PACIFIC COAST FEDERATION OF FISHERMEN‘S ASSOCIATIONS; CALIFORNIA SPORTFISHING PROTECTION ALLIANCE; FRIENDS OF THE RIVER; SAN FRANCISCO CRAB BOAT OWNERS ASSOCIATION, INC.; THE INSTITUTE FOR FISHERIES RESOURCES; FELIX SMITH v. DONALD R. GLASER, Regional Director of the U.S. Bureau of Reclamation; UNITED STATES BUREAU OF RECLAMATION; SAN LUIS & DELTA MENDOTA WATER AUTHORITY
No. 17-17130
UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT
September 6, 2019
D.C. No. 2:11-cv-02980-KJM-CKD
OPINION
Appeal from the United States District Court for
Kimberly J. Mueller, District Judge, Presiding
Argued and Submitted June 10, 2019
San Francisco,
Filed September 6, 2019
Before: MARY M. SCHROEDER and MILAN D. SMITH, JR., Circuit Judges, and DOUGLAS L. RAYES,* District Judge.
Opinion by Judge Milan D. Smith, Jr.
SUMMARY**
Clean Water Act
The panel reversed the district court‘s judgment in an action alleging that the drainage system managed by the U.S. Bureau of Reclamation and the San Luis & Delta Mendota Water Authority discharged pollutants into surrounding waters in violation of the Clean Water Act,
The Central Valley Project is a federal water management project. The Grasslands Bypass Project, jointly administered by the defendants, is a tile drainage system that consists of a network of perforated drain laterals underlying farmlands in California‘s Central Valley that catch irrigated water and direct it to surrounding waters.
The Clean Water Act generally requires that government agencies obtain a National Pollutant Discharge Elimination System permit before discharging pollutants from any point source into navigable waters of the United States. There is an exception to that permitting requirement “for discharges composed entirely of return flows from irrigated agriculture.”
The panel held that the district court properly interpreted “discharges . . . from irrigated agriculture,” as used in
The panel held that the district court erred by striking plaintiffs’ seepage and sediment theories of liability from plaintiffs’ motion for summary judgment because the first amended complaint encompassed those claims.
COUNSEL
Stephan C. Volker (argued), Alexis E. Krieg, Stephanie L. Clarke, and Jamey M.B. Volker, Law Offices of Stephan C. Volker, Berkeley, California, for Plaintiffs-Appellants.
Eric J. Buescher (argued), and Joseph W. Cotchett, Cotchett Pitre & McCarthy LLP, Burlingame, California; Diane V. Rathmann, Linneman Law LLP, Dos Palos, California; for Defendant-Appellee San Luis & Delta Mendota Water Authority.
OPINION
M. SMITH, Circuit Judge:
California‘s Central Valley features some of the most fertile agricultural land in the United States, but it typically receives less rainfall than necessary to cultivate the crops grown in the Valley. To help address this problem, the federal government has constructed and managed several irrigation and drainage projects.
Plaintiffs, a group of commercial fishermen, recreationists, biologists, and conservation organizations, sued Defendants Donald Glaser, the United States Bureau of Reclamation, and the San Luis & Delta Mendota Water Authority, alleging that the drainage system managed by Defendants discharges pollutants into surrounding waters, in violation of the Clean Water Act (CWA),
FACTUAL AND PROCEDURAL BACKGROUND
A. Factual Background
As “the largest federal water management project in the United States,” the Central Valley Project (CVP) “provides the water that is essential to [the California Central Valley‘s] unparalleled productivity.” Cent. Delta Water Agency v. United States, 306 F.3d 938, 943 (9th Cir. 2002). Among other functions, the CVP “transfer[s] water from the Sacramento River to water-deficient areas in the San Joaquin Valley and from the San Joaquin River to the southern regions of the Central Valley.” San Luis & Delta-Mendota Water Auth. v. Jewell, 747 F.3d 581, 594 (9th Cir. 2014).
“Any water project that brings fresh water to an agricultural area must take the salty water remaining after the crops have been irrigated away from the service area.” Firebaugh Canal Co. v. United States, 203 F.3d 568, 571 (9th Cir. 2000). Otherwise, irrigating the selenium and salt-rich soils causes pollutants to leach into groundwater. The Grasslands Bypass Project (the Project), jointly administered by Defendants, was created for this purpose. The Project is “a tile drainage system that consists of a network of perforated drain laterals underlying farmlands in California‘s Central Valley that catch irrigated water and direct it to” surrounding waters. The map below depicts the Project‘s location:
B. Procedural Background
Plaintiffs filed their initial complaint in November 2011, alleging that Defendants violated the CWA by discharging pollutants into the waters of the United States without a National Pollutant Discharge Elimination System (NPDES) permit, in violation of
Defendants then moved to dismiss the FAC. The court granted the motion as to all but one of Plaintiffs’ claims. It determined that Plaintiffs had plausibly alleged facts “that, when accepted as true, suggest
The parties then filed cross-motions for summary judgment. The court denied Plaintiffs’ motion for summary judgment and granted in part Defendants’ motion for summary judgment. The court held that three of Plaintiffs’ theories of liability in their motion for summary judgment—arguments about discharges from “seepage into the [Drain] from adjacent lands, and sediments from within the [Drain]“—did not arise from the allegations in their FAC. Accordingly, the court struck those three theories of liability. The court also determined, however, that there was a genuine dispute of material fact as to whether groundwater discharges from lands underlying a solar product violated the CWA (the Vega Claim). It therefore denied Defendants’ motion for summary judgment as to that claim.
Plaintiffs moved to file a second amended complaint. The court denied that motion. The court also denied Plaintiffs’ motion to reconsider its order ruling on the cross-motions for summary judgment. The parties then stipulated to the dismissal of Plaintiffs’ lone remaining claim “because the discharges from the Vega Solar Project property do not make up a majority of discharges from the [Project].” The district court entered judgment for Defendants.
JURISDICTION AND STANDARD OF REVIEW
We have jurisdiction pursuant to
ANALYSIS
I. The District Court‘s Interpretation of § 1342(l)(1)
The CWA generally requires that government agencies obtain an NPDES permit before discharging pollutants from any point source into navigable waters of the United States.1
The parties do not disagree that the Mud Slough, the San Joaquin River, and the Bay-Delta Estuary constitute navigable waters of the United States. They also do not dispute that the Drain “discharges substantial quantities of selenium and other pollutants.” At issue then is whether the Drain‘s discharges required Defendants to obtain an NPDES permit, or whether the discharges were exempt from the permitting requirement pursuant to
Plaintiffs argue that the district court committed three errors in its interpretation of
A. Burden of Proving the Statutory Exception
In its pretrial order, the district court stated that Plaintiffs bore the burden of demonstrating that the discharges at issue were not exempt from the CWA‘s permitting requirement pursuant to
We agree. To establish a violation of the CWA, “a plaintiff must prove that defendants (1) discharged, i.e., added (2) a pollutant (3) to navigable waters (4) from (5) a point source.” Comm. to Save Mokelumne River v. E. Bay Mun. Util. Dist., 13 F.3d 305, 308 (9th Cir. 1993). After a plaintiff establishes those elements, however, the defendant carries the burden to demonstrate the applicability of a statutory exception to the CWA. See N. Cal. River Watch v. City of Healdsburg, 496 F.3d 993, 1001 (9th Cir. 2007). Because
B. Interpretation of “Irrigated Agriculture”
The district court construed
“It is well settled that ‘the starting point for interpreting a statute is the language of the statute itself.‘” Gwaltney of Smithfield, Ltd. v. Chesapeake Bay Found., Inc., 484 U.S. 49, 56 (1987) (quoting Consumer Prod. Safety Comm‘n v. GTE Sylvania, Inc., 447 U.S. 102, 108 (1980)). Section 1342(l)(1) states that “[t]he Administrator shall not require a permit under this section for discharges . . . from irrigated agriculture.”
33 U.S.C. § 1342(l)(1) . Here, rather than starting its analysis with the text, the district court focused first on the Senate Committee Report accompanying the CWA to hold that the relevant statutory text—“discharges . . . from irrigated agriculture“—meant discharges that “do not contain additional discharges from activities unrelated to crop production.”
Although we agree that the district court ought to have begun its analysis with the statutory text, its reliance on legislative history to construe this portion of the statute was not erroneous. “It is a fundamental canon of statutory construction that the words of a statute must be read in their context and with a view to their place in the overall statutory scheme.” Davis v. Michigan Dep‘t of Treasury, 489 U.S. 803, 809 (1989). “The purpose of statutory construction is to discern the intent of Congress in enacting a particular statute.” Robinson v. United States, 586 F.3d 683, 686 (9th Cir. 2009) (quoting United States v. Daas, 198 F.3d 1167, 1174 (9th Cir. 1999)).
Although the plain meaning of the statutory text demonstrates that agriculture has a broad meaning, it does not resolve whether the discharges at issue here are exempt from the CWA‘s permitting requirement.2 As a result, “we may [also] use canons of construction, legislative history, and the statute‘s overall purpose to illuminate Congress‘s intent” in enacting
In this instance, we begin by considering the legislative history of
This history supports the district court‘s interpretation of “irrigated agriculture” as used in
The statute‘s legislative history also reveals that Congress passed
Plaintiffs argue that such an interpretation of the statutory exception is erroneous
For these reasons,
C. Interpretation of “Entirely”
We next address Plaintiffs’ contention—which Defendants do not dispute—that the district court erred by holding that
We agree that the district court‘s majority rule interpretation misconstrued the meaning of “entirely,” as used in
The district court rejected a literal interpretation of “entirely” because it reasoned that it “would lead to an absurd result.” We disagree. “Claims of exemption, from the jurisdiction or permitting requirements, of the CWA‘s broad pollution prevention mandate must be narrowly construed to achieve the purposes of the CWA.” N. Cal. River Watch, 496 F.3d at 1001. Given the many activities related to crop production that fall under the definition of “irrigated agriculture,” Congress‘s use of “entirely” to limit the scope of the statutory exception thus makes perfect sense. The text demonstrates that Congress intended for discharges that include return flows from activities unrelated to crop production to be excluded from the statutory exception, thus requiring an NPDES permit for such discharges.
D. Effect of Errors on Plaintiffs’ Claims
Having determined that the district court erred by placing the burden of demonstrating eligibility for the exception on Plaintiffs, rather than on Defendants, and
The district court‘s dismissal of Plaintiffs’ other claims was also erroneous. In its order ruling on the parties’ cross-motions for summary judgment, the district court determined that, apart from the Vega Claim, Plaintiffs had failed to “provide any evidence” to show that discharges stemmed from activities unrelated to crop production. Because the burden of demonstrating the applicability of
II. The District Court‘s Striking of Plaintiffs’ Claims
Plaintiffs argue that the district court also erred by striking their theories of liability “based on discharges from highways, residences, seepage into the [Drain] from adjacent lands, and sediments from within the [Drain]” from Plaintiffs’ motion for summary judgment. The court held that those claims were not encompassed by Plaintiffs’ FAC.
“Rule 8‘s liberal notice pleading standard . . . requires that the allegations in the complaint ‘give the defendant fair notice of what the plaintiff‘s claim is and the grounds upon which it rests.‘” Pickern v. Pier 1 Imports (U.S.), Inc., 457 F.3d 963, 968 (9th Cir. 2006) (quoting Swierkiewicz v. Sorema N.A., 534 U.S. 506, 512 (2002)). “A party need not plead specific legal theories in the complaint, so long as the other side receives notice as to what is at issue in the case.” Am. Timber & Trading Co. v. First Nat‘l Bank of Oregon, 690 F.2d 781, 786 (9th Cir. 1982). But if a “the complaint does not include the necessary
Here, Plaintiffs’ FAC alleged that the Drain discharged “polluted groundwater . . . originating from parcels where no farming occurs because, for instance, these
Although we agree with Defendants that Plaintiffs’ complaint did not specifically allege their seepage and sediment theories of liability, we reject the contention that Defendants had not been given fair notice of those theories. Plaintiffs’ essential allegation was that the Drain‘s discharges violated the CWA because of where the contaminants in the discharges originated from—“for instance, [] parcels [that] have been fallowed or retired from agricultural use.” Plaintiffs’ seepage and sediment claims, which alleged that contaminants from “highways, residences, seepage . . . and sediment” commingled with other discharges and thereby violated the CWA, alleged that contaminants originated from other locations, too. Those allegations were thus encompassed by the allegations in the FAC. Indeed, at oral argument, Defendants conceded that they “received [Plaintiffs‘] expert witness reports,” “were on notice as to what their expert was talking about,” and “had enough information to respond” to the seepage and sediment theories of liability discussed in Plaintiffs’ expert witness reports. These facts, when taken together, compel the conclusion that Plaintiffs’ FAC provided Defendants with fair notice of their seepage and sediment theories of liability. Accordingly, we reverse the district court‘s striking of Plaintiffs’ seepage and sediment claims from their motion for summary judgment.3
CONCLUSION
The district court properly interpreted “discharges . . . from irrigated agriculture,” as used in
REVERSED and REMANDED.
