# Reply Brief — Costle v. Republic Steel Corp.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Reply Brief
- **Published:** January 1, 1978
- **Citation:** 434 U.S. 1030

## Text

DEC 16 \977

MICHAEL RODAK Je. CUERK

No. 77-631

Gu the Supreme Court of the United States

OcToBER ‘TERM, 1977

Dovetas M. CostLeE, ADMINISTRATOR OF THE ENVIRON-
MENTAL PROTECTION AGENCY, AND GEORGE R. ALEx-
ANDER, JR., REGIONAL ADMINISTRATOR, PETITIONERS

Vv.
REPUBLIC STEEL CoOKPORATION, ET AL.

ON PETITION FOR A WRIT OF CERTIORARI TO THE UNITED
STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

REPLY MEMORANDUM FOR THE PETITIONERS

WADE H. McCREE, JR.,
Solic tor General,
Department of Justice,
Washington, D.C. 20530.

Gn the Supreme Court of the United States

OctToBER TERM, 1977

No. 77-631

Dova.as M. CostLe, ADMINISTRATOR OF THE ENVIRON-
MENTAL PROTECTION AGENCY, AND GEORGE R. ALEx-
ANDER, JR., REGIONAL ADMINISTRATOR, PETITIONERS

Vv.
ReEpusLic STEEL CORPORATION, ET AL.

ON PETITION FOR A WRIT OF CERTIORARI TO THE UNITED
STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

REPLY MEMORANDUM FOR THE PETITIONE!.s

Respondent Republic Steel Corporation has filed a
brief in opposition that disputes the petition’s charac-
terization of the opinion of the court of appeals and
attempts to distinguish the cases that, in our view,
squarely conflict with the decision below. We see no
need to add, in these respects, to what we have said
in the petition. Three points, however, deserve
elaboration.

1. Republic argues (Br. in Opp. 10, 17) that the
case is unimportant because “July 1, 1977, is now

(1)

2

passed’’ and because Congress has agreed on amend-
ments to the statute that “provide for extensions of
the July 1, 1977, compliance date.” These arguments,
of course, conflict. To the extent that the July 1, 1977,
date is extended, the problem that has arisen in this
case will arise again. The problem will recur when-
ever a deadline for compliance is reached, as long as
the Administrator has not promulgated nationwide
guidelines. Indeed, the problem will recur when the
Administrator attempts to enforce the 1983 deadline
for achievement of the best available technology eco-
nomically achievable. In view of the Administrator’s
decision not to issue guidelines for some categories of
point sources (see note 6, infra), the problem pre-
sented by this case will be important for as long as
polluters continue to be confronted with deadlines
under the statute.

In any event, contrary to the implication of the
brief in opposition, Congress has not agreed to pro-
vide extensions of the July 1, 1977, compliance date,
either generally or on a case-by-case basis. It has
agreed only to authorize the Administrator to grant
such extensions in cases where he determines that
specified conditions are met.

We have noted (Pet. 17-18 n. 18) that the Senate,
on August 4, 1977, passed a bill (S. 1952, 95th Cong.,
1st Sess.) giving the Administrator limited authority
to extend the compliance deadline, in terms essentially
identical to the Agency’s existing Enforcement Com-
pliance Schedule Letter (ECSL) program. The Senate
Committee stated that ‘*[i]his authorization of limited
flexibility granted to the Administrator will maintain

the pressure for compliance while at the same time
enabling the Administrator to use his discretion to
grant any justifiable extension” (S. Rep. No. 95-370,
95th Cong., Ist Sess. 62 (1977)).

The report of the Conference Committee was filed
on December 6, 1977; it adopts the approach of the
Senate bill. The bill agreed on by the conferees would
amend Section 309(a) of the Federal Water Pollu-
tion Control Act Amendments of 1972, 33 U.S.C.
(Supp. V) 1319(a), by adding a new paragraph
(5)(B), which would provide: *

The Administrator may, if he determines (i)
that any person who is a violator of, or any:
person who is otherwise not in compliance with,
the time requirements under this Act or in any
nermit issued under this Act, has acted in good
faith, and has made a coiiinitment (in the form
of contracts or other securities) of necessary
resources to achieve compliance by the earliest
possible date after July 1, 1977, but not later
than April 1, 1979; (ii) that any extension
under this provision will not result in the
imposition of any additional controls on any
other point or nonpoint source; (iii) that an
application for a permit under section 402 of
this Act was filed for such person prior to
December 31, 1974; and (iv) that the facilities
necessary for compliance with such require-
ments are under construction, grant an exten-
sion of the date referred to in section 301(b)
(1) (A) to a date which will achieve compliance

- 1123 Cong. Rec. H12698 (daily ed., December 6, 1977) ; see also
H.R. Conf. Rep. No. 95-830, 95th Cong., 1st Sess, (1977), repro-
2 tay. 128 Cong. Rec. H12704-H12722 (daily ed., December
6, .

4

at the earliest time possible but not later than
April 1, 1979.

This provision presupposes that the July 1, 1977,
deadline is enforceable, both under the existing law
and under the proposed amendment. The court of ap-
peals in this case has rejected that supposition, and
its decision would undercut the amended statute just
as it undercuts the existing one. Moreover, although
the amendment would give the Administrator a care-
fully-shaped discretion to extend or enforce the dead-
line, the court of appeals has denied him that
discretion, a denial that would preclude enforce-
ment under the amended Act whenever nationwide
guidelines have not been promulgated. The existence
of the discretion is important, for there is no cer-
tainty that Republic, or similarly situated polluters,
would be able to demonstrate to the Administrator’s
satisfaction that they were entitled to the extension
that the Administrator is authorized to grant.’

We therefore submit that the Court should review
this case, in order to restore to the Administrator the
authority to enforce the July 1, 1977, deadline in an
important class of situations.

2. Republic argues (Br. in Opp. 10) that we have
“failfed] to cite any litigation generated or affected

* The Conference Report confirms that the conference bili con-
tinues “the existing enforcement policy of the EPA.” 123 Cong.
Rec. H12715 (daily ed., December 6, 1977). The conferees also
state “that during such time of compliance, the Administrator may
require a point source to meet any interim levels of treatment as he
deems appropriate under the circumstances” (id. at H12715-

H12716). This, too, is impossible under the judgment of the court
of appeals.

5

by this decision, and widespread litigation cannot be
presumed * * *.” We did not cite such litigation
because, at the time the petition was filed, the effects
of the decision had not yet been felt. But now they
have been.

In Ford Motor Co. v. United States Environmental
Protection Agency, C.A. 6, No. 76-1463, decided De-
cember 6, 1977, a divided panel of the court of ap-
peals held that the Administrator could not object
to revisions that a State made in a permit to a major
polluter ‘‘because [his objection] was not based upon
any published regulation or guideline” (App. A, infra,
p. 2a).* Although the revision of the permit signifi-
cantly increased the amount of discharge allowed, the
panel, relying in part on the instant decision, con-
cluded that in the absence of federal guidelines no
permit revision is “outside the guidelines and require-
ment” of the Act, and thus no permit revision may be
objected to by the Administrator (id. at 21a). This
decision magnifies the effect of the present case by
making the promulgation of guidelines a precondition
not only to enforcement of the deadlines in the Act
but also to control of the amount of discharge any
polluter may be permitted to make. If the Ford panel
has correctly interpreted the instant decision, it means
that, in the absence of guidelines, the statute cannot
be enforced at all.‘

” 0 We have reproduced this opinion as Appendix A, infra. —

‘ The decision has also been relied on as a defense to enforcement

of permit provisions (compare Br. in Opp. 10). The United States

commenced an action to enforce the limitations contained in a
permit, and the district court granted summary judgment for the

6

3. We stated (Pet. 12 n. 9) that the decision below
“conflicts in principle” with Natural Resources
Defense Council, Inc. v. Train, 510 F. 2d 692, 710-
711 (C.A. D.C.), because the Court of Appeals for the
District of Columbia Circuit there invited the Admin-
istrator to pretermit the promulgation of guidelines
for certain categories of sources. Since the petition
was filed, the conflict with the District of Columbia
Circuit has become more pronounced. In Natural
Resources Defense Council, Inc. v. Costle (Runoff
Point Sources), C.A. D.C., No. 75-2056, decided
November 16, 1977,° that court once more invited the
Administrator to enforce the statute without promul-
gating guidelines.°

In Runoff Point Sources the Administrator argued
that it was impossible to promulgate guidelines for
certain types of sources and, indeed, that it was
impossible to determine discharge levels for them. He
therefore attempted to exempt those sources from the
permit requirement of the Act. The court of appeals

United States, leaving open only the issue of remedy. United States
v. Velsicol Chemical Corp., W.D. Tenn., Civ. No. C-75-462, sum-
mary judgment granted, November 10, 1976, Velsicol moved to
set aside the summary judgment, relying on the court of appeals’
decision here. The motion was argued and denied orally on No-
vember 28, 1977. Although this effort to capitalize on the present
decision was unsuccessful, there will doubtless be more such ef-
forts, and it is possible that not all of them will fail.

° We have reproduced this opinion as Appendix B, infra.

° The Administrator, relying on these invitations, has concluded
that the best administrative practice is to proceed without guide-
lines in certain categories of cases. This conclusion makes it inevit-
able that the problem presented by this case will recur when the
1983 deadline is reached.

7

held, however, “that Congress intended the NPDES
permit to be the only means by which a discharge
from a point source may escape the total prohibition
of §301(a),” and that the attempted exemption was
therefore ineffective and simply left each discharger
“subject to the total proscription of § 301” (App. B,
infra, pp. 42a-43a)—that is, forbidden to discharge
anything. If even a considered attempt by the Admin-
istrator himself to exempt some -sources from the
Act’s requirements is unacceptable, the mere failure
to promulgate national discharge guidelines in timely
fashion cannot reasonably operate to suspend the
Act’s requirements for a period of years.

Runoff Point Sources was a case in which tech-
nological infeasibility prevented the issuance of na-
tional guidelines. The court of appeals nevertheless
concluded that discharge limitations could be written
into individual (or area-wide) permits even in the
absence of national guidelines (App. B, infra, pp.
48a-53a). The court discussed its earlier opinion in
Natural Resources Defense Council, Inc. v. Train
and explained that “technological or admnistrative in-
teasibility [in issuing guidelines] was a reason for
adjusting court mandates to the minimum extent nec-
essary to realize the general objectives of the Act”
(App. B, infra, p. 52a; footnote omitted). The deci-
sion below to lift the July 1, 1977, deadline because
of the Administrator’s inability to promulgate the
guidelines is not “necessary to realize the general
objectives of the Act.” Rather, it defeats them.

8

For these reasons, in addition to the reasons dis-
cussed in the petition, it is respectfully submitted that
the petition for a writ of certiorari should be granted.

Wave H. McCres, Jr.,

Solicitor General.
DECEMBER 1977.

APPENDIX A
No. 76-1463

UNITED STATES COURT OF APPEALS

FOR THE SIXTH CIRCUIT

Forp Motor Company,

Petitioner,
v. On Peririon to review
Unrrep STATEs ENVIRONMENTAL action of the Admin-
PROTECTION AGENCY, | istrator of the United
R _ States Environmental
and "| Protection Agency.
STATE OF MICHIGAN,
Intervenor. |

Decided and Filed December 6, 1977.

Before: Weick and ENcEL, Circuit Judges, and WEINMAN,
Senior District Judge.*

Weick, Circuit Judge, delivered the opinion of the Court,
in which Wemm™an, Senior District Judge, joined. ENce, Cir-
cuit Judge, (pp. 22-32) filed a separate dissenting opinion.

Weick, Circuit Judge. The principal question before us is
whether the Environmental Protection Agency [EPA] properly
vetoed modifications in Ford Motor Company’s [Ford] existing
National Pollutant Discharge Elimination System [NPDES]

permit which were proposed by the Michigan Water Resource

* The Hon. Carl A. Weinman, Senior J United States District
Court for the Southern District of Ohio, sitting by designation.

la

252-125 O-77-2

2a

Commission [MWRC] pursuant to the Federal Water Pollu-
tion Control Act of 1972 [FWPCA] §§ 101, et seg, 33 U.S.C.
§§ 1251, et seq. Ford has petitioned for review of EPA's
veto of the permit modifications. We hold that the veto of
EPA was invalid because it was not based upon any published

regulation or guideline or on any express statutory provision.

I

In order fully to understand the issues, a review of the
pertinent provisions of the FWPCA is necessary. Congress de-
clared that the objective of the Act was “to restore and main-
tain the chemical, physical and biological integrity of the
Nation’s waters” § 101(a), 33 U.S.C. §1251(a). One of the
national goals of the Act was to eliminate by 1985 “the dis-
charge of pollutants into navigable waters.” § 101(a) (1). Fur-
thermore, Congress proclaimed by the Act its policy to have
the States participate in the prevention, reduction and elimina-
tion of pollution. § 101(b). Congress also stressed the need
for public participation “in the development, revision and en-
forcement of anv regulation, standard, effluent limitation, plan
or program established by the Administrator or any State ” and
required the publication of “regulations specifying minimum
guidelines for public participation in such processes.” § 101(a).

The Supreme Court in EPA v. State Water Resources Control
Bd., 426 U.S. 200, 204-05 (1976), noted one of the purposes
of the Act:

First, the Amendments are aimed at achieving maxi-
mum “effluent limitations” on “point sources,” as well as
achieving acceptable water quality standards. A point
ny “any discernible, confined and discrete con-

. from which pollutants are or may be dis-
charged”? An “effluent limitation” in turn is “any re-
striction established by a State or the Administrator on
quantities, rates, and concentrations of chemical, physical,
biological, and other constituents which are discharged

3a

:

point sources . . . including schedules of compli-
ance.”"® Such direct restrictions on discharges facilitate
enforcement by making it unnecessary to work back-
ward from an overpolluted body of water to determine

9§502 (14), 33 pom ee § 1362 (14) (1970 ed,

terms Pay own are defined in
$§ 502 (6), (12), 33 U.S.C. 8 (6), (12) (1970 ed., Supp. IV).
10 § 502 (i. 33 — § 1362 (11) ow IV). Sec-

“best practicable

July 1, 1977, and orate ty daly of the “best ey
. achie”. by J woRy $8301 (b) (1) (A),
(2) , U.S.C. $§1311 (b) (1) (A), (2) (A) ( ed.,

hy standards are retained as a supplementary
limitations, however, so that numerous point
be prevent water

below acceptable
$$ 1311 (e), 1312; 1313 (1970 Sec, H4301 3.

The EPA Administrator was required after consultation with
the appropriate federal and state agencies and other inter-
ested persons, to adopt regulations providing guidelines for
effluent limitations no later than October 18, 1973 and annually
thereafter. § 304{b)(2), 33 U.S.C. § 1314(b)(2). Once these
guidelines were provided they were to be followed when
NPDES permits were issued and were “to serve as the basis
of the administrator's veto of objectionable permits.” CPC
Int'l, Inc. v. Train, 515 F.2d 1032, 1039 (8th Cir. 1975).

4a

Compare E. I. duPont deNemours & Co. v. Train, 430 U.S.
——, n.24, 45 U.S.L.W. 4212, 4218 n.24 (U.S. Feb. 23, 1977).

The EPA Administrator also was authorized to promulgate
effluent limitations for classes and categories of existing point
sources which necessarily serve as a basis for denial of a
permit. See § 301, 33 U.S.C. § 1311; E. I. duPont deNemours
& Co. v. Train, supra; and American Iron and Steel Inst. v.
EPA, 526 F.2d 1027, 1041 (3d Cir. 1975).

The Court in the duPont case explained at 4217 the function
of the § 304(b) guidelines and at the same time their relation
to § 301 regulations:

As we noted earlier, § 304(b) requires EPA to identify
the amount of effluent reduction attainable through use
of the best practicable or available technology and to
“specify factors to be taken into account” in determining

Congress also provided a plan for implementing water quali-
ty standards, which addressed the problem of concentration
of pollutants in particular bodies of water, to meet the pur-
poses and goals of the FWPCA.

Section 303(a), 33 U.S.C. §1313(a) provides for state-
adopted water quality standards including those state standards
adopted prior to the FWPCA, which standards meet the re-
quirements of the FWPCA unless otherwise determined by the
EPA Administrator. For instance, on September 21, 1973 the

5a

State of Michigan, pursuant to the FWPCA, approved new
water quality standards which went into effect on December
12, 1973. Michigan Water Quality Standards, Michigan Ad-
ministrative Code Part 4; Rule 323.1041, et seq. Because EPA
took no action on the Michigan standards, they became the
federal water quality standards in that state. See § 303(c) (3),
33 U.S.C. § 1313(c) (3).

Moreover, the EPA Administrator, after issuing notice and
holding a public hearing, has authority to establish more re-
strictive effluent limitations to “discharges of pollutants from
a point source or group of point sources” which (even though
the effluent limitations under §301(b)(2) (best available
control technology) are applied to the point sources) would
still be interfering “with the attainment or maintenance of that
water quality in a specific portion of the ravigable
waters .. .”. §302(a) and (b), 33 US.C. §1312(a) and
(b).

The Supreme Court in the State Water Resources case also
explained a second purpose of the FWPCA, 426 U.S. at 205:

6a

U. S. C. § 1342(k) (1970 ed., Supp. IV). In short, the
permit defines, and facilitates compliance with and en-

forcement of, a preponderance of a discharger’s obliga-
tions under the Amendments.

13 § 402, 33 U.S.C. § 1342 (1970 ed., Supp. IV).

makes unlawful “the discharge of any Pollutant by any person’
ments, including 4 402 which establishes NPDES.

= oa, = terminates epceaiion Ge Batu Oe
permit program. #8 20a) (4). (5 od 33 US.C. §§ 1342
(a) (4), (5), 1342 (kk) (1970 Ty Bay

EPA is empowered by Congress to issue these permits.
§ 402, 33 U.S.C. § 1342. However, the Act also provides that
these permits may be issued by the States. If a State desires
to administer the program pursuant to the Congressional
policy of State control over water pollution, EPA must first
approve the State’s permit program. See §402(b). Once
the Administrator's approval is civen, the State may issue
NPDES permits as long as the permits meet the requirements
of the FWPCA. Among its duties under the permit program,
the State must “provide an opportunity for public hearing
before a ruling on each such application [for a permit]” and
provide the Administrator with “notice of each application
(including a copy thereof) for a permit.” § 402(b)(3) and
(4). On October 17, 1973 the EPA Administrator approved
the permit program of the State of Michigan. 39 F.R. 26061
(July 16, 1974).

In addition to EPA’s possible withdrawal of its approval of
a State’s permit program under § 402(c), EPA also retains a
veto power over a State’s issuance of an individual permit.
Section 402(d)(2)(B) provides:

No permit shall issue .. . if the Administrator within
ninety days ot the date of transmittal of
permit by the State objects in writing to

7a

of such permit as being outside the guidelines and re-
quirements of [the Act]. [Emphasis added]

The aggrieved party has ninety days from the date of denial
of the permit under § 402 in which to seek review of the
Administrator’s action, by petition therefor filed in the appro-
priate United States Court of Appeals. § 509(B)(1)(F), 33
U.S.C. § 1369(b)(1)(F).

Il

Ford operates a stamping plant in Monroe, Michigan
Each day the plant produces 40,000 steel automobile wheels,
16,000 bumpers and numerous coil springs. The plant dis-
charges into the Raisin River less than one mile above the
river's point of entry into Lake Erie, various metals, such as
chromium, copper, nickel and zinc.

On June 30, 1971 Ford applied for a NPDES discharge
permit for its Monroe plant.' On the application form at the
place noted for intake sources, Ford indicated that it planned
to pump 147 million gallons [MGD] of water per day from
Lake Erie, treat 10 MGD for the plant millwater supply, and
discharge the excess (137 MGD) into a plant-owned canal,
a dilution water canal, which in turn discharges the water
into the Raisin River. Later, in November 1973, Ford revised —
its permit application.

In August, 1974 EPA questioned among other things, Ford's
proposed use of the entire Raisin River as a “mixing zone.”
Under Michigan Water Quality Standards Rule 1043(n) a
“mixing zone” is “a region of a water body which receives a
wastewater discharge of a different quality than the receiving
waters, and within which the water quality standards as pre-
scribed by these rules do not apply.” The State of Michigan

nr ae ed for the permit under the Rivers and Har-
bors Aci of ~ Sa Pua te ae ean
OO. RUSC tae _

8a

does not allow use of more than 25% of the strearn as a mixing
zone “unless it can be demonstrated [to the MWRC] that
designation of a greater area or volume of streamflow will allow
passage of fish and fishfood organisms sc that effccts on their
immediate and future populations ere negligible or not mea-
surable.” Rule 1082 of the Michigan Water Quality Standards.

EPA, based on a bioassay conducted by the MWRC in April,
1973, also questioned Ford’s ability during the Raisin River's
low flow period, to meet the water quality standard concen-
tration limits.

In September, 1974 EPA again questioned the use of the
entire width of the Raisin River as a mixing zone and sug-
gested that Ford use only one-half of the river. MWRC soon
responded to the EPA suggestion and revised the mixing
zone to include “the total flow in the River Raisin from the
point of discharge to the Detroit Edison Power Plant intake”
(which intake is about 900 feet distant from the Ford dis-
charge). MWRC stated that “(t]he effluent restrictions
placed on the Ford Motor Company Monroe Plant discharge
are more restrictive than the promulgated guidelines.”

On December 20, 1974 the State of Michigan, pursuant
to the approval of MWRC, issued Ford the NPDES permit
on its Monroe Plant. The permit included the mixing zone
as suggested to EPA by MWRC, supra. EPA did not veto
the permit and it became effective.

On July 11, 1975 MWRC at Ford’s suggestion, sent to EPA

brief to this Court, stated:

9a

pollutants to levels specified in the permit and to assure
compliance with the concentration limits in the water

Quality Standards. The State proposes to allow flow
augmentation (dilution) to meet the water quality
dard concentration limitations. Monitoring for
pliance with the BPT limitations is to be done
dilution. Monitoring for compliance with the
quality standards concentration limitations is to be

dt
|
fly
Tale
patel
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plied and that the flow augmentation was not being used to

252-125 O- 77-3

108

“dilute to meet [the best available technology economically
achievable]”. In fact, in the next three communications be-
tween EPA and MWRC, no objections were raised with respect
to the use of flow augmentation.

On October 1, 1975 however, in a letter from Dale S. Bryson,
the Region V EPA Deputy Director Enforcement Division, to
Roy Schrameck, MWRC’s Division Permit Coordinator, EPA
again questioned whether fish passage on the river was pos-
sible due to the large size of the mixing zone, and requested
studies from MWRC pursuant to Rule 1082 of the Michigan
Water Quality Standards to demonstrate fish passage in the
river. More importantly, EPA expressed displeasure with the
use of flow augmentation to meet the water quality standards.
Mr. Bryson said:

The plan to allow the company to treat their metal
plating wastes to the BPT level and then dilute with
cooling water and possibly flow augmentation to meet
water quality standards is in contiict with the intent of
the Federal 1972 Amendments and EPA Policy. Dilu-
tion should not be utilized unless additional treatment
is unavailable or economically unreasonable. Treatment
at the BPT level is not usually the point at which addi-
tional treatment is considered economically unreasonable.
Therefore, please submit any documentation which pur-
ports to demonstrate that additional treatment is un-
reasonable and that flow augmentation is the only avail-
able approach. This should be done on a process by
process and parameter by parameter basis and should
also include the anticipated effect this additional pump-
age would have on entrainment and impingement impacts
on the fish population in the surrounding nursery and
spawning areas and migratory routes.

Despite the above letter, on October 7, 1975 Robert J.
Courchaine, Chief Engineer of MWRC formally submitted to
EPA (Bryson) the proposed modifications on Ford’s Monroe
Plant permit which included a control of heavy metal con-

lla

centration that would assure uninterrupted fish passage “ac-
complished on a continuing basis by low-flow augmentation,
an acceptable water quality management tool.” Mr. Cour-
chaine emphasized that the proposed permit modifications
required filtration as an additional BPT treatment step.?

On October 17, 1975 Paul Zugger, Assistant Regional En-
gineer of the Bureau of Water Management of MWRC wrote
Harry Clemens of EPA, informing him that the chlorine limit
in Ford’s permit would be revised to facilitate fish passage in
the mixing zone.

On October 20, 1975 Bryson of EPA wrote a letter to Miller
of EPA requesting information “as soon as possible as to the
national policy” on flow augmentation. Bryson said that his
office was opposed to the use of “flow augmentation to achieve
lower concentration in the effluent to comply with their Water
Quality Standards.”

On November 3, 1975 Mr. Courchaine of MWRC, pursuant
to Bryson’s letter to MWRC on October 1, 1975, requested
from Ford “documentation to justify the use of flow aug-
mentation” which would “show why treatment beyond [the]
present proposal, BPT plus filtration, to meet water quality
standards is economically and/or technically unfeasible.”

In response to Bryson’s request of October 20, 1975 con-
cerning the subject of flow augmentation to achieve water

2 The permit modification as to discharge limitations be-
ginning on July 1, 1977 states:

Flow or dilution, can be used to meet these limi-
tations and only if, the following treatment facilities, when
oes © ane = um effluent, are not of
achieving limitations

—destruction of cyanide oxidation

—reduction of bw Ay A — to the trivalent form

—neutralization

eee

Such facilities constructed from plans and specifications
Sooroved by the Chief Engineer of the Michigan Water Re-
sources Commission.

12a

quality standards, Miller on January 14, 1976 sent to Bryson
his written memorandum, which memorandum concluded that
flow augmentation at the Ford Plant was unacceptable. Miller
stated:

You ask whether the proposed flow augmentation to
meet water quality standards is a valid approach and
whether it might set a national precedent for dischargers
in any area where sufficient water is available for dilu-
tion pumping.

To the extent that concentration limitations alone do
not control the actual amount of pollutants discharged,
they may be generally considered as protection against
localized acutely toxic conditions that would endanger
aquatic life or serve as a barrier to free passage to up-
river reaches. This being the case, achievement of con-
centration limits per se becomes a requirement for dif-
fusion of the discharge and the specification of a mixing
zone indicates the degree of diffusion required.

An important element of the case in question, and
any similar case, is that BPT reductions or, ultimately,
the BAT reductions of pollutant pounds discharged or
any more stringent reductions required by load allo-
cations must be met before flow augmentation may be
allowed.

In the instant case, the upstream concentration of
pollutants expressed as pounds based on total river flow
plus the BPT allowance of pounds of pollutants dis-
charged after dilution exceed the in-stream concentration
limitations. We, therefore, do not see flow augmentation
as being consistent with the requirements of the in-stream
concentration limits contained in the water quality
standards.

As regards to national policy and the establishment of
precedent, it would not appear that any policy guideline
can be laid down either flatly prohibiting or approving
flow augmentation to achieve a given water quality stan-

13a

dard, nor that the decision for or against such dilution in
a given case can be cited as a precedent for a general
position.

Please note that there is a definite distinction between

the effluent concentration limits and the in-stream con-
centration limits specified in water quality standards. It

Therefore, on January 22, 1976 Mr. Bryson of EPA informed
Mr. Courchaine of MWRC by letter that MWRC’s proposed
permit modifications on the Ford Monroe Plant were denied.
Bryson stated that “[t]reatment to BPT supplemented by
dilution to meet water quality standards is not compatible
with the requirements of [the FWPCA].” Attached to the
letter was Miller's memorandum of Janmary 14, 1976, supra,
as justification for EPA’s action.? EPA stated to MWRC
that Miller's memorandum made “two important points about

the inconsistency of the proposed permit with national policy.”

l4a

question of flow augmentation to achieve diffusion
oriented limitations can be considered.

On April 20, 1976 pursuant to § 509(b)(1)(F) of the Act,
33 U.S.C. § 1369(b)(1)(F), Ford petitioned this Court to
review the January 22, 1976 decision of EPA denying the
permit modifications for the Monroe Plant.

Ill.

Initially, EPA contends that actions taken by MWRC sub-
sequent to its veto of the proposed permit modifications have
mooted this case. Specifically, EPA argues that in May 1976
which was subsequent to the fiung by Ford of its petition for
review in this Court, MWRC decided not to continue to
support the issuance of the NPDES permit on the Monroe
Plant; agreed that EPA’s refusal to concur in issuance was
reasonable; and ordered an adjudicatory hearing to reconsider
the need for the permit modifications. Therefore, EPA con-
cludes that judicial review at this time is not appropriate
because no controversy exists. It asserts that only if MWRC
and/or EPA later refuse to issue the permit modifications,
after an adjudicatory hearing record has been developed,
should this Court review the action of EPA

The State of Michigan as an intervenor also requests that
this Court defer ruling on EPA’s denial of the permit mod-
ifications until the administrative record can be developed
through an adjudicatory hearing. The State concedes that
it forwarded to EPA the proposed permit modifications with-
out an adequate factual review.

The statute at § 509(b)(1)(F) is quite clear however, in
conferring upon this Court jurisdiction to review the EPA
Administrator's action for denial of any permit under § 402.
There is no dispute by any party that EPA denied Ford
modification on its Monroe Plant permit under § 402(d) (2)
(B). We hold therefore, that the Administrator’s action is
properly before this Court subject to review. Mianus River

15a

Preservation Comm. v. Administrator EPA, 541 F.2d 899, 909
(2d Cir. 1976) and Shell Oil Co. v. Train, 415 F. Supp.-70,
71-18 (N.D.Cal. 1976). Cf. E. I. duPont deNemours & Co.
v. Train, supra, at 4219. The factual record in this case has
been sufficiently developed that this Court can review ade-
the action of EPA.

OE ie & ce contin Oe ects hs a
Michigan to issue the revised permit with the proposed modi-
fications, and the FWPCA does not foreclose the State from
conducting further hearings in the matter. Nevertheless,
Ford is entitled under the statute to have its day in court, and
post-denial action by the State of Michigan (which obviously
was reacting to EPA’s veto of the proposed permit modifi-
cations) neither changes the action already taken by EPA
nor moots this case. An actual controversy still exists between
Ford and EPA. Accordingly, we will proceed to the merits
of this case.

IV.

As noted above, the EPA Administrator has authority to
refuse a NPDES permit proposed by the State if the Admin-
istrator, within ninety days of the State’s transmittal of the
proposed permit, objects to it in writing “as being outside the
guidelines and requirements” of the FWPCA. § 402(d)(2)

B).
i argues that this statute provides the Administrator
with but narrow review powers over a proposed permit when
a State is supervising its own permit program under the
FWPCA. Ford contends that EPA is exercising control over
the effluent limitations in individual States on a plant-by-plant
basis, even though the permits as in the present case, are
not inconsistent with the published guidelines and explicit
statu requirements under the Act.

Although the issue as to whether the proposed permit
modifications are or are not outside the guidelines and re-

l6a

quirements of the FWPCA is tle main question to be decided
in this case, there is little doubt that EPA has limited review
powers over the issuance of a proposed permit submitted
by a State pursuant to the State’s own NPDES permit program
under § 402. The FWPCA does vest final review authority
with the Administrator for permits issued by the states (see
the duPont case, supra, at 4219 n. 27) but since it was
“believed that the states would shoulder the primary burden
of issuing permits to individual dischargers,” the “EPA duties
were to be restricted to assuring that the state followed the
procedural guidelines and to reviewing individual permits of
major significance.” Natural Resources Defense Council, Inc.
v. Train, 166 U.S.App.D.C. 312, 510 F.2d 692, 709 (1975).
See 1972 U.S. Code Cong. & Ad. News 3737. Cf. Mianus
River Preservation Comm. v. Administrator, EPA, supra.

The permit involved raises an issue of “major significance,”
namely, the use of low-flow augmentation to meet water
quality standards. This issue may have a major impact on
many dischargers in the United States.

We now proceed to determine whether under § 10 of the
Administrative Procedure Act, the Administrator's action was
“arbitrary, capricious, an abuse of discretion or otherwise not
in accordance with law.” 5 U.S.C. § 706(2)(A). See Buck-
eye Power, Inc. v. EPA, 481 F.2d 162, 171 (6th Cir. 1973);
Appalachian Power Co. v. Train, 545 F.2d 1351, 1356 (4th
Cir. 1976); and Sierra Club v. EPA, 176 U.S.App.D.C. 335,
540 F.2d 1114, 1123-24 (1976), cert. denied. — US. —,
45 U.S.L.W. 3667 (U.S. Apr. 4, 1977).

Under the “arbitrary and capricious” standard, the Supreme
Court in Citizens to Preserve Overton Park v. Volpe, 401 U.S.
402, 416 (1971) stated:

[T]he court must consider whether the decision

17a

and careful, the ultimate standard of review is a nar-
row one. The court is not empowered to substitute its
judgment for that of the agency. [citations omitted]

Quoted with approval in Buckeye Power, Inc. v. EPA, supra,
at 171.

Furthermore, EPA is held to a high standard of articulation.
Id., quoting from Environmental Defense Fund, Inc. v. EPA,
150 U.S. App.D.C. 348, 465 F.2d 528, 540-41 (1972).

Ford argues that EPA objected to the use of low-flow

augmentation to meet water quality standards under the
FWPCA solely upon EPA’s own ad hoc policy determination
as to effluent limitations at the Monroe Plant. Ford further
contends that there are no published regulations, guidelines
or specific statutory requirements under the FWPCA pro-
hibiting the use of low-flow augmentation to meet water quality
standards. Ford concludes therefore, that EPA exceeded its
veto authority when it denied Ford the permit modification
because § 402(d)(2)(B) allows EPA to object only to the
issuance of NPDES permits which are outside the guidelines
and requirements of the FWPCA, and not upon the EPA’s
private policy determination. In fact, Ford maintains that
EPA’s action in the present case denied Ford as a permittee,
its statutory right to a hearing on the issues related to the
permit. Ford argues that although § 402(b)(3) provides the
permittee a right to a hearing under a state's permit program,
EPA in effect renders this statutory right to a hearing a nullity
when it declines to issue a NPDES permit for any policy
reason, rather than upon “previously promulgated geveric
guidelines.” We believe that the main thrust of Ford's argu-
ment is well taken.

It is clear from the record in this appeal that EPA had
no prior well-established agency policy which prohibited
the use of low-flow augmentation to meet water quality
standards. In fact, in August 1975 two EPA officials appear

252-125 O- 77-4

18a

to have indicated initially that flow augmentation was proper.
When Bryson, the Region V EPA Deputy Director, in October
1975 requested from Miller of EPA a memorandum on flow
augmentation, Bryson did not even know the national policy
of the agency on flow augmentation. Miller's response in
a memorandum, the basis for EPA’s veto of the proposed
permit modifications, did not cite any statutory provision,
regulation or guideline. As already noted, Miller stated:

[I]t would not appear that any policy guideline can be
laid down either flatly prohibiting or approving flow
augmentation to achieve a given water quality standard,
nor that the decision for or against such dilution in a
given case can be cited as a precedent for a general
position.

EPA’s November 1976 memorandum from the office of its
General Counsel, on the subject of low-flow augmentation,
contains this statement:

The [FWPCAj is silent on the question of whether this
alternative is proper and legal as a method of meeting
water quality standards based on concentrations.

Nonetheless, this memorandum stated that the EPA policy
clearly discouraged the use of flow augmentation or dilution
“as an alternative to treatment for meeting water quality
standards,” developing its reasoning from analogies on the
statutory requirements under § 102(b)(1) of the Act, 33
U.S.C. § 1252(b)(1), and § 110(-)(2)(B) of the Clean Air
Act, 42 U.S.C, § 1857c-4(a)(2)(B). Such a position would
undoubtedly be a good reason for publishing regulations or
guidelines in the future on this subject, but it can hardly be
a justification for vetoing the proposed permit modifications
in the present case when the reasoning was adopted ten
months after the veto. This Court can consider only the

19a

grounds asserted by EPA in its letter of January 22, 1976
which vetoed the permit modifications.*

The Supreme Court in Burlington Truck Lines, Inc. v.
United States, 371 U.S. 156, 168-69 (1962), stated, with refer-
ence to SEC v. Chenery Corp., 332 U.S. 194, 196 (1947):

The courts may not accept appellate counsel's post
hoc rationalizations for agency action; Chenery requires
that an agency’s discretionary order be upheld, if at
all, on the same basis articulated in the order by the
agency itself:

“[A] simple but fundamental rule of adminis-
trative law ... is .. . that a reviewing court, in

Ibid.

For the courts to substitute their or counsel's dis-
reap te ly ed ealipr 7 eapmendcdyer yer om yalbramg
the orderly functioning of the process of judicial review.
This is not to deprecate, but to ‘vindicate (see Phelps
Dodge Corp. v. Labor Board, 313 U.S. 177, 197), the
administrative process, for the purpose of the rule is to
avoid “propel[ling] the court into the domain which

has set aside exclusively for the administrative
agency.” 332 US., at 196.

See also Atchison, Topeka & Santa Fe Ry. Co. v. Wichita Bd.
of Trade, 412 U.S. 800, 806-07 (1973) (Marshall, J., speaking
for the plurality). Cf. Hooker Chemical & Plastics Corp. v.
Train, 537 F.2d 620, 634, 636 (2d Cir. 1976).

a pe Speer 1976 memorandum 8, EPA’s Ky wy ht
failed any lished guidelines
oF do wos af ee eet cuamnitation > mauct Galer quality canmabes

20a

Moreover, EPA’s contention that Ford did not provide the
necessary information to EPA or MWRC on the need for
flow augmentation at the Monroe Plant and other related
arguments cannot support EPA’s veto because such “dei-
ciencies” were not included in any part of EPA’s veto letter.
In other words, they are an afterthought.

An examination of the various statutory provisions of the
FWPCA indicates that Congress among other things, directed
EPA to publish guidelines and regulations setting forth the
effluent limitations applicable to point sources. For example,
§ 304(a) required EPA to publish “criteria for water quality
accurately reflecting the latest scientific knowledge” as to
most aspects of water pollution and its effect on the aquatic
environment, as well as to develop and pubiish information on
the factors necessary to measure, restore and maintain water
quality and to protect the aquatic environment. Section
304(b) required EPA to publish “regulations, providing for
effluent limitations.” Section 301(b) required EPA to publish
regulations on effluent limitations for point sources. Section
302 directed EPA to publish regulations on water quality
related effluent limitations where such limitations were neces-
sary. Section 306(b) ordered EPA to “propose and publish
regulations establishing Federal standards of performance for
new [pollution] sources within” various industries. Section
307 required EPA to publish toxic and pretreatment effluent
standards. These regulations and guidelines if violated,
would serve as a basis for vetoing a NPDES permit. Compare
E. I. Dupont deNemours & Co. v. Train, 430 U.S. — n. 24,
45 US.L.W. 4212, 4218 n. 24 (U.S. Feb. 23, 1977) and
American Iron and Steel Inst. v. EPA, 526 F.2d 1027, 1041 (3rd
Cir. 1975) with CPC Int'l, Inc. v. Train, 515 F.2d 1032, 1039
(8th Cir. 1975). See also §§ 402(a)(1) and (b)(1)(A).

EPA has not met with difficulty in publishing necessary
regulations and guidelines within the time framework con-
templated by Congress for most industries.

2la

The absence of such regulations and guidelines however,
as well as the lack of specific statutory requirements under
the Act relating to the use of flow augmentation to meet water
quality standards precludes EPA’s denial of a modification on
a NPDES permit as to flow augmentation under § 502(d) (2)
(B) because such modification is not “outside the guidelines
and requirements” of the Act. Cf. Republic Steel Corp. v.
Train, —— F.2d —, No. 76-1557 (6th Cir. June 23, 1977).
Without such guidelines and requirements, EPA could arbi-
tarily deny permit modifications and render state NPDES
permit programs a farce. An industry would have difficulty in
preparing its application for a permit without such guidelines.
As Ford argued, a permittee would effectively be denied a
hearing on issues related to the permit. In other words, EPA
would be making decisions unfettered by administrative con-
straints, despite the congressional policy specifically providing
therefor. § 101(e).

In the present case we are unable to find any “guidelines
and requirements” in the FWPCA, or guidelines promulgated
pursuant thereto upon which EPA on January 22, 1976 relied,
to deny the NPDES permit modifications on the Ford Monroe
Plant. Therefore, EPA’s veto action under § 402(d)(2)(B)
was a clear error in judgment and was arbitrary, capricious
and an abuse of discretion. Ad hoc national policy determin-
ations developed through internal agency memoranda stand-
ing alone without promulgating regulations or guidelines
through public notice and/or an opportunity for a public

hearing, are not proper procedures for EPA to enforce the
FWPCA. See Associated Indus. of Alabama v. Train, 9 ERC

1561, 1568-69 (N.D.Ala. Dec. 6, 1976). Cf. Natural Resources
Defense Council, Inc. v. Train, supra, at 706-10.

If the State of Michigan conducts further hearings on the
proposed permit modifications at the «ord Monroe Plant,

Ford and EPA may appear at these hearings to present their
respective contentions with respect thereto.

22a

Accordingly, EPA’s veto of the proposed permit modifi-
cations at the Ford Monroe Plant is set aside. This case is

remanded for further proceedings not inconsistent with this
opinion.

Encex, Circuit Judge, dissenting.

I respectfully dissent. The practical effect of the majority
opinion is to hold that if a pollution discharge is not expressly
forbidden by the FWPCA, EPA regulations or state-adopted
water quality standards, it is permitted.

In my opinion such a view runs counter both to the history
and text of the Act, and in particular to the language of Sec-
tion 301(a) of the Act, 33 U.S.C. §1311(a), which in a
straightforward manner states:

Except as in compliance with this section and sections
302, 306, 307, 318, 402, and 404 of this Act [33 U.S.C.
§§ 1312, 1316, 1317, 1326, 1342, 1344], the discharge of
any pollutant by any person shall be unlawful.

The use of flow augmentation is not authorized by any of the
exceptions referred to in Section 301(a) of the Act.

As pointed out in the majority opinion, Michigan adopted
its water quality standards effective December 12, 1973.
Because the Administrator did not express his disapproval,
they became standards under the FWPCA. Section 303(c)
(3) of the Act, 33 U.S.C. § 1313(c)(3). Michigan’s adopted
water quality standards do not provide for flow augmentation
even by inference. The EPA was not accorded the oppor-
tunity to pass upon the question of flow augmentation when
the standards were submitted to it, there being no suggestion
that the issue was ever raised.

Ford’s Monroe plant is currently subject to a permit which
does not include any authorization for the use of flow augmen-
tation as a means of meeting the applicable water quality

23a

Only six months later, however, a modification was sent to

Taking advantage of the fact that the Michigan water
quality standards are stated on a per liter basis, the effect of
the proposed permit modification would be to allow Ford to
dilute its pollution to achieve the water quality standards
without a reduction in the amount of pollutants it was dis-
charging. With the modification Ford proposes to dump
more than twice as much metallic sludge into the Raisin River
as has previously been permitted.

it te twee that if Michigan water quality standards do not
condone, neither do they expressly condemn flow augmenta-
tion as a means of achieving acceptable concentrations of dis-
charged pollutants. And it is true that the Administrator's
power to veto under the Act may be exercised only when a
permit is “outside the guidelines and requirements” of the
Act, Section 402 (d)(2) of the Act, 33 U.S.C. § 1342(d) (2).
On this basis the majority holds that because it is unable to
find any guidelines and requirements in the FWPCA or regu-
lations promulgated under it upon which the EPA could
rely to sustain its January 22, 1976 veto of the NPDES permit

Ford £ eggrovel fer Sow suqmentation i= 161.
onan for a permit under the Rivers and Harbors
applied, ES, =.

permit
water could divert from Lake Erie. The modification,
- Michigan, would thus allow Ford to exceed even its 1971

24a

modification, therefore the action was arbitrary and an abuse
of discretion.? It is this point at which I depart from the
majority. In my view it is precisely because flow augmenta-
tion is not specifically approved as a means of achieving
acceptable concentrations under Michigan’s water quality
standards that the EPA is justified in intervening. Further,
I am unwilling to compel that agency to promulgate regula-
tions respecting flow augmentation as a condition to exer-
cising its veto powers upon the facts here.

To be lawful under Section 301(a) of the Act, 33 U.S..C.
§ 1311(a), a di e must satisfy carefully delineated excep-
tions set forth in the other sections of the Act. In other
words, unless a discharge of pollutants can be shown to be
legal, it is illegal under Section 301(a).*

The effect of the majority opinion is to require the EPA
to point to a regulation which outlaws the flow augmentation
technique before it can act. No doubt the potential means
of evading the operation of the Act are myriad if the plain
command of Section 301 is to be ignored. It was, in my
jeagment, precisely because such loopholes could not be
anticipated that Congress couched the Act in such bold, pro-
hibitory terms.*

While it is not necessary to hold that flow augmentation is
implicitly forbidden by the FWPCA, there is much within

ened eee ee te aves the idee thet the EPA's ection
Us pent we ee ees ane for
ff ‘the only’ one of "478. NPD
Sa eM, aca ee

s use of its

caeamaary wet power. ‘This
3 Obviously
Keministrator’s' action in disapproving the permit modification’, See

(3rd Cir. 1975).

4 The breadth of Section 301, of qousen, 1 cthegsther consictent with
the national goal of the Act“. that the discharge of pollutants into
the Act, 33 USC. $1251 (a) (1). 0) (2)

25a

the Act and its history to support such a view. Congress
chose the phrase “effluent limitation” to describe the means
for obtaining water quality. Section 302 of the Act, 33 U.S.C.
§ 1312.5 As we noted in Big Rivers Electric Corp. v. EPA,
523 F. 2d 16 (6th Cir. 1975), cert. denied 425 U.S. 924 (1976),
the concept “emission limitation” in the Clean Air Act requires
regulation of “the amount of [a pollutant] which may be in-
cluded in the emission from a given source.” Id. at 22
(emphasis in original). A consistent construction of “effluent
limitation” in the FWPCA suggests a similar intent on the
part of Congress to achieve water quality by controlling
quantity. Indeed, the definition of “effluent limitation” in
the FWPCA denotes a concern for restricting the amount of
pollutants:

The term “effluent limitation” means any restriction
established by a State or the Administrator on quantities,
rates, and concentrations of chemical, physical, biological,
and other constituents which are discharged from point
sources into navigable waters... .

Section 502(11) of the Act, 33 U.S.C. § 1362(11); See Amer-
ican Iron & Steel Institute v. EPA, 543 F. 2d 521, 528 (3d
Cir. 1976).

Such a view is fully substantiated in the legislative history.
The goals and policy of Congress, as declared in the statute
itself, include the prevention, reduction and elimination cf
pollutants from the nation’s water. Section 101(b) of the
Act, 33 U.S.C. § 1251(b). The statute, needless to say, does
not speak in terms of dilution. It is significant, however, that
the Conference Committee replaced the words “abate” and
“abatement” with “reduction” and “elimination” in Sections
101 and 102, 33 U.S.C. §§ 1251, 1252. S. Conf. Rep. 92-1236,

verna Ford's’ Monroe plant and thousands of other” point wurces,

formally entitled - National Pollution Discharge
402 of the Act, 33 U.S.C. § 1342 Ma (Entchesis waded).

252-125 O- 77-5

26a

92d Cong., 2d Sess. (1972), reprinted in 2 U.S. Code Cong.
& Admin. News at 3778 (1972). Flow augmentation, it is
agreed, simply reduces the concentration of pollutants intro-
duced into a body of water. It does not, however, eliminate
or reduce the quantity of the pollution.

A further indication of national policy is to be gleaned
from Section 102(b)(1) of the Act, 33 U.S.C. § 1252(b)(1),
which states:

In the survey or planning of any reservoir by the
Corps of Engineers, Bureau of Reclamation, or other
Federal agency, consideration shall be given to inclusion
of storage for regulation of streamflow, except that any
such storage and water releases shall not be provided
as a substitute for adequate treatment or other methods
of controlling waste at the source. (Emphasis added).

The flow augmentation contemplated by Section 102(b) (1)
involves the release of impounded waters at a time of low
flow. The Act notes that such augmentation shall not be a
substitute for “adequate treatment or other methods of con-
trolling waste at the source.”®

The Conference Committee Report noted with respect to
Section 102(b) (1):

The Conference substitute specifically bans pollution
dilution as an alternative to waste treatment. At the
same time it recognizes that stream flow augmentation
may be useful as a means of reducing the environmental
impact of runoff from non-point sources. The Conference
substitute also recognizes that stream flow augmenta-
tion may be useful for recreational, navigation, and other
purposes. Finally, section 102(b) [33 U.S.C. § 1252(b)]
specifically sets forth that any calculation for the need

éThe EPA takes the view that “adequate treatment” means the
best available technology (BAT). Memorandum from EPA General
Council to Regional Administrators and State NPDES Directors at 4.
(November 8, 1976). See generally Section 301(b)(2) of the Act,
33 U.S.C. § 1311(b) (2).

27a

for and value of stream flow augmentation to reduce the
impact of pollution mu « be determined by the Adminis-
trator of the Environmental Protection Agency.” (Em-

phasis added).

S. Conf. Rep. No. 92-1236, 92d Cong., 2d Sess. (1972), re-
printed in 2 U.S. Code Cong. & Admin. News at 3778-79
(1972).

Without question, Ford’s Monroe plant is a “point source,”
as defined in Section 502( 14) of the Act, 33 U.S.C. § 1362(14),
and is thus not within the qualified exception recognized in
the Conference Committee Report. The conclusion is in-
escapable that the drafters of the FWPCA did not intend
industrial dischargers of waste materials from point sources
such as Ford’s Raisin River plant to achieve statutory com-
pliance by using dilution as a substitute for waste treatment.

The EPA’s position also finds analogous support in our
court's interpretation of the Clean Air Act. In Big Rivers,
supra, the Administrator had disapproved the Kentucky state
implementation plan submitted under the Clean Air Act. We
upheld the Administrator’s view that the dispersal of airborne
contaminants was not a satisfactory means of achieving emis-
sion limitations, expressly approving similar reasoning in Na-
tional Resources Defense Council, Inc. v. EPA, 489 F. 2d 390
(5th Cir. 1974), rev'd in part on other grounds sub nom. Train
v. National Resources Defense Council, Inc., 421 U.S. 60
(1975). See 523 F. 2d at 20-22. In NRDC v. EPA, the Fifth

7 The Act authorizes the Administrator to determine the value of
flow regulation to achieve water quality:

(2) The need for and the value of storage for
of streamflow (other than for water quality) incl but
not limited to naviga salt water intrusion, recreation,
and fish and dlife, shall be determined by the
Engineers, Bureau of Reclamation, or other Federal

(3) The need for, the value of, and the of
ue Gor eally Guidi Gall te diamine ee hee

Section 102(b) (2), (3) of the Act, 88 U.S.C. § 1252(b) (2), (3).

28a

Circuit determined that the use of tall smokestacks merely
achieved a dispersion of pollutants and did not limit the
quantities emitted. The “tall stacks” technique was judged
to be an inadequate means of attaining national primary
ambient air quality standards.* Flow augmentation is analo-
gous to the use of tall stacks in that it facilitates the dispersion
of pollutants but does not reduce the quantity disseminated
into the waters.’

Finally turning to the Michigan Water Quality Standards
themselves, they provide that:

[t]he water quality standards prescribed by these rules
for the various designated uses of the waters of the state
apply to receiving waters .. .

Michigan Water Quality Standards, Michigan Admin. Code,
Part 4, Rule 323.1090. “Receiving waters” is defined therein
as “the waters of the state into which an effluent is or may
be discharged.” Id., Rule 323.1044(f). A natural construc-
tion of the terms “receiving waters” and “the waters of the
state,” would not normally be thought to include waters which
the polluter has artificially diverted from elsewhere into the
stream in order to dilute the pollution. The concentration:
expressed in the water quality standards applicable to the
smusttiiied waters of the Raisin River appear wholly con-

8 National primary ambient air ty
pnnn | standards under the

standards resemble water
in that both depend upon the
ma of a ey - over a given area or in a given watercourse

pollution derived from Yew Wit)
State. Water Resources Control Bd., 426 U “205 m 12 (1976)
(water quality standards) ; Train v. NRDC, supra, 421 1 US. at 65, 78
(na primary ambient air quality standards).
= Gaee sees recently amended the Clean Air Act with to
tall on techniques. Clean Air Act end-
ments of 1977, oan D. 95-95, $123, “o Stat. 721 (1977). As the
legislative history ry takes explicit, Congress intended to endorse and
eomey, Go Wes 6 Se et ae RDC v. EPA that on
mg, lst Seas. 81-82, reprinted im US. H.R. Rep. No. 95- 95th
Cong, "ist Se 91-92, reprinted in U.S. Code Cong. & ews

29a

sistent with the Administrator's position and are inconsistent
with the manipulation of flow contemplated by Ford.
Further, I cannot agree with the majority that we should
take so grudging a view of the EPA’s articulated basis for the
exercise of its veto. It is true, as the majority notes, that it
is not for the courts to provide post hoc rationalization for an
agency's action which that agency has not itself given. It
is also, however, true that our scope of review is a narrow
one and that an agency decision of less than ideal clarity
will be upheld “if the agency’s path may reasonably be dis-
cerned.” Bowman Transportation, Inc. v. Arkansas-Best
Freight System, 419 U.S. 281, 286 (1974), quoting Colorado
Interstate Gas Co. v. FPC, 324 U.S. 521, 589 (1945). The
majority opinion would appear to confine the EPA to the
grounds asserted in its letter of January 22, 1976, vetoing the
permit modification. However, accompanying that letter was
a memorandum dated January 14, 1976, which the veto letter
incorporated by reference. The January 22 letter stated:

Flow augmentation is not consistent with the require-
ments of the in-stream concentration limits contained in
water quality standards.

The January 14 memorandum added:

In the instant case, the upstream concentration of pol-
lutants expressed as pounds based on total river flow
plus the BPT [best practicable technology] allowance
of pounds of pollutants discharged after dilution exceed
the in-stream concentration limitations. We, therefore,
do not see flow augmentation as being consistent with
the requirements of the in-stream concentration limits
contained in the water quality standards. (Emphasis

in original).

The only reasonable construction of the January 14 and
January 22 memoranda in the context of the EPA’s veto of
the proposed permit modification is that simply satisfying the

30a

best practicable technology requirement contained in effluent
limitation standards would be insufficient if in-stream con-
centration limits, without flow augmentation, still could not
be met.'® This is exactly the situation contemplated by the
Supreme Court in EPA v. State Water Resources Control
Board, 426 U.S. 200, 205 n.12 (1976). The EPA thus ex-
pressed with clarity its view that the flow augmentation was
not permitted by the water quality standards, which rest on
in-stream concentrations of pollutants. It therefore con-
cluded that no authority could be found in Michigan water
quality standards for enhancing the flow of a watercourse to
achieve lawful pollutant concentrations. Because the water
quality standards thus do not immunize the otherwise-unlawful
discharge, Section 301(a) of the Act, 33 U.S.C. §1311(a),
applies to forbid the discharge.

Contrary to the view of the majority, I would hold that the
path of the agency's reasoning is sufficiently clear from its
veto correspondence and does not constitute a post hoc
rationalization.

Finally, I am unable to join in attributing a legal distinction
to permits of “major” and minor significance. The majority
apparently concludes that the Administrator's veto will be
summarily set aside if the permit is not of major significance
— a conclusion which I am unable to draw from the authorities
cited. "

Congress undoubtedly intended that, where states qualified
themselves to issue NPDES permits, the great bulk of the

1®@ Under the FWPCA, discharge permits issued

to
promulgated by the EPA and the water quality standards by
ow Section 402(b)(1)(A) of the Act, 33 U.S.C. § 1342(b)

1! The mety Gude Go peepeand pemit mediiention to be of
oe and \ y not because of its impact on the

River or Lake e but because the permit raises an issue of
major significance, the use of flow augmentation to achieve water
quality standards.

~

with the EPA itself judging when the circumstances warrant
its intervention. I would hold instead that any unlawful
permit outside the guidelines and requirements of the Act
would be the appropriate subject for a veto in the discretion
of the EPA, Appalachian Power Co. v. Train, 545 F. 2d 1351,
1358 (4th Cir. 1976). Contrary to the majority, I do not

12 Section 402(d) (3) of the 33 U.S.C. § 1342(d) (3), allows the
eaten CS S Se issued
which is “outside the guidelines and requirements” of the Act.

32a

understand National Resources Defense Council, Inc. v. Train,
510 F. 2d 692, 709 (D. C. Cir. 1975), to establish a test of
“major significance” for judging the Administrator's authority
in reviewing state-issued permits under Section 402(d) (2)
of the Act, 33 U.S.C. § 1342(d) (2).

Had the EPA approved water quality standards for the
State of Michigan expressly providing for flow augmentation,
there would be much more force to the claim that its veto was
arbitrary and capricious. As the majority concedes, however,
the standards are silent as to flow augmentation. It is not
for us to speculate that the Administrator approved or would
have approved the use of flow augmentation, when such an
inference is obviously inconsistent with the objectives of the
Act and results in a strained construction of the water quality
standards themselves.

The Administrator, in vetoing the proposed permit modi-
fication, has expressed his view that flow augmentation is an
impermissible means of attaining the concentrations of pol-
lutants contained in the water quality standards of Michigan.
As our court held in Big Rivers, supra, “interpretations of this
complex statute [the Ciean Air Act] by the agency charged
with administering it are entitled to great deference.” 523
F. 2d at 22. Similar deference should be given to the EPA’s
interpretation of the FWPCA and of the state water quality
standards, the text of which the agency itself reviewed and
approved. Americar: Iron & Steel Institute v. EPA, 543 F. 2d
521, 526 (3d Cir. 176). In my view the Administrator was
justified in concluding that flow augmentation was not a
permissible technique for achieving water quality standards,
since no express authorization in the Act or regulations can
be found to support it. I would deny the petition for review
and affirm the action of the Administrator.

iS

APPENDIX B
Notice: This opinion is subject to formal revision before publication
in the Federal Reporter or U.S.App.D.C. Reports. Users are requested

to notify the Clerk of any formal errors in order that corrections may be
made before the bound volumes go to press.

United States Court of Appeals

FOR THE DISTRICT OF COLUMBIA CIRCUIT

No. 75-2056
* NATURAL RESOURCES DEFENSE COUNCIL, INC.
Vv.

DOUGLAS M. COSTLE, ADMINISTRATOR,
ENVIRONMENTAL PROTECTION AGENCY, ET AL.

NATIONAL FOREST PRODUCTS ASSOCIATION, APPELLANT

No. 75-2066
NATURAL RESOURCES DEFENSE COUNCIL, INC., ETC.
Vv.

DouGLas M. COSTLE, ADMINISTRATOR,
ENVIRONMENTAL PROTECTION AGENCY, ET AL.

NATIONAL MILK PRODUCERS FEDERATION, APPELLANT

No. 75-2067
NATURAL RESOURCES DEFENSE COUNCIL, INC., ETC.
V.

DouGLas M. COSTLE, ADMINISTRATOR,
ENVIRONMENTAL PROTECTION AGENCY, ET AL.,
APPELLANTS

* For convenience the court will refer to this case hereafter
as NRDC v. Costle [Runoff Point Sources].

33a

34a
No. 75-2235

NATURAL RESOURCES DEFENSE COUNCIL, INC.
V.

DoucLas M. CosTLe, ADMINISTRATOR,
ENVIRONMENTAL PROTECTION AGENCY,
COLORADO RIVER WATER CONSERVATION DISTRICT,
APPELLANT

Appeals from the United States District Court
for the District of Columbia

(D.C. Civil 1629-73)

Argued December 3, 1976
Decided November 16, 1977

Irvin B. Nathan, with whom Burton J. Mallinger was
on the brief, for appellant in No. 75-2056.

Charles W. Bills, with whom James R. Murphy was on
the brief for appellant in No. 75-2066.

G. William Frick, Attorney, Department of Justice, of
the bar of the Supreme Court of Missouri, pro hac vice
by special leave of court for appellants in No. 75-2067.
Peter R. Taft, Assistant Attorney General, Robert V.
Zener, General Counsel, Environmental Protection Agency
Edmund B. Clark, Lloyd S. Guerci, Larry A. Boggs, At.
torneys Department of Justice and Pamela P. Quinn, At-
torney Environmental Protection Agency were on the
brief for appellants in No. 75-2067.

35a

Christopher D. Williams, with whom Kenneth Balcomb
and Robert L. McCarty were on the brief for appellant in
No. 75-2235.

J. G. Speth for appellee.

Theodore O. Torve, Assistant Attorney General, State of
Washington filed a brief on behalf of the State of Wash-
ington as amicus curiae urging reversal in No. 75-2056.

Richard E. Schwartz filed a brief on behalf of Iron and
Steel Institute as amicus curiae urging reversal in No. 75-
2067.

John L. Hill, Attorney General, State of Texas and
David M. Kendall, First Assistant Attorney General, State
of Texas filed a brief on behalf of State of Texas as
amicus curiae urging reversal in No. 75-2067.

Before: BAZELON, Chief Judge, LEVENTHAL and MAC-
KINNON, Circuit Judges.

Opinion for the Court filed by Circuit Judge LEVENTHAL.
Concurring Opinion filed by Circuit Judge MACKINNON.

LEVENTHAL, Circuit Judge: In 1972 Congress passed
the Federal Water Pollution Control Act Amendments
(hereafter referred to as the “FWPCA” or the “Act” *).
It was a dramatic response to accelerating environmental
degradation of rivers, lakes and streams in this country.
The Act’s stated goal is to eliminate the discharge of
pollutants into the Nation’s waters by 1985. This goal is
to be achieved through the enforcement of the strict time-
tables and technology-based effluent limitations established
by the Act.

233 U.S.C. §§ 1251-1876 (Supp. V 1975). Although char-
acterized in the official title as “amendments”, the 1972
FWPCA actually substitutes its provisions for those of the
pre-1972 Federal Water Pollution Control Act as amended,
id. §§ 1151-1175 (1970).

36a

The FWPCA sets up a permit program, the National
Pollutant Discharge Elimination System (NPDES), as
the primary means of enforcing the Act’s effluent limita-
tions. At issue in this case is the authority of the Ad-
ministrator of the Environmental Protection Agency to
make exemptions from this permit component of the
¥YWPCA.

Section 402 of the FWPCA, 33 U.S.C. § 1342 (Supp. V
1975), provides that under certain circumstances the
EPA Administrator “may . . . issue a permit for the dis-
charge of any pollutant” notwithstanding the general pro-
scription of pollutant discharges found in § 301 of the
Act. 33 U.S.C. § 1811 (Supp. V 1975). The discharge of
a pollutant is defined in the FWPCA as “any addition of
any pollutant to navigable waters from any point source”
or “any addition of any pollutant to the waters of the
contiguous zone or the ocean from any point source other
than a vessel or floating craft.” 33 U.S.C. § 1362(12)
(Supp. V 1975). In 1973 the EPA Administrator issued
regulations that exempted certain categories of “point
sources” of pollution from the permit requirements of
§ 402." The Administrator’s purported authority to make
such exemptions turns on the proper interpretation of
§ 402.

A “point source” is defined in § 502(14) as “any dis-
cernible, confined and discrete conveyance, including but

* This case deals with § 402 of the FWPCA, 33 U.S.C.
§ 1842 (Supp. V 1975), which sets out the permitting author-
ity of the EPA Administrator as well as that of the states
under EPA-approved state permit programs. The Secretary
of the Army also has a permitting authority in certain cir-
cumstances. Under § 404 of the FWPCA, 33 U.S.C. § 1344
(Supp. V 1975), he may issue permits for the discharge of
dredged or fill material into navigable waters.

*40 C.F.R. § 125.4 (1975). See 38 Fed. Reg. 18000-04
(1973).

37a

not limited to any pipe, ditch, channel, tunnel, conduit,
well, discrete fissure, container, rolling stock, concen-
trated animal feeding operation, or vessel or other floating
craft, from which pollutants are or may be discharged.” *

The 1973 regulations exempted discharges from a num-
ber of classes of point sources from the permit require-
ments of § 402, including all silvicultural point sources;
all confined animal feeding operations below a certain size ;
all irrigation return flows from areas of less than 3,000
contiguous acres or 3,000 noncontiguous acres that use the
same drainage system; all nonfeedlot, nonirrigation agri-
cultural point sources; and separate storm sewers con-
taining only storm runoff uncontaminated by any in-
dustrial or commercial activity.° The EPA’s rationale for

*33 U.S.C. § 1862(14) (Supp. V 1975).
* 40 C.F.R. § 125.4 (1975):
The hmnetnes do not require an NPDES permit:

Uncontrolled discharges composed entirely of
storm runoff when these discharges are uncontam-
inated by any industrial or commercial activity, un-
less the particular storm runoff discharge has been
identified by the Regional Administrator, the State
water pollution control agency or an interstate agency
as a significant contributor of pollution. (It is an-
ticipated that significant contributors of pollution
will be identified in connection with the development
of plans pursuant to section 308(e) of the Act. This
exclusion applies only to separate storm sewers. Dis-
charges from combined sewers and bypass sewers
are not excluded.)

@ Discharges of pollutants from agricultural and
silvicultural activities, including irrigation return
flow and runoff from orchards, cultivated crops, pas-
tures, rangelands, and forest lands, except that this
exclusion shal] not apply to the following:

38a

these exemptions is that in order to conserve the Agency’s
enforcement resources for more significant point sources
of pollution, it is necessary to exclude these smaller

sources of pollutant discharges from the permit program.

(1) Discharges from animal confinement facilities,
if such facility or facilities contain, or at any time
during the previous 12 months contained, for a total
of 30 days or more, any of the following types of
animals at or in excess of the number listed for each
type of animal:

(i) 1,000 slaughter and feeder cattle;

(ii) 700 mature dairy cattle (whether milkers or
dry cows);

(iii) 2,500 swine weighing over 55 pounds;

(iv) 10,000 sheep;

(v) 55,000 turkeys;

(vi) If the animal confinement facility has continu-
ous overflow watering, 100,000 laying hens and broil-
ers;

(vii) If the animal confinement facility has liquid
manure handling systems, 30,000 laying hens and
broilers;

(viii) 5,000 ducks;

(2) Discharges from animal confinement facilities,
if such facility or facilities contain, or any time
during the previous 12 months contained for a total
of 30 days or more, a combination of animals such
that the sum of the following numbers is 1,000 or
greater: the number of slaughter and feeder cattle
multiplied by 1.0, plus the number of mature dairy
cattle multiplied by 1.4, plus the number of swine
weighing over 55 pounds multiplied by 0.4, plus the
number of sheep multiplied by 0.1;

(8) Discharges from aquatic animal production
facilities;
(4) Discharges of irrigation return flow (such as

tailwater, tile drainage, surfaced groundwater flow
or bypass water), operated by public or private or-

39a

The National Resources Defense Council, Inc. (NRDC)
sought a declaratory judgment that the regulations are
unlawful under the FWPCA. Specifically, NRDC con-
tended that the Administrator does not have authority to
exempt any class of point source from the permit require-
ments of § 402. It argued that Congress in enacting
§§ 301, 402 of the FWPCA intended to prohibit the dis-
charge of pollutants from all point sources unless a permit
had been issued to the discharger under § 402 or unless
the point source was explicitly exempted from the permit
requirements by statute. The District Court granted
NRDC’s motion for summary judgment. It held that the
FWPCA does not authorize the Administrator to exclude
any class of point sources from the permit program.
NRDC v. Train, 396 F. Supp. 1393 (D.D.C. 1975). The
EPA has appealed to this court. It is joined on appeal by
a number of defendant-intervenors, National Forest Prod-
ucts Association (NFPA), National Milk Producers Fed-
eration (NMPF), and the Colorado River Conservation
District.*

This case thus presents principally a question of statu-
tory interpretation. EPA also argues that even if Con-

ganizations or individuals, if: (1) There is a point
source of discharge (e.g., a pipe, ditch, or other de-
fined or discrete conveyance, whether natural or arti-
ficial) and; (2) the return flow is from land areas of
more than 3,000 contiguous acres, or 3,000 non-con-
eS
an

(5) Discharges from any agricultural or silvicul-
tural activity which have been identified by the Re-
gional Administrator or the Director of the State
water pollution control agency or interstate agency
as a significant contributor of pollution.

* Briefs as amicus curiae were filed by the American Iron
and Steel Institute, the State of Texas, and the State of Wash-
ington, Department of Natural Resources.

40a

gress intended to include the pertinent categories in the
permit program, the regulations exempting them should
be upheld on a doctrine of administrative infeasibility,
i.e., the regulations should be upheld as a deviation from
the literal terms of the FWPCA that is necessary to per-
mit the Agency to realize the principal objectives of the
Act.
I. LEGISLATIVE HISTORY

The principal purpose of the FWPCA is “to restore and
maintain the chemical, physical, and biological integrity
of the Nation’s waters.”’ The Act’s ultimate objective,
to eliminate the discharge of pollutants into navigable
waters by 1985, is to be achieved by means of two inter-
mediate steps. As of July 1, 1977, all point sources
other than publicly owned treatment works were to have
achieved effluent limitations that require application of
the “best practicable control technology.”* These same
point sources must reduce their effluent discharges by
July 1, 1983 to meet limitations determined by applica-
tion of the “best available technology economically achiev-
able” for each category of point source.°

The technique for enforcing these effluent limitations
is straightforward. Section 301(a) of the FWPCA pro-
vides:

Except as in compliance with this section and sec-
tions 302, 306, 307, 318, 402, and 404 of this Act, the

discharge of any pollutant by any person shall be
unlawful.”

Appellants concede that if the regulations are to be valid,
it must be because they are authorized by § 402; none of

738 U.S.C. § 1251(a) (Supp. V .~78).

* 33 U.S.C. § 1811(b) (1) (A) (Supp. V 1975).
* Id. § 1811(b) (2) (A).

© Id. §1311(a).

4la

the other sections listed in § 301(a) afford grounds for
ae the exempted point sources from the prohibition
§ 301."

Section 402 provides in relevant part that

the Administrator may, after opportunity for public
hearing, issue a permit for the discharge of any pol-
lutant, or combination of pollutants, notwithstanding
section 301(a), upon condition that such discharge
will meet either all applicable requirements under
sections 301, 302, 306, 307, 308, and 403 of this Act,
or prior to the taking of the necessary implementing
actions relating to all such requirements, such condi-
tions as the Administrator determines are necessary
to carry out the provisions of this Act.

The NPDES permit program established by § 402 is
central to the enforcement of the FWPCA. It translates
general effluent limitations into the specific obligations of
a discharger. As this court noted in NRDC v. Train, 166
U.S.App.D.C. 312, 315, 510 F.2d 692, 695 (1975), the

™ Section 302, 33 U.S.C. § 1312 (Supp. V 1975), permits
the Administrator to set water quality related effluent limita-
tions or control strategies where technology-based limitations
are inadequate. Section 306, 33 U.S.C. §1316 (Supp. V
1975), instructs the EPA Administrator to promulgate stand-
ards of performance for new sources of pollution constructed
after those standards are proposed. Section 307, 33 U.S.C.
§ 1317 (Supp. V 1975), gives the EPA Administrator the
authority to issue generally applicable effluent standards with
respect to toxic substances and to require pretreatment of
some pollutants before their introduction into treatment works.
By virtue of § 318, 33 U.S.C. § 1828 (Supp. V 1975), the Ad-
ministrator may “permit the discharge of a specific pollutant
or pollutants under controlled conditions associated with an
approved aquaculture project under Federal or State super-
vision.” Section 404, 38 U.S.C. § 1844 (Supp. V 1975), gives
the Secretary of the Army authority to issue permits for the
discharge of dredged or fill material into the navigable wa-
ters at specified disposal sites.

42a

Act “relies primarily on a permit program for the achieve-
ment of effluent limitations . . . to attain its goals.” The
comments in floor debates of Senator Muskie, the leading
Congressional sponsor of the Act, makes this clear.”

The appellants argue that § 402 not only gives the
Administrator the discretion to grant or refuse a permit,
but also gives him the authority to exempt classes of
point sources from the permit requirements entirely. They
argue that this interpretation is supported by the legisla-
tive history of § 402 and the fact that unavailability of
this exemption power would place unmanageable admin-
istrative burdens on the EPA.

Putting aside for the moment the appellants’ adminis-
trative infeasibility argument, we agree with the District
Court that the legislative history makes clear that Con-
gress intended the NPDES permit to be the only means
by which a discharger from a point source may escape the
total prohibition of § 301(2). This intention is evident
in both Committee Reports. In discussing § 301 the House
Report stressed:

Any discharge of a pollutant without a permit issued
by the Administrator under section 318, or by the
Administrator or the State under section 402 or by
the Secretary of the Army under section 404 is un-
lawful. Any discharge of a pollutant not in compli-
ance with the conditions or limitations of such a per-
mit is also unlawful.”

12“The Administrator of the Environmental Protection
Agency is authorized to regulate discharge of pollutants
through the use of an expanded permit program.” 117 Cong.
Rec. 38800 (1971) (Senator Muskie) (emphasis added), re-
printed in 2 Environmental Policy Div., Congressional Ref-
erence Serv., A Legislative History of the Water Pollution
Control Act Amendments of 1972, at 1259 (Senate Public
Works Comm. Print 1973) [hereinafter cited as Legislative
History).

18H. Rep. No. 92-911, 92d Cong., 2d Sess. 100 (1972), re-
printed in Legislative History at 787.

43a

The Senate Report echoed this interpretation:

[Section 301] clearly establishes that the

of pollutants is unlawful. Unlike its predecessor
program which permitted the discharge of certain
amounts of pollutants under the conditions described
above, this legislation would clearly establish that no
one has the right to pollute—that pollution continues
because of technological limits, not because of any
inherent rights to use the nation’s waterways for
the purpose of disposing of wastes.

The program proposed by this Section will be im-
plemented through permits issued in Section 402.
The Administrator will have the capability and the
mandate to press technology and economics to achieve
those levels of effluent reduction which he believes to
be practicable in the first instance and attainable
in the second.™

The EPA argues that since § 402 provides that “the
Administrator may . . . issue a permit for the discharge
of any pollutant” (emphasis added), he is given the dis-
cretion to exempt point sources from the permit require-
ments altogether. This argument, as to what Congress
meant by the word “may” in § 402, is insufficient to
rebut the plain language of the statute and the com-
mittee reports. We say this with due awareness of the
deference normaily due “the construction of a new statute
by its implementing agency.” NRDC v. Train, 166 U.S.
App.D.C. at 326, 510 F.2d at 706; see Zuber v. Allen, 396
U.S. 168, 192 (1969) ; Udall v. Tallman, 380 U.S. 1, 16
(1965). The use of the word “may” in § 402 means only

that the Administrator has discretion either to issue a
permit or to leave the discharger subject to the total
proscription of § 301. This is the natural reading, and
the one that retains the fundamental logic of the statute.

“S. Rep. No. 92-414, 92d Cong., Ist Sess. 42
printed in Legislative History at 1460. ea),

44a

Under the EPA’s interpretation the Administrator
would have broad discretion to exempt large classes of
point sources from any or all requirements of the FWPCA.
This is a result that the legislators did not intend. Rather
they stressed that the FWPCA was a tough law that
relied on explicit mandates to a degree uncommon in
legislation of this type. A statement of Senator Jennings
Randolph of West Virginia, Chairman of the Senate
Committee responsible for the Act, is illustrative.

I stress very strongly that Congress has become very
specific on the steps it wants taken with regard to
environmental protection. We have written into law
precise standards and definite guidelines on how the
environment should be protected. We have done more
than just provide broad directives for administrators
to follow....

In the past, too many of our environmental laws
have contained vague generalities. What we are at-
tempting to do now is provide laws that can be ad-
ministered with certainty and precision. I think that
is what the American people expect that we do.*

6 117 Cong. Rec. 38865 (1971), reprinted in Legislative His-
tory at 1272. See also the comments of Senator Montoya on
the original Senate bill.

Your committee has placed before you a tough bill. This
body and this Nation would not have it be otherwise. Our
legislation contains an important principle of psychology:
Men seldom draw the best from themselves unless pressed
by circumstances and deadlines. This bill contains dead-
lines and it imposes rather tough standards on industry,

_ municipalities, and all other sources of pollution. Only
under such conditions are we likely to press the technolog-
ical threshold of invention into new and imaginative de-
velopments that will allow us to meet the objectives stated
in our bill.

117 Cong. Rec. 38808 (1971), reprinted in Legislative History
at 1278.

45a

There are innumerable references in the legislative his-
tory to the effect that the Act is founded on the “basic
premise that a discharge of pollutants without a permit is
unlawful and that discharges not in compliance with the
limitations and conditions for a permit are unlawful.” *

Even when infeasibility arguments were squarely raised,
the legislature declined to abandon the permit require-
ment.” We stand by our previous interpretation of the

a 118 Cong. Rec. 10215 (1972) (Rep. Clausen), reprinted

in Legislative History at 378. See, e.g., H.R. Rep. No. 92-911

92d Cong., 2d Sess. 100 (1972), reprinted in Legislative His-

tory at 787; S. Rep. No. 92-414; 92d Cong., Ist Sess. 42-48

(1971), reprinted in Legislative History at 1460-61; 118 Cong.

— pref (1972) (Rep. Podell), reprinted in Legislative His-
ry °

* The House rejected an amendment designed to avoid the
problems of including irrigation return flows in the permit
program. Congressman Teno Roncalio of Wyoming offered an
amendment on the floor of the House that would have ex-
plicitly exempted irrigated agriculture from the NPDES per-
mit program.

Mr. RONCALIO. ...

I offer my amendment so that a serious omission to
H.R. 11896 can be corrected before we end up with a law
that would be virtually impossible to enforce. My amend-
ment would specifically exempt irrigated agriculture from
sections 301 (a), 302 and 304 of the Federal Water Pollu-
tion Control Act.

I think my colleagues will agree that the type of salinity
problems created by irrigation runoff are simply not as
alarming as the more common pollutants discharged by
industrial and municipal facilities. Substantial salinity
concentrations have little effect on recreational use of
water or its suitability for the propagation of fish.

My amendment is necessary, Mr. Chairman, because at
the present time we could not enforce pollution control on
irrigation systems. It is virtually impossible to trace
pollutants to specific irrigation lands, making these pol-
lutants a nonpoint source in most cases. Second, we do not

46a

Act’s scheme for the enforcement of effluent limitations:

After dates set forth in [§ 301(b)], a person must
obtain a permit and comply with its terms in order to
discharge any pollutant. The conditions of the per-
mit must assure that any discharge complies with the
applicable requirements of numerous sections includ-
ing the effluent limitations of section 301(b).

NRDC v. Train, 166 U.S.App.D.C. at 316, 510 F.2d at
696 (emphasis added; footnotes omitted).

We also note that all the Supreme Court decisions re-
ferring to § 402 view the permit as the only means by
which a point source polluter can avoid the ban on dis-
charges found in § 301. Strictly speaking these expres-
sions may be dicta, for they do not touch directly on the
interpretation of § 402. But they are at least a consid-
ered reading of what the Act appears to mean.

In Train v. Colorado Public Interest Research Group,
Inc., 426 U.S. 1 (1976), vustice Marshall characterized
the enforcement scheme of the FWPCA as follows:

[E}ffluent limitations are { “poeta ——- a =
rogram. The discharge of “pollu ” into water
eae without a permit issued by the Administra-
tor of the EPA or, if a State has developed a nro-
gram that complies with the FWPCA, by the

State....

Id. at 7 (footnote omitted).

f we will be doing the Federal Government a great
Gevoune tl es cane pass a Federal water pollution
control bill that cannot be fully enforced.

118 Cong. Rec. 10764-65 (1972), reprinted in Legislative His-
tory at 651. The amendment was rejected.

47a

In EPA v. State Water Resources Control Board, 426
U.S. 200 (1976), the issue was whether federal installa-
tions were subject to state NPDES programs. Justice
White’s majority opinion described NPDES at 205 (foot-
note omitted) :

Under NPDES, it is unlawful for any person to
discharge a pollutant without obtaining a permit and
complying with its terms. An NPDES permit serves
to transform generally applicable effluent limitations
and other standards—including those based on water
quality—into the obligations (including a timetable
for compliance) of the individual discharger, and the
Amendments provide for direct administrative and
judicial enforcement of permits.

In E. I. du Pont de Nemours v. Train, 430 U.S. 112
(1977), the Court held that under FWPCA the EPA can
set uniform effluent limitations through industry-wide
regulations rather than develop them on an individual
basis during the permit issuance process. But the Court,
per Justice Stevens, clearly indicated that those limitations
were translated into obligations of the discharger through
their inclusion in an NPDES permit. 7d. at 119-20.

The wording of the statute, legislative history, and
precedents are clear: the EPA Administrator does not
have authority to exempt categories of point sources from
the permit requirements of § 402. Courts may not manu-
facture for an agency a revisory power inconsistent with
the clear intent of the relevant statute. In holding that
the FPC does not have authority to exempt the rates of
small producers from regulation under the Natural Gas
Act, the Supreme Court observed:

It is not the Court’s role . . . to overturn congres-
sional assumptions embedded into the framework of
regulation established by the Act. This is a proper
task for the Legislature where the public interest

48a

may be considered from the multifaceted points of
view of the representational process.

FPC v. Texaco, Ine., 417 U.S. 380, 400 (1974).
Il. ADMINISTRATIVE INFEASIBILITY

The appellants have stressed in briefs and at oral argu-
ment the extraordinary burden on the EPA that will be
imposed by the above interpretation of the scope of the
NPDES program. The spectre of millions of applications
for permits is evoked both as part of appellants’ legisla-
tive history argument—that Congress could not have in-
tended to impose such burdens on the EPA—and as an
invitation to this court to uphold the regulations as devia-
tions from the literal terms of the FWPCA necessary to
permit the agency to realize the general objectives of thai
act. During oral argument we asked for supplemental
briefs so that the appellants could expand on their in-
feasibility arguments. We consider EPA’s infeasibility
contentions in turn.

A. Uniform National Effluent Limitations

EPA argues that the regulatory scheme intended under
Titles III and IV of the FWPCA requires, first, that the
Administrator establish national effluent limitations “ and,
second, that these limitations be incorporated in the indi-
vidual permits of dischargers. EPA argues that the
establishment of such limitations is simply not possible

1* See FWPCA § 502(11), 38 U.S.C. § 1862(11) (Supp. V
1975):

The term “effluent limitation” means any restriction es-
tablished by a State or the Administrator on quantities,
rates, and concentrations of chemical, physical, biological,
and other constituents which are discharged from point
sources into navigable waters, the waters of the contigu-
ous zone, or the ocean, including schedules of compliance.

49a

with the type of point sources involved in the 1973 regula-
tions, which essentially invelve the discharge of runoff—
i.e., wastewaters generated by rainfall that drain over
terrain into navigable waters, picking up pollutants along
the way.

There is an initial question, to what extent point
sources are involved in agricultural, sivicultural,. and
storm sewer runoff. The definition of point source in
§ 502(14), including the concept of a “discrete convey-
ance”, suggests that there is room here for some exclusion
by interpretation. We discuss this issue subsequently.
Meanwhile, we assume that even taking into account what
are clearly point sources, there is a problem of infeasibil-
ity which the EPA properly opens for discussion.

EPA contends that certain characteristics of runoff
pollution make it difficult to promulgate effluent limita-
tions for most of the point sources exempted by the 1973
regulations:

The major characteristic of the pollution problem
which is generated by runoff .. . is that the owner
of the discharge point . . . has no control over the
quantity of the flow or the nature and amounts of
the pollutants picked up by the runoff. The amount
of flow obviously is unpredictable because it results
from the duration and intensity of the rainfall event,
the topography, the type of ground cover and the
saturation point of the land due to any previous rain-
fall. Similar factors affect the types of pollutants
which will be picked up by that runoff, including the
tyre of farming practices employed, the rate and
type of pesticide and fertlizer application, and the
conservation practices employed... .

An effluent limitation must be a precise number
in order for it to be an effective regulatory tool; both
the discharger and the regulatory agency need to
have an identifiable standard upon which to deter-

50a

mine whether the facility is in compliance. That was
the principal of the passage of the 1972 Amend-
ments.

Federal Appellants’ Memorandum on “Impossibility” at
7-8 (footnote omitted). Implicit in EPA’s contentions is
the premise that there must be a uniform effluent limita-
tion prior to issuing a permit. That is not our under-
standing of the law.

In NRDC v. Train, we described the interrelationship
of the effluent limitations and the NPDES permit pro-
gram, 166 U.S.App.D.C. at 327, 510 F.2d at 707 (foot-
notes omitted) :

The Act relies on effluent limitations on individual
point sources as the “basis of pollution prevention
and elimination.” . . . Section 301(b) contains a
broad description of phase one and phase two efflu-
ent limitations, to be achieved by July 1, 1977 and
July 1, 1988, respectively. The limitations estab-
lished under section 301(b) are to be imposed upon
individual point sources through permits issued un-
der the National Pollutant Discharge Elimination
System (NPDES) established by section 402. Those
permits are to contain schedules which will assure
phased compliance with the effluent limitations no
later than the final dates set forth in section 301(b).
Section 304(b) calls for the publication of regula-
tions containing guidelines for effluent limitations for
classes and categories of point sources. These guide-
lines are intended to assist in the establishment of
section 301(b) limitations that will provide uni-
formity in the permit conditions imposed on similar
sources within the same category by diverse state
and federal permit authorities.

As noted in NRDC v. Train, the primary purpose of
the effluent limitations and guidelines was to provide uni-
formity among the federal and state jurisdictions enforc-

ing the NPDES program and prevent the “Tragedy of the

5la

Commons” ” that might result if jurisdictions can com-
pete for industry and development by providing more lib-
eral limitations than their neighboring states. 510 F.2d
at 709. The effluent limitations were intended to create
floors that had to be respected by state permit programs.

But in NRDC v. Train it was also recognized that per-
mits could be issued before national effluent limitations
were promulgated and that permits issued subsequent to
promulgation of uniform effluent limitations could be
modified to take account of special characteristics of sub-
categories of point sources.

Prior to the promulgation of effluent limitations un-
der section 301, the director of a state program is
instructed merely to impose such terms and condi-
tions in each permit as he determines are necessary
to carry out the provisions of the Act. Once an efflu-
ent limitation is established, however, the state direc-
tor and the regional EPA Administrator are required
to apply the specified, uniform effluent limitations,

*® As one commentator has recently written:

The Tragedy of the Commons arises in noncentralized
decisionmaking under conditions in which the rational
but independent pursuit by each decisionmaker of its own
self-interest leads to results that leave all decisionmakers
worse off than they would have been had they been able
to agree collectively on a different set of policies.

Stewart, Pyramids of Sacrifice? Problems of Federalism in
Mandating State Implementation of National Environmental
Policy, 86 Yale L.J. 1196, 1211 (1977). The classic account of
the Tragedy of the Commons can be found in Hardin, The
Tragedy of the Commons, 162 Science 1248 (1968). Hardin
makes the point in the context of sheep-grazing. Pui simply,
even over-simply, Hardin shows that if no one is authorized
to set limits to preserve open pasture land as a whole, allowing
sheep to graze on that land may lead to serious overgrazing, as
each herdsman thinks only of his own advantage. The solution
lies in some mandate, from above or by agreement, with sanc-
tions to compel conformance.

52a

modified only as necessary to take account of funda-
mentally different factors pertaining to particular
point sources within a given class or category. Any
variation in the uniform limitations adopted for
specific dischargers must be approved by the Admin-
istrator.

510 F.2d at 710 (footnotes omitted).

Another passage in NRDC v. Train touches on the in-
feasibility problem. We noted that “(t]he statutory frame-
work is not so tightly drawn as to require guidelines for
each and every class and category of point source regard-
less of the need for uniform guidelines or to mandate that
all guidelines be published prior to December 31 [1974]
regardless of their quality or the burden that task would
place upon che agency.” Jd. at 320-21, 510 F.2d at 710-11.
In that case this court fully appreciated that technological
and administrative constraints might. prevent the Admin-
istrator from developing guidelines and corresponding
uniform numeric effluent limitations for certain point
sources anytime in the near future. The Administrator
was deemed to have the burden of demonstrating that
the failure to develop the guidelines on schedule was due
to administrative or technological infeasibility. 510 F.2d
at 713. Yet the underlying teaching was that technologi-
cal or administrative infeasibility was a reason for ad-
justing court mandates to the minimum extent necessary
to realize the general objectives of the Act.” It is a

7 In NRDC v. Train this court stated:

A federal equity court may exercise its discretion to
give or withhold its mandate in furtherance of the public
interest, including specifically the interest in effectuating
the congressional objective incorporated in regulatory
legislation. We think the court may forebear the issuance
of an order in those cases where it is convinced by the
official involved that he has in good faith employed the
utmost diligence in discharging his statutory responsibili-
ties. The sound discretion of an equity court does not

53a

number of steps again to suggest that these problems
afford the Administrator the authority to exempt cate-
gories of point sources from the NPDES program entirely.

With time, experience, and technological development,
more point sources in the categories that EPA has now
classed as exempt may be amenable to national effluent
limitations achieved through end-of-pipe technology or
other means of pollution control. EPA has noted its own
success with runoff from mining operations:

EPA has found that in the area of runoff from
mining operations, there is sufficient predictability
because of a longer history of regulation and the
relatively confined nature of the operations that
numerical limitations can be established. Thus, con-
sistent with EPA’s position stated earlier that it will
expand the permit program where its capability of
establishing effluent limitations allows, appropriate
limitations have been created and the permit pro-
gram expanded.

Federal Appellants’ Memorandum on “Impossibility” at 8.

In sum, we conclude that the existence of uniform na-
tional effluent limitations is not a necessary precondition
for incorporating into the NPDES program pollution
from agricultural, silvicultural, and storm water runoff
point sources. The technological or administrative infeasi-
bility of such limitations may result in adjustments in
the permit programs, as will be seen, but it does not
authorize the Administrator to exclude the relevant point
source from the NPDES program.

embrace enforcement through contempt of a party’s duty
to comply with an order that calls him “to do an impos-
sibility.”
166 U.S.Anp.D.C. at 333, 510 F.2d at 713 (footnotes omitted).
For reasous stated in this opinion, we conclude that to require
the EPA Administrator to include silvicultural, agricultural,
and storm sewer point sources in the NPDES program is not
to require him “to do an impossibility.”

—

54a

B. Alternative Permit Conditions under § 402(a)

EPA contends that even if it is possible to issue permits
without national effluent limitations, the special charac-
teristics of point sources of runoff pollution make it in-
feasible to develop restrictions on a case-by-case basis.
EPA’s implicit premise is that whether limitations are
promulgated on a class or individual source basis, it 1s
still necessary to articulate any limitation in terms of a
numerical effluent standard. That is not our under-
standing.

Section 402 provides that a permit may be issued upon
condition “that such discharge will meet either all ap-
plicable requirements under sections 301, 302, 306, sv’,
308 and 403 of this Act, or prior to taking of necessary
implementing actions relating to all such requirements,
such conditions as the Administrator determines are neces-
sary to carry out the provisions of this Act.” 33 US.C.
§ 1342(a) (Supp. V 1975) (emphasis added). This pro-
vision gives EPA considerable flexibility in framing the
permit to achieve a desired reduction in pollutant uis-
charges. The permit may proscribe industry practices
that aggravate the problem of point source pollution.”

21 That Congress did not regard numeric effluent limitations
as the only permissible limitation on a discharger is supported
by § 302(a) of the Act, 88 U.S.C. §1812(a) (Supp. V 1975):

Whenever, in the judgment of the Administrator, dis-
charges of pollutants from a point source or group of point
sources, with the application of effluent limitations re-
quired under [§ 301(b) of the Act], would interfere with
the attainment or maintenance of that water quality in a
specific portion of the navigable waters which shall assure
protection of public water supplies, agricultural and in-
dustrial uses, and the protection and propagation of a
balanced population of shellfish, fish and wildlife, and
allow recreational activities in and on the water, effluent
limitations (including alternative effluent control strate-

55a

EPA’s counsel caricatures the matter by stating that
recognition of any such authority would give EPA the
power “to instruct each individual farmer on his farming
practices.” Federal Appellants Memorandum on “Impossi-
bility” at 12. Any limitation on a polluter forces him to
modify his conduct and operations. For example, an air
polluter may have a choice of installing scrubbers, burn- |
ing different fuels or reducing output. Indeed, the author-
ity to prescribe limits consistent with the best practicable
technology may be tantamount to prescribing that tech-
nology. Of course, when alternative techniques are avail-
able, Congress intended to give the discharger as much
flexibility as possible in choosing his mode of compliance.
See, ¢.g., H. Rep. No. 92-911, 92d Cong., 2d Sess. 107,
reprinted in Legislative History at 794. We only indicate
here that when numerical effluent limitations are infeasi-
ble, EPA may issue permits with conditions designed to
reduce the level of effluent discharges to acceptable levels.
This may well mean opting for a gross reduction in pol-
lutant discharge rather than the fine-tuning suggested by
numerical limitations. But this ambitious statute is not
hospitable to the concept that the appropriate response to a
difficult pollution problem is not to try at all.

It may be appropriate in certain circumstances for the
EPA to require a permittee simply to monitor and report
effluent levels; EPA manifestly has this authority.* Such
permit conditions might be desirable where the full extent
of the pollution problem is not known.

yies) for such point source or sources shall be established
which can reasonably be expected to contribute to the
attainment or maintenance of such water quality.

The emphasis has been added.

** FWPCA § 402(a) (3), (b) (2) (B), 38 U.S.C. § 1842(a)
(3), (b) (2) (B) (Supp. V 1975). EPA concedes that it has
this authority. Federal Appellants’ Memorandum on “Impos-
sibility” at 14.

C. General Permits

Finally, EPA argues that the number of permits in-
volved in the absence of an exemption authority will sim-
ply overwhelm the Agency. Affidavits filed with the Dis-
trict Court indicate, for example, that the number of
silviculture point sources may be over 300,000 and that
there are approximately 100,000 separate storm sewer
point sources.* We are and must be sensitive to EPA’s
concerns of an intolerable permit load. But the District
Court and the various parties have suggested devices to
mitigate the burden—to accommodate within a practical
regulatory scheme Congress’s clear mandate that all point
sources have permits. Ail that is required is that EPA
make full use of its interpretational authority. The ex-
istence of a variety of options belies EPA’s infeasibility
arguments.

Section 402 does not explicitly describe the necessary
scope of a NPDES permit. The most significant require-
ment is that the permit be in compliance with limitation
sections of the Act described above. As a result NRDC
and the District Court have suggested the use of area or
general permits. The Act allows such techniques. Area-
wide regulation is one well-established means of coping
with administrative exigency. An instance is area pricing
for natural gas producers, which the Supreme Court up-
held in Permian Basin Area Rate Cases, 390 U.S. 747
(1968).* A more dramatic example is the administrative

23 Affidavit of William H. McCredie, Director, Industrial For-
estry, of the NFPA; Affidavit of Walter G. Gilbert, Chief of
the Municipal Operations Branch, Municipal Waste Water
Systems Div., EPA Office of Air and Water Programs.

* In Permian Basin the Supreme Court observed:

The Commission has asserted, and the history of producer
regulation has confirmed, that the ultimate achievement
of the Commission’s regulatory purposes may easily de-
pend upon the contrivance of more expeditious adminis-

57a

search warrant, which may be issued on an area basis
despite the normal Fourth Amendment requirement of
probable cause for searching specific premises. Camara v.
Municipal Court, 387 U.S. 523 (1967).

In response to the District Court’s order, EPA promul-
gated regulations that make use of the general permit
device. 42 Fed. Reg. 6846-53 (Feb. 4, 1977). The general
permit is addressed to a class of point source dischargers,
subject to notice and opportunity for public hearing in
the geographical area covered by the permit. Although
we do not pass on the validity of the February, 1977,
regulations, they serve to dilute an objection of wholesale
infeasibility.*

Our approach is not fairly subject to the criticism that
it elevates form over substance, that the end result will
look very much like EPA’s categorical exemption. It is
the function of the courts to require agencies to comply
with legislative intent when that intent is clear, and to
leave it to the legislature to make adjustments when the
result is counterproductive.” At the same time, where

trative methods. The Commission believes that the ele-
ments of such methods may be found in area proceedings.
“TC]onsiderations of feasibility and practicality are cer-
tainly germane” to the issues before us... . We cannot,
in these circumstances, conclude that Congress has given
authority inadequate to achieve with reasonable effective-
ness the purposes for which it has acted.

390 U.S. at 777.

**It is also of some, albeit limited, significance that the
House Committee on Government Operations found EPA’s
administrative problems with applying the permit program to
animal feedlots “grossly exaggerated.” It was of the opin-
ion that the Administrator did not have authority to exempt
point sources from the NPDES program. H. Rep. No. 93-1012,
93d Cong., 2d Sess. 15-80 (1974).

** The Supreme Court recently reiterated this instruction in
Union Electric Co. v. EPA, 427 U.S. 246 (1976). There the

58a

intent on an issue is unclear, we are instructed to afford
the administering agency the flexibility necessary to
achieve the general objectives of the Act. Weinberger v.
Bentex Pharmaceuticals, Inc., 412 U.S. 645, 653 (1973) ;
United States v. Southwestern Cable Co., 392 U.S. 157,

Court held that the EPA Administrator could not consider
claims of technological or economic infeasibility when approv-
ing state implementation plans under the Clean Air Act
Amendments of 1970, 42 U.S.C. §§ 1857a-1857/ (1970). Such
claims were held only to be cognizable by the states in the plan
design stage or by the Administrator when drawing up com-
pliance orders. Justice Marshall, writing for the Court, em-
phasized that federal courts are not to ignore clear expressions
of Congressional intent in order to accommodate claims of
technological or economic infeasibility.
Allowing such claims to be raised by appealing the Ad-
ministrator’s approval of an implementation plan .. .
would frustrate congressional intent. It would permit a
proposed plan to be struck down as infeasible before it is
given a chance to work, even though Congress clearly
contemplated that some plans would be infeasible when
proposed. And it would permit the Administrator or a
federal court to reject a State’s legislative choices in reg-
ulating air pollution, even though Congress plainly left
with the States, so long as the national standards were
met, the power to determine which sources would be bur-
dened by regulation and to what extent. Technology forc-
ing is a concept somewhat new to our aational experience
and it necessarily entails certain risks. But Congress con-
sidered those risks in passing the 1970 Amendments and
decided that the dangers posed by uncontrolled air pollu-
tion made them worth taking. Petitioner’s theory would
render that considered legislative judgment a nullity, and
that is a result we refuse to reach.
427 U.S. at 268-69 (footnote omitted). See also Wilderness
Society v. Morton, 156 U.S.App.D.C. 121, 171, 479 F.2d 842,
892 (1978), cert. denied, 411 U.S. 917 (quoting United States
v. City and County of San Francisco, 310 U.S. 16, 31-82
(1940): “ ‘We cannot accept the contention that administra-
tive rulings—such as those relied on—can thwart the plain
purpose of a valid law.’”)

59a

177-78 (1968) ; Permian Basin Area Rate Cases, 390 U.S.
747, 780 (1968). These lines of authority conjoin in our
approach. We insist, as the Act insists, that a permit is
necessary ; the Administrator has no authority to exempt
point sources from the NPDES program. But we concede
necessary flexibility in the shaping of the permits that is
not inconsistent with the clear terms of the Act.

There is also a very practical difference between a
general permit and an exemption. An exemption tends to
become indefinite: the problem drops out of sight, into a
pool of inertia, unlikely to be recalled in the absence of
crisis or a strong political protagonist. In contrast, the
general or area permit approach forces the Agency to
focus on the problems of specific regions and requires that
the problems of the region be reconsidered at least every
five years, the maximum duration of a permit.”

D. Other Interpretational Powers

Many of the intervenor-appellants appear to argue that
the District Court should be reversed because the cate-
gories exempted by EPA are nonpoint sources and are
not, in fact, point sources.* We agree with the District
Court “that the power to define point and nonpoint sources
is vested in EPA and should be reviewed by the court only

** 33 U.S.C. § 1842(a) (3), (b) (1) (B) (Supp. V 1975).

“This appears to be the position of the Colorado River
Water Conservation District and the NFPA with respect to
silvicultural activities, and NMPF, less obviously, with respect
to small dairy farms.

We would put in the same category EPA’s contention that
the exempt categories are best handled under the areawide
waste treatment management planning process of § 208 of the
FWPCA, 383 U.S.C. § 1288 (Supp. V 1975). By its terms that
section is concerned with areawide waste treatment plans that
identify and control “agriculturally and silviculturally related
non-point sources of pollution.” Jd. § 1288(b) (2) (F).

60a

after opportunity for full agency review and examina-
tion.” 396 F. Supp. at 1396. The only issue precisely con-
fronted by all the parties and properly framed for our
consideration is whether the Administrator has authority
to exempt point sources from the NPDES program. We
also think that we should, for similar reasons, not consider
at this time the appropriate definition of “discharge of
any pollutant” as used in § 402. The American Iron and
Steel Institute as amicus curiae has pressed upon us the
argument that the term “discharge” as used in § 402 was
intended to encompass only “volitional flows” that add pol-
lutants to navigable waters. Most forms of runoff, it is
argued, do not involve volitional flows.

We assume that FWPCA, however tight in some re-
spects, leaves some leeway to EPA in the interpretation of
that statute, and in that regard affords the Agency some
means to consider matters of feasibility. However, for
reasons already noted, we do not consider these particular
contentions as to interpretation on the merits.

III. CONCLUSION

As the Supreme Court recently stated in a FWPCA
case, “(t]he question . . . is not what a court thinks is
generally appropriate to the regulatory process, it is what
Congress intended... .” E. I. du Pont de Nemours & Co.
v. Train, 430 U.S. 112, 188 (1977). We find a plain
Congressional intent to require permits in any situation
of pollution from point sources. We also discern an intent
to give EPA flexibility in the structure of the permits, in
the form of general or area permits. We are aware that
Congress hoped that more of the NPDES permit program
would be administered by the states at this point.” But

* See, e.g., 118 Cong. Rec. 10235 (1972) (Rep. Ichord) re-
printed wn Legislative History at 428.

6la

it also made provision for continuing EPA administration.
Imagination conjoined with determination will likely give
EPA a capability for practicable administration. If not,

the remedy lies with Congress.
So ordered.

62a

MACKINNON, Circuit Judge, concurring: I concur in
the very sound and practical construction set forth in the
foregoing opinion. Any person concerned with the actual
application and enforcement of laws would necessarily
be concerned by the application of the relevant legislation
to all point sources in agriculture—and particularly to
irrigated agriculture. Concern would also lie in the con-
gressional admission that present technology is inadequate
to enable our citizens to meet the standards and deadlines
the Act imposes; in passing the law, Congress was relying
on the future “invention [of] new and imaginative devel-
opments that will allow us to meet the objectives of our
bill.” * In gambling parlance, Congress in enacting the
law was “betting on the come.” It is relying on our citi-
zens in the near future to develop the complex technology
to meet all the law’s standards and objectives on time.
The difficulty with that approach is that the hopes of
Congress in this respect, like that of any gambler, might
not be realized. The agency in this case, however, has
shown that it takes a realistic view of both the situation
and the task of meeting the difficult requirements and
objectives of the Act. I sincerely hope that the ability of
the agency to issue section 402 permits—including general
area permits *—will permit it to the present and
future compliance problems posed by Act in a practi-
cal way.

*Comments of Senator Montoya, 117 Conc. REc. 38808

(1971), quoted in court’s opinion at 12, reprinted in Legiisla-
tive History at 1278.

* As an example, an area permit with appropriate conditions
and modifications could issue for the agricultural point sources
within the Grand River Irrigation District, or the watershed
of the Roaring Fork River and tributaries, etc.

U. 8, GOVERNMENT PRINTING OFFICE ; 1977 O - 252-125

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385004_2756%3A4. Public record. Not legal advice.
