TXI Operations LP v. Texas Commission on Environmental Quality

CourtCourt of Appeals of Texas
DecidedApril 7, 2023
Docket03-21-00408-CV
StatusPublished

This text of TXI Operations LP v. Texas Commission on Environmental Quality (TXI Operations LP v. Texas Commission on Environmental Quality) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TXI Operations LP v. Texas Commission on Environmental Quality, (Tex. Ct. App. 2023).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-21-00408-CV

TXI Operations LP, Appellant

v.

Texas Commission on Environmental Quality, Appellee

FROM THE 126TH DISTRICT COURT OF TRAVIS COUNTY NO. D-1-GN-19-008263, THE HONORABLE JAN SOIFER, JUDGE PRESIDING

OPINION

TXI Operations LP appeals from a judgment affirming the denial of its

application for an air-quality permit by the Texas Commission on Environmental Quality

(Commission). TXI argues that the decision is not supported by substantial evidence and, in the

alternative, that the Commission violated TXI’s due process rights. We affirm.

BACKGROUND

The Commission administers the Texas Clean Air Act (TCAA), which establishes

a regulatory framework “to safeguard the state’s air resources from pollution by controlling or

abating air pollution and emissions of air contaminants.” Tex. Health & Safety Code

§ 382.002(a); see id. § 382.011(a)(1) (making Commission responsible for administering

TCAA). The TCAA authorizes the Commission to issue permits “to construct a new facility or

modify an existing facility that may emit air contaminants.” Id. § 382.051(a)(1). Before beginning work, “the person planning the construction or modification must obtain a permit or

permit amendment from the commission.” Id. § 382.0518(a). There are several available

permitting mechanisms, including standard permits. The TCAA authorizes the Commission to

identify similar types of air-contaminant emitting facilities and issue a standard permit applicable

to all facilities in that category. See generally id. § 382.05195 (laying out specific requirements

for standard permits).

In 2000, the Commission promulgated a standard permit for small concrete batch

plants that produce no more than 300 cubic yards of concrete mix per hour. 1 The “regular”

standard permit must contain enforceable emission limits and require use of the best available

control technology. See id. §§ 382.05195(a)(3), .0518(b). A person affected by the emissions

from the facility may request a contested-case hearing. See id. §§ 382.058(a), .056(b)(5).

However, “only those persons actually residing in a permanent residence within 440 yards of the

proposed plant may request a hearing under Section 382.056 as a person who may be affected.”

Id. § 382.058(c).

The legislature subsequently required the Commission to issue a new type of

standard permit—one with enhanced environmental requirements and a streamlined public

participation process. See generally id. §§ 382.05198 (enumerating nineteen requirements

applicant must meet), .05199 (pertaining to public notice and participation). One of the

requirements is that “the central baghouse [of the facility] must be located at least 440 yards

from any building used as a single or multifamily residence, school, or place of worship at the

time the application to use the permit is filed with the commission[.]” See id.

1 The Commission explains that “[c]oncrete batch plants prepare concrete mix by adding measured amounts of sand, cement, and gravel stored in on-site silos and stockpiles to a mixing drum.” 2 § 382.05198(a)(19). The Commission must conduct a public hearing on the application in the

county where the plant is to be located. See id. § 382.05199(b)–(g). Any person may submit

oral or written comments, but a contested-case hearing is not available. Id. § 382.05199(f). No

later than thirty-five days after the date of the hearing, “the executive director shall approve or

deny the application for authorization to use the standard permit. The executive director shall

base the decision on whether the application meets the requirements of Section 382.05198.” Id.

“If the executive director denies the application, the executive director shall state the reasons for

the denial and any modifications to the application that are necessary for the proposed plant to

qualify for the authorization.” Id. Following the legislative directive, the Commission

promulgated the Enhanced Controls Standards Permit (enhanced standard permit) in 2004.

In June of 2019, TXI applied for an enhanced standard permit for a concrete batch

facility it intended to build near Farmersville. The Commission declared the application

administratively complete in August 2019, and Commission staff held the public hearing on

October 14, 2019. Nicholas Nopp, who owns land adjacent to the site (the Nopp Property),

provided oral and written comments. In his oral comment, Nopp stated that he and his family

live on the northern side of the Nopp Property and that his parents live in a structure on the

southern end that is within the 440-yard setback. Nopp submitted an affidavit stating that the

two structures share a common water source, and that each have their own septic system and

electric meter. Both “buildings contain one or more bedrooms, bathrooms, living areas, and a

kitchen.” Even though Nopp’s “parents are retired and they travel often in their motorcoach, the

Nopp Property is their permanent residence.” It is the “address where they receive all their mail”

and is listed as their permanent address on their driver’s licenses, voter registration cards, and

3 medical records. The Commission staff member presiding over the hearing accepted

the affidavit.

Three days later, a Commission investigator visited the site to determine whether

any of the structures within the setback were used as a residence. She observed in her report that

the structure Nopp asserted was his parent’s residence “appears to be a commercial building” and

that “none of the three structures appear from the exterior to be a single or multifamily residence,

school, or place of worship.” However, there was “no one at any of the three structures to verify

the use of the structure.”

The Executive Director rejected TXI’s application by letter dated

October 29, 2019. The letter stated in pertinent part, “An affidavit was submitted as comment

during the public hearing indicating a permanent residence is located within 440 yards of the

central baghouse. Therefore, the application is denied.” In November 2019, TXI filed a motion

to overturn the Executive Director’s decision. See generally 30 Tex. Admin. Code § 50.139

(2023) (Tex. Comm’n on Env’t Quality, Motion to Overturn Executive Director’s Decision).

TXI argued that the affidavit fails to establish that there is a residence within the 440-yard

setback. In the alternative, TXI argued that several allegations in the affidavit were false and

attached the Nopp Affidavit, an application for a septic system permit signed by Nopp, a septic

system certification signed by Nopp, and photographs of the site. The Commission requested

responses from the Executive Director and the Office of Public Interest Counsel. Both submitted

briefing arguing that motion-to-overturn procedure does not apply to the Executive Director’s

decision on an application for any standard air quality permit. The Commission took no action

on the motion, and it was denied by operation of law after forty-five days. See id. § 50.139(f)(1).

4 TXI sought judicial review in Travis County District Court. See Tex. Health &

Safety Code. § 382.032(a) (providing that party affected by decision may appeal by filing

petition for review in Travis County district court). The district court affirmed, and this

appeal followed.

LEGAL STANDARDS

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TXI Operations LP v. Texas Commission on Environmental Quality, Counsel Stack Legal Research, https://law.counselstack.com/opinion/txi-operations-lp-v-texas-commission-on-environmental-quality-texapp-2023.