Owen Elec. Steel Co. of South Carolina, Inc. v. Browner
37 F.3d 146 (1994)
Premium Feature
Subscribe to Lexplug to listen to the Case Podcast.
Rule of Law:
An industrial byproduct is considered "discarded" material, and therefore "solid waste" under the Resource Conservation and Recovery Act (RCRA), if it is not immediately reused in a continuous process by the generating industry itself, but is instead stored for a prolonged period before being sold for use in an unrelated industry.
Facts:
- Owen Electric Steel Company (Owen) produces steel in an electric arc furnace.
- The steel production process creates a byproduct called "slag," which is composed of limestone, dolomite, and metallic oxides.
- The slag is removed from the furnace, processed by a contractor, and placed in holding bays on bare soil at Owen's facility.
- The slag remains in these holding bays for approximately six months to cure, a process of hydration and weathering that makes it dimensionally stable.
- After the six-month curing period, Owen sells the processed slag to third parties in the construction industry for use as road base material.
Procedural Posture:
- Owen Electric Steel Company's facility is a Treatment, Storage, or Disposal Facility (TSDF) requiring a permit from the Environmental Protection Agency (EPA) under RCRA.
- On October 6, 1989, the EPA issued a proposed permit to Owen.
- This permit identified Owen's slag processing area (SPA) as a solid waste management unit (SWMU), subjecting it to corrective action requirements.
- Owen challenged this classification through numerous administrative filings with the EPA, arguing the SPA was not an SWMU.
- The EPA ultimately affirmed its initial determination, ordering further evaluation of the SPA.
- Owen filed a petition for review of the EPA's final order in the United States Court of Appeals for the Fourth Circuit, naming the EPA Administrator as the respondent.
Premium Content
Subscribe to Lexplug to view the complete brief
You're viewing a preview with Rule of Law, Facts, and Procedural Posture
Issue:
Does the slag produced by Owen Electric Steel Company, which is cured on the ground for six months before being sold for use as construction aggregate, constitute "discarded" material and therefore a "solid waste" subject to regulation by the EPA under the Resource Conservation and Recovery Act (RCRA)?
Opinions:
Majority - Russell, J.
Yes. The slag produced by Owen Electric Steel Company is a discarded material and therefore constitutes solid waste under RCRA. A byproduct is considered "discarded" if it becomes part of the waste disposal problem, which occurs when the material is not immediately reused in a continuous process by the generating industry. The court, affording deference to the EPA's interpretation under Chevron, reviewed precedent from the D.C. Circuit, including the AMC I and AMC II cases. These cases established that materials are not discarded if they are destined for immediate reuse in the generating industry's own ongoing production process. In contrast, Owen's slag is not immediately reused; it sits on the ground for six months. Furthermore, it is not recycled back into Owen's own steel production but is sold to a different industry for a different purpose (construction). This extended storage period and transfer to a separate industry means the slag has become 'part of the waste disposal problem' and is thus justifiably classified as discarded solid waste by the EPA.
Analysis:
This decision solidifies a broad interpretation of the EPA's regulatory authority under RCRA, particularly concerning industrial byproducts that have future economic value. It clarifies that the determination of whether a material is "discarded" hinges not on its ultimate reuse, but on the immediacy and nature of that reuse. By focusing on whether the material is immediately recycled back into the generating industry's own continuous process, the court sets a precedent that makes it difficult for industries to avoid RCRA regulations simply by finding a downstream market for their byproducts. This ruling impacts industries that generate valuable byproducts, requiring them to manage these materials as potential solid wastes if they are stored for extended periods or sold for external use.
