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U.S. Supreme Court to Hear Arizona Case Challenging ESA Primacy

by Joe Gelt

A situation in Arizona is garnering national attention with the U.S. Supreme Court agreeing to hear a pair of consolidated appeals — EPA v. Defenders of Wildlife and the National Association of Homebuilders v. Defenders of Wildlife. The appeals raise the issue whether federal agencies must comply with the Endangered Species Act when implementing other laws.

This is considered a landmark case with national implications and one of the most significant ESA cases to come before the Court in a decade. Oral arguments are expected to begin next month.

At issue is whether the U.S. Environmental Protection Agency erred in 2002 when it allowed Arizona primacy to administer its own storm water discharge program. With state primacy, the National Pollutant Discharge Elimination System program or NPDES became AZPDES. A NPDES or AZPDES permit is required to discharge wastewater into a navigable stream.

Environmentalists sued EPA arguing that the agency did not consider the effect the transfer decision might have on endangered species. EPA claimed it lacked the authority to consider such impacts.

Rapanos Case Muddies Navigable Waters

When the Defenders of Wildlife v Arizona National Pollutant Discharge Elimination System case is decided some fear a possible repeat performance as when the Supreme Court ruled on joint cases of Rapanos v. United States and Carabell v. U.S. Army Corps of Engineers. The cases addressed the question: Does the Clean Water Act protect wetlands adjacent to small tributaries that flow into larger water bodies?
A plurality of five justices agreed in principle that the EPA and the Army Corps of Engineers misinterpreted the Clean Water Act when they denied permits to developers wanting to build on wetlands a considerable distance from “navigable waters” as defined by the act.
Associate Justice Antonin Scalia wrote the plurality opinion that found that the Corps’ “expansive interpretation” of the Clean Water Act was not “based on a permissible construction of the statute.”

Associate Justice Kennedy, however, wrote a separate concurring opinion that sharply diverged from the majority by calling on the Corps to consider whether the wetlands in question possess “a significant nexus” with navigable waters.

Some legal experts say the decision raised more questions than it answered about the course of environmental regulations. It set off a series of lower-court battles in efforts to determine its meaning. Some look to Congress to decide the issue by redefining its definition of “navigable waters” under the Clean Water Act, stating clearly which waters and wetlands qualify for protection. Meanwhile the Corps and EPA are expected to issue guidance on the issue.

This is the same court that will rule on Defenders/AZPDES, with four justices generally favoring a broad interpretation of environmental laws, four with a strict constructionist view and a swing vote. Some observers refer to Rapanos as a “4-1-4” decision.

 

Are species protected?
In taking on what was previously a federal responsibility, the state does not have the same ESA enforcement authority and responsibilities as EPA. When EPA administered the program the agency would consult with U.S. Fish & Wildlife Service about any threat to a species, with the result that a permit might be withheld or mitigating activities required. The state does not confront the same stringent requirements

The 9th U.S. Circuit Court of Appeal agreed with the environmental interests stating, “that the EPA did have the authority to consider jeopardy to listed species in making the transfer decision, and erred in determining otherwise. For that reason among others, the EPA’s decision was arbitrary and capricious.”

The 9th Circuit Court denied a petition for rehearing, and the original ruling stood; the case was appealed to the Supreme Court.

Michael Ford, an environmental attorney with Bryan Cave says, “The basic issue we hope the court will decide is whether ESA requirements trump those of other laws ... in the face of a program or statute that does not call for it. It is whether the ESA is an overarching piece of regulation that applies to all other environmental laws.”

EPA and NAHB argue that Congressional approval for EPA to transfer the permitting authority to the states required that the states meet nine criteria of the Clean Water Act when issuing their permits. The storm water runoff program essentially evaluates CWA compliance. Since ESA compliance is not included among the criteria, they say it would go beyond the law’s intent to require it.

Case has broad implications
At issue is not just AZPDES; all the other CWA-delegated programs throughout the country could be challenged. Ford says, “A lot of the programs have been delegated since the 70s. The 45 other states, and I don’t know how many Indian Tribes, that already have delegation ... could these be challenged if the court rules in favor of the environmental groups on this one?”

Implications could go beyond the CWA to affect other state permitting programs with a federal lineage. If the 9th Circuit ruling were to stand, some lawyers argue it could be applied to state involvement in hazardous waste and federal housing permitting. Other delegated programs such as the Clean Air Act and the Resource Conservation and Recovery Act also could be affected.

By taking the case, the Supreme Court has settled one issue, at least for the time being. If it had refused the case, questions would have been raised about ADEQ-issued permits: which remain valid and for how long and also the status of pending applications. That the court is taking the case means that Arizona will maintain the program, at least until a decision is issued which is expected later this year. ADEQ is still issuing permits.

Other environmental cases
This is one of this year’s Supreme Court cases that court watchers with an environmental interest have followed with special attention as having particular significance in the making of environmental law. In Rapanos v. United States the Court addressed the federal government’s authority over wetlands. (See above sidebar)

Another case is Massachusetts v EPA. Environmental groups faulting the federal government’s response to global warming petitioned EPA to regulate carbon dioxide and other greenhouse gases from new motor vehicles. They argued that greenhouse gases are air pollutants and regulated under the Clean Air Act. They cited Section 202 of the act which states that the federal government is to regulate “any air pollutant” that can “reasonably be anticipated to endanger public health or welfare.”

EPA denied the petition in August 2003 stating that the act does not authorize the agency to regulate greenhouse gas emissions. And even if it did, EPA said it would not because the link between greenhouses emissions and global warming is not unequivocally established.

The U.S. Supreme Court accepted the case for review on June 26, 2006. The case has not been decided.





 
 
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