. 28, 2013, pet. denied) . . . . . . . . . . . . . . . . . . . . . 11

State v. Colyandro, 233 S.W.3d 870 (Tex. Crim. App. 2007) . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Stephenson v. Corporate Servs. Inc., 650 S.W.2d 181 (Tex. App.—Tyler 1983, writ ref’d n.r.e.) . . . . . . . . . . . . 16

Taylor v. Meador, 326 S.W.3d 682 (Tex. App.—El Paso 2010, no pet.) . . . . . . . . . . . . . . . . . 18

Tex. Comm’n on Envt’l Quality v. Kelsoe, 286 S.W.2d 91 (Tex. App.—Austin 2009, pet. denied) . . . . . . . . . . . . . . . 19

Tex. Natural Res. Conserv. Comm’n v. Sierra Club, 70 S.W.3d 809 (Tex. 2002) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13, 15, 16

TJFA, L.P. v. Tex. Comm’n on Envtl. Quality, 368 S.W.3d 727 (Tex. App.—Austin 2012, pet. denied) 9, 10, 11, 15, 16, 17

USA Waste Servs. of Houston, Inc. v. Strayhorn, 150 S.W.3d 491 (Tex. App.—Austin 2004, pet. denied) . . . . . . . . . . . . . . . 7

v

Texas Statutes Page Tex. Gov’t Code § 311.021(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Tex. Health & Safety Code (Solid Waste Disposal Act)

§ 361.321 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 § 361.321(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10, 11, 15

Tex. Health & Safety Code (Clean Air Act)

§§ 382.001-.510 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 4 § 382.002(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 §§ 382.011-.012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 § 382.017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 § 382.032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 6, 8, 12, 13 § 382.032(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 § 382.032(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 3, 6, 8, 11, passim

Tex. Water Code § 5.351 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12, 13 § 5.353 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6, 12, 13

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