Citizens Against the Landfill in Hempstead Michael McCall Wayne Knox And the City of Hempstead v. Texas Commission on Environmental Quality and Pintail Landfill, L.L.C.

ACCEPTED 03-14-00718-CV 4925658 THIRD COURT OF APPEALS AUSTIN, TEXAS 4/16/2015 7:57:20 PM JEFFREY D. KYLE CLERK NO. 03-14-00718-CV IN THE COURT OF APPEALS FILED IN 3rd COURT OF APPEALS FOR THE THIRD DISTRICT OF TEXAS, AUSTIN, TEXAS AT AUSTIN, TEXAS 4/16/2015 7:57:20 PM JEFFREY D. KYLE Clerk CITIZENS AGAINST THE LANDFILL IN HEMPSTEAD; MICHAEL MCCALL; WAYNE KNOX; AND THE CITY OF HEMPSTEAD, Plaintiffs/Appellants, v. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY AND PINTAIL LANDFILL, L.L.C., Defendants/Appellees. From 201st District Court, Travis County, Texas APPELLANTS CITIZENS AGAINST THE LANDFILL IN HEMPSTEAD, MICHAEL MCCALL, WAYNE KNOX, AND CITY OF HEMPSTEAD’S REPLY BRIEF KELLY HART & HALLMAN LLP HANCE SCARBOROUGH, LLP Monica M. Jacobs Terry L. Scarborough State Bar No. 24007433 State Bar No. 17716000 Diana L. Nichols Michael L. Woodward State Bar No. 00784682 State Bar No. 21979300 301 Congress Avenue, Suite 2000 V. Blayre Pena Austin, TX 78701 State Bar No. 24050372 Telephone: (512) 495-6400 Wesley P. McGuffey Facsimile: (512) 495-6401 State Bar No. 24088023 400 W. 15th Street, Ste. 950 ATTORNEYS FOR THE Austin, TX 78701 CITY OF HEMPSTEAD Telephone: (512) 479-8888 Facsimile: (512) 482-6891 ATTORNEYS FOR APPELLANTS CITIZENS AGAINST THE LANDFILL IN HEMPSTEAD, MICHAEL MCCALL, AND WAYNE KNOX ORAL ARGUMENT REQUESTED TABLE OF CONTENTS TABLE OF CONTENTS ……………………………………………..……………2 INDEX OF APPENDICIES………………………………………………………...3 INDEX OF AUTHORITIES ……………………………………………………….4 ARGUMENT ………………………………………………………………………8 THE RULE INTERPRETATIONS ADVANCED BY APPELLEES IMPERMISSIBLY CONTRADICTS THE PLAIN LANGUAGE OF THE RULES THEY CLAIM TO INTERPRET.....................................................8 A. Straight From the Horse’s Mouth: A Concise Statement of Appellants’ Argument……………………………………………………………..9 B. A Requirement Must Require Something: Appellees Impermissibly Interpret 30 Texas Administrative Code § 330.9(f) As Applying to Any Transfer Station/Waste Separation Facility Only If Its Requirements Are Met……………………………………………………………..11 C. Appellees Impermissibly Interpret 30 Texas Administrative Code § 330.9(b)(3), Arguing Anything Besides the Clear, Unambiguous Language of the Rule..……………………………………………….14 1. TCEQ’s Argument on Rule 330.9(b)(3) Misses the Point, Misconstrues the Argument, and Exudes Misunderstanding.…16 2. It’s Not a Sasquatch: A Generally Applicable Permit Requirement Does Exist………………………………………19 3. Rules are Rules: TCEQ Does Not Have the Authority to Violate or Otherwise Ignore Its Rules.………………………………..22 4. Don’t Believe the Hype: The Transfer Station/Materials Recovery Facility Does Not and Could Not Qualify for a Permit Exemption Under Rule 328, Because a Waste Stream Is Not Recyclable Material…………………………………………..24 2 5. Not All Type V Facilities Are Equal. Transfer Facility ≠ Incinerator ≠ Material Recovery Facility……………………26 THE TCEQ DENIED AFFECTED PERSONS DUE PROCESS BY AUTHORIZING THE FACILITY THROUGH REGISTRATION RATHER THAN A PERMIT.………………………………………………………..28 ALWAYS KEEP YOUR WORD: THE REGISTRATION SHOULD BE REVERSED BECAUSE TCEQ ALLOWED AN EXCESSIVE NUMBER OF NOTICES OF DEFICIENCY WELL BEYOND ITS PUBLICLY PRONOUNCED POLICY.………………………………………………...30 PRAYER ………………………………………………………………………….35 CERTIFICATE OF COMPLIANCE ……………………………………………..36 CERTIFICATE OF SERVICE ……………………………………………………37 INDEX OF APPENDICIES Appendix A Notices of Deficiencies Appendix B MSW Permit 2382 MSW Permit 2379 3 INDEX OF AUTHORITIES Statutes Texas Health and Safety Code § 361 ………………………………………………………………………19 § 361.061..……………………………………………..…………………..19 § 361.086(a)….……………………….………………..………………….19 § 361.0861……………………………………………..……………….13, 20 § 361.088……………………………………………………...………..29, 30 § 361.0665……………………………………………………………...29, 30 § 361.0666……………………………………………………………...29, 30 § 361.067…………………………………………………………….…29, 30 § 361.079……………………………………………………………….29, 30 § 361.0791………………………………………………….………..…29, 30 § 361.081……………………………………………………………….29, 30 §361.092………………………………………………………………..14, 20 § 361.111(a)(4)……………………………………………………………..13 § 361.111(a)(1)-(4)…………………………………………………………20 Rules 30 Texas Administrative Code § 55.201(b)(4)………………………………………………………………29 4 § 55.203…………………………………………………………………….29 § 80.109(a)………………………………………………………………….29 § 80.109(b)(5)………………………………………………………………29 § 312………………………………………………………………………..23 § 328………………………………………………………………………..24 § 328.2(3)…………………………………………………………………...26 § 328.2(6)…………………………………………………………………...26 § 328.4……………………………………………………………………...25 § 328.4(d) ………………………………………………………………24, 26 § 330………………………………………………………………………..24 § 330(88)……………………………………………………………………19 § 330.3……………………………………………………………………...18 § 330.3(a) …………………………………………………………………..18 § 330.3(117)……………………………………………………………..…17 § 330.3(122) ………………………………………………………………..25 § 330.3(157)…..…………………...……………………………..8, 15, 18, 27 § 330.3(174)……………………………………………………...8, 12, 15, 18 § 330.5(a)(3)………………………………………………………………..27 § 330.7……………………………………………………………………...25 § 330.7(a)….………………………...……………….........................8, 20, 21 5 § 330.9………………………………………………….11, 13, 18, 20, 21, 25 § 330.9(b) ………………………………………………………………21, 27 § 330.9(b)(3) …………………………………………8, 9, 14, 15, 16, 17, 19 § 330.9(c) …………………………………………………………………..13 § 330.9(f) …………………………………………………8, 10, 11, 12, 13, 14 § 330.9(f)(1) & (2) …………………………………………………………10 § 330.9(j) …………………………………………………………………..13 § 330.9(b)–(p)………….……………………………….…………………..21 § 330.11…………………………………………………………………….20 § 330.13…………………………………………………………………….20 § 330.25…………………………………………………………………….20 § 332………………………………………………………………………..24 Cases CenterPoint Energy Houston Elect., LLC v. PUC 408 S.W. 3d 910 (Tex. App. – Austin 2013, pet denied)…………....8, 13, 22 County of Dallas v. Wiland, 216 S.W.3d 344, 347 (Tex. 2007)…………………………………….........29 Alton McDaniel v. Texas Natural Resource Conservation Commission 982 S.W.2d 650; 1998 (Tex. App. – Austin 1998, pet. denied)…………23, 24 PUC v. Gulf States Utilities Co. 809 S.W. 2d 201 (Tex. 1991) ………………………………………..8, 13, 22 Rodriguez v. Service Lloyds Ins. Co., 997 S.W.2d 248, 254 (Tex. 1999)………………………………………….18 6 Tex. Comm’n on Envtl. Quality v. Kelsoe 286 S.W.3d 91 (Tex. App. – Austin 2009……………….…………………32 Tex. Dept. of Transp.. V. Needham S.W. 3d 314, 318 (Tex. 2002)………………………………………………18 TGS-NOPEC Geophysical Co. v. Combs 340 S.W.3d 432, 439 (Tex. 2011) …………………………………………..18 Other Authority 31 Tex. Reg. 2506…………………………………………………………11, 14, 21 31 Tex. Reg. 2548……..………………………………………………………20, 21 7 TO THE HONORABLE COURT OF APPEALS: Appellants Citizens Against the Landfill in Hempstead (“CALH”) and City of Hempstead (“City”) file this Reply Brief of Appellants, and in support, state as follows: ARGUMENT I. THE RULE INTERPRETATIONS ADVANCED BY APPELLEES IMPERMISSIBLY CONTRADICT THE PLAIN LANGUAGE OF THE RULES THEY CLAIM TO INTERPRET. At the heart of this matter are four (or five) TCEQ rules.1 In their briefs, Appellees present their interpretations of two TCEQ registration rules at issue, 30 Texas Administrative Code § 330.9(b)(3) and 30 Texas Administrative Code § 330.9(f). Appellees’ interpretations are impermissible because they contravene the plain language of the rule.2 Further, Appellees’ interpretations are impermissible because they are plainly erroneous and inconsistent with the regulation or its underlying statute. Largely avoiding the clear, unambiguous language of the applicable rules, Appellees attempt to support their impermissible interpretations by arguing a 1 30 Tex. Admin. Code § 330.9(b)(3) (authorizing registration for certain transfer stations); 30 Tex. Admin. Code § 330.9(f) (authorizing registration for certain transfer stations/material recovery facilities); 30 Tex. Admin. Code § 330.3(157) (defining transfer station); 30 Tex. Admin. Code § 330.3(174) (defining waste-separation/recycling facility/material recovery facility); 30 Tex. Admin. Code § 330.7(a) (relating to and titled “permit required”). 2 When an agency fails to follow the clear, unambiguous language of its own regulation, the court must reverse the agency’s action as arbitrary and capricious. PUC v. Gulf States Utilities, 809 S.W.2d 201, 207 (Tex. 1991); CenterPoint Energy v. PUC, 408 S.W.3d 910, 917. 8 number of points that are not at issue or serve only to confuse the issue. These arguments often miss the point, misconstrue Appellants’ argument, and fail to acknowledge the applicability of regulatory definitions mandated by TCEQ rule. Appellees’ arguments ultimately fail because there is a permit requirement in TCEQ rules and in the controlling statute, TCEQ cannot violate or ignore its rules, the permit and registration exception for source-separated recyclable materials does not apply to this facility, and a transfer station is not the equivalent to any other Type V processing facility. Not only do Appellees’ arguments fail, their interpretation endangers the proper permitting of solid waste processing activities across our state. A. Straight From the Horse’s Mouth: A Concise Statement of Appellants’ Argument. Appellants’ first argument is often misrepresented in Appellees’ briefs. Rather than refuting each occurrence, Appellants’ argument is concisely presented below for convenient comparison. TCEQ failed to follow the clear, unambiguous language of at least four of its regulations when it issued Registration No. 40259 for Pintail’s transfer station/material recovery facility (“Pintail’s Facility” or “Facility”). First, TCEQ failed to follow Rule 330.9(b)(3), the provision under which Applicant claimed authority for registration. This rule expressly applies only to transfer station facilities, and this rule was violated when TCEQ allowed it to be used as registration authority for a materials recovery operation. Second, TCEQ failed to follow Rule 9 330.9(f), which allows registration for any transfer station facility with materials recovery operations that meets the 10/50 requirements.3 It is undisputed that the Facility is a transfer station with materials recovery operations, and that the 10/50 requirements were not met. This is the only registration authorization available for materials recovery activities at a transfer station without an already permitted landfill attached. Thus, TCEQ’s refusal to apply this rule’s requirements is impermissible. Third, TCEQ failed to follow the clear, unambiguous language of its own definitions. TCEQ rules specifically define both types of facilities at issue, transfer stations and waste separation/recycling facilities (also referred to as a materials recovery facilities), and these facilities engage in different waste management activities. TCEQ is required to follow its definitions, which are codified as TCEQ rules. Because TCEQ failed to follow the plain language of its rules, the registration of this Facility must be reversed. It should be noted that Appellants are not challenging the authority of TCEQ to issue registrations. Appellants fully acknowledge TCEQ’s authority to register certain transfer stations, to register certain transfer stations with materials recovery operations, to register certain recycling facilities, and to register any other type of waste management activity that is allowed by law. In fact, permissible TCEQ 3 The so-called 10/50 requirements are found at 30 Texas Administrative Code § 330.9(f)(1)&(2). They require a minimum 10% recovery rate and disposal at an existing permitted facility within 50 miles in order to qualify for registration. 10 registrations form the heart of this case. The key is, when exercising its authority, TCEQ must follow its rules. In this case it did not, so reversal is required. B. A Requirement Must Require Something: Appellees Impermissibly Interpret 30 Texas Administrative Code § 330.9(f) As Applying to Any Transfer Station/Waste Separation Facility Only If Its Requirements Are Met. The first relevant rule at issue is 330.9(f). Rule 330.9(f) is intended to allow a qualifying transfer station/material recovery facility to obtain a registration rather than a permit.4 The rule reads, “(f) A registration is required for any new MSW Type V transfer station that includes a material recovery operation that meets all of the following requirements. (1) Materials recovery. [10% recovery rule]. (2) Distance to landfill. [50 mile disposal rule].” Upon adoption of 30 Texas Administrative Code § 330.9 to allow registration instead of permitting, TCEQ recognized and pronounced that the rule lists all of the permitting exceptions that are eligible for registration. 31 Tex. Reg. 2506 (“The commission adopts new §330.9, Registration Required, to list all MSW management activities that are exempt from permitting requirements but that still require commission approval by registration.”) Appellees do not rely on 330.9(f) as registration authority, and Appellees’ interpretation of 330.9(f) correctly bars its use for registration of this facility. 4 See 31 Tex. Reg. 2506. 11 However, their interpretation continues to ignore the language of the rule, specifically, the word “any” and the defined term, “material recovery operation.” Appellees argue that the 10/50 rule requirements of 330.9(f) do not apply to this transfer station/materials recovery facility, even though the rule expressly applies to “any new MSW Type V transfer station that includes a material recovery operation….” Appellees argue that the requirements of Rule 330.9(f) (the 10/50 rule) only apply to a transfer station/materials recovery facility that already meets the 10/50 rule.5 In other words, Appellees argue that if the rule’s requirements are not met, the rule does not apply. In its best light, Appellees’ interpretation means that if rule 330.9(f)’s requirements are not met, then the rule does not allow registration of a transfer station/materials recovery facility. Appellees argue, however, that if the rule’s 10/50 requirements are not met, the facility may simply be registered as a transfer station, despite the fact that it is actually a transfer station and material recovery facility. Appellees’ interpretation ignores the word “any” and the term “material recovery,” which is defined in rule 330.3(174).6 Because Appellees’ interpretation contravenes 5 Pintail’s Brief at 21-22; TCEQ’s Brief at 16. 6 30 Tex. Admin. Code 330.3(174) (“Waste-separation/recycling facility--A facility, sometimes referred to as a material recovery facility, in which recyclable materials are removed from the waste stream for transport off-site for reuse, recycling, or other beneficial use.”) 12 the clear, unambiguous language of the rule itself, it is impermissible.7 However, even if their interpretation did not contravene the rule’s language, the registration would fail because there is no other applicable registration authority available. Appellants do concede that registration for waste separation/material recovery/recycling activities could be properly granted through a different registration provision, but those provisions must expressly apply to those activities, and cannot apply without a preexisting permitted landfill under current rules. In order to qualify waste separation/recycling/materials recovery activities for registration, one of the specific provisions allowing these specific activities to be registered must be met. These statutorily prescribed registration provisions available for recycling activities are listed in Rule 330.9, and include 330.9(c) (for registration of a waste separation/recycling facility within the boundaries of an existing, existing permitted MSW landfill, with statutory authority originating in Texas Health and Safety Code 361.0861), 330.9(f) (for a transfer station that includes a material recovery operation and meets the 10/50 requirements, with statutory authority originating in Texas Health and Safety Code 361.111(a)(4)), and 330.9(j) (for certain material recovery operations from an existing landfill, with statutory authority originating in Texas 7When an agency fails to follow the clear, unambiguous language of its own regulation, the court must reverse the agency’s action as arbitrary and capricious. Gulf States Utilities, 809 S.W.2d at 207 (Tex. 1991); CenterPoint, 408 S.W.3d at 917. 13 Health and Safety Code 361.092). TCEQ Rule 330.9(f) is the only provision allowing materials recovery that could have been utilized, because there is not an existing landfill. Because the requirements of 330.9(f) were not met, a registration is not available and this facility requires a permit. C. Appellees Impermissibly Interpret 30 Texas Administrative Code § 330.9(b)(3), Arguing Anything to Distract from the Clear, Unambiguous Language of the Rule. The second relevant registration rule at issue is 330.9(b)(3). Appellees purport to rely on this rule for registration authority. Rule 330.9(b)(3) is intended to allow qualifying transfer stations to obtain a registration rather than a permit. See 31 Tex. Reg. 2506 (“The commission adopts new §330.9, Registration Required, to list all MSW management activities that are exempt from permitting requirements but that still require commission approval by registration.”) The rule reads, (b) A registration is required for an MSW transfer station facility that is used in the transfer of MSW to a solid waste processing or disposal facility from any of the following: … (3) a facility used in the transfer of MSW that transfers or will transfer 125 tons per day or less; 30 Tex. Admin. Code § 330.9(b)(3). Appellees argue that a transfer station that includes a materials recovery operation may be registered under Rule 330.9(b)(3), even though the rule expressly applies only to MSW transfer station facilities. Appellees interpretation impermissibly expands the scope of Rule 330.9(b)(3) in contravention of the rule’s clear, unambiguous language, because Rule 330.9(b)(3) expressly applies only to 14 MSW transfer station facilities. Transfer station facilities are defined by rule, and are separately defined from materials recovery facilities. There is a clear distinction between these types of waste processing activities. See 30 Tex. Admin. Code § 330.3(157) (defining transfer station); 30 Tex. Admin. Code § 330.3(174) (defining materials recovery facility/waste separation facility/recycling facility).8 All of the Appellees interpretations contravene the plain language, “transfer station facility,” which is a term defined by rule. Additionally, the mere fact that a facility “is used in the transfer” of waste does not eliminate the rule’s express application to “transfer station” facilities only, and it does not change the regulatory definition of “transfer station.” Given the rule’s express application to “transfer station” facilities, the words “is used in the transfer” serve the purpose of describing the activities of a transfer station consistently with its regulatory definition. There is no indication that the words “is used in the transfer” expand the applicability of rule 330.9(b)(3), and such a reading contravenes the clear, unambiguous language of TCEQ rules 330.9(b)(3), 330.3(157), and 330.3(174). 8 30 Tex. Admin. Code § 330.3(157) (“Transfer station--A facility used for transferring solid waste from collection vehicles to long-haul vehicles (one transportation unit to another transportation unit). It is not a storage facility such as one where individual residents can dispose of their wastes in bulk storage containers that are serviced by collection vehicles.”); 30 Tex. Admin. Code § 330.3(174) (Waste-separation/recycling facility--A facility, sometimes referred to as a material recovery facility, in which recyclable materials are removed from the waste stream for transport off-site for reuse, recycling, or other beneficial use.) 15 Appellees offer a number of justifications for violating the plain language of TCEQ rules, but they miss the mark. The arguments largely dodge the language of the rules at issue, and upon inspection, they do not justify Appellees’ proposed interpretations. Their arguments fail because: 1) TCEQ’s argument fails to distinguish between transfer activities and materials recovery/waste separation activities, fails to acknowledge the applicability of TCEQ rules’ definitions, and even inadvertently admits that the claimed registration authority does not apply by stating that no MSW will be transferred at the facility; 2) a permit is generally required for waste management activities unless an exception applies; 3) TCEQ cannot violate or ignore its rules; 4) the permit and registration exception for source- separated recyclable materials does not and could apply to this facility because it accepts a waste stream; and 5) a transfer station is not equivalent to any Type V processing facility, and Appellees’ interpretation endangers the proper permitting of all other Type V solid waste processing facilities. 1. TCEQ’s Argument on Rule 330.9(b)(3) Misses the Point, Misconstrues the Argument, and Exudes Misunderstanding. TCEQ’s argument regarding rule 330.9(b)(3) completely misses the mark. TCEQ’s argument is fundamentally flawed because it misconstrues Appellants’ argument as complaining that no processing or storage may occur at a transfer 16 station.9 Appellants do not challenge registration of all processing activities, but only challenge registration of materials recovery/waste separation/recycling activities at a transfer station using Rule 330.9(b)(3) as justification. In reality, transfer activities and materials recovery/waste separation/recycling activities are each a subset, or different type of waste processing activity, which is a much more broadly defined term.10 Even incineration of waste is a processing activity.11 TCEQ argued that processing activities are incidental and necessary to operate a transfer station.12 This argument has very little relevance because processing is such a broad term. Because the scope of the term “processing” includes both transfer activities and material recovery activities, it follows that processing would be a necessary activity to transfer waste (because transfer is a form of processing). The more relevant observation is that materials recovery/waste separation/recycling activities (another distinct form of processing) are most certainly not necessary to 9 TCEQ Brief at 13. 10 30 Tex. Admin. Code § 330.3(117) (“Processing--Activities including, but not limited to, the extraction of materials, transfer, volume reduction, conversion to energy, or other separation and preparation of solid waste for reuse or disposal, including the treatment or neutralization of waste, designed to change the physical, chemical, or biological character or composition of any waste to neutralize such waste, or to recover energy or material from the waste, or render the waste safer to transport, store, dispose of, or make it amenable for recovery, amenable for storage, or reduced in volume.”). 11 Id. 12 TCEQ Brief at 15. 17 the transfer of waste from one transportation unit to another transportation unit, nor are those activities incidental to transfer activities.13 Further, TCEQ appears to misrepresent the applicability of its own definitions. On page 13 of is brief, TCEQ appears to imply that definitions of MSW management activities in Rule 330.3 (such as transfer station and waste separation/materials recovery/recycling facility) do not apply to registration Rule 330.9 because they appear in a different subchapter.14 This is flat wrong. Not only are the definitions and registration rules in the same subchapter (Subchapter A), the definitions would apply even if they were not. The definitions of Rule 330.3 apply to the entire Chapter 330 regarding municipal solid waste. See 30 Tex. Admin. Code § 330.3(a) (stating “[t]his section contains definitions for terms that appear throughout this chapter.”). The TCEQ and reviewing courts are bound to construe these terms by their regulatory definitions only.15 13 See 30 Tex. Admin. Code § 330.3(157); see also 30 Tex. Admin. Code § 330.3(174). 14 TCEQ Brief at 13 (stating “Appellants support their argument by citing to various definitions of MSW management in other subchapters of the MSW rules. Appellants’ interpretation of the Commission’s rules is unreasonable…”). 15 Tex. Dept. of Transp. V. Needham, 82 S.W.3d 314, 318 (Tex. 2002) (“But if a statute defines a term, a court is bound to construe that term by its statutory definition only.”) (emphasis added); see also TGS-NOPEC Geophysical Co. v. Combs, 340 S.W.3d 432, 439 (Tex. 2011) (“If a statute … assigns a particular meaning to a term, we are bound by the statutory usage.”); id. at 438 (“We interpret administrative rules, like statutes, under traditional principles of statutory construction.”); Rodriguez v. Service Lloyds Ins., 997 S.W.2d 248, 254 (“We construe administrative rules, which have the same force as statutes, in the same manner as statutes.”). 18 Finally, in another section of TCEQ’s brief, TCEQ inadvertently admits by implication that the registration authority of Rule 330.9(b)(3) does not apply at all, because Pintail’s facility “will not accept municipal solid waste” and will only accept construction and demolition waste.16 Because Rule 330.9(b)(3) applies only to a “MSW transfer station facility that is used in the transfer of MSW,” TCEQ has inadvertently refuted its own argument that the registration authority of Rule 330.9(b)(3) applies to Pintail’s facility. TCEQ’s statement, however, is inaccurate. MSW is broadly defined, and does include construction and demolition waste.17 2. It’s Not a Sasquatch: A Generally Applicable Permit Requirement Does Exist. TCEQ’s brief also implies that there is no general permitting requirement in the statute or in its rules, and this too is false. TCEQ has authority to regulate solid waste activities, but its authority is not unfettered. It is restricted by the terms of the controlling Texas Health and Safety Code Chapter 361, and by TCEQ rules. Texas Health & Safety Code § 361.061 grants TCEQ the power to require and issue permits, while Texas Health & Safety Code § 361.086(a) expressly requires a separate permit at each solid waste facility. The statute states, “[e]xcept as provided in Subsection (d) [which does not apply here], a separate permit is required for each 16 TCEQ Brief at 10. 17 30 Tex. Admin. Code § 330.3(88) (“Municipal solid waste--Solid waste resulting from or incidental to municipal, community, commercial, institutional, and recreational activities, including garbage, rubbish, ashes, street cleanings, dead animals, abandoned automobiles, and all other solid waste other than industrial solid waste.”) 19 solid waste facility.” Read together, these sections require TCEQ permits at solid waste facilities, unless an exception applies. Exceptions to the permit requirement that allow or mandate registration are codified in the Health & Safety Code and have been duplicated in the TCEQ rules.18 A permit is required if no exception applies. TCEQ’s brief denies the existence of a general permitting requirement. This is surprising, because this permit requirement has been repeatedly recognized and documented by TCEQ in almost every imaginable way. It has been codified in TCEQ rules, recited in Texas Register notices, and pronounced in TCEQ guidance documents. TCEQ rule 330.7(a) codifies the general permit requirement and requires a permit unless an exception to the permitting requirement is applicable to the activities of the facility.19 These permitting exceptions allow solid waste management activities to be authorized by registration, notification, or to be completely exempt from permitting, registration, or notification.20 TCEQ acknowledged the permitting requirement applicable to processing facilities, including transfer stations, when it refused to remove the word “transfer” from the definition of “processing.” See 31 Tex. Reg. 2548 (reinserting “transfer” back into the definition of “processing” to keep the permitting requirement for 18 See, e.g., Tex. Health & Safety Code 361.0861; Tex. Health & Safety Code 361.111(a)(1)–(4); Tex. Health & Safety Code 361.092. 19 30 Tex. Admin. Code § 330.7(a) (relating to title, “Permit Required”). 20 30 Tex. Admin. Code §§ 330.9, 330.11, 330.13, and 330.25. 20 transfer facilities).21 TCEQ also recognizes the permitting requirement applicable to transfer stations in its relevant regulatory guidance document, which plainly states that a permit is required if a transfer station does not qualify for registration.22 There are limited exceptions to the permitting requirement that allow MSW management activities to be authorized by registration, and these exceptions are specifically enumerated in TCEQ’s registration rule 330.9.23 Upon adoption of Rule 330.9 to allow registration instead of permitting, TCEQ pronounced that the rule lists all of the permitting exemptions that are eligible for registration: “The commission adopts new §330.9, Registration Required, to list all MSW management activities that are exempt from permitting requirements but that still require commission approval by registration.” (emphasis added).24 The generally applicable permit requirement appears in the Health & Safety Code, the TCEQ rules, the Texas 21 The comment and response states in full: “Comment: HCPES [Harris County Attorney’s Office and Harris County Public Health and Environmental Services, Pollution Control Division] commented that the proposed deletion of the term “transfer” from the definition of processing would change the meaning of §330.7(a) relating to Permit Required. By this proposed definition change, transfer stations would no longer be required to obtain permits to operate. HCPES stated that by their nature, transfer stations require agency and public review of the permitting process unless exempted due to a location on an existing landfill or if they meet registration requirements under §330.9(b). Response: The commission agrees with this comment and has reinserted the term “transfer” back into the definition of processing in response to these comments and also to be consistent with THSC, §361.003, Definitions.” 31 Tex. Reg. 2548 (emphasis added). 22 See Initial Brief of Appellants, Appendix B (TCEQ Publication No. RG-469, Traditional Municipal Solid Waste Disposal: A Guide for Local Governments (listing transfer station registration exceptions in 330.9(b) and stating, “If none of these criteria can be met, a permit is required”)). 23 30 Tex. Admin. Code § 330.9(b)–(p). 24 31 Tex. Reg. 2506 (emphasis added). 21 Register, and TCEQ guidance documents. Given its frequent appearance in relevant authority, TCEQ’s argument against a permit requirement must fail. 3. Rules Are Rules: TCEQ Does Not Have the Authority to Violate or Otherwise Ignore Its Rules. Appellees argue that TCEQ has broad regulatory authority, implying that this authority gives the agency license to expand the applicability of Rule 330.9(b)(3) beyond the regulatory definition of transfer station to include materials recovery operations. Appellees also argue that TCEQ has authority to ignore Rule 330.9(f), which expressly applies to any transfer station with a materials recovery operation. Furthermore, Appellees necessarily argue that TCEQ is not bound by its regulatory definitions. Appellees’ arguments fail because TCEQ must follow its rules, including applicable definitions. The rules cannot be ignored; they cannot be selectively applied. When an agency fails to follow the clear, unambiguous language of its own regulation, the court must reverse the agency’s action as arbitrary and capricious.25 A rule’s plain language must be followed unless it is ambiguous.26 If a rule is ambiguous or leaves room for policy determinations, a court may not defer to an 25 Gulf States Utilities, 809 S.W.2d at 207 (Tex. 1991); CenterPoint, 408 S.W.3d at 917. 26 CenterPoint, 408 S.W.3d at 916. 22 agency’s interpretation that is plainly erroneous or inconsistent with the regulation or its underlying statutes.27 Appellees cite McDaniel v. TNRCC as support for the proposition that TCEQ has the authority to issue registrations, but again, that issue is not in dispute here. 982 S.W.2d 650 (Tex. App.—Austin 1998, pet. denied). Appellants fully acknowledge TCEQ’s authority to issue registrations. The point is that the TCEQ must follow its rules when issuing a registration. McDaniel is an example of the agency following its rules that were promulgated for registration: “[t]he TNRCC acted in compliance with its own properly promulgated rules and issued the requested registration.”28 However, the case is largely irrelevant because it involves different registration rules (that were actually followed), different application procedures, and different environmental concerns. McDaniel is a case about beneficial application of sewage sludge that properly qualified for registration under the applicable “Sludge Use, Disposal, and Transportation” rules, which are in an entirely different chapter of TCEQ’s rules. 982 S.W.2d 650 (Tex. App.—Austin 2009, pet. denied); see also 30 Tex. Admin. Code § 312. Worth noting, Appellee Pintail’s brief fails to mention the crucial fact that the TNRCC’s registration rules were followed in McDaniel. This omission is 27 Id. 28 McDaniel v. TNRCC, 982 S.W.2d 650, 653 (Tex. App.—Austin 2009, pet. denied). 23 misleading, because the instant case is squarely about whether TCEQ followed its applicable registration rules. Upon inspection, McDaniel supports the Appellant’s position. Like other applicable case law, it acknowledges and applies the requirement that rules must be followed: “[w]hen an agency fails to follow its own rules, reversal and remand is required if a showing of harm or prejudice is made.”29 Unlike in McDaniel, in this case TCEQ did not follow its rules. 4. Don’t Believe the Hype: The Transfer Station/Materials Recovery Facility Does Not And Could Not Qualify for a Permit Exemption Under Rule 328, Because a Waste Stream Is Not Recyclable Material. This Facility is not exempt from permitting and registration requirements under 30 Texas Administrative Code Chapter 328, because the Facility will accept a stream of waste (which is not classified as recyclable material) and will separate recyclable materials from that waste stream. Under the relevant rule, “[a] facility that processes recyclable material that contains more than incidental amounts of non- recyclable waste must obtain a permit or registration as applicable under Chapter 330 or Chapter 332 of this title unless the executive director approves its request for alternative compliance.”30 The permitting and registration exception for facilities 29 Id. at 654. 30 30 Tex. Admin. Code § 328.4(d). 24 processing recyclable material is completely inapplicable to this case and serves only to cause confusion. A waste stream is not “recyclable material.” The permit and registration exception under TCEQ rule 328.4 do not apply to this facility or this registration because by its plain language, it addresses “recyclable material.” By definition, “recyclable material” only ceases to be solid waste after it “has been recovered or diverted from the nonhazardous waste stream” and is useful in the manufacture of products.31 Because this Facility will accept a waste stream prior to separation of recyclable materials out of that waste stream, it cannot qualify for the “recyclable materials” permit exemption for its materials recovery/waste separation/recycling facility. Guidance on TCEQ’s webpage confirms this interpretation of the rules by stating, “[f]acilities that separate recyclable materials from a municipal solid waste stream must be permitted or registered as a municipal solid waste processing facility in accordance with 30 TAC Chapter 330, Section (§) 330.7 or 330.9” (emphasis in original).32 As previously discussed, the Pintail facility does not qualify for authorization by registration, so it must be permitted. 31 30 Tex. Admin. Code § 330.3(122) (“Recyclable material--A material that has been recovered or diverted from the nonhazardous waste stream for purposes of reuse, recycling, or reclamation, a substantial portion of which is consistently used in the manufacture of products that may otherwise be produced using raw or virgin materials. Recyclable material is not solid waste. However, recyclable material may become solid waste at such time, if any, as it is abandoned or disposed of rather than recycled, whereupon it will be solid waste with respect only to the party actually abandoning or disposing of the material.”) 32 C.R. at 505 (CALH and City’s Joint Motion for New Trial, page 13, Ex. 3). 25 Additionally, “incidental amounts,” as referenced in rule 328.4(d), is defined in the rules. This definition also confirms that the exception applies only to source- separated recyclable materials, or material that at the point of generation, was separated, collected, and transported separately from MSW waste.33 Finally, Pintail admits that the recyclable materials permitting and registration exception does not apply to the Facility, and that it was not claimed as authority. Pintail’s brief admits that Pintail anticipated processing “more than an incidental amount of waste,” and therefore, the permitting and registration exception for recyclable materials could not apply.34 However, Pintail completely fails to inform the Court that it could not have ever qualified for the permit and registration exemption because it will be handling waste. Pintail’s Facility will accept a waste stream, not source-separated recyclable materials used to make products. Because Pintail’s Facility is a materials recovery facility that accepts a waste stream, it never could have qualified and this provision is completely inapplicable and irrelevant to this case. 5. Not All Type V Facilities Are Equal. Transfer Facility ≠ Incinerator ≠ Material Recovery Facility. 33 See 30 Tex. Admin. Code § 328.2(3) (defining incidental amounts of non-recyclable waste as no more than 10% of any incoming load and requiring reasonable efforts to maintain source- separation of recyclable material from waste); see also 30 Tex. Admin. Code § 328.2(6) (defining source-separated recyclable material as being recyclable material that has been at the point of generation, separated, collected, and transported separately from MSW waste). 34 Pintail’s Brief at 20. 26 Appellee Pintail’s argument relies on an audacious assertion that the permitting exception used to register the Type V transfer station activities (30 Tex. Admin. Code §330.9(b)) can be expansively utilized as registration authority for materials recovery waste processing activities at the facility, and even more broadly, for any additional activities included within the definition of a Type V facility. Appellee implies that all Type V facilities are subject to the same regulatory permitting requirements, but they are not. Type V facilities include all kinds of solid waste processing. In addition to waste transfer activities, Type V facilities incinerate, shred, grind, bale, salvage, separate, dewater, reclaim, store, and process solid waste in other ways. Conversely, a transfer station is separately defined in TCEQ rules, and its definition only includes waste transfer activities.35 A transfer station is a very narrow subset of all Type V facilities that merely performs a waste transportation function.36 In short, a Type V transfer station and a Type V facility are not the same thing. A transfer station is just one kind of Type V facility. 35 30 Tex. Admin. Code §330.3(157). 36 30 Tex. Admin. Code §330.5(a)(3) (“MSW facility - Type V. Separate solid waste processing facilities are classified as Type V. These facilities include processing plants that transfer, incinerate, shred, grind, bale, salvage, separate, dewater, reclaim, and/or provide other storage or processing of solid waste. Owners or operators shall follow the minimum design and operational requirements prescribed in Subchapter E of this chapter (relating to Operational Standards for Municipal Solid Waste Storage and Processing Units); Subchapter F of this chapter; Subchapter G of this chapter; Subchapter H of this chapter, if required; Subchapter K of this chapter; Subchapter L of this chapter, if financial assurance is required; Subchapter M of this chapter; and Chapter 37, Subchapter R of this title, except that owners and operators of recycling facilities who store combustible material are required to comply with Chapter 37, Subchapter J of this title (relating to Financial Assurance for Recycling Facilities). Groundwater monitoring may be 27 TCEQ regularly issues permits, rather than registrations, to Type V processing facilities that store, process, compost, and recycle waste.37 Under Appellees’ erroneous reading, any company with knowledge of Pintail’s permitting loophole could seek to avoid the permitting requirement in the same way that Pintail has. As long as an applicant transferred less than 125 tons of MSW per day, there would be no need to seek a permit for any other processing activities. The required permitting process for Type V facilities that incinerate, shred, grind, bale, salvage, separate, dewater, reclaim, and/or provide other storage or processing of solid waste could be completely avoided and the affected public would not even have an opportunity for hearing. This interpretation cannot be correct because it would undermine or even eliminate the permitting requirement for Type V solid waste processing facilities. II. THE TCEQ DENIED AFFECTED PERSONS DUE PROCESS BY AUTHORIZING THE FACILITY THROUGH REGISTRATION RATHER THAN A PERMIT. Appellees’ argument that due process was not violated hinges on the erroneous assertion registration was appropriate and therefore, no statutory or rule- required by the executive director and shall be maintained in accordance with the requirements of Subchapter J of this chapter.”). 37 C.R. at 389 (CALH Reply Brief at 17) (citing MSW Permit No. 2382, issued May 1, 2014 (authorizing storage, processing, composting, and recycling recovered materials by permit); see also MSW Permit No. 2379, issued November 9, 2012 (authorizing storage, processing, and recycling recovered materials by permit). At the time CALH filed its Reply Brief in the District Court proceeding, both of these permits were available on TCEQ’s webpage titled “Municipal Solid Waste Applications Posted on the Internet.” Because they are no longer posted on the TCEQ’s webpage at this time, a copy of each permit is provided in Appendix B. 28 based right to a contested case hearing was denied. However, because a permit is required, affected persons do have a statutory right to a contested case hearing.38 Additionally, affected persons have a right to a contested case hearing under TCEQ rules.39 Where there is a statutory right to a hearing and a right to a hearing under applicable rules, denial of the hearing is a violation of procedural due process.40 CALH and the City are both parties in the ongoing contested case hearing for the Pintail Landfill at the same location as this Facility. CALH members and City of Hempstead have property interests that would be affected by the proposed facility. For example, CALH has members that reside adjacent to the proposed location and rely on water wells as their sole source of domestic water, and the City supplies water to its residents from wells located near the Facility. The Facility is also located within the City’s extraterritorial jurisdiction. In a contested case proceeding, the presiding judge has the authority to make the determination of affected status to identify parties.41 Typically, the facts above would be sufficient to demonstrate 38 See Tex. Health & Safety Code §§ 361.088, 361.0665, 361.0666, 361.067, 361.079, 361.0791, and 361.081 (relating to various application notice requirements, published notice requirements, mailed notice requirements, hearing notice requirements, and contested case hearing requirements for MSW permit applications). 39 30 Tex. Admin. Code § 55.201(b)(4); 30 Tex. Admin. Code § 55.203. 40 County of Dallas v. Wiland, 216 S.W.3d 344, 347 (Tex. 2007) (holding that “the deputies were discharged without the hearing before the civil service commission promised by system rules to determine whether just cause existed, and thus they were denied procedural due process.”) (emphasis added). 41 See 30 Tex. Admin. Code § 80.109(a) (“Determination by judge. All parties to a proceeding shall be determined at the preliminary hearing or when the judge otherwise designates.”); 30 Tex. Admin. Code § 80.109(b)(5) (“Affected persons shall be parties to hearings on permit applications, 29 affected status. These examples are presented for illustration of Appellants’ interests. CALH and the City’s interests should have been afforded the protection of the permitting process. The permitting process, unlike the registration process, triggers statutorily granted due process rights to notice and a contested case hearing by virtue of the Texas Health and Safety Code.42 Here, the issuance of a registration when a permit was required denied members of CALH, the City, and all other affected persons their right to notice and a contested case hearing, as required under the Health and Safety Code for MSW permit applications.43 III. ALWAYS KEEP YOUR WORD: THE REGISTRATION SHOULD BE REVERSED BECAUSE TCEQ ALLOWED AN EXCESSIVE NUMBER OF NOTICES OF DEFICIENCY WELL BEYOND ITS PUBLICLY PRONOUNCED POLICY. The Notice of Deficiency (“NOD”) policy that was reported in the TCEQ Sunset Evaluation Report to the Texas Legislature, instructed to TCEQ staff in internal TCEQ procedural documents for registration, and stated in external correspondence to applicants should be binding on the agency. Appellees argue that TCEQ’s public statements to the legislature, the public, applicants, and their own based upon the standards set forth in §55.29 and §55.203 of this title (relating to Determination of Affected Person.”). 42 See Tex. Health & Safety Code §§ 361.088, 361.0665, 361.0666, 361.067, 361.079, 361.0791, and 361.081 (relating to various application notice requirements, published notice requirements, mailed notice requirements, hearing notice requirements, and contested case hearing requirements for MSW permit applications). 43 See id. 30 staff reviewers cannot bind the agency, because the statements were not officially promulgated under the APA as rules. However, the interest of justice requires the TCEQ to be bound by its universally professed NOD policy pronouncements that were made in promises to the legislature, declarations to applicants, instructions to its staff, and assurances to the public. Appellees argue that the NOD policy should not be binding on the agency because enforcement of the well-publicized policy would have undesirable results, but the converse is true. The only fair remedy in this situation is to enforce the NOD policy that TCEQ professed to follow. Any other course of action would cause harm to the public, to the agency, to the regulated community, to the TCEQ staff, to the Texas legislature, and to taxpayers. The public deserves to have confidence that the TCEQ applies its stated policies, including the two NOD policy, to all applicants in a uniform manner. Allowing TCEQ to disregard its own NOD policy would undermine public confidence in the agency, and ultimately harm the agency’s reputation. The regulated community deserves to have a uniform process in which applicants are all treated equally. Allowing the TCEQ to selectively disregard its stated NOD policy harms the regulated community and threatens the environment by allowing facilities to be operated by companies that lack the competence to complete an application as required without excessive NODs. Agency management also suffers reputation damage in such a scenario, because they are forced to say one thing and do another. 31 Additionally, allowing the NOD policy to be disregarded is unfair to agency staff members, who will be unable to rely on the plain letter of the policy instructions they are issued. Finally, disregarding the NOD policy is unfair to the Texas legislature and the taxpayers whose dollars support the agency’s activities. TCEQ should be held to its two NOD policy, which was intended to promote efficiency within the agency. Allowing the NOD policy to be disregarded undermines the purpose of the policy altogether – to ensure efficient review of applications. Efficient application review saves taxpayer dollars and expedites review for applicants. TCEQ cannot be allowed to disregard its NOD policy. Such a decision would be unfair to all participants, and would merely enable the TCEQ to waste taxpayer and applicant resources with unnecessarily lengthy application reviews. Worthy of note, returning a deficient application is not unprecedented. Counsel is aware of two examples referenced in briefing at the administrative level for this registration application alone.44 Indeed, this Court dismissed an untimely appeal of one of these returned applications.45 Appellees argue that it was reasonable to continue to send Pintail NODs in violation of the TCEQ’s publicly pronounced policy, because new requests for information were being made. However, the record shows that Pintail repeatedly 44 R.R. at Joint Ex. 1, AR Vol. 7, Item 48, p. 5–6 (Motion to Overturn Executive Director’s August 16th, 2012 Issuance of a Fifth Notice of Deficiency). 45 Tex. Comm’n on Envtl. Quality v. Kelsoe, 286 SW.3d 91 (Tex. App.—Austin 2009). 32 failed to adequately respond to TCEQ’s NOD requests, exceeding the two NOD limit for the same TCEQ requests. TCEQ should only be allowed two NODs, in accordance with its stated policy, but even if the two NOD limit was measured by the subject matter of each question asked, TCEQ still exceeded its policy. As demonstrated by the highlighted portions of Appendix A, TCEQ repeated a number of NOD requests more than twice, and Pintail did not adequately respond to the requests within the two NOD limit. The subject matters of the lengthiest requests follow. The registration application failed to include the required construction details of subsurface supports of all storage and processing components and failed to include the required review letter from the Texas Historical Commission.46 TCEQ’s requests for both of these NOD items were made on October 27, 2011, again on February 17, 2012, and for a third time on April 12, 2012, in violation of the two NOD policy. The required information from Texas Department of Transportation was only provided after TCEQ requested it in five NODs. This information was requested on October 27, 2011, again on February 17, 2012, for a third time on April 12, 2012, for a fourth time on June 25, 2012, and for a fifth time on August 16, 2012. Even after all of these requests, there was still another TCEQ request for additional information, 46 See Appendix A: NOD letters from TCEQ and Supplementary Information transmittal letter from Pintail dated Oct. 18, 2012. R.R. at Joint Ex. 1, AR Items 3, 13, 22, 24, 32, 39, 51). 33 which was responded to on October 18, 2012, providing a new Facility Boundary Map and new information about nearby water wells, springs, surface water bodies, and oil and gas wells. The agency should not be allowed to write Pintail’s registration application for them. This registration application should have been returned. 34 PRAYER TCEQ acted in violation of its own rules and policies, and in abrogation of the due process rights of affected persons, in granting the Registration Application and issuing Registration No. 40259. Therefore, CALH and the City respectfully pray that the trial court's Judgment affirming the TCEQ’s action be reversed, and that Court reverse, or suspend and set aside, the Registration and remand this matter to TCEQ for further proceedings consistent with this Court’s opinion. CALH and the City further pray for all other and further relief, both general and special, at law and in equity, to which they may be justly entitled. Respectfully submitted, HANCE SCARBOROUGH, LLP 400 W. 15th Street, Ste. 950 Austin, TX 78701 Telephone: (512) 479-8888 Facsimile: (512) 482-6891 By: _______________________ Terry L. Scarborough State Bar No. 17716000 Michael L. Woodward State Bar No. 21979300 mwoodward@hslawmail.com V. Blayre Pena State Bar No. 24050372 bpena@hslawmail.com Wesley P. McGuffey State Bar No. 24088023 wmcguffey@hslawmail.com 35 ATTORNEYS FOR APPELLANTS CITIZENS AGAINST THE LANDFILL IN HEMPSTEAD, MICHAEL MCCALL, AND WAYNE KNOX KELLY HART & HALLMAN LLP 301 Congress Avenue, Suite 2000 Austin, Texas 78701 Telephone: (512) 495-6400 Facsimile: (512) 495-6401 By: /s/ Diana Nichols Monica M. Jacobs State Bar No. 24007433 Monica.Jacobs@kellyhart.com Diana L. Nichols State Bar No. 00784682 Diana.Nichols@kellyhart.com ATTORNEYS FOR THE CITY OF HEMPSTEAD CERTIFICATE OF COMPLIANCE Pursuant to Texas Rule of Appellate Procedure 9.4, I hereby certify that this brief contains 6,788 words. This is a computer generated document created in Microsoft Word, using 14 point typeface for all text, except for footnotes, which are in 12-point typeface. In making this certificate of compliance, I am relying on the word count provided by the software used to prepare the document. Terry L. Scarborough 36 CERTIFICATE OF SERVICE I hereby certify that a copy of Reply Brief of Appellants’ was served on the following counsel of record on April 16, 2015, via certified mail, return receipt requested, and/or the electronic filing system: Nancy Elizabeth Olinger Nancy.Olinger@texasattorneygeneral.gov Cynthia Woelk Cynthia.Woelk@texasattorneygeneral.gov Daniel C. Wiseman Daniel.Wiseman@texasattorneygeneral.gov OFFICE OF THE ATTORNEY GENERAL OF TEXAS Environmental Protection Division (MC-066) P.O. Box 12548 Austin, TX 78711-2548 ATTORNEYS FOR TCEQ Paul R. Tough ptough@msmtx.com Brent W. Ryan bryan@msmtx.com MCELROY, SULLIVAN, MILLER, WEBER & OLMSTEAD, LLP P.O. Box 12127 Austin, TX 78711 Michael S. Truesdale LAW OFFICE OF MICHAEL S. TRUESDALE, PLLC 801 West Avenue, Suite 201 Austin, TX 78701 ATTORNEYS FOR THE PINTAIL LANDFILL, LLC Terry L. Scarborough 37 APPENDIX A Bryan W. Shaw) Ph.D., Chair111an Buddy Garcia, Co1n1nissioner Carlos Rubinstein, Convnissioner Mark R. Vickery, P.G .1 Executive Directo1· TEXAS COMMISSION ON ENVIRONMENTAL QUALITY Prote.cting Texas by Reducing and Preventing Pollution August 15, 2011 Mr. Ernest Kaufmann Pintail Landfill, LLC 24644 Highway 6 Hempstead, Texas 77445 Re: Pintail landfill Transfer Station - Waller County Municipal Solid Wasle (MSW) - Registration No. NA Registration Application (RA) - Preliminary Review T1·acking Nos. 14835575 & 14874930; RN: NA/ CN603939349 Dear Mr. Kaufmann: The MSW Permits Section has completed a preliminary review of the RA dated Angust 1, 2011, and the revisions dated August 8, 2011, for a Type VTransfer Station. Additional information is necessary to comply with the application requirements of Title 30 of the Texas Administrative Code (30 TAC) Chapter 305 and Chapter 330. The information requested below must be provided prior to fillther application review. When maldng revisions to maps, drawings, and figures which are repeated throughout the application, each map, drawing, and figure must be revised throughout the application. 1. It is not clear whether the person who signed U1e signature page located on page 10 ofTCEQ Form No. 0650 meets the requirements of 30 TAC Section (§)305.44 (relaling to Signatories to Applications). Please include documentation that the person who signs the signature page has the signing qualifications as specified iu 30 TAC §305.44, §s30.59(g), and Section G ofTCEQ Form No. 0650. 2. The text within U1e property owner affidavit located on page 9 of TCEQ Form No. 0650 has been modified to state that the property owner shall not be held responsible for the operation, maintenance, and closure and pOS'HJosure care of the facility.. Please note that in accordance with 30 TAC §s30.59(d)(2)(A) the property owner affidavit must include an acknowledgment that the State of Texas may hold the property owner of record either jointly or severally responsible for the operation, maintenance, and closure and post-closure care of the facility. In addition, please note that the text within the properly owner affidavit should not be modified from the original text contained within page 9 ofTCEQ Form No. 0650. Please resubmit a properly completed property owner affidavit with your next submittal. Please ensure that the standard text within the property owner affidavit will not be modified. 3. Part V of the TCEQ Core Data Form (TCEQ Form No. 10400) does not include the date that the form was signed. Please revise Part VofTCEQ Form No.10400 to include the date that the form was signed. 1) .0. Box 13087 • A1rntin, Texas 78711-3087 ° 512-239-1000 .. www.tceq.texas.gov How fa our custo1ner service'~ wvvvv.tceq.texas.gov/goto/c11ston1ersurvey Mr. Ernest Kaufmann Page 2 August 15, 2011 4. Part I of the RA does not include a listing of all permits or construction approvals received or a1Jplied for. In accordance vrith 30 T_,_a_._c §305.45(a)(7), please revise Part I oftl1e RA to include a listing of all permits or construction approvals received or applied for in accordance with the cited rule. For those permits listed in §305.45(a)(7), please indicate whether the applicant has applied, received approval, or whether it is not applicable. Please submit an original and three (3) copies of the application revisions within fourteen (14) days of the date of this letter. Your response must be in a fonn that allows for the replacement of application pages with revised pages. According to 30 TAC §s30.57(g)(6), revisions must have a revision date and note that the sheet is revised in the header or footer of each revised sheet or page. Since your application is under a preliminary review, please use the label, "Pl·elim-Review #(date)" ill the headel' or footer to identify your NOD response. Please complete Pages 1 and 2 of the Part I Form to include with your response and mark the boxes to indicate that your response is a "Notice of Deficiency Response" for the "Registration Application." In accordance with 30 TAC §§281,5(1) and 305-44, please also include a new, original signature page, Page 10 of the Part I Form, as part of your response. Along with the original signature, the certification statement should indicate the name, title, and address of the responsible official. This form and the Core Data Form are available on our Website at: http:/ /Vl"AW. tceq.state. tx. us/permitting/waste_permits/msw_permits/ perm_reg:_Jnod.html#all. Failure to submit the requested information will result in the application being returned to the applicant. If you have any questions, please contact me at (512) 239-2580. Please include the mail code MC 124 when you address written correspondence. Sincerely, u M. b J4E'. ·~ RU en eza, r.,