United States v. General Electric Co.

986 F. Supp. 2d 79, 2013 WL 6388829, 2013 U.S. Dist. LEXIS 171575
CourtDistrict Court, D. Massachusetts
DecidedDecember 5, 2013
DocketCivil Action Nos. 99-30225-MAP, 99-30226-MAP, 99-30227-MAP
StatusPublished

This text of 986 F. Supp. 2d 79 (United States v. General Electric Co.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. General Electric Co., 986 F. Supp. 2d 79, 2013 WL 6388829, 2013 U.S. Dist. LEXIS 171575 (D. Mass. 2013).

Opinion

MEMORANDUM AND ORDER WITH REGARD TO DEFENDANT’S MOTION FOR JUDICIAL REVIEW OF UNITED STATES ENVIRONMENTAL PROTECTION AGENCY’S DECISION IN DISPUTE REGARDING COST REIMBURSEMENT FOR THE GEPITTSFIELD/ HOUSATONIC RIVER SITE (Document No. 188)

NEIMAN, United States Magistrate Judge.

Presently before the court is a cost-reimbursement dispute between Defendant General Electric (“GE”) and Plaintiff United States of America, more particularly the Environmental Protection Agency (“EPA”), arising out of a Consent Decree approved by District Judge Michael A. Ponsor on October 27, 2000. The Consent Decree was a product of a complaint filed by the United States on behalf of the EPA, the Department of the Interior, and the National Oceanic and Atmospheric Administration pursuant to Section 106 and 107 of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 U.S.C. §§ 9606 and 9607, Sections 3008 and 7003 of the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. §§ 6928 and 6973, and other [82]*82statutes. The Consent Decree governs the environmental investigation and cleanup of a site located in Pittsfield, Massachusetts, which extends downstream on the Housatonic River through western Massachusetts and Connecticut. For most areas of the site, cleanup activities are either completed or will be completed soon. However, the remedy for the “Rest of River” (“ROR”), defined as

the Housatonic River and its sediments and floodplain areas downstream of the confluence of the East and West Branches of the Housatonic River, including backwaters, except for the Actual/Potential Lawns, to the extent that such areas are areas to which Waste Materials that originated at the GE Plant Area have migrated and which are being investigated and/or remediated pursuant to this Consent Decree

(Consent Decree (“CD”) IV, Definitions), has not been selected. At the center of the instant dispute are costs associated with the EPA’s activities leading up to a formal selection of a remedy for the ROR.

The Consent Decree includes several cost-reimbursement provisions, three of which are presently at issue, namely, those which allow the EPA to recover for “Future Response Costs,” “Oversight Costs,” and “Capped Response Costs.” The EPA submitted a bill to GE for costs on January 11, 2012, claiming reimbursement under the “Future Response Costs” provision. All of the costs were incurred in fiscal year 2011. GE contests $1,192,533 of the $1,239,108 costs billed as Future Response Costs, arguing in the main that they actually fall into either the Capped Response Costs category or the Oversight Costs category, which is also capped.

The case as postured raises three basic issues: (1) the appropriate standard of review; (2) whether the EPA is barred from recovery because the agency failed to follow the Consent Decree’s sequential process for the selection of an ROR remedy; and (3) if not barred from recovery of these costs, whether and to what extent the costs billed by the EPA are properly classified under the Consent Decree as recoverable Future Response Costs. The parties have consented to this court’s jurisdiction for the resolution of this particular dispute pursuant to 28 U.S.C. § 636(c) and Fed. R. Crv. P. 73. (See Document No. 205.) For the reasons which follow, the court will find certain of the billed costs reimbursable by GE as Future Response Costs.

I. Background

A. Consent Decree Process for Development of ROR Plan

Generally speaking, the Consent Decree outlines a process whereby GE takes an action, the EPA approves the action, and GE moves on to the next step in the process of developing an ROR remedy. (See CD ¶22.) In applicable part, the Consent Decree requires GE to develop and submit to the EPA a Corrective Measures Study (“CMS”) Proposal in accordance with GE’s RCRA permit. (CD ¶ 22.j.) The RCRA permit provides that

[i]n the CMS Proposal, [GE] shall identify the corrective measures it proposes to study and provide a justification for the selection of the corrective measures proposed for study, including a description of the methodology proposed to be used in evaluating the corrective measures. The justification shall consider the ability of such corrective measures to achieve the [interim media-protection goals].

(RCRA Permit II.E.) After GE submits the CMS Proposal, the RCRA permit continues, the “EPA will either approve, conditionally approve or disapprove the Proposal.” (RCRA Permit II.F.) If the EPA [83]*83approves the CMS Proposal, the Consent Decree requires GE to carry out the CMS as well as develop and submit a CMS Report. (CD ¶ 22.k.)

The CMS Report is to provide information on each alternative corrective measure approved for evaluation in the CMS Proposal, addressing the following: how the alternative would provide human health and environmental protection, reduce or minimize possible releases, and meet applicable or relevant and appropriate state and federal requirements. (RCRA Permit II.G.l.a-c.) With respect to each alternative, the CMS Report must also address the following: long-term reliability and effectiveness, attainment of interim media protection goals, reduction of toxicity, mobility, or volume of wastes, short-term effectiveness, implementability, and costs. (RCRA Permit II.G.2.a-f.) Finally, the CMS Report must conclude “with a recommendation as to which corrective measure or combination of corrective measures, in [GE’s] opinion is best suited to meet the general standards” and criteria listed above. (RCRA Permit II.G.3.)

The Consent Decree also provides for formal public notice and comment, as follows:

22.n. Upon satisfactory completion of the CMS Report in accordance with the Reissued RCRA Permit, EPA will issue a Statement of Basis and a draft modification to the Reissued RCRA Permit, which will set forth the proposed Remedial Action for the Rest of the River and [Operation and Maintenance], to be implemented by [GE] pursuant to CERCLA and this Consent Decree. EPA will propose this draft permit modification pursuant to the Reissued RCRA Permit and EPA’s regulations on RCRA permit modifications (40 C.F.R. § 270.41 and Part 124), including the provisions requiring public notice and an opportunity for public comment on the draft permit modification.
22.o. Following the close of the public comment period, EPA will notify [GE] of its intended final decision on the modification of the Reissued RCRA Permit. [GE] shall have the right, within 30 days of such notification, to invoke administrative dispute resolution pursuant to Paragraph 135 of Section XXIV (Dispute Resolution) of this Consent Decree with respect to such notification.

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Bluebook (online)
986 F. Supp. 2d 79, 2013 WL 6388829, 2013 U.S. Dist. LEXIS 171575, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-general-electric-co-mad-2013.