Waste Management of Pennsylvania, Inc. v. Commonwealth, Department of Environmental Protection

107 A.3d 273, 2015 Pa. Commw. LEXIS 15
CourtCommonwealth Court of Pennsylvania
DecidedJanuary 8, 2015
StatusPublished
Cited by4 cases

This text of 107 A.3d 273 (Waste Management of Pennsylvania, Inc. v. Commonwealth, Department of Environmental Protection) 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.

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Waste Management of Pennsylvania, Inc. v. Commonwealth, Department of Environmental Protection, 107 A.3d 273, 2015 Pa. Commw. LEXIS 15 (Pa. Ct. App. 2015).

Opinion

OPINION BY

Judge SIMPSON.

In this interlocutory appeal by permission, Waste Management of Pennsylvania, Inc., Evergreen Landfill, Inc., Laurel Highlands Landfill, Inc., Southern Alleghenies Landfill, Inc., Shade Landfill, Inc., and Waste Management Disposal Services of Pennsylvania (collectively, Waste Management) ask whether the Environmental Hearing Board (Board) erred or abused its discretion by denying Waste Management’s motion for summary judgment challenging the Department of Environmental Protection’s (Department) approval of revisions to Clearfield County’s (County) Municipal Solid Waste Management Plan (Plan Revision). Waste Management claims the Revision Plan, which conditioned selection of a disposal facility on financial and programmatic support for the County’s recycling programs, is contrary to the Municipal Waste Planning, Recycling and Waste Reduction Act1 (Act 101) and relevant case law. For the reasons that follow, we affirm.

I. Background

Act 101 requires each county to adopt and periodically revise a waste management plan for municipal waste and to submit the plan to the Department for approval. In 2010, the County revised its existing Act 101 plan to address a shortfall in financing for its integrated waste management program, which included the County’s waste, recycling and ancillary programs such as illegal dumping and [275]*275other non-Act 101 recycling.2 The Plan Revision described recycling program sustainability challenges facing rural counties, including County. It explained that rural counties, unlike their urban counterparts, have an abundance of open space and fewer municipalities meeting Act 101’s population and density criteria for mandatory recycling. These conditions impede the ability of rural counties to provide cost-effective recycling services. Reproduced Record (R.R.) at-546a.

The County created and initially funded its integrated waste management program with State recycling grants and County-imposed administrative fees. Id. at 547a. Prior to 2005, approximately 70 percent of the County’s financial support for its programs came from administrative fees. Id. As a result of 2005 decisional law,3 the County stopped receiving administrative fees, which created a significant shortfall in funding. Id. at 549a. The loss of these funds jeopardized the sustainability of the County’s programs. Id.

The County commissioned a sustainability study, which presented alternate methods to make up the deficit in recycling funding. The study presented funding options, including negotiating voluntary contributions, seeking sponsorships or in-kind services, implementing user fees, or using County funds. Id. at 547a. The County also formed a committee to assist in reviewing the study and revising its plan. Id. at 548a. The County ultimately chose to secure funds needed to sustain the County’s programs by developing a request for proposals (RFP) that would not only address waste disposal, but would include how proposals can support the goals of Act 101 and recycling. Id. at 549a.

In conjunction with its Plan Revision, the County issued the RFP for “Integrated Municipal Solid Waste Management Services,” which included both waste disposal and recycling programs. Id. at 118a. To address the funding shortfall and sustain the programs, the RFP solicited proposals that would “provide tangible financial and/or programmatic support to [the] County’s integrated waste management programs. Id. at 120a (emphasis added). The RFP stated:

Proposals responsive to this need might include provision of services purchased by the [Cjounty in the past or revenue sharing or a mixture of these approaches. Facilities responding are encouraged to develop and propose innovative, cost effective alternatives for meeting this need. Facilities may wish to partner with other providers in making a proposal.

Id. The RFP directed that “proposals shall specify how the facility offers to support [the] County’s integrated waste management services which shall include qualification and quantification of how the proposal(s) shall address the funding shortfall and/or tangibly augment [the] [276]*276County’s programs during the contract period.” Id. at 123a (emphasis added).

The County then evaluated each of the responses using point-rated evaluation criteria:

• Ability to reserve capacity in addition to required 50% minimum (10 points)
• Cost per ton for providing disposal capacity and appropriateness of the basis for tipping fee escalation (40 points)
Environmental soundness of proposal. Will be based on the proposal responsiveness in relation to supporting the waste reduction hierarchy and the benefits to public health and safety, economic or financial benefits to residents or local government, decreasing the risk of liability from improper disposal of municipal waste, and the relevant purposes and goals of Act 101 (SO points)
• Proposer’s . experience, qualifications and compliance record (20 points)

Id. at 139a (emphasis added). The maximum number of points any responder could receive was 100 points. See id.

The County received bids from eight qualified disposal facilities.4 Based on the point-rated evaluation criteria, Veolia Greentree Landfill (Veolia) scored the highest with 100 out of 100 points; Wayne Township Landfill (Wayne) scored the second highest with 62 points. Id. at 238a, 555a. The other facilities scored less than 47 points. Id. at 555a.

Veolia and Wayne were the only facilities that included tangible financial support in the “environmental soundness” category in their bids. Veolia, which conditioned its proposal on exclusivity, proposed to make cash payments to the County of $140,000 per year for each of the 10 years in the Revision Plan. Id. at 361a. It also offered to handle the County’s drop-off recycling for only $100 per year, a financial value of $48,000 per year to the County, and provide free tire recycling. Id. Wayne proposed to pay the County a $2 per ton voluntary donation. Id. at 362a. The Waste Management facilities responded they were willing to negotiate a fee after designation in the Revision Plan. Based on these responses, Veolia scored 30 out of 30 points, and Wayne scored 15 out of 30 points in the environmental soundness category, whereas the Waste Management facilities each received only 5 out of 30 points for their willingness to negotiate a fee. Id. at 41a, 361a, 555a.

The County initially awarded the contract exclusively to Veolia, but based on hauler concerns, the County designated Wayne as a second disposal facility. Id. at 362a. As it was no longer the exclusive facility, Veolia renegotiated the terms of its proposal, providing for a reduction in drop-off-services costs by $34,000 annually, an annual financial donation of $27,500, as well as free tire recycling collection. Id. at 564a; 1386a-88a. The County then entered contracts with both Veolia and Wayne.

In November 2012, the County submitted its Plan Revision to the Department for approval.

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107 A.3d 273, 2015 Pa. Commw. LEXIS 15, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waste-management-of-pennsylvania-inc-v-commonwealth-department-of-pacommwct-2015.