National Wildlife Federation v. United States Environmental Protection AgencyNational Wildlife Federation v. United States Environmental Protection Agency
Opinion for the Court filed by Circuit Judge WALD.
The National Wildlife Federation (“NWF”) petitions this court for review of a regulation promulgated by the Environmental Protection Agency (“EPA” or “agency”) which allows the EPA discretion to refuse to initiate proceedings to withdraw a state’s primary enforcement responsibility, or “primacy,” for national drinking water standards under the Safe Drinking Water Act (“SDWA” or “Act”) after it has formally “determined” pursuant to § 1413 of the Act that the state no longer meets primacy requirements. While we agree with the EPA that the SDWA confers wide discretion on the agency to prescribe the manner in which it “determines” that a state no longer satisfies the statutory primary enforcement duties, we find it contrary to the plain language of the Act for the EPA to refuse to initiate withdrawal proceedings once it has made the determination that the state no longer is in
I. The Statutory and Regulatory Scheme
The Safe Drinking Water Act of 1974,
The Administrator shall, by regulation ..., prescribe the manner in which a State may apply to the Administrator for a dеtermination that the [primacy] requirements ... are satisfied with respect to the State, the manner in which the determination is made, the period for which the determination will be effective, and the manner in which the Administrator may determine that such requirements are no longer met.
Pursuant to the statute, the EPA adopted regulations in 1976 which elaborated on the criteria for states to obtain primacy and specified that once primacy became effective, it would continue until terminated.
Congress substantially amended the SDWA in 1986 to provide, among other things, that the EPA regulate 83 specified contaminants by June, 1989. Pub.L. No. 99-339, 100 Stat. 642 (1986). In response, the EPA issued new primacy regulations in 1989 which required states to implement the new standards within the statutorily-prescribed 18-month period or apply for up to a two-year extension when the state “cannot meet the original deadline for rea
When, on the basis of the Administrator’s review or other available information, the Administrator determines that a State no longer meets the [primacy] requirements ..., and the State has failed to request or has been denied an extension under§ 142.12(b)(2) of the deadlines for meeting those requirements, or has failed to take other corrective actions required by the Administrator, the Administrator may initiate proceedings to withdraw program approval. The Administrator shall notify the State in writing of EPA’s intention to initiate withdrawal proceedings and shall summarize in the notice the information available that indicates that the State no longer meets such requirements.
54 Fed.Reg. 52,140 (1989) (emphasis added). At oral argument, the EPA counsel confirmed that this notification to the State represented the initiation of withdrawal proceedings. The procedures to be followed subsequent to notifying the state were left unchanged from the 1976 regulation. The offending state was permitted 30 days to submit evidence of compliance, after which the EPA was required to make what amounts to a second “determination” of noncompliance.
Id.; see
EPA has always had discretion under the Act and primacy regulations to determine when to initiate program withdrawal from States that no longer meet the requirements for primacy.... EPA has revisedsection 142.17(a)(2) ... to make clear that the Agency’s decision to initiate withdrawal whenever it determines that a State no longer meets primacy requirements ... is discretionary.
54 Fed.Reg. 52,130 (1989). In 1990, the NWF brought suit, challenging the new
After notice and comment, the EPA reissued
[T]he previous regulation stated that the Administrator shall notify the State when information “indicates” that the State no longer meets primacy requirements. Under the new regulation, the Administrator may initiate program withdrawal proceedings when the Administrator “determines” that the State no longer meets primacy requirements. EPA substituted this term to clarify and emphasize that a finding that a State no longer meets the requirements for primacy is a decision that rests within the discretion of the Administrator.
Id. at 25,049.
II. Statutory Intent
In reviewing the EPA’s construction of the SDWA, which the agency is charged with administering, we must first decide “whether Congress has directly spoken to the precise question at issue.”
Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc.,
First, the Act affords the EPA wide discretion to establish the procedures and criterion for deciding when to grant and withdraw primacy. Section 1413(b) provides that the EPA shall “prescribe the manner in which a State may apply to the Administrator for a determination that the [primacy] requirements ... are satisfied with respect to the State, the manner in which the determination is made, the period for which the determination will be effective, and the manner in which the Administrator may determine that such requirements are no longer met.”
Second, even where a “determination” of noncompliance is mаde, the statute does not require the agency to immediately withdraw primacy. Rather, the EPA is directed to provide notice and a public hearing before its determination of nonconformity with the primacy standards becomes effective.
Thus, the SDWA builds ample discretion into the front-end of the EPA’s decisionmаking process by giving the agency discretion to decide “the manner in which the Administrator may determine that [primacy] requirements are no longer met.”
What the EPA, however, is attempting to do in the part of
Section 1413(a) of the SDWA, which provides that a state “has primary enforcement responsibility for public water systems during any period for which the Administrator determines” that the state satisfies the primacy criteria, does not relate only to the grant оf primacy but clearly envisions an ongoing obligation on the part of the EPA to monitor each primacy state’s conformity; an obligation recognized by the EPA in its regulation mandating annual reviews,
The EPA is given discretion in § 1413(b) on how to make that determination and how to conduct withdrawal proceedings, but not on whether to permit the state to continue its primary status following a formal “determination” that the primacy requirements are no longer met. The grant of procedural discretion in § 1413(b) does not overrule the substantive requirement of § 1413(a) that a state retains primacy only so long as the EPA determines the state to be in compliance with the primacy requirements. Congress clearly meant a “determination” to be not merely an indication or preliminary assessment of noncompliance, but rather a conclusion from which stаtutory consequences would flow: “[Bjefore a determination of the Administrator that such requirements are met or are no longer met with respect to a State
may become effective,
the Administrator shall notify such State of the determination and the reasons therefor and shall provide an opportunity for public hearing on the determination.”
The EPA posits that its 1991 regulation is simply a reassertion of the agency’s longstanding position, first announced in the 1976 regulation, that the agency retains the discretion to decide when to initiate primacy withdrawal. The agency explains: “EPA understood that its initial finding of state program deficiencies — whether cast as an ‘indication’ or as a ‘determination’ — is typically an informal finding which may but
need not
lead tо written notice to a state.” Respondent’s Brief at 32 (emphasis in original). However, on the face of the 1976 regulation, when information indicated that a state no longer met the primacy requirements, the Administrator was
required
to notify the state that it no longer met the primacy requirements and permit the state to submit evidence to the contrary.
In reaching today’s decision, we are of course cognizant of the principle enunciated in
Heckler v. Chaney,
Second, and most critically, the presumption of unreviewability does not apply where there is “law to apply.”
Citizens to Preserve Overton Park, Inc. v. Volpe,
III. Conclusion
In amending the primacy withdrawal regulation in 1991, the EPA asserted that it must have the flexibility of pursuing options short of primacy revocation in dealing with state program deficiencies.
See
56 Fed.Reg. 25,048. Because § 1413 of the SDWA is a “broad grant of discretion to EPA to establish a system for grant and withdrawal of primacy,”
National Wildlife Federation,
Finding this aspect of the EPA’s primacy withdrawal regulation contrary to the language of the SDWA, we grant the petition for review and remand to the agency for modificatiоn in light of this opinion.
It is so ordered.
Notes
. The part of the regulation permitting this “second" determination is not being challenged in the instant petition. See Respondent's Brief at 19 n. 4. Thus, the only question before us is whether the EPA could, consistent with the SDWA, change its 1976 regulation that required the agency to notify the state after information “indicates” that the state no longer meets the primacy requirements to the 1991 version that permits the agency to do nothing after it “determines” the state no longer meets the primacy requirements.
. The EPA had explained that the failure to invоke the notice and comment rulemaking process was based on its belief that the new regulation "constitutes only a clarification of the Agency’s discretion under the Act and existing regulations to initiate withdrawal procedures.” 54 Fed.Reg. 52,130-31 (1989).
. Moreover, we note that the enforcement decision involved here relates to whether federal or state authorities shall have primary responsibility for monitoring the water quality of an entire state’s public water supply system. That kind of federal/state allocation of enforcement authority is somewhat different from the typical enforcement context in which
Chaney
originated or is customarily applied.
See Chaney,