Howmet Corporation v. Environmental Protection Agency

The Resource Conservation and Recovery Act (RCRA) was implemented to regulate the treatment, storage, and disposal of hazardous waste. Under RCRA, the Environmental Protection Agency (EPA) (defendant) promulgated regulations concerning hazardous waste. Hazardous wastes were a subset of solid wastes. Solid wastes were discarded materials, which included spent materials, and spent materials were defined as any materials that have served their original purpose and can no longer serve the purpose for which they were produced without additional processing. Howmet Corporation (Howmet) (plaintiff) sent used liquid potassium hydroxide (KOH) to a fertilizer manufacturer for use as a fertilizer ingredient. KOH was a corrosive material used by Howmet for industrial cleaning. The EPA claimed that Howmet violated RCRA because the KOH Howmet sent was spent material. The EPA claimed the KOH was spent material because it became too contaminated for use as a cleaning product and was sent to a fertilizer company for use in a fundamentally different manner. Howmet argued before an administrative-law judge (ALJ) and the Environmental Appeals Board (EAB) that the KOH was not spent material and not subject to RCRA violations. Howmet brought suit in district court under the Administrative Procedure Act, arguing that the EPA’s definition of spent material was arbitrary and capricious. The EPA filed a cross-motion for summary judgment. The district court granted EPA’s motion. Howmet appealed.