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WHAT YOU NEED TO KNOW ABOUT
THE SUPREME COURT RULING ON "ISOLATED WATERS"

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James Burroughs, Esq.Robert Wyatt, Esq.

Allen Matkins Leck Gamble & Mallory LLP

DISCLAIMER

The United States Supreme Court issued a major new ruling last January which has the potential for significantly limiting, if not eliminating, federal jurisdiction by the Corps of Engineers over "nonnavigable, isolated intrastate waters." Some commentators believe that this much anticipated ruling in the case of Solid Waste Agency of Northern Cook County v. US Army Corps of Engineers, No. 99-1178 (January 9, 2001) ("SWANCC") may affect one-fifth or more of all wetlands and waters that have heretofore been subject to the Corps' permitting program. Much has already been written about this case, including a memo issued by the General Counsel and Chief Counsel of the U.S. Environmental Protection Agency and the Corps of Engineers, respectively. Presented here is a quick introduction on its meaning and significance.

This case involved a local trash agency that sought to build a new landfill in an abandoned sand-and-gravel quarry. Construction of the new dump site required filling a series of permanent and seasonal pools of water, an activity which the Corps asserted was subject to permitting requirements under Section 404 of the Clean Water Act. These pools did not cross state lines and they were not connected or adjacent to other streams or lakes which might be used in interstate commerce. To find federal jurisdiction, the Corps had to rely upon its "Migratory Bird Rule." This rule, published by the Corps in 1986, states that an intrastate water used by a migratory bird which has crossed state lines creates federal jurisdiction for purposes of the Section 404 permitting program.

The Court, in a 5 - 4 decision, was not persuaded by the Corps. Specifically, Chief Justice Rehnquist, writing for the majority, found that the Migratory Bird Rule is not authorized by the Clean Water Act which governs the wetlands permitting program, and that the Corps was therefore wrong to rely upon it in finding jurisdiction over the mining pit ponds. The majority isolated waters, artificially-created wetlands and waters that have no connection with navigable waters, and playa lakes. opinion focused on the Clean Water Act's limitation of jurisdiction to "navigable waters," and found nothing in the Corps' argument to suggest that the ponds in question met the definition of "navigable waters." The Migratory Bird Rule itself has no basis in navigation, and even though the Court appeared willing to give the term "navigation" a very broad meaning, it saw no basis for reading the term "navigable" out of the statute. The dissent, on the other hand, argued that this was in fact the intent and effect of Congress when it defined the term "navigable waters" in the Clean Water Act as "waters of the United States."

The significance of this ruling is potentially huge for the federal wetlands permitting program. If taken at its apparent face value, the Court may have just deleted an entire class of waterbodies ("nonnavigable, isolated intrastate waters") from federal jurisdiction that has been asserted and applied by the Corps in one form or another since at least 1977. Waters affected by this decision may include, depending on the site-specific facts, vernal pools, other seasonal and perennial ponds and wetlands that have no outlets, tributaries and washes associated with these isolated waters, artificially-created wetlands and waters that have no connection with navigable waters, and playa lakes.

There are a number of important caveats and qualifications that follow from the Court's ruling. The Corps' wetlands permitting program is still alive and well with regard to "navigable waters" and waters "tributary" or "adjacent" thereto. The exact meaning of these terms (navigable, adjacent, tributary) promises to become much more important. Also, the Court struck down use of the Migratory Bird Rule as a basis for jurisdiction over isolated, intrastate waters, but it did not expressly state that these waters could never be found to be jurisdictional under the Clean Water Act. We might expect to hear a whole host of new creative claims to jurisdiction that have nothing to do with migratory bird use.

Even more important in California, the fill of "nonnavigable, isolated intrastate waters" will in many instances, if not most, still be subject to regulation under State law. Wetland fills are governed by several State statutes, including the California Environmental Quality Act, the California Coastal Act, the Fish and Game Code, and arguably (although legally untested), the Porter-Cologne Water Quality Act as implemented by the Regional Water Quality Control Boards.

Nonetheless, with regard to isolated wetlands and waters, the import of the Supreme Court decision appears to be the removal of one important regulatory agency (the Corps of Engineers) from the "jungle of jurisdictions" that we know to govern the fill of wetlands and waters. How this decision will actually translate in the field remains to be seen. It may take time for the new administration in Washington, D.C. to sort through the various details and ramifications of this important court case before new direction can be given to the Corps' front-line field staff who are responsible for implementing the wetlands regulatory program.

DISCLAIMER: This discussion is general in nature and is not intended to and does not create a lawyer/client relationship. This discussion should in no way be relied upon or construed as legal advice, particularly since most legal outcomes are highly dependent on the facts of a particular case or situation. This discussion is provided on the condition that it cannot be referred to or quoted in any legal proceeding; if this condition is unacceptable to you, immediately delete this email and do not keep a copy of it in any form. The reader or recipient is strongly urged to consult with a lawyer for legal advice on these matters. Any reliance on the discussion information by someone who has not entered into a written retainer agreement with the lawyer providing the discussion information is at the reader's or recipient's own risk.

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