Loper Bright Enterprises, Inc. v. Wilbur L. Ross, Jr.Loper Bright Enterprises, Inc. v. Wilbur L. Ross, Jr.
Case Information
*1 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA Loper Bright Enterprises, Inc., et al. ,
Plаintiffs, Civ. Action No. 20-466 (EGS) v. GINA RAIMONDO, in her official
capacity, Secretary, U.S. Department of Commerce, et
al. , Defendants.
MEMORANDUM OPINION
Plaintiffs, “a collection of commercial fishing firms
headquartered in southern New Jersey that participate regularly
in the Atlantic herring fishery,” challenge the U.S. Department
of Commerce Secretary’s final rule promulgating the New England
Industry-Funded Monitoring Omnibus Amendment (“Omnibus
Amendment”) and its implementing regulations, which establish a
process for administering future industry-funded monitoring in
Fishery Management Plans governing certain New England fisheries
and implement a required industry-funded monitoring program in
the Atlantic herring fishery. Pls.’ Mem. P. & A. Supp. Mot.
Summ. J. (“Pls.’ Mot.”), ECF No. 18-1 at 22-23.
[1]
Plaintiffs
*2
allege that the Omnibus Amendment suffers from procedural flaws
and violates the directives of the Magnuson-Stevens Fishery
Conservation and Management Act (“MSA”),
Pending before the Court are Plaintiffs’ Motion for Summary Judgment, ECF No. 18; Defendants’ Cross-Motion for Summary Judgment, ECF No. 20; and Defendants’ Motion to Exclude Plaintiffs’ Extra-Record Declaration, ECF No. 24. Upon consideration of the parties’ submissions, the applicable law, and the entire record herein, the Court DENIES Plaintiffs’ Motion for Summary Judgment, GRANTS Defendants’ Cross-Motion for Summary Judgment, and GRANTS Defendants’ Motion to Exclude.
I. Background
A. Statutory and Regulatory Background
1. The Magnuson-Stevens Fishery Conservation and Management Act of 1976
The MSA “balances the twin goals of conserving our nation’s
aquatic resources and allowing U.S. fisheries to thrive.”
Oceana, Inc. v. Pritzker
,
Each Fishery Management Council must prepare and submit to
the Secretary of the U.S. Department of Commerce a Fishery
Management Plan (“FMP”), which is approved by the Service.
FMPs contain “conservation and management measures” that
are “necessary and appropriate for the conservation and
management of the fishery, to prevent overfishing and rebuild
*5
overfished stocks, and to protect, restore, and promote the
long-term health and stability of the fishery.”
[“National Standard Seven”:] Conservation and management measures shall, where practicable, minimize costs and avoid unnecessary duplication.
[“National Standard Eight”:] Conservation and management measures shall, consistent with the conservation requirements of this chapter (including the prevention of overfishing and rebuilding of overfished stocks), take into account the importance of fishery resources to fishing communities by utilizing economic and social data that meet the requirements of paragraph (2), in order to (A) provide for the sustained participation of such communities, and (B) to the extent practicable, minimize adverse economic impacts on such communities.
Id. § 1851(a)(7)-(8).
FMPs may also include additional discretionary provisions tо conserve and manage fisheries. § 1853(b). Among other things, FMPs may “require that one or more observers be carried on board a vessel of the United States engaged in fishing for species that are subject to the plan, for the purpose of collecting data necessary for the conservation and management of *6 the fishery.” Id. § 1853(b)(8). FMPs may also “prescribe such other measures, requirements, or conditions and restrictions as are determined to be necessary and appropriate for the conservation and management of the fishery.” Id. § 1853(b)(14).
After a council prepares an FMP or amendment and any
proposed implementing regulations, it submits them to the
Service, which acts on behalf of the Commerce Secretary, for
review.
See generally id.
§ 1854. The Service reviews the
submission for consistency with applicable law and solicits
public comments for sixty days.
Id.
§ 1854(a)(1)(A)–(B). Within
thirty days of the end of the comment period, the Service shall
approve, disapprove, or partially approve the submission. §
1854(a)(3). If the Service approves, a final rule is published
in the Federal Register.
See id.
§ 1854(b)(3). Approved FMPs or
amendments are subject to judicial review under the APA within
thirty days.
See
2. The National Environmental Policy Act
Congress enacted NEPA “to use all practicable means,
consistent with other essential considerations of national
policy, to improve and coordinate Federal plans, functions,
programs, and resources to the end that the Nation may . . .
fulfill the responsibilities of each generation as trustee of
the environment for succeeding generations.”
To determine whether an EIS must be prepared, the agency
must first prepare an environmental assessment (“EA”), which
must (1) “[b]riefly provide sufficient evidence and analysis for
determining whether to prepare an environmental impact statement
or а finding of no significant impact.”
B. Factual Background
Plaintiffs—a “collection of commercial fishing firms headquartered in southern New Jersey that participate regularly in the Atlantic herring fishery,” Pls.’ Mot., ECF No. 18-1 at 23—challenge the Omnibus Amendment, which the NEFMC finalized in 2018 to establish a standardized process for the development of industry-funded monitoring in FMPs across New England fisheries and to establish industry-funded monitoring in the Atlantic herring fishery. See Administrative R. (“AR”) at 17769-71. The approved Omnibus Amendment measures include the following “core elements”:
First, the omnibus measures establish a process for FMP-specific industry monitoring to be implemented through an FMP amendment and revised through a framework adjustment. . . . Second, the omnibus measures identify standard cost responsibilities for industry-funded monitoring for NMFS and the fishing industry, dividing those responsibilities by cost category. . . .
Third, the omnibus measures establish standard administrative requirements for monitoring service providers and industry-funded observers/monitors as set forth in50 C.F.R. § 648.11(h) and (i) , respectively. . . .
Fourth, the omnibus measures establish a Council-led process for prioritizing [industry-funded monitoring] programs for available federal funding across New England FMPs. . . .
Fifth, the omnibus measures standardize the process to develop future monitoring set-aside programs, and allow monitoring set-aside programs to be developed in a framework adjustment to the relеvant FMP.
Defs.’ Opp’n, ECF No. 20-1 at 18-19; see also Pls.’ Mot., ECF No. 18-1 at 22-23.
In addition, there are approved measures establishing
industry-funded monitoring in the Atlantic herring fishery,
[6]
which is managed through the Atlantic Herring FMP.
See
Defs.’
Opp’n, ECF No. 20-1 at 20-21; Pls.’ Mot., ECF No. 18-1 at 22-23.
In other words, this mandate “requires herring fishermen along
the eastern seaboard of the United States to carry [NOAA]
contractors—called ‘at-sea monitors’—on their vessels during
fishing trips and, moreover, to pay out-of-pocket for”
associated costs. Compl., ECF No. 1 ¶ 1. Among other things, the
measures establish a 50 percent monitoring coverage target for
all declared herring trips undertaken by a vessel possessing a
Category A or B limited access herring permit.
[7]
See
Defs.’ Opp’n,
*10
ECF No. 20-1 at 20; Pls.’ Mot., ECF No. 18-1 at 22-23. The
monitoring coverage target includes a combination of both
industry-funded monitoring, as well as NMFS-funded Standardized
Bycatch Reporting Methodology (“SBRM”) coverage. Defs.’ Opp’n,
ECF No. 20-1 at 20; Pls.’ Mot., ECF No. 18-1 at 23. “Vessel
owners would pay for any additional monitoring coverage above
SBRM coverage requirements to achieve the 50% coverage target,
which is calculated by combining SBRM and [industry-funded
monitoring] coverage, thus a vessel will not have SBRM and
[industry-funded monitoring] coverage on the same trip.” Defs.’
Opp’n, ECF No. 20-1 at 20-21. “On any given trip, if a vessel is
notified that it will ‘need at-sea monitoring coverage’ and it
has not already been assigned an observer, ‘[it] will be
required to obtain and pay for an at-sea monitor on that trip.’”
Pls.’ Mot., ECF No. 18-1 at 23 (quoting AR 17735). “Any
additional coverage above SBRM is contingent on NMFS having
appropriated funds to pay for its administrative costs for
. .” Compl., ECF No. 1 ¶ 63 (citing
[industry-funded monitoring] coverage.” Defs.’ Opp’n, ECF No. 20-1 at 21 (quoting AR 17737).
There are some exceptions to the coverage requirements. On a trip-by-trip basis, coverage requirements may be waived if: (1) “monitoring coverage is unavailable”; (2) “vessels intend to land less than 50 metric tons (mt) of herring”; or (3) “wing vessels carry no fish on pair trawling trips.” Id. (citing AR 17735). Furthermore, the Service may “issue an exempted fishing permit (EFP) to midwater trawl vessels that choose to use electronic monitoring together with portside sampling. . . . The EFP exempts midwater trawl vessels from at-sea monitoring coverage, and allows use of electronic monitoring and portside sampling to comply with the 50% [industry-funded monitoring] coverage target.” (citing AR 17736-37).
NMFS has acknowledged that “[i]ndustry-funded monitoring w[ill] have direct economic impacts on vessels issued Category A and B permits participating in the herring fishery,” including an estimated cost responsibility of up to $710 per day and an approximately 20% reduction in annual returns-to-owner in some situations. AR 17735.
C. Procedural History
The NEFMC adopted the Omnibus Amendment on April 20, 2017, and finalized the recommendations for industry-funded monitoring in the Atlantic herring fishery on April 19, 2018. AR 17731. On *12 September 19, 2018, Defendants published a “notice of availability” in the Federal Register, opening a sixty-day comment period for the Secretary of Commerce’s decision on the Omnibus Amendment. Id. On December 18, 2018, NEFMC was informed by letter that NMFS had approved the Omnibus Amendment on behalf of the Secretary of Commerce. Id .
On November 7, 2018, Defendants also published in the Federal Register a proposed rule to implement the Omnibus Amendment and opened a public comment period ending on December 24, 2019. Id. Defendants published the final rule implementing the Omnibus Amendment on February 7, 2020. at 17731-59. The regulations associated with establishing the standard for developing industry-funded monitoring programs (“omnibus measures”) became effective on March 9, 2020, and the regulations associated with industry-funded monitoring in the Atlantic herring fishery became effective on April 1, 2020. See Defs.’ Opp’n, ECF No. 20-1 at 23.
Plaintiffs filed suit against Defendants on February 19,
2020.
See
Compl., ECF No. 1. Defendants filed their Answer on
April 9, 2020, along with a certified list of the contents of
the administrative record.
See
Answer, ECF No. 12; Notice, ECF
No. 13. On May 4, 2020, the Court granted Plaintiffs’ unopposed
motion to expedite the case “in every possible way,” pursuant to
the MSA,
Plаintiffs filed their motion for summary judgment on June 8, 2020, seeking a Court order “declar[ing] industry-funding monitoring unlawful, enjoin[ing] Defendants from pursuing it, and vacat[ing] the Omnibus Amendment.” Pls.’ Mot., ECF No. 18-1 at 14. Defendants filed their opposition and cross-motion for summary judgment on July 24, 2020. See Defs.’ Opp’n, ECF No. 20. Plaintiffs filed their reply brief and opposition to Defendants’ cross-motion on August 14, 2020, see Pls.’ Reply, ECF No. 22; and Defendants filed their reply brief on September 4, 2020, see Defs.’ Reply, ECF No. 26. In addition, on August 25, 2020, Defendants filed a motion to exclude Plaintiffs’ extra-record declaration (ECF No. 22-1). Defs.’ Mot. Exclude, ECF No. 24. Plaintiffs opposed Defendants’ motion on September 3, 2020, see Pls.’ Opp’n Exclude, ECF No. 25; and Defendants replied on September 10, 2020, see Defs.’ Reply Exclude, ECF No. 27. The cross-motions for summary judgment and the motion to exclude extra-record evidence are ripe for adjudication.
On May 17, 2021, Plaintiffs filed a notice of factual development, informing the Court that Defendants had “pushed back implementation” of the industry-funded monitoring requirement to July 1, 2021. See Notice Factual Development, ECF No. 35.
II. Legal Standard
Summary judgment is appropriate where “there is no genuine
issue as to any material fact and the movant is entitled to
judgment as a matter of law.”
Under the APA, courts must set aside agency action that is
“(A) arbitrary, capricious, an abuse of discretion, or otherwise
not in accordance with law; (B) contrary to constitutional
right, power, privilege, or immunity; (C) in excess of statutory
jurisdiction, authority, or limitations, or short of statutory
right; [or] (D) without observance of procedure required by
*15
law.”
Although “[j]udicial review of agency action under the MSA
is especially deferential,”
N.C. Fisheries Ass’n, Inc. v.
Gutierrez
,
However, the “deferential standard cannot permit courts
merely to rubber stamp agency actions, nor be used to shield the
*17
agency’s decision from undergoing a thorough, probing, in-depth
review.”
Flaherty v. Bryson
,
III. Analysis
A. The Court Will Not Consider Plaintiffs’ Extra-Record Declaration
As an initial matter, Defendants seek to exclude a declaration signed by Jeffrey Howard Kaelin—the Director of Sustainability and Government Relations at Lund’s Fisheries [8] —and any portion of Plaintiffs’ reply brief that relies on it. Defs.’ Mot. Exclude, ECF No. 24-1 at 1-2; Kaelin Decl., ECF No. 22-1 ¶ 1. Mr. Kaelin’s declaration, which Plaintiffs attached to their reply brief, discusses the costs associated with Lund’s Fisheries’ efforts to install video monitoring system (“VMS”) units on several vessels during the months of January, February, *18 and March 2020. See Kaelin Decl., ECF No. 22-1 ¶¶ 7-12. The declaration also discusses the economic feasibility of Lund’s Fisheries converting three vessels so that they qualify for the Omnibus Amendment’s waiver for vessels that catch less than 50 metric tons. ¶¶ 13-18. According to Plaintiffs, “Mr. Kaelin’s declaration is offered principally for illustrative purposes and to give the Court the full context behind costs associated with vessel monitoring and the nature of several of the boats owned and operated by Plaintiffs.” Pls.’ Reply, ECF No. 22 at 23 n.8. Thus, because Plaintiffs “do not rely on Mr. Kaelin’s declaration in their discussion of Defendants’ failure to properly consider the costs of industry-funded monitoring,” Plaintiffs argue that the Court may consider the information contained in the declaration. Pls.’ Opp’n Exclude, ECF No. 25 at 7, 10-11.
However, there is no “illustrative purposes” exception to
the general rule that review of an agency’s action under the APA
“is to be based on the full administrative record that was
before [the agency] at the time [it] made [its] decision.”
Citizens to Preserve Overton Park, Inc. v. Volpe
,
Plaintiffs next argue, however, that even if the Court declines to consider the declaration for “illustrative purposes,” the Court may consider the declaration under an exception to the general rule precluding extra-record evidence.
First, Plaintiffs argue that “Mr. Kaelin’s declaration
provides information that is absent from the administrative
record and would otherwise ‘enable the court to understand the
issues [at hand more] clearly.’” Pls.’ Opp’n Exclude, ECF No. 25
at 12 (citing
Esch
,
Chaudhuri
,
Second, Plaintiffs contend that the declaration should be admitted as extra-record evidence because they “have highlighted serious procedural irregularities in Defendants’ approval of the Omnibus Amendment, which suggest prejudgment of the legality of industry-funded monitoring.” Pls.’ Opp’n Exclude, ECF No. 25 at 12. Specifically, Plaintiffs note that Defendants published the Omnibus Amendment’s implementing regulations in November 2018, prior to the Commerce Secretary’s approval of the Omnibus Amendment in mid-December 2018. Pls.’ Mot., ECF No. 18-1 at 54. In addition, following the Secretary’s approval of the Omnibus Amendment, “NOAA informed the NEFMC of that approval in a non- public letter that it never officially disseminated.” Plaintiffs’ contend that these alleged procedural irregularities, coupled with the fact that Plaintiffs raise claims under NEPA and the Regulatory Flexibility Act, are sufficient reasons to justify admitting extra-record evidence. *22 Pls.’ Opp’n Exclude, ECF No. 25 at 12. But this argument also fails. To the extent that evidence of procedural irregularities remains an exception following the D.C. Circuit’s narrowing of Esch , a review of the MSA’s provisions governing the Secretary’s review of FMPs and proposed regulations shows that Defendants followed proper procedures, as this Court more fully discusses in Section III.I below. And in any event, Plaintiffs fail to explain how a declaration discussing various costs related to fishing vessels would assist the Court’s analysis of any alleged procedural irregularities in promulgating the final rule and regulations.
Third, Plaintiffs appear to seek to include the declaration
as “background information,” which is an exception to the
general rule when the information is needed “to determine
whether the agency considered all the relevant factors.” Pls.’
Opp’n Exclude, ECF No. 25 at 12. The Court remains unpersuaded.
“To satisfy the relevant factors exсeption, the document in
question must do more than raise nuanced points about a
particular issue; it must point out an
entirely new
general
subject matter that the defendant agency failed to consider.”
Ross
,
Here, the administrative record is clear that Defendants
considered VMS installation costs and how the 50-metric-ton
exemption would affect midwater trawl vessels.
See, e.g.
, AR
17742 (“Waiving industry-funded monitoring requirements on
certain trips, including trips that land less than 50 mt of
herring and pair trawl trips carrying no fish, would minimize
the cost of additional monitoring [for certain smaller vessels].
. . . Electronic monitoring and portside sampling may be a more
cost effective way for midwater trawl vessels to meet the 50-
percent coverage target requirement than at-sea monitoring
coverage.”);
id.
at 10821 (noting the “highly variable” costs of
installing electronic video monitoring systems);
see also id.
at
17250;
id.
at 17264. Plaintiffs also appear to concede as much.
See, e.g.
, Pls.’ Opp’n Exclude, ECF No. 25 at 13 (“Here,
Defendants and the NEFMC considered VMS and other operating
costs. . . . Industry stakeholders presented them with concerns
about the limited impact of the proposed 50-metric-ton exemption
and the viability of fish[er]men simply moving to a different
*24
fishery. Mr. Kaelin’s testimony merely provides more concrete
detail that shows Defendants failed to adequately consider these
issues.”). Thus, the Court finds that Mr. Kaelin’s declaration
“does not add factors that [the agency] failed to consider as
much as it questions the manner in which [the agency] went about
considering the factors it did.”
Corel Corp. v. United States
,
Finally, Plaintiffs argue that “[i]f the Court excludes Mr. Kaelin’s declaration, it may still consider the cost survey and order Defendants to complete the record with the data compiled by” the Mid-Atlantic Fishery Management Council regarding compliance cost information. Pls.’ Opp’n Excludе, ECF No. 25 at 15-16. As Plaintiffs did not object to Defendants’ compilation of the administrative record and have not filed a motion requesting that the Court supplement the administrative record with such information, the Court declines to order Defendants to produce the information now.
Accordingly, the Court finds that Plaintiffs have not demonstrated exceptional circumstances justifying departure from the general rule against extra-record evidence.
B. The MSA Authorizes Industry-Funded Monitoring Plaintiffs first contend that Defendants exceeded their statutory authority under the MSA in promulgating the industry- funded monitoring measures within the Omnibus Amendment. See *25 Pls.’ Mot., ECF No. 18-1 at 27. Plaintiffs argue that the MSA does not authorize industry-funded monitoring in the Atlantic herring fishery or in the other New England fisheries contemplated in the amendment. Id. at 28. And because the expected economic impact of such monitoring programs is “possibly disastrous for the herring fleet,” Plaintiffs contend that Congress would not grant authority for such significant measures through an implicit delegation. Id. Defendants, in opposition, argue that “Congress has spoken directly to the precise question at issue by including multiple provisions in the MSA that presuppose” industry-funded monitoring. Defs.’ Opp’n, ECF No. 20-1 at 26. Even if the Court finds that Congress has not directly spoken on the issue, Defendants argue that NMFS’s interpretation of the MSA was reasonable.
In reviewing an agency’s interpretation of a statute
Congress has entrusted it to administer, courts’ analyses are
governed by
Chevron U.S.A. Inc. v. Natural Resources Defense
Council, Inc.
,
“An agency is owed no deference if it has no delegated
authority from Congress to act.”
N.Y. Stock Exch. LLC v. Secs. &
Exch. Comm’n
,
The Court’s analysis begins with the statutory text.
See S.
Cal. Edison Co. v. FERC
,
Taken together, these statutory provisions “vest[] broad
authority in the Secretary to promulgate such regulations as are
necessary to carry out the conservation and management measures
*28
of an approved FMP.”
Nat’l Fisheries Inst., Inc. v. Mosbacher
,
Plaintiffs, however, contend that, though the MSA
authorizes placement of at-sea monitors on vessels, the MSA is
silent on whether Defendants may further require that vessel
operators pay for the monitoring services.
See
Pls.’ Reply, ECF
No. 22 at 13. According to Plaintiffs, courts have rejected the
“nothing-equals-something argument,” based entirely on the
existence of the phrase “necessary and appropriate” in a
statute, “that presumed congressional silence left the agency a
‘mere gap’ . . . to fill.’” Pls.’ Reply, ECF No. 22 at 13
(quoting
Gulf Fishermen’s Ass’n v. Nat’l Marine Fisheries Serv.
,
However, both cases are distinguishable. In
New York Stock
Exchange, LLC
, the D.C. Circuit concluded that the Securities
and Exchange Commission inappropriately relied on the phrase
“necessary and appropriate” under section 23(a) of the
Securities and Exchange Act in implementing a rule without any
regulatory agenda and without any other statutory authority. 962
F.3d at 557. The D.C. Circuit explained that the Commission had
*30
adopted the program “without explaining what problems with the
existing regulatory requirements it meant to address.”
Id.
Moreover, the costly program was adopted despite the Exchange
Act’s command “forbid[ding] the Commission from adopting a rule
that will unnecessarily burden competition.” at 555. Here,
in contrast, Defendants have tethered the Omnibus Amendment
measures to the congressionally authorized purpose of
“conservation and management of the fishery.”
Similarly, in
Michigan
, the Supreme Court concluded that,
among other things, the “established administrative practice” to
“treat cost as a centrally relevant factor” and the “[s]tatutory
context” requiring consideration of costs in reference to
various actions, made it unreasonable for the EPA to read the
phrase “appropriate and necessary” to mean that it could ignore
cost when deciding whether to regulate power plants. 576 U.S. at
752-57. Here, however, the established administrative practice
*31
and statutory context both favor Defendants. First, as
Plaintiffs concede, since 1990, the North Pacific Council has
managed an observer program that is “funded through a
combination of fees and third-party contracts between observer
providers and fishing industry members.” Pls.’ Mot., ECF No. 18-
1 at 35. Second, regarding the statutory context, in addition to
the provision explicitly authorizing mandatory at-sea monitors,
the MSA recognizes the existence of an at-sea monitoring program
in which a vessel may hire and directly provide payment for
monitoring services. In Section 1858(g), the MSA authorizes the
Commerce Secretary to issue sanctions “[i]n any case in which .
. . any payment required for observer services provided to or
contracted by an owner or operator
. . . has not been paid and
is overdue.”
The Court is mindful that “the mere reference to
‘necessary’ or ‘appropriate’ in a statutory provision
authorizing an agency to engage in rulemaking does not afford
the agency authority to adopt regulations as it sees fit with
respect to all matters covered by the agency’s authorizing
statute.”
N.Y. Stock Exch. LLC
,
Plaintiffs further argue that certain canons of statutory
interpretation demonstrate that Defendants have exceeded their
authority. First, Plaintiffs invoke the anti-surplusage canon,
“which encourages courts to give effect to ‘all of [a statute’s]
provisions, so that no part will be inoperative or superfluous,
void or insignificant.’”
Gulf Fishermen’s Ass’n
, 968 F.3d at
464-65 (quoting
Latiolais v. Huntington Ingalls, Inc.
, 951 F.3d
286, 294 (5th Cir. 2020) (en banc)). Plaintiffs contend that if
Congress had intended to grant Defendants “implied authority” to
require industry-funded monitoring, it would not have
*33
specifically authorized the collection of fees or surcharges to
cover the cost of three monitoring programs elsewhere in the
statute.
See
Pls.’ Mot., ECF No. 18-1 at 29-30. Plaintiffs
specifically refer to: (1) the “limited access privilege
program,” which authorizes the Council to collect “fees” to
“cover the costs of management, data collection and analysis,
and enforcement activities,”
The Court is unpersuaded. A fee-based program—“where the
industry is assessed a payment by the agency, authorized by
statute, to be deposited in the U.S. Treasury and disbursed for
administrative costs otherwise borne by the agency,” AR 17739—is
different from the industry-funded observer measures at issue
*34
here, in which the fishing vessels contract with and make
payments directly to third-party monitoring service providers.
Because the Omnibus Amendment does not involve fees or
surcharges, the Court cannot not find that the MSA’s provisions
governing cost recovery are made “superfluous, void or
insignificant,”
Citizens for Responsibility & Ethics in Wash. v.
FEC
,
Plaintiffs also assert that “[t]here is no evidence of congressional recognition of any sort of pre-existing, implied authority to impose monitoring costs on the regulated industry.” Pls.’ Mot., ECF No. 18-1 at 31. The Court disagrees. Rather, the legislative history further supports the conclusion that Defendants have acted within the scope of the MSA.
As Defendants point out, prior to Congress adding to the
MSA the provisions authorizing the mandatory placement of at-sea
monitors on fishing vessels (
Accordingly, the Court concludes that Defendants acted
within the bounds of their statutory authority in promulgating
the Omnibus Amendment. Even if Plaintiffs’ arguments were enough
to raise an ambiguity in the statutory text, the Court, for the
same reasons identified above, would conclude that Defendants’
interpretation is a reasonable reading of the MSA.
See
Groundfish Forum
,
C. Industry-Funded Monitoring Does Not Violate Agency Financing and Expenditure Statutes
Plaintiffs next argue that the Omnibus Amendment “impliedly
repeals” the Anti-Deficiency Act,
Plaintiffs first argue that the industry-funded monitoring
requirement violates the Anti-Deficiency Act,
Plaintiffs also contend that the monitoring requirement
violates the Miscellaneous Receipts Act,
Plaintiffs next argue that the industry funding
requirements of the Omnibus Amendment violate the Independent
Offices Appropriations Act (“IOAA”),
Despite the above, Plaintiffs assert that it is “a
distinction without a difference” that “Defendants and the
Council seek to require the industry to contract directly with
monitoring service providers, in lieu of the government paying
those companies.” Pls.’ Reply, ECF No. 22 at 29. According to
Plaintiffs, “the law looks past superficial structures to the
heart of what an agency is trying to accomplish.” The Court
is unpersuaded. First, Plaintiffs fail to specify to which “law”
they are referring, and they fail to cite any case law in
support of their argument. Second, the plain language of the
three statutes unambiguously demonstrates that they are not
applicable to this case.
See Nat’l Cable Television Ass’n, Inc.
v. United States
,
Plaintiffs also argue that “it is incorrect for Defendants to assert that NMFS does not closely ‘control’ monitoring service providers or the contractual relationships they enter with vessel owners” because: (1) “the market for monitoring service providers is highly regulated and controlled by NMFS”; (2) “NMFS must certify the companies permitted to provide monitors,” of which there are only four such companies; and (3) of the certified companies, “[n]ot all these companies operate in the same geographic regions.” Pls.’ Reply, ECF No. 22 at 29. However, none of these details regarding Defendants’ regulation and oversight of the required standards set by the Council change the fact that Defendants do not receive any payments related to industry-funded monitoring and do not “maintain control over the contractual relationship between the vessel and the service provider that the vessel itself selects.” Defs.’ Reply, ECF No. 26 at 23.
Accordingly, industry-funded monitoring does not violate the Anti-Deficiency Act, the Miscellaneous Receipts Act, or the IOAA.
D. The Omnibus Amendment Is Not an Unconstitutional Tax Plaintiffs argue that the industry-funded monitoring measures—which they characterize as “a government program created by the NEFMC and Defendants, regulated by them in detail, and which they will continue to fund in-part themselves”—are an unconstitutional tax. See Pls.’ Mot., ECF No. 18-1 at 40. Defendants disagree with Plaintiffs’ characterization of the industry-funded monitoring requirement and contend that there is “no resemblance” between the industry- funded monitoring requirement and a tax levied and collected by Congress. See Defs.’ Opp’n, ECF No. 20-1 at 49. The Court agrees with Defendants.
“A payment made to a third party vendor (in this case, an
at-sea monitor) is not a tax simply because the law requires
it.”
Goethel
,
Accordingly, because industry-funded monitoring generates no public revenue, it does not constitute an unlawful tax.
E. The Omnibus Amendment Does Not Violate National Standard 7 and National Standard 8
Plaintiffs contend that the Omnibus Amendment violates National Standards 7 and 8 because any demonstrated scientific or conservation benefits resulting from increased monitoring services do not outweigh the economic consequences to the fishing community. Pls.’ Mot., ECF No. 18-1 at 41.
In reviewing the Omnibus Amendment, the Court’s “task is
not to review
de novo
whether the amendment complies with [the
National Standards] but to determine whether the Secretary’s
conclusion that the standards have been satisfied is rational
and supported by the record.”
C&W Fish Co.
,
For the reasons explained below, the Court concludes that the Omnibus Amendment does not violate National Standards 7 and 8.
1. National Standard 7
National Standard 7 provides that “[c]onservation and
management measures shall, where practicable, minimize costs and
avoid unnecessary duplication.”
Plaintiffs first argue that “[a]t a cost upwards of $710 per day, many small business herring fishermen will suffer severe economic consequence.” Pls.’ Mot., ECF No. 18-1 at 41. Plaintiffs contend that “[a]t no point did Defendants justify *45 the Omnibus Amendment by describing less costly alternatives that the NEFMC seriously considered.” at 42.
The administrative record reflects, however, that Defendants did consider less costly alternatives and included exemptions to the amendment to minimize costs. NMFS recognized that while industry-funded monitoring coverage would cause “direct economic impacts” on vessels participating in the herring fishery, the requirement also would have positive impacts, including ensuring “(1) [a]ccurate estimates of catch (retained and discarded); (2) accurate catch estimates for incidental species for which catch caps apply; and (3) affordable monitoring for the herring fishery.” AR 17740, 17744. The record also demonstrates that Defendants considered alternatives to determine which monitoring target goal would best achieve the agency’s goals while minimizing the economic impact on fishing communities. The analysis within the EA indicates Defendants considered a “no coverage target,” a 25% coverage target, a 50% coverage target, and a 75% coverage target. AR 17075, 17082-83; see also id. at 17097 (“Different coverage targets (25%, 50%, 75%, or 100%) were analyzed for each gear type (midwater trawl, purse seine, bottom trawl), but the Council selected a 50% coverage target for all gear types.”). After weighing the benefits against the costs, Defendants concluded that “[t]he 50% coverage target selected by the *46 Council for vessels with a Category A or B herring permit provides for the benefits of collecting additional information on biological resources while minimizing industry cost responsibilities, especially when compared to non-preferred coverage targets of 100% and 75%.” Id. at 17315.
The Omnibus Amendment also provides for exemptions from the
coverage requirements to minimize costs where practicable. For
example, waivers are available if: (1) “monitoring coverage is
unavailable”; (2) “vessels intend to land less than 50 metric
tons (mt) of herring”; or (3) “wing vessels carry no fish on
pair trawling trips.”
Id.
at 17735. Furthermore, the EFP
“exempt[s] midwater vessels from the requirement for industry-
funded at-sea monitoring coverage and allow[s] midwater trawl
vessels to use electronic monitoring and portside sampling
coverage to comply with the” 50% monitoring coverage target.
Id.
at 17736-37. Finally, Defendants found that “[a]llowing SBRM
coverage to contribute toward the 50-percent coverage target for
at-sea monitoring is expected to reduce costs for the industry.”
at 17742. Accordingly, Plaintiffs’ contention that
Defendants “at no point” discussed less costly alternatives is
belied by the record.
See Nat’l Coal. for Marine Cons. v. Evans
,
Plaintiffs, however, argue that Defendants’ discussion of
alternatives is conclusory and that “[m]ore detailed analysis is
required, particularly when the proposed regulation will harm
most of the herring fleet.” Pls.’ Reply, ECF No. 22 at 32.
Plaintiffs assert that the Council failed to note that midwater
trawlers will bear the brunt of the industry-funded monitoring
costs because: (1) they have low observer coverage rates due to
differences in SBRM coverage among gear types; and (2) the
majority of them would not qualify under the 50-metric-ton
exemption. However, it is settled law that “in making a
decision on the practicability of a fishery management
amendment, the Secretary does not have to conduct a formal
cost/benefit analysis of the measure.”
Alaska Factory Trawler
Ass’n v. Baldridge
,
Plaintiffs also contend that the omnibus measures, which
establish a standardized process for developing industry-funded
monitoring programs across other New England FMPs, “may lead to
the sort of ‘duplication’ that National Standard Seven aims to
avoid” because “vessels in non-herring fisheries could become
*49
subject to concurrent monitoring requirements.” Pls.’ Reply, ECF
No. 22 at 30. Plaintiffs assert that the Omnibus Amendment fails
to address this potential future duplication with other NEFMC-
administered fisheries.
Id.
at 30-31. But Plaintiffs’ argument
fails. Defendants explained that “[b]ecause herring and mackerel
are often harvested together on the same trip,” the Omnibus
Amendment “specifies that the higher coverage target applies on
trips declared into both fisheries. If the Council considers
industry-funded monitoring in other fisheries in the future, the
impacts of those programs relative to existing industry-funded
monitoring programs will be considered at that time.” AR 17742.
Further, because the 50% monitoring coverage target is
calculated by combining both SBRM and industry-funded
monitoring, a vessel will not have SBRM and industry-funded
monitoring coverage on the same trip.
See id.
at 17315, 17734.
Thus, the industry-funded monitoring requirement in the Atlantic
herring fishery “avoid[s] unnecessary duplication.”
Accordingly, the Omnibus Amendment does not violate National Standard 7.
2. National Standard 8
National Standard 8 requires that FMPs and plan amendments
“take into account the importance of fishery resources to
fishing communities . . . in order to (A) provide for the
*50
sustained participation of such communities, and (B) to the
extent practicable, minimize adverse economic impacts on such
communities.”
Plaintiffs argue that the Omnibus Amendment violates National Standard 8 because Defendants have failed to establish its scientific and conservation need. Pls.’ Reply, ECF No. 22 at *51 34; see also Pls.’ Mot., ECF No. 18-1 at 41. The Court disagrees. It is clear from the administrative record that Defendants explained the scientific and conservation benefits of the Omnibus Amendment. Defendants explained that the amendment establishes industry-funded monitoring “to help increase the accuracy of catch estimates,” which in turn will “improv[e] catch estimation for stock assessments and management.” AR 17742 (“Analysis in the EA suggests a 50-percent coverage target would reduce the unсertainty around estimates of catch tracked against catch caps, likely resulting in a CV of less than 30 percent for the majority of catch caps.”); see also id. at 17316. “If increased monitoring reduces the uncertainty in the catch of haddock and river herring and shad tracked against catch caps, herring vessels may be more constrained by catch caps, thereby increasing accountability, or they may be less constrained by catch caps and better able to fully harvest herring sub-ACLs.” Id. at 17742; see also id. at 17789. Furthermore, Defendants explained that “[i]mproving [the] ability to track catch against catch limits is expected to support the herring fishery achieve optimum yield, minimize bycatch and incidental catch to the extent practicable, and support the sustained participation of fishing communities.” at 17742; see also id. at 17789-90. As explained above, those conservation needs were weighed against the associated costs to the industry, and the Council considered *52 significant alternatives and selected measures to minimize adverse economic impacts on the fishing industry and communities. See id. at 17316.
Plaintiffs also argue that the cost-minimization efforts
“impermissibly benefit a select number of fishing communities
where that sliver of the fleet berths and does business.” Pls.’
Reply, ECF No. 22 at 34. Plaintiffs further contend that
“differences in SBRM coverage among different gear types will
lead to the midwater trawl fleet carrying more of the financial
burden in meeting the herring monitoring coverage target.”
Id.
But, as stated above, the administrative record demonstrates
that Defendants took into account the negative economic impacts
upon participants in the herring fishery “to the extent
practicable.”
“[C]ourts have consistently rejected challenges under this
standard where the administrative record reveals that the
Secretary was aware of potentially devastating economic
consequences, considered significant alternatives, and
ultimately concluded that the benefits of the challenged
regulation outweighed the identified harms.”
N.C. Fisheries
*53
Ass’n
,
F. The February 7, 2020 Final Rule Is Not Substantively Deficient
Plaintiffs argue that Defendants’ responses to comments submitted in connection with the final rule were “substantively deficient.” Pls.’ Mot., ECF No. 18-1 at 43.
“The APA’s arbitrary-and-capricious standard requires that
agency rules be reasonable and reasonably explained.”
Nat’l Tel.
Coop. Ass’n v. FCC
,
First, Plaintiffs argue that Defendants’ failed to cite
statutory authority supporting its statement that
However, the Service explained in its response that its
authority derives from
Plaintiffs also assert that “there is a key distinction between regulatory costs—often enumerated by statute—and effectively paying the salary of your direct, government minder.” Pls.’ Mot., ECF No. 18-1 at 43-44. Plaintiffs contend that the measures within the Omnibus Amendment are more comparable to inspection costs than compliance costs. Id. at 44. Finally, Plaintiffs argue that Defendants “tried to dismiss arguments that industry funding is an unlawful tax.” at 45.
However, Defendants also sufficiently responded to these concerns raised in submitted comments. Defendants explained that the purpose of monitoring programs was to “collect[] data necessary for the conversation and management of the fishery” *56 and that “[a]t-sea monitors are not authorized officers conducting vessel searches for purposes of ensuring compliance with fisheries requirements.” AR 17740. Defendants further explained that industry funding is not a tax because the government receives no revenue. Id.
Accordingly, the Court concludes that the record indicates that Defendants sufficiently considered the relevant factors raised by the submitted comments and provided reasonable explanations in response. See Nat’l Tel. Coop. Ass’n , 563 F.3d at 540.
G. Defendants Did Not Violate NEPA
Plaintiffs further argue that Defendants’ EA violates NEPA.
See Pls.’ Mot., ECF No. 18-1 at 46.
While NEPA establishes a “national policy [to] encourage
productive and enjoyable harmony between man and his
environment,”
Plaintiffs argue that Defendants violated NEPA because: (1) Defendants failed to take a “hard look” at the Omnibus Amendment’s impacts; (2) Defendants did not adequately consider regulatory alternatives or potential mitigation measures; (3) Defendants did not seriously consider alternatives to industry- funded monitoring; and (4) Defendants did not submit a supplement to their environmental impact analysis despite reductions in herring catch. See Pls.’ Mot., ECF No. 18-1 at 46- 51. For the reasons explained below, the Court rejects Plaintiffs’ arguments.
1. Plaintiffs Do Not Have a Cause of Action Under NEPA
As a threshold matter, the Court first addresses whether
Plaintiffs’ interests fall within NEPA’s “zone of interests.”
*58
Gunpowder Riverkeeper v. FERC
,
“In addition to constitutional standing, a plaintiff must
have a valid cause of action for the court to proceed to the
merits of its claim.”
Id.
(citing
Natural Res. Def. Council v.
EPA
,
“The zone of interests protected by the NEPA is, as its
name implies, environmental; economic interests simply do not
fall within that zone.”
Gunpowder Riverkeeper
,
Here, while Plaintiffs refer generally to unspecified
“environmental impacts,” Plaintiffs have not alleged that they
*59
will suffer any environmental injury as a result of the Omnibus
Amendment. Rather, Plaintiffs’ sole concern is with the
financial burden on fishing vessels and companies as a result of
industry-funded monitoring. In their motion briefing and in
their Complaint, Plaintiffs have detailed their fears regarding
the economic impact of the Omnibus Amendment.
See, e.g.
, Pls.’
Mot., ECF No. 18-1 at 48-51; Pls.’ Reply, ECF No. 22 at 36-42;
Compl., ECF No. 1 ¶¶ 3-5, 45, 78-80, 86, 91, 98. However,
Plaintiffs have failed to name any specific harms to the
environment and have not “linked [their] pecuniary interest to
the physical environment or to the environmental impacts.”
Ashley Creek Phosphate Co. v. Norton
,
Accordingly, because Plaintiffs’ interest in challenging
the Omnibus Amendment is a purely economic interest, and
economic concerns are “not within the zone of interests
protected by NEPA,”
ANR Pipeline Co v. FERC
,
2. Plaintiffs’ NEPA Claims Fail on the Merits Even if the Court found that NEPA was applicable to Plaintiffs’ claims, Plaintiffs’ arguments would still fail on the merits for the reasons stated below.
a. Defendants Took a “Hard Look” at Environmental Impacts
Plaintiffs argue that Defendants failed to take a “hard
look” at the “complete environmental impact” of the omnibus
measures, which created a process to implement future industry-
funded monitoring programs in other New England FMPs. Pls.’
Mot., ECF No. 18-1 at 47. Plaintiffs contend that despite
recognizing that future industry-funded monitoring programs will
have an “economic impact” if implemented, Defendants undertook
no analysis of these future costs.
Id.
at 47-48. In Plaintiffs’
view, Defendants’ inclusion of these measures into the Omnibus
Amendment “suggests an improper attempt to ‘artificially
divid[e] a major federal action into smaller components, each
without significant impact.’” at 48 (quoting
Jackson City v.
FERC
,
Under NEPA, the EA must “take[] a hard look at the
problem.”
Sierra Club v. Van Antwerp
,
Here, the Court notes at the outset that while Plaintiffs
broadly claim that Defendants failed to take a “hard look” at
the
environmental
impacts of the future industry-funded
monitoring programs, Plaintiffs only identify alleged
economic
impacts.
See
Pls.’ Mot., ECF No. 18-1 at 48 (stating that NEFMC
recognized the “economic impact” of future monitoring programs);
id.
(noting that NEFMC had suggested a potential rise in
“monitoring costs” due to overlapping requirements);
id.
at 49
(arguing a NEPA violation because the “final EA provides no
detail about the potential economic impact”);
id.
(citing to
“meager evidence” in the administrative record regarding the
economic impact on the non-herring fleet); Pls.’ Reply, ECF No.
22 at 36 (arguing the Council refused to “recognize[] the
uniformly negative expected economic pact of future” monitoring
programs). As explained above, a party “must assert an
*62
environmental harm in order to come within [NEPA’s] zone of
interests.”
Gunpowder Riverkeeper
,
However, even if NEPA was applicable here, the Court’s conclusion would remain the same. Plaintiffs dispute Defendants’ determination that the omnibus measures “do not have any direct economic impacts on fishery-related business or human communities because they do not require the development of [industry-funded monitoring] programs nor do they directly impose any costs.” AR 17179. Plaintiffs contend that because Defendants are aware of which New England FMPs are in the position to implement industry-funded programs and “have access to extensive information about the demographics and operation of New England fisheries,” Defendants could conduct an analysis of economic impact of future monitoring programs. Pls.’ Reply, ECF No. 22 at 37. Defendants, on the other hand, argue that such future costs are too speculative to include in the EA “[w]ithout knowing the goals or the details of the measures to achieve [future industry-funded monitoring] goals.” Defs.’ Opp’n, ECF No. 20-1 at 50 (quoting AR 17741). Defendants statе that “[t]he *63 economic impacts to fishing vessels and benefits resulting from a future . . . program would be evaluated in the amendment to establish that . . . program.” Id. (quoting AR 17741).
The Court agrees with Defendants. “The ‘rule of reason’
requires that consideration be given to practical limitations on
the agency’s analysis, such as the information available at the
time.”
Wilderness Soc’y v. Salazar
,
b. Defendants Adequately Considered Alternatives and Potential Mitigation Measures Plaintiffs next argue that Defendants violated NEPA because they did not adequately address potential mitigation measures or alternatives to the Omnibus Amendment. Pls.’ Mot., ECF No. 18-1 at 49. The Court disagrees.
An EA “must include a ‘brief discussion[]’ of reasonable
alternatives to the proposed action.”
Myersville
, 783 F.3d at
1323 (citation omitted). “An alternative is reasonable if it is
objectively feasible as well as reasonable in light of the
agency’s objectives.” (alterations and quotation marks
omitted) (quoting
Theodore Roosevelt Conservation P’ship
, 661
F.3d at 72). An agency’s specification of the range of
reasonable alternatives is entitled to deference.
Citizens
Against Burlington, Inc. v. Busey
,
First, regarding consideration of alternatives, the Court
finds that Defendants have complied with NEPA’s requirements.
The EA included a brief discussion of seven alternatives to the
omnibus measures, including an option preserving the status quo,
“that would modify all the FMPs managed by the Council to allow
standardized development of future FMP-specific industry-funded
monitoring programs.” AR 17046-47. The EA also included a
discussion of multiple alternatives regarding increasing
monitoring in the Atlantic herring fishery specifically,
including a “no additional coverage” alternative, electric
monitoring options, and portside sampling options.
See
AR 17069-
*66
101. Plaintiffs do not explain how the EA’s discussion of these
alternatives is inadequate, nor do they argue that there were
any alternatives that Defendants improperly excluded from
consideration. To the extent that Plaintiffs suggest that “at-
sea monitoring under the Omnibus Amendment in the herring
fishery is discretionary,” “unnecessary to advance conservation
goals,” and “
less
efficient than shoreside alternatives,” Pls.’
Opp’n, ECF No. 22 at 34-35; “NEPA does not compel a particular
result,”
Myersville
,
Second, regarding mitigation measures, the Court finds that Defendants’ EA satisfies the relevant standard. Plaintiffs contend that although the EA contains information regarding the negative effects that industry-funded monitoring will have on businesses and communities, the EA “downplays” such impacts “by referring to the waiver of coverage for vessels that land less than 50 metric tons of herring per trip—a mitigation measure that applies to an especially small portion of the herring fleet . . . —and by vaguely referring to potential adjustments by the NEFMC in the next two years.” Pls.’ Mot., ECF No. 18-1 at 49 (citing AR 17250, 17327); see also Pls.’ Reply, ECF No. 22 at 38 (arguing that “the exemption for vessels landing under 50 metric tons of herring will favor a sliver of the fleet and therefore impermissibly benefit a select number of fishing communities”).
Again, Plaintiffs’ argument regards economic interests, not
environmental ones.
See Gunpowder Riverkeeper
,
To the extent that Plaintiffs refer to environmental impacts in arguing that the Council’s plan to re-evaluate the Atlantic herring monitoring program in two years is “vague,” Pls.’ Mot., ECF No. 18-1 at 49; the EA reflects that Defendants were aware of the environmental impacts of the Omnibus Amendment and its alternatives and the need to incorporate mitigation efforts to reduce any negative impacts. See, e.g. , AR 17177-241.
The omnibus measures were determined to have “no direct impacts” on biological resources or the physical environment. Id. at 17179. The industry-funded monitoring program in the Atlantic herring fishery was determined to have a “negligible” impact on the physical environment and an “indirect” impact on biological resources because “they affect levels of monitoring *69 rather than harvest specifications or gear requirements.” Id. at 17179, 17316; see also id. at 17326 (“The proposed action is not expected to cause significant environmental impacts because it establishes a monitoring program, rather than specifying harvest specifications, gear requirements, or changes in fishing behavior.”). The EA then took into account “variations and contingencies in [the Atlantic herring] fishery by adapting coverage levels to available funding or logistics and allowing vessels to choose electronic monitoring and portside sampling coverage, if it is suitable for the fishery and depending on a vessel owner’s preference.” Id. at 17315. The EA explained that one of the “preferred” alternatives “would require the Council to revisit the preferred Herring Alternatives two years after implementation and evaluate whether changes to management measures are necessary.” Id. “This requirement to evaluate the impacts of increased monitoring in the herring fishery takes into account and allows for variations and contingencies in the fishery, fishery resources, and catches.” Given that the Omnibus Amendment’s measures may “increase monitoring and that may improve management of the fishery and provide a better opportunity for achieving optimum yield,” resulting in indirect benefits for the environment, id. at 17312; Plaintiffs have failed to show that the two-year re-examination provision is an inadequate mitigant under NEPA.
Finally, Plaintiffs contend that Defendants have used the “uncertainty of future management efforts,” particularly the two-year re-examination provision, “as a shield to avoid fuller environmental impact analysis.” Pls.’ Reply, ECF No. 22 at 38 (quotation marks omitted). This argument is without merit. As explained above, the EA includes a thorough description of potential environmental impacts, and Plaintiffs fail to point to any specific deficiencies in Defendants’ discussion of environmental impacts or mitigation measures.
Accordingly, the Court finds that, even if the Court found that NEPA was applicable to Plaintiffs’ claims, the EA’s discussion of environmental impacts and mitigation measures complies with NEPA’s mandate.
c. Defendants Did Not Predetermine the Outcome Plaintiffs next argue that “Defendants pre-judged the outcome of the EA in favor of the NEFMC’s preferred alternatives.” Pls.’ Mot., ECF No. 18-1 at 49. According to Plaintiffs, “[n]othing in the administrative record suggests that NEFMC and Defendants seriously considered preserving the status quo.” Id. at 50. As evidence, Plaintiffs point to sections of the administrative record in which Defendants state that a cost-benefit analysis could not be “completed” before the Council selected its preferred alternatives, and that the Omnibus Amendment’s purpose was to “establish[] a clear *71 delineation of costs for monitoring between the industry and NMFS for all FMPs.” ; Pls.’ Reply, ECF No. 22 at 39. Plaintiffs also assert that Defendants received “overwhelmingly negative feedback from stakeholders and regulated parties,” which they argue would cause a “reasonable regulator” to “think twice.” Pls.’ Mot., ECF No. 18-1 at 50; see also Pls.’ Reply, ECF No. 22 at 39.
The standard for demonstrating predetermination is high.
See Forest Guardians v. U.S. Fish & Wildlife Serv.
, 611 F.3d
692, 714 (10th Cir. 2010);
Stand Up for Calif.! v. U.S. Dep’t of
the Interior
,
Defendants’ actions do not rise to the level of
predetermination. Regardless of whether Defendants had a bias
toward implementing some type of increased monitoring program in
the region, the extensive administrative record demonstrates
that any preferred outcome did not “prevent full and frank
consideration of environmental concerns.” at 205-06.
Furthermore, while Plaintiffs note that Defendants received
negative feedback during the comment periods for the Omnibus
Amendment and its implementing regulations, Plaintiffs do not
contend that Defendants ignored these comments or provided
insufficient responses.
See
Pls.’ Mot., ECF No. 18-1 at 49-50.
And as Defendants point out, Defendants likewise received
positive feedback advocating for greater monitoring coverage
than the alternative that was selected. Defs.’ Opp’n, ECF No.
20-1 at 54 (citing AR 17668-71, 17742). Put simply, an agency
“may work toward a solution, even its preferred one,”
Stand Up
for Calif.!
,
Accordingly, the Court concludes that Defendants did not predetermine the outcome of the EA.
d. Defendants Were Not Required to Supplement the EA Plaintiffs also argue that Defendants violated NEPA because they did not supplement the EA following herring catch reductions in 2019 and 2020, which Plaintiffs contend “will significantly impact the economics of the fishery and the viability of the fleet under an industry-funded monitoring regime.” Pls.’ Reply, ECF No. 22 at 39. Plaintiffs argue that the EA “contains no data” supporting Defendants’ finding that “increases in total revenue from other fisheries” would “mitigate the negative impacts of reductions to the herring ACL *74 and associated revenue.” Pls.’ Mot., ECF No. 18-1 at 51; see also Pls.’ Reply, ECF No. 22 at 42.
Under NEPA, an agency must prepare a supplement to an EA
when “[t]here are significant new circumstances or information
relevant to environmental concerns and bearing on the proposed
action or its impacts.”
Here, Defendants reasonably concluded that the herring
catch reductions did not “significantly transform the nature of
the environmental issues raised in the [EA].”
Nat’l Comm. for
the New River
,
Second, the record indicates that Defendants undertook a
careful evaluation of the significance of the herring catch
reductions prior to determining whether a supplement was needed.
See Marsh
,
Defendants then compared herring revenue generated by Category A and B herring vessels from 2014 to 2018 to assess the economic impact of a reduction in herring catch. Id. Based on this assessment, Defendants determined that “[e]ven though the 2018 [annual catch limit (“ACL”)] was reduced by 52 percent (54,188 mt) from the 2014 ACL, the impact on 2018 revenue wаs not proportional to the reduction in ACL and differed by gear type.” Id. Defendants explained that the change in revenue between 2014 and 2018 was affected by several factors, “such as the availability of herring relative to the demand and vessel participation in other fisheries.” Id. at 17738. Defendants also considered how the level of fishing effort, SBRM coverage, and certain mitigation measures would affect the economic impact of industry-funded monitoring. at 17738-39. After analyzing these factors, Defendants determined that reduced herring catch and its impacts fell within the initial EA’s scope and that a supplement was unnecessary because: “(1) the action is identical to the proposed action analyzed in the EA and (2) no new information or circumstances relevant to environmental concerns or impacts of the action are significantly different from when *78 the EA’s finding of no significant impact was signed on December 17, 2018.” at 17739.
As the D.C. Circuit has explained, “[t]he determination as
to whether information is either new or significant ‘requires a
high level of technical expertise’; thus, [courts] ‘defer to the
informed discretion of the [agency].’”
Blue Ridge
, 716 F.3d at
196-97 (quoting
Marsh
,
H. The Omnibus Amendment Does Not Violate the Regulatory Flexibility Act
Plaintiffs next argue that Defendants failed to meet their obligations under the Regulatory Flexibility Act (“RFA”) when promulgating the Omnibus Amendment.
Under the RFA, agencies must “consider the effect that
their regulation will have on small entities, analyze effective
alternatives that may minimize a regulation’s impact on such
*79
entities, and make their analyses available for public comment.”
Nat’l Women, Infants, & Children Grocers Ass’n v. Food &
Nutrition Serv.
,
“Although the RFA compels an agency to make substantive
determinations, a court cannot find an agency violated the RFA
merely because it disagrees with those determinations.”
Alfa
Int’l Seafood v. Ross
,
Here, Plaintiffs argue that the NEFMC and Defendants failed to comply with the RFA because the IRFA and the FRFA contained “conclusory findings” regarding the economic effects of the Omnibus Amendment that are “facially unreasonable.” Pls. Mot., ECF No. 18-1 at 52. Specifically, Plaintiffs contend that Defendants failed to consider: (1) “economic impacts associated with the omnibus alternatives,” id. (citing AR 17339); (2) “the full set of costs” that the industry-funded monitoring alternatives would “impose on regulated entities,” including “the danger of overlapping monitoring requirements, the effect of significant quota cuts . . . , and the actual feasibility of alternatives,” id. (citing AR 17341-46); and (3) an “explanation for their conclusion that certain businesses ‘were more likely *81 to exit the fishery if the cost of monitoring [were] perceived as too expensive,’” id. at 52-53 (citing AR 17342).
As an initial matter, the Court notes that Plaintiffs’
arguments appear to be a “non-starter” because Plaintiffs’
motion only cites to alleged compliance failures within the IRFA
and do not point to any alleged deficiencies within the FRFA.
Alfa Int’l Seafood
,
Even if the Court construed Plaintiffs’ three arguments as “attack[ing] the overall adequacy of Defendants’ economic impact analysis,” Pls.’ Reply, ECF No. 22 at 42; the arguments would still fail. First, while Plaintiffs contend that Defendants did not consider the economic impacts of the omnibus measures, the IRFA and the FRFA explain that those measures are “administrative and have no direct economic impacts.” AR 17339, 17744. Indeed, the measures explicitly set out the *82 administrative process to develop and maintain future industry- funded monitoring programs in other New England FMPs.
Plaintiffs’ contention that “Defendants and the NEFMC conceded
its omnibus measures will have ‘direct negative economic impacts
to fishing vessels,” Pls.’ Reply, ECF No. 22 at 43, is
misleading. In making that statement, Defendants were referring
to potential future programs and explained that “any direct
negative economic impacts to fishing vessels resulting from a
future [industry-funded monitoring] program would be evaluated
in the amendment to establish that [industry-funded monitoring]
program.” AR 17179;
cf. Associated Fishers of Me.
,
Defendants’ conclusion is reasonable.
Second, regarding Plaintiffs’ argument that Defendants did
not consider the “full set of costs” that would be imposed on
regulated entities, Pls.’ Mot., ECF No. 18-1 at 52; the record
demonstrаtes that Defendants underwent a reasoned analysis of
the economic impacts that vessels would face upon the
implementation of the Omnibus Amendment and that Defendants had
taken steps to minimize economic impacts on affected entities.
*83
See
AR 17341-46. While it is possible that the agency could have
included further detail or more study, the record nonetheless
demonstrates that Defendants engaged in a “reasonable, good
faith effort” to carry out the RFA’s mandate.
U.S. Cellular
Corp.
,
Third, Plaintiffs argue that Defendants failed to explain
their conclusion that certain businesses “were more likely to
exit the fishery if the cost of monitoring [were] perceived as
too expensive.” Pls.’ Mot., ECF No. 18-1 at 52-53 (citing AR
17342). “[W]here the agency has addressed a range of comments
and considered a set of alternatives to the proposal adopted,
the burden is upon the critic to show why a brief response on
one set of comments or the failure to analyze one element as a
separate alternative condemns the effort.”
Little Bay Lobster
Co.
,
Additionally,
Southern Offshore Fishing Association v.
Daley
,
Accordingly, the Court finds that Defendants fulfilled the requirements of the RFA in promulgating the Omnibus Amendment.
I. The Approval and Finalization of the Omnibus Amendment Was Procedurally Proper
Finally, Plaintiffs argue that the process of approving and finalizing the Omnibus Amendment was procedurally irregular and raises “procedural due process concerns.” Pls.’ Mot., ECF No. 18-1 at 54. However, a review of the MSA’s provisions governing *85 the Secretary’s review of FMPs, amendments, and proposed regulations demonstrates that Defendants followed the proper procedure.
Under the MSA’s regulatory framework, once the Council
transmits an FMP or amendment to the Secretary, the Secretary
must do two things: (1) “immediately commence a review of the
plan or amendment to determine whether it is consistent with the
national standards, the other provisions of this chapter, and
any other applicable law”; and (2) “immediately publish in the
Federal Register a notice stating that the plan or amendment is
available and that written information, views, or comments of
interested persons on the plan or amendment may be submitted to
the Secretary during the 60-day period beginning on the date the
notice is published.”
Proposed regulations implementing an FMP or amendment that
the Council deems “necessary or appropriate” must be submitted
to the Secretary “simultaneously” with the FMP or amendment.
Here, it is “undisputed” that Defendants “followed the
statutorily prescribed timelines for approval of an FMP
amendment and implementing regulations.”
See
Pls.’ Reply, ECF
No. 22 at 44. Instead, Plaintiffs argue that “[t]he
irregularities and due process concerns arise from Defendants
presuming the legality of the Omnibus Amendment and proposing
implementing regulations
before
any final approval decision for
the underlying FMP amendment.” at 44-45. However,
Plaintiffs’ argument is belied by the text of the statute. The
MSA clearly contemplates such a situation given its mandate that
*87
proposed regulations be submitted “simultaneously with the plan
or amendment under
Finally, Plaintiffs’ description of an inappropriate
“secret approval” of the Omnibus Amendment “in a non-public
letter [to the Council] that [NOAA] never officially
disseminated,” Pls.’ Mot., ECF No. 18-1 at 54; lacks any basis.
Rаther, NOAA acted as the MSA requires: upon approval of an FMP
or amendment, there must be “written notice to the Council” of
the Secretary’s decision.
IV. Conclusion
For the aforementioned reasons, the Court DENIES Plaintiffs’ Motion for Summary Judgment, GRANTS Defendants’ Cross-Motion for Summary Judgment, and GRANTS Defendants’ Motion to Exclude. An appropriate Order accompanies this Memorandum Opinion.
SO ORDERED.
Signed: Emmet G. Sullivan
United States District Judge
June 15, 2021
Notes
[1] When citing electronic filings throughout this Opinion, the Court cites to the ECF page number, not the page number of the filed document.
[2] Pursuant to
[3] Pursuant to
[4] The Service is a federal agency within the Department of Commerce’s NOAA.
[5] The MSA defines a “fishery” as “one or more stocks of fish
which can be treated as a unit for purposes of conservation and
management and which are identified on the basis of
geographical, scientific, technical, recreational, and economic
characteristics” and “any fishing for such stocks.”
[6] Atlantic herring inhabit the Atlantic Ocean off of the East coast of the United States and Canada, ranging from North Carolina to the Canadian Maritime Provinces. AR 17103. Atlantic herring play an important role in the Northwest Atlantic ecosystem, serving as a “forage species” for a number of other fish, marine mammals, and seabirds. Id. at 17070, 17161, 17511. There is also a directed fishery for Atlantic herring, composed primarily of vessels using midwater trawl gear, small-mesh bottom trawl vessels, and purse seines. at 17104.
[7] “The Atlantic Herring FMP achieves the NEFMC’s management goals through a stock-wide annual catch limit (‘ACL’) that is allocated between four distinct geographic management areas . .
[8] Lund’s Fisheries is not a plaintiff in this case. However, according to Plaintiffs, several Plaintiffs have the same owners and managers as Lund’s Fisheries, and, as such, they are operated together as a “single family of businesses.” See Compl., ECF No. 1 ¶ 19; Pls.’ Opp’n Exclude, ECF No. 25 at 6. For example, Plaintiff Loper Bright Enterprises, Inc., co-owns and operates a vessel with the owners of Lund’s Fisheries. See Compl., ECF No. 1 ¶ 11; Pls.’ Opp’n Exclude, ECF No. 25 at 6.