Rose Acre Farms, Inc. v. North Carolina Department of Environment & Natural Resources

131 F. Supp. 3d 496, 2015 U.S. Dist. LEXIS 99628, 2015 WL 4603950
CourtDistrict Court, E.D. North Carolina
DecidedJuly 30, 2015
DocketNo. 5:14-CV-147-D
StatusPublished
Cited by5 cases

This text of 131 F. Supp. 3d 496 (Rose Acre Farms, Inc. v. North Carolina Department of Environment & Natural Resources) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rose Acre Farms, Inc. v. North Carolina Department of Environment & Natural Resources, 131 F. Supp. 3d 496, 2015 U.S. Dist. LEXIS 99628, 2015 WL 4603950 (E.D.N.C. 2015).

Opinion

, ORDER

JAMES C. DEVER III, Chief Judge.

On March 12, 2014, Rose Acre Farms, Inc. (“Rose Acre” or “plaintiff’), filed an action for declaratory judgment [D.E. 1, 5]. Rose Acre seeks an order declaring that certain discharges of pollutants from its farm are exempt from federal permitting requirements and that defendant North .Carolina Department of Environment an.d Natural Resources (“DENR”) does not have legal authority under the [499]*499federal Clean Water Act to require Rose Acre to obtain a National Pollutant Discharge Elimination System (“NPDES”) permit. See Compl. [D.E. 5] 19-20. On May 14, 2014, three environmental groups moved to intervene on defendants’ behalf (collectively, “defendant-intervenors”) [D.E. 25], On July 8, 2014, the1 court granted the motion to intervene [D.E. 44].

On August 29, 2014, defendant-intervenors moved for judgment on the pleadings [D.E. 50]. On September 2, 2014, defendants moved to dismiss the complaint for lack of subject-matter: jurisdiction [D.E, 53].1 On September 15, 2014, the United States filed an amicus brief in support of defendants’ motion to dismiss and defendant-intervenors’ motion for judgment on the pleadings [D.E. 57]. On October 31, 2014, Rose Acre responded in opposition to both motions [D.E, 63]. On November 13, 2014, Rose Acre moved for summary judgment [D.E. 65]. On December 1, 2014, the court extended defendants’ and defendantintervenors’ deadline to respond to Rose Acre’s motion for summary judgment to 30 days after the court ruled on their pending motions [D.E. 73]. On December 5, 2014, defendants replied to Rose Acre’s response [D.E. 85].'

On January 8, 2015, the court denied defendant-intervenors’ motion for judgment on the pleadings [D.E. 90]. On January 9 and 12,2015, three amici filed briefs in support of Rose Acre’s motion for summary judgment [D.E. 91, 92]. As explained below, the court grants defendants’ motion to dismiss for lack of subject-matter jurisdiction.

I.

Rose Acre owns and operates an egg farm' in Hyde County, North Carolina. Compl. ¶ 1. The Hyde County farm has 3.2 million laying hens in 12 high-rise, enclosed hen houses. Id. ¶32. Each hen house is two stories tall. Id. ¶33. Manure accumulates at the bottom of the hen houses, and is periodically removed and composted.. Id. Large fans ventilate the hen houses, and. this ventilation is necessary for the health of the -hens. Id. ¶ 34. After the eggs are collected and washed, the wash water is “land applied.” Id. ¶ 35. There has never been a discharge of process wastewater from any production area of the farm into United States or North Carolina'waters. Id. ¶ 37.

Pursuant to North Carolina regulations, Rose Acre built a .wet .detention pond to gather precipitation that falls on the ground, around the farm. ■ Id 38. Ventilation systems blow, dust, feathers, and manure out of the hen houses, and precipitation may pick up small amounts of these materials in the area surrounding the hen houses. Id. 8, 38. A few times a year, the detention. pond discharges into a nearby canal. Id ¶ 38.

Defendants have required Rose Acre to obtain and' be subject to an NPDES permit pursuant to the federal Clean Water Act, 33 U.S.C. §§ 1251'et seq: (“CWA”). Id.- 42-43. In 2004, Rose Acre obtained its first five-year NPDES permit. Id ¶¶ 43, 49. In 2009, following the Environmental Protection Agency’s (“EPA”) 2008 promulgation of a new rule (“2008 Rule”), DENR required Rosé Acre to apply for another permit. Id. ¶ 47-49. Rose Acre applied for a new permit, and DENR issued a final permit on September 24, 2010 (“2010 permit”). Id ¶ 50. The 2010 permit required no discharge by Rose Acre and imposed best management practices (“BMPs”). Id. ¶ 52. In December 2010, Rose Acre challenged the 2010 permit in the North Carolina Office of Administrative Hearings [500]*500(“OAH”), arguing that DENR lacked the authority to impose BMPs. Id. ¶ 53.

On March 15, 2011, the United States Court of Appeals for the Fifth Circuit vacated the 2008 Rule in pertinent part. Id. ¶ 54; see Nat’l Pork Producers Council v. EPA, 635 F.3d 738 (5th Cir.2011). Specifically, the Fifth Circuit held that the EPA could not require permitting unless there was an actual discharge of pollutants into navigable water. Nat’l Pork Producers Council, 635 F.3d at 751-53. There has never been such a discharge at the Hyde County farm. See Compl. ¶ 44. In the North Carolina administrative 'proceeding, Rose Acre moved for summary judgment and argued that it need not obtain an NPDES permit because it never discharged pollutants into navigable water. Id. ¶55. In opposition to the motion, DENR claimed that the dust, feathers, and manure that landed on the groúnd outside the hen houses may have been carried into the detention pond and constituted discharges of pollutants into state waters. Id. ¶ 56.

The North Carolina administrative law judge (“ALJ”) recommended summary judgment for Rose. Acre. Id.- ¶ 57. The North , Carolina Environmental Management Commission (“EMC”) rejected the AU’s recommendation and ordered an evidentiary hearing to determine whether Rose Acre discharged pollutants. Id. ¶ 58. Rose Acre appealed to the North Carolina Superior Court. Id, ¶ 59, On January 4, 2013, the Superior Court remanded the case for an evidentiary hearing before the OAH. Id.

On March 12, 2014, Rose. Acre filed suit in this court seeking a declaratory , judgment [D.E. 5]. Rose Acre seeks an order declaring that any discharge that occurs as a result of precipitation carrying dust, feathers, and manure into other waters constitutes agricultural stormwater and is therefore exempt from NPDES permitting requirements, and declaring that DENR lacks the authority to require Rose Acre to obtain an NPDES permit. See id. 19-20.

II.

Rose Acre alleges subject-matter jurisdiction under 28 U.S.C. §§ 1331,1332, and 2201. Compl. ¶ 15. Defendants move to dismiss Rose Acre’s complaint for lack of subject-matter jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(1) or, alternatively, for -the court to exercise its discretion under the Declaratory Judgment Act to decline jurisdiction or to abstain pursuant to Rule 12(b)(6). See [D.E. 53, 54]. ■■ A motion to dismiss under Rule 12(b)(1) of the Federal Rules of Civil Procedure tests subject-matter jurisdiction, which is the court’s “statutory or constitutional power to adjudicate the case.” Steel Co. v. Citizens for a Better Env’t, 523 U.S. 83, 89, 118 S.Ct. 1003, 140 L.Ed.2d 210 (1998) (emphasis omitted).

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131 F. Supp. 3d 496, 2015 U.S. Dist. LEXIS 99628, 2015 WL 4603950, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rose-acre-farms-inc-v-north-carolina-department-of-environment-natural-nced-2015.