OCTOBER TERM 2012 · DECIDED MARCH 20, 2013 · 7–1

568 U. S. ___ · No. 11-338 · Argued December 3, 2012

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Decker v. Northwest Environmental Defense Center

Reversed and remandedFinal ruling
clean waterenvironmental regulationlogging industryagency deferencestormwater permits

Opinion of the Court by Justice Kennedy, joined by Justices Roberts, Thomas, Ginsburg, Alito, Sotomayor, and Kagan

The Court ruled that logging companies did not need federal Clean Water Act permits for stormwater that runs off logging roads into ditches and streams, because the EPA had reasonably interpreted its own regulation to exclude that kind of runoff from the permit requirement that applies to "industrial activity."

The decision turned on how much deference courts owe an agency's interpretation of its own ambiguous regulations, a question two justices used to publicly question whether that deference rule should be reconsidered in a future case.

It is well established that an agency’s interpretation need not be the only possible reading of a regulation—or even the best one—to prevail.
Justice Kennedy

Explaining why courts defer to an EPA regulation even if it isn't the most natural reading.

How it got here: A federal trial court dismissed the suit; the Ninth Circuit reversed and ruled permits were required; the logging company and Oregon's state forester asked the Supreme Court to review that ruling.

The Case in Depth

What happened

Georgia-Pacific West harvested timber from an Oregon state forest under a contract with the state, using logging roads that funneled rainwater carrying dirt and gravel into ditches and culverts draining into two rivers. An environmental group, Northwest Environmental Defense Center, sued the company and Oregon's state forester, arguing federal law required a discharge permit before that sediment-laden runoff could reach the rivers, and that none had been obtained.

The question before the Court

Did logging companies need a federal water-pollution permit for rainwater runoff that drains off logging roads through ditches and culverts into rivers?

The Court's answer

No — the Court ruled that logging companies did not need a federal discharge permit for the rainwater runoff at issue, because the EPA had reasonably interpreted its own regulation to exclude ordinary logging-road stormwater from the definition of discharges "associated with industrial activity." The regulation's references to "facilities," "manufacturing," and an "industrial plant" left room for the agency's view that the rule was aimed at fixed industrial sites like sawmills, not outdoor timber-harvesting operations.

The Court also cleared two threshold hurdles before reaching that conclusion: it held the citizen-suit provision let the case proceed despite a separate review provision, and it held the EPA's last-minute rule amendment did not make the case moot, since past discharges could still trigger penalties under the earlier rule. Justice Scalia dissented on the merits, arguing the regulation's plain text covered the discharges.

Curious how the Court got there? See the step-by-step legal reasoning →

Why it matters

Logging companies, timber contractors, and state forestry agencies across the country can continue operating logging roads without obtaining costly federal discharge permits for ordinary rainwater runoff. States like Oregon that already regulate logging-road runoff through their own environmental rules keep primary responsibility for that oversight instead of ceding it to a federal permitting program.

What changes now

The case is sent back to the lower courts for further proceedings consistent with the ruling, meaning the environmental group's suit over past discharges will continue under the framework the Court just laid out, though without a permit requirement for the type of runoff at issue. Going forward, a newly amended EPA rule — not addressed in this decision — will govern whether future logging-road discharges need permits. This is a final merits ruling, not a temporary order.

What this does not decide

The Court did not decide whether logging roads' ditches and culverts count as regulated "point sources" under the Clean Water Act generally, since it resolved the case on the narrower stormwater-exemption question instead. It also expressly declined to interpret the EPA's newly amended regulation, leaving that rule's meaning for a future case.

Concurrences and dissents

Concurrence — Justice Roberts

Chief Justice Roberts, joined by Justice Alito, agreed with the majority's result but wrote separately to say this case was the wrong vehicle for reconsidering the rule that courts defer to an agency's interpretation of its own regulations. He noted the issue was barely briefed by the parties and addressed by only two amicus briefs, and said the Court should wait for a case where the question is properly raised and argued.

Dissent in part — Justice Scalia

He who writes a law must not adjudge its violation.Scalia's core objection to letting agencies both write and interpret their own regulations.

Justice Scalia agreed the suit was not barred on jurisdictional or mootness grounds but dissented from the merits ruling, arguing courts should stop deferring to agencies interpreting their own rules because it lets the same body that writes a regulation also control what it means. Reading the regulation's text using ordinary interpretive tools, he concluded logging road discharges were plainly covered and would have affirmed the ruling requiring permits.

How the Court got there

The legal reasoning, step by step

  1. The Court first addressed whether a separate Clean Water Act provision limiting judicial review of certain EPA actions to the courts of appeals blocked this citizen suit; it held that provision applies only to challenges seeking to invalidate agency actions, not to suits enforcing an existing rule against an alleged violator, so the trial court had authority to hear the case.
  2. The Court then asked whether the EPA's last-minute rule change, issued days before argument, made the case moot. It held that a case is moot only when no effective relief remains possible, and because the earlier version of the rule still governed the company's past discharges and potential penalties, a live dispute remained.
  3. Turning to the merits, the Court asked whether the EPA's regulation defining stormwater runoff 'associated with industrial activity' — the trigger for needing a permit — was ambiguous, and if so, whether the agency's own reading of that ambiguous term was a reasonable one.
  4. Applying Auer deference — the rule that courts generally accept an agency's interpretation of its own ambiguous regulation unless that interpretation is plainly wrong or inconsistent with the rule's text — the Court found the regulation's references to 'facilities,' 'manufacturing,' and an 'industrial plant' left room for the EPA's view that only fixed industrial sites, not outdoor logging operations, were covered.
  5. Because the EPA's interpretation had also been applied consistently over time rather than adopted for purposes of this litigation, and because Oregon already had its own detailed rules governing logging-road runoff, the Court concluded the agency's reading was reasonable and controlling, so no permit was required under the earlier rule.

Doctrinal impact

Laws and provisions at issue

Clean Water Act § 1342(p)

Federal law generally exempting stormwater runoff from pollution permits unless tied to industrial activity.

Clean Water Act § 1365

Lets private citizens sue in court to enforce Clean Water Act violations.

Clean Water Act § 1369(b)

Requires certain challenges to EPA actions to go directly to a federal appeals court.

Silvicultural Rule (40 CFR § 122.27)

EPA rule defining which logging-related discharges count as regulated pollution sources.

Industrial Stormwater Rule (40 CFR § 122.26(b)(14))

EPA rule defining which stormwater discharges count as tied to industrial activity needing a permit.

Cases affected by this decision

Reaffirms Auer v. Robbins (519 U. S. 452)

The Court relies on and applies Auer's rule that agencies get deference interpreting their own ambiguous regulations.

Supreme Court Opinion

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Decker v. Northwest Environmental Defense Center | SCOTUS Reporter