Puget Soundkeeper Alliance v. APM Terminals Tacoma LLC
Filing
252
ORDER granting 182 Motion for Leave to File Amici Curiae Brief and re-noting 176 MOTION for Partial Summary Judgment, 196 MOTION for Partial Summary Judgment, 210 CROSS-MOTION AND RESPONSE re 196 MOTION for Partial Summary Judgment and 232 MOTION TO DISMISS FOR FAILURE TO STATE A CLAIM re Amended Cross Claim 221 . Noting Date = 6/7/2019. Signed by Judge Benjamin H. Settle.
1
2
3
4
5
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT TACOMA
6
7
8
PUGET SOUNDKEEPER ALLIANCE,
Plaintiff,
9
10
v.
APM TERMINALS TACOMA, LLC, et
al.,
11
Defendants.
CASE NO. C17-5016 BHS
ORDER GRANTING AMICUS
PARTIES’ MOTION FOR LEAVE
TO FILE A BRIEF, RENOTING
MOTIONS FOR SUMMARY
JUDGMENT, AND REQUESTING
SUPPLEMENTAL BRIEFING
12
13
This matter comes before the Court on Defendant Port of Tacoma’s (“Port”)
14
motion for partial summary judgment, Dkt. 176, Amicus Parties Washington Public Ports
15
Association and Washington Maritime Federation’s (“Amici”) motion for leave to file
16
amici curiae brief, Dkt. 182, Plaintiff Puget Soundkeeper Alliance’s (“Soundkeeper”)
17
motion for partial summary judgment, Dkt. 196, the Port’s cross-motion for summary
18
judgment, Dkt. 210, and Cross-Defendant APM Terminals Tacoma, LLC’s (“APMT”)
19
motion to dismiss amended crossclaim, Dkt. 232. The Court has considered the
20
pleadings filed in support of and in opposition to the motion and the remainder of the file
21
and hereby rules as follows:
22
ORDER - 1
1
I.
PROCEDURAL HISTORY
On June 13, 2018, Soundkeeper filed a third amended complaint bringing a citizen
2
3
suit under Section 505 of the Clean Water Act (“CWA”) as amended, 33 U.S.C. § 1365,
4
against Defendants APMT, the Port, SSA Marine, Inc., and SSA Terminals, LLCs. Dkt.
5
109.
6
On November 15, 2018, the Port filed a motion for summary judgment requesting
7
that the Court dismiss Soundkeeper’s “claims arising from stormwater discharges to the
8
Wharf.” Dkt. 176 at 18.
9
10
11
12
13
14
15
On November 30, 2018, Amici filed a motion for leave to file a brief in support of
the Port’s motion. Dkt. 182.
On December 3, 2018, Soundkeeper responded to the Port’s motion for summary
judgment. Dkt. 185. On December 7, 2018, the Port replied. Dkt. 189.
On December 17, 2018, Soundkeeper responded to Amici’s motion. Dkt. 192. On
December 21, 2018, Amici replied. Dkt. 194.
On January 10, 2019, Soundkeeper filed a motion for summary judgment. Dkt.
16
196. On January 28, 2019, the Port responded and filed a cross-motion for summary
17
judgment. Dkts. 209, 210. On February 1, 2019, Soundkeeper replied. Dkt. 218. On
18
February 19, 2019, Soundkeeper responded to the cross-motion. Dkt. 229. On February
19
22, 2019, the Port replied. Dkt. 231.
20
On February 22, 2019, APMT filed a motion to dismiss the Port’s crossclaim.
21
Dkt. 232. On March 18, 2019, the Port responded. Dkt. 238. On March 22, 2019,
22
APMT replied. Dkt. 241.
ORDER - 2
1
II. FACTUAL BACKGROUND
At issue in this case are industrial stormwater discharges at a large marine cargo
2
3
terminal (“Terminal”) used for ship unloading and cargo distribution. The Court will
4
address the stormwater permitting process in general and then the facts of this case.
5
A.
The Federal Statutes
6
The CWA is intended to “restore and maintain the chemical, physical, and
7
biological integrity of the Nation’s waters.” 33 U.S.C. § 1251(a). To that end, the CWA
8
makes it unlawful to discharge any pollutant from a point source to navigable waters
9
without a permit. Id. §§ 1311(a), 1362(12). The National Pollutant Discharge
10
Elimination System (“NPDES”) program is “[a] central provision of the Act” requiring
11
that “individuals, corporations, and governments secure [NPDES] permits before
12
discharging pollution . . . .” Decker v. Nw. Envtl. Def. Ctr., 568 U.S. 597, 602 (2013).
13
To achieve these goals, the CWA “anticipates a partnership between the States and
14
the Federal Government.” Arkansas v. Oklahoma, 503 U.S. 91, 101 (1992); Aminoil U.
15
S. A., Inc. v. Cal. State Water Res. Control Bd., 674 F.2d 1227, 1229–30 (9th Cir. 1982)
16
(the CWA created a “scheme of cooperative federalism” and “a ‘delicate partnership’
17
between state and federal agencies” (citation omitted)). Under this model of cooperative
18
federalism, the Environmental Protection Agency (“EPA”) sets requirements for CWA
19
programs, and then delegates management of those programs to the states. Aminoil, 674
20
F.2d at 1229–30. Delegated states may then issue NPDES permits. 33 U.S.C. § 1342(b).
21
Subject to federal approval, states can impose “requirements [that] are more stringent”
22
than required by EPA. 40 C.F.R. § 123.1(i)(1). However, if a “State program has greater
ORDER - 3
1
scope . . . than required by Federal law the additional coverage is not part of the Federally
2
approved program.” Id. § 123.1(i)(2). “For example, if a State requires permits for
3
discharges into publicly owned treatment works, these permits are not NPDES permits.”
4
Id.
5
As originally enacted, the CWA regulated virtually all discharges, including all
6
stormwater discharges. Decker, 568 U.S. at 602. For stormwater, however, EPA quickly
7
found it impracticable to regulate the “countless owners and operators of point sources
8
throughout the country.” Id. As one court observed, EPA was facing “potentially
9
millions of NPDES permits,” because “[p]ractically speaking, rain water will run
10
downhill, and not even a law passed by the Congress of the United States can stop that.”
11
Hughey v. JMS Dev. Corp., 78 F.3d 1523, 1530 (11th Cir. 1996). Congress, in response
12
to this problem (and EPA’s refusal to address millions of stormwater discharges),
13
amended the CWA in 1987 to “exempt from the NPDES permitting scheme most
14
‘discharges composed entirely of stormwater.’” Decker, 568 U.S. at 603 (quoting 33
15
U.S.C. § 1342(p)(1)). Instead, Congress decided that only certain stormwater discharges
16
require a permit, including (as relevant here), discharges “associated with industrial
17
activity.” 33 U.S.C. § 1342(p)(2)(B).
18
Congress did not define “associated with industrial activity” and entrusted EPA to
19
do so. Decker, 568 U.S. at 604; 33 U.S.C. § 1342(p)(4) (instructing EPA to issue
20
regulations governing industrial stormwater discharges). EPA issued regulations that
21
identified industrial activities by standard industrial classifications. Relevant here, EPA
22
included transportation facilities that have “vehicle maintenance shops, equipment
ORDER - 4
1
cleaning operations, or airport deicing operations.” 40 C.F.R. § 122.26(b)(14)(viii).
2
EPA’s regulations explain that “[o]nly those portions of the facility that are either
3
involved in vehicle maintenance (including vehicle rehabilitation, mechanical repairs,
4
painting, fueling, and lubrication), equipment cleaning operations, [or] airport deicing
5
operations . . . are associated with industrial activity.” Id.
6
Congress also included a second phase of stormwater regulation and gave EPA the
7
discretion to increase the scope of stormwater discharges that are regulated under the
8
CWA. 33 U.S.C. § 1342(p)(5)–(6). EPA was first required to study potential stormwater
9
sources in consultation with the states. Id. § 1342(p)(5). Congress then authorized EPA
10
(in consultation with the states) to use the results of that study to issue regulations
11
governing any additional stormwater sources that should be regulated under the CWA.
12
Id. EPA completed that process in 1999, issuing the “Phase II” rule, “mandating that
13
discharges from small municipal separate storm sewer systems and from construction
14
sites between one and five acres in size be subject to the permitting requirements of the
15
[NPDES]” and “preserv[ing] authority to regulate other harmful stormwater discharges in
16
the future.” Envtl. Def. Ctr., Inc. v. U.S. EPA, 344 F.3d 832, 840 (9th Cir. 2003).
17
EPA’s Phase II regulations explain that EPA may add, on a case-by-case basis,
18
other stormwater discharges (or categories of discharges) in specific “geographic areas”
19
based on a determination that the discharge “contributes to a violation of a water quality
20
standard or is a significant contributor of pollutants to waters of the United States.” 40
21
C.F.R. § 122.26(a)(9)(i)(D). In its description of the program, EPA explains that state
22
regulation (with EPA approval) of this “reserved category” of discharges would be
ORDER - 5
1
considered to be within the “scope” of the federally approved program. 64 Fed. Reg.
2
68,722, 68,781 (Dec. 8, 1999). Under this statutory scheme, Amici assert that, “[a]s of
3
this date, EPA has not extended the CWA to include other stormwater discharges on
4
docks and wharfs.” Dkt. 182-4 at 11.
5
B.
6
Delegation to Washington
In 1974, EPA authorized Ecology to administer the NPDES program in
7
Washington. See 39 Fed. Reg. 26,061 (July 16, 1974); RCW 90.48.260. Under state law,
8
Ecology also administers the State Water Pollution Control Act (RCW Chapter 90.48)
9
which makes it illegal for “any person” to discharge pollutants into waters of the state
10
without a permit. RCW 90.48.080, 90.48.160. For industrial stormwater, Ecology
11
decided to enforce both state and federal requirements using a general permit that covers
12
a broad range of activities. See WAC 173-226-010 (regulations establishing “state
13
general permit program” and explaining that “[p]ermits issued under this chapter are
14
designed to satisfy the requirements for discharge permits under [the CWA] . . . and the
15
state law governing water pollution control (chapter 90.48 RCW).”).
16
Ecology’s Industrial Stormwater General Permit (“ISGP”) reflects this dual state
17
and federal function. As the ISGP states, it is both a “National Pollution Discharge
18
Elimination System (NPDES) and State Waste Discharge General Permit” that was
19
issued “[i]n compliance with the provisions of The State of Washington Water Pollution
20
Control Law, Chapter 90.48 Revised Code of Washington and The Federal Water
21
Pollution Control Act (The Clean Water Act) Title 33 United States Code, Section 1251
22
et seq.” Dkt. 51-1 at 2.
ORDER - 6
1
When Ecology re-issued the ISGP in 2009, it modified the ISGP section
2
describing which transportation facilities must apply for coverage. In determining the
3
“activities” requiring permit regulations, Ecology copied the regulation at 40 C.F.R. §
4
122.26(b)(14)(viii) requiring a permit for “vehicle maintenance shops, equipment
5
cleaning operations, or airport deicing operations.” But in so doing, Ecology did not
6
include the part of EPA’s regulation clarifying that “[o]nly those portions of the facility
7
that are either involved in vehicle maintenance (including vehicle rehabilitation,
8
mechanical repairs, painting, fueling, and lubrication), equipment cleaning operations,
9
[or] airport deicing operations . . . are associated with industrial activity.” Id.
10
This omission went largely unnoticed by the ports until Ecology began notifying
11
ports (and tenants) that they needed to expand permit compliance beyond the footprint of
12
vehicle maintenance shops or equipment cleaning operations to include other (undefined)
13
areas of supposed industrial activity. Dkt. 182-2 at 9–10 (March 10, 2011 letter from
14
Ecology’s Water Quality Program Manager, Kelly Susewind, to the Washington Public
15
Ports Association, the Port of Olympia, the Port of Vancouver, and the Port of
16
Longview). In June of 2010, Ecology permit managers verbally told two port managers
17
that the presence of a vehicle maintenance shop anywhere on port property would trigger
18
ISGP coverage on all port property. Id. at 5. The ports objected to this expansive reading
19
because the “implications are extreme.” Id. The ports argued that it would require
20
“implementing best management practices, including stormwater treatment, on hundreds
21
or thousands of acres of property (versus a few areas where maintenance typically
22
occurs)” and “has major ramifications on a port’s ability to comply.” Id.
ORDER - 7
1
After a series of meetings, Ecology responded to the ports in a letter dated March
2
10, 2011. Ecology affirmed its intent that “[o]nce a facility has permit coverage, the
3
Permit’s sampling, inspection, and stormwater management practices are required in all
4
areas of industrial activity – rather than only those areas where vehicle maintenance,
5
equipment cleaning, and deicing occur.” Id. Ecology instructed the ports that they
6
needed to take the necessary steps to implement the permit requirements on all areas of
7
industrial activity “as soon as possible,” and that Ecology would use its “enforcement
8
discretion” with respect to the areas outside vehicle maintenance areas to allow the ports
9
time to comply. Id. Ecology’s letter did not indicate whether undefined “areas of
10
industrial activity” included docks, wharfs or associated stormwater where no industrial
11
activity (as defined by EPA) occurs.
12
C.
13
The Facility
The Port owns the 137-acre Terminal at issue in this matter. While the majority of
14
the Terminal is not at issue in this matter, the parties dispute a 12.6-acre section
15
commonly referred to as the Wharf. Here, five enormous ship-to-shore cranes load and
16
unload large shipping containers from docked vessels. See Dkt. 176 at 2–3.
17
In March 1983, the Port leased the Terminal to APMT. As part of its operation of
18
the Terminal, APMT applied for and received an ISGP. Dkt. 51-1. ISGP Condition 1,
19
Table 1, specifies that water transportation facilities (SIC Code 44xx) that “have vehicle
20
maintenance activity,” “equipment cleaning operations” or “airport deicing operations”
21
require coverage for their discharges. Id. at 10.
22
ORDER - 8
1
On July 24, 2017, APMT notified the Port that it was terminating its lease
2
agreement. On August 24, 2017, the Port applied for coverage under the ISGP. On
3
October 2, 2017, the Washington Department of Ecology (“Ecology”) terminated
4
APMT’s coverage under the ISGP and granted the Port coverage under a new permit.
5
Dkt. 82-3. Also on that date, SSA Marine, Inc., and SSA Terminals, LLC began its lease
6
with the Port for the Terminal.
7
On October 23, 2017, the Port signed Ecology Agreed Order #15434 (the “Agreed
8
Order”). Dkt. 82-4. The Agreed Order requires the Port, subject to Ecology review, to
9
design, construct, and have operational a stormwater treatment system. Id. at § IV. The
10
Port has prepared, and Ecology approved, an Engineering Report for a stormwater-
11
treatment system for the Terminal. Dkt. 82-6. Construction of the system is underway,
12
and all areas of the Terminal other than the Wharf will be under treatment by February
13
22, 2019. Dkt. 178 at 2, ¶ 5.
14
15
16
III. DISCUSSION
A.
Amici Brief
“Federal district courts may consider amicus briefs from non-parties concerning
17
legal issues that have potential ramifications beyond the parties directly involved or if the
18
amicus has unique information or perspective that can help the court beyond the help that
19
the lawyers for the parties are able to provide.” Skokomish Indian Tribe v. Goldmark,
20
C13-5071JLR, 2013 WL 5720053, at *1 (W.D. Wash. Oct. 21, 2013) (internal quotation
21
and citations omitted). The Court has “broad discretion” to appoint amicus curiae.
22
ORDER - 9
1
Hoptowit v. Ray, 682 F.2d 1237, 1260 (9th Cir. 1982), abrogated on other grounds by
2
Sandin v. Conner, 515 U.S. 472 (1995).
3
In this case, the Court finds that Amici’s brief is helpful, that the legal issues have
4
potential ramifications beyond the scope of this litigation, and that the brief is not
5
duplicative of the Port’s brief. To the extent that Soundkeeper opposes the acceptance of
6
Amici’s brief, it simply reiterates its arguments as to the merits and unnecessarily
7
chastises Amici that they should devote their resources to cleaning up their polluted
8
facilities instead of involving themselves in this litigation. Dkt. 192. Neither of these
9
arguments is relevant to the issue of whether to accept the brief. Therefore, the Court
10
grants Amici’s motion and will consider the brief.
11
B.
Summary Judgment
The Port moves for partial summary judgment arguing that stormwater discharges
12
13
from the Wharf “are not ‘discharges associated with industrial activities’ pursuant to
14
EPA’s regulations (40 C.F.R. § 122.26(b)(14)(viii)) and are therefore not subject to the
15
federal NPDES program or citizen suit enforcement of the NPDES program.” Dkt. 176.
16
Soundkeeper counters that the Port is barred from collaterally attacking the permit and
17
that the Ninth Circuit has rejected the Port’s “beyond the scope” argument. Dkt. 185 at
18
8–13.
19
1.
Standard
20
Summary judgment is proper only if the pleadings, the discovery and disclosure
21
materials on file, and any affidavits show that there is no genuine issue as to any material
22
fact and that the movant is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(c).
ORDER - 10
1
The moving party is entitled to judgment as a matter of law when the nonmoving party
2
fails to make a sufficient showing on an essential element of a claim in the case on which
3
the nonmoving party has the burden of proof. Celotex Corp. v. Catrett, 477 U.S. 317,
4
323 (1986). There is no genuine issue of fact for trial where the record, taken as a whole,
5
could not lead a rational trier of fact to find for the nonmoving party. Matsushita Elec.
6
Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586 (1986) (nonmoving party must
7
present specific, significant probative evidence, not simply “some metaphysical doubt”).
8
See also Fed. R. Civ. P. 56(e). Conversely, a genuine dispute over a material fact exists
9
if there is sufficient evidence supporting the claimed factual dispute, requiring a judge or
10
jury to resolve the differing versions of the truth. Anderson v. Liberty Lobby, Inc., 477
11
U.S. 242, 253 (1986); T.W. Elec. Serv., Inc. v. Pac. Elec. Contractors Ass’n, 809 F.2d
12
626, 630 (9th Cir. 1987).
13
The determination of the existence of a material fact is often a close question. The
14
Court must consider the substantive evidentiary burden that the nonmoving party must
15
meet at trial—e.g., a preponderance of the evidence in most civil cases. Anderson, 477
16
U.S. at 254; T.W. Elec. Serv., Inc., 809 F.2d at 630. The Court must resolve any factual
17
issues of controversy in favor of the nonmoving party only when the facts specifically
18
attested by that party contradict facts specifically attested by the moving party. The
19
nonmoving party may not merely state that it will discredit the moving party’s evidence
20
at trial, in the hopes that evidence can be developed at trial to support the claim. T.W.
21
Elec. Serv., Inc., 809 F.2d at 630 (relying on Anderson, 477 U.S. at 255). Conclusory,
22
ORDER - 11
1
nonspecific statements in affidavits are not sufficient, and missing facts will not be
2
presumed. Lujan v. Nat’l Wildlife Fed’n, 497 U.S. 871, 888–89 (1990).
3
2.
4
The parties dispute Soundkeeper’s ability to enforce Ecology’s ISGP under the
Collateral Attack and Scope
5
citizen suit provision of the CWA. The Port and Amici present persuasive arguments that
6
if Ecology expands the ISGP to cover locations beyond what the CWA covers, then that
7
is a matter of state law not subject to enforcement through the CWA. Dkts. 176, 184-2,
8
189. Soundkeeper counters that the Port is improperly mounting a collateral attack on the
9
permit and that the Ninth Circuit has rejected the Port’s argument regarding selective
10
enforcement of permit conditions. Dkt. 185. Regarding the former, the Port fails to
11
address this argument in its reply. See Dkt. 189. Thus, the Court is left with a one-sided
12
argument that seems viable. The problem, however, is that neither party is able to
13
establish with certainty whether the wharf area of the Terminal is covered by the permit.
14
Thus, the threshold issue is interpretation of the relevant permit.
15
In interpreting the permit, the Court employs the “interpretation of a contract or
16
other legal document.” Nw. Envtl. Advocates v. City of Portland, 56 F.3d 979, 982 (9th
17
Cir. 1994). “A written contract must be read as a whole and every part interpreted with
18
reference to the whole.” Shakey’s Inc. v. Covalt, 704 F.2d 426, 434 (9th Cir. 1983).
19
“Preference must be given to reasonable interpretations as opposed to those that are
20
unreasonable, or that would make the contract illusory.” Id. “The fact that the parties
21
dispute a contract’s meaning does not establish that the contract is ambiguous.” Int’l
22
Union of Bricklayers & Allied Craftsman Local No. 20 v. Martin Jaska, Inc., 752 F.2d
ORDER - 12
1
1401, 1406 (9th Cir. 1985). A contract is ambiguous if reasonable people could find its
2
terms susceptible to more than one interpretation. Castaneda v. Dura–Vent Corp., 648
3
F.2d 612, 619 (9th Cir. 1981).
4
While the parties provide voluminous briefing on the interpretation of various
5
statutes, the party that drafted the NPDES permit, and is in the best place to offer a
6
reasonable interpretation of the permit, has neither appeared nor filed an amicus brief in
7
this case. It is undisputed that Ecology wrote the permit and has power to enforce
8
provisions of the permit. Yet, there is no clear or direct input from Ecology on the
9
present issue. Soundkeeper cites Ecology’s ISGP Frequently Asked Questions (“FAQ”)
10
for the proposition that all areas of the Port are subject to stormwater management. Dkt.
11
185 at 6 (citing 185-1 at 5–6). The Court finds that the liabilities in this matter as well as
12
the far-reaching impact of a ruling on this issue counsel against basing an ultimate legal
13
conclusion on an FAQ. At most, the Court finds that Soundkeeper has provided evidence
14
in support of a reasonable interpretation. However, when the interpretation of a permit is
15
within the sound discretion of a government agency, it is wise to seek an answer from
16
that agency. See, e.g., Balvage v. Ryderwood Improvement & Serv. Ass’n, Inc., 642 F.3d
17
765, 775 (9th Cir. 2011) (vacating district court’s grant of summary judgment based on
18
an invited amicus appellate brief from the relevant agency). Therefore, the Court intends
19
to invite Ecology to file an amicus brief but will first allow the parties notice and an
20
opportunity to be heard. The pertinent questions would be as follows:
21
1) Does the Port’s NPDES permit require stormwater management on the wharf
22
section of the terminal?
ORDER - 13
1
2) If so, is such a requirement included under the CWA or Ecology’s separate
2
3
state law authority?
3) Is the Port precluded from challenging the permit condition in a state
4
admirative or judicial proceeding once Ecology provides a definitive answer as
5
to the scope of the permit?
6
7
IV. ORDER
Therefore, it is hereby ORDERED that (1) Amici’s motion for leave to file amici
8
curiae brief, Dkt. 182, is GRANTED, (2) the Clerk shall renote the pending dispositive
9
motions, Dkts. 176, 196, 210, 232, for consideration on the Court’s June 7, 2019,
10
calendar, and (3) any party or Amici may file a supplemental brief no longer than twelve
11
pages no later than June 7, 2019 regarding the Court’s plan to seek an amicus curie brief
12
from Ecology and the questions set forth above.
13
Dated this 23rd day of May, 2019.
A
14
15
BENJAMIN H. SETTLE
United States District Judge
16
17
18
19
20
21
22
ORDER - 14
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?