Before the Court are five pending motions. For the reasons that follow, the Court will deny the Plaintiffs' Motion for Leave to Amend and Supplement the Complaint, Dkt. 63, and grant the Defendants' Motion to Dismiss, Dkt. 60. In addition, because the Court will grant dismissal, the Court will deny as moot the Plaintiffs' Motion for Summary Judgment, Dkt. 20, the Defendants' Cross-Motion for Summary Judgment or Dismissal or Transfer, Dkt. 32, and the Intervenor-Defendant's Cross-Motion for Summary Judgment or Dismissal or Transfer, Dkt. 49.
I. Background
The Clean Water Act prohibits "the discharge of any pollutant by any person" except as authorized by the Act,
The EPA enforces effluent limitations and standards through, among other programs, the National Pollutant Discharge Elimination System program. Under that program, the EPA issues permits allowing power plants to discharge pollutants that wash downstream "upon [the] condition that such discharge will meet ... all applicable requirements under [various provisions of the Clean Water Act]."
This case involves three actions taken by the EPA with regard to effluent limitations
A. Effluent Limitations under the Clean Water Act
The EPA promulgated the Steam Electric Power Plant Effluent Limitations Guidelines Rule (ELG Rule) on November 3, 2015. See
On April 25, 2017, the EPA issued an Indefinite Stay of the ELG Rule.
On September 18, 2017, the EPA promulgated the ELG Rule Amendment. See Postponement of Certain Compliance Dates for ELGs for Steam Electric Power Generating Point Source Category,
B. Procedural History
The plaintiffs are eight environmental advocacy organizations that seek to improve water quality, particularly by reducing water pollution from large sources such as power plants.
One week later, the EPA promulgated the ELG Rule Amendment. Soon after, on September 21, 2017, the EPA again moved to dismiss this case, arguing that the case is moot because the ELG Rule Amendment withdraws the Indefinite Stay challenged by the plaintiffs. Dkt. 60.
On October 5, 2017, the plaintiffs moved for leave to amend and supplement their complaint to add two claims challenging the ELG Rule Amendment under the Administrative Procеdure Act.
II. Plaintiffs' Motion for Leave to Amend and Supplement the Complaint
Whereas their initial complaint challenged the Indefinite Stay, the plaintiffs now seek to add two claims challenging the ELG Rule Amendment. Dkt. 63. The proposed claims assert that the EPA violated the Administrative Procedure Act by promulgating the ELG Rule Amendment (1) in excess of the agency's statutory authority and (2) without considering all relevant factors and providing an adequate justification for the agency's decision. See Proposed Am. Compl. ¶¶ 104-11. The proposed claims, however, are futile, and they would unduly delay and alter the scope of this litigation. Therefore, the Court will deny the plaintiffs' motion.
A. Legal Standard
An addition to a pleading may be an "amendment" under Rule 15(a) or a "supplement" under Rule 15(d) of the Federal Rules of Civil Procedure. The distinction "is in most instances of little moment," but an amendment "typically rest[s] on matters in place prior to the filing of the original pleading," while the "distinguishing feature of [a supplement] is that it sets forth 'transactions or occurrences or events which have happened since the date of the pleading sought to be supplemented.' " United States v. Hicks ,
Rule 15(d) of the Federal Rules of Civil Procedure provides that "the court may , on just terms, permit a party to serve a supplemental pleading setting out any transaction, occurrence, or event that happened after the date of the pleading to be supplemented." Fed. R. Civ. P. 15(d) (emphasis added). Some cases state that Rule 15(d) motions are "subject to the same standard" as Rule 15(a) motions, see, e.g., Wildearth Guardians v. Kempthorne ,
But the two rules are not the same. Rule 15(d) is permissive: it tells courts that they "may" grant leave to supplement, while Rule 15(a)(2) states that courts "should"
Even looking past the text of the rules to this Circuit's caselaw discussing them, the Rule 15(d) standard overlaps with the Rule 15(a)(2) standard, but they are not the "same standard." Wildearth Guardians ,
B. Jurisdiction
In this case, the plaintiffs' proposed claims are futile because this Court laсks jurisdiction to review them. The Administrative Procedure Act generally provides for district court review of EPA actions.
To begin, it is undisputed that the 2015 ELG Rule promulgated effluent limitations within the meaning of Section 1369(b)(1). In particular, the ELG Rule established effluent limitations for six wastestreams generated by new and existing steam electric power plants; the earliest compliance deadlines for those effluent limitations were November 1, 2018.
The plaintiffs in this case, by contrast, maintain that the ELG Rule Amendment falls outside the ambit of Section 1369(b)(1) because the Amendment does not promulgate "any new limitations , but instead only postpones the effective date of effluent limitations that were previously promulgated." Pls.' Reply at 7, Dkt. 71. Under the plaintiffs' reading, the Clean Water Act may require parallel and potentially redundant litigation: the courts of appeals directly review any regulation that initially promulgates a new effluent limitation, while district courts review any subsequent changes to the regulation that do not rise to the level of "new restrictions."
First, the ELG Rulе Amendment approves or promulgates "limitation[s] related to the discharge of pollutants" by subjecting power plants to different effluent limitations for all five wastestreams implicated by the Indefinite Stay issued in April 2017. Nat'l Ass'n of Mfrs. ,
When the ELG Rule Amendment was promulgated, much of the ELG Rule was not in effect; rather, the Stay had indefinitely postponed compliance for five wastestreams.
Second, the Amendment approves or promulgates limitations related to the discharge of pollutants by revising the ELG Rule. In particular, the Amendment changes the ELG Rule's earliest compliance deadlines for two wastestreams: bottom ash transport water and flue gаs desulfurization wastewater.
To illustrate, consider a road with a speed limit of forty miles per hour. Changing the road's speed limit sets a new speed limit, and the analysis is no different if the change only affects future compliance deadlines. If a rule (like the ELG Rule) sets twenty miles per hour as a new speed limit that will apply on the road starting in late 2018, and a later rule (like ELG Rule Amendment) revises the compliance deadline to 2020, the later rule sets a different speed limit on that road for the period from late 2018 to 2020: forty miles per hour instead of twenty miles per hour.
In fact, the plaintiffs acknowledge as much. Their proposed amended complaint characterizes the ELG Rule Amendment as "a revision of the ELG [R]ule's effluent limitations." Proposed. Am. Compl. ¶¶ 108-11. And the proposed complaint asserts that the revision was unlawful because the EPA did not make findings required by
Finally, the limitations are promulgated "under section 1311, 1312, 1316, or 1345," as required to fall within the scope of Section 1369(b)(1)(E) ; see also Friends of Earth v. EPA ,
Therefore, the ELG Rule Amendment approves or promulgates limitations within the meaning of Section 1369(b)(1), and challenges to the Amendment belong in the federal courts of appeals.
C. Delay and Scope
Furthermore, the plaintiffs' proposed claims would unduly delay and alter the scope of this litigation. Leave to supplement is warranted if a plaintiff shows that leave "will promote the economic and speedy disposition of the entire controversy between the parties, will not cause undue delay or trial inconvenience, and will not prejudice the rights of any of the other parties to the action." Hall ,
Here, the plaintiffs' proposed claims would delay resolution of this case. The parties have already completed multiple rounds of briefing on various dispositive motions, see Dkt. 20; Dkt. 32; Dkt. 49; Dkt. 60, including the pending motion to dismiss that predates the plaintiffs' request to supplement the complaint. The EPA filed that motion on September 21, 2017. Dkt. 60. Fourteen days later, the plaintiffs filed their opposition brief, Dkt. 64, but also moved for leave to supplement the complaint with two claims challenging the ELG Rule Amendment, Dkt. 63. Granting leave to supplement wоuld necessitate yet another round of briefing based on a different administrative record, and it would prevent the Court from resolving the pending dispositive motions, which are otherwise ripe for resolution and which the Court addresses today. See infra Section III; see also City of Williams v. Dombeck ,
Moreover, the plaintiffs' proposed claims would significantly alter the scope of this case. The current complaint asserts six claims against the Indefinite Stay, all of which are specific to the Stay and Section 705 of the Administrative Procedure Act. See Compl. ¶¶ 56-89 (the Indefinite Stay violates the Administrative Procedure Act because it does not comply with various requirements of Section 705, departs from the EPA's prior practice, is inadequately
In contrast, the plaintiffs' two proposed claims would challenge the ELG Rule Amendment on wholly different grounds. Although the Amendment and the Stay are superficially similar because both broadly relate to the ELG Rule, the Amendment is a different type of agency action (a final rule promulgated after notice and comment instead of a Section 705 stay), promulgated based on a different administrative record, pursuant to different authority (the effluent limitations provisions of the Clean Water Act, not Section 705 of the Administrative Procedure Act). And due to these differences, the proposed claims assert different causes of action, namely that (1) the Amendment еxceeds the EPA's statutory authority under the Clean Water Act, which requires "compliance with effluent limitations" "as expeditiously as possible, but in no case later than three years after the date such limitations are promulgated," Proposed Am. Compl. ¶¶ 104-106 (quoting
The proposed claims are thus factually and legally distinct from the current claims. And because the current claims are moot, see infra Section III, permitting the plaintiffs to supplement would effectively swap the current complaint for an entirely new complaint. Thus, the proposed claims-in addition to being futile-would unduly delay and alter the scope of this litigation, and the Court will therefore deny leave to supplement the complaint. See Nat'l Treasury Emps. Union v. Helfer ,
III. Defendants' Motion to Dismiss for Lack of Jurisdiction
Without any supplemental claims, the plaintiffs' complaint challenges only the Indefinite Stay issued by the EPA in April 2017. This challenge, however, is moot because the Stay was withdrawn in September 2017 and the case does not implicate exceptions to the mootness doctrine. Because the Court lacks jurisdiction to review moot cases, the Court will grant the defendants' motion to dismiss this case. Dkt. 60.
A. Legal Standard
Under Rule 12(b)(1), a party may move to dismiss an action when the court lacks subjectmatter jurisdiction. Fed. R. Civ. P. 12(b)(1). A motion to dismiss for mootness is properly brought under Rule 12(b)(1) because "mootness itself deprives the court of jurisdiction." Indian River Cty. v. Rogoff ,
A case is moot "when the issues presented are no longer live or the parties lack a legally cognizable interest in the outcome." Schmidt v. United States ,
"When ruling on a Rule 12(b)(1) motion, the court must treat the complaint's factual allegations as true and afford the plaintiff the benefit of all inferences that can be derived from the facts alleged." Jeong Seon Han v. Lynch ,
B. Mootness
This case is moot because the Indefinite Stay is no longer in effect. The EPA withdrew the Stay via a final rule, the ELG Rule Amendment, in September 2017. See
The withdrawal of the Indefinite Stay and its replacement by the ELG Rule Amendment were "intervening events [that] make it impossible to grant the prevailing party effective relief." Lemon ,
Likewise, the Court cannot grant the plaintiffs' requests that the Court reinstate the compliance deadlines imposed by the ELG Rule and indefinitely postponed by the Stay. See Compl. at 21. The deadlines for three of the wastestreams were already reinstated by the ELG Rule Amendment, see
C. Exceptions
Moreover, this case does not implicate the mootness exceptions for challenged actions that are "voluntarily ceased" or for actions that are "capable of repetition yet evade review." See Cierco ,
1. Voluntary Cessation
"As a general rule, a defendant's 'voluntary cessation of allegedly illegal conduct does not deprive [a court] of power to hear and determine the case." Id. at 414 (quoting Cty. of L.A. v. Davis ,
First, there is no reasonable expectation that the challenged stay will recur. The EPA not only withdrew the Indefinite Stay, but also replaced the Stay with the ELG Rule Amendment. As a result, this case does not present a situation in which the agency voluntarily ceased an informal action but might reinstate the same action at any time. Rather, the EPA deliberated via full notice-and-comment rulemaking, then decided that "there is no longer any need for the Agency to maintain" the Stay and formalized that decision by partially changing compliance dates for some wastestreams while imposing compliance dates for other wastestreams as originally set by the ELG Rule. See
The prospect that litigants could be injured "if" a court were someday to invаlidate the federal regulations and "if" California thereafter were to reimpose its standards, is little different from the prospect that any litigant could be injured "if" EPA (or Congress) were eventually to enact a rule it presently had under consideration. To seek judicial review of such a contemplated-but-not-yet-enacted rule is to ask the court for an advisory opinion in connection with an event that may never come to pass.
The plaintiffs look even further into the future when they assert that the EPA might reinstate the stay if the agency is still reconsidering the ELG Rule in late 2020, i.e. , when the Amendment's new compliance deadlines begin to kick in. See Pls.' Opp'n at 10-11. In support, the plaintiffs point tо the preamble of the ELG Rule Amendment, which stated: "If EPA does not complete a new rulemaking by November, 2020, it plans to further postpone the compliance dates such that the earliest compliance date is not prior to completion of a new rulemaking."
And even if the rulemaking ends up requiring three years, thе EPA may not issue a stay like that challenged here. Instead, the EPA may postpone the compliance dates with a notice-and-comment rule, just as it did via the ELG Rule Amendment. And any future stay would likely involve only the two wastestreams currently under reconsideration, not the five wastestreams addressed by the challenged stay, because the ELG Rule Amendment already reinstated deadlines for three of the five wastestreams based on an explicit EPA decision not to reconsider the ELG Rule's requirements for those wastestreams. See
Finally, and even more speculatively, the plaintiffs argue that the challenged stay is likely to recur because the EPA and other agencies havе stayed or might stay other regulations. See Pls.' Opp'n at 11-12. The plaintiffs identify one other action by the EPA to stay different regulations under Section 705 of the Administrative Procedure Act, see
Turning briefly to the second prong of the "voluntary cessation" exception to mootness, intervening events have completely and irrevocably eradicated the effects of the alleged violation. Because the Indefinite Stay was withdrawn and replaced by the ELG Rule Amendment, the Stay is "now devoid of any legal effect." Coal. of Airline Pilots Ass'ns ,
To resist this conclusion, the plaintiffs conjecture that the withdrawal "has not alleviated ... the disruptive effects that the [S]tay has had on state and utility implementation of the ELG Rule." Pls.' Opp'n at 14. But regardless of whether the Indefinite Stay encouraged states and utilities to delay implementation during summer 2017, the Stay ceased to have that effect when it was withdrawn and replaced in September 2017. Consider the plaintiffs' examples. The plaintiffs assert that the Stay continues to have harmful effects because the state of Nebraska and an Indiana utility cited the Stay in summer 2017 when making compliance decisions regarding the ELG Rule. The extent to which these past compliance decisions would have differed in the absence of the Stay, however, remains entirely speculative. And regardless of whether Nebraska and the Indiana utility modified their behavior based on the Stay, the ELG Rule Amendment requires them to adhere to a different compliance regime, from which any continuing harms will stem. As a result, the ELG Rule Amendment eradicated the effects of the allegedly unlawful stay,
2. Capable of Repetition yet Evading Review
Similarly inapplicable is the mootness exception for disputes that are "capable of repetition yet evade review." This exception applies if the plaintiffs show that (1) "the challenged action was in its duration too short to be fully litigated prior to its cessation or expiration" and (2) "there was a reasonable expectation that the same complaining party would be subjectеd to the same action again." United Bhd. of Carpenters v. Operative Plasterers' Int'l Ass'n ,
CONCLUSION
For the foregoing reasons, the Court denies the Plaintiffs' Motion for Leave to Amend and Supplement the Complaint, Dkt. 63, and the Court grants the Defendants' Motion to Dismiss, Dkt. 60. In addition, because the Court dismisses this action, the Court denies as moot the Plaintiffs' Motion for Summary Judgment, Dkt. 20, the Defendants' Cross-Motion for Summary Judgment or Dismissal or Transfer, Dkt. 32, and the Intervenor-Defendant's Cross-Motion for Summary Judgment or Dismissal or Transfer, Dkt. 49. A separate order consistent with this decision accompanies this memorandum opinion.
Notes
The three wastestreams are flue gas mercury control wastewater, fly ash transport water, and gasification wastewater.
The eight organizations are Clean Water Action, Environmental Integrity Project, Sierra Club, Waterkeeper Alliance, Inc., PennEnvironment, Inc., Chesapeake Climatе Action Network, Physicians for Social Responsibility Chesapeake, Inc., and Prairie Rivers Network. Compl. ¶¶ 1, 10-18; see also Proposed. Am. Compl. ¶¶ 1, 11-20, Dkt. 63-3.
The intervenor-defendant Utility Water Act Group also cross-moved for summary judgment, dismissal, or transfer. Dkt. 49.
Contemporaneously, the plaintiffs filed a protective petition for review of the ELG Rule Amendment in the U.S. Court of Appeals for the D.C. Circuit. Clean Water Action v. Pruitt , No. 17-1216 (D.C. Cir. Oct. 11, 2017), Doc. 1698542. The D.C. Circuit transferred the petition to the Fifth Circuit pursuant to
Upon receiving the transferred petition, the U.S. Court of Appeals for the Fifth Circuit stayed further proceedings until a decision by this Court on the pending motions in this case. See Order, Clean Water Action v. EPA , No. 18-60079 (5th Cir. Apr. 5, 2018), Doc. 514417108; see also Dkt. 84 (notice of order).
As noted, the six wastestreams are: bottom ash transport water, combustion residual leachate, flue gas desulfurization wastewater, flue gas mercury control wastewater, fly ash transport water, and gasification wastewater. See
This point also distinguishes the ELG Rule Amendment from other EPA actions not considered effluent limitations in cases cited by the plaintiffs. See, e.g. , Pls.' Reply at 9-10, Dkt. 71. Those cases involved EPA actions that permanently exempted certain entities or effluents from compliance, and thus "impose[d] no restrictions," Friends of the Everglades v. EPA ,
The Court's conclusion requires no recourse to the "practical-effects" test rejected as inconsistent with the statutory text in National Ass'n of Manufacturers , nor any other functional approach. See
In National Ass'n of Manufacturers , the U.S. Supreme Court assessed whether courts of appeals or district courts have jurisdiction to review the EPA's Waters of the United States Rule, which defines the geographic scope of "waters of the United States" for purposes of the Clean Water Aсt. See
The ELG Rule Amendment, by contrast, imposes enforceable duties and establishes regulatory requirements, specifically the limitations discussed above. Because the Amendment "impose[s] restrictions on the discharge of certain pollutants," it falls within the ambit of Section 1369(b)(1)(E). Id. at 629. In accordance with National Ass'n of Manufacturers, this conclusion is "grounded in the statutory text," not any functional approach. Id. at 630.
