Appalachian States Low-Level Radioactive Waste Commission v. Hon. Hazel O'leary, in Her Official Capacity as Secretary of EnergyAppalachian States Low-Level Radioactive Waste Commission v. Hon. Hazel O'leary, in Her Official Capacity as Secretary of Energy
OPINION OF THE COURT
In this appeal, we must evaluate the Secretary of Labor’s interpretation of the Low-Level Radioactive Waste Policy Amendments Act of 1985 (“LLRW Act”),
I.
This case revolves around Congress’s efforts to address the nation’s problems with the disposal of low-level radioactive waste (“LLRW”) and the Secretary of Energy’s (“Secretary”) attempts to implement Congress’s legislated solution. Much of the background to this dispute is described in
New York v. United States,
The LLRW saga began in the 1970s when six commercial LLRW disposal sites were operating in the United States. By 1979, three of the facilities had closed permanently, and the states where the three remaining facilities were located had announced plans to shut down or to severely limit access to their sites. The nation faced a substantial risk that thousands of LLRW generators— such as hospitals, research institutions, universities, manufacturers, industrial facilities,
Congress responded to this crisis by passing the Low-Level Radioactive Waste Policy Act of 1980, Pub.L. No. 96-573, 94 Stat. 3347 (1980). This largely hortatory enactment authorized states to form regional compacts that would cooperate to plan, construct, and operate new LLRW disposal sites. The 1980 Act authorized the regional compacts to exclude waste generated outside their regions beginning on January 1, 1986. As that date approached, it became apparent that no new facilities had been built. The nation faced a renewed LLRW crisis, accentuated by the fact that those regional compacts containing the three existing facilities could now exclude waste from the remaining states.
New York,
Congress reacted by passing new legislation. The Low-Level Radioactive Waste Policy Amendments Act of 1985,
The various statutory milestones followed a natural progression toward full disposal. By July 1, 1986, “each non-member State” had to manifest an “intent to develop a site for the location of a [LLRW] disposal facility within such State.”
To comply with the LLRW Act, the states of Pennsylvania, Delaware, Maryland, and West Virginia formed the Appalachian States Low-Level Radioactive Waste Compact, governed by the plaintiff-appellee Appalachian States Low-Level Radioactive Waste Commission (“Commission”). Congress approved this compact on May 19, 1988. Pub.L. No. 100-319, 102 Stat. 471 (1988). The record indicates that the Commission met the first three statutory milestones.
This dispute turns on the fourth milestone. On December 1, 1992, the Commission entered an eighteen-month conditional contract with the Southeast Compact to obtain access to the disposal facility in Barnwell, South Carolina, one of the three sites that had been in existence when the original 1980 Act was passed.
1
The contract was not renewed, and
On February 11, 1993, the Commission sent a letter to the Department of Energy claiming that it had satisfied the requirements of the LLRW Act and was therefore eligible for a full 1993 rebate. On March 21, 1994, the Secretary published her interpretation of the statute, clarifying the criteria for the 1993 rebate. She explained that a full 1993 rebate would be given only to those states that had provided for disposal of all their waste for the entire three-year period from January 1, 1993, until January 1, 1996. States that only provided for disposal for shorter periods would have their rebates reduced proportionately. This interpretation was based on the Secretary’s reading of the statute as a whole, relying particularly on the related provision in
The Commission responded by filing suit in the U.S. District Court for the Middle District of Pennsylvania, seeking a writ of mandamus to compel the Secretary to pay the full rebate. Both sides moved for summary judgment. Ostensibly applying
Chevron, U.S.A., Inc. v. Natural Resources
De
fense Council, Inc.,
II.
The district court had jurisdiction over this action pursuant to
III.
In exercising plenary review over the district court’s grant of summary judgment, we must apply the standard that the district court should have used initially.
Goodman v. Mead Johnson & Co.,
Where Congress has entrusted a federal agency with the administration of a statutory program, judicial review of that agency’s actions proceeds along well-established principles. In Chevron, the Supreme Court set out the requisite two-step inquiry. The reviewing court must first determine
whether Congress has directly spoken to the precise question at issue. If the intent of Congress is clear, that is the end of the matter, for the court, as well as the agency, must give effect to the unambiguously expressed intent of Congress.
Id.
at 842-43,
Analysis therefore begins with the language of the statute. We must determine whether the plain meaning of the statute speaks to the precise question at issue,
viz.
whether the Commission’s eighteen-month contract for waste disposal satisfies
(iv) The twenty-five percentum of any amount collected by a State under paragraph (1) 3 for low-level radioactive waste disposed of under this section during the period beginning January 1, 1990 and ending December 31, 1992, and transferred to the Secretary under subparagraph (A), 4 shall be paid by the Secretary in accordance with subparagraph (D) 5 if, by January 1, 1993, the State in which such waste originated (or its compact region, where applicable) is able to provide for the disposal of all low-level radioactive waste generated within such State or compact region.
The crucial word in this passage is “all.” The Commission contends that a contract to dispose of all waste for an eighteen-month period meets the plain meaning of the January 1, 1993, milestone. The Secretary believes that neither the Act itself nor the legislative history directly resolves the issue. Nevertheless, based on congressional intent, legislative history, and the statutory scheme as a whole, the Secretary interpreted the provision as requiring the ability to dispose of all waste over a three-year period from January 1, 1993, until January 1, 1996. See Surcharge Rebates: Notice of Response to Comments of Draft Policies and Procedures, and Final Policies and Procedures, 59 Fed. Reg. 15188, 15191 (1994).
Chevron
dictates that we begin by exploring the plain meaning of the Act to see if it speaks directly to this disagreement. In determining plain meaning, we start with the text of the provision itself.
In re Segal,
The district court held that “[t]he explicit language of the Act does not support the Secretary’s position.”
District Ct. Op.
at
The first prong of Chevron turns on the text of the provision, in this case on the implications of the adjective “all.” This term is not defined in § 2021b’s list of definitions. Common usage, however, provides a measure of insight. The Random, House Dictionary of the English Language (1983), offers the following as the first two definitions for the term’s adjectival form: “1. the whole of (used in referring to quantity, extent, or duration): all the cake; all the way; all year. 2. the whole number of (used in referring to individuals or particulars, taken collectively): all men.” Id. at 38. Black’s Law Dictionary (5th ed.1979) offers similar formulations. “All. Means the whole of—used with a singular noun or pronoun, and referring to amount, quantity, extent, duration, quality, or degree. The whole number or sum of— used collectively, with a plural noun or pronoun expressing an aggregate.” Id. at 68.
There can be little doubt that these definitions capture the sense in which the LLRW Act uses the word, particularly in the phrase “all ... waste.” Waste is a singular, collective noun. The adjective “all” may refer to the entirety of that waste whether it be in quantity or in duration.
We must determine whether in the LLRW Act the use of “all” refers only to quantity or whether it also incorporates duration. The Commission believes that to satisfy its obligation, it merely had to be able on January 1, 1993, to dispose of all its waste without any requirement of future capacity. The Secretary believes that “all” includes aspects of duration, judged by the ability to dispose of waste over a three-year period from January 1, 1993, until January 1, 1996. Given the lack of an explicit statutory definition of “all,” we believe that the plain meaning of the statute is ambiguous. 6
Having found an ambiguity, our next task under
Chevron
is to determine “whether the agency’s answer is based on a permissible construction of the statute.”
As the Supreme Court has described it, the judiciary’s task in such circumstances is “to defer to [the agency’s] view unless the legislative history or the purpose and structure of the act clearly reveal a contrary intent on the part of Congress.”
Chemical Mfrs. Ass’n v. Natural Resources Defense Council, Inc.,
We therefore turn to the legislative history and purpose of the statute to determine whether they clearly reveal a contrary intent. Quite the opposite, our review of these sources indicates that if anything, they support the Secretary’s interpretation. Both the history and purpose of the statute suggest that “all” includes 'a durational aspect. 7
As noted in Part I, supra, the LLRW Act was passed to address a “nationwide crisis in low-level radioactive waste disposal.” S.Rep. No. 199, 99th Cong., 1st Sess. 4 (1985). The central purpose of the LLRW Act was to encourage the development of new LLRW disposal facilities. H.R.Rep. No. 314, 99th Cong., 1st Sess., pt. 2, at 55 (1985), reprinted in 1985 U.S.C.C.A.N. 3002, 3030. The Act’s selection of incentives and penalties was “an essential element of any solution to the serious problem now facing the States in the unsited regions.” S.Rep. No. 199, 99th Cong., 1st Sess 4 (1985). By passing the 1985 Act, Congress sought to remedy the difficulties that had rendered the 1980 legislation ineffective. By encouraging the development of new storage space, Congress sought to avoid yet another LLRW crisis.
The goal of encouraging the construction of new facilities reveals Congress’s desire for a long-term solution. This purpose is manifested in the structure of the Act, particularly in its series of progressive milestones. These milestones proceeded in graduated fashion, encouraging states to move from a basic intent to create a facility, through the planning stage, to arrive in 1993 with licensed, operational facilities. Although states could meet the milestones by contracting with facilities in other states or with other compacts, the incremental structure of the provisions shows a clear intent to promote the construction of new facilities. Indeed, it is impossible to conclude otherwise, knowing that the original 1980 Act was passed due to the inadequacy of existing storage facilities and that the revised 1985 Act was passed to spur construction through a program of incentives. It is ludicrous to think that Congress envisioned short-term contracts with the already existing Barnwell facility as the preferred solution to the national LLRW problem.
Other provisions of the Act similarly manifest the legislature’s desire for a long-term
Given this statutory scheme, purpose, and legislative history, it seems clear that the Secretary’s interpretation of the term “all” to include a durational aspect “bears a fair relationship to the language of the statute, reflects the views of those who sought its enactment, and matches the purpose they articulated.”
Sekula v. F.D.I.C.,
Our conclusion is consistent with the specific terms of the Secretary’s interpretation. The Act provides that states are to receive a surcharge rebate for being able to dispose of “ah” waste by January 1, 1993, and this rebate has to be awarded within thirty days of the milestone’s achievement.
On March 31, 1994, the Department of Energy published a regulation entitled “Surcharge Rebates: Notice of Response to Comments on Draft Policies and Procedures, and Final Policies and Procedures.” 59 Fed.Reg. 15188 (1994). This regulation noted that “[t]he Act does not explicitly define the term ‘provide for the disposal of all’ LLRW.”
Id.
at 15189. After exploring the legislative history and statutory scheme, and after examining the text of
To conclude that the Secretary’s interpretation is permissible, we need look no further than related sections of the Act. While
The case before us presents a scenario opposite to the one described above in which a state first fails to meet the requirement and then succeeds. In the current case, the Commission succeeded for the first half of the designated period and then failed. These two situations are symmetrical, and the Secretary believed that they should be treated symmetrically. In other words, she concluded that, when
This interpretation meets the second prong of
Chevron.
It provides a method of measuring state compliance that “bears a fair relationship to the language of the statute, reflects the views of those who sought its enactment, and matches the purpose they articulated.”
Sekula v. F.D.I.C.,
IV.
Having held the Secretary’s interpretation permissible under the second prong of Chevron, our inquiry is at an end. The district court, however, came to two further conclusions that could provide independent support for its entry of summary judgment in favor of the Commission. We will address them briefly.
First, the district court held the Secretary’s interpretation of the Act proeedurally invalid, claiming that the Secretary failed to comply with the Administrative Procedure Act’s requirements for notice and comment rule-making,
The Secretary’s ruling was interpretative, and interpretive rules are exempt from notice and comment procedures pursuant to
Interpretive rules constitute a body of experience and informed judgment to which courts and litigants may properly resort for guidance. Interpretive rules are not intended to alter legal rights, but to state the agency’s view of what existing law requires. Such rules “merely clarify or explain existing law or regulations.”
The district court also held the Secretary’s position procedurally invalid as an instance of retroactive rulemaking. The court reached this conclusion largely because it believed that the Secretary’s 1994 publication of her interpretation promulgated a new rule that could not be applied to a contract formed in 1992. Retroactive rulemaking is presumptively impermissible,
see Bowen v. Georgetown Univ. Hosp.,
V.
Congress passed the LLRW Act to address the nation’s recurring problems with nuclear waste. Congress sought to address the problem through the construction of new disposal facilities, spurred by a carefully crafted series of incentives and standards. These standards culminated in a requirement that states be able to dispose of “all” waste. In the seven years it had to prepare to meet Congress’s 1985 requirements and in the twelve years it had to meet the 1980 requirements, the Commission failed to develop any options beyond a short-term contract with one of the nation’s original facilities. The . Secretary evaluated the sufficiency of this contract based on a permissible reading of the Act and found it wanting. Under Chevron, this court cannot substitute its judgment for the Secretary’s. We will therefore reverse the district court’s decision and remand with instructions to enter judgment for the Secretary.
Notes
. At the time, the only other LLRW sites in the United States were located at Richland, Washington, and Beatty, Nevada. The Richland site was and continues to be used by members of the Northwestern Compact Commission. The Beatty facility was used by members of the Rocky Mountain Compact Commission until it closed on December 31, 1992. The Rocky Mountain Compact has since contracted with the Richland facility to dispose of its LLRW for the life of the
. In reaching this conclusion, the district court disagreed with the only other district court to examine the issue.
Central Midwest Interstate Low-Level Radioactive Waste Comm’n v. O’Leary,
.
.
.
. In reaching this conclusion, we are well aware of language in New York v. United States that describes the provision at issue:
The third step [in the incentive program] is a conditional exercise of Congress' authority under the Spending Clause: Congress has placed conditions—the achievement of the milestones—on the receipt of federal funds.... The conditions imposed are unambiguous,
Pennhurst State School and Hospital v. Halderman,
451 U.S. [1], at 17, 101 S.Ct. [1531], at 1540 [
. As an aside, we reject as specious the Commission's assortment of secondary arguments against our granting deference to the Secretary's position. The Commission has pointed out that the Secretary published her interpretation nine years after the passage of the LLRW Act and that the interpretation emerged during the pendency of the
Central Midwest
litigation,
see
note 2,
supra.
The Commission also claims that the Secretary’s interpretation conflicted with the agency's earlier views, particularly as articulated by Terry L. Plummer, Manager of the Department of Energy’s LLRW program, during a 1992 meeting of the Low-Level Radioactive Waste Management Forum. None of these arguments change the basic
Chevron
analysis. We make even shorter work of them in light of the U.S. Supreme Court's recent decision in
Smiley v. Citibank (S.D.) N.A.,
— U.S. -,
.
. As a final comment, we observe that we have reached these holdings by applying the plenary standard of review appropriate for a grant of summary judgment in a typical action at law. It bears noting, however, that the Commission framed its suit as a petition for writ of mandamus. Mandamus is an extraordinary remedy that can only be granted where a legal duty "is positively commanded and so plainly prescribed as to be free from doubt.”
Harmon Cove Condominium Ass’n, Inc. v. Marsh,