Hayes Oyster Co. v. Dept. of Agriculture

Court of Appeals of Oregon·Decided June 12, 2024·No. A177893·Published

Opinion

No. 390 June 12, 2024 133

IN THE COURT OF APPEALS OF THE STATE OF OREGON

HAYES OYSTER COMPANY,

Plaintiff-Appellant,

v.

OREGON DEPARTMENT OF AGRICULTURE and Alexis M. Taylor,

in her official capacity as Director, Defendants-Respondents.

Tillamook County Circuit Court 19CV41007; A177893

Mari Garric Trevino, Judge. Argued and submitted January 30, 2023. Thomas R. Benke argued the cause and filed the briefs for appellant.

Jona J. Maukonen, Assistant Attorney General, argued the cause for respondents. Also on the brief were Ellen F. Rosenblum, Attorney General, and Benjamin Gutman, Solicitor General.

Before Ortega, Presiding Judge, and Powers, Judge, and Hellman, Judge.

ORTEGA, P. J. Reversed and remanded on ORS 183.490 claim; otherwise affirmed.

134 Hayes Oyster Co. v. Dept. of Agriculture

Cite as 333 Or App 133 (2024) 135

ORTEGA, P. J. Hayes Oyster Company (Hayes) filed a petition in the circuit court under ORS 183.484 for review of an order from the Oregon Department of Agriculture that denied Hayes’s petition for the promulgation of a rule, ORS 183.390, to implement a total maximum daily load established for the Tillamook Bay Watershed. The circuit court dismissed that claim because the order was not a “final order,” under ORS 183.310(6)(b). However, the court permitted Hayes to file an amended petition. Hayes then sought relief pursuant to the Uniform Declaratory Judgments Act (UDJA) and ORS 183.490. The circuit court dismissed the UDJA claim for lack of subject matter jurisdiction and dismissed the ORS 183.490 claim for failure to state a claim. On Hayes’s appeal from the general judgment of dismissal, we conclude that the circuit court lacked subject matter jurisdiction over the original petition under ORS 183.484, because the department’s order was not a “final order.” We also conclude that the circuit court lacked subject matter jurisdiction of Hayes’s UDJA claim because the Administrative Procedures Act (APA) provided the sole and exclusive means for judicial review of Hayes’s claim. However, we conclude that the circuit court erred in dismissing Hayes’s ORS 183.490 claim. We conclude that Hayes’s petition stated a claim that the department has unlawfully failed to promulgate as a rule a plan specific to the Tillamook Bay Watershed that implements the total maximum daily load for fecal coliform. Thus, we reverse and remand that claim for further proceedings.

I. BACKGROUND

At the center of this appeal is a total maximum daily load (TMDL) for fecal coliform that the Oregon Department of Environmental Quality (DEQ) issued for the Tillamook Bay Watershed in 2001. “A TMDL is the calculation of the maximum amount of a pollutant allowed to enter a waterbody so that the waterbody will meet and continue to meet water quality standards for particular pollutants.”1 Hayes 1 As explained in Hayes I, 316 Or App at 187-88:

“TMDLs, such as the Tillamook Bay Watershed TMDL, are a part of a multistep process required by the Clean Water Act to develop ‘comprehensive programs for preventing, reducing, or eliminating the pollution of’ the 136 Hayes Oyster Co. v. Dept. of Agriculture

Oyster Co. v. DEQ, 316 Or App 186, 187, 504 P3d 15 (2021), rev den, 369 Or 507 (2022) (Hayes I). As alleged in the petition in this case, the Tillamook Bay Watershed TMDL established that the amount of fecal coliform that can enter a waterbody for “[f]arm buildings and pastures that have had manure applied to them” is zero (the zero Load Allocation). The designated management agency for the Tillamook Bay Watershed TMDL is the Oregon Department of Agriculture (the department).

In 2019, Hayes filed a “Petition to Promulgate Rule”

with the department under ORS 183.390, which allows “[a]n interested person [to] petition an agency requesting the promulgation, amendment or repeal of a rule.” ORS 183.390(1). Hayes specifically requested the department “to promulgate an Agricultural Water Quality Management Area Plan * * * to implement the zero Load Allocation established in the 2001 Tillamook Bay Watershed TMDL for ‘Farm buildings and pastures that have had manure applied to them.’ ” Hayes also supplied text for proposed rules.

In response, the department issued a written “Order Denying Petition to Adopt Rules” (the denial order). In the denial order, the department stated that it had adopted the North Coast Basin Agricultural Water Quality Management Area Plan, June 2018 (North Coast Basin plan), which “covers the North Coast and includes the Tillamook Bay watershed .” The department also stated that it had adopted rules in July 2000 that implement the “non-voluntary components ” of that plan, OAR 603-095-0800 to 603-095-0860. The department then stated that, because rules like what

state’s navigable waters. 33 USC § 1252; see also OAR 340-042-0025 (policy and purposes of TMDLs). The goal of a TMDL is to achieve previously established ‘water quality standards’ (WQS), which the state has set to identify the desired uses for a waterbody and the amount of pollution that would impair those uses. 33 USC § 1313(a) to (c); 40 CFR § 130.3; ORS 468B.048. As noted, a TMDL identifies the amount of pollution, or load, a waterbody can have without exceeding the WQS. A TMDL allocates that load for particular pollutants among natural background sources, known as nonpoint sources, of a pollutant (load allocations or LAs) and specific point sources of pollution (wasteload allocations or WLAs)—with a margin of safety taking into account any uncertainty. * * * A TMDL may also include an element known as a Water Quality Management Plan (WQMP), which ‘provides the framework of management strategies to attain and maintain water quality standards.’ OAR 340-042-0040(l); see also 40 CFR § 130.6.”

Cite as 333 Or App 133 (2024) 137

Hayes proposed already exist, it considered whether the petition could be treated as one to amend existing rules and concluded that it could not because it did not meet the requirements for such a petition.

The department then explained its denial decision for the proposed rules. The department concluded that the proposed rules are not needed, because the North Coast Basin plan “implements the 2001 Tillamook Bay Watershed TMDL and addresses the nonpoint source load stemming from agricultural activities” through voluntary best management practices. The department also stated that the rules implement the TMDL by prescribing “standards for landowner responsibility, maintenance of healthy riparian streambanks, access to waterways by livestock, construction and maintenance of irrigation and drainage ditches, tide gate operation, and erosion and sediment control”; by providing for complaints and investigations; and by addressing enforcement and penalties. The department also pointed to the confined animal feeding operation (CAFO) program as implementing the zero Load Allocation of the TMDL, which requires CAFOs to obtain a permit that requires creating and complying with an animal waste management plan. The department concluded that, “[b]ecause the existing North Coast Basin rules already address nutrient loading of surface water ways and more comprehensively address other activities of landowners to prevent nonpoint source pollution th[a]n the rules proposed by petitioner, the Department declines to adopt the proposed rules.” The department also declined “to adopt rules that would impermissibly amend the terms of CAFO permits.”

After the order’s conclusion and signature of the director of the department, the order included the following text:

“NOTICE: This is a final order in other than contested case. Petition for review shall be filed within 60 days following the date the order is served or as otherwise described in ORS 183.484. Date of service shall be the date on which the agency delivered or mailed its order. Jurisdiction for judicial review is conferred upon the Circuit Court for Marion County and upon the circuit court for the county in which petitioner resides or has a principal business office.”

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