Waters of U.S Rule

Update July, 2016

LarryLiebesman,Esq.SeniorAdvisor

Dawson&AssociatesWashington,D.C.

lliebesman@dawsonassociates.com

Clean Water Act Jurisdic?on

•  “NavigableWaters”asdefinedas“WatersoftheUnitedStatesincludingtheTerritorialSeas”33U.S.C1362(7)and33CFR328.3(a)(Corpsdef.),40CFR122.2(EPADef.)(Includeswetlandsadjacentto“waters.”)• CorpsisprimaryfederalagencyformakingjurisdicYonalcalls.EPAhasfinalauthorityoverCWAjurisdicYon(AGCivile[ei1979LegalOp.)•  ThreeMajorSupremeCourtdecisionsaffecYngCWAjurisdicYon•  (a)U.S.v.RiversideBayviewHomes,474U.S.121(1985)---CWAjurisdicYonoverwetlandsadjacenttonavigablewaters•  (b)SWANCCv.Corps,531U.S.159(2001)–NoCWAjurisdicYonoverisolatedintrastatewatersbasedonusebymigratorybirds.DoesnotreachQuesYonofjurisdicYonovernonnav.Tributariesbutintroducesconceptof“significantnexus.”

Clean Water Act Jurisdic?on, cont. •  (c)Rapanosv.UnitedStates,547U.S.715(2006)(JurisdicYonovernavigabletributariesatissue)–Pluralityopinion(4-4-1)withScaliatestconflicYngwithKennedytestinconcurrence---

-Scalia–“conKnuoussurfacewaterconnecKontest.NonnavigablewatersonlyiftheyexhibitarelaYvelypermanentflow(e.g.riverstreamorlake)andwetlandsifthereisaconYnuoussurfacewaterconnecYontoarelaYvelypermanentwaterbody- Kennedy–“SignificantNexus”Test---“awaterorwetlandmustpossessa‘significantnexus’towaterthatareorwerenavigablein fact”CWAjurisdicYonextendedtoallwetlandsthat“eitheraloneorincombinaYonwithsimilarlysituatedlandsintheregion,significantlyaffectthechemical,physicalandbiologicalintegrityofothercoveredwatersmorereadilyunderstoodas“navigable.”

Agencies Ini?al Response • CorpsandEPAdecidetoissueGuidanceiniKally,notRule•  2007Guidance,asRevisedin2008:Ø Reaffirms“wetlandsdefiniKon”---“AreasthatareinundatedorsaturatedbysurfaceorgroundwateratafrequencyandduraYonsufficienttosupportandundernormalcircumstancesdosupportaprevalenceofvegetaYontypicallyadaptedforlifeinsaturatedsoilcondiYons.”(33CFR328.3(b)

Ø DataFromrequiredforSNdeterminaKonwithdocumentedsourcestoaddress:

- ConsideraYonofHydrologicFactorsincluding:Volume,duraYonandfrequencyofflow,proximitytotheclosestTNW,sizeofwatershed,averageannualrainfall,averageannualwintersnowpack

Agencies Ini?al Response, cont. - ConsideraYonofEcologicalFactors:Abilityofthetributaryanditsadjacentwetlands(ifany)tocarrypollutantsandfloodwaterstotheTNW,abilityofthetributaryanditsadjacentwetlands(ifany)toprovideaquaYchabitatthatsupportsthebiotaoftheTNW,abilityforadjacentwetlandstotrapandfilterpollutantsorstorefloodwaters,abilitytomaintainwaterquality>ExcludesPriorConvertedCroplands,wastetreatmentsystems,uplanddrainageditches,arYficialpools,waterfilleddepressionsfromuplandexcavaYon>SwalesandErosionalfeaturesalsoexcludedbutmaybejurisdicYonalwherethey:ReplaceorrelocateawateroftheU.S.,connectawateroftheU.S.toanotherwateroftheU.S.orproviderelaYvelypermanentflowtoawateroftheU.S.

Impetus Behind Rule

•  PressurefromCongress,stateandlocaloffices,industry,environmentalNGOs,scienYsts,builders,localgovernmentsandthepublictoclarifyjurisdicYonthroughRule

•  Agenciesclaimedconfusion.EPAadmitsthat“protecYonformanyofthenaYon’sstreamsandwetlandshasbeenconfusing,complexandYmeconsuming.”

•  March2014---AgenciesIssueProposedruletoclarifyjurisdicYonand“enhanceprotecYonsforcertainbodiesofwater.”

Impetus Behind Rule, cont.

•  EPAIssuesreportsummarizingmorethan1200peerreviewedpublishedscienYficstudiesnoYngimportantrulesmallstreamsandwetlandspalyinhealthofdownstreamwaters

•  AgenciesinsisttheydidnotintendtoprotectwatersnothistoricallycoveredbytheCWA

•  Over400meeYngsheldwithstakeholders•  Over12millionpubliccommentsreceived•  Congressionalhearingsonproposedruleheldinearly2015.

Agency Posi?on Before Congress

•  EPAandCorpstesYfyatJointHouseSenateHearingonProprule–denyintenYontoexpandCWAauthority• VocalopposiYonfromstatesandregulatedcommunitythatrulewouldbeafederalpowergrab•  EPAAdministratorMcCarthydisputesstaYngthat–“Ourgoalisstraighporward…Its’torespondtorequestsfromstakeholders…tomaketheprocessofidenYfyingwatersprotectedundertheCWAeasiertounderstand,tomakeitmorepredictableandmoreconsistentwiththelawandpeerreviewedscience.”

Agencies Claims Disputed

• Agenciesclaimthatrulewillincreaseregulatedwatersby3percentandincreasecoststoregulatedenYYesandgovernmentsbyonly$162--$279/yr.• HouseScienceCommi[ee---disputesclaim---ReferstoEPAandUSGSMapsprovidedtoCongressfindingthat8.1M.milesofriversandstreamswouldbecomeregulated---anincreaseof$130%fromEPA’s2009ReporttoCongress(PressRelease,HouseScienceCom.8/27/14)

Key Dates • April21,2014–Proposedrulereleasedforpubliccomment

• May27,2015–PrePublicaYonoffinalCWARule

•  June29,2015–FinalCWARulepublishedinFederalRegister(80F.R.37054)

• August28,2015---FinalRuleBecomesEffecYve

•  February22,2015----SixthCircuitissuesNaYonwideStayofRule

Agencies Findings

•  EPAConnecKvityStudy–Synthesisofmorethan1200scienYficpublicaYons•  Studyfindsthat(a)streams,individuallyandcumulaYvelyexertstronginfluenceondownstreamwaters(b)alltribs.arechemically,physicallyandbiologicallyconnectedtodownstreamwaters(c)Isolatedwaters(e.g.prairiepotholes,vernalpools)providenumerousfuncYonsbenefivngdownstreamWQ•  SABPanelconfirmedstudybutfoundthat“degreeofconnecKvityiscriKcal...Whenconsideringimpacttodownstreamwaters•  SABPanel–“SNisnotascienYfictermbutalegalone…”

Rule Provisions

• Defines“WatersoftheUnitedStates”toinclude8categoriesofjurisdicYonalwaters:•  (1)TradiYonallyNav.Waters•  (2)Interstatewatersincludinginterstatewetlands•  (3)Territorialseas•  (4)Impoundments•  (5)AllTribs.of(1)---(4)•  (6)“AdjacentWaters”---AllJurisdicYonalByRule

Rule Provisions, cont.

•  (7)ListedWatersrequiringcasespecificS.NAnalysis–(prairiepotholes,CarolinaandDelmarvaBays,pocosins,westernvernalpoolsandTexascoastalprairiewetlands)•  (8)OtherS.NWaters–Non–Adjacentwaterslocatedwithin100yearfloodplainoforwithin4000wofwatersoftheU.S.• BroadScopeofWOTUSRuleCoverage---(a)311oilspillprogram(401)WQCerYficaYon(c)402NPDESprogram(4)404dredgedorfillmaterialdischargeprogram

Impacts of Rule

•  TributaryDef.CentraltoRule---Tributaryisanyfeaturethat“physicalindicatorsofabedandbanksandordinaryhighwatermark(OHWM)andisconclusivelyjurisdicYonal–evenifdrymuchofyear---manmadebarriers(suchasroadorberm)donotcutofftrib.JurisdicYon.•  AgenciescannowassertjurisdicKonovermanyephemeralandlargelydry“landscapefeatures”basedonvagueandtenuousOHWMtest.• RulesancYonsuseof“desktopanalysis“(e.g.LIDARoraerialphotography)toassertjurisdicYonoversuchfeatures.

Adjacent Waters

• AgenciescancategoricallyclaimjurisdicKonover“adjacent“watersdefinedas“bordering,conYguousorneighboring”toaWOTUS•  “Neighboring”def.setsabrightlinedistancelimits--Includes(1)allwaterswithin100wofOHWM(2)waterswithin100–yearFPandnotmorethan1500wfromOHWMofaTNW(3)waterswithin1500wofthehighYdelineofaTNW--AllsuchwatersandwetlandscategoricallyjurisdicYonal•  Evenifsuchwatersareoutsidedistancelimitsandnot“adjacent”cansKllbejurisdicKonalbasedonS.NTestiflocatedwithin100yr.FPorwithin4000wofaWOTUS.

SN Test

•  SNmeansthata“waterincludingwetlands,eitheraloneorcombinaYonswithsimilarlysituatedwatersintheregion,hasasignificanteffectonthechemical,physicalorbiologicalintegrityofaTNW,interstatewaterortheterritorialseas.“significanteffect”means“morethanspeculaKveorinsubstanKal.”• RulelistsspecificfuncKonsforS.N.test–(1)sedimenttrapping(2)nutrientrecycling(3)pollutantfiltering(4)floodwaterretenYon(5)runoffstorage(6)flowcontribuYon(7)organicma[erexport• AgenciescanfindanyoneofthesefuncYonshasasignificanteffect.”–vaguestandardgivingbroaddiscreYontoagencies.

Exclusions

• Ruleexclusionsarenarrow•  “Ditches”excludedunlesstheyexcavatedinrelocatedtributaries–couldsweepinroadsideditcheswithli[leornoconnecYontoWOTUS•  “stormwatersystems,arYficialpondsandwaterfilleddepressionscreatedon“dryland”–butno“agreedtodef.ofdryland.”• Groundwaterexcluded–butGWconnecYoncouldsYllsupportjurisdicYonbasedonadjacencyorSNtests.

New Concepts in Final Rule

•  FinalRuleincludesnewconceptsnotinproposedruleincluding(1)bedbankandOHWMindefiningtributaryascategoriallyjurisdicYonal(2)AdjacencyLimitsofupto1500w&locatedwithin100FP(3)Outer“brightline”limitof4000w.(4)LimiYnglistoffuncYonsforSNtest.•  FailuretoprovidenoKceandcommenton“distancelimits”esp.problemaYcbecauseofagencyposiYonthat“ifanyporYonofafeatureiswithinlimitsofdistancethresholds,enYrefeatureisjurisdicYonal.”

Corps Memos Dispute EPA

•  CorpsHQStaffpreparedlegalandtechnicalmemosdispuKngEPAdata,analysisandfindings•  “CorpsdatatoEPAhasbeenselecYvelyappliedoutofcontext…thesedocumentscontainnumerousinappropriateassumpYonswithnoconnecYontothedataprovided,misapplieddata,analyYcaldeficienciesandlogicalinconsistencies.”•  “The1500w.limitaYonisnotsupportedbyscienceorlawandthusislegallyvulnerable.”•  “RequeststhatallreferencestotheCorpsinthedrabfinalruleandecoanalysisberemoved…andreferencemadetoEPAonlyasauthor.”•  CongCommi[eesandEPAinfightoverEPAresponsestoinforequestsinmemos

FinalWatersoftheU.S.Rule

SufficientindicaYonofflow?

FinalWatersoftheU.S.Rule

SufficientindicaYonofflow?

FinalWatersoftheU.S.Rule

SufficientindicaYonofflow?

BeforeRuleAwerRule

OnestreamsegmentrequiringmiYgaYon(darkblue)

AddiYonalwetlands(lime)andnumerousstreamsegments(lightblue)alsoneedmiYgaYon

Li?ga?on “Avalanche “

•  ElevenCasesfiledinFederalDistrictCourts•  ElevenCasesineightFederalCourtsofAppeals•  SeventyOnePlainYffsandPeYYonersincluding:>31States>Industryandbusinessgroups(Chamber,uYliYes,NFIB,Water)>environmentalgroups• MajorFightoverJurisdicYon(DistrictCourtsorCourtsofAppeals?)•  FightcentersaroundunclearlanguageofCWASec509JudicialReview---IsWOTUSan“otherlimitaYon”or“permit”?

Legal Challenges

•  ClaimsbyStates,IndustryandBusinessgroupsallege:>Federalism/Tenthamendment--UsurpsStatesPrimaryResponsibiliYesformanagement,protecYonofintrastatewatersandlands(e.g.“Tributarydef.wouldallowregulaYonofponds,ephemeralstreamsandevendrychannels”)>CommerceClause---Rulegivesagencies“virtuallylimitlesspowerovernon-navigablewaters”>APA–Ruleis“arbitraryandcapricious,andnotsupportedbylaw,scienYficandeconomicevidence”>Process---RuleIssuedwithoutadequatenoYceandopportunityforpubliccomment(e.g.1500w.and4000w.“limits”)>Harms–UndueBurdensonindividuals,businessesandstates.ImposesimmediateandhighcostsonStates(WQS,permivngetc.)>Relief---DeclareRuleunlawful,vacateandsetsiderule,enjoinagenciesfromusingruleandremandtoagencies

Li?ga?on, cont.

•  SESWAssoc.,FlaLeagueofCiKesv.EPA(N.D.Fla11/30/15)(SWexclusionvague.“ForthefirstYme,rulerequirespermitsfordischargesintomunicipalSWsystems…withpermi[eddownstreamoupalls”)•  RegulatedIndustriesSuit(NSSGA,AFBF,API,ARTBA,NAHB)(S.Dist.OfTexas)• MurrayEnergyCorp.(NDofW.Va)•  EnvironmentalGroupsChallenge--PugetSoundkeeperAlliance&SierraClubv.McCarthy(WDWash.)–claimsruleviolates:

Ø CWAbyExcludingallwastetreatmentsystemsandlimiYngavailabilityofcasespecificSNdeterminaYons

Ø APAbylimiYng“Trib.”def.toOHWMand“bedandbanks.”

Li?ga?on, cont.

•  Aug27,2015---D.N.D.---JudgeEricksonissuesP.I.---(“Thebreadthofthetrib.Def.allowsforregulaYonofanyareathathasatraceamountofWater.”)NorthDakotav.McCarthy•  NDInjuncYononlyapplicableto13statessuingthere.•  OnJuly27,2015MDLPanelconsolidatesAppellatePeYYonsinSixthCir.•  October9,2015,6thCir.InMurrayEnergyv.EPAissuesnaYonwidestayofRulebutdefersjurisdicYonalissue•  OnOct.13,2015–MDLPaneldeclinestoconsolidateallD.Ctcases.“centralizaYonundersec.1407isinappropriate.”•  OnFebruary22,2016–SixthCir.In2-1rulingholdsthatjurisdicYonisonlyinCtsofAppealswhilesYllconcedingthatruleis“definiYonalonly.”

Li?ga?on, cont. •  EleventhCircuitConsideringappealofGaFed.CtthatitlackedjurisdicYon&thatSixthCircuit'srulingconflictswithEleventhCircuitCaselawthatjurisdicYonisonlyinDistrictCourts.–StateofGeorgiav.McCarthy----ArgumentsetforJuly,2016–CouldleadtoCir.splitandpossibleSCtReview• May24,2016–N.D.CtdissolvesP.Iandstayscasepending6thCir.ruling•  June14,2016–SixthCircuitIssuesMeritsBriefingSchedule–>ContentsofAd.Record–Allbriefingcompletedby7/29/2016>MeritsBriefing–AllBriefingcompletedby2/17/17>OralArgument---ScheduledassoonaspracYcableawerbriefing

Legisla?ve Responses

• NumerousCong.oversighthearingscriYcalofRule• HouseandSenatehaveeachpassedbillsrequiringwithdrawalofruleandorderingnewprocess.Pres.Obamapledgedtoveto• AppropriaYonsriderblockingruleimplementaYonrecentlyapprovedbySenateApropos.Commi[ee–Unlikelytomakeintolaw• GAOReport(12/14/15)findingthatEPA’s“socialmedia’campaignviolatedseveralfederallaws–Cong.OversightCommi[eesinvesYgaYngandclaimingthatEPAis“stonewalling.”

Hawkes v. U.S. ( S.Ct. 5/31/16)

• UnanimousSupremeCt.rulesthatJDRecipientscanfilepre-enforcementsuitschallengingJDrecord.• CourtExtends2012Sacke[RulingtoJDsfindingthatJDmeets“finality”test.•  JusYceKennedycommentsRelevanttoWOTUS.HecommentsthatØ “CWAreachisnotoriousunclear.”Ø “ActconKnuestoRaisetroublingquesKonsregardingGovernment’spowertocastdoubtonthefulluseandenjoymentofprivateproperty.”

Ø CommentssuggestthathemayhaveconcernsoverbroadsweepofWOTUSruleshoulditreachtheCourt.

The Future of WOTUS?

•  LiYgaYonOutcomeUncertain

• CongressionalAcYonUncertain

•  TheElecYon---NewCongressandPresidentCouldbeDecisive