The Coalition to Protect Puget Sound Habitat v. US Army Corps of EngineersThe Coalition to Protect Puget Sound Habitat v. US Army Corps of Engineers
ORDER VACATING NWP 48 IN THE STATE OF WASHINGTON
On October 10, 2019, the Court, after considering the cross-motions for summary judgment filed by the parties and intervenors in the above-captioned matters as well as the Swinomish Indian Tribal Community’s submission in a related case, C18-0598RSL (Dkt. # 28), found (a) that there is insufficient evidence in the administrative record to support the U.S. Army Corps of Engineers’ conclusion that the 2017 reissuance of Nationwide Permit (“NWP”) 48 would have minimal individual and cumulative impacts on the aquatic environment for purposes of the
Despite the statutory direction to “set aside agency action” that is found to be “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law,” the Court has discretion to leave the unlawful agency action in place while the agency corrects the identified errors or deficiencies.
When determining whether to vacate an agency action, the courts in the
Put differently, courts may decline to vacate agency decisions when vacatur would cause serious and irremediable harms that significantly outweigh the magnitude of the agency’s error. . . . Courts have considered remand without vacatur to be appropriate where serious irreparable environmental injury would result from vacatur. . . . In addition to environmental harm, it is appropriate to consider other practical concerns when weighing the consequenсes of vacatur. Cal Communities, 688 F.3d at 993-94 (considering delay to “much needed power plant,” possibly resulting in blackouts, to be a “severe” consequence of vacatur that may be considered in balance).
AquAlliance v. U.S. Bureau of Reclamation, 312 F. Supp. 3d 878, 881 (E.D. Cal. 2018) (internal quotation marks and citations omitted). In the context of environmental regulation, the Ninth Circuit considers (a) whether vacating the invalid rule would risk environmental harm and (b) whether the agency could legitimately adopt the same rule on remand (or whether the flaws were so fundamental that it is unlikely the same rule would result after further analysis). Pollinator Stewardship Council v. U.S. E.P.A., 806 F.3d 520, 532 (9th Cir. 2015). Courts “leave an invalid rule in place only when еquity demands that we do so.” Id. (internal quotation marks and citation omitted). See also All. for the Wild Rockies v. United States Forest Serv., 907 F.3d 1105, 1121 (9th Cir. 2018).
Having considered the submissions of the parties, amici, the Swinomish Indian Tribal Community, and Nisbet Oyster Co., Inc., regarding the appropriate remedy for the agency’s unlawful actions and having heard the arguments of counsel, the Court finds as follows:
1. Seriousness of the Agency’s Errors
The Corps argues that, although the Court found that it violated the CWA and NEPA by failing to take a hard look at the anticipated environmental impacts of NWP 48, the consequences of its unlawful actions are not serious enough to justify vacatur because no environmental harm will, in fact, occur if activities authorized under 2017 NWP 48 are allowed to continue.2 The Corps maintains that, even if it cannot devolve its obligations under the CWA and NEPA to the District Engineer, the project-by-project verification process that is required in the State of Washington3 effectively ensures that the aquaculture
As of October 10, 2019, the Corps had verified 898 projects in the State of Washington under 2017 NWP 48, encompassing 35,800 acres. Case No. C16-0950RSL, Dkt. # 63-2 at ¶ 7. Before verifying a project, a District project manager reviews the site-specific information provided with the application as well as the remainder of the permit filе (including all prior authorizations), memorializing his or her findings in a “Memorandum for Record.” Case No. C16-0950RSL, Dkt. # 63-2 at ¶¶ 12-13. All projects in Washington are subject to the terms and conditions of a Programmatic ESA Consultation which are intended to ensure “avoidance and minimization of impacts to endangered species and critical habitat, as established by analyses performed in the Biological Assessment by the Corps and Biological Opinions for the Programmatic ESA Consultation by the National Marine Fisheries Service and the U.S. Fish and Wildlife Service (the ‘Services’).” Case No. C16-0950RSL, Dkt. # 63-2 at ¶ 7, 16-17. In addition, the District inspects а percentage of all activities authorized under NWP 48 each year to make sure that they are being conducted in accordance with the representations made in the application and all terms and conditions imposed on the permittee.4
The District has provided two partial case files “that are representative of typical NWP 48 verifications.” Case No. C16-0950RSL, Dkt. # 63-2 at ¶ 11. The first verification authorizes 211 acres of on-bottom Pacific oyster cultivation on a 213 acre project area in Willapa Bay. Two acres of slough within the projeсt site would not be cultivated. The area had previously been cultivated by a different operator under 2007 NWP 48. Case No. C16-0950RSL, Dkt. # 63-6 at 11. The District recognized that “[e]elgrass is present throughout the project area” with “denser concentrations” marked on a map and that restarting cultivation in the area “would degrade the eelgrass beds to some degree through direct removal of the eelgrass from trampling and mechanical harvest and from increased turbidity and burying during mechanical harvest.” Case No. C16-0950RSL, Dkt. # 63-6 at 10-11. No compensatory mitigation for unavoidable impacts to aquatiс resources was required “because the on-going activity was previously authorized.” Case No. C16-0950RSL, Dkt. # 63-6 at 12. The District determined that the project should be verified under 2017 NWP 48 and that the Corps had satisfied its obligations under the ESA through the imposition of the terms and conditions arising from the earlier programmatic consultation with the Services. Case No. C16-0950RSL, Dkt. # 63-6 at 11-12.5 Although
The second verification authorizes a 3.6 acre intertidal geoduck farm in previously-uncultivated acreage. The District recognized that the project location was a documented spawning area for surf smelt and sand lance, and was .3 miles away from a documented herring spawning area. Case No. C16-0950RSL, Dkt. # 63-7 at 18 and 24. No compensatory mitigation was required because the Corps found that there would be no adverse impacts to aquatic resources. Case No. C16-0950RSL, Dkt. # 63-7 at 19. The District determined that the project should be verified under 2017 NWP 48 and that the Corps had satisfied its оbligations under the ESA through the imposition of the terms and conditions arising from the earlier programmatic consultation with the Services. Case No. C16-0950RSL, Dkt. # 63-7 at 18-20.6 There is no indication that the agency performed a NEPA- or CWA-level impact analysis before making this finding. Once again, the Corps’ failure to take a hard look at the environmental impacts of shellfish aquaculture (other than, arguably, the potential impacts to endangered or threatened species under the ESA) was not corrected at the District level.
Intervenors argue that, in addition to the Corps’ verification process, state, local, and Tribal permit requirements and reviews provide layers of safeguards that “protect against the potential for environmental harm associated with allowing existing authorizations to remain in effect” following remand. Case No. C17-1209RSL, Dkt. # 66 at 7. Intervenors point to
The Corps/Intervenors have not shown that the District level verification process or state, local, and/or Tribal oversight of commercial shellfish aquaculture activities in Washington overcome the seriousness of the agency’s errors in this case. In 2017, the Corps authorized the installation of various structures, nets, and tubes and the
The first factor in determining the nature of the remand in this case - the seriousness of the agency’s errors - supports vacatur.
2. Disruptive Consequences of an Interim Change That May Itself Be Changed
The second factor also favors vacatur. The Corps and the Intervenors rely heavily on the economic consequences that will befall shellfish producers if their permits are vacated immediately. These concerns are important and have been considered below, but the second factor as originally stated by the D.C. Circuit - and adopted by the Ninth Circuit in California Communities - focuses on the disruptions that would arise if a vacatur order were followed by appropriаte agency action reinstating the original rule or permit. The equities tilt away from vacatur where “the disruptive consequences of an interim change that may itself be changed” are significant, Allied-Signal, 988 F.2d at 150-51, and the factor “is weighty only insofar as the agency may
The Court will assume, for purposes of this case, that the Ninth Circuit’s analysis of the equities has diverged from the D.C. Circuit’s and takes into account other disruptive consequences that will arise from vacatur, including both economic and environmental impacts. If NWP 48 is retroactively vacated in the State of Washington, all verifications issued under the auspices of that permit and all operations conducted pursuant to those verifications would be considered unauthorized and in violation of federal law. Case No. C16-0950RSL, Dkt. # 63-2 at ¶ 26.7 Immediate vacatur would force commercial shellfish growers to apply for individual permits, overwhelming the Corps’ staff and resources. The Corps asserts that it would be unable to process all 898 individual permit applicatiоns before the current NWP 48 expires in 2022.8 Therefore, while some growers might receive individual permits for their operations within a few months, others might have to wait years before they could conduct shellfish operations in this State.9
The Swinomish Indian Tribal Community fears that its shellfish operation may not survive if NWP 48 is retroactively vacated, despite the fact that it has intentionally designed its shellfish operations to avoid eelgrass, to not use pesticides, and to minimize the use/loss of plastics. The Tribe also points out that it attempted to persuade the Corps to adopt more stringent avоidance and minimization measures
Members of Intervenor Pacific Coast Shellfish Growers Association likewise report that vacatur of NWP 48 before commercial shellfish farmers have an opportunity to seek and obtain alternative permit coverage - be it through an individual permit or under a replacement national or regional permit - would have devastating impacts on the continuing viability of their farms, their employees, their communities, the state and local economies of which they are a part, and the ability of Washington shellfish farmers to compete on a national or international basis. See Case No. C17-1209RSL, Dkt. # 66 at 13-18.10 The growers also argue that vacatur would ultimately harm the environment because shellfish are filter feeders which improve water quality, shellfish farmers are strong advocates for the high water quality that is essential to their crop, and shellfishing retards upland development activities. Case No. C17-1209RSL, Dkt. # 66 at 17-18.
The Court has no reason to doubt the assertions of Swinomish or the Intervenors regarding the threat vacatur poses to the continued viability of their businesses and the downstream sequelae of closure. Farmers are part of a complicated chain of suppliers and customers. They have to manage their resources in a way that allows them to generate income on a predictable (if not regular) basis in order to pay their bills, retain employees, and stay in business. Ordering the immediate cessation of all shellfishing activities conducted pursuant to NWP 48 would result in the abandonment of harvestable shellfish to predators or the sea, the neglect of existing shellfish structures and beds, and the inability to seed the next succession of shellfish. Plaintiffs’ suggested compromise - that the growers be permitted to continue harvest activities under the prior verifications as long as they timely submit an application for an individual permit - would at least allow the growers to recover some of their sunk costs. The Intervenors rejected the proposal, however, arguing that anything short of the continued ability to maintain, harvest, and re-seed under the current authorizations threatens the long-term viability of their enterрrises.11
The equities in this case pit acknowledged adverse environmental impacts, the full extent of which have not been fully evaluated or quantified by the agency tasked with doing so, against the devastating impacts that will result if all commercial shellfishing activities in the State of Washington are immediately prohibited while the Corps processes a replacement permit. As discussed at oral argument, it appears thаt there are ways forward that could more appropriately balance the concerns of all parties, but the Court’s role at this point is limited to determining whether the equities demand remand without vacatur. As the issue has been presented by the Corps and the Intervenors, the equities are unclear and they have not overcome the presumption in favor of vacatur. In the absence of meaningful assistance from the Corps and the Intervenors in helping to shape a compromise remedy, the Court will adopt a remedy based on the suggestions of plaintiffs, amiсi, and Swinomish.
For all of the foregoing reasons, it is hereby ORDERED as follows:
- NWP 48 and all authorizations or verifications under it are VACATED in the State of Washington. This vacatur is hereby STAYED for sixty days to allow the Corps and/or Intervenors to appeal and obtain a stay from the Ninth Circuit;
- The vacatur is also STAYED as to the following activities:
- maintenance and harvesting activities (conducted in accordance with the terms of the current verification) for shellfish that were already planted/seeded as of the date of this Order;
- seeding/planting activities (conducted in accordance with the terms of the current verification) occurring within six months of the dаte of this Order in areas that do not contain mature native eelgrass beds, as well as to maintenance and subsequent harvesting of the beds seeded/planted under this subsection;
-
shellfish activities (conducted in accordance with the terms of the current verification) which occur pursuant to and to provide treaty harvest in furtherance of treaty rights adjudicated under United States v. Washington.12
The stay provided by this paragraph is contingent on compliance with paragraph 3;
- Permittees who intend to conduct maintenance, harvest, and/or seeding/planting activities under the preceding paragraph shall submit an application for an individual or other existing Corp permit as soon as practicable and no later than six months from the date of this Order;
- Other activities that were authorized by an existing NWP 48 verification, including planting/seeding not covered by paragraph 2, are not authorized unless or until the operator obtains a new valid permit from the Corps; and
- The Corps shall process individual permit applications and modification requests related to commercial shellfish aquaculture in Washington as expeditiously as possible regardless whether it аlso chooses to pursue a new nationwide or a regional permit. The Corps shall process shellfish cultivation permits in Washington in a manner consistent with the CWA and NEPA requirements, as outlined in this Court’s Oct. 10, 2019 Order.
Dated this 11th day of June, 2020.
Robert S. Lasnik
United States District Judge