Armco, Inc. v. United States Environmental Protection Agency, Natural Resources Defense Council, Inc., Intervenor

869 F.2d 975, 19 Envtl. L. Rep. (Envtl. Law Inst.) 20769, 29 ERC (BNA) 1250, 1989 U.S. App. LEXIS 2968, 1989 WL 21530
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 15, 1989
Docket88-3070
StatusPublished
Cited by13 cases

This text of 869 F.2d 975 (Armco, Inc. v. United States Environmental Protection Agency, Natural Resources Defense Council, Inc., Intervenor) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Armco, Inc. v. United States Environmental Protection Agency, Natural Resources Defense Council, Inc., Intervenor, 869 F.2d 975, 19 Envtl. L. Rep. (Envtl. Law Inst.) 20769, 29 ERC (BNA) 1250, 1989 U.S. App. LEXIS 2968, 1989 WL 21530 (6th Cir. 1989).

Opinions

WELLFORD, Circuit Judge.

Petitioner Armco, Inc. petitions this court to declare as untimely or arbitrary and capricious an October 30, 1987 letter from United States Environmental Protection Agency (USEPA) objecting to Ohio EPA’s approval of removal credits for the benefit of the City of Middletown, Ohio, and Armco, the industry discharging phenol and ammonia into the waterway at Mid-dletown. EPA and the intervenor, Natural Resources Defense Council, Inc. (NRDC), an environmental entity, contend that the only appropriate relief for Armco is to file a suit in district court compelling USEPA to promulgate regulations, which could result in setting aside the present ban on removal credits for sludge being discharged by Armco and the Middletown POTW. USEPA contends that such an action can be brought only in district court.

The Supreme Court denied certiorari review of the Third Circuit’s decision of Natural Resources Defense Council (NRDC) v. EPA, 790 F.2d 289 (3d Cir.1986), cert. denied, 479 U.S. 1084, 107 S.Ct. 1285, 94 L.Ed.2d 143 (1987). This left in effect the Third Circuit’s April 1986 mandate in NRDC that “EPA cannot, in the absence of the section 405 [sludge] regulations, authorize the issuance of removal credits under section 307(b)(1) [33 U.S.C. § 1317(b)(1)].” 790 F.2d at 314. These regulations have yet to be promulgated by USEPA.

USEPA did not and still does not recognize Ohio EPA’s action approving Middle-town’s removal credit application, but rather claims that Congress had expressly prohibited use of removal credits after August 31, 1987. Armco contends that USEPA’s October 30, 1987 objection to Ohio EPA’s approval was untimely and therefore has no legal effect. In the alternative, Armco contends that USEPA’s objection was arbitrary, capricious, an abuse of discretion, and contrary to law because section 406(e) of the Water Quality Act (WQA) specifically authorized Ohio EPA to approve removal credit applications before August 31, 1987, and divested USEPA of the right to reject such authority. Armco also contends that USEPA’s failure to promulgate sludge regulations by August 31, 1987 precludes USEPA from prohibiting the Ohio EPA from approving removal credits.

The statute involved in this petition for review of USEPA’s action is the Federal Water Pollution Control Act (FWPCA), also cited as The Clean Water Act of 1977, as amended, especially §§ 307(b) and 405, 33 U.S.C. §§ 1317(b) and 1345, and § 406 of the Water Quality Act of 1987, Pub.L. No. 100-4,101 Stat. 7 (1987). The Water Quality Act of 1987 amended FWPCA in certain particulars. Section 406 of the Water Quality Act of 1987 establishes deadlines for USEPA to promulgate comprehensive sludge management regulations and refers to the decision of NRDC v. USEPA, 790 F.2d 289 (3d Cir.1986), which, in turn, addressed the sludge management requirements of § 405(d) of the FWPCA, as amended, 33 U.S.C. § 1345(d). The focus of this appeal is also upon 40 C.F.R. § 403.11 and the provisions of 40 C.F.R. § 403.7, which were amended by USEPA’s November 5, 1987 final rule.

So that the reader may understand the background of the statutes in dispute and appreciate the use of shorthand initials for [978]*978long titles or concepts involved, we set out a brief background of the Federal Removal Credits Program, the primary subject matter of this controversy. For a more detailed discussion, see NRDC v. USEPA, 790 F.2d 289 (3d Cir.1986), and National Ass’n of Metal Finishers v. EPA, 719 F.2d 624 (3d Cir.1983).

FWPCA proscribes generally the discharge of pollutants to waters of the United States unless those discharges comply with the standards specified in the Act. The FWPCA obligates the Administrator of the USEPA to promulgate regulations establishing limits on the types and amounts of pollutants discharged from various industrial, commercial, and public sources of wastewater.

FWPCA calls upon the administrator to establish effluent limitations for “direct dischargers,” which are sources that discharge pollutants directly to waters of the United States. Under § 301 of the FWPCA, as amended, 33 U.S.C. § 1811, the administrator is obligated to establish effluent limitations requiring direct dischar-gers to employ “best practicable control technology” (BPT) by 1977 and “best available demonstrated control technology” (BAT) by 1989. Newly constructed facilities that directly discharge pollutants are obligated to comply with “new source performance standards” established pursuant to § 306 of the FWPCA, as amended, 33 U.S.C. § 1316.

Section 301(b)(1)(B) of FWPCA, 33 U.S.C. § 1311(b)(1)(B), requires that publicly owned treatment works (POTWs) which directly discharge wastewaters meet limitations requiring “secondary treatment” of all wastewaters collected from residential, commercial, and industrial customers. Middletown, Ohio is such a POTW. Direct dischargers, including POTWs, are required to obtain a National Pollutant Discharge Elimination System (NPES) permit in order to directly discharge wastewater to any waters of the United States. Under § 402 of the FWPCA, 33 U.S.C. § 1342, wastewater dischargers must comply with the FWPCA standards.

In addition to requirements imposed upon “direct dischargers,” the FWPCA also requires that an “indirect discharger,” one whose wastes are collected and treated at a POTW rather than directly discharged into waters of the United States, “pre-treat” its wastewaters in order to remove any pollutant (including toxic pollutants) that “interferes with, passes through or otherwise is incompatible with such works.” See § 307(b)(1), FWPCA, as amended, 33 U.S.C. § 1317(b)(1).1

Section 307(b) of FWPCA, 33 U.S.C. § 1317(b), provides for the administrator to establish “pretreatment standards for introduction of pollutants into treatment works ...

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869 F.2d 975, 19 Envtl. L. Rep. (Envtl. Law Inst.) 20769, 29 ERC (BNA) 1250, 1989 U.S. App. LEXIS 2968, 1989 WL 21530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/armco-inc-v-united-states-environmental-protection-agency-natural-ca6-1989.