KIEWIT POWER CONSTRUCTORS CO., PETITIONER v. SECRETARY OF LABOR, U.S. DEPARTMENT OF LABOR, RESPONDENT
No. 18-1282
United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT
Argued October 10, 2019 Decided May 15, 2020
Consolidated with 18-1317
On Petitions for Review of a Final Order of the Occupational Safety & Health Review Commission
Scott Glabman, Senior Appellate Attorney, U.S. Department of Labor, argued the cause for petitioner Secretary of Labor. With him on the briefs were Edmund C. Baird, Associate Solicitor for Occupational Safety and Health, and Charles F. James, Counsel for Appellate Litigation. Brian A. Broecker and Louise M. Betts, Attorneys, entered appearances.
Victoria L. Bor and Esmeralda Aguilar were on the brief for amicus curiae North America‘s Building Trades Unions in support of petitioner, Secretary of Labor, U.S. Department of Labor, seeking reversal of OSHRC‘s final order.
Arthur G. Sapper argued the cause for respondent Kiewit Power Constructors Co. With him on the briefs were John F. Martin and Melissa A. Bailey.
Bradford T. Hammock was on the brief for amicus curiae National Association of Home Builders in support of Kiewit Power Constructors Co. seeking affirmance of OSHRC‘s final order.
Before: HENDERSON, GRIFFITH and MILLETT, Circuit Judges.
Opinion for the Court filed by Circuit Judge HENDERSON.
In 2011 the Occupational Safety and Health Administration (OSHA) cited Kiewit Power Constructors Co. (Kiewit) for a “serious” violation of
I.
A.
The OSH Act established a comprehensive regulatory scheme “to assure so far as possible every working man and woman in the Nation safe and healthful working conditions.”
A key deficiency of then-existing federal protections was that they did not extend to all employers. For example, safety standards promulgated pursuant to the Walsh-Healey Public Contracts Act of 1936, 49 Stat. 2036 (codified as amended at
The OSH Act aimed to close this coverage gap by facilitating the development of “uniformly applied” standards, S. Rep. No. 91-1282, at 1, to cover all “businesses affecting interstate commеrce,”
“promulgate, modify, or revoke” any OSH standard in accordance with notice-and-comment rulemaking procedures.
Alternatively, section 6(a) provided an expedited, albeit temporary, path for the issuance of standards. Although existing protective measures had failed to abate industrial risk adequately, there remained value in “establish[ing] as rapidly as possible national occupational safety and health standards with which industry is familiar.” S. Rep. No. 91-1282, at 6. Thus, for a two-year period following the OSH Act‘s effective date, the Secretary was to, “as soon as practicable” and “[w]ithout regard to” the rulemaking procedures in section 6(b) or the Administrative Procedure Act (APA),
“established Federal standard,” by comparison, is “any operative occupational safety and health standard established by any agency of the United States . . . or contained in any Act of Congress” as of the OSH Act‘s enactment.
The Secretary soon invoked his section 6(a) authority and, excused from formal rulemaking, adopted scores of national consensus and established Federal standards as OSH standards. See National Consensus Standards and Established Federal Standards, 36 Fed. Reg. 10,466 (May 29, 1971). Part 1910 was added to Title 29 of the Code of Federal Regulations to house the new OSH standards. Id. Not all established Federal standards, however, were adopted into Part 1910 in the same manner. The CSA standards codified in Part 19263—promulgated a mere eleven days before the OSH Act‘s effective date—were incorporated by reference in Subpart B. See id. at 10,469 (adopting
employers operating on the navigable waters of the United States,
The Walsh-Healey standards, however, were given new designations elsewhere in Part 1910. Relevant here, Walsh-Healey‘s “quick-drenching” eyewash standard,
Standards, 36 Fed. Reg. at 10,468 (adopting
Any confusion was eliminated, however, when OSHA revoked
Nevertheless, questions remained as to whether—and to what extent—the construction industry was subject to the general industry standards. The Subcommittee on Editing Part 1910 for Construction Operations was convened in January 1974 to consider which general standards “may be applicable to construction operations,” Notice of Subcommittee Meeting, 39 Fed. Reg. 861 (Jan. 3, 1974), but it failed to resolve the lingering uncertainty. Years later, in February 1979, OSHA responded to petitions from “both labor and management within the construction industry . . . to develop a single set of OSHA regulations for the exclusive use of that industry.” Identification of General Industry Safety and Health Standards (29 CFR Part 1910) Applicable to Construction Work, 44 Fed. Reg. 8577 (Feb. 9, 1979). To consolidate the standards applicable to construction companies, OSHA republished Part 1926 along with the general
applicable to construction work,” id., including the quick-drenching provision, id. at 8589. OSHA‘s action was not a “permanent recodification,” however, and merely “provide[d] a better public understanding and awareness of OSHA‘s enforcement policy regarding hazards in construction.” Id. at 8577.
Although OSHA intermittently continued to issue guidance on applicable construction standards, it was not until June 30, 1993, that it formally designated applicable Part 1910 standards as Part 1926 standards. See Incorporation of General Industry Safety and Health Standards Applicable to Construction Work, 58 Fed. Reg. 35,076 (June 30, 1993). The quick-drenching provision thereby became a construction standard and received its own Part 1926 designation, at
B.
Kiewit constructs power plants and related generation facilities across North America. On August 3, 2011, OSHA visited Kiewit‘s worksite in Rogersville, Tennessee. It cited Kiewit for a “serious” violation5 of
quick drenching facilities were not available.” J.A. 14.6 OSHA required Kiewit to abate the violation and proposed a civil penalty of $3,400. Id. Kiewit timely contested the citation.
The OSH Act allocates regulatory tasks between two distinct administrаtive actors. Whereas the Secretary is “responsib[le] for setting and enforcing workplace health and safety standards,” the Commission “is assigned to ‘carr[y] out adjudicatory functions.‘” Martin, 499 U.S. at 147 (second alteration in original) (quoting
Before the ALJ, Kiewit filed a Motion to Dismiss or for Summary Judgment, asserting that
Both the Secretary and Kiewit petitioned the Commission for discretionary review. The Secretary challenged the vacatur of his citation and Kiewit argued that it was entitled to a declaratory order.
The Commission vacated the citation on September 28, 2018, over the dissent of one Commissioner. OSHRC Decision at 1446. Despite reaching the same result as the ALJ, the Commission followed a different path. Framing the issue as whether section 6(a) authorized the Secretary to adopt an established Federal standard—in this case, the Walsh-Healey quick-drenching provision—as an OSH standard and, without notice-and-comment rulemaking, broaden its scope to include industries not covered by the source standard, the Commission found “the 1993 codification . . . irrelevant in that regard.” Id. at 1448 & n.6. In other words, if the quick-drenching provision already applied to the construction industry by virtue of earlier OSHA action, namely, the 1993 action merely formalized matters. The validity of
The Commission determined that “section 6(a) . . . is silent as to whether the Secretary may apply ‘any established Federal standard’ adopted ‘as an occupational safety or health standard’ to industries beyond those the original standard covered” and “[t]he Secretary concede[d] as much.” Id. at 1448. Despite section 6(a)‘s silence, the Commission nevertheless concluded that the Secretary‘s interpretation of his authority thereunder was not entitled to Chevron deference.
First, it viewed the promulgation of
The Secretary‘s interpretation was “also unreasonable in light of the language of [section 6(a)], its statutory context, and the statutory history.” Id. at 1450 (citing Gen. Motors Corp. v. Ruckelshaus, 742 F.2d 1561, 1570 (D.C. Cir. 1984)). Section 6(a) did not authorize substantive changes to preexisting standards—a point the Secretary does not dispute. Id. at 1451. Seeing no distinction between a standard‘s protective terms and its scope, the Commission concluded that extending an established Federal standard to a new industry effected a substantive change and was therefore impermissible. Id. The Secretary‘s interpretation would, contrary to congressional intent, subject employers to standards without first giving them an opportunity to provide input and, moreover, would create “absurdities” by applying standards without regard to the nuances of a given employment setting. Id. at 1450–51.
Finally, the Secretary‘s reliance on Commission and circuit court precedent proved unavailing, as the Commission distinguished Bechtel Power Co., 4 BNA OSHC 1005 (No. 5064, 1976), aff‘d, 548 F.2d 248 (8th Cir. 1977), and American Can Co., 10 BNA OSHC 1305 (Nos. 76-5162, 77-773, 78-
4478, 1982), and similarly found Diebold, Inc. v. Marshall, 585 F.2d 1327 (6th Cir. 1978), and Lee Way Motor Freight, Inc. v. Secretary of Labor, 511 F.2d 864 (10th Cir. 1975), inapposite, see OSHRC Decision at 1454.
In sum, the Commission vacated Kiewit‘s serious violation because
Kiewit petitioned for review in our court, challenging the Commission‘s order insofar as it declined to grant Kiewit‘s requested declaratory order. The Secretary petitioned for review in the Tenth Circuit, see
II.
“We begin, of course, with our jurisdiction.” Capitol Sprinkler Inspection, Inc. v. Guest Servs., Inc., 630 F.3d 217, 221 (D.C. Cir. 2011). Under OSH Act section 6(f), “[a]ny person who may be adversely affected by a[n OSH] standаrd” can seek pre-enforcement judicial review of the standard‘s validity “at any time prior to the sixtieth day after such standard is promulgated.”
It was not initially apparent how these provisions interacted because “[s]ection 6(f) is silent concerning its preclusive effect on post pre-enforcement judicial review of section 6(a) regulations.” Deering Milliken, Inc. v. Occupational Safety & Health Review Comm‘n, 630 F.2d 1094, 1099 (5th Cir. 1980). The question, then, was whether procedural challenges could be raised at any time or only during the sixty-day pre-enforcement review period set out in section 6(f). See id. at 1097–98. In some circuits, only substantive validity claims could be considered in an enforcement proceeding, see, e.g., Advance Bronze, Inc. v. Dole, 917 F.2d 944, 951–52 (6th Cir. 1990); Nat‘l Indus. Constructors, Inc. v. Occupational Safety & Health Review Comm‘n, 583 F.2d 1048, 1052–53 (8th Cir. 1978); others permitted both substantive and procedural challenges, see, e.g., Marshall v. Union Oil Co. of Cal., 616 F.2d 1113, 1117–18 (9th Cir. 1980); Deering Milliken, 630 F.2d at 1099. We
adopted the latter approach in Simplex Time Recorder Co. v. Secretary of Labor, 766 F.2d 575 (D.C. Cir. 1985), concluding “that Congress intended review of the validity of section 6 standards to be available in enforcement proceedings before the Commission, and that Congress drew no distinction between procedural and substantive сhallenges in this regard,” id. at 583 n.2. Thus, under Simplex, Kiewit‘s procedural challenge to the quick-drenching provision “would likely be allowed.” OSHRC Decision at 1454 n.1 (Attwood, Comm‘r, dissenting).
The Secretary failed to contest the timeliness of Kiewit‘s challenge before the Commission, id., and the parties do not dispute our jurisdiction under
We conclude that Simplex remains binding precedent and, accordingly, we have jurisdiction of this petition. Granted, JEM and later decisions have strictly construed statutory limitation periods, emphasizing the Congress‘s “determin[ation] that the agency‘s interest generally lies in prompt review of agency regulations.” JEM, 22 F.3d at 325 (quoting Mountain States Tel. & Tel. Co. v. FCC, 939 F.2d 1035, 1040 (D.C. Cir. 1991)). But the fact that generalized principles of finality may bar untimely procedural attacks under оther statutes says nothing about the viability of such a challenge under the OSH Act. Although we have differentiated between procedural and substantive validity in other contexts, we have not expressly rejected Simplex‘s conclusions and the JEM line of precedent has not addressed the OSH Act specifically. Indicia of congressional intent can vary from one statute to another and we must take care to conduct an individualized inquiry. Indeed, in Simplex itself we “express[ed] no opinion as to the interpretation of any other statutes that include similar provisions.” 766 F.2d at 583 n.2.
The Secretary‘s criticism that Simplex contained no independent analysis of the OSH Act‘s legislative history is not especially persuasive. Although the relevant discussion in Simplex is limited to a footnote, it does not follow that this court therefore adopted by rote the position taken by the majority of our sister circuits.
Music, Inc. v. FCC, 274 F.2d 543 (D.C. Cir. 1958), cert. denied, 361 U.S. 813 (1959), “this court has repeatedly distinguished indirect attacks on the substantivе validity of regulations initiated more than sixty days after their promulgation from like attacks on their procedural lineage.” NLRB Union v. FLRA, 834 F.2d 191, 195 (D.C. Cir 1987). Yet Simplex did not cite Functional Music or any related case; it relied entirely on persuasive authority addressing the unique considerations underlying the OSH Act‘s review scheme. See 766 F.2d at 582 n.2. In other words, the Simplex court found the Congress‘s intent behind the OSH Act—not generalized finality concerns—critical to the question of section 6(f)‘s preclusive effect.
Equally unavailing is the Secretary‘s reliance on RSR Corp. v. Donovan, 747 F.2d 294 (5th Cir. 1984). In RSR Corp., the Fifth Circuit declined to extend Deering Milliken—one of the cases Simplex chiefly relied upon—and did not entertain a substantive validity challenge in an enforcement proceeding. Id. at 302. The Secretary curiously claims that Simplex lacked “the benefit of . . . [this] subsequent decision,” Sec‘y‘s Suppl. Br. 15, but Simplex was decided over six months after RSR Corp., compare Simplex, 766 F.2d at 575 (July 5, 1985), with RSR Corp., 747 F.2d at 294 (November 26, 1984). Moreover, RSR Corp. is readily distinguishable. Whereas the standards at issue in Deering Milliken, Simplex and this case were adopted under section 6(a), the challenged regulation in RSR Corp. was promulgated under section 6(b), a distinction the Fifth Circuit took care to emphasize. See RSR Corp., 747 F.2d at 300–01. Employers may have been “lulled” by the fact that section 6(a) standards were supposed to “be pre-existing and familiar to industry” and it would have been “quite burdensome to comb through every 6(a) regulation and object to inappropriate promulgations within sixty days, considering the ‘multitude of regulations (which) could have been promulgated without
notice or hearing within two years of the enactment of‘” the OSH Act. Deering Milliken, 630 F.2d at 1099 (quoting Union Oil, 616 F.2d at 1118). RSR, on the other hand, “was neither ‘lulled’ nor inactive with respect to” the challenged regulation. RSR Corp., 747 F.2d at 301. It participated not only in the notice-and-comment process mandated by section 6(b), but also in рre-enforcement judicial review under section 6(f). Id. at 298. Plainly, different finality interests are implicated if an employer has in fact had ample opportunity to express validity concerns and tries for a second bite at the apple.
We see no reason to disregard Simplex‘s determination that the OSH Act allows for a procedural challenge in an enforcement proceeding, at least for section 6(a) standards. See also Deering Milliken, 630 F.2d at 1099 (“[T]he potential number and technical complexity of summarily promulgated regulations[] makes it particularly inappropriate to find section 6(f) a bar to procedural attack[s] on 6(a) regulations.“). Accordingly, we do not reach Kiewit‘s alternative arguments, including whether section 6(f) is, in fact, non-jurisdictional.
III.
As a preliminary matter, we consider Kiewit‘s motion for leave to add rebuttal arguments, which it deems necessary in order to respond to several points raised in the reply portion of the Secretary‘s reply and cross-respondent‘s brief. We disagree. Although styled differently, Kiewit‘s motion for leave to add rebuttal arguments seeks, in effect, to file a surreply. See, e.g., Gibbons v. McBride, 124 F. Supp. 3d 1342, 1383 (S.D. Ga. 2015) (“The purpose of a [surreply] is to rebut arguments advanced in an opposing party‘s reply brief . . . .“) (citation omitted). “Surreplies are generally disfavored and [Kiewit] has not demonstrated that the requested relief is
warranted.” Hall v. U.S. Dep‘t of Labor, No. 18-5100, 2018 WL 5919255, at *1 (D.C. Cir. Nov. 1, 2018).
First, Kiewit asserts that the Secretary‘s reply brief improperly made several new arguments. It is true that “[w]e will not consider a novel contention first advanced in a reply brief,” Asociacion de Compositores y Editores de Musica Latinoamericana v. Copyright Royalty Tribunal, 809 F.2d 926, 928 (D.C. Cir. 1987), but that is not the case here. The arguments Kiewit complains of appear in the Secretary‘s principal brief, in substantially similar form. The real issue, then, is that Kiewit disagrees with the Secretary‘s position. For example, Kiewit claims the Secretary‘s reply brief added new points on legislative history but the substance of its proposed rebuttal focuses solely on the Secretary‘s purported textual mischaracterizations.8 That the Secretary draws different conclusions from the underlying sources is insufficient to justify a rebuttal. And to the extent the Secretary adopted any “new” positions, he was simply responding to contentions made by Kiewit. This is the very nature of a reply brief. See, e.g., United States v. Van Smith, 530 F.3d 967, 973 (D.C. Cir. 2008). Nor has Kiewit demonstrated that rebuttal argument is warranted to respond to several alleged misstatements in the Secretary‘s reply brief. Kiewit does not claim the offending arguments were newly raised. Instead, it simply frames the interpretive dispute as the basis for additional briefing.
Finally, Kiewit contends the Secretary‘s argument that we may not distinguish cases on grounds not used by the
Commission is inconsistent with circuit precedent. This dispute is ultimately irrelevant to our disposition because we do not decide the Secretary‘s arbitrary-and-capricious challenge. See infra at 37. In any event, rebuttal briefing is unwarranted. The Secretary‘s argument was in response to Kiewit—not the Commission—so it could not have been raised earlier than the reply brief. Although Kiewit concedes it could raise the same objections in a letter filed pursuant to Federal Rule of Appellate Procedure 28(j), it touts the fact that permitting a rebuttal argument will save ninety-two words. There are good reasons why this minute reduction, without more, does not justify a departure from the normal cross-briefing rules. In contrast to the proposed rebuttal, the Secretary would have an opportunity to respond to a 28(j) letter. Allowing rebuttal argument on these facts risks opening the door to any litigant that disagrees with the opposing party‘s arguments to evade the standard briefing requirements and gain the last word. We
IV.
We review the Commission‘s orders according to “[f]amiliar principles of administrative law” and set aside its “legal determinations . . . [if] they are ‘arbitrary, capricious, . . . or otherwise not in accordance with law.‘” A.J. McNulty & Co. v. Sec‘y of Labor, 283 F.3d 328, 331–32 (D.C. Cir. 2002) (quoting
our inquiry is “a little unusual” becаuse the Secretary and the Commission have adopted conflicting interpretations of the
“When, as here, ‘the Secretary and the Commission divide, it [is] . . . the Secretary rather than the Commission [who] is entitled to’ deference, Sec‘y of Labor v. Excel Mining, LLC, 334 F.3d 1, 6 (D.C. Cir. 2003) (alterations in original) (quoting Sec‘y of Labor v. Cannelton Indus., Inc., 867 F.2d 1432, 1435 (D.C. Cir. 1989)), ‘even where the Secretary offers his interpretation in the context of litigation before the Commission,’ S.G. Loewendick & Sons, 70 F.3d at 1294 (citing Martin, 499 U.S. at 157 (‘[T]he Secretary‘s litigating position before the Commission is as much an exercise of delegated lawmaking powers as is the Secretary‘s promulgation of a workplace health and safety standard.‘)). This approach reflects ‘the distinct functions of the Commission and of the Secretary. Because the Secretary, not the Commission, is the policymaker, we defer to the Secretary‘s interpretation . . . . We do not owe the same deference to interpretations independently offered by the Commission . . . .’ Id. at 1294 (citing Martin, 499 U.S. at 156-57). And because we ‘treat the Commission “as equivalent to a “nonpolicymaking” district court,“’ id. at 1295 (quoting Molineaux v. United States, 12 F.3d 264, 267 (D.C. Cir. 1994)), it too must defer to the Secretary‘s reasonable interpretations, see Excel Mining, 334 F.3d at 5-6.
“Under step one of Chevron, we ‘ask whether Congress has directly spoken to the precise question at issue, in which case we must give effect to the unambiguously expressed intent of Congress.‘” Sec‘y of Labor v. Nat‘l Cement Co. of Cal., 494 F.3d 1066, 1073-74 (D.C. Cir. 2007) (quoting Bluewater Network v. EPA, 372 F.3d 404, 410 (D.C. Cir. 2004) (internalquotation marks omitted)). “If the ‘statute is silent or ambiguous with respect to the specific issue,’ however, we move to the second step and defer to the agency‘s interpretation as long as it is ‘based on a pеrmissible construction of the statute.‘” Bluewater Network, 372 F.3d at 410 (quoting Chevron, 467 U.S. at 843). We agree with the Commission that the
A.
“To discern the Congress‘s intent, we generally examine the statutory text, structure, purpose and its legislative history.” Lindeen v. SEC, 825 F.3d 646, 653 (D.C. Cir. 2016) (citing Bell Atl. Tel. Cos. v. FCC, 131 F.3d 1044, 1047 (D.C. Cir. 1997)). “The starting point for our interpretation of a statute is always its language.” Cmty. for Creative Non-Violence v. Reid, 490 U.S. 730, 739 (1989) (citing Consumer Prod. Safety Comm‘n v. GTE Sylvania, Inc., 447 U.S. 102, 108 (1980)). Section 6(a) instructs the Secretary to “promulgate as an occupational safety or health standard . . . any established Federal standard,”
We recognized in Simplex that the Secretary, when acting pursuant to section 6(a), may not make a “substantially [sic] meaningful modification of the [established Federal] standard . . . during [its] transformation into an” OSH standard. 766 F.2d at 584 (quoting Deering Milliken, 630 F.2d at 1100).10 Although the Secretary contends that a modification is substantive only if it alters a standard‘s protective terms, not its scope, Kiewit maintains that extending Walsh-Healey standards to the construction industry was in fact a substantive modification in contravention of the
Healey standard that contains the quick-drenching provision. See Safety and Health Regulations for Construction, 36 Fed. Reg. 7340, 7347-48 (Apr. 17, 1971). Yet the quick-drenching provision was not carried over. Id. Any conclusion drawn from this omission is necessarily speculative. Kiewit has provided no evidence that
That said, the line between substantive and non-substantive modification is not easy to discern. According to Kiewit, “substantive modification means that one is not adopting the ‘established Federal standard.‘” Kiewit Br. 35 (citing Usery v. Kennecott Copper Corp., 577 F.2d 1113, 1117-18 (10th Cir. 1977)). But Kiewit‘s definition is far from elucidating and leaves open what it means to “not adopt” a source standard. It cannot be that any minor deviation automatically exceeds the Secretary‘s authority for he was not “required to promulgate existing . . . federal standardsverbatim.” Simplex, 766 F.2d at 584 (quoting Deering Milliken, 630 F.2d at 1100). The question, then, is how much a source standard can be altered before the modification is impermissibly substantive. As the Commission previously recognized, the answer depends on congressional intent. “[C]hanges in a source standard are permissible if they are the sort of changes that Congress allowed the Secretary to make,” Am. Can Co., 10 BNA OSHC at 1311, but, here, the
Neither Kiewit nor the Commission disputes that some modification of established Federal standards is acceptable, contemplating that the Secretary could extend the scope of such standards to cover new employers in the original industry. See OSHRC Decision at 1453 (section 6(a) allowed Secretary to expand scope of Walsh-Healey standards “to all manufacturers, not just those with federal contracts“); Kiewit Br. 38 (“[S]ubstantive change would not occur when the Walsh-Healey and Construction Safety standards . . . wеre extended to all manufacturers and constructors.“). Kiewit and the Commission draw the line, however, at the extension to employers in a different industry. But the language of the
Granted, there are some colorable arguments that the scope of a new OSH standard promulgated under section 6(a) was intended to mirror that of its source standard. Established Federal standards encompass “any operative [OSH] standard established by any agency of the United States and presently in effect.”
At the same time, the express limitations on the Secretary‘s section 6(a) authority suggest a more expansive scope for newly adopted OSH standards. The
foreclose Kiewit‘s reading that the scope of an OSH standard promulgated under section 6(a) is tied by implication to the same industry as its source standard, even if the standard now extends to additional employers within that industry.13 The plain language of the
B.
“At Chevron step two, ‘the question for the court is whether the agency‘s interpretation is based on a permissible construction of the statute in light of its language, structure, and purpose.‘” Nat‘l Treasury Emps. Union v. FLRA, 754 F.3d 1031, 1042 (D.C. Cir. 2014) (quoting AFL-CIO v. Chao, 409F.3d 377, 384 (D.C. Cir. 2005) (internal quotation marks and citations omitted)). And, as outlined supra, “[b]ecause the Commission‘s powers are solely adjudicatory,” it too “must defer to the Secretary‘s reasonable interpretations.” S.G. Loewendick & Sons, 70 F.3d at 1294. But, here, the Commission withheld deference based on its conclusion that the revocation of
1.
The Commission found the revocation of
Encino Motorcars is readily distinguishable. First, the revocation of
The plain tension between
“complete about-face,” OSHRC Decision at 1449, but, instead, was carried out to “remove[] the anomaly created by the conflicting . . . provisions,” id. at 1462 (Attwood, Comm‘r, dissenting); see also Diebold, Inc. v. Marshall, 585 F.2d at 1335 (“Given the wide variety of sources for the initial standards package and the rapidity of its promulgation, we would be frankly surprised if there were not anomalies.“) (emphasis added). Section 1910.5(c)(1) explains the interplay between a “particular standard . . . applicable to a condition, practice, means, method, operation, or process” and a general industry standard, providing that the particular standard “shall prevail over any different general standard which might otherwise be applicable.”
It makes sense that the Secretary retained
Moreover, it is a troubling proposition to withhold deference based on the absence of formal rulemaking when, if the Secretary correctly construed the boundaries of his section 6(a) authority, it
The
contentions that deference is unwarranted because “OSHA is interpreting the OSH Act so as to limit the APA,” Kiewit Br. 34, and that the APA‘s anti-supersession clause,
Kiewit‘s additional arguments against Chevron‘s application are unpersuasive. First, the “[c]ases applying Chevron-displacing rules,” Kiewit Br. 31 n.9, are inapposite because, unlike this case, they implicate unique issues justifying departure from normаl interpretive principles, including
In sum, the Commission erred in withholding Chevron deference on account of purported procedural defects. We now address its determination that thе Secretary‘s interpretation of section 6(a) is unreasonable.
2.
“[W]e must accept the [Secretary]‘s interpretation if it is merely permissible.” Wagner Seed Co. v. Bush, 946 F.2d 918, 925 (D.C. Cir. 1991). “We need not conclude that the [Secretary]‘s interpretation of the [OSH Act] is ‘the only one [he] permissibly could have adopted,’ or ‘even the interpretation deemed most reasonable by the courts.’ ” Nat‘l Treasury Emps. Union v. FLRA, 754 F.3d 1031, 1042 (D.C. Cir. 2014) (citations omitted) (first quoting Chevron, 467 U.S. at 843 n.11; then quoting Entergy Corp. v. Riverkeeper, Inc., 556 U.S. 208, 218 (2009)). Here, the Secretary‘s interpretation of his authority under section 6(a) is not “[in]consistent with the terms of the statute and not unreasonable” and “therefore, entitled to our deference.” Chippewa & Flambeau Improvement Co. v. FERC, 325 F.3d 353, 360 (D.C. Cir. 2003).
First, we disagree that the Secretary‘s interpretation creates absurdities by condoning, for example, the application of “maritime or shipbuilding standards . . . to the manufacturing industry, or construction standards . . . to the agricultural industry.” OSHRC Decision at 1451. This argument “reflects a fundamental misunderstanding of OSHA‘s regulatory scheme,” which contemplates “that standards apply . . . wherever the working conditions and hazards addressed by the standard exist.” Sec‘y‘s Br. 32 n.8. A standard applied to a specialized line of work is, by its terms, unlikely to apply in a different setting where the same risk does not exist. For example, a standard addressing a danger found only in the agricultural industry will not apply to work in a manufacturing plant. But when the same hazardous condition—e.g., exposure to corrosive
True, cross-industry application may not be appropriate in all cases. The unique characteristics of an industry may make it infeasible for an employer to adopt a general standard, thereby requiring a different solution to abate the same hazard. Indeed, Kiewit asserts that applying the quick-drenching standard to construction poses feasibility problems—construction sites typically lack plumbing and frequent crew movement requires the relocation of portable water containers. But, in addition to the variance procedure set out in
standard is physically impossible or would prevent performance of the work, employers may instead take alternative protective measures,” Am. Can Co., 10 BNA OSHC at 1310. And whether an employer has provided “suitable facilities for quick drenching,”
Kiewit next contends that extending the reach of standards issued under section 6(a) contravenes the procedural requirements the Congress prescribed for the promulgation of new construction standards. Its assertion that established Federal standards could not be made to apply to theconstruction industry absent formal rulemaking procedures is based on language from the Conference Report, setting out the conferees’ intent “that the Secretary develop health and safety standards for construction workers . . . pursuant to the provisions of [the CSA] and that he use the same mechanisms . . . for the development of health and safety standards for all the other construction workers newly covered by [the OSH] Act.” H.R. Rep. No. 91-1765, at 33 (1970) (Conf. Rep.). But the implication that the Secretary could adopt only those construction standards issued under the CSA is at odds with the language of section 6(a), which authorizes the Secretary to promulgate ”any national consensus standard, and any established Federal standard” as an OSH standard.
Kiewit also claims the
Despite the considerable ink spilled by the parties, the
Second, although it makes sense that the Congress would not have intended industry to be blindsided by standards rapidly promulgated under section 6(a), it is not obvious that the standards had to have been scrutinized by each specific industry to which they were to apply or by industry in general. Indeed, the Senate Report directing that OSH standards be those “with which industry is familiar,” id., also recognized that “the chemical and physical hazards which characterize modern industry are not the problem of . . . a single industry,” id. at 4, but instead are “truly a national concern,” id., that should be addressed
Our view of the legislative history is not altered by the fact that the House of Representatives rejected a bill proposed by Representativе Dominick Daniels, providing that any established Federal standard promulgated as an OSH standard was “not limited to its present area of application,” H.R. 16785, 91st Cong. § 6 (as reported by H. Comm. on Educ. & Labor, July 9, 1970), in favor of a substitute bill introduced byRepresentative William Steiger, which contained no such language, see H.R. 19200, 91st Cong. (1970). The Commission deemed the adoption of the competing Steiger bill “as further proof that Congress never intended [Walsh-Healey] standards to apply to construction employers.” OSHRC Decision at 1453. This conclusion is far too speculative. Even assuming “[t]he vote to substitute was a vote on the Daniels bill,” Kiewit Br. 44 (citing Whirlpool Corp. v. Marshall, 445 U.S. 1, 16 & n.23 (1980)), it is far less clear why the Daniels bill lost. There were many differences between the two bills, chief among them the “strike with pay” provision in the Daniels bill, which “encountered stiff opposition in the House.” Whirlpool Corp., 445 U.S. at 15. In contrast, the language setting the scope of established Federal standards was not mentioned during the floor debates. It is therefore an immense leap to derive from the Daniels bill‘s failure any intent to reject a single phrase in a bill laden with controversial provisions. We decline the invitation to make this jump.
Even after considering Kiewit‘s myriad arguments made in dogged pursuit of its petition,17 whether the quick-drenching provision was properly extended to the construction industry remains a question with no obvious answer. It is apparent from our efforts to untangle the mare‘s nest that is the
Federal standards without resorting to formal rulemaking. Did the Congress intend
Although it is plausible that the Congress intended standards adopted under section 6(a) to extend only to employers within the same industry as their source standard, the Secretary‘s interpretation is nevertheless a permissible construction of the
Accordingly, we grant the Secretary‘s petition for review and deny Kiewit‘s cross-petition, reverse the Commission‘s decision and remand for adjudication on the merits of Kiewit‘s citation.
So ordered.
Notes
- . . . has been adopted and promulgated . . . under procedures whereby it can be determined by the Secretary that persons interested and affected by the scope or provisions of the standard have reached substantial agreement on its adoption, (2) was formulated in a manner which afforded an opportunity for diverse views to be considered and (3) has been designated as such a standard by the Secretary, after consultation with other appropriate Federal agencies.
