Southern Appalachian Mountain v. Red River Coal Company, Inc.

Court of Appeals for the Fourth Circuit·Decided March 31, 2021·No. 19-2194·Published

Opinion

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 19-2194

SOUTHERN APPALACHIAN MOUNTAIN STEWARDS; APPALACHIAN VOICES; SIERRA CLUB,

Plaintiffs - Appellants,

v.

RED RIVER COAL COMPANY, INCORPORATED, Defendant - Appellee.

Appeal from the United States District Court for the Western District of Virginia, at Big Stone Gap. James P. Jones, District Judge. (2:17-cv-00028-JPJ-PMS)

Argued: December 8, 2020 Decided: March 30, 2021 Amended: March 30, 2021

Before GREGORY, Chief Judge, and NIEMEYER and RICHARDSON, Circuit Judges.

Affirmed by published opinion. Judge Richardson wrote the opinion, in which Chief Judge Gregory and Judge Niemeyer concurred.

ARGUED: John Michael Becher, APPALACHIAN MOUNTAIN ADVOCATES, Lewisburg, West Virginia, for Appellants. Dabney J. Carr, TROUTMAN PEPPER HAMILTON SANDERS LLP, Richmond, Virginia, for Appellee. ON BRIEF: Peter Morgan, SIERRA CLUB, Denver, Colorado, for Appellants. Brooks M. Smith, TROUTMAN SANDERS LLP, Richmond, Virginia, for Appellee.

RICHARDSON, Circuit Judge:

Virginia has promulgated water-quality standards by regulation under the federal Surface Mining Control and Reclamation Act (“Surface Mining Act”) that are effectively the same as the water-quality standards under the federal Clean Water Act. Under the Clean Water Act, an operator’s compliance with its issued permit shields it from liability for certain violations of those standards. The Surface Mining Act does not include its own permit liability shield. This raises the question we must answer: When an operator’s conduct is shielded from liability under the Clean Water Act, can the operator still be held liable under the equivalent Surface Mining Act standards?

How we answer this question depends on the Surface Mining Act’s saving clause, which bars construing the Act in any way that would supersede, amend, modify, or repeal the Clean Water Act and other laws. See 30 U.S.C. § 1292(a)(3). Because here the Surface Mining Act’s lack of a permit shield supersedes, amends, or modifies the Clean Water Act’s permit shield, we hold that the saving clause prevents liability under the Surface Mining Act for conduct that is otherwise shielded from liability under the Clean Water Act. So we affirm the district court’s grant of summary judgment for Red River Coal Company on the Surface Mining Act claim. I. Background A. The regulatory scheme The Clean Water Act, the colloquial name of the amended Federal Water Pollution Control Act, regulates the issuance of pollutants from “point sources,” generally defined as any “discernible, confined and discrete conveyance” such as a pipe, into United States

waters. 33 U.S.C. § 1362(14); see also § 1251 et seq. The core of the Act prohibits “the discharge of any pollutant by any person.” Piney Run Pres. Ass’n v. Cnty. Comm’rs of Carroll Cnty., 268 F.3d 255, 265 (4th Cir. 2001); see § 1311(a). But compliance with a Clean Water Act permit issued under the National Pollutant Discharge Elimination System serves as an exception to this liability. § 1342(k); Piney Run, 268 F.3d at 265. 1 Once granted, a permit allows its holder to discharge a limited amount of pollutants. §§ 1311(a), 1342(a), (c). Compliance with that permit “shall be deemed compliance” with the Clean Water Act’s standards (namely, the effluent—wastewater—limitations, § 1311, water- quality-related effluent limitations, § 1312, national standards of performance, § 1316, toxic and pretreatment effluent standards, § 1317, and ocean discharge criteria, § 1343). § 1342(k); see also E.I. du Pont de Nemours & Co. v. Train, 430 U.S. 112, 138 n.28 (1977) (such permits provide “finality”). 2 This liability shield not only covers discharges listed

1 Given lawyers’—particularly environmental ones—affinity for acronyms, it is no surprise that everyone calls these permits “NPDES permits.” Cf. N. Cheyenne Tribe v. Norton, 503 F.3d 836, 839 n.1 (9th Cir. 2007). While deviations from acronyms can cause confusion, we do our best to speak in plain English so that those lacking subject-matter expertise might understand. Cf. D.C. Circuit Handbook of Practice and Internal Procedures 43 (2020). So we will refer to these “NPDES permits” as Clean Water Act permits, though we bow to expediency in using the widely recognized “EPA” to refer to the Environmental Protection Agency.

2 Plaintiffs note that the Clean Water Act permit-shield provision does not protect permit holders from non-compliance with water-quality standards promulgated by states. See § 1313 (mandating states to set water-quality standards for each body of water within a state). But “water quality standards are not themselves directly enforced by the EPA.” Scott v. City of Hammond, 741 F.2d 992, 995 (7th Cir. 1984). Those water-quality standards are only enforceable by the EPA if they are affirmatively incorporated within the permit. See 33 U.S.C. §§ 1342(k), 1319(a)(3). The same holds for citizen suits, which can only be brought to enforce a state-promulgated water-quality standard under § 1313 if the (Continued)

on this permit but also other discharges “adequately disclosed to the permitting authority.” Piney Run, 268 F.3d at 269. Thus, an operator in compliance with its Clean Water Act permit is shielded from liability in EPA and citizen-suit enforcement actions. §§ 1319, 1365.

These permits may be issued by the EPA or the states to which the EPA has delegated its authority. § 1342(c)(1). The EPA delegated its authority to the Commonwealth of Virginia in 1975. 57 Fed. Reg. 43,734 (Sept. 22, 1992); see also J.A. 43 (approving a sub-delegation to the Virginia Department of Mines, Minerals and Energy, Division of Mined Land Reclamation).

Five years after passing the Clean Water Act, Congress passed the Surface Mining Act. The Surface Mining Act, among other things, “establish[es] a nationwide program to protect society and the environment from the adverse effects of surface coal mining operations.” 30 U.S.C. § 1202(a); see also Consolidation Coal Co. v. Costle, 604 F.2d 239, 251 (4th Cir. 1979), rev’d on other grounds sub nom. E.P.A. v. Nat’l Crushed Stone Ass’n, 449 U.S. 64 (1980). It does so by allowing states to exclusively regulate surface coal mining operations within their borders if they satisfy certain conditions. § 1253(a). Virginia satisfied these conditions. 46 Fed. Reg. 61,088 (Dec. 15, 1981). With this

standard is incorporated within the permit. 33 U.S.C. § 1365(a)(1) (citizen suits may be brought against any person alleged to have violated “an effluent standard or limitation under this chapter”); id. § 1365(f)(7) (defining “effluent standard or limitation under this chapter”). And “[i]t is clear . . . that if a permit holder discharges pollutants precisely in accordance with the terms of its permit, the permit will ‘shield’ its holder from [Clean Water Act] liability.” Piney Run, 268 F.3d at 266; see also § 1342(k). So Plaintiffs’ argument on this point does not hold water.

regulatory authority, Virginia needed to, and did, create a permit system for surface coal mining and reclamation operations that, at a minimum, incorporated the Surface Mining Act’s anti-pollution performance standards. § 1253(a)(4); see Va. Code Ann. § 45.1- 242(B). Like the Clean Water Act, the Surface Mining Act requires an operator wishing to “engage in or carry out on lands within a State any surface coal mining operations” to “first obtain[] a permit issued by such State.” § 1256(a). But, unlike a Clean Water Act permit, compliance with a Surface Mining Act permit does not itself shield its holder from liability under the Surface Mining Act.

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