Phillips Petroleum Co. v. State Commission On Environmental Quality

Appellant Phillips Petroleum Company ("Phillips") contends by one issue that the district court erred in affirming a decision by appellee Texas Commission on Environmental Quality to grant nitrogen oxide (NOx) emissions allowances for eight boilers to appellee Sweeny Cogeneration Limited Partnership ("SCLP"). Phillips claimed entitlement to the allowances as the owner of the boilers, whereas SCLP claimed entitlement because it controlled the boilers in a cogeneration facility that it operated within Phillipss refinery. Phillips argues that the Commission acted arbitrarily and unreasonably by considering SCLPs "operational control" instead of Phillipss ownership in allocating the allowances. For the reasons set forth below, we affirm the judgment of the district court affirming the decision of the Commission.