95-17311. Proposal To Establish an Administrative Appeal Process for the Regulatory Programs of the Corps of Engineers  

  • [Federal Register Volume 60, Number 138 (Wednesday, July 19, 1995)]
    [Proposed Rules]
    [Pages 37280-37290]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-17311]
    
    
    
    
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    _______________________________________________________________________
    
    Part III
    
    
    
    
    
    Department of Defense
    
    
    
    
    
    _______________________________________________________________________
    
    
    
    Department of the Army
    
    
    
    Corps of Engineers
    
    
    
    _______________________________________________________________________
    
    
    
    33 CFR Parts 320, 326 and 331
    
    
    
    Proposal To Establish an Administrative Appeal Process for the 
    Regulatory Programs of the Corps of Engineers; Proposed Rule
    
    Federal Register / Vol. 60, No. 138 / Wednesday, July 19, 1995 / 
    Proposed Rules
    
    [[Page 37280]]
    
    
    DEPARTMENT OF DEFENSE
    
    Department of the Army
    Corps of Engineers
    
    33 CFR Parts 320, 326 and 331
    
    
    Proposal To Establish an Administrative Appeal Process for the 
    Regulatory Programs of the Corps of Engineers
    
    AGENCY: Corps of Engineers, Army Department, DOD.
    
    ACTION: Proposed rule.
    
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    SUMMARY: The Corps of Engineers is proposing to establish an 
    administrative appeal process to include in its regulatory program 
    regulations (33 CFR parts 320-330). There is currently no 
    administrative appeal process under which parties may contest Corps of 
    Engineers regulatory determinations. Adverse decisions must be 
    challenged in Federal District Court, and this formal judicial process 
    may be time-consuming and financially burdensome for many parties. The 
    proposed rule would provide permit applicants and landowners an 
    opportunity to appeal permit denials and jurisdictional determinations.
    
    DATES: Comments must be received by September 5, 1995.
    
    ADDRESSES: Comments should be submitted in writing to: Office of the 
    Chief of Engineers, ATTN: CECW-OR, 20 Massachusetts Avenue NW., 
    Washington, DC 20314-1000. Comments will be available for examination 
    in Corps District and Division offices or at the Office of the Chief of 
    Engineers, Room 6225, Pulaski Building, 20 Massachusetts Avenue NW., 
    Washington, DC 20314-1000.
    
    FOR FURTHER INFORMATION CONTACT:
    Mr. Sam Collinson or Mr. Michael L. Davis, Corps of Engineers 
    Regulatory Branch, (202) 761-0199.
    
    SUPPLEMENTARY INFORMATION: 
    
    I. Background
    
        Shortly after coming into office, the Clinton Administration 
    convened an interagency working group to address legitimate concerns 
    with Federal wetlands policy. After hearing from States, developers, 
    farmers, environmental interests, members of Congress, and scientists, 
    the working group developed a comprehensive, 40-point plan to enhance 
    wetlands protection, while making wetlands regulations more fair, 
    flexible, and effective to everyone, including America's small 
    landowners. The Plan was issued on August 24, 1993. It emphasizes 
    improving Federal wetlands policy through various means, including 
    streamlining wetlands permitting programs. One of several approaches 
    identified in the Plan for achieving such streamlining is through 
    development by the Corps of a Clean Water Act Section 404 
    administrative appeals process, to be implemented after a public 
    rulemaking. The Plan provides that the process will be designed to 
    allow for administrative appeals of Section 404 geographic 
    jurisdictional determinations, permit denials, and administrative 
    penalties.
        The rule proposed herein is responsive to the President's 
    directive. The appeal process is designed to allow administrative 
    appeals to the Corps regarding two distinct decisions: (1) That a 
    geographic area, including a particular parcel of property that is 
    determined to be a wetland as defined in 33 CFR 328.3(b) and delineated 
    in accordance with the Federal manual for delineating and identifying 
    wetlands, is subject to Corps regulatory jurisdiction pursuant to 
    Section 404 of the Clean Water Act and/or Section 10 of the Rivers and 
    Harbors Act of 1899; and (2) denial with prejudice by the District 
    Engineer of a Department of the Army permit, which includes cases where 
    a proffered permit is refused by the applicant because the applicant 
    objects to the terms or special conditions of the proffered permit and 
    the permit is subsequently denied with prejudice by the District 
    Engineer. Consistent with the Plan and as explained below, third 
    parties can participate only in applicant appeals of permit denials.
        As indicated above, the Plan also addresses administrative appeals 
    of administrative penalty assessments. Section 309(g) of the CWA 
    authorizes the Corps and EPA to assess administrative penalties for, 
    among other things, unauthorized discharges of dredged or fill material 
    into wetlands and other waters of the United States in violation of 
    Section 404. The CWA establishes two classes of administratively 
    assessed penalties, which differ with respect to maximum assessment and 
    prescribed procedure. EPA and the Corps have implemented the 
    requirements of Section 309(g) as follows. With regard to EPA, proposed 
    assessments of Class II administrative penalties for Section 404 
    violations can be reviewed by an Administrative Law Judge through a 
    hearing process, the procedures for which are set forth at 40 CFR Part 
    22. EPA proposed assessments of Class I administrative penalties can be 
    reviewed by a Presiding Officer through a hearing process according to 
    procedures set forth at 40 CFR Part 28. (Note that EPA issued a 
    proposed rule establishing such procedures, see 56 FR 29996 (July 1, 
    1991); pending issuance of a final rule, the EPA is applying the 
    proposed rule as EPA guidance.) With regard to the Corps, proposed 
    assessments of Class I administrative penalties, like EPA's process, 
    can be reviewed by a Presiding Officer through a hearing process 
    according to procedures set forth at 33 CFR 326. The Corps is 
    developing, but has not yet proposed, regulations for assessing Class 
    II administrative penalties. The Corps expects that its Class II 
    regulations will be similar to those of EPA's.
        Also consistent with the Administration Wetlands Plan, the August 
    1993 Interagency Memorandum of Agreement (MOA) between the Department 
    of Agriculture, the Environmental Protection Agency, the Department of 
    the Interior and the Department of the Army concerning the delineation 
    of wetlands for purposes of Section 404 of the CWA and Subtitle B of 
    the Food Security Act, provides that persons who are adversely affected 
    by Natural Resources Conservation Service (NRCS) wetland delineations 
    on agricultural lands may appeal such wetland delineations under NRCS 
    administrative appeal procedures published at 7 CFR Part 614. Under 
    these procedures, any person who is adversely or potentially adversely 
    affected by an NRCS wetland delineation can appeal that decision. This 
    may be an owner, operator, tenant or partner of the farm to which the 
    NRCS decision applies. The NRCS appeals procedures currently has four 
    levels: (1) The District Conservationist, (2) the Area Conservationist, 
    (3) the State Conservationist, and (4) the Chief of NRCS. The decision 
    of the Chief is final. However, as a result of USDA reorganization the 
    current NRCS appeals process is being revised. Furthermore, according 
    to the MOA, in circumstances where a landowner submits an appeal to 
    NRCS and the State Conservationist is considering a change in the 
    original delineation made by NRCS, the State Conservationist notifies 
    the appropriate Corps and EPA officials to provide those agencies an 
    opportunity for their participation and input on the appeal. The Fish 
    and Wildlife Service is also consulted. The Corps and EPA reserve the 
    right, on a case-by-case basis, to determine that a revised delineation 
    resulting from an NRCS appeal is not valid for the purposes of Section 
    404 jurisdiction. However, any subsequent jurisdiction determination by 
    the Corps would be 
    
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    appealable under the appeals process being proposed today.
        The proposed administrative appeal process for a final Corps 
    jurisdiction determination is a two-level process. The initial appeal 
    is to an independent jurisdictional expert within a Corps District 
    Office. The second level appeal would be to a regulatory expert within 
    a Corps Division Office. Depending on the specific issues raised the 
    individuals responsible for the appeal process may consult technical 
    experts from other Corps offices. The proposed administrative appeal 
    process for permit denials is a one-level process. The appeal would be 
    to the Corps Division Office. The appeal process would be conducted by 
    a Review Officer in the Division Regulatory Office and the final appeal 
    decision would be made by the Division Engineer. In cases where an 
    applicant refuses a proffered permit because of objectionable 
    conditions, the District Engineer will review the case and will deny 
    the permit, issue the permit without the condition, or offer the 
    applicant a permit with different conditions, which if refused would be 
    denied. In those cases where such proffered permits are denied the 
    applicant may appeal the denial to the Division Engineer.
        Filing of a jurisdictional determination appeal under this rule 
    will be limited to the permit applicant or the landowner (i.e., and 
    individual who has an identifiable and substantial legal interest in 
    the property.) The authorized agent of the permit applicant or the 
    landowner may also file the appeal.
        Most Corps districts currently have an informal consultation 
    procedure wherein disagreements on jurisdictional determinations or 
    permit decisions are discussed between the Corps Project Manager/
    supervisor and the landowner/agent/consultant. Based upon additional 
    information or differing interpretations of the data or issues, the 
    preliminary jurisdictional determination or permit decision may be 
    revised or conditioned to the mutual satisfaction of the parties. The 
    Corps encourages the continued use of the informal consultation process 
    as the most efficient and responsive means of resolving jurisdictional 
    and permit issues. If informal consultation proves fruitless, the 
    proposed administrative appeals process provides a formal 
    administrative course of action.
        Corps districts also respond to jurisdictional queries by providing 
    an ``office'' jurisdictional determination, based on a review of 
    wetland inventory maps, State or local wetland maps, topographic maps, 
    soils maps, aerial photography, and land-use plans or studies. These 
    office or preliminary jurisdictional determinations are advisory in 
    nature and provided primarily for planning purposes and may not be 
    appealed.
        To ensure compliance with national policies and procedures, and 
    consistency among the administrative appeals officers within Division 
    and District regulatory offices, the administrative appeals program 
    will be monitored by the office of the Chief of Engineers. Implementing 
    guidance will be provided when deemed appropriate.
        As discussed in further detail below, additional manpower and 
    funding would be necessary for the Corps to implement an administrative 
    appeals process for its regulatory program. The President has included 
    $6 million for the administrative appeals process in the FY 96 budget 
    submitted to Congress. Additionally, training will be necessary for the 
    additional personnel hired to hear the appeal cases and some 
    organizational adjustments may be needed to accommodate an appeals 
    process. Given these considerations, we anticipate that implementation 
    of an administrative appeals process could be accomplished no later 
    than 6 months after the effective date of a final rule. Review officers 
    at Divisions and Districts may begin hearing cases before the projected 
    implementation date if funding, staffing, and training are completed.
    
    II. Proposed Rule Organization
    
        The proposed administrative appeals process rule is organized into 
    the following sections:
        Section 331.1, Purpose and Policy, describes the basic purpose of 
    the proposed rule and the Corps of Engineers policies regarding the 
    appeals process.
        Section 331.2, Definitions, contains the definitions of important 
    terms that are used throughout the proposed rule. The following terms 
    are defined in this section: Wetland delineation, jurisdictional 
    determination, permit denial, appealable action, affected party, 
    appellant, review officer, notification of appeals process, and request 
    for appeal.
        Section 331.3, Review Officers, describes the independence, 
    authority and organizational location of the review officers (ROs). ROs 
    for jurisdictional determinations would be located in District and 
    Division regulatory offices and the ROs for permit denials would be 
    located in Division regulatory offices.
        Section 331.4, Notification of Appealable Actions, would require 
    that the Corps district office send notification of each appealable 
    action to the affected party in writing. Each notification would 
    contain additional information on the administrative appeals process 
    and provide a form that the affected party must use to request an 
    appeal.
        Section 331.5, Criteria, describes the criteria which must be met 
    for an action to qualify for the appeals process and also lists 
    specific situations which would preclude an action from qualifying for 
    the appeals process.
        Section 331.6, Filing Appeals, provides 60 days from the date on 
    the letter of notification of the appealable action, for the affected 
    party to submit a request for appeal to the Corps. In filing the 
    appeal, the affected party must also grant the Corps the right of entry 
    onto the property in order to conduct appropriate field testing and 
    data collection.
        Section 331.7, Review Procedures, describes the procedures for 
    reviewing a request for appeal (RFA). First, the RFA must be complete 
    and meet the established criteria for appeal. If requested, or 
    determined to be necessary, the RO also has the discretion to conduct a 
    review meeting with the appellant for jurisdictional determinations. 
    For permit denials, an appeal review conference will be held within 60 
    days after receipt of the RFA. Procedures for conducting the conference 
    are included.
        Section 331.8, Timeframes for Final Appeals Decisions, establishes 
    the maximum time limits for Corps final appeals decisions.
        Section 331.9, Final Appeals Decisions, describes the potential 
    outcomes of an appeal process for an appealable action and concludes 
    the administrative appeals process. Additionally, this section 
    discusses the timeframes for the ROs, District Engineers and Division 
    Engineers to reach a final decision on the merits of the appeal.
        Section 331.10, Final Agency Decisions, describes when a final 
    agency decision has been made for an action that has been appealed.
        Section 331.11, Unauthorized Activities, discusses the policies and 
    procedures for administrative appeals of appealable actions involving 
    unauthorized activities.
        Finally, section 331.12, Exhaustion of Administrative Remedies, 
    describes the administrative process and remedies that an appellant 
    must exhaust before he can seek further review or relief from an 
    adverse action through a judicial action in Federal District Court.
    
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    III. Administrative Appeal of Jurisdictional Determinations
    
    A. Background
    
        In the day to day implementation of the Clean Water Act Section 404 
    Regulatory Program, the Corps of Engineers has the primary 
    responsibility for determining whether any particular geographic area, 
    including a wetland, is subject to Corps regulatory authority under 
    section 404 of the Clean Water Act and/or section 10 of the Rivers and 
    Harbors Act of 1899. The administrative appeals process would apply to 
    jurisdictional determinations of geographic extent of waters of the 
    United States.
        Currently, the 1987 Corps of Engineers Wetland Delineation Manual 
    (1987 Manual) is used for wetland delineations, which may be performed 
    by Corps, Environmental Protection Agency or Natural Resources 
    Conservation Service employees, the applicant, or a private consultant 
    hired by the applicant. However, if the wetland delineation is 
    performed by the applicant or the applicant's consultant, it is the 
    Corps' responsibility to verify the accuracy of the wetland 
    delineation. Wetland delineations typically constitute two separate 
    determinations: first, a decision that an area falls within the 
    technical definition of a wetland; and second, the establishment of how 
    much of the area is wetland, i.e., the boundary or dividing line 
    between wetlands and uplands by applying the 1987 Manual. When a 
    wetland delineation is part of a jurisdictional determination, which 
    establishes whether a particular area is subject to regulatory 
    authority under section 404 of the Clean Water Act, decisions regarding 
    presence, scope and extent of wetlands, adjacency of wetlands to a 
    waterbody, and the interstate commerce nexus for isolated waters would 
    be appealable under this proposed rule.
        The proposed rule would establish a two level administrative 
    appeals process for jurisdictional determinations. The first level 
    appeal would be conducted by a review officer (RO) located in a Corps 
    District regulatory office. Larger districts may require more than one 
    RO. The second level appeal would be conducted by a review officer in 
    the Corps Division regulatory office. While we are proposing a two 
    level appeal process for jurisdictional determinations, we are seeking 
    comments on whether the appeals process should be a one level appeals 
    process and, if so, whether the appeal should be to the District or 
    Division Engineer.
    
    B. First Level Appeal--District Office
    
        The District Engineer, or designee, is responsible for the review 
    of and decision on the first level appeal of jurisdictional 
    determinations. The District Engineer may retain or delegate either or 
    both, the RO responsibilities and the appeals decision to the same or 
    different Corps officials.
        We are proposing that the RO should be, or should have the support 
    of, a qualified delineation specialist who has extensive experience in 
    applying the technical criteria of the current wetland delineation 
    manual, is familiar with local geophysical and climatological 
    conditions, and has extensive experience in the determination of 
    jurisdiction. Based on our review of regulatory program requirements 
    and past experiences, we believe that Corps personnel in the respective 
    districts are the best trained and most experienced wetland 
    delineators. Additionally, expert wetland delineators in District 
    offices are usually very experienced with regional geographic 
    jurisdiction issues. Our review also focused on the importance of 
    ensuring that the RO be insulated from the influence of the District's 
    regulatory staff responsible for the appealable action. Therefore, we 
    are also proposing that the RO report directly to the District's 
    Regulatory Branch Chief. This arrangement would remove the RO from day-
    to-day involvement in routine delineation and jurisdictional decisions 
    made by Regulatory Branch project managers, unit chiefs, and section 
    chiefs. For matters involving routine delineation and jurisdictional 
    decisions, the RO would be equal or above all decision-makers in the 
    Regulatory Branch Office, except for the Regulatory Branch Chief. 
    Furthermore, any particular RO would be disqualified from a case if the 
    RO had worked directly on the case, had involvement in reviewing or 
    providing guidance on the case, or if the decision-maker on the action 
    was the Regulatory Branch Chief, or higher level official. In such 
    circumstances, the Regulatory Branch Chief or higher level decision-
    maker (at least one level higher than the decision-maker) would appoint 
    an independent RO. We are proposing to locate the RO with the 
    Regulatory Branch Offices within the Districts, because we believe it 
    is critical for the ROs to maintain a high level of expertise and 
    experience with local wetland and jurisdictional issues. Furthermore, 
    the ROs could also administer the Corps Wetland Delineator 
    Certification Program and conduct in-house supplemental training in 
    jurisdictional determinations.
        The proposed administrative appeals process for jurisdictional 
    determinations would be initiated by the landowner filing a request for 
    appeal (RFA). The appeal must be filed within 60 days of the issuance 
    of a formal jurisdictional determination by the Corps. If work is 
    authorized prior to the end of this 60 day period, either by general or 
    individual permit, and a permittee wishes to request an appeal, the 
    appeal must be filed and the appeal process completed prior to the 
    commencement of any work in the area identified as waters of the U.S., 
    or any work that could alter the hydrology of the waters. Unauthorized 
    work may not be conducted to avoid regulatory jurisdiction over an area 
    by alteration of its wetland characteristics.
        The 60-day filing deadline is considered to provide adequate time 
    for an appellant to submit an appeal. It is recognized, however, that 
    in some cases data cannot be obtained in certain seasons or is 
    complicated by disturbed site conditions. Under these circumstances, 
    the appellant may include in the RFA a request for a time extension and 
    provide reasons to support the request. The appeals Review Officer (RO) 
    will consider the request and may grant a reasonable extension of time 
    to enable the appellant to gather and submit additional data. The RO 
    also has discretion to extend the time period for such circumstances to 
    gather data or conduct research that is deemed necessary to reach a 
    valid conclusion. We are proposing that, in such circumstances, the 
    time for the total appeals process (from receipt of the RFA to the RO's 
    decision on the merits of the appeal) will be completed as soon as 
    possible but will not extend beyond twelve months from the date of 
    receipt of the appellant's complete RFA. As an option to this twelve 
    month maximum time frame, we are also seeking comments on establishing 
    the maximum time frame for an extension at nine months.
        The RO's evaluation process of the appeal includes a review of the 
    appellant's RFA, supporting data, the Corps jurisdictional 
    determination, and any other available data to determine if a site 
    visit and/or any additional information is needed to complete the 
    review. The RO will complete this review of the administrative record 
    within 30 days of receipt of the appellant's complete RFA. If the RO 
    determines that no additional data is required and that no site visit 
    is necessary or requested by the appellant, a decision on the merits of 
    the appeal will be made within 60 days after receipt of the complete 
    RFA. If the RO 
    
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    determines that additional data is needed, or if a site visit is 
    necessary or requested, the RO will schedule the completion of this 
    work at the earliest practicable time. The RO, or other designated 
    Corps official, would then make a decision on the merits of the appeal 
    within 30 days after the receipt of new information, completion of the 
    site visit, or the collection of data. However, in no case shall the 
    data collection or site visit extend the total appeals review time for 
    the RO, or other designated Corps official, to make a decision on the 
    merits of the appeal beyond twelve months after receipt of the RFA.
        In completing the evaluation process, the District RO will either: 
    (1) Determine that the appeal has no merit; (2) determine that the 
    appeal has merit and notify the Corps regulatory official of the 
    appropriate course of action to be taken; or (3) determine that the 
    appeal has merit and revise the jurisdictional determination. The Corps 
    jurisdictional determination resulting from the appeal will be 
    considered the final Corps jurisdictional determination, unless the 
    appellant submits an RFA to the Division RO as described below.
    C. Second Level Appeal--Division Office
    
        The Division Engineer, or designee, is responsible for the review 
    of and decision on the second level appeal of jurisdictional 
    determinations. The Division Engineer may retain or delegate either or 
    both, the RO responsibilities and the appeals decision to the same or 
    different Corps officials.
        We expect that normally the ROs in the Division Office would be the 
    same ROs that conduct the administrative appeal or permit denials which 
    is described in more detail later. While these Division ROs would 
    normally be a regulatory expert or have the support of a regulatory 
    expert, they may have limited jurisdictional determination expertise. 
    Depending on the jurisdiction issue raised and the expertise of the 
    Division RO, the Division RO will obtain the assistance of experts from 
    a District Office other than the District Office where the appeal was 
    initiated.
        The appellant may appeal the formal jurisdiction decision resulting 
    from the first level appeal at the District Office by filing an RFA 
    with the Division Office within 60 days of such final jurisdiction 
    decision. Within 15 days of receipt of the RFA by the Division Office, 
    the District Office will forward the administrative record of the 
    jurisdictional determination to the Division RO. The administrative 
    record will include any information provided by the appellant during 
    the first level appeal.
        The Division Office review will be limited to the administrative 
    record prepared during the District Office appeal review. Therefore, 
    the appellant must submit any relevant information at that time. The 
    Division Office RO will reach a final decision on the administrative 
    appeal within 60 days of receipt of the RFA.
        In completing the evaluation process, the Division RO will either: 
    (1) Determine that the appeal has no merit; or (2) determine that the 
    appeal has merit and notify the Corps District regulatory official of 
    the appropriate course of action to be taken. The Corps jurisdictional 
    determination resulting from the second level appeal will be considered 
    the final Corps jurisdictional determination.
    
    D. Costs
    
        Because of the variable scope of wetlands among Corps districts and 
    developmental pressures on those wetlands, limited data is available to 
    assess the potential cost of the administrative appeal program for 
    wetland delineations and jurisdictional determinations. However, 
    assuming that 10% of the approximately 35,000 jurisdictional 
    determinations conducted annually by Corps Districts are appealed, and 
    that the average costs associated with each appeal is $1200-1500 
    (Salary/travel/data collection), the annual cost of the program could 
    range from $4.2-$5.25 million.
    
    IV. Administrative Appeal of Permit Denials
    
        The proposed rule provides permit applicants with an opportunity to 
    seek a timely and objective reconsideration of an adverse permit 
    decision in a non-judicial forum. Only a denial with prejudice of a 
    Department of the Army permit application, or the applicant's rejection 
    of a proffered permit containing special conditions that are 
    unacceptable to an applicant and subsequently denied by the District 
    Engineer, would be subject to the administrative appeal process. A 
    denial with prejudice occurs when the permit is denied based upon the 
    project's failing to meet public interest criteria and/or guidelines 
    specified in Corps regulations (33 CFR Parts 320 through 330) and EPA 
    regulation (40 CFR Part 230). Conversely, a denial without prejudice 
    would not be subject to an administrative appeal, because such a denial 
    is a pro forma action based on the applicant's failure to obtain 
    requisite approval from another regulatory entity, and is not a Corps 
    decision made on the merits of a completed public interest review and 
    Section 404(b)(1) analysis. Further, if the applicant endorses and 
    accepts a permit that is modified, conditional, and/or mitigated, the 
    permit is not subject to an administrative appeal.
        Additionally, the Corps of Engineers, through a separate rule-
    making proposal, will be proposing to make permit decisions within 90 
    days from the date of public notice for a proposed project, except for 
    limited situations which preclude the Corps from making a decision due 
    to other regulatory or legal requirements. As part of this rule-making 
    proposal, we are seeking comments on whether the failure of the Corps 
    to reach a permit decision within established deadlines should be 
    viewed as a permit denial and subject to an administrative appeal.
        The intent of this administrative appeal process is to provide a 
    venue wherein the appellant will have an opportunity to have an 
    independent evaluation conducted of the Corps' denial of a permit, 
    including a proffered permit containing special conditions unacceptable 
    to the applicant which is subsequently denied by the District Engineer.
        Several options were considered for the identity of the permit 
    denial Review Officer (RO) and the appeals decision-maker. An analysis 
    of the options resulted in a determination that the Division Office 
    could best meet the goals of providing an objective forum, ensuring the 
    availability of well-qualified ROs, achieving an acceptable level of 
    cost-effectiveness, promoting administrative efficiency, and providing 
    the greatest access and convenience to appellants.
        The need to ensure an impartial and objective review was considered 
    to be the most important factor in implementing a valid administrative 
    appeals process for permit denials. We believe this goal is attained by 
    placing the review function at the Division level with the Division 
    Engineer making the appeal decision rather than within Corps Districts. 
    The Division RO would exercise a delegated authority to act on behalf 
    of the Division Engineer, in conducting the administrative appeals 
    process. The Division Engineer would make the decision on the merits of 
    the appeal and direct the District Engineer to implement administrative 
    appeal remedies or proceed with the permit denial. It is anticipated 
    that Division RO candidates will likely be drawn from present Corps 
    staff at HQ, Divisions, and Districts, and that they will represent the 
    best trained and most experienced regulatory experts available.
    
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        The essence of the appeals process is an independent analysis of 
    the existing administrative record to ensure that the district's 
    decision complies with legal, regulatory, and policy requirements, that 
    omissions of material facts have not occurred, and that the record is 
    sufficient to support conclusions of the permit decision that was made. 
    The process provides for a review conference at which Corps personnel 
    and the applicant, authorized agent, and/or consultant may meet with 
    the Division RO to provide clarification of information in the 
    administrative record. The record may not, however, be supplemented by 
    new data since this would constitute an amended application that may 
    initiate a new public interest review rather than an appeal of the 
    existing record and decision. Further, in reviewing technical issues, 
    Division Engineers will not substitute their judgment for that of the 
    District Engineers unless the issue falls within the ``clearly 
    erroneous or omission of material fact'' category.
        Under the proposed rule concerning permit denials, the Division 
    Engineer's determination will not constitute a final agency decision; 
    but would conclude with a finding that would be sent to the District 
    Engineer whose decision was being appealed. This finding would either: 
    (1) Determine that the appeal has no merit; or (2) determine that the 
    appeal has merit and notify the District Engineer of further analysis 
    and evaluation needed before the District Engineer can make the final 
    agency decision on the permit application.
        The re-opening of the public interest review and 404(b)(1) 
    Guidelines analysis may be a limited review, if the noted deficiencies 
    are narrow in scope and impact. The supplemental review process will 
    include notice to all parties who commented on or participated in the 
    original review. However, if the noted deficiencies are substantial in 
    scope and impact, the issuance of a new public notice, opportunity to 
    request a public hearing, and preparation of a supplemental 
    environmental analysis and decision document may be required (see 33 
    CFR 325.7). This would allow new interested parties an opportunity to 
    offer their views for the District Engineer's reconsideration of the 
    permit application.
        Upon conclusion of the re-evaluation, if the District Engineer 
    determines that the proposed action is contrary to the public interest 
    and/or 404(b)(1) Guidelines, the original denial will be reaffirmed and 
    the decision will not be subject to further administrative appeal. 
    Further challenge must be through the judicial process. If the re-
    evaluation results in a determination that a permit should be issued, 
    that decision will be based on a supplemental administrative record and 
    with the benefit of additional input from all interested parties. 
    Furthermore, the determination to issue a permit may be subject to the 
    404(q) elevation process, but is not open to further administrative 
    appeals.
        Additionally, as discussed above, an appeal could be initiated for 
    a decision to issue a permit with special condition(s) that the 
    applicant finds unacceptable, and thus refuses to accept the permit. 
    However, if the administrative appeal of a permit decision was sought 
    by an applicant because of special conditions the applicant considered 
    unacceptable, the applicant is appealing the permit decision, not just 
    the special condition(s) of the proffered permit. The District 
    Engineer, when evaluating the permit decision for a proffered permit 
    that was not accepted by an applicant, will decide, upon further 
    evaluation, either to: (1) Reaffirm the decision to deny the permit; or 
    (2) issue the permit with special condition(s) different from those in 
    the original proffered decision. Appellants must be aware, therefore, 
    that the rejection of a proffered permit would not result in a simple 
    ``yes'' or ``no'' on the merits of a special condition(s). Rather, the 
    entire decision making process is opened for consideration of public 
    interest review criteria and 404(b)(1) Guidelines analysis by the DE in 
    reaching a final permit decision. Furthermore, a decision that has 
    undergone a reevaluation as directed by the Division Engineer can not 
    be further administratively appealed.
        Based on past regulatory program experience, it is reasonable to 
    estimate that annually 250 permit denials may be appealed under the 
    proposed rule. To accommodate this increased work effort, it would be 
    necessary to establish one to two RO positions in each of the ten Corps 
    Divisions to implement the administrative appeals process. It is 
    estimated that the resulting annual expense would be $2.5 million. 
    These costs include:
    
    20 ROs.....................................................   $1,840,000
    RO's travel & per diem/per appeal ($750 x 250).............      187,500
    Additional travel & per diem for Corps staff ($400 x 250)..      100,000
    supplemental Public Notice and Additional District Office               
     Review of Appeals (250 cases at $1,500)...................      375,000
                                                                ------------
        Total..................................................    2,502,500
                                                                            
    
    V. Third Party Appeals
    
        An ideal administrative appeal regulation for some people would be 
    one that allows all third parties to request an administrative appeal 
    of jurisdictional determinations and permit decisions. We understand 
    this position. However, such a program would be much more expensive and 
    require many more people to administer than that contemplated in this 
    proposal. Congress is considering appropriating a small budget increase 
    to allow the Corps to implement the proposed administrative appeal 
    process. It appears unlikely that Congress would fund the costs of an 
    expanded administrative appeals process, the benefits of which we do 
    not believe would justify the costs. While this regulation would not 
    allow third party appeals, it does provide for third party input in 
    permit denial cases where the District Engineer is reconsidering the 
    permit denial, as discussed below.
        Under the proposed rule, the applicant or the landowner, is the 
    only individual who may initiate an appeal of a formal jurisdictional 
    determination. In proposing this rule the Corps recognizes that there 
    may be other parties having an interest in a jurisdictional 
    determination. However, these interests are not the primary property 
    interests. Third party appeals related to such secondary property 
    interests could raise a number of property rights issues. Third party 
    involvement would reduce the efficiency of the process since third 
    parties are not likely to readily obtain the permission of landowners 
    to enter onto the property to conduct the technical, on-site surveys 
    that are critical to validate jurisdictional determinations, including 
    wetland delineations. Further, if the Corps determines that an area is 
    a geographic area subject to Corps regulatory authority, substantial 
    development proposals would likely trigger permit requirements and 
    provide third parties with an opportunity to participate through the 
    public interest review process.
        Under the proposed rule, the applicant is the only individual who 
    may initiate an appeal of a permit decision. However, full 
    participation by third parties is provided for in the appeal process if 
    the Division Engineer's determination is to refer the file back to the 
    District Engineer for re-evaluation. It was determined that it was not 
    necessary to provide for third party participation in the RO's permit 
    review conference, since third parties had an ample opportunity to 
    provide comments 
    
    [[Page 37285]]
    or concerns and submit substantive evidence during the public notice 
    phase of the permit evaluation process and again to provide comments if 
    the District Engineer is reconsidering the application because the 
    Division Engineer determines that the appeal had merit. Further, the 
    President's plan did not contemplate nor recommend the administrative 
    appeal of permit issuances. These decisions are considered valid 
    reflections of the public interest since they have already undergone 
    rigorous review, with input from numerous agencies and the general 
    public, and these decisions may be elevated by some Federal agencies 
    pursuant to Section 404(q) Memorandum of Agreement. Expanding the 
    appeal process to permit issuance decisions would also significantly 
    expand the potential number of appeals since the Corps annually issues 
    approximately 10,000 standard permits nationwide. Opening these 
    decisions to administrative challenge would have severe adverse effects 
    on the overall efficiency and cost of the regulatory program. 
    Furthermore, judicial review is available to affected third parties.
    VI. Unauthorized Activities
    
        As a general rule, jurisdictional determinations made in the 
    context of an enforcement case can not be administratively appealed 
    under this rule. We are concerned that the public interest in 
    expeditious and efficient resolution of an enforcement action should 
    not ordinarily be delayed by administrative appeals of jurisdictional 
    determinations made for purposes of that enforcement action. However, 
    the District Engineer, in his or her discretion, is authorized by this 
    rule to make exceptions to this general rule, and to allow the 
    administrative appeal of a jurisdiction determination made in the 
    context of an enforcement action if the District Engineer believes that 
    the interests of justice, fairness, and administrative efficiency would 
    be served thereby.
        In certain cases involving unauthorized activities, the Corps will 
    afford the responsible party the opportunity to apply for an after-the-
    fact permit. In many instances this approach obviates the need for a 
    formal enforcement action and expedites the restoration of the affected 
    wetland. The use of this after-the-fact permit approach can, however, 
    be affected by statute of limitations complications. Further, engaging 
    in an Administrative Appeal regarding an activity involving an 
    enforcement case might raise issues regarding application of Statute of 
    Limitations with respect to potential enforcement actions.
        Consequently, we propose to amend 33 CFR 326.3(e) to include a new 
    subparagraph (v). This new provision would require those parties 
    alleged to have engaged in an unauthorized activity to sign a statute 
    of limitations tolling agreement prior to filing an after-the-fact 
    permit application. Subsequent to acceptance of an after-the-fact 
    permit application by the Corps, an applicant may appeal a jurisdiction 
    determination and/or a denial of an after-the-fact permit. Such tolling 
    agreement would state that, in exchange for the Corps' considering the 
    appeal of a jurisdictional determination or the after-the-fact permit 
    application, or both, the party would agree that the statute of 
    limitations would be tolled until one year after the final action has 
    been taken on a jurisdictional determination appeal or the after-the-
    fact permit decision has been made (whichever is later), or one year 
    after any succeeding administrative appeal of an after-the-fact permit 
    decision has been finalized. Such tolling agreement would also state 
    that permit applicants will not raise a statute of limitations defense 
    in any subsequent enforcement action brought by the United States, with 
    respect to the unauthorized activity for the period of time in which 
    the statute of limitations is tolled. A party should only be required 
    to sign one tolling agreement regardless of the number of appeals 
    sought involving a single unauthorized activity. For example, a party 
    sings a tolling agreement to appeal a jurisdictional determination, 
    then applies for and receives an after-the-fact permit decision, and 
    then appeals the permit decision, the tolling agreement will remain in 
    effect until one year after the date that the after-the-fact permit 
    decision has been made final.
        Although we are planning to consolidate and propose revisions to 
    the Corps Regulatory Program Regulations at 33 CFR Parts 320-330, 
    within the next year, it is important that we make this minor amendment 
    in conjunction with this proposed rule on administrative appeals to 
    avoid creating undue confusion among the regulated community. This 
    confusion would stem from the fact that, even if we were to make the 
    proposed change to subparagraph (v), we would still have to include a 
    provision in the administrative appeals regulation requiring that every 
    applicant who applies for an after-the-fact permit prior to the 
    effective date of subparagraph (v), sign a tolling agreement prior to 
    filing an administrative appeal. This provision is necessary to address 
    those parties that apply for after-the-fact permits between now and the 
    effective date of subparagraph (v). If we were to wait until we revise 
    33 CFR Parts 320-330 to propose subparagraph (v), then this group of 
    after-the-fact permit applicants would only increase in number, further 
    contributing to the confusion that this provision could create.
    
    VII. Exhaustion of Administrative Remedies
    
        In Darby v. Cisneros, 113 S.Ct. 2539 (1993), the Supreme Court 
    recently held that persons subject to Federal agency regulation need 
    not exhaust administrative remedies before filing a lawsuit in Federal 
    District Court, unless a statutory or regulatory provision requires 
    such exhaustion. In response to Darby v. Cisneros, the Corps is 
    including Sec. 331.12 in this proposed rule to make it explicit that 
    persons dissatisfied with jurisdictional determinations or permit 
    decisions must avail themselves of the administrative appeals 
    process(es) proposed in this rule and received a final agency decision 
    prior to seeking redress in the Federal courts.
    VIII. Application of Rule to Prior Regulatory Decisions
    
        We are proposing that when the final administrative appeals process 
    is adopted that certain actions completed prior to the effective date 
    of the final regulation be allowed to be appealed in accordance with 
    this regulation. We believe that it would be appropriate to accept 
    administrative appeals of final jurisdictional determinations and 
    permit denials, that were transmitted in writing to an affected party 
    one year prior to the effective date of the final regulation, if the 
    affected party submits a request for appeal (RFA) to the Corps within 
    60 days of the effective date of the final rule.
        It should be noted by potential appellants of prior regulatory 
    decisions that the criteria for appeal must be met, or the request for 
    appeal will be rejected by the Corps. Additionally, if large numbers of 
    RFAs are received under this provision, an RO may delay the initiation 
    of processing an RFA for up to 6 months after the implementation date 
    of these regulations, if necessary.
    
    IX. Environmental Documentation
    
        We have made a preliminary determination that this action does not 
    constitute a major Federal action significantly affecting the quality 
    of the human environment, because the Corps prepares appropriate 
    environmental documentation, including an Environmental Impact 
    Statement (EIS) 
    
    [[Page 37286]]
    when required, for all permit decisions. Furthermore, wetland 
    delineations and jurisdictional determinations do not result in an 
    applicant or landowner being able to conduct work in waters of the 
    United States without a required permit authorization, but only 
    describe and determine the scope and extent of waters of the United 
    States under Corps regulatory jurisdiction based on technical criteria 
    that is established separately. Therefore, environmental documentation 
    under the National Environmental Policy Act (NEPA) is not required for 
    those actions. Moreover, this proposed regulation for administrative 
    appeals only adds an optional one-level review to permit denials, to 
    insure that applicable regulations, policies, practices, and procedures 
    (including the preparation of appropriate environmental documentation) 
    have been appropriately followed.
    
    X. Executive Order 12291 and the Regulatory Flexibility Act
    
        The Corps does not believe that this proposed regulation meets the 
    definition of a major rule under Executive Order 12291, and we 
    therefore do not believe a regulatory impact analysis is required. This 
    proposed rule should reduce the burden on the public by offering an 
    administrative appeal process for certain Corps decisions, and in many 
    instances, should avoid the more time consuming and costly alternative 
    of appealing a decision under judicial review.
        We also do not believe that this proposed regulation will have a 
    significant impact on a substantial number of small entities pursuant 
    to Section 605(b) of the Regulatory Flexibility Act of 1980, because 
    this proposed regulation only creates an optional review of certain 
    decisions through an administrative appeal process. The proposed rule 
    should be less time consuming and less costly to permit applicants who 
    want to appeal a decision with which they disagree, but currently can 
    only seek an appeal through the judicial system. Furthermore, since the 
    administrative appeal would be optional at the applicant's or 
    landowner's discretion, we have minimized the potential of any 
    increased regulatory burden on small entities. If an applicant or 
    landowner chooses to forego an appeal, the net effect of the proposed 
    regulation would be zero.
    
        Note 1.--The term ``he'' and its derivatives used in these 
    regulations are generic and should be considered as applying to both 
    male and female.
    
    List of Subjects
    
    33 CFR Part 320
    
        Environmental protection, Intergovernmental relations, Navigation, 
    Water pollution control, Waterways.
    
    33 CFR Part 326
    
        Investigations, Intergovernmental relations, Law enforcement, 
    Navigation, Water pollution control, Waterways.
    
    33 CFR Part 331
    
        Administrative appeal, Navigation, Waterways, Environmental 
    protection, Water pollution control.
    John H. Zirschky,
    Acting Assistant Secretary of the Army (Civil Works), Department of the 
    Army.
    
        Accordingly, 33 CFR Parts 320 and 326 are proposed to be amended 
    and 33 CFR Part 331 is proposed to be added as follows:
    
    PART 320--GENERAL REGULATORY POLICIES
    
        1. The authority citation for Part 320 continues to read as 
    follows:
    
        Authority: 33 U.S.C. 401 et seq.; 33 U.S.C. 1344; 33 U.S.C. 
    1413.
    
        2. Section 320.1(a)(2) is amended by revising the final sentence to 
    read as set forth below.
    
    
    Sec. 320.1  Purpose and scope.
    
    * * * * *
        (a)(2) * * * A district engineer decision to deny a permit or a 
    Corps jurisdictional determination is subject to an administrative 
    appeal by the landowner or permit applicant in accordance with the 
    procedures and authorities contained in 33 CFR Part 331. Such 
    administrative appeal must meet the criteria in 33 CFR 331.5; otherwise 
    there is no administrative appeal of that decision. An applicant or 
    landowner must exhaust any administrative appeal available pursuant to 
    the 33 CFR Part 331 and receive a final agency decision prior to filing 
    suit in Federal District Court.
    
    PART 326--ENFORCEMENT
    
        1. The authority citation for Part 326 continues to read as 
    follows:
    
        Authority: 33 U.S.C. 401 et seq.; 33 U.S.C. 1344; 33 U.S.C. 
    1413.
    
        2. Section 326.3(e) is amended by adding a new paragraph (e)(1)(v) 
    to read as follows:
    
    
    Sec. 326.3  Unauthorized activities.
    
    * * * * *
        (e) * * *
        (1) * * *
        (v) No permit application will be accepted unless and until the 
    applicant has furnished a signed statute of limitations tolling 
    agreement to the district engineer. A single statute of limitations 
    tolling agreement will be prepared for each unauthorized activity. Such 
    agreement will state that in exchange for the Corps' acceptance of any 
    after-the-fact permit application and/or any administrative appeal 
    associated with the unauthorized activity, the responsible party agrees 
    that the statute of limitations will be tolled until one year after the 
    final after-the-fact permit decision or, if there is an administrative 
    appeal, one year after the final agency decision as defined at 33 CFR 
    331.9, which ever is later.
        Part 331 is added to read as follows:
    
    PART 331--ADMINISTRATIVE APPEALS PROCESS
    
    Sec.
    331.1  Purpose and policy.
    331.2  Definitions.
    331.3  Review officers.
    331.4  Notification of appealable actions.
    331.5  Criteria.
    331.6  Filing appeals.
    331.7  Review procedures.
    331.8  Timeframes for appeals decisions.
    331.9  Final appeals decisions.
    331.10  Final agency decisions.
    331.11  Unauthorized activities.
    331.12  Exhaustion of administrative remedies.
    
        Authority: 33 U.S.C. 401 et seq., 1344, and 1413.
    
    
    Sec. 331.1  Purpose and policy.
    
        (a) General. The purpose of this regulation is to establish 
    administrative appeals policies and procedures for final Corps of 
    Engineers geographic jurisdictional determinations and permit denials 
    with prejudice. The appeals process will allow landowners and permit 
    applicants to pursue an administrative appeal of a final Corps of 
    Engineers decision or determination with which they disagree. The basis 
    for an appeal and the specific policies and procedures of the appeals 
    process are described in the following sections. It shall be the policy 
    of the Corps of Engineers to promote and maintain an administrative 
    appeals process that is independent and objective, fair and equitable, 
    and efficient and cost-effective.
        (b) Jurisdictional determinations. Under the Corps of Engineers 
    regulatory program, landowners and permit applicants may request, and/
    or receive, final Corps jurisdictional determinations to determine the 
    presence and extent of wetlands, scope and extent of other waters of 
    the United States, and whether the property or 
    
    [[Page 37287]]
    waterbody is subject to Department of the Army jurisdiction. Therefore, 
    such geographic jurisdictional determinations are vitally important 
    decisions to landowners and permit applicants. These decisions affect 
    whether or not the Corps has regulatory jurisdiction, and whether a 
    permit is required for work involving regulated discharges and 
    activities. The administrative appeal process shall apply to these 
    decisions.
        (c) Permit denials. Permit decisions that result in denial with 
    prejudice may be appealed under the administrative appeal process.
    
    
    Sec. 331.2  Definitions.
    
        The terms and definitions found in 33 CFR Parts 320 through 330 are 
    applicable to this regulation. In addition, the following terms are 
    defined for the purposes of this Part:
        (a) Jurisdictional determination means a written Corps 
    determination that a wetland (as determined and defined by a wetland 
    delineation) and/or waterbody is subject to regulatory jurisdiction 
    under section 404 of the Clean Water Act or a written Corps 
    determination that a waterbody is subject to regulatory jurisdiction 
    under sections 9 and 10 of the Rivers and Harbors Act of 1899. 
    Additionally, the term includes a written reverification of expired 
    jurisdictional determinations and a written reverification of 
    jurisdictional determinations where new information has become 
    available that may affect the previous written determination. For 
    example, such geographic jurisdictional determinations may include, but 
    are not limited to, one or more of the following determinations: 
    presence/absence of wetlands, wetland/upland boundary, ordinary high 
    water mark, mean high water mark, high tide line, interstate commerce 
    nexus for isolated waters, and adjacency of wetlands to a waterbody. 
    All jurisdictional determinations will be in writing and will be 
    identified as either preliminary or final jurisdictional 
    determinations. Some office, or preliminary, jurisdictional 
    determinations are provided to applicants or landowners, generally to 
    indicate the presence or absence of wetlands or waterbodies. They are 
    advisory in nature and may not be appealed. Final jurisdictional 
    determinations will be provided in writing and will be certified as a 
    final jurisdictional determination and may be appealed.
        (b) Wetland delineation means a Corps of Engineers (Corps) 
    delineation, or verification of a delineation submitted by an applicant 
    or consultant, indicating the size and boundaries of a subject property 
    that is a wetland in accordance with the current Federal manual for 
    identifying and delineating wetlands (FDM). Additionally, the term 
    includes reverification of expired wetland delineations and 
    reverification of wetland delineations where new information has become 
    available that may affect the final delineation.
        (c) Permit denial means a written Corps denial with prejudice (see 
    33 CFR 320.4(j)) of an individual standard permit as defined in 33 CFR 
    325.5(b). Permit denials also include cases where a proffered 
    individual permit is refused by the applicant in writing because the 
    applicant objects to the terms or special conditions of the proffered 
    permit and the permit is subsequently denied with prejudice by the 
    District Engineer. If the applicant refuses a proffered general permit, 
    the District Engineer will not deny a permit for the proposed project 
    based on that refusal. The applicant must apply for an individual 
    permit. If that individual permit is subsequently denied with 
    prejudice, then the applicant may request an appeal of that denial.
        (d) Appealable action means a written final jurisdictional 
    determination or permit denial as those terms are defined in paragraphs 
    (a) and (c) of this section.
        (e) Affected party means a permit applicant or landowner (i.e., an 
    individual who has an identifiable and substantial legal interest in 
    the property) that has received a final jurisdictional determination, 
    or permit denial as those terms are defined in paragraphs (a) and (c) 
    of this section.
        (f) Appellant means an affected party who has filed an appeal under 
    the criteria and procedures of these regulations.
        (g) Review officer (RO) means the Corps of Engineers agency 
    official responsible for the review and final decision on the merits of 
    an appeal or review and recommendation to the Corps agency official 
    making the final decision on the merits of an appeal. The RO, and/or 
    the appeals decision-maker, is the District Engineer, or the Division 
    Engineer as appropriate, or their designee(s).
        (h) Notification of appeals process (NAP) means the information 
    fact sheet which explains the administrative appeals process, criteria, 
    and procedures. The NAP will accompany all final wetland delineations, 
    jurisdictional determinations, and permit denials, as these terms are 
    defined herein.
        (i) Request for appeal (RFA) means the affected party's official 
    request to appeal an appealable action with which he disagrees. The RFA 
    will include required information to identify the affected party, 
    proposed project, reason(s) for the appeal, and any supporting data and 
    information. The format and required information of the RFA will be 
    provided to the affected party at the time of notification of appeals 
    process. The affected party initiates the administrative appeals 
    process by completing and returning the RFA to the appropriate Corps of 
    Engineers office.
    
    
    Sec. 331.3  Review officers.
    
        (a) Authority. The District Engineer, or the Division Engineer as 
    appropriate, has the authority and responsibility for administering a 
    fair, reasonable, and effective administrative appeal process. The 
    District Engineer, or the Division Engineer as appropriate, may act as 
    the RO or may delegate, either generically or on a case-by-case basis, 
    any authority or responsibility described in this Part as that of the 
    RO. However, the District Engineer, or the Division Engineer as 
    appropriate, may not delegate any authority or responsibility described 
    in this Part as that of the District Engineer, or the Division 
    Engineer, respectively. Regardless of any delegation of RO authority or 
    responsibility, the District Engineer or the Division Engineer as 
    appropriate, retains overall responsibility for the administrative 
    appeal process.
        (1) Jurisdiction determinations. The District and Division ROs have 
    the authority to make a decision on the merits of the appeal. 
    Furthermore, the District RO has the discretion to make a new 
    jurisdiction determination.
        (2) Permits denials. The RO will prepare an analysis and 
    recommendation for the Division Engineer. The Division Engineer has the 
    authority to make the final decision on the merits of the appeal. Under 
    the appeal process, neither the RO nor the Division Engineer has the 
    authority to make a final decision to issue or deny any particular 
    permit. The authority to issue or deny permits remains with the 
    District Engineer. However, the Division Engineer may exercise the 
    authority at Sec. 325.8(c) to elevate the permit case and then may make 
    the final permit decision.
        (b) General. (1) Independence. The ROs shall be located in the 
    Corps Division and District regulatory offices, unless specifically 
    appointed as described in paragraphs (b), (c) and (d) of this section. 
    The ROs will not perform or have been involved with the preparation, 
    review, or decision making of the action being appealed. During the 
    appeal process, the ROs shall maintain independence and objectivity in 
    their 
    
    [[Page 37288]]
    review of an appeal case and when determining the merits of the appeal.
        (2) Review. The RO will conduct an independent analysis of the 
    existing administrative record to ensure that the district's decision 
    complies with legal, regulatory, and policy requirements, that 
    omissions of material facts have not occurred, and that the record is 
    sufficient to support conclusions and the ultimate decision. The 
    District RO has the discretion to gather additional information when 
    deemed necessary. When reviewing technical issues, Division RO's shall 
    not substitute their judgment for that of the Corps district unless the 
    reviewed decision was clearly erroneous or omitted a material fact. An 
    RO who lacks specific expertise with regard to a specific appealed 
    issue will obtain the assistance of another RO or other recognized 
    expert from an office outside the Regulatory Branch or from a District 
    other than the District where the appeal was initiated.
        (c) Jurisdictional determinations. (1) District RO. The Corps 
    district RO shall be, or have the support of, a recognized expert with 
    extensive experience in conducting and reviewing wetland delineations 
    and performing and reviewing jurisdictional determinations. The 
    district RO shall report directly to the Regulatory Branch Chief. This 
    arrangement will insure that the district RO is removed from day-to-day 
    involvement in routine jurisdictional determinations made by Regulatory 
    Branch project managers, unit chiefs, and section chiefs. For any case 
    where the jurisdictional determination was made by the Regulatory 
    Branch Chief or higher authority, or the individual(s) who normally 
    acts as the district RO has participated in the decision or otherwise 
    advised the decision-maker, or at the District Engineer's discretion, 
    the District Engineer or a Corps official at least one level higher 
    than the decision-maker shall appoint a qualified independent RO to 
    conduct the appeal process.
        (2) Division RO. The division RO responsible for appeals of a 
    district RO's decision shall generally be the same RO(s) that is 
    responsible for appeals of permit denials described in paragraph (d) of 
    the section.
        (d) Permit denials. The ROs responsible for appeals involving 
    permit denials shall be officials in Division regulatory offices with 
    extensive knowledge of all aspects of the Corps regulatory program. For 
    any case where the permit decision was made by the Division Engineer or 
    higher authority, an agency official at least one level higher than the 
    decision-maker shall appoint a qualified independent RO to conduct the 
    appeal process.
    
    
    Sec. 331.4  Notification of appealable actions.
    
        Every final jurisdictional determination and permit denial must be 
    provided in writing to the affected party. For permit denials, the 
    notification will also include a copy of the decision document. 
    Additionally, an affected party has the right to review and obtain 
    copies of the administrative record. Each notification letter will 
    include a NAP and an RFA.
    
    
    Sec. 331.5  Criteria.
    
        (a) Criteria for appeal. The reason(s) or basis(es) for requesting 
    the appeal must be specifically stated and must be more than a simple 
    request for appeal because the affected party did not like the 
    decision. Examples of reasons or bases for appeals include, but are not 
    limited to, the following: a procedural error, an incorrect application 
    of policy or regulations, omission of material fact, incorrect 
    application of Federal Wetland delineation manual, lack of interstate 
    commerce nexus, incorrect application of 404(b)(1) Guidelines under the 
    Clean Water Act, or use of incorrect data.
        (b) Actions not appealable. An action or decision is not subject to 
    an administrative appeal under these regulations if it falls into one 
    or more of the following categories:
        (1) a jurisdictional determination associated with an individual 
    permit (including an individual permit with special conditions), or the 
    permit itself, where the permit has been accepted and signed by the 
    permittee;
        (2) any site specific matter that has been the subject of a final 
    judicial decision; or
        (3) a final agency decision that has resulted from additional 
    analysis and evaluation, as directed by a final appeal decision.
        (4) any matter than can not be controlled or changed by the Corps 
    decision-maker (e.g., The requirement of a binding statute, regulation, 
    state Section 401 water quality certification, etc.)
    
    
    Sec. 331.6  Filing appeals.
    
        An affected party must file an RFA that is received by the Corps 
    within 60 days from the date of the letter notifying the affected party 
    of the appealable action. In any case where work is authorized to 
    commence prior to the end of this 60 day period, either by general or 
    individual permit, and the permittee wishes to request an appeal, the 
    appeal must be received by the Corps and the appeal process concluded 
    prior to the commencement of any work in the area identified as waters 
    of the United States, and prior to any work that could alter the 
    hydrology of waters of the United States. Additionally, the affected 
    party must grant a right of entry to the RO to inspect the property and 
    to conduct appropriate field tests and sampling that the RO determines 
    may be necessary.
    
    
    Sec. 331.7  Review procedures.
    
        (a) General. (1) Jurisdiction determinations. The administrative 
    appeals process for jurisdiction determinations is a two level appeal 
    process. The first level appeal is to a specialist review officer in a 
    Corps district office. The landowner will be able to present 
    information to the RO, or the RO may obtain information, for the 
    administrative record. The second level appeal is to an RO in a Corps 
    Division office. This review will be limited to the administrative 
    record developed during the first level appeal, which would include any 
    information provided by the landowner as part of that record.
        (2) Permit denials. The administrative appeals process for permit 
    denials is a one level appeal process to the Division Engineer. The 
    appeals process will be conducted by a RO in the Division office. The 
    division RO will prepare the record, an analysis, and a recommendation 
    for the Division Engineer. The Division Engineer may participate in the 
    appeals process as the Division Engineer deems appropriate. The 
    Division Engineer will make the decision on the merits of the appeal.
        (b) Acceptance of the request for appeal. Within 30 days after 
    receipt of the RFA, the RO shall review the appellant's RFA and the 
    administrative record. If, within this 30 day period, the RO determines 
    that the RFA does not meet the criteria for appeal (see Sec. 331.5), 
    the RO will notify the appellant in writing by certified mail of this 
    determination and the reason(s) why the appeal failed to meet 
    applicable criteria. No further administrative appeal is available, 
    unless within 30 days from his receipt of the letter refusing his 
    appeal, the appellant can refute the reason(s) for failing the criteria 
    for appeal. The appellant may submit a revised RFA, if the reason(s) 
    for failing applicable criteria have been remedied and the revised RFA 
    is received by the Corps within 30 days from the date the appellant 
    received notification that the original RFA failed to meet the criteria 
    for appeal. If the RO determines that the revised RFA still does not 
    meet the criteria for appeal, the RO will notify the appellant in 
    writing of that fact by certified mail within 30 days advising 
    
    [[Page 37289]]
    the appellant that the matter can not be appealed.
        (c) Site visits. If within 30 days from receipt of the RFA the RO 
    determines that additional field data and sampling are necessary, or if 
    the appellant requests a site visit, the RO will conduct a site visit. 
    The RO has the discretion to conduct a site visit, except when the 
    applicant requests one, in which case a site visit shall be conducted. 
    The appellant, or the appellant's authorized agent, must participate in 
    the site visit if he has requested that one be conducted. If a site 
    visit is conducted, the RO will schedule the completion of the site 
    visit at the earliest practicable time. When practicable the site visit 
    should be scheduled in conjunction with the review conference or 
    meeting, if one is held. Site visits will not be conducted by Division 
    ROs for appeals of District RO decisions on jurisdiction 
    determinations.
        (d) Meetings and conferences--(1) Jurisdictional determinations 
    meetings. The District RO may schedule a meeting with the appellant, 
    his or her authorized agent, or both, and appropriate Corps regulatory 
    personnel to review and discuss issues directly related to the appeal. 
    Additionally, the appellant may request that such a review meeting be 
    held. However, the final decision on whether to conduct a review 
    meeting shall be at the discretion of the District RO. If a meeting is 
    held, the appellant will bear his or her own costs associated with 
    necessary arrangements, exhibits, travel, and representatives. The 
    Division RO will not conduct any jurisdictional determination meetings 
    or discussions with any party, including the District RO.
        (2) Permit denial conferences. An appeal review conference 
    (conference) will be held for every permit denial appeal, unless the RO 
    and the appellant mutually agree to forego a conference. When held, the 
    conference will take place within 60 days of receipt of an acceptable 
    RFA, unless the RO determines that unforeseen or unusual circumstances 
    require scheduling the conference for a later date. The conference will 
    be governed by the following:
        (i) Notification. The RO will set a date, time, and location for 
    the conference and notify in writing the appellant and the Corps 
    District regulatory office within 30 days of receipt of the RFA.
        (ii) Facilities. The conference will be held at a location that has 
    suitable facilities and that is reasonably convenient to the appellant, 
    preferably in the proximity of the project site. Where public 
    facilities are available at no expense, these facilities are preferred. 
    If a free facility is not available, the charges for the facility will 
    be borne by the Corps District regulatory office.
        (iii) Participants. The RO, appellant, the appellant's authorized 
    agent or consultant, and the Corps District staff are authorized 
    participants in the conference. The Division Engineer and/or the 
    District Engineer may choose to attend or not to attend at their 
    discretion. If the appellant does not attend the conference, the 
    appeals process is terminated with prejudice, unless the RO excuses the 
    appellant for a justifiable reason. Furthermore, should the process be 
    terminated with prejudice, the original permit denial decision shall be 
    sustained.
        (iv) The role of the RO. The RO shall be in charge of conducting 
    the conference. He shall open the conference with a summary of the 
    policies and procedures for conducting the conference as described in 
    these regulations. The RO's responsibilities are to conduct a fair and 
    impartial conference, to hear and fully consider all relevant issues 
    and facts, and to clarify any matters necessary to make a final 
    determination on the merits of the appeal.
        (v) Appellant rights. The appellant, or the appellant's authorized 
    agent, will be given a reasonable opportunity to present the 
    appellant's views regarding the subject permit denial.
        (vi) Subject matter. The conference will be limited to matters 
    contained within the existing administrative record. The RO may ask the 
    Corps District representatives or the appellant to respond regarding 
    particular matters of the relevant record, regarding the appellant's 
    assertions or exhibits, or to clarify elements in the administrative 
    record. New issues may not be raised or discussed.
        (vii) Testimony and transcripts. There will be no sworn testimony 
    and no cross examination during the conference. The RO may tape-record 
    and/or have a transcript prepared of the conference. The tape and/or 
    transcript is for use by the RO to review the proceeding of the 
    conference and to assist in the preparation of the RO's findings. A 
    tape-recording or transcript is optional, at the RO's discretion. 
    However, if none is planned or requested by the RO, the appellant may 
    contract and bear the expense for such a record if so desired. Any tape 
    or transcript would become part of the administrative record of the 
    appeal process and must be made available to all parties upon request.
        (viii) Appellant costs. The appellant will bear his own costs 
    associated with necessary arrangements, exhibits, travel, and 
    consultants.
        (e) The appeal of a District jurisdictional determination to the 
    Division office will be limited to the administrative record. The RFA 
    will be accepted upon receipt by the appropriate Division office. The 
    Division RO will base the appeal decision on the administrative record 
    provided by the District office. Therefore, the appellant must provide 
    to the District office all relevant information to be entered into the 
    administrative record during the District jurisdictional determination 
    appeal. The Division RO will not meet or have conversations with any 
    interested party, including the District RO or Corps District 
    personnel, the appellant or the appellant's agent, regarding this 
    matter.
    
    
    Sec. 331.8  Timeframes for final appeals decisions.
    
        The Corps will make a final decision on the merits of the appeal at 
    the earliest practicable time in accordance with the time limits set 
    forth in the following paragraphs.
        (a) Jurisdictional determination appeals.
        (1) District level appeal.
        (i) Normal timeframe. If the RFA meets the criteria for appeal and 
    the District RO determines that a site visit is not necessary, the 
    District RO, or designated Corps official, will make a final decision 
    on the merits of the appeal within 60 days from receipt of the RFA, or 
    the revised RFA, except as provided in paragraphs (a)(1)(ii) and 
    (a)(1)(iii) of this section.
        (ii) Extenuating circumstances. If extenuating circumstances are 
    present at the site that preclude the appellant and/or the District RO 
    from conducting the site visit or gathering necessary information, the 
    District RO may grant a time extension. Examples of extenuating 
    circumstances may include seasonal hydrology conditions, winter 
    weather, or disturbed site conditions. However, in no case shall the 
    data collection or site visit period extend the total appeals review 
    process beyond twelve months from the date of receipt of the RFA. If a 
    time extension is granted for information and data gathering, the 
    District RO will notify the appellant in writing. The District RO will 
    complete the appeals review and make a final decision within 30 days of 
    the site visit or data collection time extension period.
        (iii) New information. During the course of the appeals review, the 
    appellant may present new information not available at the time the 
    appeal was submitted. The District RO, at the 
    
    [[Page 37290]]
    District RO's discretion, may extend the time period for making the 
    final decision to 30 days beyond the date of receipt of additional 
    information submitted by the appellant, unless conditions as described 
    in paragraph (a)(1)(ii) of this section exist.
        (2) Division level appeal. The Division RO, or designated Corps 
    official, will make a final decision on the merits of the appeal within 
    60 days of receipt of the RFA.
        (b) Permit denials. The Division Engineer will make a final 
    decision on the merits of the appeal within 90 days of receipt of the 
    RFA, or the revised RFA.
    
    
    Sec. 331.9  Final appeals decisions.
    
        (a) In accordance with the authorities contained in Sec. 331.3(b), 
    the Corps appeal decision will either:
        (1) determine that the appeal has no merit;
        (2) determine that the appeal has merit; or
        (3) for jurisdictional determinations only, at the District level 
    the RO, or designated Corps official, may determine that the appeal has 
    merit and revise the jurisdictional determination.
        (b) The Corps will document the appeal decision, addressing the 
    conclusions reached on the merits of the appellant's appeal. If the 
    Corps determines that the appeal has merit (paragraph (b)(2) above), 
    the RO will notify the district of further analysis and evaluation 
    needed before the district can make a final agency decision. The RO 
    will notify the appellant and the appropriate Corps office of the final 
    appeal decision on the merits of the appeal in writing. The appellant 
    will be notified by certified mail.
        (c) The final appeal decision of the Division RO, the designated 
    Corps official, or the Division Engineer, as appropriate, concludes the 
    administrative appeal process and will be included in the 
    administrative records. There is no further administrative appeal of 
    the appealable action.
    
    
    Sec. 331.10  Final agency decisions.
    
        (a) Jurisdictional Determinations. The final agency decision on a 
    jurisdictional determination that has been appealed will be made by one 
    of the following methods:
        (1) If the Division RO, or designated Corps official, determines 
    that the appeal has no merit, then the final agency decision is the 
    original jurisdiction determination or a District RO, or designated 
    Corps official, corrected jurisdiction determination, as appropriate; 
    or
        (2) If the Division RO, or designated Corps official, determines 
    that the appeal has merit, the Division RO, or designated Corps 
    official, will provide direction to the original decision-maker or the 
    District RO, as appropriate, to complete the administrative record and/
    or further analyze or evaluate specific issues. Subsequently, the final 
    agency decision is the final jurisdictional determination made pursuant 
    to the Division RO's, or designated Corps official's appeal decision; 
    or
        (3) If the appellant accepts the agency decision based on the 
    District RO's, or designated Corps official's appeal decision (see 
    Sec. 331.9) or does not appeal to the Division Engineer, then that 
    decision becomes the final agency decision. However, in such cases, the 
    appellant has acted without exhausting all the administrative remedies 
    under this rule. (See Sec. 331.12).
        (b) Permit denials. The final agency decision on a permit denial 
    that has been appealed will be made by one of the following methods:
        (1) If the Division Engineer determines that the appeal has no 
    merit, the final agency decision is the District Engineer's denial 
    decision; or
        (2) If the Division Engineer determines that the appeal has merit, 
    the Division Engineer will provide direction to the District Engineer 
    to complete the administrative record and/or further analyze or 
    evaluate specific issues. Subsequently, the final agency decision is 
    the District Engineer's final decision made pursuant to the Division 
    Engineer's appeal decision.
    
    
    Sec. 331.11  Unauthorized activities.
    
        Jurisdictional determinations and permit denials associated with 
    after-the-fact permit applications are appealable actions for the 
    purposes of these regulations. If the Corps accepts an after-the-fact 
    permit application, an administrative appeal of a jurisdictional 
    determination and/or a permit denial may be filed and processed in 
    accordance with these regulations subject to the provisions of 
    paragraphs (a), (b), and (c) of this section. An appeal of 
    jurisdictional determinations associated with unauthorized activities 
    will normally not be accepted unless the Corps accepts an after-the-
    fact permit application. However, in rare cases, the District Engineer 
    may accept an appeal of such a jurisdictional determination, if the 
    District Engineer determines that the interests of justice, fairness, 
    and administrative efficiency would be served thereby.
        (a) Initial corrective measures. If the District Engineer 
    determines that initial corrective measures are necessary pursuant to 
    33 CFR 326.3(d), an RFA for an appealable action will not be accepted 
    by the Corps, until the initial corrective measures have been 
    completed.
        (b) Penalties. If an affected party requests, under this Section, 
    an administrative appeal of an appealable action prior to the 
    resolution of the unauthorized activity and the RO determines that the 
    appeal has no merit, the responsible party remains subject to any 
    civil, criminal, and administrative penalties as provided by law. Any 
    penalty imposed, as determined in the appropriate forum by the 
    appropriate decision-maker, may also include in the calculation of 
    penalty the time period involving the appeal process.
        (c) Tolling of statute of limitations. The RFA associated with 
    unauthorized activities must include a signed statute of limitations 
    tolling agreement. (See 33 CFR 326.3(e)(1)(v).) No administrative 
    appeal will be accepted until such agreement is furnished to the 
    district engineer.
    
    
    Sec. 331.12  Exhaustion of administrative remedies.
    
        Applicants or landowners may not file a legal action in Federal 
    District Court challenging a jurisdiction determination or a permit 
    denial until after a final agency decision has been made on the permit 
    application (i.e., permit issuance or denial) and the appellant has 
    exhausted all applicable administrative remedies under this Part. If an 
    appellant is challenging a permit denial, the appellant exhausts all 
    administrative remedies when a final agency decision is made in 
    accordance with Sec. 331.10(b).
    Gregory D. Showalter,
    Army Federal Register Liaison Officer.
    [FR Doc. 95-17311 Filed 7-18-95; 8:45 am]
    BILLING CODE 3710-92-M
    
    

Document Information

Published:
07/19/1995
Department:
Engineers Corps
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
95-17311
Dates:
Comments must be received by September 5, 1995.
Pages:
37280-37290 (11 pages)
PDF File:
95-17311.pdf
CFR: (14)
33 CFR 320.1
33 CFR 326.3
33 CFR 331.1
33 CFR 331.2
33 CFR 331.3
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