Fmc Corporation v. United States Department of Commerce Ronald Brown, Secretary of Commerce, in His Official Capacity United States of America

SLOVITER, Chief Judge, dissenting with whom Judges COWEN and ROTH join, and with whom Judge STAPLETON joins as to Part II.

I respectfully dissent from the majority’s holding that the intense activity undertaken by the United States during World War II in coordinating and steering the country’s private industries to insure that they would produce the war supplies necessary to mount the country’s military operations subjects the United States to liability as an “operator” and “arranger” under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). I believe that Congress did not waive the sovereign immunity of the United States for this unique governmental activity. The broad imposition of liability that the majority opinion places on the government is unique in the history of CERCLA and will have consequences far beyond any manifested intent of Congress. In any event, the quantum and nature of the government’s activities set forth on this record do not rise to the statutory “operator” and “arranger” level.

I.

It is of course well established that the government waives only so much of its sovereign immunity as it has chosen to waive in clear and express language. See United States v. Testan, 424 U.S. 392, 399, 96 S.Ct. 948, 953-54, 47 L.Ed.2d 114 (1976). That CERCLA contains a waiver of some of the government’s sovereign immunity is undisputed. See Pennsylvania v. Union Gas Co., 491 U.S. 1, 10, 109 S.Ct. 2273, 2279, 105 L.Ed.2d 1 (1989).

The relevant provision, located significantly in the section entitled “Federal facilities,” states:

Each department, agency, and instrumentality of the United States (including the executive, legislative, and judicial branches of government) shall be subject to, and comply with, this chapter in the same manner and to the same extent, both procedurally and substantively, as any nongovernmental entity, including liability under section 9607 of this title.

*847CERCLA § 120(a)(1), 42 U.S.C. § 9620(a)(1) (1988) (emphasis added). However, the existence of a waiver is only the beginning of the analysis. What is at issue here is the scope of the waiver, limited as it is to the extent of liability of a private party.

The government proffers a construction of CERCLA’s waiver of sovereign immunity that subjects it to liability when it is acting or has acted like a “nongovernmental entity,” such as by owning facilities, but not when it is conducting a sovereign’s purely regulatory actions in connection with the operations of a private, for-profit entity. Thus, under the government’s analysis, its operation of facilities such as a federal park or an army base or naval vessel would subject it to “operator” or “owner” liability under CERCLA but its regulation of private parks or other private facilities would not, even if that regulation may result in the discharge of hazardous waste. I find the government’s construction of the statute reasonable insofar as it would cover government ownership or operation of facilities, as opposed to government regulation of private facilities.

The majority construes the waiver to provide that “when the government engages in activities that would make a private party liable ... then the government is also liable ... even if no private party could in fact engage in those activities.” Majority Op. at 840 (emphasis omitted). That construction of the statute is illogical, not much different than saying that birds are required to have passports to fly across the borders of nations that require people to have passports. The fact is that there are some activities inherent in the role of government which no private party can replicate, and mobilizing the private economy in the war effort, the activity at issue here, is one of them.1

Admittedly there are some government activities that may fairly be included within the rubric of regulation that can be performed by private parties, and the operation of a lighthouse, prominently emphasized by the majority, is one of these. See Indian Towing Co. v. United States, 350 U.S. 61, 69, 76 S.Ct. 122, 126-27, 100 L.Ed. 48 (1955). In contrast, there are some regulatory activities reserved exclusively to the federal government, such as winning a war, and it is these types of activities to which the waiver of sovereign immunity set forth in section 120(a)(1) of CERCLA does not extend. See The Federalist No. 41, at 269 (James Madison) (Jacob E. Cooke ed., 1961) (“Security against foreign danger is one of the primitive objects of civil society. It is an avowed and essential object of the American Union. The powers requisite for attaining it, must be effectively confided to the federal councils.”); cf. Feres v. United States, 340 U.S. 135, 141-42, 71 S.Ct. 153, 157, 95 L.Ed. 152 (1950) (government not liable under Federal Tort *848Claims Act for injuries to members of the armed forces incident to service, in part because “no private individual has power to conscript or mobilize a private army with such authorities over persons as the Government vests in echelons of command”); In re Air Crash Disaster at Mannheim, 769 F.2d 115, 121 (3d Cir.1985) (“Although judges must decide cases arising from fields of endeavor of which they know little, their otherwise omnicompetence confronts its limits in military matters. At this point, it must be acknowledged, separation of powers becomes a proper concern.”), cert. denied, 474 U.S. 1082, 106 S.Ct. 851, 88 L.Ed.2d 891 (1986) (quotation omitted).

Even the majority, as sweeping as its opinion is, recognizes that it is not free to eliminate all distinctions between the liability of the federal government and that of a private party. Instead, the majority finds an “implied” exception to its view of an unlimited waiver for those instances when the federal government acts “solely with the purpose of cleaning up hazardous materials,” believing that such an exception furthers the “essential purpose” of CERCLA. Majority Op. at 841.2 I believe, however, that by limiting its implied exceptions solely to those that further CERCLA’s purpose, the majority ignores the important obligations the federal government has outside the environmental arena.

For example, in discussing the government’s attempt to regulate the domestic economy to increase production during World War II, the Supreme Court has noted that the government had “a primary obligation to bring about whatever production of war equipment and supplies shall be necessary to win a war.” Lichter v. United States, 334 U.S. 742, 765-66, 68 S.Ct. 1294, 1307, 92 L.Ed. 1694 (1948) (emphasis added). There is a coincidental irony that the majority’s opinion comes shortly after the 50th Anniversary of D-Day, when the attention of the nation and the media were focused on the crucial role in winning the war played by American industry. See, e.g., ABC World News Tonight: Look Back at Preparations for D-Day Invasion, (ABC television broadcast May 31, 1994) (“America’s vast production might was mobilized to defeat Hitler. The U.S. war industries performed miracles.”); ABC World News Tonight: Homefront Workers Made World War II Victory Possible, (ABC television broadcast June 1, 1994) (Hitler “lost the battle of production. Before he lost anything else, he lost the battle of production.”).

Only the federal government — and exclusively the federal government — had the power and the ability to organize the myriad details needed to accomplish this overarching goal. Yet it is precisely this organization— the allocation of essential resources, the specification of production quotas, the arrangement of manpower, and the control of prices to prevent runaway inflation — on which the majority bases its imposition of liability. Certainly no private party could have engaged in such activity, and the majority of*849fers not one shred of evidence that when Congress limited its waiver of sovereign immunity to actions for which a nongovernmental entity would be liable, it intended to waive liability for these unique activities.

Instead, it is when the government undertakes to respond to society’s problems through operation of its own facilities (as distinguished from regulating the conduct of others), for example a government hospital, prison or military base, that its activities are analogous to those of private parties, and it is consequently subject to “operator” liability under CERCLA. This reading of the sovereign immunity waiver has its root in the statute itself. The placement and title of the sovereign immunity waiver in section 120 entitled “Federal facilities” lends support to the government’s proposition that the provision was intended only to ensure CERCLA liability for hazardous waste generated at federally-owned or federally-operated facilities. See Van S. Katzman, Note, The Waste of War: Government CERCLA Liability at World War II Facilities, 79 Va.L.Rev. 1191, 1206-07 (1993).3

Although the majority responds that virtually identical language appeared in the waiver of sovereign immunity in the original 1980 statute, and therefore placement of that provision in 1986 under the title “Federal facilities” has no significance, the majority fails to consider the likelihood that the new placement was intended to clarify the scope of the waiver. In fact, remarks by Senators contemporaneous to the legislation that placed the waiver under the “Federal facilities” designation suggest that this was indeed Congress’s view of the scope of the waiver, and the majority points to nothing to the contrary in the legislative record. See 182 Cong.Ree. 28,413 (1986) (statement of Sen. Stafford) (suggesting that section 120 exists to deal with “two to three potentially hazardous sites at each of 473 military bases across the country” and “sites operated by the Department of Energy”); 131 Cong.Ree. 24,733 (1985) (statement of Sen. Wilson) (“By Federal facilities, we are talking primarily of military bases, although the Department of Energy has a few sites ... and the Department of the Interior has some hazardous waste cleanup responsibilities as well.”).4

Reading the waiver in this manner does not nullify it. Studies suggest that there are numerous government facilities dangerous enough to fall within the ambit of CERCLA, see Stan Millan, Federal Facilities and Environmental Compliance: Toward a Solution, 36 Loy.L.Rev. 319, 321-24 (1990) (discussing scope of problem); 57 Fed.Reg. 31,758 (July 17, 1992) (list of 1,709 federal facilities for potential inclusion on National Priorities List), and Congress was certainly aware of this, see, e.g., H.R.Rep. No. 253(1), 99th Cong., 2d Sess. 58 (1985), reprinted in 1986 U.S.C.C.A.N. 2835, 2840; see also Review of *850Hazardous Waste Disposal Practices at Federal Facilities: Hearing Before a Subcomm. of the House Comm, on Government Operations, 98th Cong., 1st Sess. 1-3,176-78, 215-17 (1983).

In our recent opinion in United States v. Rohm and Haas Co., 2 F.3d 1265, 1278 (3d Cir.1993), we held that the government could not recover from private parties the cost of government oversight of the removal and remedial activity performed and paid for by a private party. We recognized the incompar-ability between government and private action, and were unwilling to read CERCLA as treating government cleanups and private cleanups as equivalent actions for purposes of recovery of costs. See id. at 1277-78. We noted that it was “far more likely that Congress viewed EPA’s overseeing of a private party’s removal activities as qualitatively different from EPA’s actually performing removal activities.” Id. at 1277 (emphasis added).

Of particular significance here, we stated in Rohm and Haas that the government’s oversight “is intended to protect the public interest rather than the interests of those being overseen,” and that therefore the government could not recover its administrative costs from the regulated parties without “a clear statement of congressional intent.” Id. at 1273-74. A similar analysis is appropriate here in the converse of the Rohm and Haas situation, where we are considering the government’s liability for payment rather than its ability to receive payment. Just as the government’s oversight in Rohm and Haas was sui generis in the sense that it could not be performed by a private party, so also was the government’s activity in wartime in mobilizing private industry to produce necessary supplies.

If there were any ambiguity about the scope of the government’s sovereign immunity waiver, we would be obliged to apply the generally accepted principle that a waiver of sovereign immunity “must be strictly construed in favor of the United States, and not enlarged beyond what the language of the statute requires.” United States v. Idaho, - U.S. -, -, 113 S.Ct. 1893, 1896, 123 L.Ed.2d 563 (1993) (emphasis added, quotation omitted). As Justice Scalia wrote for the Court:

The foregoing [interpretations] are assuredly not the only readings of [the provision], but they are plausible ones — which is enough to establish that a reading imposing monetary liability on the Government is not “unambiguous” and therefore should not be adopted. Contrary to respondent’s suggestion, legislative history has no bearing on the ambiguity point. As in the Eleventh Amendment context, the “unequivocal expression” of elimination of sovereign immunity that we insist upon is an expression in statutory text. If clarity does not exist there, it cannot be supplied by a committee report.

United States v. Nordic Village, Inc., — U.S. -, -, 112 S.Ct. 1011, 1016, 117 L.Ed.2d 181 (1992) (citation omitted).

This rule of strict construction applies even if the statute as a whole is remedial in nature. See Library of Congress v. Shaw, 478 U.S. 310, 318, 106 S.Ct. 2957, 2963, 92 L.Ed.2d 250 (1986) (Title VII); Pennsylvania v. National Ass’n of Flood Insurers, 520 F.2d 11, 19-20 (3d Cir.1975) (Federal Tort Claims Act), overruled in part by Pennsylvania v. Porter, 659 F.2d 306, 318 (3d Cir.1981) (in banc), cert. denied, 458 U.S. 1121, 102 S.Ct. 3509, 73 L.Ed.2d 1383 (1982).

Indeed, while the majority relies on CERCLA’s policy of internalizing the costs of waste cleanups, it ignores the countervailing policy interests that underlie the rule of sovereign immunity. As we noted in another context, when construing a waiver of sovereign immunity we must remember that “the process of governing almost always helps some and hurts others.” Sea-Land Service, Inc. v. United States, 919 F.2d 888, 890 (3d Cir.1990) (quoting 5 K. Davis, Administrative Law Treatise § 27.11 (1983)), cert. denied, 500 U.S. 941, 111 S.Ct. 2235, 114 L.Ed.2d 477 (1991). To permit courts to extract money damages from the government for its regulatory activities “would necessarily involve a very substantial, if not prohibitive, social cost not only in terms of the imposed liability itself, but also in terms of the constraining effect of that liability on the decisions of governmental policymakers.” *851Id.; see also Harold J. Krent, Reconceptual-izing Sovereign Immunity, 45 Vand.L.Rev. 1529,1531 (1992) (Sovereign immunity “plays a vital role in our system; it is not so much a barrier to individual rights as it is a structural protection for democratic rule.”). We concluded that “[i]n the absence of compelling evidence to the contrary, we will decline to assume that Congress intended to impose that social cost on the federal government.” Sea-Land, 919 F.2d at 890.

In this case there is no compelling evidence demonstrating that when Congress enacted CERCLA in 1980, or amended it in 1986, it unmistakably intended to hold the government financially liable for the environmental consequences of its mobilization of domestic industry to increase production of numerous scarce products and materials that were indisputably needed in the war effort. The government produced evidence that during World War II, executive agencies closely regulated dozens of industries across the economy at least to the same degree as here. Indeed, the government has demonstrated that the district court’s opinion is already being used as the basis for numerous suits against the government asserting claims for CERCLA contributions in a wide variety of industries arising from regulatory activity during World War II.

While it is not beyond Congress’s power to do so, it is difficult to imagine that by the words of section 120 Congress intended to impose massive liability on the United States for the environmental consequences of this regulation, running into the hundreds of millions of dollars (estimated by the government to be between $26 and $78 million in this case alone), without some reference in the legislative history to its intent to do so. I therefore believe the district court should have granted the government’s motion for summary judgment on the ground that the waiver of sovereign immunity contained in section 120(a)(1) of CERCLA did not encompass the activities on which FMC predicated its claim against the government for operator and arranger liability.

II.

Moreover, even if Congress had not limited its waiver of the government’s sovereign immunity to liability to the same extent as that of any nongovernmental entity, the district court’s judgment would still be erroneous because an examination of the relevant facts demonstrates that the activities relied on by it and the majority are insufficient to render the government an “operator” of the American Viscose facility. The majority’s definition of “operators” for CERCLA purposes is unassailable: “operators” are persons who exercise “actual and substantial control over ‘the corporations’s day-to-day operations and its policy-making decisions.’ ” Majority Op. at 843 (quoting Lansford-Coaldale Joint Water Auth. v. Tonolli Corp., 4 F.3d 1209, 1222 (3d Cir.1993)). Even the district court recognized that “ ‘nuts-and-bolts’ management decisions [are] necessary for [operator] liability under CERCLA.” FMC Corp. v. United States Dep’t of Commerce, No. 90-1761, 1990 WL 102941, at *4, 1990 U.S.Dist. LEXIS 8902, at *10 (E.DJPa. Jul. 18, 1990).

The facts adduced by FMC do not evince any of the essential characteristics of “operation.” Although a litany of factual conclusions adduced by the majority may appear, on the surface, to suggest the type of control at which the CERCLA operator liability is directed, careful parsing of those conclusions demonstrates their evanescence. The majority summarizes the facts on which it rests its conclusion of operation as follows: (1) the government’s “diversion of] American Viscose from its previous commercial endeavors;” (2) the maintenance by the government of “a significant degree of control over the production process through regulations, on-site inspectors, and the possibility of seizure” if American Viscose had not followed the government’s specifications; (3) the “government built or had built plants supplying raw materials to American Viscose, controlled these plants, arranged for an increased labor force, and supervised employee conduct;” (4) “the government supplied machinery and equipment for use in the manufacturing process;” and (5) “the government controlled product marketing and price.” Majority Op. at 844 (emphasis added). I will consider each in turn, because I believe that none of these facts individually nor all of them to*852gether sufficed to make the government an operator of the privately owned, privately financed, and for-private-profit plant.

The diversion of “American Viscose from its previous commercial endeavors” as part of the overall war effort can hardly, in and of itself, have rendered the government an operator of the plant. The War Production Board (WPB), the point agency during World War II, was authorized through Executive Orders to “ ‘[formulate and execute in the public interest all measures needful and appropriate in order ... to increase, accelerate, and regulate the production and supply of materials ... required for the national defense.’” See FMC Corp. v. United States Dep’t of Commerce, 786 F.Supp. 471, 474 (E.D.Pa.1992) (quoting Exec. Order No. 8629, 6 Fed.Reg. 191 (1941) (citing Exec. Order No. 9040, 7 Fed.Reg. 527 (1942)). Its directives had the force of law. See id. at 475.

The principal focus of the mobilization of private industry in the war effort was to coordinate procurement policy for goods and scarce materials vital to the war effort and to allocate resources to ensure their availability for fulfillment of government military contracts. This required that firms give military needs priority, but only if the government met regularly established prices and terms of sale. If a manufacturer declined to give the requested priority, the government had the power to take over the facility for “fair and just” compensation. It is important to emphasize that under the majority’s conclusion that the arrangement by which American Viscose produced high tenacity rayon for needed tires and/or that the specification of the amount of material needed made the government an “operator,” the government would literally have “operated” a large portion of the country’s heavy production facilities during the war. Instead, for the most part it left them in private hands.

The Supreme Court itself has recognized that for the most part the government did not choose to “operate” private industry in the war effort. See Lichter v. United States, 334 U.S. 742, 766, 68 S.Ct. 1294, 1307, 92 L.Ed. 1694 (1948) (Congress chose not to “convert[] the nation in effect into a totalitarian state” by operating all domestic industry and instead carefully regulated to “reach[ ] unequalled productive capacity and yet retain[ ] the maximum of individual freedom consistent with a general mobilization of effort”). The issuance of directives to American Viscose does not evidence the type of “nuts and bolts” direct management of the internal workings of the “facility” necessary to achieve operator status. See United States v. Dart Indus., Inc., 847 F.2d 144, 146 (4th Cir.1988).

The majority’s second fact, that the government maintained a “significant degree of control” over the production process, appears on its face to bring the government closer to “operator” status than any of the majority’s other facts. However, when the basis for this conclusion is examined, it too falls short. Notably, the majority does not conclude, nor could it on this record, that the government exercised de facto day-to-day control. After all, American Viscose management continued firmly in place. Instead the majority refers to the “possibility of seizure” by the government of the plant, without acknowledging that the mere “possibility” could not make it an “operator” unless and until it exercised that power. Although the potential of seizure may have had an in terrorem effect by encouraging or coercing producers to comply with the government’s requirements, the potential of seizure is not operation of the plant.

The “regulations” referred to but not identified by the majority in reaching its conclusion do not differ in character from those applicable to all industries producing essential products during that period. It is a fact of life that during the war, production of consumer goods such as nylon stockings and rayon underwear was circumscribed by the government, even for producers who were inclined to put frivolous consumer items above tires and parachutes needed by the military. It has not previously been suggested by any court that the regulations accomplishing this made the government an operator of the plants in all of the affected industries. Finally, the “on-site inspector” referred to by the majority in its discussion is *853duplicative of the similar references made in its third factual conclusion and is best understood in that context.

In examining the third of the facts on which the majority relies to demonstrate day-to-day control (built and controlled raw material plants, arranged for an increased labor plant, and supervised employees), we must once again consider each of the components. The majority relies on the government’s construction of a sulfuric acid plant which it owned but leased to General Chemical Company and its sponsorship of the construction of a carbon bisulfide plant by Stauf-fer Chemical Company, both of which provided raw materials needed by American Viscose in its production of high tenacity rayon. Significantly the raw materials at issue were sold to American Viscose by others, not by the government. Moreover, although the sulfuric acid plant was adjacent to the American Viscose facility, the sulfuric acid plant was not the relevant “facility” at issue in the CERCLA cleanup. It follows that the government’s involvement in the sulfuric acid plant’s construction and operation does not impact on whether the government operated the American Viscose plant a different “facility.”

Thus, the persuasiveness of the third of the majority’s relevant “facts” depends on the government’s involvement with American Viscose’s employees, which it refers to in the summary as the government’s “arrang[ing] for an increased labor force [] and supervision] of employee conduct.” Majority Op. at 844. To be sure, there was an on-site government representative who assisted American Viscose employees in an effort to reduce shortages of housing and community services, and who assisted American Viscose in minimizing labor strife and absenteeism, but that representative did not control the workers. There is no evidence that it was anyone other than American Viscose supervisors who directed the productive employees in where to work within the plant, what shift to work, when or if to take a vacation, what days to work, and all the details that go into employee supervision.5

While we agree with the majority that the government was interested in insuring that American Viscose increased the production of a scarce resource, it is factually incorrect to give the impression that the government was supervising operating personnel at the American Viscose plant or had an input in the firing or retention of American Viscose’s employees. Instead the documents discussed by the majority, Majority Op. at 844-45, reinforce the premise that while government officials were concerned about the activities at the plant, their actions were in response to American Viscose’s requests for assistance rather than part of any overarching scheme to control the workings of the plant.6 Thus *854the majority has arrived at its conclusion of day-to-day operational control by the government based on unsupported or irrelevant snippets of findings by the district court.

The majority’s fourth fact is that the government leased machinery and equipment to American Viscose. The simplest response is that the government has already accepted “owner” liability for the equipment it owned at the facility. To count these items again in assessing “operator” liability would unjustifiably conflate these two distinct bases of responsibilities.

The majority’s fifth and final fact is the government control of “product marketing and price.” Inasmuch as the plant was converted to high tenacity rayon for the war effort, it is not surprising that government regulations required that the product produced be sold to authorized companies, who in turn were also regulated in this regard. As for product marketing and price, control of price over almost all production during that period was effected through regulations and directives of the Office of Price Administration, and such regulation, while pervasive, is not the involvement in day-to-day management decisions to which the CERCLA operator inquiry speaks.

One aspect of operation of a plant is conspicuously absent from the majority’s discussion of operation — that of profit. FMC produced no evidence that American Viscose, the real operator of the plant, who chose (as fortunately did almost all of American private industry) to go along with the governmental wartime regulation, was not adequately paid for its efforts. The majority’s suggestion that the costs of cleanup of the hazardous wastes produced in the process of American Viscose’s production should be borne by society as the ultimate beneficiary of the war effort is inconsistent with CERC-LA’s approach of treating cleanup costs as part of the cost of initial production. American Viscose produced high tenacity rayon which was installed by another producer in tires that were eventually used by the armed forces. The fact that the government was the ultimate consumer of that rayon is as irrelevant in assessing the cost of cleanup at the plant operated by American Viscose as would be the fact that General Motors purchases and uses spark plugs if there was an attempt to assess against it the cost of cleanup of any hazardous waste generated by its independent spark plug supplier.

When examined, the totality of the government’s procurement and allocation activities in the war effort simply did not constitute the type of “active[ ] and substantial ] participation] in the corporation’s management” necessary for liability as an “operator” under CERCLA. Lansford-Coaldale, 4 F.3d at 1222.7

. While the Supreme Court has not yet addressed the issue, see Berkovitz v. United States, 486 U.S. 531, 535 n. 2, 108 S.Ct. 1954, 1958 n. 2, 100 L.Ed.2d 531 (1988); United States v. S.A. Empresa de Viacao Aerea Rio Grandense (Vang Airlines), 467 U.S. 797, 815 n. 12, 104 S.Ct. 2755, 2765 n. 12, 81 L.Ed.2d 660 (1984), courts have generally held that the similar waiver of sovereign immunity in the Federal Tort Claims Act does not extend to the exercise of regulatory power because there are no private analogs to the government’s regulatory power over its citizens. See, e.g., Myers v. United States, 17 F.3d 890, 905 (6th Cir.1994) (sovereign immunity not waived for suit alleging negligent mine inspection because enforcing safety regulations is a “situation[] in which only governments can find themselves and, therefore, ordinary state-law principles of private liability do not, and cannot, apply”); Akutowicz v. United States, 859 F.2d 1122, 1126 (2d Cir.1988) (sovereign immunity not waived for suit challenging decertification of person’s national citizenship because "the withdrawal of a person's citizenship constitutes a quasi-adjudicative action for which no private analog exists”); C.P. Chem. Co. v. United States, 810 F.2d 34, 37 (2d Cir.1987) (sovereign immunity not waived for suit alleging improper promulgation of administrative regulation because "the United States cannot be held liable, for no private analog exists”); Jayvee Brand, Inc. v. United States, 721 F.2d 385, 390 (D.C.Cir.1983) (separate opinion of Bork, J.) (sovereign immunity not waived for suit seeking damages for ultra vires regulation because "quasi-legislative or quasi-adjudicative action by an agency of the federal government is action of the type that private persons could not engage in”); McMann v. Northern Pueblos Enterprises, 594 F.2d 784, 785-86 (10th Cir.1979) ("As the Miller Act deals exclusively with federal contracts, private persons would never be in a position to require the posting of a Miller Act bond by a contractor. It follows that private persons could not possibly be liable for any negligent failure to insist on the posting of such a bond. Since a private person could not be liable for such failure, the United States could not be under the provisions of the Federal Torts Claims Act.").

. The majority relies on Congress's inclusion of an express statutory exemption for such activities by state and local governments and then states that it “believe[s] that Congress intended to treat the federal government in the same manner as state and local governments.” Majority Op. at 841. It cites no support for this assertion and it would seem to be a difficult proposition to sustain, particularly in light of the majority's insistence that any exception for activities of the federal government be explicit. Congress has treated federal and state governments differently throughout the statute's existence. While the federal government’s sovereign immunity was waived in 1980 to some extent, see Pub.L. No. 96-510, Title I, § 107(g), 94 Stat. 2767, 2783 (1980), the states' Eleventh Amendment immunity was not abrogated until six years later, see Pub.L. No. 99-499, Title I, § 101(b)(1), 100 Stat. 1613, 1614, 1615 (1986) (codified at CERCLA § 101(20)(D), 42 U.S.C. § 9601(20)(D) (1988)), and then only with explicit provisions to protect state and local governments (but not the federal government) from liability arising out of "actions taken in response to an emergency created by the release ... of a hazardous substance generated by or from a facility owned by another person.” See id. § 107(d)(2), 100 Stat. at 1629 (codified at CERCLA § 107(d)(2), 42 U.S.C. § 9607(d)(2) (1988)).

Furthermore, the majority's implication of an exception for federal cleanup of hazardous materials from the waiver of sovereign immunity makes the statute’s explicit exception for cleanup by state governments in section 107(d)(2) redundant because section 101(20)(D) abrogates the states' sovereign, i.e. Eleventh Amendment, immunity in language virtually identical to its waiver of the federal government's sovereign immunity-

. The majority errs in suggesting that my reading of the waiver would preclude holding the government liable in cases like Key Tronic Corp. v. United States, — U.S. -, 114 S.Ct. 1960, 128 L.Ed.2d 797 (1994), where the Air Force agreed to pay the EPA for a portion of a cleanup of a local landfill in which it had deposited liquid chemicals. Majority Op. at 842 n. 2. Nothing in my construction of the statute precludes liability of the government for operating its own facility or arranging for the disposal of its own hazardous waste. My position that purely regulatory activities are not encompassed in the government’s CERCLA liability would not have shielded it in Key Tronic, where, as distinguished from its regulation in this case, the Air Force disposed of waste it had generated at a landfill, just as private entities do every day.

. Neither of the statutory provisions relied upon by the majority supports its position that the CERCLA sovereign immunity waiver encompasses the government’s regulatory activities at issue here. There is no reason why section 107(b), which lists three defenses such as act of God and act of war to section 107 liability, would also have specified a regulatory defense, as the majority argues, inasmuch as Congress had elsewhere limited the government's liability to activity analogous to that of nongovernmental entities, i.e. in section 120(a).

The other statutory provision referred to by the majority, section 107(d)(2), and previously discussed at note 2 supra, immunizes state and local governments from liability for certain cleanup activities of "a hazardous substance generated by or from a Facility owned by another person.” This provision thus posits that the state and local governments would be otherwise liable. The failure to include the federal government in the provision suggests that Congress did not envision liability for the federal government comparable to that of state and local governments, and therefore it was unnecessary to include it in the section 107(d)(2) immunity.

. The district court grouped a series of findings under the heading “Government On-Site Presence at the Facility,” FMC, 786 F.Supp. at 481, which give the erroneous impression that government personnel were supervising plant operations. In fact, the government personnel referred to in those findings were merely supervising installation of the government-owned spinning wheels in the plant by a government selected contractor, for which the government has accepted ownership responsibility. Examination of the relevant documents makes clear that the references to “the project” or “on-site” are to the construction and installation of the spinning wheels. There is simply no evidence on the record that the government personnel supervised any American Viscose employee in connection with the production of rayon, and to the extent that any findings by the district court so suggest, they would be clearly erroneous.

. For example, the majority’s reliance on a WPB representative's statement that "[i]t was agreed on unanimously that a WPB Prio[r]ities man [is] needed on the Housing situation,” App. at 1720, is misplaced because the statement was the conclusion of a series of events initiated by American Viscose’s request for trailers to house its workers. Initially, a WPB representative responded to its request by instructing another to “see that AVC puts through the proper form for [the] first hundred trailers.” App. at 1719. When American Viscose then asked if it should prepare a site for the trailers, one WPB representative advised them to wait for approval, while a second stated that approval would be swift. Another WPB representative explained that ”[t]he assignment of a priority representative [will be] to take an interest in this project: To break bottlenecks,” to which a fourth replied "A swell idea if he is a live wire." App. at 1719.

Similarly, the letter quoted by the majority between the chairman of the WPB and the chairman of the War Manpower Commission clearly states that the WPB is seeking to coordinate preparation for staffing the expanded Facility because "in the judgment of the local manage*854ment and other responsible people” previous planning was inadequate. App. at 1746 (emphasis added).

Thus, instead of asserting significant control over the day-to-day operations of a private facility, the government attempted to ensure a coordinated response to various requests of American Viscose, a private for-profit plant important to the war effort.

. Because the court is equally divided on the issue of the government’s liability as an arranger, and it is our tradition not to write an opinion in that situation, I do not set forth what I believe are independent reasons to reverse the district court in that regard.