# Petition for Writ of Certiorari — Nat'l Ass'n of Mfrs. v. Dep't of Def., 137 S. Ct. 811 (2017) (No. 16-299)

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 2017

## Text

| RECORD

’—Biipreme Court, U.S.
AND { —_

GRIEFS . 16-299 SEP 2- 20i6

OFFICE OF THE CLERK.

In the Supreme Court of the Anited States

NATIONAL ASSOCIATION OF MANUFACTURERS,

Petitioner,
v.

U.S. DEPARTMENT OF DEFENSE,

DEPARTMENT OF THE ARMY CORPS OF ENGINEERS, AND
U.S. ENVIRONMENTAL PROTECTION AGENCY, ET AL..,

Respondents.

Petition for a Writ of Certiorari to
the United States Court of Appeals
for the Sixth Circuit

PETITION FOR A WRIT OF CERTIORARI

MICHAEL B. KIMBERLY

TrmmoTnHy S. BISHOP
Mayer Brown LLP Counsel of Record
1999 K Street, NW CHAD CLAMAGE
Washington, DC 20006 JED GLICKSTEIN
(202) 263-3127 Mayer Brown LLP
71 South Wacker Drive
LINDA E. KELLY Chi " [inois 6
LELAND P. FROST (312) 782-0600
Manufacturers’ Center tbishop@mayerbrown.com
for Legal Action
732 10th Street, NW, Ste 700
Washington, DC 20001
(202) 637-3000
Counsel for Petitioner

QUESTION PRESENTED

In June 2015, respondent agencies promulgated a
final rule defining the term “the waters of the United
States” and hence the scope of Clean Water Act
jurisdiction. The National Association of Manufac-
turers challenged that rule in district court under the
Administrative Procedure Act. State, municipal, indus-
try, and environmental challengers likewise filed APA
suits, but in addition filed protective petitions for
review in the courts of appeals, citing uncertainty
about whether the rule challenge falls under the
CWA’s judicial review provision, 33 U.S.C. § 1369(b)(1).

The petitions for review were consolidated in the
Sixth Circuit. The NAM intervened as respondent in
the Sixth Circuit and moved to dismiss the petitions for
want of jurisdiction. After full briefing and argument,
the Sixth Circuit held that it, not the district courts,
has jurisdiction to decide challenges to the rule. But
only one judge actually believed that to be the correct
outcome. Although two panel members concluded that
§ 1369(b)(1) precludes jurisdiction, one of them reason-
ed that he was bound by “incorrect” circuit precedent to
take jurisdiction under § 1369(b)(1)(F), which requires
that agency actions “in issuing or denying any permit
under” § 1342 be reviewed by the court of appeals.

This recurring jurisdictional] issue has divided the
circuits, wasted judicial and party resources, and
delayed the resolution of important rule challenges.

The question presented is whether the Sixth
Circuit erred when it held that it has jurisdiction
under 33 U.S.C. § 1369(b)(1)(F) to decide petitions to
review the waters of the United States rule, even
though the rule does not “issufe] or den[y] any permit”
but instead defines the waters that fall within Clean
Water Act jurisdiction.

ll
PARTIES TO THE PROCEEDINGS BELOW
After the Judicial Panel on Multidistrict Litigation
consolidated the petitions for review in the Sixth
Circuit (Consolidation Order, Dkt. No. 3, MCP No. 135
(JPML July 28, 2015)), the Sixth Circuit permitted
petitioner here, the National Association of Manufac-
turers, to intervene as a respondent. Order, No. 15-
3751 cons. (Sept. 16, 2015).

Respondents below—the federal agency respon-
dents here—are the U.S. Environmental Protection
Agency; Regina McCarthy, in her official capacity as
EPA administrator; the U.S. Army Corps of Engineers;
Lieutenant General Todd T. Semonite, in his official
capacity as the Corps’ Chief of Engineers and Com-
manding General;! Jo-Ellen Darcy, in her official
capacity as Assistant Secretary of the Army; and Eric
Fanning, in his official capacity as Secretary of the
Army.?

State intervenor-respondents below and respon-
dents here are the States of New York, Connecticut,
Hawaii, Massachusetts, Oregon, Vermont, Washing-
ton, and the District of Columbia.

Over 100 other parties filed 22 petitions for review
below, and intervened in other petitions, and many of
those petitioners moved to dismiss their own and other
petitions for review for want of jurisdiction. These
petitioners below, respondents here, are as follows:

! Lt. General Semonite succeeded Lt. General Thomas P. Bostick
in this capacity on May 19, 2016.

2 Secretary Fanning succeeded John M. McHugh in this capacity
on May 17, 2016.

No. 15-3751: Murray Energy Corporation.

No. 15-3799: States of Ohio, Michigan, and Ten-
nessee.

No. 15-3817: National Wildlife Federation.

No. 15-3820: Natural Resources Defense Council,
Inc.
No. 15-3822: State of Oklahoma.

No. 15-3823: Chamber of Commerce of the United
States; National Federation of Independent Business;
State Chamber of Oklahoma; Tulsa Regional Chamber;
and Portland Cement Association.

No. 15-3831: States of North Dakota, Alaska,
Arizona, Arkansas, Colorado, Idaho, Missouri, Mon-
tana, Nebraska, Nevada, South Dakota, Wyoming,
New Mexico Environment Department, New Mexico
State Engineer.

No. 15-3837: Waterkeeper Alliance; Center for
Biological Diversity; Center for Food Safety; Humboldt
Baykeeper; Russian Riverkeeper; Monterey Coast-
keeper; Upper Missouri Waterkeeper, Inc.; Snake
River Waterkeeper, Inc.; Turtle Island Restoration
Network, Inc.

No. 15-3839: Puget SoundKeeper; Sierra Club.

No. 15-3850: American Farm Bureau Federation;
American Forest & Paper Association; American Pet-
roleum Institute; American Road and Transportation
Builders Association; Greater Houston Builders
Association; Leading Builders of America; Matagorda
County Farm Bureau; National Alliance of Forest
Owners; National Association of Home Builders;
National Association of Realtors; National Cattlemen’s
Beef Association; National Corn Growers Association;
National Mining Association; National Pork Producers
Council; National Stone, Sand, and Gravel Association;

lV
Public Lands Council; Texas Farm Bureau; and U.S.
Poultry & Egg Association.

No. 15-3853: States of Texas, Louisiana, and
Mississippi; Texas Department of Agriculture; Texas
Commission on Environmental Quality; Texas Depart-
ment of Transportation; Texas General Land Office;
Railroad Commission of Texas; Texas Water Develop-
ment Board.

No. 15-3858: Utility Water Act Group.

No. 15-3885: Southeastern Legal Foundation, Inc.;
Georgia Agribusiness Council, Inc.; Greater Atlanta
Homebuilders Association, Inc.

No. 15-3887: States of Georgia, West Virginia,
Alabama, Florida, Indiana, Kansas; Commonwealth of

Kentucky; North Carolina Department of Environment
and Natural Resources; States of South Carolina,

Utah, and Wisconsin.

No. 15-3948: One Hundred Miles; South Carolina
Coastal Conservation League.

No. 15-4159: Southeast Stormwater Association,
Inc.; Florida Stormwater Association, Inc.; Florida
Rural Water Association, Inc., and Florida League of
Cities, Inc.

No. 15-4162: Michigan Farm Bureau.

No. 15-4188: Washington Cattlemen’s Association;
California Cattlemen’s Association; Oregon Cattle-
men’s Association; New Mexico Cattle Growers As-
sociation; New Mexico Wool Growers, Inc.; New Mexico
Federal Lands Council; Coalition of Arizona/New
Mexico Counties for Stable Economic Growth; Duarte
Nursery, Inc.; Pierce Investment Company; LPF
Properties, LLC; Hawkes Company, Inc.

No. 15-4211: Association of American Railroads;
Port Terminal] Railroad Association.

Vv

No. 15-4234: Texas Alliance for Responsible
Growth, Environment and Transportation.

No. 15-4305: American Exploration & Mining
Association.

No. 15-4404: Arizona Mining Association; Arizona
Farm Bureau; Association of Commerce and Industry;
New Mexico Mining Association; Arizona Chamber of
Commerce & Industry; Arizona Rock Products Associa-
tion; and New Mexico Farm & Livestock Bureau.

CORPORATE DISCLOSURE STATEMENT

Petitioner National Association of Manufacturers is
a not-for-profit public advocacy group. It has no parent
corporation and does not issue stock.

vi

TABLE OF CONTENTS

cs emmnbunenetontansedmies i
Parties to the Proceedings Below .........................2...- ii
Corporate Disclosure Statement ...................0....2cce00ee Vv
RAE 5 EE Ea NA ee Oe De OO 1
EET EE SESE ne aE CRE 1
Statutory Provisions Involved ....................cceccceeeeseees 1
ES EERE AI SE a ae Te ae 1
Fe BI icccciccnevecnsensencecsenecscesssncces 4
a ceeacenial 5

C. The Clean Water Act’s Judicial Review
EEE ES eA ae re Ue a eae 6
D. Litigation Challenging The New Rule............. 7
1. Confusion in the district courts. ................. 9

2. The Sixth Circuit refuses to dismiss
the petitions for review .........................00+- 10

E. The Aftermath Of The Sixth Circuit’s

a cueansidaepndiion 13
Reasons for Granting the Petition............................ 14

I. The Sixth Circuit Erroneously Took
Jurisdiction Under Section 1369(b), In

Conflict With Decisions Of Other Circuits.......... 14
A. The Sixth Circuit Lacks Jurisdiction

Dimer Beckie LEGBD). ...ccccccccccccccccccoccccccescses 15
B. The Panel’s Ruling Conflicts With

Decisions Of Other Courts Of Appeals. ......... 20

II. The Question Presented Is Of Immense
And Immediate Practical Importance.................24

A. Uncertainty Over The Meaning Of
Section 1369(b) Causes Delay And
Waste Of Judicial And Party Resources........ 24

vl

B. The Panel’s Decision Would Deny
Parties, Agencies, And Courts Of The
Benefits Of Multilateral Review Of

pO SEE NEE 28

C. Interlocutory Review Is Warranted............... 31

NSFC En pence oe Fp oer nO ee eR 32
Appendix A — Opinion of the court of appeals

ERT Ey la

Appendix B— Judgment (Feb. 22, 2016).............. 48a

Appendix C — Order denying rehearing
en banc (Apr. 21, 2016).................. 5la

Appendix D— Statutes Involved........................... 53a

TABLE OF AUTHORITIES

Cases
Alaska Eskimo Whaling Comm’n v. EPA,

791 F.3d 1088 (9th Cir. 2015)....................000-00.-0 15
Alton Box Bd. Co. v. EPA,

5602 F.2d 306 (7th Cir. 1979).............ccccccccccsecceseee 15
Am. Paper Inst. v. EPA,

860 F.2d S60 (7th Cir. 1966)........2...000.cccccces-cecceee 18
Arbaugh v. Y & H Corp.,

A ee ee 25
Atchison, Topeka & Santa Fe Ry. Co. v.

Pena, 44 F.3d 437 (7th Cir. 1994)........................ 30
Barnhart v. Peabody Coal Co.,

al eeiaiibonaniied 19
Bowen v. Massachusetts,

i oleae -00e OO
California v. Carney,

I oneness 29

Catskill Mountains Chapter of Trout
Unlimited, Inc. v. EPA, 8 F. Supp. 3d

a ESS 27
Circuit City Stores, Inc. vy. Adams,

SE ET Ca 18
In re: Clean Water Rule, MDL No. 2663,

Dkt. 163 (JPML Oct. 13, 2015)......................200000 8
Colorado River Water Conservation Dist. v.

United States, 424 U.S. 800 (1976) ..................... 14

Crown Simpson Pulp Co. v. Costle,
3 | ee 3, 11, 16, 23

ix

Decker v. Nw. Envt1l Def. Ctr.,

I i eeeiciaiinn 7,14
E.I. du Pont de Nemours Co. v. Train,

FL, I SR a 11, 12
In re EPA,

803 F.3d 804 (6th Cir. 2015)...............................- 10
Fla. Power & Lighi Co. v. Lorion,

a cciusueosinnse ia
Ford Motor Co. v. United States,

a cusmenaul 27
Friends of the Earth v. EPA,

Pg ee 29
Friends of the Everglades v. EPA,

699 F.3d 1280 (11th Cir. 2012)......000000000..... passim
Georgia v. McCarthy, 2015 WL 5092568

ee a conacbiurocecnuennst 9
Georgia v. McCarthy, 2016 WL 4363130

I ac ceaesuibonans 14, 26
Harrison v. PPG Indus., Inc.,

ns aiibemiinnale 24, 28
Hertz Corp. v. Friend,

i ctieiamelnvand 25
Lapides v. Bd. of Regents of Univ. Sys. of

EN 4, 28
Longview Fibre Co. v. Rasmussen,

980 F.2d 1307 (9th Cir. 1992).............................. 20

Mercantile National Bank v. Langdeau,
ee eG crecsiscicintnishasnetantanendoconsoonsoesceeee 32

x

Murray Energy Corp. v. EPA, 2015 WL

5062506 (N.D. W. Va. Aug. 26, 2015).................... 9
Nat. Res. Def. Council v. EPA,

606 F.3d G66 (2d Cir. 2016) ............cc.ccc.c.cc..cccces0. 15
National Cotton Council of America v. EPA,

553 F.3d 927 (6th Cir. 2009)...................0008. passim
North Dakota v. EPA,

127 F. Supp. 3d 1047 (D.N.D. 2015)........20.0-.-- 9, 23
Northwest Environmental Advocates v.

EPA, 537 F.3d 1006 (9th Cir. 2008) ............... 21-25
Obergefell v. Hodges,

cence 29
Oklahoma ex rel. Pruitt v. EPA, 2016 WL

3189807 (N.D. Okla. Feb. 24, 2016) .................... 13
Rapanos v. United States,

Ne is ciessiciiiaiauial 5
Roll Coater, Inc. v. Reilly,

$33 F.2d 668 (7th Cir. 19091).................02..000.-e00s. .25

Solid Waste Agency of Northern Cook
County v. U.S. Army Corps of Engineers,

gg EEN 4,5
U.S. Army Corps of Eng’rs v. Hawkes Co.,

a, nc cs scccciicngeeconscoeniestonnincnsns 4
United States v. Mendoza,

NG HE acini cncerninccscmbéecaneninovensensens 1000 BO

United States v. Riverside Bayview Homes,
ee I HE iinicrntncencenscetncsbossnepsesens 4,5

xi

Upper Blackstone Waiter Pollution
Abatement Dist. v. EPA, 690 F.3d 9

Tiida icemcnthinasiiieciisinnicionbeseecieséetdovesdess 15
Walden v. Fiore,
os acidtdinscecdusiicsennwanmeis 32
Zadvydas v. Davis,
TE cee 20
Statutes and regulations
5 U.S.C.
a alii ie atiialaiia tenia i a a a a 7, 30
ST radiaecidsuieaegisininhasestdllabieciapulsiocesbicodondiiibishhedicdsicses ae 30
a as 7
EERE RAGE A ore een RE ae RA I, AIOE 6
28 U.S.C.
a es al 1
EY ERIS? OS ales ea eam RENE SEE eeP 32
ES ANS ae eee Oe aT: 7, 30
EULER DADE tea MEO SE pipe a = 30
a 8
a Ot 9
33 U.S.C
RETIRE NSA eg eie OY REAe AARC R RSS OR ME 4, 17-19
a ee 17-19
a w.eeee 7-19
TE Ee no ree AME AD 16, 21, 23
RET SR arsed oe ae Ey aT SI = 17-19
SRE NO SRE Ne eee ee 1, 4, 22
RE STE SRS ee CO a EF 17
ALAS RETREAT are a Ce OR 4, 21, 22

EERE SERENA LDR IIT So ONCE SEP FTES 7

xi

CORR Mae cttec neti)! *
00D TESA, © PII oie cnenctsiecacecoenenanies

Clean Water Rule: Definition of “Waters of
the United States,” 80 Fed. Reg. 37,054

CBee A I. cnx cceccorsocscnssintcopessannsbians
Lk 2 8) RRS a ee =)
ik | ae EaneE Ne:
CO I isis csicocaeseerstisacoial

Miscellaneous

The Fiscal Year 2016 EPA Budget: Joint
Hearing Before the Subcomm. on Energy
& Power & the Subcomm. on Environ-
ment & Economy of the House Comm. on
Energy & Commerce, 114th Cong.

GEG GE Siac cnssccevesieseiesnnteimunsnisssinmmines

Allison LaPlante, et al., On Judicial Review
Under the Clean Water Act in the Wake
of Decker v. Northwest Environmental
Defense Center: What We Know Now
and What We Have Yet to Find Out,

a ee, i) | ee

Richard L. Revesz, Specialized Courts and
the Administrative Lawmaking System,

138 U. PA. L. REV. 1111 (1990)..................

PETITION FOR A WRIT OF CERTIORARI

Petitioner National Association of Manufacturers
respectfully petitions for a writ of certiorari to review
the judgment of the U.S. Court of Appeals for the Sixth
Circuit.

OPINIONS BELOW

The decision of the court of appeals (App., infra, la-
47a) is reported at 817 F.3d 261. The court of appeals’
denial of rehearing en banc, which is unreported, is re-
produced at App., infra, 5la-52a.

JURISDICTION

The separate judgment of the court of appeals
denying all motions to dismiss the petitions for review
for lack of jurisdiction was entered on February 22,
2016. App., infra, 48a-50a. The court of appeals’ order
denying rehearing en banc was entered on April 21,
2016. On July 1, 2016, Justice Kagan extended the
time to file this petition to September 2, 2016. This
Court’s jurisdiction rests on 28 U.S.C. § 1254(1).

STATUTORY PROVISIONS INVOLVED

Relevant portions of Section 509(b) of the Clean
Water Act, 33 U.S.C. § 1369(b), are set forth at App.,
infra, 53a-54a.

STATEMENT

The Clean Water Act (““CWA” or “Act”) defines
“navigable waters” as “the waters of the United
States.” 33 U.S.C. § 1362(7). In June 2015, the U.S.
Environmental Protection Agency (“EPA”) and U.S.
Army Corps of Engineers (“Corps”) promulgated a final
rule that significantly revised the scope of federal
jurisdiction under the Act by redefining the term
“waters of the United States.” Clean Water Rule:

2

Definition of “Waters of the United States,” 80 Fed. Reg.
37,054 (June 29, 2015) (the “WOTUS Rule” or “Rule”).

The National Association of Manufacturers (“the
NAM”) is among scores of public and private
plaintiffe—States, municipalities, and industry and
environmental groups—that have challenged the
WOTUS Rule. In the fifteen months since the new Rule
became final no brief on the merits has yet been filed
in any of these cases. Briefing on the merits in the
Sixth Circuit is not due to be completed until mid-
February 2017.

This bottleneck is due to an esoteric and wasteful
debate over where the challenges to the Rule belong.
The crux of the problem is the judicial review provision
of the Clean Water Act, 33 U.S.C. § 1369(b). That
provision funnels review of certain types of agency
action directly to courts of appeals, leaving other
challenges to be brought in the district courts under
the Administrative Procedure Act. What should be a
straightforward gatekeeping provision has in this and
other cases generated widespread judicial disagree-
ment, caused needless delay, and wasted valuable
resources for no substantive purpose.

In particular, courts have disagreed over the
interpretation of two categories of agency action that
are specified in Section 1369(b) to trigger ori zinal
circuit court review: actions “approving or promul-
gating any effluent limitation or other limitation”
under certain provisions of the CWA, and actions
“issuing or denying any permit” under the Act’s
National Pollutant Discharge Elimination System. Jd.
§ 1369(b)(1)(E), (F). Virtually all district and circuit
courts agree that the WOTUS Rule does not fall into
either of those categories if the statutory words are
given their plain meaning. However, courts have

3

divided over whether this Court’s decisions in E./. du
Pont de Nemours Co. v. Train, 430 U.S. 112 (1977), and
Crown Simpson Pulp Co. v. Costle, 445 U.S. 193
(1980)—and lower courts’ conflicting glosses on those
decisions—require a looser interpretation.

The decision here, in which the Sixth Circuit split
1-1-1 over Section 1369(b)’s applicability, exemplifies
this disarray. The panel produced three separate and
incommensurate opinions addressing whether it has
jurisdiction to consider the rule challenges. And the
judge who cast the deciding vote in favor of court of
appeals jurisdiction did so not because he thought that
result was a correct application of the statute, but
because he felt himself bound by a circuit precedent
that he deemed wrongly decided and that conflicts with
decisions in other courts of appeals. No challenge to
agency action—let alone agency action as consequen-
tial as the WOTUS Rule, which brings vast areas of the
Nation under federal jurisdiction as “waters of the
United States”—should be left to rest on such a precar-
ious foundation.

The NAM has consistently argued that the
WOTUS Rule does not fall under any Section 1369-
(b)(1) category and that jurisdiction over these cases
therefore belongs in the district court. Its still-pending
complaint filed in the Southern District of Texas,
joined by over a dozen co-plaintiffs, argues that
Section 1369(b) does not provide any basis for circuit
court jurisdiction. See Am. Farm Bureau Fed’n, et al. v.
EPA, No. 3:15-cv-165 (S.D. Tex.), Dkt. 1 at 9 6-9. And
while the NAM’s co-plaintiffs filed “protective”
petitions for review in the Sixth Circuit to prevent
their challenges from becoming untimely if the
jurisdictional question were resolved in favor of circuit
court review, the NAM did not do so. Instead, it
intervened as a respondent in 11 of the 22 petitions

4

(which have all been consolidated) and moved to
dismiss for lack of jurisdiction—precisely in order to
ensure its standing to seek further review of the
jurisdictional question before this Court.

The question presented here not only dogs the
pending challenges to the WOTUS Rule, but also has
confused and delayed prior rule challenges and
certainly will disrupt future rule challenges. That is an
intolerable situation. “[J]urisdictional rules should be
clear.” Lapides v. Bd. of Regents of Univ. Sys. of Ga.,
535 U.S. 613, 621 (2002). This Court’s review is
urgently required to determine where jurisdiction lies
for the WOTUS Rule challenges, resolve the circuit
split on Section 1369(b)’s meaning, and guide the
federal courts in their future application of that
provision.

A. The Clean Water Act

The Clean Water Act “prohibits ‘the discharge of
any pollutant’ without a permit into ‘navigable waters,’
which it defines, in turn, as ‘the waters of the United
States.” U.S. Army Corps of Eng’rs v. Hawkes Co., 136
S. Ct. 1807, 1811 (2016) (citing 33 U.S.C. §§ 1311(a),
1362(7), (12)). Obtaining a permit is costly, and the
penalties for discharging without one are substantial.
Id. at 1812. The scope of “the waters of the United
States” is therefore a matter of exceptional importance
for landowners, industry and environmental groups,
and government officials.

In United States v. Riverside Bayview Homes, Inc.,
474 U.S. 121, 135 (1985), this Court concluded that the
agencies permissibly interpreted “waters of the United
States” to encompass wetlands that actually abutted
traditional navigable waters. In Solid Waste Agency of
Northern Cook County v. U.S. Army Corps of Engin-
eers, 531 U.S. 159 (2001) “SWANCC’), it struck down

5

the agencies’ “Migratory Bird Rule,” which purported
to extend agency jurisdiction to any waters that are or
might be used as habitat for migratory birds, no matter
how isolated or remote from navigable waters. And in

v. United States, 547 U.S. 715 (2006), the
Court reversed the agencies’ determination that they
had jurisdiction over wetlands that “lie near ditches or
man-made drains that eventually empty into tradi-
tional navigable waters,” which swept in “virtually any
parcel of land containing a channel or conduit * * *
through which rainwater or drainage may occasionally
or intermittently flow.” Jd. at 722, 729 (plurality
opinion).

The WOTUS Rule purports to clarify the definition
of “waters of the United States” within the meaning of
the CWA and Rapanos, SWANCC, and Riverside
Bayview. 80 Fed. Reg. at 37,054.

B. The WOTUS Rule

The WOTUS Rule separates waters into three
jurisdictional groups: waters that are categorically
jurisdictional, waters that require a case-specific sig-
nificant nexus evaluation to determine if they are juris-
dictional, and waters that are categorically excluded
from jurisdiction.

In the first group are waters that are categorically
jurisdictional: (1) traditional navigable waters,
(2) interstate waters, (3) territorial seas, (4) impound-
ments of any water deemed to be a “water of the
United States,” (5) certain tributaries, and (6) certain
waters that are “adjacent” to the foregoing five
categories of waters. 33 C.F.R. § 328.3(a).

In the second group are waters “that require a
case-specific significant nexus evaluation” to determine
if they are jurisdictional. 80 Fed. Reg. at 37,073.
Waters that are subject to jurisdiction based on a case-

6

specific significant nexus determination include:
(A) waters, any part of which are within the 100-year
floodplain of a traditional navigable water, interstate
water, or territorial sea; or (B) waters, any part of
which are within 4,000 feet of the ordinary high water
mark of any of those jurisdictional waters, any

impoundment of those jurisdictional waters, or any
covered tributary. 33 C.F.R. § 328.3(a)(8).

In the third group are waters always excluded from
jurisdiction. These include: swimming pools, puddles.
ornamental waters, prior converted cropland, waste
treatment systems, certain kinds of drainage ditches,
farm and stock watering ponds, settling basins, water-
filled depressions incidental to mining or construction
activity, subsurface drainage systems, and certain
wastewater recycling structures. 33 C.F.R. § 328.3(b).

The NAM and its co-plaintiffs in the Southern
District of Texas will show (once this case reaches the
merits stage) that the WOTUS Rule violates this
Court’s precedents, is deeply flawed both in substance
and procedurally, and ccnsequently violates the
Administrative Procedure Act (“APA”), 5 U.S.C.
§ 706(2)(A)-(D). But to this point, uncertainty over the
meaning of Section 1369(b) has meant that the NAM
has spent the past 15 months since promulgation of the
Rule litigating the issue of where jurisdiction over the
merits belongs, in multiple forums.

C. The Clean Water Act’s Judicial Review

Provisions

The CWA grants the courts of appeals original
jurisdiction to hear challenges to seven specified
categories of final agency actions (App., infra, 53a-
54a)—among them, insofar as relevant here, actions

7

(E) in approving or promulgating any effluent
limitation or other limitation under section
1311, 1312, 1316, or 13465 of this title, [and]

(F) in issuing or denying any permit under
section 1342 of this title * * *.

33 U.S.C. § 1369(b)(1). This jurisdiction is not only
original, but exclusive. Decker v. Nw. Envt'l Def. Ctr.,
133 S. Ct. 1326, 13834 (2013).

Section 1369(b) very clearly “extends only to
certain suits challenging some agency actions.” Decker,
133 S. Ct. at 1334 (emphasis added). Challenges to
agency rules not specified in Section 1369(b) proceed
under Sections 702 and 704 of the APA, which provide
that “[a] person suffering legal wrong” or “adversely
affected or aggrieved by agency action” may bring suit
in district court for judicial review of any “final agency
action for which there is no other adequate remedy in a
court.” 5 U.S.C. §§ 702, 704. Thus, litigants whose
claims do not fall within Section 1369(b)(1) may invoke
a cause of action in district court under the APA and
28 U.S.C. § 1331. That Section 1369(b)(1) is not
intended to be all-encompassing is confirmed by
Section 1365(e), which preserves statutory and
common law rights to seek relief against the
Administrator (such as those available under the APA).

In promulgating the WOTUS Rule the agencies
conceded that while Section 1369(b)(1) “provides for
judicial review in the courts of appeals of specifically
enumerated actions of the Administrator,” courts “have
reached different conclusions on the types of actions
that fall within” that provision. 80 Fed. Reg. at 37,104.

D. Litigation Challenging The New Rule

Scores of state, municipal, industry, and environ-
mental plaintiffs filed suits challenging the WOTUS

8

Rule in district courts around the country,' including
the NAM, which filed suit along with other industry
groups in the Southern District of Texas.?

The Judicial Panel on Multidistrict Litigation
denied the federal government’s request to consolidate
the district court actions and to transfer them to the
District Court for the District of Columbia. See Jn re:
Clean Water Rule, MDL No. 2663, Dkt. 163 (JPML Oct.
13, 2015). The Judicial Panel held that transfer was
inappropriate under 28 U.S.C. § 1407 because the
complaints turn on issues of law, and held that
“different jurisdictional rulings by the involved courts”
also augured against consolidation. Id. at 2.

Reflecting uncertainty surrounding the scope of
Section 1369(b), many plaintiffs who filed district court
actions (but not the NAM) also filed “protective”
petitions for review in various courts of appeals.’ Those
petitions for review were consolidated and transferred

! Those actions are North Dakota v. EPA, No. 3:15-cv-59 (D.N.D.);
Murray Energy Corp. v. EPA, No. 1:15-cv-110 (N.D. W. Va.); Ohio
v. EPA, 2:15-cv-2467 (S.D. Ohio); Texas v. EPA, No. 3:15-cv-162
(S.D. Tex.); Georgia v. McCarthy, No. 2:15-cv-79 (S.D. Ga.);
Oklahoma ex rel. Pruitt v. EPA, No. 4:15-cv-381 (N.D. Okla.);
Chamber of Commerce v. EPA, No. 4:15-cv-386 (N.D. Okla.);
Southeastern Legal Foundation v. EPA, No. 1:15-cv-2488-TCB
(N.D. Ga.); Washington Cattlemen’s Association v. EPA, No. 0:15-
cv-3058 (D. Minn.); Puget Soundkeeper Alliance v. McCarthy, No.
2:15-cv-1342 (W.D. Wash.); Waterkeeper Alliance v. EPA, No. 3:15-
cv-3927 (N.D. Cal.); Natural Resources Defense Council v. EPA,
No. 1:15-cv-1324 (D.D.C.); and Arizona Mining Ass'n v. EPA, No.
2:15-cv-1762 (D. Az.).

2 Am. Farm Bureau Fed’n, et al. v. EPA, No. 3:15-cv-165 (S.D.
Tex.).

8 The 22 petitions for review and more than 100 petitioners are
identified in the Parties to the Proceeding Below section, supra,

pp. il-v.

9

to the Sixth Circuit pursuant to 28 U.S.C. § 2112(a).
Consolidation Order, MCP No. 135 (JPML July 28,
2015).

The agencies moved to stay or dismiss cases in the
district courts in favor of the circuit court litigation. All
of the cases became ensnarled in the jurisdictional
dispute, halting any progress towards the merits.

1, Confusion in the district courts

In August 2015, the U.S. District Court for the
Northern District of West Virginia held that the Sixth
Circuit had exclusive jurisdiction over Rule challenges.
Murray Energy Corp. v. EPA, 2015 WL 5062506 (N.D.
W. Va. Aug. 26, 2015). The U.S. District Court for the
Southern District of Georgia reached the saine
conclusion. Georgia v. McCarthy, 2015 WL 5092568, at
*3 (S.D. Ga. Aug. 27, 2015).

But the very same day as McCarthy, the U.S.
District Court for the District of North Dakota affirmed
its own jurisdiction, holding that Section 1369(b) does
not apply. North Dakota v. EPA, 127 F. Supp. 3d 1047
(D.N.D. 2015). The court observed that “fijf the
exceptionally expansive view” of that provision
“advocated by the government is adopted, it would
encompass virtually all EPA actions under the Clean
Water Act.” Jd. at 1053. The North Dakota court denied
the agencies’ motion to dismiss and preliminarily
enjoined the operation of the Rule.

4 See North Dakota v. EPA, 3:15-cv-59, Dkt. 79 (D.N.D. Sept. 4,
2015) (limiting the injunction to the States that were party to the
challenge). After the Sixth Circuit ruled it had jurisdiction the
North Dakota court denied the United States’ renewed motion to
dismiss and to dissolve the injunction and stayed the case
“pending further decision by the Courts of Appeals or Supreme
Court.” Id., Order, Dkt. 156 (May 24, 2016).

10

2. The Sixth Circuit refuses to dismiss
the petitions for review

The NAM, which had not filed a protective petition
for review, successfully moved to intervene as a
respondent in the Sixth Circuit. Dkt. 8, No. 15-3751
cons. (6th Cir. Sept. 16, 2015). The NAM then moved to
dismiss the petitions for review for want of jurisdiction.
Dkt. 39, No. 15-3751 cons. (6th Cir. Oct. 2, 2015), as
did many of the parties that had filed protective
petitions for review.

The Sixth Circuit ordered full briefing and
argument on jurisdiction. On October 9, acknowledging
the “still open question whether * * * this litigation is
properly pursued in this court or in the district courts,”
the Sixth Circuit issued a nationwide stay of the Rule
to “temporarily silenc[e] the whirlwind of confusion
that springs frcm uncertainty about the requirements
of the new Rule and whether they will survive legal
testing.” In re EPA, 803 F.3d 804, 806, 808 (6th Cir.
2015). Judge Keith dissented, arguing that a stay was
premature so long as the court’s jurisdiction remained
“in doubt.” Jd. at 809 (Keith, J., dissenting).

On February 22, 2016, the Sixth Circuit concluded,
in an unusually fractured decision, that it and not the
district courts had jurisdiction to hear the Rule
challenges. The court of appeals’ 1-1-1 decision
produced its own “whirlwind of confusion.” 803 F.3d at
808. Indeed, the only thing the panel could agree on
was that subsections (E) and (F) were the “only two
provisions of § 1369(b)(1)” that “potentially apply.”
App., infra, 8a. On all other issues the panel splint-
ered.

a. Judge McKeague’s opinion. Judge McKeague
admitted that the government's textual arguments as
to subsection (E) were “not compelling.” App., infra, 9a.

11

“(Tjhe Rule’s clarified definition,” he wrote, does not
“approve or promulgate any limitation that imposes
ipso facto any restriction or requirement on point
source operators or permit issuers.” bid. (emphasis
added). “Rather,” it is “a definitional rule that, operat-
ing in conjunction with other regulations, will result in
imposition of such limitations.” Ibid.

Judge McKeague nevertheless concluded that
jurisdiction hes in the court of appeals under sub-
section (E)}—not because the statutory text requires it,
but because this Court’s decision in E.I. du Pont de
Nemours Co. v. Train does so. Judge McKeague
conceded that the du Pont case “can be read in more
ways than one.” App., infra, 10a. But he believed that
du Pont “eschewed” a “literal reading” of Section
1369(b)(1) in favor of a “more generou[s]” interpret-
ation than the statutory “language would indicate,”
and that this interpretation encompasses the WOTUS
Rule because the Rule’s “practical effect will be to
indirectly produce various limitations on point-source
operators and permit issuing authorities.” App., infra,
10a, 13a, 17a.

Turning to Subsection (F), Judge McKeague
recognized that the Rule does not “issue” or “deny” any
permits. But he concluded that Subsection (F) ought
not be given “a strict literal application” either. App.,
infra, 17a. In support, Judge McKeague cited this
Court’s opinion in Crown Simpson Pulp Co. v. Costle
and the Sixth Circuit’s decision in National Cotton
Council of America v. EPA, 553 F.3d 927 (6th Cir.
2009). He reasoned that those decisions together
authorize direct review in the circuit courts of any
regulation that merely, in some indirect way, “affects
permitting requirements.” App., infra, 19a (emphasis
added).

12

b. Judge Griffin's begrudging concurrence. Judge
Griffin concurred in the judgment only. Like Judge
McKeague, he concluded that the “plain text” of sub-
section (E) does not govern the petitions for review
because the WOTUS Rule is not an “effluent limitation
or other limitation.” App., infra, 30a-3la. But unlike
Judge McKeague, Judge Griffin refused to read du
Pont as “shoehorning an exercise in jurisdictional line-
drawing into subsection (E)’s ‘other limitation’ pro-
vision,” and hence found no jurisdiction under Sub-
section (E). App., infra, 35a.

Canvassing the text and Supreme Court
precedents, Judge Griffin also thought it plain that
Subsection (F) “simply does not apply here.” App.,
infra, 40a. He concurred in the judgment only because,
in his view, the Sixth Circuit’s earlier decision in
“National Cotton dictates [the] conclusion” that Sub-
section (F) encompasses the WOTUS Rule—a conclu-
sion he criticized because it means that subsection (F)’'s
“jurisdictional reach * * * has noend.” App., infra, 42a.
Judge Griffin explained that “while I agree” with Judge
McKeague “that National Cotton controls this court's
conclusion, I disagree that it was correctly decided. But
for National Cotton, I would find jurisdiction lacking.”
App., infra, 38a-39a.

c. Judge Keith’s dissent. Judge Keith dissented. He
joined Judge Griffin in holding Subsection (EF)
inapplicable. App., infra, 45a. But he concluded that
“National Cotton’s holding is not as elastic as the
concurrence suggests.” App., infra, 47a. It does not
authorize original subject-matter jurisdiction over “all
rules ‘relating to [permitting] procedures, such as the
one at issue here,” which “merely defines the scope of
the term ‘waters of the United States.” App., infra,
46a. Even read most broadly, National Cotton inter-
preted Section 1369(b) to reach only those rules that

13

“regulate’ or ‘govern’ [permitting] procedure,” which
the WOTUS Rule does not. Ibid. Observing that the
Eleventh Circuit had rejected National Cotton's
reasoning in Friends of the Everglades v. EPA, 699
F.3d 1280 (11th Cir. 2012), Judge Keith saw no need to
read National Cotton “in a way that expands the
jurisdictional reach of subsection (F) in an all-
encompassing, limitless fashion.” App., infra, 46a-47a.
He would have granted the motions to dismiss and sent
the parties to the district courts for initial review.

The Sixth Circuit issued a separate judgment
denying the motions to dismiss. App., infra, 48a-50a.

The NAM and others petitioned the Sixth Circuit
to rehear its jurisdictional ruling en banc. The court
denied rehearing over the dissent of Judge Keith. App.,
infra, 5la-52a. Thereafter, the court set a briefing
schedule on a motion relating to the content of the
administrative record, followed by the merits. Merits
briefing will not be completed until mid-February
2017—twenty months after the EPA and the Corps first
promulgated the Clean Water Rule. Case Management
Order No. 2, Dkt. 99 (June 14, 2016).

E. The Aftermath Of The Sixth Circuit’s De-
cision
Following the Sixth Circuit’s fractured decision,
the U.S. District Court for the Northern District of
Oklahoma declined jurisdiction. Oklahoma ex rel.
Pruitt v. EPA, 2016 WL 3189807 (N.D. Okle Teb. 24,
2016). The government moved to dismiss or stay other
cases, including in the Southern District of Texas,
where the NAM’s case is pending. The NAM opposed
the government’s motion, which remains pending. Am.
Farm Bureau Fed’n, et al. v. EPA, 3:15-cv-165 (S.D.
Tex.), Dkt. 50.

14

In August, the Eleventh Circuit abstained under
Colorado River from deciding the appeal of the denial
of a preliminary injunction for Jack of jurisdiction in
Georgia v. McCarthy, pending the Sixth Circuit’s
decision on the merits. Georgia v. McCarthy, 2016 WL
4363130 (llth Cir. Aug. 16, 2016).5 Pointedly, the
Eleventh Circuit did not endorse the Sixth Circuit's
jurisdictional analysis. Nor did it order the district
court to dismiss the case for lack of jurisdiction.
Rather, relying on “[c]lonsiderations of wise judicial
administration,” the court determined to “stay [its]
hand” pending “further developments.” Jd. at *2.

REASONS FOR GRANTING THE PETITION

I. The Sixth Circuit Erroneously Took Juris-
diction Under Section 1369(b), In Conflict With
Decisions Of Other Circuits.

“Section 1369(b) extends only to certain suits
challenging some agency actions.” Decker v. Nw. Envil.
Def. Cir., 1383 S. Ct. 1326, 13834 (2013). It does not
extend to suits challenging the WOTUS Rule. A
majority of the panel understood that fact. App., infra,
27a (Griffin, J.), 45a (Keith, J.). Judge Griffin
nevertheless voted with Judge McKeague to exercise
jurisdiction under Section 1369(b)(1)(F), believing that
he was bound by the Sixth Circuit’s “incorrect” decision
in National Cotton. App, infra, 44a. The panel’s
decision to exercise jurisdiction was in error and in
conflict with decisions of other circuits.

5 The NAM and its co-plaintiffs filed an amicus brief in the
Eleventh Circuit in McCarthy urging reversal of the district
court’s decision declining jurisdiction. The NAM and its co-
plaintiffs likewise filed an amicus brief in the Tenth Circuit in the
Pruitt case urging reversal of the dismissal. The Pruitt appeal has
not yet been decided.

15

A. The Sixth Circuit Lacks Jurisdiction Under
Section 1369(b).

1. Section 1369(b)(1)(F) does not authorize the
Sixth Circuit's review of the Rule. It grants courts of
appeals original jurisdiction to “{rleview *** the
Administrator's action * * * in issuing or denying any
permit under section 1342." There are plenty of
examples in which the EPA Administrator actually
issues or denies a Section 1342 permit; those EPA
actions are properly challenged in the courts of
appeals.®

The WOTUS Rule, by contrast, does not issue or
deny a permit. EPA Administrator Gina McCarthy
admitted as much: “the Clean Water Rule is a
jurisdictional rule. It doesn’t result in automatic
permit decisions.” The Fiscal Year 2016 EPA Budget:
Joint Hearing Before the Subcomm. on Energy & Power
& the Subcomm. on Environment & Economy of the
House Comm. on Energy & Commerce, 114th Cong. 70
(Feb. 25, 2015). Judge Griffin therefore was correct in
concluding that “[o}]n its face, subsection (F) clearly
does not apply,” because the Rule “neither issues nor
denies a permit” under Section 1342. App., infra, 39a.
“[T]bis should end the analysis.” Jbid.

Judge McKeague agreed that this reading is
“consonant with the plain language” of the statute.

® See, e.g., Nat. Res. Def. Council v. EPA, 808 F.3d 656, 562 & n.4
(2d Cir. 2015) (challenging grant of Section 1342 permit to
vessels); Alaska Eskimo Whaling Comm'n v. EPA, 791 F.3d 1088,
1090-1091 (9th Cir. 2015) (challenging grant of Section 1342
permit to oil and gas exploration facilities); Upper Blackstone
Water Pollution Abatement Dist. v. EPA, 690 F.3d 9, 11, 20 (ist
Cir. 2012) (challenging grant of Section 1342 permit to sewage
treatment plant); Alton Box Bd. Co. v. EPA, 692 F.2d 395, 396
(7th Cir. 1979) (challenging denial of Section 1342 permit to mill).

16

App., infra, 23a-24a. But he chose not to apply that
plain language on the ground that Crown Simpson
Pulp Co. v. Costle, 445 U.S. 193 (1980), “opened the
door to constructions other than a strict literal
application.” App., infra, 17a.

To put it plainly, Judge McKeague misread Crown
Simpson. In that case, EPA vetoed Section 1342
permits that a California agency had issued to pulp
mills after EPA had delegated permitting authority to
the State. 445 U.S. at 194-195 & n.3. This Court held
that the Ninth Circuit had jurisdiction under Section
1369(b)(1)(F) to review EPA’s vetoes because “EPA’s
veto of a state-issued permit is functionally similar to
its denial of a permit in States which do not administer
an approved permit-issuing program” and had the
“precise effect” of denying the permits. Jd. at 196.

As Judge Griffin explained, Crown Simpson's
“facts *** make clear that the Court understood
functional similarity in a narrow sense.” App., infra,
40a. EPA effectively had denied Crown Simpson's
Section 1342 permit applications in the most literal
sense. Judge McKeague lost sight of those facts when
he read Crown Simpson to allow courts of appeals to
review any CWA regulation “so long as it affects
permitting requirements.” App., infra, 19a.

Congress could have written paragraph (F) to
apply to EPA actions “affecting when permits are or
are not required under Section 1342.” But Judge
McKeague’s approach cannot be squared with the
statute that Congress actually wrote, which applies to
agency actions that themselves amount to “issuing or
denying any permit under section 1342.” As Judges
Keith and Griffin recognized, it is difficult to imagine
any case in which Judge McKeague’s expansive re-
drafting of paragraph (F) would not confer jurisdiction.

17

See App., infra, 42a (it means subsection (F)’s “juris-
dictional reach * * * has no end”) (Griffin, J.); App..,
infra, 47a (it “expands the jurisdictional reach of
gubsection (F) in an all-encompassing, limitless
fashion”) (Keith, J.).

Judge Keith explained in his dissent why Judge
Griffin erred in nevertheless voting to exercise
jurisdiction under Section 1369(b)(1)(F) on the ground
that National Cotton required it. But Judge Griffin’s
belief that his vote was forced by the incorrect decision
in National Cotton is of no moment here. Unbound by
National Cotton, this Court is free to read the statute
correctly.

2. A majority of the panel properly concluded that
Section 1369(b)(1)(E) does not confer jurisdiction. App..,
infra, 29a-38a (Griffin, J.), 45a (Keith, J.); see also
Gov't Opp. to Rh’g Pets. at 22 n.7, Dkt. 89 (Apr. 1,
2016) (conceding that the Sixth Circuit is not
exercising jurisdiction under paragraph (E)). The
agencies’ contention that Section 1369(b)(1)(E) confers
jurisdiction is mistaken.

Paragraph (E) grants jurisdiction to courts of
appeals to review “the Administrator's action * * * in
approving or promulgating any effluent limitation or
other limitation under section 1311, 1312, 1316,
or 1345.” It is undisputed that the Rule is not an
“effluent limitation,” which is a “restriction * * * on
quantities, rates, and concentrations of chemical” or
other constituents that are discharged into navigable
waters. 33 U.S.C. § 1362(11); see App., infra, 8a-9a.
The Rule also is not an “other limitation under section
1311, 1312, 1316, or 1345,” for three independent
reasons.

First, the Rule is not a “limitation” in any ordinary
sense of that word. It does not directly restrict the use

18

to which property owners put their land. It purports
only to define the phrase “waters of the United States,”
which describes the waters to which other CWA
sections may apply. As Judge Griffin put it, the Rule
“is not self-executing” but merely “operates in
conjunction with other sections scattered throughout
the Act to define when [the Act’s other] restrictions
* * * apply.” App., infra, 31a; see also id. at 9a (“[T]he
Rule’s clarified definition is not self-executing”; only
“operating in conjunction with other regulations [will
it} result in imposition of such _ limitations”)
(McKeague, J.).

Second, the Rule is not an “other” limitation. The
ejusdem generis canon requires reading a general term
following a specific term as “embrac[ing] only objects
similar in nature to those objects enumerated by the
preceding specific words.” Circuit City Stores, Inc. v.
Adams, 532 U.S. 105, 114-115 (2001). Application of
the canon thus requires reading “other limitation” as
embracing an object similar to an “effluent limitation.”
Effluent limitations are not just any limitation; rather,
they “dictate in specific and technical terms the
amount of each pollutant that a point source may
emit.” Am. Paper Inst. v. EPA, 890 F.2d 869, 876 (7th
Cir. 1989). The Rule, which is a regulatory definition of
“waters of the United States,” is not even remotely
similar in nature to an effluent limitation.

Third, the Rule is not an other limitation “under
section 1311, 1312, 1316, or 1345.” Each of those
sections provides for the issuance of effluent limita-
tions or effluent limitation-like rules. Section 1311
governs “effluent limitations.” Section 1312 governs
“water quality related effluent limitations,” which are
additional effluent limitations that may be imposed
where other limitations fail to achieve water quality
standards. Section 1316 requires establishment of

19

technology-based effluent controls for new dischargers.
And Section 1345 restricts the discharge of sewage
sludge. It would be a mistake to think of the agencies’
definition of “waters of the United States” as a
limitation at all; it would be downright absurd to say
that, as a limitation, it has a purpose similar in nature
to an effluent limitation describing the technical
measures of pollutants allowed under a permit—much
less that it was promulgated under any of the
specifically identified statutory provisions. See App..,
infra, 30a-31a (Griffin, J.) (the Rule “does not emanate
from these sections” and is not “related to the statutory
boundaries set forth in [them]”); Friends of the
Everglades, 699 F.3d at 1286 (“[E]ven if the water-
transfer rule could be classified as a limitation, it was
not promulgated under section 1311, 1312, 1316, or

1345”).

3. There is another reason to reject interpreting
paragraphs (E) or (F) as limitless grants of original
jurisdiction to the courts of appeals over all agency
rulemaking that touches on CWA permitting: the
expressio unius est exclusio alterius canon, which
provides that the expression of one thing implies the
exclusion of another. Section 1369(b) meticulously
catalogues seven categories of agency action subject to
original review in the courts of appeals. Congress’s
careful selection “justiffies] the inference” that a
general grant to courts of appeals of jurisdiction over
all CWA rules was “excluded by deliberate choice, not
inadvertence.” Barnhart v. Peabody Coal Co., 537 U.S.
149, 168 (2003). “No sensible person accustomed to the
use of words in laws would speak so narrowly and
precisely of particular statutory provisions [in Section
1369(b)], while meaning to imply a more general and
broad coverage than the statutes designated.” Long-

20

view Fibre Co. v. Rasmussen, 980 F.2d 1307, 1313 (9th
Cir. 1992).

That conclusion takes on special force when Section
1369(b) is considered alongside the much broader grant
of jurisdiction to courts of appeals in the Clean Air Act.
That statute provides for original jurisdiction in the
courts of appeals over challenges not only to particular
agency actions, but also to “any other nationally
applicable regulations promulgated, or final action
taken, by the Administrator” under the Act. 42 U.S.C.
§ 7607(b)(1). That language shows that Congress
knows how to “malke] express provisions” for
expansive original jurisdiction in the courts of appeals
when it wants to and that its “omission of the same
Nanguage]” from Section 1369(b)(1) “was purposeful.”
Zadvydas v. Davis, 533 U.S. 678, 708 (2001). In short,
the panel plainly erred in exercising jurisdiction under
Section 1369(b).

B. The Panel’s Ruling Conflicts With Decisions
Of Other Courts Of Appeals.

The panel’s erroneous decision deepens a conflict
among the circuits. In their preamble to the Rule the
agencies acknowledged that “courts have reached
different conclusions on the types of actions that fall
within section [1369(b)].” 80 Fed. Reg. at 37,104; see
also Alhson LaPlante et al., On Judicial Review Under
the Clean Water Act in the Wake of Decker v.
Northwest Environmental Defense Center: What We
Know Now and What We Have Yet to Find Out, 43
ENVTL. L. 767, 767 (2013) (observing that decisions
interpreting Section 1369(b) are “confusing and messy”
because the “Circuits are split”). The panel’s ruling—
itself hopelessly fractured—cannot be reconciled with
Friends of the Everglades v. EPA, 699 F.3d 1280 (11th
Cir. 2012).

21

1. In Friends of the Everglades, the Eleventh
Circuit held that it lacked original jurisdiction to
review EPA’s water transfer rule. 699 F.3d at 1283.
That rule excludes from the CWA’s prohibition of “any
addition of any pollutant to navigable waters” without
a Section 1342 permit an activity that “conveys or
connects waters of the United States,” provided the
activity does not “subjec[t] the transferred water to
intervening industrial, municipal, or commercial use.”
But it includes within the prohibition an activity in
which “pollutants [are] introduced by the water
transfer activity itself to the water being transferred.”
40 C.F.R. § 122.3(i); see 33 U.S.C. § 1362(12).

EPA argued in Friends that Section 1369(b)(1)(F)
provided jurisdiction because paragraph (F) “appl[ies]
to any ‘regulations relating to permitting itself” (699
F.3d at 1288)—the very argument that Judge
McKeague accepted here. See App., infra, 19a. The
Eleventh Circuit flatly rejected that contention because
it is “contrary to the statutory text.” 699 F.3d at 1288.

The Eleventh Circuit also declined to follow the
Sixth Circuit’s decision in National Cotton, explaining
that National Cotton “provided no analysis” of Section
1369(b)(1)(F) and “cited two decisions of the Ninth
Circuit that the Ninth Circuit had distinguished in
Northwest Environmental Advocates” (a decision we
discuss below). 699 F.3d at 1288. Here, Judge Griffin
found the Eleventh Circuit's criticisms of National
Cotton to “have merit,” but concluded that he was
nevertheless bound by National Cotton as prior Sixth
Circuit precedent. App., infra, 43a. “But for National
Cotton,” he—and thus the panel—would have granted
the motions to dismiss. Id. at 39a.

The WOTUS Rule purports to clarify the CWA’s
jurisdictional reach as defined by the statutory phrase

22

“waters of the United States” in 33 U.S.C. § 1362(7),
which, the agencies say, “establishes where the Act’s
prohibitions and requirements apply.” See App., infra,
32a. The water transfer rule at issue in Friends of the
Everglades, in defining when a transfer of water
through a point source is or is not an “addition of any
pollutant” under Section 1362(12), likewise established
circumstances in which “the Act’s prohibitions and
requirements apply.” There is no plausible argument
that Section 1369(b) gave the court of appeals
jurisdiction here but not in Friends.

The agencies mistakenly contend that the cases are
distinguishable because the water transfer rule creates
an “exemption.” E.g., U.S. Response Br., Chamber of
Commerce v. EPA, No. 16-5038, supra, at 52 n.8
(asserting that Friends is “not on point” because it
“considered exemptions from [CWA] requirements’).
That is mere wordplay. Calling a rule an “exemption”
is just another way of saying that a rule defines when
the Act’s requirements apply and when they do not.
That is especially clear in Friends, where the rule on
its face described water transfers that are included in
the Section 1342 prohibition—transfers that involve
the intervening use of the water or that themselves
introduce pollutants to the water—as well as transfers
that are excluded.

Against this backdrop, there is no doubt that if the
JPML had consolidated the petitions for review of the
WOTUS Rule in the Eleventh Circuit instead of the
Sixth Circuit, the challenges would have been dismis-
sed for want of jurisdiction under Friends.

2. The panel’s ruling also is at odds with the Ninth
Circuit's decision in Northwest Environmental
Advocates v. EPA, 537 F.3d 1006 (9th Cir. 2008). The
plaintiff in Northwest Environmental Advocates filed

23

an APA action in the district court challenging a
regulation that exempted certain vessel discharges
from Section 1342 permitting. EPA argued on appeal
that the district court lacked jurisdiction because the
challenge fell within Section 1369(b)’s grant of
exclusive jurisdiction to the courts of appeals. The
Ninth Circuit disagreed. Id. at 1015-1018.

The Ninth Circuit refused to “lightly hold that we
have jurisdiction under section [1369(b)].” 537 F.3d at
1015. It “counseled against * * * expansive application”
of that jurisdictional grant because “no sensible person
would speak with” the degree of “specificity and
precision” that Congress used in Section 1369(b) if an
expansive application is what it intended. Jbid. The
Ninth Circuit held that original court of appeals
jurisdiction is proper under Subsection (E) only if a
rule clearly imposes a limitation, or under Subsection
(F) only if the “EPA actions [are] ‘functionally similar’
to the denial of permits.” Jd. at 1016 (quoting Crown
Simpson, 445 U.S. at 196). And “the ‘acts of [Crown
Simpson] make clear that th[is} Court understood
functional similarity in a narrow sense.” Ibid. Because
the exemption at issue involved neither the issuance or
denial of a permit or a functionally similar action, nor
the approval or promulgation of any effluent or other
limitation, Section 1369(b) did not govern.

3. The panel’s decision is also contrary to the North
Dakota district court’s decision that it—not courts of
appeals—has jurisdiction to review the WOTUS Rule.
North Dakota v. EPA, 127 F. Supp. 3d 1047, 1052-1053
(D.N.D. 2015). The district court favorably cited the
Eleventh Circuit’s decision in Friends and correctly
held that the agencies’ argument “run[s] precisely
contrary to Congress’ intent in drafting” Section
1369(b) narrowly. Id. at 1053. The district court
reaffirmed that decision by refusing to dismiss the case

24

after the Sixth Circuit panel issued its decision. Order,
Dkt. 156, No. 3:15-cv-59 (D.N.D. May 24, 2016).

As the agencies argued in opposing the challengers’
petitions for en banc rehearing, achieving “uniformity
among the circuiis” is “the province of the Supreme
Court.” Gov’t Opp. to Rh’g Pets. at 22. So it is. The
Court should grant certiorari here to bring that
uniformity.

Il. The Question Presented Is Of Immense And

Immediate Practical Importance.

A. Uncertainty Over The Meaning Of Section
1369(b) Causes Delay And Waste Of Judicial
And Party Resources.

1. This Court has recognized that the manner of
challenging federal environmental regulations is an
issue of exceptional importance. See Harrison v. PPG
Indus., Inc., 446 U.S. 578, 586 (1980) (“We granted
certiorari * * * because of the importance of deter-
mining the locus of judicial review of the actions of
EPA [under the Clean Air Act]’). The panel here
acknowledged “the nationwide importance of the
matter.” Order at 2, Dkt. 78 (6th Cir. Mar. 16, 2016).
So did EPA when it petitioned for certiorari from the
Eleventh Circuit's decision in Friends of the
Everglades. There, EPA urged this Court to grant
certiorari on the Section 1369(u) issue because “the
proper time and manner of judicial challenges to the
Water Transfers Rule and similar NPDES-related
regulations” “presents a question of exceptional
importance” that “has significant consequences for the
applicable statute of limitations and mode of litigation”
and that has given rise to circuit “conflicts.” U.S. Pet’n
for Cert., No. 13-10, at 9 (U.S. 2013). Commentators
agree. See LaPlante, supra, 43 ENVTL. L. at 772
(“[T]here is no denying that questions regarding

25

section [1369](b)(1)’s reach are important and need to
be resolved by the High Court”).

This Court has recognized time and again that
“administrative simplicity is a major virtue in a
jurisdictional statute.” Hertz Corp. v. Friend, 559 U.S.
77, 94 (2010). “Complex jurisdictional tests complicate
a case, eating up time and money as the parties
litigate, not the merits of their claims, but which court
is the right court to decide those claims.” Ibid. “Judicial
resources too are at stake” because “[c]ourts have an
independent obligation to determine whether subject-
matter jurisdiction exists, even when no party
challenges it.” Ibid. (citing Arbaugh v. Y & H Corp.,
546 U.S. 500, 514 (2006)). “So courts benefit from
straightforward rules under which they can readily
assure themselves of their power to hear a case.” Ibid.

Nowhere are these truths more apparent than with
respect to Section 1369(b). Because of the great
uncertainty in the case law, parties cannot know which
court (or courts) will rule that it has power to decide a
CWA rule challenge. As a result, challenges are
routinely filed both in the district courts and in the
courts of appeals—a wasteful practice that the
agencies concede is appropriate “to preserve a forum
for [challengers’] claims” “[g]liven uncertain juris-
diction.” U.S. Response Br., Chamber of Commerce v.
EPA, No. 16-5038, supra, at 24.7 This uncertainty
produces duplicative litigation, conflicting decisions on

? The Seventh Circuit in Roll Coater, Inc. v. Reilly, 932 F.2d 668,
671 (7th Cir. 1991), warned that “careful counsel must respond to”
the “uncertain opportunities for review” of CWA regulations by
“filing buckshot petitions” both in the district court and court of
appeals. That is precisely what challengers do. See, e.g., Friends of
the Everglades, 699 F.3d at 1283; National Cotton, 553 F.3d at
932; Nw. Envtl. Advocates, 537 F.3d at 1014.

26

jurisdiction, significant delay, and tremendous waste of
judicial and party resources. It also leaves merits
decisions vulnerable to appellate reversal on grounds
other than the merits, creating additional uncertainty.
And the problem is unavoidable because every federal
court has an independent obligation to determine if it
has subject-matter jurisdiction.

2. The challenges to this Rule are a case in point.
The agencies admit that “there is no denying the
importance of the Clean Water Rule.” Gov't Opp. to
Rh’g Pets. at 12. Because of the Rule’s importance,
State, municipal, industry, and environmental! parties
filed complaints in district courts and 22 petitions for
review in the courts of appeals to guarantee that they
preserved their challenges. See supra, p. 8.

Before the Sixth Circuit issued its decision, three
district courts had ruled on jurisdiction, reaching
conflicting determinations. Supra, p. 9. After the
panel’s ruling, a district court sua sponte dismissed an
APA challenge for lack of jurisdiction, another denied
the agencies’ motion to dismiss, another has the
agencies motion under advisement, and still others
have stayed the cases. Supra, p. 13. On appeal from a
district court’s denial of a preliminary injunction
against the Rule for want of jurisdiction, the Eleventh
Circuit abstained, holding the case in abeyance and
ordering the district court to stay, not dismiss, APA
proceedings. Georgia v. McCarthy, 2016 WL 4363130,
at *3 (11th Cir. Aug. 16, 2016). And the Tenth Circuit
is currently considering an appeal from the dismissal
of an APA action for lack of jurisdiction. Supra, p. 14.
This garbled state of affairs is intolerable.

For its part, the NAM has invested substantial
time and money in the proceedings on jurisdiction—as
have State, municipal, industry, and environmental

27

parties, the agencies, and the courts. Only now, long
after the agencies promulgated the Rule, are the
parties even beginning to brief the merits. And they
are doing so before a court that they believe lacks
jurisdiction—which puts a merits decision by a Sixth
Circuit at risk upon further review.

3. Earlier challenges to EPA’s water transfer rule
provide another example. That rule was issued in 2008.
Friends of the Everglades, 699 F.3d at 1284.
Challenges were brought in the district courts and
courts of appeals. The latter were consolidated in the
Eleventh Circuit, which held it lacked original juris-
diction over the rule challenges. Jd. at 1286. After the
United States unsuccessfully sought certiorari to
review the jurisdiction ruling (No. 13-10), litigation
proceeded in the district court, which ruled on the
merits in 2014—=s1x years after the regulation was
issued. Catskill Mountains Chapter of Trout Unlimited,
Inc. v. EPA, 8 F. Supp. 3d 500, 516 (S.D.N.Y. 2014).
The appeal from that decision remains pending today.

EPA stipulated that, in light of the Eleventh Cir-
cuit’s decision, it is collaterally estopped from chal-
lenging the district court’s jurisdiction in the Second
Circuit. EPA Br. at 3-4 & n.2, Dkt. 210, No. 14-1823(L)
(2d Cir. Sept. 11, 2014). That seems unlikely. But even
if that proposition were correct, parties in the district
court that did not participate in Friends may challenge
an unfavorable ruling from the Second Circuit by
arguing on petition for rehearing or certiorari that the
district court lacked subject-matter jurisdiction—a
non-waivable issue—and that the Second Circuit’s
decision therefore must be vacated. Cf. Ford Motor Co.
v. United States, 134 S. Ct. 510, 510 (2013) (per
curiam) (granting certiorari, vacating, and remanding
after the United States, which “acquiesced in
jurisdiction in the lower courts,” contended “for the

28

first time” in its brief in opposition that the lower
courts lacked subject-matter jurisdiction). This ace up
the sleeve threatens to return the parties and courts to
square one, nearly a decade after EPA issued the water
transfer rule.

It is for just these reasons that “jurisdictional rules
should be clear.” Lapides, 535 U.S. at 621. The law
interpreting Section 1369(b) is anything but—and
confusion is only compounded by the extraordinary
1-1-1 decision below. This Court's intervention is
urgently needed to bring clarity and certainty to
jurisdiction over CWA rule challenges.

B. The Panel’s Decision Would Deny Parties,
Agencies, And Courts Of The Benefits Of
Multilateral Review Of Agency Rulemaking.

1. The agencies have urged that it is good policy to
funnel CWA rule challenges into a single court of
appeals to provide “efficient, timely, and nationally-
binding review of fundamental Clean Water Act
regulatory actions.” U.S. Response Br., Chamber of
Commerce v. EPA, No. 16-5038, supra, at 60. In other
words, the “policy” the agencies are concerned about is
their own convenience and desire to suppress the full
airing of issues that comes with multi-court review.

Those concerns carry no weight in the face of plain
statutory language. As this Court has observed,
jurisdiction “must of course be governed by the intent
of Congress and not by any views [courts] may have
about sound policy.” Fla. Power & Light Co. v. Lorion,
470 U.S. 729, 746 (1985). Put another way, “[ijt is not
[the Court’s} task to determine which would be the
ideal forum for judicial review of the Administrator’s
decision in this case.” Harrison, 446 U.S. at 593. As
EPA has been told before, it may not “avoid the
Congressional intent clearly expressed in the text

29

simply by asserting that its preferred approach would
be better policy.” Friends of the Earth v. EPA, 446 F.3d
140, 145 (D.C. Cir. 2006).

2. In fact, the panel's ruling, if allowed to stand,
would disserve the federal judicial process, which
depends on district courts and courts of appeals
independently analyzing legal issues. Under the
panel’s ruling, challenges to important CWA regula-
tions would be funneled to a single court of appeals,
without the benefit of initial consideration by the
district courts or the opinions of the other federal
courts of appeals on the same issues. The quality of
legal decision-making—and of this Court’s ability to
decide which cases to review—would be diminished.

Debate among lower courts “helps to explain and
formulate the underlying principles this Court * * *
must consider.” Obergefell v. Hodges, 135 S. Ct. 2584,
2597 (2015). It also “winnows out the unnecessary and
discordant elements of doctrine.” California v. Carney,
471 U.S. 386, 400-401 (1985) (Stevens, J., dissenting)
(citing Benjamin Cardozo, THE NATURE OF THE
JUDICIAL PROCESS 179 (1921)). Accordingly, this Court
typically “permit[s] several courts of appeals to explore
a difficult question before [it] grants certiorari.” United
States v. Mendoza, 464 U.S. 154, 160 (1984); see, e.g.,
Obergefell, 135 S. Ct. at 2597.

The benefits of multi-court review accrue as clearly
in the review of administrative rules as in other types
of cases. See Richard L. Revesz, Specialized Courts and
the Administrative Lawmaking System, 138 U. PA. L.
REV. 1111, 1155 (1990) (explaining “[w]hy [we] should
** * take uniform administrative decisions and subject
them to review in the various regional circuit courts
under a system that makes it possible for these courts
to disagree with one another”). These benefits include

30

that “the possibility of intercircuit disagreement
provides a simple device for signaling that certain hard
cases are worthy of additional judicial resources”; that
“the doctrinal dialogue that occurs when a court of
appeals addresses the legal reasoning of another and
reaches a contrary conclusion * * * improves the
quality of legal decisions”; and that exploration of an
issue by multiple courts aids this Court “both in its
consideration of the legal merits of an issue and in its
case selection decisions.” Jd. at 1156-1157.

Thus the circuit splits that the agencies fear may
arise from initial consideration in multiple district
courts “increase the probability of a correct disposition”
(Atchison, Topeka & Santa Fe Ry. Co. v. Pena, 44 F.3d
437, 447 (7th Cir. 1994) (Easterbrook, J., concurring)),
and tee up issues more thoroughly for this Court’s
consideration. There is nothing about agency regula-
tions that makes this process less appropriate for rule
challenges than for other types of cases, like those
involving the meaning or constitutionality of federal
statutes. All the benefits of multi-court consideration
would be lost if Section 1369(b) were stretched beyond
the defined categories of agency action that Congress
designated for original court of appeals review.

3. Furthermore, Section 1369(b) must be read in
light of the default rule that Congress established in
the APA, which is that agency action is subject to
multilateral judicial review. “[I]n the absence or in-
adequacy” of a “special statutory review proceeding,”
any “person suffering legal wrong because of agency
action” is “entitled to judicial review” “in a court of
competent jurisdiction.” 5 U.S.C. §§ 702-703. A plaintiff
generally may file suit where it resides. See 28 U.S.C.
§§ 1331, 1391(e); see also Bowen v. Massachusetts, 487
U.S. 879, 904 (1988) (Congress “inten[ded] that [the
APA] cover a broad spectrum of administrative actions,

31

and this Court has echoed that theme by noting that
the [APA’s] ‘generous review provisions must be given
a ‘hospitable’ interpretation”). In the absence of a clear
statement from Congress in Section 1369(b), the Sixth
Circuit should not have upended the APA judicial
review process. This Court should grant certiorari to
restore APA review to CWA rulemaking outside the
narrow categories that Congress expressly specified in
Section 1369(b).

C. Interlocutory Review Is Warranted

The interlocutory posture of the case counsels here
in favor of an immediate grant of review. If, as we have
argued—and as two of the panel judges believed—
jurisdiction lies in the district courts under the APA, a
merits ruling in the Sixth Circuit would serve no
purpose. This Court would have no more authority to
review a merits decision by the Sixth Circuit than
would the Sixth Circuit to issue such a decision in the
first place.

It thus makes no sense to delay deciding whether
the court now addressing the merits has the statutory
authority to do so while the parties file and the Sixth
Circuit reads hundreds of pages of briefs, the court of
appeals conducts oral argument and prepares an
opinion (or opinions) on the merits, and untold party
and judicial resources are expended in the process.
Given the resources to be devoted to litigating the
merits—and the importance of and great uncertainty
over the correct resolution of the jurisdictional issue, in
this case and more generally—immediate resolution of
the question presented is imperative. Otherwise, the
shadow of uncertain jurisdiction will hang over the
merits stage before the panel, to reappear at the merits
rehearing and certiorari stages. And a reversal on
jurisdiction would hit the reset button on what by then

32

will have been years of litigation. Immediate review
thus would serve the interests of regulators and
regulated alike by ensuring that a merits decision
actually resolves the merits and is not upended by a
legal error over jurisdiction. It also would ensure that
while the jurisdictional dispute plays out in this case,
parties challenging new CWA rules do not face the
same uncertainty over jurisdiction.

This Court routinely grants review of jurisdictional
determinations even when (as here) the court of
appeals holds jurisdiction proper and orders further
proceedings. E.g., Walden v. Fiore, 134 S. Ct. 1115
(2014) (reviewing question concerning personal juris-
diction).

This Court’s finality jurisprudence under 28 U.S.C.
§ 1257 also is instructive. The Court in Mercantile
National Bank v. Langdeau, 371 U.S. 555, 557-558
(1963), reviewed a state court’s interlocutory venue
decision because it was “a separate and independent
matter, anterior to tae merits” and it made sense “to
determine now” in which court “appellants may be
tried rather than to subject them, and appellee, to long
and complex litigation which may all be for naught if
consideration of the preliminary question of venue is
postponed until the conclusion of the proceedings.” If
those considerations are sufficient to overcome even
the barriers to review of non-final state court rulings,
they should easily warrant interlocutory review of a
federal court decision here.

Regardless of how this Court ultimately interprets
Section 1369(b), Clean Water Act litigants deserve an
answer to the question presented to bring to an end the
current jurisdictional morass.

CONCLUSION
The petition for certiorari should be granted.

33

Respectfully submitted.

MICHAEL B. KIMBERLY TIMOTHY S. BISHOP
Mayer Brown LLP Counsel of Record
1999 K Street, NW CHAD CLAMAGE
Washington, DC 2000¢ JED GLICKSTEIN
(202) 263-3127 Mayer Brown LLP

LINDA E. KELLY 71 South Wacker Drive
QUENTIN RIEGEL Chicago, Illinois 60606
LELAND P. FROST (312) 782-0600

Manufacturers’ Center ibishop@mayerbrown.com

for Legal Action

733 10th Street, NW, Sie 700
Washington, DC 20001
(202) 637-3000
Counsel for Petitioner
SEPTEMBER 2016

APPENDIX

la

APPENDIX A

UNITED STATES COURT OF APPEALS
FOR THE SIXTH CIRCUIT

IN RE: UNITED STATES DEPARTMENT OF DEFENSE AND
UNITED STATES ENVIRONMENTAL PROTECTION
AGENCY FINAL RULE: CLEAN WATER RULE:
DEFINITION OF “WATERS OF THE UNITED STATES,”
80 FED. REG. 37,054 (JUNE 29, 2015).

MURRAY ENERGY CORPORATION (15-3751); STATE OF
OHIO, ET AL. (16-3799); NATIONAL WILDLIFE FEDERA-
TION (15-3817); NATURAL RESOURCES DEFENSE COUN.
CLL, INC. (15-3820); STATE OF OKLAHOMA (15-3822);
CHAMBER OF COMMERCE OF THE UNITED STATES OF
AMERICA, ET AL. (16-3823); STATE OF NORTH DAKOTA,
ET AL. (15-3831); WATERKEEPER ALLIANCE INC., ET AL.
(15-3837); PUGET SOUNDKEEPER ALLIANCE, ET AL.
(15-3839); AMERICAN FARM BUREAU FEDERATION,
ET AL. (15-3850); STATE OF TEXAS, ET AL. (15-3853);
UTILITY WATER ACT GROUP (15-3858); SOUTHEASTERN
LEGAL FOUNDATION, INC., ET AL.

(15-3885); STATE OF GEORGIA, ET AL. (15-3887);
ONE HUNDRED MILES, ET AL. (15-3948); SOUTHEAST
STORMWATER ASSOCIATION, INC., ET AL. (15-4169);
MICHIGAN FARM BUREAU (15-4162); WASHINGTON
CATTLEMEN'S ASSOCIATION (15-4188); ASSOCIATION OF
AMERICAN RAILROADS, ET AL. (15-4211); TEXAS ALLI-
ANCE FOR RESPONSIBLE GROWTH, ENVIRONMENT, AND
TRANSPORTATION (15-4234); AMERICAN EXPLORATION
& MINING ASSOCIATION (15-4305); ARIZONA MINING
ASSOCIATION, ET AL. (15-4404),

Petitioners,

Za

v.

UNITED STATES DEPARTMENT OF DEFENSE, DEPART-
MENT OF THE ARMY CORPS OF ENGINEERS AND UNITED
STATES ENVIRONMENTAL PROTECTION AGENCY,

ET AL.,

Respondents.

Nos. 15-3751 /3799/ 3817/
3820/ 3822/ 3823/ 3831/
3837/ 3839/ 3850/ 3853/ 3858/
3885/ 3887/ 3948/4159/ 4162/
4188/ 4211/ 4234/ 4305/ 4404

ees

On Petitions for Review of Final Rule of the United
States Department of Defense and United States
Environmental Protection Agency.

Judicial Panel on Multi-District Litigation, No. 135.

Argued: December 8, 2015
Decided and Filed: February 22, 2016

Before: KEITH, McKEAGUE, and GRIFFIN, Circuit
Judges.

COUNSEL

ARGUED: Eric E. Murphy, OFFICE OF THE
OHIO ATTORNEY GENERAL, Columbus, Ohio, for
Petitioners. Martha C. Mann, UNITED STATES
DEPARTMENT OF JUSTICE, Washington, D.C., for
Respondents.

3a

McKEAGUE, J., delivered the opinion in which
GRIFFIN, J., joined in the result. GRIFFIN, J., de-
livered a separate opinion concurring in the judg-
ment. KEITH, J., delivered a separate dissenting
opinion.

OPINION

McKEAGUE, Circuit Judge. This multi-circuit
case consists of numerous consolidated petitions
challenging the validity of the “Clean Water Rulc”
recently published by the U.S. Army Corps of Engi-
neers and U.S. Environmental Protection Agency
(“the Agencies”). The Clean Water Rule is intended
to clarify the scope of “the waters of the United
States” subject to protection under the Clean Water
Act. The Act provides that certain specified actions
of the EPA Administrator are reviewable directly in
the U.S. Circuit Courts of Appeals. Because of un-
certainty about whether the Agencies’ adoption of
the Clean Water Rule is among these specified ac-
tions, parties challenging the Rule have filed peti-
tions in both district courts and circuit courts across
the country. Many of the petitions have been trans-
ferred to the Sixth Circuit for consolidation in this
action. Many of the petitioners and other parties
now move to dismiss the very petitions they filed in-
voking this court’s jurisdiction, contending this court
lacks jurisdiction to review the Clean Water Rule.

The movants find support for their position in
the language of the Clean Water Act’s judicial review
provisions, which purport to define circuit court ju-
risdiction specifically and narrowly. Over the last 35

4a

years, however, courts, including the Supreme Court
and the Sixth Circuit, have favored a “functional”
approach over a “formalistic” one in construing these
provisions. These precedents support the Agencies’
position that this court does have jurisdiction. The
district courts that have confronted the jurisdictional
question in this litigation have arrived at conflicting
answers.! For the reasons that follow I conclude that
Congress’s manifest purposes are best fulfilled by our
exercise of jurisdiction to review the instant petitions
for review of the Clean Water Rule

I. BACKGROUND

Petitioners in these various actions, transferred
to and consolidated in this court by the Judicial Pan-
el on Multi-District Litigation for handling as a mul-
ti-circuit case, challenge the validity of a Final Rule
adopted by respondents U.S. Army Corps of Engi-
neers and U.S. Environmental Protection Agency,
“the Clean Water Rule.” 80 Fed. Reg. 37,054 (June
29, 2015). The Clean Water Rule clarifies the defini-
tion of “waters of the United States,” as used in the
Clean Water Act, 33 U.S.C. § 1251 et seq., “through
increased use of bright-line boundaries” to make “the
process of identifying waters protected under the
Clean Water Act easier to understand, more predict-
able and consistent with the law and peer reviewed

' See Murray Energy Corp. v. U.S. E.P.A., 2015 WL 5062506
(N.D. W.Va. Aug. 26, 2015) (holding jurisdiction lies in circuit
court); Stale of Georgia v. McCarthy, 2015 WL 5092668 at *2-3
(S.D. Ga. Aug. 27, 2015) (same); North Dakota v. U.S. E.PA.,
2016 WL 5060744 at *2 (D. N_D. Aug. 27, 2015) (holding juris-
diction lies in district court).

5a

science, while protecting the streams and wetlands
that form the foundation of our nation’s water re-
sources.” 80 Fed. Reg. at 37,055. Petitioners contend
that the definitional changes effect an expansion of
respondent Agencies’ regulatory jurisdiction and
dramatically alter the existing balance of federal-
state collaboration in restoring and maintaining the
integrity of the nation’s waters. Petitioners also con-
tend the new bright-line boundaries used to deter-
mine which tributaries and waters adjacent to navi-
gable waters have a “significant nexus” to waters
protected under the Act are not consistent with the
law as defined by the Supreme Court, and were
adopted by a process not in conformity with the
rulemaking requirements of the Administrative Pro-
cedures Act (“APA”). The Agencies maintain that the
requirements of the APA were met and that the Rule
is a proper exercise of their authority under the
Clean Water Act.

The Rule became effective on August 28, 2015.
On October 9, 2015, however, we issued a nationwide
stay of the Rule pending further proceedings in this
action. In re EPA and Dep’t of Def. Final Rule, 803
F.3d 804 (6th Cir. 2015). We found that petitioners
had demonstrated a substantial possibility of success
on the merits of their claims and that the balance of
harms militated in favor of preserving the status quo
pending judicial review.

Meanwhile, eight motions to dismiss have been
filed by numerous petitioners and intervenors. The
motions assert that judicial review is properly had in
the district courts, not here. They contend the in-
stant challenges to the Clean Water Rule do not
come within the judicial review provisions of the
Clean Water Act, 33 U.S.C. § 1369(b)(1).

6a

Section 1369(b)(1) identifies seven kinds of action
by the EPA Administrator that are reviewable direct-
ly in the circuit courts. Only two of the seven kinds
of action listed in § 1369(b)(1) are implicated here,
subsections (E) and (F). In its entirety, § 1369(b)(1)
provides as follows:

(1) Review of the Administrator’s action

(A) in promulgating any standard of perfor-
mance under section 1316 of this title,

(B) in making any determination pursuant to
section 1316(b)(1)(C) of this title,

(C) in promulgating any effluent standard,
prohibition, or pretreatment standard under
section 1317 of this title,

(D) in making any determination as to a State
permit program submitted under section
1342(b) of this title,

(E) in approving or promulgating any effluent
limitation or other limitation under section
1311, 1312, 1316, or 1345 of this title,

(F) in issuing or denying any permit under
section 1342 of this title, and

(G) in promulgating any individual control
strategy under section 1314()) of this title,

may be had by any interested person in the
Circuit Court of Appeals of the United States
for the Federal judicial district in which such
person resides or transacts business which is
directly affected by such action upon applica-
tion by such person.

7a

Any such application shall be made within 120
days from the date of such determination, ap-
proval, promulgation, issuance or denial, or af-
ter such date only if such application is based
solely on grounds which arose after such 120th
day.

33 U.S.C. § 1369(b)(1).

Movants contend the EPA’s and the Corps’ adop-
tion and promulgation of the Clean Water Rule is not
action of the Administrator “in issuing or promulgat-
ing any effluent limitation or other limitation” or “in
issuing or denying any permit” under § 1369(b)(1)(E)
or (F). They contend the Clean Water Rule is simply
a definitional rule and that neither the statutory
language nor the legislative history evidences con-
gressional intent to authorize direct review of such
action in the circuit courts.

IL. ANALYSIS
A. General Standards

The question of subject matter jurisdiction is a
question of law the court addresses de novo. Jowa
League of Cities v. U.S. E.P.A., 711 F.3d 844, 861
(8th Cir. 2013). That is, the Agencies’ interpretation
of the Clean Water Act is entitled to no deference in
this regard. Friends of the Everglades v. U.S. E.P.A.,
699 F.3d 1280, 1285 (11th Cir. 2012).

Federal courts are courts of limited jurisdiction
and have subject matter jurisdiction only as author-
ized by the Constitution and by Congress. Id. at
1289. Here, the court’s authority to conduct direct
review of the Agencies’ challenged action, must be
found, if at all, in the Clean Water Act, 33 U.S.C.
§ 1369(b)(1). Jd. at 1285 (recognizing availability of

8a

direct circuit court review only over those actions
specifically enumerated in § 1369(b)(1)). Not all ac-
tions taken under the Clean Water Act are directly
reviewable in the circuit courts. Nat’ Cotton Council
of America v. U.S. E.P.A., 553 F.3d 927, 933 (6th Cir.
2009). Where review is available under § 1369(b)(1),
“it is the exclusive means of challenging actions cov-
ered by the statute.” Decker v. Nw. Envtl. Def. Ctr.,
133 S.Ct. 1326, 1334 (2013). Matters not reviewable
under § 1369(b)(1) may be actionable in the district
courts by other means. See id. (recognizing availabil-
ity of private enforcement action under 33 U.S.C.
§ 1365); Narragansett Elec. Co. v. U.S. E.P.A., 407
F.3d 1, 8 (1st Cir. 2005) (recognizing availability of
judicial review in district court under the APA).

Whether subject matter jurisdiction lies in the
circuit courts is governed by the intent of Congress.
Fla. Power & Light Co. v. Lorion, 470 U.S. 729, 746
(1985). In determining the scope of circuit court ju-
risdiction Congress intended to prescribe under the
Clean Water Act, the analysis must begin with the
statutory language. Jd. at 735. Yet, even where
statutory language may seem unambiguous, “plain
meaning, like beauty, is sometimes in the eye of the
beholder.” Jd. at 737. The parties agree that subsec-
tions (E) and (F) are the only two provisions of
§ 1369(b)(1) that potentially apply.

B. Statutory Language
1. Subsection (E)—“Other Limitation”

Movants contend the Rule’s definition of “waters
of the United States” is not, under § 1369(b)(1)(E),
“an effluent limitation or other limitation” approved
or promulgated under 33 U.S.C. § 1311, 1312, 1316,
or 1345. “Effluent limitation” is defined as “any re-

9a

striction established by a State or the Administrator
on quantities, rates, and concentrations of chemical,
physical, biological, and other constituents which are
discharged from point sources into navigable waters,
the waters of the contiguous zone, or the ocean, in-
cluding schedules of compliance.” 33 U.S.C.
§ 1362(11).

The Agencies do not contend that the Clean Wa-
ter Rule is an action in approving or promulgating an
effluent limitation, but rather that it is an “other
limitation.” The Act does not define “other limita-
tion.” Inasmuch as “effluent limitation” is defined as
a “restriction” on discharges from point sources, the
Agencies contend “other limitation” must be under-
stood as a different kind of “restriction.” They con-
tend the Rule’s clarification of the scope of “waters of
the United States” protected under the Clean Water
Act constitutes an “other limitation” in two respects.
First, it has the effect of restricting the actions of
property owners who discharge pollutants from a
point source into covered waters. Second, it has the
effect of imposing limitations or restrictions on regu-
latory bodies charged with responsibility for issuing
permits under the National Pollutant Discharge
Elimination System (“NPDES”) to those who dis-
charge pollutants into covered waters.

On its face, the Agencies’ argument is not com-
pelling. After all, the Rule’s clarified definition is not
self-executing. By clarifying the definition, the
Agencies did not approve or promulgate any limita-
tion that imposes ipso facto any restriction or re-
quirement on point source operators or permit issu-
ers. Rather, they promulgated a definitional rule
that, operating in conjunction with other regulations,
will result in imposition of such limitations. Is such

8a

direct circuit court review only over those actions
specifically enumerated in § 1369(b)(1)). Not all ac-
tions taken under the Clean Water Act are directly
reviewable in the circuit courts. Nat'l Cotton Council
of America v. U.S. E.PA., 553 F.3d 927, 933 (6th Cir.
2009). Where review is available under § 1369(b)(1),
“it is the exclusive means of challenging actions cov-
ered by the statute.” Decker v. Nw. Envtl. Def. Ctr.,
133 S.Ct. 1326, 1334 (2013). Matters not reviewable
under § 1369(b)(1) may be actionable in the district
courts by other means. See id. (recognizing availabil-
ity of private enforcement action under 33 U.S.C.
§ 1365); Narragansett Elec. Co. v. U.S. E.PA., 407
F.3d 1, 8 (1st Cir. 2005) (recognizing availability of
judicial review in district court under the APA).

Whether subject matter jurisdiction lies in the
circuit courts is governed by the intent of Congress.
Fla. Power & Light Co. v. Lorion, 470 U.S. 729, 746
(1985). In determining the scope of circuit court ju-
risdiction Congress intended to prescribe under the
Clean Water Act, the analysis must begin with the
statutory language. Jd. at 735. Yet, even where
statutory language may seem unambiguous, “plain
meaning, like beauty, is sometimes in the eye of the
beholder.” Id. at 737. The parties agree that subsec-
tions (E) and (F) are the only two provisions of
§ 1369(b)(1) that potentially apply.

B. Statutory Language
1. Subsection (E)—“Other Limitation”

Movants contend the Rule’s definition of “waters
of the United States” is not, under § 1369(b)(1)(E),
“an effluent limitation or other limitation” approved
or promulgated under 33 U.S.C. § 1311, 1312, 1316,
or 1345. “Effluent limitation” is defined as “any re-

9a

striction established by a State or the Administrator
on quantities, rates, and concentrations of chemical,
physical, biological, and other constituents which are
discharged from point sources into navigable waters,
the waters of the contiguous zone, or the ocean, in-
cluding schedules of compliance.” 33 U.S.C.
§ 1362(11).

The Agencies do not contend that the Clean Wa-
ter Rule is an action in approving or promulgating an
effluent limitation, but rather that it is an “other
limitation.” The Act does not define “other limita-
tion.” Inasmuch as “effluent limitation” is defined as
a “restriction” on discharges from point sources, the
Agencies contend “other limitation” must be under-
stood as a different kind of “restriction.” They con-
tend the Rule’s clarification of the scope of “waters of
the United States” protected under the Clean Water
Act constitutes an “other limitation” in two respects.
First, it has the effect of restricting the actions of
property owners who discharge pollutants from a
point source into covered waters. Second, it has the
effect of imposing limitations or restrictions on regu-
latory bodies charged with responsibility for issuing
permits under the National Pollutant Discharge
Elimination System (“NPDES”) to those who dis-
charge pollutants into covered waters.

On its face, the Agencies’ argument is not com-
pelling. After all, the Rule’s clarified definition is not
self-executing. By clarifying the definition, the
Agencies did not approve or promulgate any limita-
tion that imposes ipso facto any restriction or re-
quirement on point source operators or permit issu-
ers. Rather, they promulgated a definitional rule
that, operating in conjunction with other regulations,
will result in imposition of such limitations. Is such

10a

an indirect consequence sufficient to bring the Rule
within the scope of § 1369(b)(1)(E)?

The Agencies say yes and cite several cases in
support. The seminal case supporting their con-
struction of subsection (E) is E.l. du Pont de
Nemours Co. v. Train, 480 U.S. 112, 136 (1977),
where the Supreme Court eschewed a strict, literal
reading. The Court characterized a construction that
would provide for direct circuit court review of indi-
vidual actions issuing or denying permits, but disal-
lowed such review of the “basic regulations governing
those individual actions,” as a “truly perverse situa-
tion.” Id. Hence, even though § 1369(b)(1) provided
for circuit court review only of limitations promul-
gated under certain enumerated sections, and the
challenged regulation was promulgated under a dif-
ferent section—which was, however, closely related
to one of the enumerated sections—the Court had
“no doubt that Congress intended review of the two
sets of regulations to be had in the same forum.” Jd.
at 136-37. The Court thus construed § 1369(b)(1)(E),
in light of Congress’s manifest intent, to encompass
review of more agency actions than a literal reading
of the provision would suggest.

EI. du Pont can be read in more ways than one.
As the Agencies see it, the Clean Water Rule is a
“basic regulation governing those individual actions”
taken by the EPA Administrator (e.g., promulgation
of limitations) that are subject to direct circuit court
review. Accordingly, giving § 1369(b){1) a practical
construction per E.I. du Pont, the Agencies argue
that Congress intended the lawfulness of the Clean
Water Rule to be subject to direct circuit court re-
view.

lla

Their position finds support in several decisions
of our sister circuits. In Nat. Res. Def. Council v.
U.S. E.P.A., 673 F.2d 400 (D.C. Cir. 1982) (J. Gins-
burg), a case closely analogous to ours, the D.C. Cir-
cuit addressed numerous consolidated challenges to
EPA regulations that had been filed in circuit courts
of appeals and district courts. The regulations did
not establish any numerical limitations, but pre-
scribed permitting procedures that constituted “a
limitation on point sources and permit issuers and a
restriction on the untrammeled discretion of the in-
dustry.” /d. at 405 (interna! quotation marks omit-
ted). Following EI. du Pont, the court held this “lim-
itation” was sufficient to bring the regulations within
the ambit of direct circuit court review under
§ 1369(b)(1)(E). Employing “a practical rather than a
cramped construction,” the court held that direct re-
view in the circuit court was appropriate, even
though the regulations did not impose technical re-
quirements but were “far more general and restied]
dominantly on policy choices.” Jd. In fact, the court
cited several reasons for concluding that such “broad,
policy-oriented rules” are actually more suitable for
direct circuit court review than “specific technology-
based rules.” Jd. at 405 n.15. The court noted that
E.I. du Pont “does not unequivocally dictate our re-
sult but [its] reasoning strongly supports our holding
that we have jurisdiction.” Jd. at 406.

In Virginia Elec. & Power Co. v. Costle, 566 F.2d
446 (4th Cir. 1977) (“VEPCO”), the Fourth Circuit
addressed consolidated petitions challenging EPA
regulations prescribing requirements for the loca-
tion, design, construction and capacity of cooling wa-
ter intake structures used to withdraw from, rather
than discharge into, covered waters. The challengers

12a

argued that such requirements could not be “other
limitations” under § 1369(b)(1)(E) until they were ac-
tually adopted in an individual permit proceeding.
Because the requirements were not self-executing,
the challengers argued they were only presumptively
applicable and did not actually impose any limitation
or restriction on point-source discharges. The court
held the argument was foreclosed by E.J. du Pont.
VEPCO, 566 F.2d at 449-50. The court held the re-
quirement that certain information be considered in
determining the best available technology for intake
structures was a sufficient restriction on the discre-
tion of point source operators and permit issuers to
constitute an “other limitation” under subsection (EF).
Id. Further, citing E.J. du Pont, the court noted the
regulations were so closely related to effluent limita-
tions, that “it would be anomalous to have their re-
view bifurcated between different courts.” Jd. at 450.
The court held that circuit court review was proper
under subsection (E), stating that “this result is con-
sistent with the jurisdictional scheme of the Act,
which in general leaves review of standards of na-
tionwide applicability to the courts of appeals, thus
furthering the aim of Congress to achieve nationally
uniform standards.” VEPCO, 566 F.2d at 451.

More recently, the Eighth Circuit followed suit.
In Iowa League of Cities v. U.S. E.P.A., 711 F.3d 844
(8th Cir. 2013), the court addressed two letters from
the EPA sent to a senator and alleged to have effec-
tively established new regulatory standards govern-
ing municipal water treatment processes. The court
first noted that “the Supreme Court has recognized a
preference for direct appellate review of agency ac-
tion pursuant to the APA.” /d. at 861 (citing Fla.
Power, 470 U.S. at 745). The court rejected the

13a

EPA’s contention that the subject letters, couched in
terms of what “should not be permitted” by regulated
entities, did not “promulgate” a binding limitation.
Noting that the EPA had characterized the letters as
expressing its position or policy, the court dismissed
the notion that the instruction was not binding as
“Orwellian Newspeak.” /d. at 865. The court did not
cite EJ. du Pont, but adopted the VEPCO formula-
tion of “limitation” and went on to hold that subsec-
tion (E) applies if “entities subject to the CWA’s per-
mit requirements face new restrictions on their dis-
cretion with respect to discharges or discharge-
related processes.” Id. at 866.

These decisions from the D.C., Fourth, and
Eighth Circuits demonstrate courts’ willingness to
view EJ. du Pont as license to construe Congress's
purposes in § 1369(b)(1) more generously than its
language would indicate.2 However, movants herein
read E.J. du Pont differently. They argue E./. du
Pont’s holding is narrower and should be limited to
its facts. In support they cite decisions from the
Eleventh and Ninth Circuits refusing to find circuit
court jurisdiction under subsection (E).

In both Friends of the Everglades v. U.S. E.P.A.,
699 F.3d 1280, 1287 (11th Cir. 2012), and Northwest
Environmental Advocates v. U.S. E.P.A., 537 F.3d

2 Most recently, the “functional approach” employed in these
cases was applied by two district courts in relation to the Clean
Water Rule in this litigation to find circuit court jurisdiction
under subsection (E). Murray Energy Corp. v. U.S. E.P.A., 2015
WL 5062506 (N.D. W.Va. Aug. 26, 2015); State of Georgia v.
McCarthy, 2015 WL 5092568 at *2—3 (S.D. Ga. Aug. 27, 2015).

l4a

1006, 1015—16 (9th Cir. 2008), the courts reached re-
sults different from those reached in the D.C.,
Fourth, and Eighth Circuits. However, the decisions
in all five circuits are readily reconcilable. In both
Friends of the Everglades and Northwest Environ-
mental, the courts acknowledged the above discussed
NRDC and VEPCO rulings, but found the regula-
tions before them materially distinguishable from
those deemed to come within the scope of
§ 1369(b)(1)(E). Far from restricting “untrammeled
discretion,” the regulations at issue in Friends of the
Everglades and Northwest Environmental actually
created exemptions from limitations. Both courts
concluded that an exemption from limitation simply
cannot be fairly characterized as a limitation. Nei-
ther court criticized the approach adopted in EJ. du
Pont and applied in NRDC and VEPCO. Nor did ei-
ther court reject the notion that an “other limitation”
can be made out by an indirect restriction on discre-
tion. Rather, Friends of the Everglades and North-
west Environmental held that no construction could
render an exemption from limitation what it plainly
is not: a “limitation” under subsection (E).3 The two
lines of authority are therefore not inconsistent.

3 These authorities were cited as persuasive in this litigation
by one district court. North Dakota v. U.S. E.P.A., 2015 WL
5060744 at *2 (D. N.D. Aug. 27, 2015). However, the North Da-
kota court ignored the fact that, unlike the regulations at issue
in those cases, the Clean Water Rule does not create an exemp-
tion. And despite noting the pertinence of the NRDC-VEPCO-
Towa League line of cases, the North Dakota court conspicuously
ignored their holdings.

15a

Here we acknowledge that the Rule is definition-
al only and does not directly impose any restriction
or limitation. Yet, neither does the Rule create an
exemption from limitation. By clarifying the defini-
tion of “waters of the United States,” the Rule unde-
niably has the indirect effect of altering permit issu-
ers authority to restrict point-source operators’ dis-
charges into covered waters. The alteration invaria-
bly results in expansion of regulatory authority in
some instances and imposition of additional re-
strictions on the activities of some property owners.
These restrictions, of course, are presumably the
reason for petitioners’ challenges to the Rule. Hence,
although the Rule is definitional in nature, it is un-
deniably, in the language of E.I. du Pont, a “basic
regulation governing other individual actions issuing
or denying permits.” 430 U.S. at 136. To rule that
Congress intended to provide direct circuit court re-
view of such individual actions but intended to ex-
clude from such review the definitional Rule on
which the process is based, would produce, per £./.
du Pont, “a truly perverse situation.” Jd. To avoid
just such an outcome, the E.I. du Pont Court rea-
soned that Congress must have intended that both
types of regulation would be subject to review in the
same forum, i.e., the circuit courts.4

‘* EJ. du Ponts analysis is also dispositive of movants’ argu-
ment that review under aubsection (E), by its terms, applies on-
ly to action by the EPA Administrator approving or promulgat-
ing a limitation “under section 1311, 1812, 1416, or 1346 of this
title.” Movants contend that all of these sections pertain to ef-
fluent limitations. Inasmuch as the Agencies do not even argue
that the Clean Water Rule represents an effluent limitation,

16a

E.I. du Pont is the last word from the Supreme
Court on § 1369(b)(1)(E). It is still good law. Our
sister courts in the D.C., Fourth, and Eighth Circuits
have all applied E.J. du Pont’s approach and have de-
fined the scope of direct circuit court review under
subsection (E) more broadly than a strict interpreta-
tion of its language would indicate. The two circuit-
level decisions, from the Ninth and Eleventh Cir-
cuits, that declined to find circuit court jurisdiction
under subsection (E) did so in relation to agency ac-
tion materially distinguishable from the Rule here at
issue. The movants’ position is thus devoid of sub-
stantial case law support. While their plain-
language arguments are not without facial appeal,
we are hardly at liberty to ignore the consistent body
of case law that has sprung from that language in
encounters with the real world. In response to con-
cern about producing a “perverse situation” seeming-
ly at odds with congressional purpose, movants have
no answer beyond their argument that Congress
must be held to say what it means and mean what it
says. Were we writing on a blank slate, the argu-
ment would be more persuasive, but we’re not. As an
“inferior court,” we are obliged to take our lead from

movants contend the Rule cannot be deemed to have been
promulgated under any of these sections.

Yet, the Rule purports to be adopted under authority, inter
alia, of section 311 (33 U.S.C. § 1311). 80 Fed. Reg. at 37,055.
And subsection (E) prescribes direct circuit court review of any
“other limitation,” in addition to any effluent limitation. It fol-
lows that the Rule, representing an “other limitation” as de-
fined in E.J. du Pont and its progeny, and adopted pursuant to
§ 1311, comes within the scope of circuit court review under

§ 1369(b)(1)(E).

17a

the Supreme Court. Having discerned no persuasive
grounds to depart from the rationale that controlled
in E.I. du Pont, I conclude that we, like our sister cir-
cuits, must follow its lead.

Viewing the Clean Water Rule through the lens
created in E.I. du Pont reveals a regulation whose
practical effect will be to indirectly produce various
limitations on point-source operators and permit is-
suing authorities. Accordingly, although the Rule
does not itself impose any limitation, its effect, in the
regulatory scheme established under the Clean Wa-
ter Act, is such as to render the Rule, per the teach-
ing of E.J. du Pont and its progeny, subject to direct
circuit court review under § 1369(b)(1)(E).

2. Subsection (F)}—“Issuing or Denying
Permit”

Evaluation of the second claimed basis for direct
circuit court review proceeds in like manner. Mo-
vants argue that § 1369(b)(1)(F) does not justify ju-
risdiction in the circuit court because the Clean Wa-
ter Rule is not an action of the EPA Administrator
“in issuing or denying a permit.” Yet, in relation to
subsection (F), too, the Supreme Court has opened
the door to constructions other than a strict literal
application. In Crown Simpson Pulp Co. v. Costle,
445 U.S. 193, 196-97 (1980), the Court reversed the
Ninth Circuit and held that an action of the Admin-
istrator “functionally similar” to denial of a permit is
encompassed within subsection (F). If the “precise
effect” of the action would be to deny a permit, the
Court reasoned, it would be irrational to conclude,
based on a strictly literal application of subsection
(F), that the action would be subject to review in dis-
trict court rather than circuit court. The Court rec-

18a

ognized that direct review in the circuit court “would
best comport with the congressional goal of ensuring
prompt resolution of challenges to EPA’s actions.”
Id. at 196. Addition of another level of judicial re-
view, the Court observed, “would likely cause delays
in resolving disputes under the Act.” Id. at 197. In
conclusion, the Court remarked: “Absent a far clearer
expression of congressional intent, we are unwilling
to read the Act as creating such a seemingly irra-
tional bifurcated review system.” Jd.

Here, similarly, the Agencies contend that the ef-
fect of the Clean Water Rule, operating in the extant
regulatory scheme, is to impact permitting require-
ments, thereby affecting the granting and denying of
permits. This is enough, the Agencies argue, to bring
the Clean Water Rule within the ambit of subsection
(F), because it too impacts permitting requirements.
In support they cite a Sixth Circuit case, Nat7 Cotton
Council v. U.S. E.P.A., 553 F.3d 927, 933 (6th Cir.
2009), cert. denied sub nom. Crop Life v. Baykeeper,
130 S.Ct. 1505 (2010), and Am. Farm Bureau Fed’n
v. Baykeeper, 130 S.Ct. 1505 (2010). In National Cot-
ton, this court held that subsection (F) authorizes di-
rect circuit court review not only of actions issuing or
denying particular permits, but also of regulations
governing the issuance of permits. The court relied
on authorities from the Ninth Circuit and D.C. Cir-
cuit stemming from E.J. du Pont and Crown Simp-
son. See Nat. Res. Def. Council, Inc. v. U.S. E.P.A.,
966 F.2d 1292, 1296—97 (9th Cir. 1992); Am. Mining
Cong. v. U.S. E.PA., 965 F.2d 759, 763 (9th Cir.
1992); Nat. Res. Def. Council, Inc. v. U.S. E.P_A., 656
F.2d 768, 775 (D.C. Cir. 1981). In fact, the National
Cotton court noted that this more expansive reading
of subsection (F) encompassed even regulations that

19a

exempted certain discharges from permitting re-
quirements. Natl Cotton, 553 F.3d at 933. That is,
under subsection (F), a regulation that imposes no
restriction or limitation is reviewable in circuit court,
so long as it affects permitting requirements.

Movants maintain that a mere impact on permit-
ting requirements is not enough to bring the Rule
within subsection (F). They contend the holding of
Crown Simpson’s expansion of the plain language of
the provision is really quite narrow and that Nation-
al Cotton’s reading of subsection (F) is overly broad
and even inconsistent with Crown Simpson. They
contend the “precise effect” of the Clean Water Rule
is not to deny any permit and that it is therefore not
“functionally similar.”

Movants attack National Cotton on several
fronts. First, they contend the decision is not enti-
tled to precedential weight because its determination
of jurisdiction was summary in nature and devoid of
substantive analysis. In support they cite Emswiler
v. CSX Transportation, Inc., 691 F.3d 782, 788-90
(6th Cir. 2012), for the proposition that “drive-by ju-
risdictional rulings” based on “less than meticulous”
reasoning should be accorded no precedential effect.
Emswiler is inapposite. The Emswiler court used
these characterizations in relation to an opinion’s
careless characterization of a party's failure to meet
a threshold exhaustion requirement as depriving the

5 National Cotton was followed in this litigation in Murray En-
ergy, 2015 WL 5062506 at *5—6, the court noting there was no
dispute that the Clean Water Rule will have an impact on per-
mitting requirements.

20a

court of subject matter jurisdiction. While the fail-
ure to exhaust impacted the plaintiffs ability to win
relief on the merits, the Emswiler court called it “less
than meticulous” to say the failure to exhaust de-
prived the court of subject matter jurisdiction. Jd. at
789. The National Cotton jurisdictional ruling was
not the product of carelessness. It is succinct be-
cause it efficiently follows the holdings of several
other rulings—one by the Supreme Court—whose
reasoning it implicitly incorporated by citing them.

Granted, the Eleventh Circuit expressly declined
to follow National Cotton in Friends of the Ever-
glades, 699 F.3d at 1288, rejecting the position that
Crown Simpson legitimized direct circuit court re-
view of any “regulations relating to permitting it-
self.” The court noted that, although the Sixth Cir-
cuit adopted that interpretation in National Cotton,
it did so in reliance on two Ninth Circuit cases that
had since been distinguished by the Ninth Circuit in
Northwest Environmental, 537 F.3d at 1016-18. In
Northwest Environmental, 537 F.3d at 1018, as in
Friends of the Everglades, 699 F.3d at 1288, the
court ruled that a regulation creating a permanent
exemption from the permitting process could not
have the effect of granting or denying a permit re-
viewable under § 1369(b)(1)(F) precisely because the
regulation excluded certain discharges from the per-
mitting process altogether.

Yet, even if it be conceded that National Cotton
said too much when it noted in dicta that the Ninth
Circuit had construed subsection (F) broadly enough
to include an exemption from regulation, the fact
remains that the action here under review is not an
exemption. Rather, both petitioners and the Agen-
cies operate on the understanding that the effect of

Z2la

the Clean Water Rule is uot solely to exclude waters
from protection, but to extend protection to some ad-
ditional waters. This extension indisputably ex-
pands regulatory authority and impacts the granting
and denying of permits in fundamental ways. The
later clarification of Ninth Circuit law noted in
Friends of the Everglades does not, therefore, in any
way undermine the authority of National Cotton as
applied to the Clean Water Rule.

Finally, movants contend National Cotton is
wrongly decided. They contend that Crown Simp-
son's expanded construction of subsection (F) was
narrow and circumscribed; whereas National Cot-
ton’s holding that subsection (F) authorizes circuit
court review of “regulations governing the issuance
of permits” is unduly broad. Perhaps. Yet, if we be-
lieved National Cotton was not distinguishable and
was wrongly decided, we would still not be free to re-
ject its holding. Generally, in a multi-circuit case
where a question of federal law is at issue, the trans-
feree court is obliged to follow its own interpretation
of the relevant law. See Murphy v. FDIC, 208 F.3d
959, 964-65 (11th Cir. 2000) (citing Jn re Korean Air-
lines Disaster, 829 F.2d 1171, 1175-76 (D.C. Cir.
1987), and observing that other circuits have uni-
formly agreed with the D.C. Circuit). Moreover, no
other court has held that National Cotton was
wrongly decided. National Cotton, as well as the
Ninth Circuit and D.C. Circuit authorities on which
it relied, are still good law. Movants have not identi-
fied any materially contrary authority.

Furthermore, National Cotton’s construction is
consistent with congressional purpose, which ap-
pears to have been the guiding light in both EI. du
Pont and Crown Simpson. In Florida Power, 470

22a

U.S. at 744—45, in relation to the Atomic Energy Act,
the Court recognized that “one crucial purpose” of
statutes providing for direct circuit court review of
agency action is judicial economy. Jd. at 744. The
Court noted that the district court’s superior fact-
finding capacity is typically unnecessary to judicial
review of agency action. On the other hand, provid-
ing for initial review in the district court has the
negative effect of “requiring duplication of the identi-
cal task in the district court and in the court of ap-
peals; both courts are to decide, on the basis of the
record the agency provides, whether the action pass-
es muster under the appropriate APA standard of
review.” Jd. The Court acknowledged that the intent
of Congress, not the Court’s concept of sound policy,
is ultimately determinative, but concluded:

Absent a firm indication that Congress
intended to locate initial APA review of
agency action in the district courts, we
will not presume that Congress intended
to depart from the sound policy of placing
initial APA review in the courts of ap-
peals.

Id. at 746. See also Tennessee v. Herrington, 806
F.2d 642, 650 (6th Cir. 1986) (following Florida Pow-
er and noting that where Congress has provided for
direct circuit court review but its intent is ambiguous
in a specific case, policy considerations are relevant);
Natural Resources Def. Council v. Abraham, 355
F.3d 179, 193 (2d Cir. 2004) (citing cases from Sec-
ond, Seventh, Tenth and D.C. Circuits for the propo-
sition that “when there is a specific statutory grant
of jurisdiction to the court of appeals, it should be
construed in favor of review by the court of ap-

peals.”).

23a

National Cotton’s broader reading of subsection
(F) is thus consistent with the preference in favor of
circuit court review recognized in Florida Power and
implicitly at work in both E.I. du Pont, see 430 US.
at 128 (characterizing it as “almost inconceivable
that Congress would have required duplicate review
in the first instance by different courts”), and Crown
Simpson, see 445 U.S. at 196-97 (noting unwilling-
ness to conclude Congress intended to cause delays
that would result from duplicative review process).

In Florida Power, the Court overruled Justice
Stevens’ objection that proper deference to Congress
required enforcement of “the plain and simple con-
struction of the statutory language.” Jd. at 750. Jus-
tice Stevens’ plain-language position, like that of
movants in this case, is not devoid of logic. Yet, as
Justice Stevens protested, the Court rejected it as a
matter of mere “semantic quibbles.” Id. We do not
view movants’ plain-language arguments as seman-
tic quibbles, but, in my view, they have clearly failed
to identify any substantial reason to conclude the
preference favoring direct circuit court review—-
created by Congress in § 1369(b)(1) and honored by
the Supreme Court—does not, in this case, ultimate-
ly serve all parties’ interests in efficiency, judicial
economy, clarity, uniformity and finality.

Florida Power, \ike E.l. du Pont and Crown
Simpson, demonstrates a strong preference for con-
struing Congress’s provision for direct circuit court
review of agency action by a practical, functional ap-
proach rather than a technical approach. A holding
that we have jurisdiction to hear the instant peti-
tions for review of the Clean Water Rule is consistent
with this understanding. On the other hand, a con-
trary ruling, though facially consonant with the plain

24a

language of § 1369(b)(1), finds practically no solid
support in the case law. Accordingly, I conclude that
we have jurisdiction under subsection (F) as well.

C. Miscellaneous Objections

Movants present arguments based on other stat-
utory provisions, items of legislative history and can-
ons of construction. The arguments are not persua-
sive. That the Clean Water Rule was promulgated
jointly by the EPA Administrator and the Secretary
of the Army does not defeat the fact that it repre-
sents action, in substantial part, of the Administra-
tor. The items of legislative history identified by the
parties and said to be probative of congressional in-
tent are sparse and frankly shed little light on the
specific jurisdictional questions before the court. See
EI. du Pont, 430 U.S. at 133 (dismissing arguments
based on other provisions of the statute and legisla-
tive history as inconclusive and not deserving of de-
tailed discussion). Similarly, the various canons of
construction alluded to by the parties are inconclu-
sive and carry little weight in comparison with the
dispositive considerations, as defined in the foregoing
discussion of the guiding case law.

Movants also raise what they characterize as
“due process concerns.” They contend that if circuit
court jurisdiction is exercised under § 1369(b)(1),
then any other challenges to the Clean Water Rule
not made within 120 days after its promulgation are
foreclosed unless based on grounds which arose after
the 120th day, per § 1369(b)(2). If subsequent as-
applied challenges are thus deemed precluded, then
unwary point-source operators and landowners un-
certain about the scope of the Clean Water Act’s reg-
ulatory reach may be subject to enforcement actions

25a

and penalties without fair notice of the conduct pro-
hibited. In Longview Fibre Co. v. Rasmussen, 980
F.2d 1307, 1313 (9th Cir. 1992), the Ninth Circuit re-
ferred to this preclusive effect as a “peculiar sting.”

The concern is speculative and overblown in this
case. If the court exercises jurisdiction over petition-
ers’ instant challenges to the validity of the Rule in
this nationwide multi-circuit case and upholds the
Rule, then that determination should have preclu-
sive effect. See Narragansett Elec. Co. v. U.S. E.P.A.,
407 F.3d 1, 5 (1st Cir. 2005) (noting that “the short
time frame in § 1369(b) clearly reflects some effort to
protect the EPA’s interests in finality in certain mat-
ters, particularly certain rulemakings with substan-
tial significance and scope.”). On the other hand,
this court’s exercise of jurisdiction and ruling on a
challenge to the validity of the Rule would not pre-
clude challenge to subsequent application of the Rule
in a particular permitting requirement or enforce-
ment action. See Decker v. Nw. Envtl. Def. Ctr., 133
S.Ct. 1326, 1335 (2013) (noting that whereas a chal-
lenge to the validity of regulations would be subject
to the exclusive jurisdictional bar of § 1369(b)(2), an
enforcement action would not be). To the extent our
eventual ruling on the validity of the Rule might
conceivably be asserted in overbroad fashion as bar-
ring a defense against application of the Rule in an
enforcement action, the asserted bar would be sub-
ject to testing as excessive and unfairly prejudicial in
that action. See Nat. Res. Def. Council v. U.S.
E.P_A., 673 F.3d 400, 407 (D.C. Cir. 1982) (rejecting
the same “due process” argument and suggesting
that overbroad application of the § 1369(b)(2) bar
could be challenged, when ripe, as unconstitutional).

26a

We therefore reject movants’ “due process concerns”
as premature and unfounded.

III. CONCLUSION

Both sides have presented worthy arguments in
support of their respective positions on jurisdiction.
Since enactment of the Clean Water Act in 1972, the
jurisdictional provisions of § 1369(b)(1)(E) and (F)
have been subjected to judicial scrutiny in relation to
various regulatory actions and have been consistent-
ly construed not in a strict literal sense, but in a
manner designed to further Congress’s evident pur-
poses. Pursuant to the uniform trend of the instruc-
tive case law, the scope of direct circuit court review
has gradually expanded. In response, Congress has
not moved to amend the provision or otherwise taken
“corrective” action. As explained above, the instant
petitions for review of the Clean Water Rule come
within the scope of subsections (E) and (F), as they
have come to be defined in the governing case law.
Movants have failed to identify any particular cir-
cumstances or practical considerations that would
justify holding that adjudication of the instant peti-
tions for judicial review in the various district courts
would better serve Congress's purposes. Instead,
recognition of our authority and our duty to directly
review the Clean Water Rule in this multi-circuit
case is in all respects consonant with the governing
case law and in furtherance of Congress's purposes.
Conversely, to rule that we lack jurisdiction would be
to contravene prevailing case law and frustrate con-
gressional purposes without substantial justification.

We hold that jurisdiction is properly laid in this
court. All pending motions to dismiss are DENIED.

27a

CONCURRING IN THE JUDGMENT

GRIFFIN, Circuit Judge, concurring in the judg-
ment, only.

[ concur in the judgment holding that we possess
subject-matter jurisdiction in this case; thus, [ join in
denying petitioners’ motions to dismiss. However, [
do so only because I am required to follow our
precedentially-binding decision, National Cotton
Council of America v. U.S. E.P.A., 553 F.3d 927 (6th
Cir. 2009). Were it not for National Cotton, I would
grant the motions to dismiss.

I.

Congress establishes the jurisdiction of the
courts of appeals and other inferior courts. See, e.g.,
Kontrick v. Ryan, 540 U.S. 448, 452 (2004). In de-
termining whether the Clean Water Act, 33 U.S.C.
§ 1251 et seq., creates jurisdiction in our court over a
case or controversy, we must examine and apply the
terms of the statute enacted by Congress. As with
all matters of statutory construction, we should ap-
ply a textualist, not a “functional” or “formalistic,”
approach.!

‘ With a heavy heart, | acknowledge the sudden passing of Jus-
tice Antonin Scalia. Justice Scalia was the founder and cham-
pion of the modern textualist mode of constitutional and atatu-
tory construction. His essay, A MATTER OF INTERPRETATION:
FEDERAL COURTS AND THE LAW (1997), and other writings and
opinions profoundly influenced a generation of attorneys, legal

28a

In this regard, “[i]Jt is elementary that the mean-
ing of a statute must, in the first instance, be sought
in the language in which the act is framed, and if
that is plain, and if the law is within the constitu-
tional authority of the lawmaking body which passed
it, the sole function of the courts is to enforce it ac-
cording to its terms.” Caminetti

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385016_0700%3A02. Public record. Not legal advice.
