Natural Resources Defense Council v. Houston

146 F.3d 1118, 28 Envtl. L. Rep. (Envtl. Law Inst.) 21368, 98 Cal. Daily Op. Serv. 4866, 98 Daily Journal DAR 6872, 46 ERC (BNA) 1865, 1998 U.S. App. LEXIS 13463
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 24, 1998
DocketNos. 97-16030, 97-16041, 97-16042 to 97-16045 and 97-16173
StatusPublished
Cited by34 cases

This text of 146 F.3d 1118 (Natural Resources Defense Council v. Houston) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Natural Resources Defense Council v. Houston, 146 F.3d 1118, 28 Envtl. L. Rep. (Envtl. Law Inst.) 21368, 98 Cal. Daily Op. Serv. 4866, 98 Daily Journal DAR 6872, 46 ERC (BNA) 1865, 1998 U.S. App. LEXIS 13463 (9th Cir. 1998).

Opinion

TASHIMA, Circuit Judge:

Various irrigation and water districts (Non-federal Defendants), that rely on water from the Friant dam, appeal the district court’s summary judgment decision that the Bureau of Reclamation (Bureau or Federal Defendant), violated the Endangered Species Act (ESA) by renewing water contracts prior to completing required endangered species consultations. These defendants also appeal the district court’s conclusion that Section 8 of the Reclamation Act, 43 U.S.C. § 383, mandates compliance with Section 5937 of the California Fish and Game Code. Various environmental groups led by the National Resources Defense Council (Plaintiffs), cross-appeal the district court’s summary judgment decision that the Bureau was not required to comply with National Environmental Policy Act (NEPA) and appeal the dismissal of the Section 8/Section 5937 claim as unripe.

We affirm the district court’s holding that the ESA was violated and its decision to rescind the contracts at issue. We remand for a determination on the Section 8/Section 5937 claim.

BACKGROUND

The Central Valley Project (CVP) is a multi-unit reclamation project administered by the Bureau. The Friant dam unit of the CVP was built on the San Joaquin River by the Bureau in the 1940s. Prior to construction of the dam, the San Joaquin River met the Sacramento River at the Sacramento-San Joaquin Delta, where they then flowed out to the Pacific Ocean. Since the time that the dam was completed, the Friant unit has impounded the San Joaquin River water behind the Friant dam and diverted the water to surrounding irrigation districts. This im-poundment and diversion leaves a dry stretch of San Joaquin riverbed.

In the late 1940s, the Non-federal Defendants1 entered into 40-year Friant water service contracts with the government, pursuant to Section 9(e) of the Reclamation Act of 1939, 43 U.S.C. § 485h(e). The contracts typically provided that they would be renewed no later than one year prior to expiration on terms that “shall be agreed upon.” In 1956, Congress mandated that contract holders had a right to renewal “under stated terms and conditions mutually agreeable to the parties.” 43 U.S.C. § 485h-l(l). Contract holders had “a first right ... to a stated share or quantity of the project’s available water supply_” 43 U.S.C. § 485h-l(4).

The first of these contracts, the contract with the Orange Cove Irrigation District (Orange Cove), expired in February of 1989. The Bureau began contract renewal negotiations with Orange Cove in June, 1988, and executed a renewal contract in May, 1989. By 1992, the Bureau had executed 13 additional water contracts. All 14 contracts pro[1124]*1124vided for water delivery for a 40-year period under terms substantially similar to those in the previous contracts.

In 1992, Congress enacted the Central Valley Project Improvement Act (CVPIA), Pub.L. No. 102-575, § 3401 et seq., 1992 U.S.C.C.A.N. (106 Stat.) 4600, 4706, which required the government to perform an environmental impact statement (EIS) on the Friant unit before it could execute the remaining renewal contracts. The CVPIA also limited the length of subsequently renewed contracts to 25 years. Therefore, of the 28 Friant water service contracts that were up for renewal, only the first 14 contracts are at issue.

Prior to construction of the Friant dam, the San Joaquin River supported a variety of fish species, including the chinook salmon. The annual spring floods also fed the surrounding wetlands with fresh water. After the Friant dam was built, the San Joaquin River terminated at the dam, and water from the Sacramento-San Joaquin Delta is exported upstream to water users below the dam through a process of pumping and reverse flows. This situation has adversely affected both wetlands and river fish, including the winter-run chinook salmon. The salmon, which was listed as threatened in August, 1989, and is now endangered, is under the protective jurisdiction of the National Marine Fisheries Service (NMFS). Other listed species under the jurisdiction of the Fish and Wildlife Service (FWS) are also located in the Friant Service Area.

The Plaintiffs filed this action against the Bureau in December, 1988, claiming that the Bureau violated NEPA by renewing the water contracts without first performing an EIS. fhe Plaintiffs sought a preliminary injunction against further contracts. The district court denied the injunction, but ordered the parties to include in the remaining contracts a clause that conditioned the terms on the final outcome of this case. All the renewal contracts in this case, except for the Orange Cove contract, contain this provision. The contracts also include a clause, entitled “Compliance with Reclamation Laws,” which permits minor modifications to the contracts in order to comply with federal law. This clause is known as Article 14.

The Plaintiffs’ amended complaint also alleges violations of the ESA, section 8 of the Reclamation Act (§ 8), and section 5937 of the California Fish & Game Code (§ 5937). The Non-federal Defendants were permitted to intervene in 1989.

There are five district court orders that are now at issue:

(1) Order filed April 30,1992. The district court denied the Defendants’ motion to dismiss the § 8/§ 5937 claim. See 791 F.Supp. 1425 (E.D.Cal.1992).
(2) Order filed October 12, 1993. The district court denied the Defendants’ motion to dismiss the § 8/§ 5937 claim as mooted or preempted by the CVPIA.
(3) Order filed May 31, 1995. The district court granted the Defendants summary judgment on the NEPA claim, but granted the Plaintiffs summary judgment on the ESA claim.
(4) Order filed January 16,1997. The district court ordered the 14 contracts rescinded. The court concluded that the § 8/§ 5937 claim was not ripe.
(5) Order filed April 16,1997. The district court amended the January 16, 1997, judgment and dismissed the Plaintiffs’ substantive ESA claim without prejudice.

The Non-federal Defendants argue that: (1) the ESA did not apply to their contracts; (2) but if it did, the ESA was not violated; (3) but if the ESA was violated, the claim is moot; (4) but if there was an ESA violation that was not mooted, the remedy of contract invalidation was inappropriate. The Non-federal Defendants also argue that the CVPIA preempts § 5937. The Plaintiffs cross-appeal the grant of summary judgment to the Defendants on the NEPA claim and they appeal the court’s conclusion that the § 8/ § 5937 claim was not ripe. The Bureau is participating in the Plaintiffs’ cross-appeal only.2

[1125]*1125DISCUSSION

I. Endangered Species Act

A. Overview

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146 F.3d 1118, 28 Envtl. L. Rep. (Envtl. Law Inst.) 21368, 98 Cal. Daily Op. Serv. 4866, 98 Daily Journal DAR 6872, 46 ERC (BNA) 1865, 1998 U.S. App. LEXIS 13463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/natural-resources-defense-council-v-houston-ca9-1998.