United States v. Grand Rapids, Michigan

166 F. Supp. 2d 1213, 2000 U.S. Dist. LEXIS 21508, 2000 WL 33529735
CourtDistrict Court, W.D. Michigan
DecidedAugust 11, 2000
Docket1:99CV388
StatusPublished
Cited by4 cases

This text of 166 F. Supp. 2d 1213 (United States v. Grand Rapids, Michigan) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Grand Rapids, Michigan, 166 F. Supp. 2d 1213, 2000 U.S. Dist. LEXIS 21508, 2000 WL 33529735 (W.D. Mich. 2000).

Opinion

*1217 OPINION

ROBERT HOLMES BELL, District Judge.

The United States of America, on behalf of the United States Environmental Protection Agency (“EPA”), filed this action under sections 106 and 107 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), 42 U.S.C. §§ 9606 & 9607, to address the environmental cleanup of the Butterworth No. 2 Landfill Superfund Site (“Site”) in Grand Rapids, Michigan. On March 30, 2000, the EPA filed a motion for entry of the proposed Consent Decree that was lodged with the Court on May 21, 1999. The Proposed Consent Decree has been signed by fifty-three entities.

On April 26, 2000, this Court granted eighteen non-participating entities who face potential liability for environmental cleanup of the Site leave to file objections to entry of the Consent Decree. The In-tervenors 1 object to the Proposed Consent Decree as arbitrary, capricious and not in the public interest, as well as being contrary to CERCLA and EPA administrative settlement policies.

I.

The Site, comprising 180 acres, is a former landfill operated by the City of Grand Rapids, for both residential and industrial waste. The principle contaminants at the Site include arsenic, beryllium, chromium, polynuclear aromatic hydrocarbons (“PAHs”), polychlorinated biphenyls (“PCBs”), 1,1-dichloroethane, and vinyl chloride. The EPA placed the Site on the National Priorities List in 1982. In 1986 five Potentially Responsible Parties (“PRPs”) entered into a Consent Decree with the EPA to conduct a Remedial Investigation and Feasibility Study. In 1993 the same five PRPs drafted the Remedial Design for the implementation of the remedial action embodied in the EPA’s 1992 Record of Decision (“ROD”). The Remedial Action (“RA”) was amended in 1998.

In January and April of 1998 the EPA sent out special notice letters to eighty-one PRPs, including fourteen of the eighteen Intervenors, inviting them to perform the Remedial Action at the Site. The original participating PRPs invited all the PRPs who received the special notice letter to join together to conduct a voluntary, nonbinding allocation, and to effect a settlement of potential liability with the EPA and among PRPs.

Intervenors declined to join the PRP Group, choosing instead to negotiate separately with the EPA. They contended that their contribution to the hazardous substances to the Site was de minimis and that they should accordingly be afforded a special discounted settlement under CERCLA § 122(g). The EPA declined to offer a de minimis settlement to the Inter-venors or to any other PRPs.

The PRPs who signed the Proposed Consent Decree include fourteen Settling Work Defendants who have agreed to set- *1218 tie their potential liability by committing to perform the cleanup specified in the consent decree, and thirty-nine Settling Cash Defendants who have agreed to settle their potential liability by paying cash rather than doing the work. The cost of cleaning up the Site is currently estimated at $31 million. The fifty-three Settling Defendants have already incurred $11 million in past costs, and under the Consent Decree they have agreed to incur approximately- $18 million of the estimated $20 million remaining costs of the remedy. The $2 million carved-out portion is to be sought from non-settling parties. The $29 million in costs the Settling Defendants have agreed to pay represents approximately 91.5% of total Site costs. If the non-settling parties do not cover the $2 million carved-out portion, the settling parties will cover it, and then seek contribution from the non-settling parties.

Notice of the Proposed Settlement was published in the Federal Register. The public comment period expired on July 16, 1999. The government received one comment on behalf of eighteen non-settling parties. On March 29, 2000, the United States moved for entry of the Consent Decree. The eighteen non-settling parties were granted permission to intervene, and they have filed objections to entry of the Consent Decree.

II.

Congress has determined that the congressional purpose of protecting and preserving public health and the environment is better served through settlements which provide funds to enhance environmental protection, than through the expenditure of limited resources on protracted litigation. State of Ariz. v. Motorola, Inc., 139 F.R.D. 141, 145 (D.Ariz.1991) (citing In re Acushnet River & New Bedford Harbor: Proceedings re Alleged PCB Pollution, 712 F.Supp. 1019, 1028-29 (D.Mass.1989)). Accordingly, Congress has specifically authorized the EPA to enter into consent decrees with PRPs to perform any response action.

Whenever practicable and in the public interest, as determined by the President, the President shall act to facilitate agreements under this section that are in the public interest and consistent with the National Contingency Plan in order to expedite effective remedial actions and minimize litigation.

42 U.S.C. § 9622(a). EPA’s decision to enter into a consent decree represents a selection by the President of a remedy as authorized by § 9604(c)(4). United States v. Akzo Coatings of America, Inc., 949 F.2d 1409, 1424 (6th Cir.1991). Accordingly, judicial review is governed by § 9613®. Review is limited to the administrative record, and the court is not permitted to engage in a de novo review of the evidence. 42 U.S.C. § 9613(j)(l); Akzo, 949 F.2d at 1424. This Court’s role, “as the CERCLA statute makes clear, is one of review on the administrative record, searching for errors of procedure and for glaring omissions or mistakes which indicate that EPA has acted arbitrarily and capriciously.” Akzo, 949 F.2d at 1424.

CERCLA requires that a proposed consent decree be lodged in the district court. 42 U.S.C. § 9622(d)(1)(A). The decree cannot be entered unless the court first approves it. “The requirement of court approval is intended to help insure that the proposed settlement will serve the public interest by facilitating restoration of the environment and by adequately compensating the taxpayers for the cleanup costs that will be incurred.” United States v. Davis, 11 F.Supp.2d 183, 188 (D.R.I.1998).

Consent decrees are cloaked with a presumption of validity. The general policy of the law to support voluntary settlements is enhanced where the EPA enters *1219

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166 F. Supp. 2d 1213, 2000 U.S. Dist. LEXIS 21508, 2000 WL 33529735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-grand-rapids-michigan-miwd-2000.