TORRUELLA, Circuit Judge.
The City of Taunton, Massachusetts (the "City"), objects to the decision of the Environmental
It is useful to begin with an overview of the legal landscape that is relevant to this appeal. The Clean Water Act (CWA) prohibits the "discharge of any pollutant" unless that discharge complies with NPDES permit requirements. 33 U.S.C. §§ 1311(a), 1342. The EPA is responsible for issuing NPDES permits unless a state agency is authorized to do so.
NPDES permits issue for a period of time not to exceed five years. 33 U.S.C. §§ 1342(a)(3), (b)(1)(B); 40 C.F.R. § 122.46(a). Upon receiving a permit renewal application, the permitting authority — the EPA, in this case — prepares a draft permit setting out the proposed "effluent limitations, standards, prohibitions... and [other] conditions."
We also find it useful to provide a brief overview of the facts and procedural events that are central to this appeal, though we will also discuss those in greater detail in assessing the City's various challenges.
In 2005, the City applied to renew its soon-to-expire 2001-issued NPDES permit. The 2001 permit did not limit the Facility's discharge of nitrogen, but it did require nitrogen monitoring. The EPA issued a draft permit in 2007, but its review of the ensuing public comments led it to conclude that it might be necessary for the permit to impose nutrient limits. After further research, the EPA issued a superseding draft permit, along with the mandatory accompanying fact sheet, in 2013.
At the City's request, the EPA extended the public comment period to 90 days, during which time the City submitted a substantial volume of comments objecting to the nitrogen limit that the draft permit sought to impose on the Facility. After the extended public comment period closed, the City sought on multiple occasions to submit what it characterized as "supplemental comments." The EPA, however, rejected these as untimely, and therefore declined to address them in its response to comments.
After the final permit issued, the City appealed to the EAB, challenging both the need for any nitrogen limit and the specific limit that the permit imposed. The City also filed two motions before the EAB to supplement the record with, among other things, the documents it had previously attempted to submit with its "supplemental comments." The EAB denied those motions. The EAB also denied the City's administrative appeal on the merits, along with the City's subsequent motion for reconsideration. The final permit went into effect on June 22, 2016.
The Administrative Procedure Act (APA) governs our review of the EPA's actions and decisions amid the NDPES permitting process.
Here, the "scientific and technical nature of the EPA's decisionmaking" increases our level of deference.
Similarly, because interpreting and implementing the CWA falls squarely within the EPA's bailiwick,
After briefing before this court concluded, the EPA moved to strike certain documents in the City's supplemental appendix, in addition to parts of the City's reply brief that cited those documents, as outside of the administrative record. These documents comprised: (1) a 2005 Rhode Island nutrient policy document; (2) slides prepared by the Narragansett Bay Commission; and (3) a draft report from the Narragansett Bay Estuary Program (the "draft NBEP report"). In response, the City cross-moved to supplement the record. The City argued that it was entitled to refer to the documents at issue in rebutting arguments that the State of Rhode Island had raised in its amicus brief. Specifically, the City pointed to Rhode Island's contentions that: (1) "The fact that [the Rhode Island Department of Environmental Management's] nitrogen limitations for numerous in-state sewage treatment plants are numerically consistent with the nitrogen limitation at issue further corroborates the reasonableness of the EPA's decision"; (2) the nitrogen limit that the EPA imposed in the Permit is necessary to ensure compliance with Rhode Island's water quality standards; and (3) that research by the Narragansett Bay Estuary Program and the University of Rhode Island Coastal Institute bolster the EPA's decision.
At the foreground of our analysis here is the principle that, when reviewing an agency's decision under the arbitrary and capricious standard, "the focal point for judicial review should be the administrative record already in existence, not some new record made initially in the reviewing court."
Yet, exceptions do exist. We have recognized a pair of situations in which we have the discretion to supplement the agency record.
We note that the City's proffered justification for supplementing the record — to allow it to respond to arguments raised in an amicus brief — does not fit neatly within either of these exceptions.
Keeping in mind that our broader adjudicatory task here is to determine whether, on the basis of the record before it, the EPA acted arbitrarily or capriciously, we take note of the City's position that Rhode Island's "assertions were not the basis of [the] EPA's permit limit calculations," and that Rhode Island's scientific and factual averments "were not part of the underlying agency[] decision." It would follow, then, that Rhode Island's assertions also cannot provide a basis for our affirmance of the EPA's permit decision. So, we do not find it appropriate or necessary to allow the City to go beyond the agency record to rebut those assertions.
Because the City has not convinced us that the record should include the documents at issue in the EPA's motion to strike and the City's cross-motion to supplement the record, we grant the former and deny the latter.
Before oral argument, the City also brought a motion "For Leave to Adduce New Material Evidence and Compel Respondent's Review of the New Information." The City anchored that motion in section 509(c) of the CWA,
This forecloses the City's argument. Because the agency record at issue here pertains to an informal adjudication, section 509(c) of the CWA is inapposite, and does not provide a basis for us to order the EPA to reopen the administrative record to consider the City's purportedly new material evidence. As a result, we deny the City's motion for us do to so.
We turn now to the various procedural challenges that the City brings.
The City first tells us that the EPA "failed to provide public access to fundamental evaluations, analyses, and data used to derive the permit." While the City's precise objections are perhaps not the easiest to discern, we read its brief as essentially asserting two things: (1) that the factsheet, containing only "generalized supporting information for the stringent nutrient limitations," failed to provide adequate support for the draft permit's nitrogen limitation, and (2) that "when challenged regarding the adequacy of that documentation, [the EPA improperly] add[ed] thousands of pages of site-specific studies, data analyses and specific regulatory findings [to the final administrative record], after the comment period closed." The appropriate remedy, according to the City, is for us to order the EPA to reopen the public comment period so that the City may weigh in on the "new justifications and analyses supporting [the] permit" for which the EPA allegedly deprived the City of a "rebuttal opportunity."
We start with the City's claim that the fact sheet was facially deficient. Under 40 C.F.R. § 124.8(a), the fact sheet that accompanies a draft NPDES permit need only "briefly set forth the principal facts
First, the fact sheet explained how the EPA had arrived at its conclusion that the "Taunton River Estuary and Mount Hope Bay have reached their assimilative capacity for nitrogen," and as a result, were already "failing to attain the water quality standards" that Massachusetts and Rhode Island law impose. The fact sheet then explained the EPA's conclusion that, because the Facility's nitrogen discharges had the "reasonable potential" to cause violations of the applicable water-quality standards, it was necessary to include an effluent limit in the draft permit. Next, the fact sheet detailed how the EPA first calculated the threshold nitrogen concentration for the Taunton River Estuary — that is, the maximum amount of nitrogen that the Estuary may contain before any water-quality violations result — and then calculated an "allowable total nitrogen load from the watershed" that would keep the Estuary's nitrogen concentration at or below that threshold. Finally, the fact sheet laid out how the EPA allocated that total allowable nitrogen load among the Estuary's various point-sources of nitrogen — including the Facility — to derive limits for each of those nitrogen dischargers. At each step, the EPA identified the datasets and studies it relied upon in making these calculations, and provided a clear account of its reasoning and underlying assumptions.
In light of all of this, we do not agree with the City that the fact sheet provided only "generalized supporting information for the stringent nutrient limitations." Quite the opposite, the fact sheet described in substantial detail the methodology that the EPA employed in deriving the nitrogen limitation that it ultimately imposed in the draft permit. The City therefore fails to convince us that the fact sheet ran afoul of the regulations governing it.
According to the City, a "quick comparison of the original 20-page generalized fact sheet discussion versus the 80 pages of site-specific analysis contained in the [response to comments] and final administrative record confirms extensive revisions occurred."
The EPA's rejoinder is that, as the EAB explained, "it is both permissible and expected for [the EPA] to place new material in the Administrative Record when responding to significant comments." The EPA also correctly points out that its regulations provide that if "new points are raised or new material supplied during the public comment period, EPA may document its response to those matters by adding new materials to the administrative record." 40 C.F.R. § 124.17(b);
Contrary to what the City asserts, the 60-page difference between the fact sheet and the response to comments does little to suggest that the EPA acted arbitrarily or capriciously. Because it needed only to "briefly set forth" the draft permit's factual and theoretical underpinnings,
The City next challenges the EPA's decision not to address the City's untimely "supplemental comments" in the response to comments. 40 C.F.R. § 124.17(a)(2) requires only that the EPA "[b]riefly describe and respond to all significant comments on the draft permit ... raised
We similarly uphold the EAB's decision to strike documents that the City attempted to submit for the first time at the administrative appeal stage. The City protests that the EAB's decision "effectively created a double-standard whereby [the EPA] may include extensive new post-comment period analyses and data to justify its action, yet the City is precluded from commenting on any of this new information." But this assertion alone — especially given our rejection of the notion that the EPA illicitly added information to the final record or that the final permit departed impermissibly from the fact sheet and draft permit — fails to convince us that the EAB acted arbitrarily or capriciously in policing its waiver rule.
Finally, the City tells us that "following the issuance of its deficient fact sheet, EPA repeatedly stymied Taunton's access to the Agency's back-up documentation allegedly supporting the contested [total nitrogen] limitation." In brief, the City makes much ado over the EPA's purported unwillingness to allow the City to see documents supporting the draft permit's nitrogen limit. The City's briefing does not make entirely clear what exactly it wanted the EPA to do. But in any event, we note that the City does not argue that the EPA ran afoul of any applicable legal requirement. And as the EPA points out, it needed only to provide physical access to the record during the public comment period,
We now take up the City's substantive challenges to the Permit and its nitrogen limit.
The first arrow that the City pulls from its quiver is that the EPA erred in determining that the Taunton Estuary was nutrient impaired.
As we explained above, NPDES permits "must control all pollutants or pollutant parameters" that the EPA "determines are or may be discharged at a level which will cause, have the reasonable potential to cause, or contribute to an excursion above any State water quality standard, including State narrative criteria for water quality." 40 C.F.R. § 122.44(d)(1)(i). The EPA has interpreted "reasonable potential" to mean "some degree of certainty greater than a mere possibility."
Massachusetts classifies the Taunton Estuary and the eastern portion of Mount Hope Bay as "Class SB" waters. Per state regulations, Class SB waters "are designated as a habitat for fish, other aquatic life and wildlife ... and for primary and secondary contact recreation." 314 Mass. Code Regs. § 4.05(4)(b). They "shall have consistently good aesthetic value."
When issuing NDPES permits for states that employ narrative criteria, the EPA must translate those criteria into a "calculated numeric water quality criterion" that the EPA "demonstrates will attain and maintain applicable narrative water quality criteria and will fully protect the designated use." 40 C.F.R. § 122.44(d)(1)(vi)(A). The EPA may arrive at that numerical criterion by using "a proposed State criterion, or an explicit State policy or regulation interpreting [the State's] narrative water quality criterion, supplemented with other relevant information...."
The EPA looked to an interim report prepared for the Massachusetts Department of Environmental Protection (MassDEP) known as the "Critical Indicators Report."
The purpose of that report is to provide a "translator" between Massachusetts's narrative water quality standard and corresponding numeric nitrogen thresholds that would ensure compliance with those standards.
The EPA then looked to data from a three-year water quality monitoring study that the School for Marine Sciences and Technology at University of Massachusetts Dartmouth (SMAST) had carried out. The study involved taking monthly water samples from 22 sites across the Taunton Estuary and Mount Hope Bay from 2004 to 2006. The study revealed that all of these sites were suffering from excessive algae growth; each site had an average chlorophyll-a concentration of over 10 μg/l during the study's three-year period. All 22 monitoring stations also had an average dissolved oxygen concentration below 5.0 mg/l during that period. And in the case of 16 monitoring stations, the average nitrogen concentration exceeded .5 mg/l — where the Critical Indicators Report drew the line for "clearly impaired" waters. Those monitoring stations located in the Taunton River tended to have the highest nitrogen concentrations. The monitoring station closest to the Facility's discharge point showed a particularly high nitrogen concentration — ranging from 0.66 to 0.99 mg/l during the course of the study.
The EPA also considered data from another monitoring station in Mount Hope Bay, operated by the Narragansett Bay Water Quality Network. That data showed that the dissolved oxygen concentration at that site fell below 4.8 mg/l on multiple occasions in 2005 and 2006. On two such occasions, the dissolved oxygen concentration remained below 2.9 mg/l for two days, resulting in "hypoxic conditions," or "levels
The EPA then applied the SMAST and Mount Hope Bay data to the Critical Indicators Report. This led it to conclude that "cultural eutrophication due to nitrogen overenrichment in the Taunton River Estuary and Mount Hope Bay has reached the level of a violation of both Massachusetts and Rhode Island water quality standards for nutrients and aesthetics, and has also resulted in violations of the numeric [dissolved oxygen] standards." According to the City, this conclusion was the product of various errors.
The City first assails the EPA's use of the Critical Indicators Report, stressing that the EPA treated the report's "straw man" threshold levels as final and authoritative when the report treated them as preliminary and requiring further analysis. The EPA responds that, while the report may hold those threshold levels out as preliminary and subject to future fine-tuning, the report's "indicators" of watershed health are not. Indeed, as the report explains, those indicators "form the basis of an assessment of a system's present health." Massachusetts Estuaries Project, supra at 22. Thus, the EPA explains that it was entitled to use those indicators and apply them "to site-specific data and the extensive scientific literature on cultural eutrophication, to determine that the Taunton Estuary was suffering from nutrient overenrichment."
The EAB, for its part, upheld the EPA's use of the report on this basis, explaining that "the use of criteria from the ... Critical Indicators Report to evaluate water quality is fully consistent with the NPDES permitting regulations." It added that the EPA's ultimate determination, after considering those indicators, that the Taunton Estuary was nutrient impaired found further support in "the SMAST report itself, which concluded that the Taunton Estuary experienced very high levels of nitrogen and poor water quality due to high algal levels and oxygen depletion."
We agree that the EPA did not use the Critical Indicators Report improperly. The City's objections to the EPA's reliance on the "straw man" thresholds in the Critical Indicators Report are ultimately inapposite, as the EPA relied not on those thresholds, but rather on the Report's indicators in reaching its conclusion about nutrient impairment. Of course, had the EPA been able to rely on threshold levels not subject to future refinement, then its analysis may have benefitted from greater scientific certainty. But, it was not required to delay its decision until such information became available, and its conclusions are not invalid because they are the product of employing the indicators set out in the Critical Indicators Report to analyze the SMAST data. "As in many science-based policymaking contexts, under the CWA the EPA is required to exercise its judgment even in the face of some scientific uncertainty."
Next, the City protests that, in applying the SMAST data to the Critical Indicators Report, the EPA "did not" undertake any analysis to demonstrate the relationship between nitrogen and dissolved oxygen or plant growth" in the Taunton Estuary. As a result, the City says, the EPA failed to rule out a number of other explanations for the Taunton Estuary's low concentration of dissolved oxygen and high concentration of chlorophyll. The City then points to a number of charts drawing from the SMAST data that it submitted during the public comment period, which, it explains, show that no relationship exists between the concentrations of nitrogen and oxygen or between the concentrations of nitrogen and chlorophyll. The absence of any causal relationship, the City presses, renders the EPA's determination that the Taunton Estuary was nutrient impaired arbitrary and capricious.
But, as the EAB correctly determined, the EPA did not need to show causation — for example, through a statistical regression analysis — to support its conclusion that the Taunton Estuary was nutrient impaired. Rather, the EPA needed only to conclude that the further discharge of nitrogen had the "
The City's arguments thus miss their mark; it is incorrect that the EPA needed to show a causal relationship between high concentrations of nitrogen and low concentrations of dissolved oxygen. The absence of an analysis of this sort from the EPA's "reasonable potential" determination, therefore, cannot have made that determination arbitrary or capricious.
And we also reject, as did the EAB, the City's related contention that this "reasonable potential" determination was erroneous because the SMAST data does not show any relationship between nitrogen, chlorophyll, and dissolved oxygen. In discussing the charts that the City continues to rely on in arguing that no such relationship
Having considered, and found unpersuasive, the City's various challenges, we hold that the EPA did not act arbitrarily or capriciously in determining that the Taunton Estuary and Mount Hope Bay were already nutrient impaired, such that further nitrogen discharges would have at least a "reasonable potential" to give rise to violations of state water quality standards.
The City's next objection concerns the EPA's methodology for determining a target nitrogen concentration that would ensure unimpaired conditions.
The EPA, we recall, needed to include in the permit whatever water-quality-based limitations it found necessary to prevent violations of state water quality standards.
To calculate that total nitrogen threshold, the EPA — employing what is known as a "reference-based" approach — looked to one of the monitoring stations in the SMAST study, MHB16, that "consistently met dissolved oxygen standards." As the EPA detailed in the response to comments, MHB16 was, among all of the unimpaired sites in the SMAST study, the site with the highest nitrogen concentration. The nitrogen concentration at MHB16, 0.45 mg/l, also fell within the range that the Critical Indicators Report held out as consistent with unimpaired conditions (0.35-0.5 mg/l). The EPA further explained in the fact sheet that this nitrogen threshold was consistent with "total nitrogen concentrations previously found to be protective of [acceptable dissolved oxygen levels] in other southeastern Massachusetts estuaries [which] have ranged between 0.35 and 0.55 mg/l." Mindful that all of the sites in the SMAST study with a nitrogen concentration above 0.45 mg/l suffered from nutrient impairment, the EPA explained in the response to comments that "there is simply no evidence that a higher target [total nitrogen] concentration would be sufficiently protective in the Taunton River Estuary." The EPA therefore selected 0.45 mg/l as the target nitrogen concentration that would serve as the basis for the effluent limitations the permit would impose on the Facility.
The City protests that the EPA's reliance on MHB16 was "flawed," because MHB16 "could not be more dissimilar" from the Taunton Estuary. In support of this, the City points to comments it submitted in response to the draft permit and
In the response to comments, however, the EPA explained that the City had "clearly overstate[d] its case with the insistence that there is `no objective resemblance between' Mount Hope Bay and the contiguous Taunton River Estuary." The EPA then pointed out that, "[d]espite the hyperbole," those two bodies of water "are in fact a series of segments of the same estuarine system, characterized by different levels of mixing of the same two source waters, continual exchange of waters among estuarine segments, the same sources for sediment, the same climactic conditions, [and] minor differences in depth range." The EPA also adds that the City has yet to explain how or why any of these purported differences are relevant to the target nitrogen threshold that the EPA selected.
The City's objection to the EPA's reliance on data from MHB16 cannot be squared with the principle that our review of agency action must afford deference to the scientific judgments of the agency that Congress has tasked with carrying out the context-sensitive implementation of the CWA.
The City's final challenge is that the EPA erred in failing to take "existing conditions" in the Taunton Estuary into account in fashioning the permit's nitrogen limitation.
Having determined that a total nitrogen threshold of 0.45 mg/l was necessary to protect the Taunton Estuary from nutrient impairment, the EPA then calculated the maximum nitrogen load from the Taunton River watershed that the Estuary could receive without exceeding that threshold. After using a model to calculate the amount of nitrogen that the Estuary would receive from ocean inflows, the EPA concluded that the watershed's various sources of nitrogen could discharge 2,081 lbs. per day of that nutrient before pushing the Estuary's nitrogen concentration past the 0.45 mg/l limit. This amounted to approximately a 51% reduction in total nitrogen loads from 2004-05 levels. The EPA then subtracted from that 2,081 lb. limit the amount of Nitrogen, 1,142 lbs., it projected would flow from non-point sources.
The EPA first noted that allocating this maximum load "equitably" among the watershed's six non-minor point-sources of nitrogen would result in requiring each of those sources to limit their discharges to a nitrogen concentration between 3.4 and 3.5 mg/l.
The City presses that, in arriving at the final permit limit for the Facility, the EPA relied only on the SMAST data, which is from 2004-06, and as a result failed to take account of the allegedly substantial improvements in terms of dissolved oxygen and algal conditions that have since taken place in the Taunton Estuary. Those improvements, the City says, may even have obviated the need for
Insofar as the City challenges the facial validity of the SMAST data due to the time that had elapsed since its collection, that argument is unavailing. Our standard of review, once more, does not deputize us to second-guess the EPA's choice of data, so long as the agency acts "with a reasonable basis" in selecting and applying it.
Moreover, the agency's express consideration of the four different recent developments identified by the City reinforces our conclusion that the permit's nitrogen limit was not arbitrary or capricious. With regard to the Brayton Point plant, the EPA resoundingly rejected the notion that the plant's closure should have impacted its analysis. First, it explained that while operative, the plant's thermal discharges may have "contributed incrementally to dissolved oxygen depletion in Mount Hope Bay [but], ... extensive modeling efforts... were unable to quantify the impact of those thermal discharges on [dissolved oxygen] concentrations." The EPA further explained in the response to comments that the impact of the plant's thermal discharges was minimal in the Taunton River Estuary because of that portion of Mount Hope Bay's naturally elevated temperatures. And the EPA also noted that — because thermal loads in the Mount Hope Bay had been "dramatically reduced since 2011," while dissolved oxygen depletions nonetheless persisted during that period — the City's theory that the plant's closure had remedied the Taunton Estuary's low dissolved oxygen levels was "unsupported by any evidence at all."
Turning to the City's next argument — that the EPA failed to consider new data indicating that total nitrogen inputs had declined — we note that the EAB rejected the City's claim that the agency failed to consider "potential improvements." In so doing, the EAB emphasized that in the response to comments, the EPA explained that "while some nitrogen reductions have occurred in connection with improved treatment at other wastewater treatment plants in Massachusetts, these reductions are not predicted to be sufficient to achieve the target nitrogen concentration or water quality standards."
The EPA also took up the City's submission concerning reduced combined sewer overflows in the response to comments, but concluded that those reductions "while important in addressing other pressing water quality problems, are not expected to have a significant impact on [dissolved oxygen] conditions in the upper Taunton River estuary." The EPA also explained that those reductions came nearly entirely from combined sewer overflows "located more than 6 miles downstream of the station used as the locus for the loading analysis and discharge only during wet weather, when flows from the Taunton River are at their highest and ... move most strongly away from the estuary." Thus, the EPA was similarly unmoved by this objection from the City.
Finally, while the City maintains that the EPA has conceded that algal conditions have improved, the EPA's engagement with that argument in the response to comments proves otherwise. There, it explained that it disagreed with the City's comment asserting that "[a]lgal levels in Mount Hope Bay have dropped significantly since 2004/05" and that "[p]eak and average algal levels are at all-time lows." That comment, the EPA tells us, attempted to draw "conclusions from a single year of variation[,] 2010, while 2009 was the highest year on record for average chlorophyll-a concentrations." And, the EPA added, the chlorophyll-a concentrations recorded in 2010, "while lower than those seen in 2004-05, are still significantly higher
We now turn to its final contention: that, in allocating the total daily maximum nitrogen load of 939 lbs. among point-sources of nitrogen, the EPA ignored the "impact of the largest (by far) discharger in the system" — the City of Fall River. The EPA urges us to find this argument waived, the City having raised it only after briefing before the EAB was complete, by way of an untimely submission. But even were we to consider this argument on the merits, the outcome would be no better for the City. For, the EPA calculated the Permit's nitrogen limit based on standards governing and conditions in the Taunton River Estuary, while Fall River discharges only into the greater Mount Hope Bay. And, far from ignoring Fall River's impact on conditions in Mount Hope Bay, the EPA explained as early as in the fact sheet that "[w]hile other loads to Mount Hope Bay (particularly the Fall River [wastewater treatment plant]) will need to be addressed as well, the reduction in nitrogen loadings from the Taunton River will ensure that those discharges do not cause or contribute to nitrogen-related impairments in Mount Hope Bay.
Having considered all of the City's protestations to the contrary, we find that in calculating the Permit's effluent limit, the EPA neither relied on impermissible factors nor failed to consider a crucial aspect of the problem, and that its explanation for that limit neither flouted the evidence in the record nor is "so implausible that it could not be ascribed to a difference in view or the product of agency expertise."
None of the City's procedural or substantive challenges having merit, the decision of the EAB is