Newell Recycling Company, Inc. v. United States Environmental Protection Agency

231 F.3d 204, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20271, 51 ERC (BNA) 1577, 2000 U.S. App. LEXIS 27865
Court of Appeals for the Fifth Circuit·Decided November 8, 2000·No. 99-60694·Published·Cited by 28 cases

Opinion

DUHÉ, Circuit Judge:

Newell Recycling Company, Inc. (“New-ell”) appeals a final decision of the Environmental Protection Agency’s Environmental Appeals Board (“EAB”) holding Newell liable for violating the disposal requirements for polychlorinated biphenyls (“PCBs”) established in Section 6(e) of the Toxic Substances Control Act (“TSCA”). The EAB’s decision penalized Newell $1.345 million, less an amount paid in settlement by a co-defendant, for violating the TSCA. For the following reasons, we affirm.

BACKGROUND

Newell owned and operated a recycling facility in Houston, Texas, during the 1970’s and early 1980’s. In 1982, Newell sold the facility to Oklahoma Metal Processing, Inc. d/b/a Houston Metal Processing Company (“HMPC”). In the sale, Newell agreed to “specifically assume any liability resulting from an occurrence prior to the closing date of this sale.”

Within two years of the sale, the Texas Department of Health sought soil samples to verify its suspicions of lead contamination at the recycling facility site. Shortly thereafter, Newell Enterprises asked ' HMPC to authorize Newell Recycling Company, Inc. (i.e., “Newell,” the Petitioner in this case), Newell Products of Houston, Inc., and Newell Industries, Inc., to commence testing for lead contamination and cleanup on the site. After the soil samples showed lead contamination, a consultant recommended to Newell that the contaminated soil be removed to a hazardous waste facility for disposal. The consultant noted that HMPC had authorized Newell to perform testing, cleanup, and soil transportation functions at the site.

While superintending lead cleanup operations there in 1985, Newell discovered the PCB contamination that this case concerns. Electric capacitors seeping PCB-contaminated fluids lay buried in the soil unearthed during the lead contamination cleanup. Newell — although advised repeatedly by another consultant it had hired that the PCB-contaminated soil piled at the site had to be treated or disposed of by methods acceptable to the EPA under the TSCA — waited until after the EPA filed an administrative complaint against it in 1995 for violating the TSCA to remove the soil to a disposal facility. Approximately ten years elapsed, then, from New-ell’s discovery of the buried capacitors in 1985 to its proper disposal of the PCB-contaminated soil pile in 1995. The record does not explain this delay.

The Presiding Officer granted the EPA an accelerated decision (the equivalent of summary judgment) on its administrative complaint, holding that Newell committed an act of improper disposal by knowingly causing PCB-contaminated soil to be excavated and stockpiled at the site and then “leaving [the soil] there and taking no further clean-up action.” In re Oklahoma *206 Metal Processing Co., Inc., No. VI-659C (EPA April 29, 1997) (order granting partial accelerated decision on issue of liability). The Presiding Officer assessed New-ell a $1,345 million fíne for the disposal violation, less the amount HMPC paid the EPA to settle an action regarding its role in the improper disposal at the site. New-ell appealed the Presiding Officer’s liability rulings and his penalty assessment decision to the EAB. It affirmed the Presiding Officer’s decision. Newell appeals the EAB’s decision.

Newell argues that a five-year statute of limitations barred the EPA’s TSCA complaint, that on the merits Newell is not liable for an “improper disposal” under the TSCA, and that the Presiding Officer’s application of the EPA’s 1990 Polychlori-nated Biphenyls Penalty Policy (the “Penalty Policy”) generated an excessive penalty that violated Newell’s constitutional rights.

DISCUSSION

We must affirm the EAB’s decision unless it is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 5 U.S.C. § 706(2)(A). See also Amoco Production Co. v. Lujan, 877 F.2d 1248, 1248 (5th Cir.1989) (“On review of an agency adjudication, ... the reviewing court must in general affirm the decision unless the agency’s action was arbitrary, capricious, or otherwise not in accordance with law”).

I. Limitations .

28 U.S.C. ,§ 2462 supplies the statute of limitations applicable here:

Except as otherwise provided by Act of Congress, an action, suit or proceeding for the enforcement of any civil fine, penalty, or forfeiture, pecuniary or otherwise, shall not be entertained unless commenced within five years of the date when the claim first accrued....

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Newell Recycling Company, Inc. v. United States Environmental Protection Agency, 231 F.3d 204, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20271, 51 ERC (BNA) 1577, 2000 U.S. App. LEXIS 27865 (5th Cir. 2000).

231 F.3d 204 (Newell Recycling Company, Inc. v. United States Environmental Protection Agency) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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