ILLINOIS POLLUTION CONTROL BOARD
May 4,
1995
MEDICAL DISPOSAL SERVICES,
)
INC.,
Petitioner,
V.
)
PCB 95—75
PCB 95—76
ILLINOIS ENVIRONMENTAL
)
(Permit Appeals
-
Air,
PROTECTION AGENCY,
)
Land) (Consolidated)
)
Respondent.
DISSENTING OPINION
(by J. Theodore Meyer):
I respectfully dissent from the majority order
in this
matter because
I believe siting approvals are freely
transferable.
Therefore,
I would have granted petitioner’s
motion for summary judgment.
I do not believe Section 39.2(a)
is the appropriate section
on which to rule in this case.
Even if it was, Section 39.2(a)
as amended only gives a local siting authority the discretion to
consider the operating experience and history of an applicant.
In addition, Section 39.2(a) does not delineate prior bad acts as
a criteria to consider, which seems to be at the heart of today’s
decision.
The pertinent section to this case is Section 39(c). Section
39(c) was not amended and refers only to proof of location
approval, not applicant or facility approval.
(415 ILCS
5/39(c)).
Thus,
I believe previous Board cases which hold that
siting approval is location—specific,
and therefore a
transferable instrument,
is still good law.
(~
Christian
County Landfill.
Inc.
v. Christian County Board, PCB 89-92
(1989); Concerned Citizens Group.
et al.
v. County of Marion and
I.S., Inc., PCB 85—97
(1985).
In Christian County Landfill, the Board rejected the
county’s placement of a subject condition on a siting approval
which required any buyer or subsequent owner of the site to
obtain another siting approval.
(PCB 89-92).
The majority in
today’s opinion narrowly construed Christian County Landfill to
be applicable only to those sites which have already received
permits,
and thus distinguishable from the instant matter.
I
find no such restriction in the Christian County Landfill
opinion.
Indeed,
in that case, the Board pointed out that
Section 39.2 authorizes the local siting authority to grant
siting approval “only if the proposed facility meets the criteria
set forth therein”, and that “njowhere
in the criteria
is there
any reference to future transfer of ownership of the proposed
site.”
(See Christian County Landfill at 7,8.)
2
The Board then interpreted the silence in Section 39.2 on
this issue to mean “an intent by the General Assembly to limit
the authority of a local unit of government only to reviewing the
merits of the initial application.”
(See Christian County
Landfill at 8.)
Thus,
a local government’s siting authority is
exhausted after it determines the criteria have been met, and the
proper safeguard for reviewing any operational aspects of the
facility will be provided by the Agency.
(~~)
Therefore,
“future transfer” must mean any transfer made after the siting
approval has been determined by the local authority,
including
transfer of property with local siting approval and pending
permit applications.
To construe it any other way is to “create
havoc in the state’s system of waste disposal”, exactly the
situation the Board was trying to avoid.
(~~)
In Concerned Citizens Group, the Board found that the
transfer of a local siting approval to a third party did not
deprive the local siting authority or the public of fundamental
fairness in reviewing the suitability of the transferee.
(PCB
85—97).
Since both cases treat the siting approval process as
site—specific, and therefore transferable,
I see no demonstrated
reason to supplant our previous decisions.
The idea that a site-specific approval is transferable is
well—grounded in the principle that an owner has the unrestricted
right to transfer his property,
including any covenants,
easements and permits that run with the land.
73 C.J.S. Property
§33.
Illinois zoning law reflects this principle,
where good
faith reliance upon a building permit,
or the probability of its
issuance, results in a vested property right
in the intended use
of that property.
(See Village of Palatine v. LaSalle National
Bank,
112 Il1.App.3d 885, 445 N.E.2d
277
(1st Dist.
1983)).
Further,
since a siting approval acts like a permit in that
it is a required step in the construction of a pollution control
facility,
it should be treated as
a permit and held to the
principle that,
“unless a specific completion time is required,
most permits exist until the project for which they were issued
is completed.”
(See In Re Island Club Marina,
Ltd.,
38 B.R. 847
at 851
(Bankr.Ill.
1984); McQuillan, The Law of Municipal
Corporations, §25.152
(3rd Ed.
1983).
The majority’s attempt to
consider a siting approval as anything but a permit is misguided,
especially since it used Section 39, titled “Permits; procedures”
as the basis for its reasoning.
Other areas of law such as bankruptcy, tax, corporations and
patent
law, treat permits as assets that are transferable, even
if the instrument is pending.
(See C.J.S. Bankr §106
(“p)roperty
is generally included in the estate notwithstanding
the fact that it is intangible,... contingent,...or that it
exists by the grace of the government”);
In re Island Marina,
Ltd.,
83 B.R.
847(Chapter 11 debtor’s pre-petition building
3
permits were property of the estate); Kenvon v. Automatic
Instrument Co., 160 F.2d 878
(1947) (an assignment of patent is
not invalidated because invention is assigned before the patent
issues).
The majority’s concern that a company could attempt to
bypass the local siting authority’s scrutiny is a possibility;
however,
I see many more unfavorable probabilities from today’s
decision,
including both of the estate and shareholder scenarios
presented by petitioner.
(See petitioner’s Memorandum in Support
of Motion for Summary Judgment, p.13)
For example,
if a
partnership obtains siting approval, but then dissolves due to a
partner’s death or withdrawal, the remaining partner will have to
reapply for siting approval only because a new partnership or
other entity had to be formed.
One can imagine similar results
for a corporation which,
due to merger, consolidation or
acquisition, changes its name and assets, but remains largely the
same entity which originally applied for and received siting
approval.
Acquiring a bankrupt company’s assets would become
problematic where all assets are purchased with the intent of
continuing the construction of the same facility on the same
location, but suddenly minus the siting approval.
This decision also could hamstring a company’s ability to
obtain financing for a pollution control facility.
If a
financial institution cannot be assured that siting approval will
remain effective for a certain property, then it will view the
investment as pure speculation.
At best, the property owner
could only seek financing once air and land permits were in hand,
a situation which could cripple a landowner due to substantial
costs incurred between siting approval and permit issuances.
on
these legal and practical grounds,
I find that siting approval is
site—specific,
and therefore transferable.
For these reasons,
I respectfully dissent.
a.
~~e~eyer
Board Member
I, Dorothy M. Gunn,
Clerk of the Illinois Pollution Control
Board, hereb~,certifythat the above dissenting opinion was filed
on the
/~‘~ day of
_______________,
1995.
Do~othyM.
G~inn, Clerk
Illinois PoWLution Control Board