Opinion ID: 628601
Heading Depth: 2
Heading Rank: 4

Heading: Recoverable Costs

Text: 54 Given our conclusion, the district court decision allowing the government recovery of all its costs, including oversight costs, cannot stand. A remand is necessary for the district court to reconsider the government's costs and determine which, if any, are reimbursable. We, of course, leave to the discretion of the district court whether it would be helpful to afford the parties an additional opportunity to offer evidence regarding the character of the costs in question. 55 To assist the district court in carrying out this task, we conclude our discussion regarding oversight costs by further elucidating what we perceive to be the statutory distinction between recoverable and non-recoverable costs. Where the government takes direct action to investigate, evaluate, or monitor a release, threat of release, or a danger posed by such a problem, the activity is a removal and its costs are recoverable. See 42 U.S.C. Sec. 9604(b) (1988). This includes the costs, no matter at what stage incurred, of ascertaining whether and to what extent the risk has been reduced or eliminated by the chosen response. Similarly, if the activity is intended to enable EPA to formulate a position on what would be the most appropriate response action at a given facility, the cost is recoverable. Thus, as we have seen, the costs of conducting an RI/FS are recoverable. See 42 U.S.C. Sec. 9604(b) (1988). In addition, although the cost of overseeing an RI/FS is not a removal cost, that cost is also recoverable in accordance with the congressional intent reflected in Sec. 104(a). See 42 U.S.C. Sec. 9604(a) (1988). 22 Even at the execution stage, the costs of activity associated with directing government removal and remedial action are recoverable. 23 3] See 42 U.S.C. Sec. 9604(b) (1988) (authorizing studies and investigations necessary or appropriate to plan and direct response actions). 56 On the other hand, if what the government is monitoring is not the release or hazard itself, but rather the performance of a private party, the costs involved are non-recoverable oversight costs. Costs of this type would include the costs of contractors hired by EPA to review the plans and work of a private party or its agents executing a response action. Because orders under CERCLA Sec. 106 or RCRA Sec. 3008(h) generally involve private removal and remedial activity rather than government removal and remedial activity, costs incurred by the government in connection with administering such orders normally will not be recoverable removal costs. 24