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SUPREME COURT OF THE UNITED STATES
_________________
No. 17–1498
_________________
ATLANTIC RICHFIELD COMPANY, PETITIONER
v. GREGORY A. CHRISTIAN, et al.
on writ of certiorari to the supreme court of
montana
[April 20, 2020]
Chief Justice Roberts delivered the opinion of
the Court.
For nearly a century, the Anaconda Copper
Smelter in Butte, Montana contaminated an area of over 300 square
miles with arsenic and lead. Over the past 35 years, the
Environmental Protection Agency has worked with the current owner
of the smelter, Atlantic Richfield Company, to implement a cleanup
plan under the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980. EPA projects that the cleanup will
continue through 2025.
A group of 98 landowners sued Atlantic Richfield
in Montana state court for common law nuisance, trespass, and
strict liability. Among other remedies, the landowners sought
restoration damages, which under Montana law must be spent on
rehabilitation of the property. The landowners’ proposed
restoration plan includes measures beyond those the agency found
necessary to protect human health and the environment.
We consider whether the Act strips the Montana
courts of jurisdiction over the landowners’ claim for restoration
damages and, if not, whether the Act requires the land- owners to
seek EPA approval for their restoration plan.
I
A
In 1980, Congress enacted the Comprehensive
Environmental Response, Compensation, and Liability Act, 94Stat.
2767, as amended, 42 U. S. C. §9601
et seq., also
known as the Superfund statute, to address “the serious
environmental and health risks posed by industrial pollution,”
Burlington N. & S. F. R. Co. v.
United States,
556 U.S.
599, 602 (2009). The Act seeks “to promote the timely cleanup
of hazardous waste sites and to ensure that the costs of such
cleanup efforts [are] borne by those responsible for the
contamination.”
CTS Corp. v.
Waldburger,
573 U.S.
1, 4 (2014) (internal quotation marks omitted).
The Act directs EPA to compile and annually
revise a prioritized list of contaminated sites for cleanup,
commonly known as Superfund sites. 42 U. S. C.
§9605.[
1] EPA may clean those
sites itself or compel responsible parties to perform the cleanup.
§§9604, 9606, 9615. If the Government performs the cleanup, it may
recover its costs from responsible parties. §9607(a)(4)(A).
Responsible parties are jointly and severally liable for the full
cost of the cleanup, but may seek contribution from other
responsible parties. §9613(f )(1).
Prior to selecting a cleanup plan, EPA conducts
(or orders a private party to conduct) a remedial investigation and
feasibility study to assess the contamination and evaluate cleanup
options. 40 CFR §300.430 (2019). Section 122(e)(6) of the Act
provides that, once the study begins, “no potentially responsible
party may undertake any remedial action” at the site without EPA
approval. 42 U. S. C. §9622(e)(6).
The Act prescribes extensive public consultation
while a cleanup plan is being developed. It requires an opportunity
for public notice and comment on proposed cleanup plans. §§9613(k),
9617. It requires “substantial and mean- ingful involvement by each
State in initiation, development, and selection” of cleanup actions
in that State. §9621(f )(1). And, in most instances, it
requires that remedial action comply with “legally applicable or
relevant and appropriate” requirements of state environmental law.
§9621(d)(2)(A).
But once a plan is selected, the time for debate
ends and the time for action begins. To insulate cleanup plans from
collateral attack, §113(b) of the Act provides federal district
courts with “exclusive original jurisdiction over all controversies
arising under” the Act, and §113(h) then strips such courts of
jurisdiction “to review any challenges to removal or remedial
action,” except in five limited circumstances. §§9613(b), (h).
B
Between 1884 and 1902, the Anaconda Copper
Mining Company built three copper smelters 26 miles west of the
mining town of Butte, Montana. The largest one, the Washoe Smelter,
featured a 585-foot smoke stack, taller than the Washington
Monument. The structure still towers over the area today, as part
of the Anaconda Smoke Stack State Park. Together, the three
smelters refined tens of millions of pounds of copper ore mined in
Butte, the “Richest Hill on Earth,” to feed burgeoning demand for
telephone wires and power lines. M. Malone, The Battle for Butte 34
(1981). “It was hot. It was dirty. It was dangerous. But it was a
job for thousands.” Dunlap, A Dangerous Job That Gave Life to a
Town: A Look Back at the Anaconda Smelter, Montana Standard (Aug.
8, 2018). From 1912 to 1973, Anaconda Company payrolls totaled over
$2.5 billion, compensating around three-quarters of Montana’s work
force.
Bust followed boom. By the 1970s, the falling
price of copper, an ongoing energy crisis, and the nationalization
of Anaconda’s copper mines in Chile and Mexico squeezed Anaconda.
But what others saw as an ailing relic, Atlantic Richfield saw as a
turnaround opportunity, purchasing the Anaconda Company for the
discount price of $700 million. Unfortunately, Atlantic Richfield
was unable to revive Anaconda’s fortunes. By 1980 Atlantic
Richfield had closed the facility for good, and by 1984 Fortune had
dubbed the purchase one of the “Decade’s Worst Mergers.” Fisher,
The Decade’s Worst Mergers, Fortune, Apr. 30, 1984,
p. 262.
Atlantic Richfield’s troubles were just
beginning. After Congress passed the Superfund statute in 1980,
Atlantic Richfield faced strict and retroactive liability for the
many tons of arsenic and lead that Anaconda had spewed across the
area over the previous century. In 1983, EPA designated an area of
more than 300 square miles around the smelters as one of the
inaugural Superfund sites. 48 Fed. Reg. 40667. In the 35 years
since, EPA has managed an extensive cleanup at the site, working
with Atlantic Richfield to remediate more than 800 residential and
commercial properties; remove 10 million cubic yards of tailings,
mine waste, and contaminated soil; cap in place 500 million cubic
yards of waste over 5,000 acres; and reclaim 12,500 acres of land.
EPA, Superfund Priority “Anaconda” 9 (Apr. 2018),
https://semspub.epa.gov/work/08/100003986.pdf. To date, Atlantic
Richfield estimates that it has spent roughly $450 million
implementing EPA’s orders.
More work remains. As of 2015, EPA’s plan
anticipated cleanup of more than 1,000 additional residential
yards, revegetation of 7,000 acres of uplands, removal of several
waste areas, and closure of contaminated stream banks and railroad
beds. Brief for United States as
Amicus Curiae 7–8 (citing
EPA, Fifth Five-Year Review Report: Anaconda Smelter Superfund
Site, Anaconda-Deer Lodge County, Montana, Table 10–1 (Sept. 25,
2015), https://semspub.epa. gov/work/08/1549381.pdf ). EPA
projects that remedial work will continue through 2025.
Id.,
Table 10–7; Tr. of Oral Arg. 30.
C
In 2008, a group of 98 owners of property
within the Superfund site filed this lawsuit against Atlantic
Richfield in Montana state court, asserting trespass, nuisance, and
strict liability claims under state common law. The landowners
sought restoration damages, among other forms of relief.
Under Montana law, property damages are
generally measured by the “difference between the value of the
property before and after the injury, or the diminution in value.”
Sunburst School Dist. No. 2 v.
Texaco,
Inc.,
338 Mont. 259, 269, 165 P.3d 1079, 1086 (2007). But “when the
damaged property serves as a private residence and the plaintiff
has an interest in having the property restored, diminution in
value will not return the plaintiff to the same position as before
the tort.”
Id., at 270, 165 P. 3d, at 1087. In that
circumstance, the plaintiff may seek restoration damages, even if
they exceed the property’s diminution in value. See
ibid.;
Restatement (Second) of Torts §929, and Comment
b
(1977).
To collect restoration damages, a plaintiff must
demonstrate that he has “reasons personal” for restoring the
property and that his injury is temporary and abatable, meaning
“[t]he ability to repair [the] injury must be more than a
theoretical possibility.”
Sunburst School Dist. No. 2, 338
Mont., at 269, 165 P. 3d, at 1086–1087. The injured party must
“establish that the award actually will be used for restoration.”
Lampi v.
Speed, 362 Mont. 122, 130, 261 P.3d 1000,
1006 (2011).
The landowners here propose a restoration plan
that goes beyond EPA’s own cleanup plan, which the agency had found
“protective of human health and the environment.” EPA, Community
Soils Operable Unit, Record of Decision (1996), App. 62. See also
42 U. S. C. §9621(d)(1). For example, the landowners
propose a maximum soil contamination level of 15 parts per million
of arsenic, rather than the 250 parts per million level set by EPA.
And the landowners seek to excavate offending soil within
residential yards to a depth of two feet rather than EPA’s chosen
depth of one. The landowners also seek to capture and treat shallow
groundwater through an 8,000-foot long, 15-foot deep, and 3-foot
wide underground permeable barrier, a plan the agency rejected as
costly and unnecessary to secure safe drinking water.
The landowners estimate that their cleanup would
cost Atlantic Richfield $50 to $58 million. Atlantic Richfield
would place that amount in a trust and the trustee would release
funds only for restoration work.
In the trial court, Atlantic Richfield and the
landowners filed competing motions for summary judgment on whether
the Act precluded the landowners’ claim for restoration
damages.[
2] The court granted
judgment for the landowners on that issue and allowed the lawsuit
to continue. After granting a writ of supervisory control, the
Montana Supreme Court affirmed.
Atlantic Richfield Co. v.
Montana Second Jud. Dist. Ct., 390 Mont. 76, 408 P.3d
515 (2017).
The Montana Supreme Court rejected Atlantic
Richfield’s argument that §113 stripped the Montana courts of
jurisdiction over the landowners’ claim for restoration damages.
The court recognized that §113 strips federal courts (and, it was
willing to assume, state courts) of jurisdiction to review
challenges to EPA cleanup plans. But the Montana Supreme Court
reasoned that the landowners’ plan was not such a challenge because
it would not “stop, delay, or change the work EPA is doing.”
Id., at 83, 408 P. 3d, at 520. The landowners were
“simply asking to be allowed to present their own plan to restore
their own private property to a jury of twelve Montanans who will
then assess the merits of that plan.”
Id., at 84, 408
P. 3d, at 521.
The Montana Supreme Court also rejected Atlantic
Richfield’s argument that the landowners were potentially
responsible parties (sometimes called PRPs) prohibited from taking
remedial action without EPA approval under §122(e)(6) of the Act.
The Court observed that the landowners had “never been treated as
PRPs for any purpose—by either EPA or [Atlantic Richfield]—during
the entire thirty-plus years” since the designation of the
Superfund site, and that the statute of limitations for a claim
against the landowners had run.
Id., at 86, 408 P. 3d,
at 522. “Put simply, the PRP horse left the barn decades ago.”
Ibid.
Justice Baker concurred, stressing that on
remand Atlantic Richfield could potentially defeat the request for
restoration damages on the merits by proving that the restoration
plan conflicted with EPA’s cleanup plan.
Id., at 87–90, 408
P. 3d, at 523–525. Justice McKinnon dissented. She argued that
the landowners’ restoration plan did conflict with the Superfund
cleanup and thus constituted a challenge under §113(h) of the Act,
over which Montana courts lacked jurisdiction.
Id., at
90–101, 408 P. 3d, at 525–532.
We granted certiorari. 587 U. S. ___
(2019).
II
We begin with two threshold questions: whether
this Court has jurisdiction to review the decision of the Montana
Supreme Court and, if so, whether the Montana courts have
jurisdiction over the landowners’ claim for restoration
damages.
A
Congress has authorized this Court to review
“[f]inal judgments or decrees rendered by the highest court of a
State.” 28 U. S. C. §1257(a). To qualify as final, a
state court judgment must be “an effective determination of the
litigation and not of merely interlocutory or intermediate steps
therein.”
Jefferson v.
City of Tarrant,
522 U.S.
75, 81 (1997). The landowners contend that, because the Montana
Supreme Court allowed the case to proceed to trial, its judgment
was not final and we lack jurisdiction.
But the Montana Supreme Court exercised review
in this case through a writ of supervisory control. Under Montana
law, a supervisory writ proceeding is a self-contained case, not an
interlocutory appeal. Mont. Const., Art. VII, §§2(1)–(2);
Mont. Rules App. Proc. 6(6), 14(1), 14(3) (2019). Thus we have
held that a “writ of supervisory control issued by the Montana
Supreme Court is a final judgment within our jurisdiction.”
Fisher v.
District Court of Sixteenth Judicial Dist. of
Mont.,
424 U.S.
382, 385, n. 7 (1976) (
per curiam).
The landowners protest that our precedents only
support reviewing supervisory writ proceedings that are limited to
jurisdictional questions. But the scope of our jurisdiction to
review supervisory writ proceedings is not so restricted. When the
Montana Supreme Court issues a writ of supervisory control, it
initiates a separate lawsuit. It is the nature of the Montana
proceeding, not the issues the state court reviewed, that
establishes our jurisdiction.
B
We likewise find that the Act does not strip
the Montana courts of jurisdiction over this lawsuit. It deprives
state courts of jurisdiction over claims brought under the Act. But
it does not displace state court jurisdiction over claims brought
under other sources of law.[
3]
Section 113(b) of the Act provides that “the
United States district courts shall have exclusive original
jurisdiction over all controversies arising under this chapter,” so
state courts lack jurisdiction over such actions. 42
U. S. C. §9613(b). This case, however, does not “arise
under” the Act. The use of “arising under” in §113(b) echoes
Congress’s more familiar use of that phrase in granting federal
courts jurisdiction over “all civil actions arising under the
Constitution, laws, or treaties of the United States.” 28
U. S. C. §1331. In the mine run of cases, “[a] suit
arises under the law that creates the cause of action.”
American
Well Works Co. v.
Layne & Bowler Co.,
241 U.S.
257, 260 (1916).[
4] The
landowners’ common law claims for nuisance, trespass, and strict
liability therefore arise under Montana law and not under the Act.
As a result, the Montana courts retain jurisdiction over this
lawsuit, notwithstanding the channeling of Superfund claims to
federal courts in §113(b).[
5]
Atlantic Richfield takes a different view,
arguing that §113(h) implicitly broadens the scope of actions
precluded from state court jurisdiction under §113(b). Section
113(h) states that “[n]o Federal court shall have jurisdiction
under Federal law other than under section 1332 of title 28
(relating to diversity of citizenship jurisdiction) . . .
to review any challenges to removal or remedial action” selected
under the Act. 42 U. S. C. §9613(h).
The company’s argument proceeds in five steps.
Step one: Section 113(h) removes federal court jurisdiction over
all cleanup challenges, regardless of whether they originate in
federal or state law (except for when the court is sitting in
diversity). Step two: Section 113(h) can only remove jurisdiction
that §113(b) provides in the first place. Step three: Section
113(b) thus provides federal courts jurisdiction over all cleanup
challenges, whether brought under federal or state law. Step four:
The grant of jurisdiction to federal courts in §113(b) is exclusive
to federal courts. Step five: State courts thus do not have
jurisdiction over cleanup challenges.
This interpretation faces several insurmountable
obstacles. First, by its own terms, §113(h) speaks of “Federal
court[s],” not state courts. There is no textual basis for Atlantic
Richfield’s argument that Congress precluded
state courts
from hearing a category of cases in §113(b) by stripping
federal courts of jurisdiction over those cases in §113(h).
And if that were Congress’s goal, it would be hard to imagine a
more oblique way of achieving it. Often the simplest explanation is
the best: Section 113(b) deprives state courts of jurisdiction over
cases “arising under” the Act—just as it says—while §113(h)
deprives federal courts of jurisdiction over certain “challenges”
to Superfund remedial actions—just as it says.
Second, the company’s argument does not account
for the exception in §113(h) for federal courts sitting in
diversity. Section 113(h) permits federal courts in diversity cases
to entertain state law claims regardless of whether they are
challenges to cleanup plans. See
DePue v.
Exxon Mobil
Corp., 537 F.3d 775, 784 (CA7 2008). But Atlantic Richfield
does not even try to explain why the Act would permit such state
law claims to proceed in federal court, but not in state court. The
Act permits federal courts and state courts alike to entertain
state law claims, including challenges to cleanups.
That leads us to the third difficulty with
Atlantic Richfield’s argument. We have recognized a “deeply rooted
presumption in favor of concurrent state court jurisdiction” over
federal claims.
Tafflin v.
Levitt,
493 U.S.
455, 458–459 (1990). Only an “explicit statutory directive,” an
“unmistakable implication from legislative history,” or “a clear
incompatibility between state-court jurisdiction and federal
interests” can displace this presumption.
Id., at 460.
Explicit, unmistakable, and clear are not words that describe
Atlantic Richfield’s knotty interpretation of §§113(b) and (h).
It would be one thing for Atlantic Richfield to
try to surmount the clear statement rule that applies to the
uncommon, but not unprecedented, step of stripping state courts of
jurisdiction over
federal claims. But Atlantic Richfield’s
position requires a more ambitious step: Congress stripping state
courts of jurisdiction to hear their own
state claims. We
would not expect Congress to take such an extraordinary step by
implication. Yet the only provision Atlantic Richfield invokes
addresses “[f]ederal court[s]” without even mentioning state
courts, let alone stripping those courts of jurisdiction to hear
state law claims. 42 U. S. C. §9613(h).
Finally, the Government, supporting Atlantic
Richfield, emphasizes that the opening clause of §113(b) excepts
§113(h) from its application. See 42 U. S. C. §9613(b)
(“Except as provided in subsections (a) and (h) of this section
. . . .”). According to the Government, because
“exceptions must by definition be narrower than the corresponding
rule,” all challenges to remedial plans under §113(h)—whether based
in federal or state law—must “arise under” the Act for purposes of
§113(b). Brief for United States as
Amicus Curiae 25.
We reject the premise and with it the
conclusion. “Thousands of statutory provisions use the phrase
‘except as provided in . . . ’ followed by a
cross-reference in order to indicate that one rule should prevail
over another in any circumstance in which the two conflict.”
Cyan,
Inc. v.
Beaver County Employees Retirement
Fund, 583 U. S. ___, ___ (2018) (slip op., at 9). Such
clauses explain what happens in the case of a clash, but they do
not otherwise expand or contract the scope of either provision by
implication. Cf.
NLRB v.
SW General,
Inc., 580
U. S. ___, ___ (2017) (slip op., at 11) (explaining the same
principle for “notwithstanding” clauses).
The actions referred to in §113(h) do not fall
entirely within §113(b). Challenges to remedial actions under
federal statutes other than the Act, for example, are precluded by
§113(h) but do not fall within §113(b). To cite another example,
§113(h) addresses state law challenges to cleanup plans in federal
court, although those actions also do not fall within
§113(b).[
6] At the same time,
§113(b) is not subsumed by §113(h). Many claims brought under the
Act, such as those to recover cleanup costs under §107, are not
challenges to cleanup plans.
Sections 113(b) and 113(h) thus each do work
independent of one another. The two provisions overlap in a
particular type of case: challenges to cleanup plans in federal
court that arise under the Act. In such cases, the exceptions
clause in §113(b) instructs that the limitation of §113(h)
prevails. It does nothing more.
III
Although the Montana Supreme Court answered
the jurisdictional question correctly, the Court erred by holding
that the landowners were not potentially responsible parties under
the Act and therefore did not need EPA approval to take remedial
action. Section 122(e)(6), titled “Inconsistent response action,”
provides that “[w]hen either the President, or a potentially
responsible party . . . has initiated a remedial
investigation and feasibility study for a particular facility under
this chapter, no potentially responsible party may undertake any
remedial action at the facility unless such remedial action has
been authorized by the President.” 42 U. S. C.
§9622(e)(6). Both parties agree that this provision would require
the landowners to obtain EPA approval for their restoration plan if
the landowners qualify as potentially responsible parties.
To determine who is a potentially responsible
party, we look to the list of “covered persons” in §107, the
liability section of the Act. §9607(a). “Section 107(a) lists four
classes of potentially responsible persons (PRPs) and provides that
they ‘shall be liable’ for, among other things, ‘all costs of
removal or remedial action incurred by the United States
Government.’ ”
Cooper Industries,
Inc. v.
Aviall Services,
Inc.,
543 U.S.
157, 161 (2004) (quoting §9607(a)(4)(A)). The first category
under §107(a) includes any “owner” of “a facility.” §9607(a)(1).
“Facility” is defined to include “any site or area where a
hazardous substance has been deposited, stored, disposed of, or
placed, or otherwise come to be located.” §9601(9)(B). Arsenic and
lead are hazardous substances. 40 CFR §302.4, Table 302.4. Because
those pollutants have “come to be located” on the landowners’
properties, the landowners are potentially responsible parties.
The landowners and Justice Gorsuch argue that
even if the landowners were once potentially responsible parties,
they are no longer because the Act’s six-year limitations period
for recovery of remedial costs has run, and thus they could not be
held liable in a hypothetical lawsuit. 42 U. S. C.
§9613(g)(2)(B).
This argument collapses status as a potentially
responsible party with liability for the payment of response costs.
A property owner can be a potentially responsible party even if he
is no longer subject to suit in court. As we have said, “[E]ven
parties not responsible for contamination may fall within the broad
definitions of PRPs in §§107(a)(1)–(4).”
United States v.
Atlantic Research Corp.,
551
U.S. 128, 136 (2007). That includes “ ‘innocent’
. . . landowner[s] whose land has been contaminated by
another,” who would be shielded from liability by the Act’s
so-called “innocent landowner” or “third party” defense in
§107(b)(3).
Ibid. See also 42 U. S. C.
§9607(b)(3). The same principle holds true for parties that face no
liability because of the Act’s limitations period.
Interpreting “potentially responsible parties”
to include owners of polluted property reflects the Act’s objective
to develop, as its name suggests, a “Comprehensive Environmental
Response” to hazardous waste pollution. Section 122(e)(6) is one of
several tools in the Act that ensure the careful development of a
single EPA-led cleanup effort rather than tens of thousands of
competing individual ones.
Yet under the landowners’ interpretation,
property owners would be free to dig up arsenic-infected soil and
build trenches to redirect lead-contaminated groundwater without
even notifying EPA, so long as they have not been sued within six
years of commencement of the cleanup.[
7] We doubt Congress provided such a fragile remedy for
such a serious problem. And we suspect most other landowners would
not be too pleased if Congress required EPA to sue each and every
one of them just to ensure an orderly cleanup of toxic waste in
their neighborhood. A straight- forward reading of the text avoids
such anomalies.
Justice Gorsuch argues that equating
“potentially responsible parties” with “covered persons” overlooks
the fact that the terms “use different language, appear in
different statutory sections, and address different matters.”
Post, at 7 (opinion concurring in part and dissenting in
part). He contends that “potentially responsible party” as used in
§122(e)(6) should be read as limited to the settlement context, and
that if Congress intended the phrase to have broader reach—to refer
more generally to those potentially liable under §107(a)—then
Congress would have used the term “covered person.”
Post, at
7–8.
But there is no reason to think Congress used
these phrases to refer to two distinct groups of persons. Neither
phrase appears among the Act’s list of over 50 defined terms. 42
U. S. C. §9601. “Covered persons,” in fact, appears in
the caption to §107(a) and nowhere else. Meanwhile, “potentially
responsible parties” are referenced not just in the section on
settlements, but also in the Act’s sections regarding EPA response
authority, cleanup standards and procedures, cleanup contractors,
Superfund moneys, Federal Government cleanup sites, and civil
proceedings. §§9604, 9605, 9611, 9613, 9619, 9620, 9622. Across the
statute “potentially responsible parties” refers to what it says:
parties that may be held accountable for hazardous waste in
particular circumstances. The only place in the Act that identifies
such persons is the list of “Covered persons” in §107(a). Congress
therefore must have intended “potentially responsible party” in
§122(e)(6) (as elsewhere in the Act) to refer to “Covered persons”
in §107(a).
Turning from text to consequences, the
landowners warn that our interpretation of §122(e)(6) creates a
permanent easement on their land, forever requiring them “to get
permission from EPA in Washington if they want to dig out part of
their backyard to put in a sandbox for their grandchildren.” Tr. of
Oral Arg. 62. The grandchildren of Montana can rest easy: The Act
does nothing of the sort.
Section 122(e)(6) refers only to “remedial
action,” a defined term in the Act encompassing technical actions
like “storage, confinement, perimeter protection using dikes,
trenches, or ditches, clay cover, neutralization, cleanup of
released hazardous substances and associated contaminated
materials,” and so forth. 42 U. S. C. §9601(24). While
broad, the Act’s definition of remedial action does not reach so
far as to cover planting a garden, installing a lawn sprinkler, or
digging a sandbox. In addition, §122(e)(6) applies only to sites on
the Superfund list. The Act re- quires EPA to annually review and
reissue that list. §9605(a)(8)(B). EPA delists Superfund sites once
responsible parties have taken all appropriate remedial action and
the pollutant no longer poses a significant threat to public health
or the environment. See 40 CFR §300.425(e).
The landowners and Justice Gorsuch alternatively
argue that the landowners are not potentially responsible parties
because they did not receive the notice of settlement negotiations
required by §122(e)(1). Under a policy dating back to 1991, EPA
does not seek to recover costs from residential landowners who are
not responsible for contamination and do not interfere with the
agency’s remedy. EPA, Policy Towards Owners of Residential Property
at Superfund Sites, OSWER Directive #9834.6 (July 3, 1991),
https://www.epa.gov/sites/production/files/documents/policy-owner-rpt.pdf.
EPA views this policy as an exercise of its “enforcement discretion
in pursuing potentially responsible parties.”
Id., at 3.
Because EPA has a policy of not suing innocent homeowners for
pollution they did not cause, it did not include the landowners in
settlement negotiations.
But EPA’s nonenforcement policy does not alter
the landowners’ status as potentially responsible parties. Section
107(a) unambiguously defines potentially responsible parties and
EPA does not have authority to alter that definition. See,
e.g.,
Sturgeon v.
Frost, 587 U. S. ___,
___, n. 3 (2019) (slip op., at 16, n. 3). Section
122(e)(1) requires notification of settlement negotiations to all
potentially responsible parties. To say that provision determines
who is a potentially responsible party in the first instance would
render the Act circular. Even the Government does not claim that
its decisions whether to send notices of settlement negotiations
carry such authority.
In short, even if EPA ran afoul of §122(e)(1) by
not providing the landowners notice of settlement negotiations,
that does not change the landowners’ status as potentially
responsible parties.
The landowners relatedly argue that the
limitation in §122(e)(6) on remedial action by potentially
responsible parties cannot carry the weight we assign to it because
it is located in the Act’s section on settlement negotiations.
Congress, we are reminded, does not “hide elephants in mouseholes.”
Whitman v.
American Trucking Assns.,
Inc.,
531 U.S.
457, 468 (2001).
We take no issue with characterizing §122(e)(6)
as an elephant. It is, after all, one of the Act’s crucial tools
for ensuring an orderly cleanup of toxic waste. But §122 of the Act
is, at the risk of the tired metaphor spinning out of control, less
a mousehole and more a watering hole—exactly the sort of place we
would expect to find this elephant.
Settlements are the heart of the Superfund
statute. EPA’s efforts to negotiate settlement agreements and issue
orders for cleanups account for approximately 69% of all cleanup
work currently underway. EPA, Superfund Site Cleanup Work Through
Enforcement Agreements and Orders,
https://www.epa.gov/enforcement/superfund-site-cleanup-work-through-enforcement-agreements-and-orders.
The Act commands EPA to proceed by settlement “[w]henever
practicable and in the public interest . . . in order to
expedite effective remedial actions and minimize litigation.” 42
U. S. C. §9622(a). EPA, for its part, “prefers to reach
an agreement with a potentially responsible party (PRP) to clean up
a Superfund site instead of issuing an order or paying for it and
recovering the cleanup costs later.” EPA, Negotiating Superfund
Settlements, https://www.epa.
gov/enforcement/negotiating-superfund-settlements.
The Act encourages potentially responsible
parties to enter into such agreements by authorizing EPA to include
a “covenant not to sue,” which caps the parties’ liability to the
Government. §9622(c)(1). The Act also protects settling parties
from contribution claims by other potentially responsible parties.
§9613(f )(2). Once finalized, the terms of a settlement become
legally binding administrative orders, subject to civil penalties
of up to $25,000 a day. §§9609(a)(1)(E), 9622(
l).
Moreover, subsection (e) is an important
component of §122. It establishes a reticulated scheme of notices,
proposals, and counterproposals for the settlement negotiation
process. §9622(e). And the subsection places a moratorium on EPA
remedial actions while negotiations are under way. §9622(e)(2)(A).
It is far from surprising to find an analogous provision
restricting potentially responsible parties from taking remedial
actions in the same subsection.
Justice Gorsuch also contends that our
interpretation violates the Act’s “saving clauses,” which provide
that the Act does not preempt liability or requirements under state
law.
Post, at 3–4. But we have long rejected interpretations
of sweeping saving clauses that prove “absolutely inconsistent with
the provisions of the act” in which they are found.
American
Telephone & Telegraph Co. v.
Central Office
Telephone,
Inc.,
524 U.S.
214, 228 (1998) (quoting
Texas & Pacific R. Co. v.
Abilene Cotton Oil Co.,
204 U.S.
426, 446 (1907)). Interpreting the Act’s saving clauses to
erase the clear mandate of §122(e)(6) would allow the Act “to
destroy itself.”
Ibid.
What is more, Atlantic Richfield remains
potentially liable under state law for compensatory damages,
including loss of use and enjoyment of property, diminution of
value, incidental and consequential damages, and annoyance and
discomfort. The damages issue before the Court is whether Atlantic
Richfield is also liable for the landowners’ own remediation beyond
that required under the Act. Even then, the answer is yes—so long
as the landowners first obtain EPA approval for the remedial work
they seek to carry out.
We likewise resist Justice Gorsuch’s evocative
claim that our reading of the Act endorses “paternalistic central
planning” and turns a cold shoulder to “state law efforts to
restore state lands.”
Post, at 10. Such a charge fails to
appreciate that cleanup plans generally must comply with “legally
applicable or relevant and appropriate” standards of state
environmental law. 42 U. S. C. §9621(d)(2)(A)(ii). Or
that States must be afforded opportunities for “substantial and
meaningful involvement” in initiating, developing, and selecting
cleanup plans. §9621(f )(1). Or that EPA usually must defer
initiating a cleanup at a contaminated site that a State is already
remediating. §9605(h). It is not “paternalistic central planning”
but instead the “spirit of cooperative federalism [that] run[s]
throughout CERCLA and its regulations.”
New Mexico v.
General Elec. Corp., 467 F.3d 1223, 1244 (CA10 2006).
As a last ditch effort, the landowners contend
that, even if §107(a) defines potentially responsible parties, they
qualify as contiguous property owners under §107(q), which would
pull them outside the scope of §107(a). The landowners are correct
that contiguous property owners are not potentially responsible
parties. Section 107(q)(1)(A) provides that “[a] person that owns
real property that is contiguous to or otherwise similarly situated
with respect to, and that is or may be contaminated by a release or
threatened release of a hazardous substance from, real property
that is not owned by that person shall not be considered” an owner
of a facility under §107(a). §9607(q)(1)(A). The problem for the
landowners is that there are eight further requirements to qualify
as a contiguous property owner. §§9607(q)(1)(A)(i)–(viii). Each
landowner individually must “establish by a preponderance of the
evidence” that he satisfies the criteria. §9607(q)(1)(B).
The landowners cannot clear this high bar. One
of the eight requirements is that, at the time the person acquired
the property, the person “did not know or have reason to know that
the property was or could be contaminated by a release or
threatened release of one or more hazardous substances.”
§9607(q)(1)(A)(viii)(II). All of the landowners here purchased
their property after the Anaconda Company built the Washington
Monument sized smelter. Indeed “evidence of public knowledge” of
contamination was “almost overwhelming.”
Christian v.
Atlantic Richfield Co., 380 Mont. 495, 529, 358 P.3d 131,
155 (2015). In the early 1900s, the Anaconda Company actually
obtained smoke and tailing easements authorizing the disposition of
smelter waste onto many properties now owned by the landowners.
Id., at 500–501, 358 P. 3d, at 137–138. The landowners
had reason to know their property “could be contaminated by a
release or threatened release” of a hazardous substance. 42
U. S. C. §9607(q)(1)(A)(viii)(II).
At any rate, contiguous landowners must provide
“full cooperation, assistance, and access” to EPA and those
carrying out Superfund cleanups in order to maintain that status.
§9607(q)(1)(A)(iv). But the Government has represented that the
landowners’ restoration plan, if implemented, would interfere with
its cleanup by, for example, digging up contaminated soil that has
been deliberately capped in place. See Brief for United States as
Amicus Curiae 20–21. If that is true, the landowners’ plan
would soon trigger a lack of cooperation between EPA and the
landowners. At that point, the landowners would no longer qualify
as contiguous landowners and we would be back to square one.
* * *
The Montana Supreme Court erred in holding
that the landowners were not potentially responsible parties under
§122(e)(6) and therefore did not need to seek EPA approval. Montana
law requires that “an award of restoration damages actually
. . . be used to repair the damaged property.”
Sunburst School Dist. No. 2, 338 Mont., at 273, 165
P. 3d, at 1089. But such action cannot be taken in the absence
of EPA approval. That approval process, if pursued, could
ameliorate any conflict between the landowners’ restoration plan
and EPA’s Superfund cleanup, just as Congress envisioned. In the
absence of EPA approval of the current restoration plan, we have no
occasion to entertain Atlantic Richfield’s claim that the Act
otherwise preempts the plan.
The judgment of the Montana Supreme Court is
affirmed in part and vacated in part. The case is remanded for
further proceedings not inconsistent with this opinion.
It is so ordered.