Texas Propane Gas Association v. the City of Houston

CourtTexas Supreme Court
DecidedApril 16, 2021
Docket19-0767
StatusPublished

This text of Texas Propane Gas Association v. the City of Houston (Texas Propane Gas Association v. the City of Houston) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Texas Propane Gas Association v. the City of Houston, (Tex. 2021).

Opinion

IN THE SUPREME COURT OF TEXAS ════════════ NO. 19-0767 ════════════

TEXAS PROPANE GAS ASSOCIATION, PETITIONER, v.

THE CITY OF HOUSTON, RESPONDENT ════════════════════════════════════════════════════ ON PETITION FOR REVIEW FROM THE COURT OF APPEALS FOR THE THIRD DISTRICT OF TEXAS ════════════════════════════════════════════════════

Argued October 29, 2020

CHIEF JUSTICE HECHT delivered the opinion of the Court, in which JUSTICE GUZMAN, JUSTICE LEHRMANN, JUSTICE DEVINE, JUSTICE BUSBY, JUSTICE BLAND, and JUSTICE HUDDLE joined.

JUSTICE BLACKLOCK filed an opinion concurring in part and dissenting in part, in which JUSTICE BOYD joined.

Texas comprehensively regulates the liquefied petroleum gas (LPG) 1 industry through the

LPG Code2 and agency regulations3 that “preempt and supersede any [city] ordinance”. 4 The Texas

1 Liquefied petroleum gas is a mixture of volatile hydrocarbons, including butane and propane. When in a pressurized tank, LPG is in liquid state and can easily be stored and transported. When released at room temperature, it is gaseous and highly flammable. 2 See TEX. NAT. RES. CODE ch. 113. 3 See 16 TEX. ADMIN. CODE ch. 9. 4 TEX. NAT. RES. CODE § 113.054. Propane Gas Association (TPGA)5 has sued the City of Houston for a declaratory judgment that

its ordinances regulating the LPG industry, to include imposing criminal fines for violations, are

preempted by state law. Two jurisdictional challenges the City has made to the suit are the only

issues before us in this interlocutory appeal. First, the City argues that civil courts lack subject-

matter jurisdiction to adjudicate TPGA’s preemption claim because the local regulations it

challenges carry criminal penalties. We conclude that TPGA’s claim is not a “criminal law matter”

that must be raised in defense to prosecution. Second, the City argues that TPGA cannot challenge

the City’s LPG regulations “en masse” but only those that have injured at least one of its members.

Although the City frames this argument as a challenge to TPGA’s standing, we conclude that it is

really a merits challenge and that TPGA has demonstrated standing to bring the singular

preemption claim it has pleaded. We reverse the judgment of the court of appeals 6 and remand the

case to the trial court for further proceedings.

I

The State has regulated the LPG industry for more than 60 years. In 1959, the Legislature

enacted the LPG Code,7 which directed the Railroad Commission to “promulgate and

adopt . . . adequate rules, regulations, and/or standards pertaining to any and all aspects or phases

5 TPGA is a trade association whose 300 members statewide include “producers, wholesalers, propane retailers, manufacturers, fabricators, distributors, service providers, engineers, plumbers, RV parks, associations, and others involved in the propane industry.” Who are Our Members, TPGA, https://www.txpropane.com/why-join (last visited Apr. 4, 2021). Its purpose is “to help the propane industry navigate complex rules, regulations, and codes” and to serve “as the voice for the propane industry in Texas.” Homepage, TPGA, https://www.txpropane.com/ (last visited Apr. 5, 2021). 6 608 S.W.3d 27, 39 (Tex. App.—Austin 2019). 7 The Liquefied Petroleum Gas Code, 56th Leg., R.S., ch. 382, 1959 Tex. Gen. Laws 844, 845 (codified as amended at TEX. NAT. RES. CODE ch. 113).

2 of the LPG industry . . . which will protect or tend to protect the health, welfare, and safety of the

general public.”8 In response, the Commission has adopted comprehensive statewide LPG

regulations9 that the parties refer to as the LP-Gas Safety Rules. The LP-Gas Safety Rules prescribe

various monetary penalties for violations.10 In 2011, the Legislature added Section 113.054 to the

LPG Code:

The rules and standards promulgated and adopted by the commission under Section 113.051 preempt and supersede any ordinance, order, or rule adopted by a political subdivision of this state relating to any aspect or phase of the liquefied petroleum gas industry. A political subdivision may petition the commission’s executive director for permission to promulgate more restrictive rules and standards only if the political subdivision can prove that the more restrictive rules and standards enhance public safety.11

Four years later, the City adopted three ordinances amending its Fire Code, 12 which is

modeled on the 2012 International Fire Code. The amended Code now includes Chapter 61,

entitled “Liquefied Petroleum Gases”.13 This was the City’s first venture into regulating activities

8 Id. § 3.A. This provision has since been recodified as Section 113.051, whose language is substantially the same: “[T]he commission shall promulgate and adopt rules or standards or both relating to any and all aspects or phases of the LPG industry that will protect or tend to protect the health, welfare, and safety of the general public.” Exceptions to this provision in the 1959 enactment are now listed in Section 113.003. One exception is that “[n]one of the [Code’s provisions] apply to . . . the production, refining, or manufacture of LPG”. T EX. NAT. RES. CODE § 113.003(a)(1). 9 See 16 TEX. ADMIN. CODE ch. 9. 10 Id. § 9.15. The provision sets out lengthy, detailed schedules of penalties for hundreds of violations. 11 TEX. NAT. RES. CODE § 113.054. 12 These ordinances, Nos. 2015-1108, 2015-1289, and 2015-1316, took effect in early 2016. 13 Hous., Tex., City of Houston Fire Code ch. 61 (2015).

3 involving LPG. The Code imposes monetary penalties for a violation that range from $500 to

$2,000 per day.14

TPGA brought a declaratory judgment action against the City of Houston and several other

cities,15 asserting the defendants’ local LPG regulations have not been approved by the

Commissioner’s executive director and, under Section 113.054, are therefore preempted by the

LP-Gas Safety Rules. In response, all defendants but the City either adopted the LP-Gas Safety

Rules or settled with TPGA. Only the City contested TPGA’s assertions. TPGA asserts that under

Section 113.054, the LP-Gas Safety Rules “preempt and supersede any ordinance, order, or rule

adopted by a political subdivision of this state relating to any aspect or phase of the liquefied

petroleum gas industry” (emphasis in original), whether in Chapter 61, other provisions of the Fire

Code, or other City regulations, such as those in its Building Code. “Alternatively,” TPGA asserts

that the LP-Gas Safety Rules preempt the City’s regulations that are more restrictive than the LP-

Gas Safety Rules.16

14 For example, Section [A] 109.4 provides that: When in this code an act is prohibited or is made or declared to be unlawful or an offense or misdemeanor, or wherever in this code the doing of any act is required or the failure to do any act is declared to be unlawful, and no specific penalty is provided therefor, the violation of any such provision of this code shall be punished by a fine of not less than $500.00, nor more than $2000.00; provided, however, that no penalty shall be greater or lesser than the penalty provided for the same offense under the laws of the state. Each day any violation of this code shall continue shall constitute a separate offense.

Id. § 109.4. 15 Other defendants were the Cities of Abilene, Bonham, El Paso, Greenville, Lake Jackson, Lubbock, Lucas, Mesquite, Mission, Montgomery, Sherman, West Columbia, and Woodway. 16 TPGA’s Fourth Amended Petition states:

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