Puget Soundkeeper Alliance v. APM Terminals Tacoma LLC

District Court, W.D. Washington·Decided November 17, 2020·No. 3:17-cv-05016·Unknown

Opinion

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5 UNITED STATES DISTRICT COURT 6 WESTERN DISTRICT OF WASHINGTON AT TACOMA 7 PUGET SOUNDKEEPER ALLIANCE, CASE NO. C17-5016 BHS 8 Plaintiff, ORDER GRANTING IN PART 9 v. AND DENYING IN PART PLAINTIFF’S AND 10 APM TERMINALS TACOMA, LLC, et DEFENDANT’S MOTIONS FOR al., SUMMARY JUDGMENT 11 Defendants. 12

13 This matter comes before the Court on Plaintiff Puget Soundkeeper Alliance’s 14 (“Soundkeeper”) motion for partial summary judgment, Dkt. 196, and Defendant Port of 15 Tacoma’s (“Port”) cross-motion for partial summary judgment, Dkt. 210. The Court has 16 considered the pleadings filed in support of and in opposition to the motions and the 17 remainder of the file and hereby grants the motions in part and denies them in part. 18 I. PROCEDURAL HISTORY 19 On January 9, 2017, Soundkeeper filed a complaint against Defendant APM 20 Terminals Tacoma, LLC (“APM” or “APMT”) alleging ongoing violations of APMT’s 21 “National Pollutant Discharge Elimination System (“NPDES”) permit authorizing 22 discharges of pollutants from APMT’s facility to navigable waters.” Dkt. 1, ¶ 1. 1 Soundkeeper alleged that “APMT owns and operates a large marine cargo terminal used 2 for ship unloading and cargo distribution located at or about 1675 Lincoln Ave, Tacoma,

3 WA 98241, and contiguous and/or adjacent properties (the “facility”).” Id., ¶ 12. 4 On November 28, 2017, Soundkeeper filed a second amended complaint adding 5 the Port as a defendant, stating that the Port owns the facility, and that APMT leases the 6 facility. Dkt. 75. 7 On February 8, 2018, the Port moved to dismiss Soundkeeper’s claims on multiple 8 grounds. Dkt. 81. On June 4, 2018, the Court granted in part and denied in part the

9 Port’s motion. Dkt. 107. 10 On June 13, 2018, Soundkeeper filed a third amended complaint adding the Port’s 11 new tenants Defendants SSA Marine, Inc., and SSA Terminals, LLC (collectively 12 “SSA”). Dkt. 109. 13 On January 10, 2019, Soundkeeper filed a motion for partial summary judgment

14 arguing that: (1) the Port is liable for APMT’s violations, (2) the Port is liable for Level 3 15 corrective action requirements that occurred in 2013 and 2015, (3) the Port is liable for 16 failing to monitor discharges from the wharf, (4) the Port’s stormwater pollution 17 prevention plans (“SWPPP”) are inadequate, (5) Soundkeeper has standing to bring its 18 claims, and (6) the Court has subject matter jurisdiction over the alleged violations. Dkt.

19 196. On January 28, 2019, the Port responded and filed a cross-motion for summary 20 judgment dismissing Soundkeeper’s claim in its entirety. Dkt. 210. SSA joined in the 21 Port’s opposition to Soundkeeper’s motion. Dkt. 209. On February 1, 2019, 22 1 Soundkeeper replied. Dkt. 218. On February 19, 2019, Soundkeeper responded. Dkt. 2 229. On February 22, 2019, the Port replied. Dkt. 231.

3 On June 4, 2019, the Court granted Soundkeeper’s motion for leave to amend. 4 Dkt. 253. On June 5, 2019, Soundkeeper filed its Fourth Amended Complaint (“FAC”) 5 dropping APMT and SSA Marine, Inc. as parties and adding SSA Terminals (Tacoma), 6 LLC. Dkt. 254. The Port moved for summary judgment on Soundkeeper’s second claim 7 for relief in the third amended complaint, which is now Soundkeeper’s first claim for 8 relief in the FAC. Compare Dkt. 109, ¶¶ 64–67 with Dkt. 254, ¶¶ 59–63.

9 II. FACTUAL BACKGROUND 10 On May 13, 2014, APMT signed off on its 2013 Industrial Stormwater General 11 Permit (“ISGP”) annual report. Dkt. 34-6. APMT admitted that its copper discharge 12 exceeded the benchmark for all four quarters of the year. Id. at 5. These discharges 13 triggered Level 1, Level 2, and Level 3 corrective actions under its ISGP. Id. APMT’s

14 Level 3 corrective action was as follows: 15 Additional filtration media for total metals removal will be installed in select stormwater conveyance systems located within drainage basins A, 16 B, and C. Treatment media will include a mixture of biochar, gravelly sand, and crushed oyster shells to effectively remove total metals out of the 17 stormwater discharge. Date corrective action was completed: September 30th, 2014. 18 Id. Soundkeeper cites this report and asserts that the Port “acknowledged” this Level 3 19 corrective action, Dkt. 196 at 10, but Soundkeeper fails to specifically identify where the 20 Port acknowledged this report. On June 20, 2014, the Washington Department of 21 Ecology (“Ecology”) conditionally approved APMT’s plan to implement an “innovative 22 1 filtration media mixture.” Dkt. 34-8 at 2. The Port was copied on this letter. Id. at 3 2 (“cc: . . . Anita Fichthorn, Port of Tacoma”).

3 APMT’s annual report for 2015 identifies Level 3 corrective actions for discharges 4 of “TSS”, copper, and zinc that exceeded the permit benchmarks. Dkt. 34-9 at 3, 5, 7. 5 The report identifies two corrective actions: (1) replacing the media filtration bags at the 6 discharge points and (2) a modification of permit coverage form submitted to Ecology 7 with a deadline extension and expected completion date of 9/30/2019. Id. at 3–8. 8 On January 26, 2016, Ecology employees drafted a technical memorandum

9 discussing APMT’s corrective actions and proposed solutions. Ecology stated that the 10 conditionally approved response of filtration media would not be considered an 11 appropriate response given the continued discharge of pollutants that exceeded the 12 benchmarks. Dkt. 34-11. Ecology was considering denying APMT’s proposed response 13 and requiring a different type of treatment system. Id. Ecology stated that it conveyed

14 this to APMT’s representative over the phone the previous day. Id. The report also states 15 that APMT’s representative “mentioned continued problems with their tide-flex valves 16 and working with the Port of Tacoma to get this issue resolved.” Id. Although the Court 17 is unable to locate the letter in the record, it appears that Ecology formally notified 18 APMT of the denial of APMT’s proposed response in early February. See Dkt. 34-13

19 (reference to February 1, 2016 letter from Ecology to APMT). 20 On March 7, 2016, APMT responded to Ecology’s letter and summarized a phone 21 conversation between AMPT and Ecology employees. Id. APMT stated that preparing 22 an engineering report by Ecology’s deadline of March 31, 2016 was not possible because 1 APMT was facing the prospect of losing its only client and possibly terminating its lease 2 with the Port. Id. APMT stated that the Port refused to provide any financial assistance

3 for structural mitigation measures unless APMT extended its lease beyond December 31, 4 2017 and the Port confirmed “that inspection, maintenance, repair and replacement of the 5 Outfall Gates is the [Port’s] responsibility and cost.” Id. at 4. APMT informed Ecology 6 that it had retained a contractor to “jet all stormwater lines and oil/water separators” and, 7 after that was completed, the contractor would install cameras in the lines to compile a 8 video record of the flow in the lines. Id.

9 On March 21, 2016, Ecology completed a site inspection. Ecology employee Paul 10 Stasch (“Stasch”) wrote an inspection report that provides in part as follows: 11 John Diamant [(“Diamant”)] and I met with [APMT employees Gerry Olson (“Olson”)] and Glen Eddy to discuss their Level III Corrective 12 Action. This has been a long outstanding issue with the facility. The original corrective action has not proven reliable in achieving the 13 Benchmark Values. Of all the major facilities in the Tacoma industrial area, this facility has the least robust treatment system installed. 14 The reasons discussed for the delay in implementation of an upgraded system has been the economy and the inability for the Port of 15 Tacoma and AMP Terminal to come to terms on a stable lease agreement.

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