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HomeMy WebLinkAboutDSHW-2025-002026 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 REPLY TO PROMONTORY POINT RESOURCES, LLC’S OPPOSITION TO THE DIRECTOR’S MOTION TO DISMISS Richard D. McKelvie Administrative Law Judge Promontory Point Resources, LLC Petition for Review of Director’s Order Denying Class V Permit Docket No. SW416 March 18, 2025 Pursuant to Utah Code § 19-1-301.5(1)(b) and (8)(a)(ii) and Utah Administrative Code R305-7-211, Respondent Director of the Utah Division of Waste Management and Radiation Control (the Director) hereby submits this reply to Petitioner Promontory Point Resources, LLC’s (PPR) Opposition to the Director’s Motion to Dismiss (PPR’s Response). INTRODUCTION 1. In Argument 1 of its Petition for Review, PPR claims “[t]he 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.” Petition for Review at 4. 2 2. The Director’s Dispositive Motion to Dismiss PPR’s dormant Commerce Clause Claim (the Director’s Dispositive Motion) explained that the Executive Director of the Department of Environmental Quality (the Executive Director) lacks subject matter jurisdiction to question the constitutionality of Utah Code § 19-6-108(10)(b). PPR’s Response does not refute that the Executive Director lacks subject matter jurisdiction but instead attempts to reframe the dormant Commerce Clause issue as one of statutory interpretation. This attempt is deficient in several respects. 3. Accordingly, the Administrative Law Judge (ALJ) should recommend that the Executive Director grant the Director’s Dispositive Motion and dismiss PPR’s claim that the Director’s interpretation and application of Utah Code § 19-6-108(10)(b)(i) violates the dormant Commerce Clause. ARGUMENT 4. PPR’s attempt to reframe the dormant Commerce Clause issue is deficient in three respects. First, it fails to dispute that the Executive Director lacks subject matter jurisdiction to address constitutional questions. Second, it attempts to apply the canon of constitutional avoidance to the Director, ALJ, and Executive Director. Third, and assuming without conceding the application of that canon is appropriate, it fails to demonstrate why the ALJ or Executive Director can address constitutional questions. Before moving to those substantive arguments, the Director hopes to quell PPR’s clear misunderstanding of the procedural posture of this matter. I. PPR’s Suggested Standard of Review is Antithetical to the Procedural Posture of this Matter. 5. PPR’s Response suggests that in reviewing the Director’s Dispositive Motion “all factual allegations in [PPR’s Petition for Review] must be accepted as true.” PPR’s Resp. at 2. PPR then analogizes to Hudgens v. Prosper, Inc., to suggest that “a motion to dismiss ‘should be granted 3 only if, assuming the truth of the allegations in the complaint and drawing all reasonable inferences therefrom in the light most favorable to the plaintiff, it is clear that the plaintiff is not entitled to relief.’” See id.; see also 2010 UT 68, ¶ 14, 243 P.3d 1275. 6. Applying a Utah Rules of Civil Procedure (URCP) standard of review to the Director’s Dispositive Motion is a procedural non sequitur. This is an internal agency review under Utah Code § 19-1-301.5, which governs special adjudicative proceedings arising from the Director’s permit order denying PPR’s Class V Application (the Permit Order). See Utah Code § 19-1- 301.5(1)(g)(i). The ultimate question presented here is whether the Director’s findings supporting the Permit Order are clearly erroneous based on a petitioner’s marshaling of the evidence through the brief on the merits. See id. § 19-1-301.5(14)(b). 7. In scoping the issues in preparation for the brief on the merits, parties may file “dispositive motions.” Id. § 19-1-301.5(1)(b). While “dispositive motions” under Section 301.5 are described as being “equivalent to” motions under the URCP, this analogy can only be taken so far. See id. This process is not a trial in district court initiated by pleadings subject to dismissal under URCP 12. Id. § 19-1-301.5(9)(a); Friends of Great Salt Lake v. Dep't of Env't Quality, Div. of Waste Mgmt. & Radiation Control, 2023 UT App 58, ¶ 24, 531 P.3d 767. Rather, this is a special adjudicative proceeding to review the Permit Order under Section 301.5, through which pre- briefing “dispositive motions” serve a specific and limited procedural purpose: to define and limit, as appropriate, the anticipated briefing on the merits. 8. PPR’s reliance on the URCP 12(b)(6) standard of review demonstrates its misunderstanding of the specific and limited procedural purposes served by pre-briefing dispositive motions under Section 301.5. Viewing the “facts” in the light most favorable to the non-moving party is a standard that simply has no relevance to the statutory Section 301.5 process. 4 9. PPR’s reliance on Hudgens further demonstrates its misunderstanding of the procedural posture of this matter because it is factually and procedurally distinct. Factually, this is not a suit between private parties, alleging claims arising in tort, as it was in Hudgens. Hudgens, 2010 UT 68 at ¶ 6. Procedurally, this is not a state court appellate review of a district court granting a motion to dismiss under URCP 12(b)(6), as it was in Hudgens. Id. ¶ 14; Dir. Disp. Mot. at 3. Instead, this is a special adjudicative proceeding under Section 301.5, arising from PPR’s Petition for Review of the Permit Order. Petition for Review at 1. The Director’s Dispositive Motion was a motion under Section 301.5 “‘equivalent to’ a motion to dismiss.” Dir. Disp. Mot. at 3 (Emphasis added). Hudgens inadequately captures these factual and procedural distinctions. 10. Accordingly, the standard of review PPR offers is predicated upon its fundamental misunderstanding of the procedural posture of this matter, and the ALJ should instead consider whether PPR’s dormant Commerce Clause claim should reach the brief on the merits stage. For the reasons discussed below, it should not. II. PPR Does Not Dispute that the Executive Director Lacks Subject Matter Jurisdiction to Consider Constitutional Issues. 11. Utah’s Constitution and long-standing precedent make plain that administrative agencies lack jurisdiction to consider constitutional issues. Courts created under the Utah Constitution and by statute possess judicial power. See Utah Const. art. VIII, § 1. The Director, ALJ, and Executive Director “may not exercise core judicial functions,” including considering constitutional questions arising from the application of a state statute. Salt Lake City v. Ohms, 881 P.2d 844, 851-52 (1994). Administrative agencies are elements of the executive branch, and such elements attempting to perform core judicial functions raises significant separation of powers concerns. Erda Cmty. Ass’n Inc. v. Grantsville City, 2024 UT App 126, ¶ 58, 558 P.3d 91. 5 12. Apart from attempting to distinguish this matter from a single case cited in the Director’s Dispositive Motion, which is discussed below, PPR’s opposition fails to confront the longstanding precedent that administrative agencies lack jurisdiction to consider constitutional issues. In fact, PPR concedes “that the Director cannot find as a matter of law that a statute is unconstitutional.” PPR’s Resp. at 3. Utah precedent makes clear that this principle extends to the ALJ and the Executive Director. See Erda Cmty. Ass’n Inc., 2024 UT App 126 at ¶ 58; Ohms, 881 P.2d at 848- 49. Coupling PPR’s concession with Utah’s overwhelming and clear precedent, the Director, ALJ, and Executive Director lack jurisdiction to consider the dormant Commerce Clause issue that PPR attempts to force these executive officers to confront. 13. Accordingly, on these grounds alone the ALJ should recommend the Executive Director grant the Director’s Dispositive Motion, regardless of PPR’s attempts to reframe the dormant Commerce Clause question as one of statutory interpretation. III. The Canon of Constitutional Avoidance is Inapplicable. 14. PPR attempts to reframe its dormant Commerce Clause issue as one of statutory interpretation. PPR’s Resp. at 2. This attempt is deficient because the canon of constitutional avoidance is inapplicable to the Director, ALJ, and Executive Director. “For the constitutional avoidance canon to even apply, ‘the statute must be genuinely susceptible to two constructions.’” Utah Dep’t of Transp. v. Carlson, 2014 UT 24, ¶ 24, 332 P.3d 900. If a statute is genuinely susceptible to two constructions, reviewing courts should interpret a statute in a manner that avoids constitutional issues. Castro v. Lemus, 2019 UT 71, ¶ 54, 456 P.3d 750. 15. PPR unsuccessfully argues that the Director, ALJ, and Executive Director should ignore the lack of agency jurisdiction and instead reach the merits of the dormant Commerce Clause by applying the judicial canon of constitutional avoidance. First, it suggests that under the canon of constitutional avoidance, “the Director should have interpreted [Subsection] 10(b)(i) to avoid 6 ‘grave doubts as to the statute’s constitutionality.’” PPR’s Resp. at 2. PPR next suggests that that “the ALJ can, and should, apply the canon of constitutional avoidance when considering the Director’s interpretation of [Subsection] 10(b).” Id. at 3. Finally, PPR implies that “the canon of constitutional avoidance prevents the Executive Director from accepting [the Director’s] interpretation.” Id. at 5. This position fails on numerous grounds. 16. PPR’s position overlooks the glaring reality that the canon of constitutional avoidance applies to courts interpreting statutes, not executive agencies implementing or reviewing statutes. PPR cites Castro v. Lemus and Utah Dep’t of Transp. v. Carlson, both of which are Utah Supreme Court cases that plainly recognize the canon of constitutional avoidance as a doctrine employed by courts when interpreting statutes. Carlson, 2014 UT 24 at ¶ 23; Castro, 2019 UT 71 at ¶ 54. The Utah Supreme Court has consistently characterized this canon as one of judicial restraint. Utah Stream Access Coal. v. VR Acquisitions, LLC, 2019 UT 7, ¶ 55, 439 P.3d 593. PPR cites to no authority, nor is the Director aware of any authority, that requires agencies to apply the canon of constitutional avoidance when implementing or reviewing statutes. Moreover, PPR does not argue that the ALJ and Executive Director are assuming the role of a court. Nor could it. Administrative tribunals are not courts. Muddy Boys, Inc. v. Dep’t of Com., Div. of Occupation & Pro. Licensing, 2019 UT App 33, ¶¶ 22-23, 440 P.3d 741; See generally Utah Code § 19-1-301.5 (devoid of a description that this administrative tribunal is a “court”). Accordingly, this overwhelming precedent indicates that the canon of constitutional avoidance is inapplicable. 17. Even if we were to ignore the overwhelming precedent precluding the Director’s, ALJ’s, and Executive Director’s application of the canon of constitutional avoidance, PPR has not pled the rudimentary grounds for application of that canon. Notably, neither PPR’s Petition for Review nor PPR’s Response alleges that Subsection (10)(b)(i) is genuinely susceptible to two 7 constructions. See State v. Felts, 2024 UT 41, ¶ 38, 560 P.3d 787 (holding that the canon of constitutional avoidance does not apply when a party fails to identify two plausible constructions of a statute). PPR’s Response suggests that “Section 19-6-108(10)(b) is unambiguous, the Director’s interpretation is nonsensical, and PPR’s interpretation controls.” PPR’s Resp. at 5. PPR’s Petition for Review similarly suggests that the “statute is unambiguous.” Petition for Review at 36. These are hardly allegations that Subsection (10)(b)(i) is genuinely susceptible to two constructions. PPR cannot have it both ways, and its contradictory application of this canon further undermines its attempts to ground the dormant Commerce Clause issue in statutory interpretation. 18. The canon of constitutional avoidance is inapplicable, and therefore PPR’s attempt to reframe its dormant Commerce Clause issue as supporting its canon of constitutional avoidance position is baseless. IV. Even if the Canon of Constitutional Avoidance Were Applicable, the ALJ and Executive Director Still Lack Subject Matter Jurisdiction. 19. PPR’s attempt to reframe its constitutional question as one of statutory interpretation fails, but even if that attempt succeeded, the ALJ and Executive Director still lack subject matter jurisdiction. 20. PPR suggests that “the Director should have interpreted [Subsection] 10(b)(i) to avoid ‘grave doubts as to the statute’s constitutionality.’” PPR’s Resp. at 2. PPR further suggests that “the ALJ must reject [the Director’s] interpretation because it raises grave doubts as to its constitutionality.” Id. at 5. But, at the same time, PPR suggests that it “is not requesting the ALJ declare [Subsection] (10)(b)(i) unconstitutional.” Id. at 2. PPR believes the Executive Director and ALJ possess jurisdiction to consider whether the Director’s interpretation and application violates the dormant Commerce Clause, but they lack jurisdiction to declare a statute 8 unconstitutional. This is not supported by the precedent cited in the Director’s Dispositive Motion and is antithetical to the separation of powers. 21. Setting aside the fact that PPR left the precedent cited in the Director’s Dispositive Motion largely unaddressed, PPR’s position is contrary to that precedent. The precedent cited in the Director’s Dispositive Motion makes clear that only courts of law possess the power to consider constitutional questions because that is a core judicial function. See Erda Cmty. Ass’n Inc., 2024 UT App 126 at ¶ 58. Core judicial functions, including the evaluation of the constitutionality of a statute on its face or as applied, are non-delegable to other branches of government. Ohms, 881 P.2d at 848-49. Neither the ALJ nor the Executive Director can evaluate whether the Director’s interpretation and application of Subsection (10)(b)(i) raises “grave doubts as to its constitutionality” without evaluating the underlying dormant Commerce Clause question. This evaluation would require, among other considerations, determining whether a substantial burden exists, whether local putative benefits exist, and whether that burden outweighs those benefits. See generally Nat’l Pork Producers Council v. Ross, 598 U.S. 356 (2023). Without evaluating each element of a dormant Commerce Clause issue, the ALJ and Executive Director are in no position to determine whether the Director’s application raises constitutional questions, as the canon of constitutional avoidance requires. 22. Indeed, PPR recognizes as much and repeatedly engages in a dormant Commerce Clause analysis. PPR’s Petition for Review characterizes the Director’s interpretation and application of Subsection (10)(b)(i) as violating the dormant Commerce Clause and devotes roughly nine pages to arguing the merits of that claim. Petition for Review at 2, 4, 8, 18-26. In its Response, PPR again characterizes this issue as “[t]he Director’s interpretation of [Subsection] (10)(b) [. . .] results in a violation of the dormant Commerce Clause.” PPR’s Resp. at 3. As PPR concedes and the 9 precedent makes clear, neither the ALJ nor the Executive Director can evaluate this claim, regardless of whether it is predicated upon the Director’s interpretation or his application of Subsection (10)(b)(i). Accordingly, even if the canon of constitutional avoidance were applicable, which it is not, the ALJ and Executive Director still lack jurisdiction to determine whether the Director’s interpretation and application raises constitutional questions. CONCLUSION 23. The parties’ separate dispositive motions and associated arguments have created an adequate agency record to preserve PPR’s dormant Commerce Clause claims and document the basis for their exclusion from the briefing on the merits. There is no need to clutter the briefing on the merits with collateral litigation over the dormant Commerce Clause at this stage of the special adjudicative proceeding. 24. For the reasons set forth herein, as well as those set forth in the Director’s Motion to Dismiss PPR’s dormant Commerce Clause Claim, the ALJ should recommend the Executive Director exclude PPR’s claim that the Director’s interpretation and application of Utah Code § 19- 6-108(10)(b)(i) violates the dormant Commerce Clause from the briefing on the merits in this matter. DATED this 18th Day of March 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 10 CERTIFICATE OF SERVICE I hereby certify that on this 18th day of March 2025, I caused a copy of the foregoing DIRECTOR’S REPLY TO PROMONTORY POINT RESOURCES, LLC’S OPPOSITION TO THE DIRECTOR’S MOTION TO DISMISS 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/ Raymond Wixom Raymond Wixom