South Carolina              
Administrative Law Court
Edgar A. Brown building 1205 Pendleton St., Suite 224 Columbia, SC 29201 Voice: (803) 734-0550

SC Administrative Law Court Decisions

CAPTION:
Plum Branch Yacht Club vs. DHEC

AGENCY:
South Carolina Department of Health and Environmental Control

PARTIES:
Petitioner:
Plum Branch Yacht Club

Respondent:
South Carolina Department of Health and Environmental Control
 
DOCKET NUMBER:
02-ALJ-07-0150-CC

APPEARANCES:
For the Petitioner: George C. Selfridge, Jr., Pro Se

For the Respondent: Samuel L. Finklea, III, Esquire
 

ORDERS:

conferred or necessarily implied for it to effectively fulfill the duties with which it is charged. City of Rock Hill v. South Carolina Department of Health and Environmental Control, 302 S. C. 161, 394 S. E. 2d 327 (1990).

11.When the legislature has expressly mandated a regulatory body to promulgate regulations to

govern the evaluation of permit applications, it must include in its regulations any tests it formulates and applies in the permit evaluation. Captain’s Quarters Motor Inn, Inc. v. South Carolina Coastal Council , 306 S.C. 488, 413 S.E.2d 13 (1991); Charleston Television, Inc. v. South Carolina Budget and Control Bd., 301 S. C. 468, 392 S. E. 2d 671 (1990).

12.The criteria for permitting are not required to be so specific as to be all inclusive in setting forth factors to be considered. However, factors must not be arbitrarily limited by unwritten internal agency policy. See Home Health Services, Inc. v. South Carolina Tax Commission, 312 S.C. 324, 440 S.E.2d 375 (1994); see also Captain’s Quarters Motor Inn, Inc. v. South Carolina Coastal Council, 306 S.C. 488, 413 S.E.2d 13 (1991).

13. S.C. Code Ann. § 1-23-10 (Supp. 2002) defines “regulation” as “each agency statement of

general public applicability that implements or prescribes law or policy or practice requirements of any agency.” Further, this statute provides that “policy or guidance issued by an agency other than in a regulation does not have the force or effect of law.”

Regulation 61-101--Water Quality Certification

14.S.C. Code Regs. § 61-101 (Supp. 2002) is captioned “Water Quality Certification.” Its

provisions contain procedures and policies for implementing the state water quality certification requirements of Section 401 of the Clean Water Act (“CWA”), 33 U.S.C. § 1341. This regulation provides that no Federal permit will be issued pursuant to Section 404 of the CWA, 33 U.S.C. § 1344, until the person has first been granted a state water quality certification and met the requirements of Section 401 of the CWA. The certification is called a Section 401 water quality certification or water quality certification.

15.If an activity requires a permit for the construction in State navigable waters pursuant

to applicable laws and regulations, the review for the water quality certification will consider issues for that permit, also. DHEC will not issue a separate permit for the construction in State navigable waters; the water quality certification permit serves as the permit for both. See Regs. § 61-101.A.2 (Supp. 2002).

16.In order to obtain the water quality certification with no conditions, an applicant must

present a complete application to DHEC, identifying the proposed activities reasonably associated with the proposed project, along with additional information required by DHEC at the time of filing and as requested thereafter. See Regs. 61-101.C. (Supp. 2002).

17.Regs. 61-101. D.1. (Supp. 2002) requires public notice of all applications.

18.After the public notice and any public hearing, if requested, DHEC assesses the proposed

activity and its water quality impacts and makes conclusions concerning compliance with water quality standards, protection of classified uses, and related water quality impacts. Thereafter, DHEC issues a water quality certification in an NOPD (with supporting staff assessment) Footnote to the applicant if the applicant has demonstrated that the project is consistent with the provisions of DHEC’s regulations, the State Water Quality Standards found in S.C. Code Regs. 61-68, the CWA, 33 U.S.C. § 1341, and regulations promulgated thereunder by the EPA.

19.If the application is denied or the NOPD and the Staff Assessment contain conditions that

the applicant disagrees with, the applicant may file a request for a contested case hearing. In this case, Petitioner disagreed with one of the conditions contained in the NOPD and the Staff Assessment and timely filed a request for a contested case hearing. See S.C. Code Regs. 61-101.G.4. (Supp. 2002).

20.S.C. Code Regs. 61-101.F.3. requires the following factors to be considered when assessing the water quality impacts of a project:

(1) whether the activity is water dependent and the intended purpose of the activity;

(2) whether there are feasible alternatives to the activity;

(3) all potential water quality impacts of the project, both direct and indirect, over the life of the project including:

(a) impact on existing and classified water uses;

(b) physical, chemical, and biological impacts, including cumulative impacts;

(c) the effect on circulation patterns and water movement;

(d) the cumulative impacts of the propose activity and reasonably foreseeable similar activities of the applicant and others.

21.Requests to fill an area necessary for the maintenance or protection of public highways will

be certified when there are no feasible alternatives. See Regs. 61-101.F.4.R.

22.S.C. Code Regs. 61-101.F.5. mandates the denial of a certification if:

(1) the proposed activity permanently alters the aquatic ecosystem in the vicinity of the project such that its functions and values are eliminated or impaired;

(2) there is a feasible alternative to the activity, which reduces adverse consequences on water quality and classified uses;

(3) the proposed activity adversely impacts waters containing State or Federally recognized rare, threatened, or endangered species;

(4) the proposed activity adversely impacts special or unique habitats, such as National Wild and Scenic Rivers, National Estuarine Research Reserves, or National Ecological Preserves, or designated State Scenic River.

23.Certification will also be denied if DHEC is not assured that appropriate and practical steps,

including storm water management, will be taken to minimize adverse impacts on water quality and the aquatic ecosystem. See Regs. 61-101.F.6. DHEC has the authority to certify a project, to deny certification or to certify with conditions. See CWA §§ 401 (a)(1) and (d).

Regulation 19-450--Permits for Construction in Navigable Waters

24.Regs. 19-450 governs the issuance by DHEC of a permit to dredge, fill or construct or alter

activity in, on, or over a navigable water, or in, or on the bed under navigable waters.

25.However, no construction permit is required under this regulation if a water quality

certification is required. See Regs. 19-450.3.G.

Regulation 61-68--Water Classifications and Standards

26.In meeting the requirements for water quality enumerated in Regs. 61-101, an applicant for

a water quality certification must meet the qualifications of Regs. 61-68. This regulation establishes a system and rules for managing and protecting the quality of South Carolina’s surface and ground water.

27.S.C. Code Regs. § 61-68.E.8. disallows the discharge of fill into a water of this State unless the activity is consistent with DHEC regulations and will result in enhancement of classified uses with no significant degradation to the aquatic ecosystem or water quality.

28.The term “classified uses” is defined in S.C. Code Regs. § 61-68. B.22. as “those uses specified in Section G for surface waters and Section H for ground waters whether or not those uses are being attained.”

29.Lake Thurmond is classified as a “freshwater” in S.C. Code Regs. 61-69.E. S.C. Code Regs. 61-68.G.10. describes “freshwaters” as being suitable for primary and secondary contact recreation and as a source for drinking water supply after conventional treatment in accordance with the requirements of the Department. Further, it is defined as being suitable for fishing and the survival and propagation of a balanced indigenous aquatic community of fauna and flora.

30.S.C. Code Regs. § 61-68.D.1. requires that the existing water uses and the level of water quality necessary to protect the existing uses shall be maintained and protected.

31.“Existing use” is defined in Regs. § 61-68.B.31. as “those uses actually being attained in or

on the water, on or after November 28, 1975, regardless of the classified uses.”

32.S.C. Code Regs. 61-68.F.1.c. states that narrative biological criteria shall be consistent with the objective of maintaining and improving all surface waters to a level that provides for the survival and propagation of a balanced indigenous aquatic community of fauna and flora attainable in waters of the State; and in all cases shall protect against degradation of the highest existing or classified uses or biological conditions in compliance with the Antidegradation Rules contained in this regulation.

33.A “balanced indigenous aquatic community” is “a natural, diverse biotic community

characterized by the capacity to sustain itself through cyclic seasonal changes, presence of necessary food chain species and by a lack of domination by pollutant tolerant species.” Regs. § 61-68.B.11.

34.“Primary contact recreation” is defined in Regs. 61-68.B.47 as “any activity with the intended

purpose of direct water contact by the human body to the point of complete submergence, including but no limited to swimming, water skiing, and skin diving.”

35.“Secondary contact recreation” is “any activity occurring on or near the water which does

not have an intended purpose of direct water contact by the human body to the point of complete submergence, including but not limited to fishing, boating, canoeing, and wading. Regs. § 61-68.E.51.

Discussion

DHEC is the state agency charged with the duty to protect the waters of this state. See generally Title 48, South Carolina Code of Laws (1987 & Supp. 2002). This case involves Lake Thurmond, which is classified as open water or freshwater. In issuing a water quality certification, DHEC must consider the impact on any aquatic wildlife or habitat in the area as well as the recreational use of the disputed area. It seeks to ensure that water quality standards are met and that any impacts from a project will be minimized. When an application is filed with DHEC requesting approval for a proposed activity which may, either during construction or during later operation, result in a discharge into navigable waters, it has a statutory duty to assess the proposed project to ensure and protect the quality of that water and to assess the water quality impacts of the project. DHEC is required to issue, deny, or waive the requested water quality certification within one year after the completed application is filed with it.

To prevent further erosion at its site on Lake Thurmond, Petitioner filed an application with the Corps for the water quality certification and the permit to construct sea walls and to backfill approximately 2.04 acres in the disputed area (five separate areas). The Corps forwarded Petitioner’s application to DHEC for its determination.

In its Staff Report, DHEC gave various reasons for its denial of the requested certification and permit. At the hearing, it offered additional reasons for its denial which were not contained in the Staff Report. In its Staff Report, DHEC held that if the sea walls as proposed by Petitioner were authorized for construction by DHEC, the following would result:

(1) a permanent loss of approximately 2.04 acres of open water aquatic habitat life use; See Pet. Exh.23, pp. 6 and 8.

(2) a permanent alteration and a significant degradation of the aquatic ecosystem in the vicinity/area of the proposed project such that its functions and values are eliminated or impaired; See Pet. Exh. 23, pp. 6-8.

(3) a failure by Petitioner to take appropriate and practical steps including storm water management to minimize adverse impacts on water quality and the aquatic ecosystem; See Exh. 23, pp. 7 and 8.

(4) a permanent elimination of the disputed area for seasonal shallow lake habitat, and thus, a permanent removal of an existing aquatic life use from the lake; See DHEC Exh. 23, pp. 7.

(5) an elimination of spawning in the disputed area; See DHEC Exh. 23, p. 7.

(6) an elimination of foraging habitat for fish and invertebrates in the disputed area several months of each year which supports the Lake Thurmond food web; See DHEC Exh. 23, p. 7-9.

(7) a failure by Petitioner to provide for the survival and propagation of a balanced indigenous aquatic community of fauna and flora in the waters of Lake Thurmond; See DHEC Exh. 23, p. 8.

(8) a failure by Petitioner to maintain the existing aquatic community in the area of the proposed project; See DHEC Exh. 23, p. 8.

(9) a significant loss of aquatic habitat and existing aquatic life uses in waters of the State of South Carolina due to cumulative impacts when DHEC certified similar projects to Petitioner and others in the Waters of the State; See DHEC Exh. 23, p. 9.

Precedential Value of Sandhill Case

At the hearing, DHEC correctly argued that only the determinations contained in its Staff Report and the NOPD were appropriate for consideration. However, in its closing argument to the court, DHEC raised for the first time an additional reason for denying the requested water quality certification and construction permit. It brought to the court’s attention DHEC Order 90-4-B, entitled In Re: Sandhill, a Partnership, Joe L. Carter v. South Carolina Department of Health and Environmental Control and Sierra Club, Intervenor (“Sandhill”), issued by the DHEC board on April 12, 1990. DHEC stated that this decision had been adopted by DHEC as a policy which it follows in these certification and permit cases. It argued that the decision had precedential value since it was affirmed by a circuit court and by the Court of Appeals in an unpublished decision. For the following reasons this court finds that the board decision in the Sandhill case, and its adoption by the DHEC board as a policy to be adhered to in water quality certification and construction permit applications, is not applicable to this case and is not binding on this court:

(1) A decision by the Court of Appeals which is unpublished does not have precedential value and is not binding on subsequent similar issues which are litigated. This ruling by the South Carolina Court of Appeals is subject to SCACR 239, which provides that “memorandum opinions and unpublished orders have no precedential value and should not be cited except in proceedings in which they are directly involved.”

(2) The decision by the DHEC board in Sandhill could not be validly adopted by DHEC as a policy to be applied to the general population since it has not been promulgated as a regulation as required by statutory and decisional law;

(3) The decision was not cited in the NOPD and in the Staff Report as a reason for denying the placement of the sea walls at the 324' MSL;

(4) The facts in the Sandhill case are inapposite to this case as follows:

1.Petitioner in Sandhill sought to construct dikes which would replace or repair previously existing dikes constructed for water control associated with rice cultivation;

2.The dikes replaced about 1.7 acres of former fresh water tidal estuarine marsh or wetlands between the Pee Dee and Waccamaw Rivers in Georgetown County;

3.The dikes would impound about 29 acres of that same marsh;

4.The dikes would isolate the impoundment area from the diurnal tidal flow which would otherwise occur;

5.Petitioner wanted to create the impoundment for crops which would attract migratory waterfowl;

6.After the dikes were constructed, Petitioner applied for an after the fact permit to discharge dredge material into waters of the state pursuant to section 404 of the CWA;

7.DHEC found in Sandhill that the rebuilding of the dikes turned 1.7 acres of marsh into land of upland character, changed its classified use and displaced a balanced indigenous aquatic community;

8.DHEC found in Sandhill that the construction of the dikes would isolate 29 acres of marsh from the free diurnal tidal flow which would alter the pre-existing balanced aquatic community;

9.DHEC found in Sandhill that there is a likelihood that reduced levels of dissolved oxygen at variance with the levels to be expected in the unaltered marsh will violate state water quality standards.

In contrast to the facts in Sandhill, here there is no credible evidence that any previously existing balanced indigenous aquatic community will be disturbed or displaced by the proposed project. Nor is there any credible evidence that the water quality in Lake Thurmond will be adversely impacted. For these reasons, it is inappropriate to apply the Sandhill case in this instance.

It is noteworthy that DHEC concluded in Sandhill that because some previously litigated 401 certification cases “had significantly different facts” or, had been “issued several years previously,” they had no value and the use of their comparisons were “not valid.” This conclusion is totally inconsistent with the board’s present policy that it will apply the conclusion reached in the Sandhill case to all subsequent cases, notwithstanding that they may have significantly different facts, such as is the case here.

Other Rationales for Denial

Secondly, DHEC argued that the proposed project would not maintain and protect the existing uses and water quality at the specific locations as required by the Antidegradation Rules contained in Regs. 61-68 (D)(1). The existing uses for the waters of Lake Thurmond (freshwater) are defined in Regs. 61-68 (B)(31) as the uses actually being attained there. It defines the uses for the freshwater of Lake Thurmond as: (1) fishing; (2) the survival and propagation of a balanced indigenous aquatic community of flora and fauna; (3) industrial and agricultural uses; (4) primary and secondary contact recreation; and (5) a source for drinking water supply after conventional treatment. Here, the only existing use which DHEC argues that the proposed project would infringe upon was the permanent elimination of the balanced indigenous aquatic community of flora and fauna (which DHEC alleges exists in the disputed area). A thorough analysis of the Staff Report reflects that this conclusion by DHEC staff was not based upon any independent study made by the DHEC staff, but was based upon reports and letters it received from third parties, e.g., DNR, EPA, and FWS, which contained no supporting data. See DHEC Exh. 23, pp. 7-10.

Thirdly, DHEC argued that the proposed project does not meet the water quality standard as enunciated in Reg. 61-68.E(8), i.e., the discharge of fill into Lake Thurmond (the disputed area) is not consistent with DHEC regulations, it will not enhance the classified uses of Lake Thurmond, and it will create significant degradation to its aquatic ecosystem or to its water quality. Again, a thorough analysis of the Staff Report reflects that this conclusion by the DHEC staff was based upon reports and letters it received from third parties, e.g., DNR, EPA, and FWS, none of which was based upon any supporting data. See DHEC Exh. 23, pp. 7-10.

Finally, DHEC argued that the proposed project would not meet the requirements of Regs. 61-68(F)(1)(c). This regulation requires a project to be consistent with the maintenance and improvement of the surface waters to such a level that it will provide for the survival and propagation of that balanced indigenous aquatic community of fauna and flora which is attainable in the waters. Once again, a thorough analysis of the Staff Report reflects that this conclusion by DHEC staff was based upon reports and letters it received from third parties, e.g., DNR, EPA, and FWS, none of which contained any data or studies to support their opinions. See DHEC Exh. 23, pp. 7-10.

In addition to the above, Ms. Rheda Geddings of DHEC testified during the hearing that there was no need to assemble a panel of fishery experts to look at the fish and aquatic impacts at the disputed area since Regs. 61-101 “requires that we look and we deny a project if there are less damaging feasible alternatives.” See Transcript, Day Three of Four, p. 59. She asserted that DHEC must look at avoidance of impact or minimization of impact if avoidance is impossible. Ms. Geddings reasoned that DHEC can analyze the facts in an application to ensure the requested construction would avoid or minimize an impact without first having to make a determination that there is an impact at the proposed construction site. In her testimony she clarified this position somewhat when she agreed with the court that DHEC does need to evaluate other alternatives than those presented by an applicant to determine whether any of them might be less damaging to the habitat or aquaculture, Notwithstanding, she failed to explain why it is unnecessary to first determine whether a project actually has an impact on the indigenous aquatic community prior to denying the application because there are “less damaging feasible alternatives. In this case, DHEC absolutely failed to make an adequate determination of whether Petitioner’s project would cause any impact. Despite Petitioner’s request, DHEC did not meet with the fishery experts to determine if there would be any effect from the proposed construction project on the local indigenous aquatic community of flora and fauna. This omission by DHEC undermines the credibility of the findings in the Staff Report and NOPD, in light of the fact, as discussed herein, that the fishery experts’ reports generally concluded there would be no significant impact resulting from the project.

Review of the Reports and Testimony of State and Federal Agencies

This court must now carefully analyze the various reports and letters from the several state and federal agencies made part of the record, as well as the testimony at trial, to determine if they provide support for DHEC’s conclusions in its Staff Report and NOPD, i.e., a failure by Petitioner to maintain a balanced indigenous aquatic community of fauna and flora in the disputed area and/or a degradation of the ecosystem which it alleges presently exists there.

In support of its conclusions, DHEC relies upon the reports submitted by Dr. Isely of Clemson University, Mr. Duncan of DNR, the reports of the FWS and the EPA, and the testimony of Ms. Matthews of EPA. DHEC first argues that Dr. Isely’s report supports its conclusion that the proposed project will create a reduction in the secondary lake level and fish production level. Further, DHEC uses the reports of Mr. Duncan to support its conclusion that the disputed area is suitable for sunfish spawning and if the project is constructed there will be a loss of shallow lake habitat and foraging habitat. DHEC also relies upon the reports of both the FWS and the EPA to support its conclusion that the disputed area is shallow lake which provides spawning and foraging habitat for fishes and invertebrates which support the Lake Thurmond food web. Finally, DHEC solicited the testimony of Ms. Matthews to support its conclusion that if adverse consequences will result from the construction of a proposed project, the agency must then look to the least damaging alternative. The Court will examine each of these in turn.

First, Dr. Isely, a professor of wildlife management at Clemson University, actually visited the disputed area on several occasions with some of his students from Clemson University. In his report he found that there was no aquatic or emergent vegetation present in the proposed impact areas. He found no evidence of fish spawning in the disputed area. Further, he opined that the proposed project would not have a net negative direct or indirect impact on the fish habitat or fish populations in Lake Thurmond. He stated that the sites were not good nursery habitat. In conclusion, he opined that the proposed project would improve, not damage, the local fish populations and would serve as the base for an enhanced food supply for fish. Further he felt the proposed project would reduce sedimentation and erosion, increase habitat stability and cover for adult fish. Accordingly, Dr. Isely’s report provides no support for DHEC’s conclusions.

Second, Mr. Duncan’s report provides little support for DHEC’s position. Mr. Duncan agreed with Mr. Mike Alexander’s opinion that the disputed area did not contain a habitat which is critical for the fish in Lake Thurmond or for their spawning. Mr. Duncan could only opine that the disputed area contains some level of production of aquatic organisms and fish use during the times of the year when it is flooded. His opinion is based on pure conjecture, since there was no evidence that he inspected the disputed area nor that he had reviewed any studies or data to support his conclusion. Indeed, after reviewing the correspondence of Mr. Alexander, who did inspect the disputed area, Mr. Duncan changed his opinion, proposing that the sea walls at the proposed project should be constructed ten feet away from the escarpment. Accordingly, Mr. Duncan’s initial opinion, which was relied upon by DHEC, is not credible.

I further find that the reports from the FWS do not support DHEC’s position. In his earliest correspondence, Mr. Banks of the FWS did not disagree with the construction of the sea walls at the 324' MSL. Subsequently, after he was telephoned by Mr. Giffin of DHEC and requested to write a letter supporting DHEC’s position, Mr. Banks wrote a letter to DHEC wherein he agreed with DHEC’s position that the sea walls should be constructed at the existing escarpment. See Transcript, Day Three of Four, pp. 22-24. He was not provided any additional data or studies to support the request. This court gives no credibility to this second opinion by Mr. Banks contained in the letter addressed to DHEC. The better action would have been for DHEC to join with Petitioner in having a meeting with the fish biologist from DNR, Wade Bales, Dr. Isely and Mr. Alexander. DHEC showed no interest in having this conference. Ms. Geddings testified that DHEC never contacted either Mr. Alexander or Mr. Bales. See Transcript of Day Three of Four, p. 89. To the contrary, DHEC sought, without notice to Petitioner and without including him in either telephone conversation, an opinion from DNR which was consistent with its opinion and for EPA to have an employee testify at the hearing. Footnote

Finally, Mr. Giffin of DHEC testified that the plankton in the area could be adversely impacted by the project. However, DHEC made no independent study of plankton in Lake Thurmond, nor did it conduct an evaluation or study of the proposed site. See Transcript Day Three of Four, pp. 148-149; Transcript Day Two of Four, p. 22. Moreover, DHEC’s conclusion regarding plankton is contradicted by the letter from Dr. Hains and Dr. Theriot of the Corps, which stated that there would be no impact on the plankton community as a result of this project. Indeed, Ms. Geddings conceded in her testimony that Dr. Hains of the Corps, who has studied plankton for eighteen years, is “very well qualified” to talk about the plankton in Lake Thurmond. Despite this fact, she testified that she felt no need to talk with either Dr. Hains or Dr. Theriot after receiving their letter. I find and conclude that the report of Drs. Hains and Theriot is entitled to greater weight and that there would be no loss of plankton resulting from the construction of the sea walls as requested.

Petitioner offered other evidence in support of its proposed project. First, Petitioner provided an order of the Hon. Falcon Hawkins dated May 3, 2002 wherein he concluded, from his review of a history of environmental impact studies over many years of the Richard B. Russell Lake and Lake Thurmond, that the fishery resources and water quality in the lakes would not be significantly adversely affected even if he approved the operation of the pumped storage turbines at the Richard B. Russell dam. His order found that these studies reflected that there were from 6.04 to 12.78 million fishes killed in Lake Thurmond annually from the operation of the turbines, depending upon the lake level. Notwithstanding, the studies concluded that these fish kills, even though seemingly large, did not constitute a significant impact on the aquatic ecosystem of Lake Thurmond. In his order, Judge Hawkins authorized the operation of the turbines. This order supports Petitioner’s contention that no adverse impact on Lake Thurmond will occur as a result of the proposed project.

Furthermore, Mr. Alexander, the Corps district fisheries biologist, has monitored and studied the fisheries of Lake Hartwell, Richard B. Russell Lake and Lake Thurmond (all three lakes impounded on the Savannah River). The record reflects that he is knowledgeable of the aquatic environmental conditions at all the shoreline erosion control projects on Lake Thurmond. Mr. Alexander inspected the disputed area and concluded that the construction of the proposed project would not have any impact of an aquatic environmental concern and that it would be impossible for the construction to effect any changes in fish abundance, growth rate, etc. in Lake Thurmond. Also, Mr. Alexander stated that there was no needed habitat in the disputed area for any portion of the life history of a fish species.

I find and conclude that the overwhelming evidence supports the conclusion that the construction of the proposed project away from the 330' MSL or the present erosional escarpment should be approved. There has not been any showing that the disputed area contains an aquatic ecosystem which would be eliminated by the construction of the proposed project, that there is aquatic habitat or aquatic wildlife in the disputed area which would be permanently eliminated by the construction of the proposed project, that there will be a reduction in the secondary reservoir production level of fish resulting from the construction of the proposed project, or that there is spawning or foraging for habitat in the disputed area which would be permanently eliminated if the proposed project was constructed, or that there would be any adverse effect on water quality. Without such a showing, there is no violation of Reg. 61-68 (E) (8), 61-68 (D)(1) or 61-68 (F) (1) (c) as argued by DHEC.

Bulkheads to be used for construction

DHEC realizes the need for some form of erosion control at the Club. It believes erosion controls are needed to benefit water quality by reducing turbidity and sedimentation in adjacent waters during storm events and during periods of high wind and wave action. Neither the statutes nor regulations applicable to water quality certifications or construction permits list any bulkhead construction forms or techniques. Thus, in its Staff Report analysis of the alternative bulkhead types which might be used for the proposed project, DHEC analyzed each alternative proposed by Petitioner in its application. As to the Keystone block system, DHEC stated that “this method of construction of sea walls appeared to have a significant number of advantages and no serious drawbacks.” See DHEC Exh. 23, p. 5. It is uncontested that this is the type of construction the Corps uses for the construction of its sea walls and river bank containments in numerous locations around the United States. Its foundation does not require any digging or hydraulic drilling and can be formed in place. It allows for easy modifications in height due to changes in elevation, is much more aesthetically pleasing than any of the alternatives, and its usage would not require any major disruption of the existing shoreline with heavy equipment to get the blocks to the placement location.In its Staff Report, DHEC authorized the usage of the Keystone block system as the type of sea wall to be constructed at the proposed project. See DHEC Exh. 23, pp. 7, 11, and 12. At the hearing, however, DHEC changed its position and ignored its previous approval for such construction. Mr. Giffin testified that DHEC would now condition the issuance of the certification and permit for the proposed project only if rip rap was used as the erosion control device. See Transcript Day Two of Four, p. 77.

I find and conclude that the evidence supports the construction of the sea walls of Keystone block, as agreed to by DHEC in the NOPD and the Staff Report.

Cumulative Impacts

Regs. 61-101 (F)(3) states that in assessing the water quality impacts of a project, DHEC will address cumulative impacts of the proposed activity and reasonably foreseeable similar activities of the applicant and others. In actuality, however, DHEC does not analyze the cumulative impacts of a proposed application as required by this regulation. Instead, DHEC has a long-standing policy, as testified to by Ms. Geddings at the hearing, that it automatically requires all bulkheads and erosional devices to be placed at the erosional scarp. Footnote Ms. Geddings acknowledged that the regulations do not require sea walls to be constructed at the erosional escarpment. Notwithstanding, she testified that “if we allow Plum Branch to do this, we have to be consistent with our application for the regulation, and therefore, I...my personal feeling is that that would be a very large cumulative impact across the state.” Tr. Day Three of Four, pp. 68-73.

It is correct for DHEC to examine the cumulative effects of a particular project as required by the regulation. However, DHEC cannot automatically require that all erosion device projects be constructed at the erosional escarpment. It must instead follow the regulation, which requires DHEC to look at all the facts in each application, make an individualized assessment and then issue a determination stating what impacts, if any, the project would cause. In this case, DHEC has not established any adverse impact of the proposed project. When questioned by Petitioner about other locations at Lake Thurmond, such as Scott’s Ferry landing (with boat ramps, jetties and filling occurring in 2002), Footnote and West Dam Recreational Site, where sea walls have been constructed, lake bottom had been filled and ramps had been constructed as much as one hundred feet into Lake Thurmond, Ms. Geddings testified that she was not aware of those projects nor the issuance by DHEC of a permit for them, and that possibly they might have issued under a nationwide permit authorized by the Army Corps of Engineers. However, she also testified that even projects constructed pursuant to nationwide permits would require a water quality certification by DHEC, or at least a review of the projects by DHEC. Also, Ms. Geddings testified that all nationwide permits approved by DHEC contained conditions requiring any sea walls to be constructed at the erosional escarpment. See Transcript, Day Three of Four, pp. 126-137. Mr. Giffin testified that he was not aware of any requests for the construction of sea walls at Lake Thurmond since he had been employed with DHEC. He further acknowledged that there have been no cumulative impacts on water quality in the past. See Transcript Day Two of Four, pp. 47-49.

Accordingly, this court finds that the construction of this project will not contribute to any potential cumulative impacts resulting in the future from certifications and permits issued by DHEC. In fact, there is evidence that the construction of the proposed sea walls at the 324' MSL will be of benefit to the local community of fish and plants. DHEC was aware of the Corps’ opinion to this effect but did not discuss it with the Corps. Ms. Geddings testified Petitioner provided DHEC information concerning the construction of the proposed sea walls prepared by Dr. Hains and Dr. Theriot of the U.S. Army Corps of Engineers Environmental Laboratory at Vicksburg, Mississippi. However, she noted that DHEC “felt no need to contact them.” See Transcript Day Three of Four, p. 147.

This court finds and concludes that DHEC’s argument that it cannot allow certifications to be issued for projects allowing the construction of sea walls away from the escarpment because of the potential cumulative effect they would have on Lake Thurmond and other navigable waters is lacking in merit. Other similar projects are ongoing and have been constructed since these regulations were approved by the legislature in 1991. Further, there has been no concrete showing that allowing this project to be constructed would contribute to any adverse impacts on the waters of this state or on any indigenous community of flora or fauna in the area. Therefore, I find and conclude that the sea walls should be placed at the 324' MSL as set forth in Petitioner’s application.

ORDER

For all the foregoing reasons, it is hereby

ORDERED that DHEC must issue to Petitioner the water quality certification and the construction permit as requested by Petitioner in its application and as approved by the Corps.

AND IT IS SO ORDERED.

_________________________________

Marvin F. Kittrell

Chief Administrative Law Judge

Columbia, South Carolina

January 22, 2004

conferred or necessarily implied for it to effectively fulfill the duties with which it is charged. City of Rock Hill v. South Carolina Department of Health and Environmental Control, 302 S. C. 161, 394 S. E. 2d 327 (1990).

11.       When the legislature has expressly mandated a regulatory body to promulgate regulations to

govern the evaluation of permit applications, it must include in its regulations any tests it formulates and applies in the permit evaluation. Captain’s Quarters Motor Inn, Inc. v. South Carolina Coastal Council , 306 S.C. 488, 413 S.E.2d 13 (1991); Charleston Television, Inc. v. South Carolina Budget and Control Bd., 301 S. C. 468, 392 S. E. 2d 671 (1990).

12.       The criteria for permitting are not required to be so specific as to be all inclusive in setting forth factors to be considered. However, factors must not be arbitrarily limited by unwritten internal agency policy. See Home Health Services, Inc. v. South Carolina Tax Commission, 312 S.C. 324, 440 S.E.2d 375 (1994); see also Captain’s Quarters Motor Inn, Inc. v. South Carolina Coastal Council, 306 S.C. 488, 413 S.E.2d 13 (1991).

13.        S.C. Code Ann. § 1-23-10 (Supp. 2002) defines “regulation” as “each agency statement of

general public applicability that implements or prescribes law or policy or practice requirements of any agency.” Further, this statute provides that “policy or guidance issued by an agency other than in a regulation does not have the force or effect of law.”

Regulation 61-101--Water Quality Certification

14.       S.C. Code Regs. § 61-101 (Supp. 2002) is captioned “Water Quality Certification.” Its

provisions contain procedures and policies for implementing the state water quality certification requirements of Section 401 of the Clean Water Act (“CWA”), 33 U.S.C. § 1341. This regulation provides that no Federal permit will be issued pursuant to Section 404 of the CWA, 33 U.S.C. § 1344, until the person has first been granted a state water quality certification and met the requirements of Section 401 of the CWA. The certification is called a Section 401 water quality certification or water quality certification.

15.       If an activity requires a permit for the construction in State navigable waters pursuant

to applicable laws and regulations, the review for the water quality certification will consider issues for that permit, also. DHEC will not issue a separate permit for the construction in State navigable waters; the water quality certification permit serves as the permit for both. See Regs. § 61-101.A.2 (Supp. 2002).

16.       In order to obtain the water quality certification with no conditions, an applicant must

present a complete application to DHEC, identifying the proposed activities reasonably associated with the proposed project, along with additional information required by DHEC at the time of filing and as requested thereafter. See Regs. 61-101.C. (Supp. 2002).

17.       Regs. 61-101. D.1. (Supp. 2002) requires public notice of all applications.

18.       After the public notice and any public hearing, if requested, DHEC assesses the proposed

activity and its water quality impacts and makes conclusions concerning compliance with water quality standards, protection of classified uses, and related water quality impacts. Thereafter, DHEC issues a water quality certification in an NOPD (with supporting staff assessment) Footnote to the applicant if the applicant has demonstrated that the project is consistent with the provisions of DHEC’s regulations, the State Water Quality Standards found in S.C. Code Regs. 61-68, the CWA, 33 U.S.C. § 1341, and regulations promulgated thereunder by the EPA.

19.       If the application is denied or the NOPD and the Staff Assessment contain conditions that

the applicant disagrees with, the applicant may file a request for a contested case hearing. In this case, Petitioner disagreed with one of the conditions contained in the NOPD and the Staff Assessment and timely filed a request for a contested case hearing. See S.C. Code Regs. 61-101.G.4. (Supp. 2002).

20.       S.C. Code Regs. 61-101.F.3. requires the following factors to be considered when assessing the water quality impacts of a project:

            (1) whether the activity is water dependent and the intended purpose of the activity;

            (2) whether there are feasible alternatives to the activity;

(3) all potential water quality impacts of the project, both direct and indirect, over the life of the project including:

                        (a) impact on existing and classified water uses;

                        (b) physical, chemical, and biological impacts, including cumulative impacts;

                        (c) the effect on circulation patterns and water movement;

(d) the cumulative impacts of the propose activity and reasonably foreseeable similar activities of the applicant and others.

21.       Requests to fill an area necessary for the maintenance or protection of public highways will

be certified when there are no feasible alternatives. See Regs. 61-101.F.4.R.

22.       S.C. Code Regs. 61-101.F.5. mandates the denial of a certification if:

(1) the proposed activity permanently alters the aquatic ecosystem in the vicinity of the project such that its functions and values are eliminated or impaired;

(2) there is a feasible alternative to the activity, which reduces adverse consequences on water quality and classified uses;

(3) the proposed activity adversely impacts waters containing State or Federally recognized rare, threatened, or endangered species;

(4) the proposed activity adversely impacts special or unique habitats, such as National Wild and Scenic Rivers, National Estuarine Research Reserves, or National Ecological Preserves, or designated State Scenic River.

23.       Certification will also be denied if DHEC is not assured that appropriate and practical steps,

including storm water management, will be taken to minimize adverse impacts on water quality and the aquatic ecosystem. See Regs. 61-101.F.6. DHEC has the authority to certify a project, to deny certification or to certify with conditions. See CWA §§ 401 (a)(1) and (d).

Regulation 19-450--Permits for Construction in Navigable Waters

24.       Regs. 19-450 governs the issuance by DHEC of a permit to dredge, fill or construct or alter

activity in, on, or over a navigable water, or in, or on the bed under navigable waters.

25.       However, no construction permit is required under this regulation if a water quality

certification is required. See Regs. 19-450.3.G.

Regulation 61-68--Water Classifications and Standards

26.       In meeting the requirements for water quality enumerated in Regs. 61-101, an applicant for

a water quality certification must meet the qualifications of Regs. 61-68. This regulation establishes a system and rules for managing and protecting the quality of South Carolina’s surface and ground water.

27.       S.C. Code Regs. § 61-68.E.8. disallows the discharge of fill into a water of this State unless the activity is consistent with DHEC regulations and will result in enhancement of classified uses with no significant degradation to the aquatic ecosystem or water quality.

28.       The term “classified uses” is defined in S.C. Code Regs. § 61-68. B.22. as “those uses specified in Section G for surface waters and Section H for ground waters whether or not those uses are being attained.”

29.       Lake Thurmond is classified as a “freshwater” in S.C. Code Regs. 61-69.E. S.C. Code Regs. 61-68.G.10. describes “freshwaters” as being suitable for primary and secondary contact recreation and as a source for drinking water supply after conventional treatment in accordance with the requirements of the Department. Further, it is defined as being suitable for fishing and the survival and propagation of a balanced indigenous aquatic community of fauna and flora.

30.       S.C. Code Regs. § 61-68.D.1. requires that the existing water uses and the level of water quality necessary to protect the existing uses shall be maintained and protected.

31.       “Existing use” is defined in Regs. § 61-68.B.31. as “those uses actually being attained in or

on the water, on or after November 28, 1975, regardless of the classified uses.”

32.       S.C. Code Regs. 61-68.F.1.c. states that narrative biological criteria shall be consistent with the objective of maintaining and improving all surface waters to a level that provides for the survival and propagation of a balanced indigenous aquatic community of fauna and flora attainable in waters of the State; and in all cases shall protect against degradation of the highest existing or classified uses or biological conditions in compliance with the Antidegradation Rules contained in this regulation.

33.       A “balanced indigenous aquatic community” is “a natural, diverse biotic community

characterized by the capacity to sustain itself through cyclic seasonal changes, presence of necessary food chain species and by a lack of domination by pollutant tolerant species.” Regs. § 61-68.B.11.

34.       “Primary contact recreation” is defined in Regs. 61-68.B.47 as “any activity with the intended

purpose of direct water contact by the human body to the point of complete submergence, including but no limited to swimming, water skiing, and skin diving.”

35.       “Secondary contact recreation” is “any activity occurring on or near the water which does

not have an intended purpose of direct water contact by the human body to the point of complete submergence, including but not limited to fishing, boating, canoeing, and wading. Regs. § 61-68.E.51.

 

Discussion

            DHEC is the state agency charged with the duty to protect the waters of this state. See generally Title 48, South Carolina Code of Laws (1987 & Supp. 2002). This case involves Lake Thurmond, which is classified as open water or freshwater. In issuing a water quality certification, DHEC must consider the impact on any aquatic wildlife or habitat in the area as well as the recreational use of the disputed area. It seeks to ensure that water quality standards are met and that any impacts from a project will be minimized. When an application is filed with DHEC requesting approval for a proposed activity which may, either during construction or during later operation, result in a discharge into navigable waters, it has a statutory duty to assess the proposed project to ensure and protect the quality of that water and to assess the water quality impacts of the project. DHEC is required to issue, deny, or waive the requested water quality certification within one year after the completed application is filed with it.

            To prevent further erosion at its site on Lake Thurmond, Petitioner filed an application with the Corps for the water quality certification and the permit to construct sea walls and to backfill approximately 2.04 acres in the disputed area (five separate areas). The Corps forwarded Petitioner’s application to DHEC for its determination.

            In its Staff Report, DHEC gave various reasons for its denial of the requested certification and permit. At the hearing, it offered additional reasons for its denial which were not contained in the Staff Report. In its Staff Report, DHEC held that if the sea walls as proposed by Petitioner were authorized for construction by DHEC, the following would result:

(1) a permanent loss of approximately 2.04 acres of open water aquatic habitat life use; See Pet. Exh.23, pp. 6 and 8.

(2) a permanent alteration and a significant degradation of the aquatic ecosystem in the vicinity/area of the proposed project such that its functions and values are eliminated or impaired; See Pet. Exh. 23, pp. 6-8.

(3) a failure by Petitioner to take appropriate and practical steps including storm water management to minimize adverse impacts on water quality and the aquatic ecosystem; See Exh. 23, pp. 7 and 8.

(4) a permanent elimination of the disputed area for seasonal shallow lake habitat, and thus, a permanent removal of an existing aquatic life use from the lake; See DHEC Exh. 23, pp. 7.

(5) an elimination of spawning in the disputed area; See DHEC Exh. 23, p. 7.

(6) an elimination of foraging habitat for fish and invertebrates in the disputed area several months of each year which supports the Lake Thurmond food web; See DHEC Exh. 23, p. 7-9.

(7) a failure by Petitioner to provide for the survival and propagation of a balanced indigenous aquatic community of fauna and flora in the waters of Lake Thurmond; See DHEC Exh. 23, p. 8.

(8) a failure by Petitioner to maintain the existing aquatic community in the area of the proposed project; See DHEC Exh. 23, p. 8.

            (9) a significant loss of aquatic habitat and existing aquatic life uses in waters of the State of South Carolina due to cumulative impacts when DHEC certified similar projects to Petitioner and others in the Waters of the State; See DHEC Exh. 23, p. 9.

Precedential Value of Sandhill Case

            At the hearing, DHEC correctly argued that only the determinations contained in its Staff Report and the NOPD were appropriate for consideration. However, in its closing argument to the court, DHEC raised for the first time an additional reason for denying the requested water quality certification and construction permit. It brought to the court’s attention DHEC Order 90-4-B, entitled In Re: Sandhill, a Partnership, Joe L. Carter v. South Carolina Department of Health and Environmental Control and Sierra Club, Intervenor (“Sandhill”), issued by the DHEC board on April 12, 1990. DHEC stated that this decision had been adopted by DHEC as a policy which it follows in these certification and permit cases. It argued that the decision had precedential value since it was affirmed by a circuit court and by the Court of Appeals in an unpublished decision. For the following reasons this court finds that the board decision in the Sandhill case, and its adoption by the DHEC board as a policy to be adhered to in water quality certification and construction permit applications, is not applicable to this case and is not binding on this court:

(1) A decision by the Court of Appeals which is unpublished does not have precedential value and is not binding on subsequent similar issues which are litigated. This ruling by the South Carolina Court of Appeals is subject to SCACR 239, which provides that “memorandum opinions and unpublished orders have no precedential value and should not be cited except in proceedings in which they are directly involved.”

(2) The decision by the DHEC board in Sandhill could not be validly adopted by DHEC as a policy to be applied to the general population since it has not been promulgated as a regulation as required by statutory and decisional law;

(3) The decision was not cited in the NOPD and in the Staff Report as a reason for denying the placement of the sea walls at the 324' MSL;

            (4) The facts in the Sandhill case are inapposite to this case as follows:

                        1.         Petitioner in Sandhill sought to construct dikes which would replace or repair previously existing dikes constructed for water control associated with rice cultivation;

                        2.         The dikes replaced about 1.7 acres of former fresh water tidal estuarine marsh or wetlands between the Pee Dee and Waccamaw Rivers in Georgetown County;

                        3.         The dikes would impound about 29 acres of that same marsh;

                        4.         The dikes would isolate the impoundment area from the diurnal tidal flow which would otherwise occur;

                        5.         Petitioner wanted to create the impoundment for crops which would attract migratory waterfowl;

                        6.         After the dikes were constructed, Petitioner applied for an after the fact permit to discharge dredge material into waters of the state pursuant to section 404 of the CWA;

                        7.         DHEC found in Sandhill that the rebuilding of the dikes turned 1.7 acres of marsh into land of upland character, changed its classified use and displaced a balanced indigenous aquatic community;

                        8.         DHEC found in Sandhill that the construction of the dikes would isolate 29 acres of marsh from the free diurnal tidal flow which would alter the pre-existing balanced aquatic community;

                        9.         DHEC found in Sandhill that there is a likelihood that reduced levels of dissolved oxygen at variance with the levels to be expected in the unaltered marsh will violate state water quality standards.

            In contrast to the facts in Sandhill, here there is no credible evidence that any previously existing balanced indigenous aquatic community will be disturbed or displaced by the proposed project. Nor is there any credible evidence that the water quality in Lake Thurmond will be adversely impacted. For these reasons, it is inappropriate to apply the Sandhill case in this instance.

            It is noteworthy that DHEC concluded in Sandhill that because some previously litigated 401 certification cases “had significantly different facts” or, had been “issued several years previously,” they had no value and the use of their comparisons were “not valid.” This conclusion is totally inconsistent with the board’s present policy that it will apply the conclusion reached in the Sandhill case to all subsequent cases, notwithstanding that they may have significantly different facts, such as is the case here.

Other Rationales for Denial

            Secondly, DHEC argued that the proposed project would not maintain and protect the existing uses and water quality at the specific locations as required by the Antidegradation Rules contained in Regs. 61-68 (D)(1). The existing uses for the waters of Lake Thurmond (freshwater) are defined in Regs. 61-68 (B)(31) as the uses actually being attained there. It defines the uses for the freshwater of Lake Thurmond as: (1) fishing; (2) the survival and propagation of a balanced indigenous aquatic community of flora and fauna; (3) industrial and agricultural uses; (4) primary and secondary contact recreation; and (5) a source for drinking water supply after conventional treatment. Here, the only existing use which DHEC argues that the proposed project would infringe upon was the permanent elimination of the balanced indigenous aquatic community of flora and fauna (which DHEC alleges exists in the disputed area). A thorough analysis of the Staff Report reflects that this conclusion by DHEC staff was not based upon any independent study made by the DHEC staff, but was based upon reports and letters it received from third parties, e.g., DNR, EPA, and FWS, which contained no supporting data. See DHEC Exh. 23, pp. 7-10.

            Thirdly, DHEC argued that the proposed project does not meet the water quality standard as enunciated in Reg. 61-68.E(8), i.e., the discharge of fill into Lake Thurmond (the disputed area) is not consistent with DHEC regulations, it will not enhance the classified uses of Lake Thurmond, and it will create significant degradation to its aquatic ecosystem or to its water quality. Again, a thorough analysis of the Staff Report reflects that this conclusion by the DHEC staff was based upon reports and letters it received from third parties, e.g., DNR, EPA, and FWS, none of which was based upon any supporting data. See DHEC Exh. 23, pp. 7-10.

            Finally, DHEC argued that the proposed project would not meet the requirements of Regs. 61-68(F)(1)(c). This regulation requires a project to be consistent with the maintenance and improvement of the surface waters to such a level that it will provide for the survival and propagation of that balanced indigenous aquatic community of fauna and flora which is attainable in the waters. Once again, a thorough analysis of the Staff Report reflects that this conclusion by DHEC staff was based upon reports and letters it received from third parties, e.g., DNR, EPA, and FWS, none of which contained any data or studies to support their opinions. See DHEC Exh. 23, pp. 7-10.

            In addition to the above, Ms. Rheda Geddings of DHEC testified during the hearing that there was no need to assemble a panel of fishery experts to look at the fish and aquatic impacts at the disputed area since Regs. 61-101 “requires that we look and we deny a project if there are less damaging feasible alternatives.” See Transcript, Day Three of Four, p. 59. She asserted that DHEC must look at avoidance of impact or minimization of impact if avoidance is impossible. Ms. Geddings reasoned that DHEC can analyze the facts in an application to ensure the requested construction would avoid or minimize an impact without first having to make a determination that there is an impact at the proposed construction site. In her testimony she clarified this position somewhat when she agreed with the court that DHEC does need to evaluate other alternatives than those presented by an applicant to determine whether any of them might be less damaging to the habitat or aquaculture, Notwithstanding, she failed to explain why it is unnecessary to first determine whether a project actually has an impact on the indigenous aquatic community prior to denying the application because there are “less damaging feasible alternatives. In this case, DHEC absolutely failed to make an adequate determination of whether Petitioner’s project would cause any impact. Despite Petitioner’s request, DHEC did not meet with the fishery experts to determine if there would be any effect from the proposed construction project on the local indigenous aquatic community of flora and fauna. This omission by DHEC undermines the credibility of the findings in the Staff Report and NOPD, in light of the fact, as discussed herein, that the fishery experts’ reports generally concluded there would be no significant impact resulting from the project.

Review of the Reports and Testimony of State and Federal Agencies 

            This court must now carefully analyze the various reports and letters from the several state and federal agencies made part of the record, as well as the testimony at trial, to determine if they provide support for DHEC’s conclusions in its Staff Report and NOPD, i.e., a failure by Petitioner to maintain a balanced indigenous aquatic community of fauna and flora in the disputed area and/or a degradation of the ecosystem which it alleges presently exists there.

            In support of its conclusions, DHEC relies upon the reports submitted by Dr. Isely of Clemson University, Mr. Duncan of DNR, the reports of the FWS and the EPA, and the testimony of Ms. Matthews of EPA. DHEC first argues that Dr. Isely’s report supports its conclusion that the proposed project will create a reduction in the secondary lake level and fish production level. Further, DHEC uses the reports of Mr. Duncan to support its conclusion that the disputed area is suitable for sunfish spawning and if the project is constructed there will be a loss of shallow lake habitat and foraging habitat. DHEC also relies upon the reports of both the FWS and the EPA to support its conclusion that the disputed area is shallow lake which provides spawning and foraging habitat for fishes and invertebrates which support the Lake Thurmond food web. Finally, DHEC solicited the testimony of Ms. Matthews to support its conclusion that if adverse consequences will result from the construction of a proposed project, the agency must then look to the least damaging alternative. The Court will examine each of these in turn.

            First, Dr. Isely, a professor of wildlife management at Clemson University, actually visited the disputed area on several occasions with some of his students from Clemson University. In his report he found that there was no aquatic or emergent vegetation present in the proposed impact areas. He found no evidence of fish spawning in the disputed area. Further, he opined that the proposed project would not have a net negative direct or indirect impact on the fish habitat or fish populations in Lake Thurmond. He stated that the sites were not good nursery habitat. In conclusion, he opined that the proposed project would improve, not damage, the local fish populations and would serve as the base for an enhanced food supply for fish. Further he felt the proposed project would reduce sedimentation and erosion, increase habitat stability and cover for adult fish. Accordingly, Dr. Isely’s report provides no support for DHEC’s conclusions.

            Second, Mr. Duncan’s report provides little support for DHEC’s position. Mr. Duncan agreed with Mr. Mike Alexander’s opinion that the disputed area did not contain a habitat which is critical for the fish in Lake Thurmond or for their spawning. Mr. Duncan could only opine that the disputed area contains some level of production of aquatic organisms and fish use during the times of the year when it is flooded. His opinion is based on pure conjecture, since there was no evidence that he inspected the disputed area nor that he had reviewed any studies or data to support his conclusion. Indeed, after reviewing the correspondence of Mr. Alexander, who did inspect the disputed area, Mr. Duncan changed his opinion, proposing that the sea walls at the proposed project should be constructed ten feet away from the escarpment. Accordingly, Mr. Duncan’s initial opinion, which was relied upon by DHEC, is not credible.

            I further find that the reports from the FWS do not support DHEC’s position. In his earliest correspondence, Mr. Banks of the FWS did not disagree with the construction of the sea walls at the 324' MSL. Subsequently, after he was telephoned by Mr. Giffin of DHEC and requested to write a letter supporting DHEC’s position, Mr. Banks wrote a letter to DHEC wherein he agreed with DHEC’s position that the sea walls should be constructed at the existing escarpment. See Transcript, Day Three of Four, pp. 22-24. He was not provided any additional data or studies to support the request. This court gives no credibility to this second opinion by Mr. Banks contained in the letter addressed to DHEC. The better action would have been for DHEC to join with Petitioner in having a meeting with the fish biologist from DNR, Wade Bales, Dr. Isely and Mr. Alexander. DHEC showed no interest in having this conference. Ms. Geddings testified that DHEC never contacted either Mr. Alexander or Mr. Bales. See Transcript of Day Three of Four, p. 89. To the contrary, DHEC sought, without notice to Petitioner and without including him in either telephone conversation, an opinion from DNR which was consistent with its opinion and for EPA to have an employee testify at the hearing. Footnote

            Finally, Mr. Giffin of DHEC testified that the plankton in the area could be adversely impacted by the project. However, DHEC made no independent study of plankton in Lake Thurmond, nor did it conduct an evaluation or study of the proposed site. See Transcript Day Three of Four, pp. 148-149; Transcript Day Two of Four, p. 22. Moreover, DHEC’s conclusion regarding plankton is contradicted by the letter from Dr. Hains and Dr. Theriot of the Corps, which stated that there would be no impact on the plankton community as a result of this project. Indeed, Ms. Geddings conceded in her testimony that Dr. Hains of the Corps, who has studied plankton for eighteen years, is “very well qualified” to talk about the plankton in Lake Thurmond. Despite this fact, she testified that she felt no need to talk with either Dr. Hains or Dr. Theriot after receiving their letter. I find and conclude that the report of Drs. Hains and Theriot is entitled to greater weight and that there would be no loss of plankton resulting from the construction of the sea walls as requested.

            Petitioner offered other evidence in support of its proposed project. First, Petitioner provided an order of the Hon. Falcon Hawkins dated May 3, 2002 wherein he concluded, from his review of a history of environmental impact studies over many years of the Richard B. Russell Lake and Lake Thurmond, that the fishery resources and water quality in the lakes would not be significantly adversely affected even if he approved the operation of the pumped storage turbines at the Richard B. Russell dam. His order found that these studies reflected that there were from 6.04 to 12.78 million fishes killed in Lake Thurmond annually from the operation of the turbines, depending upon the lake level. Notwithstanding, the studies concluded that these fish kills, even though seemingly large, did not constitute a significant impact on the aquatic ecosystem of Lake Thurmond. In his order, Judge Hawkins authorized the operation of the turbines. This order supports Petitioner’s contention that no adverse impact on Lake Thurmond will occur as a result of the proposed project.

            Furthermore, Mr. Alexander, the Corps district fisheries biologist, has monitored and studied the fisheries of Lake Hartwell, Richard B. Russell Lake and Lake Thurmond (all three lakes impounded on the Savannah River). The record reflects that he is knowledgeable of the aquatic environmental conditions at all the shoreline erosion control projects on Lake Thurmond. Mr. Alexander inspected the disputed area and concluded that the construction of the proposed project would not have any impact of an aquatic environmental concern and that it would be impossible for the construction to effect any changes in fish abundance, growth rate, etc. in Lake Thurmond. Also, Mr. Alexander stated that there was no needed habitat in the disputed area for any portion of the life history of a fish species.

            I find and conclude that the overwhelming evidence supports the conclusion that the construction of the proposed project away from the 330' MSL or the present erosional escarpment should be approved. There has not been any showing that the disputed area contains an aquatic ecosystem which would be eliminated by the construction of the proposed project, that there is aquatic habitat or aquatic wildlife in the disputed area which would be permanently eliminated by the construction of the proposed project, that there will be a reduction in the secondary reservoir production level of fish resulting from the construction of the proposed project, or that there is spawning or foraging for habitat in the disputed area which would be permanently eliminated if the proposed project was constructed, or that there would be any adverse effect on water quality. Without such a showing, there is no violation of Reg. 61-68 (E) (8), 61-68 (D)(1) or 61-68 (F) (1) (c) as argued by DHEC.

             

Bulkheads to be used for construction

            DHEC realizes the need for some form of erosion control at the Club. It believes erosion controls are needed to benefit water quality by reducing turbidity and sedimentation in adjacent waters during storm events and during periods of high wind and wave action. Neither the statutes nor regulations applicable to water quality certifications or construction permits list any bulkhead construction forms or techniques. Thus, in its Staff Report analysis of the alternative bulkhead types which might be used for the proposed project, DHEC analyzed each alternative proposed by Petitioner in its application. As to the Keystone block system, DHEC stated that “this method of construction of sea walls appeared to have a significant number of advantages and no serious drawbacks.” See DHEC Exh. 23, p. 5. It is uncontested that this is the type of construction the Corps uses for the construction of its sea walls and river bank containments in numerous locations around the United States. Its foundation does not require any digging or hydraulic drilling and can be formed in place. It allows for easy modifications in height due to changes in elevation, is much more aesthetically pleasing than any of the alternatives, and its usage would not require any major disruption of the existing shoreline with heavy equipment to get the blocks to the placement location.            In its Staff Report, DHEC authorized the usage of the Keystone block system as the type of sea wall to be constructed at the proposed project. See DHEC Exh. 23, pp. 7, 11, and 12. At the hearing, however, DHEC changed its position and ignored its previous approval for such construction. Mr. Giffin testified that DHEC would now condition the issuance of the certification and permit for the proposed project only if rip rap was used as the erosion control device. See Transcript Day Two of Four, p. 77.

            I find and conclude that the evidence supports the construction of the sea walls of Keystone block, as agreed to by DHEC in the NOPD and the Staff Report.

 

Cumulative Impacts

            Regs. 61-101 (F)(3) states that in assessing the water quality impacts of a project, DHEC will address cumulative impacts of the proposed activity and reasonably foreseeable similar activities of the applicant and others. In actuality, however, DHEC does not analyze the cumulative impacts of a proposed application as required by this regulation. Instead, DHEC has a long-standing policy, as testified to by Ms. Geddings at the hearing, that it automatically requires all bulkheads and erosional devices to be placed at the erosional scarp. Footnote Ms. Geddings acknowledged that the regulations do not require sea walls to be constructed at the erosional escarpment. Notwithstanding, she testified that “if we allow Plum Branch to do this, we have to be consistent with our application for the regulation, and therefore, I...my personal feeling is that that would be a very large cumulative impact across the state.” Tr. Day Three of Four, pp. 68-73.

            It is correct for DHEC to examine the cumulative effects of a particular project as required by the regulation. However, DHEC cannot automatically require that all erosion device projects be constructed at the erosional escarpment. It must instead follow the regulation, which requires DHEC to look at all the facts in each application, make an individualized assessment and then issue a determination stating what impacts, if any, the project would cause. In this case, DHEC has not established any adverse impact of the proposed project. When questioned by Petitioner about other locations at Lake Thurmond, such as Scott’s Ferry landing (with boat ramps, jetties and filling occurring in 2002), Footnote and West Dam Recreational Site, where sea walls have been constructed, lake bottom had been filled and ramps had been constructed as much as one hundred feet into Lake Thurmond, Ms. Geddings testified that she was not aware of those projects nor the issuance by DHEC of a permit for them, and that possibly they might have issued under a nationwide permit authorized by the Army Corps of Engineers. However, she also testified that even projects constructed pursuant to nationwide permits would require a water quality certification by DHEC, or at least a review of the projects by DHEC. Also, Ms. Geddings testified that all nationwide permits approved by DHEC contained conditions requiring any sea walls to be constructed at the erosional escarpment. See Transcript, Day Three of Four, pp. 126-137. Mr. Giffin testified that he was not aware of any requests for the construction of sea walls at Lake Thurmond since he had been employed with DHEC. He further acknowledged that there have been no cumulative impacts on water quality in the past. See Transcript Day Two of Four, pp. 47-49.

            Accordingly, this court finds that the construction of this project will not contribute to any potential cumulative impacts resulting in the future from certifications and permits issued by DHEC. In fact, there is evidence that the construction of the proposed sea walls at the 324' MSL will be of benefit to the local community of fish and plants. DHEC was aware of the Corps’ opinion to this effect but did not discuss it with the Corps. Ms. Geddings testified Petitioner provided DHEC information concerning the construction of the proposed sea walls prepared by Dr. Hains and Dr. Theriot of the U.S. Army Corps of Engineers Environmental Laboratory at Vicksburg, Mississippi. However, she noted that DHEC “felt no need to contact them.” See Transcript Day Three of Four, p. 147. 

            This court finds and concludes that DHEC’s argument that it cannot allow certifications to be issued for projects allowing the construction of sea walls away from the escarpment because of the potential cumulative effect they would have on Lake Thurmond and other navigable waters is lacking in merit. Other similar projects are ongoing and have been constructed since these regulations were approved by the legislature in 1991. Further, there has been no concrete showing that allowing this project to be constructed would contribute to any adverse impacts on the waters of this state or on any indigenous community of flora or fauna in the area. Therefore, I find and conclude that the sea walls should be placed at the 324' MSL as set forth in Petitioner’s application.

ORDER

      For all the foregoing reasons, it is hereby

      ORDERED that DHEC must issue to Petitioner the water quality certification and the construction permit as requested by Petitioner in its application and as approved by the Corps.

      AND IT IS SO ORDERED.

 

_________________________________

                                                                              Marvin F. Kittrell

                                                                              Chief Administrative Law Judge

 

Columbia, South Carolina

January 22, 2004


 

 

 

 

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