TX Independent v. EPA

CourtCourt of Appeals for the Seventh Circuit
DecidedJanuary 27, 2006
Docket03-3277
StatusPublished

This text of TX Independent v. EPA (TX Independent v. EPA) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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TX Independent v. EPA, (7th Cir. 2006).

Opinion

In the United States Court of Appeals For the Seventh Circuit ____________

Nos. 03-3277, 03-3278, 03-3279, 03-3280 & 03-3281 TEXAS INDEPENDENT PRODUCERS AND ROYALTY OWNERS ASSOCIATION, et al., Petitioners, v.

ENVIRONMENTAL PROTECTION AGENCY, Respondent. ____________ Petitions for Review of an Order of the Environmental Protection Agency. No. 02-OW-55 ____________ ARGUED DECEMBER 7, 2004—DECIDED JANUARY 27, 2006 ____________

Before BAUER, MANION, and WILLIAMS, Circuit Judges. MANION, Circuit Judge. In a previous opinion, Texas Inde- pendent Producers and Royalty Owners Association v. EPA, 410 F.3d 964, 977-78 (7th Cir. 2005), this court addressed various issues concerning a general permit issued by the Environmen- tal Protection Agency (“EPA”) for storm water discharges. We reserved several issues pending the resolution of litigation in another circuit. This opinion now addresses those unresolved issues relating to the “Final National Pollutant Discharge Elimination System General Permit for Storm Water Dis- 2 Nos. 03-3277, et al.

charges From Construction Activities” (“General Permit”), promulgated by the EPA on July 1, 2003. 68 Fed.Reg. 39,087 (July 1, 2003). To recap: Following the EPA’s issuance of this General Permit, several organizations filed petitions for review, and those petitions were consolidated before this court. On June 13, 2005, this court held that the General Permit does not violate the Clean Water Act’s (“CWA”) requirements for public notice and public hearing. Texas Indep. Producers and Royalty Owners Ass’n v. EPA, 410 F.3d 964, 977-78 (7th Cir. 2005). We also held that in issuing the General Permit, the EPA complied with the requirements of the Endangered Species Act. Id. at 979. However, we dismissed the petition filed by the Natural Resources Defense Council, Inc., for lack of standing. Id. at 976. We then stayed consideration of the remaining challenges presented by organizations representing individu- als in the oil and gas industries, pending resolution by the Fifth Circuit as to whether those petitioners were required to obtain a permit in the first instance. Id. at 980. After the Fifth Circuit held that the Oil and Gas Petitioners’ challenge to the application of the General Permit was not ripe for review, Texas Independent Producers and Royalty Owners Assoc. v. EPA, 413 F.3d 479, 484 (5th Cir. 2005), we directed the parties to file supplemental briefing addressing the import of that decision. Before briefing was due, Congress passed the Energy Policy Act of 2005, which expressly exempts construction activities in the oil and gas industries from the permit requirements of the 1 CWA. Energy Policy Act of 2005, Pub. L. No. 109-58, § 323, 119 Stat. 594, 694 (2005). We directed further briefing on the impact of the Energy Policy Act. We now hold that because of the exemption contained in the Energy Policy Act, those

1 Following passage of the Energy Policy Act, the Oil and Gas Petitioners sought rehearing. On December 2, 2005, the Fifth Circuit denied the Petition for Rehearing, “WITHOUT PREJU- DICE to seeking relief in the event of unreasonable delay by the Agency.” Nos. 03-3277, et al. 3

aspects of the General Permit that the Oil and Gas Petitioners seek to challenge do not apply to them. We therefore dis- miss this petition for lack of standing.

I. Congress enacted the Clean Water Act (“CWA” or “Act”) “to restore and maintain the chemical, physical, and biological integrity of the Nation’s waters.” 33 U.S.C. § 1251(a). Among other things, the CWA prohibits the “discharge of any pollut- ant,” except in compliance with the Act’s provisions. 33 U.S.C. § 1311(a). In particular, the discharge of pollutants into navigable waters is illegal unless authorized by a permit issued pursuant to § 402 of the Act. 33 U.S.C. § 1342. Section 402 established the National Pollutant Discharge Elimination System (“NPDES”), and requires dischargers to obtain a 2 permit from the EPA or an authorized state. 33 U.S.C. § 1342(a)(1), (b). In 1987, Congress added § 402(p) to the CWA, establishing a two-step phased approach to regulating storm water discharges. 33 U.S.C. § 1342(p). “In Phase I, Congress required NPDES permits for storm water discharges from ‘industrial activities,’ 33 U.S.C. § 1342(p)(3)(A), defined as construction activities involving five or more acres, as well as discharges from certain large municipal storm sewer systems. 55 Fed.Reg. 47,990, 48,066 (Nov. 16, 1990).” Texas Indep. Producers, 410 F.3d at 968. The EPA decided to implement the permit requirement for Phase I by using a general permit system, as opposed to a system requiring individual permits for each construction

2 “The EPA administers the NPDES program in each state unless the EPA previously authorized a state program to issue NPDES permits.” Am. Paper Inst., Inc. v. EPA, 890 F.2d 869, 871 (7th Cir. 1989) (citing 33 U.S.C. § 1342(b)). 4 Nos. 03-3277, et al.

activity. 55 Fed.Reg. 47,990, 48,005-06 (Nov. 16, 1990). Texas Indep. Producers, 410 F.3d at 968. As we explained in our prior opinion, “[t]he NPDES permitting system originally used individual permits, which was feasible for regulating dis- charges from wastewater facilities or industrial plants. However, by the 1980’s it became clear that the individual permitting process was unworkable to regulate storm water discharges which can occur virtually anywhere.” Texas Indep. Producers, 410 F.3d at 967-68 (citing 56 Fed.Reg. 40,948, 40,949-50 (Aug. 16, 1991)). “With a general permit, the EPA issues a permit for specific types of activities and establishes specific rules for complying with the permit. Then, rather than apply for an individual permit, operators must file a Notice of Intent stating that they plan to operate under the general permit, and absent a negative ruling by the EPA, discharges that comply with the terms of the general permit are automati- cally authorized.” Id. at 968. In 1992, the EPA issued its first general permit for construc- tion-related storm water discharges. 57 Fed.Reg. 41176 (Sept. 9, 1992). The EPA, in 1997, proposed a revised general permit. 62 Fed.Reg. 29786 (June 2, 1997). Texas Indep. Producers, 410 F.3d at 968. Then in 1999, the EPA issued its Phase II storm water rules, which defined as additional discharges subject to the general permitting requirements “small construction sites (one to five acres), smaller municipalities, and additional sources that might be designated on a case-by-case basis. 64 Fed.Reg. 68722 (Dec. 8, 1999); 40 Fed.Reg. § 122.26(b)(15).” Texas Indep. Producers, 410 F.3d at 968. On December 20, 2002, the EPA proposed a third General Permit for storm water discharges from both large and small construction sites, 67 Fed.Reg. 78,116 (Dec.

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