Meritor, Inc. v. EPA

966 F.3d 864
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 28, 2020
Docket18-1325
StatusPublished

This text of 966 F.3d 864 (Meritor, Inc. v. EPA) 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
Meritor, Inc. v. EPA, 966 F.3d 864 (D.C. Cir. 2020).

Opinion

United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued November 7, 2019 Decided July 28, 2020

No. 18-1325

MERITOR, INC., PETITIONER

v.

ENVIRONMENTAL PROTECTION AGENCY, RESPONDENT

On Petition for Review of Agency Action of the United States Environmental Protection Agency

Catherine E. Stetson argued the cause for petitioner. With her on the briefs were Mitchell P. Reich, Heidi B. Friedman, and Joel Eagle.

James R. Bieke, C. Frederick Beckner III, Peter C. Tolsdorf, Steven P. Lehotsky, and Michael B. Schon were on the brief for amici curiae the National Association of Manufacturers, et al., in support of petitioner. Linda E. Kelly entered an appearance.

John Thomas H. Do, Attorney, U.S. Department of Justice, argued the cause for respondent. With him on the brief was Jonathan D. Brightbill, Principal Deputy Assistant Attorney General. Jon M. Lipshultz, Attorney, entered an appearance. 2 Before: MILLETT and KATSAS, Circuit Judges, and SENTELLE, Senior Circuit Judge.

Opinion for the Court filed by Circuit Judge MILLETT.

MILLETT, Circuit Judge: The Environmental Protection Agency maintains a National Priorities List that identifies those hazardous waste sites in most urgent need of cleanup based on the threat that they pose to public and environmental health and to the public welfare. In 2018, the EPA added the Rockwell International Wheel & Trim facility and surrounding areas to the National Priorities List. Meritor, Inc., which has assumed Rockwell International Corporation’s environmental liabilities for the facility, challenges the listing as arbitrary, capricious, and contrary to governing regulations. Meritor’s main objection is that the EPA failed to take sufficient account of an already installed sub-slab depressurization system in determining the hazardousness of the site. Because the EPA’s decision was reasonable and consistent with the governing regulatory provisions, we deny the petition for review.

I

A

Congress enacted the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), 42 U.S.C. §§ 9601 et seq., “to address the growing problem of inactive hazardous waste sites throughout the United States.” Eagle-Picher Indus., Inc. v. EPA, 759 F.2d 922, 925 (D.C. Cir. 1985). CERCLA directs the EPA to develop “criteria for determining priorities among releases or threatened releases” of hazardous waste into the environment. 42 U.S.C. § 9605(a)(8)(A). Based on those determinations, the EPA must maintain a National Priorities List. Id. 3 § 9605(a)(8)(B). That List “identifies those hazardous-waste sites considered to be the foremost candidates for environmental cleanup” based on “the relative risk or danger they pose to the public health, public welfare, or the environment.” CTS Corp. v. EPA, 759 F.3d 52, 55 (D.C. Cir. 2014).

The EPA has developed a set of regulations, known as the Hazard Ranking System, that it uses to evaluate whether, and to what degree, a site poses a risk to the environment or to human health and welfare. See generally 40 C.F.R. Part 300, App. A.

Under that scheme, the EPA evaluates up to four “pathways” through which hazardous substances can migrate: (1) groundwater, (2) surface water, (3) air, and (4) soil exposure. 40 C.F.R. Part 300, App. A § 2.1. The soil-exposure pathway includes analysis of the extent to which hazardous substances intrude from the subsurface. Id. In particular, the subsurface intrusion component evaluates the emanation (or potential emanation) of noxious vapors from the soil into occupied buildings. Id. § 5.2.0. That subsurface intrusion factor is the central focus of this case.

In evaluating each pathway, the EPA weighs three metrics: (1) the “likelihood of release” of hazardous waste into the environment, (2) the “waste characteristics” of those substances (such as the quantity, toxicity, mobility, persistence, capacity to degrade, or bioaccumulation potential), and (3) the “targets” of the hazardous waste, meaning who will suffer exposure, whether humans, animals, natural resources, or sensitive environments. 40 C.F.R. Part 300, App. A §§ 2.3– 2.5.

Based on those metrics, the EPA assigns a numerical value to each pathway, which it then converts into a score between 0 4 and 100 for the site as a whole. 40 C.F.R. Part 300, App. A § 2.1.1, 2.1.2 & Table 2-1. Sites scoring 28.5 or higher may be added to the List. 83 Fed. Reg. 46,408, 46,409 (Sept. 13, 2018).

Once a site is added to the National Priorities List, it becomes eligible for remedial action financed by the EPA’s Superfund Program. CTS Corp., 759 F.3d at 56; see also 42 U.S.C. § 9611. If the EPA chooses to conduct a cleanup, it may seek reimbursement from parties who are potentially responsible for contributing to the hazard, known as “Potentially Responsible Parties.” General Elec. Co. v. Jackson, 610 F.3d 110, 114 (D.C. Cir. 2010) (citing 42 U.S.C. §§ 9604(a), 9607(a)(4)(A)).

B

From 1966 to 1985, the automotive division of Rockwell International Corporation manufactured wheel covers at a facility in Grenada, Mississippi, which we shall refer to as the Rockwell Facility. The Rockwell Facility borders a residential neighborhood, as well as a creek and agricultural land. The wheel-cover manufacturing process produced hazardous substances, including toluene, trichloroethylene (TCE), and cis-1,2-dichloroethene (DCE), which were stored on site. A 1994 investigation revealed that those operations had led to a plume of toluene and TCE collecting in the soil and groundwater under and around the Rockwell Facility.

Exposure to toluene or TCE can cause a range of health impairments. Short-term inhalation exposure can result in central nervous system dysfunction, leading to headaches, dizziness, confusion, and fatigue. Long-term exposure can cause even more serious health repercussions. Among other things, TCE has been shown to be carcinogenic to humans and 5 chronic exposure to high levels of toluene can cause ataxia and cerebral atrophy.1

In 1985, Rockwell International sold the Rockwell Facility to another company (that is not a party to this suit). Years later, Rockwell International spun off its automotive division into a separate corporation called Meritor, Inc. As a result, while “Meritor never owned or operated the [Rockwell] Site[,]” J.A. 48 n.5, it contractually “assumed various environmental obligations in certain areas of the [Rockwell] Site[.]” J.A. 52. As Meritor confirmed at oral argument, those environmental obligations include assuming Rockwell International’s legal liabilities with respect to the Rockwell Facility. Oral Arg. Tr. 4:25–5:3 (“Meritor * * * took on the liabilities of Rockwell[,]” including those associated with “the Rockwell [S]ite.”).

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