Green Valley Special Util. Dist. v. Walker

351 F. Supp. 3d 992
CourtDistrict Court, W.D. Texas
DecidedNovember 28, 2018
DocketCause No.: AU-17-CA-00819-SS
StatusPublished
Cited by1 cases

This text of 351 F. Supp. 3d 992 (Green Valley Special Util. Dist. v. Walker) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Green Valley Special Util. Dist. v. Walker, 351 F. Supp. 3d 992 (W.D. Tex. 2018).

Opinion

SAM SPARKS, SENIOR UNITED STATES DISTRICT JUDGE

BE IT REMEMBERED on this day the Court reviewed the file in the above-styled cause, and specifically Plaintiff Green Valley *996Special Utility District (Green Valley)'s Motion for Summary Judgment [# 100]; Defendant Guadalupe Valley Development Corporation (GVDC)'s Response [# 102] in opposition; Defendants Deann T. Walker, Arthur C. D'Andrea, Shelly Botkin, and John Paul Urban, in their capacity as officials of the Public Utility Commission of Texas (collectively, the PUC)'s Response [# 103] in opposition; Defendants Brian James, in his official capacity as City Manager of the City of Schertz, and the City of Schertz (collectively, Schertz)'s Response [# 104] in opposition; and Green Valley's Reply [# 115] in support; as well as Schertz's Motion for Summary Judgment [# 106]; GVDC's Motion for Summary Judgment [# 120]; the PUC's Motion for Summary Judgment [# 121]; Green Valley's Responses [# 122] thereto; and GVDC's Reply [# 123] in support. Having reviewed the documents, the governing law, and the file as a whole, the Court now enters the following opinion and orders.

Background

I. Introduction

This is a federal preemption case. Green Valley is a special utility district formed to provide water and sewer service to portions of Bexar, Comal, and Guadalupe Counties. Green Valley Mot. Summ. J. [# 100-2] Ex. 1A (Water CCN) at 1; id. [# 100-2] Ex. 1B (Sewer CCN) at 2.1 Towards this end, Green Valley has acquired two Certificates of Convenience and Necessity (CCNs)-issued by the PUC-which give Green Valley an exclusive right to provide water and sewer service to a designated service area within these counties. Water CCN; Sewer CCN.

In part, Green Valley has funded its operations with a federal loan obtained under 7 U.S.C. § 1926. Green Valley Mot. Summ. J. [# 100-2] Ex. 1C at 3-75. Section 1926(b) provides that, during the term of this loan, "the service provided or made available" by utility associations such as Green Valley "shall not be curtailed or limited by inclusion of the area served ... within the boundaries of any municipal corporation or other public body, or by the granting of any private franchise for similar service within such area." 7 U.S.C. § 1926(b).

II. The Schertz Decertification Application

In October 2014, Schertz notified Green Valley that it intended to provide sewer service to approximately 405 acres of land within Schertz's corporate limits but encompassed by Green Valley's Sewer CCN (the Schertz Acreage). Green Valley Mot. Summ. J. [# 100-7] Ex. 2J (Schertz Decertification Order) at 28. Schertz then filed an application under Texas Water Code § 13.255(b) requesting the PUC decertify this acreage from Green Valley's Sewer CCN and recertify the same acreage to Schertz. Id. at 29. Section 13.255(b) allows municipalities to apply for certification to provide water or sewer service to areas falling within the municipalities' corporate limits. TEX. WATER CODE § 13.255(b). PUC officials lack discretion to deny applications sought under § 13.255 because § 13.255 states the PUC "shall grant single certification to the municipality" upon receipt of an application. Id § 13.255(c). Relying on this statutory language, the PUC concluded it must grant Schertz's application.2 Schertz Decertification Order *997at 37. The PUC then decertified the acreage in question from Green Valley's Sewer CCN and recertified the acreage to Schertz. Id. at 40. The practical effect of this maneuver was to revoke Green Valley's exclusive right to provide sewer service to the Schertz Acreage.

III. The GVDC Decertification Petition

GVDC owns a tract of land (the GVDC Tract) within Green Valley's service area. Green Valley Mot. Summ. J. [# 100-7] Ex. 2H (GVDC Decertification Order) at 9, 12. In October 2014, GVDC informed Green Valley that it planned to begin development on this Tract and would require water and sewer service as its development progressed.3 GVDC Resp. [# 102-1] Ex. 1 (GVDC Service Request) at 1-18. GVDC further requested that Green Valley produce "a definitive commitment and agreement" by September 28, 2015 regarding the provision of sewer service. Id. [# 102-1] Ex. 2 (GVDC Commitment Demand) at 19-20.

In response, Green Valley informed GVDC that Green Valley was "committed to serving [customers] within its CCNs" and had recently taken several steps to facilitate the provision of wastewater services, such as purchasing 65 acres of land for construction of a wastewater treatment facility and applying for a discharge permit4 in order to provide service to GVDC on an "expedited basis." Id. [# 102-1] Ex. 3 (Green Valley Commitment) at 21-23. Green Valley further explained there were currently no wastewater facilities near the GVDC Tract because "sparse development" within Green Valley's Sewer CCN had historically rendered the construction of such facilities impractical. Id. at 21-22.5 As development of the area accelerated, however, Green Valley aimed to construct "a permanent facility ... to serve current and future growth." Id. at 22. Green Valley also assured GVDC that it would pursue various options to provide interim service to GVDC on an "expedited basis" until a permanent wastewater facility was constructed. Id. In all, Green Valley estimated that, after a "fair sharing of costs and responsibilities," GVDC would need to pay roughly $3.6 million in order to receive sewer service.

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Bluebook (online)
351 F. Supp. 3d 992, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-valley-special-util-dist-v-walker-txwd-2018.