Matter of Cecos Intern., Inc.

574 So. 2d 385
CourtLouisiana Court of Appeal
DecidedNovember 29, 1990
DocketCA 90 1189
StatusPublished
Cited by1 cases

This text of 574 So. 2d 385 (Matter of Cecos Intern., Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Cecos Intern., Inc., 574 So. 2d 385 (La. Ct. App. 1990).

Opinion

574 So.2d 385 (1990)

In the Matter of CECOS INTERNATIONAL, INC. ("CECOS") LIVINGSTON FACILITY PERMIT APPLICATION NO. LAD00618298.

No. CA 90 1189.

Court of Appeal of Louisiana, First Circuit.

November 29, 1990.
Writ Denied January 31, 1991.

*387 Samuel O. Buckley, III, and Robert M. Contois, Jr., Jones, Walker, Waechter, Poitevent, Carrere & Denegre, New Orleans, for appellant CECOS Intern., Inc.

Gordon Green and John B. King, Office of Legal Affairs and Enforcement, Baton Rouge, for appellee State of La. thru the Dept. of Environmental Quality.

James E. Kuhn, Asst. Dist. Atty., Denham Springs, Lewis O. Unglesby, Baton Rouge, for intervenor Livingston Parish Police Jury.

John B. Sheppard, Jr., Asst. Atty. Gen., Baton Rouge, for intervenor State of La. through the Dept. of Justice.

Before EDWARDS, WATKINS, SAVOIE, LeBLANC and FOIL, JJ.

EDWARDS, Judge.

CECOS International, Inc., a hazardous waste treatment, storage, and disposal facility operator, appeals the decision of the secretary of the Department of Environmental Quality denying an application for a permit. We affirm.

In 1982, an application hearing was conducted by the Environmental Control Commission (ECC), the predecessor of the Department of Environmental Quality (DEQ). A permit was issued in 1983 to the applicant, Browning Ferris Industries Chemical Services, Inc. (BFI-CSI).[1] The operational permit was transferred to CECOS International, Inc. (CECOS), a corporate affiliate of BFI-CSI, in late 1983. In 1984, CECOS was required to submit another application for a final permit valid under the Resource Conservation and Recovery Act (RCRA) program administered by the State of Louisiana. From 1985 through 1986, the United States Environmental Protection Agency (EPA), through the National Environmental Investigations Center (NEIC), conducted inspections of the facility. Subsequently, a suit was filed against CECOS and others by the United States at the request of the EPA. The EPA was joined in the suit by the DEQ. The suit resulted in a consent decree between the parties.

On September 12, 1988, after a review of the permit application, DEQ issued a NOID—notice of intent to deny the request for a permit. See LAC 33:V.703.C.2. Four of the reasons listed by the NOID for the proposed denial were argued before the agency:

A. The inadequate natural geology of the site does not meet the requirements of LAC 33:V.517.T.3.a.;

B. The failure to comply with the 1983 permit regarding the waste analysis plan;

C. The environmental costs exceed the economic benefits; and,

D. The method of land filling waste loads and record keeping did not meet the requirements of LAC 33:V.4499. and 2509.

Upon issuance of the NOID, CECOS requested a hearing. An adjudicatory hearing was held before Dr. Ernest Easterly III. The Attorney General of Louisiana and the Livingston Parish Police Jury intervened in the proceeding.

The hearing officer reported his findings of fact and conclusions of law and recommended that the draft denial be withdrawn and that a draft permit be issued to CECOS. Generally, the hearing officer found that the geology was adequate and bolstered by the artificial contamination release barriers engineered by CECOS, the compliance history did not warrant a denial, and the potential risks did not outweigh the benefits. On May 8, 1990, Secretary Paul Templet of the DEQ, after a review of the hearing officer's decision, overruled Dr. Easterly and denied the permit application for three main reasons: (1) the geology of the site was found to be inadequate, (2) the created barriers were suspect and could not compensate for the flawed geology, and (3) *388 continued operation would subject the citizens of Louisiana to unnecessary risk.[2]

CECOS appeals.[3] The specifications of error and complaints can be grouped into six general assignments:

1. The secretary used the wrong standard of review and cannot reverse the hearing officer's findings of fact unless the officer committed manifest error.

2. The secretary's findings concerning the geology of the Livingston site are manifestly erroneous, an abuse of discretion, and legal error.

3. The secretary's findings concerning the facility's compliance history are manifestly erroneous and arbitrary. The findings were based improperly on the consent decree between CECOS and DEQ.

4. The secretary failed to conduct the risk benefit analysis required by Save Ourselves, Inc. v. Louisiana Environmental Control Commission, 452 So.2d 1152 (La. 1984). His findings concerning the risk to the environment and citizens of Livingston Parish were arbitrary, capricious, and constituted manifest error. The failure to articulate specifically his consideration of the economic benefits is in violation of constitutional and statutory provisions.

5. The secretary's findings and conclusions that the facility held an interim status permit violate state and regulatory provisions.

6. The secretary erred by not recusing himself from the review of the hearing officer's decision, and he should be recused from any further proceeding in this matter.

1. STANDARD OF REVIEW

CECOS equates the findings of fact of the hearing officer with those of a trial court and argues that the secretary must give deference to the hearing officer's factual determination and cannot overrule the hearing officer unless the secretary finds manifest error. There is no merit to this argument.

LSA-R.S. 30:2018(D) contains the standard of review to be used by the secretary when reviewing a decision of a hearing officer or an administrative law judge.[4] The secretary has the authority to overrule the decision of the hearing officer and render a contrary decision. This authority is tempered only with the requirement that the reversal must be based on the record. The authority is expanded, however, by Section 2018(D)(2)(c), which allows the secretary to gather additional evidence and hold a new hearing or hearings if he desires. The statute does not require that the secretary give deference to the findings of fact of the hearing officer as argued by CECOS. The secretary's decision can be supported by the record compiled by the hearing officer or a record compiled by the secretary, after new hearings or with additional evidence, or both.

*389 The appropriate standard of review to be used by a court when reviewing an environmental agency decision is the standard of judicial review provided by LSA-R.S. 49:964. Save Ourselves, 452 So.2d at 1158. Unless this court finds a fatal error of law, substantive or procedural, or the agency has committed manifest error in its findings or abuses its discretion in exercising its authority, we cannot reverse.[5] See Sistler v. Liberty Mutual Insurance Company, 558 So.2d 1106, 1111-12 (La. 1990); Save Ourselves, 452 So.2d at 1158-59.

2. GEOLOGY OF THE SITE

There is a broad range of expert testimony available in the record. The tests and borings conducted on the site in preparation for the new RCRA permit application were more extensive than those originally done for the 1983 permit application. The experts agreed that the site lies in the geologic area of the state known as the Middle Prairie Terrace. The experts agreed that clay deposits comprise part of the geology at the site and that CECOS has built barriers around the site and the containment cells.

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