Pennsylvania Waste Industries Ass'n v. Monroe County Municipal Waste Management Authority

80 A.3d 546, 2013 WL 6116099, 2013 Pa. Commw. LEXIS 486
CourtCommonwealth Court of Pennsylvania
DecidedNovember 21, 2013
StatusPublished
Cited by8 cases

This text of 80 A.3d 546 (Pennsylvania Waste Industries Ass'n v. Monroe County Municipal Waste Management Authority) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pennsylvania Waste Industries Ass'n v. Monroe County Municipal Waste Management Authority, 80 A.3d 546, 2013 WL 6116099, 2013 Pa. Commw. LEXIS 486 (Pa. Ct. App. 2013).

Opinion

OPINION BY

Judge SIMPSON.

In this appeal of interest to counties and municipal authorities statewide, we are asked whether a municipal authority tasked with planning and implementing municipal waste disposal for Monroe County may set the “tipping fees” at private landfills. These fees cover disposal costs in the landfills as well as administrative costs and costs of other aspects of the county-wide waste disposal plan. Because the municipal authority does not own or operate the landfills which accept Monroe County’s municipal waste, our inquiry is more complicated. While we agree with several arguments advanced by the Appellant, we affirm in part the decision of the Court of Common Pleas of Monroe County (trial court), which denied a declaratory challenge to a portion of the fee.

I. Background

Monroe County Municipal Waste Management Authority (Authority), is a creation of the Municipality Authorities Act (Authorities Act), 53 Pa.C.S. §§ 5601-5623, and is delegated the responsibility for solid waste planning and plan implementation in Monroe County (County) under Section 303(d) of the Municipal Waste Planning, Recycling and Waste Reduction Act (Act 101).1 In this role the Authority develops and implements an Act 101 Waste Management Plan, which is eventually approved by the County and the Department of Environmental Protection (DEP).

Authority administers an Integrated Waste Management System through the [549]*549Plan in which it requires: 1) that all waste haulers operating in the County are registered; 2) that waste haulers and municipalities provide waste stream reduction data; 3) that municipal solid waste generated in the County be disposed of at permitted waste disposal facilities with which the Authority has negotiated contracts; 4) initiatives for waste stream reduction, including operation and maintenance of the Authority’s recycling facility and other community programs for recycling; 5) a litter control and highway deer carcass removal program; 6) a municipal police department which conducts enforcement and assists other law enforcement agencies in such duties; and, 7) the maintenance of staff, equipment, and facilities.

In Act 101, the General Assembly addressed the municipal solid waste industry in order to provide a comprehensive program of ensuring adequate planning and implementation of future disposal capacity as well as encouraging more recycling efforts. Act 101 requires counties to adopt a solid waste management plan and to submit the plan to DEP for approval. Act 101 requires that the counties revise the plan every 10 years. In order to secure DEP approval, the plan must provide for county-wide solid waste management and must ensure at least 10 years of available disposal capacity. The plan also designates those waste disposal facilities that are permitted by DEP under the Solid Waste Management Act (SWMA),2 to receive municipal solid waste generated within the county.

In order to fulfill its obligations of securing disposal capacity, the Authority previously entered into contracts known as “Disposal Service Agreements” with privately-owned landfills. These Agreements obligate the landfill to accept a specified amount of solid waste generated in the County each year. The prior Disposal Service Agreements set the maximum price for the “tipping fee” that the landfill may charge the waste haulers. The “tipping fee” includes state-mandated fees set forth in Act 101 and other solid waste laws. The “tipping fee” may vary depending on the hauler, the time of year, market conditions, the volume of waste a particular hauler regularly delivers to the facility, the payment history of the hauler and whether or not the hauler pre-pays the “tipping fee.”

The County’s first Act 101 Plan was adopted in 1991, and it was revised in 1998. Pursuant to that Plan, the Disposal Service Agreements, included a $7 per ton administrative fee to be collected by the landfill from waste haulers. The landfill then passed this cost on to the generator of the waste through customer billing.

In 2004, when revising the 1998 Plan, the Authority entered into Disposal Service Agreements with six landfills to provide for disposal capacity for County-generated waste through 2014. The Disposal Service Agreements negotiated in 2004 continued the requirement that the landfill remit the $7 per ton administrative fee for waste “tipped” at the facility. The administrative fee generated approximately $1 million dollars of revenue annually for the Authority. However, although the 2004 Act 101 Plan was approved by the County and submitted to DEP, it was never approved by DEP.

In 2010, DEP notified the Authority that it had not undertaken a “full and complete” 10 year revision of its Plan since 1998. DEP further warned that the administrative fees imposed on the disposal of County waste “may be preempted by Act 101.” Reproduced Record (R.R.) at [550]*550244a. This is the genesis of the current controversy.

After the Authority appealed the letter to the Environmental Hearing Board, it entered into an agreement with DEP which extended the 1998 Plan through 2014 and required the Authority to submit a plan revision by June 30, 2013.

II. 2012 Requests for Proposals

Accordingly, in May 2012 the Authority issued a nationwide Request for Proposals (RFP) seeking bids from waste disposal facilities with sufficient capacity to accept all or part of County waste generated between the years 2015 and 2025. The Authority determined that the prior method of assuring disposal capacity was no longer adequate, that the Disposal Service Agreements did not guarantee disposal capacity, and that the Agreements did not make provisions for disposal capacity at competitive rates. It concluded that it would seek to purchase its own landfill capacity or “air space” from the landfills.

In a departure from its previous methods, the Authority proposed to enter into a Standard Purchase Agreement with the landfills in which the facility would sell to the Authority “an irrevocable license (legally an easement), to utilize available and permitted airspace solely for the disposal of Monroe County [municipal solid waste]” and that the Authority (and not the landfill owner) would set the “ ‘tipping fee’ to be charged to the waste haulers for the use of the Authority’s reserved space the same as if the Authority administered its own disposal facility.” Appellee’s Br. at 12.

The Authority’s “tipping fee” would have three components: 1) the cost of the purchased air space; 2) the operating costs of the landfill; and, 3) the costs of the operation of the Authority’s Integrated Waste Management System. The third part of the “tipping fee” would be used to pay the Authority’s debt service related to the capital costs of the Authority’s facilities and the remaining debt from a failed incinerator project.3 These funds were previously generated from the Authority’s $7 per ton administrative fee, but the legality of the fee was put in question by the DEP letter.

The RFP also provides that the Authority retains the right to use, sell or sell back any unused air space it purchased that remains at the end of the contract term, to the facility itself or “to another generator of municipal waste.” R.R. at 21a, 35a.

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80 A.3d 546, 2013 WL 6116099, 2013 Pa. Commw. LEXIS 486, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-waste-industries-assn-v-monroe-county-municipal-waste-pacommwct-2013.