Opinion ID: 516043
Heading Depth: 3
Heading Rank: 3

Heading: Toxic Pollutants: NRDC Challenges To The Overall Limitations

Text: 39 We now turn to the difficult issues raised by NRDC's challenge to the toxicity limitations. NRDC first claims that the toxicity limit of 30,000 ppm is not BAT. It stresses that the EPA based that standard upon use of the most toxic of the eight generic drilling muds used by the industry, a mud known as generic mud number one. NRDC argues that the EPA should have provided that drilling muds be barged to shore, or, in the alternative, that a standard of 100,000 ppm should have been adopted. 40 The BAT standard must establish effluent limitations that utilize the latest technology, see Kennecott, 780 F.2d at 448, in order to reach the greatest attainable level of effluent reduction which could be achieved. NRDC, 822 F.2d at 115 n. 12. See also 33 U.S.C. Sec. 1311(b)(2)(A)(i) (1982) (BAT should result in reasonable further progress toward the national goal of eliminating the discharge of all pollutants). 41 The 30,000 ppm limitation in the permit appears to allow operators to use all generic muds except the most toxic drilling mud, see 51 Fed.Reg. at 24906, and seems readily achievable by average drilling procedures. It does not appear to push the industry to achieve greater levels of effluent control, as Congress intended BAT standards to do. See S.Rep. No. 414, 92nd Cong. 1st Sess., 42 (1971), U.S.Code Cong. & Admin.News 1972, pp. 3668, 3708, reprinted in Leg.Hist. at 1460 (Administrator has mandate to press technology and economics to achieve attainable levels of effluent reduction); id. at 51-52, U.S.Code Cong. & Admin.News 1972, p. 3718, reprinted in Leg.Hist. at 1469-70 (effluent limitations may be based on technology not in actual or routine use, so long as such technology will be available at a reasonable time and cost); Weyerhaeuser Co. v. Costle, 590 F.2d 1011, 1025 (D.C.Cir.1978) (Congress's intent was to force each industry on its own to develop the technology necessary to achieve the Act's aspiring goal). 42 At the same time, however, the Act grants EPA some latitude in defining BAT. See Kennecott, 780 F.2d at 448. The 30,000 ppm standard appears to be within the range upheld by the Fifth Circuit in the Alaska permit litigation. See API 787 F.2d at 977-79. 8 The 30,000 ppm limitation does restrict the use of some of the most toxic muds and additives. Here, as we also observed in regard to BAT for produced water, some special latitude is in order because of the agency's interest in coordinating the standards in this permit with evolving national standards. In evaluating the 30,000 ppm limitation independent of the permit's concomitant alternative toxicity limits, we hold in the circumstances of this case that the 30,000 ppm standard is not arbitrary or capricious. 9 43 We therefore turn to the alternative limit provisions. The alternative toxicity limit is a permit provision that allows operators to use mud systems more toxic than the 30,000 ppm toxicity limitation. The permit sets forth the procedure for requesting an alternative toxicity limit, in which the operator is required to submit certain information to the EPA prior to discharging the mud. See 51 Fed.Reg. at 24926 Section C. 44 NRDC argues, compellingly, that having established a 30,000 ppm BAT standard for the toxic pollutants, the agency cannot turn around and authorize discharges at variance from that standard. It points out that the Act expressly provides that the Administrator may not modify any requirement [pertaining to BAT controls on the discharge of toxic pollutants.] 33 U.S.C.A. Sec. 1311(l ) (West Supp.1988). 45 EPA's rejoinder is to the effect that each alternative limitation, in and of itself, amounts to BAT for the particular well involved. Yet BAT is to be established in accordance with technological standards and after consideration of congressionally enumerated factors. See 33 U.S.C. Sec. 1314(b)(2). Although the alternative toxicity test procedure requires operators to submit certain information, see 51 Fed.Reg. 24926, the alternative limit procedure is wholly silent as to what factors the agency is to consider in granting exceptions to the 30,000 ppm limit. Agency discretion is unfettered. We find no discernible standard that limits this discretion and defines when requests for alternative limits should be granted or denied. This is contrary both to the letter and spirit of the Clean Water Act. Section 1311(l ) prohibits the BAT standard from being modified as it applies to toxic pollutants, and the alternative limits appear to modify impermissibly the 30,000 ppm limit at the request of certain operators. In addition, the alternative limits conflict with the Act's goal of uniform standards within an industry. See 33 U.S.C. Sec. 1314(b)(2)(B); Committee on Public Works, 92nd Cong., 1st Sess., Report on S. 2770, reprinted in Leg.Hist. at 162, 172. 46 EPA here also suggests that it lacks sufficient information as to the ability of all wells to meet the 30,000 ppm standards and that this lack of knowledge justifies the exception. Yet EPA's alternative procedure creates a possibility of incalculable toxic discharges more toxic than the 30,000 ppm limit. It is an exception which threatens to swallow the rule. 47 There is similarly no way of ascertaining to what extent this alternative procedure may result in degradation of the ocean environment. Section 403(c) of the Act provides that [i]n any event where insufficient information exists on any proposed discharge [of pollutants] to make a reasonable judgment on any of the guidelines [concerning the degradation of waters, including the effect of disposal of pollutants on human health, marine life, esthetic, recreational, and economic values, as well as other considerations] no permit shall be issued. See 33 U.S.C. Sec. 1343(c)(2) (1982). Thus, the Act requires ocean polluters who receive a permit to satisfy both the technological requirements of the effluent limitations and also the ocean degradation criteria of section 403. See Pacific Legal Found. v. Quarles, 440 F.Supp. 316, 326 (C.D.Cal.1977), aff'd sub nom., Kilroy v. Quarles, 614 F.2d 225 (9th Cir.1980), cert. denied, 449 U.S. 825, 101 S.Ct. 88, 66 L.Ed.2d 29 (1980). See also 33 U.S.C.A. Sec. 1342(a)(1) (permit may be issued only upon condition that the discharge of pollutants will meet all applicable requirements, including section 403(c) of the Act). EPA has issued regulations implementing section 403(c) of the Act. See 40 C.F.R. Sec. 125 Subpart M (1987). These provisions prohibit the discharge of pollutants into the marine environment if EPA has insufficient information regarding ocean degradation, unless EPA makes certain detailed determinations. See id. The alternative limitation authorizing EPA to grant exceptions to the 30,000 ppm standard without apparent regard to the degradation of the marine environment does not comply with these statutes or regulations. For all of these reasons, we hold that the alternative limitations are arbitrary, capricious and contrary to law. 10