United States v. Steven M. SelfUnited States v. Steven M. Self
Defendant Steven M. Self appeals his convictions on four counts of violating the Resource Conservation and Recovery Act (“RCRA”),
I.
The record reveals the following facts. In 1981, Defendant and Steven Miller formed EkoTek, Inc. Defendant provided most of the capital and became an 85% shareholder and EkoTek’s President. Miller held the remaining 15% of the stock and became Vice-President. EkoTek purchased an industrial facility in Salt Lake City, Utah. Us
The facility purchased by EkoTek was an authorized RCRA interim status treatment, storage and disposal facility.
See
In April 1987, a representative of Southern California Gas Company (“SCGC”), met with Miller at EkoTek and discussed EkoTek disposing of SCGC’s natural gas pipeline condensate. The parties agreed that the condensate was hazardous waste and should, therefore, be transported and handled under a RCRA manifest. Miller indicated that Ek-oTek could dispose of the natural gas condensate by burning it as fuel in EkoTek’s onsite process heaters or boilers. SCGC subsequently contracted with and agreed to pay EkoTek “to transport, burn, and/or dispose of’ natural gas condensate for $2.50 per gallon.
Shortly thereafter, an EkoTek tanker truck driver picked up a shipment of natural gas condensate from a SCGC facility in Los Angeles, California. The driver had been instructed by his supervisor to pick up the shipment and bring it back to EkoTek. As was his routine practice, the driver stopped at a gas station in Barstow, California, which was owned by Defendant, and telephoned his supervisor. On instructions from Defendant, the supervisor told the driver to leave the trailers containing the natural gas condensate at the gas station and return to Los Angeles to pick up an unrelated shipment. Defendant telephoned the gas station manager and instructed him to blend the natural gas condensate with gasoline in a 5-10% mixture and add an octane booster. The gasoline and condensate mixture was then sold to the public as automotive fuel. On Defendant’s instructions, Miller told Eko-Tek’s Refinery Operations Manager to sign the manifest to indicate that the natural gas condensate shipment had been received at EkoTek and to falsify EkoTek’s operating log accordingly. A copy of the manifest was mailed to SCGC.
In early 1987, EkoTek began receiving fifty-five gallon drums of waste material from different sources. Defendant instructed an employee to store the drums in the south warehouse. When the south warehouse filled up, Defendant instructed the employee to store the drums in the east warehouse. The employee was also instructed by his immediate supervisor to scrape the “hazardous waste” label off of each drum, paint a number on the drum, and list it on an inventory sheet. In July 1987, the State of Utah, pursuant to its delegated RCRA authority,
see
Among the drums stored in the east warehouse were seventeen drums of waste from Avery Label and twelve drums of waste from Reynolds Metals both of which were shipped to EkoTek under RCRA manifests identifying the materials as hazardous wastes. Avery Label’s manager of safety and environmental affairs testified that the waste sent to EkoTek was a mixture of ultraviolet
The RCRA manifest which accompanied the shipment of the Reynolds Metals waste to EkoTek indicated that the material was a mixture of “MEK” (methyl ethyl ketone) and a spray residue. MEK is a listed hazardous waste,
see
In April 1988, the hazardous waste broker responsible for shipping both the Avery Label and Reynolds Metals wastes to EkoTek visited the EkoTek facility after having been informed that drums of waste which he brokered had never been processed and were being illegally stored at the facility. By this time, EkoTek was no longer in business, and Petro Chemical Recycling, with which Defendant had no affiliation, had taken over operation of the facility. The broker observed “a lot of drums” being stored in the east warehouse, none of which were labeled but were crudely marked with a number. Using Eko-Tek’s inventory sheet and recognizing the drums by their distinctive color, the broker identified the seventeen drums of Avery Label waste and the twelve drums of Reynolds Metals waste. He subsequently arranged for Marine Shale Processors to dispose of these as well as several other drums of waste. On documentation submitted to Marine Shale Processors, the broker indicated that the materials were from four types of waste streams, and he identified the material in twenty-four of the 128 barrels as “UV ink waste.” Marine Shale Processors tested a sample from each of the four types of waste streams and determined that each type of identified waste had a flash point below 70° F.
II.
With regard to the substantive RCRA counts and the mail fraud count relating to the diversion of the natural gas condensate to the Barstow gas station (counts 2, 3, 4 and 7), Defendant argues that natural gas condensate, when burned for energy recovery, is not a hazardous waste subject to regulation under RCRA. Therefore, Defendant claims the district court erred by denying Defendant’s pretrial motion to dismiss, by denying Defendant’s motion for a judgment of acquittal, and in its instruction to the jury defining hazardous waste. Because this issue is a question of law, our review is de novo.
United States v. Deffenbaugh Indus., Inc.,
A.
RCRA defines “hazardous waste,” in relevant part as “a solid waste, or combination of solid wastes, which because of its quantity, concentration, or physical, chemical, or infectious characteristics may ... pose a substantial present or potential hazard to human health or the environment when improperly treated, stored, transported, or disposed of, or otherwise managed.”
RCRA defines “solid waste” to include “any ... discarded material, including ... liquid ... material resulting from industrial, commercial, mining, and agricultural operations, and from community activities....”
1
RCRA regulations define “discarded material” to include material which is “[a]ban-doned” or “[rjecycled.”
2
The only type of material which is considered solid waste when it is recycled by being burned for energy recovery and which might encompass natural gas condensate is a “[byproduct exhibiting a characteristic of hazardous waste.”
5
See
Off-specification fuels burned for energy recovery ... are not by-products, and so would not be considered to be wastes under this provision. An example [is] natural gas pipeline condensate. The condensate contains many of the same hydrocarbons found in liquefied natural gas, and certain higher hydrocarbons that also have energy value. It is generated in the pipeline transmission of natural gas. This condensate is not considered to be waste when burned for energy recovery. 6
50 Fed.Reg. 630 n. 18 (Jan. 4, 1985). Relying on this EPA statement, Defendant argues that so long as natural gas condensate is burned for energy recovery, it is not a byproduct and, therefore, not a discarded material by virtue of being recycled, and, therefore, not a solid waste, and, therefore, not a hazardous waste under RCRA.
The government argued below and continues to argue on appeal that natural gas condensate is hazardous waste if it is used in a manner which was not the original intended manner or normal intended use for that material within the industry.
7
In support of this argument, the government first directs us to the EPA’s long-standing distinction between legitimate and sham burning for energy recovery.
See
50 Fed.Reg. 630 (Jan. 4, 1985); 48 Fed.Reg. 14,482 (Apr. 4, 1983); 48 Fed.Reg. 11,157-58 (Mar. 16, 1983); 45 Fed.Reg. 33,093 (May 19, 1980). The government then points to an EPA comment stating that commercial chemical products when burned for energy recovery are considered solid wastes because this is a manner of recycling which differs from their normal manner of use.
See
50 Fed.Reg. 618 (Jan. 4, 1985). Next, the government relies on an EPA statement that the status of “non-listed commercial chemical products ... would be the same as those listed in
By focusing on the EPA distinction between legitimate and sham burning for energy recovery, the government appears to be arguing that the natural gas condensate was not recycled within the meaning of the regulations and, therefore, was abandoned by being burned or incinerated. This distinction would undermine Defendant’s argument be
1.
The legitimate versus sham distinction first arose in 1980 when the EPA defined “solid waste” to include “materials which have served their original intended purpose and are sometimes discarded.” 45 Fed.Reg. 33,093 (May 19, 1980). See also 48 Fed.Reg. 14,475 (Apr. 4, 1983). Under this definition, “virtually all ... secondary materials” were considered solid wastes. 50 Fed.Reg. 618 (Jan. 4, 1985). However, the EPA exempted from regulation all recycling activity and the transportation and storage of non-sludges and non-listed hazardous waste which were recycled, see 48 Fed.Reg. 11,157 (Mar. 16, 1983); 45 Fed.Reg. 33,105 (May 19, 1980), and recognized that “burning of hazardous wastes as fuels can be a type of recycling activity exempted from regulation.” 48 Fed.Reg. 11, 157-58 (Mar. 16, 1983). Expressing concern about, inter alia, the “burning of organic wastes that have little or no heat value in industrial boilers under the guise of energy recovery,” 45 Fed.Reg. 33,093 (May 19, 1980), the EPA adopted a policy that in order to fall within the exemption, the burning must “constitute legitimate, and not sham, recycling.” 48 Fed.Reg. 11,158 (Mar. 16, 1983); see also 45 Fed.Reg. 33,093 (May 19, 1980) (recognizing exemption as “temporary deferral” and noting that it “is confined to bona fide ‘legitimate’ and ‘beneficial’ uses and recycling of hazardous wastes”).
In 1985, the EPA amended its regulatory definition of “solid waste” to substantially its present form which asks “both what a material is and how it is being recycled before knowing whether it is a solid waste.” 50 Fed.Reg. 616 (Jan. 4, 1985). Following the 1985 amendment, the EPA’s distinction between legitimate and sham burning became significant, not only by continuing to determine the applicability of the recycling exemption, but also by determining whether a material is being burned or incinerated — ie. burned for destruction — and, therefore, abandoned, or is being burned for energy recovery and, therefore, recycled. See id. at 630.
Contrary to the government’s argument, the EPA has never distinguished legitimate from sham burning for energy recovery based on whether the burning was the original intended use or normal manner of use of the material within the industry. The “primary” factor in distinguishing legitimate from sham burning for energy recovery is “the energy value of the hazardous waste being ... burned.” 48 Fed.Reg. 11,158 (Mar. 16, 1983);
see also
56 Fed.Reg. 7183 (Feb. 21, 1991) (“5,000 BTU/lb limit generally considered heretofore to be the minimum for a legitimate hazardous waste fuel”); 50 Fed.Reg. 630 (Jan. 4, 1985) (“burning of low energy hazardous wastes as alleged fuels is not considered to be burning for legitimate energy recovery”). As the EPA stated, “[i]f the wastes being burned have only
de mini-mus
energy value, the burning cannot recover sufficient energy to characterize the practice as legitimate recycling.... [T]he wastes, for practical purposes are being burned to be destroyed.” 48 Fed.Reg. 11,
The government’s reliance on the EPA statement that commercial chemical products, when burned for energy recovery, are solid wastes because this manner of recycling differs from their normal manner of use is completely misplaced. In this statement, the EPA was not distinguishing legitimate from sham recycling methods. Rather, the EPA was explaining its rationale for classifying commercial chemical products as solid waste when they are recycled by being burned for energy recovery. Specifically, the EPA stated that
Although [commercial chemical products] ... ordinarily are not wastes when recycled ... we are including them as' wastes when they are recycled in ways that differ from their normal manner of use, namely, when they are used in a manner constituting disposal, or when they are burned for energy recovery (assuming these materials are neither a pesticide nor a commercial fuel).
50 Fed.Reg. 618 (Jan. 4, 1985) (internal citation omitted). This EPA comment merely explains why the EPA considers commercial chemical products which are legitimately recycled by being burned for energy recovery to be solid wastes even though commercial chemical products which are recycled by other methods, namely reclamation and speculative accumulation, are not considered solid wastes.
See
2.
Alternatively, the government suggests that natural gas condensate is a commercial chemical product (albeit an unlisted one), and, under the EPA’s policy treating unlisted commercial chemical products like listed commercial chemical products, is a solid waste even if it is legitimately burned for
First, only listed commercial chemical products are considered solid wastes when burned to recover energy,
see
In addition to natural gas condensate not being listed as a commercial chemical product, the government’s own expert testimony at trial belies the government’s contention on appeal that natural gas condensate is a commercial chemical product. The EPA has defined “commercial chemical product” as “a chemical substance which is manufactured or formulated for commercial or manufacturing use which consists of the commercially pure grade of the chemical, any technical grades of the chemical that are produced or marketed, and all formulations in which the chemical is the sole active ingredient.”
The government’s characterization of natural gas condensate as a commercial chemical product cannot be reconciled with other EPA interpretations of the regulatory definition of solid waste. Notably, the EPA stated that burning commercial chemical products for energy recovery is never the normal use of such products. 50 Fed.Reg. 618 (Jan. 4, 1985). Accordingly, commercial chemical products which are burned for energy recovery are always considered solid wastes.
See
Finally, to support its suggestion that natural gas condensate is an unlisted commercial chemical product, the government directs us to a 1991 EPA comment which characterizes natural gas condensate as an “off-specification commercial chemical product that has some BTU value.” 56 Fed.Reg. 7184 (Feb. 21, 1991). In this comment, the EPA specifically stated that “if ignitable off-specification natural gas condensate is burned as motor fuel ... such material! ] [is] solid and hazardous waste[ ] and subject to subtitle C controls ... because the mode of burning is not at all like these materials’ original intended use.”
Id.
According to the government, this statement “simply added further clarification to
We do not read the 1991 comment as a mere clarification of an already existing EPA regulatory policy. For reasons already stated, the classification of natural gas condensate as an unlisted commercial chemical product is inconsistent with the EPA’s earlier statement concerning the status of natural gas condensate.
See
50 Fed.Reg. 630 n. 18 (Jan. 4, 1985). The 1991 comment clearly amended the EPA’s policy with respect to natural gas condensate so as to bring Defendant’s conduct within the purview of the regulatory scheme underlying the instant criminal charges. Given that the conduct at issue occurred in 1987, to permit the government to rely on the 1991 comment would run afoul of the Due Process Clause.
See Cox v. Louisiana,
In short, other than a 1991 EPA comment which we view as inapplicable to this case because it substantively amended the EPA’s interpretation of the regulations well after the date of the charged offense, the government’s argument that natural gas condensate is a solid waste if it is “used in a manner which was not the original intended manner or normal intended use for that material within the industry” has no support in the statutory or regulatory scheme. On the other hand, Defendant’s argument is consistent with the statutory and regulatory scheme, and is clearly supported by the EPA’s statement that natural gas condensate when burned for energy recovery is not a solid waste. In light of this construction of the regulatory scheme by the EPA, we agree with Defendant that, under the EPA’s interpretation of the regulations in effect as of 1987, natural gas condensate is not a hazardous waste subject to RCRA regulation when it is burned for energy recovery, which includes burning it as automotive fuel. 10
B.
Defendant claims that, because natural gas condensate burned for energy recovery is not a RCRA hazardous waste, counts 2, 3, 4 and 7 were “fatally defective as a matter of law” and “should have been dismissed before trial.” We disagree. Each of these counts alleged that the natural gas condensate was a hazardous waste. Whether the natural gas condensate was a RCRA hazardous waste was dependant on the factual question of whether the natural gas condensate was burned for energy recovery. A district court may not resolve evidentiary issues on a motion to dismiss.
See United States v. Knox,
C.
Defendant also argues that the district court erred by denying his motion for a judgment of acquittal on counts 2, 3, 4 and 7, due to the government’s failure to prove that the natural gas condensate was RCRA hazardous waste. The government’s theory at trial was that the natural gas condensate was
1.
Count 2 charged a violation of
2.
Count 3 charged a violation of
SCGC erroneously believed (which we understand) that the natural gas condensate was a hazardous waste and, therefore, prepared a manifest for the shipment. SCGC was only required to ship the natural gas condensate under a RCRA manifest if it was, in fact, hazardous waste.
See
3.
Count 4 was also charged under
To convict Defendant under
While EkoTek was required to keep an operating log, it was only required to record receipt of hazardous wastes in the log.
See
4.
Count 7 charged a violation of
D.
With respect to counts 2, 3, 4 and 7 Defendant also claims that the district court’s instruction to the jury concerning whether natural gas condensate was hazardous waste was erroneous, and that the district court erred by not allowing him to present expert testimony concerning the regulatory status of natural gas condensate in order to refute the government’s expert. In light of our holding that counts 2, 3 and 7 must be reversed due to the government’s failure to prove that the natural gas condensate was hazardous waste,
As our earlier discussion indicates, the district court’s instruction was erroneous because it defined natural gas condensate as hazardous waste unless used in its originally intended manner or in a manner normally intended in the industry. Moreover, in light of our construction of the regulatory definition of hazardous waste, there was no need for either the government or Defendant to present expert testimony concerning natural gas condensate’s normal manner of use within the petroleum industry. Nonetheless, an erroneous jury instruction or an erroneous evidentiary ruling requires reversal only if the error is prejudicial.
See United States v. Caro,
III.
Count 8 stems from the storage of the seventeen drums of Avery Label waste and the twelve drums of Reynolds Metals waste in the EkoTek’s east warehouse. This count charged a violation of
A.
In reviewing the sufficiency of the evidence, we view the evidence in a light most favorable to the government to determine whether “any rational trier of fact could have found the essential elements of the crime beyond a reasonable doubt.”
Jackson v. Virginia,
1.
Count 8 required the government to prove that the material was hazardous waste identified or listed under subehapter III of RCRA.
See
Defendant’s primary contention is that the government failed to present any reliable test data concerning the Avery Label or Reynolds Metals waste. As to the test results from Marine Shale Processors which indicated a flash point of below 140° F, Defendant accurately points out that they were not based on an EPA-approved test method
While an EPA-approved test of the material would have been persuasive evidence as to whether the material was hazardous waste, the government was not required to prove this element through test data.
See United States v. Baytank, Inc.,
The government proved that the material was hazardous waste through the testimony of the Avery Label and Reynolds Metals representatives and the hazardous waste broker. Both representatives identified the manifests which indicated that the materials were hazardous wastes. The Reynolds Metals representative testified that the waste included MEK which is a hazardous waste regardless of its ignitability when combined with other materials. The Avery Label representative identified the specific composition of the waste as solvent ink, ultraviolet curer ink and cleaning solvent. The Material Data Safety Sheets for solvent inks used by Avery Labels in 1987 indicated a flash point of well below 140° F.
See Dee,
2.
Defendant also claims that the evidence was insufficient to establish that he had the requisite knowledge for a criminal violation under
There was substantial evidence that Defendant knew hazardous waste was being stored in the east warehouse in violation of Eko-Tek’s RCRA permit. Testimony from both Miller and the EkoTek employee responsible for unloading and storing drums of hazardous waste and keeping the inventory clearly established that Defendant directed the storage of hazardous waste in the east warehouse. Miller also testified that he specifically discussed this illegal storage practice with Defendant. Defendant signed the RCRA permit applications which did not seek authorization to store hazardous waste in the east warehouse. Furthermore, in a RCRA criminal prosecution, “[t]he government may prove guilty knowledge by circumstantial evidence.”
United States v. Hayes Int'l Corp.,
Nevertheless, Defendant argues that the evidence is insufficient for the jury to infer that Defendant knew of the east warehouse storage of the specific twenty-nine drums at issue in count 8. Defendant relies on the First Circuit’s language in
MacDonald & Watson,
to support his claim that the evidence regarding his knowledge of the specific twenty-nine drums was insufficient. In
MacDonald & Watson,
the court recognized that “[sjimply because a responsible corporate officer believed that on a prior occasion illegal transportation occurred, he did not necessarily possess knowledge of the violation charged.”
In
Greer,
the Eleventh Circuit held that the evidence was sufficient to prove that the defendant knowingly disposed of hazardous waste despite the fact that there was no evidence that the defendant told his employee to dump the particular load of hazardous waste at issue.
In our view, the evidence in this case was sufficient for the jury to infer that Defendant knew of the storage of the Avery Label and Reynolds Metals waste in the east warehouse and knew that such storage violated Eko-Tek’s RCRA permit. There was direct evidence that Defendant had knowledge of prior illegal storage, and Defendant directed his employee to store hazardous waste in the east warehouse. The jury could infer from Defendant's overseeing of the bills that he knew about the particular waste at issue in count 8. Certainly, the government may “prove a defendant had actual knowledge of a material and operative fact by proving deliberate acts committed by the defendant from which actual knowledge can be logically inferred.”
United States v. Uresti-Hernandez,
Even if we were not convinced that there was sufficient evidence for the jury to infer that Defendant actually knew about the illegal storage of the Avery Label and Reynolds Metals waste, we can affirm Defendant’s conviction on an alternative ground. Defendant overlooks the fact that count 8 was charged, and the jury was instructed, under an aiding and abetting theory, and the jury was also instructed on a
Pinkerton
theory.
See Pinkerton v. United States,
To prove that Defendant aided and abetted the illegal storage charged in count 8, the government is required to prove that someone committed the underlying substantive
The evidence of Miller’s commission of the substantive offense also supports Defendant’s conviction under a Pinkerton theory. The indictment clearly indicated that Miller was a coconspirator, albeit an unindicted one, and clearly charged that the illegal storage of hazardous waste in the east warehouse as an object of the conspiracy. Defendant does not even challenge on appeal the sufficiency of the evidence to support his conspiracy conviction. Accordingly, given that Miller’s acts relating to the storage of the Avery Label and Reynolds Metals waste were in the course of and in furtherance of the conspiracy, Defendant can be held criminally responsible for these acts.
B.
Defendant also claims that the district court’s jury instruction concerning Defendant’s knowledge that the material was hazardous waste was erroneous. The district court instructed the jury as follows:
That on or about the dates alleged in the Indictment, the defendant knowingly stored or commanded and caused others to store hazardous waste. The defendant need have no specific knowledge of the particular hazardous characteristics of the material in question, only that it was hazardous waste and not a benign or innocuous material such as water.
Defendant objected to this instruction claiming that the instruction should require the jury to find that Defendant knew the waste was an identified or listed hazardous waste under RCRA. Defendant reasserts this same argument before us.
We review the propriety of tendering an individual jury instruction de novo.
United States v. Harmon,
Defendant points to the language of the statute which proscribes
“knowingly ...
stor[ing] ... any hazardous waste identified or listed under this subehapter ... in
knowing
violation of any material condition or requirement of [a RCRA] permit.”
Whether
These courts have generally relied on the Supreme Court’s reasoning in
United States v. International Minerals & Chem. Corp.,
Notwithstanding
International Minerals’
reasoning and the application of this reasoning to the knowing requirement of RCRA’s criminal provisions by every circuit that has addressed the issue, Defendant argues that we should follow the Supreme Court’s reasoning in
Liparota v. United States,
We recognize that
On appeal, Defendant broadens his contention that the instruction was erroneous by arguing, not only that the instruction failed to require the government to prove that Defendant knew the material was RCRA hazardous waste, but also that it allowed the jury to convict merely by finding that Defendant knew the material was “not a benign or innocuous material such as water.” Because Defendant did not raise this particular objection below, we review only for plain error.
See Sellers,
While the government was not required to prove that Defendant knew that the material was identified or listed as hazardous waste under RCRA regulations, the government was required to prove that Defendant knew the material was hazardous in that it had the potential to be harmful to persons or the environment.
See Goldsmith,
The Eleventh and Ninth Circuits have approved of an instruction regarding knowledge which requires the jury to find that “the defendant knew that the stored material had the potential to be harmful to others or to the environment, in other words, that it was not an innocuous substance like water.”
See Goldsmith,
IV.
Finally, Defendant argues that his conviction on count 1 for conspiracy to violate CAA, RCRA and CWA must be set aside because the verdict may have been based upon a legally insufficient overt act or means. Count 1 charged Defendant with conspiring with EkoTek, Inc. and other unidentified co-conspirators (1) to violate CAA, specifically
In
Yates v. United States,
In
Griffin v. United States,
— U.S. -,
We need go no further than consider the objectives relating to the diversion of the natural gas condensate as two of them — ie. transporting natural gas condensate to an unpermitted facility and falsifying the manifest — are legally insufficient. We recognize that we have already held that these counts were not legally insufficient in the sense that Defendant’s pretrial motion to dismiss should have been granted. However, our reasoning was based on the fact that the counts properly charged all the elements of the crimes and the issue of whether natural gas condensate was a hazardous waste depended on the factual issue of how the natural gas condensate was ultimately disposed. The government proceeded to trial on an erroneous theory that the natural gas condensate was hazardous waste unless it was used in a manner normally intended by the industry or in its original intended manner. The district court instructed the jury on this erroneous theory. Because the government proceeded on an erroneous theory, the government case with respect to these counts suffered from a failure of proof. Nonetheless, because of the government’s erroneous theory and the district court’s erroneous instruction, these objectives were legally insufficient as well.
The
Griffin
Court recognized this very distinction. As the Court stated, “the term ‘legal error’ means a mistake about the law, as opposed to a mistake concerning the weight or factual import of the evidence.” Here, both the government and the district court were mistaken about the law, as burning natural gas condensate as automotive fuel does not fit within the regulatory definition of hazardous waste and, therefore, Defendant’s actions were not within the statutory definition of the crime. This renders two of the three RCRA objectives of the conspiracy legally insufficient. “[Wjhether ... the action fails to come within the statutory definition of the crime” constitutes “legal error” and is controlled by
Yates. See Griffin,
— U.S. at -,
V.
Defendant’s convictions on counts 1, 2, 3 and 7 are REVERSED. Defendant's convictions on counts 4 and 8 are AFFIRMED. The case is REMANDED to the district court for proceedings consistent with this opinion.
Notes
. RCRA also defines "solid waste” to include "any garbage, refuse, [and] sludge from a waste treatment plant, water supply treatment plant, or air pollution control facility...."
. The regulations also define "discarded material” to include "any material which is ... [c]on-sidered inherently wastelike.”
. A material is also abandoned if it is "[disposed of,”
. The regulations also consider certain materials recycled when the material is "[u]sed in a manner constituting disposal,”
. The remaining types of materials which, when they are recycled by being burned for energy recovery, are considered solid wastes are "[s]pent materials,” listed or characteristic "[s]ludges," listed "[by-products,” listed "[Commercial chemical products,” and "[s]crap metal.”
. In its 1983 proposed rule defining "solid waste,” only listed by-products were considered solid wastes when recycled. See 48 Fed.Reg. 14,481 (Figure 4) (Apr. 4, 1983); see also 50 Fed.Reg. 629 (Jan. 4, 1985). However, the 1985 final rule "determined that all by-products ... are solid wastes when burned as fuels or used to produce a fuel.” 50 Fed.Reg. 629 (Jan. 4, 1985). In adopting this final rule, the EPA stated that by-products are "unlike commercial fuels” and are "significantly different in composition from fossil fuels.” Id. Distinguishing between byproducts and fossil fuels, the EPA noted that byproducts "are waste-like because they are residual materials containing toxic constituents not ordinarily found in fossil fuels.” Id. It was in this context that the EPA singled out natural gas condensate as an example of an off-specification fuel that is not a by-product. Id. at 630 n. 18.
. At the government's request, the district court gave an instruction defining hazardous waste in this manner. At trial, the government offered expert testimony that natural gas condensate does not have a normal intended use within the petroleum industry, and the district court did not allow Defendant to present expert testimony to the contrary.
. The EPA has recognized that the "nature of the device in which the wastes are being burned ... could be significant” to whether "particular burning operations are within the scope of the recycling exemption.”
Id.
However, the question here is not whether the natural gas condensate was exempted from regulation as a “recyclable material,”
see
This is not to say that the nature of the device in which the material is burned is completely irrelevant to whether the material is recycled by being burned for energy recovery or abandoned by being burned or incinerated. High energy materials burned in an incinerator may not be considered to be recycled because an incinerator’s capacity to retrieve the energy from the material is limited. Alternatively, low-energy materials burned in a boiler or industrial furnace may not be considered to be recycled due to their limited energy value. In either case, the EPA considers such materials to be burned for destruction. In this case however, we have a high energy material' — natural gas condensate— burned in the internal combustion engines of automobiles. While some internal combustion engines are better than others at retrieving the energy value from fuel to power vehicles, no one can seriously argue that an internal combustion engine does not have the capacity to recover energy from fuel.
. In the district court, Defendant sought to offer the testimony of Marcia Williams, former Director of the EPA’s Office of Solid Waste, that this language was added to the 1991 comment at the behest of the prosecutors in this case and for the sole purpose of undermining the defense. Ms. Williams testimony was not offered, however, after the government agreed not to rely on the language in the 1991 comment. Although the government's argument on appeal does not directly rely on the 1991 comment, the government's claim that the 1991 comment "simply added further clarification to the distinction already in the regulations and accompanying Federal Register notices,” indirectly relies on the comment in an attempt to give credence to the government's otherwise meritless argument.
. Defendant also argues that the government’s construction of the statute and regulations fail to provide fair warning of criminal conduct, and SCGC and the industry generally treat natural gas condensate as a product rather than a waste. We construe both of these arguments as alternative grounds for reversal which Defendant raises in the event that we agree with the government’s construction of the regulatory definition of solid waste. Because we agree with Defendant’s construction of the statute and regulations, we do not address either of these arguments.
. In
United States v. Radetsky,
. Defendant also claims with respect to count 7 that the indictment failed to properly charge and the government failed to prove a deprivation of a tangible property right as required under
McNally v. United States,
. It is undisputed that EkoTek’s RCRA permit did not authorize it to store hazardous waste in the east warehouse and that this is a material condition of the permit.
. Unlike Defendant's argument with respect to the natural gas condensate, there is no dispute that these substances were solid wastes as defined under
. RCRA's definition of ignitable characteristic waste, with respect to liquid, is based on whether the waste has a flash point of less than 140° F "as determined by a Pensky-Martens Closed Cup Tester ... or a Setaflash Closed Cup Tester ... or as determined by an equivalent test method approved by the Administrator....”
. Defendant’s own witness who performed the test on the spray material admitted that, if it were mixed with MEK, it would have a "very low flash point.”