Halverson, Paul D. v. Slater, Rodney E.Halverson, Paul D. v. Slater, Rodney E.
This appeal turns on the authority of the Secretary of the Department of Transportation (Secretary) to delegate certain responsibilities under the Great Lakes Pilotage Act of 1960,
We now reverse. Pursuant to the first step of the familiar
Chevron
analysis, we conclude that the plain meaning of
I. BACKGROUND
The Corporation was established in 1954 by an Act of the Congress, Pub.L. No. 83-558, 68 Stat. 93 (codified as amended at
Construction of the Saint Lawrence Seaway was completed in 1959, opening the Great Lakes to international shipping. Not surprisingly, opening of the Seaway brought with it a marked increase in the volume of both domestic and international marine traffic navigating the Great Lakes, their tributaries and their outlets. As a result, one year later the Congress enacted GLPA.
See
Pub.L. No. 86-555, 74 Stat. 259 (1960) (codified as amended at
As noted, in 1967 the Department of Transportation took over supervision of the Corporation. That same fiscal year, administrative responsibility for the United States Coast Guard was transferred from the Department of the Treasury to the Transportation Department.
3
See
Pub.L. No. 89-670, § 6(b)(1), 80 Stat. 931 (1966) (codified as amended at
In December 1995, the Secretary published a final rule that rescinded the standing delegation of GLPA functions to the Coast Guard and redelegated eleven “essentially economic” functions to the Corporation.
See
Organization and Delegation of Powers and Duties; Transfer of Great Lakes Pilotage Authority From the Coast Guard to the Saint Lawrence Seaway Development Corporation, 60 Fed.Reg. 63,444 (1995) (codified at
By Memorandum Opinion and Order dated April 23, 1996 the district court granted the Secretary’s cross-motion for summary judgment, finding that both the first and second steps of the analysis set forth in
Chevron
compelled a holding in his favor.
Halverson,
II. DISCUSSION
We review the district court’s award of summary judgment
de novo. See Diamond v. Atwood,
The [Transportation] Secretary may delegate, and authorize successive delegations of, duties and powers of the. Secretary to an officer or employee of the Department.
The Secretary may delegate the duties and powers conferred by this subtitle [Subtitle II entitled “Vessels and Seamen”] to any officer, employee, or member of the Coast Guard, and may provide for the subdelegation of those duties and powers.
The
Chevron
framework governs our interpretation of
Under this analysis, the court must first exhaust the traditional tools of statutory construction to determine whether Congress has spoken to the precise question at issue. ... If the court can determine congressional intent, then that interpretation must be given effect. ... If, on the other hand, the statute is silent or ambiguous with respect to the specific issue, then the court will defer to a permissible agency construction of the statute.
Natural Resources Defense Council, Inc. v. Browner,
We believe the lower court erred by failing to “exhaust the traditional tools of statutory construction,”
NRDC,
A. The Language of
The Secretary’s interpretation of
Perhaps recognizing the weakness of such an interpretation of
The Secretary’s view of
The Secretary next argues that because the Congress did not
expressly
prohibit delegation of Subtitle II powers and duties to a non-Coast Guard official in
Even if the proscriptions were in the same enactment as
Most significantly,
[t]o suggest, ... that Chevron step two is implicated any time a statute does not expressly negate the existence of a claimed administrative power (i.e. when the statute is not written in “thou shalt not” terms), is both flatly unfaithful to the principles of administrative law ... and refuted by precedent. ... Were courts to presume a delegation of power absent an express withholding of such power, agencies would enjoy virtually limitless hegemony, a result plainly out of keeping with Chevron and quite likely with the Constitution as well.
Railway Labor Executives’ Ass’n v. National Mediation Bd.,
B. The Legislative History of
The Secretary’s attempts to overcome the plain meaning of
Nevertheless, the Secretary refers to language in the House Report accompanying the 1983 recodification of Subtitle II, which, in relevant part, recites:
The word “shall” is used in the mandatory and imperative sense. The word “may” is used in the permissive sense, as “is permitted to” and “is authorized”. The words “may not” aré used in a prohibitory sense, as “is not authorized to” and “is not permitted to”.
H.R.Rep. No. 98-338, at 121 (1983),
reprinted in
46 U.S.C.A. Legislative History App. at 529 (West Supp.1997) (emphasis added). The Secretary thus argiies that reading the “may” language in
To say that “may” is permissive does not lead to the conclusion that it permits
everything,
irrespective of other unambigu
The other item of legislative history the Secretary points to is a portion of the Senate Report accompanying the 1983 recodification of Subtitle II, which states in relevant part:
Section 2104 sets forth broad delegation authority for the Secretary, including the authority to delegate duties and powers under subtitle II to any Coast Guard official.
S.Rep. No. 98-56, at 12 (1983) (emphasis added). The Secretary contends that “including” means that the Congress intended to empower the Secretary to delegate Subtitle II powers and duties to non-Coast Guard officials or employees. While this is one possible interpretation of the “including” language, the non-Coast Guard officials suggested by “including” are more likely the designated Customs Service officials who can act for Coast Guard officials pursuant to
C. Implied Limits on the Secretary’s
The conclusion that
Like the provisions at issue in
Giordano,
While the trial court erred in not applying
Chevron
step one to both sections, we do not mean to suggest that the error lies in not using the
identical Chevron
step with respect to both. Rather, we conclude that
Chevron
step one requires that the plain language of
III. CONCLUSION
For the foregoing reasons we conclude that the Secretary lacks authority to delegate GLPA powers and duties to the Corporation. Accordingly, we reverse the grant of summary judgment and remand to the district court with instructions to vacate the Secretary’s December 1995 final rule — Organization and Delegation of Powers and Duties; Transfer of Great Lakes Pilotage Authority From the Coast Guard to the Saint Lawrence Seaway Development Corporation, 60 Fed.Reg. 63,444 (1995) (codified at
So ordered.
Notes
.
The Corporation is authorized and directed to construct, in United States territory, deep-water navigation works substantially in accordance with the "Controlled single stage project, 238-242” ... together with necessary dredging in the Thousand Islands section; and to operate and maintain such works in coordination with the Saint Lawrence Seaway Authority of Canada....
.
For the purpose of carrying out its functions under this chapter the Corporation—
(5) may make and carry out such contracts or agreements as are necessary or advisable in the conduct of its business;
(7) may appoint and fix the compensation, in accordance with the provisions of chapter 51 and subchapter III of chapter 53 of Title 5, of such officers, attorneys, and employees as may be necessary for the conduct of its business, define their authority and duties, and delegate to them such of the powers vested in the Corporation as the Administrator may determine;
(9) shall determine the character of and the necessity for its obligations and expenditures, and the manner in which they shall be incurred, allowed and paid, subject to provisions of law specifically applicable to Government corporations;
(11) may provide services and facilities necessary in the maintenance and operation of the seaway....
. When the Department of Transportation was established in 1966, Pub.L. No. 89-670, § 2(b)(1), 80 Stat. 931 (1966), the Congress transferred to it various functions and administrative responsibilities of other agencies, including responsibility for the Coast Guard and the Corporation as well as GLPA powers and duties.
. The eleven functions include:
(1) Investigation and prosecution of violations of [GLPA]; (2) registration, qualification, and training of registered pilots; (3) association working rules and dispatching procedures; (4) pilot working conditions; (5) selection of pilots; (6) number of pilots; (7) availability of pilots; (8) number of pilotage pools; (9) articles of association; (10) auditing; and (11) ratemaking.
60 Fed.Reg. 63,444 (1995).
. Both parties apparently assume that the Administrator of the Corporation is "an officer or employee of the Department” for the purpose of
.
. Structurally, it would also be strange for the Congress to address this matter in a portion of Subtitle II that does not refer even indirectly to the Coast Guard’s transfer to Navy control.
. The trial court found (and the Secretary argues) that
expressio unius
cannot be applied unless the statute possesses some undefined measure of specificity that
. The canon of construction here urged by the Secretary — namely, that we should infer a legislative intent to permit delegation where Congress has not expressly proscribed it, having proscribed it elsewhere, differs from the expressio unius canon. Expressio unius has been described as follows:
Although the expressio unius maxim has had widespread legal application, there is nothing peculiarly legal about it. It is a product of logic and common sense. It acts merely as an aid to determine legislative intent and does not constitute a rule of law. It expresses the leam-ing of common experience that when people say one thing they do not mean something else.
2A Norman J. Singer, Sutherland Stat. Const. § 47.24 (5th ed.1992) (internal quotation marks and notes omitted). The canon relied on by the Secretary, however, according to the same commentator, works differently:
Caution must be exercised in applying the rule that one statute will be interpreted to correspond to analogous but unrelated statutes for the reason that by way of contrast an inclusion or exclusion may show an intent or convey a meaning exactly contrary to that expressed by analogous legislation. Therefore, the rule tends to be of greater value where analogy is made to several statutes or a general course of legislation.
Id. vol. 2B, § 53.05 (notes omitted). But there is no course of legislation expressly proscribing delegation of Subtitle II powers and duties. Instead, the Secretary points only to a provision of the Port and Tanker Safety Act of 1978, codified as amended at
. While ordinarily we have no need to refer to legislative history at
Chevron
step one, "[Reference to statutory design and pertinent legislative history may often shed new light on congressional intent, notwithstanding statutory language that appears superficially clear.”
NRDC,
. Indeed, if the Secretary relied on the same “permissive” definition of "may” in construing