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HomeMy WebLinkAboutDSHW-2025-001184 195 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144810 • Salt Lake City, UT 84114-4810 Telephone: (801) 536-0095 • Fax: (801) 536-0061 • T.D.D.: (801) 536-4284 www.deq.utah.gov Printed on 100% recycled paper State of Utah SPENCER J. COX Governor DEIDRE M. HENDERSON Lieutenant Governor Department of Environmental Quality Kimberly D. Shelley Executive Director Ty L. Howard Deputy Director December 3, 2024 The Honorable Richard D. McKelvie Alpine Mediation & Arbitration Servies 1285 East Yale Avenue Salt Lake City, Utah 84105 Re: Notice of Appointment of Administrative Law Judge Promontory Point Resources Commercial Class V Permit Docket No. SW416 Dear Judge McKelvie: Pursuant to Utah Code 19-1-301.5(5), as the Executive Director of the Utah Department of Environmental Quality, I hereby appoint you to act as an Administrative Law Judge (“ALJ”) in the above captioned matter. This appointment is contingent on entering into a contract for services as described in the statement of work. The Petition for Review (“Petition”) was filed on November 5, 2024, on behalf of Promontory Point Resources, L.L.C. (“PRP” or “Petitioner). The Petition seeks an administrative review of the Division of Waste Management and Radiation Control’s October 7, 2024, decision to deny PRP’s commercial Class V permit application to change its existing for profit in-state Class I landfill to a commercial multi-state regional Class V landfill. The Petitioner’s request for the appointment of an ALJ was also filed on November 5, 2024. The Petitioner is represented by Bradley R. Cahoon, Tyler R. Cahoon, and Cole P. Crowther of Dentons Durham Jones Pinegar, P.C. Douglas J. Hansen, the Director of the Division of Waste Management and Radiation Control, is represented by Raymond D. Wixom of the Utah Attorney General’s Office. Enclosed are copies of the following documents: • Order, dated October 7, 2024; • Petition for Review, dated November 5, 2024; • Request for Appointment of an ALJ, dated November 5, 2024; and, • Motion to Supplement the Administrative Record, dated November 5, 2024. Based on the foregoing, you are requested to conduct a permit review adjudicative proceeding in this matter based on the administrative record and not as a trial de novo, in accordance with Utah Code 19-1-301.5 and Utah Admin. Code R305-7. In addition, you will submit a proposed dispositive action to me that includes written findings of fact, written conclusions of law, and a recommended order. Page 1 of 2 ---oo0oo--- In the Matter of: : : FINAL PERMIT ORDER Promontory Point Resources, LLC SW416 : : ---oo0oo--- This FINAL PERMIT ORDER is issued by the Director of the Division of Waste Management and Radiation Control (Director) pursuant to the Utah Environmental Quality Code, Utah Code § 19-1-301.5, the Utah Solid and Hazardous Waste Act, Utah Code § 19-6-101, et seq., and the Utah Administrative Code R305-7 and R315-301, et seq. BACKGROUND On October 30, 2020, Promontory Point Resources, LLC (PPR) submitted a permit application to reclassify its Promontory Point Landfill (PPL facility) as a Class V commercial nonhazardous solid waste facility. See DSHW-2020-015781. On February 23, 2023, the Director provided a 45-day comment period to receive public comment on the Director’s Provisional Intent to Deny PPR’s application to reclassify the PPL facility as a Class V commercial landfill. The Director also received oral comments at a public hearing on Monday, March 27, 2023. Together with this Final Permit Order, the Director has prepared a Final Statement of Basis and Response to Comments detailing the Director’s reasoning for this Final Permit Order. FINAL PERMIT ORDER After consideration of all comments received and the Administrative Record, the Director hereby DENIES PPR’s application to convert the PPL facility to a Class V commercial nonhazardous solid waste facility. PETITION FOR REVIEW OF FINAL PERMIT ORDER This Final Permit Order is effective immediately. PPR may file a petition for review of this Final Permit Order in a manner and within the time prescribed by Utah Code § 19-1-301.5 and Utah Admin. Code R305-7-203. Dated this 7th day of October, 2024 By: __________________________________________ Douglas J. Hansen, Director Division of Waste Management and Radiation Control DENTONS DURHAM JONES PINEGAR P.C. Bradley R. Cahoon (5925) Tyler R. Cahoon (16412) Cole P. Crowther (16432) 111 South Main Street, Suite 2400 Salt Lake City, Utah 84111 (801) 415-3000 brad.cahoon@dentons.com tyler.cahoon@dentons.com cole.crowther@dentons.com Attorneys for Petitioner Promontory Point Resources, LLC BEFORE THE EXECUTIVE DIRECTOR OF THE UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY AND THE DIRECTOR OF THE DIVISION OF WASTE MANAGEMENT AND RADIATION CONTROL In re matter of: Promontory Point Resources, LLC SW416 PETITION FOR REVIEW By Promontory Point Resources, LLC November 5, 2024 1 PETITION FOR REVIEW 1. This Petition for Review seeks review and remand of a clearly erroneous Final Permit Order (“Order”) by Director Douglas J. Hansen (“Director”) of the Division of Waste Management and Radiation Control (“Division”) of the Utah Department of Environmental Quality dated October 7, 2024 denying Petitioner Promontory Point Resources, LLC’s (“PPR”) commercial Class V permit application (“Commercial Application”) to change its existing for profit in-state Class I landfill to a commercial multi-state regional Class V landfill. (Order at 1.) 2. This Petition is filed by PPR with the Executive Director of the Utah Department of Environmental Quality (“Executive Director”) and the Director pursuant to Utah Code § 19-1- 301.5 and Utah Admin. Code R305-7-203, and § 63G-4-201(3)(a) and 3(b). 3. The Petition is timely. In accordance with Utah Code § 19-1-301.5(6)(b), the Petition was served on November 5, 2024 via hand-delivery and emailed to the Executive Director, the Assistant Attorney General representing the Executive Director, the Director, the Assistant Attorney General representing the Director, and the Administrative Proceedings Record Officer. 4. Under Utah Code § 19-1-301.5(1)(d) and .6(a), PPR has standing to file this Petition because it is the person who applied for a commercial Class V landfill permit that was denied by the Director in his Order. (Order at 1.) 5. The Executive Director has jurisdiction over this Petition pursuant to Utah Code § 19-1-202, § 19-6-101 et seq., and Utah Admin. Code R315-301 to -320. 6. Exhibit 1 hereto contains a list of documents that PPR cites to in this Petition; each document is part of the administrative record pursuant to Utah Code § 19-1-301.5(9)(b). 2 REQUESTED RELIEF AND GROUNDS 7. The Executive Director should vacate the Order, remand the matter back to the Director, and order the Director to approve PPR’s Commercial Application for the following reasons: a. The Director’s interpretation of Utah Code § 19-6-108(10)(b)(i), as applied to PPR by the Director,1 violates the dormant Commerce Clause of the United States Constitution. Stated differently, by rejecting PPR’s Commercial Application based on an interpretation of Section 10(b)(i) that PPR failed to establish the need in the state for additional physical airspace capacity, the Director has imposed a substantial burden on interstate commerce that does not advance putative local benefits. b. PPR’s interpretation of Utah Code § 19-6-108(10)(b)(i) properly applies fundamental rules of statutory construction. The Director’s interpretation does not. Applying all of the provisions of Section 19-6-108(10)(a), PPR’s expert NERA concluded there is a market need for changing PPR’s in-state landfill to commercial. The Director admits that there is a market need to change the in-state landfill to commercial under Section 19-6-108(10)(a). This finding of market need is consistent with the Legislature’s approval to change the in-state landfill to commercial. The Director’s misinterpretation of Section 19-6-108(b)(i) renders Section 19-6- 108(10)(a) inoperable and superfluous. The Director erroneously added substantive words “physical airspace” into Section 19-6-10(b)(i) and did not interpret Section 19-6-108(10) as a whole or in harmony with all provisions of Section 19-6-108(10) and give effect to every word of Section 19-6-108(10). The Director also misinterprets “need” to be only a “physical capacity” 1 As the Director notes, PPR is not arguing that Utah Code § 19-6-108(10)(b)(i) is facially discriminatory, as it applies equally to in-state and out-of-state business. (See Basis at 32.) 3 need, and not an environmental or market need. To deny changing PPR’s existing in-state landfill to commercial solely on the basis that there is no need in the state of Utah for the additional physical airspace capacity is nonsensical. The Director first approved the landfill in 2004, and PPR constructed the first cell of the landfill in 2017. A commercial permit therefore does not add any additional physical airspace capacity. c. The Executive Director should find that it was clearly erroneous for the Director to issue an incomplete Order that makes no determination on whether PPR met Section 19-6-108(11). The Executive Director should find that PPR met the requirements of Section 19- 6-108(11) and remand this matter back to the Director with instructions to find that PPR has met Section 19-6-108(11). PPR satisfies Subsection (11)(a) because the record evidence shows that the expected environmental benefits to the state from PPR’s commercial landfill outweighs any probable adverse environmental effect of which there is none. PPR also satisfies Subsection (11)(b) because the record evidence proves the need for PPR’s commercial landfill to serve the industry in the state. d. PPR has been substantially prejudiced by the Director’s clear error because PPR would have received a commercial permit but for the Director’s clearly erroneous interpretation and application of Section 19-6-108(10)(b)(i). The Director’s clear errors are not harmless because the clear errors affected the outcome as the Director should have approved of PPR’s Commercial Application. 4 PPR’S ARGUMENTS ON APPEAL 8. Argument No. 1: The Director’s interpretation and application of Utah Code § 19-6-108(10)(b)(i) to PPR violates the Dormant Commerce Clause of the United States Constitution. a. Preservation: PPR preserved this argument in its written public comments submitted on April 8, 2023. (See Public Comment on Promontory Point Class V Landfill by Promontory Point Resources, LLC, dated April 8, 2023 (“PPR Comment”) at 11-23; NERA Economic Consulting’s (“NERA”) Response to Provisional Statement of Basis, dated April 7, 2023 (“NERA Comment”) at 2-4; and NERA PowerPoint titled “Reply to ‘Statement of Basis: Intention to Deny Class V Landfill Application’” at 4, 6, 8.) b. Standard of Review: A petition for review must demonstrate that the Director’s “permit decision is based on a finding of fact or conclusion of law that is clearly erroneous,” and if the Director “addressed a finding of fact or conclusion of law . . . in a response to public comment, a citation to the comment and response that relates to the finding of fact or conclusion of law and an explanation of why the director's response was clearly erroneous or otherwise warrants review.” Utah Code § 19-1-301.5(6)(d)(v)(G)-(H). 9. Argument No. 2: The Director’s interpretation of Utah Code § 19-6-108(10)(b)(i) is clearly erroneous. a. Preservation: PPR preserved this argument in its written public comments submitted on April 8, 2023. (See PPR Comment at 3, 14-17, 23; NERA Comment at 11-12.) b. Standard of Review: See standard of review for Argument No. 1, supra. 10. Argument No. 3: It was clearly erroneous for the Director to make no determination on whether PPR met Section 19-6-108(11). 5 a. Preservation: See PPR Comment at 20-22; NERA Comment at 17-19. b. Standard of Review: See standard of review for Argument No. 1, supra. 11. Argument No. 4: PPR has been substantially prejudiced by the Director’s clear errors of misinterpreting Utah Code § 19-6-108(10)(b)(i) and failing to make a determination under Subsection (11). a. Preservation: See PPR Comment at 23. b. Standard of Review: See standard of review for Argument No. 1, supra. 6 PROCEDURAL HISTORY PPR’s Landfill and Commercial Application 12. PPR owns and operates the Promontory Point Landfill that is currently permitted as a for-profit in-state Class I landfill.2 (See Final Statement of Basis (“Basis”) at 1.) In 2020, PPR submitted the Commercial Application to convert the landfill from a Class I landfill to a Class V commercial landfill. (Id.) 13. Utah Code § 19-6-108(10)-(11) governs all commercial3 landfill applications but there are no agency rules implementing the statute.4 Before PPR submitted its Commercial Application, PPR and its Ph.D. economist expert at NERA met twice with then-Director Ty Howard and his staff to receive verbal direction on the requirements of Utah Code § 19-6- 108(10)-(11). (PPR Comment at 5; Appendices 11 and 12 thereto.) At the first meeting on August 13, 2020, Director Howard confirmed that NERA’s economic approach to Utah Code § 19-6-108(10)-(11) made sense to him and was logical. (PPR Comment at 5; Appendices 11 and 12 thereto). Director Howard advised NERA to include a review of the ECDC commercial landfill and an analysis of the regional municipal solid waste market because neither was included in the commercial application that PPR withdrew in 2018. (PPR Comment at 5; Appendices 11 and 12 thereto.) 2 The Order incorrectly states that PPR’s Class I landfill is not for profit. (Basis at 1.) There are two types of Class I landfills: non-commercial or for profit like PPR’s that is permitted to be under contract with local governments within the state to dispose of nonhazardous solid waste generated within the boundaries of the local governments. See Utah Code § 19-6-102(3)(b)(iii); Utah Admin. Code R315-301-2(7). 3 Because the statute uses the term “commercial,” this Petition uses that term, rather than Class V. 4 Up until June 2024, Utah Admin. Code R315-310-3(3)(a) cryptically stated that a commercial Class V application must provide the information required by Utah Code § 19-6-108(10), but incorrectly excluded Subsection (11). 7 14. At the second meeting on October 27, 2020, NERA presented its Needs Assessment (defined below) to Director Howard, and he confirmed again that NERA’s assessment made sense to him and was logical. (PPR Comment at 5; Appendices 11 and 12 thereto.) Three days later, PPR filed its Commercial Application with the exhaustive 149-page NERA Needs Assessment,5 among many other supporting materials. (PPR Comment at 5; Basis at 1.) On May 4, 2021, the Division sent PPR a letter confirming that the 2020 Commercial Application was complete. (PPR Comment at 5 and Appendix 13 thereto.) SC&A Evaluation of NERA’s Needs Assessment 15. The Director retained SC&A to review NERA’s Needs Assessment. (Basis at 2.) Neither the Director nor any of the staff of the Director or of SC&A is an economist. (PPR Comment at 8; Appendix 14 thereto at 5.) SC&A provided the Director with an expansive explanation of how NERA’s Needs Assessment is based on market analyses rather than a concept of excess “physical” capacity across an entire region. (See SC&A Evaluation of NERA’s Needs Assessment at 9-12.) SC&A ignores the economics analyses and contends that there is no “need” given that there already is more than enough existing “physical” landfill capacity in the state and region. (PPR Comment at 8; SC&A Reply to NERA Needs Assessment at 24.) SC&A did not point to any language in Utah Code § 19-6-108(10)-(11) to support considering existing physical landfill capacity as the sole indicator of need. (PPR Comment at 8; SC&A Reply to NERA Needs Assessment at 24.) 5 https://lf-public.deq.utah.gov/WebLink/DocView.aspx?id=422840&repo=Public&searchid=4c7c7125-0143-40a4-86ae-3c98c1c7e0f7 8 16. On November 21, 2021, NERA submitted a Reply to SC&A’s Response to NERA’s Needs Assessment, refuting all SC&A’s findings and conclusions. (See NERA’s Reply to SC&A Evaluation at 1.) The Director’s Provisional Basis 17. In February 2023, the Director issued his Provisional Statement of Basis - Intention to Deny PPR’s Class V Landfill Application on grounds that “there is sufficient landfill capacity at existing landfills within PPR’s self-designated wasteshed to meet the current and future needs of the State of Utah.” (Provisional Basis at 4.) PPR Public Comments 18. On March 27, 2023, the Director held a public hearing on the Provisional Basis, where PPR and its expert NERA gave oral comment opposing and refuting the Provisional Basis. (See Public Hearing Meeting Minutes and Recording.) PPR and NERA also submitted extensive written public comments opposing the Provisional Basis on April 8, 2023. (See generally PPR Comment; NERA Comment.) In their written comments, PPR and NERA opposed the Provisional Basis on the following grounds: a. The Director’s Provisional Basis is nonsensical and barred by equitable estoppel; b. The Director’s interpretation and application of Utah Code § 19-6-108(10)(b)(i) violates the United States Constitution; c. The Director’s interpretation of Utah Code § 19-6-108(10)(b)(i) would be rejected because it violates the dormant Commerce Clause; d. NERA’s interpretation of Utah Code § 19-6-108(10)(b)(i) follows rules of construction; e. The Director’s interpretation of Utah Code § 19-6-108(10)(b)(i) is clearly erroneous; f. The Provisional Basis was contrary to the Director’s prior practice; 9 g. PPR’s Commercial Application satisfies all requirements, and NERA’s findings and conclusions are uncontroverted that the landfill should be changed to a commercial landfill; and h. The Provisional Basis misrepresented key elements of NERA’s economic wasteshed analysis. (See PPR Comment at 3-4; see generally NERA Comment.) Order and Statement of Basis 19. On October 6, 2024, the Director issued the Order denying PPR’s Commercial Application. (Order at 1.) The Order included the Director’s Statement of Basis (“Basis”) and his Response to Comments (“Director’s Response”). (Id.) The Director determined that PPR satisfied all of requirements of Utah Code Ann. § 19-6-108(10), except for Subsection (10)(b)(i), and neglected to make a determination that PPR met Utah Code § 19-6-108(11) on grounds that it was “premature” because PPR had failed to satisfy Utah Code § 19-6-108(10)(b)(i). (See Director’s Response at 38-40; see also Basis at 4-5.) The Director concluded that PPR’s operation plan had: a. met all technical requirements for a commercial landfill, and the landfill did not pose a threat to human health or the environment. Utah Admin. Code R315-302, -303, -308, and -310. b. established the proposed commercial landfill had a proven market of nonhazardous solid waste. Utah Code § 19-6-108(10)(a). c. adequately described the energy and resources recoverable by the commercial landfill. Utah Code § 19-6-108(10)(b)(ii). d. sufficiently described the reduction of nonhazardous solid waste management methods made possible by the proposed commercial landfill. Utah Code § 19-6-108(10)(b)(iii). e. described its limited compliance history. Utah Code § 19-6-108(10)(c). 10 FACTS The Landfill 20. PPR spent nearly $30 million to build the first cell of the landfill in 2017. (See PPR Comment at 4; Appendix 3 thereto.) The landfill is located on the southwestern tip of the Promontory Point Peninsula of the Great Salt Lake within Box Elder County, Utah. (Basis at 1.) There is no dispute that the landfill is safe for disposing of municipal solid waste, and no technical changes are needed to change the landfill to commercial. (Id. at 2-5.) All that would change is the same type of solid waste could be imported from out of state. (Id. at 2.) Commercial Application 21. In 2016, the Utah Legislature passed a joint resolution to change the for-profit in- state landfill to a commercial regional Class V landfill. (Basis at 2.6) In 2017, PPR filed an 6 The Director erroneously states he “isn’t certain the legislative approval continues to be effective.” (Director Response at 38.) He is wrong; the approval remains effective for two reasons. First, Utah Code § 19-6-108(c)(i)(B) was amended to protect PPR’s legislative approval before May 5, 2021 and PPR’s Commercial Application filed before May 5, 2021. The Division issued to PPR a letter dated May 4, 2021 confirming that PPR’s pending Commercial Application was complete. (PPR Comment at 5; Appendix 13 thereto.) Second, the operation 11 application with the Director to change the landfill to a commercial landfill, but PPR withdrew the application in 2018. (Id.) In 2020, PPR filed another Commercial Application, but this time retained Ph.D. economists from NERA to perform the needs assessment (“Needs Assessment”) that Utah Code § 19-6-108(10)-(11) required for only a proposed commercial landfill. (Id. at 1.) Utah Code § 19-6-108(10)-(11) 22. The Commercial Application must satisfy the requirements of Utah Code § 19-6- 108(10)-(11), which provides: (10) The director may not approve a commercial nonhazardous solid or hazardous waste operation plan that meets the requirements of Subsection (9) unless the operation plan contains the information required by the board, including: (a) evidence that the proposed commercial facility has a proven market of nonhazardous solid or hazardous waste, including: (i) information on the source, quantity, and price charged for treating, storing, and disposing of potential nonhazardous solid or hazardous waste in the state and regionally; (ii) a market analysis of the need for a commercial facility given existing and potential generation of nonhazardous solid or hazardous waste in the state and regionally; and (iii) a review of other existing and proposed commercial nonhazardous solid or hazardous waste facilities regionally and nationally that would compete for the treatment, storage, or disposal of the nonhazardous solid or hazardous waste; (b) a description of the public benefits of the proposed facility, including: (i) the need in the state for the additional capacity for the management of nonhazardous solid or hazardous waste; (ii) the energy and resources recoverable by the proposed facility; plan of the Commercial Application and the withdrawn application are identical to convert the existing Class I landfill to commercial. No technical changes to the landfill are needed. (Basis at 2.) 12 (iii) the reduction of nonhazardous solid or hazardous waste management methods, that are less suitable for the environment, that would be made possible by the proposed facility; and (iv) whether any other available site or method for the management of hazardous waste would be less detrimental to the public health or safety or to the quality of the environment; and (c) compliance history of an owner or operator of a proposed commercial nonhazardous solid or hazardous waste treatment, storage, or disposal facility, that may be applied by the director in a nonhazardous solid or hazardous waste operation plan decision, including any plan conditions. (11) The director may not approve a commercial nonhazardous solid or hazardous waste facility operation plan unless based on the application, and in addition to the determination required in Subsections (9) and (10), the director determines that: (a) the probable beneficial environmental effect of the facility to the state outweighs the probable adverse environmental effect; and (b) there is a need for the facility to serve industry within the state. 23. The Director determined that PPR’s Commercial Application satisfied all requirements under Subsection (10), except for Subsection (10)(b)(i). The Director interpreted Section 19-6-108(10)(b)(i) to mean need in the state for additional physical airspace capacity. (Basis at 5-7; Director’s Response at 38-40.) 24. The Director declined to make a determination that PPR met Utah Code § 19-6- 108(11) on grounds that it was “premature” because PPR had failed to satisfy Utah Code § 19-6- 108(10)(b)(i). (See Director’s Response at 40.) The Director’s Past Interpretation and Application of Section 19-6-108(10)-(11) 25. Past Directors interpreted and applied Section 19-6-108(10)-(11) consistent with PPR’s interpretation. (PPR Comment at 17-18.) 26. Consistent with Director Howard’s direction to NERA, after Utah Code § 19-6- 108 was amended to require the market needs assessment, the then-Director approved two other 13 commercial landfills, the Intermountain Regional Landfill and the Wasatch Regional Landfill. (PPR Comment at 5; NERA’s Reply to SC&A Evaluation at 5.) The then-Director approved both commercial landfills even though ECDC had over 1,400 years of capacity and was already operating in the same region. (PPR Comment at 5; NERA’s Reply to SC&A Evaluation at 5.) The needs assessment submissions of both of these landfills identified locational/economic need for the new commercial landfills. (PPR Comment at 5; NERA’s Reply to SC&A Evaluation at 5.) Both commercial landfills were approved despite ECDC’s preexisting massive commercial landfill capacity. (PPR Comment at 5.) 27. Consistent with Director Howard’s instruction that NERA consider ECDC’s market and provide a regional market need assessment, in an undated draft memo to Governor Cox, current Director Hansen acknowledged his Division’s prior practice of reviewing market need for new commercial landfills: “An anticipated focus of such a challenge could include questions on how the Division has handled its review of PPR’s application in comparison to the Division’s historical handling of commercial landfill applications.” (PPR Comment at 5-6 and Appendix 15 thereto) (emphasis added).) NERA’s Needs Assessment 28. To satisfy Utah Code § 19-6-108(10)-(11), consistent with the former Director’s instruction and the Director’s past practice on commercial landfill applications, NERA’s Ph.D. economists performed a market analysis for two key waste streams both of which already have a substantial proven market for disposal in Utah: municipal solid wastes (MSW) and contaminated soils from California that are considered nonhazardous solid waste in Utah. (NERA Comment at 13.) The Commercial Application satisfies all requirements under 14 Subsections (10) and (11), as supported by NERA’s expert findings and opinions that are uncontroverted in the record. (Id. at 12-19.) 29. Notwithstanding the agency’s discretion to interpret its statutes, Utah Code § 63G-4-403(4)(h)(iii) authorizes a court to grant relief when an agency action is “contrary to the agency’s prior practice, unless the agency justifies the inconsistency by giving facts and reasons that demonstrate a fair and rational basis for the inconsistency.” Thus, despite the agency’s discretion, it cannot apply statutes inconsistently without a rational explanation, which it has not done here. i. Subsection (10)(a) and (b) 30. With respect to Subsections (10)(a) and (b), NERA demonstrated that PPR’s commercial landfill would be the least-cost provider of disposal services for MSW and California soils relative to any of the commercial landfills regionally and nationally that would compete for each of those waste streams, respectively. (Id. at 13 and 15-17.) PPR’s ability to compete in these markets is based on the landfill’s location compared to each of the potentially competing alternative commercial landfills. PPR’s commercial landfill could provide a lower total-cost-of-disposal service even without offering lower tipping fees than competing landfills. (Id. at 13.) 31. NERA’s detailed transportation cost analysis demonstrates that PPR’s commercial landfill would be the least-cost commercial landfill for MSW throughout a broad region that extends southward along the east of the Great Salt Lake nearly to Ogden, UT and northward across at least seven counties in southwestern Idaho. (Id. at 14.) PPR’s market region encompasses the Utah counties of Box Elder, Weber, and Cache. (Id.) 15 32. Based on the location and high quality of PPR’s landfill, NERA found the following economic and environmental public benefits to the state from changing the PPR landfill to commercial: Economic Public Benefits • A reduced total-cost-of-disposal for municipal solid waste (MSW) disposers in a large region including much of northern Utah, plus indirect savings through competition. o Up to $793,000 in direct savings annually for commercial MSW generated in Utah. o Up to $676,000 in direct savings annually for residential MSW generated in Utah. • Macroeconomic benefits to Utah from the waste streams that would flow to PPR, with each increment of 100,000 tons that PPL imports into the state benefitting the economy of Utah by: o 30 to 40 additional jobs. o $5.5 to $6.1 million dollars of annual output. o $200,000 in revenue to Box Elder County. o $21,000 in revenue to the State of Utah. (Id. at 2.) • There will be need emerging over a longer period of time in those three counties [Box Elder, Weber, and Cache] as they consider how to handle their limited residential MSW landfill capacity. That also would have financial value on the order of tens of thousands of dollars per year, once it becomes a fact. (Id. at 16.) Environmental Public Benefits • Providing access to a state-of-the-art landfill meeting modern standards of environmental protection to communities and businesses in northern Utah (and southern Idaho), some of which currently rely on older, less environmentally sound landfills. For example, Box Elder County’s Little Mountain Landfill is unlined. (Id. at 3.) • PPR’s permit agreements with Box Elder County for minimizing dust from the landfill. (Id. at 17.) • The route for transporting wastes to PPR’s landfill that are within its economic wasteshed will be on less-congested freeways than if those same wastes were to be transported to any of the landfills on the south side of the Great Salt Lake. (Id.) 16 • A net reduction in greenhouse gases and criteria pollutants by adding PPR’s commercial landfill as another disposal option, and a net reduction in rail emissions from hauling excavated wastes from northern California to PPR’s landfill rather than at ECDC because the approximately 200 mile in-state rail transport segment from PPR’s landfill to ECDC could be eliminated. (Id.) • Plans for installing a solar microgrid to meeting facility power needs and installation of a gas-collection system to capture methane, as well as its ability to use parts of the site to segregate waste, stockpile inert materials for beneficial reuse and implement waste-processing technologies to recover embodied energy. (Id. at 16.) 33. The Director has not refuted any of NERA’s calculations and findings supporting these economic and environmental public benefits. (See generally, Order, Basis, and Director’s Response.) ii. Subsection 11 34. With respect to Subsection (11), although the Director erroneously did not make a determination on Subsection (11), PPR’s Commercial Application satisfies Subsection (11), as supported by NERA’s expert findings. (Director’s Response at 40.) 35. Subsection 11(a) requires the Director to determine that the probable beneficial environmental effect of the PPR commercial landfill outweighs its probable adverse environmental effect. NERA identified several probable beneficial environmental effects from changing PPR’s landfill to commercial. (NERA Comment at 3, 16, 17.) Regarding the probable adverse environmental effect, there is none. (Basis at 2-5.) The probable beneficial environmental effect of changing PPR’s landfill to commercial is diverting Utah waste to a state- of-the-art, high-quality landfill away from less environmentally protective landfills in northern Utah (and southern Idaho) like the unlined Box Elder County’s landfill. (NERA Comment at 3.) Another effect is air quality benefits because of the location of PPR’s landfill. (Id. at 17.) There is no probable adverse environmental effect of PPR’s landfill. (Basis at 2-5; PPR Comment at 17 21.) The landfill has a state-of-the-art design that does not need to be changed to become a commercial landfill. (PPR Comment at 21.) In responding to public comments raising concerns about groundwater contamination; impacts to wildlife, air quality, Great Salt Lake ecosystem, public health; accepting out-of-state and hazardous waste, the Director found no basis because he correctly found that the landfill meets all of the regulatory technical requirements. (See Director’s Response at 4-6.) 36. Subsection 11(b) requires a determination that there is a need for PPR’s commercial landfill to serve industry in the state. Based on the guidance from Division Director Howard, NERA interpreted the term “industry” in this provision to refer broadly to businesses, state and local governments, and residents of the state, rather than narrowly as “industrial activities” only. (NERA Comment at 18; PPR Comment at 21 and Appendix 12 thereto.) In giving that guidance, Director Howard explained that he perceived the purpose of Subsection 11(b) to be to avoid permitting a commercial landfill that would do nothing but dispose of out- of-state wastes. (NERA Comment at 18; PPR Comment at 21 and Appendix 12 thereto.) 37. As is clear from the multiple economic and environmental public benefits identified by NERA, there is no reason to conclude that the landfill’s purpose would be to accept only out-of-state wastes. (NERA Comment at 18; PPR Comment at 21.) The NERA analyses demonstrate that there are clear economic and environmental public benefits needed by Utah businesses, residents, and local governments. (NERA Comment at 18; PPR Comment at 21.) As additional evidence that there is a need for the PPR commercial landfill to serve the industry in 18 the state, PPR and three northern Utah businesses have entered into Master Disposal Services Agreements that will take effect upon the approval of the Commercial Application.7 DEMONSTRATION THAT THE DIRECTOR CLEARLY ERRED 38. The Executive Director must vacate the Order, remand the matter back to the Director, and order the Director to approve PPR’s Commercial Application because: (i) the Director’s interpretation of Utah Code § 19-6-108(10)(b)(i) and application to PPR violates the dormant Commerce Clause of the United States Constitution, (ii) the Director’s interpretation of Utah Code § 19-6-108(10)(b)(i) does not properly apply rules of statutory construction and is clearly erroneous, (iii) it was clearly erroneous for the Director to issue the Order without a determination on whether PPR met Section 19-6-108(11), and (iv) PPR has been substantially prejudiced by the Director’s clear error because PPR would have received the commercial landfill permit but for the Director’s erroneous interpretation of Section 19-6-108(10) and application to PPR and his erroneously failing to make a determination under Subsection (11). I. The Director’s Interpretation and Application of Utah Code § 19-6-108(10)(b)(i) Violates the Dormant Commerce Clause. 39. “Under the canon of constitutional avoidance, courts may reject one of two plausible constructions of a statute on the ground that it would raise grave doubts as to the statute's constitutionality.” Castro v. Lemus, 2019 UT 71, ¶ 54, 456 P.3d 750 (cleaned up). “Thus, in applying the canon of constitutional avoidance, [courts] presume that the legislature either prefers not to press the limits of the Constitution in its statutes, or it prefers a narrowed (and constitutional) version of its statutes to a statute completely stricken by the courts.” Id. (cleaned up). The Director’s interpretation of Utah Code § 19-6-108(10)(b)(i), as applied to PPR 7 Simultaneously with the filing of this Petition, PPR has filed a Motion to Supplement the Record with these waste contracts. 19 by the Director,8 violates the dormant Commerce Clause. Stated differently, by rejecting PPR’s application based on an interpretation of Subsection 10(b)(i) that only considers only physical airspace capacity, without regard to location, landfill quality, or cost-of-disposal, the Director has imposed a substantial burden on interstate commerce that does not advance putative local benefits. 40. The United States Constitution gives Congress the exclusive power to regulate interstate commerce (U.S. CONST. art. 1, § 8, cl. 3) and “prohibits state laws that unduly restrict interstate commerce.” Tennessee Wine and Spirits Retailers Ass’n v. Thomas, 588 U.S. 504, 514 (2019) (cleaned up); see also Wendover City v. W. Wendover City, 404 F. Supp. 2d 1324, 1328 (D. Utah 2005) (“While this provision is generally considered ‘a grant of regulatory power to Congress, the [dormant Commerce] Clause has long been understood to have a ‘negative’ aspect that denies the States the power unjustifiably to discriminate against or burden interstate flow of articles of commerce.”) (quoting Oregon Waste Sys., Inc. v. Dept. of Envt’l Quality, 511 U.S. 93, 98 (1994) (emphasis added)). And the Supreme Court has made clear that solid waste, “even if it has no value, is an article of commerce.” Fort Gratiot Sanitary Landfill, Inc. v. Michigan Dept. of Nat. Resources, 504 U.S. 353, 359 (1992). 41. Moreover, “nondiscriminatory regulations” can violate the dormant Commerce Clause when applied in a manner that the “burden imposed on [interstate] commerce is clearly excessive in relation to the putative local benefits.” Wendover City v. W. Wendover City, 404 F. Supp. 2d 1324, 1329 (D. Utah 2005) (citing Pike v. Bruce Church, Inc., 397 U.S. 137, 142 (1970)); see also Island Silver & Spice, Inc. v. Islamorada, 542 F.3d 844, 846 (11th Cir. 2008) 8 As the Director notes, PPR is not arguing that Utah Code § 19-6-108(10)(b)(i) is facially discriminatory, as it applies equally to in-state and out-of-state business. (See Basis at 32). 20 (“If a regulation has only indirect effects on interstate commerce, we examine whether the State’s interest is legitimate and whether the burden on interstate commerce clearly exceeds the local benefits.”) (cleaned up). Under Pike, courts must evaluate: “(1) the nature of the putative local benefits advanced by the Ordinance; (2) the burden the Ordinance imposes on interstate commerce; (3) whether the burden is ‘clearly excessive in relation to’ the local benefits; and (4) whether the local interests can be promoted as well with a lesser impact on interstate commerce.” Blue Circle Cement, Inc. v. Bd. of Cnty. Comm'rs of Cnty. of Rogers, 27 F.3d 1499, 1512 (10th Cir. 1994) (referring to and quoting Pike); see also Nat'l Pork Producers Council v. Ross, 598 U.S. 356, 383 (2023) (“Nat’l Pork”) (noting that Pike “requires a plaintiff to plead facts plausibly showing that a challenged law imposes ‘substantial burdens’ on interstate commerce before a court may assess the law’s competing benefits or weigh the two sides against each other.”) (emphasis in original). 42. Here, the Director (i) ignored facts and law that demonstrates its interpretation and application of Subsection 10(b)(i) imposes a substantial burden on interstate commerce, and (ii) failed to identify putative local benefits advanced by refusing PPR a commercial permit that justify imposing the substantial burden on interstate commerce. A. Denying The Commercial Permit Imposes A Substantial Burden On Interstate Commerce. 43. “Pike requires a plaintiff to plead facts plausibly showing that a challenged law imposes ‘substantial burdens’ on interstate commerce before a court may assess the law’s competing benefits or weigh the two sides against each other.” Nat’l Pork, 598 U.S. at 383 (emphasis in original). PPR has met this burden. However, the Director ignored critical factual evidence and legal arguments to erroneously conclude that a substantial burden has not been shown. (See Director’s Response at 33). Indeed, the Director’s interpretation and application of 21 Subsection 10(b)(i) substantially burdens interstate commerce by preventing competition and out-of-state customers from disposing of waste at their lowest cost option. i. Protecting Utah’s incumbent commercial landfills from new competition substantially burdens interstate commerce. 44. Courts have held a statute “greatly impacts interstate commerce [when] it does not allow for competition from any outside source.” Wendover City, 404 F. Supp. 2d at 1331. Indeed, local laws that insulate established companies from new competition based on a “need assessment” for new entrants have been found to violate the dormant Commerce Clause. See, e.g., H.P. Hood & Sons, Inc. v. Du Mond, 336 U.S. 525, 545 (1949); Walgreen Co. v. Rullan, 405 F.3d 50, 56 (1st Cir. 2005); Yamaha Motor Corp., v. Jim’s Motorcycle, Inc., 401 F.3d 560, 570-74 (4th Cir. 2005); Fla. Transp. Servs., Inc. v. Miami-Dade Cnty., 703 F.3d 1230 (11th Cir. 2012) (“FTS”). 45. FTS is instructive. There, the Eleventh Circuit Court of Appeals held that “the County’s stevedore permit ordinance, as applied . . . improperly excluded Florida Transportation and other stevedores who wished to apply for new permits from the interstate stevedore market at the Port of Miami, while at the same time providing automatic renewals for the existing and entrenched stevedores.” FTS, 703 F.3d at 1262. The court held the ordinance failed the “undue burden test” and, therefore, “violates the dormant Commerce Clause.” Id.; see also Cloverland- Green Spring Dairies, Inc. v. Penn. Milk Mktg. Bd., 298 F.3d 201, 214 (3d Cir. 2002) (noting that a statute may be invalid under the dormant Commerce Clause “if it favors only a single or finite set of businesses”). 46. Similarly, the Director has interpreted the statute to determine that because there is remaining “physical airspace capacity” at preexisting commercial landfills, new commercial landfills will not be approved. In other words, a new commercial landfill will not be approved if 22 it would compete with existing commercial landfills. But just as Wendover City, FTS, and the other case cited herein hold, such a determination by definition imposes a substantial burden on interstate commerce. 47. The Director’s reliance on Nat’l Pork is not helpful. (Director’s Response at 34). Importantly, the application of the statute in Nat’l Pork was not anti-competitive. That is, it did not hold that new pork producers were precluded from operating in California because there was no more need for pork. Rather, it merely required that all pork producers be governed by the same requirements if they were to provide pork to California. That is not the case here. It is the anti-competitive nature of the Director’s application of the statute, coupled with increased costs to out-of-state customers that creates the substantial burden on interstate commerce. 48. Indeed, as NERA explained, the Director’s interpretation of the statute raises an anticompetitive barrier to entry for any new commercial landfill that might wish to enter the market and compete with existing commercial landfills. (See NERA Comment at 4). Moreover, NERA presented quantitative evidence of the effects of this anticompetitive barrier to enter interstate commerce. (See NERA Needs Assessment at 22.) For example: • NERA estimates that if the PPR landfill were granted a commercial Class V permit, it would produce direct benefits to Idahoan residents and businesses disposing of municipal solid waste of approximately $1.2 million annually by reducing the cost of disposing of that waste (Promontory Point Landfill Class V Permit Needs Assessment Report Volume I, p. 22). This means that the costs of disposing of municipal solid waste to these Idahoans are increased by $1.2 million annually than they would otherwise be if the PPR commercial permit is granted. • If the PPR landfill were granted a commercial permit, it would produce benefits to Idaho waste disposers in the form of competition between landfills on tipping fees. “Such competitive price pressures will be strongest in the outer portions of the region that we estimate to be PPR’s economic wasteshed,” which includes portions of Idaho. Id. at 23. Under its Class I permit, the PPR landfill cannot currently accept waste from Idaho, so there are no specific examples of competition reducing tipping fees as there are for Utah. 23 • NERA also estimates that if the PPR landfill were granted a commercial permit, “the benefits to Californians could range from $3 million to $6 million per year” for those seeking to dispose of excavated soils. Id. at 35. This means that the cost of disposing of excavated soil from Northern California are higher by $3 million to $6 million per year than they would be if the PPR landfill was granted a commercial permit. • Without the PPR commercial landfill, NERA’s estimate of the costs to out-of-state waste disposers ranges from at least $4.2 million to $7.2 million higher annually than they would if the PPR landfill was granted a commercial permit. 49. NERA has also explained there are other potential interstate waste streams that have not been analyzed in detail, which also faced increased costs without the PPR commercial landfill. (Id. at 39-42.) Significantly, the Director has not challenged any of NERA’s estimates. Instead, unlike the courts who have already determined that preventing competition constitutes a substantial burden on interstate commerce, the Director wrongfully concludes PPR failed to show a substantial burden. (Director’s Response at 34.) 50. In short, the Director’s denying PPR commercial status prevents out-of-state demand for a new northern commercial landfill from being met, and protects incumbent commercial landfills from facing new competition. This, on its own, creates a substantial burden on interstate commerce, and PPR has therefore met its burden. ii. Preventing out-of-state customers from disposing of waste at their lowest cost option substantially burdens interstate commerce. 51. The Director baldly concludes that his application of Subsection 10(b)(i) “has no actual effect on out-of-state waste disposers.” (Id.) Yet, the Director offers no substantive justification for that assertion, which contradicts NERA’s extensive and detailed analysis that estimates how denying a commercial permit increases disposal costs for out-of-state waste disposers relative to granting the permit. Additionally, the increase in costs is based on total cost- of-disposal and not solely on travel distance. NERA did not “allege” out-of-state waste disposers would face higher costs—this conclusion is the result of a substantive analysis. NERA has 24 analyzed total-cost-of-disposal for out-of-state waste disposers such as MSW disposers in Idaho and excavated soil disposers in California. Thus, the Director’s criticism that PPR “is not an out- of-state waste disposer” is irrelevant in determining whether a substantial burden is imposed on interstate commerce. (See Director’s Response at 34.) 52. The Director either ignored or chose to not refute the extensive evidence NERA provided to show that by denying PPR a commercial permit, out-of-state customers are unable to dispose of waste at their lowest cost option. This, by definition, substantially burdens interstate commerce. The Director claims that this burden is “incomparable” to that identified in Nat’l Pork (Director’s Response at 34), but the Director does not cite to any threshold amount below which a burden on interstate commerce can be dismissed as insubstantial. The Director therefore erred in determining that PPR did not meet its burden in showing the denial of its commercial permit imposed a substantial burden on interstate commerce. B. Putative Local Benefits Are Not Being Advanced By Denying The Commercial Application. 53. Once a substantial burden on interstate commerce has been identified, courts analyze whether putative local benefits are advanced that justify the burden. See Pike, 397 U.S. at 142 (1970). “The mere incantation of a purpose to promote the public health or safety does not insulate a state law from Commerce Clause attack. Regulations designed for that salutary purpose nevertheless may further the purpose so marginally, and interfere with commerce so substantially, as to be invalid under the Commerce Clause.” See Blue Circle Cement, Inc. v. Bd. of Cnty. Comm'rs of Cnty. of Rogers, 27 F.3d 1499, 1512 (10th Cir. 1994); see also Wendover City, 404 F. Supp. 2d at 1327 (finding the alleged putative local benefit of “providing healthy and safe water to their residents” was not supported by facts to show the “water supply was somehow unhealthy or unsafe”). 25 54. In Blue Circle, the county argued its ordinance that imposed a substantial burden on interstate commerce was justified because “the putative local interest . . . is the health and safety of the County’s residents.” Id. But the evidence before the Court revealed “that the [waste] that Blue Circle proposes to burn, or the by-products of combustion of such [waste], would not present any significant health or safety hazard.” Id. at 1513. Accordingly, the court held the ordinance violated the dormant Commerce Clause. 55. Like the county in Blue Circle, the Director broadly cites “the protection of human health and the environment” as the alleged local benefit derived from denying the PPR landfill commercial permit. (Director’s Response at 35.) The Director then states the local benefits enumerated in Subsection 10 “are within the realm of Utah’s police powers and clearly outweigh the hypothetical, unsupported, and likely implausible, increase in transportation cost for out-of-state waste disposers alleged by PPR.” (Id.) However, the Director has cited no evidence that such benefits are actually advanced by denying the PPR landfill a commercial permit. Indeed, the Director concedes PPR’s landfill meets all the necessary standards to become a commercial landfill and does not pose a risk to the environment or public health. (Basis at 2-5.) The Director also fails to provide a basis to conclude NERA’s estimates of the burden on interstate commerce caused by denying the PPR landfill a commercial permit are “likely implausible.” (Director’s Response at 35.) 56. Accordingly, there is no benefit derived that “will benefit, rather than degrade, human health and the environment” by denying the commercial permit. (See Director’s Response at 35.) Ironically, the Director also raises concerns about how “an orphaned [PPR] facility would harm human health and the environment.” (Id.) But, based on NERA’s uncontroverted evidence of the demand for the commercial landfill, the existing PPR landfill is far more likely to become 26 orphaned remaining as an in-state Class I landfill, undermining the Director’s own argument. Further, the Director fails to refute or challenge NERA’s findings that there exists a market of nonhazardous solid waste. See Utah Code § 19-6-108(10)(a). 57. The Director has merely restated enumerated benefits from the statute. This is woefully inadequate. Fatal to the Director’s Order is that he did not identify any facts or basis to support that denying PPR a commercial permit somehow advances or serves putative local benefits, let alone justifies imposing the substantial burden on interstate commerce that has previously been addressed. 58. Moreover, the Director dismisses PPR’s evidence that changing PPR’s landfill to commercial provides actual putative local benefits. NERA identified multiple economic and environmental benefits that PPR’s commercial landfill would provide to the state. See supra, ¶ 32. The Director does not refute NERA’s calculations and findings supporting these benefits. See id. 59. PPR therefore has established substantial burdens on interstate commerce, and the Director has failed to identify putative local benefits that justify imposing those burdens. And so, the Director’s interpretation and application of Subsection 10(b)(i) violates the dormant Commerce Clause. The Executive Director must reject the Director’s unconstitutional construction of Subsection 10(b)(i) and accept PPR’s interpretation that the Utah Benefits show there is a need in the state for the additional commercial capacity for waste disposal. II. The Director’s Interpretation of Utah Code § 19-6-108(10)(b)(i) is Clearly Erroneous. 60. The Director did not properly apply rules of statutory construction, so his interpretation of Utah Code § 19-6-108(10)(b)(i) is clearly erroneous. He correctly concluded 27 that PPR met all of requirements of Section 19-6-108(10), but he is mistaken that PPR did not meet Section 19-108-10(b)(i). 61. Courts “will not infer substantive terms into the text that are not already there. Rather the interpretation must be based on the language used, and we have no power to rewrite the statute to conform to an intention not expressed.” Bryner v. Cardon Outreach, LLC, 2018 UT 52, ¶ 21, 428 P.3d 1096 (emphasis added). When interpreting a statute, the “primary objective is to ascertain the intent of the legislature.” ICS Corr., Inc. v. Utah Procurement Pol'y Bd., 2022 UT 24, ¶ 20, 513 P.3d, 677. “Because the plain language of the statute offers the best evidence of legislative intent, [courts] begin with the statutory text.” Id. (citation omitted). We must review “the plain language of the statute as a whole, and interpret its provisions in harmony with other statutes in the same chapter and related chapters.” State v. Barrett, 2005 UT 88, ¶ 29, 127 P.3d 682 (cleaned up). Courts “presume that the legislature used each word advisedly.” Turner v. Staker & Parson Companies, 2012 UT 30, ¶ 12, 284 P.3d 600, 603. “Wherever possible, we give effect to every word of a statute, avoiding “‘[a]ny interpretation which renders parts or words in a statute inoperative or superfluous.’” Id. (citation omitted). “Words and phrases are presumed to have been used according to their plain, natural, and common import and usage of the language, unless obviously used in a technical sense.” Hayes v. Intermountain GeoEnvironmental Servs., Inc., 2021 UT 62, ¶ 24, 498 P.3d 435 (emphasis added). In the latter instance, “where the legislature has used technical words in a given statutory provision . . . , it is proper to explain them by reference to the art or science to which they are appropriate.” Id. (cleaned up). Likewise, “words and phrases are to be construed according to the context and the approved usage of the language; but technical words and phrases, and such others as have 28 acquired a peculiar and appropriate meaning in law, or are defined by statute, are to be construed according to such peculiar and appropriate meaning or definition.” Utah Code § 68-3-11. 62. Utah Code § 19-6-108(10) applies to all proposed commercial landfills: (10) The director may not approve a commercial nonhazardous solid or hazardous waste operation plan that meets the requirements of Subsection (9) unless the operation plan contains the information required by the board, including: (a) evidence that the proposed commercial facility has a proven market of nonhazardous solid or hazardous waste, including: (i) information on the source, quantity, and price charged for treating, storing, and disposing of potential nonhazardous solid or hazardous waste in the state and regionally; (ii) a market analysis of the need for a commercial facility given existing and potential generation of nonhazardous solid or hazardous waste in the state and regionally; and (iii) a review of other existing and proposed commercial nonhazardous solid or hazardous waste facilities regionally and nationally that would compete for the treatment, storage, or disposal of the nonhazardous solid or hazardous waste; . . . ” Utah Code § 19-6-108(10)(a) (emphasis added). (b) a description of the public benefits of the proposed facility, including: (i) the need in the state for the additional capacity for the management of nonhazardous solid or hazardous waste; (ii) the energy and resources recoverable by the proposed facility; (iii) the reduction of nonhazardous solid or hazardous waste management methods, that are less suitable for the environment, that would be made possible by the proposed facility; and whether any other available site or method for the management of hazardous waste would be less detrimental to the public health or safety or to the quality of the environment. (Emphasis added.) 29 A. The Director’s Interpretation Is Clearly Erroneous Because He Did Not Properly Apply Rules of Construction to Subsection (10)(b)(i). 63. The Director argues that his interpretation of Subsection (10)(b)(i) follows rules of construction but ironically cites only to one rule of construction and sidesteps9 all the other rules. The Director improperly added the substantive terms “physical airspace” into Subsection 10(b)(i), so it would read, “the need in the state for the additional [physical airspace] capacity.” (Basis at 5.) But the Director also narrowly interprets “need” to exclude consideration of multiple public benefits from the proposed commercial landfill’s location, high quality, and cost of disposal. Where in the statute is the Director justification for this redefinition? The Director also erroneously determined that the physical airspace comprises both commercial and non- commercial landfills, but Subsections (10) and (11) do not apply to non-commercial landfills. (Id. at 6.) Because the non-commercial landfill space in northern Utah totals 144 years, he erroneously concluded PPR did not meet Subsection 10(b)(i). The Director claims this is a “literal” interpretation, but the Legislature intended something different from the language they used. 64. The Director’s focus on the volume of existing physical capacity is nonsensical. PPR’s landfill already exists. It already is part of the volume of physical airspace of Utah. Changing PPR’s landfill to commercial does not add to the volume of physical airspace. The Director concedes there currently is no commercial capacity in the northern Utah wasteshed. (Basis at 6-7.) So when he issues PPR a commercial permit, he just changes PPR’s existing volume to commercial. The Director glaringly does not confront these facts. 9 Cf. “The Sidestep” – Best Little Whorehouse in Texas (Charles Durning) https://www.youtube.com/watch?v=Emc1M5F9I-E. 30 65. PPR’s interpretation of Utah Code § 19-6-108 (10)(b)(i) follows rules of construction and is the only plausible interpretation. Subsection 10(b) requires “a description of public benefits of the proposed facility,” which facility here is proposing to become commercial. Subsection 10(b)(i)’s clause “for the additional capacity” is referring to the proposed additional commercial capacity. The Director contradicts himself and even concedes this point. (See Director’s Response at 13 (“Unlike Utah Code § 19-6-108(10)(a)(iii), Utah Code § 19-6- 108(10)(b)(i) requires PPR to show that there is a need for additional commercial landfill capacity in the State of Utah.”); see also id. at 24 (“PPR has not demonstrated a need within the state of Utah for additional commercial capacity to landfill solid waste.”).) The Director is incorrect that Subsection 10(b)(i) considers existing non-commercial capacity. 66. The Director improperly interprets narrowly the term “need” in Subsection 10(b)(i) to exclude public benefits based on location, landfill quality, and cost-of-disposal. The rules of construction require Section 10 to be construed as a whole, Subsections (a) and (b) must be harmonized, and no new terms should be inferred. Further, the technical words in Section 10 should be explained by reference to the art or science of economics to which they are appropriate. The terms “market,” “price,” “market analysis of the need,” “commercial” and “waste facilities . . . that would compete” in Subsection 10(a) require a market-oriented analysis. (NERA’s Reply to SC&A Evaluation at 2.) The terms “public benefits” likewise are economics terms referring to an addition to societal well-being or an economic gain from the new commercial landfill. (Id. at 3.) According to NERA, “public benefits” refers to the aggregate combination of added forms of societal welfare from having a new commercial landfill. (Id.) Collectively, these are not engineering terms. And the term “including” used in Subsection 31 10(b)(i) means that the list of public benefits from PPR’s commercial landfill in Subsections (i)- (iv) are not exclusive. 67. The “need . . . for the additional capacity” is referring back to the “need” identified in Subsection 10(a)(ii), the “market analysis of the need for” the new commercial landfill. This correct interpretation of Subsection (b)(i) renders operable the market need and competition analyses required by Subsections (a)(ii) and (a)(iii). Applying the rules of construction, Subsection 10(b)(i) requires an analysis of the market need in the state for the additional commercial capacity for waste management. The record confirms there is a market need for changing the PPR landfill to commercial, and PPR meets all of the commercial statutory requirements. 68. The Director, on the other hand, is misinterpreting “need” to exclude public benefits based on the landfill’s location, high-quality, and cost-of-disposal. B. The Director’s Interpretation Is Clearly Erroneous Because It Renders Subsection 10(a)(iii) Inoperative and Superfluous. 69. The Director’s interpretation of Subsection (10(b)(i) renders inoperative Subsection 10(a)(iii), which calls for a review of competing “commercial” landfills. But there is no reason to review competition among commercial landfills if a potentially competing landfill cannot be approved on grounds there is too much preexisting physical landfill airspace. The ECDC commercial landfill has over 1,400 years of capacity remaining (See supra, ¶ 26.) The Director contends that he “could reasonably interpret Utah Code §19-6-108(10)(b)(i) to mean that an aspiring commercial solid waste landfill is required to total all the landfill physical capacity in the state, determine how many years it will take to use up that physical space, and report whether there is need in Utah for more landfill capacity.” (Basis at 11.) And so the 32 Director believes that ECDC alone is adequate to serve the needs of the state, but his thinking ignores the need for location, as explained by NERA: Consider a town with an apartment complex that has a dumpster available to its residents, the capacity of which goes only half used. Now consider what would make sense if another apartment complex were built in a location that is a 10-minute drive away. Residents of the second complex will also need a dumpster for the disposal of their wastes. No one would consider it a reasonable stance for the town (or the apartment building owners) to suggest that there is already more than enough dumpster capacity at the apartment complex 10 minutes away to serve all of the needs of the residents of the second complex. Their “need” is for locationally convenient dumpster capacity and that would mean adding a second dumpster. (NERA’s Reply to SC&A Evaluation at 4.) 70. PPR has demonstrated the need for additional high-quality, environmentally protective, commercial landfill capacity at the PPR location. The Director “believes he has the authority . . . to evaluate the need for physical landfill capacity on a smaller scale, rather than the entire State of Utah.” (Basis at 11.) This assertion exposes the Director’s admission that the location of the landfill capacity matters. The Director is interpreting “need” to mean nothing but physical capacity. This is overly simplistic. 71. The “need” for a commercial landfill depends on both its location and its quality. The Director’s erroneous interpretation led him to conclude that the “Little Mountain Landfill is one hour closer to most of the populated areas of Box Elder County than the [PPR] facility, making the Little Mountain Landfill the closer option.” (Basis at 5.) But he misses that this “closer” landfill is unlined and less environmentally protective than PPR’s landfill. Further, the Director’s consideration of travel time is a simplistic version of NERA’s total-cost-of-disposal analysis, which is a market analysis. Subsection (10)(a)(iii) calls for a market analysis limited to commercial landfills. 33 72. The Director’s contradiction is one that he cannot explain. The rules of construction require him to presume that the legislature used each word advisedly. Does the Director really believe there should be two different market analyses? Why would the Legislature call for a market analysis limited to commercial landfills in Subsection (10)(a)(iii), but then call for the consideration of non-commercial landfills in Subsection (10)(b)(i)? The Director does not explain this contradiction or provide a basis to support considering different types of landfills in Subsections (10)(a)(iii) and (10)(b)(i), respectively. C. The Director’s Interpretation Is Clearly Erroneous Because He Dismisses The Public Benefits Demonstrating The Need In Utah For Approving PPR’s Additional Commercial Capacity. 73. The Director’s attempt to refute the public benefits identified by NERA is clearly erroneous. The Director’s confusion is explained by him and his experts being engineering and environmental specialists, not PhD economists. See e.g., King v. Burwell, 576 U.S. 473, 486 (2015) (in Affordable Care Act case, holding the IRS had “no expertise in crafting health insurance policy.”). The Director listed only four public benefits identified by NERA but described them this way: (1) there is current need among commercial MSW disposers in three Utah counties that has a financial value to them and their customers; (2) there will be need emerging over a longer period of time in those three counties as they consider how to handle their residential MSW landfill capacity limits, which would also have financial value; (3) there is need for more conveniently located modem commercial and residential waste disposal option across six counties in Idaho; and ( 4) there is a need for lower cost disposal options among excavated soil waste disposers in California. The Director categorically disagrees with NERA's findings. (Director’s Response at 39 (cleaned up).) 74. The Director asserts Findings 1 and 2 are refuted by his Basis, but that is clearly erroneous. He incorrectly asserts on one hand, “[a]s the Statement of Basis describes, there is sufficient commercial landfill capacity within PPR’s Utah wasteshed. The commercial capacity 34 available within PPR’s Utah Wasteshed is as much as 144 years.” (Id.) But on the other hand, the Basis finds, “[w]ithin the Utah wasteshed . . . there are no commercial facilities and there are four publicly owned facilities” with a “total capacity of 144 years.” (Basis at 6-7.)10 Which one is it? This conundrum frames the Director’s fundamental clear error of considering physical capacity to be commercial capacity. 75. The Director next fails to reconcile the fact that PPR’s landfill already exists and is part of the northern Utah physical airspace capacity. (See Director’s Response at 39). If the Director is interpreting Subsection 10(b)(i) to mean the need for physical airspace, then that need was determined when the Director approved PPR’s Class I landfill two decades ago. There is no dispute that “Subsection 19-6-108(b)(i) applies to commercial facilities, not noncommercial facilities.” (Id.) Likewise, the “need” is for additional commercial, not noncommercial and commercial or physical airspace capacity. 76. The Director claims Findings 3 and 4 “fail to demonstrate the need in the state for additional capacity,” but that is clearly erroneous because the Director does not confront the following emphasized public benefits to Utah found by NERA: • Increased competition among commercial landfills for municipal solid waste (MSW) disposal services, leading to reduced total-cost-of-disposal for waste disposers in a large region covering much of northern Utah and southern Idaho. These benefits to Utah are both direct (reduced MSW disposal costs for northern Utah) and indirect (as imported MSW from Idaho will help reduce PPR’s average cost per ton that it landfills, and this cost reduction will be passed along to both in-state and out-of-state waste disposers and their customers. (Reply to Statement of Basis: Intention to Deny Class V Landfill Application, at 1.) (Emphasis added.) • Providing access to a landfill meeting modern standards of environmental protection to communities and businesses in northern Utah (and southern 10 Even this assertion is misleading because at the current waste disposal rates in nine years the Logan City-Cache County landfill capacity will be exhausted, in fifteen years two of the four landfills will be out of capacity, and in 36 years, three of the four landfills will be out of capacity. 35 Idaho), some of which currently rely on older, less environmentally sound landfills. For example, Box Elder County’s Little Mountain Landfill is unlined. (Id.) (Emphasis added.) 77. The Director’s conclusion on Finding 4 likewise is clearly erroneous because he fails to acknowledge the public benefits to Utah from PPR’s disposing of California waste in its commercial landfill: The ability to efficiently dispose of nonhazardous waste from other states (e.g., California excavated soils), allowing PPR to operate at scale and reducing the average cost per ton that PPR landfills. Again, this benefits Utah by allowing PPR to pass along cost reductions to in-state customers as well as to the out-of-state waste disposers and their customers. (Id.) (Emphasis added.) 78. The Director’s failure to acknowledge these additional multiple other economic and environmental public benefits identified by NERA supporting the need in Utah for PPR’s commercial landfill is clearly erroneous: Market Public Benefits • Macroeconomic benefits to Utah from the waste streams that would flow to PPR, with each increment of 100,000 tons that PPL imports into the state benefitting the economy of Utah by: o 30 to 40 additional jobs. o $5.5 to $6.1 million dollars of annual output. o $200,000 in revenue to Box Elder County. o $21,000 in revenue to the State of Utah. (See NERA’s Reply to SC&A Evaluation at 2.) (Emphasis added.) Environmental Public Benefits • PPR’s permit agreements with Box Elder County for minimizing dust from the landfill. (Id. at 17.) • The route for transporting wastes to PPR’s landfill that are within its economic wasteshed will be on less-congested freeways than if those same wastes were to be transported to any of the landfills on the south side of the Great Salt Lake. (Id.) • A net reduction in greenhouse gases and criteria pollutants by adding PPR’s commercial landfill as another disposal option, and a net reduction in rail 36 emissions from hauling excavated wastes from northern California to PPR’s landfill rather than at ECDC because the approximately 200 mile in-state rail transport segment from PPR’s landfill to ECDC could be eliminated. (Id.) 79. The Director’s Order is erroneous. The public benefits identified by NERA show the need in the state for PPR’s commercial landfill. The Director is denying northern Utahans (and southern Idahoans) all of these many economic and environmental benefits. All of these public benefits result from the location, high quality, and low cost of disposal of PPR’s landfill as commercial. D. The Legislative History Behind Utah Code § 19-6-108 is Irrelevant. 80. The Director argues the legislative history behind Utah Code § 19-6-108 does not support NERA’s proposition that “‘public benefit’ should be evaluated as an economics-based concept.” (Director’s Response at 10.) Legislative history of Utah Code § 19-6-108(10) is irrelevant because the statute is unambiguous. Zilleruelo v. Commodity Transporters, Inc., 2022 UT 1, ¶ 31, 506 P.3d 509 (“It is elementary that we do not seek guidance from legislative history and relevant policy considerations when the language of the statute is clear and unambiguous. Where statutory language is plain and unambiguous, we will look no further.”). Moreover, “[a] statute susceptible to competing interpretations may nevertheless be unambiguous if the text of the act as a whole, in light of related statutory provisions, makes all but one of those meanings implausible.” Ho v. Dep't of Com., Div. of Occupational & Pro. Licensing, 2023 UT App 87, ¶ 28, 534 P.3d 1150. Importantly here, the Director never argues the statute is ambiguous—a prerequisite to analyzing legislative history. 81. After properly applying the rules of statutory construction, PPR’s interpretation of Subsection 10(b)(i) is the only plausible interpretation because the Director’s construction is 37 unconstitutional and violates rules of statutory construction. Hence, Subsection 10(b)(i) is unambiguous. 82. In any event, the Legislative history of Subsection 10(b)(i) is not helpful. (See Declaration of Lauren Chauncey, attached as Exhibit 1 to the Motion to Supplement the Record filed contemporaneously herewith.) E. The Director’s Past Approvals of Commercial Landfills Supports PPR’s Interpretation of Subsection 10(b)(i). 83. The Director’s approvals of two previously proposed commercial landfills are consistent with PPR’s interpretation of Subsection 10(b)(i), and the Director fails to refute this. 84. Consistent with former Director Howard’s direction to NERA, after Utah Code § 19-6-108 was amended to require the market needs assessment, the Director approved two other commercial landfills, Intermountain Regional Landfill and the Wasatch Regional Landfill. (NERA’s Reply to SC&A Evaluation, Appendix 14 at 5.) The Director approved both of these commercial landfills even though ECDC had over 1,400 years of capacity and already operated in the same region. (Id.) The needs assessment submissions of both of these landfills identified economic locational need for the new commercial landfills. (Id.) The Director determined that there was a need for and approved these two new commercial landfills despite ECDC’s preexisting massive commercial landfill capacity. 85. Consistent with past Director Howard’s instruction that NERA consider ECDC’s market and provide a regional market need assessment, in an undated draft memo to Governor Cox, Director Hansen acknowledged his Division’s prior practice of reviewing market need for new commercial landfills: “An anticipated focus of such a challenge could include questions on how the Division has handled its review of PPR’s application in comparison to the Division’s 38 historical handling of commercial landfill applications.” (NERA’s Reply to SC&A Evaluation, Appendix 15 at 3.) 86. These two past approvals of commercial landfills is consistent with and supports PPR’s interpretation of Subsection 10(b)(i). The Director’s misinterpretation is not a “fair and rational basis for the inconsistency.” Utah Code § 63G-4-403(h)(iii). The need for the additional commercial capacity is determined by the public benefits resulting from landfill’s location, cost of disposal, and high quality. NERA’s expert opinions on the public benefits are uncontroverted. III. The Director Clearly Erred By Failing To Make A Determination On Utah Code § 19-6-108(11). 87. The Executive Director should find that it was clearly erroneous for the Director to make no determination in his Order on whether PPR’s Commercial Application met section 19-6-108(11). The Executive Director should find that PPR meets the requirements of section 19-6-108(11) and remand this matter back to the Director with instructions to issue a new order concluding that PPR’s Commercial Application meets section 19-6-108(11). 88. Utah Code § 19-6-108(11) provides: (11) The director may not approve a commercial nonhazardous solid or hazardous waste facility operation plan unless based on the application, and in addition to the determination required in Subsections (9) and (10), the director determines that: (a) the probable beneficial environmental effect of the facility to the state outweighs the probable adverse environmental effect; and (b) there is a need for the facility to serve industry within the state. (Emphasis added.) 89. PPR satisfies all the requirements of Subsection (11). In considering changing PPR’s landfill to commercial, the Director must weigh the expected environmental benefit to the state against the probable adverse environmental effect. His analysis must be based on PPR’s Commercial Application. The record evidence shows that the expected benefit to the state from 39 PPR’s commercial landfill outweighs any probable adverse environmental effect of which there is none. 90. The probable beneficial environmental effect of changing PPR’s landfill to commercial is diverting Utah waste to a state-of-the-art, high-quality landfill away from less environmentally protective landfills in northern Utah (and southern Idaho) like the unlined Box Elder County’s Little Mountain Landfill. Another effect is air quality benefits because of the location of PPR’s landfill. On the other hand, there is no probable adverse environmental effect of PPR’s landfill. The landfill has a state-of-the-art design that does not need to be changed to become a commercial landfill. In responding to public comments raising concerns about groundwater contamination; impacts to wildlife, air quality, Great Salt Lake ecosystem, public health; accepting out-of-state and hazardous waste, the Director found no basis because he correctly found that the landfill meets all of the regulatory technical requirements. (See Director’s Response at 4-6.) 91. Based on PPR’s Commercial Application, as required under Subsection 11(a), the only conclusion that can be reached by the Director is that the probable beneficial environmental effect to the state from changing PPR’s landfill to commercial outweighs the probable adverse environmental effect. 92. The record evidence proves that PPR likewise has satisfied Subsection (11)(b). PPR’s Commercial Application proves the need for PPR’s commercial landfill to serve industry in the state. Just like Subsection 10, Subsection 11 applies only to proposed commercial landfills. Subsection 11(b) requires the Director to determine that there is a need for PPR’s commercial landfill to serve industry in the state. Former Director Howard gave guidance to NERA to interpret the term “industry” broadly to include businesses, state and local governments, and 40 residents of the state, rather than narrowly as only “industrial activities.” He also explained that the purpose of Subsection 11(b) is to avoid permitting a commercial landfill that would do nothing but dispose of out-of-state (“imported”) wastes. (See PPR Comment at 21; Appendix 12 thereto.) 93. Based on NERA’s uncontroverted findings and conclusions, there is no reason to conclude that PPR would accept only out-of-state wastes. (NERA Response to Provisional Statement of Basis at 18.) The NERA analyses identified multiple economic and environmental public benefits to the state from changing PPR’s landfill to commercial. The Director does not refute any of the calculations or findings supporting these public benefits. The only conclusion that the Director can reach is that there is a need for PPR’s commercial landfill to serve industry in the state with all the identified public benefits. 94. The need for PPR as a commercial landfill to serve industry within the state is further supported by the waste disposal contracts PPR and three northern Utah businesses signed and that are effective upon approval of the Commercial Application. 95. The Executive Director should find that PPR met the requirements of Section 19- 6-108(11) and remand this matter back to the Director with instructions to find that PPR has met Section 19-6-108(11). IV. PPR Has Been Substantially Prejudiced By The Director’s Clear Errors. 96. PPR has been substantially prejudiced by the Director’s clear errors. A “party has been substantially prejudiced if the alleged error was not harmless.” Onysko v. Department of Env't Quality, 2020 UT App 51, ¶ 66, 463 P.3d 669, cert. denied, 466 P.3d 1072 (Utah 2020). And “an error is harmless if it is sufficiently inconsequential that there is no reasonable likelihood that the error affected the outcome of the proceedings.” Id. (cleaned up). 41 97. The Director’s misinterpretation of Section 19-6-108(b)(i) and his failure to make a determination on Section 19-6-108(11) were clear errors and they were not harmless. Those clear errors affected the outcome because the Director should have approved of PPR’s Commercial Application. CLAIM FOR RELIEF 98. Based on the foregoing, the Executive Director should: a. find that the Director’s interpretation of Section 19-6-108(10)(b)(i) is clearly erroneous; b. find that it was clearly erroneous for the Director to make no determination in the Order on whether PPR met Section 19-6-108(11); c. find that PPR met the requirements of Section 19-6-108(10)(b)(i); d. find that PPR met the requirements of Section 19-6-108(11) and remand this matter back to the Director with instructions to find that PPR has met Section 19-6-108(11); e. find that PPR has been substantially prejudiced by the Director’s clear errors; and f. vacate the Order, remand the matter back to the Director, and order the Director to approve PPR’s Commercial Application. DATED this 5th day of November 2024. DENTONS DURHAM JONES PINEGAR P.C. /s/ Bradley R. Cahoon Bradley R. Cahoon Tyler R. Cahoon Cole P. Crowther Attorneys for Promontory Point Resources, LLC 1 SL_7078495.13 CERTIFICATE OF SERVICE I hereby certify that on November 5, 2024, a true and correct copy of the foregoing was served on the following as indicated: Executive Director Kim Shelly Department of Environmental Quality 195 North 1950 West, Fourth Floor Salt Lake City, UT 84116 Via hand-delivery Craig Anderson Office of Attorney General Environmental Division Utah Attorney General’s Office 195 North 1950 West, Second Floor Salt Lake City, UT 84119 Via hand-delivery and email: craiganderson@agutah.gov Via email: rwixom@agutah.gov Director Douglas Hansen Utah Department of Environmental Quality, Division of Waste Management & Radiation Control 195 North 1950 West, Second Floor Salt Lake City, UT 84116 Via email: djhansen@utah.gov Administrative Proceedings Records Officer Environment Division Utah Attorney General’s Office 195 North 1950 West, Second Floor Salt Lake City, UT 84116 Via email: DEQAPRO@utah.gov /s/Carol MacKay Raymond Wixom Office of Attorney General Environmental Division Utah Attorney General’s Office 195 North 1950 West, Second Floor Salt Lake City, UT 84116 2 Exhibit 1 to Petition for Review List of Documents Cited by PPR: 1. Final Permit Order, In the Matter of: Promontory Point Resources, LLC SW416, dated October 7, 2024 (“Order”). 2. Final Statement of Basis – Class V Landfill Application (“Basis”). 3. Response to Comments – Class V Landfill Application (“Director’s Response”). 4. Provisional Statement of Basis – Intention to Deny – Class V Landfill Application (“Provisional Basis”), Appendix 1 to PPR Comment. 5. Public Comment on Promontory Point Class V Landfill by Promontory Point Resources, LLC, dated April 8, 2023 (“PPR Comment”). 6. NERA Economic Consulting’s Reply to Provisional Statement of Basis, dated April 7, 2023 (“NERA Comment”), Appendix 2 to PPR Comment. 7. NERA PowerPoint titled “Reply to ‘Statement of Basis: Intention to Deny Class V Landfill Application, Appendix 2 to PPR Comment. 8. Declaration of Will Spears dated March 31, 2024, Appendix 3 to PPR Comment 9. NERA’s Promontory Point Landfill Class V Permit Needs Assessment Report Volume I, dated October 2020 (“Needs Assessment”), Appendix 10 to the PPR Comment. 10. Second Declaration of Anne Garner, P.G. dated April 7, 2023, Appendix 11 to PPR Comment. 11. Declaration of Dr. Anne Smith, dated April 7, 2023, Appendix 12 to PPR Comment. 12. Application Completeness – Promontory Point Landfill Class V Permit Application and Class I Permit Renewal Application, Box Elder County, dated May 4, 2021, Appendix 13 to the PPR Comment. 13. NERA’s Reply to SC&A Response NERA’s “Promontory Point Landfill Class V Permit Needs Assessment Report” (“NERA’s Reply to SC&A Evaluation”), dated November 12, 2021, Appendix 14 to the PPR Comment. 14. Promontory Point Commercial Landfill Application – Briefing Memo, Appendix 15 to the PPR Comment. 15. SC&A Evaluation of the Promontory Point Resources, LLC Class V October 2020 Needs Assessment Report, dated August 6, 2021 (“SC&A Reply to NERA Needs Assessment”), Appendix 16 to the PPR Comment. DENTONS DURHAM JONES PINEGAR P.C. Bradley R. Cahoon (5925) Tyler R. Cahoon (16412) Cole P. Crowther (16432) 111 South Main Street, Suite 2400 Salt Lake City, Utah 84111 (801) 415-3000 brad.cahoon@dentons.com tyler.cahoon@dentons.com cole.crowther@dentons.com Attorneys for Petitioner Promontory Point Resources, LLC BEFORE THE EXECUTIVE DIRECTOR OF THE UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY AND THE DIRECTOR OF THE DIVISION OF WASTE MANAGEMENT AND RADIATION CONTROL In re matter of: Promontory Point Resources, LLC SW416 REQUEST FOR APPOINTMENT OF ADMINISTRATIVE LAW JUDGE By Promontory Point Resources, LLC November 5, 2024 Pursuant to Utah Code § 19-1-301.5 and Utah Admin. Code R305-7-104(2) and R305-7- 206(2), Petitioner Promontory Point Resources, LLC (“PPR”) hereby requests the appointment of an Administrative Law Judge (“ALJ”) in the above captioned matter. PPR filed a Petition for Review (“Petition”) on November 5, 2025. The Petition requests review and remand of a clearly erroneous Final Permit Order dated October 7, 2024 (“Order”) by Director Douglas J. Hansen of the Division of Waste Management and Radiation Control of the Utah Department of Environmental Quality. The Order incorrectly denied PPR’s commercial Class V permit application to change its existing for profit in-state Class I landfill to a commercial landfill. No other party has requested the appointment of an ALJ in this matter. Accordingly, PPR respectfully requests that the Executive Director appoint an ALJ to conduct a special adjudicative proceeding of PPR’s Petition. DATED this 5th day of November 2024. DENTONS DURHAM JONES PINEGAR P.C. /s/ Bradley R. Cahoon Bradley R. Cahoon Tyler R. Cahoon Cole P. Crowther Attorneys for Promontory Point Resources, LLC 1 SL_7250678.1 CERTIFICATE OF SERVICE I hereby certify that on November 5, 2024, a true and correct copy of the foregoing was served on the following as indicated: Executive Director Kim Shelly Department of Environmental Quality 195 North 1950 West, Fourth Floor Salt Lake City, UT 84116 Via email: kshelley@utah.gov Craig Anderson Office of Attorney General Environmental Division Utah Attorney General’s Office 195 North 1950 West, Second Floor Salt Lake City, UT 84119 Via email: craiganderson@agutah.gov Via email: rwixom@agutah.gov Director Douglas Hansen Utah Department of Environmental Quality, Division of Waste Management & Radiation Control 195 North 1950 West, Second Floor Salt Lake City, UT 84116 Via email: djhansen@utah.gov Administrative Proceedings Records Officer Environment Division Utah Attorney General’s Office 195 North 1950 West, Second Floor Salt Lake City, UT 84116 Via email: DEQAPRO@utah.gov /s/Carol MacKay Raymond Wixom Office of Attorney General Environmental Division Utah Attorney General’s Office 195 North 1950 West, Second Floor Salt Lake City, UT 84116 1 SL_7247510.3 DENTONS DURHAM JONES PINEGAR P.C. Bradley R. Cahoon (5925) Tyler R. Cahoon (16412) Cole P. Crowther (16432) 111 South Main Street, Suite 2400 Salt Lake City, Utah 84111 (801) 415-3000 Brad.cahoon@dentons.com Tyler.cahoon@dentons.com Cole.crowther@dentons.com Attorneys for Promontory Point Resources, LLC BEFORE THE EXECUTIVE DIRECTOR OF THE UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY AND THE DIRECTOR OF THE DIVISION OF WASTE MANAGEMENT AND RADIATION CONTROL In re matter of: Promontory Point Resources, LLC SW416 PROMONTORY POINT RESOURCES, LLC’S MOTION TO SUPPLEMENT THE ADMINISTRATIVE RECORD By Promontory Point Resources, LLC November 5, 2024 Pursuant to Utah Code § 19-1-301.5(9)(c)(ii) and Utah Admin. Code R305-7-209(1), Petitioner Promontory Point Resources, LLC (“PPR”), through undersigned counsel, submits this Motion to Supplement the Administrative Record (“Motion”). INTRODUCTION PPR is the owner of Promontory Point Landfill, currently permitted as a for-profit Class I landfill, located in Box Elder County, Utah. In 2020, PPR filed an application to convert its landfill from a Class I landfill to a Class V commercial landfill (“Commercial Application”). On October 7, 2024, the Director (“Director”) of the Division Waste Management and Radiation Control, Utah Department of Environmental Quality issued an order denying PPR’s Commercial Application. 2 SL_7247510.3 The Director’s sole basis for denying the Commercial Application was that PPR did not satisfy Utah Code § 19-6-108(10)(b)(i) because PPR did not demonstrate a need in the state for additional physical capacity. But the Director’s interpretation of Subsection (10)(b)(i) does not follow rules of statutory construction and is clearly erroneous. The Director argues that the legislative history behind Utah Code § 19-6-108(10)-(11) supports his interpretation, but he is wrong. Counsel for PPR has reviewed the legislative history behind Utah Code § 19-6-108 and found nothing to support the Director’s interpretation. PPR therefore seeks to supplement the record with the Declaration of Lauren Chauncey (“Chauncey Decl.”, attached hereto as Exhibit 1), counsel for PPR, who has reviewed the legislative history on Utah Code § 19-6-108 and can testify that nothing in the legislative history supports the Director’s interpretation of the statute. Moreover, having found Subsection (10)(b)(i) was not satisfied, the Director made no findings with respect to Subsection (11). But each requirement in Subsection (11) was met by the Commercial Application, including Subsection (11)(b) requiring PPR to demonstrate the “need for the facility to serve industry within the state.” PPR therefore seeks to further supplement the record with a number of waste contracts it has with northern Utah companies that will take effect upon the approval of the Commercial Application (collectively, the “PPR Contracts”, attached hereto as Exhibit 2), which demonstrate the need for the PPR’s commercial landfill within the state. RELIEF REQUESTED AND GROUNDS FOR RELIEF PPR respectfully requests that the administrative record be supplemented with the Chauncey Declaration and the PPR Contracts. Good cause exists for supplementing the record with these documents, and doing so is in the interest of justice and necessary for resolution of the issues. Each document provides material information to a determination of whether PPR has 3 SL_7247510.3 satisfied the requirements of Subsections (10) and (11), which are the central issues on appeal. In fact, the supplemented record will further establish that the Director’s denial of PPR’s Commercial Application was clearly erroneous. For these reasons, PPR requests that its Motion be granted. STATEMENT OF FACTS Pursuant to Utah Rule of Civil Procedure 10(c), PPR adopts and incorporates by reference all Procedural History and Facts set forth in its Petition for Review that is being filed contemporaneously herewith. ARGUMENT Under Utah law, the administrative record “consists of [, among other things,] . . . information supplementing the record under Section 19-1-301.5(9)(c) or R305-7-210.” Utah Admin. Code R305-7-209(1). Although “there is a rebuttable presumption against supplementing the record,” “a party may move to supplement the record . . . with technical or factual information.” Utah Code Ann. § 19-1-301.5 (9)(b), (c). The Administrative Law Judge may grant a motion to supplement the record “if the moving party proves that: (A) good cause exists for supplementing the record; (B) supplementing the record is in the interest of justice; and (C) supplementing the record is necessary for resolution of the issues.” Id. Each of these factors supports supplementing the record with the Chauncey Declaration and the PPR Contracts. I. THE ADMINISTRATIVE RECORD SHOULD BE SUPPLEMENTED WITH THE CHAUNCEY DECLARATION. PPR seeks to supplement the record with the Chauncey Declaration to challenge the Director’s contention that the legislative history behind Utah Code § 19-6-108 does not support NERA’s proposition that “‘public benefit’ should be evaluated as an economics-based concept.” Ms. Chauncey, counsel for PPR, reviewed the accessible legislative history, including to the 4 SL_7247510.3 entire portion of the floor debates regarding SB 255 (the bill enacting relevant portions of Utah Code § 19-6-108), and can testify that nothing in the legislative history she reviewed supports the Director’s interpretation of Utah Code § 19-6-108, and the Director fails to cite to any statements to the contrary. The factors under Utah Code § 19-1-301.5(9) are met here. First, the Chauncey Declaration contains factual information regarding the legislative history of the statute at issue. Second, as set forth herein, good cause exists for supplementing the record with the Chauncey Declaration. Third, it is in the interest of justice to supplement the record with the Chauncey Declaration in light of the Division’s misplaced reliance on such history. Indeed, the Division purports to rely, in part, on the legislative history to support its denial of the Commercial Application but fails to identify specifically where it draws that support. This is because nothing in the legislative history supports the Division’s position. Fourth, supplementing the record with the Chauncey Declaration helps resolve the primary issues on appeal. Specifically, the Chauncey Declaration supports PPR’s contention that the Directors interpretation of Utah Code § 19-1- 301.5(9) was clearly erroneous and not supported by legislative history. II. THE ADMINISTRATIVE RECORD SHOULD BE SUPPLEMENTED WITH THE PPR CONTRACTS. The Director failed entirely to make a determination as to whether PPR had met the requirements of Subsection (11), although NERA determined that it had. Accordingly, PPR is requesting that the Executive Director remand this matter to the Director with instructions that PPR has satisfied the requirements of Subsection (11). To further support its argument on appeal, PPR seeks to supplement the record with executed contracts that establish “there is a need for the facility to serve industry with the state.” Utah Code § 19-6-108(11)(b). Each element to support supplementing the record is met here. 5 SL_7247510.3 First, the PPR Contracts contain factual information related to the Commercial Application and establish the requirements of Subsection (11)(b) are met. Second, good cause exists for supplementing the record as the PPR Contracts were not entered into until October 29, 2024, and were therefore not available at the time PPR submitted its public comment. Third, it is in the interest of justice to supplement the record with PPR Contracts, considering their direct relevance to PPR’s satisfaction of the requirements of Subsection (11)(b) and the Director’s failure to make a determination thereon. Fourth, supplementing the record with the PPR Contracts helps resolve an important issue—whether PPR has satisfied the requirements of Subsection (11)(b). Therefore, PPR should be permitted to supplement the record with the PPR Contracts. CONCLUSION Based on the foregoing, PPR respectfully requests the Motion be granted and that it be allowed to supplement the administrative record with the Chauncey Declaration and PPR Contracts. DATED this 5th day of November 2024. DENTONS DURHAM JONES PINEGAR P.C. /s/ Bradley R. Cahoon Bradley R. Cahoon Tyler R. Cahoon Cole P. Crowther Attorneys for Promontory Point Resources, LLC CERTIFICATE OF SERVICE I hereby certify that on November 5, 2024, a true and correct copy of the foregoing was served on the following as indicated: Executive Director Kim Shelly Department of Environmental Quality 195 North 1950 West, Fourth Floor Salt Lake City, UT 84116 Via hand-delivery Craig Anderson Office of Attorney General Environmental Division Utah Attorney General’s Office 195 North 1950 West, Second Floor Salt Lake City, UT 84119 Via hand-delivery and email: craiganderson@agutah.gov Via email: rwixom@agutah.gov Director Douglas Hansen Utah Department of Environmental Quality, Division of Waste Management & Radiation Control 195 North 1950 West, Second Floor Salt Lake City, UT 84116 Via email: djhansen@utah.gov Administrative Proceedings Records Officer Environment Division Utah Attorney General’s Office 195 North 1950 West, Second Floor Salt Lake City, UT 84116 Via email: DEQAPRO@utah.gov /s/Carol MacKay Raymond Wixom Office of Attorney General Environmental Division Utah Attorney General’s Office 195 North 1950 West, Second Floor Salt Lake City, UT 84116 6 SL_7247510.3 EXHIBIT 1 SL_7248859.1 DECLARATION OF LAUREN CHAUNCEY I, Lauren Chauncey, state and declare as follows: 1. I am a resident of Clark County, Nevada, am over 18 years of age, am mentally competent, and have personal knowledge of the facts set forth herein. 2. I am licensed to practice law in the state of Utah, I am an associate attorney employed by Dentons Durham Jones Pinegar, P.C., and I represent Promontory Point Resources, LLC (“PPR”) on its petition for review filed in the matter of PPR Final Permit Order SW416 before the Executive Director of the Utah Department of Environmental Quality. 3. I have researched and reviewed the legislative history of Utah Code § 19-6-108, including by listening to the entire portion of the floor debates regarding SB 255 (the bill enacting relevant portions of Utah Code § 19-6-108), which is accessible at: https://le.utah.gov/av/floorArchive.jsp?markerID=54095. 4. Of the legislative history materials I reviewed, there is nothing that supports the Director’s interpretation of Utah Code § 19-6-108—namely, that the phrase “public benefits” is not an economic-based concept—as set forth in his Final Permit Order and Response to Public Comments (the “Final Permit Order”). 5. I am not aware of any other legislative history materials that would support the Director’s interpretation of Utah Code § 19-6-108, as set forth in the Final Permit Order. 6. I declare under criminal penalty under the law of Utah that the foregoing is true and correct, to the best of my knowledge, information, and belief. DATED this 5th day of November 2024. /s/ Lauren N. Chauncey 7 SL_7247510.3 EXHIBIT 2