Lead Opinion
Because the State of Wisconsin proposed to use federal highway funds to widen Wisconsin Route 23 to four lanes between Fond du Lac and Sheboygan, the U.S. Department of Transportation (US-DOT) issued an environmental impact statement evaluating the potential effects of the project. After USDOT made a “record of decision” permitting the use of federal funds, a group opposed to the project filed this suit under the Administrative Procedure Act and asked the district court to find the statement inadequate and enjoin the project. The court denied the request for an injunction—after all, Wisconsin can proceed using its own money whether or not a federal agency has satisfied the requirements for a federal contribution—but set aside the record of decision after concluding that the portion of the statement projecting traffic loads in 2035 had not adequately disclosed all assumptions and other ingredients of the traffic-forecasting model. 2015 U.S. Dist. Lexis 67176 (E.D. Wis. May 22, 2015).
USDOT then issued a revised environmental impact statement with additional details about how the traffic estimates had been generated. The district court concluded, however, that even as revised the information remains inadequate and reiterated the order vacating USDOT’s record of decision. 2016 U.S. Dist. Lexis 57413 (E.D. Wis. Apr. 29, 2016). The judge stated that plaintiff is entitled to a declaratory judgment but neglected to issue one. We do not see what sort of declaratory relief would be appropriate, however, for the central question in the case was resolved by the order setting aside the record of decision. That order is a final decision appealable under 28 U.S.C. § 1291, and it has been appealed.
But the only appellants are the Wisconsin Department of Transportation and a state employee (collectively Wisconsin). So we have a mismatch between the relief and the appellant. The only relief is directed against USDOT, which has not appealed. The only appellants remain free to continue the highway project, though on the state’s dime.
The briefs filed in this court ignored the fact that USDOT has not filed a notice of
USDOT maintains that its decision not to appeal forecloses any other challenge to the district court’s decision, and we agree. The only relief ordered by the district court is the cancellation of US-DOT’s record of decision, the document that allows federal funding of this project. That was the only possible relief, because the National Environmental Policy Act, on which the suit rests, applies only to the national government. The critical language provides: “all agencies of the Federal Government shall ... include in every recommendation or report on proposals for legislation and other major Federal actions significantly affecting the quality of the human environment, a detailed statement by the responsible official on” environmental effects. 42 U.S.C. § 4332(2)(C). This statute does not impose any duties on states, which is why Wisconsin remains free to widen the highway using its own resources.
Because the federal agency has not appealed, it cannot distribute funds to Wisconsin for the Route 23 project until it issues a new environmental impact statement. Wisconsin cannot seek relief against a judgment that does not bind it. It would be nothing but an advisory opinion for a court of appeals to discuss the adequacy of this environmental impact statement, when that discussion cannot change the effect of the district court’s judgment. This is why decision after decision, by the Supreme Court and this circuit, holds that, when the public agency with duties under a judgment elects not to appeal, a different litigant cannot step into the agency’s shoes and carry on. See, e.g., Hollingsworth v. Perry, — U.S. —,
We suggested in Kendall-Jackson that there might be an exception to this principle if the decision not to appeal could itself be the subject of judicial review. Suppose an agency had a statutory duty to appeal but failed to live up to its legal obligations. Or suppose that USDOT had a statutory duty to pay for state highway projects on request and to do whatever it took (including litigation) to provide those funds. Then a court of appeals might be able to proceed in two steps: review the agency’s decision not to appeal, and if that decision was arbitrary and capricious proceed to the merits. But Wisconsin does not contend that USDOT has a statutory duty to fund the Route 23 project, to prepare a better environmental impact statement, or to appeal an adverse decision. If USDOT had said something like “we will not fund this project because we do not think the traffic projection sufficiently reliable,” Wisconsin would not have had any legal redress. But that’s essentially what USDOT did conclude when deciding not to appeal.
Wisconsin insists that it has standing because it is a “lead agency” and cooperated with USDOT to produce and defend the environmental impact statement. See 23 U.S.C. § 139; 23 C.F.R. § 771.109(c)(1). But the question is not whether the state suffers insult from the district court’s evaluation of its handiwork or injury from the judgment—it does, because the district court’s judgment costs it a lot of money (unless USDOT comes up with a new envi
Standing has three components: injury, causation, and redressability. See, e.g., Lujan v. Defenders of Wildlife,
The appeals are dismissed for lack of a justiciable controversy.
Dissenting Opinion
dissenting.
The court holds that Wisconsin satisfies two components of standing, injury and causation, but not the third, redressability. According to the court, because the United States Department of Transportation (US-DOT) did not appeal the district court’s judgment vacating the record of decision, it remains bound by the judgment. From that premise, the court concludes that the injury the judgment inflicts on Wisconsin—which the. court describes as the loss of federal funds for a state highway project—could not be redressed by our reversing the judgment.
That conclusion, in my view, is incorrect. “Redressability ‘examines the causal connection between the alleged injury and the judicial relief requested.’ ” Lac Du Flambeau Band of Lake Superior Chippewa Indians v. Norton,
The court holds otherwise on the strength of four precedents: Hollingsworth v. Perry, -U.S.-,
That description does not accurately capture Princeton University, which concerned the New Jersey Supreme Court’s reversal on state constitutional grounds of a criminal trespass conviction premised on the defendant’s violating a university regulation governing access to campus.
In considering jurisdiction,, the Supreme Court first held that because the State had not taken a position on the merits, its presence did not give rise to an Article III case or controversy. Ibid. The Court then held that Princeton itself had no standing because it had amended the regulation underlying the trespass conviction. Id. at 103,
Nor does the court’s description adequately capture Diamond and Hollings-worth, as neither turned on redressability. The appellant in Diamond, a physician, sought to challenge in the Supreme Court our invalidation of an Illinois abortion law, while Illinois itself chose not to.
As for Kendall-Jackson, the court’s description of its holding—“when the public agency with duties under a judgment
Kendall-Jackson is good law, but two fundamental matters distinguish it from this case. The first concerns the nature of the judgment from which the appeal was taken, and the second concerns the identity of the appellant.
As for the nature of the judgment, the district court in Kendalls-Jackson enjoined state officials from enforcing a state law. Because the liquor commissioners, having not appealed, would remain bound by the injunction regardless of the outcome of the distributors’ appeal, we held that the appeal could not redress the distributors’ injury. But the district court here entered no injunction. Rather, the court declared that the record of decision violated NEPA, vacated it, and expressly declined to issue an injunction. This is the full text of the order:
IT IS ORDERED AND ADJUDGED that the plaintiff has prevailed on its claim for declaratory relief under NEPA, that the March 17, 2014 record of decision is vacated, and that the plaintiffs remaining claims, including its claims for injunctive relief, are moot.
Although the order might have included more detail, the nature of the relief granted is plain. The complaint sought declaratory relief against not only USDOT, but also Wisconsin (actually, against the Wisconsin Department - of Transportation (WisDOT) and its secretary, Dave Ross). It asked the court to “[d]eclar[e] that the Federal Defendants and [Wisconsin] have failed to comply with ... NEPA ... by failing to prepare an adequate [environmental impact statement].” The district court granted that relief, which means that it entered judgment against both USDOT and Wisconsin.
As Wisconsin tells us in its post-argument brief, it planned to rely on the record of decision not just to obtain USDOT funds for the highway project, but also to acquire permits required by the Clean Air Act, wetlands permits from the Army Corps of Engineers, and approvals from the National Park Service. See 28 U.S.C. § 139(d)(8)(A) (“all Federal permits and reviews ... shall rely on a single environmental document”). It therefore is incorrect for the court to say—without addressing, let alone refuting, Wisconsin’s submission—that the district court’s judgment leaves Wisconsin “free to continue the highway project, though on the state’s dime.” Ante, at 481. Even if Wisconsin
Although the analysis could stop there, it bears mention that Wisconsin could establish redressability, and thus standing, even if its only injury were the loss of federal funds. Recall that the judgment in Kendall-Jackson was an injunction prohibiting state officials from enforcing a state law. If the loss of funds were Wisconsin’s only injury, and if the district court had not only vacated the record, of decision and declared that it violated NEPA, but also enjoined USDOT from funding the highway project, Kendall-Jackson would defeat Wisconsin’s standing. But the district court did not enjoin USDOT from doing anything. The object of its judgment was the record of decision, period; the court vacated the record of decision and declared that it violated NEPA. So an appellate decision reversing the judgment would reinstate the record of decision, and thereby reopen the gates to federal funding without any need to upset an injunction against a party, USDOT, that has not appealed.
The distinction between injunctive and declaratory relief is real, not illusory. The Civil Rules have long recognized the dif-
ference, see Fed. R. Civ. P. 57, 65, as has the Supreme Court. See Steffel v. Thompson,
The distinction between declaratory and injunctive relief is significant for this case. Because the district court granted only declaratory relief, USDOT has no duties under the court’s judgment that would remain in place if the declaration were reversed. This therefore is not a case where, “[bjecause [USDOT] has not appealed, it [would] remain bound by [an] injunction[ ] no matter what happens on [Wisconsin’s] appeal[].” Kendall-Jackson,
In this sense, Wisconsin’s appeal is much like the one we permitted in Great West Casualty Co. v. Mayorga,
So, even if the loss of federal funds for the highway project were the only harm the district court’s judgment inflicted on Wisconsin, the State still has established redressability given the nature of the judgment. And if not, Wisconsin would have established redressability based on the non-funding consequences of the judgment on its ability to proceed with the project.
This case is about redressability, but it’s also about federalism. The appellants in Kendall-Jackson—like the appellants in Hollingsworth, Diamond, and Princeton University—were private actors. The appellant here is a State. This matters because “States are not normal litigants for the purposes of invoking federal jurisdiction”; rather, they are “entitled to a special solicitude in ... standing analysis.” Massachusetts,
Those circumstances concern, first and foremost, the joint efforts by USDOT and Wisconsin in developing the environmental impact statement and record of decision associated with the highway project. The federal highway funding statute provides that the States “determine which projects shall be federally financed.” 23 U.S.C. § 145(a). Under NEPA, a project “significantly affecting the quality of the human environment” requires the “responsible Federal official” to ensure that an environmental impact statement has been prepared. 42 U.S.C. § 4332(C). Significantly, NEPA provides that an environmental impact statement for a federally funded state project may be “prepared by a State agency or official,” so long as “the responsible Federal official furnishes guidance and participates in such preparation” and “independently evaluates such statement pri- or to its approval and adoption.... ” 42 U.S.C. § 4332(D). The federal highway statute likewise provides that the “lead agency,” a term defined to mean both US-DOT and “any State ... governmental entity serving as a joint lead agency,” must prepare the record of decision and environmental impact statement. 23 U.S.C. § 139(a)(4), (c)(6), (n)(2); see also 23 C.F.R. § 771.109(c)(1) (“The lead agencies are responsible for managing the environmental review process and the preparation of the appropriate environmental review documents.”).
As Wisconsin notes in its post-argument brief, that is precisely what happened here. The record of decision lists both USDOT and WisDOT as lead agencies. Significant portions of the record of decision were prepared by Wisconsin alone. The district court’s decision recognizes this, referring (in a non-eomplimentary way) to what “WisDOT prepared,” what “WisDOT had not fully explained,” the “methodology that WisDOT purported to use,” what “WisDOT had failed to identify,” and ‘WisDOT’s conclusion.” The district court even observed that ‘WisDOT ... seems to have performed most of the work that is at issue in this suit.”
Despite all this, the court says that NEPA “applies only to the national government.” Ante, at 482. Whether this is correct as a purely formal matter—and it likely is not given the extensive federal-state cooperation that NEPA expressly contemplates—is immaterial. As we have explained, “the solidest grounds [for standing] are practical,” as “[t]he doctrine is needed ... to prevent the federal courts from being overwhelmed by cases, and to ensure that the legal remedies of primary victims of wrongful conduct will not be usurped by persons trivially or not at all harmed by the wrong complained of.” Am. Bottom Conservancy v. U.S. Army Corps of Eng’rs,
Recognizing Wisconsin’s standing does not contravene Greenlaw v. United States,
Imagine a case, much like Massachu-' setts and Texas, where several States bring suit to enjoin the federal government to do X—say, more vigorously enforce the environmental laws, or the immigration laws, in certain respects. Suppose that the district court enters judgment for the federal government and that all but one of the States appeal.' Reversing the judgment would benefit the non-appealing State by enjoining the federal government to do X, but would that fact deprive the other States of standing to appeal and thereby disable the appeals court from hearing their appeal? Of course not, and any reading of Greenlaw that would lead to that result is incorrect. Cf. Massachusetts,
For these reasons, I respectfully dissent from the dismissal of Wisconsin’s appeal for lack of a justiciable controversy, and would proceed to the merits.
