In a long-anticipated decision, the Ninth Circuit Court of Appeals issued a resounding victory for agriculture in Pacific Coast Federation of Fishermen’s Associations, et al. v. Nickels, et al.
On September 5, 2025, a three-judge panel upheld the U.S. District Court for the Eastern District of California’s ruling that the Clean Water Act’s exemption for “irrigated agriculture return flows” shields projects like the Grassland Bypass Project from federal National Pollution Discharge Elimination System (NPDES) permitting requirements.
The case centered on whether the Grassland Bypass Project— which comprises an expansive drainage system that takes in water used for irrigation – lost its exempt status because irrigation return flows inevitably mix with other sources, such as groundwater seepage, road runoff, or dust. Plaintiffs argued that any commingling nullified the exemption.
The Court rejected that interpretation, finding it inconsistent with the statute’s purpose and unworkable in practice. Instead, the Court concluded that the exemption applies so long as return flows do not contain “additional point source discharges from activities unrelated to crop production.”
“This is a complete win for agriculture,” said Norm Semanko, Family Farm Alliance General Counsel, pictured left. “The Ninth Circuit confirmed what Congress intended nearly 50 years ago: irrigation return flows are exempt from federal permitting, provided they don’t include other unrelated point source discharges. The Court recognized that treating nonpoint source commingling—like groundwater seepage or dust—as a basis to revoke the exemption would render it a dead letter.”
The Alliance, alongside other agricultural groups, joined the case as amicus curiae, supporting the U.S. Bureau of Reclamation, San Luis & Delta-Mendota Water Authority, and Grassland Water District. The Ninth Circuit’s ruling reflects many of the points raised in these briefs, including recognition of the broad scope of “irrigated agriculture” and the practical impossibility of excluding diffuse, nonpoint source pollutants.
For irrigators and water managers across the West, the implications are clear: irrigation return flows discharged to waters of the United States through agricultural drains remain exempt from Clean Water Act NPDES permits—unless those drains accept pollutants from unrelated and unpermitted point sources such as municipal stormwater or industrial effluent.
“The Family Farm Alliance will continue to monitor the case should the plaintiffs seek further appeal,” said Mr. Semanko. “For now, the Ninth Circuit has reaffirmed a key protection for irrigated agriculture, ensuring farmers and water districts can focus on producing food and fiber rather than navigating unnecessary federal permits.”