FOR IMMEDIATE RELEASE ENR TUESDAY, APRIL 2, 1996 (202) 616-2771 TDD (202) 514-1888 COURT REAFFIRMS TRIBAL ENVIRONMENTAL SOVEREIGNTY REJECTS MONTANA CHALLENGE TO EPA AUTHORITY WASHINGTON, D.C. -- In the first case of its kind, a federal judge in Montana rejected a state challenge to a decision by the United States Environmental Protection Agency to treat an Indian nation in the same manner as a state for setting environmental standards within an Indian reservation, the Department of Justice announced today. The decision was seen by Department officials as a significant victory for tribal sovereignty over environmental matters. In a March 28 decision, the court rejected arguments by the State of Montana that two tribes there lacked inherent authority to apply its clean water standards to the activities of nonmembers of the tribes. "We believe that the judge ruled correctly," said Lois J. Schiffer, Assistant Attorney General in charge of the Environment and Natural Resources Division. "The decision affirms EPA's ability to recognize that Indian Nations should be primarily responsible for defining the quality of the reservation's environment." The State of Montana sued EPA on May 4, 1995, after EPA Region 8 Administrator Bill Yellowtail approved the Confederated Salish and Kootenai Tribes' application to be treated "in the same manner as a state" for purposes of setting water quality standards under the Clean Water Act on the Flathead Indian Reservation. At the heart of the lawsuit was whether or not an Indian nation could be authorized to set standards that must be met by all reservation residents, or whether an Indian nation's standards would apply only to tribal members. The court's decision means that EPA can continue to apply the Tribes' water quality standards when it issues pollution discharge permits. Montana argued that tribal standards should not apply to non- Indian activities on the reservation. The decision sets an important precedent because it involved the first challenge to a "treatment-in-the-same-manner-as-a- state" decision by EPA under the Clean Water Act. Since 1991, EPA has approved more than one hundred and forty tribal applications for "treatment as a state" status for purposes of grants or program authorizations. Sixteen of these approvals have been for water quality standards programs. Since January, the State of Wisconsin has filed two separate actions challenging EPA decisions approving similar applications for two Indian tribes in Wisconsin. Under the Clean Water Act Amendments passed in 1987, EPA is authorized to treat Indian nations in the same manner as states. EPA has issued regulations that have allowed Indian nations to apply for the power to exercise the same authority as states under a host of environmental provisions under the Clean Water Act. EPA's regulations require Indian nations to show first that they have regulatory authority over all relevant activities within the reservation boundaries, including the activities of nonmembers on privately-owned lands. To do so, an Indian nation must demonstrate that the activities of nonmembers pose a serious and substantial risk to the health or welfare of the tribe. Once a tribe makes such a showing, EPA recognizes the tribe's authority to set water quality standards for all surface waters within the reservation. ### 96-152