Appeal of New Hampshire Department of Environmental Services 2022-0691, Appeal of North Country Environmental Services, Inc.

CourtSupreme Court of New Hampshire
DecidedDecember 28, 2023
Docket2022-0690
StatusPublished

This text of Appeal of New Hampshire Department of Environmental Services 2022-0691, Appeal of North Country Environmental Services, Inc. (Appeal of New Hampshire Department of Environmental Services 2022-0691, Appeal of North Country Environmental Services, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Appeal of New Hampshire Department of Environmental Services 2022-0691, Appeal of North Country Environmental Services, Inc., (N.H. 2023).

Opinion

NOTICE: This opinion is subject to motions for rehearing under Rule 22 as well as formal revision before publication in the New Hampshire Reports. Readers are requested to notify the Reporter, Supreme Court of New Hampshire, One Charles Doe Drive, Concord, New Hampshire 03301, of any editorial errors in order that corrections may be made before the opinion goes to press. Errors may be reported by email at the following address: reporter@courts.state.nh.us. Opinions are available on the Internet by 9:00 a.m. on the morning of their release. The direct address of the court’s home page is: https://www.courts.nh.gov/our-courts/supreme-court

THE SUPREME COURT OF NEW HAMPSHIRE

___________________________

Waste Management Council Nos. 2022-0690 2022-0691

APPEAL OF NEW HAMPSHIRE DEPARTMENT OF ENVIRONMENTAL SERVICES (New Hampshire Waste Management Council)

APPEAL OF NORTH COUNTRY ENVIRONMENTAL SERVICES, INC. (New Hampshire Waste Management Council)

Argued: October 3, 2023 Opinion Issued: December 28, 2023

John M. Formella, attorney general, and Anthony J. Galdieri, solicitor general (K. Allen Brooks, senior assistant attorney general, and Joshua C. Harrison, assistant attorney general, on the brief, and K. Allen Brooks orally), for the New Hampshire Department of Environmental Services.

Cleveland, Waters and Bass, P.A., of Concord (Bryan K. Gould, Cooley A. Arroyo, and Morgan G. Tanafon on the brief, and Bryan K. Gould orally), for North Country Environmental Services, Inc. Conservation Law Foundation, of Concord (Heidi H. Trimarco and Thomas F. Irwin on the brief, and Heidi H. Trimarco orally), for Conservation Law Foundation.

DONOVAN, J. In this consolidated appeal, the New Hampshire Department of Environmental Services (DES) and North Country Environmental Services, Inc. (NCES) appeal an order of the New Hampshire Waste Management Council (Council) granting Conservation Law Foundation’s (CLF) appeal of a permit that DES issued authorizing the expansion of a landfill owned by NCES. DES argues that the Hearing Officer erred because he: (1) incorrectly reviewed, as a question of law rather than fact, DES’s determination under RSA 149-M:11, III(a) (2021) that NCES’s proposed facility satisfies a capacity need; and (2) incorrectly interpreted RSA 149-M:11, V (2021). NCES argues that: (1) CLF lacked standing to appeal the permit to the Council; (2) the Hearing Officer erred in his interpretation of RSA 149-M:11, V and by failing to consider administrative gloss; and (3) the Hearing Officer’s interpretation of RSA 149-M:11, V renders the statute unconstitutional pursuant to the dormant Commerce Clause of the United States Constitution. We conclude that CLF had standing to appeal the permit to the Council but that the Hearing Officer erred in his interpretation of RSA 149-M:11, V. Accordingly, we reverse.

I. Facts

The following facts are supported by the record or are otherwise undisputed. In January 2019, NCES applied to DES for a permit to expand its landfill in Bethlehem. NCES proposed operating the project, known as Stage VI, for approximately 2.3 years, from 2021 to 2023. DES indicated to NCES that it was contemplating denying the application for failure to satisfy the capacity need requirement set forth in RSA 149-M:11, III(a) and V. Consequently, NCES withdrew its application. In March 2020, NCES submitted a new application for Stage VI. This time, NCES proposed to extend the facility’s operating period from 2021 to 2026.

In October 2020, DES approved NCES’s application and issued a permit to NCES. As part of its decision to grant the permit, DES considered New Hampshire’s “solid waste capacity need” for the twenty-year period following the grant of the permit. RSA 149-M:11, V; see also RSA 149-M:11, III(a). As required by RSA 149-M:11, V(d), DES determined that in 2026, “there is a projected shortfall in existing permitted disposal capacity to accommodate the total quantity of New Hampshire waste projected to be generated statewide.” DES found that because “a capacity shortfall exists during the planning period” of Stage VI, meaning that the shortfall would occur in 2026, and Stage VI would operate through 2026, “the proposed facility satisfies a need for disposal capacity within the planning period.” See RSA 149-M:11, V(d).

2 In November 2020, CLF appealed DES’s decision to the Council, seeking to have the permit issued to NCES deemed unlawful and unreasonable. NCES filed a motion to dismiss the appeal for lack of standing, arguing that CLF’s reliance upon predicted harms to “a minute fraction of its membership” was insufficient to establish standing. In the alternative, NCES sought an evidentiary hearing before the Council to adjudicate the alleged issues of fact created in conflicting affidavits that CLF and NCES submitted. The Hearing Officer denied NCES’s motion to dismiss and request for an evidentiary hearing, as well as NCES’s subsequent motion for reconsideration.1

In February 2022, the Council held a two-day merits hearing, over which a Hearing Officer presided. See RSA 21-M:3, IX(a) (Supp. 2022). On the second day, the Council members deliberated and issued several unanimous findings, including that: (1) “DES acted reasonably in its measuring the short and long-term capacity needs required by [RSA 149-M:11, III(a)] in issuing the permit”; (2) “DES was lawful in finding the capacity need during the life [of the permit]”; and (3) “DES acted reasonably in issuing a permit to help address the capacity needs during the life of the [permit].” In May 2022, the Council issued an order signed by the Hearing Officer that granted CLF’s appeal in part and remanded the decision to grant the permit, ruling that DES “acted unlawfully in finding the NCES Facility provided a substantial public benefit” pursuant to RSA 149-M:11, III(a) and V.

In reaching this decision, the Hearing Officer interpreted RSA 149-M:11, V(d) and explained that, to grant a permit, DES must “determine whether a proposed facility provides a substantial public benefit based upon the short- and long-term need for the proposed facility to provide capacity for New Hampshire waste.” See RSA 149-M:11, III(a). In turn, the Hearing Officer also explained, RSA 149-M:11, V(d) “details the method by which [DES] must determine the state’s solid waste capacity need.” Ultimately, the Hearing Officer concluded that RSA 149-M:11, V(d) “explicitly limits a finding of capacity need to only instances where a proposed facility will satisfy a shortfall. If there is no shortfall, there can be no capacity need.” Therefore, according to the Hearing Officer, DES erred in granting NCES a permit because Stage VI was proposed to operate for six years, but the first five years of the facility’s operation would occur during a period without any shortfall. The Hearing

1 By statute, the attorney general shall appoint hearing officers for appeals to the Council. RSA 21-M:3, VIII (Supp. 2022); RSA 21-O:9 (2020). Once appointed, the hearing officer shall “[a]dopt all findings of fact made by the council except to the extent any such finding is without evidentiary support in the record” and “[d]ecide all questions of law presented during the pendency of the appeal.” RSA 21-M:3, IX(c), (e) (Supp. 2022). The hearing officer shall also “provide the council with a proposed written decision on the merits within 45 days of the conclusion of the hearing on the merits” and “[p]repare and issue written decisions on all motions and on the merits of the appeal within 100 days of the conclusion of the hearing on the merits.” RSA 21-M:3, IX(f) (Supp. 2022). Thus, we are reviewing the Hearing Officer’s legal determinations when we review any question of law set forth in the Council’s order.

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Appeal of New Hampshire Department of Environmental Services 2022-0691, Appeal of North Country Environmental Services, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/appeal-of-new-hampshire-department-of-environmental-services-2022-0691-nh-2023.