NORTH CAROLINA COASTAL FISHERIES REFORM GROUP, et al. v. CAPT. GASTON LLC, et al.
No. 21-2184
United States Court of Appeals, Fourth Circuit
August 7, 2023
PUBLISHED
UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT
No. 21-2184
NORTH CAROLINA COASTAL FISHERIES REFORM GROUP; JOSEPH WILLIAM ALBEA; DAVID ANTHONY SAMMONS; CAPTAIN SETH VERNON; CAPTAIN RICHARD ANDREWS; DWAYNE BEVELL,
Plaintiffs - Appellants,
v.
CAPT. GASTON LLC; ESTHER JOY, INC.; HOBO SEAFOOD, INC.; LADY SAMAIRA INC.; TRAWLER CAPT. ALFRED, INC.; TRAWLER CHRISTINA ANN, INC.; TRAWLERS GARLAND AND JEFF, INC.,
Defendants - Appellees.
Argued: October 25, 2022 Decided: August 7, 2023
Before RICHARDSON and RUSHING, Circuit Judges, and Sherri A. LYDON, United States District Judge for the District of South Carolina, sitting by designation.
Affirmed by published opinion. Judge Richardson wrote the opinion, in which Judge Rushing and Judge Lydon joined.
Ventker, Marissa M. Henderson, VENTKER HENDERSON, PLLC, Norfolk, Virginia, for Appellee Esther Joy, Inc. Stevenson L. Weeks, WHEATLY, WHEATLY, WEEKS & LUPTON, PA, Beaufort, North Carolina; Charles D. Case, W. Dixon Snukals, Raleigh, North Carolina, Henry L. Kitchin, Jr., MCGUIREWOODS LLP, Wilmington, North Carolina, for Appellees Capt. Gaston LLC; Lady Samaira, Inc.; Trawler Capt. Alfred, Inc.; Trawler Christina Anne, Inc.; Hobo Seafood, Inc.; and Trawlers Garland and Jeff, Inc.
RICHARDSON, Circuit Judge:
Fisheries Reform Group alleges that shrimp trawlers operating in North Carolina’s Pamlico Sound are violating the Clean Water Act by engaging in two types of unpermitted activity: throwing bycatch overboard and disturbing sediment with their trawl nets. But these activities do not violate the Clean Water Act. The Act forbids the unpermitted discharge of a pollutant. Returning bycatch to the ocean is not discharging a pollutant, so throwing it overboard without a permit is not forbidden by the Act. Likewise, because the trawl nets merely kick up sediment already present in the Sound, their use does not discharge any pollutants either. Accordingly, we affirm the district court’s dismissal of Fisheries’ complaint.
I. Background
Defendants are commercial shrimpers in Pamlico Sound, a coastal estuary in North Carolina. Shrimpers harvest shrimp by dragging trawl nets along the ocean’s floor. The nets trap shrimp. But, along the way, the nets also stir up sediment, which later resettles on the ocean floor. They also inadvertently snare other fish and marine organisms. These other fish and marine organisms, many of which the trawlers cannot legally keep, are known as “bycatch.” Trawlers throw the bycatch overboard, returning it to the ocean.
Fisheries Reform Group seeks to change or limit the way trawlers discard bycatch and disturb sediment. To do so, it sued under the Clean Water Act’s citizen-suit provision, alleging that these shrimpers are violating the Act and must obtain Clean Water Act permits—on top of the fishing permits already required—to engage in commercial shrimping. The district court dismissed the suit for failure to state a claim, holding that the
Act does not regulate bycatch and that disturbing sediment with trawl nets does not violate the Act.
II. Discussion
We affirm the district court’s decision that Fisheries Reform Group fails to plausibly allege that shrimp trawlers are violating the Clean Water Act by either (1) throwing their bycatch back into Pamlico Sound, or (2) disturbing sediment on the Sound’s floor with their trawl nets, thereby causing it to resettle.
The Clean Water Act is a comprehensive scheme to reduce water pollution
navigable waters at specified disposal sites.”2
A. Fisheries’ bycatch claim fails
Fisheries claims that the shrimpers are violating the Clean Water Act’s prohibition on the “discharge” of “pollutants” by putting bycatch back into Pamlico Sound without a Clean Water Act permit. Bycatch, they argue, is a pollutant. A “pollutant” is defined to “mean[ ],” among other things, “biological materials.”3
So, relying on
together, Fisheries argues that dumping bycatch back into the ocean from a boat after it was hauled onboard by nets plausibly amounts to an addition to the ocean. On this theory, discharging bycatch without a permit would violate the Act.
That sounds plausible. And, viewed in isolation, we might well agree. Faced with a statute, we typically determine the text’s meaning based on the ordinary understanding of the language. And considering only the statutory text, Fisheries makes a plausible case for why returning
Yet, in appropriate cases, we have been instructed to consider, as a background rule, other legal interests that contextually inform our understanding of a statute’s meaning. For example, the rule of lenity teaches that we must resolve ambiguities in criminal statutes in favor of the criminal defendant. Other examples of background interpretive principles or rules of construction abound: constitutional avoidance, presumptions against implied repeal, liberal constructions to benefit Indians or soldiers, or the presumptions against retroactive or extraterritorial application. These background principles influence our
reading of a statute, sometimes even moving us to interpret a provision differently than we might otherwise.
Recently, the Supreme Court formalized another background principle: the major-questions doctrine. West Virginia v. EPA, 142 S. Ct. 2587, 2608–14 (2022); see also Biden v. Nebraska, 143 S. Ct. 2355, 2372–75 (2023). This background rule requires clear congressional authorization for agency action in “extraordinary cases” when the “history and breadth” and “economic and political significance” of the action at issue gives us “‘reason to hesitate before concluding that Congress’ meant to confer such authority” to act on the agency. West Virginia, 142 S. Ct. at 2608 (quoting FDA v. Brown & Williamson Tobacco Corp., 529 U.S. 120, 159–60 (2000)). The doctrine’s boundaries remain hazy,5 but the Supreme Court’s cases provide helpful guideposts.
As its name suggests, the major-questions doctrine applies only when the question at issue—i.e., the authority the agency is claimed to have—is a major one. That is, the question must have significant political and economic consequences. See, e.g., Nebraska,
143 S. Ct. at 2372–73 (finding a major question where the Secretary of Education sought to free 43 million borrowers from their obligations to repay
But that is not all. The Court has highlighted several other hallmarks that should send us searching for clear authorization from Congress before adopting an “expansive construction of the statute,” West Virginia, 142 S. Ct. at 2608 (quoting Brown & Williamson, 529 U.S. at 160), that would generate an “[e]xtraordinary grant[ ] of regulatory authority,” id. at 2609. One such hallmark is when the Act’s structure indicates that Congress did not mean to regulate the issue in the way claimed. See, e.g., Util. Air, 573 U.S. at 321–22; Brown & Williamson, 529 U.S. 138–39; Nebraska, 143 S. Ct. at 2373–74. Likewise, we might draw the same inference when there is a different, “distinct regulatory scheme” already in place to deal with the issue which would conflict with the agency’s newly asserted authority. See Brown & Williamson, 529 U.S. at 143–46.
Similarly, we are more hesitant to recognize new-found powers in old statutes against a backdrop of an agency failing to invoke them previously. See West Virginia, 142 S. Ct. at 2610; Nat’l Fed’n of Indep. Bus. v. Dep’t of Labor, 142 S. Ct. 661, 666 (2022). Or when the asserted power raises federalism concerns. See Solid Waste Agency of N. Cook Cnty. v. U.S. Army Corps of Engineers, 531 U.S. 159, 172–73, 174 (2001); see also
Alabama Ass’n of Realtors v. Dep’t of Health & Hum. Servs., 141 S. Ct. 2485, 2489 (2021). And the Court has said that we should be skeptical when the asserted authority falls outside the agency’s traditional expertise, see West Virginia, 142 S. Ct. at 2609, 2612–13, or is found in an “ancillary provision.” Whitman v. Am. Trucking Ass’ns, Inc., 531 U.S. 457, 468 (2001); West Virginia, 142 S. Ct. at 2610. While these indicators are non-exhaustive and need not be present in every major-questions case, they are among the things that cause us to hesitate and look for clear congressional authorization before proceeding.
1. The major-questions doctrine applies to Fisheries’ claim
In this context, these factors demand that we seek clear authorization from Congress before holding that the shrimpers need a Clean Water Act permit to return their bycatch to the Pamlico Sound. In other words, whether returning bycatch qualifies as a “discharge” of a “pollutant” under the Act is a major question, so the major-questions doctrine applies to Fisheries’ suit.
To start, Congress has erected a “distinct regulatory scheme” to address the bycatch problem. See Brown & Williamson, 529 U.S. at 143–46. This scheme leaves regulating bycatch to the states and the National Marine Fisheries service—not the EPA.
Congress created this scheme when it passed the Magnuson-Stevens Act of 1976, just four years after it passed the Clean Water Act. See
state unless it shirks its duty.6 By contrast, within federal waters (generally between 3 and 200 nautical miles from shore), federal authorities must create plans to address the problem of bycatch. See generally Sustainable Fisheries Act,
Adopting Fisheries’ interpretation would upset the Magnuson-Stevens Act’s federal-state balance and raise significant federalism concerns. And Congress must be explicitly clear if it wishes to “alter[ ] the federal-state framework by permitting federal
encroachment upon a traditional state power.” Solid Waste Agency, 531 U.S. at 172–73, 174; see also Sackett v. EPA, 143 S. Ct. 1322, 1341 (2023). This principle has played an important role in interpreting the Clean Water Act, leading the Supreme Court to reject an expansive interpretation of the Act because it “would result in a significant impingement of the States’ traditional and primary power over land and water use.” Solid Waste Agency, 531 U.S. at 174.
So too here. Congress has repeatedly confirmed that states have the primary authority to regulate fishing in their waters.
plant life.”
Given this balance under the existing regulatory scheme, it is unsurprising that the EPA has never sought the authority to regulate bycatch in the fifty years since the Clean Water Act was passed. Indeed, the EPA does not even seek it now. Instead, Fisheries tries to foist this authority on it.8 The EPA’s own lack of confidence that it has this authority also suggests that this is a major-questions case. Cf. West Virginia, 142 S. Ct. at 2610 (“‘[J]ust as established practice may shed light on the extent of power conveyed by general
statutory language, so the want of assertion of power by those who presumably would be alert to exercise it, is equally significant in determining whether such power was actually conferred.’” (quoting FTC v. Bunte Bros., Inc., 312 U.S. 349, 253 (1941))).
The authority that Fisheries seeks for the EPA would have significant political and economic consequences. West Virginia, 142 S. Ct. at 2608. Interpreting the Act to require the EPA to regulate bycatch would give it power over “a significant portion of the American economy.” See Brown & Williamson, 529 U.S. at 159. Almost every commercial or recreational fishermen in America would be subject to the EPA’s new regulatory control. Anyone who fishes from a boat using live bait, or by chumming, or who—after catching a fish—releases it back into the ocean, would violate the Clean Water Act unless they first obtained
For example, under Fisheries’ proposed reading, when my daughter fishes on a boat by casting a hooked mud minnow into the sea, she has discharged a pollutant. She has taken a biological material (the minnow) and added it to the navigable waters (the sea) from a point source (the boat). And because she has done so without a permit, she faces crushing consequences. See Sackett, 143 S. Ct. at 1330 (noting the crushing criminal and civil consequences for even inadvertent violations of the Clean Water Act). So too if she—like most any fisherman—returns a fish that she caught, whether because she was targeting certain species, practicing catch and release, or complying with local harvesting limits or
bans.9 At argument, Fisheries sought to assure me that the EPA would not exercise its discretion to lock her up or take her allowance. See Oral Arg. at 7:50–9:30. Small comfort.
My daughter is not the only one who should be concerned. The economic and social consequences would be enormous. Fishing in America generates hundreds of billions of dollars, employs millions of people, and provides recreational sport for millions more.10 See Nebraska, 143 S. Ct. at 2373 (noting that $469 to $519 billion is “ten times the economic impact” that has triggered the major questions doctrine (internal quotation marks omitted)). As Congress has recognized, “[c]ommercial and recreational fishing constitutes a major source of employment and contributes significantly to the economy of the Nation.”
To recap, Fisheries is attempting to force the EPA to regulate bycatch, something that the agency itself has never sought to do and for which it lacks the relevant expertise. In doing so, Fisheries seeks to vastly expand the EPA’s regulatory authority in a way that would upset the federal-state balance by intruding on states’ authority to manage fisheries in their own waters and essentially moot the established scheme to regulate bycatch in federal waters. This sea-change would have an enormous impact on the recreational and commercial fishing industries; industries which Congress has specifically sought to protect. “Given these circumstances,”
2. Fisheries has not identified clear authorization from Congress to support its reading of the Clean Water Act
Because the major-questions doctrine applies, Fisheries must identify “clear congressional authorization” to regulate bycatch under
EPA might use a general permit to cover these discharges. But it again failed to provide any authority for the EPA to do so. Given that Fisheries only referred to this possibility in passing, we need not definitively decide whether the EPA could, or would, promulgate a general permit here.
To start, the Supreme Court has twice rejected the idea that literal readings of the broad terms in the Clean Water Act’s definitional section—
This approach is not unique to the Clean Water Act, either. In Utility Air Regulatory Group v. EPA, 573 U.S. 302 (2014), the Court discarded the idea that Congress had clearly authorized the EPA to regulate greenhouse gases under a specific provision of the Clean Air Act just because they fell within a literal interpretation of the Act’s definition of “air
pollutant.”12 Id. at 315–16, 319–21. Similarly, in FDA v. Brown & Williamson Tobacco Corp., 529 U.S. 120 (2000), the Court denied the FDA authority to regulate tobacco products under the Food, Drug, and Cosmetic Act even though those products fell within that statute’s expansive definitions of “drug,” “device,” and “combination products.”13 Id. at 125–26.
Each of these cases demonstrates that an expansive, vaguely worded definition is not akin to clear congressional authorization. So, in a major-questions case, more is required before holding that the agency has been granted the asserted power. Yet Fisheries cannot point to anything else. The sole basis for its reading is the Act’s use of “biological materials” and “discharge.” But, under the major-questions doctrine, it does not follow that the Clean Water Act clearly regulates returning bycatch to the ocean simply because bycatch falls within the literal definition of “biological materials” and returning it might be
understood as a “discharge.”14 Cf. Util. Air, 573 U.S. at 319 (explaining that a “sweeping” act-wide definition “is not a command to regulate”).
The simple truth is that, although there is a “plausible textual basis” for Fisheries’ reading,
B. Fisheries’ sediment claim fails
Fisheries also alleges that the shrimp trawlers are violating
pollutant. To prevail, Fisheries must leap at least three hurdles: (1) the disturbed sediment must be a pollutant; (2) that pollutant must be added to the water; and (3) that addition must come from a point source. See
Fisheries has two theories of victory. Its first theory is that the sediment that the trawl nets disturb is “dredged spoil,” and thus a “pollutant.” If that is right, and if the shrimpers add that “dredged spoil” to the water from a point source, then they would need a
Fisheries’ second theory is that, even if the disturbed sediment is not dredged
Fisheries’ first theory fails at the first hurdle: it has not identified a pollutant. True, the Clean Water Act’s definition of “pollutant” includes “dredged spoil.”
to an act meant “to enlarge or clean out (a river channel, harbor, etc.).” Dredge, Webster’s New World Dictionary (2d coll. ed. 1968). In other words, dredged spoil is the accumulated result of some excavation or land-altering activity. See
This reading of “dredged spoil” also reflects the structure of the Clean Water Act. The Act sends most would-be dischargers of pollutants to the EPA to obtain a permit. See
So too does the fact that the only other type of discharge handled by the Corps is the discharge of “fill material.” Discharges of fill material usually occur during construction projects. See
Fisheries second theory—that trawling discharges rock and sand—fails at the second hurdle: no pollutant is added. The Clean Water Act expressly identifies both rock and sand as pollutants.
* * *
“[I]n certain extraordinary circumstances, both separation of powers principles and a practical understanding of legislative intent make us ‘reluctant to read into ambiguous statutory text’ the delegation claimed to be lurking there” absent “clear congressional
authorization” for the power claimed. West Virginia, 142 S. Ct. at 2609 (quoting Util. Air, 573 U.S. at 324). This is such a circumstance. Though the Clean Water Act’s includes the term “biological materials” in its definition of “pollutant,” that is not clear authorization for the EPA to regulate bycatch under the Act. So Fisheries Reform Group’s first claim—that shrimpers are violating the Clean Water Act by discarding bycatch overboard without a
Fisheries’ second claim—that shrimpers are violating the Act by using trawl nets without a permit—fares no better. The shrimpers are not “dredging” the Pamlico Sound with their nets, so they cannot be discharging “dredged spoil.” And the dirt and sand that their nets kick up is not “added”—and thus not “discharged”—into the Sound.
Because Fisheries has not plausibly stated a claim for relief, the decision of the district court is thus
AFFIRMED.
