d. kenyon (“ken”) williams, jr. hall estill law firm, tulsa, oklahoma presented at: oml/omup...

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EPA’s Proposed Rule on Waters of the United States D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

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Page 1: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

EPA’s Proposed Rule onWaters of the United States

D. Kenyon (“Ken”) Williams, Jr.Hall Estill Law Firm, Tulsa, Oklahoma

Presented at:OML/OMUP Water & Environment Summit

February 20, 2015

Page 2: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

Hall Estill Law Firm, Tulsa, Shareholder in the Environmental Practice Group

President, Tulsa County Bar Association Speaks frequently on energy and

environmental topics A Tulsa native, he received a B.S. degree

(Petroleum Engineering) and a J.D. degree from The University of Tulsa

Principal practice areas are Administrative, Environmental, Energy and Business Law and Litigation, and Municipal Law

Ken Williams

Page 3: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

STATUS REPORT:

ARE WE GOING TO SEE A NEW WOTUS RULE?

“YES!”

Page 4: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

USEPA and ACE withdraw the Interpretive

Rule Regarding the Applicability of CWA

Exemption from Permitting as to Agricultural

Conservation Practices

January 29, 2015

Page 5: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

USEPA and ACEtestify before

Joint House-Senate Hearing. PROMISE to

narrow and rework WOTUS Proposed Rule.

February 4, 2015

Page 6: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

USEPA goal is to finalize the proposed WOTUS rule is April

2015!

February 4, 2015

Page 7: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

The Clean Water Act covers “navigable waters,” a CWA term defined as “the waters of the United States, including the territorial seas.”

But what are navigable waters?

What was the original concept?

Page 8: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

United States v. Riverside Bayview Homes: Wetlands adjacent to navigable waters

Solid Waste Agency of Northern Cook County v. Army Corps of Engineers: Considered non-adjacent waters for the first time; Overturned Migratory Bird Rule; First use of “significant nexus.”

Historical Supreme Court Decisions

Page 9: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

Rapanos v. United States: Wetlands adjacent to non-navigable waters

Plurality: Traditionally navigable waters, and their relatively permanent tributaries and adjacent wetlands

Kennedy Concurrence: Significant nexus is the focus – case-by-case determination

Three of the five opinions urged EPA and Corps to initiate rulemaking to alleviate confusion over Waters of the United States

Decisions (Continued)

Page 10: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

2008 EPA Guidance: The apparent goal was to reduce confusion post-Rapanos.

2011 EPA Guidance: The apparent goal was to narrow the categories that require case-specific analysis. So controversial that it was never reduced to a rule and was withdrawn.

What happened when USEPA got involved?

Page 11: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

April 21, 2014: EPA and Corps jointly released the proposed rule.

October 20, 2014: The original deadline for public comments wasextended to November 14, 2014.

Almost 1,000,000 public comments!

The Proposed WOTUS Rule

Page 12: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

Per se jurisdictional:◦ Waters susceptible to interstate commerce,

known as navigable waters (no change)◦ All interstate waters, including interstate

wetlands (no change)◦ The territorial seas (no change)◦ Tributaries of the above waters (new

definition of “tributary”)◦ All waters, including wetlands, that are

adjacent to a water identified above (changes adjacent wetlands to adjacent waters)

The Proposed WOTUS Rule

Page 13: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

Other Waters:◦ Removes Commerce Clause-based

jurisdictional provision.◦ Adds coverage for more isolated waters if

there is a significant nexus.

The Proposed WOTUS Rule

Page 14: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

Changed Definition: Adjacent

The Proposed WOTUS Rule

Current Regulatory Language:

The term adjacent means bordering,

contiguous, or neighboring.

Wetlands separated from other waters of

the United States by man-made

dikes or barriers, natural river

berms, beach dunes and the like

are ‘‘adjacent wetlands.’’

Proposed Regulatory Language:

The term adjacent means bordering,

contiguous or neighboring.

Waters, including wetlands,

separated from other waters of

the United States by man-made

dikes or barriers, natural river berms, beach

dunes and the like are “adjacent

waters.”

Page 15: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

New Definition: Tributary Water body physically characterized by a bed

and a bank and ordinary high water mark which contributes flow directly or through other water bodies to waters defined

Water does not lose its tributary status if there are man-made breaks as long as bed and bank can be identified up and downstream of the break

A wetland can be a tributary A tributary can be a natural, man-altered, or

man-made body of water, and includes rivers, streams, lake impoundments, canals, and ditches

The Proposed WOTUS Rule

Page 16: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

New Definition: Neighboring

The term neighboring, for purposes of the term “adjacent” in this section, includes waters located within the riparian area or floodplain of a water identified in paragraphs (s)(1) through (5) of this section, or waters with a shallow subsurface hydrologic connection or confined surface hydrologic connection to such a jurisdictional water.

The Proposed WOTUS Rule

Page 17: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

New Definition: Riparian Area

The term riparian area means an area bordering a water where surface or subsurface hydrology directly influences the ecological processes and plant and animal community structure in that area. Riparian areas are transitional areas between aquatic and terrestrial ecosystems that influence the exchange of energy and materials between those ecosystems.

The Proposed WOTUS Rule

Page 18: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

New Definition: Floodplain

The term floodplain means an area bordering inland or coastal waters that was formed by sediment deposition from such water under present climatic conditions and is inundated during periods of moderate to high water flows.

The Proposed WOTUS Rule

Page 19: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

New Definition: Significant Nexus

The term significant nexus means that a water, including wetlands, either alone or in combination with other similarly situated waters in the region (i.e., the watershed that drains to the nearest water identified in paragraphs (s)(1) through (3) of this section), significantly affects the chemical, physical, or biological integrity of a water identified in paragraphs (s)(1) through (3) of this section. For an effect to be significant, it must be more than speculative or insubstantial.

The Proposed WOTUS Rule

Page 20: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

Significant Nexus (Cont.)

Other waters, including wetlands, are similarly situated when they perform similar functions and are located sufficiently close together or sufficiently close to a “water of the United States” so that they can be evaluated as a single landscape unit with regard to their effect on the chemical, physical, or biological integrity of a water identified in paragraphs (s)(1) through (3) of this section.

Page 21: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

Exclusions:◦ Waste treatment systems, including treatment ponds or

lagoons, that are designed to meet CWA requirements (no change)

◦ Prior converted cropland (no change)◦ A list of features that have been excluded by long-standing

practice and guidance and would now be excluded by rule, such as artificially irrigated areas that would revert to upland should application of irrigation water to the area cease.

◦ Two types of ditches: Ditches excavated in uplands and that drain only upland and

have no more than ephemeral flow. Ditches that do not contribute flow, either directly or through

another water, to a traditional navigable water, interstate water, impoundment, or the territorial seas.

Other ditches, if they meet the rule’s definition of “tributary,” would continue to be “waters of the United States” (one of the most controversial parts of the rule).

The Proposed WOTUS Rule

Page 22: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

Exclusions:◦ Proposed rule makes no change to and does

not affect existing statutory and regulatory exclusions, including: Normal farming, ranching, silviculture activities

such as plowing, seeding, and cultivation Permitting of agricultural stormwater discharges

and return flows from irrigated agriculture Water transfers that do not introduce pollutants

into a water body

The Proposed WOTUS Rule

Page 23: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

◦ EPA and the Corps estimate that the proposed rule will increase the Agencies’ exercise of CWA jurisdiction by approximately 3% compared to current practices 98% of streams evaluated in 2009 – 2010,

compared to 100% under proposed rule 98.5% of wetlands evaluated during 2009 –

2010 were jurisdictional, compared to 100% under proposed rule

0% of “other waters” evaluated during the baseline period were jurisdictional, compared to 17% under the proposed rule

Federal Agency Justification

Page 24: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

Costs:◦ Costs to regulated entities and governments

(federal, state, and local) are likely to increase as a result of the proposed rule.

◦ Section 404 program would see greatest impact.

◦ Projected costs associated with Section 404 program would affect landowners, development companies, state and local governments investing in infrastructure, and industries involved in resource extraction.

◦ The agencies estimate that incremental costs associated with the rule range from $162 million to $279 million per year.

Justification (Cont.)

Page 25: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

Benefits:◦ Value of ecosystem services provided by

waters and wetlands protected as a result of CWA requirements.

◦ Government savings on enforcement expenses due to greater jurisdictional certainty.

◦ Business and government savings from reduced uncertainty.

◦ The agencies estimate that benefits of the proposed rule range from $318 million to $514 million per year.

Justification (Cont.)

Page 26: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

Criticisms:◦ American Farm Bureau: “Ditch the Rule” –

claims that building a fence across a ditch, applying fertilizer, or pulling weeds could require a federal permit.

◦ Small Business Administration: Rule would have a direct and potentially costly impact on small businesses.

◦ H.R. 5078, the Waters of the United States Regulatory Overreach Protection Act

◦ Missouri Farm Bureau: That’s Enough

Reactions

Page 27: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

EPA Connectivity Report◦ Provides scientific basis for “Other Waters”◦ SAB Peer Review (Draft Report)

Supported by science Should actually be more expansive (e.g.

exclusion of groundwater from CWA protection does “not have strong scientific justification”)

Recent Agency Update

Page 28: D. Kenyon (“Ken”) Williams, Jr. Hall Estill Law Firm, Tulsa, Oklahoma Presented at: OML/OMUP Water & Environment Summit February 20, 2015

Questions?

Thanks to Courtney Carter, Office of the General Counsel, Oklahoma Department of Environmental Quality, who allowed use of portions of her earlier presentation on this topic.

Ken Williams(918)-594-0519

[email protected]