PUBLIC UTILITY COMMISSIONER OF OREGON, Pacific Power & Light
Company, Portland General Electric Company, and CP
National Corporation, Petitioners-Appellants,
v.
BONNEVILLE POWER ADMINISTRATION, and Peter T. Johnson,
Administrator, Bonneville Power Administration,
Respondents-Appellees,
and
Aluminum Company of America, et al., Intervenors.
Nos. 84-3722, 84-7185.
United States Court of Appeals,
Ninth Circuit.
Argued and Submitted Sept. 14, 1984.
Decided Aug. 1, 1985.
As Amended Sept. 5, 1985.
Marcus Wood, Guy A. Randles, Pamela J. Jacklin, Stoel, Rives, Boley, Fraser & Wyse, Portland, Or., Paul A. Graham, Asst. Atty. Gen., Salem, Or., Alvin Alexanderson, Portland General Electric Co., Portland, Or., for petitioners-appellants.
Charles H. Turner, U.S. Atty., Jack G. Collins, Thomas C. Lee, David J. Adler, John A. Cameron, Jr., Portland, Or., M. Laurence Popofsky, Peter A. Wald, Dian M. Grueneich, Heller, Ehrman, White & McAuliffe, San Francisco, Cal., for respondents-appellees.
Appeal from the United States District Court for the District of Oregon.
Before KENNEDY, ALARCON, and FERGUSON, Circuit Judges.
KENNEDY, Circuit Judge:
The principal issue in these consolidated cases is whether, under the judicial review provisions of the Pacific Northwest Electric Power Planning and Conservation Act, 16 U.S.C. Sec. 839, et seq. (1982) (the Act), jurisdiction of suits which challenge ongoing agency proceedings on constitutional grounds is solely in the district court, concurrently in the district court and the court of appeals, or exclusively in the court of appeals. A secondary issue is whether we should exercise our own jurisdiction under the All Writs Act, 28 U.S.C. Sec. 1651(a) (1982), to review alleged bias in agency proceedings which have not yet concluded. We conclude that section 9(e)(5) of the Act, 16 U.S.C. Sec. 839f(e)(5) (1982), coupled with the All Writs Act, affords this court exclusive jurisdiction to determine the claims made by petitioners, and that we will not exercise our jurisdiction to do so pending final agency action.
Petitioners, the Public Utility Commissioner of Oregon (Oregon PUC), and three investor-owned utilities (IOU's) sued the Bonneville Power Administration (BPA) in the district court, challenging the constitutionality of ongoing agency proceedings. Petitioners alleged proceedings to revise certain rate formulas were initiated by BPA Administrator Peter Johnson with an unalterably closed mind as to the outcome, and that his participation in the proceedings violated their Fifth Amendment right to due process. The district court dismissed the action for lack of subject matter jurisdiction. Public Utility Commissioner of Oregon v. Bonneville Power Administration,
We affirm the dismissal of the suit in the district court. As to the action commenced in this court, we lack subject matter jurisdiction under the Act as there is no final agency action, and decline to review petitioner's challenge by way of mandamus under the All Writs Act, 28 U.S.C. Sec. 1651(a).
To understand the issues posed by the parties in this case, a brief look at the operation of the Act and the administrative proceedings surrounding this litigation is necessary. One of the goals of the Act is to ensure that residential consumers served by Northwest IOU's have wholesale rate parity with residential consumers served by publicly owned utilities and public cooperatives, BPA's preference customers. Parity is to be achieved through Residential Purchase and Sale Agreements between BPA and IOU's. Under a residential agreement, IOU's exchange their own higher priced power at its "average system cost" (ASC) for an equivalent amount of lower cost BPA power. The agreement involves bookkeeping entries only; BPA makes a payment to the IOU for the difference between the IOU's ASC and BPA's preference rate. The Act requires the IOU's to pass the savings on to their customers. 16 U.S.C. Sec. 839c(c)(3) (1982).
BPA is to recoup its losses resulting from residential agreements, i.e., the price differential between the IOU's ASC and BPA's preference rate, primarily by charging higher rates to its direct service industrial customers (DSI's) until July 1, 1985. After that time, other BPA customers may bear a greater portion of the costs of the exchange. See 16 U.S.C. Sec. 839e(c)(1)(B); 16 U.S.C. Sec. 839e(c)(1)(A) (1982). The DSI's have a particularly strong interest in how the IOU's ASC was computed for the contract year July 1, 1984 to June 30, 1985, since the rates they pay for power during that contract year establish a floor for all future rates paid by DSI's. See 16 U.S.C. Sec. 839e(c)(2) (1982).
The Act provides that the ASC shall be determined on the basis of a methodology developed by the BPA Administrator in consultation with the Pacific Northwest Electric Power and Conservation Planning Council, BPA's customers, and regional state regulatory bodies. 16 U.S.C. Sec. 839c(c)(7) (1982). Before the ASC methodology is implemented, it must be approved and confirmed by the Federal Energy Regulatory Commission (FERC). See 18 C.F.R. Sec. 35.13(a) (1984).
BPA first adopted a methodology for computing the ASC in August 1981. After interim approval and formal administrative proceedings, FERC gave final approval to the methodology in September 1983. At the request of the DSI's, BPA initiated a new ASC consultation in October 1983. The DSI's and BPA believed the then current ASC methodology failed to exclude IOU costs required to be excluded by the Act, 16 U.S.C. Sec. 839c(c)(7), resulting in DSI rates that were unlawfully high. After providing for considerable public participation, BPA published a proposed ASC methodology. On February 3, 1984, while public consultation sessions were still being conducted, petitioners filed suit in the district court alleging that Johnson's participation in the ASC methodology proceedings denied them due process because Johnson was "absolutely committed" to lowering the ASC calculation, thereby reducing payments to exchanging utilities under the residential agreements. Petitioners sought to have Johnson and his subordinates enjoined from participating in the ASC methodology consultation and asked the district court to delegate decisional authority to an independent hearing officer.
On June 5, 1984, while this litigation was pending, BPA adopted and submitted the revised ASC methodology to FERC with a request for interim approval by July 1, 1984. Although the Commission decided not to grant interim approval, it issued a final order approving and implementing the revised ASC methodology as submitted by BPA on October 1, 1984. These events have rendered moot petitioner's original request for injunctive relief. However, since BPA will undertake to make further revisions to the ASC methodology, this interlocutory challenge to allegedly biased proceedings is capable of repetition, yet evading review. See Weinstein v. Bradford,
The district court concluded jurisdiction to consider petitioner's interlocutory challenge to BPA's rulemaking proceedings lies with the court of appeals, not the district court. The court did not squarely hold that the Ninth Circuit had jurisdiction under the Act's jurisdictional provision, but only that the remedy, if any, is in the Ninth Circuit.
Section 9(e)(5) of the Act, which provides for judicial review, states:
Suits to challenge the constitutionality of this chapter, or any action thereunder, final actions and decisions taken pursuant to this chapter by the Administrator or the [Northwest Power Planning] Council, or the implementation of such final actions ... shall be filed in the United States court of appeals for the region. Such suits shall be filed within ninety days of the time of such action or decision is deemed final.... Suits challenging any other actions under this chapter shall be filed in the appropriate court.
16 U.S.C. Sec. 839f(e)(5).
In two previous cases, we have held that suits to challenge final actions must, under the Act, be brought in the court of appeals. Forelaws on Board v. Johnson,
While it would seem that petitioners seek to draw the scope of the term "action" too narrowly, see Federal Trade Commission v. Standard Oil Co. of California,
The plaintiffs in TRAC filed a petition alleging unreasonable delay and seeking a writ of mandamus to compel action by the Federal Communications Commission. The plaintiffs in ALPA brought an action against the Civil Aeronautics Board complaining of unreasonably delayed agency action and bias on the part of CAB's Chairman in ongoing administrative proceedings. Addressing the jurisdictional issue raised by those companion cases, the court held that the claims of unreasonable delay and bias were subject to the exclusive review of the court of appeals because the resolution of those claims could affect the court's future jurisdiction over final agency action. TRAC,
In the case before us, section 9(e)(5) does not expressly state that jurisdiction in the court of appeals is exclusive, as do the statutory provisions governing review of FCC and CAB orders. This distinction, however, does not alter our conclusion that the District of Columbia Circuit cases are on point here. As the disposition of petitioners' claim of bias could affect our future statutory review authority, we have exclusive jurisdiction to consider it. As the TRAC court noted,
The Administrative Procedure Act provides additional support for our conclusion that special statutory schemes of review, such as section 9(e)(5) of the Act, are the sole means of obtaining judicial review for those classes of claims covered by the statute. The APA provides that review must be had pursuant to "the special statutory review proceeding relevant to the subject matter in a court specified by statute," in this case the court of appeals, unless such review is inadequate. 5 U.S.C. Sec. 703 (1982). There is no reason to believe appellate review will be inadequate. See FCC v. ITT World Communications, Inc.,
We further reject petitioners' contention that the Administrative Procedure Act provides a separate basis for district court jurisdiction. Petitioners argue that the district court retains jurisdiction to consider the statutory APA claim, even if it lacks jurisdiction over their constitutional claim. Petitioners' only explanation of the so-called statutory claim is that "[t]he APA guarantees plaintiffs a fundamentally fair rulemaking process. 5 U.S.C. Sec. 551 et seq.". This argument, though, is in essence the same as petitioners' constitutional one, namely, that BPA's administrative proceedings deprive them of due process. Petitioners may not avoid section 9(e)(5)'s mandate of exclusive Ninth Circuit jurisdiction by alleging a separate statutory APA claim. It is now settled that the APA does not provide an independent fount of jurisdiction to review agency action. Califano v. Sanders,
Sound policy considerations further support our conclusion that by assigning jurisdiction over constitutional challenges to the court of appeals, section 9(e)(5) preempts district court jurisdiction under the general federal question statute, 28 U.S.C. Sec. 1331. The Supreme Court recently noted the strong preference for reviewing all preliminary or ancillary issues in a proceeding in the forum provided for the final agency order or action. Florida Power & Light Co. v. Lorion, --- U.S. ----, ----,
Petitioners' original suit in this court requires us to address the question left open in Central Lincoln II,
On its face, section 9(e)(5) makes reference to suits challenging the constitutionality of the Northwest Power Act or any "action" thereunder, suits challenging final actions and decisions taken under the Act by BPA's Administrator or the Northwest Power Planning Council, and suits challenging the implementation of final actions. The jurisdictional provision is clear in providing the court of appeals with original jurisdiction to review only "final" BPA actions when the challenge is on other than constitutional grounds. When the challenge is on constitutional grounds, the statute is ambiguous as to whether the action must be final to warrant original review by this court. Consequently, we interpret the statute according to probable congressional purpose. See Forelaws on Board, supra,
Although the provision for review of a constitutional challenge to "any action thereunder" in the first clause of section 9(e)(5) seemingly confers broad jurisdiction on the courts of appeals, this phrase takes on a narrower meaning when viewed in the context of section 9(e) in its entirety. First, the second sentence of section 9(e)(5), which states "[s]uch suits shall be filed within ninety days of the time such action or decision is deemed final ..." (emphasis added) creates a ninety-day statute of limitations for suits specified in the first sentence. By beginning with the words "such suits," the statute of limitations provision necessarily refers back to all suits; the finality requirement of this provision, in our view, refers back to all suits as well. We conclude that Congress did not intend to split this provision, applying the finality requirement to some actions and not to others, depending on the substantive infirmity alleged. Were the finality requirement not to apply to constitutional challenges such as the instant one, it is unclear when the ninety-day statute of limitations would commence. Without clear direction from Congress, we refuse to construe section 9(e)(5) in a manner that would create such confusion and uncertainty. See Forelaws on Board v. Johnson,
The scheme of the Act provides additional support for our conclusion that finality is required. Congress created a specific administrative process for development of the ASC methodology, ensuring that administrative review precedes judicial review. The process involves development of a proposed methodology by the BPA Administrator in consultation with the Pacific Northwest Electric Power and Conservation Planning Council, BPA's customers, and regional state regulatory bodies, and then confirmation and approval by FERC. 16 U.S.C. Sec. 839c(c)(7). Once these steps are taken, a final action subject to judicial review has occurred.
The absence of an express finality prerequisite in statutes providing for appellate review of administrative actions, such as the Act, does not prevent the implication of such a requirement. Courts commonly attribute a finality requirement to statutes that simply provide for review of administrative orders and actions in order to avoid the disruption, delay, and piecemeal review that accompany interference with pending administrative proceedings. Bell v. New Jersey,
Petitioners' argument that finality should not be required where the challenge is on constitutional grounds because the statutory review procedure in such cases is inadequate is unpersuasive. Although FERC will not review the conduct of the BPA's Administrator, 49 Fed.Reg. 39,293 (1984), it does, of course, review the ASC methodology itself. If FERC fails to correct any defects in the methodology, redress is available in the court of appeals on that ground. Further, petitioners may challenge the action adopting the methodology on the ground that it is defective for reasons of disqualification of the BPA Administrator. See Association of National Advertisers, Inc. v. FTC,
If, upon review of the final action approving and implementing the ASC methodology, and in the context of a constitutional challenge to the validity of the agency proceeding as a whole, the agency record is insufficient, we can remand the record to the agency for further development, appoint a special master under 28 U.S.C. Sec. 2347(b)(3), or accommodate any additional discovery needs. ITT World Communications,
Our decision is entirely consistent with the general presumption in favor of postponing review until the conclusion of agency proceedings. This presumption is based on the general doctrine of ripeness, Friends of Hop Marketing Order v. Block,
Our conclusion that action taken by an agency, even though it implicates constitutional issues, must be final agency action before it is reviewable in the court of appeals does not end our inquiry, for we must determine whether special circumstances in the case warrant exception. Though there is a possibility that in an extreme case an action is challengeable by suit on constitutional grounds before it is final, these cases no doubt would be reviewable by extraordinary writ with jurisdiction predicated on the All Writs Act, 28 U.S.C. Sec. 1651. The jurisdictional basis for interlocutory review of any nonfinal BPA action is our inherent power of mandamus to preserve prospective jurisdiction. As a consequence, such jurisdiction would not lie in the district court, but in the court of appeals, the court with ultimate authority to review final agency action. TRAC,
The preemptory writ of mandamus has traditionally been used in federal courts to review nonfinal district court orders and is used only in exceptional circumstances. Kerr v. United States District Court,
As petitioners have failed to demonstrate they face any irreparable injury that is not correctable on review of final BPA action, we decline to exercise jurisdiction under the All Writs Act over their interlocutory claim of bias. See Wisconsin Gas Co. v. Federal Energy Regulatory Commission,
The judgment of the district court is AFFIRMED. The action for declaratory and injunctive relief and the petition for mandate filed in this court are DISMISSED.
