UNITED STATES
ENVIRONMENTAL PROTECTION AGENCY
BEFORE THE ADMINISTRATOR
In the matter of )
)
Rogers Corporation ) Docket No. TSCA-I-94-1079
)
)
Respondent )
ORDER GRANTING COMPLAINANT'S MOTION TO AMEND THE COMPLAINT
ORDER DENYING RESPONDENT'S MOTION FOR ACCELERATED DECISION
ORDER GRANTING COMPLAINANT'S MOTION FOR
PARTIAL ACCELERATED DECISION AS TO LIABILITY
ORDER SCHEDULING HEARING
Introduction
On September 12, 1997, Respondent Rogers Corporation
("Respondent") filed a Motion for Accelerated Decision, with
attached supporting memorandum and affidavit. On September 22,
1997, the United States Environmental Protection Agency
("Complainant" or "EPA") filed an Opposition to the
Respondent's Motion for Accelerated Decision, a Motion for
Partial Accelerated Decision on the Issue of Liability,
memoranda in support of both pleadings, and a Motion to Amend
the Complaint and Prehearing Memorandum, with attached Amended
Complaint and supplemental prehearing memorandum.(1) On
October 2, 1997, the Respondent filed Responses to the EPA's
Motion for Partial Accelerated Decision, the EPA's Opposition
to the Respondent's Motion for Accelerated Decision, and the
EPA's Motion to Amend the Complaint. The Respondent also filed
a Request for Oral Argument. On October 9, 1997, the EPA filed
a Reply Regarding Motions for Accelerated Decision. In an
order entered by the undersigned on October 9, 1997, the
hearing in this matter scheduled for October 22-24, 1997, in
Boston, Massachusetts, was canceled pending action by the
undersigned on the parties' cross-motions for accelerated
decision.
The EPA's Motion for Partial Accelerated Decision as to
Liability is Granted as follows along with its Motion to Amend
the Complaint and Prehearing Memorandum. The Respondent is
liable for violating the PCB disposal requirements of 40 C.F.R.
§ 761.60 and Section 15 of the Toxic Substances Control Act
("TSCA"), 15 U.S.C. § 2614, as alleged in Count I of the
Complaint. A hearing to determine the appropriate penalty is
scheduled for January 14-16, 1998, in Boston, Massachusetts.
The Respondent's request for oral argument is denied. See
40 C.F.R. § 22.16(c). I note that the Respondent has not set
forth the reason or basis for this request other than its
generalized assertion that it is entitled to judgment as a
matter of law in this matter. Respondent's Request for Oral
Argument.
Background
The Complaint in this matter is filed under the authority
of Section 16(a) of TSCA, 15 U.S.C. § 2615(a). This proceeding
is governed by the Consolidated Rules of Practice Governing the
Administrative Assessment of Civil Penalties and the Revocation
or Suspension of Permits ("Rules of Practice"), 40 C.F.R. §§
22.01 et seq.
Section 6 of TSCA, 15 U.S.C. § 2605 directs the
Administrator of the EPA to promulgate regulations establishing
requirements for the manufacture, distribution, and use of
polychlorinated biphenyls ("PCBs"). These implementing
regulations are found at 40 C.F.R. Part 761, and are entitled
"Polychlorinated Biphenyls (PCBs) Manufacturing, Processing,
Distribution in Commerce, and Use Prohibitions" ("PCB
regulations"). Section 6(e) of TSCA and the PCB regulations
provide that it shall be unlawful for a person to dispose of
PCBs at concentrations of 50 parts per million ("ppm") or
greater in any manner other than that listed in the
regulations. 40 C.F.R. §§ 761.60, 761.70, 761.75. The PCB
regulations list and describe the allowable disposal methods
for various manifestations of PCBs. The prescribed methods of
disposal for liquids, other than mineral oil dielectric fluid,
containing a PCB concentration of 50 ppm or greater but less
than 500 ppm include disposal in an approved incinerator, a
designated chemical waste landfill, a high efficiency boiler,
or a specifically approved combustion process. 40 C.F.R. §
761.60(a)(3).
In the Complaint, the EPA alleges one (1) violation of 40
C.F.R. § 761.60, which prohibits the disposal of PCBs in a
manner not approved by the PCB regulations. The Complaint
filed on September 23, 1994, proposes a civil administrative
penalty of $226,750 for this alleged violation, but in the
EPA's Amended and Supplemental Prehearing Memorandum filed on
April 18, 1997, the proposed penalty amount was reduced to
$182,700. The proposed Amended Complaint now before me seeks
a civil administrative penalty of $300,300 for the alleged
violation.
Specifically, the Complaint alleges that the Respondent is
a Massachusetts company that owns and operates a plant located
at 245 Woodstock Road in East Woodstock, Connecticut
("Facility"), at which the Respondent produces polyurethanes,
elastics, and foams. Complaint at ¶ 1. The Complaint alleges
that at the Facility the Respondent operated a heat transfer
system identified by the Respondent as Heat Transfer System No.
975 ("HTS 975") that spilled oil into a bermed area below.
The Complaint also alleges that a sample of this spilled oil
was collected from the bermed area below HTS 975 on November
5, 1993, and that subsequent laboratory analysis revealed the
presence of PCBs. Complaint at ¶¶ 4, 5. The Complaint further
alleges that a follow-up inspection was performed on December
1, 1993, at which time samples of oil spilled from HTS 975 were
collected, and that subsequent laboratory analysis of theses
samples revealed PCB concentrations of 50 ppm or greater.
Complaint at ¶¶ 6-8. Finally, the Complaint alleges that on
or about June 16, 1993, the Respondent became aware of earlier
laboratory analysis results which showed that samples of oil
from HTS 975 contained PCBs at a concentration of 50 ppm or
greater, but failed to clean up the materials containing PCBs
at unacceptable concentrations until at least December 1, 1993.
Complaint at ¶¶ 9-10.
Count I of the Complaint alleges that the Respondent
improperly disposed of PCBs from at least June 1, 1993, to at
least December 1, 1993, by operating HTS 975 at the Facility
in a manner that caused uncontrolled discharges and spills of
PCBs at or above concentrations of 50 ppm or greater, or by
allowing such PCBs to be present in, or improperly disposed of
in, concrete material beneath HTS 975 during this time period.
Count I further alleges that with respect to the PCBs spilled
from HTS 975, the Respondent failed to initiate prompt cleanup
in accordance with the PCB Spill Cleanup Policy, 40 C.F.R. Part
761, Subpart G. Based on the foregoing, Count I alleges that
the Respondent has violated 40 C.F.R. § 761.60 and Section 15
of TSCA. Complaint at ¶¶ 11-19.
Motion to Amend the Complaint and Prehearing Memorandum
As a preliminary matter, I address the EPA's Motion to
Amend the Complaint and Prehearing Memorandum. As noted above,
the Motion to Amend the Complaint and Prehearing Memorandum was
filed concomitantly with the EPA's Motion For Partial
Accelerated Decision as to Liability. The purpose of the
Motion to Amend the Complaint, as reflected by its attached
Amended Complaint and as stated by the EPA, is to allege that
the period of violation for the improper disposal of PCBs is
from June 16, 1993, to at least March 29, 1994, rather than
from June 16, 1993, until December 1, 1993, as alleged in the
Complaint, and correspondingly to increase the amount of the
proposed penalty from $226,750 to $300,300 based on the longer
period of alleged violation. Complainant's Proposed Amended
Complaint, Complainant's Motion to Amend the Complaint and
Prehearing Memorandum at p. 1.
The EPA maintains that this alleged longer period of
violation is based on information provided in the affidavit of
Mr. Gerry Langelier which was submitted by the Respondent in
support of its Motion for Accelerated Decision filed on
September 12, 1997. Langelier Affidavit. The EPA notes that
Mr. Langelier is a corporate official in the Respondent's
corporation who was listed as a proposed witness by the
Respondent in its prehearing exchange. The EPA contends that
the proposed amendments, which concern only the dates and
duration of the alleged violation and the corresponding amount
of the proposed penalty, are not introduced for a dilatory
purpose and will not cause any delay or undue prejudice to the
Respondent. The EPA further contends that these requested
amendments do not affect the Respondent's alleged liability
and, thus, do not affect the parties' cross-motions for
accelerated decision.
The Respondent opposes the Motion to Amend the Complaint
and the Prehearing Memorandum. The Respondent argues that the
EPA's Motion to Amend the Complaint and Prehearing Memorandum
is inexcusably untimely as the EPA's alleged rationale is based
on information known to the EPA for at least two years. The
Respondent further argues that the proposed amendments would
severely prejudice its defense.
Motions to amend the complaint are governed by the Rules
of Practice which allow amendment upon motion granted by the
Presiding Officer.(2) 40 C.F.R. § 22.14(d). The Rules of
Practice do not, however, illuminate the circumstances when
amendment is or is not appropriate. Nevertheless, some
parameters have been developed through various administrative
decisions. In particular, the Environmental Appeals Board
("EAB") has offered some guidance on the subject, informed by
the Federal Rules of Civil Procedure ("FRCP"). The EAB has
held that a complainant should be given leave to freely amend
a complaint in EPA proceedings, in accord with the liberal
policy of FRCP 15(a), inasmuch as it promotes accurate
decisions on the merits of each case. See In the Matter of
Asbestos Specialists, Inc., TSCA Appeal 92-3, 4 EAD 819, 830
(EAB Oct. 6, 1993); see also In the Matter of Port of Oakland
and Great Lakes Dredge and Dock Company, MPRSA Appeal No. 91-1,
4 EAD 170, 205 (EAB Aug. 5, 1992).(3)
With regard to the amendment of pleadings, the United
States Supreme Court has interpreted FRCP 15 to mean that there
should be a "strong liberality...in allowing amendments" to
pleadings. Forman v. Davis, 371 U.S. 178 (1962). Leave to
amend pleadings under Rule 15(a) should be given freely in the
absence of any apparent or declared reason, such as undue
delay, bad faith or dilatory motive on the movant's part,
repeated failure to cure deficiencies by previous amendment,
undue prejudice, or futility of amendment. See Id.
The EPA's Motion to Amend the Complaint and Prehearing
Memorandum comes at a late date, but the EPA explains that new
information was just offered by the Respondent on its Motion
for Accelerated Decision which has compelled the EPA to
reevaluate its interpretation of the provable dates of
violation. The Respondent correctly points out that undue
delay or undue prejudice to the opposing party may serve as
justification to deny a motion to amend a complaint, but I see
no such delay or prejudice in this case. The longer period of
violation alleged by the EPA in its Amended Complaint will not
require massive documentation or a significant modification of
strategy by the Respondent. Additionally, the hearing to
determine the appropriate penalty in this matter is now
scheduled for January 14-16, 1998, in Boston, Massachusetts,
affording the Respondent ample time to address the new
allegation. The undersigned also notes that inasmuch as the
proposed amendments to the Complaint concern only the duration
of the alleged violation and the amount of the corresponding
penalty and do not directly affect the issue of liability, the
ensuing order on the parties' cross-motions for accelerated
decision as to liability may be rendered and entered without
prejudice to either party.
Accordingly, the EPA's Motion to Amend the Complaint and
Prehearing Memorandum is Granted. Upon the filing of the
Amended Complaint, the Amended Complaint will become the
Complaint in this matter. Pursuant to 40 C.F.R. § 22.14(d),
the Respondent shall have twenty (20) additional days from the
date of service of the Amended Complaint to file its Answer.
Thereafter, the Respondent shall amend its prehearing exchange,
should it choose to do so, by December 19, 1997.
Findings of Fact
In reliance on the Respondent's Answer, and on the facts
and attachments jointly stipulated by the Respondent and the
EPA, I make the following findings.
1. The Respondent, The Rogers Corporation, is a corporation
organized under the laws of Massachusetts with its principal
place of business at One Technology Drive, Rogers, Connecticut,
and is a "person" within the meaning of 40 C.F.R. § 761.3.
2. The Respondent owns and operates a manufacturing facility
at 245 Woodstock Road, East Woodstock, Connecticut
("Facility"). The Facility, which was acquired by the
Respondent in December 1967, manufactures polyurethane
elastomers and foams.
3. Since before 1972 and through March 29, 1994, the Facility
utilized a heat transfer system known as HTS 975.
4. HTS 975 was located in a basement room and used oil as a
heat transfer medium.
5. In 1972, the Respondent replaced the PCB oil it had
historically used in HTS 975 with non-PCB oil as a heat
transfer medium. At the time of the adaptation to non-PCB oil,
the Respondent flushed the HTS 975 system.
6. HTS 975 was equipped with so-called "wet seals," and its
pumps "wept" oil while in operation. This oil was captured in
a shallow concrete-lined, bermed containment area surrounding
and underlying the HTS 975 heaters and pumps. Periodically,
the Respondent pumped the oil from the berm into drums, sampled
the contents for PCBs, and sent the drums off-site for
disposal.
7. From at least 1988 to at least March 1992, samples of oil
taken from the berm revealed PCB concentrations under 50 ppm.
8. In 1992, the Respondent's production rate increased
dramatically to the point at which the HTS 975 was operating
24 hours per day, 365 days per year, an increase that continued
through 1993 and into 1994.
9. In April 1993, the Respondent performed sampling of 16
drums of waste oil from the berm under HTS 975. Analysis of
the samples was performed by Averill Environmental Laboratory,
Inc. and reports of this analysis dated June 16, 1993, revealed
the presence of PCBs in concentrations above 50 ppm in nine of
the drums. The Respondent received these results sometime
after they were sent to it on June 16, 1993.
10. On September 10, 1993, the Respondent properly shipped the
16 drums off-site for disposal in accordance with the PCB
regulations.
11. On December 1, 1993, the Connecticut Department of
Environmental Protection ("CT DEP") performed an inspection of
the Facility and took five samples of oil from the HTS 975
room.
12. Upon analysis of the five samples taken by the CT DEP, one
sample of oil from within the HTS 975 bermed area was found to
contain 170 ppm of PCBs and one sample of oily Speedi-Dry from
the drum storage area was found to contain 70 ppm of PCBs.
13. Splits of the samples taken by the CT DEP were sent by the
Respondent to Averill Environmental Laboratory, Inc. on
December 7, 1993, and the analysis of these samples revealed
that two samples contained PCBs at concentrations of 140 ppm
and 110 ppm, respectively.(4) The Respondent reported these
results to the CT DEP on January 10, 1994.
14. On December 15, 1993, the Respondent received a Notice of
Violation from the CT DEP, to which the Respondent responded
on January 12, 1994.
15. On March 29, 1994, the CT DEP issued an order to the
Respondent to undertake certain studies and to take certain
remedial actions with respect to the PCBs around the Facility.
Arguments
Respondent's Arguments
The Respondent contends that it cannot be held liable for
a violation of Section 15 of TSCA because it has not committed
any of the violations of the PCB regulations as alleged in
Count I of the Complaint. The Respondent offers several
arguments for a finding of no liability in this case.
The Respondent begins with an assertion that it did not
"dispose" of PCBs at the Facility within the meaning of the PCB
Spill Cleanup Policy at 40 C.F.R. Part 761, Subpart G, as
alleged in Count I because the policy is not applicable on its
face to the facts of this case. In this regard, the Respondent
maintains that any release of PCBs at the Facility must have
occurred prior to the 1972 transformation of the HTS 975 from
PCB to non-PCB oil and certainly before May 4, 1987, the
effective date of the PCB Spill Cleanup Policy. Respondent's
Memorandum of Law in Support of its Motion for Accelerated
Decision ("Respondent's Memorandum") at 9-11. In support of
this argument, the Respondent states that "HTS 975 has not
contained any PCBs in excess of 50 ppm since [June 1972]" and
it therefore follows that PCBs could not possibly have been
"spilled" from HTS after June 5, 1972. Respondent's Memorandum
at 10.
Next, the Respondent contends that the PCB disposal
requirements of 40 C.F.R. § 761.60 do not apply to the facts
in this case because any historic releases of PCBs at the
Facility are covered by the "disposal site" exemption embodied
in the prefatory note of Subpart D of the PCB regulations
("Prefatory Note"). The Prefatory Note states that "PCB items
which have been placed in a disposal site are considered to be
'in service' " and therefore exempt from the PCB disposal
requirements. 40 C.F.R. Part 761, Subpart D (prefatory note).
In this regard, the Respondent asserts that the "disposal site"
exemption creates a legal fiction that PCBs "placed in a
disposal site" before February 17, 1978, are "in service" until
they are removed for disposal. In other words, the Respondent
asserts that the term "disposal site," as used in the Prefatory
Note, refers to places where PCBs were spilled or released into
the environment prior to February 17, 1978. Applying this
assertion to the instant case, the Respondent contends that as
the PCBs in question were "placed in a disposal site" no later
than June 5, 1972, if at all, these PCBs are "in service" and
therefore exempt from the PCB disposal requirements of Subpart
D in general and of 40 C.F.R. § 761.60 in particular.
Respondent's Memorandum at 12.
The Respondent argues that the EPA's reliance in this
matter on the Chief Judicial Officer's ("CJO") decision in In
the Matter of Standard Scrap Metal Company, TSCA Appeal No. 87-4, 3 EAD 267 (CJO Aug. 2, 1990) is misplaced. In particular,
the Respondent argues that the CJO's discussion in that case
of whether or not the spill sites in question were "disposal
sites" was dicta only and therefore the EPA's reliance on the
CJO's statement that "disposal site" refers to a narrow
subcategory of places "set aside for the purpose of containing
waste...not just places where PCBs happen to spill" is
unwarranted.
The Respondent then invokes the 1994 Proposed Rule for the
PCB regulations ("Proposed Rule") to argue that this proposed
rule has effectively overruled Standard Scrap. Disposal of
Polychlorinated Biphenyls, 59 Fed. Reg. 62788, 62858 (1994) (to
be codified at 40 C.F.R. Part 761). Respondent's Memorandum
at 13. According to the Respondent, in response to confusion
generated by the Standard Scrap opinion, the EPA proposed new
regulations to clarify that PCBs disposed of prior to 1978 will
not require further disposal action unless a Regional
Administrator finds that such an historic disposal presents a
risk of exposure. The Respondent also argues that the Proposed
Rule acknowledges that Standard Scrap had erroneously narrowed
the intended meaning and scope of the "disposal site" exemption
and, in response, the Proposed Rule reaffirmed that the
Prefatory Note was intended to exempt pre-1978 spills from the
Disposal Regulations. The Respondent notes that the new
regulations are incorporated in a Proposed Rule issued on
December 6, 1994, only a couple of months after the filing of
the Complaint in the instant matter.
The Respondent claims that the validity of the 1994
Proposed Rule has been recognized by the District of Columbia
Circuit of the United States Court of Appeals in General
Electric Company v. United States Environmental Protection
Agency, 53 F. 3d 1324 (D.C. Cir. 1995), and by the EAB in In
Re CWM Chemical Services, Inc., Docket No. TSCA-PCB-91-0213
(EAB May 15, 1995). Respondent's Memorandum at 15-16.
In addition, the Respondent contends that the PCB
regulations are prospective in application and therefore do not
apply to the alleged releases of PCBs from HTS 975. In
particular, the Respondent maintains that the PCB Disposal Rule
and the PCB Ban Rule, the twin cornerstones of the PCB
regulations, do not apply to spills that occurred before April
18, 1978, and July 2, 1979, the respective effective dates of
these rules. In this regard, the Respondent argues that, in
the absence of clear Congressional intent, it would be
unconstitutional to hold that these Rules apply to spills that
occurred before the respective effective dates of these PCB
regulations. See Landgraf v. USI Film Products, 511 U.S. 244,
280 (1994). Respondent's Memorandum at 16-19.
Alternatively, the Respondent argues that even if the PCB
disposal requirements of 40 C.F.R. § 761.60 were applied
retroactively to the alleged releases of PCBs from HTS 975, any
resulting PCB disposal violations are nevertheless time-barred
under the five-year statute of limitations contained in 28
U.S.C. § 2462. The Respondent notes that Section 2462 applies
to administrative proceedings for the assessment of civil
penalties under Section 16(a) of TSCA and it claims that such
law precludes the EPA from pursuing disposal violations that
occurred more than five years before the filing of the
Complaint, which was before September 23, 1989, in the instant
matter. Following the same reasoning as that employed in its
historic spill argument, the Respondent asserts that the latest
date on which a spill could have occurred was in 1972, well
before the cut-off date. Respondent's Memorandum at 21-23.
Finally, the Respondent argues that any finding of
liability against it would violate due process in that such a
finding would need to rest on an EPA interpretation of the PCB
regulations that held historic spills to be subject to the
disposal regulations. Respondent's Memorandum at 23-25. Such
an interpretation, argues the Respondent, would be too novel
and too unreasonable to afford regulated entities sufficient
notice of the scope of the regulations.
EPA's Arguments
The EPA alleges that the undisputed facts show that
samples of oil from the bermed area beneath HTS 975 taken and
analyzed on at least two separate occasions in 1993 revealed
PCB concentrations greater than 50 ppm, which constitutes an
improper disposal under the PCB regulations. The EPA maintains
that when the Respondent allowed the PCB contaminated oil to
remain on the floor under HTS 975 an improper disposal occurred
because the floor is not a permitted disposal location. The
fact that the PCBs were present because of a spill, leak, or
discharge does not alter a finding of improper disposal
according to the EPA's argument. Complainant's Memorandum in
Support of its Motion for Partial Accelerated Decision
("Complainant's Memorandum") at 7-8; Complainant's Reply
Regarding Motions for Accelerated Decisions ("Complainant's
Reply") at 10.
The EPA rejects all the above arguments raised by the
Respondent as being based on the false premise that no spill
could have occurred after the 1972 adaptation of the HTS 975
to non-PCB oil. The EPA argues that for the purposes of the
instant cross-motions for accelerated decision, it is not
necessary to resolve the issue of the origin of the PCBs as the
undisputed fact that PCBs were present at regulated levels in
the pool of waste oil under HTS 975 for several months in 1993
establishes the Respondent's liability. In support of this
argument, the EPA cites the CJO's holding in In the Matter of
City of Detroit Public Lighting Department, et al., TSCA Appeal
No. 89-5, 3 EAD 514 (CJO Feb. 6, 1991), that "[f]rom the
unexplained presence of PCBs in the soil or on the floor, it
can be inferred that one or more "uncontrolled discharges" of
PCBs took place." Further, the EPA argues that a finding of
liability for causing and contributing to an improper disposal
of PCBs, in violation of 40 C.F.R. § 761.60(d), is fully
warranted and appropriate because the undisputed facts reflect
that the Respondent did nothing to clean up the PCB
contaminated oil on the floor after it was on notice in June
1993 that PCBs were at an excessive level but rather it allowed
further leakage of oil and continued exposure of its workers
to PCBs at excessive levels. Complainant's Memorandum at 8-10.
In addition, the EPA argues that, even if the PCBs should
be determined to be part of an historic spill occurring prior
to the enactment of TSCA and the PCB regulations, long-standing, controlling EPA precedent holds that a Respondent is
liable for uncontrolled spills even if the spills occurred
prior to TSCA's effective date. See Standard Scrap; City of
Detroit. In this regard, the Respondent asserts that, under
the CJO's holding in Standard Scrap, the area of the floor
under HTS 975 where the discharges and pooling of PCB
contaminated oil occurred in 1993 are not "disposal sites"
falling within the "disposal site" exemption because there is
not a shred of evidence that the floor was a place set aside
for containing waste. Standard Scrap, at 275-279. Further,
the EPA argues that its interpretation of the PCB regulations
is neither novel nor unreasonable and that the Respondent had
sufficient notice of the coverage of the PCB disposal
requirements. Complainant's Memorandum at 16-17.
The EPA rejects the Respondent's contention that the
proposed amendments to the PCB regulations effectively overrule
Standard Scrap. First, the EPA points out that such proposed
amendments are not final and therefore do not have the force
of law. Even if it were assumed arguendo that the concrete
floor is a "disposal site" and that Standard Scrap is wrong,
the EPA contends that the Respondent was still required to
clean up the PCBs improperly disposed of in the exposed pool
of oil under HTS 975. Further, the EPA argues that at the time
relevant to this case, the Respondent's conduct is governed by
Standard Scrap and that the proposed amendments, which were
published in December 1994, would not affect this application
of Standard Scrap.
Finally, the EPA rejects the Respondent's additional
defenses based on the application of the statute of limitations
and the alleged improper retroactive liability. The EPA
emphasizes that it is not alleging liability for failing to
clean up the PCBs acknowledged by the Respondent to be present
in the soil under its building but rather it alleges liability
based on the uncontrolled discharge of PCBs in a pool of oil
on the floor under HTS 975 in 1993.
Discussion
Motions for Accelerated Decision
As noted above, the procedures governing these proceedings
are set forth in the Rules of Practice. The regulation
governing accelerated decisions provides in pertinent part:
The Presiding Officer, upon motion of any party
or sua sponte, may at any time render an accelerated
decision in favor of the complainant or the
respondent as to all or any part of the proceeding,
without further hearing or upon such limited
additional evidence, such as affidavits, as he may
require, if no genuine issue of material fact exists
and a party is entitled to judgment as a matter of
law, as to all or any part of the proceeding.
40 C.F.R. § 22.20(a).
In the parties' cross-motions for accelerated decision on
the issue of liability of the Respondent for the alleged
violation of 40 C.F.R. § 761.60, the EPA and the Respondent
agree that there are no genuine issues of material fact while
each party contends that it is entitled to judgment as a matter
of law. Respondent's Motion for Accelerated Decision;
Complainant's Memorandum at 1, 5. The Respondent argues that,
relying on the facts stipulated to by both parties or admitted
by the Respondent, the EPA has failed to establish a prima
facie violation of 40 C.F.R. § 761.60 and, thus, the Respondent
cannot be held liable for any violation of Section 15 of TSCA.
The EPA, on the other hand, maintains that the material facts
for establishing liability have been admitted or stipulated to
by the Respondent and liability, therefore, should be
determined by summary adjudication. Based on the record before
me, including the stipulated facts with their accompanying
documentation, I agree with the EPA.
The CJO's Holdings in Standard Scrap and
City of Detroit Are Controlling in the
Instant Case
A. PCB Disposal Requirements
Contrary to the many well-articulated arguments set forth
by the Respondent in this case, the cross-motions for
accelerated decision are governed by the CJO's holdings in
Standard Scrap and City of Detroit. The EPA alleges in the
instant case, as the EPA did in Standard Scrap and City of
Detroit, that the Respondent violated 40 C.F.R. Part 761, which
regulates, among other activities, the disposal of PCBs. The
Respondent in the instant case, as the Respondent did in
Standard Scrap, raises the defense that the PCBs must have been
spilled before February 17, 1978, and, therefore, pursuant to
the application of the "disposal site" exemption, the PCBs in
question are not subject to the disposal regulations.
The disposal requirements of 40 C.F.R. § 761.60(a) become
applicable only when PCBs "are removed from service and
disposed of." 40 C.F.R. § 761.60 (prefatory note); see City
of Detroit at 516; Standard Scrap at 269. Thus, in order to
determine the applicability of the disposal requirements, there
must be an adjudication of whether the PCBs in question are "in
service" or have been taken out of service for disposal.
To review, the relevant undisputed facts in the instant
case concerning the presence of PCBs at regulated levels and
PCB testing are as follows: the Respondent shifted from PCB to
non-PCB oil in HTS 975 in 1972; oil wept or dripped from HTS
975 into a concrete berm throughout its use; from 1988 through
1992, samples of the berm oil revealed PCB concentrations under
50 ppm; the HTS 975 rate of activity increased dramatically in
1992 and continued until 1994; testing of berm oil samples in
April of 1993 showed PCBs in concentrations above 50 ppm;
testing of a berm oil sample in December of 1993 showed PCBs
in a concentration above 50 ppm. Both parties have agreed to
these facts but disagree strongly as to the legal inferences
to be drawn from these undisputed facts. Also, both parties
have indicated that the catalyst for the increase in PCB
concentration may have been the increased production levels of
HTS in 1992 and until 1994.(5)
As noted above, analyses of samples of oil taken from
beneath HTS 975 in April and December 1993 at the Facility
operated and owned by the Respondent since December 1967
revealed PCB concentrations of 50 ppm or greater. From the
unexplained presence of PCBs on the concrete floor, it can be
inferred that one or more "uncontrolled discharges" of PCBs
took place. City of Detroit at 517; see Standard Scrap at 270;
see also Electric Service Company, TSCA Appeal No. 82-2, 1 EAD
947 (CJO Jan. 7, 1985). Pursuant to Section 761.60(d), which
references the term "spills," "spills and other
uncontrolled discharges" of PCBs at regulated levels, as well
as leaks, amount to a disposal.(6) Thus, an uncontrolled
discharge of PCBs is considered to be a removal of the PCBs
from service and termination of their useful life. PCBs that
have been discharged onto the floor or onto the soil,
therefore, must be regarded as out of service and in a state
of improper disposal, and, accordingly, must be disposed of in
accordance with Section 761.60(a). In the instant case, the
Respondent's failure to dispose of the PCB-contaminated oil in
the prescribed manner, therefore, would appear to constitute
an ongoing violation of the disposal requirements of Section
761.60(a), as alleged in Count I of the Complaint.
B. The "Disposal Site" Exemption
An exception to the disposal requirements of Section
761.60(a) is found in the Prefatory Note to Section 761.60(a),
which provides that the disposal requirements of 40 C.F.R. Part
761 do not apply to PCBs "placed in a disposal site"
prior to February 17, 1978.(7) As noted by the CJO in Standard
Scrap and the Respondent in its Motion for Accelerated
Decision, the "disposal site" exemption creates a legal fiction
that PCBs placed in a disposal site before February 17, 1978,
are "in service" until they are removed from their "disposal
site." Standard Scrap at 271; Respondent's Memorandum at 12.
In Standard Scrap, the CJO held that the "disposal site"
exemption is not available unless the soil contaminated by PCBs
as a result of a spill was removed from its spill site and
placed into an area set aside for the disposal of waste (e.g.,
a dump or landfill) before February 17, 1978. The CJO found
that a "disposal site" is something more than a place where
PCBs have been accidentally discharged. Id. Thus, while an
uncontrolled discharge constitutes a "disposal," the place
where an uncontrolled discharge occurs is not necessarily a
"disposal site" within the meaning of the disposal site
exemption.
In Standard Scrap, the CJO also held that the "disposal
site" exemption must be raised as an affirmative defense, with
both the burden of production and the burden of persuasion on
the party seeking to invoke the exception. As the respondent
bears both the initial burden of going forward and the ultimate
burden of persuasion on the applicability of the "disposal
site" exemption, the Respondent here is required to establish
by a preponderance of the evidence that the PCBs in the oil
samples from beneath HTS 975 were "placed in a disposal site"
prior to February 17, 1978. See Id. at 272-273; 40 C.F.R. §
22.24. The EPA, therefore, does not have the initial burden
of production on the timing of the improper disposal as part
of its prima facie case. Standard Scrap at 273.
Despite the torrent of arguments set forth by the
Respondent in this case, the issue of the applicability of the
"disposal site" exemption can be disposed of by direct
application of the CJO's holdings enunciated in Standard Scrap
and reiterated in City of Detroit. Applying the CJO's holdings
in those cases to the instant case, I find that the
Respondent's argument invoking the "disposal site" exemption
fails on two grounds.
First, I find that, regardless of the date of the spill or
uncontrolled discharge of PCBs in this case or the standard and
allocation of the burden of proof, the concrete floor and
bermed area from which some of the oil samples in question were
collected are not "disposal sites" within the meaning of the
disposal site exemption contained in the Prefatory Note to the
PCB regulations. See Standard Scrap at 275-279. In other
words, the concrete floor and bermed area did not become a
disposal site merely because PCBs were discharged or spilled
onto it. There is no suggestion by the Respondent that the
PCB-contaminated oil or the concrete floor from which the oil
was collected at issue here were placed into an area set aside
for the disposal of waste, such as a landfill. Accordingly,
I find that on this ground alone, the disposal site exemption
is not available to the Respondent.
I have considered the Respondent's contention that the
CJO's pronouncement concerning the disposal site aspect of the
disposal site exemption in Standard Scrap is merely non-binding
dicta. I reject this contention. A reading of the Standard
Scrap decision discloses that the CJO concluded "[a]s an
alternate basis for this decision," that inadvertent spill
sites are not disposal sites and such conclusion is
unequivocally a holding and not dicta. Standard Scrap at 275.
Second, I find that the Respondent has failed to carry its
burden of proving the applicability of the disposal site
exemption by demonstrating that the PCB spill occurred prior
to February 17, 1978. Although the burdens of persuasion and
production rest on the EPA with respect to the elements of its
prima facie case, once the EPA has established those elements,
both burdens shift to the Respondent in respect to the
affirmative defense of the "disposal site" exemption. Standard
Scrap at 271-275. Accordingly, the Respondent is required to
establish by a preponderance of the evidence that the PCBs in
the oil samples in 1993 were "placed in a disposal site" prior
to February 17, 1978.
In Standard Scrap, the CJO found that the respondent in
that case had presented no direct evidence showing when the
uncontrolled discharges at issue took place. Instead, the
respondent in Standard Scrap attempted to show that, because
it had not handled PCB-contaminated oil after February 17,
1978, the spills must have occurred before that date. The CJO
then went on to find that the respondent had failed to prove
by a preponderance of the evidence that the spills took place
before February 17, 1978. The CJO ruled that in the absence
of any direct evidence that the discharges occurred before that
date, the respondent needed to rule out the possibility that
the discharges occurred after that date. Id. at 274-275.
A similar situation arose in City of Detroit when the
cause of the uncontrolled discharge was not demonstrated by
direct evidence even though there was sufficient evidence to
show that the discharge occurred before the respondent in that
case took possession of the property in 1984. Initially, I
note that there is no question as to the responsible party in
the instant matter as was raised in City of Detroit because the
Respondent has not raised the issue and the admitted facts by
the Respondent reflect that it has operated the Facility since
it acquired ownership in 1967. Accordingly, the facts and
resulting outcome, if not the legal reasoning, of City of
Detroit are readily distinguishable from those in the instant
case.
Although the CJO in City of Detroit recognized that the
lack of causation is not an affirmative defense and that the
EPA has the initial burden of production and the burden of
persuasion as to causation because that element is the essence
of the violation, he further recognized that it is much easier
for the respondent to prove that it did not cause the
uncontrolled discharge than it is for the EPA to prove that the
respondent did cause the discharge. City of Detroit at 529.
If the EPA were required to prove causation in every instance,
its ability to enforce the PCB disposal requirements would be
severely impaired. Id. In an attempt to avoid this result,
the CJO in City of Detroit found that the lack of causation
creates the following rebuttable presumption: if PCBs are found
in the soil or on a surface of a piece of property so as to
raise the inference that an uncontrolled discharge has taken
place, then it must be presumed that the present owner caused
the uncontrolled discharge that deposited the PCBs there. Id.
Thus, in order to make its prima facie case on the causation
element, the EPA need only show that PCBs were found on the
property in a state of improper disposal.
However, the CJO in City of Detroit, in contrast to his
analogous ruling in Standard Scrap, ruled that the showing of
an improper disposal creates the rebuttable presumption that
the present owner caused it and that this presumption may be
rebutted by the present owner showing that it is more likely
or equally likely that another person caused the uncontrolled
discharge. The CJO pointed out that the present owner could
do this by presenting evidence that would rule out any
significant possibility that the spill occurred after the
present owner acquired the property. Such ruling, by analogy,
indicates a retreat from the more stringent ruling in Standard
Scrap that a respondent must rule out the possibility that a
discharge occurred after the February 17, 1978, date for the
application of the "disposal site" exemption. I agree with
this indicated modification because to rule otherwise
improperly allocates the burden of persuasion on the
respondent.
Informed by these rulings by the CJO in Standard Scrap and
City of Detroit, I now turn to the case before me. The
Respondent has proffered no direct evidence showing when the
uncontrolled discharges at issue took place or how these
discharges were caused. In fact, the Respondent has proffered
no evidence or direct theory to explain the presence of the
PCB-contaminated oil beneath HTS 975 on two separate occasions
in 1993. Rather, the Respondent relies solely on its argument
that PCBs could not possibly have been spilled from HTS 975
after June 5, 1972, because it has not used any PCB-containing
oil since June 1972 and that HTS 975 has not contained any PCBs
in excess of 50 ppm since that date. Respondent's Memorandum
at 10. The conclusion of an historic spill, however, is not as
obvious as the Respondent claims it to be.
I note that during the period from 1988 to at least March
1992 samples of oil from the concrete berm area underneath HTS
975 revealed PCB concentrations below 50 ppm. I attach some
significance to the fact that PCBs were present, although at
unregulated levels, well after the 1972 change over to non-PCB
oil by the Respondent and a concomitant flushing of HTS 975.
This presence of PCBs, in itself, contradicts the Respondent's
assertion that the PCBs could not possibly have been spilled
after June 5, 1972. The Respondent also contends that the
EPA's inference that a disposal took place in 1993 because two
sets of samples of residual oil from the bermed area taken
eight months apart were at levels above 50 ppm is unwarranted.
It further contends that this inference is rebutted by the
undisputed fact that the Respondent has not used PCBs in its
Facility since 1972. Respondent's Response at 2-3. I disagree
with these contentions. In fact, I find that the only
plausible explanation for the presence of PCBs at regulated
levels in 1993 after years of lower levels, especially those
reported by the Respondent as late as 1992, is that there was
an uncontrolled discharge in 1993.
From my review of the materials, two possible explanations
exist for the cause of the uncontrolled discharge of PCBs at
increased concentrations in the berm oil. The first, initially
implied by the Respondent in its Response to the EPA's Motion
for Accelerated Decision, is that PCBs, which had saturated the
concrete floor and supporting soil from pre-1972 leaks, had
leached up into the pool of oil, thereby increasing the PCB
concentration. Respondent's Response at 4-5.
The Respondent claims that "HTS 975 has not contained any
PCBs in excess of 50 ppm since [June 1972]." Respondent's
Memorandum at 10. This allegation supports the first theory
that the PCBs must have leached out of the concrete into the
berm oil. However, switching the equipment to non-PCB oil,
even when flushing the machine, does not lead inevitably to
such a conclusion. The equipment had run on PCB oil for a
number of years prior to the shift to non-PCB oil and likely
would have accumulated marked amounts of PCB residue within its
intricate machinery, residue that may not be dislodged by
flushing. Moreover, the Respondent's implied leaching claim
would be difficult to accept even in the absence of an
alternative theory. For such a claim to hold water, as it
were, the PCBs would have to have leached down into the
concrete at some point prior to 1972 then leached back up into
the oil in the berm in 1993 in great enough quantities to
contaminate over 9 barrels of oil. I find that it strains the
imagination to envision the amount of PCBs that would have to
leach into the berm oil from the concrete in order to
contaminate 9 drums of oil, all presumably filled after the
last "clean" test of the oil in 1992.
The second theory is based on both parties' indication
that the catalyst for the increase in PCB concentration was
likely the increased production levels from 1992 until 1994.
This theory is that the increased use of the HTS 975 lead to
the dislodging of residual PCBs remaining in the equipment from
the pre-1972 use of PCB oil and that these dislodged PCBs
contaminated the non-PCB oil that then dripped into the berm.
I also note that HTS 975 was equipped with "wet seals" which
could have harbored PCBs until dislodged by the increased
production. Although the probability of both theories is not
without substantial doubt, the second inference appears far
more likely in light of the increased use of the machine and
the quantity of oil that was found to be contaminated by PCBs.
As noted above, the Respondent's claim of a disposal site
exemption has arisen as an affirmative defense in light of the
EPA's demonstration of PCBs at concentrations greater than 50
ppm. I conclude, based on the above discussion, that the
Respondent, lacking direct evidence that the discharge occurred
before February 17, 1978, has not only failed to rule out the
possibility that the uncontrolled discharge occurred after
February 17, 1978, but it has also failed to show that it is
more likely or equally likely that the discharge occurred
before that date. I further conclude that the Respondent has
failed to prove by a preponderance of the evidence that the
spills at issue meet the disposal site exemption. Accordingly,
the "disposal site" exemption is not available to the
Respondent and the EPA has established that the Respondent
violated the PCB disposal regulations as alleged in Count I of
the Complaint.
1994 Proposed PCB Rule
The Respondent contends that the 1994 Proposed PCB Rule
overrules Standard Scrap. I do not agree. First, I note that
the 1994 Proposed Rule does not overrule anything inasmuch as
it is not a final rule and therefore does not have the force
of law. The fact that the EAB and the Federal Circuit Court
for the District of Columbia have recognized the Proposed
Rule's existence (as opposed to its precedential vitality) does
not impart legal authority to it. Standard Scrap's refusal to
include spill sites in the disposal site exemption is valid law
and must direct this inquiry. In addition, I point out that
even if one were to accept the Respondent's rather unlikely
implied argument that the PCBs in the samples were the result
of leaching from historic spills into the concrete, these
spills would still be subject to PCB disposal requirements.
As such, the high PCB concentrations found in the berm oil,
however they got there, clearly establish a violation of the
PCB Regulations under governing precedent.(8)
The Respondent further contends that the 1994 Proposed PCB
Rule was written not only to overrule Standard Scrap but also
to define all pre-February 17, 1978, PCB spills as disposal
sites. The preamble to the 1994 Proposed PCB Rule does support
the Respondent's contention to some extent. In this regard,
I note that in the Proposed Rule the EPA is proposing to delete
the Prefatory Note to Section 761.60, which states that PCBs
disposed of prior to the effective date of the regulations were
considered to be "in use" and therefore did not need to be
cleaned up under the regulations, and to substitute language
on the disposition of PCB waste disposed of before April 18,
1978, as introductory text to Section 761.60. Under this
proposed substituted language, PCBs disposed of, placed in a
land disposal facility, or spilled or otherwise released to the
environment, including areas contaminated by spills and
releases, prior to the effective date of the PCB disposal
regulations on April 18, 1978, would be presumed to be disposed
of in a manner that does not present a risk of exposure, and
would not necessarily require further disposal action.
However, the proposed Rule would allow the Regional
Administrator, on a case-by-case basis, to make a finding that
any pre-April 18, 1978, disposal site does present a risk of
exposure, whether a landfill or a spill. In other words, the
proposed deleted "disposal site" exemption would be replaced
by a rebuttable presumption that a pre-April 18, 1978, disposal
does not present a risk of exposure.
Thus, under the Proposed Rule, although a pre-April 18,
1978, spill would not necessarily require further disposal
action, a pre-April, 18, 1978, PCB disposal in an area set
aside for the disposal of waste could now be subject to the
disposal regulations. Such enlarged coverage of the disposal
rules contradicts the Respondent's assertion that the purpose
of the Proposed Rule was to overrule Standard Scrap. I do not
believe that the Proposed Rule acknowledges that Standard Scrap
had erroneously narrowed the intended meaning and scope of the
"disposal site" exemption as argued by the Respondent. Rather,
the Proposed Rule, as well as enlarging the coverage of the
disposal rules, may well reflect a shift in approach taken by
the EPA to address pre-April 18, 1978, spills so as to create
a rebuttable presumption that there is not a resulting risk and
to place the burden of demonstrating resulting risk on the EPA.
There is no indication in the Proposed Rule that the term
"disposal site" as used in the Prefatory Note ("disposal site"
exemption) was ever intended to include sites where PCBs
happened to be spilled. However, I need not adjudicate this
issue because, as found above, the Proposed Rule has not become
final. I also point out that even if the Proposed Rule were
to become final at some future date, it would not be available
for possible application in this case unless the final
regulation provides a retroactive effective date before the
violation date in this case.
The 1993 Uncontrolled Discharge Precludes any Argument as to
the Applicability of the Statute of Limitations, the PCB
disposal regulations, or the PCB Spill Cleanup Policy
The Respondent correctly points out that the five-year
statute of limitations for federal enforcement actions found
in 28 U.S.C. § 2462 applies to civil administrative enforcement
actions of the EPA. See 3M Co. (Minnesota Mining and
Manufacturing) v. Browner, 17 F. 3d 1453 (D.C. Cir. 1994). In
the instant case, the EPA filed its initial Complaint on
September 23, 1994. In order to fall within the statute of
limitations time period, the violative activity must have
occurred later than September 22, 1989. As discussed earlier,
the Respondent's own admissions and the parties' stipulations
demonstrate that the prohibited PCB levels appeared sometime
in 1993, and this unexplained presence of PCBs is considered
an improper disposal which requires proper disposal under
Section 761.60. Therefore, no statute of limitations concerns
exist.
On this same basis, I reject the Respondent's argument
that the PCB Spill Cleanup Policy and the PCB disposal
regulations do not apply in this case because the uncontrolled
discharge at issue preceded the effective date of that policy
on May 4, 1987, and the effective date of the disposal
regulations on April 18, 1978. Moreover, even if the spill had
been before April 18, 1978, the disposal regulations and
cleanup policy would still be applicable. Standard Scrap at
278; City of Detroit at 517 note 7.
EPA's Interpretation of the PCB Regulation Raises no Due
Process Concerns
The Respondent argues that the EPA's application of the
PCB regulations to the PCB-contaminated berm oil violates the
constitutional prohibition against penalizing parties without
offering them notice of their legal responsibilities.
Specifically, the Respondent argues that the EPA's attempted
assessment of civil penalties for violating the PCB regulations
rises from a novel and strained interpretation of the
regulations of which the Respondent had no notice.
Respondent's Memorandum at 23-25. The Respondent bases its
argument on the alleged ambiguity in the PCB Regulations over
the inclusion of historic spills in the PCB disposal and
cleanup requirements and the subsequent indication in the 1994
Proposed Rule that historic spills are generally excluded. It
claims that such ambiguity and internal EPA inconsistency paint
a confusing and unenlightening picture of the responsibilities
of regulated entities under the PCB regulations. Respondent's
Memorandum at 25.
These contentions are meritless. As discussed earlier,
the Respondent has not met its burden of persuasion in
demonstrating that the contaminated oil was a result of an
historic spill rather than one occurring after February 17,
1978. Even if this were an historic spill, Standard Scrap
clearly put the Respondent on notice that its spill would not
be exempt from the PCB disposal requirements and the PCB
cleanup policy. The fact that the Respondent disagrees with
the CJO's holdings in Standard Scrap and City of Detroit does
not make the EPA's arguments novel or strained. Likewise, the
fact that a Proposed PCB Rule, which deals with pre-April 18,
1978, disposals, was published in 1994 but has not become
final, does not elevate the EPA's arguments that the existing
disposal regulations govern this matter to the level of being
unique.
Conclusion
In the instant matter, there are no genuine issues of
material fact and the EPA is entitled to judgment as a matter
of law on the issue of the Respondent's liability.
The Respondent violated the disposal requirements of the
PCB regulations at 40 C.F.R. § 761.60 when it allowed oil
contaminated with PCBs at concentrations greater than 50 ppm
to pool in the concrete berm beneath the HTS 975. The
Respondent has failed to meet its burden of demonstrating that
the "disposal site" exemption to the application of the PCB
diposal regulations apply in the instant case. The Respondent
therefore is liable for violating 40 C.F.R. § 761.60 and
Section 15 of TSCA as alleged by the EPA in Count I of the
Complaint.
The issue of the amount of penalty to assess for the
violation found herein remains controverted. This proceeding
will continue for purposes of assessment of an appropriate
penalty for the violation.
ORDERS
The EPA's Motion to Amend the Complaint and Prehearing
Memorandum is Granted.
The EPA's Motion for Partial Accelerated Decision as to
Liability is Granted as to the issue of the Respondent's
liability for the one violation alleged in the Complaint.
The Respondent's Motion for Accelerated Decision is
Denied.
The Hearing for the determination of the appropriate
penalty in this matter will be held beginning at 9:30 a.m. on
Wednesday, January 14, 1998, in Boston, Massachusetts,
continuing if necessary on January 15 and 16, 1998. The
Regional Hearing Clerk will make appropriate arrangements for
a courtroom and retain a stenographic reporter. The parties
will be notified of the exact location and of other procedures
pertinent to the hearing when those arrangements are complete.
IF ANY PARTY DOES NOT INTEND TO ATTEND THE HEARING OR HAS
GOOD CAUSE FOR NOT BEING ABLE TO ATTEND THE HEARING AS
SCHEDULED, IT SHALL NOTIFY THE UNDERSIGNED AT THE EARLIEST
POSSIBLE MOMENT.
original signed by undersigned
______________________________
Barbara A. Gunning
Administrative Law Judge
Dated: 11-13-97
Washington, DC
1. The EPA's proposed second amended prehearing memorandum
includes a proposed amended Complainant's Exhibit 15.
2. The term "Presiding Officer" refers to the
Administrative Law Judge designated by the Chief Administrative
Law Judge to serve as the Presiding Officer. 40 C.F.R. §
22.03(a).
3. The Federal Rules of Civil Procedure are not binding on
administrative agencies but many times these rules provide
useful and instructive guidance in applying the Rules of
Practice. See Oak Tree Farm Dairy, Inc. v. Block, 544 F.
Supp. 1351, 1356 n. 3 (E.D.N.Y. 1982); In re Wego Chemical &
Mineral Corporation, TSCA Appeal No. 92-4, 4 EAD 513 at 13 n.
10 (EAB Feb. 24, 1993).
4. The Stipulations by the parties dated July 3, 1997,
state that the Respondent took samples of the oil from within
the bermed area surrounding HTS 975 on December 7, 1993. In
the Respondent's later Response to the Complainant's Motion for
Partial Accelerated Decision, however, the Respondent states
that the December 7, 1993, samples were splits of the December
1, 1993, samples taken by the CT DEP and that such was attested
to by Mr. Gerry Langelier in his October 1, 1997, affidavit,
attached to its Response. Stipulations at ¶ 9.a; Response of
Respondent to Complainant's Motion for Partial Accelerated
Decision ("Respondent's Response") at fn. 1, p.2. The EPA
agrees with the Respondent's statement that the Respondent's
December 7, 1993, samples were splits of the December 1, 1993,
samples taken by the CT DEP. Complainant's Reply Regarding
Motions for Accelerated Decision at 2.
5. This assertion was made by the Respondent's Manager of
Environmental Engineering, William J. Whiteley, in a May 26,
1994, letter to Lori Saliby, Environmental Analyst as CT DEP.
Stipulations at ¶ 19.a., Attachment 6. It has been referenced
by the EPA in the Complainant's Reply at 4, note 3.
6. The term "disposal" is defined as follows:
"Disposal" means intentionally or accidentally to
discard, throw away, or otherwise complete or
terminate the useful life of PCBs and PCB Items.
Disposal includes spills, leaks, and other
uncontrolled discharges of PCBs as well as actions
related to containing, transporting, destroying,
degrading, decontaminating, or confining PCBs and PCB
Items.
40 C.F.R. § 761.3.
7. The disposal site exemption discussed in the prefatory
note to Subpart D of the PCB regulations states in relevant
part:
NOTE: This subpart does not require removal of PCBs
and PCB Items from service and disposal earlier
than would normally be the case. However, when PCBs
and PCB Items are removed from service and disposed
of, disposal must be undertaken in accordance with
these regulations. PCBs (including soils and debris)
and PCB Items which have been placed in a disposal
site are considered to be "in service" for purposes
of the applicability of this subpart.
40 C.F.R. Part 761, Subpart D (prefatory note).
8. The Respondent also attempts to insinuate that the
leaching of PCBs from historic spills is not an act of
disposal, but is rather passive migration of PCBs that should
not subject the Respondent to liability. In order to support
this claim, the Respondent cites federal decisions that
characterize passive migration, in the context of the
Comprehensive Environmental Response, Compensation, and
Liability Act ("CERCLA"), as falling outside the disposal
definition. However, not only are these cases distinguishable
by the fact that they address soil leaching rather than
concrete, they also focus heavily on the purposes of CERCLA to
reach their conclusions, purposes that are not necessarily
present in TSCA. In fact, the focus of these cases on passive
migration directly undermines the Respondent's claim in that
it has already admitted that its increased production from 1992
to 1994 played an active role in the alleged leaching of the
PCBs. See United States v. CDMG Realty Co., 96 F.3d 706, 712-14 (3rd Cir. 1996), ABB Industrial Systems v. Prime Technology,
Inc., 120 F.3d 351, 357-58 (2d Cir. 1997).
![[logo] US EPA](http://www.epa.gov/epafiles/images/logo_epaseal.gif)