Justia Government & Administrative Law Opinion Summaries

Articles Posted in U.S. D.C. Circuit Court of Appeals
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Pursuant to its authority to regulate "unfair and deceptive" practices in the airline industry, the Department of Transportation issued a final rule entitled "Enhancing Airline Passenger Protections." Spirit Airlines and others challenged three of the rule's provisions. The D.C. Circuit Court of Appeals denied the petitions for review, holding (1) the requirement that the most prominent figure displayed on print advertisements and websites be the total price, inclusive of taxes, was not arbitrary and capricious or a violation of the First Amendment; (2) the requirement that airlines allow consumers who purchase their tickets more than a week in advance the option of canceling their reservations without penalty for twenty-four hours following purchase was not arbitrary and capricious; and (3) the prohibition against increasing the price of air transportation and baggage fees after consumers purchase their tickets was not procedurally unlawful or otherwise arbitrary and capricious.

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Several states and state regulatory agencies, together with corporations and industrial associations, petitioned for review of the EPA's rule entitled "Primary National Ambient Air Quality Standard for Sulfur Dioxide" and of the subsequent denial of petitions for reconsideration of the standard. Petitioners contended (1) the EPA failed to follow notice-and-comment rulemaking procedures, and (2) the agency arbitrarily set the maximum sulfur dioxide concentration at a level lower than statutorily authorized. The D.C. Circuit Court of Appeal dismissed the petitions in part and denied them in part, holding (1) the challenge to the rulemaking procedure was not within the Court's jurisdiction and must be dismissed; and (2) the EPA did not act arbitrarily in setting the level of sulfur dioxide emissions and therefore, the Court denied that portion of the petitions for review.

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In an earlier decision in this case, the D.C. Circuit Court of Appeals held that Movants, a group of Native American tribes and tribal associations who intervened on behalf of petitioners in the underlying Clean Air Act litigation, were entitled to fees and costs under section 307(f) of the Act. When the parties were unable to agree on the amount of fees, Movants filed an updated motion seeking $369,027, including compensation for 1,181 hours of work and for costs. The EPA held that the fee request was excessive. The D.C. Circuit agreed and awarded Movants $108,609 in compensation for attorney time and $3,186 in costs, holding that Movants reasonably expended 356 hours on the litigation.

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The National Chicken Council, National Meat Association, and National Turkey Federation petitioned for review of EPA's interpretation of a provision in the Energy Independence and Security Act of 2007. The EPA interpreted the provision to mean that certain ethanol plants fired with natural gas and/or biomass were deemed to be in compliance with a reduction requirement indefinitely rather than for a certain period. Petitioners argued that by permitting qualifying ethanol plants to generate Renewable Identification Numberss indefinitely without having to ensure their ethanol met the emissions-reduction requirement, the ethanol plants would produce more ethanol, which would lead to an increase in the demand for corn, which would lead to an increase in the price of corn. The D.C. Circuit Court of Appeals dismissed Petitioner's petition for review for lack of standing, as Petitioners failed to show that a favorable ruling would redress their claimed injuries.

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In 2010, the EPA promulgated a final rule adopting a new, one-hour primary national ambient air quality standard (NAAQS) for nitrogen dioxide (NO2). The American Petroleum Institute, the Utility Air Regulatory Group, and the Interstate Natural Gas Association of America (collectively the API) petitioned for review of that rule, claiming the EPA, in adopting the NAAQS, was arbitrary and capricious and violated the Clean Air Act. The API also challenged a statement in the preamble to the final rule regarding the EPA's intended implementation of the NAAQS. The D.C. Circuit Court of Appeals (1) denied the petitions insofar as they challenged the EPA's adoption of the NAAQS, holding that the EPA's adoption of the NAAQS for NO2 was neither arbitrary or capricious nor in violation of the Clean Air Act; and (2) dismissed the portions of the petitions challenging the EPA's non-final statement regarding permitting in the preamble to the Final Rule, holding that it did not have jurisdiction to consider those portions of the petitions.

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The Rural Cellular Association and the Universal Service for America Coalition (together the RCA) petitioned for review of an order of the FCC amending he "interim cap rule," which limited at 2008 levels the amount of support available to competitive eligible telecommunications carriers. In the order under review, the FCC amended the interim cap rule to provide that when a carrier relinquishes its status as an eligible communications carrier, the cap on the support available in that carrier's state is reduced by the amount the relinquishing carrier would have received had it retained it status. The D.C. Circuit Court of Appeals denied the RCA's petition for review, holding that the order was a lawful exercise of the FCC's authority under the Communications Act of 1934 as amended by the Telecommunications Act of 1996, did not violate the agency's regulations, and was neither arbitrary and capricious nor unconstitutional.

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Intercollegiate Broadcasting, Inc. appealed a final determination of the Copyright Royalty Judges (CRJs) setting the default royalty rates and terms applicable to internet-based webcasting of digitally recorded music. The D.C. Circuit Court of Appeals held that the positions of the CRJs, as currently constituted, violates the Appointments Clause of the U.S. Constitution. To remedy that violation, the Court followed the Supreme Court's approach in Free Enterprise Fund v. Public Company Accounting Oversight Bd. by invalidating and severing the restrictions on the Librarian of Congress's ability to remove CRJs. The Court concluded that with such removal power in the Librarian's hands, the CRJs are "inferior" rather than "principal" officers, and no constitutional problem remained. Because of the Appointments Clause violation at the time of the decision, the Court vacated and remanded the determination challenged here.

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The Vermont Department of Public Service and the New England Coalition petitioned for review of a decision of the Nuclear Regulatory Commission (NRC) issuing to Entergy Nuclear Vermont Yankee, LLC and Entergy Nuclear Operations, Inc. a renewed license to operate the Vermont Yankee Nuclear Power Station. Petitioners contended the license renewal was unlawful because Entergy failed to furnish a state water quality certification, which they asserted was required under the Clean Water Act. The D.C. Circuit Court of Appeals denied the petitions for review, concluding that Petitioners failed to exhaust their administrative remedies before the NRC and thereby waived the right to raise their water quality certification objection on judicial review.

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Following the Supreme Court's decision in Massachusetts v. EPA, the EPA promulgated a series of greenhouse gas-related rules: (1) an Endangerment Finding, in which the EPA determined that greenhouse gases may "reasonably be anticipated to endanger public health or welfare"; (2) the Tailpipe Rule, which set emission standards for cars and light trucks; and (3) the Timing and Tailoring Rules, in which the EPA determined that only the largest stationary sources would initially be subject to the requirements for major stationary sources of greenhouse gases to obtain construction and operating permits. Petitioners, various states and industry groups, challenged all these rules. The D.C. Circuit Court of Appeals dismissed for lack of jurisdiction all petitions for review of the Timing and Tailoring Rules and denied the remainder of the petitions, holding (1) the Endangerment Finding and Tailpipe Rule are neither arbitrary nor capricious; (2) EPA's interpretation of the governing Clean Air Act provisions is unambiguously correct; and (3) no Petitioner has standing to challenge the Timing and Tailoring Rules.

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The National Labor Relations Board (NLRB) sought enforcement of an order finding Downtown BID (the Company), a non-profit business improvement corporation, committed an unfair labor practice when it refused to bargain with the International Association of Machinists and Aerospace Workers (the Union) following an employee election. The Company contended that agents or supporters of the Union unlawfully threatened and harassed employees and otherwise engaged in electioneering that interfered with the fairness and outcome of the election. The NLRB overruled these objections and certified the Union. The D.C. Circuit Court of Appeals granted the NLRB's application, holding (1) the NLRB's findings and conclusions were supported by substantial evidence and consistent with NLRB precedent; and (2) therefore, the Company's subsequent refusal to bargain was therefore unlawful.