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House passes bill requiring bonds for some environmental litigation stays after amending out DEQ
Summary
House Bill 399 would require plaintiffs seeking administrative stays or preliminary injunctions challenging certain agency permits to post bonds; the House struck Department of Environmental Quality from the covered agencies and passed the bill 62-13.
SALT LAKE CITY — The Utah House on Feb. 24 approved House Bill 399, a measure requiring plaintiffs who seek an administrative stay or preliminary injunction after agency permitting to post a bond intended to cover potential losses to the permit-holder, supporters said, while opponents warned it could chill legitimate environmental litigation.
Representative Noel, sponsor of HB399, framed the measure as a protection for companies that have completed lengthy permitting processes and may face costly delays, saying the bill is a "fair" way to address stranded investments that can run into the millions. Noel described previous iterations of the bill as recurring in prior sessions: "This is deja vu all over again. This is like the third time this bill has been run," he said.
On the floor, members debated and adopted an amendment to remove the Department of Environmental Quality (DEQ) from the list of covered agencies (sponsors and some proponents argued removing DEQ reduces the risk of affecting EPA primacy). Opponents, including Representative King, argued the bill is unnecessary because courts already have discretion to require bonds when granting extraordinary remedies and that the bill could "stack the deck" against environmental challengers and create inefficient interlocutory appeals.
Backers, including members who cited delayed projects and lost revenue, said the measure would help prevent "stranded investment" and lengthy litigation that can halt projects for years; Representative Noel pointed to multi-million-dollar costs companies can face in drawn-out appeals. The House adopted the previous question to end debate, Noel gave summation, and the bill passed by recorded voice tally: 62 yeas, 13 nays. The bill will be transmitted to the Senate.
