In a judicial review of an order of the Oregon Department of Fish and Wildlife (ODFW), the Court of Appeals rejected petitioners' contention that ODFW's approval of "channel-spanning fishways" associated with two small, privately maintained dams downstream from their property violated state law, including ODFW's own rules, pertaining to fish passage for native migratory fish. Petitioners had argued that the approvals were inconsistent with administrative rules and statutes that, in their view, require that fish passage be provided whenever water is flowing past the dams, whether over the tops of the dams or through outlet pipes required by the state Water Resources Department (WRD). The Court of Appeals rejected that argument, holding that ODFW had plausibly construed its own rules as requiring passage only when water is flowing over the dams, and that the rules, as interpreted, were not inconsistent with the controlling statutes. Noble v. Dept. of Fish and Wildlife, 250 Or.App. 252, 264, 279 P.3d 345 (2012). Petitioners sought review and we allowed their petition. We conclude that ODFW's interpretation of the rules is implausible, and we remand to that agency for further action under a correct interpretation.
Petitioners own a parcel of land through which a small, unnamed stream flows. The stream historically supported cutthroat trout and other native migratory fish. Petitioners would like those fish to return to their property, and they have invested a significant amount of money and effort in improving fish habitat in their portion of the stream. Petitioners' objective is for fish to have adequate passage upstream from nearby Beaver Creek, where the fish are present.
When the stream leaves petitioners' property, it flows downstream through properties owned by Wacker, Olson, Lytle, Stoyan, and Hillison, respectively, and thereafter into Beaver Creek. Small artificial dams have been erected on several of the downstream properties, creating ponds. The two dams at issue in this case — those on the Lytle and Stoyan properties — were erected long ago without any water rights or permits. Although petitioners sought to have the dams removed as illegal, the property owners were able to obtain permits to maintain them from the WRD.
The Lytle and Stoyan fishways involve alterations to the streambed on the downstream side of the relevant dam, creating a gradual slope from the top of the dam where a vertical drop previously had existed. The Lytle fishway "consists of various sized rocks leading in a ramp configuration up to the top of the Lytle dam, where a channel with a flat bottom and vertical sides * * * crosses the top of the Lytle dam to the Lytle pond." The Stoyan fishway "consists of a series of weirs [i.e., v-shaped, step-like structures on the streambed] with pools below each weir, leading in steps from the base of the Stoyan dam up to the top of the Stoyan dam." Unlike the Lytle dam, the Stoyan dam has no engineered "channel" over the dam. ODFW personnel refer to both styles of fishways as "channel-spanning fishways."
In November 2006, ODFW issued letters approving the Lytle and Stoyan fishways. Each letter of approval described the pertinent fishway, noted that ODFW had determined that it was functioning properly, and stated that the owner was responsible for maintaining it as approved. Petitioners sought reconsideration of ODFW's approvals, and requested and obtained a contested case hearing.
At the hearing, conducted by an administrative law judge from the Office of Administrative Hearings, petitioners argued that ODFW's approvals of the Lytle and Stoyan fishways were improper because the fishways did not provide fish passage at all times when passage is required under the relevant statutes and administrative rules. Petitioners relied in part on ORS 509.585(2), which prohibits "construct[ing] or maintain[ing] any artificial obstruction across any waters of this state that are inhabited, or historically inhabited, by native migratory fish without providing passage" for such fish. Petitioners' primary focus, however, was an administrative rule, OAR 635-412-0035(2)(a), which requires fishways at artificial obstructions that provide fish passage at all flows within the design streamflow range — that is, the entire range of flows within the obstructed stream, excepting the highest and lowest five percent. OAR 635-412-0005(13), (26), (30). Petitioners argued that the rule contemplates that ODFW will measure the flows within a stream, calculate a "design flow range," and
ODFW's position at the hearing, articulated in the testimony of the agency's fish passage coordinator, Stahl, was that calculation of the design flow range as contemplated by OAR 635-412-0035(2)(a) was unnecessary for "channel-spanning" fishways like those approved for the Lytle and Stoyan dams. Stahl explained that, by its very nature, a channel spanning fishway uses the entire flow of a stream, and that determining the "design streamflow range" when fish passage will be required is not necessary for such fishways, because they provide fish passage whenever water is flowing past the dam.
Petitioners argued, however, that OAR 635-412-0035(2)(a) applies to all the water in a stream system, and that ODFW's notion of "streamflow" did not account for water leaving the Lytle and Stoyan ponds through evaporation, seepage, and, most importantly, the outlet pipes that were required under the WRD permits. Petitioners observed, in that regard, that the Lytle and Stoyan permits required the installation of outlet pipes (or some other mechanism) to facilitate the evacuation of water to downstream permit holders with priority, required the passage of all "live" flows outside the storage season, and prohibited appropriation of any additional water outside of the storage season to maintain water levels.
ODFW's contrary view of OAR 635-412-0035(2)(a) was conveyed in the testimony of coordinator Stahl. Stahl acknowledged that, at times, water might not be flowing through the Lytle and Stoyan fishways even when water is flowing from various sources into the subject ponds, at least in part because water is sometimes discharged through the outlet pipes to satisfy the prior rights of downstream users. Stahl testified, however, that any water released downstream through outlet pipes in response to a downstream water right holder's "call" would not be considered by ODFW to be live streamflow. According to Stahl, "[i]f it's not going over the fishway [i.e., over the top of the dam], it's not in the stream." Stahl also suggested that, because OAR 635-412-0035(2)(a) was adopted at a time when channel-spanning fishways were uncommon, the rule reflected concerns more relevant to traditional fish ladder-type fishways, which divert a part of a stream for fish passage during the times that, in ODFW's estimation, the native fish would require passage.
After the hearing, the administrative law judge issued a proposed final order concluding that ODFW had complied with the applicable statutes and rules in approving the Lytle and Stoyan fishways. ODFW affirmed that conclusion. In its final order, ODFW announced that it had determined that fish passage is required "year-round" for the fishways in question, but only when there is adequate flow to allow migration through the fishways. ODFW explained that channel-spanning fishways like the ones at issue provide fish passage "as a matter of law" whenever sufficient streamflow exists for fish to migrate, and that, as such, ODFW could determine, without precise calculation of the design streamflow range, that the fishways provided fish passage at all flows within the design streamflow range. For purposes of that analysis, ODFW rejected petitioners' interpretation of "streamflow," concluding that "streamflow" is the water that actually moves through the system and over the dams, and does not include water that is stored and then later released through outlet pipes or lost to evaporation or seepage.
Petitioners sought judicial review of ODFW's final order, arguing, among other things, that (1) the rules do not allow ODFW to insert a flow requirement into the concept of "year-round fish passage"; (2) ODFW's construction of the term "streamflow" in OAR 635-412-0035(2)(a) as referring, in the particular context of dams with so-called
The Court of Appeals affirmed ODFW's order. It concluded that ODFW's construction of the term "streamflow" in OAR 635-412-0035(2)(a) is plausible. Noble, 250 Or. App. at 261-64, 279 P.3d 345. It also held that ODFW had plausibly interpreted the term "year-round fish passage" in a related rule, OAR 635-412-0035(1)(a), as incorporating a "caveat" — that, for channel-spanning fishways, "year-round fish passage" means passage at all times when water is flowing through the channel-spanning fishway itself. Id. at 265-266, 279 P.3d 345. Finally, the court rejected petitioner's contention that ODFW's interpretations are inconsistent with ORS 509.585(2), requiring that owners and operators of artificial obstruction provide passage for native migratory fish. Id. at 267-68, 279 P.3d 345. We allowed petitioners' petition for review to consider whether ODFW correctly interpreted and applied its own rules.
We first set out the relevant statutes and rules to provide the necessary background. The controlling statutes, which are codified at ORS 509.580 to ORS 509.645, were enacted in 2001. ORS 509.585(1) announces the state's policy of providing fish passage for native migratory fish in order to enhance and restore the state's "native salmonid populations." The statute then sets out the basic mandate through which that policy is to be carried out:
OAR 509.585(2). The statute further requires ODFW to enforce the fish passage requirement by directly ordering construction of fish passage at existing priority sites, to be determined based on a statewide inventory to be completed by ODFW, ORS 509.585(3), or by exercising approval authority over fish passage proposals that owners and operators must submit before an obstruction is constructed or altered, as provided in ORS 509.585(4).
ODFW has promulgated rules relating to its duties under the above statutes. One notable rule reiterates the basic prohibition expressed in ORS 509.585(2) and appears to express the overriding principle guiding ODFW's fish passage decisions:
OAR 635-412-0020(1). For purposes of that rule and related rules, ODFW has defined "fish passage" as
OAR 636-412-0005(18) (emphasis added). Insofar as OAR 635-412-0020(1) incorporates that definition of the term "fish passage," it is apparent that ODFW intends that its own "determinations" about which fish and which life history stages "require passage at the site" be at the forefront of every decision pertaining to fish passage.
ODFW's specific criteria for fish passage are set out in another rule, OAR 635-412-0035. Consistent with the definition of "fish passage" quoted above, that rule identifies a number of scientific "determinations" that ODFW must make when assessing a dam operator's fish passage plan: whether native migratory fish currently are or historically were present at the site; what life history stages of such fish require fish passage; and what dates of the year and conditions the dam operator must provide passage for fish. OAR 635-412-0035(1)(a)(A) to (C). ODFW is excused from making those determinations when "the owner or operator of an artificial obstruction chooses to provide year-round fish passage for all native migratory fish and life history stages." Id.
That rule also sets out various general requirements for fish passage at sites involving a discontinuity between upstream and downstream surface and streambed elevations. The most important of those requirements, for purposes of our present analysis, is set out in subsection (2)(a): "Fishways shall provide fish passage at all flows within the design streamflow range." OAR 635-412-0035(2)(a).
Finally, a subsection of OAR 635-412-0035(2) that addresses "requirements for specific types of fishways" contains a rule that appears to specifically address channel-spanning fishways:
OAR 635-412-0035(2)(k)(C).
With that regulatory framework in mind, we return to the parties' arguments. The parties appear to agree that, insofar as ODFW did not make the determinations described in OAR 635-412-0035(1)(a)(A) to (C) for the Lytle and Stoyan sites, the owners must "provide year-round fish passage for all native migratory fish and life history stages." OAR 635-412-0035(1)(a). The parties differ, however, as to what that "year-round" commitment actually entails. ODFW argues that, in the context of channel-spanning fishways, "year-round fish passage" simply means that the structure is always on and available any time water is flowing over the dam (and thus through the fishway).
Petitioners argue that the year-round fish passage alternative cannot be read as incorporating that particular limitation. Rather, petitioners argue, the vagaries of natural streamflow are the subject of the requirement in OAR 635-412-0035(2)(a) that fish passage be provided at all flows in the stream — not the fishway — within the design streamflow range. And although OAR 635-412-0035(2)(a) does limit the flow requirement, through the definitions of Low and High Fish Passage Design Flow, to "the period when [ODFW] determines that native migratory fish require passage," that limitation does not apply when the dam operator has opted to provide year-round passage. Thus, petitioners argue, dam operators who have chosen to provide year-round fish passage are required, under OAR 635-412-0035(2)(a), to provide fish passage throughout the year, whenever the flow in the surrounding stream is within the design streamflow range.
Another area of disagreement between the parties is the proper application of OAR 635-412-0035(2)(a)
Notably, the parties do not appear to disagree about the logic behind ODFW's explanation as to why it is excused from calculating design streamflow ranges for channel-spanning fishways — that, because such fishways provide fish passage at all times when water is flowing through them, and, because such fishways utilize all of a stream's flow, they necessarily provide passage through the "design streamflow range." What the parties do dispute is the validity of the assumption that underpins that explanation — that channel-spanning fishways utilize all of a stream's flow, as the terms "flow" and "streamflow" are used in OAR 635-412-0035(2)(a). At its core, their dispute is about the meaning of those terms in the context of that rule. ODFW interprets those terms, at least in the context of channel-spanning fishways, as referring to water that flows over a dam. Petitioners contend that "streamflow" should include all water flowing into the reservoir that is associated with a dam or, at the very least, all of the water flowing past the dam, whether over the spillway or through outlet pipes.
We begin our analysis by interpreting the primary administrative rule in controversy, OAR 635-412-0035(2)(a). When interpreting an administrative rule, we seek to divine the intent of the rule's drafters, employing essentially the same framework that we employ when interpreting a statute. State v. Hogevoll, 348 Or. 104, 109, 228 P.3d 569 (2010). Under that analytical framework, we consider the text of the rule in its regulatory and statutory context. Id. When, as here, an agency's interpretation of its own rule is challenged, we accord significant deference to that interpretation. We are required to affirm that interpretation if it is "plausible," that is, if it is not "inconsistent with the wording of the rule itself, or with the rule's context, or with any other source of law." Don't Waste Oregon Com. v. Energy Facility Siting, 320 Or. 132, 142, 881 P.2d 119 (1994).
OAR 635-412-0035(2)(a) provides that "fishways shall provide fish passage at all flows within the design streamflow range." As described above, 355 Or. at 446, 326 P.3d at 596, if ODFW's definition of "design streamflow range" is read into the rule, it appears to require fishways to provide passage at all streamflows except the lowest and highest five percent of average flow, during the period when ODFW "determines that native migratory fish require fish passage." (Emphasis added.)
In its final order, ODFW focused on the emphasized condition, stating:
Although the Court of Appeals reinterpreted ODFW's position in that regard
ODFW suggests that "year-round fish passage" incorporates a practical element that has no bearing on the "determination" described in OAR 635-412-0035(2)(a)(A)-(C). It argues that, for the particular purposes of channel-spanning fishways, which are designed to operate whenever water is flowing over the dam that they traverse, "year-round fish passage" means fish passage year-round, but only when water is flowing through the channel-spanning fishway. The Court of Appeals endorsed that interpretation as a "practical assessment of year-round fish passage that is consistent with the nature of a channel-spanning fishway":
250 Or.App. at 266, 279 P.3d 345 (emphasis added).
ODFW explains the theory behind that interpretation in the following way:
(Citation omitted.) Thus, ODFW views its proposed interpretation as applying in the context of channel-spanning fishways only, and contends that, for more traditional fishways, "year-round fish passage" would not be limited to times when water is present in the fishway itself.
Therein lies the problem. Given that, as ODFW acknowledges, the rule was adopted
Of course, ODFW is free to rescind the timing requirement of OAR 635-412-0035(1)(a) for channel-spanning fishways and other fishways designs that it did not have in mind when that rule was adopted. But, insofar as such a rescission would constitute an amendment of a prior rule, ODFW can only do so through proper rulemaking procedures under the Oregon Administrative Procedures Act (APA), ORS chapter 183. Until it does so, ODFW is bound by the rule and the clear meaning that it conveys — that, in the absence of determinations under OAR 635-412-0035(1)(a)(A) to (C) as to which fish require passage and when, a dam operator must provide fish passage throughout the year at all flows within the design streamflow range. See Burke v. Children's Services Division, 288 Or. 533, 538, 607 P.2d 141 (1980) (administrative rule remains effective statement of existing policy until repealed through proper Oregon APA procedures).
We thus return to the broader question posed in this review with the understanding that, even for channel-spanning fishways, a dam operator's choice to provide "year-round fish passage" under OAR 635-412-0035(1)(a) means that, under OAR 635-412-0035(2)(a), the operator must provide passage throughout the year at all streamflows that are "within the design streamflow range." The meaning of the term "streamflow" in that requirement is at the center of the parties' second major interpretive dispute. As noted above, 355 Or. at 451, 326 P.3d at 598, ODFW contends that, when a channel-spanning fishway is at issue, the "stream" is whatever water flows over the dam and, thus, through the channel-spanning fishway itself. That interpretation is essential to ODFW's theory that channel-spanning fishways comply with OAR 635-412-0035(2)(a) without any numerical calculation of the lowest and highest flows in the affected stream. According to that theory, a channel-spanning fishway necessarily provides passage within the range of streamflows that constitute the "design streamflow range," because it utilizes all of the "stream's" flow. But if "streamflow" refers to water flowing in the stream above the dam associated with the fishway, or includes water passing through outlet pipes at the base of the dam, there is no basis for claiming that the fishway necessarily provides passage at all flows within the design streamflow range, and ODFW's theory loses its logical force.
ODFW has not promulgated a definition of the term "streamflow" for purposes of OAR 635-412-0035(2)(a) and 1 the surrounding rules. It has, however, provided other pertinent definitions. Its rules define "stream" as "a body of running waters of this state moving over the surface of the land in a channel or bed, including stream types classified as perennial or intermittent and channelized or relocated streams." OAR 635-412-0005(39). The rules also define the term "channel," which is used in the quoted definition of "stream," as a "waterway that periodically or continuously contains waters of this state and has a definite bed and banks that serve to confine the water." OAR 635-412-0005(7).
ODFW contends that, when read in combination, those definitions support its contention that "streamflow" in OAR 635-412-0035(2)(a) refers only to water flowing over the top of a dam and does not include water that initially is stored behind the dam and that later evaporates, or water that is released downstream through outlet pipes. That is so, in ODFW's view, because such water is not "moving" in a "defined bed." Although many questions arise with respect to that explanation,
OAR 635-412-0005(18) (emphasis added). The emphasized wording in that definition clearly refers to the determinations that ODFW must make under OAR 635-412-0035(1)(a)(A) to (C) about the historical presence of and life cycle requirements of native migratory fish. Reading OAR 635-412-0020(1) in the context of OAR 635-412-0005(18) and OAR 635-412-0035(1)(a)(A) to (C), it is apparent that the rule is not flexible and aspirational but, instead, embodies a basic standard: the "fish passage" that dam operators are required to provide under OAR 635-412-0020(1) is passage that meets the biological/life cycle needs of the native migratory fish that historically were present, as determined by ODFW.
Returning to the issue before us, it would seem that there is no way to give general application to the interpretation of the term "streamflow" in OAR 635-412-0035(2)(a) that ODFW now proposes in a manner that would comport with the standard expressed in OAR 635-412-0020(1). If the "streamflows" at which dam operators must provide passage only take into account the water that flows over the top of the dam, then the necessity
ODFW might argue that we need not be concerned with how its present interpretation of OAR 635-412-0035(2)(a) would apply to other dam configurations, because it approaches the "design streamflow range" requirement differently at large dams with fish ladders and other more traditional fish passage devices. But our answer to that argument would be the same as our response to ODFW's proposal that the meaning of the term "year-long fish passage" in OAR 635-412-0035(1)(a) varies depending on the type of fishway involved. 355 Or. at 451, 326 P.3d at 598-99. ODFW is free to make different rules for different categories of dams and fishways, but until it does so, using proper rulemaking procedures under the Oregon APA, it is bound by the rules as promulgated. OAR 635-412-0035(2)(a), as promulgated, applies to all dams and fishways, and the plausibility of the meaning with that ODFW argues for must be assessed accordingly. As we have discussed above, ODFW's interpretation is implausible because, when uniformly applied, it conflicts with the basic requirement expressed in OAR 635-412-0035(1) that dam operators provide passage that meets the biological and life cycle needs of fish.
Before we conclude our analysis, we consider two final arguments raised by ODFW in favor of its interpretation of "streamflow" in the context of OAR 635-412-0035(2)(a). ODFW first suggests that its interpretation is the necessary consequence of its obligation to balance conflicting policies expressed in the controlling fish passage statute, ORS 509.585, and two other statutes pertaining to small dams and ponds like those at issue in this case, ORS 537.405 and ORS 537.409. ODFW describes the former statute as expressing a "preference" that passage be provided for native migratory fish that historically were present at a given site, and the latter two statutes as expressing a policy of "protecting the right of property owners to maintain small ponds existing on their property, even where those ponds are created by dams which potentially interfere with fish passage." ODFW contends that those two policy choices are in some respects inconsistent, and that it had to find some balance between them. ODFW contends that its interpretation of "streamflow" in OAR 635-412-0035(2)(a), in fact, strikes a reasonable balance between the two policies by "assum[ing] the existence of artificial obstructions and provid[ing] for the means by which passage can nonetheless be accomplished when there is water available for that purpose."
But, assuming that ORS 537.405 and ORS 537.409 have any relevance in this context, they do not justify the "balancing" that ODFW purports to accomplish by interpreting
ODFW also contends that its interpretation of OAR 635-412-0035(2)(a) is compelled by the fact that it has no control over the existence and design of the dams for which fish passage must be provided. ODFW notes, in that regard, that the legal authority for permitting dams and issuing and regulating associated water rights has been delegated to WRD. It follows, ODFW argues, that it must accept the existence and configuration of any WRD-permitted dam and base its fish passage requirements on the "streamflow" that actually passes over the dam, rather than the flow that would exist without the dam. For that reason, ODFW argues that it must exclude impounded water that is lost to evaporation and seepage, as well as water passing through the dam's outlet pipes, from its definition of "streamflow." As to the latter point, ODFW observes that outlet pipes are required by WRD as conditions of dam operators' water rights, and that the flows through such pipes are under the control of WRD.
While it may be true that WRD's authority over dam configuration and outlet pipes puts many components of a stream's flow beyond ODFW's control, we cannot see how that fact translates into a necessity that those components be ignored for purposes of fish passage. In fact, if ODFW were limited in its fish passage efforts to considering aspects of streamflow that are under its control, it would be precluded from imposing a streamflow range requirement altogether: The reality is that ODFW has no control over any aspect of streamflow, yet it still requires dam owners to provide fish passage within the "design streamflow range." We are not persuaded by ODFW's argument that it is required to interpret OAR 635-412-0035(2)(a) in a way that excludes from the meaning of "streamflow" those components of streamflow that are outside its control.
We conclude that ODFW's proffered interpretation of OAR 635-412-0035(2)(a) is implausible because its uniform application would conflict with the basic regulatory requirement at OAR 635-412-0020(1) — that dams must provide passage for native migratory fish at the times and under the conditions that are required by their life cycles. That interpretation was indispensible to ODFW's decisions approving the Lytle and Stoyan fishways. ODFW reasoned that, because channel-spanning fishways like the Lytle and Stoyan fishways utilize all of a stream's "streamflow," as that term is used in OAR 635-412-0035(2)(a), they necessarily provide passage at all streamflows within the design streamflow range, and can be deemed to comply with OAR 635-412-0035(2)(a) without any measurement of flows. Because ODFW's interpretation of OAR 635-412-0035(2)(a) is implausible, its basis for not making an actual determination of the design streamflow range, which the rule requires, is erroneous. We therefore remand to ODFW to apply OAR 635-412-0035(2)(a) to the two fishways — that is, to determine, at each site, the design streamflow range and whether the fishway provides passage at all flows within the design streamflow range during the period that ODFW determines fish require passage.
The decision of the Court of Appeals and the Final Order on Reconsideration of the Oregon Department of Fish and Wildlife are reversed, and the case is remanded to the Oregon Department of Fish and Wildlife for further action.
(Emphasis supplied.)
Noble, 250 Or.App. at 263-64, 279 P.3d 345 (emphasis in original). We agree with petitioners, however, that treating water traversing a dam through an outlet pipe as part of the "streamflow" would not render OAR 635-412-0035(2)(k)(C) superfluous. In fact, not every dam has, or is even required to have, an outlet pipe. WRD is allowed to waive the pipe requirement if it determines that a pipe is unnecessary or that an alternative for passing flows exists. OAR 690-020-0025. However, while we reject ODFW's argument that OAR 635-412-0035(2)(k) compels the interpretation it advocates for, that conclusion does not resolve the question before us — whether ODFW's interpretation is plausible within the meaning of Don't Waste Oregon.