WISCONSIN POWER & LIGHT COMPANY, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent. State of Wisconsin and United States Department of the Interior, Intervenors.
No. 03-1026.
United States Court of Appeals, District of Columbia Circuit.
Argued Feb. 23, 2004. Decided April 6, 2004.
363 F.3d 453
Beth G. Pacella, Attorney, Federal Energy Regulatory Commission, argued the cause for respondent. With her on the brief were Cynthia A. Marlette, General Counsel, and Dennis Lane, Solicitor.
Ronald M. Spritzer, Attorney, U.S. Department of Justice, argued the cause for intervenor United States Department of the Interior. With him on the brief was Andrew C. Mergen, Attorney. Mary A. Thurston, Attorney, entered an appearance.
Peggy A. Lautenschlager, Attorney General, Attorney General‘s Office of the State of Wisconsin, and Philip Peterson, Assistant Attorney General, were on the brief for intervenor State of Wisconsin.
Before: RANDOLPH, ROGERS and TATEL, Circuit Judges.
Opinion for the Court filed by Circuit Judge ROGERS.
Concurring opinion filed by Circuit Judge RANDOLPH.
ROGERS, Circuit Judge:
In exercising judicial review under
I.
The Prairie du Sac Hydroelectric Project (“the project“) is a twenty-nine megawatt dam located on the Wisconsin River in south-central Wisconsin about ninety miles upstream of the Mississippi River. See Wisconsin Power & Light Co., 99 FERC ¶ 62,225 at 64,514 ¶ 1, 2002 WL 1393969 (2002) (“Initial Order“). It was constructed and initially operated pursuant to a fifty year federal permit, which expired in 1961. See Wisconsin Power & Light Co., 52 FERC ¶ 62,294, 1990 WL 318178 (1990), reh‘g denied, 55 FERC ¶ 61,169, 1991 WL 265755 (1991). After the Commission determined in 1990 that the project must be licensed, see id., WP&L applied for an original license to continue to operate and maintain the project. Notice of the application was published on August 11, 1994, and on December 31, 1996, notice issued that the application was ready for environmental analysis. See Initial Order at 64,514 ¶ 2. In 1997, the Secretary of the Interior, for the Fish and Wildlife Service, and in collaboration with the Wisconsin Department of Natural Resources (“the Department“), submitted recommended license conditions pursuant to
On June 27, 2002, the Commission granted WP&L a thirty year license for the project subject to conditions. The license included most
The Secretary and the Department requested rehearing, citing new information
WP&L sought rehearing of the Amended License Order on the ground that the Commission inadequately explained the reversal of its Initial Order. In the request for rehearing, WP&L argued that there was no reasoned basis for the Commission‘s imposition of additional conditions in the amended license, and that no record evidence demonstrated the need for fish-protective devices. Even if circumstances had changed since the Commission completed its environmental assessment, WP&L argued, the Commission had erred by failing to consider cost and technical issues in amending the license. The Commission denied rehearing because “[t]he Commission has no authority to amend or reject a Section 18 prescription that is timely filed.” Order Denying Rehearing, 101 FERC ¶ 61,338, 2002 WL 31974251 (2002) (“Rehearing Order“).
WP&L petitions for review of the Commission‘s orders on the ground that the Secretary‘s prescription was arbitrary and capricious because the record fails to show that fish entrainment at the project has an adverse effect on fishery resources, that the prescribed entrainment protective devices are technically feasible, would be effective, and survive a cost-benefit analysis, and that the fish species the Secretary seeks to protect would use or benefit from the prescribed upstream fish passage facilities.
II.
As a threshold matter, the Secretary challenges the jurisdiction of the court to consider WP&L‘s challenge to the Secretary‘s fishways prescription. Because WP&L, according to the Secretary, did not argue in its request for rehearing by the Commission that the Secretary‘s
In Bangor Hydro-Electric Company v. FERC, 78 F.3d 659 (D.C. Cir. 1996), the court held that
Under the interpretation of the statutory scheme adopted in Bangor, 78 F.3d at 662-63, where a party seeks to challenge the Secretary‘s
Accordingly, because
III.
In contending that the Secretary‘s prescription for upstream fish passage was arbitrary and capricious, WP&L focuses on the Secretary‘s 1997 statement that, as regards turbine mortality of fish, “biological significance is not the primary issue,” but rather that “project operation results in the mortality of important fishery resources, which are the property of the State of Wisconsin.” WP&L contends that the record lacks substantial evidence to support the proposition that fishery resources have economic value, and implicitly maintains that any prescription based on an unsupported rationale is arbitrary and capricious. But WP&L confuses the rationale provided by the Secretary in 1997 for recommendations to the Commission pursuant to
Moreover, that the protection and conservation of fishery resources underlies the Secretary‘s
WP&L contends for the first time on appeal, however, that the Secretary is bound by a regulation of the Commission to the rationale and evidence provided for the prescription in her initial comments in 1997. See
WP&L also contends that substantial evidence is lacking to support the Secretary‘s prescription because the administrative record cites to studies that were not formally submitted to the Commission and in some instances were not specifically identified. This contention fails for two reasons: WP&L relies on a misunderstanding of the information on which the Secretary may properly rely and
The record before the Commission meets this standard because it was appropriate, given the paucity of site-specific information as a consequence of WP&L‘s resistance to studies at the project, for the Secretary to cite relevant, publicly available studies, which need not have been introduced into the record. Insofar as the Secretary mentioned studies not specifically cited for given propositions but that were included in attached bibliographies, the studies that were cited with particularity constitute substantial evidence sufficient to support the Secretary‘s prescription. For example, the Commission‘s final environmental assessment established that turbine mortality rates at the project could range up to twenty percent, therefore showing the need for entrainment protection devices; the report of WP&L‘s consultant indicated that several entrainment protection devices may be effective at the project and warrant further study; a Department report demonstrated that enabling upstream passage around the dam would help to reestablish the threatened paddlefish to its traditional habitat on the upper reaches of the Wisconsin River; a 1932 study proved that operation of the project‘s navigation lock facilitated upstream fish passage; and the Secretary‘s request for rehearing cited research demonstrating that new prototype fishways had successfully enabled passage of fish species found at the project. In sum, the Secretary‘s reference to other studies for which no detailed footnotes were provided served merely to bolster, and does not detract from, the independent sufficiency of substantial evidence that was properly cited or introduced into the record.
Secondly, in contending that there is not substantial evidence to show that fish entrainment at the project has an adverse effect on fishery resources, WP&L ignores record evidence, including that in its license application. An analysis provided by the Department to WP&L in response to a draft of the license application indicated that thirty-four percent of walleye tagged above the dam were recovered below it. Because the dam is a complete barrier to upstream fish movement, the Department stated that “those fish are forever lost to the [above-dam] lake fishery.” In addition, the Commission‘s environmental assessment of the project esti-
WP&L nonetheless maintains that the record permits no conclusions about entrainment and turbine mortality at the project because only one study, which did not directly evaluate entrainment, was done at the project. The record shows that further studies at the project were not completed because WP&L rescinded its proposal to do so, despite its consultant‘s acknowledgment that such studies were “justified.” The applicable standard of review does not demand perfect information, but only requires substantial evidence, see
WP&L additionally contends that record evidence fails to show that the Secretary‘s downstream passage prescriptions are technically feasible and effective. The Commission‘s environmental assessment cast doubt on certain entrainment protective devices, such as a mesh net. However, the Secretary could reasonably rely on the more favorable assessment contained in WP&L‘s application as well as recent research at similar facilities. Given conflicting views, the Secretary had “discretion to rely on the reasonable opinions of [her] own qualified experts even if, as an original matter, a court might find contrary views more persuasive.” Marsh v. Oregon Natural Resources Council, 490 U.S. 360, 378, 109 S.Ct. 1851, 1861-62, 104 L.Ed.2d 377 (1989). For instance, the Secretary reasonably credited WP&L‘s license application, which, based on its consultant‘s detailed research and analysis, stated that “WP&L believes the net would protect a large percentage of fish now susceptible to entrainment.” The Secretary also noted a 2001 study demonstrating the effectiveness of other devices at preventing the entrainment of lake sturgeon, one of the species of concern at the project. From this evidence the Secretary could reasonably conclude that the downstream passage prescriptions were feasible and would be effective.
With regard to the upstream passage prescription, WP&L similarly identifies record material evidencing doubts about whether the prescribed fishways are technically feasible and would be effective. The Commission‘s environmental assessment concluded in 2000 that “based on the analyses done to date, ... there is no technically feasible means to provide upstream fish passage at Prairie du Sac dam, particularly for the primary species of concern.” However, the Secretary‘s prescription relied on evidence, which was not available at the time of the Commission‘s environmental assessment, that refuted the Commission‘s conclusion that a fishway would not be effective for target species like lake sturgeon. Moreover, a 1932 study, which the Commission failed to credit, contradicted the Commission‘s hypotheses; the study showed that a then-operable, preexisting navigation lock at the project permitted thousands of fish from a wide range of species, including sturgeon, to bypass the dam. WP&L‘s license application also included a 1993 study that concluded that threatened “[p]addlefish would probably enter the Prairie du Sac dam lock if it were operational.” Based on such substantial evidence, the Secretary
Lastly, WP&L contends that prescription of entrainment protective devices potentially requiring expenditure of a “huge sum” for a “questionable return” constitutes arbitrary and capricious action by the Secretary. In its view, “the cost of any downstream fish protection facilities would far outweigh any benefit to fish or fisheries in the Wisconsin River.” Petitioner‘s Br. 20. Such a prescription, WP&L maintains, cannot be “consistent with law” or “reasonably related to [its] goal.” Bangor, 78 F.3d at 663 (citing Escondido, 466 U.S. at 778 & n. 20, 104 S.Ct. at 2113 n. 20). However, the Secretary has not prescribed particular fishway devices for the project, and hence no such costs have been determined. Any challenge that WP&L might have as it pertains to potential costs is therefore not ripe. See Metzenbaum v. FERC, 675 F.2d 1282, 1289-90 (D.C. Cir. 1982).
Accordingly, we deny the petition for review.
RANDOLPH, Circuit Judge, concurring:
Bangor Hydro-Electric Co. v. FERC, 78 F.3d 659 (D.C. Cir. 1996), drew an analogy to Escondido Mutual Water Co. v. La Jolla Band of Mission Indians, 466 U.S. 765, 104 S.Ct. 2105, 80 L.Ed.2d 753 (1984), and held (1) that in licensing cases such as this, the Federal Energy Regulatory Commission must accept conditions the Department of the Interior prescribes, and (2) that Interior‘s conditions must be supported by substantial evidence. 78 F.3d at 662-63. This odd division of authority raises the question whether Interior can develop all of its evidence internally, without affording the applicant some sort of hearing. See Henry J. Friendly, Some Kind of Hearing, 123 U. PA. L. REV. 1267 (1975). So far as we can tell, Interior offered the petitioner here no opportunity for a hearing. I nonetheless join the court‘s opinion because the petitioner did not raise, before us or the Commission, any objection to Interior‘s procedure for developing its prescription.
