ELR Citation: ELR 20503
No(s). 89-3411 (7th Cir. Nov 28, 1990)

The court holds that a district court properly deferred to the Environmental Protection Agency's (EPA's) decision to deny reimbursement of a steel company's cleanup costs under §106 of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) as an impermissible retroactive application of the 1986 Superfund Amendments and Reauthorization Act (SARA). The court first holds that the district court properly determined that the language of CERCLA §106 is ambiguous when applied to a company in the process of complying with a cleanup order on the date SARA became effective. The court next holds that the district court correctly accorded deference to EPA's interpretation of CERCLA §106. EPA is charged with administering CERCLA and played a significant role in the legislative process enacting SARA. Reviewing the legislative history of SARA, the court holds that the district court properly evaluated all available evidence of congressional intent and correctly concluded that EPA's interpretation was reasonable. Finally, the court holds that the district court correctly determined that EPA's interpretation was supported by the general rule of statutory construction that a waiver of sovereign immunity must be strictly construed. The court upholds the district court's conclusion that Congress easily could have specified that provisions in SARA covered parties in the company's position.

Counsel for Plaintiff-Appellant
Mark Shere
Barnes & Thornburg
1313 Merchants Bank Bldg., 11 S. Meridian St., Indianapolis IN 46204-3599
(317) 638-1313

Counsel for Defendants-Appellees
Andrew Baker, U.S. Attorney
Federal Bldg., 507 State St., 4th Fl., Hammond IN 46320
(219) 937-5215

Roger Marzulla
Environment and Natural Resources Division
U.S. Department of Justice, Washington DC 20530
(202) 514-2000

Before COFFEY, RIPPLE, and MANION, Circuit Judges.