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Page 8 <br />504 F.3d 1007, 65 ERC 1289, 07 Cal. Daily Op. Serv. 11,947, 2007 Daily Journal D.A.R. 15,420 <br />(Cite as: 504 F.3d 1007) <br />This would be important in determining whether the <br />requirement for compliance schedules set out in § <br />122.4(1)(2) had been met and also it would be impor- <br />tant in determining the extent of the pollutants con- <br />tributed by Carlota that would be offset by the Gibson <br />Mine remediation. <br />D. The State of Arizona's Requirements. <br />In addition to violating 40 C.F.R. & 122.4(1), the Peti- <br />tioners contend that the permit also violates the pro- <br />visions of 40 C.F.R. & 122.4(d), which provides that <br />no permit may be issued "[w]hen the imposition of <br />conditions cannot ensure compliance with the appli- <br />cable water quality requirements of all affected <br />States." 40 C.F.R. § 122.4(d) (2000). This must be <br />considered in connection with 122.4 a , which states <br />that no permit may be issued "when the conditions of <br />the permit do not provide for compliance with the <br />applicable requirements of the Clean Water Act or <br />regulations promulgated under the Clean Water <br />Act." Id. at & 122.4(a). Thus, the requirements of I <br />122.4(d) are in addition to complying with all of the <br />requirements of the Clean Water Act and the regula- <br />tions promulgated under the Clean Water Act. <br />Since we here hold that the permit does not comply <br />with 122.46), the additional requirement of §, <br />122.4(d) need not be considered at this time. It would <br />be appropriate to consider the requirements of <br />122.4(d) if a permit is properly issued under <br />122.46). <br />E. Compliance With the Requirements of NEPA. <br />NEPA requires agencies to examine potential envi- <br />ronmental effects of any proposed* 1017 action, and to <br />inform the public of its studies and resulting concerns. <br />If any agency determines that its action may have a <br />significant impact on the environment, the agency is <br />required to prepare an EIS describing the impacts of <br />the action and possible alternatives. 42 U.S.C. & <br />4332(2)(C) (1975). To determine if the action will <br />require an EIS, the agency may first prepare an envi- <br />ronmental assessment ("EA"). 40 C.F.R. & 1508.9 <br />(1998) If the EA indicates that there will not be a <br />significant impact on the environment, the agency <br />may issue a Finding of No Significant Impact, in <br />which case an EIS is not required. 40 C.F.R. & 1508.13 <br />. <br />(1998) <br />In the first appellate review before the Appeals Board, <br />the Petitioners challenged the EPA's failure to allow <br />comments on the two new permit conditions and also <br />the failure to conduct a TMDL prior to issuing the <br />permit. The supplemental EA issued by the EPA ad- <br />dressed only the environmental effect of the two new <br />conditions, not the effect of a permit issued to a new <br />discharger under 122.46) including clauses (1) and <br />(2). There is nothing wrong with incorporating and <br />relying upon the Forest Service FEIS because it had <br />discussed the effect on waters by the proposed Car- <br />Iota Mine. However, the EA produced by the EPA <br />should have discussed the revised permit issued under <br />122.46), including clauses (1) and (2). <br />The Petitioners argued that the EPA failed to take a <br />"hard look" at its failure to consider the discharges <br />from the two diversion channels, including the walls <br />to be established to prevent groundwater from reach- <br />ing the mine facilities, which would contribute alluvial <br />water, including copper pollution, to Pinto Creek. The <br />Appeals Board refused to consider this argument <br />because it contended that it had not been raised during <br />the first comment period. As we have previously ex- <br />plained, it was not possible to comment upon the <br />request for a permit based upon the TMDL and the <br />requirements of 122.46) until after the TMDL had <br />been issued. Thus, for the reasons we expressed in the <br />prior section, it was error for the Appeals Board not to <br />consider additional discharges from the diversion <br />channels. <br />The Petitioners also raised other questions concerning <br />the compliance with NEPA, such as reasonable al- <br />ternatives to the proposed action. Because we have <br />held that the permit was improperly issued under the <br />provisions of 122.46), including clauses (1) and (2), <br />these NEPA issues need not be considered at this time. <br />V. CONCLUSION <br />Because the issuance of the NPDES Permit to Carlota <br />Copper Mine was based on errors of law under the <br />Clean Water Act, 40 C.F.R. & 122.4(1), and the <br />NEPA, we vacate and remand the permit to the EPA <br />for further proceedings consistent with this opinion. <br />VACATED and REMANDED. <br />C.A.9,2007. <br />Friends of Pinto Creek v. U.S. E.P.A. <br />© 2010 Thomson Reuters. No Claim to Orig. US Gov. Works.