673 N.E.2d 959 | Ohio Ct. App. | 1996
Appellant Myer Senders appeals from the trial court's order affirming the order of appellee, the Petroleum Underground Storage Tank Release Compensation Board ("the board"), denying the appellant's eligibility to participate in the Financial Assurance Fund administered by the board and obtain compensation for cleaning up a release from appellant's underground storage tank ("UST"). R.C.
On July 11, 1989, R.C.
The board is required to issue a yearly certificate of Fund coverage to "any responsible person" (UST owners or operators) who has paid the annual assurance fees for his or her tanks and "demonstrated to the board financial responsibility in compliance with the rules adopted by the fire marshal under division (B) of section
Appellant was the owner of a UST at 15320 Miles Avenue in Cleveland, Ohio. He purchased the property in the mid-1970s with knowledge of the underground tank. The five-thousand-gallon tank was used by the previous owner to store gasoline to service a fleet of trucks. Appellant also used the tank to store gasoline for his vehicles in his remodeling business.
In 1979, appellant sold his remodeling business, but retained ownership of the Miles property and the UST. The purchaser of the remodeling business remained at the Miles address under lease from appellant and used the UST.
In August 1988, the new owner went into bankruptcy and abandoned the location. In 1988, appellant found that the tank still contained gasoline and he removed the dispenser cap from the tank to prevent vandalism. Appellant also began marketing the property.
Appellant took no action to close the tank, according to standards for abandoned tanks set forth in Ohio Adm. Code
In early 1991, appellant obtained bids from three private contractors to remove the tank. During this process, appellant was told that the tank contained gasoline. In August 1991, appellant, in preparation for selling the Miles property, registered the tank and on September 16, 1991 paid assurance fees which had been owed for the three previous program years (1989, 1990 and 1991). Appellant paid $150 for 1984 and 1990 and made a payment of $300 for 1991. The increased payment of $300 reduced appellant's deductible from $50,000 to $10,000.
Following the payment of fees, the tank was removed from the ground on October 24, 1991. At this time the tank had been out of service for at least three years. Appellant could not determine when the tank was last used. Upon removing the tank from the ground, petroleum contamination was found. A fire *202 marshal representative was present and directed the remediation. The cleanup was completed and appellant applied to the board to receive compensation from the Fund in the amount of $42,549.16.
On September 29, 1992, appellant's claim was denied by the board's director due to appellant's failure to answer questions regarding the "last in-service date" of the UST. Tanks with a "last in-service date" prior to 1989 are not insurable under the Fund. On April 15, 1993, pursuant to R.C.
On July 8, 1994, the director issued a second determination denying eligibility for the claim because the UST for which coverage was sought had been improperly abandoned in violation of State Fire Marshal rules and because Ohio Adm. Code
On August 10, 1994, a second report and recommendation was issued in which the hearing officer recommended that the board affirm the director's July 8, 1994 denial of the claim because of the improperly abandoned status of the UST on the contamination release date. On September 9, 1994, the ten-person board voted unanimously to affirm the July 8, 1994 denial.
On September 15, 1994, appellant appealed to the Cuyahoga County Common Pleas Court pursuant to R.C.
The appellant's sole assignment of error and its six subparts state as follows:
"I. The court of common pleas erred in affirming the board's order to deny Senders' Fund eligibility.
"A. Senders is a responsible person and has satisfied the conditions precedent to a determination of eligibility to receive reimbursement from the Fund.
"B. Senders met the requirements of R.C. §
"C. The board has no legal authority to determine violations of the state Fire Code.
"D. The state Fire Code does not prohibit the abandonment of USTs. *203
"E. The board's rule O.A.C. §
"F. The board's unofficial policy of denying fund eligibility to `improperly abandoned' USTs is unlawful and contrary to R.C. §
The standards of review in both the trial court and this court on an R.C.
"When reviewing an order of an administrative agency, a common pleas court acts in a `limited appellate capacity.'Univ. Hosp., Univ. of Cincinnati College of Medicine v. StateEmp. Relations Bd. (1992),
"An appellate court's review of the trial court's decision is even more limited and requires the appellate court `to determine only if the trial court has abused its discretion, i.e., being not merely an error of judgment, but perversity of will, passion, prejudice, partiality or moral delinquency.' Pons,
These standards apply as well to appeals involving USTs. SeePenske Truck Leasing Co. v. Petroleum Underground Storage TankRelease Comp. Bd. (Sept. 19, 1995), Franklin App. No. 95APE02-226, unreported, at 4-5, 1995 WL 559956.
The board denied coverage to appellant because his tank was abandoned in violation of the State Fire Marshal rule found at Ohio Adm. Code
"(A) As a prerequisite to determining fund payment of or reimbursement for corrective action costs for an accidental release of petroleum, the director of the *204 fund will establish eligibility for payment of or reimbursement for such costs on the basis of:
"* * *
"(3) Verification to the director that a responsible person is in compliance with state or federal underground storage tank regulations relating to reports of any known or suspected releases; tank standards and orders of the fire marshal; or, if the responsible person is not in compliance with the state or federal underground storage tank regulations, a showing by the responsible person to the satisfaction of the director of the fund, the presence of unique and special circumstances which warrant a finding of eligibility."
Appellant argues that Ohio Adm. Code
The validity of the board's administrative rule governing eligibility for Fund reimbursement draws its authority from R.C.
"The board may:
"* * *
"(2) In accordance with Chapter 119. of the Revised Code, adopt, amend, and rescind such other rules as are necessary or appropriate to implement and administer sections
The General Assembly vested the board with broad power to promulgate rules necessary to administer this complex statute. It directed that the board's rules be consistent with Section 6991b, Title 42, U.S. Code, federal legislation which sets nationwide standards for the environmentally responsible ownership and operation of USTs. The federal legislation allows each state to submit and operate its own UST program provided that the state's standards are "no less stringent" than federal standards applicable in the absence of state action. See Section 6991c(b)(1). The State Fire Marshal's tank standards have counterparts in federal regulations adopted under Section 6991b, Title 42, U.S.Code. This allows the state to operate its tank program in place of the federal program. *205
The State Fire Marshal is authorized to issue citations and orders to enforce such rules and pursue penalties up to $10,000 per day, per violation. R.C.
As a prerequisite to Fund eligibility, R.C.
Appellant argues that the validity of a certificate of coverage should not depend upon the status of the tank for which it is issued. Under appellant's theory, a valid certificate is one which merely states the amount of coverage and time period for coverage and is possessed by a responsible person who has paid any supplemental fees assessed by the Fund. The net effect of appellant's argument is that he has a certificate of coverage, and therefore, it must be valid. We do not find this argument persuasive.
The result which appellant urges this court to adopt in this case would create a situation where the failure of the fire marshal to determine that a tank was improperly abandoned would estop the board from denying fund eligibility. This result does not square with the general rule that principles of estoppel do not apply against the state or its agencies in the exercise of a governmental function. Ohio State Bd. of Pharmacy v. Frantz
(1990),
Statutes covering the same subject matter should be readin pari materia to produce a consistent and reasonable result.Ohio v. Leichty (1993),
There are other sections of the statutes which are well served by the board's construction. R.C.
"The board shall issue a certificate of coverage to any responsible person who has complied with both of the following:
"(a) Paid the fee assessed under [R.C.
The fee assessed under R.C.
The board argues that a reading of the statutes in parimateria with the rules leads to the conclusion that tanks out of use for more than one year must be removed or properly closed in place (Ohio Adm. Code
Appellant also asserts that if the General Assembly desired to exclude owners of "improperly abandoned tanks from paying assurance fees, then it could easily have changed the requirements of R.C.
Appellant's position unfortunately would condone the violation of state law. However, the Supreme Court has taken the position that legislation within R.C. Title 37 should be given a liberal construction to achieve the objectives of protecting the health, safety and welfare of people in this state even when a liberal construction will result in penal sanctions against a private individual. Pizza v. Sunset Fireworks Co., Inc. (1986),
Appellant's own testimony revealed that his tank had been out of use for more than a year without being properly closed in accordance with State Fire Marshal rules and that it was therefore improperly abandoned.
The version of Ohio Adm. Code
"(9) Abandonment of tanks: A permit shall be obtained from the fire official to remove, abandon, place temporarily out of service or otherwise dispose of any underground storage tank containing flammable or combustible liquids. When such a permit is not required from the local fire official the permit shall be obtained from the fire marshal.
"* * *
"(c) Any tank which has been abandoned for a period of one year shall be removed from the property in a manner approved by the fire official and the site restored in an approved manner. When the fire official determines that the removal of the tank is not necessary, he may permit the tank to be abandoned in place in accordance with API 1604 listed in rule
"(i) Remove all flammable or combustible liquid from the tank and all connecting lines.
"(ii) Disconnect the suction, inlet, gauge, and vent lines. *208
"(iii) Fill the tank completely with an inert solid material. Cap remaining underground piping.
"(iv) Keep a record of tank size, location, date of abandonment, and method used for placing the abandoned tank in a safe condition."
The record reveals that in 1988 appellant removed the dispenser cap from the tank and it remained disabled and out of use thereafter. Appellant conceded at the hearing that the tank contained over one hundred gallons of gasoline. Nothing was done to properly secure the tank under the provisions of Ohio Adm. Code
Ohio Adm. Code
"Any tank not used for a period of ninety days shall be properly safeguarded or removed in a manner approved by the fire official."
The word "abandoned" is not defined in Ohio Adm. Code 1301:7-7-2, but, given the time-related requirement within subsection (b) of Ohio Adm. Code
In one case, Hamilton v. Harville (1989),
Under the Hamilton theory, a tank may remain in the ground indefinitely without the applicable safeguards of Ohio Adm. Code
We are not persuaded by Hamilton, which was a criminal case dealing with a municipal fire code. Instead, we construe the definition of the word "abandoned," within the context of Ohio Adm. Code
"`The primary purpose of the judiciary in the interpretation or construction of statutes is to * * * ascertain the legislative will.' Henry v. Central Natl. Bank (1968),
Our review of the decision of the board is limited. In an administrative appeal, pursuant to R.C.
Furthermore, a reviewing court must give deference to an administrative agency's interpretation of its own rules and regulations where the interpretation is consistent with the statutory law and the plain language of the rules. State ex rel.Celebrezze v. Natl. Lime Stone Co. (1994),
Upon a review of this rule, we conclude that appellant's duty to close the tank, per Ohio Adm. Code
Appellant cites provisions of Ohio Adm. Code
Ohio Adm. Code
Like Ohio Adm. Code
Ohio Adm. Code
Both Ohio Adm. Code
Appellant's failure to follow the prescribed procedures led the board to the conclusion that he was not eligible to participate in the Fund. We find no mistake of law or abuse of discretion in the board's ruling or the trial court's affirmance thereof.
Appellant's sole assignment of error is overruled.
Judgment affirmed.
SPELLACY, C.J., and PATRICIA ANN BLACKMON, J., concur.