BERYL A. HOWELL, Chief Judge
I. BACKGROUND
The statutory framework governing the plaintiff's claims is discussed first, followed by the details of the loan and environmental assessment at issue in this case.
A. Statutory Framework
1. NEPA Environmental Assessments
The NEPA represents "a broad national commitment to protecting and promoting environmental quality," Robertson v. Methow Valley Citizens Council ,
"The Council of Environmental Quality (CEQ), established by NEPA with authority to issue regulations interpreting it, has promulgated regulations to guide federal agencies in determining what actions are subject to" the EIS requirement. Dep't of Transp. v. Pub. Citizen ,
All federal agencies are required to comply with the NEPA and the CEQ regulations, but the regulations "allow each agency flexibility in adapting its implementing procedures."
Class II actions include certain actions that "involve a livestock-holding facility or feedlot."
2. The FSA's Guaranteed Farm Loan Program
The FSA, formerly known as the "Farmers Home Administration," oversees agricultural support programs including, as relevant here, the Guaranteed Farm Loan Program. See
Once the FSA has guaranteed a loan, "[l]enders are responsible for servicing the entire loan in a reasonable and prudent manner, protecting and accounting for the collateral, and remaining the mortgagee or secured party of record."
This lawsuit arose from nonparty One More Haul farm's ("OMH's") application for an FSA-guaranteed loan "to construct and operate a poultry concentrated animal feeding operation," or "CAFO," in Caroline County, Maryland, on a 114.9-acre parcel of land. Compl. ¶¶ 1, 46. According to the Complaint, OMH applied for a loan guarantee through the Guaranteed Farm Loan Program in 2015 "in order to purchase land and construct and operate a poultry CAFO on it, consisting of four broiler chicken houses, a manure structure, and a mortality composting structure."
As required by the NEPA and the corresponding regulations, the FSA completed a draft EA describing the environmental impacts of the proposed CAFO, which was made available for public comment on May 22, 2015.
The plaintiff alleges that, during the EA process, "FSA initially failed to make many key documents available to Plaintiff and the public during the comment period" and that the plaintiff "was forced to file a Freedom of Information Act (FOIA) request to obtain them." Compl. ¶ 44. In addition, the plaintiff argues that the EA
C. Litigation History
Plaintiff FWW, a District of Columbia "non-profit corporation that champions healthy food and clean water for all by standing up to corporations that put profits before people and advocating for a democracy that improves people's lives and protects the environment,"
In accord with the Scheduling Order proposed by the parties and entered by the Court, see Minute Order (dated Nov. 13, 2017), on December 6, 2017, the defendants produced an Administrative Record and filed an index of the Administrative Record with the Court, see Notice of Lodging of AR Index ("AR Notice") at 1, ECF No. 14. Shortly thereafter, however, the parties advised that "they ha[d] reached an impasse as to the documents that should be included in the Administrative Record." Jt. Status Report (dated Feb. 16, 2018) at 2, ECF No. 16. The plaintiff contended that the Administrative Record was incomplete because it did not include "records related to the Farm Service Agency's federal loan guarantee,"
II. LEGAL STANDARD
A. Motion for Judgment on the Pleadings
Federal Rule of Civil Procedure 12(c) authorizes a party to move for judgment "[a]fter the pleadings are closed-but early enough not to delay trial." FED. R. CIV. P. 12(c). A Rule 12(c) motion "shall be granted if the moving party demonstrates that no material fact is in dispute and that it is entitled to judgment as a matter of law." Stewart v. Evans ,
A court may not consider "matters outside the pleadings" without converting the motion to one for summary judgment. FED. R. CIV. P. 12(d) ; see also Stephens v. Kemp ,
B. Motion to Supplement an Administrative Record
Under the APA, "the court shall review the whole record or those parts of it cited by a party."
Hence, "[i]t is a widely accepted principle of administrative law that the courts base their review of an agency's actions on the materials that were before the agency at the time its decision was made." IMS, P.C. v. Alvarez ,
Supplementation of the administrative record is only appropriate in exceptional or "unusual" circumstances. City of Dania Beach v. FAA ,
The defendants have moved for judgment on the pleadings, arguing that the plaintiff's claims are moot and that the plaintiff lacks standing to bring this action. See Defs.' Mem. at 5- 14. The plaintiff has also moved to supplement the Administrative Record. See Pl.'s Mot. 15. Compel at 9-21. These issues are addressed in turn.
Under Article III of the United States Constitution, this Court "may only adjudicate actual, ongoing controversies." District of Columbia v. Doe ,
"A case becomes moot ... 'only when it is impossible for a court to grant any effectual relief whatever to the prevailing party.' " Campbell-Ewald Co. v. Gomez , --- U.S. ----,
The defendants contend that the plaintiff's claims are moot because they "are based on a 2015 EA/FONSI for a poultry farm that is completely constructed and operational," Def.'s Mem. at 7, and because the FSA "has no direct authority over the farm's operations" or "legal authority over the project in question," Defs.' Reply Supp. Mot. J. Pleadings ("Defs.' Reply") at 7, ECF No. 23. The plaintiff counters that these claims are not moot because "completed construction of the CAFO does not moot" the claims, Pls.' Opp'n Defs.' Mot. J. Pleadings ("Pl.'s Opp'n") at 15, ECF No. 20 (capitalization omitted), given that the defendants "have continuing authority, control and obligations related to the ongoing loan guarantee," id. at 11 (capitalization omitted). The plaintiff has the better arguments.
The defendants fail to acknowledge that the agency action at issue-the FSA's loan guarantee for the OMH CAFO-is ongoing. The facts in the complaint indicate that the FSA approved the loan guarantee
This continued involvement indicates that the plaintiff can be afforded effectual relief through a court order. For example, in response to a court order requiring the FSA to undertake additional environmental assessments, the FSA could revoke its guarantee or add conditions to its continuing guarantee of the loan, which could include requiring additional environmental restrictions or mitigating measures. See
Similarly, the plaintiff correctly points to Buffalo River Watershed Alliance v. Department of Agriculture , No. 13-cv-450,
The defendants cite several cases in support of their argument that completion of the CAFO renders the plaintiff's claims moot, but these cases are distinguishable. In Lechliter v. University of Delaware , No. 12-cv-16,
The defendants' arguments also must be rejected as a prudential matter. Accepting the defendants' broad argument that "NEPA claims based on completed projects are moot," Defs.' Reply at 6, would strip potential plaintiffs of the ability to pursue NEPA claims for projects that are competed before a case makes its way through the judicial system. Such a conclusion might even incentivize agencies and private parties to speed through construction projects to avoid NEPA challenges. As the D.C. Circuit has recognized, "[i]f the fact that projects are built and operating were enough to make a case nonjusticiable, agencies and private parties could merely ignore the requirements of NEPA ..., build their structures before a
B. The Plaintiff Has Standing to Pursue Its Claims
The defendants next contend that the plaintiff lacks standing because "its alleged injury cannot be redressed by any action FSA can take." Defs.' Mem. at 7.
"[T]he requirement that a claimant have 'standing is an essential and unchanging part of the case-or-controversy requirement of Article III.' " Davis v. FEC ,
1. At Least One of the Plaintiff's Members Would Have Standing to Sue in His or Her Own Right
To establish Article III standing as an individual, a claimant must show: (1)
These traditional standing requirements differ slightly where, as here, the plaintiff seeks to enforce procedural, rather than substantive, rights. See Mendoza ,
The defendants "do not believe the Complaint demonstrates that Plaintiff has alleged a sufficiently concrete injury that is traceable to FSA." Defs.' Mem. at 8 n.1. Nonetheless, because the defendants believe that "even in the event that Plaintiff could meet those requirements, the claims cannot be redressed by any action the Agency can take,"
a) Injury in Fact and Causation
The Supreme Court has explained that "environmental plaintiffs adequately allege injury in fact when they aver that they use the affected area and are persons 'for whom the aesthetic and recreational values of the area will be lessened' by the challenged activity." Friends of the Earth, Inc. v. Laidlaw Envtl. Servs. (TOC), Inc. ,
The plaintiff has established an injury in fact "with the manner and degree of evidence required" at this stage in the litigation. Lujan ,
Moreover, the injury in fact alleged by the plaintiff through its members is traceable to and caused by the defendants' actions. Under the relaxed procedural standing requirements, the court "assumes the causal relationship between the procedural defect and the final agency action," but the plaintiff "must still demonstrate a causal relationship between the final agency action and the alleged injuries." Ctr. for Law & Educ. ,
b) Redressability
The defendants focus on redressability, arguing that "[b]ecause the remedy sought by the Plaintiff will not redress Plaintiff's injuries, the Plaintiff lacks standing, and its claims should be dismissed." Defs.' Mem. at 8. The plaintiff, in turn, argues that, "[f]or many of the same reasons that this case is not moot, an order from this Court vacating or otherwise enjoining the loan guarantee 'at least until alleged NEPA deficiencies are cured' will redress Plaintiff's injuries." Pl.'s Opp'n at 21. The plaintiff, again, has the better argument.
"Redressability examines whether the relief sought, assuming that the court chooses to grant it, will likely alleviate the particularized injury alleged by the plaintiff." Fla. Audubon Soc'y ,
The plaintiff satisfies the relaxed redressability requirement for procedural violations. By virtue of the FSA's continuing guarantee of the OMH CAFO's loan, the FSA continues to exert some control over the CAFO and maintain some involvement in the CAFO's ongoing operations. If, for example, a court order directed the FSA to withdraw its loan guarantee pending further environmental assessments or to conduct a supplemental environmental assessment and impose additional conditions on its guarantee, the plaintiff's alleged injury would, in some measure, be redressed. Indeed, the defendants concede that "this Court has the power to remand the EA/FONSI for reconsideration or further explanation and to vacate the loan guarantee," Defs.' Mem. at 10, but they argue that "neither of those actions would prevent the continuing operation of the poultry farm,"
The defendants nevertheless contend that, despite the relaxed redressability standard for procedural violations, "[d]emonstrating redressability is substantially more difficult when the plaintiff is not subject to the challenged government action" and "[w]hen the plaintiff seeks to change the behavior of the defendant only as a means to alter the conduct of a third party." Defs.' Mem. at 8 (internal quotation marks omitted). In cases where "the necessary elements of causation and redressability ... hinge on the independent choices of the regulated third party, 'it becomes the burden of the plaintiff to adduce facts showing that those choices have been or will be made in such manner as to produce causation and permit redressability of injury.' " Nat'l Wrestling Coaches Ass'n v. Dep't of Educ. ,
The defendants cite Center for Biological Diversity v. U.S. Department of Housing & Urban Development ,
The defendant also attempts to distinguish Buffalo River , a case with substantially similar facts to the pending case, arguing that Buffalo River "is not supported by reasoning or law, is contrary to the law of this Circuit and has no binding authority here." Defs.' Reply at 13. Although that case is not binding, it is persuasive. To recap, in Buffalo River , the plaintiffs claimed that the FSA and the Small Business Administration violated the NEPA by guaranteeing loans for a pig CAFO without conducting adequate EAs. Buffalo River ,
2. The Plaintiff Satisfies the Remaining Requirements for Organizational Standing
The remaining requirements for organizational standing are easily satisfied in this case. The interest that the plaintiff seeks to protect-an interest in remedying the environmental harms caused by the OMH CAFO-is germane to the plaintiff's purpose of "champion[ing] healthy food and clean water for all" and "reduc[ing] CAFO pollution." Compl. ¶ 8. Finally, neither the claims asserted nor the injunctive relief requested would require the participation of the individual members. Thus, the plaintiff meets the requirements for organizational
C. The Plaintiff's Motion to Compel the Complete Administrative Record
The plaintiff has moved to compel the complete Administrative Record, contending that the defendants have "refuse[d] to include in the administrative record any documents related to the loan guarantee, including the loan guarantee itself, other than those documents also related to FSA's NEPA analysis." Pl.'s Mot. Compel at 2. According to the plaintiff, "[t]he loan-related records are critical to evaluating the legality of both of the interrelated federal actions challenged-the loan guarantee approval and the final EA/FONSI for the loan guarantee-and Plaintiff has concrete evidence that these records were before the agency decision makers." Id. at 9. In addition, the plaintiff notes that the defendants have "included such documents in the administrative record in a recent, similarly situated case." Id. (referring to Buffalo River ,
The defendants previously refused to include the loan-related documents in the Administrative Record, see Jt. Status Report at 2-3; Pl.'s Mot. Compel at 3-6. After asking for an extension of time to respond to the plaintiff's motion, the defendants filed a one-page response explaining that they now "agree to provide the Court and the Plaintiff with the financial documents considered by FSA in issuing the guarantee." Defs.' Opp'n Pl.'s Mot. Compel AR ("Defs.' Opp'n Mot. Compel") at 1, ECF No. 22. Although the defendants "do not believe the financial record documents are necessary for judicial review of this case" because the plaintiff "challenges only whether FSA completed an appropriate environmental analysis under NEPA and does not dispute the FSA's financial analysis,"id. , the defendants have agreed to provide the requested documents "provided that the parties can agree to a protective order that ensures the safety and careful protection of the sensitive financial and personal information contained in the documents,"
IV. CONCLUSION
For the foregoing reasons, the defendants' motion for judgment on the pleadings is denied and the plaintiff's motion to compel the complete administrative record is granted. An appropriate Order accompanies this Memorandum Opinion.
In support of the plaintiff's motion to compel, the plaintiff offered a declaration with accompanying exhibits. See generally Decl. of Tarah Heinzen (FWW) ("Heinzen Decl."), ECF No. 19. Although each exhibit and submission from the parties has been reviewed, only those exhibits necessary to provide context for resolution of the pending motions are cited herein. Moreover, although the defendants' motion is styled as a "Motion to Dismiss the Plaintiff's Complaint," Defs.' Mot. at 1, the defendants are seeking such dismissal pursuant to Federal Rule of Civil Procedure 12(c) and thus seek "judgment on the pleadings" under that Rule,
The defendants' claims essentially amount to an argument that the complaint should be dismissed, under Federal Rule of Civil Procedure 12(b)(1), for lack of subject-matter jurisdiction. Under either the Rule 12(b)(1) or the Rule 12(c) standard, however, the defendants' motion would be dismissed for the reasons stated herein.
The FSA updated its regulations in August 2016, withdrawing the regulations previously codified at
The details of the approved loan, including the term of the loan and the remaining balance of the loan, remain unknown on the record before the Court.
The defendants also argue that the plaintiff lacks standing to pursue its NEPA claims "because it falls outside the 'zone of interests' regulated by" the Consolidated Farm and Rural Development Act ("CONACT"), 7 § 1921, et seq. , given that the "Plaintiff is not an intended beneficiary of the CONACT or its implementing regulations because Plaintiff is neither an agricultural lender nor a farm loan applicant." Defs.' Mem. at 11-12. The plaintiff does not allege any claims under the CONACT, however, and does not cite to that law anywhere in its complaint. See Pls.' Opp'n at 31-33. Thus, the defendants now agree that "the Court need not adjudicate whether Plaintiff falls within the zone of interest of the CONACT," Defs.' Reply at 16, and that issue will not be addressed.
Regardless of the defendants' cooperation, the plaintiff has satisfied the legal requirements for supplementation of the Administrative Record. The plaintiff's motion explains that "[d]efendant Deanna Dunning was the FSA Farm Loan Officer who was responsible for both reviewing farm loan guarantee applications and preparing the environmental assessments," Pl.'s Mot. Compel at 14 (emphasis in original), and thus that "the environmental analysis documents and the loan guarantee application documents are part of one combined agency decision-making process,"
