Safe Food and Fertilizer v. Environmental Protection Agency

365 F.3d 46, 361 U.S. App. D.C. 134
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 23, 2004
Docket02-1326
StatusPublished
Cited by2 cases

This text of 365 F.3d 46 (Safe Food and Fertilizer v. Environmental Protection Agency) 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
Safe Food and Fertilizer v. Environmental Protection Agency, 365 F.3d 46, 361 U.S. App. D.C. 134 (D.C. Cir. 2004).

Opinion

STEPHEN F. WILLIAMS, Senior Circuit Judge:

In our original opinion, 350 F.3d 1263 (D.C.Cir.2003), we considered a challenge to an EPA rule that exempted certain recycled zinc fertilizer products from regulation under the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6901. The new rule, in relevant part, exempted such products from RCRA so long as their contaminant levels fell below specified limits set by EPA. EPA claimed that recycled products meeting these regulations would have environmental impacts substantially similar to those of analogous products made from virgin materials, and that therefore EPA could lawfully classify them as not being “solid waste” for RCRA purposes despite their being hazardous materials within the meaning of the statute. We upheld this so-called “identity principle” — together with market valuation and EPA-required management practices — as a valid standard for distinguishing waste from non-waste, and we further upheld the principle’s application to EPA’s chosen limits for lead, arsenic, cadmium, and mercury in exempted products.

Petitioners sought rehearing on several grounds, one of which requires discussion, and, indeed, a limited remand. That ground is the argument that our conclusions with regard to the metals in question were based on a study submitted by The Fertilizer Institute (“TFI Study”) that was not part of the record. A related aspect of this claim is the argument that even if the TFI Study or its relevant conclusions were part of the record, EPA did not rely on the study in promulgating its rule, and therefore we could not properly do so in upholding it. See SEC v. Chenery Corp., 318 U.S. 80, 87, 63 S.Ct. 454, 87 L.Ed. 626 (1943). We asked for and received a response from the EPA.

*48 After considering the parties’ submissions, we reach the following conclusions: Petitioners are correct that we relied on the TFI Study — in the limited sense of relying on its conclusions. Those conclusions, however, were in the record, so that the precise claim raised by petitioners is incorrect. Nonetheless, in our reliance on the TFI Study we may have gone farther than any express EPA language justified in equating it with an EPA study that was in the record and was expressly relied on by EPA, but which we as lay judges found ourselves unqualified to interpret. Thus our original opinion made certain connections that ought to have been made — assuming they can properly be made — by the agency. We therefore remand to EPA for a more detailed explanation of the relationship between its risk assessment study and the conclusions of the TFI Study. In all other respects the petition for rehearing is denied.

X 4s *

Petitioners appear to- be correct that the TFI Study was not in the rulemaking record, though the conclusions of that study — i.e., the risk thresholds cited by EPA in its final rule and by this court in our original opinion — clearly were. But EPA’s position that virgin fertilizers and recycled fertilizers meeting EPA’s proposed contaminant limits are “identical” in their environmental impact did not rest directly on the TFI Study. In its Notice of Proposed Rulemaking (“NPRM”), for instance, EPA articulated its rough equation of the risk threats (of fertilizers made of virgin materials and of ones made with qualifying recycled materials) without supporting citation, saying that while “contaminant levels in non-hazardous feed-stocks are slightly lower than those in hazardous feedstocks ... any potential risks posed by hazardous and non-hazardous zinc feedstock materials would be substantially similar....” 65 Fed. Reg. 70,-959 (emphasis added). EPA also said that its proposed contaminant limits were based “on contaminant levels that can be routinely and reliably achieved in ZSM [zinc sulfate monohydrate] fertilizer products,” a finding which was based on samples from representative virgin products, and EPA further claimed that lower limits would not “result in any significant gain in environmental protection.” 65 Fed. Reg. 70,969 (emphasis added). As EPA did not have the TFI Study before it at that point, its conclusion about the environmental impacts of recycled and virgin fertilizers was presumably based on EPA’s own studies.

EPA’s non-reliance on the TFI Study— and its affirmative reliance on its own studies — is made even more clear by the explanation that ■ accompanied the final rule. Responding to commenters who called for more stringent technology-based limits (based on the alleged capability of fertilizer producers to achieve such limits), EPA pointed out that “[t]he Agency’s fertilizer risk assessment indicates that the proposed limits are considerably below levels that we estimate (albeit roughly) to be safe for humans and ecosystems. Thus, the actual environmental benefit to be gained from more stringent limits would likely be negligible.” 65 Fed. Reg. 48,405/2. Similarly, in responding to comments on the NPRM, EPA noted that “[w]hile there are uncertainties in EPA’s study of fertilizer contaminant risks, we are confident in its basic conclusions, particularly since the limits are well below EPA’s thresholds for acceptable risks to human health.” EPA’s Proposed Regulations for Zinc Fertilizers Made from Recycled Hazardous Secondary Materials: Response to Comments, Docket No. 8 (undated) at 23. Thus, EPA’s conclusion that its identity principle was satisfied rested *49 not on the TFI Study, but on EPA’s own assessment, announced in the NPRM and apparently unchallenged, that recycled materials meeting EPA’s limits posed no meaningful extra risk beyond that of fertilizers from virgin materials.

We note here that the validity of EPA’s own risk assessment was potentially in play in the rulemaking- — though not on precisely the issue of EPA’s application of its identity principle. The reason that its pertinence before the agency was not on precisely that question is because that question was never posed by petitioners or any other party. But EPA invoked its risk assessment in responding to claims that it could and should have adopted more stringent technology-based limits, and it is precisely those claims to which petitioners have pointed before us in responding to EPA’s argument, see EPA Br. at 44 & n.23, that the application of the identity principle had never been attacked in the rulemaking, see Petitioners’ Reply Br. at 7 n.4. In treating petitioners’ challenge to the identity principle as properly before us, we (implicitly) extrapolated from general arguments during the comment period that the limits should have been stricter. We similarly extrapolated from EPA’s response to these comments, 67 Fed. Reg. 48,405/2, an appropriate defense of its application of the identity principle; since petitioners didn’t frame their agency-level challenge in that way, EPA’s discussion was of course not stated as a response to such a challenge.

In our original opinion the TFI Study became relevant primarily because the EPA risk assessment, and the other studies in the record upon which EPA relied, are difficult for non-expert judges to interpret. See Safe Food, 350 F.3d at 1271.

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365 F.3d 46, 361 U.S. App. D.C. 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/safe-food-and-fertilizer-v-environmental-protection-agency-cadc-2004.