American Auto Wash, Inc. v. Department of Environmental Protection

729 A.2d 175, 1999 Pa. Commw. LEXIS 363
CourtCommonwealth Court of Pennsylvania
DecidedApril 30, 1999
StatusPublished
Cited by9 cases

This text of 729 A.2d 175 (American Auto Wash, Inc. v. Department of Environmental Protection) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Auto Wash, Inc. v. Department of Environmental Protection, 729 A.2d 175, 1999 Pa. Commw. LEXIS 363 (Pa. Ct. App. 1999).

Opinions

[177]*177COLINS, President Judge.

American Auto Wash, Inc. (AAW) petitions for review of the Environmental Hearing Board (Board) order approving the assessment of penalties against AAW for its failure to install Stage II vapor recovery technology at three of its gasoline stations1 by the statutory deadline of November 15, 1993.2 On May 2, 1996, the Department of Environmental Protection (DEP) cited AAW for violations of the Act and imposed against the three stations a civil penalty in the amount of $78,809 for its failure to install the Stage II vapor recovery systems by the statutory deadline; AAW installed the systems approximately nine to ten months after the deadline.3

The Pennsylvania General Assembly enacted the Act in order to protect the Commonwealth’s air resources and to implement the provisions of the federal Clean Air Act.4 Section 2 of the Act, 85 P.S. § 4002. In 1992, the General Assembly added Section 6.7, 35 P.S. § 4006.7, which imposed deadlines for implementing Stage II vapor recovery systems in order to control volatile organic compounds released at gasoline-dispensing facilities, i.e., gasoline stations. In Montgomery and Delaware Counties, which are classified as serious or severe ozone nonattainment areas, facilities that dispensed an average of more than 100,000 gallons of gasoline per month were required to implement Stage II controls no later than November 15, 1993. AAW’s Norristown, Parkside, and Upper Darby stations fell into this category. During 1993, a station owner could comply with the Stage II requirements by retrofitting existing dispensers with CARB-ap-proved5 balance systems or vacuum-assist technology or by replacing existing dispensers with new dispensers that incorporated the vacuum-assist technology. (Notes of Testimony (N.T.), pp. 332-342; Finding of Fact No. 31.)

AAW appealed the imposition of civil penalties to the Board. AAW asserted that despite its due diligence it was unable to meet the statutory deadline because of circumstances beyond its control. AAW asserted that it did not take timely delivery of the systems it ordered because of delayed certification of the systems, which led to backlogs at the manufacturer; that manufacturers and installers gave delivery priority to the large oil companies; and that unfavorable weather conditions further delayed installation. AAW also claimed that it justifiably relied on statements made by others in the industry and by DEP representatives to the effect that noncompliance would be tolerated in light of the delays in certification and testing the systems.

Before the hearing on the merits of AAW’s appeal, DEP filed a motion in li-mine seeking to strike six claims presented in AAW’s first pre-hearing memorandum [178]*178but not raised in its notice of appeal and to preclude AAW from presenting evidence in support of those claims. In ruling on that motion, the Board concluded that it had no jurisdiction to consider claims not raised in the notice of appeal, and that an amendment to its rules permitting amendment of appeals in specified circumstances applied only to appeals filed after September 2, 1996. The Board granted DEP’s motion with respect to five of the six claims. It excluded as irrelevant evidence that DEP did not assess penalties, or assessed significantly reduced penalties, against other owner/operators who failed to install the Stage II equipment by the deadline; and evidence that DEP’s enforcement discretion was politically influenced or motivated.

The Board found that AAW failed to meet the Stage II deadline at its Norris-town, Parkside, and Upper Darby stations despite its knowledge that it could have met the deadline at each of the stations by either retrofitting existing gasoline dispensers or installing new dispensers equipped with CARB-approved Stage II technology. The Board acknowledged that station owners preferred to install vacuum-assist systems in favor of balance systems because the vacuum-assist systems were more efficient, easier for customers to use, and easier and less costly to maintain. The Board found that based on that preference, AAW decided to install improved vacuum-assist systems with the knowledge that these newer systems would not be available in time to meet the November 15, 1993 compliance deadline. Furthermore, the Board found that AAW did not contract for underground work, which needed to be done in advance of installing the Stage II technology, until October 1993 even though it approached the contractor in early 1993 and the work could have been done before the November 1993 deadline. (Finding of Fact No. 27.) The Board concluded that DEP had met its burden of proving the fact of the violation and the reasonableness of the penalty, and that AAW failed to meet its burden of establishing the impossibility of compliance by the statutory deadline.

On appeal6 to this Court, AAW raises the following issues: 1) whether the Board erred in excluding evidence on whether DEP exercises its enforcement discretion fairly and uniformly, its willingness to reduce or forgive penalties imposed on large oil companies and some independent dealers, and political influence on DEP’s enforcement discretion; 2) whether the Board erred in concluding that the penalty was appropriate in light of AAW’s justifiable belief that the deadline was not firm, DEP’s extension of deadlines for other station owners, and circumstances beyond AAW’s control that resulted in delayed delivery of Stage II systems; 3) whether the Board erred in concluding that the penalty was- reasonable; and 4) whether the Board is a biased forum so closely linked with DEP that it failed to objectively weigh the evidence AAW introduced and sought to introduce.

Exclusion of Evidence

The fundamental consideration in determining the admissibility of evidence is whether the evidence is relevant to the fact to be proved. Martin v. Soblotney, 502 Pa. 418, 466 A.2d 1022 (1983). The Board granted DEP’s motion in limine, striking most of the claims. The Board precluded AAW from introducing evidence that DEP did not penalize, or assessed significantly reduced penalties against, other station owners/operators who failed [179]*179to install the Stage II equipment by the deadline, and from introducing evidence that DEP’s enforcement discretion was politically influenced or motivated.7

The Board ruled that evidence on the issues of disparate treatment and the motivation behind DEP’s exercise of its enforcement discretion was irrelevant to the issues raised in AAW’s notice of appeal, and we concur. Although we are troubled by allegations8 that DEP reduces penalties against large oil companies while using its enforcement discretion as a club against independent operators; however, AAW did not raise these issues in its notice of appeal. Given the broadest possible reading, the notice of appeal essentially alleged that AAW exercised due diligence and that its noncompliance was caused by circumstances beyond its control. It also alleged that AAW justifiably relied on statements made by DEP representatives and others in the industry to the effect that the deadline would not be enforced because of delays in equipment certification and that AAW reasonably believed that it would not be penalized.

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American Auto Wash, Inc. v. Department of Environmental Protection
729 A.2d 175 (Commonwealth Court of Pennsylvania, 1999)

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Bluebook (online)
729 A.2d 175, 1999 Pa. Commw. LEXIS 363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-auto-wash-inc-v-department-of-environmental-protection-pacommwct-1999.