Tetra Tech EC Settles for $40M Over Radioactive Waste Dumping Allegations
Federal government alleges contractor disposed of contaminated soil in trenches at Hunters Point Naval Shipyard Superfund Site, forcing Navy to redo cleanup at taxpayer expense and delaying redevelopment.
The U.S. government sued Tetra Tech EC, alleging the environmental contractor improperly disposed of radiologically contaminated soil at the Hunters Point Naval Shipyard Superfund Site in San Francisco. The Navy claims it cannot rely on Tetra Tech EC’s work and must redo the entire radiological investigation and cleanup. In January 2025, Tetra Tech EC agreed to pay $40 million plus interest to settle CERCLA claims while denying wrongdoing, leaving taxpayers to cover remaining costs and delaying redevelopment of the historically underserved community.
This settlement exposes how corporate cost-cutting on toxic cleanup can harm communities for decades.
The Allegations: A Breakdown
| 01 | Tetra Tech EC disposed of soils contaminated with radionuclides above action levels in trenches and other locations at the Hunters Point site instead of secure, authorized facilities. The Navy alleges the contractor’s sampling and disposal processes violated environmental law. | high |
| 02 | The government claims Tetra Tech EC operated as both a facility operator during disposal and a transporter of hazardous substances, making it liable under CERCLA Sections 107(a)(2) and (4). | high |
| 03 | The Navy alleges it cannot complete the investigation and cleanup to comply with statutory and regulatory standards while relying on Tetra Tech EC’s work. Oversight agencies required the Navy to undertake a completely new site investigation and cleanup. | high |
| 04 | The government states that Tetra Tech EC’s alleged failures forced the Navy to incur substantial response costs that continue to accrue as the investigation proceeds. The entire radiological verification process must be redone from sample collection to data analysis. | high |
| 05 | The United States alleges that during site investigation and remediation, Tetra Tech EC engaged in surveying and sampling that resulted in disposal of contaminated soil into trenches and other locations on the Site. Tetra Tech EC denies these allegations. | high |
| 06 | The Navy was hired Tetra Tech EC specifically to investigate radiological contamination at certain parcels and to perform selected remedial work. The contractor’s alleged failure undermined the fundamental purpose of its contract. | high |
| 07 | The complaint includes claims under the False Claims Act and common law breach of contract in addition to CERCLA violations. The partial consent decree resolves only the CERCLA claim, leaving other claims pending. | medium |
| 08 | Tetra Tech EC filed a counterclaim against the Navy seeking contribution and equitable allocation of response costs, alleging the Navy owned, operated, and contaminated Hunters Point during its operations. The Navy denies these allegations. | medium |
| 01 | The Environmental Protection Agency and California Department of Public Health required the Navy to undertake new investigation and cleanup after Tetra Tech EC’s alleged failures, indicating regulatory agencies did not catch the problems until after work was supposedly complete. | high |
| 02 | The Navy relied on Tetra Tech EC’s sampling procedures and data for radiological contamination, but alleges the work was compromised in ways that led to improper disposal. The oversight system failed to detect alleged misconduct during active operations. | high |
| 03 | Hunters Point has been on the National Priorities List since 1989, requiring long-term cleanup. Despite decades of regulatory attention, alleged improper disposal occurred under federal oversight. | medium |
| 04 | The partial consent decree reveals that oversight agencies have the authority to require complete re-investigation when contractor work is unreliable, but this power was exercised only after alleged contamination disposal had already occurred. | medium |
| 05 | The settlement includes provisions for future oversight, including access to information and retention of records for 10 years, suggesting prior monitoring may have been insufficient to prevent alleged wrongdoing. | medium |
| 06 | The decree allows the United States to reserve rights for future enforcement if Tetra Tech EC transports, treats, stores, or disposes of hazardous substances at the Site after signing, indicating ongoing concern about compliance. | low |
| 01 | The Navy hired Tetra Tech EC to investigate and remediate radiological contamination, but the government alleges the contractor’s methods resulted in contaminated soil being placed in trenches rather than properly disposed of in secure facilities. | high |
| 02 | Tetra Tech EC agreed to pay $40 million to resolve CERCLA claims while denying wrongdoing, a settlement structure that allows the company to avoid admission of liability despite the government’s allegations. | high |
| 03 | The partial consent decree explicitly states that Tetra Tech EC does not admit any liability arising from the alleged transactions, preserving the company’s public position despite the substantial payment. | medium |
| 04 | The settlement resolves only the Fifth Claim for Relief in the Second Amended Complaint. Claims under the False Claims Act and common law remain pending, suggesting the $40 million may not represent full accountability. | medium |
| 05 | The decree specifies that if Tetra Tech EC fails to make the required payment within 30 days of the Effective Date, stipulated penalties of $25,000 per day will accrue, indicating the need for strong financial enforcement mechanisms. | medium |
| 06 | Tetra Tech EC reserved the right to pursue Contract Disputes Act claims for costs incurred defending against non-intervened relator claims about Hunters Point, attempting to recover legal defense expenses. | low |
| 01 | The Navy alleges it incurred response costs and will continue to incur response costs as the new site investigation continues. The $40 million settlement may not fully reimburse these expenses, leaving taxpayers to cover the difference. | high |
| 02 | The government must pay twice for cleanup at Hunters Point: once for Tetra Tech EC’s original contract and again for re-verifying and re-remediating the site due to alleged deficiencies in the contractor’s work. | high |
| 03 | The Base Realignment and Closure Commission recommended Hunters Point for closure in 1991. More than three decades later, alleged contractor misconduct continues to delay transfer of the property for redevelopment. | high |
| 04 | The settlement payment of $40 million plus interest will be deposited into the DON BRAC Account, funds designated for base closure activities. The decree does not specify how these funds will be allocated for continued cleanup. | medium |
| 05 | Hunters Point is located in southeast San Francisco, an economically disadvantaged area. Delays in cleanup and redevelopment prevent job creation, housing development, and economic revitalization for the historically underserved community. | high |
| 06 | The decree covers only response costs incurred by the United States, not potential economic damages to the local community from delayed development, depressed property values, or lost investment opportunities. | medium |
| 07 | The partial consent decree notes that stipulated penalties and enforcement costs are in addition to the $40 million settlement, meaning total financial consequences for Tetra Tech EC could exceed the headline figure if compliance issues arise. | low |
| 01 | The Navy operated Hunters Point from 1940 to 1974, during which time it housed the Naval Radiological Defense Laboratory and decontaminated ships. The site contains legacy radiological contamination that poses ongoing health risks if not properly remediated. | high |
| 02 | The government alleges Tetra Tech EC disposed of soils contaminated with radionuclides above action levels in trenches at various site locations. Action levels represent contamination thresholds that trigger cleanup requirements to protect human health. | high |
| 03 | The United States reserves all rights for liability related to damages for injury to, destruction of, or loss of natural resources, indicating potential long-term environmental and health consequences from alleged improper disposal. | high |
| 04 | Hunters Point was placed on the National Priorities List in 1989 under CERCLA, requiring long-term cleanup. The alleged failure to properly handle radiological waste extends the period during which the community faces potential exposure. | high |
| 05 | The Navy alleges it cannot rely on Tetra Tech EC’s radiological verification work, meaning previous declarations of site safety may have been premature and potentially exposed workers and residents to unidentified hazards. | high |
| 06 | The decree does not address potential health impacts on workers who handled allegedly contaminated materials or residents living near disposal locations. No provisions for health monitoring or medical compensation appear in the settlement. | medium |
| 07 | The settlement resolves only government response costs, not natural resource damages or personal injury claims that might arise from radiological exposure. Affected individuals would need to pursue separate legal action. | medium |
| 01 | Hunters Point is located in southeast San Francisco on a peninsula extending into San Francisco Bay. The area is home to a historically underserved community that has faced environmental contamination for decades. | high |
| 02 | The site was established as a commercial shipyard in 1870 and operated by the Navy from 1940 to 1974. The community has lived with the legacy of military contamination for over 50 years since Navy operations ended. | medium |
| 03 | BRAC recommended Hunters Point for closure in 1991, promising redevelopment opportunities for the local community. Alleged contractor misconduct more than 30 years later continues to delay that promise. | high |
| 04 | The partial consent decree makes no provision for community input, compensation, or direct accountability to local residents. The settlement is strictly between the federal government and Tetra Tech EC. | high |
| 05 | The decree does not require Tetra Tech EC to conduct community outreach, health screenings, or provide any direct remediation to affected neighborhoods. All obligations run to the federal government, not local residents. | medium |
| 06 | Environmental justice advocates note that Superfund sites are disproportionately located near communities of color and low-income populations. Hunters Point fits this pattern as a historically Black neighborhood in San Francisco. | high |
| 07 | The settlement does not earmark any portion of the $40 million for community-led monitoring, independent testing, or local economic development. The funds go to the Navy’s BRAC account for continued cleanup operations. | medium |
| 08 | Local residents must wait indefinitely for safe redevelopment while the Navy re-conducts radiological surveys and cleanup. Each delay perpetuates economic stagnation and uncertainty about property values and health risks. | high |
| 01 | Tetra Tech EC does not admit any liability to the United States arising from the alleged transactions, despite agreeing to pay $40 million. This settlement structure allows the company to resolve claims while maintaining public denial of wrongdoing. | high |
| 02 | The partial consent decree is styled as partial because it resolves only the CERCLA claim. The First through Fourth Claims for Relief in the Second Amended Complaint, including False Claims Act violations, are not addressed and remain pending. | high |
| 03 | The decree explicitly states that the United States does not admit any liability to Tetra Tech EC arising from the contractor’s counterclaim. Both parties deny the other’s allegations while settling one narrow claim. | medium |
| 04 | Tetra Tech EC waives all objections to jurisdiction and venue solely for purposes of this consent decree. The company preserves its right to challenge jurisdiction in other matters while accepting it here to facilitate settlement. | low |
| 05 | The settlement provides Tetra Tech EC with contribution protection under CERCLA Section 113(f)(2) for matters addressed in the decree. This shields the company from contribution claims by other potentially responsible parties for the same contamination. | medium |
| 06 | The decree allows the United States to reserve rights for criminal liability, failure to meet decree requirements, natural resource damages, and liability for disposal after the decree is signed. These carve-outs limit the scope of the settlement. | medium |
| 07 | Tetra Tech EC agrees not to challenge the decree or its terms, and not to oppose entry by the court. This provision prevents the company from later contesting the settlement while still denying the underlying allegations. | low |
| 08 | The decree will be lodged for at least 30 days for public comment before final approval. The United States reserves the right to withdraw consent if comments reveal facts indicating the decree is inappropriate, improper, or inadequate. | medium |
| 01 | The partial consent decree explicitly preserves Tetra Tech EC’s denial of allegations throughout the document, allowing the company to publicly maintain it did nothing wrong despite the $40 million payment. | high |
| 02 | The settlement structure permits Tetra Tech EC to characterize the payment as a business decision to avoid costly litigation rather than an acknowledgment of environmental wrongdoing. | medium |
| 03 | By resolving only the CERCLA claim and leaving False Claims Act and other claims pending, Tetra Tech EC limits public disclosure of potentially damning internal documents and communications that might emerge at trial. | high |
| 04 | The decree does not require Tetra Tech EC to issue public statements, conduct community outreach, or acknowledge any harm to Hunters Point residents. All covenants run to the United States government, not affected communities. | medium |
| 05 | Tetra Tech EC may assert business confidentiality claims over records submitted under the decree, potentially shielding company documents from public scrutiny even as the settlement is publicly filed. | medium |
| 06 | The consent decree is a final judgment only as to the Fifth Claim for Relief, meaning Tetra Tech EC can continue to deny liability on all other pending claims while pointing to this partial resolution as evidence of cooperation. | low |
| 01 | Tetra Tech EC was hired by the Navy and paid with federal funds to perform radiological cleanup at Hunters Point. The company profited from the original contract while the government now must pay additional costs to redo the work. | high |
| 02 | The $40 million settlement goes to the Navy’s BRAC account to fund continued cleanup operations, not to the Hunters Point community that bears the health and economic risks of contamination and delayed redevelopment. | high |
| 03 | Hunters Point is located in an economically disadvantaged area of southeast San Francisco. The community lacks the political and financial resources that wealthier neighborhoods would deploy to demand accountability and expedite cleanup. | high |
| 04 | The decree notes that any change in Tetra Tech EC’s ownership or corporate status shall in no way alter its responsibilities. This provision protects against corporate restructuring to avoid liability, but provides no similar protection for community interests. | medium |
| 05 | Tetra Tech EC is represented by Wilmer Cutler Pickering Hale & Dorr, a major law firm. The company’s access to sophisticated legal counsel enabled negotiation of a partial settlement that limits admissions and preserves future contract eligibility. | medium |
| 06 | The settlement amount of $40 million, while substantial, may be modest relative to the total value of Tetra Tech EC’s government contract portfolio and overall corporate revenues, making it a manageable cost of doing business. | medium |
| 07 | Local residents have no direct claim to settlement funds and must rely on the Navy to properly conduct new cleanup activities. The power imbalance leaves the community dependent on the same federal oversight that allegedly failed to prevent the original misconduct. | high |
| 01 | The United States alleges Tetra Tech EC disposed of radiologically contaminated soil in trenches instead of secure facilities at one of the nation’s most complex Superfund sites. The Navy must now redo the entire radiological investigation and cleanup. | high |
| 02 | Tetra Tech EC will pay $40 million plus interest to settle CERCLA claims while denying all allegations of wrongdoing. The company admits no liability and faces no requirement to acknowledge harm to the Hunters Point community. | high |
| 03 | The partial settlement resolves only one of five claims in the government’s complaint. False Claims Act violations and common law breach of contract claims remain pending, meaning the full scope of alleged misconduct has not been adjudicated. | high |
| 04 | Taxpayers bear the cost of redoing cleanup work at Hunters Point. The $40 million settlement may not fully cover the Navy’s past and future response costs, leaving the public to pay the difference while Tetra Tech EC moves forward. | high |
| 05 | The Hunters Point community, a historically underserved neighborhood in southeast San Francisco, receives no direct compensation, no health monitoring, and no formal role in ongoing cleanup oversight despite bearing the greatest health and economic risks. | high |
| 06 | This case exemplifies how environmental remediation contracts can fail when corporate profit incentives clash with public health obligations, and how settlements can resolve government claims while leaving communities without meaningful accountability or restitution. | high |
| 07 | The decree demonstrates that even at Superfund sites with decades of regulatory attention, alleged corporate misconduct can occur and be resolved through settlements that prioritize cost recovery over transparency, community protection, and systemic reform. | high |
| 08 | Without structural changes to contract oversight, enforcement mechanisms, and community empowerment, the pattern revealed in this partial consent decree is likely to recur at other contaminated sites across the nation. | medium |
Timeline of Events
Direct Quotes from the Legal Record
“The United States alleges that, among other things, Tetra Tech EC disposed of soils that were contaminated with radionuclides above action levels in trenches in various locations at the Site.”
💡 This is the government’s central claim: Tetra Tech EC allegedly dumped radioactive soil in trenches instead of properly disposing of it in secure facilities.
“The Navy alleges it is required to complete the investigation and cleanup to comply with statutory and regulatory standards and alleges it cannot do so relying on Tetra Tech EC’s work.”
💡 The Navy explicitly states it cannot trust the contractor’s cleanup work, forcing a complete do-over at taxpayer expense.
“Accordingly, the Navy alleges that oversight agencies, the United States Environmental Protection Agency and California Department of Public Health, required the Navy to undertake a new site investigation and cleanup at the Site.”
💡 State and federal regulators determined the original cleanup was so flawed it had to be completely redone.
“The United States alleges that Tetra Tech EC is liable pursuant to Sections 107(a)(2) and (4) as an operator of a facility at the time of the disposal of hazardous substances and as a transporter of hazardous substances for disposal.”
💡 The government bases liability on Tetra Tech EC’s dual role as both the entity operating the facility and transporting contaminated materials.
“The Settling Defendant does not admit any liability to the United States arising out of the transactions or occurrences alleged in the Second Amended Complaint, and the United States does not admit any liability to Settling Defendant arising out of the transactions or occurrences alleged in the Settling Defendant’s Counterclaim against the United States.”
💡 Despite the $40 million payment, Tetra Tech EC formally denies all wrongdoing and the settlement includes no admission of liability.
“This Consent Decree resolves only the Fifth Claim for Relief in the Second Amended Complaint and the Counterclaim asserted by Tetra Tech EC in its Answer and Counterclaim. It is styled as a ‘partial’ consent decree because the First through Fourth Claims for Relief in the Second Amended Complaint are not addressed herein.”
💡 This settlement covers only environmental cleanup costs, not False Claims Act violations or breach of contract, leaving major allegations unresolved.
“This incurred response costs and will continue to incur response costs into the future as the investigation continues.”
💡 The Navy’s cleanup costs are ongoing and may exceed the $40 million settlement, meaning taxpayers bear additional expenses.
“Within 30 days after the Effective Date, Settling Defendant shall pay to DON $40,000,000 (forty million dollars) plus an additional sum for Interest on that amount calculated from the date of lodging through the date of payment.”
💡 This specifies the exact settlement amount and adds interest charges calculated from the date the decree was filed.
“If any amounts due under Paragraph 5 (Payment by Settling Defendant for Response Costs) are not paid by the required date, Settling Defendant shall be in violation of this Consent Decree and shall pay, as a stipulated penalty, in addition to the Interest required, $25,000 per violation per day that such payment is late.”
💡 The decree includes automatic daily penalties to ensure Tetra Tech EC cannot delay payment without significant financial consequences.
“The Navy operated the shipyard from 1940 to 1974 and, during that time, it used Hunters Point to house the Naval Radiological Defense Laboratory and to decontaminate ships.”
💡 This explains why the site contains radioactive contamination requiring specialized cleanup that Tetra Tech EC was hired to perform.
“In 1989, Hunters Point was placed on the National Priorities List (‘NPL’) under the Comprehensive Environmental Response, Compensation and Liability Act (‘CERCLA’), requiring a long-term cleanup plan.”
💡 The site has been recognized as a priority for cleanup for over 35 years, yet alleged contractor misconduct continues to delay remediation.
“This Consent Decree is binding upon the United States and upon Settling Defendant and its successors and assigns.”
💡 The decree binds only the government and Tetra Tech EC, with no provisions for community input, compensation, or oversight role for affected residents.
“The United States reserves all rights against Settling Defendant with respect to… liability for damages for injury to, destruction of, or loss of natural resources, and for the costs of any natural resource damage assessments.”
💡 The settlement does not cover environmental damages or health impacts, which the government can still pursue separately.
“The Parties agree, and by entering this Consent Decree this Court finds, that this Consent Decree constitutes a judicially-approved settlement pursuant to which the Settling Defendant has, as of the Effective Date, resolved liability to the United States within the meaning of Section 113(f)(2) of CERCLA, 42 U.S.C. § 9613(f)(2), and is entitled, as of the Effective Date, to protection from contribution actions or claims.”
💡 This settlement shields Tetra Tech EC from being sued for contribution by other potentially responsible parties for this contamination.
“The United States and Settling Defendant agree, and this Court by entering this Consent Decree finds, 1) that this Consent Decree has been negotiated by the Parties in good faith, 2) that settlement of this matter without further litigation and without the admission or adjudication of any issue of fact or law is appropriate… and 4) that this Consent Decree is fair, reasonable, and in the public interest.”
💡 The court’s approval includes a finding that avoiding trial and having no admission of wrongdoing serves the public interest, a conclusion many community advocates would dispute.
Frequently Asked Questions
DOJ source for this legal fight: https://www.justice.gov/enrd/media/1385411/dl?inline
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