Joseph A. PAKOOTAS, an individual and enrolled member of the Confederated Tribes of the Colville Reservation; Donald R. Michel, an individual and enrolled member of the Confederated Tribes of the Colville Reservation; Confederated Tribes of the Colville Reservation, Plaintiffs-Appellees, State of Washington, Intervenor-Plaintiff-Appellee, v. TECK COMINCO METALS, LTD., a Canadian corporation, Defendant-Appellant.
No. 15-35228
United States Court of Appeals, Ninth Circuit
July 27, 2016
Argued and Submitted April 6, 2016 Seattle, Washington
975, 830 F.3d 975
Telephone (415) 964-4445
For Defendant-Appellee Jones Day:
Shay Dvoretzky
Jones Day
51 Louisiana Ave., N.W.
Washington, D.C. 20001
Telephone (202) 879-3939
For Defendant-Appellee Orrick, Herrington & Sutcliffe LLP:
Eric A. Shumsky
Orrick, Herrington & Sutcliffe LLP
Columbia Center
1152 15th Street, N.W.
Washington, D.C. 20005
Telephone (202) 339-8400
Rachel Wainer Apter
Christopher J. Cariello
Orrick, Herrington & Sutcliffe LLP
51 West 52nd Street
New York, New York 10019
Telephone (212) 506-5000
Pamela Phillips
Jonathan W. Hughes
Arnold & Porter LLP
Three Embarcadero Center, 10th Floor
San Francisco, California 94111
Telephone (415) 471-3100
CERTIFICATION REQUESTED;
SUBMISSION VACATED.
See also 646 F.3d 1214, 452 F.3d 1066.
Paul J. Dayton (argued) and Brian S. Epley, Short Cressman & Burgess PLLC, Seattle, Washington, for Plaintiffs-Appellees.
Andrew A. Fitz (argued), Senior Counsel; Robert W. Ferguson, Attorney General of Washington; Washington State Attorney General‘s Office, Olympia, Washington, for Intervenor-Plaintiff-Appellee.
Harold G. Bailey, Jr., Eldon V. C. Greenberg, and Richard A. Wegman; Gar-
William M. Jay, Michael S. Giannotto and Andrew Kim, Goodwin Procter LLP, Washington, D.C.; Jaime A. Santos, Goodwin Procter LLP, Boston, Massachusetts; Leslie A. Hulse, American Chemistry Council, Washington, D.C.; Tawny A. Bridgeford, National Mining Association, Washington, D.C.; Steven P. Lehotsky and Sheldon B. Gilbert, U.S. Chamber Litigation Center, Washington, D.C.; Quentin Riegel, Manufacturers’ Center for Legal Action, Washington, D.C.; for Amici Curiae National Mining Association, Chamber of Commerce of the United States of America, National Association of Manufacturers and American Chemistry Council.
David S. Gualtieri (argued); John C. Cruden, Assistant Attorney General; Environment and Natural Resources Division, United States Department of Justice, Washington, D.C., for Amicus Curiae United States of America.
Kamala D. Harris, Attorney General of California; Sally Magnani, Senior Assistant Attorney General; Margarita Padilla, Supervising Deputy Attorney General; Timothy E. Sullivan and Dennis L. Beck, Jr., Deputy Attorneys General; Office of the California Attorney General, Sacramento, California; for Amicus Curiae California Department of Toxic Substances Control.
Before: MICHAEL DALY HAWKINS, JOHNNIE B. RAWLINSON, and CONSUELO M. CALLAHAN, Circuit Judges.
OPINION
HAWKINS, Circuit Judge:
When a smelter emits lead, arsenic, cadmium, and mercury compounds through a smokestack and those compounds contaminate land or water downwind, can the owner-operator of the smelter be held liable for cleanup costs and natural resource damages under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA“),
I. Background
The history of legal disputes over damage caused in the State of Washington by emissions of toxic chemicals from Defendant Teck Cominco Metals, Ltd.‘s (“Teck“s“) smelter, located ten miles north of the U.S.-Canada border in Trail, British Columbia, stretches back almost 100 years.1 The emissions-based claim in this lawsuit is only the latest chapter in the saga.
This particular lawsuit initially focused on a different form of waste disposal: Teck‘s dumping of slag into the Columbia River. The early procedural history of the “river pathway” claims in this lawsuit was recounted in prior appeals and is not repeated here. Pakootas v. Teck Cominco Metals, Ltd., 646 F.3d 1214, 1216 (9th Cir. 2011) (“Pakootas II“); Pakootas v. Teck
While Phase I was ongoing, Plaintiff the Confederated Tribes of the Colville Reservation and Plaintiff-Intervenor the State of Washington (collectively, “Plaintiffs“) sought leave to file a third amended complaint to add a new CERCLA claim, alleging that, in addition to dumping hazardous substances into the river, Teck also emitted hazardous substances into the air. Those substances were carried by air currents to the Upper Columbia River Site (“UCR Site“), including “upland” areas of the UCR Site.3 The district court initially denied the motion as untimely. However, after the Phase I trial was completed, the district court changed its position and allowed Plaintiffs to amend their complaints to add claims for cost recovery and natural resource damages resulting from Teck‘s aerial emissions.
Plaintiffs’ fourth amended complaints allege:
From approximately 1906 to the present time, Teck Cominco emitted certain hazardous substances, including, but not limited to, lead compounds, arsenic compounds, cadmium compounds and mercury compounds into the atmosphere through the stacks at the Cominco
Smelter. The hazardous substances, discharged into the atmosphere by the Cominco Smelter travelled through the air into the United States resulting in the deposition of airborne hazardous substances into the Upper Columbia River Site.
The environmental impact of the air emissions are described thus:
Over time significant volumes of Teck Cominco‘s slag, liquid waste and air emissions, and the hazardous substances contained therein, have come to be located in, and cause continuing impacts to, the surface water and ground water, sediments, upland areas, and biological resources which comprise the Upper Columbia River Site.
Evidence shows that the physical and chemical decay of slag, the settling of metals associated with liquid waste, the deposition of air emissions, and the subsequent release of elements including, but not limited to, arsenic, cadmium, copper, zinc, and lead, is an ongoing process in the buried slag, sediment and soils of the Upper Columbia River Site.
....
Humans are exposed to slag and contaminated sediment by direct contact with slag on the beaches of the Upper Columbia River and Lake Roosevelt, contact with contaminated sediment during low draw down periods, inhalation of
airborne particles, dermal contact, and ingestion. In addition, humans are exposed from ingestion of water from the Upper Columbia River or Lake Roosevelt and through consumption of fish, aquatic resources, native plants, and agricultural crops.
Environmental effects of slag include both chemical (increased metal loads, potential bioaccumulation, toxicity problems in biota) and physical (scouring of plants and animals in substrates, severe erosion of fish gills, smothering of habitat) components.
(Paragraph numbers omitted.).
Teck moved to strike or dismiss these claims on the ground that CERCLA imposes no liability when hazardous substances travel through the air and then “into or on any land or water” (as opposed to when hazardous substances are directly deposited into or on land or water and are then emitted into the air). The district court rejected Teck‘s argument and denied the motion.
One month later, the Ninth Circuit issued Center for Community Action & Environmental Justice v. BNSF Railway Co., 764 F.3d 1019, 1023-24 (9th Cir.2014), which held that emitting diesel particulate matter into the air and allowing it to be “transported by wind and air currents onto the land and water” did not constitute “disposal” of waste within the meaning of the Resource Conservation and Recovery Act (“RCRA“). Teck filed a motion for reconsideration, arguing that Center for Community Action foreclosed Plaintiffs’ air pathway claims because CERCLA cross-references RCRA‘s definition of “disposal.” The district court denied the motion on the ground that the actionable CERCLA “disposal” in this case occurred when the hazardous substances emitted by Teck entered the land or water at the UCR Site, not when the substances were initially released into the air. However, recognizing that “[i]n over 30 years of CERCLA jurisprudence, no court has impliedly or expressly addressed the issue of whether aerial emissions leading to disposal of hazardous substances ‘into or on any land or water’ are actionable under CERCLA,” the district court certified the question for interlocutory appeal. We granted permission to appeal and now reverse and remand.
II. Standard of Review
A district court‘s denial of a
III. Discussion
A. Principles of Statutory Interpretation
Statutory interpretation begins with the text of the statute. Unless a statute provides an explicit definition, we generally give words “their ordinary, contemporary, common meaning.” Chubb Custom Ins. Co. v. Space Sys./Loral, Inc., 710 F.3d 946, 958 (9th Cir. 2013) (internal quotation marks omitted). If the meaning of the text is unambiguous, the statute must be enforced according to its terms. “[W]hen deciding whether the language is plain, we must read the words in their context and with a view to their place in the overall statutory scheme.” King v. Burwell, 135 S. Ct. 2480, 2489 (2015) (internal quotation marks omitted). “Reviewing the whole statutory scheme is particularly important for a law such as CERCLA, which is a
B. CERCLA: Statutory Text and Framework
“CERCLA sets forth a comprehensive scheme for the cleanup of hazardous waste sites....” Pakootas I, 452 F.3d at 1072. The statute has two primary goals: “(1) to ensure the prompt and effective cleanup of waste disposal sites, and (2) to assure that parties responsible for hazardous substances bear the cost of remedying the conditions they created.” Chubb Custom, 710 F.3d at 968 (alteration omitted) (quoting City of Los Angeles v. San Pedro Boat Works, 635 F.3d 440, 447 (9th Cir. 2011)).
CERCLA does not set forth its own definition of “disposal,” the key word at issue in this case. Rather, it cross-references RCRA‘s.
the discharge, deposit, injection, dumping, spilling, leaking, or placing of any solid waste or hazardous waste into or on any land or water so that such solid waste or hazardous waste or any constituent thereof may enter the environment or be emitted into the air or discharged into any waters, including ground waters.
The word “disposal” and derivations thereof (“disposing,” “disposed“) appear in several places in CERCLA. In order to prevail in a private action under CERCLA for response costs or natural resource damages, a plaintiff must prove the following elements, among others:
- the site on which the hazardous substances are found is a “facility” within the meaning of CERCLA,
42 U.S.C. § 9601(9) ; - a “release” or “threatened release” of any “hazardous substance” from the facility has occurred,
42 U.S.C. § 9607(a)(4) ; and - the defendant is within one of the four broad classes of “potentially responsible parties” (“PRPs“) listed in
42 U.S.C. § 9607(a)(1) -(4).
3550 Stevens Creek Assocs. v. Barclays Bank of Cal., 915 F.2d 1355, 1358 (9th Cir.1990).4
A “facility” is defined in relevant part as “any site or area where a hazardous substance has been deposited, stored, disposed of, or placed, or otherwise come to be located.”
A “release” is defined as
any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the environment (including
the abandonment or discarding of barrels, containers, and other closed receptacles containing any hazardous substance or pollutant or contaminant) ....
The four PRP classes are:
- the owner and operator of a vessel or a facility,
- any person who at the time of disposal of any hazardous substance owned or operated any facility at which such hazardous substances were disposed of,
- any person who by contract, agreement, or otherwise arranged for disposal or treatment, or arranged with a transporter for transport for disposal or treatment, of hazardous substances owned or possessed by such person, by any other party or entity, at any facility or incineration vessel owned or operated by another party or entity and containing such hazardous substances, and
- any person who accepts or accepted any hazardous substances for transport to disposal or treatment facilities, incineration vessels or sites selected by such person ....
CERCLA allows a number of affirmative defenses. Two of them, the “innocent landowner defense” and the “bona fide prospective purchaser defense,” protect facility owners5 from liability if they can prove, inter alia, that they did not acquire the facility until after the “disposal” of hazardous substances at the facility.6
In sum, the word “disposal” appears in the definitions of “facility” and “release,” the definitions of three of the four PRP classes, and the innocent landowner and bona fide prospective purchaser defenses. Our interpretation of “disposal” for purposes of determining whether Teck can be held liable for arranging the disposal of
C. Whether Teck Arranged for “Disposal”
Plaintiffs argue that they have properly alleged the “deposit” of hazardous substances into the land or water at the UCR Site,7 one of the verbs used to define “disposal.”
Plaintiffs’ “aerial deposition” theory appears to depend on Teck allowing hazardous substances to be “deposit[ed]” at the UCR Site by the wind, as opposed to Teck directly depositing hazardous substances there.8 The dictionary definitions cited by Plaintiffs all refer to natural forces slowly depositing layers of dirt or mud over time. For example, American Heritage Dictionary defines “deposit,” in relevant part, as “[t]o put or set down; place” or “[t]o lay down or leave behind by a natural process: layers of sediment that were deposited on the ocean floor; glaciers that deposited their debris as they melted.” Deposit, The American Heritage Dictionary, https://www.ahdictionary.com/ (search for “deposit“) (last visited Mar. 24, 2016). Merriam-Webster defines “deposit” as “to lay down” or “to let fall (as sediment),” as in “layers of mud deposited by flood waters.” Deposit, Merriam-Webster, http://www.merriam-webster.com (search for “deposit“) (last visited Mar. 24, 2016). Oxford Dictionaries
defines “deposit” as “(Of water, the wind, or other natural agency) lay down (matter) gradually as a layer or covering,” as in “beds where salt is deposited by the tide.” Deposit, Oxford Dictionaries, http://www.oxforddictionaries.com/us/definition/american_english/deposit (last visited Mar. 24, 2016).
Plaintiffs’ interpretation appears a reasonable enough construction of
Center for Community Action, which involved essentially the same facts as this case, see 764 F.3d at 1021 (alleging emission of hazardous substances into the air, some of which was directly inhaled before
Plaintiffs have offered no persuasive argument to distinguish either Carson Harbor or Center for Community Action. We agree with Plaintiffs that Center for Community Action‘s interpretation of “disposal” for RCRA purposes does not absolutely foreclose a different interpretation of “disposal” for CERCLA purposes,9 but the reasoning behind Center for Community Action‘s textual analysis is persuasive. Similarly, Carson Harbor addressed former owner liability under
emissions as a form of disposal. In contrast, Plaintiffs’ interpretation of “deposit” seems to be inconsistent with the rest of CERCLA in the same way identified as problematic by Carson Harbor if “aerial depositions” are accepted as “disposals,” “disposal” would be a never-ending process, essentially eliminating the innocent landowner defense. 270 F.3d at 882-83.
Given that the language of CERCLA is not a model of precise crafting, id. at 883 (“[N]either a logician nor a grammarian will find comfort in the world of CERCLA.“), we ordinarily would refer to legislative history to help us interpret the statutory language. Tides v. The Boeing Co., 644 F.3d 809, 814 (9th Cir.2011) (“If the statutory language is ambiguous ... we may refer to legislative history to discern congressional intent.“). However, the legislative history of CERCLA is not particularly helpful in this case. Although that history makes clear that CERCLA was intended to be construed expansively, see United States v. W.R. Grace & Co., 429 F.3d 1224, 1240-41 (9th Cir.2005), it sheds no light on the question before us because Congress did not appear to consider a fact pattern like this one.11
Neither has intervening en banc or Supreme Court authority cast the reasoning behind Center for Community Action or Carson Harbor in doubt. In this situation, “[a]n appellate panel simply cannot modify an En banc decision,” Osband v. Woodford, 290 F.3d 1036, 1043 (9th Cir.2002) (quoting Ewing v. Williams, 596 F.2d 391, 397 (9th Cir.1979)), and there is no compelling reason to abandon a prior panel‘s construction, see Miller v. Gammie, 335 F.3d 889, 899-900 (9th Cir.2003) (a three-judge panel ordinarily cannot overrule a prior panel‘s holding unless its reasoning is inconsistent with the reasoning behind an intervening decision by a court of last resort).
IV. Conclusion
While Plaintiffs present an arguably plausible construction of “deposit” and “disposal,” Carson Harbor compels us to hold otherwise, and while Center for Community Action does not totally foreclose Plaintiffs’ interpretation of CERCLA, its textual analysis of
REVERSED AND REMANDED.
Notes
....Congress has never said or suggested that a Federal permit amounts to a license to create threats to public health or the environment with legal immunity. However, in view of the large sums of money spent to comply with specific regulatory programs, liability for federally permitted releases ought to be determined based on the facts of each individual case. Therefore, the Stafford-Randolph substitute [bill] authorizes response to federally permitted releases, but requires costs to be assessed against the permit holder under the liability provisions of other laws, not this bill.
126 Cong. Rec. 30,897, 30,932-33 (Nov. 24, 1980) (statement of Sen. Randolph).While the exemptions from liability for federally permitted releases are provided to give regulated parties clarity in their legal duties and responsibilities, these exemptions are not to operate to create gaps in actions necessary to protect the public or the environment.
