UNITED COPPER INDUSTRIES, INC. аnd Texas Natural Resource Conservation Commission, Appellants, v. Joe GRISSOM, Appellee.
No. 03-99-00117-CV.
Court of Appeals of Texas, Austin.
May 18, 2000.
Rehearing Overruled June 15, 2000.
17 S.W.3d 797
Keith A. Courtney, Jenkens & Gilchrist, Austin, for appellee.
Before Justices JONES, KIDD and PATTERSON.
ON MOTION FOR REHEARING
MACK KIDD, Justice.
We withdraw our original opinion and judgment issued February 3, 2000, and substitute this one in its place.
This is a suit for judicial review of a Texas Natural Resource Conservation Commission (the “TNRCC” or “Commission“) order granting an air quality permit application submitted by United Copper Industries, Inc. (“United Copper“) and denying Joe Grissom‘s request for a preliminary adjudicative hearing on whether Grissom should be entitled to a contested-case hearing on his challenge to the issuance of thе permit in question. Upon judicial review of the decision, the district court reversed the Commission‘s order and remanded the cause to the Commission for a preliminary adjudicative hearing to provide Grissom an opportunity to present competent evidence in support of his request. United Copper and the Commission appeal the district court‘s judgment, citing three independent grounds for reversal. We will affirm.
BACKGROUND
In 1997, United Copper applied to the Commission for a permit to construct and operate two copper melting furnaces in Denton, Texas. See
Shortly thereafter, Grissom, who lives within two miles of the proposed facilities, sent a letter to the TNRCC requesting a hearing on United Copper‘s permit application.1 In his written hearing request, Grissom expressed his concern about the negative effects he аnticipated the facilities would have on his health and the health of his two sons, all of whom suffer from serious asthmatic conditions. In response to Grissom‘s letter, United Copper and the Commission‘s executive director filed written replies urging the Commission to deny Grissom‘s request for a hearing. See
The Commission‘s executive director, on the other hand, contended in his response that although Grissom was an affected person based on the factors set forth in the agency‘s rules, Grissom‘s request should nevertheless be denied solely on the ground that it was “unreasonable.” He argued that it was unreasonable because the uncontroverted evidence United Copper submitted with its application established that the emissions would probably not negatively affect Grissom, his family, or any other members of the public. Grissom did not reply to the responsеs filed by United Copper and the Commission‘s executive director, despite notice from the Commission that he was permitted to do so. Nor did Grissom ever submit any evidence in support of his request.
Apart from the hearing request itself, the only item filed in support of Grissom‘s request was a report issued by the Office of Public Interest Council (“OPIC“), a division of the Commission that represents the public‘s interest. Citing its concern for procedural fairness, OPIC recommended that the TNRCC grant Grissom‘s request. OPIC reasoned that if the Commission refused to grant the request, Grissom would be denied due process because he would be denied an opportunity to prove the merits of his casе on the basis of evidence that he had not been given a fair opportunity to present or refute.
The Commission gave Grissom and United Copper one month‘s notice of the public meeting scheduled to evaluate and act on Grissom‘s hearing request. The notice stated that Grissom was free to attend the meeting and might be called upon to answer any questions the Commission might have; however, the notice provided that this was to be a formal meeting
Grissom proceeded to file suit in district court, seeking judicial review of the Commission‘s decision.2 Grissom contended that, at the very least, he was entitled to a preliminary hearing where he would have an opportunity to offer competent evidence in support of his request. The TNRCC responded with a general denial, and United Copper intervened to protect its interest in the permit it had been granted. The district court ultimately agreed with Grissom and decided that the Commission erred in determining that the hearing request was unreasonable and not supported by competent evidence without first providing Grissom an opportunity to present his evidence at a preliminary adjudicative hearing. In its final judgment, the district court reversed the TNRCC‘s order and remanded the cause to the Commission for a preliminary hearing at which Grissom would have the opportunity to present competent evidence in support of his request.
United Copper and the Commission now appeal the district court‘s judgment, maintaining that the Commission properly denied the hearing request because: (1) Grissom did not havе standing as an “affected person” to request a contested-case hearing, (2) the hearing request was “unreasonable,” and (3) Grissom failed to present any competent evidence in support of his request.
STANDARD OF REVIEW
Grissom filed his request for a contested-case hearing in accordance with the Texas Clean Air Act. See
DISCUSSION
The issue presented in this appeal is quite narrow. Our review is limited to the confines of the district court‘s judgment granting Grissom a preliminary hearing to provide him an opportunity to offer competent evidence in support of his request. Contrary to what appellants suggest, the district court did not grant Grissom a contested-case hearing on the merits of his case against United Copper‘s application; rather, the district court merely ordered the Commission to provide Grissom a preliminary hearing where he would have a meaningful opportunity to offer competent evidence in support of his request. It is this narrow decision that we are called upon to review. We do not comment on the ultimate issue of whеther the Commission should grant Grissom‘s request for a contested-case hearing on the merits of his case against United Copper‘s permit application.
The TNRCC is charged with the duty of administering many of the laws designed to safeguard this state‘s environment and conserve its natural resources. This includes the crucial task of overseeing the regulatory protection of the State‘s air quality. See
The policy of this state and the purpose of this chapter are to safeguard the state‘s air resources from pollution by contrоlling or abating air pollution and emissions of air contaminants, consistent with the protection of public health, general welfare, and physical property, including the esthetic enjoyment of air resources by the public and the maintenance of adequate visibility.
In furtherance of this policy, the Act requires that any person intending to construct, modify, or operate a facility that may emit air contaminants first apply to the TNRCC for an air quality permit which must be granted before that person may construct or operate the facility. See
Here, United Copper gave the required notice, and Grissom timely responded with a written request for a hearing on the issue of whether the Commission should grant the permit. At the time Grissom submitted his request in 1998, one of the statutes governing the hearing process provided that “the commission or its dеlegate shall hold a hearing on the permit application or permit renewal application before granting the permit or renewal if a person who may be affected by the emissions . . . requests a hearing within the period set by commission rule.” Act of May 4, 1995, 74th Leg., R.S., ch. 149, § 2, 1995 Tex. Gen. Laws 996, 997 (
In its first point of error, United Copper argues that Grissom is not a person who would be affected by the proposed facility. An affected person is “one who hаs a personal justiciable interest related to a legal right, duty, privilege, power, or economic interest affected by the application.”
In support of its contention, United Copper specifically cites two of the six factors the TNRCC considers in dеtermining whether an individual is an affected person. See
Contrary to United Copper‘s contention, the modeling data3 provided to the Commission does not prove that Grissom and his family will not be affected. Rather, the data merely suggests that Grissom may not be affected to a sufficient degree to entitle him to prevail in a contested-case hearing on the merits of his case against United Copper‘s application. United Copper confuses the preliminary question of whether an individual has standing as an affected person to request a contested-case hearing with the ultimate question of whether that person will prеvail in a contested-case hearing on the merits. In essence, United Copper suggests that Grissom should be required to prove that he will prevail in a contested-case hearing just to show that he has the standing necessary to request such a hearing. We reject this argument here just as we did in Heat Energy. See 962 S.W.2d at 295.
In his hearing request, Grissom raised specific concerns about the possible negative impacts that the copper plant could have on his health and the health of his family. As stated, Grissom lives within two miles down-wind of the proposed facility, and he and his sons suffer from serious asthma. United Copper‘s own data indicates that the operations will result in increаsed levels of lead and copper at the site of Grissom‘s home and the elementary school one of his sons attends. Considering Grissom‘s unique health concerns and his close proximity to the proposed facility, we conclude that he is more likely than other members of the general public to be adversely affected by the facility. Although the parties dispute the severity of the impact that the emissions will have on Grissom and his family, it is clear that the Grissoms will be affected to some degree. As even the TNRCC‘s executive director concluded, Grissom and his family have a personal, justiciable interest affected by United Copper‘s аpplication, and this interest is different than that of the general public.4 Thus, Grissom is a person who
Having concluded that Grissom is an affected person, we next turn to the question of whether his request was reasonable and supported by competent evidence. Although affected persons generally are entitled to a hearing upon request, this right is qualified. In certain circumstances, a hearing request shall not be granted, even if submitted by “a person who may be affected“:
The Commission shall not hold a hearing if the basis of a request by a person who may be affected is determined to be unreasonable. Reasons for which a request for a hearing on a permit amendment, modification, or renewal shall be considered to be unreasonable include, but are not limited to, an amendment, modification, or renewal that would not result in an increase in allowable emissions and would not result in the emission of an air contaminant not previously emitted.
Act of May 4, 1995, 74th Leg., R.S., ch. 149, § 2, 1995 Tex. Gen. Laws 996, 997 (
Citing these two statutory provisions, United Copper and the Commission argue in their final two points of error that the Commission‘s decision to deny Grissom‘s request was proper because the hearing request was both unreasonable and not supported by competent evidence. We disagree. After carefully reviewing the facts, we are persuaded that the Commission‘s decision was unreasonable because it denied Grissom a meaningful opportunity to offer evidence in support of his request and a chance to refute the proof offered by United Copper.
It is undisputed that when Grissom submitted his request, he did not simultaneously offer any evidence in support of his request. Despite this apparent failure to satisfy the burden of offering competent evidence in support of his request, Grissom nevertheless argued—and the district court agreed—that at the very least the Commission should have granted him a preliminary hearing to provide him an opportunity to offer such evidence. Appellants counter that Grissom had a sufficient opportunity to offer evidence and that he simply failed to take advantage of this opportunity. They maintain that Grissom‘s failure to meet his burden of production resulted from his own mistake and, furthermore, that his request was unrea-
Although appellants’ argument appears persuasive on its surface, it ultimately fails because it erroneously presupposes that Grissom had a meaningful opportunity to present the necessary evidence. Furthermore, it disregards the confusing nature of the Commission‘s notices and the language used in the Commission‘s own rule gоverning hearing requests. See
First, we observe that in the public notice United Copper published following the submission of its application, Grissom was told that to request a hearing he must submit the following:
(1) your name (or for a group or association, an official representative), mailing address, daytime phone number, and fax number, if any; (2) the applicant‘s name and permit number; (3) the statement “I/we request a public hearing“; (4) a brief, sрecific statement of how and why emissions from the proposed facility would adversely affect you in any way not common to members of the general public; and (5) the location of your property relative to the proposed facility.
(Emphasis added.) This notice makes no reference to any evidentiary requirement. Likewise, in its written response to Grissom‘s request, the Commission never alluded to any need to offer evidence, although it acknowledged receiving the request and explained how it would be reviewed. Next, in a letter sent to Grissom and the other parties interested in United Copper‘s permit applicatiоn, the Commission stated that it would not permit any oral argument or public comment at its formal meeting and indicated that its decision to grant or deny the hearing request would be based on “the hearing request, written responses to the hearing request, any written replies to those responses, and any responses to questions.” Again, the Commission never indicated that its decision might depend upon whether Grissom submitted evidence in support of his request.
Finally, TNRCC‘s own administrative rule governing the submission of hearing requests does not require those requesting hearings to submit evidence with their requests; it merely establishes the deadline by which hearing requests must be received and restatеs the same requirements set out in the Commission‘s public notice, including the need to submit a “brief, but specific, written statement” explaining how the requestor will be affected in a manner not common to members of the general public. See
CONCLUSION
The Commission‘s decision to deny Grissom‘s request without first providing him an opportunity to present evidencе in support of his request, as well as a chance to rebut the evidence produced by United Copper, was unreasonable. Our holding, however, is a narrow one and is restricted to the facts of this case. We do not decide the issue of whether the Commission should ultimately grant Grissom a contested-case hearing on the merits or whether United Copper‘s permit application should be granted; those issues can only be decided after Grissom is provided a preliminary hearing where he will have a meaningful opportunity to offer his own evidence in support of his request, as well as the chance to rebut the evidence alrеady submitted by United Copper. Having overruled all of appellants’ points of error, we affirm the district court‘s judgment.
J. WOODFIN JONES, Justice, dissenting.
I respectfully dissent.
In this case, Grissom‘s right to a hearing on the permit request is premised on former section 382.056(d) of the Health and Safety Code, which in turn is qualified by the limitations found later in that same section and in former section 5.115(a) of the Water Code. See Act of May 4, 1995, 74th Leg., R.S., ch. 149, § 2, 1995 Tex. Gen. Laws 997 (
In addition to the statutory requirement that a hearing request be reasonable, the pre-1999 Water Code required that persons requesting a contested-case hearing offer competent evidence in support of the request. See Act of May 28, 1995, 74th Leg., R.S., ch. 882, § 1, 1995 Tex. Gen. Laws 4381 (
In addition to failing to offer any guidance on what constitutes a reasonable hearing request, the statute is silent as to what form of proceeding, if any, is necessary to make the preliminary determination of whether the statutory prerequisites for a hearing request are met. The Commission addressed this uncertainty by promulgating its own rules to apply in these circumstances. See
Although, as the majority points out, the TNRCC failed to indicate in its notice that his request needed to be supported by competent evidence, the Water Code as it read in 1995 plainly required that Grissom offer such evidence. Because all persons are charged with knowledge of the law, Grissom was charged with knowledge of this requirement, even in the absence of the Commission advising him of this. See Greater Houston Transp. Co. v. Phillips, 801 S.W.2d 523, 525 n. 3 (Tex. 1990). Furthermore, contrary to his claim, Grissom had sufficient opportunity to offer his own evidence in support of his request, as well as to respond to the challenges United Copper had lodged against his request. See
As the person requesting the hearing, Grissom—along with United Copper, OPIC, and the TNRCC director—was free to submit written comments, data, and other information to support his position that the hearing request should be granted. See
Furthermore, Grissom was free to attend the public meetings held for the pur-
In light of the clear legislative mandate that those requesting administrative hearings before the TNRCC support their requests with competent evidence, and in the absence of any constitutional, statutory, or regulatory provision requiring the Commission to hold a hearing to make this preliminary determination, I cannot agree that the Commission‘s decision to deny Grissom‘s request on this basis was invalid, arbitrary, or unreasonable. I would therefore sustain appellant‘s second issue, reverse the district court‘s judgment, and render judgment affirming the Commission‘s order.
J. WOODFIN JONES
JUSTICE
Notes
(1) determine that a hearing request does not meet the requirements of this subchapter, and act on the application;
(2) determine that a hearing request does not meet the requirements of this subchapter, and refer the applicatiоn to a public meeting to develop public comment before acting on the application;
(3) determine that a hearing request meets the requirements of this subchapter, and direct the chief clerk to refer the application to SOAH [State Office of Administrative Hearings] for a hearing; or
(4) direct the chief clerk to refer the hearing request to SOAH. The referral may specify that SOAH should prepare a recommendation on the sole question of whether the request meets the requirements of this subchapter. . . . If the commission refers the hearing request to SOAH it shall be processed as a contested case under the APA.
All four of the individuals expressed a personal justiciable interest affected by the application, specifically concerns relating to air pollution and exacerbated respiratory illnesses based upon the individuаls’ proximity to the proposed facility. These interests are protected by the Texas Clean Air Act, and are not common to members of the general public, as required by 30 [Tex. Admin. Code] § 55.29(a). . . . Accordingly, all four individuals requesting a hearing appear to meet the criteria for ‘affected person’ under § 55.29(c).
