Fairchild Semiconductor Corp. v. United States Environmental Protection Agency

769 F. Supp. 1553, 91 Daily Journal DAR 11033, 91 Cal. Daily Op. Serv. 11315, 33 ERC (BNA) 1938, 1991 U.S. Dist. LEXIS 10200
CourtDistrict Court, N.D. California
DecidedJuly 22, 1991
DocketC-90-3205 SAW
StatusPublished
Cited by9 cases

This text of 769 F. Supp. 1553 (Fairchild Semiconductor Corp. v. United States Environmental Protection Agency) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Fairchild Semiconductor Corp. v. United States Environmental Protection Agency, 769 F. Supp. 1553, 91 Daily Journal DAR 11033, 91 Cal. Daily Op. Serv. 11315, 33 ERC (BNA) 1938, 1991 U.S. Dist. LEXIS 10200 (N.D. Cal. 1991).

Opinion

MEMORANDUM AND ORDER

WEIGEL, District Judge.

The issue in this case is whether the Court may review and enforce an Administrative Order on Consent (“Consent Order”) entered into by plaintiff Fairchild Semiconductor Corporation (“Fairchild”) and defendant United States Environmental Protection Agency (“EPA”). The Consent Order, executed in August 1985, relates to the study of hazardous waste cleanup alternatives for the industrial Middlefield-Ellis-Whisman area of Mountain View, California. The area is a large one in which many industrial firms are now or have been located.

The Consent Order was issued by EPA pursuant to its power to abate environmental hazards under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (“CERCLA”), 42 U.S.C.A. § 9601 et seq. (West 1983). CERCLA was subsequently amended by the Superfund Amendments and Reauthorization Act of 1986 (“SARA” or “Superfund Amendments”), 42 U.S.C.A. § 9601 et seq. (West Supp.1991).

Fairchild moves for partial summary judgment on its claim that EPA arbitrarily and capriciously breached the Consent Order. 1 EPA moves for “summary judgment of dismissal” of the entire complaint on the ground that CERCLA deprives this Court of subject matter jurisdiction. In the alternative, EPA moves to dismiss portions of the complaint for failure to state a claim. Because the facts of this case and the statutory framework of CERCLA are complex, a prefatory discussion is in order.

I. OVERVIEW OF CERCLA, AS AMENDED BY SARA

CERCLA, as amended by SARA, creates a comprehensive statutory scheme designed to address the problem of hazardous substance release. These Acts authorize EPA to undertake direct removal or *1555 remedial action to protect the public health or welfare, or the environment, when it determines that release of a hazardous substance poses an imminent and substantial danger. EPA may also require that the parties responsible for the release of the substance will take appropriate removal or remedial action. CERCLA’s primary purpose is “the prompt cleanup of hazardous waste sites.” Barmet Aluminum Corp. v. Reilly, 927 F.2d 289, 291 (6th Cir.1991) (citations and quotation marks omitted).

Removal refers to short-term action taken to halt the immediate risks posed by hazardous wastes. 42 U.S.C. § 9601(23). Remedial action refers to permanent remedies taken instead of or in addition to removal, including the destruction of hazardous wastes. § 9601(24); see also Barmet, 927 F.2d at 291; Schalk v. Reilly, 900 F.2d 1091, 1092 n. 1 (7th Cir.), cert. denied, — U.S. -, 111 S.Ct. 509, 112 L.Ed.2d 521 (1990). Removal action is taken before remedial action. During the removal action phase, a site posing a risk of hazardous waste release is studied and various cleanup options considered. § 9604(a). The ensuing site-specific study is called a Remedial Investigation/Feasibility Study (“RI/ FS”). The study may be performed either by EPA or by a potentially responsible party (“PRP”), once EPA has determined that the PRP will properly perform the study. Id. This was also the case before the enactment of the Superfund Amendments. § 9604(a) (West 1983).

Once the RI/FS has been completed, EPA will choose the remedial action appropriate for the site. Before finalizing its choice, EPA is required to submit a proposed plan to the public for comment. § 9617(a). In connection with its choice, EPA must develop an administrative record upon which it has based its decision, including what is known as a Record of Decision. § 9613(k). 2 If, after EPA approves a final plan, it takes any remedial action which differs in any significant respect from this plan, it is required to publish “an explanation of significant differences,” which explains and justifies the changes. § 9617(c).

Pursuant to Section 106 of CERCLA, 42 U.S.C. § 9606, EPA has power to take actions and issue orders designed to abate “an imminent and substantial endangerment to the public health or welfare or the environment because of an actual or threatened release of a hazardous substance from a facility.” § 9606(a). Violations of these orders may subject responsible parties to substantial fines. § 9606(b). Finally, EPA may enter into settlement agreements with PRPs in which the PRPs agree to perform some or all of the cleanup of the site. § 9622. The Superfund Amendments require that such agreements be approved by the Attorney General, be open to public comment, and ultimately be entered in the appropriate United States District Court. § 9622(d). 3

II. FACTS

As noted earlier, in August 1985, EPA entered into a Consent Order with Fair-child. Other parties to that Order were: Intel Corporation; Raytheon Company; the California Regional Water Quality Control Board; and the California Department of Health Services. 4 The Consent Order concerned investigation, study, and cleanup of the industrial Middlefield-Ellis-Whisman area of Mountain View, California (“MEW site”). It called for preparation of both a Remedial Investigation (“RI”) and of a Feasibility Study (“FS”) by the PRPs, including plaintiff, at their own expense. According to the Consent Order, the purpose *1556 of the RI was “to determine fully the nature and extent of any threat to the public health or welfare or the environment caused by the release or threatened release of hazardous substances, pollutants or contaminants” at the MEW site. Consent Order, Part II. A., at 3. The purpose of the FS was “to evaluate alternatives for the appropriate nature and extent of remedial action to prevent or mitigate the migration or the release or threatened release of hazardous substances, pollutants, or contaminants” at or from the MEW site. Id., Part II. B., at 3. The Consent Order expressly stated that it was issued by EPA pursuant to enforcement authority under Section 106(a) of CERCLA, 42 U.S.C. § 9606(a).

The Consent Order set forth the procedures which would govern the performance of the RI/FS by the PRPs. It contained no suggestion of what remedial action EPA would ultimately select for the MEW site.

The final draft of the FS set forth several specific soil and groundwater “cleanup goals ” for the PRPs to meet, to bring the site into compliance with CERCLA, 42 U.S.C. § 9621 (setting forth cleanup requirements). Feasibility Study Report, at 243. The final draft was approved by EPA in November 1988, subject to possible modification in the future. See

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769 F. Supp. 1553, 91 Daily Journal DAR 11033, 91 Cal. Daily Op. Serv. 11315, 33 ERC (BNA) 1938, 1991 U.S. Dist. LEXIS 10200, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fairchild-semiconductor-corp-v-united-states-environmental-protection-cand-1991.