GENERAL ELECTRIC COMPANY V. EPA
53 F.3d 1324 (D.C. Cir. 1995)
NATURE OF THE CASE: General Electric (D) appealed from an affirmation of a judgment for
the EPA (P) related to a fine against P.
FACTS: D's transformers contained PCBs, and P had to comply with the disposal
requirements of 40 C.F.R. Sec. 761.60. Section 761.60(b)(1) requires the disposal of
transformers by either incinerating the transformer, or by placing it into a chemical waste
landfill after the PCB-laced dielectric fluid has been drained and the transformer rinsed
with a PCB solvent. D originally incinerated its transformers. D changed these procedures
and began a recycling process that recovered a portion of the dirty solvent from
transformers through distillation. After soaking the transformer, D poured the dirty solvent
into a still that heated the freon, boiling off about 90% of it. The 10% of the liquid that
was left, which was highly contaminated with presumably all the PCBs that had been rinsed
from the transformer, and was immediately incinerated. The vapor from the still was cooled,
recondensing into nearly pure liquid freon that contained less than the regulatory threshold
of 50 ppm PCBs (2 ppm in fact). D then used this recycled solvent to rinse other
transformers. P disagreed about whether the intervening distillation and recycling process
violated the regulations. The ALJ fined D $25K. The EPA Board (P) upheld that decision. D
appealed contending that P’s interpretation of the rule was arbitrary and capricious and
that imposing a fine was violative of due process because the regulations were ambiguous in
that D lacked notice that P forbade distillation.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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