Sierra Club v. Environmental Protection Agency

755 F.3d 968, 410 U.S. App. D.C. 326, 44 Envtl. L. Rep. (Envtl. Law Inst.) 20142, 2014 WL 2895930, 78 ERC (BNA) 2095, 2014 U.S. App. LEXIS 12116
Court of Appeals for the D.C. Circuit·Decided June 27, 2014·No. 08-1144, 08-1145, 12-1295·Published·Cited by 36 cases

Opinion

Opinion for the Court by Circuit Judge MILLETT.

MILLETT, Circuit Judge:

In 2008, the Environmental Protection Agency promulgated a rule that exempts from regulation under the Resource Conservation and Recovery Act (RCRA), 42 U.S.C. §§ 6901 et seq., certain hazardous residuals left over from the petroleum refining process. See 73 Fed.Reg. 57 (Jan. 2, 2008). That exemption, referred to as the Gasification Exclusion Rule, applies when those residual materials are inserted into gasification units to produce “synthesis gas,” which is a type of fuel that may be burned for the recovery of energy.

Petitioners Sierra Club, Louisiana Environmental Action Network (Louisiana Network), and Environmental Technology Council petitioned this court for review of the Gasification Exclusion Rule, arguing that it violates RCRA’s plain language requiring the regulation of hazardous wastes used as fuel, 42 U.S.C. § 6924(q), and that the Rule’s promulgation violated the procedural and substantive requirements of the Administrative Procedure Act, 5 U.S.C. §§ 551 et seq. We hold that the regulation violates the plain language of RCRA and, for that reason, is vacated.

I

Statutory Framework

The Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., is the primary federal statute addressing the management of solid and hazardous waste. It prescribes a nationwide, “cradle-to-grave” regulatory framework governing the “safe treatment, storage and disposal of hazardous waste,” United Technologies Corp. v. EPA, 821 F.2d 714, 716 (D.C.Cir.1987), and charges the EPA with promulgating regulations setting the necessary standards to achieve those goals, 42 U.S.C. § 6922(a).

While the statute’s definitional provisions can be technical and detailed, as relevant here, RCRA defines “hazardous waste” as “solid waste” that poses a danger to human or environmental health. 42 U.S.C. § 6903(5). “Solid waste,” in turn, is defined as garbage, refuse, sludge, “and other discarded material.” Id. § 6903(27).

In Section 6921, Congress mandated that the EPA promulgate regulations identifying the hazardous wastes that are subject to RCRA regulation, “taking into account toxicity, persistence, and degrada-bility in nature, potential for accumulation *971 in tissue, and other related factors such as flammability, corrosiveness, and other hazardous characteristics.” 42 U.S.C. §§ 6921(a)-(b).

Initially, the EPA declined to regulate hazardous materials that were burned as fuel or used to produce fuel, reasoning that those uses as fuel meant the materials were not “discarded,” and thus they were not regulable as waste. See 40 C.F.R. § 261.2(c)(2) (1983); Horsehead Resource Dev. Co. v. Browner, 16 F.3d 1246, 1253 (D.C.Cir.1994) (citing 45 Fed.Reg. 33,084, 33,092-33,094, 33,120 (May 19, 1980)); see also American Mining Congress v. EPA, 824 F.2d 1177, 1189 (D.C.Cir.1987) (AMC I).

To redress that “major deficiency” in the EPA’s administration of RCRA, S.Rep. No. 284, 98th Cong., 1st Sess. 36 (1983); H.R.Rep. No. 198, 98th Cong., 1st Sess. 39 (1983), Congress amended the statute in 1984 to add Section 6924(q). That Section specifically addresses the regulation of “Hazardous waste used as fuel.” 42 U.S.C. § 6924(q). Specifically, Section 6924(q) directs the EPA to establish regulatory standards, as “necessary to protect human health and the environment,” to govern facilities that:

(A) “produce a fuel” from “any hazardous waste identified or listed under section 6921 of this title,” whether alone or as a component combined with other materials;
(B) “burn, for purposes of energy recovery” a fuel produced under subsection (A) or containing any other hazardous waste component in fuel that is listed under Section 6921; or
(C) “distribute[ ] or marketf ] any fuel” produced under subsection (A) or containing any other hazardous waste component in fuel that is listed under Section 6921.

42 U.S.C. § 6924(q)(l). Congress added that, for purposes of this subsection, “the term ‘hazardous waste listed under section 6921’ ” shall “include[ ] any commercial chemical product” that “is listed under section 6921 of this title” and that, “in lieu of its original intended use, is (i) produced for use as (or as a component of) a fuel, (ii) distributed for use as a fuel, or (iii) burned as a fuel.” Id.

Regulatory Background

Eleven years after Congress adopted Section 6924(q), the EPA proposed a rule that would exclude from RCRA regulation those petroleum refinery waste products that are reinserted into specified petroleum refining processes. See 60 Fed.Reg. 57,747 (Nov. 20,1995). The EPA reasoned that such materials do not constitute “waste” because they are recycled as part of an ongoing petroleum production process, and thus are never “discarded” within the meaning of RCRA’s definition of hazardous solid waste, 42 U.S.C. § 6903(5) & (27). See 60 Fed.Reg. at 57,752-57,754. Among the refinery processes the EPA sought to exclude were distillation, catalytic cracking, fractionation, and thermal cracking (also known as coking). See id. at 57,753.

Three weeks before the final version of that regulation was to be issued, the EPA published a Notice of Data Availability requesting comment on whether “gasification” should be added to the list of excluded processes. See 63 Fed.Reg. 38,139 (July 15, 1998). Gasification is a process that transforms oil-bearing, residual materials separated out by the petroleum refining process into a distinct form of fuel known as synthesis gas or “syngas,” which can be used for energy recovery. See 63 Fed.Reg. at 38,141. Specifically, while syngas can be used to produce other chemicals, it can also be burned as a fuel to produce electricity or steam. See id.

When the EPA published the final rule three weeks later, however, gasification *972 was not included as one of the exempt processes.

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Sierra Club v. Environmental Protection Agency, 755 F.3d 968, 410 U.S. App. D.C. 326, 44 Envtl. L. Rep. (Envtl. Law Inst.) 20142, 2014 WL 2895930, 78 ERC (BNA) 2095, 2014 U.S. App. LEXIS 12116 (D.C. Cir. 2014).

755 F.3d 968 (Sierra Club v. Environmental Protection Agency) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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