American Petroleum Institute,petitioners v. United States Environmental Protection Agency, Chemical Manufacturers Association, Intervenor

216 F.3d 50, 342 U.S. App. D.C. 159, 30 Envtl. L. Rep. (Envtl. Law Inst.) 20686, 50 ERC (BNA) 1833, 2000 U.S. App. LEXIS 14641
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 27, 2000
Docket94-1683, 94-1684, 94-1686, 98-1494, 98-1506, 98-1507, 98-1514
StatusPublished
Cited by63 cases

This text of 216 F.3d 50 (American Petroleum Institute,petitioners v. United States Environmental Protection Agency, Chemical Manufacturers Association, Intervenor) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Petroleum Institute,petitioners v. United States Environmental Protection Agency, Chemical Manufacturers Association, Intervenor, 216 F.3d 50, 342 U.S. App. D.C. 159, 30 Envtl. L. Rep. (Envtl. Law Inst.) 20686, 50 ERC (BNA) 1833, 2000 U.S. App. LEXIS 14641 (D.C. Cir. 2000).

Opinion

Opinion for the Court filed PER CURIAM. *

*54 PER CURIAM:

Two sets of petitioners challenge regulations of the United States Environmental Protection Agency (“EPA”) promulgated under the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6901 et seq. (1994). The EPA rulemaking at issue concerned regulating several secondary materials generated by the petroleum refining and petrochemical industries as “solid waste” and “hazardous waste.”

Industry petitioners, American Petroleum Institute (“API”), the Chemical Manufacturers Association (“CMA”), and Texaco, Inc. (collectively, “industry petitioners”), assert two main categories of challenges. The first category challenges EPA’s regulation under RCRA of two materials as solid waste. The second challenges EPA’s listing of certain refinery wastes as hazardous waste. Environmental petitioners, Louisiana Environmental Action Network (“LEAN”), Communities for a Better Environment of California (“CBE”), the Sierra Club* and the Environmental Technology Council (“ETC”) (collectively, “environmental petitioners”), challenge EPA’s failure to list certain items and further allege an Administrative Procedure Act (“APA.”), 5 U.S.C. § 551 et seq. (1994), notice and comment claim.

We deny the petition of the industry petitioners on all counts but one, on which we vacate and remand to EPA for further proceedings. Finding that we lack jurisdiction to consider the claims of environmental petitioners, we dismiss their petition.

I. Industry Petitioners’ Challenges to EPA’s Regulation of Recovered Oil and Wastewaters as Solid Waste

A. Statutory Framework

RCRA is a comprehensive environmental statute granting EPA authority to regulate solid and hazardous wastes. “Solid wastes” are governed by Subtitle D of RCRA, and are generally subject to less stringent management standards than “hazardous wastes” which are regulated under Subtitle C. For purposes of RCRA, Congress defined solid waste as follows:

The term “solid waste” means any garbage, refuse, sludge from a waste treatment plant, water supply treatment plant, or air pollution control facility and other discarded material, including solid, liquid, semisolid, or contained gaseous material resulting from industrial, commercial, mining, and agricultural operations, and from community activities....

42 U.S.C. § 6903(27).

In pursuit of its congressionally conferred duty and authority to regulate solid waste under RCRA, the EPA has adopted regulations defining solid waste for purposes of its hazardous waste regulations: “A solid waste is any discarded material,” 40 C.F.R. § 261.2(a)(1) (1999), subject to a number of exclusions enumerated in § 261.4(a) and case-by-case variances under §§ 260.30 and 260.31. The term “discarded material” for purposes of the regulation means any material which is abandoned, recycled, or considered inherently wastelike. 40 C.F.R. § 261.2(a)(2).

In 1994 and 1998 rulemakings in pursuit of its RCRA obligations, the EPA examined the production processes of the petroleum refining industry. As pertinent to the issue before us, EPA considered whether to exclude from the definition of solid waste two secondary materials: oil-bearing wastewaters generated by the petroleum refining industry and recovered oil produced by the petrochemical manufacturing industry. See Hazardous Waste Management System, Identification and Listing of Hazardous Waste; Petroleum Refining Process Wastes; Land Disposal Restrictions for Newly Identified Wastes; and CERCLA Hazardous Substance Designation and Reportable Quantities, 63 *55 Fed.Reg. 42,110 (1998) (“Final Rule”); Hazardous Waste Management System, Identification and Listing of Hazardous Waste; Petroleum Refining Process Wastes; Land Disposal Restrictions for Newly Identified Wastes; and CERCLA Hazardous Substance Designation and Reportable Quantities, 60 Fed.Reg. 57,747 (1995) (“Proposed Rule”); Identification and Listing of Hazardous Waste; Amendments to Definition of Solid Waste, 59 Fed.Reg. 38,536 (1994) (“1994 Rule”). EPA determined that oil-bearing wastewa-ters are solid waste for purposes of RCRA regulation, and that recovered oil from petrochemical facilities is excluded from the definition of solid waste only when specified conditions are met. See Proposed Rule, 60 Fed.Reg. at 57,755/3-57,-756/1; Final Rule, 63 Fed.Reg. at 42,128-30; 40 C.F.R. § 261.4(a)(12), (18). Industry petitioners challenge these conclusions.

B. Oil-Bearing Wastewaters

In petroleum refining, impurities are removed and usable hydrocarbon fractions are isolated from crude oh feedstock. See Final Rule, 63 Fed.Reg. at 42,113/3-42,115/1, 42,121/2. Large quantities of water are used, and the resulting wastewaters contain a small percentage of residual oil. These “oilbearing wastewaters” are destined for ultimate discharge, but only after a three-step treatment process is first applied. The first phase of treatment, known as “primary treatment,” removes certain materials including the oil. This phase has at least two beneficial consequences: (1) it meets a Clean Water Act requirement that refineries remove oil from their wastewater, and (2) it allows refineries to recover a not insignificant quantity of oil (which industry claims can range up to 1,000 barrels a day at certain refineries) which is cycled back into the refinery production process.

Industry petitioners and EPA disagree over when these wastewaters become discarded for purposes of the solid waste definition. While no one disputes that discard has certainly occurred by the time the wastewaters move into the later phases of treatment, the question is whether discard happens before primary treatment, allowing regulation of wastewater as solid waste at that point, or not until primary treatment is complete and oil has been recovered for further processing.

EPA’s initial proposal excluded oil-bearing wastewaters. See 1994 Rule, 59 Fed. Reg. at 38,540/3 (citing Identification and Listing of Hazardous Waste; Amendments to Definition of Solid Waste, 53 Fed.Reg. 519, 525-26 (1988)). However, it changed its mind in 1994 and concluded that even before the oil is recovered in primary treatment, “the wastewaters are discarded materials and hence solid wastes subject to regulation under RCRA.” 59 Fed.Reg. 38,540/1. EPA stated: “Primary wastewater treatment operations exist to treat plant wastewaters.” Id. at 38,539/3.

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216 F.3d 50, 342 U.S. App. D.C. 159, 30 Envtl. L. Rep. (Envtl. Law Inst.) 20686, 50 ERC (BNA) 1833, 2000 U.S. App. LEXIS 14641, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-petroleum-institutepetitioners-v-united-states-environmental-cadc-2000.