Harmon v. Browner

• Decision Date: 22 April 1999
• Docket Number: No. N,N
• Parties: (8th Cir. 1999) Harmon Industries, Inc.,Appellee, v. Carol M. Browner, in her official capacity as Administrator of the United States Environmental Protection Agency; United States of America; United StatesEnvironmental Protection Agency,Appellants. Pacific Legal Foundation; Michigan Manufacturers Association; Mississippi Manufacturers Association; Illinois Manufacturers Association; South Carolina Chambers of Commerce; Environmental Federation of Oklahoma; Arkansas State Chamber of Commerce; Associated Industries of Arkansas, Inc.; Wisconsin Manufacturers and Commerce; The Texas Natural Resource Conservation Commission; American Forest & Paper Association; American Iron & Steel Institute; American Petroleum Institute; Chamber of Commerce of the United States; Chemical Manufacturers Association; Corporate Environmental Enforcement Council; Commercial Affairs Committee of the Hazardous Waste Action Coalition; National Association of Manufacturers; National Mining Association; National Petrochemical & Refiners Association; Rubber Manufacturers Association; Utility Solid Waste Activities Group; Washington Legal Foundation; Missouri Chamber of Commerce; Associated Industries of Missouri, Amici on Behalf of Appellee.o. 98-3775 Submitted:
• Court: U.S. Court of Appeals — Eighth Circuit

Page 894

191 F.3d 894 (8th Cir. 1999)

Harmon Industries, Inc.,Appellee, v. Carol M. Browner, in her official capacity as Administrator of the United States Environmental Protection Agency; United States of America; United StatesEnvironmental Protection Agency,Appellants.

Pacific Legal Foundation; Michigan Manufacturers Association; Mississippi Manufacturers Association; Illinois Manufacturers Association; South Carolina Chambers of Commerce; Environmental Federation of Oklahoma; Arkansas State Chamber of Commerce; Associated Industries of Arkansas, Inc.; Wisconsin Manufacturers and Commerce; The Texas Natural Resource Conservation Commission; American Forest & Paper Association; American Iron & Steel Institute; American Petroleum Institute; Chamber of Commerce of the United States; Chemical Manufacturers Association; Corporate Environmental Enforcement Council; Commercial Affairs Committee of the Hazardous Waste Action Coalition; National Association of Manufacturers; National Mining Association; National Petrochemical & Refiners Association; Rubber Manufacturers Association; Utility Solid Waste Activities Group; Washington Legal Foundation; Missouri Chamber of Commerce; Associated Industries of Missouri, Amici on Behalf of Appellee.No.

No. 98-3775

United States Court of Appeals FOR THE EIGHTH CIRCUIT

Submitted: April 22, 1999

Filed: September 16, 1999

Appeal from the United States District Court for the Western District of Missouri. [Copyrighted Material Omitted] Before BEAM and HANSEN, Circuit Judges, and MOODY,¹ District Judge.

HANSEN, Circuit Judge.

Harmon Industries, Inc., (Harmon) filed this action pursuant to the Administrative Procedure Act, 5 U.S.C. 706 (1994), seeking judicial review of a final decision of the United States Environmental Protection Agency (EPA). The district court ² granted summary judgment in favor of Harmon and reversed the decision of the EPA. The EPA appeals. We affirm.

I. FACTS AND PROCEDURAL BACKGROUND

Harmon Industries operates a plant in Grain Valley, Missouri, which it utilizes to assemble circuit boards for railroad control and safety equipment. In November 1987, Harmon's personnel manager discovered that maintenance workers at Harmon routinely discarded volatile solvent residue behind Harmon's Grain Valley plant. This practice apparently began in 1973 and continued until November 1987. Harmon's management was unaware of its employees' practices until the personnel manager filed his report in November 1987. Following the report, Harmon ceased its disposal activities and voluntarily contacted the Missouri Department of Natural Resources (MDNR). The MDNR investigated and concluded that Harmon's past disposal practices did not pose a threat to either human health or the environment. The MDNR and Harmon created a plan whereby Harmon would clean up the disposal area. Harmon implemented the clean up plan. While Harmon was cooperating with the MDNR, the EPA initiated an administrative enforcement action against Harmon in which the federal agency sought $2,343,706 in penalties. Meanwhile, Harmon and the MDNR continued to establish a voluntary compliance plan. In harmonizing the details of the planHarmon asked the MDNR not to impose civil penalties. Harmon based its request in part on the fact that it voluntarily self-reported the environmental violations and cooperated fully with the MDNR.

On March 5, 1993, while the EPA's administrative enforcement action was pending, a Missouri state court judge approved a consent decree entered into by the MDNR and Harmon. In the decree, MDNR acknowledged full accord and satisfaction and released Harmon from any claim for monetary penalties. MDNR based its decision to release Harmon on the fact that the company promptly self-reported its violation and cooperated in all aspects of the investigation. After the filing of the consent decree, Harmon litigated the EPA claim before an administrative law judge (ALJ). The ALJ found that a civil penalty against Harmon was appropriate in this case. The ALJ rejected the EPA's request for a penalty in excess of $2 million but the ALJ did impose a civil fine of $586,716 against Harmon. A three-person Environmental Appeals Board panel affirmed the ALJ's monetary penalty. Harmon filed a complaint challenging the EPA's decision in federal district court on June 6, 1997. In its August 25, 1998, summary judgment order, the district court found that the EPA's decision to impose civil penalties violated the Resource Conservation and Recovery Act and contravened principles of res judicata. See Harmon Indus., Inc. v. Browner, 19 F. Supp.2d 988 (W.D. Mo. 1998). The EPA appeals to this court.³

II. DISCUSSION

A. The Permissibility of Overfiling.

When reviewing a federal agency's interpretation of a federal statute, a federal court must defer to the agency's interpretation only if it finds that the agency's interpretation is consistent with the plain language of the statute or represents a reasonable interpretation of an ambiguous statute. See Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, 842-45 (1984). We review de novo a district court's findings and conclusions regarding the correctness of an agency's statutory interpretations. See Moore v. Custis, 736 F.2d 1260, 1262 (8th Cir.1984).

The Resource Conservation and Recovery Act (RCRA), 42 U.S.C. 6901- 6992K (1994), permits states to apply to the EPA for authorization to administer and enforce a hazardous waste program. See 42 U.S.C. 6926(b). If authorization is granted, the state's program then operates "in lieu of" the federal government's hazardous waste program. Id. The EPA authorization also allows states to issue and enforce permits for the treatment, storage, and disposal of hazardous wastes. Id. "Any action taken by a State under a hazardous waste program authorized under [the RCRA] [has] the same force and effect as action taken by the [EPA] under this subchapter." 42 U.S.C. 6926(d). Once authorization is granted by the EPA, it cannot be rescinded unless the EPA finds that (1) the state program is not equivalent to the federal program, (2) the state program is not consistent with federal or state programs in other states, or (3) the state program is failing to provide adequate enforcement of compliance in accordance with the requirements of federal law. See 42 U.S.C. 6926(b). Before withdrawing a state's authorization to administer a hazardous waste program, the EPA must hold a public hearing and allow the state a reasonable period of time to correct the perceived deficiency. See 42 U.S.C. 6926(e).

Missouri, like many other states, is authorized to administer and enforce a hazardous waste program pursuant to the RCRA. Despite having authorized a state to act, the EPA frequently files its own enforcement actions against suspected environmental violators even after the commencement of a state-initiated enforcement action. See Bryan S. Miller, Harmonizing RCRA's Enforcement Provisions: RCRA Overfiling in Light of Harmon Industries v. Browner, Environmental Law. 585 (1999). The EPA's process of duplicating enforcement actions is known as overfiling. See id. The permissibility of overfiling apparently is a question of first impression in the federal circuit courts. See Harmon, 19 F. Supp.2d at 995. After examining this apparent issue of first impression, the district court concluded that the plain language of section 6926(b) dictates that the state program operate "in lieu" of the federal program and with the "same force and effect" as EPA action. Accordingly, the district court found that, in this case, the RCRA precludes the EPA from assessing its own penalty against Harmon. See id.

The EPA contends that the district court's interpretation runs contrary to the plain language of the RCRA. Specifically, the EPA cites section 6928 of the RCRA, which states that:

(1) Except as provided in paragraph (2), whenever on the basis of any information the [EPA] determines that any person has violated or is in violation of any requirement of this subchapter, the [EPA] may issue an order assessing a civil penalty for any past or current violation, requiring compliance immediately or within a specified time period, or both, or the [EPA] may commence a civil action in the United States district court in the district in which the violation occurred for appropriate relief, including a temporary or permanent injunction.

(2) In the case of a violation of any requirement of [the RCRA] where such violation occurs in a State which is authorized to carry out a hazardous waste program under section 6926 of this title, the [EPA] shall give notice to the State in which such violation has occurred prior to issuing an order or commencing a civil action under this section.

42 U.S.C. 6928(a)(1) and (2).

The EPA argues that the plain language of section 6928 allows the federal agency to initiate an enforcement action against an environmental violator even in states that have received authorization pursuant to the RCRA. The EPA contends that Harmon and the district court misinterpreted the phrases "in lieu of" and "same force and effect" as contained in the RCRA. According to the EPA, the phrase "in lieu of" refers to which regulations are to be enforced in an authorized state rather than who is responsible for enforcing the regulations. The EPA argues that the phrase "same force and effect" refers only to the effect of state issued permits. The EPA contends that the RCRA, taken as a whole, authorizes either the state or the EPA to enforce the state's regulations, which are in compliance with the regulations of the EPA. The only requirement, according to the EPA, is that the EPA notify the state in writing if it intends to initiate an enforcement action against an alleged violator.

Both parties argue that the plain language of the RCRA supports their interpretation of the statute. We also are ever mindful of the long-established plain...