Shell Oil Company v. Environmental Protection Agency

950 F.2d 741, 292 U.S. App. D.C. 332
CourtCourt of Appeals for the D.C. Circuit
DecidedFebruary 12, 1992
Docket80-1532, 80-1570, 80-1572, 80-1869, 80-1881A, 80-1888, 80-1890, 80-1909A, 80-1938, 80-1955A, 80-1976, 80-1978A, 80-1987A, 80-1988, 80-1998 and 81-1452
StatusPublished
Cited by106 cases

This text of 950 F.2d 741 (Shell Oil Company 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
Shell Oil Company v. Environmental Protection Agency, 950 F.2d 741, 292 U.S. App. D.C. 332 (D.C. Cir. 1992).

Opinion

Opinion PER CURIAM.

PER CURIAM:

In these consolidated cases, petitioners challenge both the substance of several rules promulgated by the Environmental Protection Agency pursuant to the Resource Conservation and Recovery Act of 1976 and its compliance with the Administrative Procedure Act’s rulemaking requirements.

Consolidated petitioners 1 challenge two rules that categorize substances as hazard *745 ous wastes until a contrary showing has been made: the “mixture” rule, which classifies as a hazardous waste any mixture of a “listed” hazardous waste with any other solid waste, and the “derived-from” rule, which so classifies any residue derived from the treatment of hazardous waste. They argue that the EPA failed to provide adequate notice and opportunity for comment when it promulgated the mixture and derived-from rules, and that the rules exceed the EPA’s statutory authority.

Three petitioners present separate challenges to other rules included in the same rulemaking. In the first, the American Mining Congress asserts that the EPA exceeded its statutory authority and failed to provide notice and opportunity to comment in defining “treatment” to include processes designed to recover valuable materials from the recycling of solid wastes. Second, the American Petroleum Institute attacks the EPA’s requirement of “leachate monitoring” at land treatment facilities for failure to provide notice and opportunity to comment. (In land treatment, waste is placed upon land or incorporated into the surface soil. Leachate monitoring tests water that has passed through the soil to assure that hazardous wastes or their constituents are not migrating through it.) Finally, the Environmental Defense Fund challenges the EPA’s “permit-shield” provision, a regulation that, with some exceptions, exempts a facility from enforcement proceedings for statutory violations if it is in compliance with its permit conditions.

We agree with petitioners that the EPA failed to give sufficient notice and opportunity for comment in promulgating the “mixture” and “derived-from” rules and the leachate monitoring requirement. We therefore remand the rules to the Administrator. We conclude that the regulatory definition of “treatment” does not comport with the statutory definition. The regulation of resource recovery, however, falls within the EPA’s broad authority under Subtitle C to regulate hazardous waste management. Therefore, we deny the American Mining Congress's petition. We also reject its contention that the EPA failed to provide adequate notice of the regulation of resource recovery. As for the permit-shield provision, all parties agree that it cannot trump the citizen’s statutory right to sue. As applied to the Agency, however, the regulation lies well within the limits of the EPA’s enforcement discretion.

I. BACKGROUND

The EPA promulgated the disputed rules in order to implement the Resource Conservation and Recovery Act (“RCRA”), Pub.L. No. 94-580, 90 Stat. 2795 (1976) (codified as amended at 42 U.S.C. §§ 6901-87 (1988)). 2 RCRA created a “cradle-to-grave” system for tracking wastes from their generation to disposal. The statute consists of two main parts: one governs the management of non-hazardous solid waste; the other, hazardous waste. See American Mining Congress v. EPA, 824 F.2d 1177, 1179 (D.C.Cir.1987) (“AMC I”).

As enacted, Subtitle C of RCRA required the EPA to establish a comprehensive national system for safely treating, storing, and disposing of hazardous wastes. It defined “hazardous waste,” in part, as a “solid waste” which may “pose a substantial present or potential hazard to human health or the environment when improperly treated, stored, transported, or disposed of, or otherwise managed.” 42 U.S.C. § 6903(5) (1976). It gave the EPA until April 21, 1978 to develop and promulgate criteria for identifying characteristics of hazardous waste and to list particular wastes as hazardous. See id. § 6921(a), (b). It further required the EPA to promulgate regulations “as may be necessary to protect human health and the environment” respecting the practices of generators, transporters, and those who own or operate hazardous waste treatment, storage, or disposal facilities. Id. §§ 6922- *746 6924. RCRA prohibited treatment, storage, or disposal of hazardous waste without a permit and required the EPA to promulgate standards governing permits for facilities performing such functions. Id. § 6925.

On February 17, 1977, the EPA published a Notice of Intent to Develop Rulemak-ing, 42 Fed.Reg. 9,803 (1977); and on May 2, 1977, it published an Advance Notice of Proposed Rulemaking, 42 Fed.Reg. 22,332 (1977), which set forth detailed questions on each of the subsections of Subtitle C. In addition, it circulated for comment several drafts of regulations, met with experts and representatives of interested groups, and held public hearings. This process culminated in the publication, on December 18, 1978, of proposed regulations covering most of the statutorily required standards. See 43 Fed.Reg. 58,946-59,022 (1978).

This proposal elicited voluminous comment, and the EPA held five large public hearings. The EPA failed to issue final regulations by the April 1978 statutory deadline; several parties sued the Agency to compel it to do so. Although the district court initially ordered the EPA to promulgate the regulations by December 31, 1979, the complexity of the task led the court to modify the order to require, instead, that the EPA use its best efforts to issue them by April 1980.

The EPA published its “[revisions to final rule and interim final rule” on May 19, 1980. 45 Fed.Reg. 33,066 (1980). It noted that time pressures had had an effect on the new regulations: Because of limited information, the Agency was unable to avoid underregulation and overregulation. It complained that the demands of developing a national, comprehensive system of hazardous-waste management made precise tailoring to individual cases impossible. See id. 33,088.

More than fifty petitions were brought to challenge these final rules. In 1982, we deferred briefing on these challenges to allow the parties to pursue settlement discussions and ordered the EPA to file monthly status reports. We did not stay the rules, however, which have remained in effect. Most of the issues have been resolved by settlement, by subsequent statutory or regulatory revision, or by the failure of petitioners to pursue them. The issues presented here are those that the EPA identified in January 1987 as unlikely to be settled, and that were subject to the briefing schedule established by this court on June 12, 1989.

Consolidated petitioners assert that the regulations proposed on December 18,1978 did not foreshadow the inclusion of the mixture and derived-from rules in the final rule’s definition of “hazardous waste.” See 45 Fed.Reg. 33,119-20 (40 C.F.R, § 261.3).

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950 F.2d 741, 292 U.S. App. D.C. 332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shell-oil-company-v-environmental-protection-agency-cadc-1992.