Center for Biological Diversity v. United States Department of the InteriorCenter for Biological Diversity v. United States Department of the Interior
Lead Opinion
Opinion for the Court filed by Chief Judge SENTELLE.
Concurring opinion filed by Circuit Judge ROGERS.
In August 2005, the United States Department of Interior (Interior) began the formal administrative process to expand leasing areas within the Outer Continental Shelf (OCS) for offshore oil and gas development between 2007 and 2012. This new five-year Leasing Program included an expansion of previous lease offerings in the Beaufort, Bering, and Chukchi Seas off the coast of Alaska. Petitioners filed independent petitions for review challenging the approval by the Secretary of the Interior (Secretary) of this Leasing Program on various grounds. Specifically, Petitioners argue that: (1) the Leasing Program violates both the Outer Continental Shelf Lands Act (OCSLA),
Nevertheless, we conclude that Petitioners’ remaining OCSLA-based challenges are all justiciable. Of these three remaining claims, Petitioners’ OCSLA-based climate change claims and their OCSLArooted baseline data challenge ultimately lack merit and must fail. However, we find meritorious Petitioners’ challenge to the Leasing Program on grounds that the Program’s environmental sensitivity rankings are irrational. Accordingly, we vacate the Leasing Program, and remand the Program to the Secretary for reconsideration in accordance with this opinion.
I. BACKGROUND
A. Introduction
The Outer Continental Shelf is an area of submerged lands, subsoil, and seabed that lies between the outer seaward reaches of a state’s jurisdiction and that of the United States.
Three petitioners — Center for Biological Diversity, Alaska Wilderness League, and Pacific Environment — are non-profit activist organizations whose members have been working to preserve and protect the waters and living environments off the coast of Alaska. The remaining petitioner — the Native Village of Point Hope, Alaska — is a federally recognized tribal government whose members use the Chukchi Sea coast for subsistence hunting, fishing, whaling, and gathering, as well as cultural and religious activities.
B. Outer Continental Shelf Lands Act
OCSLA establishes a procedural framework under which Interior may lease areas of the OCS for purposes of exploring and developing the oil and gas deposits of the OCS’s submerged lands. See
First, during the preparation stage, Interior creates a leasing program by preparing a five-year schedule of proposed lease sales.
The Leasing Program at issue has only completed its first stage — preparation of the five-year program under Section 18 of OCSLA,
Other provisions of OCSLA that are relevant to the leasing process are Sections 18(b) and 20. See
C. National Environmental Policy Act
NEPA’s requirements are essentially “procedural in character,” and are designed to “ensure solicitude for the environment through formal controls and thereby help realize the substantive goal of environmental protection.” North Slope Borough v. Andrus,
D. Endangered Species Act
The ESA is designed to ensure that endangered species are protected from government action. Under the ESA, each federal agency is required to ensure that any action undertaken by the agency “is not likely to jeopardize the continued existence of any endangered species or threatened species or result in the destruction or adverse modification” of critical animal habitats.
E. Leasing Program
The Five-Year Leasing Program in this case was first developed on August 24, 2005. 70 Fed.Reg. 49,669. After developing and publishing a draft proposed plan, see 71 Fed.Reg. 7064 (Feb. 10, 2006), and reviewing commentary to that draft plan, Interior published a “Proposed Plan” and an accompanying draft EIS. Finally, Interior published its “Proposed Final Plan” in April 2007 along with its Final EIS for the approval stage of the Leasing Program. This was submitted to Congress and the President, and was later approved by the Secretary of Interior. In total, the Leasing Program has scheduled 21 potential lease-sales between July 1, 2007 and June 30, 2012 in eight areas of the OCS. Four of those potential leasing areas are in the Beaufort, Bering, and Chukchi Seas off the Alaska coast. At the time the petitions challenging the approval of the Leasing Program were brought before this court, Interior had not yet conducted any lease-sales in these regions. Since that time, however, Interior has approved one lease-sale in the disputed Alaskan sea areas, Chukchi Sea Lease-Sale 193, which occurred on February 6, 2008. Petitioner Point Hope and others challenged this lease-sale in the federal district court for the District of Alaska.
II. JURISDICTION
The federal judiciary’s role is limited to resolving cases and controversies.
A. Climate Change Claims
Petitioners claim that Interior violated both OCSLA and NEPA because Interior failed to consider both the economic and environmental costs of the greenhouse gas emissions associated with the Program and the effects of climate change on OCS areas. In support of their claims, Petitioners advance two different theories of standing. We address each in turn. We hold that Petitioners lack standing on their substantive climate change theory. We hold, however, that Petitioners have standing to bring their climate change claims under their procedural theory of standing.
1. Petitioners’ Substantive Theory of Standing
Under their substantive theory of standing, Petitioners argue that Interior’s
To begin with, the Supreme Court’s recent decision in Massachusetts v. EPA
In its opinion, however, the Supreme Court made an effort to note that its finding was based on the uniqueness of the case before it. As the Court explained, it was “of considerable relevance that the party seeking review ... is a sovereign State and not, as it was in Lujan v. Defenders of Wildlife,
Assuming arguendo that Point Hope is a sovereign that might be entitled to “special solicitude” under Massachusetts, it is clear that Massachusetts does not govern this case. Point Hope does not allege anywhere that it has suffered its own individual harm apart from the general harm caused by climate change, and its derivative effects on Point Hope’s members. Point Hope does not allege that Interior’s acts will cause damage to, or otherwise adversely affect, any of its own territory. To the contrary, each of Petitioners’ climate change claims are founded on Interi- or’s Leasing Program actions and the effects of those actions on the climate in general. Moreover, to the extent that Petitioners allege that the Leasing Program caused any actual harm to any territory, this harm is limited to areas of the OCS— areas that are owned by the federal government, not by a state or Native American tribe. Aside from these allegations of generalized harm brought about by climate change, Petitioners have not demonstrated that climate change would directly cause any diminution of Point Hope’s territory any more than anywhere else. Accordingly, without this necessary element being present, we find that Massachusetts’s limited holding does not extend to the standing analysis in this case.
Moreover, it is doubtful that Point Hope would be able to assert a' quasi-sovereign claim on behalf of its members against the federal government, as Massachusetts had against the EPA. Both the majority and dissenting opinions in Massachusetts recognized the general rule that a sovereign is prohibited from bringing an action to protect its citizens from the operation of federal statutes. See Massachusetts,
Outside of the very limited factual setting of Massachusetts, the Supreme Court’s decision in Defenders of Wildlife sets forth the test for standing. See Fla. Audubon Soc’y v. Bentsen,
Petitioners’ substantive theory of standing fails because Petitioners have not established either the injury or causation element of standing. First, it is well-established that a party must demonstrate that it has suffered an injury that affects it in a “personal and individual way.” Defenders of Wildlife,
Even if Petitioners were able to demonstrate an injury sufficient for standing, their substantive theory would still fail because Petitioners have failed to demonstrate a causal link between the government action by Interior and Petitioners’ particularized injury. To properly establish causation, the injury must be “‘fairly’ traceable to the challenged action.” Allen,
In this case, Petitioners rely on too tenuous a causal link between their allegations of climate change and Interior’s action in the first stage of this Leasing Program. In order to reach the conclusion that Petitioners are injured because of Interior’s alleged failure to consider the effects of climate change with respect to the Leasing Program, Petitioners must argue that: adoption of the Leasing Program will bring about drilling; drilling, in turn, will bring about more oil; this oil will be consumed; the consumption of this oil will result in additional carbon dioxide being dispersed into the air; this carbon dioxide will consequently cause climate change; this climate change will adversely affect the animals and their habitat; therefore Petitioners are injured by
2. Petitioners’ Procedural Theory of Standing
Alternatively, Petitioners argue that they are injured by Interior’s failure to comply with both OCSLA and NEPA requirements. Specifically, Petitioners claim that Interior violated both OCSLA and NEPA because Interior failed to consider both the economic costs of the greenhouse gas emissions associated with the Program and the effects of climate change on OCS areas. As the Supreme Court noted in Defenders of Wildlife, a plaintiff may have standing if it can show that an agency failed to abide by a procedural requirement that was “designed to protect some threatened concrete interest” of the plaintiff. Defenders of Wildlife,
Petitioners may bring both their OCSLA- and NEPA-based climate change claims under their procedural standing theory. Petitioners have shown that they possess a threatened particularized interest, namely their enjoyment of the indigenous animals of the Alaskan areas listed in the Leasing Program. The Supreme Court has noted that “the desire to use or observe an animal species, even for purely esthetic purposes, is undeniably a cognizable interest for purpose of standing.” Defenders of Wildlife,
We next consider the justiciability of Petitioners’ climate change and baseline data claims under NEPA. Petitioners contend that Interior failed to account for (1) the present and future impact of climate change on the Program areas, and (2) the impact on climate change of the additional consumption caused by the Program. They also contend that Interior has effectively conceded that there is insufficient data detailing the baseline biological condition of the Beaufort, Bering, and Chukchi Seas in the Leasing Program because Interior has admitted that there are gaps in the baseline research for these areas. Petitioners argue that Interior cannot adequately describe the affected areas, as required by
Here, Petitioners’ NEPA-based claims are not ripe due to the multiple stage nature of the Leasing Program. This court’s decision in Wyoming Outdoor Council v. United States Forest Service,
Applying this reasoning here, Petitioners’ NEPA challenges are not ripe for review. At the point that Petitioners filed their petitions, Interior had only approved the Leasing Program at issue. No lease-sales had yet occurred. The Leasing Program here had therefore not yet reached that “critical stage” where an “irreversible and irretrievable commitment of resources” has occurred that will adversely affect the environment. See id.
Additionally, any harm that might befall Petitioners by having to wait until the actual leasing stage to bring their claims is outweighed by the harm to Interior (and other agencies). Allowing a petitioner to bring such NEPA challenges to a leasing program when no rights have yet been implicated, or actions taken, would essentially create an additional procedural requirement for all agencies adopting any segmented program. This would impose
Petitioners argue, however, that the Supreme Court’s decision in Ohio Forestry Association, Inc. v. Sierra Club,
Ohio Forestry does not control. First, the case concerned a claim that the Forest Service had violated the National Forest Management Act of 1976 (NFMA), and whether that claim was ripe for review. The quotation Petitioners rely on was therefore dicta. See id. at 737,
For these reasons, Petitioners’ NEPA claims are not ripe.
C. ESA Claim
When it' approved the Leasing Program, Interior stated that it did not need to engage in any consultation concerning the Program’s impacts on threatened and endangered species at this preliminary stage of the Program. Instead, Interior indicated that it would comply with the ESA’s Section 7 requirements once the Program reached its later stages. See
Section 7 of the ESA clearly sets forth that:
Each Federal agency shall, in consultation with [either the Fisheries Service or the Fish and Wildlife Services], insure that any action authorized, funded, or carried out by such agency ... is not likely to jeopardize the continued existence of any endangered species or threatened species or result in the destruction or adverse modification of habitat of such species which is determined ... to be critical.
16 U.S.C. .
In order to resolve the ripeness of Petitioners’ ESA claim, our inquiry must therefore focus on whether an agency’s approval of a leasing program “may affect” a listed species or critical habitat. Petitioners argue that we should consider the Leasing Program’s potential effect on endangered species as a whole in resolving this issue. In other words, Petitioners advocate a “but for” approach: if, because of events traceable to the agency’s adoption of the multiple-stage leasing plan, it is possible that an endangered species will be affected, then the agency must consult with NMFS or Fish and Wildlife. Interior advocates more of a “proximate cause” approach, viewing each stage of the agency action as a separate intervening act, and linking any effect on endangered species to that particular stage.
Our holding in North Slope Borough v. Andrus,
Applying the reasoning in North Slope to the facts before us, we conclude that Petitioners’ ESA claim is not yet ripe. Given the multi-stage nature of leasing programs under OCSLA, we must consider any environmental effects of a leasing program on a stage-by-stage basis, and correspondingly evaluate ESA’s obligations with respect to each particular stage of the program. Regardless of whether there has been an agency action under the ESA, the completion of the first stage of a leasing program does not cause any harm to anything because it does not require any action or infringe on the welfare of animals. The welfare of animals is, by design, only implicated at later stages of the program, each of which requires ESA consultation and additional environmental review by Interior. See id. at 608-09. In addition, at this initial stage, leasing programs may list areas that Interior does not intend to lease. It is therefore not certain, at least at this initial stage of the Leasing Program, that any of the endangered species in the areas at issue may be affected by the Program, as the proposed leases in these areas might never come to pass. As a result, both this court and the Secretary of the Interior “would benefit from postponing review until the policy in question has sufficiently ‘crystallized’ by taking on a more definite form.” Venetian Casino Resort, LLC v. EEOC,
D. OCSLA-based NOAA Study and Baseline Information Claims
Finally, we conclude that we do have jurisdiction over both of Petitioners’ remaining OCSLA-based claims. Specifically, Petitioners argue that the Leasing Program violates OCSLA because Interior approved the Program without conducting sufficient biological baseline research. Petitioners also contend that the Leasing Program violates Section 18(a)(2)(G) of OCSLA because it relied on an insufficient NOAA study in assessing the environmental sensitivity of the OCS planning areas in the Leasing Program. See
First, as we did with Petitioners’ OCSLA-based climate change claims, we conclude that Petitioners have standing to bring these remaining two OCSLAbased claims. Petitioners have shown that they possess a threatened particularized interest, namely their enjoyment of the indigenous animals of the Alaskan areas listed in the Leasing Program, and that they have a sufficiently immediate and definite interest in enjoyment of the animals. Second, Petitioners have also shown, solely for the sake of Article III standing analysis, that Interior’s adoption of an irrationally based Leasing Program could cause a substantial increase in the risk to their enjoyment of the animals affected by the offshore drilling, and that our setting aside and remand of the Leasing Program would
III. MERITS OF THE REMAINING JUSTICIABLE CLAIMS
A. Standard of Review
This court utilizes a “hybrid” standard of review when reviewing a leasing program for compliance with OCSLA. See Watt I,
B. OCSLA-based Climate Change Claims
Petitioners raise two distinct but related OCSLA-based climate change claims. First, Petitioners argue that the Secretary violated sections 18(a)(1) and (a)(3) of OCSLA by failing to account for the environmental costs resulting from consumption of the fossil fuels extracted from the OCS. Second, Petitioners contend that Interior violated section 18(a)(2) of OCSLA because Interior failed to adequately consider climate change caused by consumption of these fossil fuels and the present and future impact of climate change on OCS areas as section 18(a)(2)(H) requires. To the extent these claims concern Interi- or’s alleged failure to consider the effects brought about by consumption of oil and gas extracted under the Program, we hold that OCSLA does not require Interior to consider the global environmental impact of oil and gas consumption before approving a Leasing Program. Therefore, OCS-LA does not require Interior to consider the further derivative environmental impact that oil and gas consumption has on OCS areas. Accordingly, Petitioners’ OCSLA climate change claims fail.
Contrary to Petitioners’ claims, the text of OCSLA does not require Interi- or to consider the impact of consuming oil and gas extracted under an offshore Leasing Program. Under Section 18(a) of OCSLA, Interior must prepare Leasing Programs so that “the size, timing, and location of leasing activity ... will best meet national energy needs.”
Moreover, Interior’s continuing duty to promulgate five-year Leasing Programs under OCSLA renders Interior’s consideration of the effects of oil and gas consumption unnecessary. Petitioners argue that Interior’s consideration of the environmental impacts of greenhouse emissions associated with the Program might have altered Interior’s ultimate decisions concerning the Program’s leasing activities, such that the OCS areas at issue here might not have been included in the Program. But Petitioners’ argument ignores the fact that Interior’s decisions about the size and location of leasing areas or the timing of oil and gas extraction do not affect the impact that consuming oil and gas may have on climate change. That environmental impact is the same regardless of where and how the oil and gas are extracted. Therefore, even if, as Petitioners assert, Interior were not to adopt the Program at issue here, Interior’s continuing duty to promulgate Leasing Programs would compel it to promulgate a different Leasing Program, potentially approving oil and gas extraction from other areas of the OCS. This extraction would presumably lead to the same overall consumption effects as those under the current Program.
Petitioners’ consumption-related claims appear to stem from the flawed premise that, before Interior approves an offshore oil and gas Leasing Program, it must first consider whether it should extract oil and gas from the OCS at all. But Congress has already decided that the OCS should be used to meet the nation’s need for energy. Indeed, OCSLA instructs Interi- or to ensure that oil and gas are extracted from the OCS in an expeditious manner that minimizes the local environmental damage to the OCS. See
Interior’s decision to limit its inquiry to the effect of the Program’s production activities on climate change is consistent with its obligations under OCSLA, and was not error. Here, there is no doubt that Interi- or considered the effects of the Program’s production activities on climate change generally, and the present and future im
C. OCSLA Baseline Information Claim
In their OCSLA baseline data claim, Petitioners contend that Interior lacked sufficient baseline biological information for the Chukchi, Beaufort, and Bering Seas to rationally approve the Leasing Program. According to Petitioners, Section 20(b) of OCSLA requires Interior to establish, update, and monitor baseline information for OCS planning areas in a leasing program. See
This argument is wholly without merit. Though Section 20(b) imposes a requirement to conduct additional studies to establish environmental information for a particular area, this obligation commences “[sjubsequent to the leasing and development ” of that area.
Even if Petitioners were able to rely on Section 20(b) to support their claim that the Leasing Program was irrational due to gaps in the baseline data, this argument would falter because, based on the record, Interior relied on substantial baseline evidence in approving the Leasing Program. As its final EIS demonstrates,
Petitioners are therefore left with their only remaining argument: to comply with OCSLA, Interior must provide a research plan detailing how it attempts to obtain the necessary baseline information before the next stage of the Leasing Program. However, OCSLA does not set forth a requirement that Interior must provide such a plan for obtaining this baseline data. Petitioners’ claim that Section 18(b)(3) implicitly sets forth such a requirement is off the mark. Section 18(b)(3) states that a leasing program “shall include estimates of the appropriations and staff required to ... conduct environmental studies and prepare any environmental impact statement.”
D. NOAA Study Claim
Section 18(a)(2)(G) of OCSLA requires agencies to consider “the relative environmental sensitivity of ... different areas of the outer Continental Shelf.”
Interior’s argument is not consistent with controlling precedent. Our decisions in California v. Watt (Watt II),
Interior’s interpretation of Section 18(a)(2)(G) is irrational. It was not based on a consideration of the relevant factors set forth therein. Section 18(a)(2)(G) states clearly that an agency must assess the environmental sensitivity of “different areas of the outer Continental Shelf” in order to make its determination of when and where to explore and develop additional areas for oil.
Moreover, though Watt II and Watt I afforded Interior a great deal of leeway in determining how to comply with Section 18(a)(2)(G), they did not give Interior carte blanche to wholly disregard a statutory requirement out of convenience. The law plainly requires that Interior examine and compare the environmental sensitivity of different areas of the OCS. Though the law allows Interior to consider the environmental sensitivity of onshore areas to OCS development, it plainly does not allow Interior to consider only onshore areas. Interior’s sole focus on the environmental sensitivity of shoreline areas to OCS development therefore falls short of what Section 18(a)(2)(G) requires. Accordingly, Interior’s Section 18(a)(2)(G) analysis is inadequate.
Our conclusion that Interior failed to properly conduct an environmental sensitivity analysis under Section 18(a)(2)(G) does not end our inquiry. We have consistently linked the adequacy of Interior’s analysis under Section 18(a)(2) with its analysis under Section 18(a)(3). See Watt II,
Consequently, on remand, the Secretary must first conduct a more complete com
IV. RELIEF
Section 23(c)(6) of OCSLA provides that, on review, a court of appeals “may affirm, vacate, or modify any order or decision or may remand the proceedings to the Secretary for such further action as it may direct.”
So ordered.
Notes
. Petitioners claim that Interior’s adoption of the Program could result in further exploration and seismic testing by third parties in the Program areas. Petitioners fail to point to any evidence that the Program itself authorizes anyone to conduct seismic testing or engage in any other activity detrimental to wildlife in the Program areas. Nor does anything in the record suggest that seismic testing or other exploration activities have been or will be conducted without being separately authorized by the Secretary of Interior. Cf.
. See note 1, supra.
Concurrence Opinion
concurring:
I join the court’s opinion, but I write separately to emphasize two points. First, because the court holds petitioners have standing to bring their climate change claims on their “procedural theory” of standing, Op. at 479-80, it is unnecessary for the court to reach the question whether petitioners would also have standing under their “substantive theory” of standing, Op. at 475-79, see, e.g., U.S. Telecom Ass’n v. FCC,