American Paper Institute, Inc. v. United States Environmental Protection AgencyAmerican Paper Institute, Inc. v. United States Environmental Protection Agency
L. Rep. 21,361,
AMERICAN PAPER INSTITUTE, INC., James River-Norwalk, Inc.,
Nekoosa Packaging Corporation, Fort Howard
Corporation, and Stone Container
Corporation, Petitioners,
v.
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, Respondent.
Nos. 88-1395, 88-1396.
United States Court of Appeals,
Seventh Circuit.
Argued Nov. 30, 1988.
Decided Aug. 1, 1989.
Revised Nov. 27, 1989.*
Charles Kamps, Nancy K. Peterson, Quarles & Brаdy, Milwaukee, Wis., Russell S. Frye, Chris Montgomery, Chadbourne & Parke, Washington, D.C., David E. Evans, McGuire, Woods, Battle & Boothe, Richmond, Va., Jill A. Well, Smith & Schnacke, Cincinnati, Ohio, for petitioners.
Steven Neugeboren, E.P.A., Washington, D.C., Gary S. Guzy, Dept. of Justice, Land & Natural Resources Div., Washington, D.C., for respondent.
Before WOOD, Jr., and FLAUM, Circuit Judges, and FAIRCHILD, Senior Circuit Judge.
HARLINGTON WOOD, Jr., Circuit Judge.**
American Paper Institute (API) and four paper and pulp mill owners challenge the federal Environmental Protection Agency's (EPA's) authority to object to permits proposed by the Wisconsin Department of Natural Resources (WDNR) and to promulgate antidegradation regulations under the water pollution control statute,
I. BACKGROUND
A. Structure of the Clean Water Act
Disturbed over the ineffectiveness of existing water pollution control, Congress restructured the Federal Water Pollution Control Act (FWPCA) in 1972 "to restore and maintain the chemical, physical, and biological integrity of the Nation's waters."
Under the Act,1 the primary means of imposing water pollution control on dischargers or "point sources" is a permit system called the National Pollutant Discharge Elimination System (NPDES). Each point source must obtain a NPDES permit before it may emit identified pollutants into American waters. The NPDES permit restricts the quantity, rate, and concentration of pollutants that the point source may emit into the water and provides a schedule for compliance with the water quality standards and effluent limitations applicable to that point source. Any discharge without a NPDES permit is illegal.
The EPA administers the NPDES program in each state unless the EPA previously authorized a state program to issue NPDES permits.
If the EPA reaffirms its objections, the state and the EPA may proceed in either of two ways. The state may modify the terms of its proposed permit within thirty days of EPA's decision to stand by its objections.2 If the state agrees to modify the permit, it must again allow a сomment period before issuing the permit. If the state refuses to modify the proposed permit, the EPA may assume exclusive authority to issue the permit.
In addition to its duties under the NPDES program, the EPA must develop and oversee state promulgation of water quality standards for the waters of the United States.
B. The Present Challenge
The EPA, in February 1974, authorized WDNR to issue permits to point sources in Wisconsin. Pursuant to that authority, WDNR proposed to issue thirteen permits to paper and pulp mills in Wisconsin.
On September 10, 1986, the EPA notified WDNR that it objected to the thirteen permits that WDNR had proposed. The EPA spelled out its objections more specifically on November 28, 1986, allowed comments on the objections, and, at the request of WDNR and other interested parties, provided a public hearing on the objections. In response to comments made, the EPA modifiеd some of its objections, but on November 4, 1987, the EPA reaffirmed its remaining objections with regard to eleven of the permits.3 The EPA stated that the eleven proposed permits failed to properly monitor and limit the discharge of toxic pollutants as required by federal and state law and five of the eleven permits violated federal and state antidegradation policies. The EPA gave WDNR thirty days to modify the permits.
On December 3, 1987, WDNR modified the permits to meet the EPA's objections. American Paper Institute and four paper and pulp mill owners petitioned this court to review the EPA objections and the antidegradation policy supporting the objections. For the sake of clarity we will refer to all petitioners as American Paper Institute or API.4
II. DISCUSSION
American Paper Institute challenges the EPA's authority to object to the WDNR-proposed permits. API contends that the EPA exceeded its authority when it objected to proposed permits that, API argues, were within the guidelines and requirements of the Act. Furthermore, API claims that nowhere in the Act is the EPA authorized to promulgate an antidegradation policy for the states.
Arguing a lack of subject matter jurisdiction, the EPA asserts that the mеrits of API's claims are not reviewable in this court. The EPA contends that its actions are not reviewable because
Because we find that we lack subject matter jurisdiction to hear this appeal, we do not reach any of the EPA's or API's other arguments.
A. The EPA Objections to the State-proposed Permits
When the EPA objected to the permits proposed by WDNR, American Paper Institute asserts that, in effect, the EPA "denied a permit" within the meaning of
The Third Circuit has advocated a liberal interpretation of subsection 1369(b)(1). See Modine Mfg. Corp. v. Kay,
In the circumstances of this case, we must eschew the traditional benchmarks of statutory construction and turn toward the practical task of filling a vacuum of jurisdiction within the NPDES system. While we would prefer congressional guidance, this case forces us to fashion a scheme of judicial redress for state NPDES permits issued after EPA objection.
Both the FWPCA and the Clean Water Act evince a strong congressional intent to make the states, where possible, the primary regulators of the NPDES system. The statute itself declares:
It is the policy of the Congress to recognize, preserve, and protect the primary responsibilities and rights of States to prevent, reduce, and eliminate pollution, to plan the development and use (including restoration, preservation, and enhancement) of land and water resources, and to consult with the Administrator in the exercise of his authority under this chapter.
Appropriately, the courts have generally denied federal judicial review of state-issued permits. See, e.g., District of Columbia v. Schramm,
In Crown Simpson Pulp Co. v. Costle,
The Crown Simpson opinion emphasized the practical aspect of its decision. Natural Resources Defense Council v. EPA,
The Crown Simpson Court was most concerned with not creating a system of bifurcated review where federal district courts would review EPA objections to state-issued permits and federal appeals courts would review EPA issuance and denials оf its own permits. See Crown Simpson,
Were it not for the strong congressional scheme of state water pollution regulation, EPA оbjections to state permits could arguably be challenged in district court under the Administrative Procedure Act,
To cut off access to judicial review, a contrary legislative intent must be shown by clear and convincing evidence. Abbott Laboratories v. Gardner,
Having decided that the Act does not contemplate federal court review of state-issued permits, it is necessary to comment on the state court's role in this statutory scheme. When reviewing state-issued permits, state courts may examine challenges to any pertinent EPA objections. Because an EPA objection causes a state permit to issue in other than its proposed form, the propriety of an EPA objection might often be at issue when reviewing a state-issued permit. The state courts are perfectly competent to decide questions of federal law. See Younger v. Harris,
B. The EPA's Antidegradation Policy
American Paper Institute also asks this court to review the EPA's promulgation of an antidegradation policy, 40 C.F.R. Sec. 131.12 (1988), and the EPA Region V's interpretation of the antidegradation policy, EPA Region V Antidegradation Guidance, Dec. 3, 1986 (Petitioners' Brief, Appendix Vol. I, at 83). The EPA claims that these actions are not reviewable under
API argues that subsection 1369(b)(1)(E) provides us with jurisdiction to examine the EPA's antidegradation рolicy and the regional office's interpretation of the policy. Subsection (b)(1)(E) states:
Review of the Administrator's action ... (E) in approving or promulgating any effluent limitation or other limitation under
Congress did not explicitly provide for an antidegradation policy in the Act12 but defined effluent limitations in section 1362 as
[A]ny restriction established by a State or the Administrator on quantities, rates, and concentrations of chemical, physical, biological, and other constituents which are discharged from point sources into navigable waters, the waters of the contiguous zone, or the ocean, including schedules of compliance.
When examining whether an EPA regulation is an "effluent limitation or other limitation" for purposes of subsection 1369(b)(1)(E), other courts have considered the specificity of the regulation, the persons to whom the regulation is directed, and the effect of the regulation on point sources. See, e.g., Natural Resources Defense Council v. EPA,
The Court of Appeals for the District of Columbia Circuit interprets the term "effluent limitation or other limitation" as used in subsection 1369(b)(1)(E) to include more than numerical limitations. The D.C. Circuit held that Consolidated Permit Regulations (CPRs) were limitations within the meaning of subsection 1369(b)(1)(E). National Resources Defense Council v. EPA,
API urges that we take an expansive approach, like that of the D.C. Circuit, and find jurisdiction because the antidegradation policy and regional office's interpretation place some restrictions on the effluents that may be emitted by a point source. If we accepted API's position, we would in effect allow the term "other limitation" to swallow up distinctions that Congress made between effluent limitations and other types of EPA regulations. Water quality standards would be arguably reviewable as effluent limitations--a position that we reject. Bethlehem Steel Corp. v. EPA,
This approach is not inconsistent with the D.C. Circuit's decisions. While the regulations before the D.C. Circuit implemented policy, they also were highly specific and detailed provisions that directed the point sources to engage in specific types of activity. The CPRs, for example, dictate who must apply for a permit and when, the information that must be contained in a NPDES permit, the аpplication requirements for existing point sources and for new sources, and other highly specific information. See 40 C.F.R. pts. 122-125 (1988).
In comparison, the antidegradation regulation and regional office's interpretation letter provide a general outline of the EPA's policy for maintaining existing water quality.13 The antidegradation regulation and regional office's interpretation letter require the state to maintain a water quality standard once that standard has been reached. They also allow the state to permit a point source to emit a greater amount of еffluent if the point source can prove that the change is necessary for economic development and that the water quality will not dip below the standard previously achieved. Like a water quality standard, the antidegradation regulation and regional office's letter dictate the type of uses and water quality criteria for the navigable water. See
The antidegradation regulation and regional office letter set policy to be applied to all point sources. They speak in general terms and do not specify what type of proof is needed, the methods to be employed to measure water quality, or the type of economic development that is considered necessary. The EPA addressed its antidegradation regulation and the regional office letter to the states and not to the point sources. See Commonwealth Edison Co. v. Train,
III. CONCLUSION
We therefore find that
Notes
The original opinion in this case was issued on August 1, 1989. This revised opinion is issued in light of matters raised in the petitioners' petition for rehearing and suggestion for rеhearing en banc
On consideration of the petitioners' petition for rehearing and suggestion for rehearing en banc, no judge in active service having requested a vote thereon, and all of the judges on the original panel having voted to deny rehearing, it is ordered that the aforesaid petition be, and the same is hereby, denied.
Judge Fairchild contributed to this amended opinion through the thoughts and ideas in his original concurrence
For the sake of clarity, we will refer to the water pollution control statute in its current form,
The state has ninety days to modify its proposed permit if no hearing is held.
In response to EPA objections, WDNR revised the permits it proposed for the Neenah Paper Company and the City of Appleton; based on those revisions, the EPA withdrew its objections to both permits. Neither permit is a subject of this appeal
American Paper Institute is a trade association, some of whose members requested the permits. Trade associations have standing to bring legal challenges on behalf of their members. Hunt v. Washington State Apple Advertising Comm'n,
Review of the [EPA] Administrator's action ... (F) in issuing or denying any permit under
See, e.g., S.Rep. No. 414, 92d Cong., 1st Sess. 71 (1971), U.S.Code Cong. & Admin.News 1972, p. 3668. ("It is expected that the States will play a major role in the administration of this program (NPDES)."), reprinted in 2 Legislative History of the Water Pollution Control Act Amendments of 1972, at 1415, 1489 (1973) [hereinafter FWPCA History ]; H.R.Rep. No. 911, 92d Cong., 2d Sess. 127 (1972) ("The Committee believes that the States ought to have the opportunity to assume the responsibilities that they have requested."), reprinted in 1 FWPCA History 753, 814; Staff Memo of Subcomm. on Investigations and Review, Comm. on Public Works and Transp., reprinted in 3 A Legislative History of the Clean Water Act of 1977, at 346 (1977) ("This process for approval of State permitting programs was included in the act to continue the primary State role in water pollution control....") [hereinafter Clean Water Act History ]; 123 Cong.Rec. 39,209 (1977) (remarks of Sen. Baker) ("The conferees believe that the State permit programs will continue to afford the best protection from potentially harmful discharges...."), reprinted in 3 Clean Water Act History 524; 2569 Cong.Rec. 10,206 (1972) (remarks of Rep. Harsha) ("Unless we have meaningful local and State participation and not a Federal dictatorship, the program will founder on the rocks of the generally inflexible."), reprinted in 1 FWPCA History at 355-56; 2569 Cong.Rec. 10,209 (1972) (remarks of Rep. Kluczynski) ("The States must play a prominent part in making the water pollution law work."), reprinted in 1 FWPCA History 363
The challenge brought in Crown Simpson preceded the 1977 amendments to FWPCA which empowered thе EPA to issue its own permit if the state refused to modify its proposed permit. The Supreme Court, however, reviewed the challenge after FWPCA was amended. Because the law applicable to the Crown Simpson challenge did not include the Clean Water Act amendment of 1977, the Supreme Court declined to "consider the impact, if any, of this amendment on the jurisdictional issue presented...."
We do not believe that our decision will lead to challenges of EPA objections in federal district courts under an implied statutory cause of action. It is true that district courts would most likely have the power to hear such a challenge under the general federal question jurisdiction of
A person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of a relevant statute, is entitled to judicial review thereof
The EPA also has the authority to withdraw approval of state NPDES programs.
The EPA argues that API must have brought the claim within 120 days of the promulgation of the antidegradation statute in order to obtain relief under
EPA contends that it promulgated the antidegradation policy under
The antidegradation regulation as issued by the EPA states:
(a) The State shаll develop and adopt a statewide antidegradation policy and identify the methods for implementing such policy pursuant to this subpart. The antidegradation policy and implementation methods shall, at a minimum, be consistent with the following:
(1) Existing instream water uses and the level of water quality necessary to protect the existing uses shall be maintained and protected.
(2) Where the quality of the waters exceed levels necessary to support propagation of fish, shellfish, and wildlife and recreation in and on the water, that quality shall be maintained and protected unless the Stаte finds, after full satisfaction of the intergovernmental coordination and public participation provisions of the State's continuing planning process, that allowing lower water quality is necessary to accommodate important economic or social development in the area in which the waters are located. In allowing such degradation or lower water quality, the State shall assure water quality adequate to protect existing uses fully. Further, the State shall assure that there shall be achieved the highest statutory and regulatory requirements for all new and existing рoint sources and all cost-effective and reasonable best management practices for nonpoint source control.
(3) Where high quality waters constitute an outstanding National resource, such as waters of National and State parks and wildlife refuges and waters of exceptional recreational or ecological significance, that water quality shall be maintained and protected.
(4) In those cases where potential water quality impairment associated with a thermal discharge is involved, the antidegradation policy and implementing method shall be consistent with section 316 of the Act.
C.F.R. Sec. 131.12 (1988)