# Texas Commission on Environmental Quality v. Exxon Mobil Corporation ExxonMobil Oil Corporation Pennzoil-Quaker State Company and Shell Oil Company

> Texas Court of Appeals, 3rd District (Austin) · March 2, 2015

URL: https://www.frixlaw.com/law-library/cases/4051463

## Case

- **Court:** Texas Court of Appeals, 3rd District (Austin)
- **Decided:** March 2, 2015
- **Precedential status:** Published
- **Opinion:** Opinion
- **Cited by:** 0 later opinions in the Frix Law Library

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## Opinion text

ACCEPTED
03-14-00667-CV
4324209
THIRD COURT OF APPEALS
AUSTIN, TEXAS
3/2/2015 8:23:31 AM
JEFFREY D. KYLE
CLERK
No. 03-14-00667-CV

FILED IN
IN THE 3rd COURT OF APPEALS
AUSTIN, TEXAS
3/2/2015 8:23:31 AM
THIRD COURT OF APPEALS JEFFREY D. KYLE
Clerk

AT AUSTIN

TEXAS COMMISSION ON ENVIRONMENTAL QUALITY,
Appellant,
v.
EXXON MOBIL CORPORATION, EXXONMOBIL OIL CORPORATION,
PENNZOIL-QUAKER STATE COMPANY AND SHELL OIL COMPANY,
Appellees.

Appealed from the 345th Judicial District Court of
Travis County, Texas

APPELLANT’S REPLY BRIEF

KEN PAXTON JON NIERMANN
Attorney General of Texas Chief, Environmental
CHARLES E. ROY Protection Division
First Assistant Attorney THOMAS H. EDWARDS
General Lead Counsel
JAMES E. DAVIS Assistant Attorney General
Deputy Attorney General for Tex. Bar No. 06461800
Civil Litigation Thomas.Edwards@TexasAttorney
General.gov
(cont’d)

APPELLANT REQUESTS ORAL ARGUMENT
CRAIG J. PRITZLAFF
Assistant Attorney General
Tex. Bar No. 24046658
Craig.Pritzlaff@TexasAttorney
General.gov

LINDA SECORD
Assistant Attorney General
Tex. Bar No. 17973400
Linda.Secord@TexasAttorney
General.gov

Office of the Attorney General
Environmental Protection
Division
P.O. Box 12548, Capitol Station
Austin, Texas 78711-2548
Tel: (512) 463-2012
Fax: (512) 320-0911

ATTORNEYS FOR APPELLANT,
TEXAS COMMISSION ON
ENVIRONMENTAL QUALITY

-ii-
TABLE OF CONTENTS

INDEX OF AUTHORITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -vi-

ARGUMENT AND AUTHORITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

I. STATEMENTS OF FACTS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
A. Appellant’s Statement of Facts is not Controverted. . . . . . . . . . . . . 1
B. Appellees’ Statement of Facts Focuses on Irrelevancies. . . . . . . . . . 1

II. REPLY TO APPELLEES’ SUMMARY OF THE ARGUMENT.. . . . . . . . 3

III. REPLY TO APPELLEES’ STATEMENT OF JURISDICTION. . . . . . . . . 3

IV. REPLY CONCERNING ISSUE ONE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
A. The plain language of § 361.322 limits that section to appeals
of § 361.272 orders.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
B. The language and structure of the SWDA create separate
orders and separate appeals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1. The current language of the statute correctly reflects the
intent of the Legislature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2. The pre-codification statutory history shows separate
orders and separate appeals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
C. Cross-references between subchapters do not merge the
ordering sections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
1. Section 361.188(b) merely incorporates provisions from
other subchapters into § 361.188 orders. . . . . . . . . . . . . . . . . . . . . 11
2. Section 361.322(e) does not merge the orders. . . . . . . . . . . . . . . . . 11
D. The term “person affected” does not limit § 361.321 to permit
appeals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1. The definition of “person affected” is broad enough to
cover persons named in Superfund orders. . . . . . . . . . . . . . . . . . . 13

-iii-
2. Under Appellees’ interpretation, there might be no appeal
for § 361.188 orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3. Under Appellees’ interpretation, only permit matters and
§ 361.272 orders could be appealed. . . . . . . . . . . . . . . . . . . . . . . . . 15
E. Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

V. REPLY CONCERNING ISSUE TWO.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
A. The content of the Order shows that it was issued under
Subchapter F.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
B. Contrary statements did not change the essential nature of the
Order. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
C. The State’s prior pleadings did not waive, agree to, or confer
jurisdiction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
1. The State’s pleadings did not create waivers of sovereign
immunity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2. Prior judgments and motions did not create waivers of
sovereign immunity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3. The State did not seek to obtain the advantages of a
§ 361.272 order by saying that it issued the Order under
both sections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
D. Section 361.322(e) does not merge § 361.188 and § 361.272
orders.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
E. Reviewing this Order under § 361.322 would make
Subchapter F redundant.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
F. The Order was properly issued under § 361.188. . . . . . . . . . . . . . . 28
G. Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

VI. REPLY CONCERNING ISSUE THREE. . . . . . . . . . . . . . . . . . . . . . . . . . . 29
A. The constitutionality of § 361.322 is not at issue. . . . . . . . . . . . . . . 31
1. Tex. Gov’t Code § 2001.174 restates existing law. . . . . . . . . . . . . 31

-iv-
2.
The Legislature’s decision to allow the review of this
§ 361.188 order under the “invalid, arbitrary or
unreasonable” standard is consistent with the emerging
law in this area. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
B. The Texas Supreme Court’s decision in City of Waco is
pertinent to this SWDA appeal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
1. City of Waco did not merely make a “threshhold
determination”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
C. The “invalid, arbitrary or unreasonable” standard of
§ 361.321(e) equates to the standard of Tex. Gov’t Code
§ 2001.174. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
1. Tex. Gov’t Code § 2001.174 was intended to be a
restatement of the law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
2. Review under the substantial evidence standard does not
require a contested case hearing.. . . . . . . . . . . . . . . . . . . . . . . . . . . 40

VII. CONCLUSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

VIII. PRAYER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

CERTIFICATE OF COMPLIANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

CERTIFICATE OF SERVICE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

APPENDIX

-v-
INDEX OF AUTHORITIES

CASES

Berry v. Tex. Democratic Party, 449 S.W.3d 633 (Tex. App.—Austin 2014,
no pet. h.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 33

City of Waco v. Tex. Comm’n on Envtl. Quality, 346 S.W.3d 781 (Tex.
App.—Austin 2011), rev’d, 413 S.W.3d 409 (Tex. 2013).. . . . . . . 19, 34, 40

Commercial Life Ins. Co. v. Tex. State Bd. of Ins., 808 S.W.2d 552 (Tex.
App.—Austin 1991, writ denied). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Comptroller v. Landsfeld, 352 S.W.3d 171 (Tex. App.—Fort Worth 2011,
pet. denied). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Fed. Sign v. Tex. S. Univ., 951 S.W.2d 401 (Tex. 1997). . . . . . . . . . . . . . . . . . . 23

G.E. Am. Commc’n v. Galveston Cent. Appraisal Dist., 979 S.W.2d 761
(Tex. App.—Houston [14th Dist.] 1998, no pet.). . . . . . . . . . . . . . . . . . . 41

Gerst v. Nixon, 411 S.W.2d 350 (Tex.1966). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Gilder v. Meno, 926 S.W.2d 357 (Tex. App.—Austin 1996, writ denied).. . . 41

Hosner v. DeYoung, 1 Tex. 764 (1847). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Macias v. Rylander, 995 S.W.2d 829 (Tex. App.—Austin 1999, no pet.). . . . 32

McLane Co., Inc. v. Strayhorn, 148 S.W.3d 644 (Tex. App.—Austin 2004,
pet. denied). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

-vi-
Metzger v. Metzger, No. 01-04-00893-CV, 2007 WL 1633445 (Tex.
App.—Houston [1st Dist.] 2007, pet. denied) (mem. op.). . . . . . . . . . . 22

Mid-Century Ins. Co. of Tex. v. Kidd, 997 S.W.2d 265 (Tex. 1999). . . . . . . . . . . 6

Prairie View A&M Univ. v. Chatha, 381 S.W.3d 500 (Tex. 2012). . . . . . . . . . . 33

Ramirez v. Tex. State Bd. of Med. Exam’rs, 927 S.W.2d 770 (Tex. App.—
Austin 1996, no writ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40, 41

S. Canal Co. v. State Bd. of Water Eng’rs, 318 S.W.2d 619 (Tex. 1958)). . . . . . 34

Saudi v. Brieven, 176 S.W.3d 108 (Tex. App.—Houston [1st Dist.] 2004,
pet. denied). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Sierra Club v. Tex. Comm’n on Envtl. Quality, No. 03–11–00102–CV, 2014
WL 7463875 (Tex. App.—Austin Dec. 30, 2014, no pet. h.). . . . . . . . . . 38

Smith v. Houston Chem. Servs., Inc., 872 S.W.2d 252 (Tex. App.—Austin
1994, writ denied). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42, 43

Tex. Ass’n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440 (Tex. 1993). . . . . . 15

Tex. Comm’n on Envtl. Quality v. City of Waco, 413 S.W.3d 409 (Tex.
2013). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34-39, 41

Tex. Comm’n on Envtl. Quality v. Kelsoe, 286 S.W.3d 91 (Tex. App.—
Austin 2009, pet. denied). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42, 43

Tex. Comm’n on Envtl. Quality v. Sierra Club, No. 03-12-00335-CV, 2014
WL 7464085 (Tex. App.—Austin Dec. 30, 2014, no pet. h.). . . . . . . 36-38

-vii-
Tex. Dep’t of Ins. v. State Farm Lloyds, 260 S.W.3d 233 (Tex. App.—
Austin 2008, no pet.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Tex. Natural Res. Conserv. Comm’n v. IT-Davy, 74 S.W.3d 849 (Tex. 2002)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Tex. Water Comm'n v. Lindsey, 855 S.W.2d 750 (Tex. App.—Beaumont
1993, writ denied). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Tooke v. City of Mexia, 197 S.W.3d 325 (Tex. 2006). . . . . . . . . . . . . . . . . . . . . . 33

Tourneau Houston, Inc. v. Harris Cnty. Appraisal Dist., 24 S.W.3d 907
(Tex. App.—Houston [1st Dist.] 2000, no pet.. . . . . . . . . . . . . . . . . . . . . 22

United Copper Indus., Inc. v. Grissom, 17 S.W.3d 797 (Tex. App.—Austin
2000, pet. dism’d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

United Servs. Auto. Ass’n v. Brite, 215 S.W.3d 400 (Tex. 2007). . . . . . . . . . . . . 6

Van Indep. Sch. Dist. v. McCarty, 165 S.W.3d 351 (Tex. 2005). . . . . . . . . . . . . 21

STATUTES

Act of June 6, 1990, 71st Leg., 6th C.S., ch. 10, art. 2, § 29, 1990 Tex. Gen.
Laws 47, 66-80 (amended 1997) (current version at Tex. Health &
Safety Code §§ 361.181-.202). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Act of May 18, 1989, 71st Leg., R.S., ch. 678, § 1, 1989 Tex. Gen. Laws
2230, 2616-64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Act of May 24, 1989, 71st Leg., R.S., ch. 703, § 5, 1989 Tex. Gen. Laws
3212, 3218-32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

-viii-
Tex. Gov’t Code § 2001.001-.902.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Tex. Gov’t Code § 2001.174. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31, 32, 39, 42

Tex. Gov’t Code § 311.034. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 33

Tex. Health & Safety Code ch. 361, subch. F. . 1, 7, 8, 10-12, 16-18, 26, 28, 29

Tex. Health & Safety Code ch. 361, subch. I, K and L. . . . . . . . . . . . . . 5, 11, 17

Tex. Health & Safety Code § 361.003. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Tex. Health & Safety Code § 361.003(24). . . . . . . . . . . . . . . . . . . . . . . . . . 13, 14

Tex. Health & Safety Code § 361.188. . . . . 3, 8, 10-12, 14-19, 21, 25, 26, 28-30,
32, 33, 44

Tex. Health & Safety Code § 361.188(b). . . . . . . . . . . . . . . . . . . 5, 11, 17, 18, 25

Tex. Health & Safety Code § 361.252. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Tex. Health & Safety Code § 361.271. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Tex. Health & Safety Code § 361.272. . 6, 8, 10-12, 14-17, 19-21, 25, 26, 28-30,
44

Tex. Health & Safety Code § 361.274. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Tex. Health & Safety Code § 361.276. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Tex. Health & Safety Code § 361.321. . . . . . . . . 4, 6, 9-16, 21, 24, 29, 32, 42-44

-ix-
Tex. Health & Safety Code § 361.321(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Tex. Health & Safety Code § 361.321(c).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Tex. Health & Safety Code § 361.321(e). . . . . . . . . . . . . . . . . . . 6, 25, 32, 39, 42

Tex. Health & Safety Code § 361.322. . . . . . 4-6, 8, 10, 11, 14, 17, 24, 26, 30, 31

Tex. Health & Safety Code § 361.322(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6, 8

Tex. Health & Safety Code § 361.322(e). . . . . . . . . . . . . . . . . . . 6, 10-12, 25, 26

Tex. Health & Safety Code § 361.322(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . 6, 31

Tex. Health & Safety Code § 361.322(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Tex. Health & Safety Code §§ 361.181-.188.. . . . . . . . . . . . . . . . . . . . 2, 7, 16, 26

Tex. Rev. Civ. Stat. Ann. art. 4477-7, § 13. . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 10

Tex. Rev. Civ. Stat. Ann. art. 4477-7, § 8(g).. . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Tex. Rev. Civ. Stat. Ann. art. 4477-7, § 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Tex. Rev. Civ. Stat. Ann. art. 4477-7, § 9(b).. . . . . . . . . . . . . . . . . . . . . . . . . 8, 10

Tex. Rev. Civ. Stat. Ann. art. 4477-7, § 9(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Texas Solid Waste Disposal Act, Tex. Health & Safety Code § 361.001-
.966 (West 2010).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

-x-
RULES

Tex. R. App. P. 38.1(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

-xi-
ARGUMENT AND AUTHORITIES

This case involves issues of first impression under the Texas Solid

Waste Disposal Act, Tex. Health & Safety Code § 361.001-.966 (West 2010)

(hereinafter “SWDA”).

I. STATEMENTS OF FACTS

A. Appellant’s Statement of Facts is not Controverted

Appellant showed the steps the TCEQ took in investigating, listing,

preparing to remediate the Voda Site and issuing the Order (Appellant’s

Br. 1-5), in accordance with Subchapter F of the SWDA. (Appellant’s Br.

23). Appellees do not contradict these facts, and they must be accepted as

true. Tex. R. App. P. 38.1(g).

B. Appellees’ Statement of Facts Focuses on Irrelevancies

Appellees focus on three areas in their Statement of Facts. Although

none are relevant to this appeal, the State will address them to clarify the

record.

Appellees describe response actions by the U.S. Environmental Protec-

1
tion Agency (“EPA”) at the Voda Site, with the implication that the TCEQ

need not have taken any further remedial action. (Appellees Br. 1-3.)

However, Appellees ignore the fact that EPA contemplated a subsequent

State-led investigation and remedial action to address soil contamination at

depth, and groundwater contamination on and migrating off of the Site.

(AR 61923-24, AR 943, AR 59594-60117 and AR 60253-83.)

Second, Appellees complain that they lacked the opportunity to be

heard before the Commission. (Appellees Br. 3-5.) Appellees had many

opportunities to present information to the TCEQ during the 15-year

Superfund process, see Tex. Health & Safety Code §§ 361.181-.188, and they

submitted detailed input. (See, e.g., CR 910-12, with references to the

administrative record.) Appellees chose not to appear at the Commission

meeting regarding approval of the Order (AR 50382; video file), and not to

join Luminant’s Motion for Rehearing (AR 50864-89).

Finally, Appellees address the subsequent history of the appeal in the

District Court, with the implication that the TCEQ’s pleadings and state-

2
ments there are relevant to the issue of subject-matter jurisdiction. (Appel-

lees Br. 6-8.) They are not relevant, however, because the TCEQ cannot

confer jurisdiction by such statements. (See infra at sec. V.C.1.)

II. REPLY TO APPELLEES’ SUMMARY OF THE ARGUMENT

Appellees make various conclusory statements, none of which deny

that the Order was issued under Subchapter F procedures and contained

the “laundry list” of items required of a § 361.188 order. (Appellees’ Br. 9-

11.)

Appellees assert that, “Potentially responsible parties are entitled to

their day in court.…” (Appellees’ Br. 11.) This, together with statements in

their Statement of Facts, suggests a Due Process argument. But this inter-

locutory appeal is only about subject-matter jurisdiction. The District Court

can consider issues of equity and Due Process after this Court determines

subject-matter jurisdiction.

III. REPLY TO APPELLEES’ STATEMENT OF JURISDICTION

Appellees’ argument rests on an inference that a waiver of sovereign

3
immunity anywhere in a statute applies to all causes of action (or, in this

case, appellate provisions) in the statute. To the contrary, waivers of

sovereign immunity are strictly construed and must be expressed in clear

and unequivocal terms. See Berry v. Tex. Democratic Party, 449 S.W.3d 633,

640 (Tex. App.—Austin 2014, no pet. h.) (citations omitted); see also Tex.

Gov’t Code § 311.034. Thus, a waiver limited to one action is inapplicable

to other actions, even in the same statute.

Appellees argue that, “What the parties actually dispute is precisely

what evidence the trial court may consider in reviewing the Order.… The

State’s plea is not a challenge to the trial court’s subject matter jurisdic-

tion.…” (Appellees’ Br. 11-12.) To the contrary, the State is asserting that,

for this type of order, the District Court has subject-matter jurisdiction

under § 361.321 but not under § 361.322. (Appellant’s Br. 32-38.) This is a

plea to the jurisdiction, therefore, not merely a dispute over the evidence.

Essentially, this Court is being asked to decide whether the District Court

will exercise its original fact-finding jurisdiction or its appellate jurisdiction

4
over the Order.

Appellees further assert that, “the State cannot maintain a plea to the

jurisdiction in this case because its own pleadings defeat its claim.” (Appel-

lees’ Br. 12.) However, the State’s pleadings cannot confer jurisdiction by

consent, waiver or estoppel. (See sec. V.C.1, infra.)

IV. REPLY CONCERNING ISSUE ONE

Appellees attempt to show that the two types of order, despite being in

different sections of the statute and having different elements and proce-

dures, are “not mutually exclusive.” (Appellees’ Br. 14.) They reason that

“both types of orders share elements outlined in Subchapters I, K, and L of

the Act, including but not limited to: … [a]n appellate provision. Id. at

§ 361.322.” (Appellees’ Br. 14-15.) To the contrary, while the orders have

some elements in common (due to § 361.188(b)), they cannot both be

appealed under § 361.322.

A. The plain language of § 361.322 limits that section to
appeals of § 361.272 orders

The plain language of the statute says that § 361.322 is limited to the

5
appeals of § 361.272 orders: “Any person subject to an administrative order

under Section 361.272 may appeal the order by filing a petition.…” SWDA

§ 361.322(a) (emphasis added). See also id. §§ 361.322(g) and (h) (referring to

“the administrative order.”)

Conversely, § 361.321 applies generally to a “ruling, order, decision, or

other act of the commission,” but contains the following exclusion: “Except

as provided by Section 361.322(e) [read 361.322(g)], in an appeal from an

action of the commission … the issue is whether the action is invalid,

arbitrary, or unreasonable.” Id. § 361.321(e). (See Appellant’s Br. 13 con-

cerning the outdated reference to § 361.322(e).) Thus, the two appellate

sections are separate and have different standards of review.

The fact that § 361.322 refers to § 361.272 orders, and does not mention

any others, indicates that the Legislature did not intend for it to apply to

any other type of order. See United Servs. Auto. Ass’n v. Brite, 215 S.W.3d

400, 403 (Tex. 2007), citing Mid-Century Ins. Co. of Tex. v. Kidd, 997 S.W.2d

265, 273–74 (Tex. 1999) (referring to the “doctrine of expressio unius est

6
exclusio alterius—the inclusion of a specific limitation excludes all others—a

statutory interpretation tool of some use under [certain] circumstances.”).

Each appellate section stands alone.

B. The language and structure of the SWDA create separate
orders and separate appeals

1. The current language of the statute correctly reflects the
intent of the Legislature

Appellees refer to the statutory history in an attempt to show that both

types of order have always been subject to the same appellate standards.

(Appellees’ Br. 15-29.) One problem with this analysis is that what is now

Subchapter F, including §§ 361.181-.188, was substantially rewritten in

1989-90, and the appellate cross-references were codified at the same time.

The Legislature codified the SWDA in the Regular Session of 1989. See

Act of May 18, 1989, 71st Leg., R.S., ch. 678, § 1, 1989 Tex. Gen. Laws 2230,

2616-64. (App. 1:2616-64.) In that same session, it enacted amendments

that were not codified. See Act of May 24, 1989, 71st Leg., R.S., ch. 703, § 5,

1989 Tex. Gen. Laws 3212, 3218-32. (App. 2:3218-32.) Those amendments

7
included a substantial rewriting of § 13 (now Subchapter F), to the extent

that they practically created a new program. Id. (App. 2:3218-32.) The next

year, in the Sixth Called Session, the Legislature codified the new amend-

ments. See Act of June 6, 1990, 71st Leg., 6th C.S., ch. 10, art. 2, § 29, 1990

Tex. Gen. Laws 47, 66-80 (amended 1997) (current version at Tex. Health &

Safety Code §§ 361.181-.202). (App. 3:66-80.)

In the same act that codified the new Subchapter F, the Legislature also

incorporated the uncodified amendment to § 9(b) (now § 361.322(a)) and

included this reference: “Any person subject to an administrative order

under Section 361.272 may appeal the order by filing a petition.…” Id. § 28,

1990 Tex. Gen. Laws 64-65 (current version at Tex. Health & Safety Code

§ 361.322(a)). (App. 3:64-65.) They also amended § 361.321(c) with the

cross-reference, “[e]xcept as provided by Section 361.322(a)....” Id. at 64

(current version at Tex. Health & Safety Code § 361.321(c)).

If the Legislature had wanted § 361.188 orders to be appealed under

§ 361.322, this was the perfect opportunity to say so. But they did not, and

8
instead left § 361.188 orders to be appealed under § 361.321, the general

appellate section. The relevant language has not changed in the interven-

ing 25 years.

The legislative intent is clear from the text, and the statutory history

does not show a different intent before codification. The plain language

shows that each separate ordering section has an independent appellate

section.

2. The pre-codification statutory history shows separate
orders and separate appeals

Even if there were some ambiguity in the current text, and a review of

the statutory history were necessary, that history does not support the

conclusions Appellees attempt to draw.

First, Appellees provide an extensive statutory history (Appellees’ Br.

13-22), only to draw the same conclusions, as to the pre-codification

statute, that they drew regarding the current statute (compare Appellees’ Br.

15 with id. at 21). That history does not alter any conclusions about the

meaning of the statute.

9
For example, after the 1985 amendments, the “preponderance of the

evidence” clause of § 9(c) (now § 361.322(e)) was made applicable only to

§ 8(g) (now § 361.272) orders; the “invalid, arbitrary or unreasonable”

standard of § 9 (now § 361.321) applied to all the rest (e.g., to § 361.188).

That language carries forward to the present statute. In other words, the

codifiers correctly carried forward the prior meaning to the current statute.

Appellees acknowledge that the 1989 amendments limited the applica-

bility of § 9(b) (now § 361.322) appeals to “any person subject to an admin-

istrative order under 8(g)” (now § 361.272). (Appellees’ Br. 21.) The same

bill, they acknowledge, allowed the TCEQ to continue the remedial action

program under § 13 (now Subchapter F), unless enjoined, and added the

other provisions now found at § 361.322. (Appellees’ Br. 22.) However,

they do not acknowledge the obvious conclusion: that the pre-codified

statute, like the current version, had separate appellate provisions for the

different types of orders.

10
C. Cross-references between subchapters do not merge the
ordering sections

1. Section 361.188(b) merely incorporates provisions from
other subchapters into § 361.188 orders

Appellees argue that § 361.188 and § 361.272 orders are not mutually

exclusive, although they appear in different sections and use different

language. (Appellees’ Br. 23.) One reason, they say, is that § 361.188(b)

incorporates the provisions of Subchapters I, K and L into § 361.188 orders,

“including the same appellate provisions.” (Appellees’ Br. 23-24.) This is

illogical, however, since both §§ 361.321 and 361.322 are in Subchapter K—

and both cannot apply to the same § 361.188 order. The difference is that

§ 361.322 appeals are expressly limited to § 361.272 orders, while § 361.321

appeals are applicable generally.

2. Section 361.322(e) does not merge the orders

Appellees point out that § 361.322(e) allows the Subchapter F process

to continue even after a § 361.272 order is appealed (unless enjoined).

(Appellees’ Br. 24.) However, this clause does not make the orders any less

11
separate or distinct.

Section 361.272 orders are useful in certain circumstances:

(1) When an order is needed quickly to address exigent circum-
stances, and there is insufficient time to complete the exhaustive
Subchapter F procedures;

(2) When the remedy is fairly obvious and straightforward (such
as the removal of all contaminated material), because a full-blown
remedial investigation would be unnecessary; and

(3) When a stopgap is needed initially to stabilize the site while
the full Superfund process is carried out under Subchapter F.

Section 361.322(e) is designed to facilitate option (3). The fact that the

TCEQ can conduct a full investigation and issue a § 361.188 order, while a

§ 361.272 order is on appeal, does not make the orders any less separate or

distinct. In fact, it shows that they are separate orders.

D. The term “person affected” does not limit § 361.321 to
permit appeals

Appellees assert that the SWDA appellate provisions distinguish

between Superfund and permitting orders, not between different kinds of

Superfund orders. (Appellees’ Br. 25.) The reason, they say, is that the

12
term “person affected” in § 361.321 limits that section to permitting ap-

peals. (Appellees’ Br. 25-27.) They say, “[b]oth its statutory history and its

current role in the SWDA demonstrate clear legislative intent that § 361.321

is the appellate provision for the permitting program, not the Superfund

program.” (Appellees’ Br. 27, citations omitted.)

To the contrary, while it is undoubtedly true that the definition of

“person affected” in § 361.003(24) applies to permitting decisions, it does

not follow that the same term in § 361.321 limits that section to the appeals

of permit matters.

1. The definition of “person affected” is broad enough to
cover persons named in Superfund orders

A person named in a Superfund order is affected by the order. That

person is required to be responsible for a share of the response costs

incurred at the site, and thus has an economic interest in the outcome. That

person can “demonstrate[] that the person has suffered or will suffer actual

injury or economic damage,” within the meaning of id. § 361.003(24).

Likewise, the person named in the Superfund order was determined to

13
have done business at the site (see definition of “Person Responsible for

Solid Waste” at id. § 361.271), and was therefore “doing business … in the

county” within the meaning of id. § 361.003(24)(B).

Definitions in the SWDA apply “unless the context requires a different

definition.” Id. § 361.003. In context, this definition is broad enough to

encompass persons named in Superfund orders, for purposes of appeals

under § 361.321.

2. Under Appellees’ interpretation, there might be no appeal
for § 361.188 orders

Appeals under § 361.322 are limited, by the plain language of that

section, to orders issued under § 361.272. If § 361.321 were restricted to

non-Superfund matters, then there would be no clear, unambiguous

waiver of immunity for § 361.188 orders. Since this Order was procedurally

and substantively a § 361.188 order (see Issue Two, sec. V, infra), Appellees

would have no appeal in the present case.

The TCEQ does not argue that the Legislature intended for there to be

no appeal for a § 361.188 order. The most reasonable interpretation is that

14
“persons affected,” in the case of a § 361.188 order, is meant to include the

persons named in the order.

3. Under Appellees’ interpretation, only permit matters and
§ 361.272 orders could be appealed

Appellees undoubtedly overstate their argument in saying that

“§ 361.321 is the appellate provision for the permitting program… .”

(Appellees’ Br. 27.) In fact, § 361.321 is the general appellate provision for

the SWDA.

Matters other than permitting decisions have been appealed under

§ 361.321. See, e.g., Tex. Water Comm’n v. Lindsey, 855 S.W.2d 750, 752 (Tex.

App.—Beaumont 1993, writ denied) (appeal of an agency letter determin-

ing PRP status; appeal may be taken under § 361.321 and venue is proper

in Travis County.) See also, Tex. Ass’n of Bus. v. Tex. Air Control Bd., 852

S.W.2d 440, 441, n.2 at 442, 450 (Tex. 1993) (a constitutional review of

administrative penalty sections in several statutes, including the then-

existing § 361.252 of the SWDA; assuming that such orders could be

appealed, but holding that prepayment procedures violated the Open

15
Courts doctrine.)

E. Conclusion

The Legislature contemplated, considered, and enacted two different

types of administrative orders for Superfund actions. Section 361.188

orders are issued when the TCEQ completes the procedures set forth in

Subchapter F, whereas § 361.272 orders are reserved for situations where

circumstances demand quicker action. Each order has its own independent

mechanism for appeal. Appellees’ arguments that the appellate remedies

set forth in § 361.321 are restricted to non-Superfund actions are erroneous.

V. REPLY CONCERNING ISSUE TWO

Appellees’ response to Issue Two is notable for what it does not say. It

does not assert that the TCEQ failed to do any of the things required under

§§ 361.181-.188, or that the Order is missing any of the “laundry list” of

requirements in § 361.188. It does not contradict the facts the TCEQ set out

in this regard (Appellant’s Br. 1-5). The TCEQ asserts that this is a § 361.188

order because it was issued in accordance with all the procedural and

16
substantive requirements of Subchapter F of the SWDA. Appellees do not

controvert this argument.

Appellees’ argument is otherwise, and somewhat contradictory. First,

they assert that the Order “was issued under both § 361.188 and § 361.272

of the SWDA.” (Appellees’ Br. 29.) Then they say, “the AO for the Voda

Site was issued under § 361.272, making application of § 361.322 appropri-

ate for this Order.” (Appellees’ Br. 30.)

Their reasoning depends on two arguments: First, that the TCEQ made

various statements, both at the agency level and before the District Court,

to the effect that the Order was issued under both sections. Second, they

say that certain provisions of Subchapters I, K and L have been incorpo-

rated into the Order pursuant to § 361.188(b), and this converts the Order

to a § 361.272 order. However, neither of these arguments challenges the

essential nature of the Order or affects the subject-matter jurisdiction of the

courts.

17
A. The content of the Order shows that it was issued under
Subchapter F

Appellees assert that several parts of the Order incorporate authorities

from subchapters other that Subchapter F. (Appellees’ Br. 30.) These

include the definition of “solid waste” as well as “hazardous substances”

among the materials at the Site, the definition of “responsible parties,” the

divisibility of the release, the list of Chemicals of Concern, etc. (Appellees’

Br. 30-32.) They conclude that “these provisions flatly contradict the

State’s position that the AO was issued solely under § 361.188.” (Appellees’

Br. 31.)

This argument, however, ignores the language of § 361.188(b)—that

“[t]he provisions in Subchapters I, K, and L relating to administrative

orders apply to orders issued under this section.” SWDA § 361.188(b).

Appellees have admitted that this clause “is open ended and inclusive, and

demonstrates that the Legislature intended all ‘administrative orders’ of

the SWDA to share common procedural attributes.…” (Appellees’ Br. 24.)

The fact that § 361.188(b) incorporates elements from other subchapters

18
does not turn the Order into a § 361.272 order.

B. Contrary statements did not change the essential nature of
the Order

Appellees refer to various statements by the TCEQ to the effect that the

Order was issued under both sections. These statements all relate back to a

boilerplate clause in the preamble to the Order itself, which said that the

Executive Director’s requested relief included a Superfund order “as

authorized by Sections 361.188 and 361.272 of the Act.” (AR 50383.)

Prior to the Supreme Court’s opinion in City of Waco, Texas case law

held that, “substantial-evidence review on an agency record is simply ‘not

possible’ absent the opportunity to develop that record through a con-

tested-case or adjudicative hearing.” City of Waco v. Tex. Comm’n on Envtl.

Quality, 346 S.W.3d 781, 818 (Tex. App.—Austin 2011), rev’d, 413 S.W.3d

409 (Tex. 2013). The parties believed that, if the matter were appealed,

some judicial fact-finding was inevitable in the trial court. The agenda

notice and the statement by the staff attorney simply reflected the boiler-

plate in the preamble to the Order, and were not statements about the

19
anticipated standard of review on appeal. In presenting the Order to the

Commission, the staff attorney summarized the actions the TCEQ took in

compliance with the Subchapter F program. (AR 50382; video file, oral

statement at 1:18.)

The TCEQ’s statement in its Reply to Luminant’s Motion for Rehearing

(concerning the lack of need for an adjudicative hearing) did not affect

substantive rights. (See Appellees’ Br. 32-33; AR 49650.) The TCEQ rea-

soned that no hearing was required for a § 361.272 order, by virtue of Tex.

Health & Safety Code § 361.274—however, no hearing was required for

either type of order. (AR 49650.) The TCEQ was not saying that a hearing

was precluded by the combined effects of both ordering sections, simply

that no hearing was required under either section. Substantive rights were

not affected by any assertion about the Order being issued under both

sections.

The TCEQ cannot waive sovereign immunity though its own state-

ments. (See sec. V.C.1, infra.) The Order is defined by its substance and the

20
procedures used to create it, and the Appellees do not contest that it has all

the characteristics of a § 361.188 order. It follows from the plain language

of the statute that appeal is under § 361.321. The TCEQ lacks the power to

waive sovereign immunity and admit that the Order is something that it is

not, or that appeal is proper under a different section.

C. The State’s prior pleadings did not waive, agree to, or confer
jurisdiction

Appellees refer to various pleadings and agreed judgments in which

the State said that the Order was issued under both §§ 361.188 and 361.272.

(Appellees’ Br. 33-34.) However, the State’s prior pleadings cannot defeat

this plea.

1. The State’s pleadings did not create waivers of sovereign
immunity

The parties to lawsuits—in their pleadings or otherwise—cannot

waive, agree to, or confer jurisdiction. See, e.g., Comptroller v. Landsfeld, 352

S.W.3d 171, 174 (Tex. App.—Fort Worth 2011, pet. denied) (subject matter

jurisdiction “may not be conferred by waiver or estoppel.”) (citing Van

21
Indep. Sch. Dist. v. McCarty, 165 S.W.3d 351, 354 (Tex. 2005)). See also

Metzger v. Metzger, No. 01-04-00893-CV, 2007 WL 1633445, *7 (Tex.

App.—Houston [1st Dist.] 2007, pet. denied) (mem. op.) (“Subject-matter

jurisdiction cannot be conferred by consent, waiver, or estoppel at any

stage of a proceeding.”), citing Saudi v. Brieven, 176 S.W.3d 108, 113 (Tex.

App.—Houston [1st Dist.] 2004, pet. denied) (quoting Tourneau Houston,

Inc. v. Harris Cnty. Appraisal Dist., 24 S.W.3d 907, 910 (Tex. App.—Houston

[1st Dist.] 2000, no pet.)).

Only the Texas Legislature, and not an agency, can waive sovereign

immunity:

This Court has long recognized that it is the Legislature’s sole prov-
ince to waive or abrogate sovereign immunity.… The Legislature
may consent to suits against the State by statute or by resolu-
tion.… Legislative consent to sue the State must be expressed in
clear and unambiguous language.

Tex. Natural Res. Conserv. Comm’n v. IT-Davy, 74 S.W.3d 849, 853-54 (Tex.

2002) (citations and internal quotation marks omitted, emphasis added).

See also McLane Co., Inc. v. Strayhorn, 148 S.W.3d 644, 649 (Tex. App.—

22
Austin 2004, pet. denied) (“It is for the legislature alone ‘to waive or abrogate

sovereign immunity.’”) (emphasis added), citing Fed. Sign v. Tex. S. Univ.,

951 S.W.2d 401, 409 (Tex. 1997).

2. Prior judgments and motions did not create waivers of
sovereign immunity

Appellees refer to two agreed final judgments and two motions for

default judgment, which recited that the Order was issued under both

sections. (Appellees’ Br. 34-35.) However, Appellees do not say how the

parties to those judgments were affected by those statements, nor how

Appellees themselves were affected. In fact, those statements simply

reflected the boilerplate statement in the preamble to the Order. The scope

and type of order, and the appellate provisions applicable to each type of

order, were not at issue in any of those proceedings.

Neither the identity of the Order nor the language it contains has ever

been in dispute. In the agreed final judgments, all causes of action related

to the Order were being compromised and settled. (The judgments were

severed and filed in separate cases. However, the text of each can be seen

23
with the TCEQ’s notices of lodging. (See CR 275-436, 458-556.)) All claims

related to the Order were being dismissed. Neither the settling parties’ nor

Appellees’ rights were affected by the boilerplate statements.

Appellees also refer to a statement in the TCEQ’s Third Amended

Original Answer that the “sole method for appealing the Order” is at Tex.

Health & Safety Code § 361.322. (Appellees’ Br. 35, CR 678.) That state-

ment was in the context of a plea to the jurisdiction seeking to dismiss a

claim under the Uniform Declaratory Judgment Act on the grounds of

redundancy. (CR 677-79.) The motion should have said that the “sole

method” of appeal was under § 361.321. However, the underlying argu-

ment was still sound—that the UDJA action offered nothing but redundant

remedies. In context, the statement did not draw a distinction between two

different sections of the SWDA, but between remedies offered in the UDJA

versus the SWDA. Moreover, the statement did not create a waiver of

sovereign immunity.

If any party’s pleadings are to be binding, it is those of Appellees—

24
who expressly limited their prayer for relief to whether “the TCEQ’s

Administrative Order is invalid, arbitrary, or unreasonable and therefore

must be overturned pursuant to Texas Health & Safety Code § 361.321(e).”

(CR 25.)

3. The State did not seek to obtain the advantages of a
§ 361.272 order by saying that it issued the Order under
both sections

Appellees assert that, “the Commission invoked § 361.272 in an

attempt to hold the [potentially responsible parties (“PRP’s”)] for the Voda

Site jointly and severally liable under the SWDA.” (Appellees’ Br. 37.) To

the contrary, the TCEQ did not invoke § 361.272 for that reason, because it

was not necessary to do so. Section 361.276 (“Apportionment of Liability”)

is made applicable to § 361.188 orders by virtue of § 361.188(b). The fact

that the TCEQ asserted there is joint and several liability for this Order

does not make it a § 361.272 order.

D. Section 361.322(e) does not merge § 361.188 and § 361.272
orders

Appellees say that, “the issuance of an order under § 361.272 does not

25
preclude the Commission from the listing process of § 361.181-188.” (Ap-

pellees’ Br. 37, citing § 361.322(e).) While this is true, it does not lead to the

conclusion that the ordering sections are somehow merged. (See discussion

of § 361.322(e) at sec. IV.C.2, supra.)

The TCEQ may work through the Subchapter F process, and even

issue a § 361.188 order, after the issuance and appeal of a § 361.272 order.

Appellees imply that this has some relevance to the current situation, but it

does not. In the present case, the TCEQ did the Subchapter F process first,

and then issued the § 361.188 Order. Section 361.322(e) is irrelevant.

E. Reviewing this Order under § 361.322 would make
Subchapter F redundant

In a trial court brief, the TCEQ asserted that “[r]eview under Section

361.322 would render Subchapter F redundant.” (CR 1091.) The reason

was that the TCEQ would not go through the “elaborate, time-consuming

and expensive,” Subchapter F process if it had to re-prove liability at trial

by preponderance of the evidence anyway. (CR 1092.) “That practical

consideration would turn Subchapter F into surplusage, which would be

26
contrary to the intent of the Legislature.” Id. In the present case, it would

mean that the TCEQ had wasted 15 years, and a lot of money, establishing

findings that would have to be re-established by a preponderance of the

evidence.

Appellees do not address this argument directly. Instead, they respond

by complaining that they were not offered a contested-case hearing before

the agency, and did not have the opportunity to show that they were not

“persons responsible for solid waste.” (Appellees’ Br. 38-39.) However,

Appellees had numerous opportunities to show that they were not PRP’s

and present other information to the TCEQ. The Legislature did not

provide a redundant contested-case hearing as part of that process.

Appellees do not address the question of subject-matter jurisdiction;

instead, they complain about the supposed effects of a substantial evidence

review. When they suggest that the Order will be “the final word on

liability,” (Appellees’ Br. 39), they grossly overstate the applicable standard

of review. Appellees’ arguments about their own liability are premature in

27
this interlocutory appeal.

Further, their distinction between agency expertise on liability versus

remedy selection is misplaced. (See Appellees’ Br. 38-39.) Essentially, they

are saying that they question the agency’s expertise when it comes to

determining their own liability. However, the agency has expertise in

determining PRP status; it must go through the relevant procedures set out

in Subchapter F, and did so for this Order in detail. (AR 12512-16706.)

F. The Order was properly issued under § 361.188

The TCEQ asserted that: “[a] single order cannot arise under both

Sections 361.188 and 361.272.” (Appellant’s Br. 18.) The rationale was that,

“[t]he orders must be separate and distinct because they have different

deadlines for appeal,” and “each appellate section provides for a different

standard of review.” Id.

From this, Appellants illogically conclude that the remedy is “to

overturn the Order as a violation of law.” (Appellees’ Br. 40.) They arrive

at this conclusion only by assuming that the TCEQ issued the Order

28
“under both § 361.188 and § 361.272.” (Appellees’ Br. 41.) Since that is the

matter in controversy, their argument lacks logic and must fail. This Order

was properly issued under § 361.188—not § 361.272, and not both.

G. Conclusion

The TCEQ’s boilerplate language in the preamble to the Order is not

controlling or dispositive as to the nature of the Order, nor are the TCEQ’s

statements or pleadings. What is controlling is the substance of the Order

and the process the TCEQ followed leading up to its entry. Appellees do

not dispute that the TCEQ completed the procedures set forth in Sub-

chapter F. If the TCEQ had intended to issue a § 361.272 order, it would

have done so early in the process rather than at the end. The Order was

properly issued under § 361.188 and is properly reviewed under § 361.321.

VI. REPLY CONCERNING ISSUE THREE

The TCEQ asserted that “[b]ecause of the doctrine of Sovereign Immu-

nity, the courts lack jurisdiction to review the Order under any section

other than Section 361.321.” (Appellant’s Br. 32.) The premises of that

29
argument were that (a) the ordering sections are mutually exclusive, and

(b) this Order was issued under § 361.188. (Appellant’s Br. 32.)

Appellees respond that “[j]udicial review of the Administrative Order

for the Voda Site is constitutional and appropriate under § 361.322 of the

[SWDA].” (Appellees’ Br. -ix-.) However, they start with different pre-

mises. They posit that “the substantial evidence review procedures found

in the APA are not applicable to this appeal” (Appellees’ Br. 41), and then

argue that “judicial review under § 361.322 does not violate the separation

of powers doctrine.” (Appellees’ Br. 42.)

In other words, Appellees are saying that an order issued under

§ 361.272 is properly appealed under § 361.322, and there is no constitu-

tional impediment to doing so. Even assuming that argument to be sound,

it is irrelevant here because the present case involves a § 361.188 order—as

established in Issues One and Two, above. Appellees do not controvert the

essence of the TCEQ’s jurisdictional argument.

30
A. The constitutionality of § 361.322 is not at issue

1. Tex. Gov’t Code § 2001.174 restates existing law

The TCEQ asserted that “[u]nder the Separation of Powers Doctrine,

the courts review administrative orders only as to matters of law.” (Appel-

lant’s Br. 35.) That was in the context of an argument showing that the

Texas Administrative Procedure Act (“APA”) (specifically, Tex. Gov’t

Code § 2001.174) codified the Legislature’s understanding of the existing

law of judicial review of state agency actions. (Appellant’s Br. 35-37.)

Appellees do not controvert the proposition that Tex. Gov’t Code

§ 2001.174 restated existing law. Instead, they argued that “the separation

of powers doctrine only prohibits the Legislature from authorizing de novo

judicial review of quasi-legislative acts that address broad questions of

public policy or promulgate rules for future application.” (Appellees’ Br.

42.)

However, issues concerning the constitutionality of the “preponder-

ance of the evidence” requirement in § 361.322(g) are irrelevant here. Given

31
that this Order was issued under § 361.188, it is properly reviewed under

the “invalid, arbitrary or unreasonable” standard of § 361.321(e). (See also,

argument and authorities at sec. VI.C.1, infra.)

Appellees cite cases in which statutes required trials de novo for

certain agency decisions. (Appellees’ Br. 43-46, citing Commercial Life Ins.

Co. v. Tex. State Bd. of Ins., 808 S.W.2d 552 (Tex. App.—Austin 1991, writ

denied) and Macias v. Rylander, 995 S.W.2d 829 (Tex. App.—Austin 1999,

no pet.). The issue in each case was whether those requirements violated

the Separation of Powers doctrine (they did not). See Commercial Life, 808

S.W.2d at 554-55; Macias, 995 S.W.2d at 832-33. Again, however, that is

irrelevant here because § 361.321 does not require a trial de novo.

Meanwhile, in the present case, the TCEQ has shown that the review

of this Order under the “invalid, arbitrary or unreasonable” standard of

§ 361.321(e) is conducted in the same manner as review under the provi-

sions of Tex. Gov’t Code § 2001.174. (Appellant’s Br. 37-38.)

32
2. The Legislature’s decision to allow the review of this
§ 361.188 order under the “invalid, arbitrary or unreason-
able” standard is consistent with the emerging law in this
area

The issue in this interlocutory appeal is whether the courts have

subject-matter jurisdiction to consider an appeal of an agency order under

one section of a statute, when the only proper appeal is under a different

section. This raises a question of Sovereign Immunity, since the State has

not waived its immunity generally. Each waiver must be in “express and

unequivocal terms.” See Berry, 449 S.W.3d at 640, quoting Prairie View A&M

Univ. v. Chatha, 381 S.W.3d 500, 512 (Tex. 2012); see Tex. Gov’t Code

§ 311.034. “‘[N]o state can be sued in her own courts without her consent,

and then only in the manner indicated by that consent.’” Tooke v. City of

Mexia, 197 S.W.3d 325, 331 (Tex. 2006) quoting Hosner v. DeYoung, 1 Tex.

764, 769 (1847).

The Separation of Powers doctrine, which is similar but not identical,

holds that judicial review (when authorized) may not re-determine the

facts found by the agency. The distinction was explained by this Court, as

33
follows:

[A]n administrative agency’s order made within its discretionary
statutory and constitutional authority is ordinarily shielded by
sovereign immunity from suit, such that there is no right to judi-
cial review, unless and until the Legislature has waived that
immunity by conferring a right of judicial review.… However,
even while the Legislature generally has the prerogative to waive
sovereign immunity to permit judicial review, Texas courts have
long held separation-of-powers principles bar the judiciary—even
where the Legislature has purported to grant such broad review
powers—from redetermining the fact findings of agencies exercis-
ing their administrative functions.

City of Waco, 346 S.W.3d at 815 (Tex. App.—Austin 2011), rev’d on other

grounds, 413 S.W.3d 409 (Tex. 2013) (citing Gerst v. Nixon, 411 S.W.2d 350,

353–54 (Tex.1966) and S. Canal Co. v. State Bd. of Water Eng’rs, 318 S.W.2d

619, 622-24 (Tex. 1958)) (other citations omitted). That distinction is still

valid.

B. The Texas Supreme Court’s decision in City of Waco is
pertinent to this SWDA appeal

The TCEQ asserted that “[a] contested case hearing is not required for

review of this Order under substantial evidence,” referring to the Supreme

Court’s City of Waco decision. (Appellant’s Br. 38-39, citing Tex. Comm’n on

34
Envtl. Quality v. City of Waco, 413 S.W.3d 409 (Tex. 2013).) Appellees

responded that “[t]he Texas Supreme Court’s decision in City of Waco is not

controlling in this SWDA appeal.” (Appellees’ Br. 48.) To the contrary, the

Supreme Courts rulings in that case—and this Court’s subsequent applica-

tions of those rulings—define the proper approach here.

1. City of Waco did not merely make a “threshhold determina-
tion”

Appellees would limit the applicability of City of Waco by saying that

the case “is limited to a threshold determination of whether a third-party

seeking to intervene in a permitting case is an ‘affected person’ sufficient to

trigger a contested-case hearing.” (Appellees’ Br. 10, 48.) However, that

was not the relevant characteristic of the case. The case actually turned on

the finding that the amended permit would not “significantly increase or

materially change the authorized discharge of waste” and would therefore

qualify for a statutory exemption from the contested-case requirement. City

of Waco, 413 S.W.3d at 424-25 (Tex. 2013). The TCEQ made a fact-based

determination from the information, evidence, documents, and arguments

35
that interested parties presented to the agency, and the Court upheld that

determination. Id. (“We conclude that there is evidence in the record to

support the Commission’s determination.…”) In the present case, the

TCEQ made a similar determination respecting the Site remedy and Appel-

lees’ status as PRP’s.

In City of Waco, the Texas Supreme Court upheld TCEQ’s decision

because there was reasonable support in the agency record for the decision.

Id. at 424-25. Ultimately, that is what the TCEQ is requesting in the present

case. When applying the Supreme Court’s holding and analysis, this Court

has recognized that an agency’s decision is often found not to be arbitrary

or capricious if the factual basis for the decision is supported by substantial

evidence in the agency record. See Tex. Comm’n on Envtl. Quality v. Sierra

Club, No. 03-12-00335-CV, 2014 WL 7464085, *5 (Tex. App.—Austin Dec.

30, 2014, no pet. h.)

Appellees attempt to distinguish City of Waco by saying that, “the

present case has no connection to the Texas Water Code, permitting, or the

36
standing of third parties.…” (Appellees’ Br. 51.) However, these distinc-

tions are irrelevant. Appellees are still making the assumption that the

“preponderance of the evidence” burden of proof applies. (Appellees’ Br.

51.) But it does not, and such analysis is beside the point. After City of

Waco, the courts can review an agency order by the “abuse of discretion”

standard (including the substantial evidence component), even in the

absence of a contested case or adjudicative hearing below. The relevant

provision, § 361.321, mandates such a standard of review. That is the

holding and the relevance of City of Waco.

Appellees attempt to distinguish the recent Sierra Club case, which

follows the City of Waco precedent. (See Appellees’ Br. 52-53, citing Sierra

Club, 2014 WL 7464085.) Appellees admit that, “[a]pplying the holding

from City of Waco, [this Court] held it must review ‘a TCEQ determination

regarding affected-person status for an abuse of discretion.’” (Appellees’

Br. 52, citing Sierra Club, 2014 WL 7464085 at *4.) Appellees do not say why

that case is distinguishable from the present case—presumably because it

37
involves party standing in a permit matter. But this Court cited City of

Waco throughout the opinion and noted that, “[i]n making a decision

regarding affected-person status, TCEQ enjoys the discretion to weigh and

resolve matters that may go to the merits of the underlying application.…”

Sierra Club, 2014 WL 7464085 at *5, citing Sierra Club v. Tex. Comm’n on

Envtl. Quality, No. 03–11–00102–CV, 2014 WL 7463875 at *12 (Tex. App.—

Austin Dec. 30, 2014, no pet. h.) (other citations omitted).

To summarize, this Court has recently considered two different TCEQ

decisions—each within the agency’s discretion, on the substance of the

applications, without contested case hearings—and reviewed them on the

administrative record based on the abuse of discretion standard. These

precedents support the TCEQ’s interpretation of City of Waco.

Finally, Appellees mischaracterize the State’s position as saying that

“all TCEQ decisions—including those with specific statutory appellate

provisions to the contrary—are subject to review only through pure

substantial evidence.” (Appellees’ Br. 53.) By contrast, the State’s actual

38
position is that City of Waco and its progeny allow a substantial evidence

review on appeal, even without a contested case hearing before the agency,

when the relevant statute provides for such review. That is entirely consis-

tent with precedent, and describes the present situation.

C. The “invalid, arbitrary or unreasonable” standard of
§ 361.321(e) equates to the standard of Tex. Gov’t Code
§ 2001.174

1. Tex. Gov’t Code § 2001.174 was intended to be a restate-
ment of the law

Appellees argue that the provisions of the APA contained at Tex.

Gov’t Code § 2001.174 do not apply here, because of the express terms of

that section. (Appellees’ Br. 53-54.) But this ignores the TCEQ’s actual

argument: that the Legislature intended the APA to be a restatement of

existing law, not a new form of judicial review of agency actions. (Appel-

lant’s Br. 36.) Following this argument, the “invalid, arbitrary or unreason-

able” standard of § 361.321(e) simply means that the Order must be re-

viewed under the standards of APA § 2001.174, of which substantial

evidence is an important part. (Appellant’s Br. 37.) Appellees do not

39
controvert the TCEQ’s actual argument.

2. Review under the substantial evidence standard does not
require a contested case hearing

Appellees argue that “Outside of threshold standing questions, pure

substantial evidence requires a true contested-case record under the APA.”

(Appellees’ Br. 55-59.) However, they cite several cases that have been

effectively overruled. One is Ramirez v. Tex. State Bd. of Med. Exam’rs, 927

S.W.2d 770, 773 (Tex. App.—Austin 1996, no writ), which rejected the

argument that the Legislature created a right of judicial review under the

substantial evidence rule while depriving parties of an opportunity for a

contested case hearing. However, that case was cited in this Court’s

opinion in City of Waco, 346 S.W.3d at 818, and was thus effectively over-

ruled by the Supreme Court’s subsequent opinion. (See Appellant’s argu-

ment at CR 1099-1100.)

Appellees also cite Tex. Dep’t of Ins. v. State Farm Lloyds, 260 S.W.3d

233, 245 (Tex. App.—Austin 2008, no pet.) (“Absent an administrative

record, no substantial evidence review is required or even possible.”).

40
(Appellees’ Br. 59.) Like Ramirez, that case has been effectively overruled

by City of Waco.

Appellees then cite G.E. Am. Commc’n v. Galveston Cent. Appraisal Dist.,

979 S.W.2d 761, 767 (Tex. App.—Houston [14th Dist.] 1998, no pet.), and

quote: “Substantial evidence review cannot have been the proper standard

because there is no record from the appraisal review board hearing.”

(Appellees’ Br. 56.) The Fourteenth Court of Appeals concluded that,

because there was no record to review, the correct standard of review was

substantial evidence de novo—so that the court could create a record. G.E.

Am., 979 S.W.2d 767. However, substantial evidence de novo has been

rejected by this Court as the default standard of review. See Gilder v. Meno,

926 S.W.2d 357, 361 (Tex. App.—Austin 1996, writ denied). In addition, like

the Ramirez case, the holding has been effectively overruled by the Su-

preme Court in City of Waco. Finally, the TCEQ has compiled an exhaustive

record in this case, and thus the rationale of G.E. American does not apply.

G.E. American is simply not a good precedent here. (See CR 1101.)

41
Appellees attempt to distinguish various cases that are, in fact, good

law. See, e.g., Smith v. Houston Chem. Servs., Inc., 872 S.W.2d 252, 257 n.2

(Tex. App.—Austin 1994, writ denied). Smith interprets § 361.321—the

same section that defines the standard of review in the present case—and

found that the language of § 361.321(e) implies substantial evidence review

under the provisions of § 2001.174 of the APA. Smith is on point because it

interprets the exact section that is at issue in the present case. Smith, 872

S.W.2d at 257 n.2 (“To render [this statute] understandable, and to protect

against its possible violation of the separation-of-powers mandate of the

Constitution of the State of Texas, we construe subsection (a) [of § 361.321]

as authorizing suits for judicial review in a district court of Travis County

in accordance with APA § 2001.001-.902.).

Appellees also argue that the Kelsoe case was not decided on substan-

tive grounds. (Appellees’ Br. 57, citing Tex. Comm’n on Envtl. Quality v.

Kelsoe, 286 S.W.3d 91, 97 (Tex. App.—Austin 2009, pet. denied) (petitioner

asserted that “section 361.321 of the health and safety code only appl[ies]

42
after a contested case hearing, but the plain language of the statute[] does

not support that conclusion; the statute[] speak[s] of seeking review of any

‘ruling, order, decision, or other act.’”). Kelsoe, 286 S.W.3d at 95. Even so,

the case shows this Court’s recent interpretation of the section that is at

issue here; thus, it has precedential value.

Smith and Kelso are not distinguishable on the basis of contested case

hearing because those appeals were filed under the broad language of

§ 361.321.

Appellees attempt to distinguish United Copper Indus., Inc. v. Grissom,

17 S.W.3d 797 (Tex. App.—Austin 2000, pet. dism’d), principally on the

grounds that it is limited to “affected person” issues. (Appellees’ Br. 57-

58.) However, the TCEQ cited that case for various propositions—

principally, that “the APA, interpreting existing law, supports the proposi-

tion that the Order must [be] reviewed under the substantial evidence

standard.” (Appellant’s Br. 37.) This is a general interpretation of the

statute, and is not limited to issues of party status.

43
VII. CONCLUSION

Appellant has shown that there are two separate ordering provisions

within the SWDA, and that each has a separate appellate provision. The

proposition that these sections are merged is not supported by the plain

language of the statute, its history, or by case law.

Appellees essentially admit that the order was procedurally and

substantively issued under § 361.188, but then argue that it was also issued

under § 361.272 because those sections were merged. This proposition is

likewise unsupported by statutory interpretation or existing precedents.

Given that this Order was issued under § 361.188, and that the statute

provides for appeal under § 361.321, it follows that appeal under any other

section is beyond the subject-matter jurisdiction of the courts. This conclu-

sion is entirely consistent with emerging precedents in administrative law.

VIII. PRAYER

Appellant prays that the District Court’s denial of its Plea to the

Jurisdiction be reversed, for the reasons stated in its initial brief and this

44
Reply Brief.

Respectfully submitted this 2nd day of March, 2015.

KEN PAXTON
Attorney General of Texas

CHARLES E. ROY
First Assistant Attorney General

JAMES E. DAVIS
Deputy Attorney General for Civil
Litigation

JON NIERMANN
Chief, Environmental Protection
Division

/s/ Thomas H. Edwards
THOMAS H. EDWARDS
Assistant Attorney General
Tex. Bar No. 06461800
Thomas.Edwards@TexasAttorney
General.gov

CRAIG J. PRITZLAFF
Assistant Attorney General
Tex. Bar No. 24046658
Craig.Pritzlaff@TexasAttorney
General.gov

45
LINDA SECORD
Assistant Attorney General
Tex. Bar No. 17973400
Linda.Secord@TexasAttorney
General.gov

Office of the Attorney General
Environmental Protection Division
P.O. Box 12548, Capitol Station
Austin, Texas 78711-2548
Tel: (512) 463-2012
Fax: (512) 320-0911

ATTORNEYS FOR APPELLANT,
THE TEXAS COMMISSION ON
ENVIRONMENTAL QUALITY

CERTIFICATE OF COMPLIANCE

I certify that this document was produced on a computer using Word
Perfect 13.0 and contains 7,471 words, as determined by the computer
software’s word-count function, excluding the sections of the document
listed in Texas Rule of Appellate Procedure 9.4(i)(1).

/s/ Thomas H. Edwards
THOMAS H. EDWARDS

46
CERTIFICATE OF SERVICE

I certify that a true and correct copy of the foregoing document was
served by electronic service on the following parties or attorneys of record
on the 2nd day of March, 2015, and by email the same day.

Attorneys Parties

John R. Eldridge Exxon Mobil Corporation,
HAYNES AND BOONE, L.L.P. ExxonMobil Oil Corporation,
1221 McKinney St., Ste. 2100 Pennzoil-Quaker State Company
Houston TX 77010-2020 and Shell Oil Company
Telephone: (713) 547-2000
Facsimile: (713) 547-2600
John.Eldridge@haynesboone.com

Adam H. Sencenbaugh “
HAYNES AND BOONE, L.L.P.
600 Congress Ave., Ste. 1300
Austin TX 78701-2579
Telephone: (512) 867-8489
Telecopier: (512) 867-8606
Adam.Sencenbaugh@
haynesboone.com

Janessa M. Glenn Cabot Norit Americas, Inc.
R. Steven Morton
MOLTZ MORTON & GLENN, LLP
5113 Southwest Pkwy, Ste. 120
Austin TX 78735-8969
jglenn@mmandg.com

47
John E. Leslie Howard Freilich, d/b/a Quick Stop
JOHN LESLIE * PLLC Brake and Muffler
1216 Florida Dr., Ste. 140
Arlington TX 76015-2393
Tel: (817) 505-1291
Arlingtonlaw@aol.com

Cynthia J. Bishop Baxter Oil Service
C BISHOP LAW PC
P.O. Box 612994
Dallas TX 75261-2994
cbishop@cbishoplaw.com

Paul Craig Laird II Frank Kosar, d/b/a Rite Way
ASHLEY & LAIRD, L.C. Truck Rental
800 W. Airport Fwy., Ste. 880
Irving TX 75062-6274
pcl880@aim.com

George E. Kuehn SBC Holdings, Inc., f/k/a The Stroh
BUTZEL LONG Brewery Company
301 E. Liberty St., Ste 500
Ann Arbor MI 48104-2283
Tel: 734-213-3257
Fax: 734-995-1777
kuehn@butzel.com

/s/ Thomas H. Edwards
THOMAS H. EDWARDS

48
APPENDIX

49
APPENDIX TO APPELLANT’S REPLY BRIEF
TABLE OF CONTENTS

Tab

1 Act of May 18, 1989, 71st Leg., R.S., ch. 678, § 1, 1989 Tex. Gen. Laws
2230, 2616-64

2 Act of May 24, 1989, 71st Leg., R.S., ch. 703, § 5, 1989 Tex. Gen. Laws
3212, 3216-32

3 Act of June 6, 1990, 71st Leg., 6th C.S., ch. 10, art. 2, §§ 28, 29, 1990
Tex. Gen. Laws 47, 64-80 (amended 1997) (current version at Tex.
Health & Safety Code §§ 361.181-.202, 361.322(a))
TAB 1
71st LEGISLATURE-REGULAR SESSION

CHAPTER 678
H.B. No. 2136
AN ACT
relating to the adoption of a nonsubstantlve revision of the statutes relating to health and safety,
Including conforming amendments, repeals, and penalties.
Be it enacted by the Legislature of the State of Texas:
SECTION 1. ADOPTION OF CODE. The Health and Safety Code is adopted to read
as follows:
HEALTH AND SAFETY CODE
Contents
TITLE 1. GENERAL PROVISIONS
Chapter 1. General Provisions
[Chapters 2-10 reserved for expansion]
TITLE 2. HEALTH
SUBTITLE A. TEXAS DEPARTMENT OF HEALTH
Chapter 11. Organization of Texas Department of Health
Chapter 12. Powers and Duties of Texas Department of Health
Chapter 18. Health Department Hospitals and Respiratory Facilities
[Chapters 14-80 reserved for expansion]
SUBTITLE B. TEXAS DEPARTMENT OF HEALTH PROGRAMS
Chapter 81. Primary Health Care
Chapter 82. Maternal and Infant Health Improvement
Chapter 88. Phenylketonuria and Other Heritable Diseases
Chapter 84. Hypothyroidism
Chapter 85. Chronically Ill and Disabled Children's Services
Chapter 86. Special Senses and Communication Disorders
Chapter 87. Abnormal Si->al Curvature in Children
Chapter 88. Pediculosis of Minors
Chapter 89. Children's Outreach Heart Program
Chapter 40. Epilepsy
Chapter 41. Hemophilia
Chapter 42. Kidney Health Care
Chapter 48. Oral Health Improvement
[Chapters 44-60 reserved for expansion]
SUBTITLE C. INDIGENT HEALTH CARE
Chapter 61. Indigent Health Care and Treatment Act
[Chapters 62-80 reserved for expansion]
SUBTITLE D. PREVENTION, CONTROL, AND REPORTS OF DISEASES
2230
Ch. 678, § 1 71st LEGISLATURE-REGULAR SESSION

[Sections 361.258-361.270 reserved for expansion]
SUBCHAPTER I. ENFORCEMENT; ADMINISTRATIVE ORDERS CONCERNING
. IMMINENT AND SUBSTANTIAL ENDANGERMENT
Sec. 361.271. PERSONS RESPONSIBLE FO-R SOLID WASTE
Sec. 361.272. ADMINISTRATIVE ORDERS CONCERNING IMMINENT AND SUB-
STANTIAL ENDANGERMENT
Sec. 361.273. INJUNCTION AS ALTERNATIVE TO ADMINISTRATIVE ORDER
Sec. 361.274. NO PRIOR NOTICE CONCERNING ADMINISTRATIVE ORDER
Sec. 361.275. DEFENSES
Sec. 361.276. APPORTIONMENT OF LIABILITY
Sec. 361.277. JUDGMENT BY STATE AGAINST NONSETTLING PARTY; ACTION
FOR CONTRIBUTION BY NONSETTLING PARTY
Sec. 361.278. LIABILITY OF ENGINEER OR CONTRACTOR
Sec. 361.279. CONTRACTS WITH STATE
Sec. 361.280. REMEDIES CUMULATIVE
[Sections 361.281-361.300 reserved for expansion]
SUBCHAPTER J. ENFORCEMENT; EMERGENCY ORDER;
CORRECTIVE ACTION
Sec. 361.301. EMERGENCY ORDER
Sec. 361.302. ISSUANCE OF ORDER BY COMMISSION
Sec. 361.303. CORRECTIVE ACTION
[Sections 361.304-361.320 reserved for expansion]
SUBCHAPTER K. APPEALS; JOINDER OF PARTIES
Sec. 361.321. APPEALS
Sec. 361.322. APPEAL OF ADMINISTRATIVE ORDER ISSUED UNDER SECTION
361.272; JOINDER OF PARTIES
Sec. 361.323. JOINDER OF PARTIES IN ACTION FILED BY STATE
[Sections 361.324-361.340 reserved for expansion]
SUBCHAPTER L. COST RECOVERY
Sec. 361.341. COST RECOVERY BY STATE
Sec. 361.342. COST RECOVERY BY APPEALING OR CONTESTING PARTY
Sec. 361.343. APPORTIONMENT OF COSTS
Sec. 361.344. COST RECOVERY BY LIABLE PARTY OR THIRD PARTY
Sec. 361.345. CREATION OF RIGHTS

CHAPTER 361. SOLID WASTE DISPOSAL ACT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 361.001. SHORT TITLE. This chapter may be cited as the Solid Waste Disposal
Act. (V.A,C.S. Art. 4477-7, Sec. 1 (part).)
Sec. 361.002. POLICY. It is this state's policy and the purpose of this chapter to
safeguard the health, welfare, and physical property of the people and to protect the
environment by controlling the management of solid waste, including accounting for
hazardous waste that is generated. (V.A.C.S. Art. 4477-7, Sec. 1 (part).)
Sec. 361.003. DEFINITIONS. Unless the context requires a different definition, in
this chapter:
(1) "Apparent recharge zone" means that recharge zone designated on maps pre-
pared or compiled by, and located in the offices of, the commission.
(2) "Board of health" means the Texas Board of Health.
2616
HEALTH A"i:O SAFETY CODE Ch. 678, § 1
t 361.003
(3) "Class I industrial solid waste" means an industrial solid waste or mixture of
industrial solid waste, including hazardous industrial waste, that because of its concen-
tration or physical or chemical characteristics:
(A) is toxic, corrosive, flammable, a strong sensitizer or irritant, or a generator of
sudden pressure by decomposition, heat, or other means; and
(B) poses or may pose a substantial present or potential danger to human health or
the environment if improperly processed, stored, transported, or otherwise managed.
(4) "Commission" means the Texas Water Commission.
(5) "Commissioner" means the commissioner of health.
(6) "Composting" means the controlled biological decomposition of organic solid
waste under aerobic conditions.
(7) "Department" means the Texas Department of Health.
(8) "Disposal" means the discharging, depositing, injecting, dumping, spilling, leak-
ing, or placing of solid waste or hazardous waste, whether containerized or uncontainer-
ized, into or on land or water so that the solid waste or hazardous waste or any
constituent thereof may be emitted into the air, discharged into surface water or
groundwater, or introduced into the environment in any other manner.
(9) "Executive director" means the executive director of the commission.
(10) "Garbage" means solid waste that is putrescible animal and vegetable waste
materials from the handling, preparation, cooking, or consumption of food, including
waste materials from markets, storage facilities, and the handling and sale of produce
and other food products.
(11) "Hazardous waste" means solid waste identified or listed as a hazardous waste
by the administrator of the United States Environmental Protection Agency under the
federal Solid Waste Disposal Act, as amended by the Resource Conservation and
Recovery Act of 1976, as amended (42 U.S.C. Section 6901 et seq.).
(12) "Industrial solid waste" means solid waste resulting from or incidental to a
process of industry or manufacturing, or mining or agricultural operations.
(13) "l..-Ocal government" means:
(A) a county;
(B) a municipality; or
(C) a political subdivision exercising the authority granted under Section 361.165.
(14) "Management" means the systematic control of the activities of generation,
source separation, collection, handling, storage, transportation, processing, treatment,
recovery, or disposal of solid waste.
(15) "Municipal solid ·waste" means solid waste resulting from or incidental to
municipal, community, commercial, institutional, or recreational activities, and includes
garbage, rubbish, ashes, street cleanings, dead animals, abandoned automobiles, and
other solid waste other than industrial solid waste.
(16) "Notice of intent to file an application" means the notice filed under Section
361.063.
(17) "Person" means an individual, corporation, organization, government or govern-
mental subdivision or agency, business trust, partnership, association, or any other
legal entity.
(18) "Person affected" means a person who demonstrates that the person has
suffered or will suffer actual injury or economic damage and, if the person is not a local
government:
(A) is a resident of a county, or a county adjacent or contiguous to the county, in
which a solid waste facility is to be located; or
(B) is doing business or owns land in the county or adjacent or contiguous county.
(19) "Processing" means the extraction of materials from or the transfer, volume
reduction, conversion to energy, or other separation and preparation of solid waste for
2617
Ch. 678, § 1 71st LEGISLATURE-REGULAR SESSION
1361.003
reuse or disposal. The term includes the treatment or neutralization of hazardous
waste designed to change the physical, chemical, or biological character or composition
of a hazardous waste so as to neutralize the waste, recover energy or material from the
waste, render the waste nonhazardous or less hazardous, make it safer to transport,
store, or dispose of, or render it amenable for recovery or storage, or reduce its volume.
The term does not include activitieP. concerning those materials exempted by the
administrator of the United States Environmental Protection Agency under the federal
Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act
of 1976, as amended (42 U.S.C. Section 6901 et seq.), unless the commission or
department determines that regulation of the activity under this chapter is necessary to
protect human health or the environment.
(20) "Radioactive waste" means waste that requires specifi..! licensing under Chapter
401 and the rules adopted by the board of health under that law.
(21) "Release" means any spilling, leaking, pumping, pouring, emitting, emptying,
discharging, escaping, leaching, dumping, or disposing into the environment. The term
does not include:
(A) a release that results in an exposure to a person solely within a workplace,
concerning a claim that the person may assert against the person's employer;
(B) an emission from the engine exhaust of a motor vehicle, rolling stock, aircraft,
vessel, or pipeline pumping station engine;
(C) a release of source, by-product, or special nuclear material from a nuclear
incident, as those terms are defined by the Atomic Energy Act of 1954, as amended
(42 U.S.C. Section 2011 et seq.), if the release is subject to requirements concerning
financial protection established by the Nuclear Regulatory Commission under Section
170 of that Act;
(D) for the purposes of Section 104 of the federal Comprehensive Environmental
Response, Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et seq.), or
other response action, a release of source, by-product, or special nuclear material
from a processing site designated under Section 102(a)(l) or 302(a) of the Uranium
Mill Tailings Radiation Control Act of 1978 (42 U.S.C. Sections 7912 and 7942); and
(E) the normal application of fertilizer.
(22) "Remedial action" means an action consistent with a permanent remedy taken
instead of or in addition to a removal action in the event of a release or threatened
release of a hazardous waste into the environment to prevent or minimize the release of
hazardous waste so that the hazardous waste does not mi~ rate to cause an imminent
and substantial danger to present or future public health .,nd safety or the environ·
ment. The term includes:
(A) actions at the location of the release, including storage, confinement, perimeter
protection using dikes, trenches, or ditches, clay cover, neutralization, cleanup of
released hazardous waste or contaminated materials, recycling or reuPe, diversion,
destruction, segregation of reactive waste, dredging or excavations, repair or replace-
ment of leaking containers, collection of leachate and runoff, on-site treatment or
incineration, provision of alternate water supplies, and any monitoring reasonably
required to assure that those actions protect the public health and safety or the
environment; and
(B) the costs of permanent relocation of residents, businesses, and community
facilities if the administrator of the United States Environmental Protection Agency
or the executive director determines that, alone or in combination with other mea-
sures, the relocation:
(i) is more cost-effective than and environmentally preferable to the transporta·
tion, storage, treatment, destruction, or secure disposition off-site of hazardous
waste; or
(ii) may otherwise be necessary to protect the public health or safety.
(23) "Removal" includes:
(A) cleaning up or removing released hazardous waste from the environment;
2618
HEALTH AND SAFETY CODE Ch. 678, § 1
1381.003
(B) taking necessary action in the event of the threat of release of hazardous waste
into the environment;
(C) taking necessary act.ion to monitor, assess, and evaluate the release or threat of
release of hazardous waste;
(D) disposing of removed material;
(E) erecting· a security fence or other measure to limit access;
(F) providing alternate water supplies, temporary evacuation, and housing for
threatened individuals not otherwise provided for;
(G) acting under Section 104(b) of th~ federal Comprehensive Environmental Re-
sponse, Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et seq.);
(H) providing emergency assistance under the federal Disaster Relief Act of 1974
(42 U.S.C. Section 5121 et seq.); or
(I) taking any other necessary action to prevent, ·,ninimize, or mitigate damage to
the public health and welfare or the environment that may otherwise result from a
release or threat of release.
(24) "Rubbish" means nonputrescible solid waste, excluding ashes, that consists of:
(A) combustible waste materials, including paper, rags, cartons, wood, excelsior,
furniture, rubber, plastics, yard trimmings, leaves, and similar materials; and
(B) noncombustible waste materials, including glass, crockery, tin cans, aluminum
cans, metal furniture, and similar materials that do not burn at ordinary incinerator
temperatures (1,600 to 1,800 degrees Fahrenheit).
(25) "Sanitary landfill" means a controlled area of land on which solid waste is
disposed of in a'!cordance with standards, rules, or orders established by the board of
health or the rummission.
(26) "Sludge" means solid, semisolid, or liquid waste generated from a municipal,
commercial, or industrial wastewater treatment plant, water supply treatment plant, or·
air pollution control facility, excluding the treated effluent from a wastewater treat-
ment plant.
(27) This subdivision expires on delegation of the Resource Conservation and Recov-
ery Act authority to the Railroad Commission of Texas. "Solid waste" means garbage,
rubbish, refuse, sludge from a waste treatment plant, water supply treatment plant, or
air pollution control facility, and other discarded material, including solid, liquid,
semisolid, or contained gaseous material resulting from industrial, municipal, commer-
cial, mining, and agricultural operations and from community and institutional activi-
ties. The term does not include:
(A) solid or dissolved material in domestic sewage, or solid or dissolved material in
irrigation return flows, or industrial discharges subject to regulation by permit issued
under Chapter 26, Water Code;
(B) soil, dirt, rock, sand, and other natural or man-made inert solid materials used
to fill land if the object of the fill is to make the land suitable for the construction of
surface improvements; or
(C) waste materials that result from activities associated with the exploration,
development, or production of oil or gas or geothermal resources and other substance
or material regulated by the Railroad Commission of Texas under Section 91.101,
Natural Resources Code, unless the waste, substance, or material results from
activities associated with gasoline plants, natural gas or natural gas liquids process-
ing plants, pressure maintenance plants, or repressurizing plants and is hazardous
waste as defined by the administrator of the United States Environmental Protection
Agency under the federal Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act, as amended (42 U.S.C. Section 6901 et seq.).
(28) This subdivision is effective on delegation of the Resource Conservation and
Recovery Act authority to the Railroad Commission of Texas. "Solid waste" means
garbage, rubbish, refuse, sludge from a waste treatment plant, water supply treatment
plant, or air pollution control facility, and other discarded material, including solid,
2619
Ch. 678, § 1 71st LEGISLATURE-REGULAR SESSION
1381.003
liquid, semisolid, .or contained gaseous material resulting from industrial, municipal,
commercial, mining, and agricultural operations and from community and institutional
activities. The term does not include:
(A) solid or dissolved material in ,domestic sewage, or solid or dissolved material in
irrigation return flows, or industrial discharges subject to regulation by permit issued
under Chapter 26, Water Code;
(B) soil, dirt, rock, sand, and other natural or man-made inert solid materials used
to fill land if the object of the fill is to make the land suitable for the construction of
surface improvements; or
(C) waste materials that result from activities associated with the exploration,
development, or production of oil or gas or geothermal resources and other substance
or material regulated by the Railroad Commission of Texas under Section 91.101,
Natural Resources Code.
(29) "Solid waste facility" means all contiguous land, including structures, appurte-
nances, and other improvements on the land, used for processing, storing, or disposing
of solid waste. The term includes a publicly or privately owned solid waste facility
consisting of several processing, storage, or disposal operational units such as one or
more landfills, surface impoundments, or a combination of units.
(30) "Solid waste technician" means an individual who is trained in the practical
aspects of the design, operation, and maintenance of a solid waste facility in accordance
with standards, rules, or orders established by the board of health or commission.
(31) "Storage" means the temporary holding of solid waste, after which the solid
waste is processed, disposed of, or stored elsewhere. (V.A.C.S. Art. 4477-7, Sec. 2
(part).) .
[Sections 361.004-361.010 reserved for expansion]

SUBCHAPTER B. POWERS AND DUTIES OF TEXAS DEPARTMENT OF HEALTH
AND TEXAS WATER COMMISSION
Sec. 361.011. DEPARTMENT'S JURISDICTION: MUNICIPAL SOLID WASTE. (a)
The department is responsible for the management of municipal solid waste, excluding
hazardous municipal waste, and shall coordinate municipal solid waste activities, exclud-
ing activities concerning hazardous municipal waste.
(b) The board of health shall guide the department in its mana'gement of municipal solid
waste, excluding hazardous municipal waste.
(c) 'l'he department shall accomplish the purposes of this chapter by controlling all
aspects of the management of municipal solid waste, excluding management of hazardous
municipal waste, by all practical and economically feasible methods consistent with its
powers and duties under this chapter and other law.
(d) The department has the powers and duties specifically prescribed by this chapter
and all other powers necessary or convenient to carry out its responsibilities under this
chapter.
(e) In matters under the department's jurisdiction, the department shall consult with:
(1) the commission concerning water pollution control and water quality aspects; and
(2) the Texas Air Control Board concerning air pollution control and ambient air
quality aspects. (V.A.C.S. Art. 4477-7, Sec. 3(a).) ·
Sec. 361.012. DEPARTMENT'S JURISDICTION: MUNICIPAL SOLID WASTE
AND INDUSTRIAL SOLID WASTE. When both municipal solid waste and industrial
solid waste, except Class I industrial solid waste that is not routinely collected with
municipal solid waste and hazardous waste, are involved in any activity of management of
solid waste, the department has jurisdiction over the activity. (V.A.C.S. Art. 4477-7, Sec.
3(c) (part).) ,,
2620
HEALTH AND SAFETY CODE Ch. 678, § 1
1381.018
Sec. 361.013. SOLID WASTE FACILITY FEE. (a) The department shall charge an
annual fee for each solid waste facility authorized by the department to be operated or
maintained under this chapter.
(b) The board of health shall adopt fees according to a schedule in which the amount of
the fees is reasonably related to one or more of the following factors:
(1) the population served by the facility;
(2) the volume of waste handled by the facility; or
(3) the type and size of the facility.
(c) The board of health shall set the amount of fees under this section and Sections
361.014 and 361.065 to collect enough revenue to meet the expenses of performing the
solid waste management, control, and permit duties of the department.
(d) The fees collected under this section shall be deposited to the credit of the general
revenue fund. (V.A.C.S. Art. 4477-7, Secs. 4(k)(2), (4).)
Sec. 361.014. SOLID WASTE TRANSPORTATION FEE. (a) The department shall
charge an annual fee to transporters of solid waste who are required to register with the
department by rule adopted under this chapter.
(b) The board of health by rule shall adopt fees according to a schedule in which the
amount of the fees is reasonably related to:
(1) the volume or the type of waste transported; or
(2) both the volume and type of waste.
(c) The board of health shall set the amount of the fees under this section and Sections
361.013 and 361.065 to collect enough revenue to meet the expenses of performing the
solid waste management, control, and permit duties of the department. (V.A.C.S. Art.
4477-7, Secs. 4(k)(3), (4) (part).)
Sec. 361.015. DEPARTMENT'S JURISDICTION: RADIOACTIVE WASTE. The de-
partment is the state agency under Chapter 401 that regulates radioactive waste activities
not preemptively regulated by the federal government. (V.A.C.S. Art. 4477-7, Sec. 3(d)
(part).)
Sec. 361.016. MEMORANDUM OF UNDERSTANDING BY BOARD OF HEALTH.
The board of health by rule shall adopt:
(1) any memorandum of understanding between the department and any other state
agency; and
(2) any revision of a memorandum of understanding. (V.A.C.S. Art. 4477-7, Sec.
3(i).)
Sec. 361.017. COMMISSION'S JURISDICTION: INDUSTRIAL SOLID WASTE
AND HAZARDOUS MUNICIPAL WASTE. (a) The commission is responsible for the
management of industrial solid waste and hazardous municipal waste and shall coordinate
industrial solid waste activities and hazardous municipal waste activities.
(b) The commission shall accomplish the purposes of this chapter by controlling all
aspects of the management of industrial solid waste and hazardous municipal waste by all
practical and economically feasible methods consistent with its powers and duties under
this chapter and other law.
(c) The commission has the powers and duties specifically prescribed by this chapter
and all other powers necessary or convenient to carry out its responsibilities under this
chapter.
(d) In matters under the commission's jurisdiction, the commission shall consult with:
(1) the department concerning the public health aspects; and
(2) the Texas Air Control Board concerning the air pollution control and ambient air
quality aspects. (V.A.C.S. Art. 4477-7, Sec. 3(b).)
Sec. 361.018. COMMISSION'S JURISDICTION OVER HAZARDOUS WASTE COM-
PONENTS OF RADIOACTIVE WASTE. (a) The commission has the powers under this
chapter necessary or convenient to carry out its responsibilities concerning the regulation
2621
Ch. 678, § 1 7lst LEGISLATURE-REGULAR SESSION
1381.018
of the management of hazardous waste components of radioactive waste under the
department's jurisdiction.
(b) The commission shall consult with the department concerning regulation and
management under this section.
(c) The commission may not adopt rules or engage in management activities under this
section that conflict with state or federal laws and rules concerning the regulation of
radioactive waste. (V.A.C.S. Art. 4477-7, Sec. 3(d) (part).)
Sec. 361.019. APPROVAL BY APPROPRIATE STATE AGENCY IF MIXING CER·
TAIN WASTES. (a) Class I industrial solid waste and hazardous waste may be accepted in
a municipal solid waste facility if authorized in writing by the department with the
written approval of the commission.
(b) Solid waste under the department's jurisdiction may be accepted in an industrial
solid waste facility if authorized in writing by the commission with the written approval
of the department. (V.A.C.S. Art. 4477-7, Sec. B(c) (part).)
Sec. 361.020. STATE SOLID WASTE PLANS. (a) The department and the commission
are each authorized to develop a state solid waste plan for solid waste under their
respective jurisdictions and the state agencies shall coordinate the solid waste plans.
(b) In developing a solid waste plan for solid waste under its jurisdiction, the depart-
ment shall consider the preference of municipal solid waste management methods under
Section 36!.022.
(c) Before the department or the commission adopts its solid waste plan or makes
significant amendments to the plan, the Texas Air Control Board must have the opportu-
nity to comment and make recommendations on the proposed plan or amendments and
shall be given such reasonable time to do so as specified by the agency. (V.A.C.S. Art.
4477-7, Sec. 4(b).)
Sec. 361.021. INTERAGENCY COORDINATION COUNCIL. (a) The interagency
coordination council shall coordinate the activities of its member agencies concerning the
regulation of solid waste and solid waste management facilities and the enforcement of
the applicable solid waste laws and rules.
(b) The council is composed of the executive head, or the executive head's designated
representative, of the following agencies:
(1) the commission;
(2) the department;
(3) the Texas Air Control Board; and
(4) the Railroad Commission of Texas.
(c) The commission's representative is the council chairman.
(d) The council shall meet at least quarterly to review the solid waste regulatory and
enforcement activities of the previous quarter and coordinate planned activities in the
interest of efficiency and cooperation, including:
(1) the consideration of the use of waste exchange programs;
(2) the establishment of a clearinghouse for scientific and engineering information
concerning hazardous waste management;
(3) the coordination of hazardous waste research and development activities;
(4) the coordination and development of consistent agency rules relevant to the
regulation of hazardous waste activities;
(5) the evaluation of means to assist small quantity hazardous waste generators and
~ffected communities in the effective and safe management an.:: tiisposal of their
regulated waste;
(6) the assessment of any preapplication public interactions with applicants to evalu-
ate their effectiveness and to consider developing rules to incorporate those activities if
appropriate;
2622
HEALTH AND SAFETY CODE Ch. 678, § 1
1381.023
(7) the consideration of the use of incentives to er.courage waste minimization and
reusing and recycling waste, and the use of resource recovery and detoxification
equipment; and '
(8) the evaluation of the feasibility of household hazardous waste collection and
disposal programs.
(e) The chairman shall prepare a report summarizing each quarterly meeting. The
report shall be submitted for approval by a majority of agencies represented on the
council. The report is a public document. (V.A.C.S. Art. 4477-7, Secs. 8(g)(l), (2).)
Sec. 861.022. PUBLIC POLICY CONCERNING MUNICIPAL SOLID WASTE AND
SLUDGE. (a) To protect the public health and environment, it is the state's public policy
that, in generating, treating, storing, and disposing of municipal solid waste or municipal
sludge, the methods listed under Subsections (b) and (c) are preferred to the extent
economically and technologically feasible and considering the appropriateness of the
method to the type of solid waste material or sludge generated, treated, disposed of, or
stored.
(b) For municipal solid waste, not including sludge, the following methods are pre-
ferred, in the order listed:
(1) minimization of waste produ1..tion;
(2) reuse or recycling of waste;
(8) treatment to destroy or reprocess waste to recover energy or other beneficial
resources if the treatment does not threaten public health, safety, or the environment;
or
(4) land disposal.
(c) For municipal sludge, the following methods are preferred, in the order listed:
(1) minimization of sludge production and concentrations of heavy metals and other
toxins in sludge;
(2) treatment of sludge to reduce pathogens and recover energy, produce beneficial
by-products, or reduce the quantity of sludge;
(8) marketing and distribution of sludge and sludge products if the marketing and
distribution do not threaten public health, safety, or the environment;
(4) applying sludge to land for beneficial use;
(5) land treatment; or
(6) landfilling.
(d) In adopting rules to implement public policy concerning municipal solid waste
management, the board of health shall consider the preference of municipal solid waste
management methods under this section. (V.A.C.S. Art. 4477-7, Secs. 8(e)(8), (4); 4(c)
(part).)
Sec. 861.028. PUBLIC POLICY CONCERNING HAZARDOUS WASTE. (a) To pro-
tect the public health and environment, it is the state's public policy that, in generating,
treating, storing, and disposing of hazardous waste, the following methods are preferred
to the extent economically and technologically feasible, in the order listed:
(1) minimization of waste production;
(2) reuse or recycling of waste, or both;
(8) treatment to destroy hazardous characteristics;
(4) treatment to reduce hazardous characteristics;
(5) underground injection; and
(6) land disposal.
(b) Under Subsection (a)(8), on-site destruction is preferred, but it shall be evaluated in
the context of other relevant factors such as transportation hazard, distribution of risk,
quality of destruction, operator capability, and site suitability. (V.A.C.S. Art. 4477-7,
Secs. 8(e)(l), (2).)
2623
Ch. 678, § 1 71st LEGISLATURE-REGULAR SESSION
I 381.024
Sec. 361.024. RULES AND STANDARDS. (a) The board of health and the commission
may each adopt rules consistent with this chapter and establish minimum standards of
operation for the management and control of the solid waste under their respective
jurisdictions under this chapter.
(b) In developing rules concerning hazardous waste, the commission shall consult with
the State Soil and Water Conservation Board, the Bureau of Economic Geology of The
University of Texas at Austin, and other appropriate state sources.
(c) The minimum standards set by the commission for on-site storage of hazardous
waste must be at least the minimum standards set by the manufacturer of the chemical.
(d) Rules adopted by the commission under Section 361.036 and Sections
361.097-361.108 for solid waste facilities may differ according to the type or hazard of
hazardous waste managed and the type of waste management method used. (V.A.C.S.
Art. 4477-7, Sec. 4(c) (part).)
· Sec. 361.025. EXEMPT ACTIVITIES. (a) The commission and the Railroad Commis·
sion of Texas shall jointly prepare an exclusive list of activities that are associated with oil
and gas exploration, development, and production and are therefore exempt from regula·
tion under this chapter.
(b) 'lhe list shall be adopted by rule and amended as necessary. (V.A.C.S. Art. 4477-7,
Sec. 3(f) (part).)
Sec. 361.026. ASSISTANCE PROVIDED BY DEPARTMENT AND COMMISSION.
(a) The department and the commission may individually or jointly:
(1) provide educational, advisory, and technical services concerning solid waste
management to other state agencies, regional planning agencies, local governments,
special districts, institutions, and individuals; and
(2) assist other state agencies, regional planning agencies, local governments, special
districts, and institutions in acquiring federal grants for:
(A) the development of solid waste facilities and management programs; and
(B) research to improve solid waste management.
(b) The department or the commission individually may engage in the programs and
activities under this section only as the participation by it concerns the management and
control of the solid waste under its jurisdiction.
(c) If the department and the commission do not participate jointly, each shall coor·
dinate efforts undertaken individually so that separate but similar programs and activities
are compatible. (V.A.C.S. Art. 4477-7, Sec. 4(h) (part).)
Sec. 361.027. TRAINING OF SOLID WASTE TECHNICIANS. (a) The department
and the commission may each:
(1) develop a program to train solid waste technicians to improve the competency of
those technicians; and
(2) issu~ letters of competency.
(b) The owner or operator of a solid waste facility is encouraged to employ as site
manager a solid waste technician holding a letter of competency from the appropriate
agency.
(c) The department and the commission may each:
(1) prescribe standards of training required for the program;
(2) determine the duration of the letter of competency;
(3) award one or more categories of letters of competency with each category
reflecting a different degree of training or skill;
(4) require a reasonable, nonrefundable fee, in an amount determined from time to
time. by the agency, to be paid by participants, deposited to the credit of the general
revenue fund, and used to administer the program;
(5) extend or renew letters of competency issued by the agency; and
2624
HEALTH AND SAFETY CODE Ch. 678, § 1
1381.031
(6) withdraw a letter of competency for good cause, which may include a violation of
this chapter or a rule of the agency concerning the technician's duties and responsibili-
ties. (V.A.C.S. Art. 4477-7, Sec. 4(g).)
Sec. 361.028. INDUSTRIAL SOLID AND HAZARDOUS WASTE MATERIALS EX·
CHANGE. (a) The commission shall establish an industrial solid and hazardous waste
materials exchange that provides for the exchange, between interested persons, of
information concerning:
(1) particular quantities of industrial solid or hazardous waste available in this state
for recovery; .
(2) persons interested in acquiring certain types of industrial solid or hazardous
waste for purposes of recovery; and
(3) methods for the treatment and recovery of industrbl solid or hazardous waste.
(b) The industrial solid and hazardous waste materials exchange may be operated under
one or more reciprocity agreements providing for the exchange of information described
by Subsection (a) for similar information from a program operated in another state.
(c) The commission may ~1ntract for a private person or public entity to establish or
operate the industrial solid and hazardous waste materials exchange.
(d) The commission may prescribe rules concerning the establishment and operation of
the industrial solid and hazardous waste exchange, including the setting of a necessary
subscription fee to offset the cost of participation in the program.
(e) The commission may seek grants and contract support from federal and other
sources to the extent possible and may accept gifts to support its purposes and programs.
(V.A.C.S. Art. 4477-7, Sec. 4A, as added by Ch. 139, Acts 70th Leg., Reg. Sess., 1987.)
Sec. 361.029. COLLECTION AND DISPOSAL OF HOUSEHOLD MATERIALS
THAT COULD BE CLASSIFIED AS HAZARDOUS WASTE. (a) The board of health and
the commission shall provide by rule for interested persons to engage in activities that
involve the collection and disposal of household materials that could be classified as
hazardous waste.
(b) The rules must specify the necessary requirements concerning the training of
persons involved in the collection and disposal of those household materials.
(c) A person is not liable for damages as a result of any act or omission in the course of
advertising, promoting, or distributing educational materials concerning the collection or
disposal of those household materials in accordance with the rules. This subsection does
not preclude liability for damages as a result of gross negligence of or intentional
misconduct by the person. (V.A.C.S. Art. 4477-7, Sec. 4(n).)
Sec. 361.030. FEDERAL FUNDS. The department or commission may individually or
jointly accept funds from the federal government for purposes concerning solid waste
management and spend money received from the federal government for those purposes
in the manner prescribed by law and in accordance with agreements as are necessary and
appropriate between the federal government and the agency. (V.A.C.S. Art. 4477-7, Sec.
4(h) (part).)
Sec. 361.031. FINANCIAL ASSISTANCE TO LOCAL GOVERNMENTS. (a)-The de-
partment and the commission may administer and spend state funds provided to them by
legislative appropriations, or otherwise, to make grants to local governments for:
(1) solid waste planning;
(2) installation of solid waste facilities; and
(3) administration of solid waste programs.
(b) The grants made under this chapter shall be distributed in a manner determined by
the state agency to which the appropriation is made.
(c) The amount of financial assistance granted by the state through the department or
commission to a local government under this chapter must be matched by local govern·
ment funds at least in equal amounts. (V.A.C.S. Art. 4477-7, Sec. 4(i).)
2625
Ch. 678, § 1 71st LEGISLATURE-REGULAR SESSION
1361.032
Sec. 361.032. INSPECTIONS; RIGHT OF ENTRY. (a) The department and the com-
mission are each authorized to inspect and approve solid waste facilities used or proposed
to be used to store, process, or dispose of the solid waste under the agency's jurisdiction.
(b) Agents or employees of the department, the commission, or local governments have
the right to enter at any reasonable time public or private property in the govornmental
entity's jurisdiction, including a municipality's extraterritorial jurisdiction, to inspect and
investigate conditions concerning solid waste management and control.
(c) Agents or employees may not enter private property with management in residence
without notifying the management, or the person in charge at the time, of their presence
and presenting proper credentials.
(d) Agents or employees inspecting an establishment shall observe the establishment's
rules on safety, internal security, and fire protection. (V.A.C.S. Art. 4477-7, Secs. 4(d),
7(a).)
Sec. 361.033. INSPECTIONS REQUIRED BY ENVIRONMENTAL PROTECTION
AGENCY. (a) The commission shall inspect regulated hazardous waste management and
disposal facilities periodically as required by the United States Environmental Protection
Agency under the federal Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act of 1976, as amended (42 U.S.C. Section 6901 et seq.).
(b) In supplementing the inspections under Subsection (a), the commission shall give
priority to inspecting and reinspecting those facilities, including generators, considered
most likely to be in noncompliance or most likely to pose an environmental or public
health threat, regardless of whether the facilities are characterized as major or non-major
facilities.
(c) The commission may randomly perform Jess comprehensive checks of facilities to
supplement the more comprehensive inspections required by the United States Environ-
mental Protection Agency. (V.A.C.S. Art. 4477-7, Sec. 7(c).)
Sec. 361.034. REPORTS. (a) The commission shall submit a report to the presiding
officers of the legislature and the governor not later than January 1 of each odd-num-
bered year. The report must include:
(1) a summary of a performance report of the imposed hazardous waste permit and
disposal fees, if the fees are approved by the legislature, and related activities to
determine the appropriateness of the fee structure;
(2) an evaluation of progress made in accomplishing the state's public policy concern-
ing the preference of waste management methods under Section 361.023; and
(3) projections for three years from the due date of the report of the volume of waste
by type of waste, disposition of waste, and remaining waste disposal capacity.
(b) To develop the reports required under Subsection (a), the commission shall adopt
rules requiring a person who generates, stores, treats, or disposes of hazardous waste to
submit annually to the commission a report detailing projections of waste volume,
disposition, and remaining capacity, concerning each facility owned or operated by the
person. The report required under this subsection shall be submitted to the commission
by March 1 of each year. (V.A.C.S. Art. 4477-7, Sec. 3(h) (part).)
Sec. 361.035. RECORDS AND REPORTS; DISPOSAL OF HAZARDOUS WASTE. (a)
The commission by rule shall require operators of solid waste facilities for disposal of
hazardous waste to maintain records and to submit to the commission reports necessary
for the commission to determine the amount of hazardous waste disposal.
(b) The commission by rule shall establish the date on which a report required by this
section is to be submitted. (V.A.C.S. Art. 4477-7, Sec. 13a.)
Sec. 36~.036. RECORDS AND MANIFESTS REQUIRED; CLASS I INDUSTRIAL
SOLID WASTE OR HAZARDOUS WASTE. The commission by rule shall require a
person who generates, transports, processes, stores, or disposes of Class I industrial solid
waste or hazardous waste to provide recordkeeping and use a manifest or other appropri-
ate system to assure that the waste is transported to a processing, storage, or disposal
facility permitted or otherwise authorized for that purpose. (V.A.C.S. Art. 4477-7, Sec.
4(c) (part).)
2626
HEALTH AND SAFETY CODE Ch. 678, § 1
1361.062
Sec. 861.087. ACCESS TO HAZARDOUS WASTE RECORDS. (a) Authorized agents
or employees of the commission have access to and may examine and copy during regular
business hours any records pertaining to hazardous waste management and control.
(b) Except as provided by this subsection, records copied under Subsection (a) are public
records. If the owner of the records shows to the satisfaction of the executive director
that the records would divulge trade secrets if made public, the commission shall consider
the copied records confidential.
(c) Subsection (b) does not require the commission to consider the composition or
characteristics of solid waste being processed, stored, disposed of, or otherwise handled to
be held confidential. (V.A.C.S. Art. 4477-7, Secs. 7(b), (d).)
Sec. 861.088. ANNUAL INSPECTION REPORT. (a) In January of each year, the
commission shall publish an annual inspection report that:
(1) summarizes the commission's inspection strategy and the results of inspections
conducted during the previous fiscal year; and
(2) lists each hazardous waste treatment, storage, and disposal facility not inspected.
(b) The report must identify each hazardous waste facility inspected and include a list
of:
(1) each facility that is in compliance with hazardous waste regulations, including
each facility with an exemplary record of compliance over the preceding three years;
(2) each facility that has only minor or clerical violations; and
(8) each facility that has substantive, nonclerical violations, including each facility
that has been adjudicated during the preceding three years to have committed substan-
tive, nonclerical violations resulting in an actual release of hazardous waste that
presented an imminent and substantial endangerment to the pubJir. health and safety or
the environment.
(c) The report must identify the substantive, nonclerical violations and either summa-
rize correcti\'e actions or describe the status of unNsolved violations.
(d) The report shall be submitted to the governor, lieutenant governor, and speaker of
th~ house. The commission shall provide notice of the report's availability by publishing
notice in the Texas Register. (V.A.C.S. Art. 4477-7, Secs. 7(e), (f), (g).)
Sec. 861.089. CONSTRUCTION OF OTHER LAWS. Except as specifically provided
by this chapter, this chapter does not diminish or limit the authority of the department,
the commission, the Texas Air Control Board, or a local government in performing the
powers, functions, and duties vested in those governmental entities by other law.
(V.A.C.S. Art. 4477-7, Sec. 14.)

[Sections 861.040-861.060 reserved for expansion]

SUBCHAPTER C. PERMITS
Sec. 861.061. PERMITS; SOLID WASTE FACILITY. Except as provided by Section
861.090 with respect to certain industrial solid waste, the department and the commission
may each require and issue permits authorizing and governing the construction, opera-
tion, and maintenance of the solid waste facilities used to store,_l?rocess, or dispose of the
solid waste over which it has jurisdiction under this chapter. (V.A.C.S. Art. 4477-7, Sec.
4(e) (part).)
Sec. 861.062. COMPATIBILITY WITH COUNTY'S PLAN. (a) Before the department
issues a permit to construct, operate, or maintain a solid waste facility to process, store,
or dispose of solid waste in a county that has a local solid waste management plan
approved by the board of health under Chapter 868 (Comprehensive Municipal Solid
Waste Management, Resource Recovery, and Conservation Act), the department must
consider whether the solid waste facility and the proposed site for the facility are
compatible with the county'n approved local solid waste management plan.
(b) Until a local solid waste management plan is approved by the board of health and
adopted by rule, the department may not consider the plan and its contents in the review
of an application for a solid waste facility permit. (V.A.C.S. Art. 4477-7, Sec. 4(o).)
... 2627
Ch. 678, § 1 71st LEGISLATURE-REGULAR SESSION
1381.063
Sec. 361.063. PREAPPLICATION J,OCAL REVIEW COMMITTEE PROCESS. (a)
The department and the commission shall encourage applicants for solid waste facilities
under the jurisdiction of the department or for hazardous waste management facilities to
enter into agreements with affected persons to resolve issues of concern. During this
process, persons are encouraged to identify issues of concern and work with the applicant
to resolve those issues.
(b) The l\greement shall be made through participation in a local review committee
process that includes a good faith effort to identify issues of concern, describe them to
the applicant, and attempt to resolve those issues before the hearing on the permit
application begins. A person is not required to be a local review committee member to
participate in a local review committee process.
(c) If an applicant decides to participate in a local review committee process, the
applicant must file with the department or commission, as appropriate, a notice of intent
to file an application, setting forth the proposed location and type of hazardous waste
management facility. A copy of the notice shall be delivered to the county judge of the
county in which the facility is to be located. In addition, if the proposed facility is to be
located in a municipality or the extraterritorial jurisdiction of a municipality, a copy of the
notice shall be delivered to the mayor of the municipality. The filing of the notice with
the department or commission, as appropriate, initiates the preapplication review process.
(d) Not later than the 15th day after the date the notice of intent is filed under
Subsection (c), the local review committee shall be appointed. The board of health and
commission shall adopt rules concerning the composition and appointment of a local
review committee.
(e) The local review committee shall meet not later than the 21st day after the date the
notice of intent is filed under Subsection (c). The preapplication review process must
continue for 90 days unless the process is shortened or lengthened by agreement between
the applicant and the local review committee.
(f) The commission, as appropriate, may award to a person, other than the applicant,
who has participated in the local review committee process under this section concerning
an application for a hazardous waste management facility all or a part of the person's
reasonable costs for technical studies and reports and expert witnesses associated with
the presentation of evidence at the public hearing concerning issues that are raised by the
person in the local review committee process and that are unresolved at the beginning of
the hearing on the permit application. The total amount of awards granted to all persons
under this subsection concerning an application may not exceed $25,000. In determining
the appropriateness of the award, the commission shall consider whether:
(1) the evidence or analysis provided by the studies, reports, and witnesses is
significant to the evaluation of the application;
(2) the evidence or analysis would otherwise not have been provided in the proceed-
ing; and
(3) the local review committee was established in accordance with commission rules.
(g) Except as provided by Subsection (k), if an applicant has not entered into a local
review committee process, the commission, in determining the appropriateness of an
award of costs under Subsection (f), shall waive any requirement that the person affected
has participated in a local review committee process.
(h) Except as provided by Subsection (k), costs awarded by the commission under
Subsection (f) are assessed against the applicant. Rules shall be adopted for the award of
those costs. Judicial review of an award of costs is under the substantial evidence rule as
provided by the Administrative Procedure and Texas Register Act (Article 6252-13a,
Vernon's Texas Civil Statutes).
(i) A local review committee shall:
(1) interact with the applicant in a structured manner during the preapplication
review stage of the permitting process and, if necessary, during the technical review
stage of the permitting process to raise and attempt to resolve both technical and
nontechnical issues of concern; and
2628
HEALTH AND SAFETY CODE Ch. 678, § 1
1381.067
(2) produce a fact-finding report docu~enting resolved and unresolved issues and
unanswered ques~ions.
(j) The appli201a-l; 3201a-2;
3201a-2.1; 320la-3; 3201a-4; 3955; 3956; 3957; 3958; 3959; 3959a; 3960; 3961; 3962;
3963; 3964; 3965; 3966; 3967; 3968; 3969; 3970; 3971; 3972; 3972.l; 3972.2; 3972.3;
3972b; 3972c; 4414b; 4414c; 4418f-l; 4418g-2; 4418g-3; 4418h; 4419b-l; 4419b-1.5;
4419b-2; 4419c; 4419g; 4419h; 4420a; 4420b; 4421; 4436; 4436a-2; 4436a-3; 4436a-4;
4436b; 4437; 4437a; 4437b; 4437c; 4437c-1; 4437c-2; 4437d; 4437e; 4437e-1;
4437e-2; 4437e-3; 4437f; 4437f-1; 4437f-2; 4437f-3; 4437g; 4437h; 4438a; 4438b;
4438c; 4438d; 4438e; 4438f; 4442a; 4442c; 4443a; 4446; 4447d; 4447d-1; 4447d-2;
4447e; 4447e-1; 4447e-2; 4447f; 4447i; 4447j; 4447k; 44471; 4447n; 44470; 44470-l;
4447p; 4447q; 4447r; 4447s; 4447t; 4447u; 4447v; 4447w; 4447x; 4447y; 4474; 4475;
4476; 4476-la; 4476-5; 4476-5a; 4476-5b; 4476-5d; 4476-5e; 4476-5f; 4476-5g;
4476-6b; 4476-7; 4476-8; 4476-9; 4476-10; 4476-lOb; 4476-lOc; 4476-11; 4476-18;
4476-13a; 4476-14; 4476-15; 4476-15a; 4476-15b; 4476-15d; 4476-16; 4476a; 4477;
4477c; 4477e; 4477f; 4477-1; 4477-lc; 4477-2; 4477-5; 4477-5a; 4477-5b; 4477-6;
4477-6a; 4477-6b; 4477-7; 4477-7a; 4477-7c; 4477-7d; 4477-7e, as added by Chapters
162, 406, and 810, Ar.ts of the 70th Leg., R.S., 1987; 4477-7f; 4477-8; 4477-Sa;
4477-9a, Articles II and III and Section l .01; 4477-9b; 4477-10; 4477-11; 4477-12;
4477-20; 4477-30; 4477-40; 4477-41; 4477-50; 4477-60; 4477-70; 4477-80; 4478;
4478a; 4479; 4480; 4481; 4482; 4483; 4484; 4485; 4486; 4487; 4488; 4489; 4490;
4491; 4492; 4493; 4493a; 4494; 4494a; 4494b; 4494c; 4494c-l; 4494d; 4494e; 4494f;
4494g; 4494h; 4494i; 4494i-1; 4494j; 4494k; 44941; 4494m; 4494m-1; 4494n; 4494n-1;
4494n-2; 4494n-3; 44940; 4494p; 4494r; 4494r-1; 4494r-2; 4494r-2.1; 4494r-3;
4494r-4; 4494r-5; 4494s; 4494~ 4512.8; 4583; 4583a; 4584; 4585; 4585A; 4586; 4587; 4589;
4590; 4590.1; 4590-2; 4590-4; 4590-5; 4590-6; 4590f; 4590f-1; 4590h; 4596d; 5182b;
5182c; 5221c; 556lcc; 556lc-1; 556lc-2; 5561c-2a; 5561c-3; 6145a; 6145b; 6145c; 8876;
9002; 9013; 9201; 9202; and 9203.
(2) Subchapter D, Chapter 76, Parks and Wildlife Code.
(3) Chapter 301, Acts of the 70th Legislature, Re~lar Session, 1987 (designated by
Vernon's Texas Session Law Service as Article 1528,J-1, but printed in Vernon's Texas
Civil Statutes as Article 1527j-1); and Section 9, Chapter 236, Acts of the 70th
Legislature, Regular Session, 1987.
SECTION 14. LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE. This Act
is enacted under Article III, Section 43, of the Texas Constitution. This is intended as a
recodification only, and no substantive change in the Jaw is intended by this Act.
SECTION 15. EFFECTIVE DATE. This Act takes effect September 1, 1989.
SECTION 16. EMERGENCY. The importance of this legislation and the crowded
condition of the calendars in both houses create an emergency and an imperative public
necessity that the constitutional rule requiring bills to be read on three several days in
each house be suspended, and this rule 1s hereby suspended.
Passed by the House on April 27, 1989, by a non-record vote; and that the House
concurred In Senate amendments to H.B. No. 2136 on May 18, 1989, by a
non-record vote; passed by the Senate, with amendments, on May 16, 1989, by a
viva-voce vote.
Approved June 14, 1989.
Effective Sept. 1, 1989.
3165
TAB 2
Ch. 702, § 1 71et LEGISLATURE-REGULAR SESSION

(5) the Texas Juvenile Probation Commission;
(6) the Texas Department of Human Services;
(7) the Texas Department of Corrections;
(8) the Texas Employment Commission;
(9) the Texas Commission on Alcohol and Drug Abuse,·
(10) the Texas Department of Mental Health and Mental Retardation,· and
(11) the Texas Department of Health.
SECTION 2. The importance of this legislation and the crowded condition of the
calendars in both ho

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/4051463. Public record. Not legal advice.
