MARKLE INTERESTS, L.L.C.; P&F Lumbеr Company 2000, L.L.C.; PF Monroe Properties, L.L.C., Plaintiffs-Appellants v. UNITED STATES FISH AND WILDLIFE SERVICE; Daniel M. Ashe, Director of United States Fish & Wildlife Service, in his official capacity; United States Department of Interior; Sally Jewell, in her official capacity as Secretary of the Department of Interior, Defendants-Appellees Center for Biological Diversity; Gulf Restoration Network, Intervenor Defendants-Appellees Weyerhaeuser Company, Plaintiff-Appellant v. United States Fish and Wildlife Service; Daniel M. Ashe, Director of United States Fish & Wildlife Service, in his official capacity; Sally Jewell, in her official capacity as Secretary of the Department of Interior, Defendants-Appellees
No. 14-31008 Cons w/ No. 14-31021
United States Court of Appeals, Fifth Circuit.
Filed June 30, 2016
David C. Shilton, Esq., Environment & Natural Resources Division, Mary Elisabeth Hollingsworth, U.S. Department of Justice, Washington, DC, Luther Langon Hajek, U.S. Department of Justice, Environmental Defense Section, Denver, CO, for Defendants-Appellees United States Fish and Wildlife Service, Daniel M. Ashe, United States Department of Interior, and Sally Jewell.
Collette Lucille Adkins, Center for Biological Diversity, Circle Pines, MN, John Buse, Center for Biological Diversity, San Francisco, CA, Elizabeth Grace Livingston de Calderon, Tulane University, Tulane Environmental Law Clinic, New Orleans, LA, for Intervenor Defendants-Appellees Center for Biological Diversity and Gulf Restoration Network.
Paul Korman, Tyson Kade, Van Ness Feldman, L.L.P., Washington, DC, for Amicus Curiae American Farm Bureau Federation, National Alliance of Forest Owners, and National Association of Home Builders.
Malcolm Reed Hopper, Esq., Pacific Legal Foundation, Damien M. Schiff, Alston & Bird, L.L.P., Sacramento, CA, for Plaintiff-Appellant Markle Interests, L.L.C.
Before REAVLEY, OWEN, and HIGGINSON, Circuit Judges.
STEPHEN A. HIGGINSON, Circuit Judge:
This appeal requires us to consider the United States Fish and Wildlife Service‘s inclusion of private land in a critical-habitat designation under the
FACTS AND PROCEEDINGS
This case is about a frog—the Rana sevosa—commonly known as the dusky gopher frog.1 These frogs spend most of their lives underground in open-canopied pine forests.2 They migrate to isolated, ephemeral ponds to breed. Final Designation, 77 Fed. Reg. at 35,129. Ephemeral ponds are only seasonally flooded, leaving them to dry out cyclically and making it impossible for predatory fish to survive. See id. at 35,129, 35,131. After the frogs are finished breeding, they return to their underground habitats, followed by their offspring. Id. at 35,129. When the dusky gopher frog was listed as an endangered species, there were only about 100 adult frogs known to exist in the wild.3 Although, historically, the frog was found in parts of Louisiana, Mississippi, and Alabama, today, the frog exists only in Mississippi. Final Rule, 66 Fed. Reg. at 62,993-94; Final Designation, 77 Fed. Reg. at 35,132. The primary threat to the frog is habitat degradation. Final Rule, 66 Fed. Reg. at 62,994.
In 2010, under the
Together, Plaintiffs-Appellants Markle Interests, L.L.C., P&F Lumber Company 2000, L.L.C., PF Monroe Properties, L.L.C., and Weyerhaeuser Company (collectively, “the Landowners“) own all of Unit 1. Weyerhaeuser Company holds a long-term timber lease on all of the land that does not expire until 2043. The Landowners intend to use the land for residential and commercial development and timber operations. Through consolidated suits, all of the Landowners filed actions for declaratory judgment and injunctive relief against the Service, its director, the Department of the Interior, and the Secretary of the Interior. The Landowners challenged only the Service‘s designation of Unit 1 as critical habitat, not the designation of land in Mississippi.
The district court allowed the Center for Biological Diversity and the Gulf Restoration Network (collectively, “the Intervenors“) to intervene as defendants in support of the Service‘s final designation. All parties filed cross-motions for summary judgment. Although Judge Feldman granted summary judgment in favor of the Landowners on the issue of standing, he granted summary judgment in favor of the Service on the merits. See Markle Interests, LLC v. U.S. Fish & Wildlife Serv., 40 F.Supp.3d 744, 748, 769 (E.D. La. 2014). The Landowners timely appealed.
STANDARD OF REVIEW
We review a district court‘s grant of summary judgment de novo. Nola Spice Designs, L.L.C. v. Haydel Enters., Inc., 783 F.3d 527, 536 (5th Cir. 2015); see also Sabine River Auth. v. U.S. Dep‘t of Interior, 951 F.2d 669, 679 (5th Cir. 1992) (noting that the court of appeals reviews the administrative record de novo when the district court reviewed an agency‘s decision by way of a motion for summary judgment). Our review of the Service‘s ad
Review under the arbitrary-and-capricious standard is “extremely limited and highly deferential,” Gulf Restoration Network v. McCarthy, 783 F.3d 227, 243 (5th Cir. 2015) (internal quotation marks omitted), and “there is a presumption that the agency‘s decision is valid,” La. Pub. Serv. Comm‘n v. F.E.R.C., 761 F.3d 540, 558 (5th Cir. 2014) (internal quotation marks omitted). The plaintiff has the burden of overcoming the presumption of validity. La. Pub. Serv. Comm‘n, 761 F.3d at 558.
Under the arbitrary-and-capricious standard, we will not vacate an agency‘s decision unless it has relied on factors which Congress had not intended it to consider, entirely failed to consider an important aspect of the problem, offered an explanation for its decision that runs counter to the evidence before the agency, or is so implausible that it could not be ascribed to a difference in view or the product of agency expertise. Nat‘l Ass‘n of Home Builders v. Defs. of Wildlife, 551 U.S. 644, 658, 127 S.Ct. 2518, 168 L.Ed.2d 467 (2007) (internal quotation marks omitted). We must be mindful not to substitute our judgment for the agency‘s. FCC v. Fox Television Stations, Inc., 556 U.S. 502, 513, 129 S.Ct. 1800, 173 L.Ed.2d 738 (2009). That said, we must still ensure that “[the] agency examine[d] the relevant data and articulate[d] a satisfactory explanation for its action.” Id. (internal quotation marks omitted). “We will uphold an agency‘s action if its reasons and policy choices satisfy minimum standards of rationality.” 10 Ring Precision, Inc. v. Jones, 722 F.3d 711, 723 (5th Cir. 2013) (internal quotation marks omitted).
DISCUSSION
The Landowners raise three challenges to the Service‘s designation of Unit 1 as critical habitat for the dusky gopher frog. They argue that the designation (1) violates the
I. Endangered Species Act
Congress enacted the
To achieve this objective, the
A. Standing
Before addressing the merits of the Service‘s critical-habitat designation, we first address whether the Landowners have standing to challenge the designation. “The question of standing involves both constitutional limitations on federal-court jurisdiction and prudential limitations on its exercise.” Bennett, 520 U.S. at 162, 117 S.Ct. 1154 (internal quotation marks omitted). In particular, to establish standing under the
Even though the Service did not appeal the district court‘s standing conclusion, we must independently assess the Landowners’ Article III standing.9 See Hang On, Inc. v. City of Arlington, 65 F.3d 1248, 1251 (5th Cir. 1995) (“The federal courts are under an independent obligation to examine their own jurisdiction, and standing is perhaps the most important of the jurisdictional doctrines.” (alterations and internal quotation marks omitted)). “Article III of the Constitution limits federal courts’ jurisdiction to certain ‘Cases’ and ‘Controversies.‘” Clapper v. Amnesty Int‘l USA, 568 U.S. 398, 408, 133 S.Ct. 1138, 1147, 185 L.Ed.2d 264 (2013). “To satisfy the ‘case’ or ‘controversy’ requirement of Article III, which is the ‘irreducible constitutional minimum’ of standing, a plaintiff must ... demonstrate that he has suffered ‘injury in fact,’ that the injury is ‘fairly traceable’ to the actions of the defendant, and that the injury will likely be redressed by a favorable decision.” Bennett, 520 U.S. at 162, 117 S.Ct. 1154 (quoting Lujan v. Defs. of Wildlife, 504 U.S. 555, 560-61, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992)). The injury must be concrete and particularized, as well as actual or imminent. Lujan, 504 U.S. at 560, 112 S.Ct. 2130; see also Crane v. Johnson, 783 F.3d 244, 251 (5th Cir. 2015) (“Although imminence is concededly a somewhat elastic concept, it cannot be stretched beyond its purpose, which is to ensure that the alleged injury is not too speculative for Article III purposes—that the injury is certainly impending.“). “The party invoking federal jurisdiction bears the burden of establishing these elements.” Lujan, 504 U.S. at 561, 112 S.Ct. 2130.
Here, the Landowners assert two alleged injuries: lost future development and lost property value. The first—loss of future development—is too speculative to support Article III standing. Although “[a]n increased regulatory burden typically satisfies the injury in fact requirement,” Contender Farms, L.L.P. v. U.S. Dep‘t of Agric., 779 F.3d 258, 266 (5th Cir. 2015), any regulatory burden on Unit 1 is purely speculative at this point. As the Service emphasized in the designation, if future development occurring on Unit 1 avoids impacting jurisdictional wetlands, no federal permit would be required and the
Because the Landowners have not provided evidence that specific development projects are likely to be impacted by Section 7 consultation,10 lost future development is too speculative to support standing. See Lujan, 504 U.S. at 564, 112 S.Ct. 2130 (“Such ‘some day’ intentions—without any description of concrete plans, or indeed even any specification of when the some day will be—do not support a finding of the ‘actual or imminent’ injury that our cases require.“); see also Clapper, 133 S.Ct. at 1147-48 (holding that plaintiffs did not have standing to challenge the Foreign Intelligence Surveillance Act in part because they provided no evidence supporting their “highly speculative fear” that the government would imminently target communications to which plaintiffs were parties); Crane, 783 F.3d at 252 (holding that Mississippi did not have standing to challenge the federal government‘s deferred-action policy because its injury was “purely speculative” and because it failed to “produce evidence of costs it would incur” because of the policy); cf. Cape Hatteras Access Pres. Alliance v. U.S. Dep‘t of Interior, 344 F.Supp.2d 108, 117-18 (D.D.C. 2004) (holding that the burdens of Section 7 consultation supported standing when the plaintiffs identified specific, ongoing development projects that would be delayed because of the consultation requirement).
The Landowners’ assertion of lost property value, by contrast, is a concrete and particularized injury that supports standing. See Sabine River Auth., 951 F.2d at 674 (recognizing that injury in fact includes economic injury). The Landowners assert that their land has already lost value as a result of the critical-habitat designation. Indeed, as the Service recognized in its Final Economic Analysis, given the “stigma” attached to critical-habitat designations, “[p]ublic attitudes about the limits or restrictions that critical habitat may impose can cause real economic effects to property owners, regardless of whether such limits are actually imposed.” As a result, “a property that is designated as critical habitat may have a lower market value than an identical property that is not within the boundaries of critical habitat due to perceived limitations or restrictions.” The Service further assumed that “any reduction in land value due to the designation of critical habitat will happen immediately at the time of the designation.”
Causation and redressability flow naturally from this injury. If a plaintiff—or, here, the plaintiffs’ land—is the object of government action, “there is ordinarily little question that the action ... has caused him injury, and that a judgment preventing ... the action will redress it.” Lujan, 504 U.S. at 561-62, 112 S.Ct. 2130. We conclude that the Landowners’ decreased property value is fairly traсeable to the Service‘s critical-habitat designation and that this injury would likely be redressed by a favorable decision. Thus, the Landowners have established Article III standing based on lost property value.
B. Critical-Habitat Designation
The
The Service must designate critical habitat “on the basis of the best scientific data available and after taking into consideration the economic impact, the impact on national security, and any other relevant impact, of speсifying any particular area as critical habitat.”
In addition, under the regulations in place at the time of the critical-habitat designation at issue here, before the Service could designate unoccupied land as critical habitat, it first had to make a finding that “a designation limited to [a species‘] present range would be inadequate to ensure the conservation of the species.”
The Service adopted this consensus expert conclusion, finding that designating the occupied land in Mississippi was “not sufficient to conserve the species.” Final Designation, 77 Fed. Reg. at 35,123. The Service explained that “[r]ecovery of the dusky gopher frog will not be possible without the establishment of additional breeding populations of the species,” and it emphasized that it was necessary to designate critical habitat outside of Mississippi to protect against potential local events, such as drought and other environmental disasters. Id. at 35,124-25. The Service therefore determined that “[a]dditional areas that were not known to be occupied at the time of listing are essential for the conservation of the species.” Id. at 35,123. In sum, all of the experts agreed that designating occupied land alone would not be sufficient to conserve the dusky gopher frog. Thus, the Service‘s prerequisite inadequacy finding—a finding that the Landowners did not challenge13—was not arbitrary and capricious.
Having satisfied this preliminary requirement, the Service was next required to limit the critical-habitat designation to unoccupied arеas that are “essential for the conservation of the species.”
The Service therefore searched for isolated, ephemeral ponds within the historical range of the frog in Alabama and Louisiana. See Final Designation, 77 Fed. Reg. at 35,124. The area in Alabama where the frog once lived has since been replaced by a residential development. See id. The Service noted that it was unable to find any breeding sites that the frog might use in the future in Alabama. See id. In contrast, the Service explained that Unit 1‘s five ephemeral ponds are “intact and of remarkable quality.” Id. at 35,133. It noted that the ponds in Unit 1 “are in close proximity to each other, which would allow movement of adult gopher frogs between them” and would “provide metapopulation structure that supports long-term survival and population resiliency.” Id. “Based on the best scientific information available to the Service,” the Service concluded that “the five ponds in Unit 1 provide breeding habitat that in its totality is not known to be present elsewhere within the historic range of the dusky gopher frog.” Id. at 35,124.
Finally, in addition to ephemeral ponds, dusky gopher frogs alsо require upland forested habitat and connected corridors that allow them to move between their breeding and nonbreeding habitats. See id. at 35,131-32. Looking to the upland terrestrial habitat surrounding Unit 1‘s ephemeral ponds, the Service relied on scientific measurements and data to draw a boundary around Unit 1. The Service used digital aerial photography to map the ponds and then to delineate critical-habitat units by demarcating a buffer zone around the ponds by a radius of 621 meters (or 2,037 feet). Id. at 35,134. This value, which was based on data collected during multiple gopher frog studies, represented the median farthest distance that frogs had traveled from breeding sites (571 meters or 1,873 feet) plus an extra 50 meters (or 164 feet) “to minimize the edge effects of the surrounding land use.” Id. The Service finally used aerial imagery to connect criti
Altogether, the Service concluded: Unit 1 is essential to the conservation of the dusky gopher frog because it provides: (1) Breeding habitat for the dusky gopher frog in a landscape where the rarity of that habitat is a primary threat to the species; (2) a framework of breeding ponds that supports metapopulation structure important to the long-term survival of the dusky gopher frog; and (3) geographic distance from extant dusky gopher frog populations, which likely provides protection from environmental stochasticity. Id. As Judge Feldman reasoned below, “[the Service‘s] finding that the unique ponds located on Unit 1 are essential for the frog‘s recovery is supported by the
On appeal, the Landowners do not dispute the scientific or factual support for the Service‘s determination that Unit 1 is essential.14 Instead, they argue that the Service “exceeded its statutory authority” under the
As Judge Feldman noted, Congress has not defined the word “essential” in the
We consider first their argument that it is an unreasonable interpretation of the
We consider next the argument that it is an unreasonable interpretation of the
Moreover, we observe that the Landowners’ proposed temporal requirement could effectively exclude all private land not currently occupied by the species from
We next consider the argument that the Service has interpreted the word “essential” unreasonably because its interpretation fails to place “meaningful limits” on the Service‘s power under the
Next, under the
In sum, the Landowners have not established that the Service interpreted the
Finally, the Landowners contend that it is improper to protect Unit 1 with a critical-habitat designation when there are other ways to ensure that Unit 1 will assist with the conservation of the gopher frog. It is true that the Service could manage Unit 1 by purchasing the land. See
In sum, the designation of Unit 1 as critical habitat was not arbitrary and capricious nor based upon an unreasonable interpretation of the
C. Decision Not to Exclude Unit 1
In addition to attacking the Service‘s conclusion that Unit 1 is essential for the conservation of the dusky gopher frog, the Landowners also challenge the Service‘s conclusion that the economic impacts on Unit 1 are not disproportionate. See Final Designation, 77 Fed. Reg. at 35,141. The Landowners argue that because the benefits of excluding Unit 1 from the designation clearly outweigh the benefits of including it in the designation, the Service‘s decision is arbitrary and capricious. The Landowners contend that because Unit 1 is not currently habitable by the dusky gopher frog, the land provides no biological benefit to the frog. They emphasize that Unit 1, by contrast, bears a potential loss of development value of up to $33.9 million over twenty years.
The
may exclude any area from critical habitat if [it] determines that the benefits of such exclusion outweigh the benefits of specifying such area as part of the critical habitat, unless [it] determines, based on the best scientific and commercial data available, that the failure to designate such area as critical habitat will result in the extinction of the species concerned.
The only other circuit court that has confronted this issue has recognized that there are no manageable standards for reviewing the Service‘s decision not to exercise its discretionary authority to exclude an area from a critical-habitat designation. See Bear Valley Mut. Water Co., 790 F.3d at 989-90. It therefore held that the decision not to exclude is unreviewable. Id.; see also Bldg. Indus. Ass‘n of Bay Area v. U.S. Dep‘t of Commerce, 792 F.3d 1027, 1034 (9th Cir. 2015), aff‘g No. C 11-4118, 2012 WL 6002511 (N.D. Cal. Nov. 30, 2012). Similarly, every district court that has addressed this issue has also held that the decision not to exclude is not subject to judicial review. See Aina Nui Corp. v. Jewell, 52 F.Supp.3d 1110, 1132 n. 4 (D. Haw. 2014) (“The Court does not review the Service‘s ultimate decision not to exclude ..., which is committed to the agency‘s discretion.“); Cape Hatteras Access Pres. Alliance v. U.S. Dep‘t of Interior, 731 F.Supp.2d 15, 29 (D.D.C. 2010) (“The plain reading of the statute fails to provide a standard by which to judge the Service‘s decision not to exclude an area from critical habitat.“); Home Builders Ass‘n of N. Cal. v. U.S. Fish & Wildlife Serv., No. CIV. S-05-0629, 2006 WL 3190518, at *20 (E.D. Cal. Nov. 2, 2006) (“[T]he court has no substantive standards by which to review the [agency‘s] decisions not to exclude certain tracts based on economic or other considerations, and those decisions are therefore committed to agency discretion.“).
We see no reason to chart a new path on this issue in concluding that we cannot review the Service‘s decision not to exercise its discretion to exclude Unit 1 from the critical-habitat designation. Section
The Supreme Court‘s recent decision in Michigan v. EPA, — U.S. —, 135 S.Ct. 2699 (2015), does not compel a contrary conclusion. In Michigan, the Environmental Protection Agency (“EPA“) had interpreted a provision of the
Unlike the provision of the
II. Commerce Clause
Having concluded that the Service‘s designation of Unit 1 as critical habitat was not arbitrary and capricious, we must next consider the Landowners’ alternative argument that the
The Landowners concede that, “properly limited and confined to the statutory definition,” the critical-habitat provision of the
The Supreme Court has outlined four considerations that are relevant when analyzing whether Congress can regulate purely intrastate activities under the third Lopez prong. See United States v. Morrison, 529 U.S. 598, 609-12 (2000). First, courts should consider whether the intrastate activity “in question has been some sort of economic endeavor.” Id. at 611. Second, courts should consider whether there is an “express jurisdictional element” in the statute that might limit its application to instances that “have an explicit connection with or effect on interstate commerce.” Id. at 611-12. The next consideration that should inform the analysis is legislative history
The first consideration is whether the regulated intrastate activity is economic or commercial in nature. Id. at 611. The question thus arises: what is the regulated activity that we must analyze? See GDF Realty Invs., Ltd. v. Norton, 326 F.3d 622, 633 (5th Cir. 2003). In GDF Realty, where we examined the “take” provision22 of the
The next issue is whether the designation of Unit 1 as critical habitat is economic or commerсial in nature. “[W]hether an activity is economic or commercial is to be given a broad reading in this context.” Id. at 638. In certain cases, an intrastate activity may have a direct relationship to commerce and therefore the intrastate activity alone may substantially affect interstate commerce. Alternatively, “the regulation can reach intrastate commercial activity that by itself is too trivial to have a substantial effect on interstate commerce but which, when aggregated with similar and related activity, can substantially affect interstate commerce.” United States v. Ho, 311 F.3d 589, 599 (5th Cir. 2002).
The designation of Unit 1 alone may not have a direct relationship to commerce, but under the aggregation principle, the designation of Unit 1 survives constitutional muster. Under this principle, the intrastate activity can be regulated if it is “an essential part of a larger regulation of economic activity, in which the regulatory scheme could be undercut unless the intrastate activity were regulated.” Gonzales v. Raich, 545 U.S. 1, 36 (2005) (quoting Lopez, 514 U.S. at 561). Thus, there are two factors we must consider: (1) whether the provision mandating the designation of critical habitat is part of an economic regulatory scheme, and (2) whether designation is essential to that scheme.
We have already concluded that the
But it is not sufficient that the
This conclusion is consistent with our analysis of the ESA‘s “take” provision in GDF Realty. There, we held that “takes” of an endangered species that lived only in Texas could be aggregated with takes of other endangered species nationwide to survive a Commerce Clause challenge. GDF Realty, 326 F.3d at 640-41. That case concerned the Service‘s regulation of takes of six subterranean endangered species (“the Cave Species“) located solely in two counties in Texas. Id. at 625. Similar to the Landowners here, the owners of some of the land under which these species lived wanted to develop the land into a commercial and residential area; they sued the government, claiming that the take provision of the
This caselaw compels the same conclusion here. For one, we see no basis to distinguish the ESA‘s prohibition on
Given this conclusion, the designation of Unit 1 may be aggregated with all other critical-habitat designations. As Judge Feldman correctly observed, “[w]here the class of activities is regulated and that class is within the reach of federal power, the courts have no power to excise, as trivial, individual instances of the class.” Markle Interests, 40 F.Supp.3d at 759 (alteration in original) (quoting Raich, 545 U.S. at 23) (internal quotation marks omitted). “[W]hen a general regulatory statute bears a substantial relation to commerce, the de minimis character of individual instances arising under that statute is of no consequence.” Raich, 545 U.S. at 17 (citations and internal quotation marks omitted). We therefore will not look at the designation of Unit 1 in isolation, but instead we consider it aggregated with all other critical-habitat designations. Judge Feldman reached the same conclusion, explaining that, “[a]ggregating the regulation of activities that adversely modify the frog‘s critical habitat“—including the isolated designation of Unit 1—“with the regulation of activities that affect other listed species’ habitat, the designation of critical habitat by the [Service] is a constitutionally valid application of a constitutionally valid Commerce Clause regulatory scheme.” Markle Interests, 40 F.Supp.3d at 759. Because the Landowners concede that the critical-habitat provision of the
In this sense, the ESA‘s critical-habitat provision “is limited to instances which ‘have an explicit connection with or effect on interstate commerce.‘” Id. (quoting Morrison, 529 U.S. at 611-12).
Next, the congressional findings, legislative history, and statutory provisions indicate that the regulated activity has an effect on interstate commerce. See
Finally, the link between critical-habitat designation and its effect on interstate commerce is not too attenuated. The
III. National Environmental Policy Act
Finally, the Landowners contend that the Service violated
Judge Feldman correctly held that the designation of Unit 1 does not trigger
Alternatively, this claim is resolved on the threshold issue of the Landowners’ standing to raise this NEPA claim. A plaintiff bringing a claim under
CONCLUSION
For the reasons stated above, we AFFIRM the judgment of the district court.
PRISCILLA R. OWEN, Circuit Judge, dissenting:
There is a gap in the reasoning of the majority opinion that cannot be bridged. The area at issue is not presently “essential for the conservation of the [endangered] species”1 because it plays no part in the conservation of that species. Its biological and physical characteristics will not support a dusky gopher frog population. There is no evidence of a reasonable probability (or any probability for that matter) that it will become “essential” to the conservation of the species because there is no evidence that the substantial alterations and maintenance necessary to transform the area into habitat suitable for the endangered species will, or are likely to, occur. Land that is not “essential” for conservation does not meet the statutory criteria for “critical habitat.”2
The majority opinion interprets the
The majority opinion upholds the governmental action here on nothing more than the Government‘s hope or speculation that the landowners and lessors of the 1,544 acres at issue will pay for removal of the currently existing pine trees used in commercial timber operations and replace them with another tree variety suitable for dusky gopher frog habitat, and perform other modifications as well as future annual maintenance, that might then support the species if, with the landowners’ cooperation, it is reintroduced to the area. The language of the
Undoubtedly, the ephemeral ponds on the property at issue are somewhat rare. But it is undisputed that the ponds cannot themselves sustain a dusky gopher frog population. It is only with significant transformation and then, annual maintenance, each dependent on the assent and financial contribution of private landowners, that the area, including the ponds, might play a role in conservation. The
The majority opinion‘s holding is unprecedented and sweeping.
I
A Final Rule4 of the United States Fish and Wildlife Service (the “Service“) designated 12 units of land encompassing 6,477 acres as “critical habitat”5 for the dusky gopher frog. Eleven of those units, totaling 4,933 acres, are in four counties in Mississippi,6 and they are not at issue in this appeal. It is only the owners and lessors of the twelfth unit, comprised of 1,544 acres in Louisiana and denominated Unit 1 by the Service,7 that have appealed the designation. The dusky gopher frog species was last seen in Louisiana in 1965 in one small pond located on Unit 1.8
The Service specifically found in its Final Rule that Unit 1 contains only one of the physical or biological features and habitat characteristics required to sustain the species’ life-history processes.9 That characteristic is the existence of five ephemeral ponds on the Louisiana property. The Service acknowledged that the other necessary characteristics were lacking, finding, among its other conclusions, that “the surrounding uplands are poor-quality terrestrial habitat for dusky goрher frogs.”10 While the Service was of the opinion that “[a]lthough the uplands associated with the ponds do not currently contain the essential physical or biological features of critical habitat, we believe them to be restorable with reasonable effort”11 to permit habitation, the Service candidly recognized in the Final Rule that it could not undertake any efforts to change the current features of the land or to move frogs onto the land without the permission and cooperation of the owners of the land.12 It cited no evidence, and there is none, that “reasonable efforts” would in fact be made to restore “the essential physical or biological features of critical habitat” on Unit 1. The Service cited only its “hope” that such alterations would be taken by the landowners.13
In particular, the Service found that an open-canopied longleaf pine ecosystem is necessary for the habitat of this species of frog.14 Approximately ninety percent of the property is currently covered with closed-canopy loblolly pine plantations. These trees would have to be removed or burned and then replaced with another tree variety to allow the establishment of the habitat that the Service has concluded is necessary for the breeding and sustaining of a dusky gopher frog population. It is undisputed that the land is subject to a timber lease until 2043, timber operations are ongoing, and neither the owner of the property nor the timber lessee is willing to permit the substantial alterations that the Service concluded would be necessary to restore the potentiality of the ponds and surrounding area as habitat for this species of frog.
II
Review of the Service‘s decisions under the
The
(i) the specific areas within the geographical area occupied by the species, at the time it is listed in accordance with the provisions of section 1533 of this title, on which are found those physical or biological features (I) essential to the conservation of the species and (II) which may require special management considerations or protection; and
(ii) specific areas outside the geographical area occupied by the species at the time it is listed in accordance with the provisions of section 1533 of this title, upon a determination by the Secretary that such areas are essential for the conservation of the species.17
The Final Rule reflects that “Unit 1 is not currently occupied nor was it occupied at the time the dusky gopher frog was listed [as an endangered species].”18 Accordingly, the authority of the Service to designate this area as “critical habitat” is governed by subsection (ii). The statute requires that Unit 1 must be “essential for the conservation of the species” or else it cannot be designated as “critical habitat.”
The word “essential” means more than desirable. Black‘s Law Dictionary defines “essential” as “2. Of the utmost importance; basic and necessary. 3. Having real existence, actual.”19 The Service‘s conclusion that Unit 1 is “essential” for the conservation of the dusky gopher frog contravenes these definitions. Unit 1 is not “actual[ly]” playing any part in the conservation of the endangered frog species. Nor is land “basic and necessary” for the conservation of a species when it cannot support the existence of the endangered species unless the physical characteristics of the land are significantly modified. This is particularly the case when the Government is powerless to effectuate the desired transformation unless it takes (condemns) the property and funds these efforts. There is no evidence that the modifications and maintenance necessary to transform Unit 1 into habitat will be undertaken by anyone.
The Government‘s, and the majority opinion‘s, interpretation of “essential” means that virtually any part of the United States could be designated as “critical habitat” for any given endangered species so long as the property could be modified in a way that would support introduction and subsequent conservation of the species on it. This is not a reasonable construction of
We are not presented with a case in which land, though unoccupied by an endangered species, provides elements to neighboring or downstream property that are essential to the survival of the species in the areas that it does occupy. For example, the Ninth Circuit concluded that certain areas, though unoccupied, were “essential” to an endangered species (the Santa Ana sucker, a small fish) because the designated areas were “the primary sources of high quality coarse sediment for the downstream occupied portions of the Santa Ana River,” and that “coarse sediment was essential to the sucker because [it] provided a spawning ground as well as a feeding ground from which the sucker obtained algae, insects, and detritus.”20 In the present case, Unit 1 does not support, in any way, the existence of the dusky gopher frog or its habitat. Our analysis therefore concerns only whether the property is “essential for the conservation of the species” as an area that might be capable of occupation by the dusky gopher frog if the area were physically altered.
The majority opinion cites the Ninth Circuit‘s decision regarding the Santa Ana sucker as support for the majority opinion‘s assertion that “[t]here is no habitability requirement in the text of the
The meaning of the word “essential” undoubtedly vests the Service with significant discretion in determining if an area is “essential” to the conservation of a species, but there are limits to a word‘s meaning and hence the Service‘s discretion. The Service‘s interpretation of “essential for the conservation of the species”23 in the present case goes beyond the boundaries of what “essential” can reasonably be interpreted to mean. As the Supreme Court has explained, “an agency‘s interpretation of a statute is not entitled to deference when it goes beyond the meaning that the statute can bear.”24
In MCI Telecommunications Corp. v. AT&T Co.,
The District of Columbia Circuit Court held in Southwestern Bell Corp. v. FCC that an agency‘s interpretation of a statute is not entitled to deference when that interpretation “‘goes beyond the meaning that the statute can bear.‘”32 That court was fully cognizant of Chevron‘s33 teaching that “‘if the statute is silent or ambiguous with respect to the specific issue, the question for the court is whether the agency‘s answer is based on a permissible construction of the statute.‘”34 In Southwestern Bell, the FCC contended that because the term “schedules” was not defined in the
The majority opinion says that MCI Telecommunications Corp. is distinguishable because in that case, the agency‘s interpretation of “modify” “flatly contradicted the definition provided by ‘virtually every dictionary [the Court] was aware of.‘”37 The majority opinion then observes that one definition of “essential” is “of the utmost importance; basic and necessary,” and concludes that this definition “describes well a close system of ephemeral ponds, per the scientifiс consensus that the Service relied upon.”38 This highlights the opinion‘s misdirected focus and frames the question that is at the heart of this case. That question is whether the
The Service‘s implicit construction of the meaning of “essential for the conservation of the species” is not entitled to deference because it exceeds the boundaries of the latitude given to an agency in construing a statute to which Chevron deference is applicable. The term “essential” cannot reasonably be construed to encompass land that is not in fact “essential for the conservation of the species.” When the only possible basis for designating an area as “critical habitat” is its potential use as actual habitat, an area cannot be “essential for the conservation of the species” if it is uninhabitable by the species and there is no reasonable probability that it will become habitable by the species. Even if scientists agree that an area could be modified to sustain a species, there must be some basis for concluding that it is likely that the area will be so modified. Otherwise, the area could not and will not be used for conservation of the species and therefore cannot be “essential” to the conservation of the species.
With great respect, at other junctures, the majority opinion misdirects the inquiry as to the proper meaning of “essential for the conservation of the species.” The opinion examines an irrelevant question in arguing that there is no “temporal requirement” in the text of the
The majority opinion fails to discern the meaningful boundary that the term “essential” places on the Service in designating “critical habitat.” The opinion fails to appreciate the distinction between land that, because of its physical and biological features, cannot be used for conservation without significant alteration and land that is actually habitable but not occupied by the species.42 The majority opinion posits that “[the Landowners’ logic] would also seem to allow landowners whose land is immediately habitable to block a critical-habitat designation merely by declaring that they will not—now or ever—permit the reintroduction of the species to their land.”43 The fact that a landowner is unwilling to permit the reintroduction of a species does not have a bearing on whether the physical and biological features of the land make it suitable as habitat. Land that is habitable but unoccupied by the species may be “essential” if the areas that a species currently occupies are inadequate for its survival. Even if the landowner asserts that it will not allow introduction of the species, the Service may designate the land as “critical habitat” because it is in fact habitable, and the consultation and permitting provisions of the Act may be used to attempt to persuade the owner to not destroy the features that make the area habitable and to allow the species to be reintroduced. However, when land would have to be significantly modified to either serve as habitat or to serve as a source of something necessary to another area that is habitat (such as the sediment in the Santa Ana sucker case), then whether there is a probability that the land will be so modified must be part of the equation of whether the area is
The majority opinion rejects the logical limits of the word “essential” in concluding that requiring either actual use for conservation or a reasonable probability of use for conservation to satisfy the “essential for the conservation of the species” requirement in the statute would be reliant on the subjective intentions of landowners.44 Whether there is a reasonable probability that land will be modified so that it is suitable as habitat is an objective inquiry that would consider many factors. Those factors might well (and in most instances probably would) include economic considerations such as the values of various uses of the land. The inquiry would be whether a reasonable landowner would be likely to undertake the necessary modifications. In some cases, a landowner might have entered into an agreement to modify land so that it may be used as habitat, and in such a case, there would be nothing “subjective” in concluding that it is reasonably probable that the land will actually be used as habitat and therefore “essential” for the conservation of the species.
The majority opinion‘s interpretation of the
Apparently recognizing that unless cabined in some way, the majority opinion‘s holding would give the Service unfettered discretion to designate land as “critical habitat” so long as scientists agree that uninhabitable land can be transformed into habitat, the majority opinion asserts that at least one “physical or biological feature[] ... essential to the conservation of the species”49 must be present to permit the Service to declare land that is uninhabitable by the species to be “critical habitat.” It must be emphasized that this is the linchpin to the majority‘s holding. When the only potential use of an area for conservation is use as habitat, the Service cannot designate uninhabitable land as “critical habitat,” the majority opinion concedes, even if scientists agree that the land could be altered to become habitat.50 But,
Here, the Service confirmed through peer review and two rounds of notice and comment a scientific consensus as to the presence and rarity of a critical (and difficult to reproduce) feature—the ephemeral ponds—which justified its finding that Unit 1 was essential for the conservation of the dusky gopher frog.51
This re-writes the
The majority opinion‘s reasoning also suffers from internal inconsistency. The oрinion asserts that, unlike land that is occupied by the species, there is no requirement under the
We fail to see how the Service would be able to similarly justify as rational an essentiality finding as to arbitrarily chosen land. In contrast, the dissent, similar to the Landowners, contends that “[i]t is easily conceivable that ‘the best scientific data available’ would lead scientists to conclude that an empty field that is not currently habitable could be altered to become habitat for an endangered species.” Even assuming that to be true, it does not follow that scientists or the Service would or could then reasonably call an empty field essential for the conservation of a species. If the field in question were no different than any other empty field, what would make it essential? Presumably, if the field could be modified into suitable habitat, so could any of the one hundred or one thousand other similar fields. If the fields are fungible, it would be arbitrary for the Service to label any single one “essential” to the conservation of a species. It is only by overlooking this point that the dissent can maintаin that our approval of the Service‘s reading of “essential” will “mean[] that virtually any part of the United States could be designated as ‘critical habitat’ for any given endangered species so long as the property could be modified in a way that would support introduction and subsequent conservation of the species on it.”58
I have difficulty with this reasoning. There is undeniably a textual difference in the
The majority opinion strenuously denies that its holding allows the Service to “designate any land as critical habitat whenever it contains a single one of the ‘physical or biological features’ essential to the conservation of the species at issue.”60 But the opinion‘s ensuing explanation illustrates that is precisely the import of its holding: “if the ponds are essential, then Unit 1, which contains the ponds, is essential for the conservation of the dusky gopher frog.”61 The Service itself found, based on scientific data, that the ponds are only one of three “primary constituent elements” that are “essential to the conservation of the species.”62 The other two primary constituent elements are not present on Unit 1 and would require substantial modification of Unit 1 to create them.63
The Service‘s construction of the
III
The majority opinion quotes a Supreme Court decision, which says: “[w]hen examining this kind of scientific determination, as opposed to simple findings of fact, a reviewing court must generally be at its most deferential.”64 However, the panel‘s majority opinion does not identify any finding by the Service as being “this kind of scientific determination.” Instead, the opinion appears to address the proper interpretation of “essential for the conservation of the species,” as applied to the point of contention in this case, as a question of law based on the words Congress chose.
The fact that scientific evidence was a part of the proceedings leading to the Final Rule65 does not mean that all determinations in the Final Rule are subject to deference by a reviewing court. No one disputes that reputable scientists made valid determinations in the administrative proceedings undertaken by the Service. However, the scientific evidence and conclusions have no bearing on the issue of statutory construction about which the parties in this case disagree: Did Congress intend to permit the designation of land as “critical habitat” when the land is not occupied by an endangered species and would have to be substantially modified then periodically maintained in order to be used as habitat, and when there is no indication that the land will in fact be modified or maintained in such a manner?
IV
The phrase “essential for the conservation of the species” requires more than a theoretical possibility that an area designated as “critical habitat” will be transformed such that its physical characteristics are essential to the conservation of the species. There is no evidence that it is probable that Unit 1 will be physically modified in the manner that the scientists uniformly agree would be necessary to sustain a dusky gopher frog population. The conclusion by the Service that Unit 1 is “essential for the conservation of the species” is therefore not supported by substantial evidence, and the designation of Unit 1 as “critical habitat” should be vacated under the
The Service recognized in the Final Rule that under the
tained by fires frequent enough to support an open canopy and abundant herbaceous ground cover, and upland habitat between breeding and nonbreeding habitat that is characterized by an open canopy, abundant native herbaceous species, and a subsurface structure that provides shelter for dusky gopher frogs during seasonal movements.68
The other eleven units designated in the Final Rule had all three constituent elements.69 However, the Service found that Unit 1 has only one of the three primary constituent elements detailed in the Final Rule—the ephemeral ponds.70 Isolated wetlands, like the ephemeral ponds that exist on Unit 1, are necessary to sustain a population of the species as a breeding ground.71 But frogs do not spend most of their lives breeding in ponds, and the existence of the ponds will not alone provide the necessary habitat. “Both forested uplands and isolated wetlands ... are needed to provide space for individual and population growth and for normal behavior.”72 The Service found that dusky gopher frogs “spend most of their lives underground in forested habitat consisting of fire-maintained, open-canopied, pine woodlands historically dominated by longleaf pine.”73 Unit 1 is covered with a closed-canopy forest of loblolly pines.
The Service also identified the alterations and special management that would be required within the areas designated as critical habit, including Unit 1, to sustain a dusky gopher frog population.74 The Service found with regard to Unit 1 that “[a]lthough the uplands associated with the ponds do not currently contain the essential physical or biological features of critical habitat, we believe them to be restorable with reasonable effort.”75 This finding is insufficient to sustain the conclusion that Unit 1 is “essential for the conservation of the species” for at least two reasons. First, finding that the uplands are “restorable” is not a finding that the areas will be “restored.” Unless the uplands are restored, they cannot be and are not essential for the conservation of the frog. Second, the Service does not explain who will expend the “reasonable effort” necessary to restore the uplands. In sum, the designation of Unit 1 as critical habitat is not supported by substantial evidence because there is no evidence that Unit 1 will be modified in such a way that it can serve as habitat for the frog.
In fact, the Service itself concluded that it is entirely speculative as to whether Unit 1 will be transformed from its current use for commercial timber operations into dusky gopher frog habitat by removing the loblolly pines and replacing them with longleaf pines, and by the other activities necessary to create frog habitat. The Service was required by the
This does not constitute substantial, or even any, evidence that Unit 1 is now or will become suitable habitat for the dusky gopher frog, which is the only basis on which the Service has ever posited that Unit 1 is “essential for the conservation of the species.”81 (As discussed above, the Service has never contended that Unit 1 is essential because of support that it provides to another area that is occupied by the frog.)
The Service described three different scenarios to assess the potential economic impact of the Final Rule.82 In the first scenario, “no conservation measures are implemented for the species.”83 The Service reasoned that development on Unit 1 might avoid any federal nexus and therefore no consultation would be required, and no conservation of the species would occur. The Service therefore expressly recognized that Unit 1 may never play any role in the “conservation of the species.”
In the Service‘s second scenario, the Service assumes that development is sought by the owners,84 section 7 consultation occurs that results in development on 40% of Unit 1, and the remaining 60% is managed as dusky gopher frog habitat.85 (The Service estimates that the landowners would suffer a loss of $20.4 million due to the loss of the option to develop 60% of the area.)86 This is the only scenario, in the entirety of the Final Rule, that explains how, at least theoretically, Unit 1‘s landscape would be altered so that it could be used as dusky gopher frog habitat. But the Service made no findings that this scenario was likely or probable.
Under Scenario 3, the Service assumes that the owners desire to develop Unit 1, section 7 consultation occurs, but no development is permitted on Unit 1 by the Government “due to the importance of the unit in the conservation and recovery of the species.”87 (The Service estimates that the loss of the option to develop 100% of Unit 1 would result in a loss of $33.9 million to the owners.)88 Significantly, the Service does not posit that any of Unit 1 would actually be used as dusky gopher frog habitat under Scenario 3, in spite of its alleged “importance” to conservation. Undoubtedly, that is because if the federal government would not permit the landowners to develop any part of Unit 1, why would the owners undertake to modify Unit 1 so that it could be used as frog habitat? The Government has no plans to pay for the creation of habitat on Unit 1. Habitat will only be created, and therefore conservation will only occur, if the owners decide to modify their property. The only evidence in the record is that the owners do not plan to do so and there is no evidence that the economic or other considerations would lead a reasonable landowner to create frog habitat on Unit 1.
Scenario 3 shows, in the starkest of terms, why the Service‘s position that Unit 1 is “essential for the conservation of the species” is illogical on its face. Even if the Government does not allow any development on Unit 1 because of the existence of the ephemeral ponds, the Government is aware that Unit 1 cannot be used for the conservation of the dusky gopher frog because someone or some entity would have to significantly modify Unit 1 to make it suitable for frog habitat. Unsuitable habitat is not essential for the conservation of the species.
* * *
I would vacate the Final Rule‘s designation of Unit 1 as critical habitat, and I therefore dissent.
Notes
Special management considerations or protection are required within critical habitat areas to address the threats identified above. Management activities that could ameliorate these threats include (but are not limited to): (1) Maintaining critical habitat areas as forested pine habitat (preferably longleaf pine); (2) conducting forestry management using prescribed burning, avoiding the use of beds when planting trees, and reducing planting densities to create or maintain an open canopied forest with abundant herbaceous ground cover; (3) maintaining forest underground structure such as gopher tortoise burrows, small mammal burrows, and stump holes; (4) and protecting ephemeral wetland breeding sites from chemical and physical changes to the site that could occur by presence or construction of ditches or roads.
Under scenario 1, development occurring in Unit 1 avoids impacts to jurisdictional wetlands and as such, there is no Federal nexus (no Federal permit is required) triggering section 7 consultation regarding dusky gopher frog critical habitat. Absent consultation, no conservation measures are implemented for the species, and critical habitat designation of Unit 1 does not result in any incremental economic impact.
According to scenarios 2 and 3, the vast majority of the incremental impacts would stem from the lost development value of land in Unit 1. Under scenarios 2 and 3, less than one percent of the incremental impacts stem from the administrative costs of future section 7 consultations. Under scenario 2, the analysis assumes the proposed development of Unit 1 requires a Section 404 permit from the Corps due to the presence of jurisdictional wetlands. The development would therefore be subject to section 7 consultation considering critical habitat for the dusky gopher frog. This scenario further assumes that the Service works with the landowner to establish conservation areas for the dusky gopher frog within the unit. The Service anticipates that approximately 40 percent of the unit may be developed and 60 percent is managed for dusky gopher frog conservation and recovery. According to this scenario, present value incremental impacts of critical habitat designation due to the lost option for developing 60 percent of Unit 1 lands are $20.4 million. Total present value incremental impacts of critical habitat designation across all units are therefore $20.5 million ($1.93 million in annualized impacts), applying a 7 percent discount rate.
