Oil Re-Refining Co. v. Environmental Quality Commission

361 P.3d 46, 273 Or. App. 502, 2015 Ore. App. LEXIS 1077
CourtCourt of Appeals of Oregon
DecidedSeptember 10, 2015
Docket1001690; A149365
StatusPublished
Cited by2 cases

This text of 361 P.3d 46 (Oil Re-Refining Co. v. Environmental Quality Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oil Re-Refining Co. v. Environmental Quality Commission, 361 P.3d 46, 273 Or. App. 502, 2015 Ore. App. LEXIS 1077 (Or. Ct. App. 2015).

Opinion

ARMSTRONG, P. J.

Petitioner, Oil Re-Refining Company (ORRCO), seeks judicial review of a final order of the Environmental Quality Commission (the commission) in a contested case in which the Department of Environmental Quality (DEQ) sought to fine petitioner for transporting and treating hazardous waste without a required manifest and permit in violation of 40 CFR section 263.20(a)(1) (2007)1 and ORS 466.095(l)(c). ORRCO challenges the commission’s interpretation of those provisions, arguing that they require DEQ to prove that ORRCO did not rely on the waste generator’s characterization of the waste as nonhazardous or that ORRCO nonetheless knew that the waste it transported and treated was hazardous. The commission argues that the applicable provisions provide for strict liability for a violation, rendering ORRCO’s mental state irrelevant. We conclude that the commission did not err in its interpretation of 40 CFR section 263.20(a)(1) or ORS 466.095(l)(c). Accordingly, we affirm.

To provide context, we first discuss generally the law governing the transportation, disposal, and treatment of hazardous waste. The federal Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act (RCRA), 42 USC §§ 6901-6992K, addresses, among other things, the management of hazardous waste. “It prescribes a nationwide, ‘cradle-to-grave’ regulatory framework governing the ‘safe treatment, storage and disposal of hazardous waste,’ and charges the [United States Environmental Protection Agency (US EPA)] with promulgating regulations setting the necessary standards to achieve those goals.” Sierra Club v. EPA, 755 F3d 968, 970 (DC Cir 2014) (quoting United Technologies Corp. v. EPA, 821 F2d 714, 716 (DC Cir 1987)). Central to RCRA’s “cradle to grave” management of hazardous waste is the manifest system. Under that system, a generator of hazardous waste is charged with characterizing its waste and, if its hazardous waste is to be taken [505]*505offsite, to fill out the required manifest form, which then follows that waste at every step as it is transported, disposed, or treated.2 See 42 USC § 6903(12) (“The term ‘manifest’ means the form used for identifying the quantity, composition, and the origin, routing, and destination of hazardous waste during its transportation from the point of generation to the point of disposal, treatment, or storage.”); ORS 466.005(11) (same). Facilities that accept hazardous waste for treatment, storage, or disposal are required to obtain a permit to do that and are regulated in how they handle the hazardous waste. See generally 40 CFR pt 264. RCRA is a strict-liability statute that has been construed liberally to meet its public welfare objectives.3

The statute at issue in this case, ORS 466.095(l)(c), provides, in part, that “no person shall *** [e]stablish, construct or operate a hazardous waste treatment site in this state without obtaining a hazardous waste treatment site permit.” That statute is among a set of statutes adopted by the Oregon legislature to implement in Oregon a state [506]*506hazardous waste program to be carried out in lieu of RCRA. See 42 USC § 6926 (providing for authorization of state program); ORS 466.086 (authorizing the commission and DEQ to obtain final authorization of a state program under RCRA). A state program must be equivalent to the federal program, 42 USC § 6926(b), and cannot impose “any requirements less stringent” than under the federal program, id. § 6929. However, RCRA also provides that nothing in that act prohibits a state from imposing standards that are more stringent than required under RCRA. Id.

Under Oregon’s program, DEQ is charged with administering, enforcing, and implementing Oregon’s hazardous waste program, and the commission is charged with adopting rules and issuing orders relating to the hazardous waste program. ORS 466.015; ORS 466.020. The rule at issue in this case — 40 CFR section 263.20(a)(1) — is one of a set of federal rules promulgated by US EPA that the commission has adopted as part of Oregon’s hazardous waste program. OAR 340-100-0002(1) (adopting by reference, and requiring compliance with, US EPA hazardous waste regulations prescribed in 40 CFR parts 260 to 266, among others). That rule provides that “[a] transporter may not accept hazardous waste from a generator unless the transporter is also provided with a manifest signed in accordance with the requirements of § 262.23.”

We turn to the facts of this case. Because petitioner raises only legal arguments on review and does not contest any of the findings in the commission’s final order, we recite only limited facts from the final order that provide necessary context for our discussion. ORRCO has a facility located in Portland, Oregon, at which it “accepts materials such as used oil and filters, anti-freeze, fuels, and oily absorbents for recycling and disposal.” Absorbent Technologies, Inc. (ATI), had a facility in Albany, Oregon, at which it manufactured a starch-based soil amendment. In its manufacturing process, ATI “used methanol to extract water from its product,” resulting “in a water and methanol product that ultimately required disposal.”

In January 2004, ATI contacted ORRCO about taking its methanol and water product for disposal or [507]*507fuel recovery. Between January and March 2004, ORRCO received six loads of the methanol and water product from ATI. Additionally, between July and September 2004, ORRCO transported three loads of the methanol and water product from ATI to ORRCO’s facility. ORRCO burned all nine loads of the methanol and water product at its facility for energy recovery. ORRCO did not have a hazardous waste manifest for any of the three loads that it transported to its facility. ORRCO also did not have a hazardous waste treatment site permit at the time that it burned any of the nine loads.

After an investigation, DEQ issued to ORRCO in September 2009 a Notice of Civil Penalty Assessment and Order based on the above acts. The notice sought to impose a fine against ORRCO for violating ORS 466.095(l)(c) by “operating a hazardous waste treatment site without obtaining a hazardous waste treatment site permit,” and 40 CFR section 263.20(a)(1), as adopted by OAR 340-100-0002, by “accepting hazardous waste for transport without the waste being accompanied by a hazardous waste manifest.” ORRCO requested an administrative hearing, which was held in December 2010 before an administrative law judge (ALJ). The ALJ issued a proposed and final order for the commission, which became the commission’s final order.

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361 P.3d 46, 273 Or. App. 502, 2015 Ore. App. LEXIS 1077, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oil-re-refining-co-v-environmental-quality-commission-orctapp-2015.