City of Fernley v. United States Bureau of Reclamation

District Court, D. Nevada·Decided January 22, 2025·No. 3:21-cv-00119·Unknown

Opinion

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CITY OF FERNLEY, Case No. 3:21-cv-00119-MMD-CLB

Plaintiff, ORDER v. ERNEST A. CONANT, et al., Defendants. Plaintiff the City of Fernley sued Defendants Ernest A. Conant, Regional Director of the U.S. Bureau of Reclamation and Commissioner United States Bureau of Reclamation, over Defendants’ approval of a plan to repair the Truckee Canal by partially lining it (the “Project”), which will effectively reduce groundwater available to Fernley and its residents because the canal will stop leaking1 as much as it has since 1905. (ECF No. 1.) The Court permitted landowners and water rights holders David F. Stix, Jr., and Deena E. Edmonston (collectively, “Intervenors”) to intervene (ECF No. 15), and they filed a complaint-in-intervention (ECF No. 9). The Court also permitted the Pyramid Lake Paiute Tribe (“Tribe”) to intervene as a Defendant. (ECF No. 29.) Before the Court are the parties’ cross-motions for summary judgment. (ECF Nos. 110, 111, 115.)2 As further explained 1The parties have different ways of describing this leakage. In this order, the Court uses the terms leak or leaking, canal seepage, and artificial recharge interchangeably. The point is that there is no dispute that some surface water running through the Truckee Canal mixes into the surrounding aquifers because the Truckee Canal is an “unlined, open earthen ditch.” (ECF No. 1 at 3 (¶18).) All these terms describe the water that leaks into the ground from the Truckee Canal.

2The Court also reviewed the corresponding responses and replies. (ECF Nos. 115, 117, 118, 121, 122, 123.) The Pyramid Lake Paiute Tribe joined Defendants’ filings. (ECF Nos. 116, 124.) The Court initially set a hearing but after more thoroughly reviewing the briefs in preparation for the hearing, the Court determined a hearing was though it rejects Defendants’ threshold challenges—it finds Defendants’ Final Environmental Impact Statement (“FEIS”) and Record of Decision (“ROD”) both reasonable and adequate considering Plaintiffs’ merits challenges. The Court begins by describing the undisputed facts most pertinent to the Court’s resolution of the pending motions, and then describes the pertinent procedural history of this case. A. Factual Background The Court begins by incorporating by reference the factual background provided in its prior order (since partially vacated to reflect that Plaintiffs were able to file amended complaints) because that factual background remains broadly accurate. (ECF No. 66 at 2-5.) Adding to that factual background, the Truckee Canal breached in 2008 and flooded homes in Fernley, Nevada. (AR 000056.)3 This prompted Defendants to undertake numerous studies to find out what caused the breach and how to prevent future breaches. (AR 000163.) Defendants concluded from these studies that the breach likely resulted, “from internal erosion created by animal burrows in the Canal embankment, combined with a rapid increase in flow stage levels to capture storm floodwaters from the Truckee River.” (Id.) Defendants set out to repair the canal while reducing the risk of a similar breach caused by insufficiently strong embankments. (Id.; see also AR 000067.) In 2017, Defendants tested using sheet pile walls to line the canal, but the tests failed because it was too difficult to drive the sheet pile into the soil in the area. (AR 000083.) In 2019, Defendants released the Truckee Canal Engineering and Economic Feasibility Design Study for public review, concluding that an alternative substantially like the alternative they ultimately selected was the best approach. (AR 001467-68.)

3Citations in this style are to the continuously paginated Administrative Record (“AR”) manually filed with the Court. (ECF No. 55 (noticing manual filing of the AR).) Defendants included discussion of various alternatives they had considered, but decided not to move forward with. (AR 001148-52.) Among other things, the draft EIS also stated that some prevention of the artificial recharge of groundwater would be an indirect adverse effect of all the alternatives Defendants were considering, including the preferred alternative and the no action alternative. (AR 001166.) Defendants published the FEIS in September 2020. (AR000046-000575.) In December 2020, Defendants issued the ROD explaining why they chose Alternative 5, which involves lining some sections of the canal to reduce flood risk but leaving some unlined to allow for some artificial recharge. (AR 000006.) Plaintiff filed this case challenging the ROD in March 2021. (ECF No. 1.) B. Procedural History The Court dismissed the original versions of Plaintiffs’4 complaints with prejudice in December 2021 (ECF No. 66) and then denied Fernley’s motion to alter or amend that order to permit them to file an amended complaint (ECF No. 79). The United States Court of Appeals for the Ninth Circuit affirmed several of the Court’s decisions but reversed the Court’s decision not to grant Plaintiffs leave to amend and remanded for further proceedings. (ECF No. 87.) Plaintiffs subsequently filed amended complaints. (ECF Nos. 90, 91.) Both amended complaints allege a single claim for violation of the National Environmental Policy Act, 42 U.S.C. § 4321, et seq. (“NEPA”) via the Administrative Procedure Act, 5 U.S.C. § 500, et seq. (“APA”). Defendants did not move to dismiss these amended complaints. Instead, after settlement negotiations failed (ECF Nos. 94, 95, 96, 97, 98, 99, 100, 101, 103, 104, 105, 106, 107), the parties filed the pending cross-motions for summary judgment (ECF Nos. 110, 111, 115). /// ///

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City of Fernley v. United States Bureau of Reclamation, (D. Nev. 2025).

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