K.P. McNamara Northwest, Inc. v. Department of Ecology

292 P.3d 812, 173 Wash. App. 104
CourtCourt of Appeals of Washington
DecidedJanuary 23, 2013
DocketNo. 42668-4-II
StatusPublished
Cited by2 cases

This text of 292 P.3d 812 (K.P. McNamara Northwest, Inc. v. Department of Ecology) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
K.P. McNamara Northwest, Inc. v. Department of Ecology, 292 P.3d 812, 173 Wash. App. 104 (Wash. Ct. App. 2013).

Opinion

Van Deren, J.

¶1 — KP McNamara Northwest and Kerry McNamara appeal the Pollution Control Hearings Board’s (Board) summary judgment order affirming two Department of Ecology (Department) penalties for violations of the Haz[109]*109ardous Waste Management Act (HWMA), chapter 70.105 RCW. The Department’s notice of penalty cited KP McNamara for failing to follow proper procedures under the dangerous waste regulations when it (1) shipped rinse water KP McNamara had designated as dangerous waste off-site and (2) received and managed “non-empty” containers without a permit. KP McNamara and Kerry McNamara argue that the Board erred when it concluded that (1) KP McNamara’s designation of its rinse water as “dangerous” was dispositive of the issue of whether the rinse water it shipped off-site was actually dangerous waste and (2) Kerry McNamara was personally liable for the Department’s penalty due to his position as president and chief executive officer (CEO) of KP McNamara.

¶2 The Department cross appeals the superior court’s remand to the Board. The Department asserts that the superior court erred when it concluded that the Board committed a procedural error by considering facts about KP McNamara’s receipt and management of non-empty containers because the issue before the Board was solely a question of law. KP McNamara and Kerry McNamara also appeal the superior court’s denial of their attorney fees request for work related to the remanded issue. We affirm the Board’s decision in full, reverse the superior court’s remand to the Board, and deny attorney fees to KP McNamara and Kerry McNamara both at the superior court and on appeal.

FACTS

¶3 KP McNamara operated a facility in Vancouver, Washington,1 that restored and deconstructed 300-gallon plastic containers called “totes.” Clerk’s Papers (CP) at 692. Kerry McNamara, the company’s owner and president, oversaw and controlled the Vancouver facility. The facility [110]*110received totes from a broad range of manufacturing and service facilities; it then drained them, rinsed them with water, and either refurbished or deconstructed them. Some of the totes contained biocide, paint, resin, or adhesive residue that may have been corrosive, ignitable, toxic, or otherwise extremely hazardous and designated as “dangerous waste” by Washington State dangerous waste regulations, chapter 173-303 WAC.2 3CP at 677.

¶4 Under the HWMA and the regulations implementing it, a facility that treats, stores, or disposes of dangerous waste (a TSD facility) must have a permit issued by the State of Washington. WAC 173-303-280(1), -800(2). A facility that uses containers that are not defined as “empty” under WAC 173-303-160(2)3 is also subject to the dangerous waste regulations and must have the proper permit. WAC 173-303-160(3)(b). KP McNamara did not possess a permit to operate as a TSD facility. Any person who generates solid waste4 must determine whether such waste is designated [111]*111as “dangerous,” and must follow the Department’s procedures for doing so. WAC 173-303-070(l)(b); Hickle v. Whitney Farms, Inc., 148 Wn.2d 911, 919-20, 64 P.3d 1244 (2003).

¶5 In August 2007, Deann Williams, an inspector for the Department’s Hazardous Waste and Toxics Reduction Program, conducted two inspections of the KP McNamara facility. During the inspections, Williams collected a rinse water sample from an accumulation on the floor in a sump of the tote rinse system. The water had a pH of 14, meaning that it was a corrosive, dangerous waste. Williams also noted that there were spills around pipes and totes, that employees at the facility did not seem to have an understanding of the proper handling or shipment of dangerous waste, and that there was no schedule for regular inspection of the facility.

¶6 Williams also noted containers without proper content labels and totes that did not meet the definition of “empty” under former WAC 173-303-160(2) (2000). CP at 678. She observed non-empty totes sitting outside the KP McNamara building, some of which did not have lids and were “off-gassing to the air” and were “leaking and draining to the tote below or to the gravel.” CP at 796. Based on her findings, Williams issued an immediate action letter to KP McNamara informing it of the steps that it had to take to bring the facility into compliance with the dangerous waste regulations.

¶7 On September 11, 2007, Williams met with Kerry McNamara and representatives of KP McNamara’s environmental service contract providers at the Vancouver facility. During the meeting, Williams noted that there were totes on site that had been there since August and that were still not properly labeled.

¶8 Addressing the results of Williams’s testing from her previous inspections, Kerry McNamara explained that one of his employees confused the soap and caustic systems and that the employee must have dumped the caustic solution [112]*112on the floor. He explained that the Vancouver facility used a “caustic wash” system that had a pH of 13 or 14. CP at 696. The waste from the system was supposed to be routed back to a holding tank and was to be reused until it was too dirty, and then it was to be managed off-site as a dangerous waste. Kerry McNamara stated that he did not plan to use the caustic solution on site in the future.

¶9 At that visit, Williams noted four totes labeled “hazardous waste, caustic” at the facility. CP at 698. Kerry McNamara stated that the totes contained soap solution drained out of the waste system but that the soap solution was likely mixed with caustic solution due to his employee’s confusion of the systems. He proposed to manage the four totes off-site as corrosive dangerous waste.

|10 To satisfy the Department’s concerns that the waste at KP McNamara’s facility could be corrosive or toxic, KP McNamara gave the Department its protocol for determining whether its wash water was a dangerous waste. The protocol provided that each batch of wash water would be individually tested before being shipped off-site, in compliance with the requirements for designation of dangerous waste under WAC 173-303-070(3). In response, the Department submitted a draft policies and practices statement to KP McNamara to confirm how KP McNamara would address compliance issues in the future, including that each batch of waste would be designated before disposal.

¶11 But as a result of KP McNamara’s concern about the cost of “batch testing” the rinse water, the Department later agreed that KP McNamara could instead declare the waste to be dangerous using “process knowledge,” meaning that it could designate all rinse water as dangerous waste instead of testing each batch individually. CP at 11. Under this understanding, the Department drafted another policies and practices document to ensure KP McNamara’s compliance with the regulations that provided, “Given the variability of wastewater [sic] generated by rinsing totes, KP McNamara will designate all waste in the 2500-gallon [113]*113water storage tanks as dangerous waste.” CP at 585. The document also provided that KP McNamara would not accept totes unless they were “empty” according to the dangerous waste regulations, and if it did receive such non-empty totes, it would ship them back to the generating facility and would not store them at KP McNamara.

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Cite This Page — Counsel Stack

Bluebook (online)
292 P.3d 812, 173 Wash. App. 104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kp-mcnamara-northwest-inc-v-department-of-ecology-washctapp-2013.