Universal Welding & Fabrication, Inc. v. United States Army Corps of Engineers , 708 F. App'x 301 ( 2017 )

FILED
NOT FOR PUBLICATION
AUG 30 2017
UNITED STATES COURT OF APPEALS MOLLY C. DWYER, CLERK
U.S. COURT OF APPEALS
FOR THE NINTH CIRCUIT
UNIVERSAL WELDING & No. 15-35906
FABRICATION, INC., an Alaska
Corporation, D.C. No. 4:14-cv-00021-TMB
Plaintiff-Appellant,
MEMORANDUM*
v.
UNITED STATES ARMY CORPS OF
ENGINEERS and CHRISTOPHER D.
LESTOCHI, Colonel, in his official
capacity as Commander of the Alaska
District of the Corps,
Defendants-Appellees.
Appeal from the United States District Court
for the District of Alaska
Timothy M. Burgess, Chief Judge, Presiding
Argued and Submitted August 16, 2017
Anchorage, Alaska
Before: GRABER, CLIFTON, and M. SMITH, Circuit Judges.
*
This disposition is not appropriate for publication and is not precedent
except as provided by Ninth Circuit Rule 36-3.
Plaintiff Universal Welding appeals the district court’s grant of summary
judgment to the United States Army Corps of Engineers as to Plaintiff’s claim that
the Corps’ permit decision was invalid under the Administrative Procedure Act.
Reviewing de novo, “thus reviewing directly the agency’s action under the
[APA’s] arbitrary and capricious standard,” we affirm. Alaska Wilderness League
v. Jewell, 788 F.3d 1212, 1217 (9th Cir. 2015) (internal quotation marks omitted).
Plaintiff argues that the Corps’ permit decision was invalid because the
Corps lacks jurisdiction over the wetland on Plaintiff’s property. Specifically,
Plaintiff contends that the Corps plainly erred in interpreting 33 C.F.R.
§ 328.3(a)(7) to provide, rather than preclude, the Corps’ jurisdiction over the
subject wetland. That provision appears within a list of waters over which the
Corps may exercise regulatory jurisdiction:
(1) Waters that were, are, or may be used in interstate or foreign
commerce;
(2) “All interstate waters including interstate wetlands”;
(3) “All other waters . . . , the use, degradation or destruction of
which could affect interstate or foreign commerce”;
(4) All impoundments of identified waters;
(5) “Tributaries of waters identified in paragraphs (a)(1) through
(4) of this section”;
(6) “The territorial seas”; and,
(7) “Wetlands adjacent to waters (other than waters that are
themselves wetlands) identified in paragraphs (a)(1) through (6)
of this section.”
2
33 C.F.R. § 328.3(a) (2014).
The regulation clarifies that “[t]he term adjacent means bordering,
contiguous, or neighboring” and that “[w]etlands separated from other waters of
the United States by man-made dikes or barriers, natural river berms, beach dunes
and the like” are nonetheless “adjacent wetlands.” 33 C.F.R. § 328.3(c).
Plaintiff argues that, under § 328.3(a)(7), the wetland on its property falls
within an exception to the Corps’ regulatory authority. The Corps concluded that
it had jurisdiction over the subject wetland under § 328.3(a)(7) because that
wetland is adjacent to Channel C, which serves as a tributary to a non-wetland
jurisdictional water, Chena Slough. See § 328.3(a)(1), (5), (7). Despite the subject
wetland’s adjacency to another wetland, the Corps determined that its regulatory
authority was not precluded by the parenthetical language within § 328.3(a)(7),
which it interpreted as prohibiting the exercise of jurisdiction over a wetland only
if based upon that wetland’s adjacency to another wetland.
An agency’s interpretation of its own regulation is “controlling unless
plainly erroneous or inconsistent with the regulation.” Auer v. Robbins, 519 U.S.
452, 461 (1997) (internal quotation marks omitted). The Corps’ interpretation of
§ 328.3(a)(7) is not plainly erroneous. To the contrary, it is the most reasonable
reading of the regulation’s text. The Corps’ interpretation of the regulation is
3
supported by the placement of the parenthetical, “other than waters that are
themselves wetlands,” which modifies the “waters” to which the wetlands must be
adjacent for the Corps to exercise jurisdiction on that provision’s basis.
§ 328.3(a)(7).
To the extent that Plaintiff argues that all wetlands adjacent to other
wetlands fall outside the Corps’ regulatory authority, regardless of their adjacency
to a non-wetland water that would otherwise render them jurisdictional, we
conclude that this reading is unsupported by the regulation’s plain language. We
also reject Plaintiff’s argument that the subject wetland’s adjacency to Channel C
is defeated by a wetland situated between the subject wetland and Channel C.
Although the wetland on Plaintiff’s property does not immediately abut Channel C,
the Corps’ definition of “adjacent” permits “neighboring” waters to meet the
adjacency requirement, even if separated from another jurisdictional water by a
barrier, berm, or the like. See § 328.3(c).
Plaintiff’s additional challenges are also unavailing. Plaintiff argues that it
offers a “better” interpretation of the regulation, which would augment the limiting
effect of § 328.3(a)(7)’s parenthetical language. Yet, a “better” interpretation
would not make the Corps’ interpretation plainly erroneous, the standard under
which we must evaluate the Corps’ interpretation. Under the proper standard, “an
4
agency’s interpretation need not be the only possible reading of a regulation—or
even the best one—to prevail.” Decker v. Nw. Envt’l Def. Ctr., 568 U.S. 597, 613
(2013). Moreover, for the reasons already discussed, we are not persuaded that
Plaintiff’s interpretation is in fact “better.”
Finally, we conclude that the Corps’ jurisdictional determination was not
arbitrary or capricious. Applying its interpretation of § 328.3(a)(7), the Corps
determined that the subject wetland is jurisdictional because it is adjacent to
Channel C and sustains a significant nexus to Chena Slough. The record supports
this conclusion. The record shows that the wetland on Plaintiff’s property
contributes “shallow subsurface flow” to Channel C. The record also demonstrates
that the subject wetland—along with other wetlands in the area and Channel
C—“perform[] a variety of hydrologic, physical, geochemical and biological
functions critical to the integrity of Chena Slough,” such as filtering pollutants,
supplying nutrients, and supporting organisms. These unchallenged factual
findings are sufficient to support the Corps’ jurisdictional determination.
AFFIRMED.
5