Athletics Investment Group, LLC v. Department of Toxic Substances Control
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For almost 60 years, Schnitzer has operated a scrap-metal shredding and recycling facility. The Department of Toxic Substances Control acquired regulatory authority over metal-shredding facilities in the 1980s and issued Schnitzer certification under Code of Regulations, title 22, section 66260.200 2 (an (f) letter)--a conditional nonhazardous waste classification, allowing Schnitzer to handle and dispose of its treated metal-shredder waste as nonhazardous although the material otherwise meets the state’s definition of hazardous waste. In 2014, the Hazardous Waste Control Law (HWCL) Health & Safety Code 25150.82, specifically addressed metal-shredding facilities.
The trial court concluded that section 25150.82 imposed a mandatory duty on the Department to rescind the (f) letters, such that Schnitzer must handle its treated metal-shredder waste as hazardous. The court of appeal reversed. After the adoption of section 25150.82, the Department commissioned a study, addressing environmental problems associated with metal shredding. Based on that study, the Department initiated regulatory actions aimed at metal-shredding facilities and their untreated waste. Metal shredders must comply with the HWCL but the study confirmed that once metal-shredding waste has been appropriately treated, it can be safely handled and disposed of as non-hazardous. Schnitzer’s (f) letter authorizing this practice was issued under an HWCL regulation, and there is no basis for concluding it does not comply with the HWCL.
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