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HomeMy WebLinkAboutDSHW-2025-001186 1 Raymond D. Wixom (#3532) Assistant Attorney General DEREK E. BROWN (#10476) Utah Attorney General P.O. Box 140873 Salt Lake City, Utah 84114-0873 385-414-0664 rwixom@agutah.gov Attorney for Director, Utah Division of Waste Management and Radiation Control BEFORE THE EXECUTIVE DIRECTOR OF THE UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY In the Matter of: DIRECTOR’S RESPONSE IN OPPOSITION TO PROMONTORY POINT RESOURCES, LLC’s MOTION TO SUPPLEMENT THE ADMINISTRATIVE RECORD Richard D. McKelvie Administrative Law Judge Promontory Point Resources, LLC Petition for Review of Director’s Order Denying Class V Permit Application Docket No. SW416 January 16, 2025 The Director of the Division of Waste Management and Radiation Control (Director) submits this response in opposition to Promontory Point Resources, LLC’s (PPR) non- dispositive Motion to Supplement the Administrative Record (PPR’s Motion), filed November 5, 2024. PPR’s Motion is not supported by Utah Code § 19-1-301.5(4), (6)(e), (9)(c) or by Utah Admin. Code R305-7-209(1), and the Director therefore requests the Administrative Law Judge (ALJ) deny PPR’s Motion. I. Introduction. 1. A person may not own, construct, modify, or operate a facility for the purpose of disposing of nonhazardous solid waste without first submitting and receiving approval of the Director for an operation plan (permit) for that facility. Utah Code § 19-6-108(3)(a)(i). 2 2. In 2020, PPR applied for a Class V permit that would approve Promontory Point Landfill (PPL) to operate as a commercial facility, authorized to receive nonhazardous solid waste from any source, within or without the state of Utah. Utah Admin. Code R315-301-2(11). The Director issued his intent to deny PPR’s Class V application in February 2023. The Director held a public comment period on his intent to deny PPR’s Class V permit application between February 23, 2023, and April 9, 2023, and held a public hearing on March 27, 2023 (the Public Comment Period). See Admin. Rec. at 4819-32. The Director issued his Final Permit Order denying PPR’s Class V permit application on October 7, 2024. Admin. Rec. at 5464-65. 3. On November 5, 2024, PPR filed a Petition for Review challenging the Director’s denial. On November 5, 2024, prior to the Director filing and serving the Administrative Record, PPR also submitted PPR’s Motion, which requested the ALJ to supplement the Administrative Record with a sworn declaration of Lauren Chauncey (the Chauncey Declaration) and three Master Disposal Services Agreements (the Waste Contracts), all of which were created after the Final Permit Order. On December 3, 2024, the Executive Director appointed the ALJ for this case. 4. On January 13, 2025, the Director filed and served the Administrative Record, which consists of: the order denying the permit application; the permit application; the Director's Statement of Basis; the notice and record of each public comment period and each public hearing; all comments, written and oral, submitted during the Public Comment Period; the Director’s Response to Comments; information requested by and submitted to the Director and designated by the Director as part of the basis for his decision; and additional information specified by rule. He will include documents agreed to by the Director and PPR, should there be any. Utah Code § 19-6-301.5(9)(b); Utah Admin. Code R305-7-209(1). 3 II. Legal Background and Standards. 5. Utah Code § 19-1-301.5 ensures that the Director’s decision to approve or deny a permit is based upon the information he has at the time he makes his decision. If the Director provides a public comment period, anyone who may want to challenge his decision must, during that public comment period, raise any issue or argument that person might use as a basis to challenge the Director’s decision. See id. § 19-1-301.5(6)(e). The potential challenger must support each issue or argument “with information or documentation that is cited with reasonable specificity and sufficiently enables the director to fully consider the substance and significance of the issue.” Id. § 19-1-301.5(4). 6. The Director is required to file and serve an Administrative Record within 40 days after the Executive Director appoints an ALJ under Utah Code § 19-1-301.5. Id. § 19-1- 301.5(8)(a)(i). The ALJ shall conduct his review “based only on the [A]dministrative [R]ecord and not as a trial de novo.” Id. § 19-1-301.5(9)(a). 7. Utah Code § 19-1-301.5(9)(c) establishes a rebuttable presumption against supplementing the Administrative Record. A rebuttable presumption shifts the burden of producing evidence to the party seeking to overcome the presumption. Barron v. Lab. Comm’n, 274 P.3d 1016, 1020 (Utah Ct. App. 2012). That presumption continues until contrary evidence is presented. Wyatt v. Baughman, 239 P.2d 193, 198 (Utah 1951). If the moving party fails to rebut the presumption against supplementing the Administrative Record, such information should be excluded from the Administrative Record. Utah Code § 19-1-301.5(4). 8. Here, PPR is the moving party seeking to overcome the presumption. Under Utah Code § 19-1301.5(9)(c)(iii), the ALJ may grant PPR’s Motion “if [PPR] proves that: 4 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.” 9. These elements are conjunctive, which requires PPR to prove each of the three elements—proving just one or two elements is insufficient to overcome the rebuttable presumption. 10. PPR’s Motion failed to overcome the rebuttable presumption against supplementing the Administrative Record and should therefore be denied. III. The Administrative Record should not be supplemented with the Chauncey Declaration because PPR failed to overcome the rebuttable presumption under Utah Code § 19-1-301.5(9)(c). 11. PPR failed to prove any of the three elements under Utah Code § 19-1-301.5(9)(c) necessary to overcome the rebuttable presumption against supplementing the Administrative Record with the Chauncey Declaration. A. Good cause does not exist for supplementing the Administrative Record with the Chauncey Declaration. 12. Good cause does not exist for supplementing the Administrative Record with the Chauncey Declaration. To demonstrate good cause, one must show why a request should be granted or an action excused. See Good Cause, BLACK’S LAW DICTIONARY (12th ed. 2024). Often, good cause must be predicated upon special circumstances outside of a party’s control and in situations where there is no fault, excusable or otherwise. See Johnson v. Dep’t of Com., 542 P.3d 104, 108 (Utah Ct. App. 2023). 13. PPR failed to demonstrate special circumstances outside of its control or a situation where it was not at fault for failing to include the Chauncey Declaration either in its Class V 5 permit application or public comment during the Public Comment Period. In fact, PPR’s Motion fails to produce any evidence demonstrating good cause for supplementing the Administrative Record with the Chauncey Declaration. Instead, PPR argues “as set forth herein, good cause exists for supplementing the record with the Chauncey Declaration.” PPR’s Motion at 4. However, this conclusory proposition is followed by an analysis of whether supplementing the record is in the interests of justice and necessary to resolve issues in the case. Id. PPR’s Motion includes no independent analysis or evidence to substantiate its claim of good cause. 14. Even if PPR could substantiate its claim of good cause, whether and at which juncture in this case PPR submitted the Chauncey Declaration was entirely within PPR’s control. The Chauncey Declaration is a legal argument that was not prepared until the day PPR filed its motion to supplement the Administrative Record, which was 29 days after the Director issued his Final Permit Order. Consequently, it was neither available to the Director during his evaluation of PPR’s Class V permit application nor his evaluation of PPR’s public comment. It therefore played no role in developing his Final Permit Order. 15. Accordingly, PPR failed to produce evidence to substantiate good cause, which all but forecloses its chances of overcoming the presumption against supplementing the Administrative Record with the Chauncey Declaration. See supra ¶¶ 8-9 (explaining that PPR is required to prove each of the three elements under Utah Code § 19-1-301.5(9)(c)). Notwithstanding this omission, there is no good cause to add the Chauncey Declaration to the Administrative Record. B. Supplementing the Administrative Record with the Chauncey Declaration is not in the interest of justice. 16. The interests of justice might be advanced if an ALJ needed to supplement the Administrative Record to ensure fairness to a party whose rights may be affected by case- 6 specific issues. See Interests of Justice, BLACK’S LAW DICTIONARY (12th ed. 2024). PPR has failed to demonstrate that it would suffer an injustice if the Administrative Record was not supplemented with the Chauncey Declaration. 17. The Chauncey Declaration was executed on November 5, 2024, 29 days after the Director issued his Final Permit Order. It was not part of PPR’s Class V permit application, as would have been appropriate under Utah Code § 19-6-108(10). It was not part of PPR’s comments during the Public Comment Period, as required under Utah Code § 19-1-301.5(4). It played no part in the Director’s evaluation of the Class V permit application, as contemplated under Utah Code § 19-1-301.5(9)(a). Effectively, PPR is asking the ALJ to supplement the Administrative Record with new testimony that was never presented to the Director for consideration, that did not exist until after he issued his permit decision, and concerning which he had no opportunity to cross-examine or otherwise make inquiry. 18. Moreover, the Chauncey Declaration is essentially a legal argument over what certain evidence means and how much weight the ALJ should give to it. It is not technical or factual information; it is an attorney’s opinion on factual information. Ms. Chauncey has demonstrated no more legal expertise in interpreting the meaning of the documents in the legislative history of Senate Bill 255 than any other attorney. Her declaration sets out nothing by way of qualifications, other than her status as an attorney, to offer an expert opinion on the meaning of documents in the legislative history. It is irrelevant to this last factor that PPR may not have foreseen a need for a discussion of the legislative history of Senate Bill 255, which has been in existence since 1990, until it saw the Director’s Statement of Basis. 7 19. Any injustice PPR may suffer from the Chaucey Declaration being excluded from the Administrative Record is far outweighed by the injustice the Director would suffer if it were included. It would be an injustice to the Director to add the Chauncey Declaration to the Administrative Record because such a result would deprive him of the opportunity to fulfil his responsibility to review and reach a conclusion regarding PPR’s Class V permit application. This would necessarily prejudice how the ALJ and Executive Director ultimately evaluate his decision to deny PPR’s Class V permit application. 20. It is not in the interest of justice to add the Chauncey Declaration to the Administrative Record. C. Supplementing the Administrative Record with the Chauncey Declaration is not necessary for resolution of the issues in this case. 21. The primary issue in this case is whether PPR’s Class V permit application demonstrated “the need in the state for additional capacity for the management of nonhazardous solid or hazardous waste” as required by Utah Code § 19-6-108(10)(b)(i). See Petition for Review at 2-5; see also Response to Comments at 8-14, 39-40; Admin. Rec. 5480-86, 5511-12. 22. The Chauncey Declaration is a legal argument and is not necessary in the Administrative Record to resolve the issue of whether “the phrase ‘public benefits’ is not an economic-based concept.” Declaration of Lauren Chauncey, ¶ 4. PPR is able to present its legal argument in the motions and briefs it files in the course of this case. 23. The Chauncey Declaration is PPR’s attempt at excising legislative history, which it finds unfavorable to its position, early in this case’s proceedings. This would complicate further exploration of legislative history at a later juncture. Neither the ALJ nor the Executive Director need or will benefit from including the Chauncey Declaration in the Administrative Record. The 8 Director expects PPR and the Director to disagree on what the Legislature meant by “public benefits” under Utah Code § 19-6-108(10)(b). At that time, the ALJ can weigh the Director’s and PPR’s arguments. The ALJ can consider the legislative history and give it the weight he thinks it deserves. The ALJ has no need for the Chauncey Declaration to do those things, and therefore it is not necessary for the resolution of the issues in this case. 24. PPR has not rebutted the presumption against adding the Chauncey Declaration to the Administrative Record. Therefore, the ALJ should decline, under Utah Code § 19-1-301.5(9)(c), to supplement the Administrative Record with the Chauncey Declaration. IV. The Administrative Record should not be supplemented with the Waste Contracts because PPR failed to overcome the rebuttable presumption under Utah Code § 19- 1-301.5(9)(c). 25. PPR failed to prove any of the three elements under Utah Code § 19-1-301.5(9)(c) necessary to overcome the rebuttable presumption against supplementing the Administrative Record with the Waste Contracts. A. Good cause does not exist for supplementing the Administrative Record with the Waste Contracts. 26. Good cause does not exist for supplementing the record with the Waste Contracts. To demonstrate good cause, one must show why a request should be granted or an action excused. See Good Cause, BLACK’S LAW DICTIONARY (12th ed. 2024). Often, good cause must be predicated upon special circumstances outside of a party’s control and in situations where there is no fault, excusable or otherwise. See Johnson v. Dep’t of Com., 542 P.3d at 108. 27. In attempting to justify adding the Waste Contracts to the Administrative Record, PPR suggests that “good cause exists for supplementing the record as the [Waste Contracts] were not entered into until October 29, 2024, and were therefore not available at the time PPR submitted 9 its public comment.” PPR’s Motion at 5. PPR did not demonstrate special circumstances outside of its control or a situation where it was not at fault for failing to include the Waste Contracts either in its Class V permit application or public comment during the Public Comment Period.1 In fact, the execution and availability of the Waste Contracts was entirely under the control of PPR and its customers. 28. If PPR wanted the Director to consider such contracts as he made his decisions under Utah Code §§ 19-6-108(10), it should have included them as part of its Class V permit application or presented them during the Public Comment Period, as required under Utah Code § 19-1-301.5(6)(e). 29. PPR did not include the Waste Contracts in its Class V permit application. Under Utah Code § 19-6-108(10), PPR was obligated to demonstrate a number of things about its solid waste market, and the Director was responsible for determining whether PPR made those demonstrations. If PPR wanted the Director to consider the Waste Contracts, it should have timely entered into those contracts and included them in its Class V permit application to respond to the information requirements of Utah Code § 19-6-108(10)(a). PPR did not do so, and the Director had no opportunity to consider the Waste Contracts. PPR’s untimely Waste Contracts are irrelevant to PPR’s Petition for Review. 30. PPR did not include the Waste Contracts in the public comment it submitted during the Public Comment Period, as required by Utah Code § 19-1-301.5(4)(a) and (b). The Director held the Public Comment Period on his intention to deny PPR’s permit application. If PPR believed 1 As described above, under Utah Code § 19-1-301.5(4), “a person who challenges an order or determination may only raise an issue or argument during the special adjudicative proceeding that (a) the person raised during the public comment period; and (b) was supported with information or documentation that is cited with reasonable specify and sufficiently enables the director to fully consider the substance and significance of the issue.” 10 the Waste Contracts would have supported an issue or argument it raised during the Public Comment Period, it should have provided the Waste Contracts as part of its public comment, not 29 days after the Director issued his Final Permit Order. Because PPR did not provide the Waste Contracts during the Public Comment Period, the Director was denied the opportunity to consider them as PPR’s support for the substance and significance of an issue PPR raised in its public comment. See Utah Code § 19-1-301.5(6)(e) (providing that a “person may not raise an issue or argument in a petition for review unless the issue or argument (i) was preserved in accordance with Subsection (4); or (ii) was not reasonably ascertainable before or during the public comment period.”). 31. Moreover, the issue or argument was reasonably ascertainable before or during the Public Comment Period. The Director’s Intent to Deny the Class V permit, precisely the document upon which the Public Comment Period was predicated, evaluated the proven market for PPL by concluding “PPR has provided detailed analysis of the market and utilizes economic expertise to argue that the proposed Class V landfill could be competitive with local and regional markets.” Intent to Deny at 4, Admin. Rec. 4814. The Director continued by indicating that “PPR did not provide proposed pricing for disposal services.” See Id. Prior to the Public Comment Period, PPR could have used the waste disposal agreements to calculate proposed pricing for disposal services. See PPR Motion, Exhibit 2, at 7.2 Accordingly, the potential need for including the Waste Contracts was reasonably ascertainable before and during the Public Comment Period. 2 Each of the three Master Disposal Services Agreements included as Exhibit 2 in PPR’s Motion plainly state the cost of disposal for each customer, including $30.00/ton of non-hazardous solid waste for C&C Construction Containers, $30.00/ton of non-hazardous solid waste for Robinson Waste, and $30.00/ton of non-hazardous solid waste for Salt City Sales INC. 11 32. PPR has not demonstrated good cause for supplementing the Administrative Record with the Waste Contracts. B. Supplementing the Administrative Record with the Waste Contracts is not in the interest of justice. 33. The interest of justice might be advanced if an ALJ needed to supplement the Administrative Record to ensure fairness to a party whose rights may be affected by case- specific issues. See Interests of Justice, BLACK’S LAW DICTIONARY (12th ed. 2024). PPR has failed to demonstrate that it would suffer an injustice if the Administrative Record was not supplemented with the Waste Contracts. 34. PPR suggested that supplementing the Administrative Record with the Waste Contracts is in the interest of justice “considering their direct relevance to PPR’s satisfaction of Subsection (11)(b) and the Director’s failure to make a determination thereon.” PPR’s Motion at 5. However, as discussed in more detail below, the Director’s decision to deny PPR’s Class V permit is not based upon its ability to satisfy Utah Code § 19-6-108(11)(b). The Director did not make a determination regarding Utah Code § 19-6-108(11) because PPR failed to satisfy Utah Code § 19-6-108(10)(b)(i). Response to Comments at 40; Admin. Rec. at 5512. Including the Waste Contracts in the Administrative Record is not necessary to ensure fairness because the primary issue in this case is whether PPR satisfied Utah Code 19-6-108(10)(b)(i). Accordingly, PPR would suffer no injustice if the Waste Contracts were excluded from the Administrative Record. 35. On the other hand, the Director would suffer an injustice if the Waste Contracts were made part of the Administrative Record because he would be deprived of the opportunity to consider them in the context of PPR’s Class V permit application and its public comment. 12 Depriving the Director of this opportunity may unfavorably taint the basis for the Director’s decision to deny PPR’s Class V permit application, which the ALJ and the Executive Director are charged with evaluating. 36. PPR failed to demonstrate that supplementing the Administrative Record is in the interest of justice. C. Supplementing the Administrative Record with the Waste Contracts is not necessary for resolution of the issues in this case. 37. As explained above and at length in the Director’s Response to Comments, the primary issue in this case is whether PPR’s Class V permit application demonstrated “the need in the state for additional capacity for the management of nonhazardous solid or hazardous waste” as required by Utah Code § 19-6-108(10)(b)(i). See Petition for Review at 2-5; see also Response to Comments at 8-14, 39-40; Admin. Rec. at 5480-86, 5511-12. 38. PPR suggests that supplementing the Administrative Record with the Waste Contracts “helps resolve an important issue—whether PPR has satisfied the requirements of Subsection (11)(b).” PPR’s Motion at 5. However, the Director made no determination regarding PPR’s ability to satisfy Utah Code § 19-6-108(11)(b), and PPR’s satisfaction of that subsection is not the primary issue in this case. See Response to Comments at 40; Admin. Rec. at 5512. Instead, the primary issue in this case is whether PPR satisfied Utah Code § 19-6-108(10)(b)(i). The Director made no determination concerning Utah Code § 19-6-108(11) because he believed PPR failed to meet the requirements of Utah Code § 19-6-108(10)(b)(i), leaving him without sufficient basis to make the determinations required by Utah Code § 19-6-108(11). Response to Comments at 40; Admin. Rec. at 5512. 13 39. PPR did not argue that the Waste Contracts are necessary to determine whether it satisfied Utah Code § 19-6-108(10)(b)(i), the primary issue in this case. Even if the Waste Contracts were necessary for the resolution of the primary issue in this case, PPR bore the burden of demonstrating the need for PPL when it submitted its Class V permit application. There is no basis, under Utah Code § 19-1-301.5(9)(c) or any other part of Utah Code § 19-1- 301.5, to allow PPR to now supplement the information it was required to submit with its Class V permit application. 40. Moreover, the ALJ should not reward PPR’s efforts to import new information the Director was unable to consider in issuing his Final Permit Order. If the Waste Contracts were truly necessary to resolve the issues in this case, PPR would have included them with its permit application, in its response to the Director’s requests for additional information, or in its public comment. PPR did not include the Waste Contracts at any of these junctures. Instead, PPR awaited the Director’s Final Permit Order, contracted to provide disposal services, and, thereby, deprived the Director of the opportunity to consider this information in issuing his Final Permit Order. This catch-22 is antithetical to the purpose of Administrative Record preservation in permit review adjudicative proceedings. See Utah Code § 19-1-301.5(4). 41. PPR did not, and could not, demonstrate that including the Waste Contracts is necessary for resolution of the issues in this case. 14 V. Conclusion. 42. PPR has not rebutted the presumption against adding the Chauncey Declaration or the Waste Contracts to the Administrative Record, as required by Utah Code § 19-1-301.5(9)(c). 43. Therefore, the Director respectfully requests the ALJ deny PPR’s motion to supplement the Administrative Record with the Chauncey Declaration and Waste Contracts, or, in the alternative and if the ALJ grants PPR’s Motion, in whole or in part, remand this case to the Director to consider the supplemental information. DATED this 16th day of January, 2025. DEREK E. BROWN ATTORNEY GENERAL /s/ Raymond D. Wixom Raymond D. Wixom Assistant Attorney General Attorney for the Director of the Division of Waste Management and Radiation Control 15 CERTIFICATE OF SERVICE I hereby certify that on this 16th day of January, 2025, I caused a copy of the foregoing DIRECTOR’S RESPONSE IN OPPOSITION TO PROMONTORY POINT RESOURCES, LLC’s MOTION TO SUPPLEMENT THE ADMINISTRATIVE RECORD to be sent by electronic mail to the following: Administrative Proceedings Records Officer DEQAPRO@utah.gov Richard D. McKelvie Administrative Law Judge Richard.mckelvie@gmail.com Bradley R. Cahoon Tyler R. Cahoon Cole P. Crowther Dentons Durham Jones Pinegar Brad.cahoon@dentons.com Tyler.cahoon@dentons.com Cole.crowther@dentons.com Raymond Wixom Assistant Attorney General for Director rwixom@agutah.gov Brenden K. Catt Assistant Attorney General bcatt@agutah.gov Douglas J. Hansen, Director Division of Waste Management and Radiation Control djhansen@utah.gov /s/ Andrea Gaytan Andrea Gaytan