Texas Commission on Environmental Quality v. Bonser-Lain
2014 Tex. App. LEXIS 7875
| Tex. App. | 2014Background
- A group of individuals (Appellees) petitioned the Texas Commission on Environmental Quality (TCEQ) under the APA to adopt rules limiting greenhouse-gas emissions; TCEQ denied the petition and issued a written order listing several independent bases for denial.
- Appellees sued under Tex. Water Code § 5.351 seeking judicial review of TCEQ’s denial; TCEQ filed a plea to the jurisdiction asserting sovereign immunity and that § 5.351 does not waive immunity for denials of rulemaking petitions.
- The district court denied TCEQ’s plea to the jurisdiction, reviewed the merits, and affirmed TCEQ’s discretionary decision not to proceed with rulemaking but expressly rejected some of TCEQ’s alternative legal grounds (public trust doctrine and CAA § 109 preemption).
- TCEQ appealed, arguing (1) the court lacked subject-matter jurisdiction because neither the APA nor § 5.351 waives sovereign immunity for denials of petitions for rulemaking, and (2) the district court’s alternative declarations were improper advisory opinions that should be vacated.
- The court of appeals considered (a) whether TCEQ had standing to appeal a judgment that on its face affirmed the agency, and (b) whether the trial court had subject-matter jurisdiction to hear the Appellees’ claims.
- The court of appeals concluded that (1) TCEQ had standing to appeal because the district court’s denial of the plea to the jurisdiction could have preclusive effect, and (2) neither the APA nor § 5.351 provides a clear, unambiguous waiver of sovereign immunity for review of denials of petitions for rulemaking; it therefore vacated the district court’s judgment and dismissed for lack of subject-matter jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether APA or § 5.351 waives sovereign immunity for judicial review of an agency’s denial of a petition for rulemaking | Appellees: § 5.351 authorizes review of a Commission act, so denial of petition is reviewable | TCEQ: APA is silent on review of denials; § 5.351 does not waive immunity for refusals to adopt rules | Held: No waiver — neither APA nor § 5.351 clearly authorizes review of a denial of a rulemaking petition; sovereign immunity bars suit |
| Whether the agency (TCEQ) has standing to appeal the district court’s denial of its plea to the jurisdiction despite the judgment affirming the agency | Appellees: The judgment affirmed TCEQ so TCEQ cannot complain | TCEQ: Denial of plea could have preclusive effect (collateral estoppel) regarding waiver of immunity; thus TCEQ’s interest is prejudiced | Held: TCEQ has standing to appeal because the jurisdictional ruling could be preclusive in future litigation |
| Whether the district court’s declarations rejecting TCEQ’s alternative legal grounds were proper (advisory opinion) | Appellees: Declarations were part of judgment resolving the petition | TCEQ: Declarations on issues not necessary to affirm denial were advisory and should be vacated | Held: Court did not reach merits because it dismissed for lack of jurisdiction; district court’s judgment vacated and case dismissed (declaratory rulings effectively vacated by dismissal) |
| Standard of review for plea to jurisdiction | Appellees: N/A (procedural) | TCEQ: N/A (procedural) | Held: Review de novo; pleadings and relevant evidence considered; sovereign immunity deprives court of subject-matter jurisdiction absent clear legislative waiver |
Key Cases Cited
- Texas Dep’t of Parks & Wildlife v. Miranda, 133 S.W.3d 217 (Tex. 2004) (standard for subject-matter jurisdiction review and effect of sovereign immunity)
- Texas Natural Res. Conservation Comm’n v. IT-Davy, 74 S.W.3d 849 (Tex. 2002) (waiver of immunity must be clear and unambiguous; scope of § 5.351)
- Hooks v. Texas Dep’t of Water Res., 611 S.W.2d 417 (Tex. 1981) (interpretation of “affected person” and justiciable interest under Water Code and APA)
- Houston Mun. Emps. Pension Sys. v. Ferrell, 248 S.W.3d 151 (Tex. 2007) (no judicial review absent statute or constitutional violation)
- Texas Ass’n of Bus. v. Texas Air Control Bd., 852 S.W.2d 440 (Tex. 1993) (subject-matter jurisdiction is essential and never presumed)