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

455 S.W.3d 228
Court of Appeals of Texas·Decided December 31, 2014·No. NO. 03-12-00335-CV·Published·Cited by 6 cases

Opinion

OPINION

Jeff Rose, Justice

We withdraw our opinion and judgment dated April 18, 2014, and substitute the following opinion and judgment in their place. Appellee Sierra Club’s motion for rehearing is denied.

Appellants the Texas Commission on Environmental Quality (TCEQ) and Waste Control Specialists, LLC (WCS) appeal from a district-court judgment that reversed a TCEQ order granting WCS a low-level radioactive waste disposal license. Sierra Club sought judicial review of TCEQ’s order on the grounds that TCEQ erred by issuing the license before WCS had title to the relevant property interests and by denying Sierra Club’s contested-case hearing request. The district court agreed with Sierra Club that it was error to deny the hearing request, reversed TCEQ’s order on that ground, and remanded the case for a contested-case hearing on the merits of WCS’s application. On appeal, TCEQ and WCS challenge the district court’s judgment, arguing that (1) TCEQ properly denied Sierra Club’s hearing request, and (2) the district court should not have allowed Sierra Club to supplement the administrative record. For the reasons explained below, we reverse the district court’s judgment and render judgment affirming TCEQ’s order.

*230 BACKGROUND

WCS is a waste-control company specializing in the treatment, storage, and disposal of radioactive, hazardous, and mixed waste. WCS holds licenses to dispose of industrial and hazardous waste and to process, store, and dispose of radioactive material at a 36-acre waste-disposal facility in Andrews County, Texas. WCS’s disposal facility, which is situated within a 14,900-acre former ranch that extends into Lea County, New Mexico, is about 25 feet east of the Texas — New Mexico border, five miles east of Eunice, New Mexico, and 30 miles west of Andrews, Texas. 1

In August 2004, WCS filed an application with TCEQ for a license to construct and operate two facilities on its ranch property for the near-surface land disposal of low-level radioactive waste. 2 See Tex. Health & Safety Code §§ 401.101 (requiring license for disposal of radioactive waste), .201 (directing TCEQ to regulate disposal of low-level radioactive materials), .202 (granting TCEQ licensing authority over disposal of low-level radioactive waste). The first of WCS’s proposed facilities will receive and dispose of commercially-generated waste from Texas and Vermont as well as other waste approved for importation to Texas by the Texas Low Level Radioactive Waste Disposal Compact Commission. 3 The second proposed facility will receive and dispose of low-level radioactive waste that is the responsibility of the federal government under the feder *231 al Low Level Radioactive Waste Policy Act and its amendments. See 42 U.S.C. § 2021b-j (provisions of federal act);' see also Tex. Health & Safety Code §§ 401.2005(4) (defining “federal facility waste”), .216 (granting TCEQ authority to license federal-facility waste disposal).

After declaring WCS’s application administratively complete in February 2005, TCEQ began its technical review of the application, including preparation of a written analysis of the facilities’ effect on the environment. See generally Tex. Health & Safety Code §§ 401.101-.119 (general provisions regarding licensing and registration), .2005-.251 (provisions specific to low-level radioactive waste disposal); 30 Tex. Admin. Code . §§ 336.701-.747 (TCEQ rules regarding low-level radioactive waste disposal licensing); 30 Tex. Admin. Code §§ 336.801-.825 (TCEQ rules regarding compact waste disposal facility application selection process). TCEQ retained the University of Texas Bureau of Economic Geology and Texas A & M University’s Department of Nuclear Engineering to assist with the environmental analysis. During the review, which took place over three years, TCEQ notified WCS of numerous problems and deficiencies with the application, and WCS addressed the deficiencies in various supplements to its original license application. TCEQ’s draft environmental analysis, which was completed in August 2008, included the following required information:

(1) an assessment of radiological and nonradiological effects of the activity on the public health;
(2) an assessment of any effect on a waterway or groundwater resulting from the activity;
(3) consideration of alternatives to the activities to be conducted under the license; and
(4) consideration of the long-term effects associated with activities, including decommissioning, decontamination, and reclamation impacts, including the management of low-level radioactive waste, to be conducted under the license.

Tex. Health & Safety Code § 401.113(c); see id. § 401.231 (contents of administratively complete application for low-level radioactive waste disposal license); 30 Tex. Admin. Code § 336.705 (TCEQ rule regarding contents of application for low-level radioactive waste application). 4 The environmental analysis concluded that WCS’s proposed facility was “adequate to protect the public health and safety in that [it] provides reasonable assurance that the general population will be protected from releases of radioactivity” as required by TCEQ regulations. See 30 Tex. Admin. Code §§ 336.1-.1317 (Radioactive Substances Rules).

Based on the technical review of WCS’s application, TCEQ’s Executive Director concluded that WCS’s final application met the relevant statutory and regulatory requirements. He then prepared a draft license that generally required WCS to construct and operate the landfill as described in its final application, but which also included additional license terms to address concerns raised during the technical review and environmental analysis. For example, to address potential groundwater intrusion, the draft license included a provision changing the boundary and raising the facility floor of one landfill to maintain an appropriate buffer zone of unsaturated soil. The draft license also in- *232 eluded a prohibition against receiving waste by rail because the application did not address the management of waste at railcar facilities. As a final example of modifications, the draft license required additional environmental monitoring and studies to confirm that site characteristics used in the models accurately depicted actual conditions.

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the Texas Commission on Environmental Quality and Waste Control Specialists, LLC v. Sierra Club, 455 S.W.3d 228 (Tex. Ct. App. 2014).

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