Petition for Writ of Certiorari — Solid Waste Agency of Northern Cook Cty. v. Army Corps of Engineers

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No. 991 178 Jay 1 4 2000

In the Supreme Court of the Gnited States

SOLID WASTE AGENCY OF NORTHERN COOK COUNTY,

. Petitioner,

UNITED STATES ARMY CORPS OF ENGINEERS, ET AL.,

Respondents.

On Petition for a Writ of Certiorari

to the United States Court of Appeals

for the Seventh Circuit

PETITION FOR A WRIT OF CERTIORARI

ELIZABETH A. CLARK TIMOTHY S. BISHOP

Mayer, Brown & Platt Counsel of Record

1909 K Street, N.W. Mayer, Brown & Platt

Washington, D.C. 20006 190 South LaSalle Street

(202) 263-3000 Chicago, IL 60603

(312) 782-0600

GEORGE J. MANNINA, JR.

O’Connor & Hannan, L.L.P.

1666 K Street, N.W.

Suite 500

Washington, D.C. 20006

(202) 887-1400

Counsel for Petitioner

o3eP

QUESTION PRESENTED

Petitioner Solid Waste Agency of Northern Cook County,

which comprises 23 Cook County, Illinois municipalities,

acquired a 500-acre-plus site to construct an urgently needed

balefill facility to dispose of its communities’ non-hazardous

solid waste. Petitioner’s pians called for filling some 17 acres

of permanently or seasonally wet depressions left by earlier

strip mining operations. The U.S. Army Corps of Engineers

twice informed petitioner that it had no jurisdiction over the

site, then abruptly changed its mind on the sole basis that the

isolated waters on the site were used by migratory birds. The

Corps relied on its so-called “migratory bird rule,” which

interprets the Clean Water Act to reach isolated intrastate

waters that do or potentially could serve as habitat for

migratory birds. Because the Corps asserted jurisdiction,

petitioner was required to apply for a permit to fill the waters

on the site pursuant to Section 404 of the Clean Water Act.

The Corps denied petitioner’s permit application, thereby

destroying a significant municipal public works project

important to some 700,000 local residents.

The question presented in this case, as to which the courts

of appeals are in conflict, is as follows:

Whether the U.S. Army Corps of Engineers, consistent

with the Clean Water Act and the Commerce Clause of the

United States Constitution, may assert jurisdiction over

isolated intrastate waters solely because those waters do or

potentially could serve as habitat of migratory birds.

(I)

il

RULES 29.6 AND 14.1 STATEMENT

Petitioner is the Solid Waste Agency of Northern Cook

County, a municipal corporation created by intergovernmental

agreement under the laws of Illinois. Its member communities

are the cities and villages of Arlington Heights, Barrington,

Buffalo Grove, Elk Grove Village, Evanston, Glencoe,

Glenview, Hoffman Estates, Inverness, Kenilworth,

Lincolnwood, Morton Grove, Mt. Prospect, Niles, Palatine,

Park Ridge, Prospect Heights, Rolling Meadows, Skokie,

South Barrington, Wheeling, Wilmette, and Winnetka.

SWANCC has no parent corporations and no subsidiaries,

wholly-owned or otherwise.

Respondents are the U.S. Army Corps of Engineers, the

U.S. Environmental Protection Agency; Arthur Williams,

Lieutenant General, Chief of Engineers, U.S. Army Corps of

Engineers; Robert E. Slockbower, Lieutenant Colonel,

Chicago District Engineer, U.S. Army Corps of Engineers;

Togo D. West, Jr., Secretary of the Army; Carol M.

Browner, Administrator, U.S. Environmental Protection

Agency; and intervenors below, the Village of Bartlett and

Citizens Against the Balefill.

TABLE OF CONTENTS

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CONSTITUTIONAL AND STATUTORY

STATEMENT

PROVISIONS INVOLVED

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A. The Statutory And Regulatory Scheme .

B. SWANCC’'s Balefill Project And The

Corps’ Exercise Of Jurisdiction ... .. .

C. SWANCC's Challenge To The Mi

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Bird Rule And The District raion ”

Ruling

D. The Seventh Circuit's Decision

. . . .

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REASONS FOR GRANTING THE PETITION __ .

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THE CIRCUITS ARE SPLIT OVER TH

CORPS’ AUTHORITY TO REGULATE

ISOLATED INTRASTATE WATERS BASED

ON THEIR ACTUAL OR POTENTIAL USE

BY MIGRATORY BIRDS ...........

THE MIGRATORY BIRD RULE IS AN

IMPERMISSIBLE INTERPRETATI

THE CWA eons

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IV

TABLE OF CONTENTS — CONTINUED

Page

A. The Plain Language of the Act Requires

Jurisdictional Waters To Be Related To

Navigable Waters ...... 2. +--+ 55

B. Legislative History Confirms That Congress

Did Not Intend The Corps To Base

Jurisdiction Merely On The Presence Of

Migratory Birds ......-.--- +5555

C. No Deference Is Owed To The Migratory

Bird Rule Because It Raises Serious

Constitutional Concerms ............-

D. No Deference Is Owed To The Migratory

Bird Rule Because It Impinges On

Traditional State Powers ...........

Ill. THE PETITION SHOULD BE GRANTED,

NOT HELD FOR JONES v. UNITED

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_—— ”

Vv

TABLE OF AUTHORITIES

Cases:

Alden v. Maine, 119 S. Ct. 2240 (1999) __...... 27

BFP v. Resolution Trust Corp.,

oO eee te a A 26, 28

Bailey v. United States, 516 U.S. 137 (1995) ... 16, 19

Berman v. Parker, 348 U.S. 26 (1954) _......... 28

Board of Governors v. Dimension

Financial Corp., 474 U.S. 361 (1986) ........ 18

Cargill, Inc. v. United States,

| ee, ae passim

Chevron, U.S.A., Inc. v. Natural Resources Defense

Council, 467 U.S. 837 (1984) ............., 15

DeLovio v. Boit, 7 F. Cas. 418

(Cir. Ct., D.Mass. 1815) .......... res ged 18

Dolan v. City of Tigard, 512 U.S. 374 (1994) __._... 28

Building & Construction Trades Council,

485 U.S. 568 (1988) _................ 22, 26

Federal Power Commission v. Union Electric

Co., 381 U.S. 90 (1965)... 2.2.0.0, 19

Gilbert v. United States, 370 U.S. 650 (1962) ...... 16

vi

— continued

TABLE OF AUTHORITIES

;

Hoffman Homes, Inc. v. United States Environmental

Protection Agency, 961 F.2d 1310 (7th Cir. 1992),

vacated, 999 F.2d 256 (7th Cir. 1993) ..... 13, 26

Japan Whaling Association v. American Cetacean

Soc'y, 478 U.S. 221 (1986) ....---- +e eee 19

Jones v. United States, No. 99-5739 .........- 29, 30

Kaiser Aetna v. United States, 444 U.S. 164 (1979) .. 19

Leslie Salt Co. v. United States, 896 F.2d 354

(Sth Cir. 1990)... 2. ee ee ee ees 11, 13, 21

Leslie Salt Co. v. United States, 55 F.3d 1388 .

(Sth Cir. 1995)... ee ee eee ees passim

Maryland v. Wirtz, 392 U.S. 183 (1968) ......--. 24

NLRB v. Catholic Bishop of Chicago, 440 U.S. 490 “

BED ccc ccs ccessereesseeseneseses

New York v. United States, 505 U.S. 144 (1992) .... 27

Perez v. United States, 402 U.S. 146 (1971) ....... 24

Presley v. Etowah County Commission, 502 U.S. 491 ”

OD nw occvecccncnscesesenteeseoss

Printz v. United States, 521 U.S. 898 (1997) ...... 27

Rewis v. United States, 401 U.S. 808 (1971) ......-. 26

Seminole Tribe v. Florida, 517 U.S. 44 (1996) ..... 27

vil

TABLE OF AUTHORITIES — continued

Page(s)

Tabb Lakes Ltd. v. United States, 715

F. Supp. 726 (E.D. Va. 1988), aff'd.

885 F.2d 866 (4th Cir. 1989)... 4

The Daniel Ball, 77 U.S. (10 Wall.) 557

(1870) 2... 16, 17, 18, 20

The Montello, 87 U.S. (20 Wall.) 430 (1874) ... 17.18

United States v. Appalachian Electric Power Co..

311 U.S. 377 (1940) ................ 16, 21

United States v. Bird, 124 F.3d 667 (Sth Cir. 1997),

cert. denied, 523 U.S. 1006 (1998)

neh eee nee 24

United States v. Larkins, 852 F.2d 189

GUO, GUD ww cc cccc ccc rccccececcn. 13

United States v. Lopez, 514 U.S. 549 (1995)... . passim

United States v. Riverside Bayview Homes.

474 U.S. 121 (1985) ............ 9. 17, 18, 21

United States v. Utah, 283 U.S. 64 (1931) ..... 20, 21

United States v. Wilson, 133 F.3d 251

Re passim

Utah v. Marsh, 740 F.2d 799 (10th Cir. 1984) _.__. 11

Village of Belle Terre v. Boraas, 416 U.S. 1 (1974) .. 28

Village of Euclid v. Ambler Realty Ce.,

272 U.S. 365 (1926)

Vill

TABLE OF AUTHORITIES — continued

Page(s)

Constitutional and Statutory Provisions

U.S. Const. art. 1.88 ......--- 000 eee ees 1

| ere ee 19

TRU OL OMIM .. wn. cc ccwccccccesses 1

POG BOD. onc ccscccccncsesvesvens 19

TS UBC. GIBEIED . 0... cece eee ccccecees 3

TUOS OUND 2... vccccnsseeses 1, 3, 5, 16

el eee 1, 3, 16

93 UBC. §IDEMED .. 2 cece ccc ccveces 3

ROOM OUD .. 6a ccccccs sevecntes 27

CRM. TMD) 2... cc ccc cccccces passim

MOOM COIDDD occ cccccvcesccdeserss 4

51 Fed. Reg. 41,206 (Nov. 13, 1986) ....... 1, 4,21

iene trcsccnsesennsiey sasminsicanansmnt womens PDE Ae OEE KE Se ee

ix

TABLE OF AUTHORITIES — continued

Page(s)

Other Authorities

THE ATLAS OF BIRD MIGRATION (ed. J. Elphick 1995) . 25

Bablo, Leslie Salt Co. v. United States: Does

the Recent Supreme Court Decision in

United States v. Lopez Dictate the Abrogation

of the “Migratory Bird Rule”?, 14 Temp. ENVT’L L.

& TECH. J. 277 (1995)

keebede ss sees eeu’ 15

BLACK’S LAW DICTIONARY (4th ed. 1968) ........ 16

Bueschen, Do Isolated Wetlands Substantially Affect

Interstate Commerce?, 46 AM. U. L. REV. 931

ey See nee 14

BO COU, TUB. CIRUED occ ccc ccc ccc ccces 20

THE FEDERALIST (C. Rossiter ed. 1961) .......... 27

Gilbert, The Migratory Bird Rule After Lopez:

Questioning the Value of State Sovereignty in the

Context of Wetland Regulation, 39 WM. &

MARY L. REV. 1695 (1998) ............... 14

H.R. REP. No. 92-911, 92d Cong.,

DD +5 es eGbe bebeaeh eee ké@ke 21

Holman, After United States v. Lopez: Can the Clean

Water Act and the Endangered Species Act

Survive Commerce Clause Attack?, 15 Va. ENVT’L

Dann ¢545646684 56 oe eee ween 26

xX

TABLE OF AUTHORITIES — continued

Page(s)

Leman, The Birds: Regulation of isolated Wetlands

and the Limits of the Commerce Clause,

28 U.C. DAVIS L. REV. 1237, 1267 (1995) ....- - 14

Lessner, Leslie Sait Co. v. United States: Keep the

Birds Out of Your Birdbath: It May Be

Considered The Jurisdiction of the Army Corps

of Engineers as a “Water of the United States, ”

2? VILL. ENVT’L L.J. 463 (1991) ...------ +s: 15

Linehan, Endangered Regulation: Why the Commerce

Clause May No Longer Be Suitable Habitat for

Endangered Species and Wetlands Regulation,

2? Tex. REV. L. & PoL. 365 (1998) .....----- 14

Nagle, The Commerce Clause Meets the Delhi

Sands Flower-Loving Fly, 97 MICH. L. REV.

ta Ae ee eee 14, 25

R. PETERSON, A FIELD GUIDE TO BIRDS

(4th ed. 1980) ... 2... eee eee eres 25

S. REP. No. 92-1236, 92d Cong.,

2d Sess. (1972) ....-- eee ee eet 21

1 L. TRIBE, CONSTITUTIONAL Law (3d ed. 2000) ... . 25

Warner, The Potential Impact of United States v.

Lopez on Environmental Regulation,

7 DUKE ENVT’L L. & POLICY FORUM 321 (1997) . . 14

De eth Cail OR MRM BLAS BANS nS a

PETITION FOR A WRIT OF CERTIORARI

Petitioner Solid Waste Agenc

li y of Northern Cook Cou

a petitions for a writ of certiorari to review a

judgment of the United States Court of Appea

Seventh Circuit in this case. sii

OPINIONS BELOW

The opinion of the court of appeals (A Ke

} pp., in'ra. la-13a

is reported at 191 F.3d 845. The opinion of the diswict ne

(App., infra, 14a-36a) is reported at 998 F. Supp. 946. The

US. Army Corps of Engineers’ decision denying petitioner’s

in thee permit application is set out at Pet. C.A

_ 85- ision) and U.S. C.A. . -

= A. App. 29-189 (appendi-

JURISDICTION

The judgment of the court of a

ppeals was entered on

October 7, 1999. On December 16, 1999, Justice Stevens

extended the time for filing the petition for certiorari to and

including January 14, 2000. The jurisdiction of this Court is

invoked under 28 U.S.C. § 1254(1).

CONSTITUTIONAL AND STATUTORY

PROVISIONS INVOLVED

The Commerce Clause of the Constituti i

tution provides in

relevant part that “Congress shall have ~ seg 7°

regulate Commerce * * * among the »

ConsT. art. I, § 8. g several States.” U.S.

The relevant provisions of the Clean

U.S.C. §§ 1344(a) and 1362(7), are onward bag :

infra, 37a-38a. The pertinent regulation, 33 CFR

§ 328.3(a)(3) (the “other waters rule”), and preamble to 51

Fed. Reg. 41,206 (1986) (the “migratory bird rule”), are

reproduced at App., infra, 39a-40a. )

2

STATEMENT

The issue in this case is whether, pursuant to the Clean

Water Act (“CWA” or “Act”), the U.S. Army Corps of

Engineers (“Corps”) properly has jurisdiction over isolated

waters that are not navigable and not connected or adjacent to

navigable waters, but that do or could provide habitat for

migratory birds. The Corps has asserted such jurisdiction in

this case and others through its “migratory bird rule” (App.,

infra, 40a), which interprets the navigable “waters of the

United States” subject to the CWA to include all waters that

are an actual or potential habitat for migratory birds.

The Corps’ unprecedentedly broad claim of jurisdiction

has caused sharp disagreement among the courts of appeals.

The Fourth Circuit has rejected the Corps’ jurisdictional grab

as contrary to the text of the CWA and constitutionally

impermissible. United States v. Wilson, 133 F.3d 251 (4th

Cir. 1997). The Seventh and Ninth Circuits, in contrast, have

upheld the Corps’ authority. App., infra, la-13a; Leslie Salt

Co. v. United States, 55 F.3d 1388 (9th Cir. 1995) (Leslie

Salt IT). Even the Ninth Circuit, however, recognized that

“(t]he migratory bird rule certainly tests the limits of

Congress’s commerce powers and, some would argue, the

bounds of reason.” Jd. at 1396. Mirroring this circuit split,

Justice Thomas and a number of appellate judges have

criticized the Corps’ position in individual concurrences and

dissents. Cargill, Inc. v. United States, 516 U.S. 955 (1995)

(Thomas, J., dissenting from denial of certiorari); see infra,

pp. 12-13.

The Seventh Circuit’s ruling in this case is legally

erroneous. The notion that the Corps has jurisdiction over

isolated intrastate waters based merely on the actual or

potential presence of migratory birds is inconsistent with the

plain language and legislative history of the CWA. The

migratory bird rule also raises substantial constitutional

concerns under the Commerce Clause, which mandate a

3

narrower reading of the Act to avoid the constituti

tional

difficulty. In those circumstances, the Corps’ migratory bird

tule is entitled to no deference under Chevr '

be set aside. on, and it should

Given the split among the circuits and the Statutorily and

constitutionally untenable basis of the Corps’ assertion of

jurisdiction, it is time for this Court to address the question

presented. Review of the Corps’ migratory bird rule in this

case is especially appropriate and necessary. The Corps’

unfounded claim of jurisdiction has brought to an abrupt halt

the coordinated efforts of 23 municipalities to address the

important local problem of the disposal of solid waste

generated by their 700,000 citizens, derailing a vital, $20-

million-plus public project. Cooperative, multi-municipality

efforts to address common local issues are not properly

matters for federal control. Yet so expansive is the migratory

bird rule that it is difficult to imagine any significant state or

municipal project (or private development) that would not

require the Corps’ approval.

Beyond that, the ubiquitous presence of migratory birds

which number in the billions, means that land-use matters

traditionally subject to local control are now dependent upon

federal approval by the Corps sitting as a sort of super zoning

body determining the “public interest.” That federalization of

local land-use matters is not what Congress had in mind when

it adopted the CWA, and the Commerce Clause does not

permit it.

A. The Statutory And Regulatory Scheme

The CWA prohibits the discharge of “pollutants,”

including dredged and fill materials, into “navigable waters”

without a permit from the Corps. 33 U-S.C. §§ 1311(a)

1344(a), 1362(12). “Navigable waters” are defined in the

CWA only as “the waters of the United States.” § 1362(7).

4

The Corps has defined the “waters of the United States”

in regulations to include not only navigable waters, tidal

waters, and waters adjacent to such waters, but also

{a]ll other waters such as intrastate lakes, rivers,

streams (including intermittent streams), mudflats, sand-

flats, wetlands, sloughs, prairie potholes, wet meadows,

playa lakes, or natural ponds, the use, degradation or

destruction of which could affect interstate commerce

x * *

33 CFR § 328.3(a)(3) (1998), App., infra, 39a."

In the preamble to regulations promulgated in 1986, the

Corps further defined these “other” waters:

EPA has clarified that waters of the United States at [33]

CFR 328.3(a)(3) also include the following waters:

a. Which are or would be used as habitat by birds pro-

tected by Migratory Bird Treaties; or

b. Which are or would be used as habitat by other

migratory birds which cross state lines * * *.

51 Fed. Reg. 41,206, 41,217 (Nov. 13, 1986), App., infra,

40a. It is the Corps’ reliance on this “migratory bird rule

—which the Corps never promulgated in accordance with

Section 553 of the Administrative Procedure Act ant wasn

therefore has never been subject to notice and comment —that

petitioner challenges as a legally improper basis for federal

jurisdiction over petitioner's proposed balefill site.

' The Environmental Protection Agency has issued an identical

definition, 40 CFR § 230.3(s), which is not directly at issue here.

2 See Tabb Lakes Lid. v. United States, 715 F. Supp. 726, 729

(E.D. Va. 1988) (the migratory bird rule is invalid as a substantive

rule promulgated without notice and comment), aff'd, 885 F.2d

866 (4th Cir. 1989).

iit 2 dtc nccraiita Aanidetniaebt ieee tt Obie inecie

5

B. SWANCC’s Balefill Project And The Corps’ Exercise

Of Jurisdiction

The Solid Waste Agency of Northern Cook County

(“SWANCC”) is a municipal corporation comprised of 23

municipalities located in northern and northwestern Cook

County, Illinois. SWANCC was formed to develop a system

for the safe and efficient disposal of non-hazardous municipal

waste for the approximately 700,000 people who live in its

member communities. As part of its mission, SWANCC

proposed to locate and develop a site for disposal of that

waste. App., infra, 2a.

SWANCC purchased a 533-acre parcel of land to create

a balefill—a landfill where baled, rather than loose, waste is

dumped—on 410 acres of the site located exclusively in Cook

County. Part of the balefill site was agricultural land and

part, 298 acres, an “early successional Stage forest” that had

grown up on land previously used as a strip mine for gravel.

The forested portion of the site contained “a labyrinth of

trenches and other depressions” left by the strip mining.

These trenches and depressions collect rainwater during some

or all of the year, forming “permanent or seasonal ponds”

ranging from one-tenth of an acre to several acres in size, and

from a few inches to several feet in depth. App., infra, 2a.

In 1987, after ten public hearings and 2,500 pages of

testimony, the local zoning board and the Cook County Board

of Commissioners approved SWANCC’s balefill project. Pet.

C.A. App. 54. In 1989, SWANCC further obtained a permit

for the project from the Illinois Environmental Protection

Agency, which had reviewed SWANCC’s 1,700 page appli-

cation and conducted four days of hearings. Jd. at 50-51, 55-

56. Because SWANCC planned to fill 17.6 acres of trenches

and depressions within the forested area to construct the

balefill, it also requested rulings from the Corps of Engineers

as to whether it required a permit under Section 404 of the

CWA, 33 U.S.C. § 1344(a). After conducting an on-site

6

i and again

inspection, the Corps informed SWANCC in 1986

in 1987 that those 17.6 acres were not Subject to the Corps

regulatory authority over “navigable waters and that a

Section 404 permit was not required. App., infra, 3a-4a, 16a.

The Corps changed its position after the Illinois Nature

Preserves Commission informed the Corps in July 1987 that

its staff had observed migratory bird species on the property

during a brief site visit. App., infra, 4a. Based on that

assessment, and invoking its “migratory bird rule, the Corps

concluded that the isolated, intrastate strip-mining depressions

on the balefill site were “navigable” “waters of the United

States” within its jurisdiction under the CWA because they

“are used or would be used as habitat by other migratory

birds which cross state lines.” Ibid.

In response to the Corps’ assertion of jurisdiction,

SWANCC submitted an application for a Section 404 permit,

which the Corps denied in 1991. The Corps also denied

SWANCC’s revised application in 1994. App., infra, 4a.

3 The court of appeals incorrectly assumed the Corps had

determined that migratory birds actually used waters on the balefill

site as habitat. App., infra, 10a. To be sure, the Corps stated, in

denying SWANCC’s permit application, that “the water areas are

used as habitat by migratory bird[s] which CTOs state lines. But

it did so based not on any recorded observation of birds using the

water areas as habitat, but based solely on the fact that thirteen

species of migratory birds observed at least once on the oe

site “are known to depend on aquatic environments for a signi -

cant portion of their life requirements.” Pet. C.A. App. 78; see

also id. at 94, 780-781. Nothing in this case turns, however, on

whether the balefill site was actually or only potentially habitat for

migratory birds. Though the extension of federal jurisdiction to

wet areas that might be used by migratory birds may be even more

statutorily and constitutionally problematic, there is no basis for

jurisdiction over actual habitat either.

>

C. SWANCC’s Challenge To The Migratory Bird Rule

And The District Court’s Ruling

In December 1994, SWANCC brought suit against the

Corps in the District Court for the Northern District of

Illinois. SWANCC challenged both the merits of the Corps’

decision and the theory under which it asserted jurisdiction.

Both sides moved for summary judgment on the issue of

jurisdiction, and, on March 25, 1998, the district court

granted summary judgment for the Corps on that question.

App., infra, 14a.

The district court rejected SWANCC’s contention that the

migratory bird rule exceeds the bounds of the Corps’ author-

ity to define “navigable waters” and “waters of the United

States.” The court recognized that “the Fourth Circuit

reached the opposite conclusion in United States v. Wilson.”

App.. infra, 30a. But it “decline[d) to follow” Wilson.

holding that the migratory bird rule is justifiable because one

purpose of the CWA is “to restore and maintain the chemical.

physical, and biological integrity of the Nation’s waters.” Jd.

at 29a, quoting 33 U.S.C. § 1251(a).

The district court also rejected SWANCC’s argument that

the Commerce Clause and United States v. Lopez, 514 U.S.

549 (1995), bar the migratory bird rule and require the statute

to be mead more narrowly. App., infra, 30a-31a. Distinguish-

ing Wilson and Lopez, the court relied on prior circuit

precedent and Leslie Salt I] to conclude that the “commerce

Clause power, and thus the Clean Water Act. is broad enough

to extend the Corps’ jurisdiction to local waters which may

provide habitat to migratory birds and endangered species.”

Ibid.; see also id. at 17a-24a. Subsequently, SWANCC

dismissed the remainder of its claims and the district court

entered final judgment for the Corps. /d. at 2a.

8

D. The Seventh Circuit’s Decision

The Seventh Circuit affirmed. It first rejected SWANCC’s

argument that the migratory bird rule violates the Commerce

Clause, or at least raises enough constitutional problems to

mandate a narrow interpectation of “navigable” “waters of the

United States.” App., ivjra, Sa-9a. The court acknowledged

that the migratory bird rule can be justified, if at all, only

under the third prong of federal regulatory power set forth in

Lopez: “regulation of activities that ‘substantially affect

interstate commerce.” Jd. at Sa, quoting 514 U.S. at 558-559.

It then held that although the Corps had made no showing

that the use of SWANCC’s balefill site by migratory birds

had any effect on interstate commerce, “a single activity that

itself has no discernible effect on interstate commerce may

still be regulated if the aggregate effect of that class of

activity has a substantial impact on interstate commerce ”

App., infra, 6a. Finally, the court held that destruction 0

the natural habitat of migratory birds in the aggregate

‘substantially affects’ interstate commerce” because millions

of people annually spend more than a billion dollars on

hunting, trapping, and observing migratory birds,” including

by “trave[l] across state lines.” /d. at 7a.

Turning to SWANCC’s argument that the migratory bird

rule is not a permissible interpretation of the CWA, the court

of appeals held that the “scope of the Act reaches as many

waters as the Commerce Clause allows.” Accordingly, it

concluded, “because Congress’ power under the Commerce

Clause is broad enough to permit regulation of waters based

on the presence of migratory birds, it is certainly reasonable

for the * * * Corps to interpret the Act in such a manner.

App., infra, 10a.

REASONS FOR GRANTING THE PETITION

This Court should grant review because the circuits are

split as to the jurisdictional reach of the CWA, and because

the Seventh Circuit reached a decision in this case that is

9

erroneous as a matter of statutory interpretation and constitu-

tional law and seriously infringes on prerogatives reserved to

States and municipalities in our system of federalism.

I. THE CIRCUITS ARE SPLIT OVER THE CORPS’

AUTHORITY TO REGULATE ISOLATED INTRA-

STATE WATERS BASED ON THEIR ACTUAL OR

POTENTIAL USE BY MIGRATORY BIRDS

In United States v. Riverside Bayview Homes, 474 US.

121, 129 (1985), this Court upheld the Corps’ construction of

the Clean Water Act to cover not only “navigable or inter-

state waters and their tributaries” but also wetlands “adja-

cent” to such waters. (Emphasis added). This Court reserved

and did “not express any opinion” regarding the Corps’ much

more ambitious claim of authority “to regulate discharges of

fill material into wetlands that are not adjacent to bodies of

open water” —referencing specifically the Corps’ claim in 33

CFR § 328.3(a)(3) to have jurisdiction over “other waters

* * * the use, degradation or destruction of which could

affect interstate commerce.” 474 U.S. at 131 n.8. The courts

of appeals have disagreed about the question reserved in

Riverside Bayview Homes, including about the very furthest

reach of the Corps’ assertion of jurisdiction over “other

waters,” the migratory bird rule.

1. The Fourth Circuit in Wilson held “invalid” the Corps’

“other waters” regulation, 33 CFR § 328(a)(3)—the regula-

tion that the migratory bird rule expressly purports to

“clarifly]” (App., infra, 39a)—on the ground that it “ex-

ceeded [the Corps’ regulatory power] under the Clean Water

Act.” 133 F.3d at 257. Had Congress enacted § 328(a)(3) as

a Statute, the court pointed out, “it would present serious

constitutional difficulties * * * under the Commerce Clause,”

because it “requires neither that the regulated activity have a

substantial effect on interstate commerce, nor that the covered

waters have any sort of nexus with navigable, or even

interstate waters.” Jbid. But, the court held, because the other

10

waters regulation “is not a Statute,” “[a}bsent a Clear indica-

tion to the contrary, we should not lightly presume that

merely by defining ‘navigable waters’ as ‘the waters of the

United States.’ * * * Congress authorized the Army Corps of

Engineers to assert its jurisdiction in such a sweeping and

constitutionally troubling manner.” /bid.

In addition to identifying constitutional difficulties with

the Corps’ claim to jurisdiction over “other waters, the

Fourth Circuit held that § 328(a)(3) “expands the statutory

phrase ‘waters of the United States’ beyond its definitional

limit.” 133 F.3d at 257. “[A]s a matter of statutory con-

struction,” the Fourth Circuit held, “one would expect that

the phrase ‘waters of the United States’ when used to define

the phrase ‘navigable waters’ refers to waters which, if not

navigable in fact, are at least interstate or closely related to

interstate or navigable waters.” [bid.

Seventh Circuit thought Wilson irrelevant for two

4 both mistaken. First, Wilson “involved a challenge

to 33 C.F.R. § 328(a)(3),” while SWANCC “limited its

objections to the propriety of the migratory bird rule as an

interpretation of” § 328(a)(3). App., infra, 10a. Obviously,

however, the Fourth Circuit would not, under its reasoning,

uphold an interpretation or clarification of the very regulation

it held invalid: Wilson effectively struck down not Just

§ 328(a)(3), but also the migratory bird rule. That is espe-

cially clear because the migratory bird rule even more

broadly interprets “waters of the United States than the

underlying regulation. Instead of requiring a connection or

potential connection with interstate commerce, like the regula-

tion, the rule only requires a connection or potential connec-

tion with migratory birds that are “protected by Migratory

Bird Treaties” or “cross state lines.” App., infra, 40a.

Second, the Seventh Circuit pretended that the Wilson

ruling was limited to the question whether “Congress may

regulate waters based on their potential to affect interstate

commerce.” App., infra, at 10a. As the quotations from

Wilson set out above show, Wilson cannot be so narrowly

cabined. The Fourth Circuit struck down the “other waters”

rule because it does not require a showing of a “substantial

effect on interstate commerce” or a “nexus” with navigable

Or interstate waters. 133 F.3d at 257. Unsurprisingly, since

it is solely an interpretation of § 328(a)(3), the migratory bird

rule does not require a showing of a substantial effect on

interstate commerce or any nexus with navigable or interstate

waters either. The Fourth Circuit's Commerce Clause

analysis thus applies equally to the migratory bird rule. The

Seventh Circuit also simply ignored the alternative Statutory

basis for the Wilson decision. Ibid. Without doubt, the Fourth

Circuit holds the migratory bird rule, as well as the regulation

it interprets, beyond the Corps’ statutory authority because it

requires no connection to navigable or interstate waters or

waters closely related thereto.

Wilson cannot be distinguished, and it is flatly at odds

with the Seventh Circuit’s decision in this case that the

migratory bird rule is constitutionally unproblematic and

Statutorily authorized, as well as with the similar decisions of

other circuits. See Leslie Salt Co. v. United States (Leslie Salt

1), 896 F.2d 354, 360 (9th Cir. 1990) (“The commerce clause

power, and thus the Clean Water Act, is broad enough to

extend the Corps’ jurisdiction to local waters which may

provide habitat to migratory birds and endangered species”):

Utah v. Marsh, 740 F.2d 799, 803-804 (10th Cir. 1984)

(upholding Corps jurisdiction over intrastate lake because its

waters were used for fisheries and to irrigate crops which

were subsequently marketed interstate, it was visited by out-

of-state tourists, and it was on migratory bird flyways).

Had SWANCC’s balefill been located in the Fourth

Circuit, the result in this case would certainly have been

different. This Court should not tolerate a circuit split on an

issue as important as the scope of federal jurisdiction under

national legislation like the Clean Water Act. Municipalities

12

and other landowners are entitled to consistent treatment

under the CWA throughout the country; the fate of their

projects should not turn on the happenstance of where their

land is located. And the need for national uniformity is

especially great because anyone planning to dredge or fill

waters within the Corps’ jurisdiction must obtain a permit or

risk facing criminal sanctions. See, e.g., Wilson, 133 F.3d

251 (criminal convictions at issue). Whether an act is a

federal crime or not should not depend on where in the

country the act takes place.

2. Justice Thomas questioned the validity of the Corps’

migratory bird rule in his dissent from the denial of certiorari

to review the Leslie Salt I] decision. He stated that the issue

presented in that case—as here—“raises serious and important

constitutional questions about the limits of federal land-use

regulation in the name of the Clean Water Act.” Cargill,

Inc. v. United States, 516 U.S. 955, 959 (Thomas, J.,

dissenting from denial of certiorari).

Justice Thomas observed that “[tJhe basis asserted to

create federal jurisdiction over petitioner's land” —“the actual

or potential presence of migratory birds on petitioner’s land”

—is “even more far-fetched than that offered, and rejected,

in Lopez.” 516 U.S. at 957-958. Justice Thomas described as

“improper” the Corps’ “assumption * * * that the self-

propelled flight of birds across state lines creates a sufficiemt

interstate mexus to justify the Corps’ assertion of

jurisdiction.” Jd. at 958. He observed that in Leslie Salt, as

here, the Corps made “no showing that humans ever went to

petitioner's property to hunt, trap, or observe migratory

birds.” or “that the cumulative effect of land use involving

* * * wholly isolated [waters] would have a substantial effect

on interstate commerce.” Jd. at 959. There was, in short,

absolutely no explanation how “the activity on the land to be

regulated * * * substantially affect{ed) interstate commerce.”

Ibid.

13

te Justice Thomas concluded that the migratory bird rule

likely stretches Congress’ Commerce Clause powers beyond

breaking point” and expressed, “[iJn light of Lopez, * * *

serious doubts about the propriety of the Corps’ assertion of

jurisdiction over petitioner's land.” 516 U.S. at 958.

Although Justice Thomas’ position did not

votes to review the Leslie Salt II decision, nt. coma a

ow bird rule has since become more urgent with the

iecuie’s 1997 reiecs: re all

se wanes — of the Corps’ jurisdiction over

3. Circuit Judges have been equally critical of the “other

waters and migratory bird rules in individual opinions. In his

concurrence in Hoffman Homes, Inc. v. United States Envtl

Protection Agency, 999 F.2d 256, 262-263 (7th Cir. 1993)

for example, Judge Manion concluded both that the CWA

gives no federal jurisdiction over “isolated wetlands” that

have no effect on the waters of the United States,” and that

even if it did, “the Commerce Clause does not empower

Congress to regulate isolated wetlands * * *. To hold other-

wise would be, in effect, to hold that Congress’ power under

the Commerce Clause is virtually limitless.” /d. at 263: see

also ibid ( The commerce power as construed by the courts

is indeed expansive, but not so expansive as to authorize

regulation of puddles merely because a bird traveling inter-

State might decide to stop for a drink”).* Judge Rymer, in her

ee ee was likewise uni

= the legal basis for the Corps’ migratory bird rule. Leslie

It 1, 896 F.2d at 361 n.1 (Rymer, J., concurring in part

and dissenting in part); see also United States v. Larkins. 852

F.2d 189, 193-194 (6th Cir. 1988) (Merritt, J., concurring).

Judge Manion’s analysis is more fully set forth in his

Homa TY “acated opinion for the Seventh Circuit in Hoffman

omes, inc. v. United States Envtl Protecti

1310 (7th Cir. 1992). Saati,

14

Leslie Salt I, 55 F.3d at 1396 (“The migratory bird rule

certainly tests the limits of Congress’ commerce powers and,

some would argue, the bounds of reason”).

It is no surprise, given these disagreements, that the

Corps’ jurisdictional grab has also drawn considerable

scholarly attention. By and large, commentators recognize

that the Corps’ exercise of jurisdiction over “isolated waters”

and migratory bird habitat pushes the edges (at the very least)

of federal Commerce Clause power. E.g., Nagle, The

Commerce Clause Meets the Delhi Sands Flower-Loving Fly,

97 MICH. L. REV. 174, 185 n.49 (1998) (“Why the fact that

a bird or animal crosses state lines of its own volition and

without being itself an object of interstate commerce is

sufficient for Commerce Clause purposes remains unex-

plained”).°

5 See also, e.g., Gilbert, The Migratory Bird Rule After Lopez:

Questioning the Value of State Sovereignty in the Context of

Wetland Regulation, 39 WM. & MARY L. REV. 1695, 1696 (1998)

(noting “concerns” regarding the validity of the migratory bird

rule “in view of the Lopez decision”); Linehan, Endangered

Regulation: Why the Commerce Clause May No Longer Be Suitable

Habitat for Endangered Species and Wetlands Regulation, 2 TEX.

REV. L. & POL. 365, 414 (1998) (isolated wetland regulations

“will be susceptible to Commerce Clause attack because they are

indefensible as proper regulations of ‘commerce’ under any

untortured definition of the word”); Bueschen, Do Isolated

Wetlands Substantially Affect Interstate Commerce?, 46 AM. ULL.

REV. 931, 950 (1997) (explaining that in light of Lopez, the

migratory bird rule “could be in jeopardy”); Warner, The Potential

Impact of United States v. Lopez on Environmental Regulation, 7

DUKE ENVT’L L. & POLICY FORUM 321, 351 (1997) (“A rule

permitting jurisdiction to be determined solely by potential use ot

a wetland by migratory birds is arguably too tenuously connected

to interstate commerce to trigger the commerce power in light of

Lopez’s substantiality requirement” ); Leman, The Birds: Regulation

of Isolated Wetlands and the Limits of the Commerce Clause, 28

15

Beyond the clear circuit split wi | separa

opinions by Justice Thomas pr ais ain ae t

critical academic commentary demonstrate the diversi ~

views on the propriety of the migratory bird rule and » Ses

that confusion in this area will continue and likel escal

absent this Court’s immediate intervention. ;

Il. THE MIGRATORY BIRD RULE

IS AN IMPERM-

ISSIBLE INTERPRETATION OF THE CWA st

The Seventh Circuit’s decision to d

| efer to the Corps’

interpretation of the Clean Water Act is incorrect. rvs

a defer to an agency’s interpretation of a statute “only

if Congress has not expressed its intent with respect to the

question, and then only if the administrative interpretation is

reasonable.” Presley v. Etowah County Comm’n, 502 U.S

pcg A court “ascertains [whether] Congress had

— ntion on the precise question at issue” by “employing

itional tools of statutory construction,” including analysis

: favs text, structure, “history and policy of the Act.”

7 “ U.S.A., Inc. v. Natural Resources Defense Council

S. 837 , 843 n.9, 862 (1984). Applying that familiar

U.C. Davis L. REV. 1237, 1267 (1995) (“It is unreasonable t

argue that the potential use of an isolated wetland by any speci ;

of migratory bird substantially affects interstate me ng

Bablo, Leslie Salt Co. v. United States: Does the Recent vena

Court Decision in United States v. Lopez Dictate the Abrogati

of the “Migratory Bird Rule”?, 14 TEMP. ENVT’L LL. & were 1

277, 278 (1995) (“the very tenuous tie between migratory birds

tener commerce does not satisfy the tests of the Commerce

ne pager in Lopez”); Lessner, Leslie Salt Co. v. United

ag tose s pod Out of Your Birdbath: It May Be Considered

ey oa a“ Army Corps of Engineers as a “Water of the

re ,” 2 VILL. ENVT LLJ. 463, 500 (1991) (expressing

u a migratory bird habitat “can be declared to be such a

nexus tO interstate commerce as

interst to warrant Arm

Engineers jurisdiction”). siete

16

standard, the migratory bird rule is invalid. It is inconsistent

with the language and history of the CWA, and it fails to pass

muster under established canons of interpretation requiring

that a statute be construed to avoid raising serious constitu-

tional questions and to avoid impinging on areas traditionally

regulated by the states.

‘A. The Plain Language of the Act Requires Jurisdictional

Waters To Be Related To Navigable Waters

The plain language of the CWA prohibits discharges into

“navigable waters,” defined as “waters of the United States.”

33 U.S.C. §§ 1344(a), 1362(7). The Corps and the court

below played favorites with these terms, ignoring the phrase

“navigable waters” and focusing exclusively on the phrase

“waters of the United States.” App., infra, 9a. But “‘[jJudges

should hesitate * * * to treat [as surplusage] statutory terms

in any setting.”” Bailey v. United States, 516 U.S. 137, 145

(1995). The statutory phrases “navigable waters” and “waters

of the United States” are both essential to divining congres-

sional intent. The former concept, properly understood,

forecloses the Corps’ migratory bird rule.

1. “Navigable waters” is a term of art that traditionally

meant “waters navigable in fact” (The Daniel Ball, 77 U.S.

(10 Wail.) 557, 563 (1870)), but that was refined over time

to include those waters capable of navigation through reason-

able improvements. United States v. Appalachian Elec. Power

Co.. 311 U.S. 377, 298-299 (1940); see BLACK’s LAW

DICTIONARY 1179 (4th ed. 1968); Gilbert v. United States,

370 U.S. 650, 655 (1962) (statutory terms are generally to be

given their established common law meaning). No one asserts

that the gravel-mining depressions on SWANCC’s property

are navigable in either sense.

2. The Seventh Circuit ignored this settled common-law

meaning of “navigable waters” and treated that statutory

phrase as surplusage. It justified that approach by pointing to

the CWA’s definition of “navigable waters” as the “waters of

17

we hare States,” then treating that phrase as the sole source

of limits on the Corps’ jurisdiction. App., infra, 9a.

It was error for the court of appeal hrase

__ it S to write the

navigable waters” out of the CWA. In fact, the pre. of

the phrase “waters of the United States.” while somewhat

broader than “navigable waters,” is informed by and incorpo-

rates the idea of navigability. As this Court has held >

phrase means those waters which “form in their ordi

condition by themselves, or by uniting with other om 2

continued highway over which commerce is or may be carried

on with other States or foreign countries in the customa

modes in which such commerce is conducted by water.” The

Daniel Ball, 77 U.S. at 563 (em

‘ % phasis added); see al

Montello, 87 U.S. (20 Wall.) 430, 443 (1874). =

Thus, as the Fourth Circuit explained i | .

phrase ‘waters of the United States’ poe Ae ae =

phrase ‘navigable waters’” naturally “refers to waters which

if mot navigable in fact, are at least interstate or Closel

related to navigable or interstate waters.” 133 F.3d at 257.

The migratory bird rule, like the regulation it purports to

interpret, “defines ‘waters of the United States’ to include

waters that need have nothing to do with navigable or

interstate waters,” and deserves no deference because it

expands the statutory phrase ‘waters of the United States’

beyond its definitional limit.” Jbid. :

*

3. The Seventh Circuit’s reliance on this Court’s decision

in Riverside Bayview Homes as support for its interpretation

of the CWA is misplaced. This Court explained in Riverside

Bayview that Congress’ use of the phrase “waters of the

United States” in the CWA evidences an intent to “regulate

at least some waters that would not be deemed ‘navigable’

under the classical understanding,” and in that sense (only)

the concept of navigability “is of limited import” in the

CWA. Riverside Bayview Homes, 474 U.S. at 133 (emphasis

added). Nowhere, however, has this Court Suggested that the

18

Corps can ignore altogether the concept of navigability, as it

does in its “other waters” and migratory bird rules.

To the contrary, in stark contrast to Corps’ sweeping

definition of “waters of the United States,” the definition this

Court found reasonable in Riverside Bayview—navigable

waters and their “adjacent wetlands” —does accord with the

traditional interpretation of “waters of the United States” as

a “continued highway for commerce.” “Adjacent wetlands”

abut navigable waters, thus forming a “continued highway”

and becoming “waters of the United States.” The Daniel Ball,

77 US. at 563: The Montello, 87 U.S. at 443; see also

DeLovio v. Boit, 7 F.Cas. 418, 423 (Cir. Ct., D.Mass. 1815)

(Storey, J.) (“marsh land, bordering on the sea” may be

within the admiralty jurisdiction). Isolated, man-made

depressions that fill with rainwater are not remotely similar.

Thus, Riverside Bayview provides no support for the extraor-

dinary extension of federal jurisdiction over local land use

approved by the Seventh Circuit.

4. The only statutory analysis engaged in by the court

below was its iteration of the purpose of the Act, which

includes the phrase “biological integrity” and the goal of

ensuring “water quality which provides for the protection and

propagation of * * * wildlife.” App., infra, 10a. But

“[a]pplication of ‘broad purposes’ of legislation at the expense

of specific provisions ignores the complexity of the problems

Congress is called upon to address and the dynamics of

legislative action * * * and, in the end, prevents the effectua-

tion of congressional intent.” Board of Governors v. Dimen-

sion Fin. Corp., 474 U.S. 361, 373-374 (1986).

In contrast to the highly generalized purposes of the Act

relied on by the Seventh Circuit, the CWA’s text is specific

and transparently clear. When it enacted the CWA, Congress

was no stranger to the terms “navigable waters” and “waters

of the United States,” including their common law meanings

and alternatives It had previously used both concepts “to

19

determine the extent of the authority of the {Corps} under the

Rivers and Harbors Appropriation Act of 1899,” 33 U.S.C

§ 403. Kaiser Aetna v. United States, 444 US. 164. 171

(1979). Congress’ choice to use those well-understood worms

to define the scope of the CWA should not be treated lightly

and it supports the Fourth Circuit’s view of the Corps’

Jurisdiction, not the Seventh Circuit’s interpretation.

Equally telling, in the Federal Power Act Congress gave

an agency authority over activities not only on “navigable

waters,” but also on streams “other than those defined in this

chapter as navigable waters, and over which Congress has

Jurisdiction under its authority to regulate commerce with

foreign nations and among the several States.” 16 U.S.C

§ 817 (emphasis added). It follows that “Congress knew how

to draft a Statute to reach” all nonnavigable waters over

which Congress has Commerce Clause jurisdiction. Bailey

516 U.S. at 150. That Congress used no similar language in

the CWA indicates that, contrary to the ruling bel it di

: Ow, it did

not intend the CWA to apply so broadly. :

B. Legislative History Confirms That C i

ongress Did Not

Intend The Corps To Base Jurisdiction Merely On The

Presence Of Migratory Birds

; This Court will not defer to an agency construction where

the legislative history of the enactment shows with sufficient

clarity that [it] is contrary to the will of Congress.” Japan

Whaling Ass'n v. American Cetacean Soc 'y, 478 U.S. 221

233 (1986). Such is the case here. —_

6

It is noteworthy that even under the broad!

y worded Federal

Power Act, . this Court has refused to extend congressional

authority to “intrastate nonnavigable waters which do not flow into

any navigable streams.” Federal Power Comm'n v. Union Elec

Co., 381 U.S. 90, 97 & n.9 (1965). |

20

1. Section 404(a) and the definition of “navigable waters”

as “waters of the United States” originated in the Federal

Water Pollution Control Act Amendments of 1972. In the

thousands of pages of legislative history of those amendments,

isolated waters are mentioned not once. Neither the govern-

ment nor the court below has produced a single such refer-

ence. Yet the extension of federal jurisdiction to isolated

waters implicates many millions of acres. Given the important

policy and political interests at stake in drawing the boundary

line between federal and local control of development, such

a vast expansion of federal authority over heretofore local

concerns would hardly have passed in silence.

Congressional statements about the language that was used

in the statute—“navigable waters” and “waters of the United

States” —reflect established common law definitions. See 118

CONG. REC. H33,756 (1972) (statement of Rep. Dingell,

House floor manager); id. at H33,699 (statement of Sen.

Muskie, Senate floor manager). By defining “navigable

waters” as “waters of the United States,” the legislative

history shows, Congress merely sought to avoid giving

“navigable waters” its most “limited” or “technical”

meaning—navigable in fact—“derived from the Daniel Ball

case.” Id. at H33,756 (Rep. Dingell). Congress wanted a

definition “in line with more recent judicial opinions” that

“expanded that limited view of navigability * * * to include

waterways which would be ‘susceptible of being used * * *

with reasonable improvement,’ as well as those waterways

which include sections presently obstructed by falls, rapids,

sand bars, currents, floating debris, et cetera.” /bid., quoting

United States v. Utah, 283 U.S. 64, 72 (1931). See also ibid.

(Rep. Dingell quotes cases, which all involve waters previ-

ously or currently obstructed to navigation). In other words,

the text was designed to reference the broader definitions of

“navigable waters” and “waters of the United States”

established by this Court. See also 118 CONG. REC. H33,699

(statement of Sen. Muskie).

a a Nr A

21

In light of these explanations, the statement in the House

and Senate conference reports that “(t]he conferees fully

intend that the term ‘navigable waters’ be given the broadest

possible constitutional interpretation” is clear. S. REP. No.

92-1236, 92d Cong., 2d Sess. 144 (1972) (emphasis added):

see also H.R. REP. No. 92-911, 92d Cong., 2d Sess. 131

(1972). Congress simply meant that the CWA should reach

waters capable of navigation by reasonable improvement,

consistent with this Court’s decisions in cases such as

Appalachian Electric and United States vy. Utah. \t does not

mean, as the Seventh and Ninth Circuits have held, that the

CWA “reaches as many waters as the Commerce Clause

allows.” App., infra, 9a (emphasis added); Leslie Salt I, 896

F.2d at 360. Had that been Congress’ intent, it would have

said so expressly, as it did in the Federal Power Act.

2. No different message was sent by Congress when, in

1977, it rejected amendments that would have limited the

Corps’ authority to waters navigable in fact and their adjacent

wetlands. This Court concluded in Riverside Bayview Homes

that Congress’ inaction showed that “the scope of the Corps’

asserted jurisdiction over wetlands was specifically brought to

Congress’ attention,” and that “even those who thought that

the Corps’ existing authority under § 404 was too broad”

recognized that existing legislation should be read to cover

adjacent wetlands. 474 U.S. at 137-138 (emphasis added).

Neither conclusion supports the migratory bird rule.

First, the migratory bird rule was not officially promul-

gated by the Corps until 1986. 51 Fed. Reg. 41206, 41217

(1986); App., infra, 39a. Absent clairvoyance, Congress

could not have “acquiesced in the Corps’ definition of

waters” (474 U.S. at 138) in the migratory bird rule by its

failure to act in 1977. See Leslie Salt 1, 896 F.2d at 361 n.1

(Rymer, J., dissenting) (rejecting argument that Congress

acquiesced in the migratory bird rule because “[t]his 1986

addition to, or clarification of, the Corps’ regulations was not

considered during congressional debates on the [CWA] of

22

1977”). Second, even the government has not ventured to

suggest that “even those who thought that the Corps’ existing

authority under § 404 was too broad” would comfortably read

the existing legislation to cover isolated intrastate depressions

visited by migratory birds. Nor could it: the migratory bird

rule marks the very furthest extent of asserted federal

jurisdiction and is a giant leap beyond the normal bases upon

which the federal government inserts itself into local affairs.

In sum, the legislative history of Section 404 provides no

support for, but contradicts, the migratory bird rule.

C. No Deference Is Owed To The Migratory Bird Rule

Because It Raises Serious Constitutional Concerns

1. The migratory bird rule is also entitled to no deference

because it raises “serious constitutional concerns” and there

is another interpretation that may fairly be ascribed” to the

Act. Edward J. DeBartolo Corp. v. Florida Gulf Coast Bldg.

& Constr. Trades Council, 485 U.S. 568, 577 (1988); see

also NLRB v. Catholic Bishop of Chicago, 440 U.S. 490, at

(1979) (when an agency's “exercise of its jurisdiction a

would give rise to serious constitutional questions” no

deference is owed unless the regulation denotes “the affirma-

tive intention of the Congress clearly expressed”). The

Commerce Clause “is subject to outer limits.” Lopez, 514

U.S. at 557. The migratory bird rule hovers around or

exceeds those limits, at minimum raising “serious constitu-

tional questions.” Even defenders of the migratory bird rule

acknowledge that it “tests the limits of Congress commerce

powers, and, some would argue, the bounds of reason.

Leslie Salt I], 55 F.3d at 1396.

2. The Seventh Circuit recognized that the migratory bird

rule can be justified, if at all, only as regulation of an activity

that “substantially affect[s]” interstate commerce. App.. infra,

6a-7a; Lopez, 514 U.S. at 558-559. But the court did not rest

its decision that the rule is constitutionally unproblematic on

a showing by the Corps that filling gravel-mining depressions

23

on SWANCC’s property would “substantially” affect inter-

state commerce. The terms of the migratory bird rule require

nothing more than the particular waters in question “are or

would be used” as a habitat by migratory birds that are

protected by international treaty or that “cross state lines”

(App., infra, 40a), and the Corps made no showing beyond

that requirement when it determined that SWANCC’s balefill

property is within its jurisdiction. See App., infra, at 6a

(acknowledging that any impact on birds on SWANCC’s

property “has no discernible effect on interstate commerce” ).

The migratory bird rule’s lack of any connection to com-

merce, reflected in the Corps jurisdictional determination in

this case, renders the basis for federal jurisdiction “even more

farfetched than that offered, and rejected in Lopez” and raises

“serious doubts” about the “propriety of the Corps’ assertion

of jurisdiction.” Cargill, 516 U.S. at 958 (Thomas. J,

dissenting from denial of certiorari).

3. The Seventh Circuit avoided the difficulty that migra-

tory bird use of SWANCC’s property has “no discernable

effect on interstate commerce” by theorizing that the “cumu-

lative impact” of “the destruction of migratory bird habitat”

“substantially affects” interstate commerce in hunting and

birdwatching. App, infra, 6a-7a.’ The commerce power may

not be extended by that kind of bootstrapping.

7

The Seventh Circuit disregarded the fact that there has never

been a “showing that the cumulative effect of land use involving

* * * water that is wholly isolated from any water used, or usable,

in interstate commerce” would have a substantial effect on

migratory birds, much less “a substantial effect on interstate

commerce.” Cargill, 516 U.S. at 959 (Thomas, J.) (emphasis

added). There is no evidence that the numbers of any commercially

relevant bird species would diminish as a result of the Corps not

regulating isolated waters. The speculative assumption that filling

a particular intrastate pond or trench will have a noticeable effect

on migratory birds, which in turn will have a substantial effect on

commerce, depends on “pil{ing] inference upon inference,” an

approach rejected in Lopez. 514 U.S. at 567.

Lt

To be sure, “{wJhere the class of activities is regulated

and that class is within the reach of federal power” because

of its aggregated effect on commerce, “the courts have no

power ‘to excise, as trivial, individual instances’ of the

class.” Perez v. United States, 402 U.S. 146, 154 (1971),

quoting Maryland v. Wirtz, 392 U.S. 183, 193 (1968). But

“the de minimis character of individual instances * * * is of

no consequence” only when those instances are “essential

part[s]” of “a general regulatory statute” that “bears a

substantial relation to commerce.” Lopez, 514 U.S. at 558.

Here, isolated, purely intrastate wet areas are not within the

class obviously regulated by Congress in the CWA, nor did

Congress show any concern in the CWA with migratory birds

as a class. And the Corps has never explained how preventing

the filling of isolated, intrastate, man-made depressions is

“essential” to any goal identified by Congress in the CWA.

The “regulated class” approach to Commerce Clause

analysis, which recognizes federal jurisdiction despite the lack

of any significant effect on commerce of particular regulated

circumstances, should have no application in cases such as

this where there is a glaring disconnect between the class

covered by the statute (“navigable” “waters of the United

States”) and the asserted basis of an agency’s jurisdiction

(migratory birds), and where the agency has failed to show

that extending its jurisdiction is essential to the achievement

of any statutory goal. See, e.g., United States v. Bird, 124

F.3d 667, 676 (Sth Cir. 1997) (rejecting the government's

claim that “Congress need only identify a broad ‘class of

activities’ and determine that, viewed in the aggregate, the

class ‘substantially affects’ interstate commerce,” requiring

instead the separate incidents be connected to interstate

commerce).*

* Professor Nagle points out that this Court “has said little about

how far Congress can reach in aggregating activities or how one

decides what aggregations are permissible.” But he notes that the

ee ee ee eee

25

4. The migratory bird rule contains no “jurisdictional

element which would ensure, through case-by-case enquiry”

that particular isolated waters “affec(t] interstate commerce.”

a 514 U.S. at 561. Under the rule, it is enough that the

wa “are or would be used as habitat” by any migrato

bird. App.. infra, 40a. Accordingly, the Bed moe rl

analysis of the impact on commerce of filling the gravel-

mining depressions on SWANCC’s balefill site.

5. The basis of the Corps rule and assertion of jurisdiction

here appears to be that the self-propelled flight of birds across

state or national boundaries alone is enough to implicate the

Commerce Clause, allowing regulation of every place where

the birds might naturally stop. The ramifications of this

assertion are astonishing. Approximately five billion land

birds mugrate across North America every year, with flyways

covering the entire continental United States. THE ATLAS OF

BIRD MIGRATION 54-83 (ed. J. Elphick 1995); R. PETERSON

A FIELD GuIDE To BiRDS 305-370 (4th ed. 1980). By the

Corps’ rationale, the Commerce Clause would stretch to

cover virtually every piece of property in the country ,

“available clues counsel against overly broad aggregations” like

that relied on below: “Lopez rejects any Commerce Clause test that

every conceivable federal statute could satisfy. The Court’s

frequently Stated concern about federalism pushes toward less

Sweeping aggregations. And lower courts have rejected the

contention that Congress can satisfy the Commerce Clause simply

by choosing a broad category of activities whose aggregate effect

On interstate commerce is substantial.” 97 MICH. L. REV. at 197-

198 (footnotes omitted). See also 1 L. TRIBE, CONSTITUTIONAL

Law 825 n.68 (3d ed. 2000) (“Lopez leaves unanswered many

questions regarding focus and levels of generality [in aggregation]

that were raised by Wickard and its progeny”). Review in this

case would give this Court an opportunity to guide the lower

courts in their application of the aggregation principle, which has

taken on greater practical significance after Lopez.

26

regardless of its commercial or noncommercial use.” As in

Lopez, “if we were to accept the Government's arguments,

we are hard pressed to posit any activity by an individual that

Congress is without power to regulate.” 514 U.S. at 564.

At the very least, the migratory bird rule raises “serious

constitutional concerns.” Edward J. DeBartolo Corp., 485

U.S. at 577; see Cargill, 516 U.S. at 959 (“This case raises

serious and important constitutional questions about the limits

of federal land-use regulation in the name of the [CWA] that

provide a compelling reason to grant certiorari”) (Thomas,

J.). Because the Corps’ dubious approach lacks support in the

text or legislative history, much less the requisite “clearest

indication” of congressional support, the Seventh Circuit's

deference to the rule cannot be sustained.

D. No Deference Is Owed To The Migratory Bird Rule

Because It Impinges On Traditional State Powers

The migratory bird rule also runs afoul the interpretative

principle that a court will not assume that Congress intended

to substantially “alter sensitive federal-state relationships” by

regulating conduct “traditionally subject to state regulation”

unless Congress said so clearly. Rewis v. United States, 401

U.S. 808, 811-812 (1971); see BFP v. Resolution Trust

Corp., 511 U.S. 531, 544 (1994) (if a federal law is to be

read to “radically readjus(t] the balance of state and national

* The government conceded as much at oral argument in Hoffman

Homes. See 961 F.2d at 1321 n.9 (government conceded that its

interpretation would allow it to regulate a puddle visited by

migratory birds). See also Holman, After United States v. Lopez:

Can the Clean Water Act and the Endangered Species Act Survive

Commerce Clause Attack?, 15 VA. ENVT'L L.J. 139, 197 (1995)

(“migratory flyways cover the entire United States and, as

birdwatchers will attest, migratory birds will alight almost

anywhere. Thus the migraiory bird rule * * * operates as a limiter-

manque—a limiting rule with no limits”).

me ee ats ae Rel AR Ge ee

27

authority,” “those charged with the duty of islating

must

be] reasonably explicit”). ” ,

| By vastly expanding federal jurisdiction to include tens of

millions of acres of isolated intrastate waters and wetlands

—traditionally the exclusive province of the States and their

subdivisions—the migratory bird rule drastically alters

“sensitive federal-state relationships,” making the Corps a

sort of super zoning board for all permanently or seasonally

wet areas of the United States. Under the migratory bird rule

it is the Corps that ultimately decides whether a project is in

the “public interest” (33 CFR § 320.4(a)), supplanting the

considered judgments of state and local authorities, as it did

in this case. Such a rule was not anticipated by Congress

much less clearly intended, and therefore cannot be sustained.

| In light not only of Lopez, but also this Court’s federalism

Jurisprudence in recent cases suci: as last Term’s sovereign

immunity decisions, Printz v. United States, 521 U.S. 898

(1997), Seminole Tribe v. Florida, 5:7 U.S. 44 (1996), and

New York v. United States, 505 U.S. 144 (1992), this Court

should demand much clearer authority from Congress before

permitting an agency to deprive states and municipalities of

their traditional police powers over the use of land so

ephemerally connected to interstate commerce. “Although

the Constitution grants broad powers to Congress, our

federalism requires that Congress treat the States in a manner

consistent with their status as residuary sovereigns and joint

participants in the governance of the Nation.” Alden v.

Maine, 119 S. Ct. 2240, 2263 (1999). The Founders likewise

understood that the States “form distinct and independent

portions of the supremacy, no more subject, within their

respective spheres, to the general authority, than the general

authority is subject to them, within its own sphere.” THE

FEDERALIST NO. 39, at 245 (C. Rossiter ed. 1961) (J

Madison). |

28

BFP is instructive. There, this Court rejected an interpre-

tation of the Bankruptcy Code that would have preempted

state foreclosure law. The Court explained that the power to

ensure the security of titles to real estate “inheres in the very

nature of [state] government” and that the construction urged

by the government would intrude on “the essential [state]

sovereign interest in the security and stability of title to the

land.” 511 U.S. at 544 & n.8. This Court would not permit

an interpretation of the Code that “displace[d) traditional state

regulation in such a manner” absent a “‘clear and manifest’”

statement of congressional intent. Jd. at 544; see also Lopez,

514 U.S. at 567-568 (emphasizing the need to maintain “a

distinction between what is truly national and what is truly

local”).

The same principle governs here. The migratory bird rule

allows for intrusive federal land-use regulation that impinges

on “the authority of state and local governments to engage in

land use planning,” which this Court has recognized “as long

ago as our decision in Village of Euclid v. Ambler Realty Co.,

272 U.S. 365 (1926).” Dolan v. City of Tigard, 512 U.S.

374, 384 (1994). Because land-use decisions are the preroga-

tive of States and their subdivisions, this Court has repeatedly

deferred to these interests. See Village of Belle Terre v.

Boraas, 416 U.S. 1, 4 (1974); Village of Euclid, 272 U.S. at

388: see also Village of Belle Terre, 416 U.S. at 13 (Mar-

shall, J., dissenting on other grounds) (“zoning is a complex

and important function of the State” which “may indeed be

the most essential function performed by local government”).

Just as federal courts “do not sit to determine whether a

particular housing project is or is not desirable” (Berman v.

Parker, 348 U.S. 26, 32 (1954)), so too should federal

agencies forbear from becoming local land-use authorities.

Thus, the text and history of the CWA, together with

important principles of statutory interpretation that serve to

protect state and local powers from unintended federal

interference, all indicate that the Corps’ migratory bird rule

29

is an impermissible construction of the Act that is owed no

deference. The Seventh Circuit’s contrary decision is errone-

ous and should be reversed.

Il. THE PETITION SHOULD BE GRANTED, NOT

HELD FOR JONES v. UNITED STATES

This Court has granted certiorari in Jones v. United

States, No. 99-5739 (cert. granted Nov. 15, 1999), to decide

whether interpreting the federal arson statute to reach intra-

State arson of residential property is permissible in light of

Commerce Clause constraints on federal power. See Order

List, Nov. 15, 1999 (reformulating the question for review as

“[w]hether, in light of United States v. Lopez, * * * and the

interpretative rule that constitutionally doubtful constructions

should be avoided, * * * [18 U.S.C.] Section 844(i) applies

to the arson of a private residence; and if so, whether its

application to the private residence in the present case is

unconstitutional”).

It appears likely that in Jones this Court will provide

guidance as to the effect Commerce Clause concerns should

have on the proper interpretation of jurisdictional grants in

federal statutes. Stated in the abstract, that issue is of obvious

relevance to this case: we contend that Commerce Clause

problems raised by the migratory bird rule mean that it is an

impermissible construction of the CWA under the established

“interpretative rule that constitutionally doubtful constructions

Should be avoided.” Nevertheless, holding this petition for

Jones would not be useful or appropriate.

To begin with, this case and Jones involve very different

Statutes and entirely different factual bases that are alleged by

the United States to provide a sufficient nexus to interstate

commerce. There is no reason to believe that this Court’s

ruling whether a federal arson conviction may be based on the

burned residence’s receipt of out-of-state gas (and the like)

will illuminate whether the presence of migratory birds is a

proper basis for CWA jurisdiction. The different language of

30

the statutes involved, their different regulatory histories, and

the vastly different questions whether the supply of natural

gas to a residence or use of wet areas by migratory birds are

“interstate commerce,” suggest that however this Court

decides Jones, the issue in this petition will remain alive and

in urgent need of this Court’s review.

The two cases also involve completely different Com-

merce Clause issues. Jones concerns a “case-by-case inquiry”

into evidentiary sufficiency under a statutory jurisdictional

element. This case raises the wholly different question of

when deference is owed to agencies that seek to stretch their

Own jurisdiction to (or beyond) constitutional limits.

Moreover, the Seventh Circuit made abundantly clear that

it regards protecting migratory bird habitat as implicating

interstate Commerce and sees no constitutionally doubtful

interpretation at all in this case. A ruling in Jones that

Commerce Clause problems are to be avoided by narrowing

interpretations of jurisdictional grants would have no impact

whatsoever on the Seventh Circuit on remand following a

GVR, for the Seventh Circuit sees no conceivable Commerce

Clause problem to begin with.

In light of these differences, and because the courts of

appeals are in disarray as to an important issue concerning the

scope of the Clean Water Act that will not be settled in

Jones, we urge this Court to grant independent review in this

case.

CONCLUSION

The petition for a writ of certiorari should be granted.

Respectfully submitted.

ELIZABETH A. CLARK

Mayer, Brown & Platt

1909 K Street, N.W.

Washington, D.C. 20006

(202) 263-3000

GEORGE J. MANNINA, JR.

O’Connor & Hannan, L.L.P.

1666 K Street, N.W.

Suite 500

Washington, D.C. 20006

(202) 887-1400

JANUARY 2000

TIMOTHY S. BISHOP

Counsel of Record

Mayer, Brown & Platt

190 South LaSalle Street

Chicago, IL 60603

(312) 782-0600

Counsel for Petitioner

APPENDIX

la

SOLID WASTE AGENCY OF NORTHERN COOK COUNTY,

Plaintiff-Appellant,

Vv.

UNITED STATES ARMY CORPS OF ENGINEERS, ET AL..

Defendants-Appellees.

No. 98-2277.

United States Court of Appeals.

Seventh Circuit.

Argued Jan. 8, 1999.

Decided Oct. 7, 1999.

Before KANNE, DIANE P. WOOD, and EVANS.

Circuit Judges.

DIANE P. WOOD, Circuit Judge.

This case involves the efforts of a consortium of Illinois

municipalities to find a place to dump their trash. The Solid

Waste Agency of Northern Cook County (*“SWANCC”)

thought that it had found such a spot in a 533-acre parcel of

land straddling Cook and-Kane Counties, Illinois. Before its

“balefill” could open, however, approximately 17.6 acres of

ponds and small lakes located on the parcel had to be filled

in. This case presents the question whether the U.S. Army

Corps of Engineers (“the Corps”), acting under § 404 of the

Clean Water Act (“the Act”), 33 U.S.C. § 1344, had

jurisdiction to require SWANCC to obtain a permit for its fill

operations. SWANCC initially applied for such a permit, but

the Corps denied it. SWANCC then sued, claiming both that

the Corps had no business meddling in the matter at all and

that it was wrong on the merits. For its part, the Corps

Claimed jurisdiction under the so-called “migratory bird rule,”

which interprets the Act as extending to certain intrastate

2a

waters based on their actual or potential use as habitat for

migratory birds. (The parties dispute whether this is a mere

interpretation of statutory language, or something that should

be regarded as a freestanding rule--a point that we discuss

later in this opinion. Our use of the common phrase

“migratory bird rule” is not intended to suggest a position on

that issue.)

The district court granted summary judgment in the

Corps’ favor on the jurisdictional point. At that point,

SWANCC decided voluntarily to dismiss the remainder of its

claims, so that the district court could enter a final judgment

from which it could appeal. See 28 U.S.C. § 1291. We

conclude that the Corps properly asserted jurisdiction in this

matter, and we therefore affirm.

SWANCC is a group of 23 municipalities that banded

together to form a municipal corporation for the purpose of

locating and developing a disposal site for nonhazardous

waste. It found and purchased the 533-acre site to which we

have already referred, from which it hoped to carve out

approximately 410 acres for a “balefill”—that is, a landfill

where the waste is baled before it is dumped. Approximately

298 acres of the proposed balefill site is what is known as an

early successional stage forest. At one ume, it was a strip

mine, but when the mining operation shut down

approximately 50 years ago, a labyrinth of trenches and other

depressions remained behind. Over time, the land evolved

into an attractive woodland vegetated by apne pe A 170

different ies of plants. What were once gravel pits are

now over 200 permanent and seasonal ponds. These ponds

range from less than one-tenth of an acre to several acres in

size, and from several inches to several feet in depth. The

forest is also home to a variety of small animals. Most

important for our purposes are the 100-plus species of birds

that have been observed there. These include many

3a

endangered, water- dependent, and migratory birds. Among

the species that have been seen nesting, feeding, or breeding

at the site are mallard ducks, wood ducks, Canada geese,

Sandpipers, kingfishers, water thrushes, swamp swallows,

redwinged blackbirds, tree swallows, and several varieties of

herons. Most notably, the site is a seasonal home to the

second-largest breeding colony of great blue herons in

northeastern Illinois, with approximately 192 nests in 1993.

This litigation arose because the proposed balefill project

would require the filling of approximately 17.6 acres of

semi-aquatic property within the forested area. Section 404

of the Act prohibits the discharge of fill material into “the

navigable waters” without a permit issued by the Secretary of

the Army, acting through the Chief of Engineers. 33 U.S.C.

§ 1344(a). The term “navigable waters” is defined in the

Statute as “the waters of the United States, including the

territorial seas.” Jd. § 1362(7). Although the Act itself

provides no further explanation of which waters are subject

to § 404’s requirements, regulations issued by the

Environmental Protection Agency (“EPA”) and the Corps

define the phrase “waters of the United States” to include

“intrastate lakes, rivers, streams (including intermittent

streams), mudflats, sandflats, wetlands, sloughs, prairie

potholes, wet meadows, playa lakes, or natural ponds, the

use, degradation or destruction of which could affect

interstate or foreign commerce.” 33 C.F.R. § 328.3(a)(3).

In March 1986, SWANCC contacted the Corps to find

out if a particular 267-acre parcel within the proposed balefill

site included “wetlands” within the meaning of the Act, such

that SWANCC would have to obtain a § 404 permit in order

to fill it in. After an on-site inspection, the Corps initially

decided that the site did not include protected wetlands and

therefore did not fall within its regulatory jurisdiction. One

year later, in February 1987, SWANCC contacted the Corps

to request a determination as to whether a 414-acre parcel of

4a

the site included “wetlands.” The Corps again responded in

the negative.

The Corps changed its position with regard to its

jurisdiction over the balefill site, however, after the Illinois

Nature Preserves Commission (a state agency) informed it

that a number of migratory bird species had been observed

there. This new information made all the difference to the

Corps, because of the so-called migratory bird rule. This

rule, or interpretive convention, reflects the fact that the

definition of “waters of the United States” found in 33

C.F.R. § 328.3(a)(3) has long been understood by the EPA

and the Corps to include all waters, including those otherwise

unrelated to interstate commerce, “which are or would be

used as habitat by birds protected by Migratory Bird

Treaties” or “which are or would be used as habitat by other

migratory birds which cross state lines.” 51 Fed. Reg.

41,206. 41,217 (1986) (“1986 preamble”). In a letter to

SWANCC dated November 16, 1987, the Corps explained

that its two previous determinations that the site did not fall

within its jurisdiction were based on its finding that the site

did not meet the definition of “wetland.” In contrast, the

latest determination—that the Corps did have jurisdiction over

the site—was based on a different theory entirely. Regardless

of wetland status, it now appeared that the aquatic areas of

the site “are or could be used as habitat by migratory birds

which cross state lines.” In response to the Corps’

notification that it intended to exercise jurisdiction over the

site, SWANCC submitted an application for a § 404 permit.

The Corps denied that application, finding that all of the

affected waters in the site were in fact used as habitat by

migratory birds (and thus were not merely potential habitat).

SWANCC then submitted a revised application that was also

denied.

At this stage in the litigation, SWANCC has abandoned

its challenge to the merits of the Corps’ decisions and has

instead focused exclusively on its challenge to the migratory

Sa

bird rule as a basis for the Corps’ jurisdiction. Accordingly,

we accept as true the Corps’ factual findings with regard to

SWANCC’s permit application, including the crucial finding

that the waters of this site were a habitat for migratory birds.

SWANCC offers three arguments to support its position

that the Corps had no authority to require it to obtain a

permit: (1) Congress lacked the power to grant the Corps

regulatory jurisdiction over isolated, intrastate waters based

on the presence of migratory birds alone; (2) the Corps

exceeded its statutory authority in interpreting the Act to

confer jurisdiction as provided by the migratory bird rule:

and (3) the migratory bird rule is invalid because it was not

promulgated in accordance with the notice and comment

requirements of the Administrative Procedure Act (“APA”),

5 U.S.C. § 553.

We begin with the most ambitious of SWANCC’s

arguments, which is that the migratory bird rule is

unconstitutional in light of the Supreme Court’s decision in

United States v. Lopez, 514 U.S. 549, 115 S.Ct. 1624, 131

L.Ed.2d 626 (1995). Prior to Lopez, it had been established

that Congress’ powers under the Commerce Clause were

broad enough to permit regulation of waters based on the

presence of migratory birds. See, e.g., Rueth v. EPA, 13

F.3d 227, 231 (7th Cir. 1993); Leslie Salt Co. v. United

States (Leslie I), 896 F.2d 354, 360 (9th Cir.1990). We must

decide whether Lopez now compels the opposite conclusion.

In Lopez, the Court reaffirmed the well-established

principle that a federal statute based on the Commerce Clause

must serve one of three purposes: (1) regulation of the

channels of interstate commerce; (2) regulation or protection

of the instrumentalities of interstate commerce, or persons or

things in interstate commerce; or (3) regulation of activities

that “substantially affect” interstate commerce. Lopez, 514

U.S. at 558-59, 115 S.Ct. 1624; see also Hodel v. Virginia

6a

Surface Mining & Reclamation Ass'n, Inc., 452 U.S. 264,

276, 101 S.Ct. 2352, 69 L.Ed.2d 1 (1981); Perez v. United

States, 402 U.S. 146, 150, 91 S.Ct 1357, 28 L.Ed.2d 686

(1971); United States v. Wilson, 159 F.3d 280, 285 (7th Cir.

1998). The gun control law at issue in Lopez, like the

migratory bird rule challenged here, could only have been

sustained as an exercise of the third variety of regulatory

power. The Lopez Court concluded that the statute before it,

which made it a crime “knowingly ... [to] possess a firearm

at a place that the individual knows, or has reasonable cause

to believe, is a school zone” did not meet the “substantially

affects” test because (1) it was a criminal statute which, by its

terms, had nothing to do with interstate commerce or

commercial transactions; (2) it contained no jurisdictional

element to ensure that in each case the firearm in question

had in fact affected interstate commerce; and (3) Congress

had offered no legislative findings to support the conclusion

that possessing a gun in a school zone affected interstate

commerce. Lopez, 514 U.S. at 559-62, 115 S.Ct. 1624; see

also Wilson, 159 F.3d at 286.

SWANCC urges us to conclude that the migratory bird

rule suffers from the same defects. But such a conclusion

would overlook important differences between the statute

before the Court in Lopez and the one we are considering.

This court has noted previously that Lopez expressly

recognized, and in no way disapproved, the cumulative

impact doctrine, under which a single activity that itself has

no discernible effect on interstate commerce may still be

regulated if the aggregate effect of that class of activity has

a substantial impact on interstate commerce. United States v.

Hicks, 106 F.3d 187, 189-90 (7th Cir. 1997), citing Lopez,

514 U.S. at 561, 115 S.Ct. 1624; see also United States v.

Jones, 178 F.3d 479 (7th Cir. 1999); United States v.

Thomas, 159 F.3d 296, 298 (7th Cir. 1998).

This approach, which is most closely associated with the

Supreme Court's decision in Wickard v. Filburn, 317 U.S.

7a

111, 63 S.Ct. 82, 87 L.Ed. 122 (1942), indicates the relevant

legal question for our case is whether the destruction of the

natural habitat of migratory birds in the aggregate

“substantially affects” interstate commerce. We observed in

Hoffman Homes, Inc. v. EPA, 999 F.2d 256 (7th Cir. 1993),

that “[t}roughout North America, millions of people annually

spend more than a billion dollars on hunting, trapping, and

observing migratory birds. Yet the cumulative loss of

wetlands has reduced the populations of many species and

consequently the ability of people to hunt, trap, and observe

those birds.” /d. at 261. Statistics produced by the U.S.

Census Bureau reveal that approximately 3.1 million

Americans spent $1.3 billion to hunt migratory birds in 1996,

and that about 11 percent of them traveled across state lines

to do so. Fish & Wildlife Service, U.S. Dep't of the Interior

& Bureau of the Census, U.S. Dep't of Commerce, 1996

National Survey of Fishing, Hunting, and Wildlife-Associated

Recreation 25 (November 1997). Another 17.7 million

people spent time observing birds in states other than their

States of residence; 14.3 million of these took trips

specifically for this purpose; and approximately 9.5 million

traveled for the purpose of observing shorebirds, such as

herons. /d. at 45. There is no need to dally on this point:

we find (once again) that the destruction of migratory bird

habitat and the attendant decrease in the populations of these

birds “substantially affects” interstate commerce. The effect

may not be observable as each isolated pond used by the birds

for feeding, nesting, and breeding is filled, but the aggregate

effect is clear, and that is all the Commerce Clause requires.

SWANCC objects that the migratory bird rule cannot

serve to define the Corps’ jurisdiction, because the rule

excludes nothing. The United States is home to somewhere

between 2.5 and 6 billion birds, two-thirds of which migrate.

Virtually any body of water could serve as a temporary

habitat for at least some of these birds. However, any

Suggestion that next the Corps will be trying to regulate the

8a

filling of every puddle that forms after a rainstorm, at least

if a bird is seen splashing in it, misses the point. A “habitat”

is not simply a place where a bird might alight for a few

minutes, as SWANCC suggests, but rather “the place where

a plant or animal species naturally lives or grows.”

Webster’s Third New International Dictionary 1017 (1993).

Before the Corps may assert jurisdiction under the migratory

bird rule, it must first make a factual determination that a

particular body of water provides a habitat for migratory

birds, which it has done here.

Last. SWANCC offers a broad policy-based argument for

rejecting jurisdiction under the migratory bird rule. The rule

is. it claims, inconsistent with the principles of federalism that

motivated the Court in Lopez, because it erodes the

“distinction between what is truly national and what is truly

local.” Lopez, 514 U.S. at 567-68, 115 S.Ct. 1624. But this

argument works only if, as SWANCC asserts, the protection

of migratory bird habitat is a matter of local concern only.

Once again, that argument is refuted by the numerous

international treaties and conventions designed to protect

migratory birds, see, e.g., Convention for the Protection of

Migratory Birds and Birds in Danger of Extinction, and Their

Environment, U.S.-Japan, 25 U.S.T. 3331, T.1.A.S. No.

7990 (1972); Convention for the Protection of Migratory

Birds and Game Mammals, U.S.-Mex., 50 Stat. 1311, T-.S.

No. 912 (1936); Convention for the Protection of Migratory

Birds. U.S.-Gr. Brit., 39 Stat. 1702, T.S. No. 628 (1916), as

well as the case law recognizing the “national interest of very

nearly the first magnitude” in protecting such birds, North

Dakota v. United States, 460 U.S. 300, 309, 103 S.Ct. 1095,

75 L.Ed.2d 77 (1983); see also Missouri v. Holland, 252

U.S. 416, 40 S.Ct. 382, 64 L.Ed. 641 (1920). Even less

persuasive is SWANCC’s suggestion that giving a federal

agency (here, the Corps) the power to override decisions by

local land use and zoning boards to permit the filling of local

waters conflicts with notions of state sovereignty. To the

9a

contrary, because the regulation of migratory bird habitat is

a permissible exercise of Congress’ authority, the Supremac

Clause, U.S. Const. art. VI, cl. 2., Squarely supports ru

legitimacy of giving precedence to federal law in this area

III

SWANCC next contends that, even if Con ress law

— have granted the Corps jurisdiction over isolated ae

Of water based on the presence of migratory birds, it did not

do So. As noted above, the Act expressly limits the Corps’

Jurisdiction to “the waters of the United States.” The EPA

and the Corps have defined this term to include “[a]ll other

waters the use, degradation or destruction of which could

affect interstate or foreign commerce.” They further have

interpreted the phrase “could affect interstate or foreign

commerce as permitting jurisdiction based on the presence

of migratory birds. It is this second level of agenc

interpretation that SWANCC deems excessive. ia

We review an agency’s interpretati it i

charged with administering cake Ge oud poor

Chevron U.S.A. Inc. v. Natural Resources Defense Council

Inc., 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984).

The first question is whether the plain meaning of the text of

the statute either supports or opposes the regulation. If so

the analysis ends with the court’s application of the plain

meaning. Td. at 842, 104 S.Ct. 2778. But if the statute is

either ambiguous or silent on the issue, the court must defer

to the agency interpretation so long as it is based on a

reasonable reading of the statute. Jd. at 843, 104 S.Ct. 2778

It is well established that the geographical

= reaches as many waters as the Sa tn ag

ns 2 &., Rueth, 13 F.3d at 231; United States v. Huebner.

.2d 1235, 1239 (7th Cir. 1985); United States y Byrd

609 F.2d 1204, 1209 (7th Cir. 1979). Thus, if Congress

possesses the power to regulate a body of water under the

Act, generally this court will conclude that it has in fact done

10a

so. Accordingly, because Congress’ power under the

Commerce Clause is broad enough to permit regulation of

waters based on the presence of migratory birds, it is

certainly reasonable for the EPA and the Corps to interpret

the Act in such a manner. Accord Leslie Salt 1, 896 F.2d at

360.

SWANCC believes that this conclusion is at odds with

the Fourth Circuit's decision in United States v. Wilson, 133

F.3d 251 (4th Cir. 1997). Wilson involved a challenge to 33

C.F.R. § 328(a)(3), the regulation that defines “waters of the

United States” to include all waters “the use, degradation or

destruction of which could affect interstate or foreign

commerce.” The court found the regulation to be an

unreasonable interpretation of the Act based on its suspicion

that Congress lacks the power to regulate waters that “could”

affect interstate or foreign commerce. In our case, however,

the question whether Congress may regulate waters based on

their potential to affect interstate commerce is not presented,

because the unchallenged facts show that the filling of the

17.6 acres would have an immediate effect on migratory birds

that actually use the area as a habitat. Thus, we need not,

and do not, reach the question of the Corps’ jurisdiction over

areas that are only potential habitats. Moreover, we note that

SWANCC has not attacked 33 C.F.R. § 328(a)(3) here.

Instead, it has limited its objections to the propriety of the

migratory bird rule as an interpretation of 33 C .F.R.

§ 328(a)(3).

SWANCC'’s remaining statutory interpretation argument

asks us to find the migratory bird rule unreasonable because

it is designed to preserve wildlife rather than water quality.

This point overlooks the fact that the Act’s stated purpose is

“to restore and maintain the chemical, physical, and

biological integrity of the Nation’s waters.” 33 U.S.C. §

1251(a). SWANCC’s suggestion that the Corps’ jurisdiction

must be defined solely by reference to water quality is itself

inconsistent with the Act and must be rejected.

lla

IV

Last, SWANCC challenges the migratory bird rule on the

ground that it was promulgated in violation of the notice and

comment requirements of the APA. See 5 U.S.C. § 553.

Our Starting point here is with the fact that the APA does not

require administrative agencies to follow notice and comment

procedures in all situations. Section 553(b)(3)(a) specifically

exempts “interpretive rules, general statements of policy, or

rules of agency organization, procedure, or practice” from the

requirement. In order to succeed on its APA claim, then

SWANCC must convince us that the migratory bird rule is a

legislative (also termed “substantive”) rule, rather than an

interpretive rule or policy statement. See Metropolitan Sch.

Dist. of Wayne Township v. Davila, 969 F.2d 485, 489-90

(7th Cir. 1992); General Motors Corp. v. Ruckelshaus, 742

F.2d 1561, 1566-67 (D.C. Cir. 1984). |

| That, in our view, it cannot do. We explained the

difference between legislative and interpretive rules at some

length in Hoctor v. U.S. Dept. of Agriculture, 82 F.3d 165

(7th Cir. 1996), where we found that a rule requiring certain

wild animal containment fences to be eight feet tall was

legislative. The reason for this was straightforward: nothing

in the idea of a “secure” containment could tell someone

whether 7 1/2 feet, 8 feet, or 8 1/2 feet, would be “secure”

enough. The statute in question (the Animal Welfare Act, 7

U.S.C. § 2131 et seg.) did not impose a duty to build a fence

of a certain height. Instead, it authorized the agency to

impose a specific obligation that would implement the general

statutory goals. Here, the statute itself defines the

jurisdictional reach of the Act, and regulations issued under

the notice- and-comment procedures have elaborated further

upon that definition. There is, following Hoctor’s

common-sense approach, something to interpret here: the use

of the term “waters” and “navigable waters” in 33 U.S.C. §§

1344(a) and 1362(7), and the specific examples of such

waters given in 33 C.F.R. § 328.3(a)(3).

l2a

It is also noteworthy that the migratory bird “rule” first

made its appearance in the Federal Register publication of the

Corps’ 1986 recodification of the regulatory definition of

“waters of the United States” in 33 C.F.R. § 328(a)(3), when

it moved these rules from Part 323 to Part 328 of Title 33 of

the Code. See 51 Fed. Reg. 41206, 41217 (1986). The

preamble offered several examples of waters that came within

the regulatory definition, including those used as habitat for

migratory birds, as well as examples of waters that normally

would not fall within the definition. This, in our view, was

interpretation. Moreover, it is hard to see what would have

been different if formal notice-and-comment rulemaking had

been used, except perhaps the page of the Federal Register on

which this statement appeared. We do not wish to discourage

agencies from offering concrete examples of the ways in

which their rules will apply, see Hoctor, 82 F.3d at 170, and

we believe that is all that the Corps and the EPA did here.

The Corps has also argued that SWANCC’s challenge to

the migratory bird rule comes too late, because SWANCC did

not file suit in the district court until December 1994, more

than six years after the migratory bird rule was first

published. There is a general six-year statute of limitations

for civil actions against the United States found in 28 U.S.C.

§ 2401(a), which applies to lawsuits brought pursuant to the

APA. See Polanco v. United States Drug Enforcement

Admin. , 158 F.3d 647, 652 (2d Cir. 1998); Sierra Club v.

Slater, 120 F.3d 623, 631 (6th Cir. 1997); see also Village

of Elk Grove Village v. Evans, 997 F.2d 328, 331 (7th Cir.

1993) (recognizing cases holding same, but not expressly

reaching the issue). Even if the fact that the Corps did not

raise this argument in the district court does not bar it now

from making the argument, we doubt that a party must (or

even may) bring an action under the APA before it knows

that a regulation may injure it or even be applied to it.

Compare United States v. Kubrick, 444 U.S. 111, 100 S.Ct.

352, 62 L.Ed.2d 259 (1979) (claim under the Federal Tort

l3a

Claims Act accrues at the ume plaintiff knows of both the

existence and Cause of his injury). We therefore do not reach

the Corps’ limitations argument, since it would have no effect

on the outcome in light of our resolution of SWANCC’s

substantive APA challenge.

We conclude that the decision to regulate isolated waters

based on their actual use as habitat by migratory birds is

within Congress’ power under the Commerce Clause. and that

it was reasonable for the Corps to interpret the Act as

authorizing this regulation. Accordingly, we AFFIRM the

judgment of the district court.

l4a

SOLID WASTE AGENCY OF NORTHERN COOK COUNTY,

Plaintiff,

Vv.

UNITED STATES ARMY CORPS OF ENGINEERS, et al.,

Defendants.

No. 94 C 7489.

United States District Court,

N.D. Illinois,

Eastern Division.

March 25, 1998.

MEMORANDUM OPINION AND ORDER

LINDBERG, District Judge.

This action concerns the future of a 533-acre parcel of

real estate owned by plaintiff Solid Waste Agency of

Northern Cook County. Defendant United States Army Corps

of Engineers asserted regulatory jurisdiction over the property

after determining that it contained approximately fifty-five

acres of navigable waters as defined by the Clean Water Act.

33 U.S.C. § 1362(7). It then denied plaintiff a permit to

develop the property under section 404 of that statute. 33

U.S.C. § 1344(a). Plaintiff sought judicial review of these

actions under the Administrative Procedure Act, 5 U.S.C. §§

701 et seq. (*APA”), and the parties filed cross-motions for

summary judgmert on the issue of jurisdiction. For the

reasons below, plairuiff's motion for summary judgment will

be denied and defendant’s motion for summary judgment will

be granted.

I. Factual and Procedural Background

Plaintiff Solid Waste Agency of Northern Cook County

(“SWANCC”) is a municipal corporation created by

lSa

intergovernmental agreement under the laws of Illinois.

Plaintiff owns a 533-acre parcel of real estate located in Cook

and Kane Counties, which, due to its prior incarnation as a

gravel mining pit, contains large surface depressions that now

hold rainwater and other precipitation. Plaintiff sought to

convert approximately 180 acres of the property into a

balefill, a repository for non-hazardous solid waste that

cannot be recycled or otherwise removed from the waste

stream. The Army Corps of Engineers determined that 17.6

acres of the balefill area contained “navigable waters” as

defined by the Clean Water Act, 33 U.S.C. § 1362(7), and it

therefore required plaintiff to obtain a permit for the project

under section 404(a) of that statute, 33 U.S.C. § 1344(a).

Section 404(a) of the Clean Water Act authorizes the

Corps to issue permits for the “discharge of dredged or fill

material into the navigable waters at specified disposal sites.”

33 U.S.C. § 1344(a). The Clean Water Act defines navigable

waters as “the waters of the United States.” 33 U.S.C. §

1362(7). By regulation, the Army Corps of Engineers has

further defined the phrase “waters of the United States” to

include “[aJll other waters such as intrastate lakes. rivers,

streams (including intermittent streams), mudflats, sandflats.

wetlands, sloughs, prairie potholes, wet meadows. playa

lakes, or natural ponds, the use, degradation or destruction of

which could affect interstate or foreign commerce.” 33

C.F.R. § 328.3(a)(3). In a preamble to this regulation, the

Corps has explained that the term “other waters” includes

those which “are or would be used as habitat by other

migratory birds which cross state lines.” 51 Fed. Reg.

41,217 (Nov. 13, 1986). For lack of a better term. perhaps,

this language in the preamble has been described as the

“migratory bird rule.”

On March 12, 1986, plaintiff invited the Corps to

determine whether its property contained any “apparent

wetlands.” (R. 34,594.) On April 17, 1986, the Corps

indicated that the SWANCC property did not contain any

16a

wetlands or lakes as defined by 33 C.F.R. § 323.2(c) and (e).

On February 25, 1987, after acquiring additional land,

plaintiff again requested the Corps to indicate whether its

property contained any “protected wetlands.” (R. 34,598.)

On March 4, 1987, the Corps issued a virtually identical

letter stating that the property did not contain any wetlands or

lakes under 33 C.F.R. §§ 323.2(b) or 328.3(b). In each

letter, the agency stated that it did not have jurisdiction over

the property and that plaintiff would not need a permit to

develop it.

On July 8, 1987, the Illinois Nature Preserves

Commission asked the Corps to consider whether the

SWANCC property might be subject to federal jurisdiction

under 33 C.F.R. § 328.3(a)(3) on the grounds that four

different species of migratory birds had been observed there.

The agency agreed, and on November 16, 1987 it asserted

jurisdiction over the waters on the SWANCC property for the

reason that they were used or could be used as a habitat by

migratory birds. It explained that its previous denial of

jurisdiction “was based on the fact that the water areas did

not meet the definition of a wetland or lakes, and not on the

broader definition of ‘waters of the United States.’” (R.

34,619.) Plaintiff then submitted two successive applications

for a section 404(a) permit to begin the balefill project.

When those applications were denied, plaintiff filed the

instant lawsuit.

The parties have filed cross-motions for partial summary

judgment on the issue of whether the Army Corps of

Engineers has regulatory jurisdiction over the 17.6 acres of

water on the proposed balefill site. A supplemental brief in

support of the government’s motion was submitted by

intervenor-defendants Village of Bartlett and Citizens Against

the Balefill. Plaintiff has argued that the Corps lacks

jurisdiction because (1) the migratory bird rule exceeds the

legislative authority created by the commerce clause, (2) the

agency's assertion of jurisdiction over the waters of the

17a

Proposed balefill was arbitrary and capricious (3) the

migratory bird rule goes beyond the mandate of the Clean

Water Act, and (4) the rule was adopted in violation of the

notice and comment requirements of the APA. On May 22,

1997, the court heard Oral argument on these j

will now address them in turn. wen ay

II. Discussion

A. Commerce Clause

| Plaintiff contends that the waters of the proposed balefi

site are not subject to federal regulatory Poor wom under :

commerce Clause. It argues that the migratory birds on the

balefill site do not have any relationship with interstate

commerce because they do not support any human

commercial activity on the site itself. Noting that the balefil]

area is Closed to the public and is not visible from adjacent

Properties, Plaintiff reasons that it cannot be subject to federal

Jurisdiction because “[bJirds do not conduct commerce

people do.” (Pl.’s S.J. Mem. at 3.) The court must

therefore decide whether the commerce Clause authorizes the

federal government to exercise regulatory jurisdiction over

a intrastate waters that serve as a habitat for migratory

The Seventh Circuit addressed this very issue in Hoffman

Homes, Inc. v. Administrator, U.S. EPA, 96} F.2d 1310 (7th

Cir. 1992) “Hoffman Homes I”. In that case, a residential

developer was fined after it filled a one-acre pond on its

Property without a permit. /d. at 131]. The EPA had

asserted jurisdiction over the pond pursuant to 40 C.F.R §

230.3(s)(3)' after finding that it could be used as a habitat by

. The EPA’s definition of “waters of

the United States”

40 C.F.R. § 230.3(s)(3) is identical to that adopted by the yen

Corps of Engineers at 33 C_F.R. 328 offman Homes

II, 999 F.2d at 260. — oe .

18a

migratory birds. /d. at 1311-1312. The Seventh Circuit held

that the EPA had exceeded its authority under the commerce

clause by extending jurisdiction over the pond based solely on

its potential use as a habitat for migratory birds. /d. at

1321-1322. Reasoning that birds do not affect commerce until

they are “watched, phutographed, shot at or otherwise

impacted by the people who do,” id. at 1320, the court

explained that:

The EPA has provided evidence of only one interstate

connection: [The pond] is a potential landing site for

migratory birds. Although we recognize that the

Commerce Clause power is broad, it has never been

extended to reach all areas in (much less those only

potentially in) migratory bird flyways. Such an extension,

we believe, ae. « effectually obliterate the distinction

between what is national and what is local and create a

completely centralized government. After all, what area

of the United States is not a potential landing spot for

migratory birds? The Commerce Clause, at the very

least, requires some connection to human commercial

activity.

Id. at 1321-1322 (citations omitted). In addition to holding

that 40 C.F.R. § 230.3(s)(3) was unconstitutional, the court

concluded that the regulation went beyond its statutory

mandate because the Clean Water Act did not authorize the

regulation of isolated intrastate wetlands. /d. at 1316.

On rehearing, the court vacated its first opinion and held

that 40 C.F.R. § 230.3(s)(3) did not violate the commerce

clause. Hoffman Homes, Inc. v. EPA, 999 F 2d 256, 260-261

(7th Cir.1993) (“Hoffman Homes II”). The court explained

that it was reasonable for the EPA to interpret the regulation

as extending its jurisdiction to waters whose connection with

interstate commerce was “potential rather than actual,

minimal rather than substantial.” Jd. at 261. It further

explained that the potential use of wetlands by migratory

19a

birds was sufficient to invoke commerce clause jurisdiction

because “millions of people annually spend more than a

billion dollars on hunting, trapping, and observing migratory

birds” and “the cumulative loss of wetlands has reduced

populations of many bird species.” Jd. at 261. The court

nevertheless ruled in favor of the developer because the EPA

had not presented substantial evidence that the water site was

a suitable or potential habitat for migratory birds. /d. at

261-262.

The Seventh Circuit has not been alone in suggesting that

the migratory bird rule is a valid application of federal

commerce clause power. In Leslie Salt Co. v. United States,

896 F.2d 354 (9th Cir.1990), a company sought to develop

4 property that contained surface depressions as a result of

previous industrial usage. Jd. at 355-356. The Army Corps

of Engineers asserted jurisdiction over the site under 33

C.F.R. § 328.3(a) because the excavations collected water on

a seasonal basis and could be used as a habitat for migratory

birds. Jd. at 357, 360. The district court held that the ponds

were not “other waters” under 33 C.F.R. § 328.3(a) because

they were not of a natural origin and were only seasonally

filled. Leslie Salt Co. v. United States, 700 F.Supp. 476

(N.D. Cal.1988) (“Leslie Salt I”). The Ninth Circuit

reversed, explaining that the “commerce clause power, and

thus the Clean Water Act, is broad enough to extend the

Corps’ jurisdiction to local waters which may provide habitat

to migratory birds and endangered species.” Leslie Salt Co.

v. United States, 896 F.2d 354, 360 (9th Cir.1990) (“Leslie

Salt IT”). When the Court of Appeals remanded the case to

the district court to determine whether the ponds could be

used as a habitat by migratory birds, the district court found

that the property was a seasonal home to more than fifty

species of migratory birds and was thus subject to federal

commerce clause jurisdiction. Leslie Salt Co. y. United

States, 820 F.Supp. 478, 480 (N.D. Cal.1992) (“Leslie Salt

III“). On a second appeal, the Ninth Circuit affirmed this

20a

finding and reiterated that the migratory bird rule was a valid

exercise of the federal commerce clause power. Leslie Salt

Co. v. United States, 55 F.3d 1388, 1392 (9th Cir. 1995)

(“Leslie Salt IV”).

The Tenth Circuit reached a similar result in Utah vy.

Marsh, 740 F.2d 799 (10th Cir.1984). In that case, the

Army Corps of Engineers asserted regulatory jurisdiction over

an intrastate lake pursuant to a regulation which, like 33

C.F.R. § 328.3(a), conferred administrative authority over

isolated wetlands whose degradation or destruction could

affect interstate commerce. /d. at 802 & n. 4, 803. Plaintiff

argued that the lake had no effect on interstate commerce

because it was located entirely within the borders of the state.

Id. at 803. The court explained that the lake was subject to

federal commerce clause jurisdiction because, among other

things, it was “on the flyway of several species of migratory

waterfowl which are protected under international treaties.”

Id. at 804.

These cases establish that the commerce clause authorizes

the federal government to regulate isolated intrastate waters

that serve as a habitat for migratory birds. The reason for

this rule, it seems, is that the curnulative degradation of

intrastate waters could have a substantial effect on interstate

commercial interests relating to those birds. See Hoffman

Homes II, 999 F.2d at 261 (“cumulative loss of wetlands has

reduced populations of many bird species and consequently

the ability of people to hunt, trap, and observe those birds”).

Under this rule, a federal agency may assert jurisdiction over

intrastate waters even if the destruction of those particular

waters will not have a substantial effect on interstate

commerce and there is no evidence that migratory birds

support human commercial activity there.

There is reason to consider whether this rule remains

valid after the recent decision in United States v. Lopez, 514

U.S. 549, 115 S.Ct. 1624, 131 L.Ed.2d 626 (1995). In that

2la

case, the Supreme Court held that Congress exceeded its

commerce Clause powers by imposing criminal sanctions on

the possession of handguns in local school zones. Id. 514

U.S. at 551, discussing 18 U.S.C. § 922(q). The government

argued that the prevention of violent crime in local school

zones was related to interstate commerce because education

promotes a sound national economy, the threat of violence

deters interstate travel, and the cost of violent crime is spread

to the population as a whole through insurance. /d. at

563-564. After surveying the history of commerce Clause

Jurisprudence, the Court explained that the commerce clause

authorizes Congress to regulate (1) the use of the channels of

interstate Commerce, (2) the instrumentalities of interstate

commerce, or the persons or things in interstate commerce,

and (3) activities that substantially affect interstate commerce.

Id. at 558-559. Deciding that only the last category applied

to the statute in question, the Court held that the possession

of a gun in a local school zone is not “an economic activity

that might, through repetition elsewhere, substantially affect

any sort of interstate commerce.” Jd. at 567. It further

explained that the statute could not be sustained under case

law upholding the regulation of activities “that arise out of or

are connected with a commercial transaction, which viewed

in the aggregate, substantially affects interstate commerce.”

Id. at 561. The statute was therefore declared

unconstitutional.

| The Fourth Circuit has recently suggested that the

migratory bird rule is unconstitutional under Lopez. In

United States v. Wilson, 133 F.3d 251 (4th Cir.1997), the

appellant was convicted of filling intrastate wetlands without

a@ permit in violation of the Clean Water Act, 33 U.S.C. §§

13192) A) and 1311(a). /d. at 254. The Army Corps of

Engineers had asserted jurisdiction over the fill areas pursuant

to 33 C.F.R. § 328.3(a)(3), and the appellant challenged the

validity of this regulation under both the Clean Water Act and

the commerce clause. Writing for the majority, Judge

22a

Niemeyer stated in dicta and without explanation that the

regulation presented “serious constitutional difficulties,

because, at least at first blush, it would appear to exceed

congressional authority under the Commerce Clause.” Id. at

257. Writing separately, Judge Luttig declined to adopt this

portion of the majority opinion on the grounds that it was

based on an overly expansive reading of the commerce

clause. See Wilson, 133 F.3d at 266 (Luttig, J., dis.).

Respectfully, this court does not agree that Lopez places

the regulation of intrastate migratory bird habitats beyond the

reach of federal commerce clause jurisdiction. It is well

established that the commerce clause authorizes the federal

government to regulate activities whose effect on interstate

commerce is substantial only in the aggregate. See, e.g.,

Wickard v. Filburn, 317 U.S. 111, 127-128, 63 S.Ct. 82, 87

L.Ed. 122 (1942) (commerce clause allows regulation of

private commercial transactions that have a substantial effect

on interstate commerce when “taken together with that of

many others” but are otherwise trivial); Maryland v. Wir'z,

392 U.S. 183, 197 n. 27, 88 S.Ct. 2017, 20 L.Ed.2d 1020

(1968) (“where a general regulatory statute bears a substantial

relation to commerce, the de minimis ye of me

instances arising under that statute is of no conseque :

Pry v. United ~ 421 U.S. 542, 547, 95 S.Ct. 1792, 44

L.Ed.2d 363 (1975) (purely intrastate activity may be

regulated “where the activity, combined with like conduct by

others similarly situated, affects commerce among the States

or with foreign nations”). The Supreme Court expressly

affirmed this line of cases in Lopez, 514 U.S. at 557, quoting

Wirtz, 392 U.S. at 197 n. 27. Distinguishing Wickard on the

facts, the Lopez Court held that the criminal statute at issue

did not concern activities which might substantially affect

interstate commerce through “repetition” or when “viewed in

the aggregate.” 514 U.S. at 560-561, 567. Thus, while the

Lopez decision may help to define the outer limits of federal

commerce clause jurisdiction, it does not signal a retreat from

23a

the constitutional principles set forth in Wickard and its

progeny.

The migratory bird rule finds ample support in this line

of cases. Migratory birds have long been regarded as a proper

subject for federal commerce clause regulation. See Andrus

v. Allard, 444 U.S. 51, 63 n. 19, 100 S.Ct. 318, 62 L.Ed.2d

210 (1979) (“assumption that the national commerce power

does not reach migratory wildlife is Clearly flawed”);

Hoffman Homes II, 999 F.2d at 261 (“millions of people

annually spend more than a billion dollars on hunting,

trapping, and observing migratory birds”); Cochrane v.

United States, 92 F.2d 623. 627 (7th Cir.1937) (commerce

Clause allows federal government “to protect the game,

nongame, and insectivorous birds which migrate with the

changing seasons”). By implication, the power to protect

migratory birds extends to the habitats in which they live.

While the destruction of a single habitat is unlikely to affect

the viability of migratory bird populations, the destruction of

humerous such habitats may, in the aggregate, have a

substantial affect on their livelihood. See Hoffman Homes II,

999 F.2d at 261 (cumulative loss of habitat has reduced the

population of many bird species and has impaired the ability

of people to hunt. trap, and observe them). On this point, the

following analysis is persuasive:

Isolated wetlands provide habitat to migratory birds

whose continued existence supports billions of dollars in

interstate commerce. The incremental destruction of

migratory bird habitat directly and negatively impacts

migratory bird populations and, thereby interstate

commerce. Isolated wetlands are a crucial link in the

direct chain of causation between healthy migratory bird

populations and interstate commerce. It should,

therefore, be irrelevant whether a migratory bird is ever

observed, photographed, or hunted at the particular

isolated wetland in question. Unlike in Lopez, the

connection of isolated wetlands to interstate commerce is

24a

well-documented and does not require the court to “pile

inference upon inference” in a manner that gives rise to

a general federal police power.

Lori J. Warner, “The Potential Impact of United States v.

Lopez on Environmental Regulations,” 7 Duke Environmental

Law & Policy Forum 321, 354-355 (1997) (citations omitted).

For these reasons, the commerce clause authorizes the federal

government to regulate isolated intrastate waters that provide

a habitat for migratory birds even if the particular birds on

the site do not substantially affect interstate commerce.’

The court notes that the issues presented in this section

have drawn considerable attention from academics. See, e.g.,

Elaine Bueschen, “Do Isolated Wetlands Substantially Affect

Interstate Commerce?” 46 Am.U.L.Rev. 931 (1997); Robert D.

Icsman, “Hoffman Homes, Inc. v. Administrator, U.S. EPA: The

Seventh Circuit Gets Bogged Down in Wetlands,” 54 Ohio St. L.J.

809 (1993): Edward Alburo Morrissey, “The Jurisdiction of the

Clean Water Act Over Isolated Wetlands: The Migratory Bird

Rule,” 22 J. Legis. 137 (1996); Dennis J. Priolo, “Section 404 of

the Clean Water Act: The Case for Expansion of Federal

Jurisdiction Over Isolated Wetlands,” 30 Land & Water L.Rev. 91

(1995); Stephen Jay Stokes, “The Limit of Government's

Regulatory Authority Over Non-Adjacent Wetlands: Hoffman

Homes, Inc. v. EPA,” 15 Energy L.J. 137 (1994); Lori J.

Warner, “The Potential Impact of United States v. Lopez on

Environmental Regulations,” 7 Duke Envtl. L. & Pol'y F. 321,

354-355 (1997). While some complain that the migratory bird rule

could bring every puddle and pond in the nation under the umbrella

of federal control, this argument overlooks the fact that the question

of federal jurisdiction has a substantial factual component that must

be examined on a case-by-case basis. To establish that an intrastate

waterway is subject to jurisdiction under the migratory bird rule,

an agency must first determine as a factual matter that it bears the

distinctive features of a “habitat.”

25a

B. Evidentiary Basis for Jurisdiction

| _~Plainuft argues that the agency’s decision to extend

Jurisdiction ever the proposed balefill site was “arbitrary,

Capricious, an abuse of discretion, or otherwise not in

accordance with law.” 5 U.S.C. § 706(2)(A). It is well

established that a final agency decision is entitled to a

“presumption of regularity” and that the court must refrain

from substituting its own judgment for that of the agency.

Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S.

402, 415-16, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971). The

court must uphold the decision so long as it was based on a

consideration of the relevant factors and was free from clear

errors of judgment. /d. 401 U.S. at 416. The burden of

persuasion rests on the party seeking to overturn the

administrative decision. Schweiker v. McClure, 456 U.S.

188, 196, 102 S.Ct. 1665, 72 L.Ed.2d 1 (1982). The court

must therefore decide whether, based on the entire

administrative record, it was reasonable for the Corps to

determine that the proposed balefill site was “a suitable or

potential habitat for migratory birds.” Hoffman Homes I]

999 F.2d at 261. .

_ The Army Corps of Engineers initially asserted

jurisdiction over the waters of the SWANCC property after

learning that four species of migratory birds were observed

there by the Illinois Nature Preserves Commission. During

the ensuing permit review process, the agency gathered an

extensive volume of supplemental information about the

avifauna and topography of the site. These included a

catalogue of the avian und waterfowl species observed on or

near the SWANCC site (R. 2,462-2,469; 40,328-40,358), two

lengthy environmental impact reports describing the flora and

avifauna of the property and the potential impact of the

balefill project (R. 38,636-38,779; 40,409-40,512), and

detailed information about specific migratory bird populations

on the site (R. 2,428-2,461; 2,329-2,384; 45,885-45,887).

The Corps argues that this evidence was more than sufficient

26a

to support its finding that the waters of the SWANCC

property were used as a habitat by migratory birds.

Plaintiff offers at least three reasons why the court should

hold otherwise. First, plaintiff argues that the agency should

have limited its analysis to the 17.6 acres of water in the

permit area rather than considering the waters on the property

as a whole. Plaintiff suggests that the record contains no

evidence that the waters of the permit area itself serve as a

habitat for migratory birds. Plaintiff relies on Hoffman

Homes II, 999 F.2d at 261, where the Seventh Circuit

determined that the EPA could not assert jurisdiction over a

small pond based on evidence that a nearby but hydrologically

dissimilar water area was a suitable habitat for migratory

birds. Here, however, plaintiff has not explained how the

waters on the balefill site are hydrologically distinct from

those of the property as a whole. To the contrary, there is

evidence that the SWANCC property is a “large, forested

wetland complex” (R. 15,579) which contains an “extensive

labyrinth of open water” (R. 40,334). By extending

jurisdiction over the entire “labyrinth” of water on the site,

the Corps implicitly determined that each component part of

that system could serve as a habitat for migratory birds.

Because plaintiff presents no evidence that the 17.6 acres of

water in the permit area are distinct from those on the rest of

the property, it has failed to show that the agency’s

jurisdictional decision was improper as to the permit site.

Second, plaintiff argues that the permit area should not

be subject to federal jurisdiction because it cannot support a

viable population of migratory birds.’ Citing several studies,

> The agency argues that the presence of migratory birds by

itself is sufficient to create federal jurisdiction over the waters on

the SWANCC property, and the quality of the habitat is only

relevant to the permit determination. This overlooks the fact that

federal jurisdiction extends only to habitats that are “suitable” for

27a

plaintiff predicts that veeries will be unable to breed

successfully on its property. It argues that the great blue

heron colonies are not subject to federal jurisdiction under the

migratory bird rule because the herons nest in trees rather

than in the water. Plaintiff also points out that several of the

migratory bird species identified on the site between 1988 and

1992 were found only in small numbers or not at all in 1993.

Although the Corps raises a number of compelling objections

to these arguments, one is dispositive: Plaintiff has not

addressed any of the record evidence concerning at least a

half dozen migratory bird species that were identified on its

property. The fact that the balefill site serves as a habitat to

these birds is sufficient to establish agency jurisdiction.

Finally, plaintiff argues that it was unreasonable for the

Corps to assert jurisdiction over the property in November of

1987 after it declined to do so in April of 1986 and March of

1987. As an preliminary matter, it is unclear that the agency

actually reversed its position. The Corps initially declined to

extend jurisdiction over the balefill site for the limited reason

that the property did not contain any protected lakes or

wetlands. This did not, strictly speaking, rule out the

possibility that the property was a habitat for migratory birds.

migratory birds. Hoffman Homes II, 999 F.2d at 261. The

concept of viability is central to the jurisdictional analysis because

it distinguishes genuine habitats from the “parking lot puddles” of

concern in Hoffman Homes II, 999 F.2d at 262. The Supreme

Court did not suggest otherwise in Riverside, 474 U.S. at 135 n. 9,

where it explained that the Army Corps of Engineers has

presumptive jurisdiction over all “adjacent wetlands” because most

such wetlands have a substantial effect on interstate commerce, and

thus the agency need not consider whether any particular wetland

has a substantial effect on interstate commerce until the permit

process. This analysis is inapposite here because the concept of

viability is implicit in the term “habitat,” while there is nothing in

the term “adjacent wetland” which suggests that it must have a

significant effect on interstate waters.

28a

Even if the Corps changed its position, however, it had sound

reasons for doing so. See NLRB v. Indianapolis Mack Sales

& Service, Inc., 802 F.2d 280, 284 (7th Cir. 1986) (when an

agency changes course, it must give sound reasons for doing

so). The agency first learned in July of 1987 that the balefill

site was a potential habitat for migratory birds, and it was

certainly not obliged to discover that information at an earlier

time. It then gathered a substantial volume of information

about the topography and avifauna of the SWANCC property.

Because all of this information was sufficient to establish

agency jurisdiction, any change in the agency's position was

not arbitrary. For all of these reasons, the court finds that it

was reasonable for the Corps to determine that all of the

waters of the SWANCC property were used as a habitat by

migratory birds.

C. Clean Water Act

Plaintiff contends that the migratory bird rule goes

beyond its statutory mandate because the Clean Water Act

only authorizes federal regulations that deal strictly with

water quality. The court must defer to an agency's

interpretation of its own authorizing statute so long as that

interpretation is reasonable and not in conflict with the

expressed intent of Congress. United States v Riverside

Bayview Homes, Inc., 474 U.S. 121, 131, 106 S.Ct. 455, 88

L.Ed.2d 419 (1985); Chevron U.S.A. Inc. v. Natural

Resources Defense Council, Inc., 467 U.S. 837, 842-845, 104

S.Ct. 2778, 81 L.Ed.2d 694 (1984). Accordingly, the court

must decide whether it was reasonable for the Army Corps of

Engineers to interpret the statutory term “waters of the

United States” to include intrastate waters that provide a

habitat for migratory birds.

The Seventh Circuit arguably resolved this question in

Hoffman Homes II, 999 F.2d 256. The issue in that case, as

defined by the court, was whether it was reasonable for the

EPA to construe the term “other waters” in 40 C.F.R. §

29a

230.3(s)(3) to include waters that serve as a habitat for

migratory birds. /d. at 260. Although the court did not

expressly consider whether the regulation was within the

scope of the Clean Water Act, it arguably reached the issue

by implication. Vacating an earlier decision in which it held

that the regulation was beyond its statutory mandate, the court

explained that the EPA's interpretation of the regulation was

both reasonable and authorized by the commerce clause. Jd.

at 260-261. In light of the fact that the Clean Water Act

extends federal jurisdiction to the limits of the commerce

Clause, this holding virtually implied that the migratory bird

rule was consistent with its authorizing statute. /d. at 261.

It Is also apparent that the court could not have reached its

decision in the case if the regulation at issue were illegal.

Because the Seventh Circuit did not address the issue directly,

however, the court will discuss it here.

Both the language and the legislative history of the Clean

Water Act suggest that it authorizes the regulation of

intrastate migratory bird habitats. The purpose of the statute

is “to restore and maintain the chemical, physical, and

biological integrity of the Nation’s waters.” 33 U.S.C. §

1251(a). In part, this is necessary to achieve “the protection

and propagation of fish, shellfish, and wildlife.” 33 U.S.C.

§ 1251(a)(2). Moreover, the statute authorizes the EPA to

promulgate regulations in order to protect fish and wildlife.

33 U.S.C. § 1343(c)(1). To the extent that the actual

language of the Clean Water Act reveals that Congress

intended to protect wildlife, the migratory bird rule would

appear to be a permissible construction of that statute.

The legislative history of the Clean Water Act leads to

the same conclusion. That history reveals that Congress

intended “to extend Clean Water Act jurisdiction over waters

of the United States to the maximum extent possible under the

Commerce Clause.” S.Rep. No. 1236, 92nd Cong., 2d Sess.

144 (1972), U.S.C.C.A.N. 1972, at pp. 3668, 3776. The

Seventh Circuit has long recognized that Congress intended

30a

to make the Clean Water Act as far-reaching as the commerce

clause permits. See Rueth v. U.S. EPA, 13 F.3d 227, 231

(7th Cir.1993); United States v. Huebner, 152 F.2d 1235,

1239 (7th Cir.1985); United States v. Byrd, 609 F.2d 1204,

1209 (7th Cir.1979). To the extent that the commerce clause

authorizes the federal government to regulate intrastate

migratory bird habitats, then, the Clean Water Act must as

well. For these reasons, the court finds that 33 C.F.R. §

328.3(a)(3), as applied to intrastate migratory bird habitats,

is a reasonable construction of the Clean Water Act.

Notably, the Fourth Circuit reached the opposite

conclusion in United States v. Wilson, 133 F.3d 251 (4th

Cir.1997). In that case, the court explained that 33 C.F.R.

§ 328.3(a)(3) went beyond its statutory mandate because the

term “waters of the United States” cannot include intrastate

or nonnavigable waters whose degradation or destruction

could affect interstate commerce. Jd. at 256-257. Relying

generally on the Supreme Court’s decision in Lopez, 514 U.S.

549, 115 S.Ct. 1624, 131 L.Ed.2d 626, the majority

explained that the phrase “waters of the United States” must

refer “to waters which, if not navigable in fact, are at least

interstate or closely related to navigable or interstate waters.”

Id. at 257. Ina separate opinion, Judge Luttig declined to

adopt this portion of the majority opinion on the grounds that

it was based on an overly expansive reading of Lopez. Id. at

266.

This court respectfully declines to follow the majority in

Wilson. Because the scope of federal regulatory jurisdiction

under the Clean Water Act is coextensive with that of the

commerce clause, and because the commerce clause

authorizes the federal regulation of intrastate migratory bird

habitats, the migratory bird rule must be a valid application

of the Clean Water Act. For the reasons discussed in Part

IIA. of this opinion, the court does not believe that Lopez

requires a contrary result. On this point, then, the court

agrees with the Ninth Circuit that “[t}he commerce clause

3la

power, and thus the Clean Water Act, is broad enough to

extend the Corps’ jurisdiction to local waters which may

provide habitat to migratory birds and endangered species.”

Leslie Salt 11, 896 F.2d at 360.

D. Administrative Procedure Act

Plaintiff argues that the migratory bird rule was

promulgated without public notice and comment in violation

of the APA. That statute requires federal agencies to provide

notice and an opportunity for public comment before they

promulgate or amend administrative regulations, but it creates

an exception for interpretive rules and general statements of

policy. 5 U.S.C. § 553. An interpretive rule is one in which

an agency explains what a statute means or reminds parties of

exisung duties, while a substantive rule creates altogether new

rights or duties. Metropolitan School Dist. of Wayne

Township v. Davila, 969 F.2d 485, 489-90 (7th Cir.1992):

see also American Hospital Ass'n v. Bowen, 834 F.2d 1037.

1045 (D.C.Cir.1987). Because the parties agree that the

migratory bird rule was adopted without not' . and comment.

the court need only decide whether the rule is substantive or

interpretive.

This issue was addressed in Tabb Lakes, Lid. v. United

States, 715 F.Supp. 726, 728-729 (E.D. Va.1988). In that

case, a landowner sought a declaratory judgment that his

property was not subject to federal jurisdiction because it did

not contain “other waters” as defined by 33 C.F.R. §

328.3(a(3). Id. at 727. The Army Corps of Engineers

argued that it had jurisdiction over the site pursuant to an

internal memorandum which explained that the term “other

waters” included those which “are used or could be used as

habitat by other migratory birds which cross state lines.” Jd

at 728. The district court held that the memorandum was a

substantive rule-making because it had a “significant effect on

public interests” and was “intended to have the full force and

effect of a substantive rule.” Jd. at 728-729. Accordingly,

jla

the court held that the memorandum was adopted in violation

of the notice and comment requirements of the APA and did

not confer federal jurisdiction over the property in question.

Id at 729.

In an unpublished opinion, a divided panel of the Fourth

Circus affirmed this holding without explanation. See Tabb

Lakes, Lid v. United States, 885 F.2d 866 (4th Cir. 1989)

(per curiam) (text at 1989 WL 106990). In dissent, Judge

Hall suggested that the district court had erred by considering

the impact of the rule instead of limiting its analysis to the

question of whether the memorandum created new rights or

duties. Jd at *2 (Hall, J., dis.). He reasoned that the

memorandum did not give rise to mew law because the

statutory term “waters of the United States” was intended to

have “the broadest possible constitutional interpretation”

under the commerce clause, and the memorandum simply

identified “what contacts with interstate commerce are

sufficient to bring a given wetland within the jurisdictional

reach” of that statute. /d. at *3.

More recently, the Ninth Circuit discussed this question

in Leslie Salt IV. 55 F.3d 1388. When the plaintiff first

raised this issue on appeal in Leslie Salt 11, 896 F.2d 354, the

court declined to address it and thus held by umplication that

the rule was procedurally sound. 55 F.3d at 1393. When the

court revisited the issue in Leslie Salt [V, its review was

limited to the question of whether its prior holding was

clearly erroneous. /d. at 1394. Relying on Hoffman Homes

I], 999 F.2d at 261, where the Seventh Circuit held that the

term “other waters” in both 40 C.F.R. § 230.3(s)(3) and 33

C.F.R. § 328.3(aX3) could be read to include waters used by

migratory birds, the Ninth Circuit reasoned by analogy that

the migratory bird rule could be viewed as an interpretation

of the Clean Water Act rather than a substantive rule-making.

Leslie Salt 1V, 55 F.3d at 1394. In a somewhat narrow

holding. then, the court concluded that it was “plausible” to

33a

construe the migratory bird rule as an interpretation of the

Clean Water Act. /d.

It is the opinion of this court that the migratory bird rule

is interpretive rather than substantive.‘ The Clean Water Act

authorizes the EPA and the Army Corps of Engineers to

exercise regulatory jurisdiction over the “waters of United

States.” 33 U.S.C. § 1362(7). Pursuant to this authority, the

Army Corps of Engineers adopted a regulation in 1977 which

defined the term “navigable waters” to include isolated

intrastate waters whose “degradation or destruction could

affect interstate commerce.” 33 C.F.R. § 323.2(a)(5) (1977),

42 Fed Reg. 37,144 (July 19, 1977). In 1986, the Corps

renumbere? this provision as 33 C_F.R. § 328.3(a)(3) but left

the substaice of the regulation largely unchanged. The

“migratory bird rule” appears in the preamble to the 1986

version of the regulations. 51 Fed Reg. 41,216 (November

13, 1986).

In the preamble. the Corps explained that the purpose of

the reorganization was “to clarify the scope of the Section

404 permit program.” 51 Fed Reg. 41,216. Rather than

change the existing definitions, it sought to clarify them by

putting them in a separate and distinct part of the regulation.

51 Fed.Reg. 41,216-41,217. The agency then explained that

the term “waters of the United States” includes those:

4

Detendant suggests that the Seventh Circuit addressed this

question in Hoffman Homes Il, 999 F.2d at 261. Although the

issue was raised in one of the briefs in that case, the court opted

mn to address it. (Hearing 5/22/97 Tr. at 29.) Arguably, however,

the court ruled on the matter by implication when it heid that it was

reasonable for the EPA to interpret the term “other waters” in 40

CFR § 230. 3s3) to include those used as a habitat for

migratory birds Hoffman Homes II, 999 F 2d at 261: see also

Leslie Salt [V, 55 F.3d at 1393. Because the Seventh Circuit did

not offer a complete discussion of the question, however, the court

will treat the issue as one of first impression in this circuit.

34a

a. Which are or would be used as habitat by birds

protected by Migratory Bird Treaties; or

b. Which are or would be used as habitat by other

migratory birds which cross state lines; or

c. Which are or would be used as habitat for

endang ! species; or

d. Used to irrigate crops sold in interstate commerce.

51 Fed.Reg. 41,217. For additional clarification, the agency

then listed five examples of waters that are not generally

considered to be “waters of the United States.” 51 Fed.Reg.

41,217. The agency emphasized that the reorganization was

not intended to expand or retract the scope of agency

jurisdiction, but rather “to clarify the scope of the 404

program by defining the terms in accordance with the way the

program is presently being conducted.” 51 Fed.Reg. 41,217.

There are at least two reasons why the preamble was not

a substantive rulemaking. First, the agency itself intended for

the preamble to be interpretive. See Davila, 969 F.2d at 489

(characterization of a rule by an agency is relevant to whether

it is substantive or interpretive). The agency expressly stated

that it in.ended to clarify the scope of the existing section 404

permit program rather than to change existing definitions or

to expand its jurisdiction. This is corroborated by the

structure of the preamble, which sets forth the migratory bird

rule in juxtaposition to a list of waters that are not generally

considered to be subject to federal regulation.

More importantly, however, the migratory bird rule does

not create new legal rights or duties, for it does not expand

the jurisdictional reach of the Clean Water Act or the

regulations promulgated thereunder. By authorizing the

Army Corps of Engineers to regulate the “waters of the

United States,” the Clean Water Act extended the jurisdiction

of these agencies to the outer limits of the commerce clause.

Rueth, 13 F.3d at 231. Pursuant to this statutory authority,

35a

the Army Corps of Engineers defined the term “navigable

waters” to include all intrastate waters whose degradation or

destruction could affect interstate commerce. 33 C.F.R. §

328.3(a(3). In effect, this “catch-all” provision simply

reiterates that the jurisdiction of the agency is coextensive

with that of the commerce clause. Because the commerce

clause permits the Corps to regulate intrastate migratory bird

habitats, the bird rule cannot be said to increase the

jurisdiction of that agency. Rather than creating new rights

or duties, then, the preamble simply clarifies that the

regulation of intrastate migratory bird habitats falls within the

scope of the agency's commerce clause jurisdiction.

Accordingly. the court finds that the migratory bird rule was

not subject to the notice and comment requirements of the

APA.

On this point, then, the court expressly declines to follow

the reasoning of the district court in Tabb Lakes, 715 F.Supp.

726. The fact that the bird rule carries the “force and effect

of a substantive rule” or has a “significant effect on public

interests” does not, as the court in that case reasoned, imply

that the rule creates new substantive rights or duties. /d. at

728-729. For the reasons described above, the court believes

that the better position cn this issue is represented by Judge

Hall's dissenting opinion in Tabb Lakes v. U.S., 885 F.2d

866 (4th Cir.1989) (per curiam) 1989 WL 106990, at *2

(Hall, J., dis.), and the Ninth Circuit's opinion in Leslie Salt

IV, 55 F.3d 1388.

Il. Conclusion

For the reasons stated above, the court finds that

defendant Army Corps of Engineers did not exceed its

authority under the commerce clause by extending regulatory

jurisdiction over the waters of plaintiff's proposed balefill site

pursuant to 33 C.F.R. § 328.3(a)(3); as applied in this case,

33 C.F.R. § 328.3(a)(3) does not exceed its mandate under

the Clean Water Act, the extension of regulatory jurisdiction

36a

over the proposed balefill Site was not arbitrary and

capricious under the APA, 5 U.S.C. § 706(2)(A); and the

migratory bird rule set forth at 51 Fed. Reg. 41,217 was

exempt from the notice and comment requirements of the

APA, 5 U.S.C. § 553.

ORDERED: Defendant’s motion for summary judgment

is granted; plaintiff's motion for summary judgment is

denied.

37a

33 U.S.C. § 1344 Permits for dredged or fill material

(a) Discharge into navigable waters at specified

disposal sites

The Secretary may issue permits, -after notice and

opportunity for public hearings for the discharge of dredged

or fill material into the navigable waters at specified disposal

sites. ‘Not later than the fifteenth day after the date an

applicant submits all the information required to complete an

application for a permit under this subsection, the Secretary

shall publish the notice required by this subsection.

* * *

38a

33 U.S.C. § 1362 Definitions

Except as otherwise specifically provided, when used in this

chapter:

* * *

(7) The term “navigable waters” means the waters of the

United States, including the territorial seas.

*x* * *

39a

33 C.F.R. § 328.3 Definitions

For the purpose of this regulation these terms are defined as

follows:

(a) The term “waters of the United States” means

x * *

(3) All other waters such as intrastate lakes, rivers, streams

(including intermittent streams), mudflats, sandflats, wetlands,

sloughs, prairie potholes, wet meadows, playa lakes, or

natural ponds, the use, degradation or destruction of which

could affect interstate or foreign commerce including any

such waters:

(i) Which are or could be used by interstate or foreign

travelers for recreational or other purposes; or

(ii) From which fish or shellfish are or could be taken and

sold in interstate or foreign commerce; and

(iii) Which are used or could be used for industrial purpose

by industries in interstate commerce.

* * *

40a

51 Fed. Reg. 41206

RULES AND REGULATIONS

DEPARTMENT OF DEFENSE

Corps of Engineers, Department of the Army

33 CFR Parts 320, 321, 322, 323, 324, 325, 326, 327,

328, 329 and 330

Final Rule for Regulatory Programs of the Corps of

Engineers

Thursday, November 13, 1986

* * *

Section 328.3: Definitions. This section incorporates the

definitions previously found in § 323.3 (a), (c), (d), (f) and

(g). Paragraphs (c), (d), (f) and (g) were incorporated

without change. EPA has clarified that waters of the United

States at 40 CFR 328.3(a)(3) also include the following

waters:

a. Which are or would be used as habitat by birds protected

by Migratory Bird Treaties; or

b. Which are or would be used as habitat by other migratory

birds which cross state lines; or

c. Which are or would be used as habitat for endangered

species; or

d. Used to irrigate crops sold in interstate commerce.

* * *

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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