Source: https://law.justia.com/cases/federal/appellate-courts/F2/742/901/212679/
Timestamp: 2020-03-31 13:52:46
Document Index: 796042234

Matched Legal Cases: ['§ 4332', '§ 1311', '§ 1344', '§ 1344', '§ 403', '§ 401', '§ 1362', '§ 706', '§ 1331']

Orleans Audubon Society, et al., Plaintiffs-appellants,sierra Club, Intervenor-appellant, v. Colonel Robert C. Lee, in His Official Capacity As Districtengineer, et al., Defendants-appellees, 742 F.2d 901 (5th Cir. 1984) :: Justia
Justia › US Law › Case Law › Federal Courts › Courts of Appeals › Fifth Circuit › 1984 › Orleans Audubon Society, et al., Plaintiffs-appellants,sierra Club, Intervenor-appellant, v. Colonel...
Orleans Audubon Society, et al., Plaintiffs-appellants,sierra Club, Intervenor-appellant, v. Colonel Robert C. Lee, in His Official Capacity As Districtengineer, et al., Defendants-appellees, 742 F.2d 901 (5th Cir. 1984)
US Court of Appeals for the Fifth Circuit - 742 F.2d 901 (5th Cir. 1984) Oct. 1, 1984. Rehearing and Rehearing En Banc Denied Nov. 16, 1984
The Corps of Engineers first became involved in this case in March 1976, when it received a citizen's complaint that the Drill Hole Canal had been blocked in violation of the Rivers and Harbors Appropriation Act of 1899 (RHA) and federal regulations which require the issuance of a permit for activities which result in the obstruction of navigable waters. Soon after receiving the complaint, the Corps issued a cease and desist order to the developer of the tract (C.I.T.'s predecessor in interest) and ordered the developer to apply for an after-the-fact permit for the canal blockage and for maintenance of the levee system around the tract. After C.I.T. became owner of the tract, it filed the necessary application. The Corps decided that it would have to prepare an environmental impact statement before granting or denying the permit application in order to comply with its responsibilities under the National Environmental Policy Act, Sec. 102, 42 U.S.C. § 4332 (1977).
Orleans concedes that we normally must review discretionary decisions of the Corps under the arbitrary and capricious standard, and it concedes that decisions not to require permits for actions by private developers, such as those at issue here, are usually considered to be discretionary. Despite these admissions, Orleans argues that we should review the first of the three decisions challenged in this case more closely because "a successor agency head [has], without any apparent valid reason, alter [ed] a three year old, apparently valid exercise of authority by his predecessor ...."3 The issues before this court, then, are (1) what standards of review to apply, and (2) whether the three challenged agency-decisions are reversible under the appropriate standards of review. Before discussing these issues, however, we shall canvass some of the statutes and regulations governing the Corps' decisions.
The Corps possesses regulatory authority relevant to this case granted by the Clean Water Act, which, in general, prohibits the discharge of pollutants into the navigable waters of the United States except in compliance with the CWA's terms.5 Clean Water Act, Secs. 301(a), 502(12), 33 U.S.C. § 1311(a), 1362(12) (1978). The Act authorizes the Secretary of the Army, acting through the Chief of Engineers, to "issue permits, after notice and opportunity for public hearings [,] for the discharge of dredged or fill material into the navigable waters at specified disposal sites," and to issue nationwide permits for some classes of activity. Clean Water Act, Sec. 404(a), (e), 33 U.S.C. § 1344(a), (e) (1978).6 In July 1977 the Corps enacted the nationwide permit regulations on which the Corps relied in this case to exempt the blockage of the Drill Hole Canal from individual permit requirements under the CWA. Those regulations provided for a phase-in of the individual permit requirements to wetlands and non-navigable waters.7 Discharges into wetlands or non-navigable waters prior to the phase-in dates were not subject to individual permit requirements if they did not violate certain health and environmental restrictions, subject to the Corps' reservation of discretionary authority to require an individual permit if the circumstances "indicate the need for such action because of ... adverse impacts to the affected waters," 33 C.F.R. Secs. 323.4-1(a), 323.4-4 (1977), superseded, see 47 Fed.Reg. 31,800 (1982). In addition to its authority to require individual permits for the depositing of dredged or fill material in navigable waters, the Corps may bring suits for injunctive and punitive relief for violations of permits issued under section 404. 33 U.S.C. § 1344(s) (1978). The Corps' 1977 regulations allowed district engineers to require an after-the-fact permit rather than bring suit if "the unauthorized activity does not warrant legal action." 33 C.F.R. Sec. 326.5 (1977).8
Orleans has also asserted claims relating to the Corps' regulatory authority under the Rivers and Harbors Act. Section 10 of the RHA prohibits the obstruction of the "navigable capacity" of the waters of the United States except as authorized by the Chief of Engineers and the Secretary of Army. 33 U.S.C. § 403. The Corps of Engineers has developed regulations which specify the circumstances under which it will authorize activities which obstruct navigable waters, as well as regulations which define "navigable waters" for the purposes of determining whether the Corps will exercise section 10 jurisdiction over particular bodies of water. Through these regulations the Corps has asserted jurisdiction over privately developed artificial channels, even those passing through private property, if they are susceptible to being used in support of interstate commerce. 33 C.F.R. 329.4, 329.5, 329.8 (1983). In general, the Corps requires individual permits for all "structures and/or work in or affecting navigable waters of the United States ...." unless the regulations specifically exempt the activity, 33 C.F.R. Sec. 322.3(a) (1983), but it has established "nationwide permits" which exempt certain classes of activities from the individual permit requirements. Prior to July 22, 1982, nationwide permits promulgated under section 10 authority were codified at 33 C.F.R. Sec. 322.4.9 These nationwide permits, promulgated by the Corps in July 1977, provide:
This court has recently reaffirmed the principle that an agency may adjust its rules and policies in the light of its experience and changing circumstances. Creppel, 670 F.2d at 571; American Petroleum Institute v. Environmental Protection Agency, 661 F.2d 340, 355 (5th Cir. 1981). Even when an agency abandons a prior determination, the reviewing court should affirm the agency's decision if the final agency action is not arbitrary or capricious. Texaco, Inc. v. National Labor Relations Board, 700 F.2d 1039, 1043 (5th Cir. 1983); Creppel, 670 F.2d at 571-72.
Orleans invites this panel to modify the rules summarized above because in this case the reversal of an agency's position coincides with a change in agency leadership. We decline to depart from our traditional standard of review, however, because to do so would violate a basic principle of judicial review of agency action, that is, the presumption of regularity. See Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. 402, 415, 91 S. Ct. 814, 823, 28 L. Ed. 2d 136 (1971). Orleans advances no persuasive reasons for abandoning this presumption here. If, in fact, the Corps' decision to discontinue the permit process for the Drill Hole Canal was made in bad faith or is otherwise not supported by the administrative record, then the decision will not withstand the arbitrary and capricious standard. On the other hand, if the decision represents a valid exercise of the Corps' decision-making powers, then this court should not interfere with the Corps' judgment. Overton Park, 401 U.S. at 416, 91 S. Ct. at 824. To substitute a stricter rule of judicial review for changes of agency rules made by succeeding administrations would unnecessarily and inappropriately restrict the agency's discretion. The record in this case shows that the New Orleans district of the Corps has had three district engineers since 1976.13 If this court considers each change of administration to undermine the traditional standards of deference outlined in Creppel, then only rarely would a federal agency such as the Corps be able to change its bureaucratic mind without being subject to a higher level of judicial scrutiny. Such a rule is, it seems to us, at odds with this court's policy of deference to matters generally committed to the expertise and discretion of federal agencies. See Avoyelles Sportsmen's League, Inc. v. Marsh, 715 F.2d 897, 904 (5th Cir. 1983); Buttrey v. United States, 690 F.2d 1170, 1183-85 (5th Cir. 1982), cert. denied, 461 U.S. 927, 103 S. Ct. 2087, 77 L. Ed. 2d 298 (1983).
The facts before the Corps were as follows. During 1972 and 1973, when this discharge occurred, the Corps did not consider the Drill Hole Canal to be a navigable waterway. The Corps did not exert jurisdiction over private, man-made canals, such as the Drill Hole Canal, during the period when this canal was actually blocked. In March 1976, the Corps issued a cease and desist order to the owner of the C.I.T. tract, basing its authority to require an after-the-fact permit on United States v. Stoeco Homes, Inc., 498 F.2d 597 (3d Cir. 1974), cert. denied, 420 U.S. 927, 95 S. Ct. 1124, 43 L. Ed. 2d 397 (1975). This was the first time that the Corps even arguably asserted jurisdiction over the Drill Hole Canal. In 1977, the Corps formally amended its regulations to make it clear that private artificial canals subject to tidal action were within the Corps' jurisdiction.
In applying the nationwide permit regulation to this situation, the Corps decided that the discharge was not made into a "navigable water", based on the status of the Drill Hole Canal when the discharge occurred. In reasoning this way, the Corps chose not to use several other points in time at which it might have chosen to measure navigability: the enactment of the CWA, the promulgation of the 1977 regulations, or the time when the Corps was deciding whether to require an after-the-fact permit. Although the Corps did not actually discuss its rationale for choosing the date of the discharge, a valid rationale is immediately apparent: that is, the unfairness of exerting jurisdiction over activity which, when done, was clearly not within the Corps' jurisdiction. In fact, the Eleventh Circuit recently held that the Corps may not retroactively apply the CWA permit requirements against private developers in some situations. United States v. Context-Marks Corp., 729 F.2d 1294 (11th Cir. 1984); Buccaneer Point Estates, Inc. v. United States, 729 F.2d 1297 (11th Cir. 1984). While these cases arose in a factually dissimilar context from this one, their reasoning helps to persuade us that the Corps did not act arbitrarily or capriciously in interpreting this regulation.
Orleans also contends that the repair of the levees surrounding the C.I.T. tract in the fall of 1979 required permits under the CWA. When C.I.T. first contacted the Corps about repairing the levees, the Corps took the position that the repairs could be performed without a permit under the authority of section 404(f) (1) (B) of the CWA, which exempts the discharge of dredge of fill material for the purposes of maintenance of currently serviceable structures such as levees. In addition, the Corps found that a nationwide permit promulgated under the CWA, 33 C.F.R. 323.4-3(a) (5) (1977), covered the levee repair.14 The Corps found that the levee was currently serviceable, as required by the statute and the interpretative regulation, because it served as a secondary flood and hurricane protection barrier for the nearby Lincolnshire subdivision.
Orleans argues that the decision not to require an after-the-fact permit for the closure of the Drill Hole Canal was arbitrary and capricious because it contravened section 10 of the RHA. However, Colonel Sands clearly based his decision not to require a permit on 33 C.F.R. Sec. 322.4(g). That section created a nationwide permit for " [s]tructures or work completed before 18 December 1968 or in waterbodies over which the District Engineer has not asserted jurisdiction provided there is no interference with navigation." The Corps interpreted this regulation to exempt from the permit requirement any structure or work completed in a waterway before the Corps asserted jurisdiction over that waterway. We have already discussed the fact that the Corps did not assert jurisdiction over canals such as the Drill Hole Canal until several years after the Drill Hole Canal was blocked. As long as the Corps' interpretation of the exemption is not arbitrary or capricious, we must not disturb its decision not to require a section 10 permit. We realize that section 322.4(g) could plausibly be read to exempt only those structures completed in waterbodies over which the Corps had not exerted jurisdiction in July 1977, when the regulation was promulgated. However, we also find that the Corps' reading of the regulation is not unreasonable, particularly in the light of the recent cases, discussed in part IV.B.1, supra, holding that the Corps may not retroactively apply its permit requirements when to do so would be manifestly unfair. In any event, for reasons not apparent to us, Orleans has chosen not to raise this argument. Rather, it has argued that section 322.4(g) exempted only the repair of structures which were completed prior to the Corps' assertion of jurisdiction. This argument is clearly based on a misreading of the plain words of the regulation. The regulation plainly exempts the structure itself, in this case, the dam across the Drill Hole Canal. Neither Orleans' argument nor our own reading of the regulation convinces us that the Corps acted arbitrarily or capriciously in applying section 322.4(g) to this situation.
The RHA is codified at 33 U.S.C. § 401, et seq
Under the CWA, "pollutants" include "dredged spoil, solid waste, incinerator residue, sewage, garbage, sewage, sludge, munitions, chemical wastes, biological materials, radioactive materials, heat, wrecked or discarded equipment, rock, sand, cellar dirt and industrial, municipal, and agricultural waste discharged into water." 33 U.S.C. § 1362(6) (1978)
The procedure by which the Corps determines whether to issue a permit under section 404 is described in Creppel v. U.S. Army Corps of Engineers, 670 F.2d 564, 569 (5th Cir. 1982)
Normally, this court's review of decisions such as those challenged in this lawsuit is limited to whether they are "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law." Administrative Procedure Act, 5 U.S.C. § 706(2) (A), (B), (C), (D). See Avoyelles Sportsmen's League, Inc. v. Marsh, 715 F.2d 897, 904-05 (5th Cir. 1983)
This regulation was superseded in 1982. See 47 Fed.Reg. 31,800 (1982). Section 323.4-3(a) (5) allowed the "repair, rehabilitation or replacement" of any "currently serviceable fill discharged prior to the requirement for authorization" providing that the work did not result in a deviation from the specifications of the original fill. Additionally, the repair or replacement was required to satisfy seven conditions set forth in 33 C.F.R. Sec. 323.4-3(b), relating to the safety of the discharge to the environment
Orleans has also argued that the drainage of water from the C.I.T. tract is prohibited by section 404(f) (2) of the CWA, which provides:
Orleans contends that the drainage is prohibited under this section because it is incidental to an activity which is intended to bring about the conversion of a wetland, the C.I.T. swamp, into a non-wetland area which can then be developed into a residential area without governmental approval. Although we are fully aware of this possibility, as is the Corps, we cannot require the Corps to exercise a jurisdiction that it does not possess. Section 404(f) (2) applies only when dredged or fill material has been discharged, and water is simply not dredged or fill material. Orleans' bald assertion that vegetation from the tract (which, it argues, constitutes a pollutant) is also being removed through the culverts is not supported by the record.
Although the Supreme Court held, in California v. Sierra Club, 451 U.S. 287, 101 S. Ct. 1775, 68 L. Ed. 2d 101 (1981), that the RHA does not provide a private cause of action for enforcement of its provisions, a federal court may review agency actions alleged to be in violation of the RHA under the provisions of the APA. Jurisdiction is based on 28 U.S.C. § 1331. See Chrysler Corp. v. Brown, 441 U.S. 281, 99 S. Ct. 1705, 60 L. Ed. 2d 208 (1979); Glacier Park Foundation v. Watt, 663 F.2d 882, 885 (9th Cir. 1982)