NATURAL RESOURCES DEFENSE COUNCIL, INC.; Oceana, Inc., Plaintiffs-Appellants, v. NATIONAL MARINE FISHERIES SERVICE; Donald Evans, Secretary of Commerce; National Oceanic and Atmospheric Administration, Defendants-Appellees, and West Coast Seafood Processors Association; Fishermen‘s Marketing Association, Defendants-intervenors-Appellees.
No. 03-16842.
United States Court of Appeals, Ninth Circuit.
Argued and Submitted Feb. 15, 2005. Filed Aug. 24, 2005.
421 F.3d 872
David C. Shilton, Environment and Natural Resources Division, United States Department of Justice, Washington, D.C., for the defendants-appellees.
James P. Walsh, Davis Wright Tremaine, LLP, San Francisco, CA, for the defendants-intervenors-appellees.
Before D.W. NELSON, W. FLETCHER and FISHER, Circuit Judges.
FISHER, Circuit Judge.
Appellee National Marine Fisheries Service (“the Agency“) set 2002 fishing limits for four species of Pacific groundfish that are commonly sold as “red snapper.” Appellant Natural Resources Defense Council (“NRDC“), an environmental organization, brought suit in federal district court challenging the four limits as violating the Magnuson-Stevens Fishery Conservation and Management Act (“the Magnuson Act” or “the Act“),
I. Background
A. The National Marine Fisheries Service, the Magnuson Act, Section 1854 and the National Standards Guidelines
Congress enacted the Magnuson Act to “conserve and manage the fishery resources found off the coasts of the United
The Act, as amended by the SFA, contains a provision the proper interpretation of which is the main subject of this appeal. Section 1854 of the Act provides in part that when any species is found to be overfished, the Agency must approve a rebuilding plan that:
(A) specif[ies] a time period for ending overfishing and rebuilding the fishery that shall—
(i) be as short as possible, taking into account the status and biology of any overfished stock of fish, the needs of fishing communities, and the interaction of the overfished stock of fish within the marine ecosystem; and
(ii) not exceed 10 years, except in cases where the biology of the stock of fish, [or] other environmental conditions ... dictate otherwise.
The Act also sets forth a series of “national standards” with which any rebuilding plans must be “consistent,” and provides for the establishment of National Standards Guidelines (“NSGs“) that must be “based on the national standards” for use in “assist[ing] in the development of fishery management plans.”
There is some ambiguity to
Seeking to clarify the proper interpretation of
[f]or stocks that will take more than 10 years to rebuild, the guidelines [adopted] impose an outside limit that is objective, measurable, and linked to the biology of the particular species.... The guidelines strike a balance between the Congressional directive to rebuild stocks as quickly as possible, and the desire ... to minimize adverse economic effects on fishing communities. For stocks that cannot be rebuilt within 10 years, the guideline allows flexibility in setting the rebuilding schedule beyond the no-fishing mortality period, but places a reasonable, species-specific cap on that flexibility by limiting the extension to one mean generation time.
63 Fed.Reg. 24,217 (May 1, 1998).
B. The 2001 and 2002 Limits for Darkblotched Rockfish
The Pacific Coast Groundfish Fishery is one of the fisheries the Agency oversees, covering the bottom-feeding fish species dwelling in the waters off the coasts of California, Oregon and Washington. In 2000, the Agency assessed the status of one species of Pacific groundfish within the fishery—darkblotched rockfish. It found that the species was at 22% of its unfished population level (its predicted level absent any fishing), and therefore concluded that the species was “overfished” within the meaning of the Act. 66 Fed.Reg. 2,347, 2349-50 (Jan. 11, 2001). The Agency further concluded that the species could be rebuilt in 10 years or less, triggering
In 2001, the Agency updated its assessment of darkblotched rockfish and concluded that it had significantly overestimated the health of the species. The Agency now estimated that the species was almost twice as depleted as previously thought—it was at only 12% of its unfished population level. In the Agency‘s calculations, rebuilding therefore could not be accomplished within 10 years; the minimum period for rebuilding was now 14 years.
This increased rebuilding time meant, by necessity, that the rebuilding plan was no longer limited by
C. The Agency‘s 2002 Specifications for Three Other Groundfish Species
The Agency also set 2002 quotas for three other overfished groundfish species—bocaccio, cowcod and canary rockfish—that were identical to the levels set in 2001, despite evidence that fishing of these overfished species in the prior two years had been significantly higher than that allowed by the previous year‘s quotas. The Agency reasoned that because it did not have newly available data as to the status of these species (owing to its policy of conducting stock assessments every three years), its response to the evidence of overfishing would be to put in place interim measures (such as establishing no-fishing zones in certain areas), and then to set new quotas once the next assessment was completed.
NRDC charged that the Agency‘s failure to adjust the quotas violated the Act, APA and NEPA. The district court also granted the Agency summary judgment on these claims. 280 F.Supp.2d at 1017-1018.
II. Standard of Review
We review de novo the district court‘s grant of summary judgment. Turtle Island Restoration Network v. Nat‘l Marine Fisheries Serv., 340 F.3d 969, 973 (9th Cir.2003). “De novo review of a district court‘s judgment concerning a decision of an administrative agency means the court views the case from the same position as the district court.” Id.
The Administrative Procedure Act dictates that we should “hold unlawful and set aside agency action ... [that is] arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.”
We should not defer to an agency‘s interpretation of a statute if Congress’ intent can be clearly ascertained through analysis of the language, purpose and structure of the statute. Chevron, U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 842-43, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). If, however, Congress’ intent is not clear, and if “Congress delegated authority to the agency generally to make rules carrying the force of law, and[] the agency interpretation claiming deference was promulgated in the exercise of that authority,” United States v. Mead Corp., 533 U.S. 218, 226-27, 121 S.Ct. 2164, 150 L.Ed.2d 292 (2001), then we must defer to the agency‘s construction of the statute so long as “the agency‘s answer is based on a permissible construction of the statute.” Chevron, 467 U.S. at 843. If the Mead requirements for Chevron deference are not met, we review the agency‘s interpretation under the Skidmore standard, whereby the interpretation is “entitled not to deference but to a lesser ‘respect’ based on the persuasiveness of the agency decision.” Wilderness Soc‘y v. U.S. Fish & Wildlife Serv., 353 F.3d 1051, 1067 (9th Cir.2003);
III. Discussion
A. The 2002 Darkblotched Rockfish Quota
1. Chevron Deference
The Agency arrived at its increased 2002 darkblotched rockfish quota by applying its interpretation of
First, NRDC argues that Congress’ intent in this section of the Act is clear, thereby precluding the need for any deference to the Agency‘s interpretation of the statute. We disagree. As we noted above,
NRDC next argues that because the Act explicitly provides that NSGs do not have the force of law, Chevron deference is not appropriate. See Mead, 533 U.S. at 226-27 (holding Chevron deference to be appropriate only if “Congress delegated authority to the agency generally to make rules carrying the force of law, and [] the agency interpretation claiming deference was promulgated in the exercise of that authority“). The Agency responds that although the 1998 NSG does not have the force of law, the 2002 darkblotched rockfish quota itself—which is what is actually being challenged here—is a binding regulation that does have the force of law, requiring Chevron deference, and that to hold otherwise would mean punishing the Agency for taking the additional step of setting out the interpretation in an NSG.
We need not resolve this question here, because even under the Chevron standard of review, the 2002 quota was based on an impermissible construction of the Act. We therefore will assume that Chevron review is appropriate even as to the 1998 NSG‘s statutory interpretation that was applied
2. The 2002 Quota Is Based on an Impermissible Construction of the Act
Under Chevron, we must determine whether “the agency‘s [quota] is based on a permissible construction of the statute.” Chevron, 467 U.S. at 843. Chevron review is also described as determining whether the quota reflects “a reasonable interpretation” of the statute. Id. at 844.
The interpretation of
The purpose of the Act is clearly to give conservation of fisheries priority over short-term economic interests. See Daley, 209 F.3d at 753 (“[U]nder the [Act], the [Agency] must give priority to conservation measures.“). The Act sets this priority in part because the longer-term economic interests of fishing communities are aligned with the conservation goals set forth in the Act. Without immediate efforts at rebuilding depleted fisheries, the very long-term survival of those fishing communities is in doubt. See id. This background provides helpful context for interpreting
Section 1854 contains two significant mandates that constrain the Agency‘s options in adopting a rebuilding plan for an
We have noted some ambiguity in subsection (i)‘s mandate to rebuild a species in “as short [a time period] as possible” while giving consideration to “the needs of fishing communities.” The natural reading of this language, however, is that Congress intended to ensure that overfished species were rebuilt as quickly as possible, but wanted to leave some leeway to avoid disastrous short-term consequences for fishing communities. To use an example relevant here, even if a fishing community is actively seeking not to fish for a certain species, it will inevitably catch some of the overfished species in the process of fishing for other, more plentiful fish—what is known as “bycatch.” Because almost no groundfish that are caught as bycatch survive even if they are thrown back into the ocean, an absolute ban on catching any of a species of groundfish could mean a total moratorium on all fishing in the parts of the fishery containing groundfish, with obvious adverse consequences for fishing communities. Section 1854(e)(4)(i), then, allows the Agency to set limited quotas that would account for the short-term needs of fishing communities (for example, to allow for some fishing of plentiful species despite the inevitability of bycatch), even though this would mean that the rebuilding period would take longer than it would under a total fishing ban.7
Reading subsection (i) in this light, it is apparent that Congress intended subsection (ii) as a limit on the Agency‘s discretion. The Agency may consider the short-term economic needs of fishing communities in establishing rebuilding periods, but may not use those needs to go beyond the 10-year cap set by subsection (ii). To breach this cap, the Agency may only consider circumstances that “dictate” doing so. One such circumstance, albeit not relevant here, would be an international agreement. Another that is relevant is “the biology of the stock of fish“—that is, when the current number of fish in the fishery and the amount of time required for the species to regenerate make it impossible to rebuild the stock within 10 years, even with a total moratorium on fishing. In such cases, subsection (ii) recognizes that the presumptive 10-year cap cannot apply. That said, it is manifestly unreasonable to conclude, as the Agency apparently has, that Congress intended in such circumstances to relieve the Agency of its continuing obligation to rebuild the species in a time frame that is “as short as possible.”
The 2002 quota was not based on a permissible construction of the Act, because the Agency altered dramatically the balance between the needs of a species and of fishing communities with no statutorily grounded justification.8 NRDC ar-
The 2002 darkblotched rockfish quota is patently unreasonable, however, and reflects no such measured proportionality. Freed from the 10-year cap because of the biology of the rockfish (its long regeneration time and its dire condition), the Agency simply applied the 1998 NSG‘s formulaic approach and increased the annual take. In 2001, the Agency set a quota of 130 million tons of darkblotched rockfish because it believed the species had been reduced to only 22% of its unfished population. When its revised estimate revealed that the species was doing much worse, the Agency expanded the fishing of the species from 130 million tons to 168 million tons, a 29% increase. Whatever the outer limits of the range of permissible constructions of the Act, we are certain that what lies beyond them is an interpretation allowing the Agency, upon discovering that a species is in significantly worse shape than previously thought, to increase dramatically the fishing pressure on that species. Increasing the annual take in these circumstances is simply incompatible with making the rebuilding period as short as possible.
We are not prepared to accept NRDC‘s argument that once the 10-year cap is lifted because the biology of the fish dictates it, the Act in turn dictates that the Agency can no longer consider the short-term economic needs of fishing communities at all. Such an argument, although plausible, does not appear to give due consideration to the continuing operation of subsection (i)‘s command to take the needs of fishing communities into account. But neither are we prepared to accept the Agency‘s interpretation, which would ignore the primary mandate of subsection (i)—that the rebuilding period be “as short as possible.” At least as applied here, the Agency‘s interpretation not only increased the fishing take by almost 30% but extended the maximum rebuilding period from less than 10 years to 47 years. Plainly, the Act does not contemplate that the Agency grant the least protection to the fish species in the worst shape.
The arguments of the Agency and Intervenors regarding potentially dire consequences for fishing communities seem persuasive at all only because they assume that the sole alternative is NRDC‘s strict moratorium. The district court made this same flawed assumption:
Faced with a choice between an interpretation of the [Act] that requires a moratorium on harvesting of fish species that take more than ten years to regenerate naturally, and an interpretation that permits limited harvesting over the course of a longer rebuilding period, [the Agency] selected ... the latter interpretation. In light of [the Act‘s] dual con-
servationist and commercial objectives, an interpretation that accommodates both objectives, rather than selecting one to the exclusion of the other, is permissible.
280 F.Supp.2d at 1014. The Agency was “faced with [this] choice” only because it proposed these two extreme interpretations, and no others.9
Our rejection of the Agency‘s interpretation is compelled by the language of
B. The 2002 Limits for Three Other Groundfish Species Do Not Violate the APA or the NEPA
NRDC additionally argues that the 2002 levels for three other groundfish species violate the APA and the NEPA. The Administrative Procedure Act requires that courts determine if agency actions are “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.”
Bocaccio, cowcod and canary rockfish are three additional Pacific groundfish species that have been found to be overfished. When it set 2002 levels for these fish, the Agency simply carried over the levels from the previous year. The Agency concluded that there was no new information on these stocks to warrant changing the quotas. NRDC argues that because the Agency was aware that the actual amount of these fish that had been caught in previous years far exceeded the set quotas, the Agency should have reduced the 2002 quotas to compensate—and that its failure to do so was arbitrary and capricious in violation of the APA, and reflected a failure to take the NEPA‘s “hard look.” The Agency argues that over- or under-harvests for a single year are accounted for through alternate mechanisms. Assessments are conducted only every three years because of budgetary constraints, so quota revisions likewise take place every three years. In the meantime, however, additional “management measures” are undertaken, such as restrictions on fishing in specific areas within the fishery, or on fishing during certain parts of the year when there is a greater chance of bycatch.
The district court concluded that:
[The Agency‘s] decision to maintain harvest limits at their 2001 levels was reasonably connected to—indeed, was dictated by—the agency‘s policy of re-setting harvest limits only after conducting a stock reassessment. In turn, that policy, which is a product of limited resources available to the agency to manage eighty-two different fish species, was neither an abuse of discretion nor contrary to law.... [The Court also] finds that the EA‘s analysis was adequate to permit informed decision-making under the circumstances.
We agree. Even if there are other reasonable approaches to dealing with the problem of exceeding quotas, we cannot say that the Agency‘s actions were “arbitrary, capricious,” “contrary to law” or that they did not reflect a sufficiently “hard look.” We therefore affirm the district court on these claims.
IV. Conclusion
We reverse the district court‘s holding that the Agency did not violate the Magnuson Act in setting its 2002 fishing quota for darkblotched rockfish. We remand to the district court for any further proceedings consistent with this opinion. See Ocean Advocates v. United States Army Corps of Engineers, 402 F.3d 846, 871 (9th Cir.2005) (remanding to district court to consider remedy in first instance).
We affirm the district court‘s holding as to the 2002 limits for the other three species of groundfish. The parties shall bear their own costs.
AFFIRMED in part, REVERSED in part and REMANDED.
