Global Companies LLC v. New York State Department of Environmental Conservation
155 A.D.3d 93
| N.Y. App. Div. | 2017Background
- Global Companies LLC operated a 63-acre petroleum storage/transfer facility in Albany and applied in June 2013 to modify its Title V air permit to expand crude oil storage and add gas-fired boilers.
- DEC issued a Notice of Complete Application (NOCA) in November 2013, designated itself SEQRA lead agency, and issued a negative declaration; an extended public comment period produced ~19,000 comments.
- The EPA questioned Global’s emissions calculations and new information and comments emerged during review, including changes to project emissions and incomplete modeling for hydrogen sulfide.
- In May 2015 DEC rescinded the NOCA and announced intent to rescind the negative SEQRA declaration, citing substantial new information and unreviewed project changes.
- Global sued under CPLR article 78 and for declaratory relief seeking (inter alia) an order compelling DEC to decide the permit and annulling the rescission; neighboring residents and environmental groups (Benton respondents) intervened and had a related proceeding.
- Supreme Court ordered DEC to decide the permit within 60 days and remanded; the Appellate Division modified that relief, holding DEC could lawfully rescind the NOCA and removing the 60-day mandate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether DEC had authority to rescind a NOCA | Global: NOCA, once issued, could not be rescinded or rescission was constrained | DEC: Has implied authority to rescind NOCA when new information or project changes make application incomplete | DEC has implied discretionary authority to rescind NOCA under governing statutes/regulations and federal guidance; rescission permissible |
| Whether DEC’s rescission was arbitrary and capricious | Global: Rescission was irrational and unsupported by record | DEC: Rescission based on substantial new information, unreviewed project changes, EPA concerns, incomplete modeling | Rescission was rational and supported by stated reasons; not arbitrary or capricious |
| Whether rescission/timing violated statutory 18‑month deadline for final action | Global: 18‑month clock started at NOCA and DEC cannot toll/avoid it by rescission | DEC: 18‑month deadline applies only to a completed application; rescission and tolling were lawful given incompleteness | Rescission was timely (issued on deadline) and tolled the 18‑month deadline because application became incomplete |
| Whether petitioner had right to mandamus compelling DEC to decide within 60 days | Global: DEC’s delay warranted mandamus to force final decision | DEC: No clear right because DEC properly rescinded NOCA and retains discretion to reassess application | Mandamus relief was improper; petitioner lacked clear right to 60‑day directive |
Key Cases Cited
- Klostermann v. Cuomo, 61 N.Y.2d 525 (clear right required for mandamus)
- Matter of Hamptons Hosp. & Med. Ctr. v. Moore, 52 N.Y.2d 88 (mandamus prerequisites)
- Matter of Sullivan County Harness Racing Assn. v. Glasser, 30 N.Y.2d 269 (agency may reconsider prior determinations when new information arises)
- Matter of Arnot-Ogden Med. Ctr. v. Chassin, 229 A.D.2d 833 (agency reconsideration principles)
- Matter of Concerned Citizens of Allegany County v. Zagata, 231 A.D.2d 851 (mere additional information insufficient to change NOCA status)
- Matter of Pier v. Board of Assessment Review of Town of Niskayuna, 209 A.D.2d 788 (standards for permissive intervention)
- Matter of Prestige Towing & Recovery, Inc. v. State of New York, 74 A.D.3d 1606 (arbitrary and capricious standard for agency action)
- Borst v. International Paper Co., 121 A.D.3d 1343 (intervention and joinder principles)
