Assn Battery Recycl v. EPA

                  United States Court of Appeals

               FOR THE DISTRICT OF COLUMBIA CIRCUIT

        Argued October 25, 1999    Decided April 21, 2000 

                           No. 98-1368

         Association of Battery Recyclers, Inc., et al., 
                           Petitioners

                                v.

            U.S. Environmental Protection Agency and 
                Carol M. Browner, Administrator, 
              U.S. Environmental Protection Agency,
                           Respondents

                        Consolidated with 
                 Nos. 98-1381, 98-1392 & 98-1394

           On Petitions for Review of an Order of the 
                 Environmental Protection Agency

     Donald J. Patterson, Jr. argued the cause for petitioners 
on the RCRA classification issues. With him on the joint 

briefs were Harold P. Quinn, Jr., Roderick T. Dwyer, Karl S. 
Bourdeau, Michael W. Steinberg, Joshua D. Sarnoff, David 
F. Zoll, Ronald A. Shipley, William R. Weissman and Steven 
J. Groseclose.  Michael B. Wigmore and Robert N. Stein-
wurtzel entered appearances.

     William R. Weissman argued the cause for petitioners on 
the LDR treatment standards issues. With him on the briefs 
was Steven J. Groseclose.

     Michele L. Walter, Attorney, U.S. Department of Justice, 
and Steven Silverman, Attorney, Office of General Counsel, 
U.S. Environmental Protection Agency, argued the causes for 
respondents. With them on the brief was Cecilia Kim, Attor-
ney, U.S. Department of Justice.

     David R. Case argued the cause for intervenors Environ-
mental Defense Fund, Environmental Technology Council 
and National Mining Association.  With him on the brief were 
Karen Florini, Donald J. Patterson, Jr., Harold P. Quinn, 
Jr., and Roderick T. Dwyer.

     Before:  Silberman, Ginsburg, and Randolph, Circuit 
Judges.

     Opinion for the Court by Circuit Judge Randolph.

     Opinion for the Court by Circuit Judge Ginsburg.

     Opinion dissenting in part by Circuit Judge Randolph.

     Randolph, Circuit Judge:  These are consolidated petitions 
for judicial review of Environmental Protection Agency regu-
lations promulgated on May 26, 1998, under the Resource 
Conservation and Recovery Act of 1976 ("RCRA"), Pub. L. 
No. 94-580, 90 Stat. 2795.  The regulations--known collec-
tively as the "Land Disposal Restrictions Phase IV" Rule--
deal with residual or secondary materials generated in mining 
and mineral processing operations and EPA's classification of 
these materials as "solid waste";  with the treatment stan-
dards for a specific category of hazardous waste;  and with 
EPA's test for determining whether certain wastes are haz-
ardous.  Our opinion is in three parts.  The first part decides 
whether EPA properly defined "solid waste."  We are unani-
mous that it did not.  The second part decides, again unani-

mously, that EPA's treatment standards for a particular 
category of hazardous waste are lawful. The third part, 
written by Judge Ginsburg and joined by Judge Silberman, 
decides that EPA's test for determining toxicity is valid for 
certain wastes but not for others.  I disagree with their 
conclusion for the reasons stated in my dissenting opinion.

                   I. Definition of Solid Waste

     Two petitioners--the National Mining Association and the 
American Iron and Steel Institute--and an intervenor-the 
Chemical Manufacturers Association--challenge the portion 
of EPA's Phase IV Rule defining a "solid waste" in terms of 
how materials "generated and reclaimed within the primary 
mineral processing industry" are stored.  40 C.F.R. 
s 261.2(e)(iii).  The question is of substantial importance to 
these petitioners because, together, they represent most of 
the nation's producers of coal, metals, and industrial and 
agricultural minerals;  two thirds of the nation's steel produc-
tion;  and more than ninety percent of the nation's productive 
capacity of basic industrial chemicals.

     RCRA defines "solid waste" as "any garbage, refuse, 
sludge from a waste treatment plant, water supply treatment 
plant, or air pollution control facility and other discarded 
material...."  42 U.S.C. s 6903(27).  Solid wastes are "con-
sidered hazardous if they possess one of four characteristics 
(ignitability, corrosivity, reactivity, and toxicity) or if EPA 
lists them as hazardous following a rulemaking."  Columbia 
Falls Aluminum Co. v. EPA, 139 F.3d 914, 915 (D.C. Cir. 
1998) (citing 42 U.S.C. s 6921(a), 40 C.F.R. pt. 261).  Disposal 
of hazardous waste is forbidden unless the waste is treated to 
reduce its hazardous constituents or stored in a manner 
ensuring that the hazardous constituents will not migrate 
from the disposal unit.  See id. (citing 42 U.S.C. s 6924(g)(5), 
(m)).

     To understand the contentions of the parties, it will be 
helpful to outline the current solid waste classification system 
(most of which predates the Phase IV Rule and is not being 
challenged).  EPA's general regulation defining "solid waste" 
begins by repeating a portion of the statutory definition:  "a 

solid waste is any discarded material."  40 C.F.R. 
s 261.2(a)(1).  It then defines "discarded material" to mean 
"any material which is Abandoned ... or Recycled, as ex-
plained in paragraph (c) of this section...."  Id. 
s 261.2(a)(2).  Paragraph (c) identifies four situations in 
which "recycled" materials will be considered "solid waste":  
when the materials are "used in a manner constituting dispos-
al";  when the materials are "burn[ed] for energy recovery";  
when the materials are "reclaimed";  and when the materials 
are "accumulated speculatively."  40 C.F.R. s 261.2(c)(1)-(4).

     The Phase IV Rule revised only the reclamation provision.  
Before the revision, EPA classified reclaimed spent materials 
and scrap metal as solid waste.  See 40 C.F.R. s 261.2(c)(3) & 
tbl.1 (1996).  Reclaimed sludges and by-products were classi-
fied as solid waste only if they had been specifically listed in 
40 C.F.R. pt. 261 as a hazardous waste following an EPA 
rulemaking.  See 40 C.F.R. s 261.2(c)(3) & tbl.1 (1996).  Re-
claimed sludges and by-products exhibiting a characteristic of 
hazardous waste, but not specifically listed as hazardous 
wastes, were not classified as solid waste.  See id.  This 
classification system applied without regard to the industry 
that produced the materials.

     The Phase IV Rule purported to take materials reclaimed 
by the mineral processing industry outside this framework 
and to subject these secondary materials to a new test for 
determining whether they constituted "solid waste."  See 40 
C.F.R. s 261.2(c)(3) & tbl.1.  We say "purported" because it 
is not clear to us that EPA accomplished its objective.  The 
relevant part of the new recycling-reclamation provision 
reads:

     Materials [listed in a table] are not solid wastes when 
     reclaimed (except as provided under 40 CFR 
     261.4(a)(17)).[1]
     
__________
     1 The final rule published in the Federal Register incorrectly 
cited s 261.4(a)(15).  See 63 Fed. Reg. 28,556, 28,636 (1998).  EPA 
later corrected its mistake.  See 64 Fed. Reg. 25,408, 25,408 (1999).

Id.  The new s 261.4(a)(17) gave a so-called "conditional 
exclusion":  if the provision's criteria were met, reclaimed 
mineral processing secondary materials would not be classi-
fied as solid waste.  We have trouble making sense of these 
two provisions.  The first provision (s 261.2(c)(3)) broadly 
describes what is not a solid waste, unless it complies with the 
other provision.  But the other provision--s 261.4(a)(17)--is 
an exclusion, and the consequence of not complying with the 
provision is, of course, loss of exclusion.  In other words, read 
together, the provisions seem to say that something is not a 
solid waste unless it is not excluded from being a solid waste.  
Lewis Carroll would be proud.  But petitioners make nothing 
of the point and we shall therefore assume that if secondary 
material of this sort--derived from mineral processing--does 
not meet the conditions specified in s 261.4(a)(17), EPA will 
consider the material "solid waste" potentially subject to full 
RCRA Subtitle C regulation.

     As to the conditions set forth in s 261.4(a)(17), EPA's 
dividing line between "waste" and nonwaste is the manner of 
storage.  If the mineral processor stores secondary material 
destined for recycling in tanks, containers, buildings, or on 
properly maintained pads, the materials are not considered 
"solid waste."  See id. s 261.4(a)(17)(iii), (iv).  Given our 
assumption (and that of the parties), if by-products and 
sludges exhibiting a characteristic of hazardous waste are not 
stored in such a manner prior to being recycled, they may be 
regulated as hazardous "waste."

     How long the materials are stored is of no consequence 
according to the regulation.  See Fed. Reg. 28,556, 28,582-83 
(1998).  They could be placed on the ground for only a few 
minutes before being put back into the production process, 
yet they would still be subject to RCRA if not stored in 
accord with s 261.4(a)(17).  Petitioners say this rule extends 
EPA's authority far beyond the statute.  They ask how 
secondary material held for recycling in production could 
possibly qualify as "waste" when the statute defines "waste" 
as "discarded materials"?  42 U.S.C. s 6903(27).

     The question is not a new one.  It was asked and answered 
in American Mining Congress v. EPA, 824 F.2d 1177 (D.C. 
Cir. 1987) ("AMC I").  The court began by referring to the 
"ordinary, plain-English meaning" of "discarded"--" 'disposed 
of,' 'thrown away,' or 'abandoned.' "  Id. at 1184.  Secondary 
materials destined for recycling are obviously not of that sort.  
Rather than throwing these materials away, the producer 
saves them;  rather than abandoning them, the producer 
reuses them.  After examining the structure and history of 
RCRA, see id. at 1184-92, the AMC I court concluded:  
"Congress clearly and unambiguously expressed its intent 
that 'solid waste' (and therefore EPA's regulatory authority) 
be limited to materials that are 'discarded' by virtue of being 
disposed of, abandoned, or thrown away."  Id. at 1190.  The 
court therefore set aside an EPA rule regulating secondary 
"materials reused within an ongoing industrial process," id. at 
1182, because the materials were "neither disposed of nor 
abandoned," id. at 1193.

     The holding in AMC I thus appears to answer the question 
we have before us.  See Chevron U.S.A. Inc. vs. Natural 
Resources Defense Council, Inc., 467 U.S. 837 (1984).  The 
Supreme Court has a rule:  "Once we have determined a 
statute's clear meaning, we adhere to that determination 
under the doctrine of stare decisis, and we judge an agency's 
later interpretation of the statute against our prior determi-
nation of the statute's meaning."  Maislin Indus., U.S., Inc. 
v. Primary Steel, Inc., 497 U.S. 116, 131 (1990);  see also 
Lechmere, Inc. v. NLRB, 502 U.S. 527, 536-37 (1992).  We 
too follow stare decisis.  The complication, for an administra-
tive agency, of conflicting interpretations of the same statute 
from different circuits is not present.  The D.C. Circuit is the 
exclusive venue for pre-enforcement judicial review of RCRA 
regulations.  See 42 U.S.C. s 6976(a)(1).  And so, our inter-
pretation of RCRA binds not only this court but also EPA.

     EPA nevertheless insists that RCRA may be applied to 
materials that are not disposed of, abandoned, or thrown 
away, but are destined for reuse in an on-going industrial 
process.  The argument is that AMC I was a narrow decision, 
and that "subsequent judicial opinions have sharply limited 

the scope of AMC I."  63 Fed. Reg. at 28,580.  These later 
decisions, according to EPA, absolutely bar the agency from 
treating secondary materials as "discarded" (42 U.S.C. 
s 6903(27)) if and only if "reclamation is continuous in the 
sense that there is no interdiction in time--i.e. materials 
moving from one step of a recovery process to another 
without a break in the process, as for storage."  63 Fed. Reg. 
at 28,581.  We believe EPA misapprehends the law of the 
circuit.

     As to AMC I, EPA supports its interpretation of the 
decision on the basis that the court twice used the phrase 
"immediate reuse":

     Here, Congress defined "solid waste" as "discarded ma-
     terial."  The ordinary, plain-English meaning of the word 
     "discarded" is "disposed of," "thrown away" or "aban-
     doned."  Encompassing materials retained for immediate 
     reuse within the scope of "discarded" strains, to say the 
     least, the everyday usage of that term.
     
                              *  *  *

     The question we face, then, is whether ... Congress was 
     using the term "discarded" in its ordinary sense--"dis-
     posed of" or "abandoned"--or whether Congress was 
     using it in a much more open-ended way, so as to 
     encompass materials no longer useful in their original 
     capacity though destined for immediate reuse in another 
     phase of the industry's ongoing production process.
     
824 F.2d at 1183-84, 1185.  EPA reads, or rather misreads, 
these passages to mean that it may treat secondary materials 
as "discarded" whenever they leave the production process 
and are stored for any length of time.

     For one thing, "the language of an opinion is not always to 
be parsed as though we were dealing with language of a 
statute," Reiter v. Sonotone Corp., 442 U.S. 330, 341 (1979)--
an admonition the AMC I court itself repeated.  See 824 F.2d 
at 1183 n.6 (quoting Reiter, 442 U.S. at 341);  see also St. 
Mary's Honor Ctr. v. Hicks, 509 U.S. 502, 515 (1993) ("[W]e 

think it generally undesirable, where holdings of the Court 
are not at issue, to dissect the sentences of the United States 
Reports as though they were the United States Code.").  Yet 
EPA treats "immediate reuse" as if these were statutory 
terms in need of a regulatory definition.  See, e.g., 63 Fed. 
Reg. at 28,582-83.  EPA supplies the definition:  immediate 
reuse is "continuous recirculation of secondary materials back 
into recovery processes without prior storage" unless the 
storage for later recycling complies with the conditions EPA 
sets forth in the new s 261.4(a)(17) of its regulations.  63 
Fed. Reg. at 28,580-83.  Of course, this thoroughly ignores 
the AMC I court's holding that, under RCRA, material must 
be thrown away or abandoned before EPA may consider it to 
be "waste."  As we have said, material stored for recycling is 
plainly not in that category.

     For another thing, in the two passages quoted above, the 
word "immediate" cannot mean what EPA thinks.  The court 
wrote of secondary material "retained"--held for a time--and 
"destined"--denoting the future--for "immediate reuse."  
This more than suggests that the court had in mind materials 
that were being held or stored for later recycling or reuse.  
EPA assumes, without saying why, that when the AMC I 
court wrote "immediate" in these sentences it meant "at 
once."  But the word "immediate" has another common 
meaning--"direct," as in "my immediate superior" or "the 
immediate cause of the accident."  It is clear to us that this is 
what the AMC I court intended.  It is clear because retaining 
signifies holding onto, keeping, storing.  And so retaining, on 
the one hand, and reusing at once, on the other hand, sounds 
like a physical impossibility.  It is clear because the AMC I 
court stressed, again and again, that it was interpreting 
"discarded" to mean what it ordinarily means.  To say that 
when something is saved it is thrown away is an extraordi-
nary distortion of the English language.  Yet that is where 
EPA's definition leads. It is also clear that the AMC I court 
intended "direct" when it wrote "immediate" because EPA 
never even argued that materials sent back into the produc-
tion process, with no intermediate storage, were "waste."  
EPA never made the argument because its rule at the time 

did not consider such secondary materials to be discarded 
(and thus "solid waste" under RCRA).  EPA's AMC I brief 
stated:  "when secondary materials are recycled by being 
returned directly (without undergoing significant reprocess-
ing) for use as feedstock to the process which generated 
them, the activity often is like an on-going production process.  
Secondary materials being recycled in this way--referred to 
as a 'closed-loop' process--therefore are not defined as solid 
wastes."  Brief for Respondent at 11 (citing 40 C.F.R. 
s 261.2(e)(iii)(1986)), AMC I.

     That the "immediate reuse" phrase was not mentioned in 
the critical portions of the AMC I opinion containing the 
court's holding is still another reason for rejecting EPA's 
position.  The court stated:  "In sum, our analysis of the 
statute reveals clear Congressional intent to extend EPA's 
authority only to materials that are truly discarded, disposed 
of, thrown away, or abandoned," 824 F.2d at 1190;  and 
"[t]hese materials have not yet become part of the waste 
disposal problem;  rather, they are destined for beneficial 
reuse or recycling in a continuous process by the generating 
industry itself," id. at 1186 (italics in original);  and "we are 
persuaded that by regulating in-process secondary materials, 
EPA has acted in contravention of Congress' intent," id. at 
1193.  Nothing here about saved materials being transformed 
into discarded materials unless they are placed back into the 
production process forthwith.

     Still further, the AMC I court thought that EPA's final rule 
illegally regulated the following:  "valuable metal-bearing and 
mineral-bearing dusts are often released in processing a 
particular metal.  The mining facility typically recaptures, 
recycles, and reuses these dusts, frequently in production 
processes different from the one from which the dusts were 
originally emitted."  Id. at 1181.  The court must have been 
referring to the following illustration provided in the mining 
industry's brief:

     If, for example, "an emission control dust from a primary 
     zinc smelting furnace" is not returned to the zinc produc-
     
     tion process but instead to on-site "cadmium recovery 
     operations," it is classified as solid waste.
     
Brief for Petitioner American Mining Congress at 20 (citing 
50 Fed. Reg. 614, 640 (1985)), AMC I.  In this example, the 
dust is not placed back into the production process at once, 
and yet the AMC I court held that EPA had no authority to 
regulate the dust as solid waste because it had not been 
thrown away or otherwise discarded.  To state the matter 
more generally, the court in AMC I set aside EPA's rule 
because secondary materials which are treated prior to recy-
cling cannot be considered discarded if they are "reused 
within an ongoing industrial process."  824 F. 2d at 1182.2

     We have written enough to explain why we disagree with 
EPA's reading of AMC I and why the Phase IV Rule 
contradicts that decision.  Later cases in this court do not 
limit AMC I, as EPA supposes.  American Petroleum Insti-
tute v. EPA, 906 F.2d 729 (D.C. Cir. 1990) ("API"), was, as 

__________
     2 An example from the rulemaking record in this case illustrates 
how temporary storage can be a necessary phase of reclaiming 
mineral processing secondary material.  The Cyprus Amax Miner-
als Company commented on EPA's proposed 48 hour rule, which 
would have defined any such secondary material stored for more 
than 48 hours as solid waste, see 62 Fed. Reg. 26,041, 26,051 
(1997)--a more limited assertion of authority than the current rule, 
which requires no minimum time period of storage.  See Comments 
of Cyprus Amax Minerals Company:  Land Disposal Restrictions 
Phase IV, at J.A. 839.  At its Miami smelter, Cyprus recycles 
reverts, a mixture of "converter slag and matte which has frozen to 
the wall and bottom of a transfer ladle."  Id. at 864.  To accomplish 
this, the reverts must be removed from the production process. 
"This frozen layer of material (reverts) is physically knocked loose 
from the ladle once it reaches a thickness that significantly reduces 
the ladle transfer capacity.  The freshly removed revert's tempera-
ture may still be as much as 1800-1900