### In the



# United States Court of Appeals

For the Seventh Circuit

____________________

No. 17

‐ 3403

O RCHARD H ILL B UILDING C OMPANY

, doing business as

G ALLAGHER & H ENRY

, Plaintiff

‐ Appellant

,

v.

U NITED S TATES A RMY C ORPS OF E NGINEERS

, Defendant

‐ Appellee

.

____________________

Appeal from the United States District Court for the

Northern District of Illinois, Eastern Division.

No. 1:15

‐ cv

‐ 06344

— John Robert Blakey

, Judge

.

____________________

A RGUED M AY 29, 2018

— D ECIDED J UNE 27, 2018

____________________

Before B AUER

, B ARRETT

, and S T

. E VE

, Circuit Judges

.

S T

. E VE

, Circuit Judge

. This case concerns just shy of 13 acres

of wetlands, which lie in a south

‐ suburban plot of land called

the Warmke parcel. Orchard Hill Building Company pur

‐

chased the Warmke parcel in 1995 with plans for a large

‐ scale

residential development. Not wanting to run afoul of the

Clean Water Act, Orchard Hill requested a determination2 No. 17

‐ 3403

from the United States Army Corps of Engineers that the wet

‐

lands (or the “Warmke wetlands”) were not jurisdictional

“waters of the United States.” The Corps decided that they

were, and Orchard Hill has spent the last 12 years challenging

that decision. We find that the Corps has not provided sub

‐

stantial evidence of a significant nexus to navigable

‐ in

‐ fact

waters, and therefore vacate and remand with instructions

that the Corps reconsider its determination.

I. Background

A braid of regulatory, judicial, and administrative events

led to the Corps’ final claim of jurisdiction over the Warmke

wetlands. We start at the beginning.

Congress enacted the Clean Water Act in 1972 “to restore

and maintain the chemical, physical, and biological integrity

of the Nation’s waters.” 33 U.S.C. § 1251(a). One of the Act’s

primary means to that end is its general prohibition on pol

‐ luting “navigable waters,” which it defines as “waters of the

United States.” Id. §§ 1311(a), 1362(7), (12). The Act imposes

significant criminal and civil penalties for such pollution, id.

§§ 1319(c), (d), and obtaining a permit to build on or near such

waters can be a lengthy and costly process. Yet the Act does

not define what constitutes “waters of the United States.” See,

e.g.

, United States v. Krilich

, 209 F.3d 968, 970 (7th Cir. 2000).

That job falls to the Corps of Engineers and the Environ

‐

mental Protection Agency—and it has proven “a contentious

and difficult task.” Nat’l Ass’n of Mfrs. v. Dep’t of Def.

, 138 S. Ct.

617, 624 (2018); see also 33 C.F.R. § 328.3 (the Corps’ definition

of waters of the United States); 40 C.F.R. § 122.2 (the EPA’s

definition of waters of the United States). To take a recent ex

‐ ample, the agencies’ attempt in 2015 to redefine the statutoryNo. 17

‐ 3403 3

phrase resulted in a new administration’s swift overhaul and

a slew of litigation. See generally Nat’l Ass’n of Mfrs.

, 138 S. Ct.

at 625–27; Executive Order 13778: Restoring the Rule of Law,

Federalism, and Economic Growth by Reviewing the “Waters

of the United States” Rule, 82 Fed. Reg. 12,497 (Feb. 28, 2017);

Definition of “Waters of the United States”—Addition of an

Applicability Date to 2015 Clean Water Rule, 83 Fed. Reg.

5,200 (Feb. 6, 2018); James Conrad, Wetlands Jurisdiction

, E NV

.

S CI

. D ESKBOOK § 9:1 (2018). This case, however, concerns the

Corps’ definition of waters of the United States as it existed

before 2015. See Schaefer v. Walker Bros. Enters.

, 829 F.3d 551,

558 (7th Cir. 2016).

The Corps defined waters of the United States broadly to

include waters “subject to the ebb and flow of the tide,” “riv

‐

ers” that could be used for interstate recreation or commerce,

“tributaries” of such waters, and—most importantly here—

“wetlands adjacent to” other waters of the United States, in

‐ cluding tributaries. 33 C.F.R. §§ 328.3(a)(1)–(7) (1994). 1 There

was (and is) an exemption, though, for “prior converted

cropland.” Id. § 328.3(8). The Corps considers “prior con

‐

verted cropland” to mean wetlands “manipulated

... and

cropped” before 1985 (when Congress enacted the “Swamp

‐

buster” program, which denies benefits to farmers who use

wetlands for farming), but not abandoned of farming use for

five or more years. 2 See Proposed Rule for the Clean Water

1 All future citations to 33 C.F.R. § 328.3 refer to the version in effect

before August 28, 2015.

2 Because we find that the Corps failed to justify its jurisdictional de

‐

termination with substantial evidence in the record, we do not decide, as

Orchard Hill argues we should, whether the Corps’ interpretation of

“prior converted cropland” to exclude lands abandoned for five or more4 No. 17

‐ 3403

Act Regulator Programs of the Army Corps of Engineers and

the Environmental Protection Agency (Proposed Rule), 57

Fed. Reg. 26,894, 26,897–26,900 (June 16, 1992); Clean Water

Act Regulatory Programs (Final Rule), 58 Fed. Reg. 45,008,

45,031–45,034 (Aug. 25, 1993).

Despite, or perhaps because of, those definitions, “[i]t is

often difficult to determine whether a particular piece of

property contains waters of the United States.” U.S. Army

Corps of Eng’rs v. Hawkes Co.

, 136 S. Ct. 1807, 1812 (2016). But

concerned landowners need not risk fines or endure the

permit

‐ application process before deciding whether to build

on or alter their property. They can instead seek a

“jurisdictional determination” from the Corps as to whether

their property contains waters of the United States. 33 C.F.R.

§§ 320.1(a)(6), 325.9, 331.2.

Orchard Hill was such a landowner. In 1995, it completed

its purchase of the Warmke parcel, a 100

‐ acre former farm

‐

land located in Tinley Park, Illinois. Orchard Hill then re

‐

ceived permits to build a two

‐ phase residential development

on the parcel. The first phase started in 1996, and over the next

seven years, Orchard Hill constructed more than a hundred

homes. Construction altered the area’s water drainage, and

about 13 acres pooled with rainwater and grew wetland veg

‐

etation. Before starting the second phase and building on

those acres—the Warmke wetlands—Orchard Hill sought a

jurisdictional determination from the Corps in 2006.

years (the “five

‐ year

‐ abandonment limitation”) is a legislative rule that vi

‐

olates the Administrative Procedure Act’s (“APA”) notice

‐ and

‐ comment

requirements. 5 U.S.C. § 553.No. 17

‐ 3403 5

“The history of the Warmke [wetlands] jurisdictional de

‐

termination can be described as lengthy, contentious and

complex,” as a Corps district engineer aptly put it. 3 The

Warmke wetlands, like all of the Warmke parcel, are sur

‐

rounded by residential development. The closest navigable

water (as that phrase is literally understood, meaning naviga

‐

ble

‐ in

‐ fact) is the Little Calumet River, which is 11 miles away.

In between the Warmke wetlands and the Little Calumet

River are man

‐ made ditches, open

‐ water basins, sewer pipes,

and the Midlothian Creek—a tributary of the Little Calumet

River. The assigned district engineer determined the Warmke

wetlands were adjacent to that tributary, and thus waters of

the United States. See 33 C.F.R. §§ 283.3(a)(5), (7). That deter

‐

mination rested on the fact that the Warmke wetlands

drained, by way of sewer pipes, to the Midlothian Creek. Or

‐

chard Hill appealed that decision, pursuant to its regulatory

right. See id. §§ 331.6(a), 331.7(a), 331.3(a)(1).

While that appeal was pending, the Supreme Court issued

a landmark decision paring back the Corps’ jurisdictional

reach. Rapanos v. United States

, 547 U.S. 715 (2006), involved

two consolidated appeals from decisions upholding jurisdic

‐

tional determinations. Both cases posed the question: When

do wetlands that are not adjacent to waters that are navigable

‐

in

‐ fact constitute waters of the United States? Rapanos did not

produce a majority opinion, and without one to definitively

answer the question, we have held that Justice Anthony Ken

‐ nedy’s concurrence controls. United States v. Gerke Excavating,

3 District engineers perform first

‐ level jurisdictional reviews, and di

‐

vision engineers review appeals of those determinations. See 33 C.F.R.

§§ 320.1(a)(2), 325.9, 331.3(a)(1). Where that distinction is not relevant, we

refer generally to the Corps.6 No. 17

‐ 3403

Inc.

, 464 F.3d 723, 724–25 (7th Cir. 2006) (per curiam); see also

N. Cal. River Watch v. City of Healdsburg

, 496 F.3d 993, 999–1000

(9th Cir. 2007); United States v. Robison

, 505 F.3d 1208, 1221

(11th Cir. 2007). 4

Justice Kennedy decided that a wetland’s adjacency to a

tributary of a navigable

‐ in

‐ fact water is alone insufficient to

make the wetland a water of the United States. Instead, “the

Corps’ jurisdiction over [such] wetlands depends upon the

existence of a significant nexus between the wetlands in ques

‐

tion and navigable waters in the traditional sense.” Rapanos

,

547 U.S. at 779. He explained:

[W]etlands possess the requisite nexus, and thus come

within the statutory phrase “navigable waters,” if the wet

‐

lands, either alone or in combination with similarly situated

lands in the region, significantly affect the chemical, physi

‐

cal, and biological integrity of other covered waters more

readily understood as “navigable.” When, in contrast, wet

‐

lands’ effects on water quality are speculative or insubstan

‐

tial, they fall outside the zone fairly encompassed by the

statutory term “navigable waters.”

Id. at 780. The Corps, Justice Kennedy wrote, must make this

determination “on a case

‐ by

‐ case basis when it seeks to regu

‐

late wetlands based on adjacency to nonnavigable tributar

‐

ies.” Id. at 782.

4 Some of our sister courts have concluded that the Corps can establish

jurisdiction by using either the standard Justice Kennedy explained or the

standard described in Justice Antonin Scalia’s plurality opinion. See United

States v. Donovan

, 661 F.3d 174, 176, 182 (3d Cir. 2011); United States v. Bai

‐ ley

, 571 F.3d 791, 798–99 (8th Cir. 2009); United States v. Johnson

, 467 F.3d

56, 64–66 (1st Cir. 2006). Neither party asks us to revisit our decision in

Gerke

, and we see no reason to do so.No. 17

‐ 3403 7

After Rapanos

, the Corps, too, decided to follow Justice

Kennedy’s significant

‐ nexus test. In late 2008, it published in

‐

ternal guidance titled Clean Water Act Jurisdiction Following

the U.S. Supreme Court’s Decision in Rapanos v. United States

& Carabell v. United States (the “ Rapanos Guidance”). The Ra

‐

panos Guidance interprets “similarly situated lands” in the

significant

‐ nexus test to mean all “wetlands adjacent to the

same tributary,” because “such wetlands are physically lo

‐

cated in a like manner.” It instructs the Corps to determine

first if any such adjacent wetlands exist, and if so, to “consider

the flow and functions of the tributary together with the func

‐

tions performed by all the wetlands adjacent to that tributary

in evaluating whether a significant nexus is present.”

In light of Rapanos

, the Corps’ division engineer remanded

the 2006 jurisdictional determination of the Warmke wetlands

for further review. Between 2008 and 2010, the district engi

‐

neer reviewed the wetlands’ soil composition, and in March

2010, he made a site visit. There, the district engineer observed

an “intermittent flow” of water from the Warmke wetlands to

the Midlothian Creek. The district engineer did not test or

sample the Warmke wetlands’ composition, but based on the

observed hydrological connection, he again concluded that

the Corps had jurisdiction over the wetlands. Orchard Hill

filed an appeal, which the Corps denied.

That might have been the end of the administrative road,

but for another federal

‐ court decision. In September 2010, a

district court set aside a Corps rule that excluded “non

‐ agricultural” land from the prior

‐ converted

‐ cropland

exemption (a rule which the Corps devised after and apart

from its five

‐ year

‐ abandonment limitation), reasoning that it

was a legislative rule that had not gone through notice

‐ and

‐8 No. 17

‐ 3403

comment under the APA. New Hope Power Co. v. U.S. Army

Corps of Eng’rs

, 746 F. Supp. 2d 1272, 1276, 1281–84 (S.D. Fla.

2010). Relying on that decision, Orchard Hill asked the district

engineer to reconsider his jurisdictional determination and

decide whether the Warmke wetlands should fall within the

exemption. The district engineer agreed to revisit his decision,

but again determined the Corps had jurisdiction over the

Warmke wetlands. This determination noted that New Hope

had left in place the exemption’s five

‐ year

‐ abandonment

limitation, and that the Warmke wetlands had been vacant

and unused since the completed sale to Orchard Hill. See New

Hope

, 746 F. Supp. 2d at 1282.

The reconsidered determination also elaborated on the

significant

‐ nexus analysis. Its report listed 165 wetlands pur

‐ portedly “adjacent” to the Midlothian Creek, and thus “simi

‐ larly situated” to the Warmke wetlands per the Rapanos Guid

‐

ance. The report did not show or explain these wetlands’

proximity to the Midlothian Creek. Nor did the report reflect

that the Corps had conducted observation or testing of the 165

wetlands. The district engineer, nevertheless, concluded that

the wetlands collectively “decrease sedimentation, pollutants,

and flood waters downstream while offering beneficial nutri

‐

ents and habitat” to the Midlothian Creek and Little Calumet

River. He thus found that the Warmke “wetland[s] alone or in

combination with the wetlands in the area significantly affect

the chemical, physical and biological integrity of the Little

Calumet River.”

A third appeal followed. The reviewing division engineer

agreed that Orchard Hill’s claim of the prior

‐ converted

‐ cropland exemption had no merit given the Warmke wet

‐

lands’ 15

‐ year abandonment. She found lacking, however, theNo. 17

‐ 3403 9

district engineer’s significant

‐ nexus analysis. As she put it, the

Corps had “failed to provide the required explanation,” and

“failed to show its work justifying its summary conclusions.”

The division engineer remanded with instructions to comply

with the Rapanos Guidance, which requires the Corps to pro

‐

vide grounds and explanations for its significant

‐ nexus con

‐

clusions. The district engineer’s subsequent decision, accord

‐ ing to the remand order, would be the Corps’ final approved

jurisdictional determination for the Warmke wetlands.

On remand, in July 2013, the district engineer supple

‐

mented his findings with an 11

‐ page report. The supplement

asserted that the 165 wetlands considered were all a part of

the “Midlothian Creek watershed,” though it did not describe

that term or map that area. The supplement further explained

the significant flooding problems the Tinley Park area had

faced in recent years, and, relying on scientific literature and

studies, detailed how wetlands help reduce floodwaters. It

also described the effect of wetlands generally on reducing

pollutants in downstream waters, and the wildlife that inhab

‐

ited the Warmke wetlands. The supplement’s conclusion ulti

‐ mately mirrored the earlier determination: the Warmke wet

‐

lands, alone or in combination with the area’s other wetlands,

have a significant nexus to the Little Calumet River.

With that final determination made, Orchard Hill turned

to federal court. It sought review of the Corps’ jurisdictional

determination as a “final agency action” under the APA. As

such, no discovery occurred, and the parties filed cross mo

‐

tions for summary judgment based on the administrative rec

‐

ord. In its decision, the district court examined the Corps’

findings—specifically those set forth in the 11

‐ page supple

‐

ment—and deferred to the Corps’ conclusions regarding the10 No. 17

‐ 3403

physical, chemical, and biological impact of the Warmke wet

‐

lands on the Little Calumet River. It also decided that the

Corps had appropriately applied the five

‐ year

‐ abandonment

limitation. The district court therefore granted the Corps’

summary

‐judgment motion and denied Orchard Hill’s, enter

‐ ing judgment in favor of the Corps. Orchard Hill appealed.

II. Standards of Review

We review de novo a district court’s decision to grant sum

‐

mary judgment. Laborers’ Pension Fund v. W.R. Weis Co.

, 879

F.3d 760, 766 (7th Cir. 2018). We apply the same standard the

district court did in reviewing the Corps’ jurisdictional deter

‐

mination—the APA. Stable Invs. P’ship v. Vilsack

, 775 F.3d 910,

915 (7th Cir. 2015).

Under the APA, a court must set aside an agency determi

‐

nation if it is “arbitrary, capricious, an abuse of discretion, or

otherwise not in accordance with law,” or if it is “unsup

‐ ported by substantial evidence.” 5 U.S.C. §§ 706(2)(A), (E); see

also Rapanos

, 547 U.S. at 786 (Kennedy, J., concurring). Those

standards overlap. See, e.g.

, Witter v. Commodity Futures Trad

‐ ing Comm’n

, 832 F.3d 745, 749 (7th Cir. 2016). A determination

is arbitrary and capricious if it “runs counter to the evidence

before the agency, or is so implausible that it could not be as

‐

cribed to a difference in view or the product of agency exper

‐

tise.” Zero Zone, Inc. v. U.S. Dep ʹ t of Energy

, 832 F.3d 654, 668

(7th Cir. 2016) (quoting Nat’l Ass’n of Home Builders v. Defs. of

Wildlife

, 551 U.S. 664, 658 (2007)). A determination is unsup

‐ ported by substantial evidence when the record lacks evi

‐

dence that “a reasonable mind might accept as adequate to

support the conclusion.” Id. ; see also Addis v. Dep ʹ t of Labor

, 575

F.3d 688, 690 (7th Cir. 2009). Under either APA standard, the

scope of review is “narrow and a court must not substitute itsNo. 17

‐ 3403 11

judgment for that of the agency.” Abraham Lincoln Mem’l Hosp.

v. Sebelius

, 698 F.3d 536, 547 (7th Cir. 2012); see also Dana Con

‐

tainer, Inc. v. Sec’y of Labor

, 847 F.3d 495, 499 (7th Cir. 2017).

That does not mean the review is “toothless,” though. Pi

‐

oneer Trail Wind Farm, LLC v. Fed. Energy Regulatory Comm’n

,

798 F.3d 603, 608 (7th Cir. 2015). The Supreme Court has in

‐

structed that the “APA requires meaningful review.” Dickin

‐

son v. Zurko

, 527 U.S. 150, 162 (1999). More specifically, a “re

‐ viewing court should not attempt itself to make up for

... de

‐

ficiencies” in an agency’s reasoning, nor “supply a reasoned

basis for the agency’s action that the agency itself has not

given.” Zero Zone

, 832 F.3d at 668 (quoting Motor Vehicle Mfrs.

Ass’n of U.S., Inc. v. State Farm Mut. Auto. Ins. Co.

, 463 U.S. 29,

43 (1983)). A court, in other words, should deferentially ex

‐

amine an agency’s work, but not rubber

‐ stamp it. 5 Dickinson

,

527 U.S. at 162.

5 Orchard Hill does not protest the APA’s standard of review, but it

argues that the Corps’ determination requires a more demanding inquiry.

It invokes the constitutional concerns supposedly implicated by the

Corps’ claim of jurisdiction to intrastate waters, but compare Solid Waste

Agency of N. Cook Cnty. v. U.S. Army Corps of Eng’rs

, 531 U.S. 159, 173 (2001)

( SWANCC ), with Rapanos

, 547 U.S. at 782–83 (Kennedy, J., concurring), and

cites Precon Dev. Corp. v. U.S. Army Corps of Eng’rs

, 633 F.3d 278 (4th Cir.

2011), which reviewed the Corps’ compliance with the significant

‐ nexus

test de novo, but see Hawkes

, 136 S. Ct. at 1813 (an approved jurisdictional

determination based on a significant

‐ nexus conclusion is subject to the

APA). We will not address this argument, because Orchard Hill did not

present it to the district court. See, e.g.

, Lauth v. Covance, Inc.

, 863 F.3d 708,

718 (7th Cir. 2017) (“we can invoke waiver sua sponte ”).12 No. 17

‐ 3403

III. Discussion

The significant

‐ nexus test requires that the Corps deter

‐

mine on a case

‐ by

‐ case basis whether wetlands, “either alone

or in combination with similarly situated lands in the region,

significantly affect the chemical, physical, and biological in

‐ tegrity of other covered waters more readily understood as

‘navigable.’” Rapanos

, 547 U.S. at 780. On final remand, and

based largely on the 11

‐ page supplement, the Corps con

‐

cluded that the Warmke wetlands met that standard—both

“alone and in combination with other wetlands in the area.”

That conclusion lacks substantial evidence in the record.

Take the effect of the Warmke wetlands “alone.” Accord

‐ ing to the supplement, wetlands are “nature’s kidneys,” able

to filter out pollutants that would otherwise reach down

‐

stream waters. Northeastern Illinois waters are known to suf

‐

fer relatively high rates of nitrogen, and the Warmke wetlands

have a “discrete and confined intermittent flow” to the Mid

‐

lothian Creek. From this connection, the Corps concluded that

the Warmke wetlands have the “ability” to pass pollutants

along. But such a “speculative” finding cannot support a sig

‐

nificant nexus. Rapanos

, 547 U.S. at 780; see also id. at 786 (“con

‐

ditional language” like “potential ability” may “suggest an

undue degree of speculation, and a reviewing court must

identify substantial evidence”).

The supplement further pointed out that the almost

‐ 13

‐

acre Warmke wetlands are the fourth largest wetlands in the

area, making up 2.7 percent of the 462.9 total acres of the wet

‐

lands in the Midlothian Creek watershed. According to the

supplement, if all the wetlands in the watershed were lost,

floodwaters in the area would rise by 13.5 percent. That

“rough estimate” also fails to support a significant nexus forNo. 17

‐ 3403 13

the Warmke wetlands alone. Based on the Corps’ figures, loss

of the Warmke wetlands would result in a floodwater rise of

a fraction of a percent. If the Corps thinks that trivial number

significant, it needs to give some explanation as to why. See,

e.g.

, BP Energy Co. v. Fed. Energy Regulatory Comm ʹ n

, 828 F.3d

959, 965–66 (D.C. Cir. 2016); accord McDonnell Douglas Corp. v.

U.S. Dep ʹ t of the Air Force

, 375 F.3d 1182, 1191 (D.C. Cir. 2004)

(an agency that fails to “explain how its knowledge or experi

‐

ence supports” its conclusions is not afforded deference un

‐

der the APA).

The same goes for the supplement’s finding about the po

‐

tential increase on downstream nitrogen. It reasoned that, if

all the watersheds’ wetlands were lost, 27 to 51 percent more

nitrogen would enter the Midlothian Creek, which would

then pollute the Little Calumet River in some un

‐ estimated

amount. Assuming there is nitrogen in the Warmke wetlands

(which the Corps did not test), they, again, make up just 2.7

percent of the watersheds’ total wetlands, and so would pre

‐ sumably account for a small fraction of that increase to the

Midlothian Creek (to say nothing of the increase to the navi

‐ gable

‐ in

‐ fact River). Such a bit impact seems “insubstantial,”

Rapanos

, 547 U.S. at 780, and if the Corps thinks otherwise it

must provide its reasoning. The supplement further identi

‐

fied certain wildlife that might lose their habitat if the

Warmke wetlands were developed. It did not, however, show

how that loss of habitat would significantly impact the 11

‐

miles

‐ away Little Calumet River.

Notwithstanding the Corps’ claim that the Warmke wet

‐

lands “alone” have a significant nexus to the Little Calumet

River, both the supplement and the Corps’ arguments on ap

‐ peal focus on the net impact of the 165 total wetlands in the14 No. 17

‐ 3403

“Midlothian Creek watershed.” As noted, the Corps found

that loss of those wetlands would increase the area’s peak

floodwaters and result in nitrogen loading into the Midlo

‐

thian Creek. But even if those findings mean something sig

‐

nificant to the Little Calumet River, the Corps has not pro

‐

vided substantial evidence for its finding that the 165 wet

‐

lands are in fact “similarly situated” such that the Corps can

consider their impacts in its jurisdictional analysis in the first

place.

Justice Kennedy did not define “similarly situated”—a

broad and ambiguous term—but the Rapanos Guidance does.

It interprets “similarly situated” as “all wetlands adjacent to

the same tributary.” It in turn defines “adjacent” to mean

“bordering, contiguous, or neighboring,” and notes that wet

‐

lands separated from other waters of the United States by, for

example, “man

‐ made dikes or barriers,” are still “adjacent

wetlands.” 33 C.F.R. § 328.3(c). The Corps argues that this in

‐ terpretation is worth our deference, and we assume it is. See

Precon

, 633 F.3d at 291. Nothing in the record, however, ade

‐ quately supports the Corps’ claim that the 165 wetlands are

adjacent to the Midlothian Creek.

The Corps’ approved jurisdictional

‐ determination form

calls for a listing of all wetlands “adjacent to the tributary (if

any).” The Corps listed the 165 wetlands there. The only hint

of those lands’ proximity to the Midlothian Creek is a column

named “Directly abuts? Y/N,” under which just four of the

165 lands were affirmatively designated. The list purports to

draw its information from a map vaguely titled “National

Wetlands Inventory: Tinley Park, Illinois Quadrangle, 1981,”

which hardly suggests a focus on the Midlothian Creek. That

National Wetlands Inventory (“NWI”) map does not appearNo. 17

‐ 3403 15

in the record, and the only NWI map that does shows no

‐

where near 165 wetlands. The supplement, nevertheless,

claimed that NWI data “identifies 165 wetlands in the Midlo

‐

thian Creek watershed.” That claim is unsupported by any

‐ thing in the record, but even assuming it is correct, the Corps

has failed to provide any explanation as to how wetlands in

the same watershed are, ipso facto

, adjacent to the same tribu

‐

tary. Indeed, the so

‐ called Midlothian Creek watershed is

12,626 acres—almost 20 square miles—and that considerable

size belies any assumption that lands within the watershed

are necessarily, or even likely, adjacent to the Creek.

The Corps offers several responses to this shortcoming. It

contends first that Orchard Hill has waived any argument

about the failure to identify the other wetlands’ adjacency to

the Midlothian Creek by not raising that issue at the adminis

‐

trative level. This contention is misguided. Orchard Hill did,

in fact, protest the Corps’ use of the 165

‐ wetlands list as insuf

‐

ficient during its third appeal. Even had it not, “claims of

waiver may themselves be waived.” United States v. Dunkel

,

927 F.2d 955, 956 (7th Cir. 1991). Orchard Hill argued to the

district court, as it does to us, that the Corps has not demon

‐

strated that the 165 wetlands are “similarly situated” because

the “list does not describe the wetlands, or their distance to

the 13 acres, Midlothian Creek, or the Little Calumet River.”

In response, the Corps did not raise the waiver argument that

it now raises on appeal. It is therefore waived. See, e.g.

, United

States v. Crisp

, 820 F.3d 910, 912–13 (7th Cir. 2016).

On the merits, the Corps argues that it need not show or

explain how each of the 165 wetlands is adjacent to the Mid

‐

lothian Creek. But accepting this argument, especially on this

record, would invite jurisdictional overreach. The significant

‐16 No. 17

‐ 3403

nexus test has limits: the Corps can consider the effects of

in

‐ question wetlands only with the effects of lands that are

similarly situated. Rapanos

, 547 U.S. at 780. To do as the Corps

did on this record—to consider the estimated effects of a wide

swath of land that dwarfs the in

‐ question wetlands, without

first showing or explaining how that land is in fact similarly

situated—is to disregard the test’s limits. Whatever the de

‐

gree to which the Corps must defend each and every wetland

it considers, its approach according to the record was plainly

deficient. Accord Sierra Club v. Fed. Energy Regulatory Comm’n

,

867 F.3d 1357, 1374 (D.C. Cir. 2017).

The Corps nonetheless claims we owe its findings defer

‐

ence, citing Precon for support. Courts, however, extend no

deference to agency decisions that lack record support or ex

‐ planation, e.g.

, Epsilon Elecs., Inc. v. U.S. Dep’t of Treasury, Of

‐ fice of Foreign Assets Control

, 857 F.3d 913, 927 (D.C. Cir. 2017),

and Precon does not change that. In Precon

, the Fourth Circuit

gave deference (specifically, Skidmore deference) to the Corps’

interpretation of “similarly situated” and to its related factual

findings. 633 F.3d at 290–92. We have assumed that the first

of those things is appropriate here. As to the second, in Precon

,

unlike here, the Corps “provided reasoned grounds” for its

similarly

‐ situated findings. Id. at 292. The Corps specifically

explained that the considered wetlands were historically part

of the same drainage system, and others were adjacent to

downstream, merged tributaries. Id. at 292–93. Even then, the

Fourth Circuit gave the Corps’ similarly

‐ situated findings

deference with reservation. Id. at 293 (“We urge the Corps to

consider ways to assemble more concrete evidence of similar

‐ ity before again aggregating such a broad swath of wet

‐ lands”). By contrast, the Corps’ similarly

‐ situated finding

here, lacking as it does record support or explanation, is littleNo. 17

‐ 3403 17

more than administrative ipse dixit

. See Bethlehem Steel Corp. v.

U.S. Envtl. Prot. Agency

, 638 F.2d 994, 1005 (7th Cir. 1980).

The Corps also submits that it need not “justify its reli

‐

ance” on the NWI data. This misunderstands the problem.

The APA requires some record evidence reasonably adequate

to support the finding that the 165 wetlands were similarly

situated or adjacent to the Midlothian Creek. See 5 U.S.C.

§ 706(2)(E). The Corps may not need to defend the use of NWI

data, but it does need to substantiate its say

‐ so about what the

NWI data shows and explain why it matters.

The fairest reading of the record is this: The district engi

‐

neer reviewed an NWI document that identified 165 wetlands

in the Tinley Park area, and assumed that all those wetlands

were similarly situated. Maybe the assumption was defensi

‐

ble, but the Corps “does not provide record support for that

assumption.” Susquehanna Int’l Grp., LLP v. Sec. and Exch.

Comm’n

, 866 F.3d 442, 450 (D.C. Cir. 2017). While we review

the Corps’ determination narrowly, no amount of agency def

‐

erence permits us to let slide critical findings bereft of record

support. See Motor Vehicle Mfrs. Ass ʹ n

, 463 U.S. at 43.

IV. Conclusion

This dispute has consumed almost as many years as the

Warmke wetlands have acres. In that time, the Corps has not

provided substantial evidence that the wetlands and those

similarly situated have a significant nexus to the Little Calu

‐

met River. We therefore VACATE the district court’s grant of

summary judgment to the Corps and REMAND with instruc

‐

tions to remand to the Corps for reconsideration of its juris

‐

diction over the Warmke wetlands.