Sierra Club v. Texas Commission on Environmental Quality and Waste Control Specialists

Court of Appeals of Texas·Decided January 14, 2015·No. 03-11-00102-CV·Published

Opinion

ACCEPTED

03-11-00102-CV

3775257

THIRD COURT OF APPEALS

AUSTIN, TEXAS

1/14/2015 11:11:20 PM

JEFFREY D. KYLE

CLERK

No. 03-11-00102-CV

IN THE THIRD COURT OF APPEALS FILED IN 3rd COURT OF APPEALS

AUSTIN, TEXAS AUSTIN, TEXAS 1/14/2015 11:11:20 PM

JEFFREY D. KYLE

Sierra Club, Clerk Appellant

v.

TEXAS COMMISSION ON ENVIRONMENTAL QUALITY AND WASTE CONTROL SPECIALISTS, Appellees

On appeal from the 201st Judicial District Court Travis County, Texas

Cause No. D-1-GN-08-003021

APPELLANT’S MOTION FOR REHEARING EN BANC

Marisa Perales

State Bar No. 24002750

FREDERICK, PERALES,

ALLMON & ROCKWELL, P.C.

707 Rio Grande, Suite 200 Austin, Texas 78701

Telephone (512) 469-6000

Facsimile (512) 482-9346

marisa@lf-lawfirm.com

COUNSEL FOR SIERRA

CLUB

January 14, 2015

TO THE HONORABLE JUSTICES OF THE THIRD COURT OF APPEALS:

Appellant Sierra Club submits this motion for rehearing en banc.1 See Tex. R.

App. P. 49.5 & 49.7. In support, Sierra Club respectfully offers the following: I. Summary of Argument Although the Court modified its original opinion in this case to address some of the citation errors, the Court’s modified opinion continues to raise concerns regarding the standard of review to be applied to an agency decision denying a request for a contested case hearing, particularly when no opportunity to develop an evidentiary record has been afforded the hearing requestor.

In affirming the Commission’s decision in this case,2 the Court employed a substantial evidence standard of review, looking to the record for some information

1

Because this Court’s decision and analysis in this case is similar to the one reached in Texas Commission on Environmental Quality v. Sierra Club, No. 03-12-00335-CV (Tex. App.— Austin, Apr. 18, 2014, no pet. h.) (the “low-level radioactive waste case), and the potential impact of the two decisions is similar, the arguments presented in this Motion for Rehearing En Banc are similar to the ones presented in Sierra Club’s Motion for Rehearing En Banc, filed on this same day, in the low-level radioactive waste case.

2

The Court states that this “facility” has been and is the subject of numerous lawsuits and cites a number of causes for support. But this by-product disposal facility is actually not the subject of numerous lawsuits. The cases out of the El Paso Court of Appeals this this Court cites, In re Sierra Club, 420 S.W.3d 153 (Tex. App.—El Paso Nov. 28, 2012, orig. proceeding); Sierra Club v. Andrews County, 418 S.W.3d 711 (Tex. App.—El Paso 2013, pet. filed); and In re Sierra Club, No. 08-12-00282-CV, 2012 WL 5949789 (Tex. App.—El Paso 2012, orig. proceeding, mem. op.), involved a SLAPP (Strategic Lawsuits Against Public Participation) suit against Sierra Club by Andrews County and others. By their lawsuit, the plaintiffs complained about Sierra Club’s legal challenges to the low-level radioactive waste disposal facility, not this by- product disposal facility. Andrews County has a financial interest in the low-level radioactive waste disposal facility and accused Sierra Club of interfering with its ability to maximize profits from the facility. Andrews County does not have the same financial interest in the by-product disposal facility. Similarly, Texas Commission on Environmental Quality v. Sierra Club, No. 03-

that supports the agency’s decision and granting significant deference to that decision. In doing so, the Court has essentially decided that constitutional standing analysis has no place in administrative law proceedings.

The Court cites to Texas Commission on Environmental Quality v. City of Waco, 413 S.W.3d 409 (Tex. 2013), and Texas Commission on Environmental Quality v. Bosque River Coalition, 413 S.W.3d 403 (Tex. 2013) in support of this proposition. But the Court reads too much into those decisions. Those decisions did not do away with constitutional standing law, as explained more fully below; nor did they adopt a substantial evidence standard of review, when no opportunity to develop the evidence has been provided.

The inevitable result of this Court’s decision, if it is not revised, is that virtually no hearing requestor will ever qualify as an affected person, under the Court’s new analysis.

II. This Court’s decision allows TCEQ to deny standing to almost any hearing requestor, based on information presented by TCEQ’s staff and the permit applicant, and hearing requestors are left with no meaningful legal recourse.

12-00335-CV; Texas Commission on Environmental Quality v. Sierra Club, No. 03-12-00625- CV, 2014 WL 902513 (Tex. App.—Austin Mar. 7, 2014, no pet. h.); and In re Sierra Club, No. 03-12-00712-CV, 2012 WL 6554812 (Tex. App.—Austin 2012, orig. proceeding, mem. op.), concern TCEQ’s decision to grant WCS a license and the authorization to construct and operate the low-level radioactive waste disposal facilities, not the by-product facility.

In reaching its decision affirming TCEQ’s denial of Sierra Club’s hearing request, this Court conducted a substantial evidence review of the administrative record. The Court explained that the information contained in the administrative record and available to the commissioners—i.e., the Executive Director’s response to hearing requests, WCS’s application, and the environmental analysis—provides a reasonable basis for TCEQ’s decision. Slip op. at 14. But see, e.g., 30 Tex. Admin. Code § 55.211(b) (listing the information—response to comments, requests for reconsideration, and requests for contested case hearing—TCEQ may consider in evaluating hearing requests for certain applications). The Court further reasoned that the record includes “evidence” that WCS’s application met the statutory requirements for a by-product disposal license, and that the operation of the facility within the parameters of the draft license is not likely to contaminate the groundwater, soils, surface water, or air in the vicinity of the disposal site. Slip op. at 15. Thus, the Court concluded that a reasonable basis exists supporting TCEQ’s determination that Sierra Club’s members were not likely to be impacted by the facility and therefore were not affected persons.3 Id.

3

An example of why the information included in the responses to hearing requests should not be considered evidence appears in this Court’s list of the “evidence” in the record supporting TCEQ’s decision. The Court explains that there was evidence that neither Ms. Gardner nor Ms. Williams “work[s] or spend[s] any substantial time in or around the [proposed] facility.” Slip Op. at 14 (internal quotations omitted). In fact, there is no “evidence” in the record that proves this proposition. It is difficult to imagine what evidence might prove this “negative” proposition, when neither Ms. Gardner nor Ms. Williams offered testimony or was crossexamined . The quoted statement that neither works nor spends time in or around the proposed

This Court’s analysis—searching the record for some basis to support the agency’s denial of a hearing request—creates an insurmountable burden for hearing requestors seeking status as affected persons entitled to a contested case hearing. TCEQ’s application review process ensures that the administrative record will always include some information that supports issuing the requested license or permit and denying any hearing requests, particularly if, as this Court suggests, the reviewing court may assume that the Commission’s decision relied on all materials included in the record (a record that is developed by TCEQ). Thus, if a hearing requestor seeks to challenge TCEQ’s denial of its hearing request, via the court system, TCEQ will always be able to point to some information in the record that supports its decision. And because the hearing requestor is provided with no opportunity to develop evidence of its own (and no notice that it is required to present evidence of its own, refuting TCEQ staff’s and WCS’s assertions), the record is unlikely to include the requisite evidence necessary for a party

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