Shafer & Freeman Lakes Conserv. Corp. V. FERC
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USCA Case #19-1066 Document #1848742 Filed: 06/24/2020 Page 1 of 97 ORAL ARGUMENT HAS NOT BEEN SCHEDULED In the United States Court of Appeals for the District of Columbia Circuit No. 19-1066 ____________ SHAFER & FREEMAN LAKES ENVIRONMENTAL CONSERVATION CORPORATION, ET AL., Petitioners, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent. ____________ ON PETITION FOR REVIEW OF ORDERS OF THE FEDERAL ENERGY REGULATORY COMMISSION ____________ BRIEF OF RESPONDENT FEDERAL ENERGY REGULATORY COMMISSION ____________ David L. Morenoff Acting General Counsel Robert H. Solomon Solicitor Elizabeth E. Rylander Attorney For Respondent Federal Energy Regulatory Commission Washington, D.C. 20426 FINAL BRIEF: June 24, 2020 USCA Case #19-1066 Document #1848742 Filed: 06/24/2020 Page 2 of 97 Certificate as to Parties, Rulings, and Related Cases A. Parties All parties and intervenors appearing before this Court are identified in the Brief of Petitioners. B. Rulings 1. N. Ind. Pub. Serv. Co., 163 FERC ¶ 61,212 (2018) (Initial Order), R.692, JA 969; and 2. N. Ind. Pub. Serv. Co., 166 FERC ¶ 61,030 (2019) (Rehearing Order), R.718, JA 1021. C. Related cases This case has not previously been before this Court or any other court. To counsel’s knowledge, there are no related cases pending before this Court or elsewhere. /s/ Elizabeth E. Rylander Elizabeth E. Rylander FINAL BRIEF: June 24, 2020 USCA Case #19-1066 Document #1848742 Filed: 06/24/2020 Page 3 of 97 Table of Contents Page Statement of Issues .................................................................................... 1 Statutes and Regulations ........................................................................... 4 Statement of Facts ...................................................................................... 4 I. Statutory and regulatory background .............................................. 4 A. Federal Power Act .................................................................... 4 B. National Environmental Policy Act ........................................ 5 C. Endangered Species Act........................................................... 6 II. Factual background ........................................................................... 9 A. The Norway-Oakdale Project .................................................. 9 B. The 2012 drought and the Service’s Technical Assistance Letter .................................................................... 13 C. The license amendment proceeding ...................................... 18 1. The Commission’s Environmental Assessment, and the Staff Alternative .............................................. 19 2. The Service’s Biological Opinion .................................. 24 III. The Commission orders on review .................................................. 27 Summary of Argument ............................................................................. 30 USCA Case #19-1066 Document #1848742 Filed: 06/24/2020 Page 4 of 97 Table of Contents Page Argument………… .................................................................................... 31 I. Standard of review .......................................................................... 31 II. The Commission reasonably incorporated the Service’s reasonable and prudent measure, to protect endangered mussels, into the Project license ..................................................... 33 III. The Coalition’s objections are unavailing ...................................... 37 A. The Commission is not responsible for reviewing the substance of the Biological Opinion ...................................... 38 B. The record before the Commission does not support the factual findings the Coalition prefers ............................. 43 Conclusion…..…… .................................................................................... 47 ii USCA Case #19-1066 Document #1848742 Filed: 06/24/2020 Page 5 of 97 Table of Authorities Court cases: Page Ala. Power Co. v. FERC, 979 F.2d 1561 (D.C. Cir. 1992) ....................................................... 42 Aluminum Co. of Am. v. Bonneville Power Admin., 175 F.3d 1156 (9th Cir. 1999) ......................................................... 40 Baltimore Gas & Elec. Co. v. Nat. Res. Def. Council, Inc., 462 U.S. 87 (1983) ............................................................................. 6 * Bennett v. Spear, 520 U.S. 154 (1997) .............................................................. 36-37, 40 Center for Biological Diversity v. Dep’t of Interior, 563 F.3d 466 (D.C. Cir. 2009) ..................................................... 8, 35 City of Boston Delegation v. FERC, 897 F.3d 241 (D.C. Cir. 2014) ......................................................... 42 * City of Tacoma v. FERC, 460 F.3d 53 (D.C. Cir. 2006) ................. 7-8, 29, 32, 35-37, 39-40, 44 Dep’t of Interior v. FERC, 952 F.2d 538 (D.C. Cir. 1992) ........................................................... 5 Dep’t of Transp. v. Pub. Citizen, 541 U.S. 752 (2004) ........................................................................... 5 Dow AgroSciences v. NMFS, 637 F.3d 259 (4th Cir. 2011) ........................................................... 37 ________________________ *Cases chiefly relied upon are marked with an asterisk. iii USCA Case #19-1066 Document #1848742 Filed: 06/24/2020 Page 6 of 97 Table of Authorities Court cases: Page Duncan’s Point Lot Owners Ass’n v. FERC, 522 F.3d 371 (D.C. Cir. 2008) ......................................................... 31 FERC v. Elec. Power Supply Ass’n, 136 S. Ct. 760 (2016) ................................................................. 32, 42 First Iowa Hydro-Elec. Coop. v. FPC, 328 U.S. 152 (1946) ........................................................................... 4 FPC v. Union Elec. Co., 381 U.S. 90 (1965) ............................................................................. 4 Greenpeace Action v. Franklin, 14 F.3d 1324 (9th Cir. 1992) ........................................................... 46 Marsh v. Or. Nat. Res. Council, 490 U.S. 360 (1989) ................................................................... 33, 39 Myersville Citizens for a Rural Cmty., Inc. v. FERC, 783 F.3d 1301 (D.C. Cir. 2015) ....................................................... 33 Me. Council of Atl. Salmon Fed’n v. FERC, 741 Fed. App’x 807 (D.C. Cir. 2018) ......................................... 37, 43 Miccosukee Tribe of Indians v. United States, 566 F.3d 1257 (11th Cir. 2009) ....................................................... 39 Motor Vehicle Mfrs. Ass’n of U.S. Inc. v. State Farm Mut. Auto Ins. Co., 463 U.S. 29 (1983) ........................................................................... 32 iv USCA Case #19-1066 Document #1848742 Filed: 06/24/2020 Page 7 of 97 Table of Authorities Court cases: Page Robertson v. Methow Valley Citizens Council, 490 U.S. 443 (1989) ........................................................................... 5 S.C. Pub. Serv. Auth. v. FERC, 762 F.3d 41 (D.C. Cir. 2014) ...................................................... 32-33 Stop H-3 Ass’n v. Dole, 740 F.2d 1442 (9th Cir. 1984) ......................................................... 40 Taxpayers of Mich. Against Casinos v. Norton, 433 F.3d 852 (D.C. Cir. 2006) ........................................................... 6 Tenn. Valley Auth. v. Hill, 437 U.S. 153 (1978) ........................................................................... 7 Theodore Roosevelt Conservation P’ship v. Salazar, 616 F.3d 497 (D.C. Cir. 2010) ........................................................... 5 Vt. Yankee Nuclear Power Corp. v. Nat. Res. Def. Council, Inc., 534 U.S. 519 (1978) ........................................................................ 5-6 Westlands Water Dist. v. Dep’t of Interior, 376 F.3d 853 (9th Cir. 2004) ........................................................... 46 v USCA Case #19-1066 Document #1848742 Filed: 06/24/2020 Page 8 of 97 Table of Authorities Administrative cases: Page N. Ind. Pub. Serv. Co., 121 FERC ¶ 62,009 (2007) (License Order) .......................... 9-11, 13 N. Ind. Pub. Serv. Co., 141 FERC ¶ 62,012 (2012) .............................................................. 14 N. Ind. Pub. Serv. Co., 143 FERC ¶ 62,043 (2013) .............................................................. 14 N. Ind. Pub. Serv. Co., 163 FERC ¶ 61,212 (2018) (Initial Order); on reh’g, 166 FERC ¶ 61,030 (2019) (Rehearing Order) ................. 2, 9, 12-14, 16-19, 27-30, 33-36, 38-41, 46 PacifiCorp, 105 FERC ¶ 61,237 (2003) .............................................................. 36 Pub. Util. Dist. No. 2 of Grant Cnty., 123 FERC ¶ 61,049 (2008) .............................................................. 36 vi USCA Case #19-1066 Document #1848742 Filed: 06/24/2020 Page 9 of 97 Table of Authorities Statutes: Page Administrative Procedure Act: 5 U.S.C. § 706(2)(A) ......................................................................... 31 Endangered Species Act: Section 2(b), 16 U.S.C. § 1531(b) ...................................................... 6 Section 3(19), 16 U.S.C. § 1532(19) .................................................. 7 Section 7(a)(2), 16 U.S.C. § 1536(a)(2) .............................. 7, 8, 35, 38 Section 7(b)(3)(a), 16 U.S.C. § 1536(b)(3)(A) .................................... 8 Section 7(b)(4), 16 U.S.C. § 1536(b)(4) .............................................. 9 Section 7(o)(2), 16 U.S.C. § 1536(o)(2) .......................................