On December 9, 2015, we were given a chance to more clearly understand the legal arguments being mounted by industry groups and environmentalists against EPA related to the definition of solid waste (“DSW”) rule that was promulgated nearly a year ago under the Resource Conservation and Recovery Act (“RCRA”). In their opening briefs filed in the consolidated lawsuit American Petroleum Institute v. EPA, both sets of parties are calling on the U.S. Court of Appeals for the D.C. Circuit to vacate certain aspects of the DSW rule, albeit for opposing reasons.

At issue in the litigation is the DSW rule, which EPA issued as final in January 2015. The long-awaited rule scales back certain RCRA recycling exemptions that were first promulgated as part of a contentious rulemaking in 2008. It also adds new regulatory factors that all recycling activities must meet to demonstrate that the recycling is legitimate, including long-standing exemptions that pre-date the 2008 DSW rule.

Industry petitioners, which include American Chemistry Council, American Petroleum Institute, National Association of Manufacturers, Utility Solid Waste Activities Group, and Freeport-McMoRan, argue that EPA has overstepped its authority by regulating material that has not yet been discarded. They point to the new mandatory four-factor legitimacy test, which now applies to all recycling activities, arguing that such broad application results in the regulation of non-discarded materials. Agency overreaching also forms the basis of the groups’ challenge to EPA’s decision to replace the 2008 DSW rule’s transfer-based exclusion with the verified recycler exclusion. In addition, the groups take issue with the application of the legitimacy factors to the numerous RCRA regulatory exclusions that pre-date the DSW rule (i.e., “pre-2008 exclusions”).

Similar themes are found in the environmental petitioners’ brief.  Represented by Earthjustice, environmental petitioners include the Counsel for California Communities Against Toxics, Clean Air Council, Coalition for a Safe Environment, Louisiana Environmental Action Network and Sierra Club. They argue that the DSW rule exceeds EPA’s authority and should not be afforded deference because the verified recycler exclusion allows companies to avoid hazardous waste regulatory requirements even though paying for having the waste indicates that the material has been discarded. Environmental groups are also challenging the Agency’s decision to keep in place the pre-2008 exclusions, which the groups view to be outdated and lacking requirements necessary to prevent unlawful discard of hazardous wastes.

EPA’s reply brief is due March 8, 2016. For more information on the DSW rule, please see here.

Author

John Watson chairs the Firm’s North American Environmental Practice Group and leads the coordinated Global Environmental Practice. Mr. Watson has been advising industrial enterprises on managing wide-ranging environmental risks and liabilities arising out of their domestic and international operations for over 20 years. He has been consistently recognized as a leading environmental lawyer in Chambers USA, The International Who’s Who of Environment Lawyers, and Leading Lawyers and Super Lawyers publications.

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David Hackett advises senior management, legal departments and Boards of major corporations and nonprofits on compliance, risk, environmental and sustainability matters. He has exceptional experience managing US and international compliance and environmental projects, including the evaluation and development of effective compliance and sustainability programs. He also has extensive experience litigating major civil and criminal environmental matters. David sits on multiple nonprofit boards and additionally advises many civic and nonprofit organizations across the globe. Following his tenure with the Environmental Enforcement Division of the US Department of Justice, David joined the Firm where he has played a formative role in the establishment of the Firm's compliance, environmental, climate and sustainability practices. At Baker McKenzie, David has served as the managing partner of North America, a member of the Global Executive Committee, and Chicago office managing partner. He has also been the North America Chair of both the Compliance Practice Group and the Banking, Finance and Major Projects Practice Group.

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Mr. Sanders leads Baker & McKenzie’s U.S. environmental litigation practice. He represents both domestic and non-U.S. corporations before federal, state and administrative courts in environmental, class action, mass tort and product liability litigation, government enforcement, permitting and criminal proceedings. He counsels companies with respect to compliance with CERCLA, RCRA, CWA, TSCA, OSHA and state environmental and product regulations. Mr. Sanders advises multi-national and domestic corporations on environmental, health and safety statutory requirements and legal risks with respect to products sold or marketed in the United States, including responding to product liability claims and recalls. He also advises clients on environmental, health & safety risks and liabilities in transactions.

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Jessica Wicha is a counsel in the Firm’s North American Environmental Practice Group. Her practice covers the spectrum of environmental legal matters, including regulatory compliance counseling, enforcement defense, and environmental aspects of complex business transactions. She strives to provide practical solutions to her client's environmental legal challenges, including day-to-day compliance issues, remediation matters, emergency spills and releases, and regulatory enforcement. Ms. Wicha also has extensive experience advising on environmental transactional matters across a wide range of industry sectors and global jurisdictions. This work includes scoping and coordinating environmental due diligence, managing environmental consultants, advising clients on environmental liability and risk allocation issues and tools, drafting and negotiating environmental contractual language, and coordinating permit transfers.