United States v. W.R. Grace & Co. Kootenai Development, Corporation W.R. Grace & Co. Conn.

429 F.3d 1224, 24 A.L.R. Fed. 2d 631, 35 Envtl. L. Rep. (Envtl. Law Inst.) 20245, 61 ERC (BNA) 1865, 2005 U.S. App. LEXIS 26155, 2005 WL 3216827
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 1, 2005
Docket03-35924
StatusPublished
Cited by61 cases

This text of 429 F.3d 1224 (United States v. W.R. Grace & Co. Kootenai Development, Corporation W.R. Grace & Co. Conn.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. W.R. Grace & Co. Kootenai Development, Corporation W.R. Grace & Co. Conn., 429 F.3d 1224, 24 A.L.R. Fed. 2d 631, 35 Envtl. L. Rep. (Envtl. Law Inst.) 20245, 61 ERC (BNA) 1865, 2005 U.S. App. LEXIS 26155, 2005 WL 3216827 (9th Cir. 2005).

Opinions

McKEOWN, Circuit Judge:

Libby, Montana, sits sixty-five miles south of the Canadian border. The seemingly rustic and picturesque environment of this area masks a troubling history — the community has been plagued with asbestos-related contamination. In 1999, the Environmental Protection Agency (“EPA”) was called in to address disturbing health reports due to asbestos-related contamination. We must decide whether, in responding to this threat, the EPA exceeded the bounds of its authority to conduct cleanup activities under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 U.S.C. § 9601 et seq. We hold that it did not.

Defendants W.R. Grace & Co.,1 Kootenai Development Corporation, and W.R. Grace & Co.-Conn. (collectively, “Grace”) do not dispute that they are financially obligated under CERCLA to assist with the cleanup of asbestos originating from their former mining and processing operations near Libby.2 Instead, Grace contests the EPA’s characterization of the cleanup as a removal action rather than a remedial action under CERCLA. If the cleanup is a remedial action, which is often characterized as a permanent cleanup, then Grace argues that the EPA did not fulfill the regulatory requirements for remedial actions. For example, a remedial action requires certain analysis of the costs and effectiveness of the remediation and also requires inclusion on the National Priority List. See 40 C.F.R. §§ 300.425(b)(1), 300.430(e)(7). In contrast, the regulatory requirements for removal actions, which provide the EPA with substantial flexibility to tailor prompt and effective responses to immediate threats to human health and the environment, are considerably relaxed.

Grace argues that the EPA circumvented the regulatory safeguards by conducting a remedial action under the guise of a removal, thereby giving the EPA free rein to conduct what Grace styles as “the quintessential remedial action” under the less-restrictive requirements applied to removals. Grace presents this as a legal question: Is the EPA’s characterization of its activities in Libby as a removal action correct as a matter of law?

Grace further contends that even if the action is appropriately classified as a removal action, the district court erred in exempting the action from CERCLA’s general 12-month, $2 million cap for removal actions and in granting the EPA over $54 million in reimbursement plus a declaratory judgment for future costs. Finally, Grace disputes the accounting methods used to calculate the EPA’s indirect costs.

The situation confronting the EPA in Libby is truly extraordinary. This cleanup site is not a remote, abandoned mine. Rather, the population of Libby and nearby communities, which the EPA estimates at about 12,000, faces ongoing, pervasive exposure to asbestos particles being released through documented exposure pathways. We cannot escape the fact that [1227]*1227people are sick and dying as a result of this continuing exposure. Confronted with this information, the EPA determined on the basis of its professional judgment, and in accord with its administrative interpretation of the scope of removal actions, that the situation warranted an immediate, aggressive response to abate the public health threat.

Although we diverge from the district court’s reasoning in some respects, we reach the same ultimate conclusion: The EPA’s cleanup in Libby was a removal action that was exempt from the temporal and monetary cap. In light of the EPA’s expertise in this area, we owe considerable deference, albeit not necessarily full Chevron deference, to its characterization of the cleanup activities as a removal action. See Chevron U.S.A., Inc. v. Natural Res. Def. Council, 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). We therefore affirm the judgment of the district court.

BACKGROUND

The outcome of this case is controlled by our interpretation of key provisions of CERCLA, a comprehensive statutory scheme to respond to environmental threats, obtain compensation from those responsible for the polluting activities, and assign liability to responsible parties. See Pub.L. No. 96-510, 94 Stat. 2767 (1980). Before applying CERCLA to the case at hand, we begin with a brief review of this statute as well as the background on the hazards afflicting Libby.

I. CERCLA

A key component of CERCLA was the establishment of a trust fund, commonly known as “Superfund,” for use when responding to the release or threat of release of hazardous substances into the environment. See CERCLA, Subtitle B-Establishment of Hazardous Substance Response Trust Fund § 221, 94 Stat. at 2801-02; see also Superfund Amendments and Reauthorization Act of 1986, Pub.L. No. 99-499, 100 Stat. 1613 (1986). Today, Superfund expenditures are directed by the provisions of CERCLA and the National Oil and Hazardous Substances Pollution Contingency Plan (“National Contingency Plan”), 40 C.F.R. pt. 300.3

CERCLA and the National Contingency Plan divide response actions into two broad categories: removal actions and remedial actions. See 42 U.S.C. § 9601(25). Removal actions4 are typically described [1228]*1228as time-sensitive responses to public health threats for which the EPA is granted considerable leeway in structuring the cleanup. See, e.g., Minnesota v. Kalman W. Abrams Metals, Inc., 155 F.3d 1019, 1024 (8th Cir.1998) (describing “removal actions” as “those taken to counter imminent and substantial threats to public health and welfare”). Superfund-financed removal actions generally are required to “be terminated after $2 million has been obligated for the action or 12 months have elapsed from the date removal activities begin on-site.” 40 C.F.R. § 300.415(b)(5). These limitations are not, however, inviolate. The EPA5 may exceed this cap if it determines one of two exemptions applies:

(i) There is an immediate risk to public health or welfare of the United States or the environment; continued response actions are immediately required to prevent, limit, or mitigate an emergency; and such assistance will not otherwise be provided on a timely basis; or (ii) Continued response action is otherwise appropriate and consistent with the remedial action to be taken.

40 C.F.R. § 300.415(b)(5); see also 42 U.S.C. § 9604(c)(1).

Remedial actions,6 on the other hand, are often described as permanent remedies to threats for which an urgent response is not warranted. See, e.g., Pub. Serv. Co. of Colo. v. Gates Rubber Co.,

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429 F.3d 1224, 24 A.L.R. Fed. 2d 631, 35 Envtl. L. Rep. (Envtl. Law Inst.) 20245, 61 ERC (BNA) 1865, 2005 U.S. App. LEXIS 26155, 2005 WL 3216827, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-wr-grace-co-kootenai-development-corporation-wr-ca9-2005.