El Dorado Chemical Co. v. United States Environmental Protection Agency

960 F. Supp. 2d 838, 2013 WL 1196955, 2013 U.S. Dist. LEXIS 42591
CourtDistrict Court, W.D. Arkansas
DecidedMarch 25, 2013
DocketCase No. 1:11-CV-1059
StatusPublished

This text of 960 F. Supp. 2d 838 (El Dorado Chemical Co. v. United States Environmental Protection Agency) is published on Counsel Stack Legal Research, covering District Court, W.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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El Dorado Chemical Co. v. United States Environmental Protection Agency, 960 F. Supp. 2d 838, 2013 WL 1196955, 2013 U.S. Dist. LEXIS 42591 (W.D. Ark. 2013).

Opinion

ORDER

SUSAN O. HICKEY, District Judge.

Before the Court are the parties’ cross motions for summary judgment. (ECF No’s 21 & 40). Both parties ask the Court to grant judgment as matter of law upon review of an administrative decision by the United States Environmental Protection Agency (“EPA”). Each party has responded to the other’s motion, and each has filed a reply. (ECF No’s 38, 42, 46, & 49). The matter is ripe for the Court’s consideration. Because this case concerns EPA action within its own sphere of expertise, and its decision is supportable on a rational basis, the Court grants summary judgment in Defendants’ favor.

BACKGROUND

This action involves a complex water dispute between a chemical company and EPA. In 2006, El Dorado Chemical Company (“EDCC”) submitted a proposal to EPA to make certain changes to Arkansas’ water quality standards. EPA denied that proposal, which left EDCC in violation of the existing standards. EDCC now seeks review of that decision under the Administrative Procedures Act asking the Court to declare EPA’s decision arbitrary, capricious, and inconsistent with the law. EDCC asserts that EPA’s decision was unprecedented. EPA, however, contends that a rational connection exists between the facts in the administrative record and its final determination and that its decision is entitled to deference.

[841]*841EDCC operates a chemical manufacturing facility in El Dorado, Arkansas, where it discharges certain levels of dissolved minerals into two particular unnamed tributaries (“UTA” and “UTB”) that reach two downstream bodies of water named Flat Creek and Haynes Creek. These dissolved mineral discharges are subject to Arkansas’s water quality standards, which are developed by the Arkansas Department of Environmental Quality (“ADEQ”), adopted by the Arkansas Pollution Control and Ecology Commission (“APC & EC”), and ultimately approved by EPA. EPA acts as an enforcement agency to ensure that these standards are consistent with the Clean Water Act. Arkansas’s water quality standards are enforced through a permitting program called the National Pollution Discharge Elimination System (“NPDES”).

In June 2004, EDCC renewed its NPDES permit. The renewed permit, however, contained new, more stringent limits on EDCC’s discharges of dissolved minerals. The permit provided for a three year compliance period, requiring compliance with the new limits by June 1, 2007. Unfortunately, EDCC has been unable to comply.

In November 2006, EDCC initiated a Third Party Rulemaking (the “Rulemaking”) pursuant to the ADEQ’s Continuing Planning Process1 and Administrative Guidance Document in an effort to revise the dissolved minerals water quality criteriá for UTA, UTB, and the downstream reaches of Flat Creek and Haynes Creek. In January 2008, after reviewing the Rule-making, EPA notified EDCC that it was unable to take action because EDCC’s proposal failed to “provide adequate supporting documentation to demonstrate that the revised site specific criteria are appropriately protective.”2 In essence, EPA’s initial response to EDCC’s proposal was a request for more documentation showing that the revised water quality standards would adequately protect the designated uses of UTA, UTB, and Flat and Haynes Creeks.

Meanwhile, in June 2007, the designated compliance period set forth in EDCC’s renewed NPDES permit expired. So, in June 2008, the ADEQ and EPA entered into a Consent Administrative Order to resolve EDCC’s permit violations by setting interim limits for dissolved mineral discharges. The interim limits were to expire upon approval of EDCC’s proposed Rulemaking, or December 31, 2009, whichever occurred first.

In August 2008, EDCC, through the ADEQ, provided EPA with additional documentation. According to EDCC, the initial and additional documentation together was substantially more comprehensive than what EPA had accepted and approved in prior third party rulemakings, such as in EPA’s Record of Decision for In re Bayou Meto Water Management District, APC & EC Docket No. 07-004-R.3 [842]*842Nevertheless, in April 2009, EPA maintained that it was still unable to approve EDCC’s Rulemaking for similar reasons stated in its January 2008 notice — it needed more documentation showing that the revised criteria would be adequately protective.4

Thereafter, the parties met on multiple occasions via telephone conference to identify additional documentation and testing and to develop a work plan that would provide the additional information that EPA needed. In September 2009, EDCC completed the work plan and supplemented its results to the ADEQ and EPA. In April 2010, EPA provided its comments on EDCC’s supplemental information.

EPA found that the updated information provided more detail supporting the fact that discharges by EDCC may not affect aquatic life — a relevant designated use — of UTA and UTB.5 However, EPA expressed concern for certain aquatic life impacts that EDCC’s proposal would have on the downstream reaches of Flat Creek and Haynes Creek. Accordingly, EPA suggested certain steps that EDCC might take to eliminate that concern. For example, EPA suggested that EDCC could request that Arkansas perform a Use Attainability Analysis, which could result in a change to the designated use of the impacted bodies of water. Because EDCC believed those steps were not feasible, or otherwise out of its control, it took a different approach. Instead, EDCC requested that the Rulemaking be reopened, and it abandoned the part of the Rulemaking related to Flat Creek and Haynes Creek. It rescinded that portion of its proposal and limited the request to a revised water quality criterion for UTA and UTB only. EDCC apparently hoped this would compel approval since EPA had already suggested that EDCC’s discharges may not impact aquatic life in UTA and UTB. EDCC was mistaken.

After EDCC resubmitted a revised Rulemaking, following the appropriate Continuing Planning Process (“CPP”) and Administrative Guidance Document (“AGD”) procedures for a second time, EPA again balked at the Rulemaking’s potential downstream impacts on Flat Creek and Haynes Creek. On August 31, 2011, EPA issued its final decision declining to approve EDCC’s Rulemaking. EPA stated several specific reasons for its decision in a Technical Support Document 6 including the following:

• EPA concluded that the revised criteria were not shown to be protective of either instream (UTA and UTB) or downstream (Flat and Haynes Creeks) designated uses, citing a lack of documentation showing that the revised criteria are protective of aquatic life and evidence of sub-lethal effects to reproduction in downstream waterbodies;'
• EPA concluded that the revised criteria may not provide for the attainment of the downstream minerals water quality criteria, noting that EDCC did not consider the downstream criteria in Flat and Haynes Creeks when calculating the revised criteria for UTA and UTB.
• EPA concluded that the mass-balance equation used to derive the criteria is scientifically indefensible and failed to take into account important information.
• EPA concluded that the weight of supporting evidence relied on by EDCC was flawed because it omitted [843]

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960 F. Supp. 2d 838, 2013 WL 1196955, 2013 U.S. Dist. LEXIS 42591, Counsel Stack Legal Research, https://law.counselstack.com/opinion/el-dorado-chemical-co-v-united-states-environmental-protection-agency-arwd-2013.