F I L E D
United States Court of Appeals
Tenth Circuit
PUBLISH
July 6, 2005
UNITED STATES COURT OF APPEALS
PATRICK FISHER
Clerk
TENTH CIRCUIT
DEFENDERS OF WILDLIFE;
FOREST GUARDIANS,
Plaintiffs - Appellants,
No. 04-2151
v.
UNITED STATES
ENVIRONMENTAL PROTECTION
AGENCY,
Defendant - Appellee.
APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEW MEXICO
(D. Ct. No. CIV-02-150 JB/LAM)
Alletta d’A. Belin, Belin & Sugarman, Santa Fe, New Mexico, for Plaintiffs-
Appellants.
Lane M. McFadden, United States Department of Justice, Environmental &
Natural Resources Division, Washington, D.C. (Thomas L. Sansonetti, Assistant
Attorney General, Lois Godfrey Wye, and Robert S. Oakley, United States
Department of Justice, Environmental & Natural Resources Division, Washington,
D.C.; and Cathy Winer, United States Environmental Protection Agency,
Washington, D.C., with him on the briefs) for Defendant-Appellee.
Before TACHA, Chief Circuit Judge, McWILLIAMS, and HARTZ, Circuit
Judges.
TACHA, Chief Circuit Judge.
Plaintiffs-Appellants Defenders of Wildlife and Forest Guardians are
environmental advocacy groups. They filed suit challenging the Defendant-
Appellee United States Environmental Protection Agency’s (“EPA”) approval of
New Mexico’s water quality standards as contrary to the federal Clean Water Act
(“CWA”). See 33 U.S.C. § 1251 et seq. The Plaintiffs contend that the New
Mexico regulation exempts pollutants emanating from flood control and irrigation
facilities from five CWA-required water quality standards. See N.M. Admin.
Code tit. 20, § 6.4.12. The District Court found the regulation ambiguous and
held that EPA’s reliance upon a state agency’s informal interpretation of the
regulation, which construed the regulation as consistent with the CWA, was not
arbitrary and capricious. We take jurisdiction under 28 U.S.C. § 1291 and
AFFIRM.
I. BACKGROUND
As this case involves the interplay of state water regulations and the federal
CWA, we begin with an overview of the CWA. We then turn to the facts and
procedural history that give rise to this appeal.
A. The Clean Water Act
The CWA was adopted “to restore and maintain the chemical, physical, and
biological integrity of the Nation’s waters.” 33 U.S.C. § 1251(a). To achieve
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this goal, Congress prohibited the discharge from a “point source” of any
pollutant into the waters of the United States unless that discharge meets specific
requirements set forth in the CWA. 33 U.S.C. §§ 1311(a), 1362(14). 1 In order
for point source discharges to comply with the CWA, such discharges must
adhere to the terms of a National Pollutant Discharge Elimination System
(“NPDES”) permit issued pursuant to the CWA. 33 U.S.C. § 1342. NPDES
permits are issued by the EPA or, in certain jurisdictions, by state agencies
authorized to do so by the EPA. 33 U.S.C. § 1342(a)–(d).
Unlike point source discharges, non-point source discharges, which are the
pollutants at issue in this case, are not defined by the CWA. Non-point source
pollution has been described as “‘nothing more [than] a [water] pollution
problem not involving a discharge from a point source.’” Am. Wildlands v.
Browner, 260 F.3d 1192, 1193–94 (10th Cir. 2001) (quoting Nat’l Wildlife Fed’n
v. Gorsuch, 693 F.2d 156, 166 n.28 (D.C. Cir. 1982)). At least in New Mexico,
most non-point pollutants are from farming run-off and dam overflows.
Unlike point source pollutants, the EPA lacks the authority to control non-
point source discharges through a permitting process; instead, Congress requires
states to develop water quality standards for intrastate waters. 33 U.S.C. § 1313.
1
A “point source” is defined by the CWA as “any discernible, confined
and discrete conveyance . . . from which pollutants are or may be discharged.”
33 U.S.C. § 1362(14).
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Development of water quality standards involves three steps: (1) every applicable
body of water in the state must be given a “designated use,” such as public water
supply, fish propagation, or navigation; (2) the state must specify water quality
criteria for each body of water, which sets the amounts of various pollutants that
may be present without impairing the body’s designated use; and (3) each state
must adopt an antidegradation review policy which allows the state to assess
whether the water is deteriorating below the level necessary to sustain its
designated use. 33 U.S.C. § 1313(c)(2)(A); 40 C.F.R. §§ 130.3, 130.10(d)(4),
131.6, 131.10, 131.11; Am. Wildlands, 260 F.3d at 1194; City of Albuquerque v.
Browner, 97 F.3d 415, 419 n.4 (10th Cir. 1996).
In addition to setting these water quality standards, states must identify all
intrastate waters not satisfying these water quality standards and establish “total
maximum daily loads” (“TMDL”) for those waters. 33 U.S.C. § 1313(d). “A
TMDL defines the specified maximum amount of a pollutant which can be
discharged into a body of water from all sources combined.” Am. Wildlands, 260
F.3d at 1194.
The EPA’s role in formulating these water quality standards is limited.
When states enact water quality standards, they must also submit them to the
EPA’s Regional Administrator to determine whether the new standard is
consistent with the CWA. 33 U.S.C. § 1313(c)(2); 40 C.F.R. § 131.21(a). “The
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EPA must either approve the standard within sixty days of submission or—if the
EPA determines that the standard is inconsistent with the Act—disapprove the
standard and notify the state of any changes necessary to gain the EPA’s
approval.” Am. Wildlands, 260 F.3d at 1194 (citing 33 U.S.C. § 1313(c)(3)).
Should a state fail to make the required changes, the EPA must enact replacement
standards that are consistent with the CWA and impose them upon the state. 33
U.S.C. § 1313(c)(3)–(4)(A). Thus, “‘states have the primary role, under § 303 of
the CWA (33 U.S.C. § 1313), in establishing water quality standards. EPA’s sole
function, in this respect, is to review those standards for approval.’” Am.
Wildlands, 260 F.3d at 1194 (alterations omitted) (quoting City of Albuquerque,
97 F.3d at 425). Indeed, “‘Congress clearly intended the EPA to have a limited,
non-rulemaking role in the establishment of water quality standards by states.’”
Id. (quoting City of Albuquerque, 97 F.3d at 425).
Of particular importance to this case is the fact that the CWA does not
require states to take regulatory action to limit the amount of non-point water
pollution introduced into its waterways. While the CWA requires states to
designate water standards and identify bodies of water that fail to meet these
standards, “‘nothing in the CWA demands that a state adopt a regulatory system
for nonpoint sources.’” American Wildlands, 260 F.3d at 1197 (quoting Am.
Wildlife v. Browner, 94 F. Supp. 2d 1150, 1161 (D. Colo. 2000)).
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B. The New Mexico Regulation
We turn now to the regulation that sparked this lawsuit. In 1999, the New
Mexico Water Quality Control Commission (“WQCC”) adopted revised water
quality standards that, among other things, included a revised enforcement
exemption for some pollutants that result from irrigation and flood control
facilities. In relevant part the regulation states:
When changes in dissolved oxygen, temperature, dissolved solids,
sediment or turbidity in a water of the state is [sic] attributable to
natural causes or the reasonable operation of irrigation and flood
control facilities that are not subject to federal or state water
pollution control permitting [i.e., nonpoint source pollutants],
numerical standards for temperature, dissolved solids content,
dissolved oxygen, sediment or turbidity adopted under the Water
Quality Act[, N.M. Stat. Ann. § 74-6-1 et seq.,] do not apply.
N.M. Admin. Code tit. 20, § 6.4.12. Prior to this regulation, New Mexico had a
similar exemption that was limited to dissolved oxygen, sediment, and turbidity;
the 1999 regulation added temperature and dissolved solids to the exemption.
In January 2000, the WQCC forwarded N.M. Admin. Code tit. 20, § 6.4.12
to the EPA for its approval pursuant to the terms of the CWA. See 33 U.S.C. §
1313(c)(2). On January 23, 2001, the EPA refused to approve N.M. Admin.
Code tit. 20, § 6.4.12. The EPA sent the following letter explaining its
reasoning:
The [regulation], in referring to the “reasonable operation and
maintenance” of irrigation and flood control structures, requires that
this activity be defined by regulation of the WQCC. Without a clear
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definition of what this exemption means and where it does and/or
does not apply, this provision is not acceptable because it could be
interpreted as either consistent or inconsistent with the requirements
of the CWA. An interpretation of the underlying statutory provisions
as precluding enforcement against listed activities (essentially
nonpoint sources associated with the “reasonable operation and
maintenance” of irrigation and flood control structures) may be
acceptable as long as assurance is provided that the numeric criteria
in question continue to apply to affected surface waters and will be
considered in assessing water quality in surface waters of the state
affected by such activities. It would be unacceptable if this
provision means that exceedance of criteria due to such activities are
simply ignored in assessing water quality.
...
[If] [t]he New Mexico Water Quality Control Commission could
provide an interpretation of the underlying statutory provisions
[along the lines of the first interpretation, the regulation would be
acceptable.] . . . EPA would reserve the right to [disapprove the
regulation, however,] if the state does not adhere to this
interpretation.
R. at 207 (emphasis added).
In short, the EPA ruled that New Mexico need not limit the amount of non-
point pollutants introduced into its waters; however, it must continue with all the
CWA requirements such as setting water quality standards and listing waters that
fail to meet these standards.
The Chairman of the WQCC responded to the EPA with a letter on behalf
of the Commission, stating:
The Commission interprets this provision to preclude enforcement of
the specified numerical standards against listed activities; essentially
non-point sources associated with the reasonable operation and
maintenance of irrigation and flood control facilities. However, New
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Mexico measures, and will continue to measure, these numeric
criteria for the purposes of assessing water quality in surface waters
of the State affected by such activities. New Mexico will continue
to assess the water quality of the surface waters of the State and will
list all impaired waters, no matter what the cause, on the State’s
CWA § 303(d) list. Moreover, the Commission sees no other way to
interpret this provision.
R. at 225. The EPA, relying upon the WQCC’s letter, approved N.M. Admin.
Code tit. 20, § 6.4.12.
C. Procedural History
Plaintiffs filed this case alleging that the EPA’s approval of N.M. Admin.
Code tit. 20, § 6.4.12 constituted an arbitrary and capricious action contrary to the
Administrative Procedure Act, see 5 U.S.C. § 701 et seq., and the CWA.
Plaintiffs also brought an Endangered Species Act claim, 16 U.S.C. § 1531 et
seq., which is not raised on appeal. After holding that the Plaintiffs had standing
to bring these claims, the District Court rejected the Plaintiffs’ contentions. The
court held that although N.M. Admin. Code tit. 20, § 6.4.12 is ambiguous, the
EPA’s reliance upon the WQCC’s letter to approve the regulation was not
arbitrary and did not create reversible error. The Plaintiffs timely appeal the
decision of the District Court.
II. STANDARD OF REVIEW
Although the parties and the District Court below express some confusion
as to the standard of review in this case, the law is well-settled on this score.
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“Our standard of review of the lower court’s decision in an APA case is de
novo.” N.M. Cattle Growers Ass’n v. United States Fish & Wildlife Serv., 248
F.3d 1277, 1281 (10th Cir. 2001). We will not overturn an agency action unless
it “fails to meet statutory, procedural or constitutional requirements, or unless it
is arbitrary, capricious, an abuse of discretion, or otherwise not in accordance
with law.” Sac & Fox Nation v. Norton, 240 F.3d 1250, 1260 (10th Cir. 2001)
(citing 5 U.S.C. § 706(2)(A)-(D)). More specifically, “we review the EPA’s
decision to approve state water quality standards under the arbitrary and
capricious standard.” Am. Wildlands, 260 F.3d at 1196. “[W]e will accord
Chevron deference to the EPA’s interpretation of the CWA when it makes
decisions to approve state water quality standards.” Id. at 1197.
Here, the ultimate decision under review is the EPA’s approval of N.M.
Admin. Code tit. 20, § 6.4.12, rather than an interpretation of the CWA. As
such, we review the EPA’s approval under the arbitrary and capricious standard.
Chevron deference does not apply.
III. DISCUSSION
The Plaintiffs advance three arguments on appeal. First, they assert that the
plain language of N.M. Admin. Code tit. 20, § 6.4.12 is not ambiguous, contrary
to the EPA and District Court’s determination. Rather, the Plaintiffs urge that
the plain meaning of the text is inconsistent with the CWA because the regulation
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does away with: (a) the development of TMDLs, (b) the implementation of
standards for exempted sources, (c) the development of best management
practices for exempted sources, (d) the inclusion of exempted pollution in
nonpoint pollution reports, and (e) the taking of essential pollution measures.
The Plaintiffs therefore argue that the EPA acted arbitrarily and capriciously in
approving a regulation that unambiguously violates the CWA. Second, the
Plaintiffs argue that even if N.M. Admin. Code tit. 20, § 6.4.12 is ambiguous, the
EPA acted arbitrarily and capriciously in relying on WQCC’s interpretation of it
in a letter to the EPA. Third, the Plaintiffs contend that even if the EPA could
potentially rely on WQCC’s interpretation, defects remain because the letter does
not specifically mention that WQCC will continue to conduct actions required by
the CWA, such as developing TMDLs. We disagree.
The EPA determined that N.M. Admin. Code tit. 20, § 6.4.12 is
ambiguous. The regulation states that when specified changes in water quality
result from the “reasonable operation of irrigation and flood control facilities . . .
numerical standards for temperature, dissolved solids content, dissolved oxygen,
sediment or turbidity adopted under the Water Quality Act do not apply.” N.M.
Admin. Code tit. 20, § 6.4.12. The Plaintiffs contend that the regulation’s
exemption of irrigation and flood control run-off from New Mexico’s Water
Quality Act clearly means that the state has attempted to exempt itself from the
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CWA.
We are not persuaded by the Plaintiff’s argument. New Mexico’s Water
Quality Act establishes a broad, multi-agency, water quality, regulatory regime.
See N.M. Stat. Ann. § 74-6-1 et seq. The act requires many things, including: the
setting of water quality standards, N.M. Stat. Ann. § 74-6-4(C); the taking of
measurements of the states waters to determine if these standards are being met,
id.; and the meting out of fines for polluters, N.M. Stat. Ann. § 74-6-10(A). As
such, we cannot conclude that the only interpretation of the text of N.M. Admin.
Code tit. 20, § 6.4.12 is that it precludes the setting of standards and taking
measurements as required under the CWA. Indeed, the EPA could find that the
regulation could be read either as an attempt to bar the setting of water quality
standards and the taking of measurements or as merely an exemption for
irrigation and flood control run-off from the civil penalty provisions of N.M.
Stat. Ann. § 74-6-10(A). Therefore, we reject the Plaintiffs’ assertion that N.M.
Admin. Code tit. 20, § 6.4.12 is contrary to the CWA on its face and hold that it
was not arbitrary or capricious for the EPA to conclude that N.M. Admin. Code
tit. 20, § 6.4.12 is ambiguous.
The Plaintiffs next claim that the WQCC’s letter interpreting N.M. Admin.
Code tit. 20, § 6.4.12 impermissibly “rewrote” the regulation because the agency
did not comply with the CWA’s notice and comment requirements in doing so.
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Because the EPA relied on an unlawful revision in approving that regulation, the
Plaintiffs maintain, it too impermissibly “rewrote” N.M. Admin. Code tit. 20, §
6.4.12. In this way, the Plaintiffs argue, the EPA acted arbitrarily and
capriciously when it approved the New Mexico regulation based on the WQCC’s
interpretation.
Although it is true that the EPA may not effectively rewrite or amend
existing state regulations, see, e.g., Riverside Cement Co. v. Thomas, 843 F.2d
1246, 1248 (9th Cir. 1988), nor may it “escape the notice and comment
requirements . . . by labeling a major substantive legal addition to a rule a mere
interpretation,” Appalachian Power Co. v. E.P.A., 208 F.3d 1015, 1024 (D.C.
Cir. 2000), neither scenario is present in this case. To the contrary, the letter
from the WQCC simply contained an interpretation of an ambiguous regulation
such that it complied with the requirements of the CWA. The EPA then relied on
that interpretation in determining that it would approve the regulation.
Consequently, the EPA’s reliance on the WQCC’s interpretation contained in the
letter cannot be characterized as an impermissible rewriting of the regulation or
as involving “a major substantive legal addition to a rule.” Therefore, the EPA
did not act arbitrarily and capriciously in approving the regulation, particularly
since the agency reserved the right to revoke approval if New Mexico interpreted
the regulation in the future in a way that would not comply with the CWA.
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Finally, the Plaintiffs argue that the WQCC’s interpretation of N.M.
Admin. Code tit. 20, § 6.4.12 constitutes an “unenforceable promise” and that
New Mexico is free to reverse its position at any time in the future. The
Plaintiffs, however, fail to direct this Court to a single source of New Mexico or
federal administrative law supporting this argument. As a result, we decline to
consider it. See Phillips v. Calhoun, 956 F.2d 949, 953–54 (10th Cir. 1992).
IV. CONCLUSION
The EPA did not act arbitrarily or capriciously in determining that N.M.
Admin. Code tit. 20, § 6.4.12 was ambiguous. It also did not act arbitrarily or
capriciously in relying on the WQCC’s interpretation of that regulation to approve
it while reserving the right to withdraw EPA approval should New Mexico not
adhere to the same position in the future. We therefore AFFIRM.
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