Federal Pacific Electric Co. v. New Jersey Department of Environmental Protection

759 A.2d 851, 334 N.J. Super. 323, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20165, 2000 N.J. Super. LEXIS 351
CourtNew Jersey Superior Court Appellate Division
DecidedSeptember 22, 2000
StatusPublished
Cited by18 cases

This text of 759 A.2d 851 (Federal Pacific Electric Co. v. New Jersey Department of Environmental Protection) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Pacific Electric Co. v. New Jersey Department of Environmental Protection, 759 A.2d 851, 334 N.J. Super. 323, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20165, 2000 N.J. Super. LEXIS 351 (N.J. Ct. App. 2000).

Opinion

The opinion of the court was delivered by

KESTIN, J.A.D.

In a letter dated July 24, 1997, a section supervisor in the Department of Environmental Protection’s (Department) Bureau [326]*326of Environmental Evaluation and Cleanup Responsibility Assessment disapproved the groundwater component of Federal Pacific Electric Company’s (FPE) remedial action workplan for complying with the requirements of the Industrial Site Recovery Act (ISRA), N.J.S.A. 13:lK-6 to -13 (sometimes referred to as S. 1070). FPE then sought to pursue the dispute resolution process mandated in N.J.S.A 58:10B-17. At each of four intermediate steps, the disputed determination was approved or reaffirmed on the merits. The matter then came before the Commissioner who, in a January 30,1998 letter disposition, stated:

[E]very case does not offer circumstances which present themselves for dispute resolution. In particular, issues of interpretations of statutes, which are inherently questions of law, do not lend themselves to dispute resolution. It does not appear that there are factual disputes or, in fact, questions of policy contained within the record. Therefore, ... I am satisfied that this particular case does not lend itself to resolution under the dispute resolution process.

From this effective dismissal of its objections to the disapproval of its groundwater cleanup proposal, FPE appeals.

The challenge was initially filed in the Law Division on a complaint for declaratory judgment. The Department moved to transfer the matter to the Appellate Division on the basis of our exclusive jurisdiction over the final decisions or actions of state administrative agencies or officers and over issues implicating the validity of state agency rule promulgations. See R. 2:2-3(a)(2). An order transferring the matter was entered, and we denied FPE’s subsequent motions to remand the matter to the Law Division for want of a final agency determination and to supplement the record with a toxicologist’s affidavit. In other orders, we granted four motions for leave to appear as amicus curiae. Three of those amici have participated.

In general outline, FPE’s appeal is based on two arguments: (1) in rejecting the groundwater component of FPE’s workplan as non-compliant with minimum remediation standards, the Department erred because it had failed to adopt the standards applied in accordance with the Administrative Procedure Act (APA), N.J.S.A 52:14B-1 to-24; and that the standards used, i.e., the [327]*327Groundwater Quality Standards, N.J.A.C. 7:9 — 6.1 to -6.11 (GWQS), and the Technical Requirements for Site Remediation, N.J.A.C. 7:26E-1.1 to -7.1 (Technical Rules), violate the pertinent enabling acts; and (2) because the Department had not validly adopted the appropriate standards, it should have addressed FPE’s workplan on a case-by-case basis. Amicus 2B Environmental, Inc. argues in addition that the Department erred in failing to reclassify the groundwater in the geographic area involved, the Ironbound section of Newark, arguably a “large area) ] of historic industrial contamination”, N.J.S.A. 58:10B-12h(2), as required by statute, and that currently applied standards must be invalidated as a result.

Based on FPE’s arguments premised upon the requirements of the APA governing rulemakings, N.J.S.A. 52:14B-3 to -8, -22 to -24, we reverse and remand for such further proceedings as the Department may elect to undertake between repromulgation of the regulations at issue in conformity with APA requirements or treatment of FPE’s workplan on a case-by-case basis.

FPE’s remedial action workplan recites an undisputed history. Beginning in the 1860s, a significant portion of the City of Newark primarily comprised of salt marsh was “systematically filled” with “any available materials, including hazardous industrial waste, ... municipal solid wastes, construction debris, industrial wastes, coal cinders, ash, dredged materials from Newark Bay, as well as clean fill.”

From the 1940s to 1983, FPE owned and operated an electric panel manufacturing facility located at 14-16 Herbert Street in the Ironbound area of Newark. The site has a long history of industrial usage reportedly dating back to the nineteenth century, when it was used as a steel foundry. The Ironbound area is a heavily industrialized section of the City, surrounded by major roadways, rail yards, and Newark International Airport. Immediately adjacent to FPE’s site are a Conrail rail spur and several industrial operations including a salvage yard, a container compa[328]*328ny, and a barrel cleaning company. Thirty-three environmentally contaminated sites are also located within a one-mile radius.

FPE’s manufacturing processes included “painting, plating, cleaning, degreasing, and component assembly and pack-out.” In its processes, FPE used trichloroethene (TCE), a chlorinated volatile organic compound (VOC) classified as a probable carcinogen. Raw materials, manufactured goods, and drummed wastes were stored on site.

In 1983, FPE sold the property to a realty company, but continued operations on a leased portion until 1986, when it contracted to sell its assets. That transaction triggered the application of the Environmental Cleanup Responsibility Act (ECRA), the predecessor statute of ISRA at issue here. In June 1986, FPE entered into an administrative consent order with the Department which allowed FPE to sell its assets before ECRA remediation requirements were satisfied. Thereafter, FPE commenced an investigation in accordance with its obligations under the consent order to identify environmental conditions at the site.

In May 1996, FPE submitted a remedial action workplan to the Department in which it reported significant levels of TCE contaminating the groundwater at the site. Sampling by FPE had revealed unacceptably high levels of TCE in groundwater at the downgradient border contrasted with considerably lower levels at the upgradient border.

The workplan noted that although the total volume of TCE used in FPE’s manufacturing processes was not known, “spillage into floor trenches in the plating and painting area, where it combined with waste water, is believed to have occurred.” The workplan noted further a belief that TCE had been released “to the subsurface ... through leaks in the floor, floor trenches and/or sewer lines and sumps.”

FPE’s workplan proposed active on-site remediation of groundwater through a recovery well and treatment near the downgradient border until the concentration of TCE or other VOCs leaving [329]*329the site reached its “remedial goal” of 50 milligrams per liter (mg/L). The workplan explained that the Department had not adopted minimum remediation standards as mandated by N.J.S.A. 58:10B-12, and that FPL had derived its site-specific remedial goal by integrating the findings of scientific studies, risk and exposure assessments, and information on site-specific conditions.

In respect of site-specific conditions, FPE’s workplan noted the industrial location and the historic environmental contamination of the area. Given those factors, the workplan concluded that it was “highly unlikely” that the site would be used for anything other than industrial purposes.

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Bluebook (online)
759 A.2d 851, 334 N.J. Super. 323, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20165, 2000 N.J. Super. LEXIS 351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-pacific-electric-co-v-new-jersey-department-of-environmental-njsuperctappdiv-2000.