Association of Washington Business v. U.S. Environmental Protection Agency

District Court, District of Columbia·Decided June 28, 2024·No. Civil Action No. 2023-3605·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

ASSOCIATION OF WASHINGTON BUSINESS, et al.,

Plaintiffs,

v. No. 23-cv-3605 (DLF)

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, et al.,

Defendants.

MEMORANDUM OPINION

In 2022, the Environmental Protection Agency promulgated a rule imposing federal water-quality standards on the State of Washington. A cohort of Washington business associations sued to challenge the Agency’s action under the Administrative Procedure Act and the Clean Water Act. After the plaintiffs filed suit, the Agency moved to transfer this case to the U.S. District Court for the Western District of Washington. In addition, the State of Washington and a handful of federally recognized tribes moved to intervene as defendants. For the reasons that follow, the Court will deny the Agency’s motion to transfer and grant the various motions to intervene. I. BACKGROUND A. Factual Background The Clean Water Act “anticipates a partnership between the States and the Federal Government, animated by a shared objective: ‘to restore and maintain the chemical, physical, and biological integrity of the Nation’s waters.’” Arkansas v. Oklahoma, 503 U.S. 91, 101 (1992) (quoting 33 U.S.C. § 1251(a)). To further this “program of cooperative federalism,” New

York v. United States, 505 U.S. 144, 167 (1992) (cleaned up), the Act requires states “from time to time []but at least once each three year period” to develop “applicable water quality standards,” including “criteria” designed to protect designated “uses” for a state’s water, 33 U.S.C. § 1313(c)(1)–(c)(2). The Environmental Protection Agency publishes “criteria for water quality accurately reflecting the latest scientific knowledge” to aid states in developing these standards. Id. § 1314(a)(1). Among such criteria are so-called “human health criteria,” governing the levels of “chemicals or conditions in a water body that are not expected to cause adverse effects to human health.” Compl. ¶ 30, Dkt. 1; see 40 C.F.R. § 131.11(a)(1).

After a state has revised or adopted a new water-quality standard, the standard “shall be made available to the Administrator” of the Environmental Protection Agency for approval. 33 U.S.C. § 1313(c)(1). If the Administrator “determines” that a state’s water-quality standard “meets the requirements of” the Act, the state’s “standard shall thereafter be the water quality standard for the applicable waters of that State.” See id. § 1313(c)(3). If the Administrator “determines” that a state’s water-quality standard “is not consistent with the applicable requirements of” the Act, however, the Administrator shall “notify the State and specify the changes to meet such requirements.” Id. If the state does not adopt those changes within an allotted period of time, “the Administrator shall promulgate such [water-quality] standard[s]” for the state, imposing a federal standard. Id.

Relevant here are the State of Washington’s water-quality standards for polychlorinated biphenyls (“PCBs”), which are “a group of man-made organic chemicals consisting of carbon, hydrogen and chlorine atoms.” Learn About Polychlorinated Biphenyls, Env’t Prot. Agency, https://www.epa.gov/pcbs/learn-about-polychlorinated-biphenyls. [https://perma.cc/6ER4-4JHP].

Although Congress outlawed PCBs, they “may still be present in products and materials . . . that were produced before the 1979 PCB ban.” Compl. ¶ 35.

In 2016, Washington proposed approximately 188 new human-health criteria. See id.

¶ 49. The Agency then approved 45 of Washington’s proposed criteria but disapproved 143; one of the criteria the Agency rejected was Washington’s PCB criteria, arguing that it was “insufficiently protective.” Id. ¶ 50; see Revision of Certain Federal Water Quality Criteria Applicable to Washington, 81 Fed. Reg. 85417, 85419 (Nov. 28, 2016). In relevant part, the Agency reasoned that “more highly exposed subgroups,” such as “subsistence fishers,” required more thorough protection from PCBs. Compl. ¶ 51 (cleaned up). The Agency was particularly concerned with “cover[ed] areas where tribes have treaty-reserved rights to practice subsistence fishing.” 81 Fed. Reg. at 85424–25. The Agency in turn promulgated federal human health criteria to supplant Washington’s disapproved criteria. See 81 Fed. Reg. at 85419.

But in 2019, the Agency reversed course, “determining that its partial disapproval had improperly infringed on Washington’s authority under the [Clean Water Act] to make its own risk-management decisions based in sound science.” Compl. ¶ 56. More specifically, the Agency determined that Washington’s proposed PCB standard was “based on sound science” and “protective of Washington’s designated uses.” Withdrawal of Certain Federal Water Quality Criteria Applicable to Washington, 85 Fed. Reg. 28494, 28496 (May 13, 2020). The Agency also reasoned that it was “improper and unnecessary” to “harmonize” tribal-treaty rights with the Clean Water Act. See Letter from Chris Hladick, Reg’l Adm’r, United States Env’t Prot. Agency Region 10 to Maia Bellon, Dir., Wash. Dep’t of Ecology at 22–24 (May 10, 2019), https://www.epa.gov/sites/default/files/2019-05/documents/wawqsletter_td_dated_may_2019 .pdf [https://perma.cc/HBL4-65BM]. On May 13, 2020, the Agency promulgated a final rule

approving Washington’s proposed human-health criteria and withdrawing the corresponding 2016 federal standard. See 85 Fed. Reg. at 28494.

In 2022, however, the Agency doubled back and proposed the reimposition of federal water-quality standards “for Washington waters” resembling those in the 2016 rule. See Restoring Protective Human Health Criteria in Washington, 87 Fed. Reg. 19046, 19051 (Nov. 18, 2022). The Agency reasoned that Washington’s human-health criteria had to consider “tribal members exercising their legal right to harvest and consume fish and shellfish at subsistence levels” as a “target general population” and reiterated the “same rationale” as in 2016. Id. at 19054–55.

B. Procedural Background A group of business associations—the Association of Washington Business, Northwest Pulp & Paper Association, American Forest & Paper Association, Greater Spokane, Inc., Food Northwest—brought this action against the Environmental Protection Agency and Administrator Michael Regan (together, the “Agency”) to challenge the 2022 rule under the Administrative Procedure Act and Clean Water Act. See Compl. ¶¶ 17–21, 66–135. The plaintiffs argue, among other things, that the Agency reversed policy without justification and erroneously relied on tribal treaty rights. See, e.g., id. ¶¶ 76–91. As relief, they seek vacatur of the 2022 rule. See id. at 39.

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