Ciba-Geigy Corporation v. Sidamon-Eristoff

3 F.3d 40, 23 Envtl. L. Rep. (Envtl. Law Inst.) 21340, 38 ERC (BNA) 1226, 1993 U.S. App. LEXIS 20582
CourtCourt of Appeals for the Second Circuit
DecidedAugust 12, 1993
Docket1413
StatusPublished

This text of 3 F.3d 40 (Ciba-Geigy Corporation v. Sidamon-Eristoff) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ciba-Geigy Corporation v. Sidamon-Eristoff, 3 F.3d 40, 23 Envtl. L. Rep. (Envtl. Law Inst.) 21340, 38 ERC (BNA) 1226, 1993 U.S. App. LEXIS 20582 (2d Cir. 1993).

Opinion

3 F.3d 40

23 Envtl. L. Rep. 21,340

CIBA-GEIGY CORPORATION and Hercules Incorporated, Petitioner,
v.
Constantine SIDAMON-ERISTOFF, in his official capacity as
Regional Administrator of Region II of the United
States Environmental Protection Agency,
Respondent.

No. 1413, Docket 92-4129.

United States Court of Appeals,
Second Circuit.

Argued May 27, 1993.
Decided Aug. 12, 1993.

Thomas S. West, Albany, NY (Elise N. Zoli, LeBoeuf, Lamb, Leiby & MacRae, on the brief), for petitioner.

John A. Sheehan, U.S. Dept. of Justice, Washington, DC (Myles E. Flint, Acting Asst. Atty. Gen., Craig D. Galli, U.S. Dept. of Justice, Lawrence E. Starfield, U.S. Environmental Protection Agency, Washington, DC, Stuart N. Keith, U.S. Environmental Protection Agency, New York City, on the brief), for respondent.

Robert Abrams, Atty. Gen., Joan Leary Matthews, Peter Crary & Val Washington, Asst. Attys. Gen., Albany, NY, filed a letter brief for amicus curiae New York State Dept. of Environmental Conservation.

Before: NEWMAN, Chief Judge, FEINBERG, Circuit Judge, and KELLEHER,* District Judge.

JON O. NEWMAN, Chief Judge:

This case is before the Court upon the petition of Ciba-Geigy Corporation and Hercules Incorporated (collectively "Ciba"), the current and past operators of a hazardous waste site in Glen Falls, New York, for review of a Memorandum of Agreement between the Environmental Protection Agency and New York State, a decision of the Environmental Appeals Board, and two decisions of the EPA Regional Administrator. In each challenge, Ciba seeks to vindicate a narrow legal point: its contention that EPA cannot administer federal permits for hazardous waste sites in states that have their own federally approved hazardous waste programs under the Hazardous and Solid Waste Amendments ("HSWA") to the Resource Conservation and Recovery Act ("RCRA"). Because we conclude that Ciba has partially failed to exhaust administrative remedies, we dismiss the petition in part. As to the remaining aspects of the petition, we conclude that EPA's construction of RCRA is permissible, and deny the petition.

Background

A brief review of the underlying statutory scheme will be helpful in understanding our disposition of this petition.

A. RCRA permits

RCRA established "a comprehensive 'cradle-to-grave' system for regulating the management of hazardous wastes." 1 Susan M. Cooke, et al., The Law of Hazardous Waste Sec. 1.01 at 1-4 (1993). The statute regulates generators of waste, transporters of waste, and operators of waste treatment, storage, and disposal facilities. See 42 U.S.C.A. Secs. 6922-24 (West 1983 & Supp.1993). Facility operators are required to obtain an operating permit. See 42 U.S.C. Sec. 6925(a) (1988).

The statutory scheme contemplates an eventual delegation of permit-issuing authority from EPA to the states. States may submit to the EPA Administrator details of a proposed state hazardous waste program. 42 U.S.C. Sec. 6926(b) (1988). The program must be "equivalent" to the federal RCRA program. Id. Sec. 6926(b)(1). If the Administrator approves the program, the state carries out its program "in lieu" of the federal program. Id. Sec. 6926(b). In particular, the state is responsible for the issuance and administration of permits. Id. However, even after approval of a state program, EPA retains significant involvement. EPA may bring enforcement actions, see 42 U.S.C. Secs. 6928, 6973 (1988), and may inspect and monitor sites, see 42 U.S.C.A. Secs. 6927, 6934 (West 1983 & Supp.1993). See generally Wyckoff Co. v. E.P.A., 796 F.2d 1197, 1200-01 (9th Cir.1986) (EPA may issue order under 42 U.S.C. Sec. 6934 requiring operator to perform monitoring and report results to EPA even after state authorization).

The original version of RCRA primarily concentrated on ongoing management of hazardous wastes, and did not provide authority for mandating corrective action to cure past mismanagement of waste. Congress acted to close this gap in 1984 with enactment of HSWA. Among other requirements, HSWA requires that permits for facilities with an existing hazardous waste problem include a schedule for cleaning up the wastes. See 42 U.S.C. Sec. 6924(u)-(v). HSWA also significantly complicated the division of authority between the federal government and the states. Concerned that regulations promulgated under HSWA be implemented as quickly as possible, Congress provided that new federal HSWA regulations would take effect in all states simultaneously, whether or not the state had an approved program under section 6926(b). See 42 U.S.C. Sec. 6926(g)(1) (1988); Cooke Sec. 1.03, at 1-20 to 1-21. If states wish to take over administration of these new regulations, they must amend their hazardous waste programs so as to be "substantially equivalent" to the federal HSWA regulations. Once this amendment is accomplished, the state may apply to the Administrator for "interim authorization ... to carry out [the state] requirement in lieu of direct administration in the State by the Administrator of [the federal] requirement." Id. Sec. 6926(g)(2). Eventually, states wishing to administer these regulations must adopt regulations fully equivalent to federal HSWA regulations, and obtain final authorization for the state HSWA program under section 6926(b).

In states that have obtained RCRA authorization under section 6926(b) but have not obtained authorization for HSWA regulations, whether under section 6926(g)(2) or section 6926(b), operators of most hazardous waste sites are required to obtain permits from both the state and EPA. See American Iron and Steel Institute v. U.S. E.P.A., 886 F.2d 390, 403 (D.C.Cir.1989), cert. denied, 497 U.S. 1003, 110 S.Ct. 3237, 111 L.Ed.2d 748 (1990); Cooke Sec. 5.03, at 5-53 to 5-54. In practice, these dual permits apparently tend to overlap considerably and may even impose conflicting requirements since "[i]t is not uncommon for the state and EPA to have different views on the same substantive issue. When this occurs, the applicant may get whipsawed between the two agencies." See John C. Chambers, Jr. & Peter L. Gray, Intergovernmental Relations: EPA and State Roles in RCRA and CERCLA, Nat. Resources & Env't, July 1989, at 7.

The statute does not contain specific provisions concerning the status of existing federal permits after a state obtains HSWA authorization under section 6926(g)(2) or section 6926(b). Under regulations adopted by EPA, the state is required to reissue permits to existing permittees. 40 C.F.R. Sec. 271.13(d).1 These state RCRA permits contain the requirements of both the previously issued state and federal permits. Id. At some point after issuance of the state RCRA permit, EPA will terminate the previous federal permit. See 40 C.F.R. Sec. 271.8(b)(6).

B. The New York program

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3 F.3d 40, 23 Envtl. L. Rep. (Envtl. Law Inst.) 21340, 38 ERC (BNA) 1226, 1993 U.S. App. LEXIS 20582, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ciba-geigy-corporation-v-sidamon-eristoff-ca2-1993.