Delaware Riverkeeper Network v. FERC , 895 F.3d 102 ( 2018 )


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  •  United States Court of Appeals
    FOR THE DISTRICT OF COLUMBIA CIRCUIT
    Argued March 22, 2018                 Decided July 10, 2018
    No. 17-5084
    DELAWARE RIVERKEEPER NETWORK AND MAYA VAN
    ROSSUM,
    APPELLANTS
    v.
    FEDERAL ENERGY REGULATORY COMMISSION, ET AL.,
    APPELLEES
    Appeal from the United States District Court
    for the District of Columbia
    (No. 1:16-cv-00416)
    Jordan Yeager argued the cause for appellants. With him
    on the briefs was Aaron Stemplewicz.
    Christopher D. Ahlers was on the brief for amicus curiae
    Clean Air Council supporting plaintiff-appellants and
    supporting reversal of the decision below.
    Ross R. Fulton, Attorney, Federal Energy Regulatory
    Commission, argued the cause for appellees. With him on the
    brief were James P. Danly, General Counsel, and Robert H.
    Solomon, Solicitor.
    2
    Jeremy C. Marwell argued the cause for intervenor-
    appellee PennEast Pipeline Company, LLC. With him on the
    brief were Michael B. Wigmore, Matthew X. Etchemendy,
    Frank H. Markle, and James D. Seegers.
    Melissa N. Patterson, Attorney, U.S. Department of
    Justice, argued the cause for amicus curiae United States of
    America. With her on the brief were Chad A. Readler, Acting
    Assistant Attorney General, Jessie K. Liu, U.S. Attorney, and
    Scott R. McIntosh, Attorney.
    Erika Maley and William R. Levi were on the brief for
    amici curiae Interstate Natural Gas Association of America
    supporting appellees.
    Before: GRIFFITH and KATSAS, Circuit Judges, and
    EDWARDS, Senior Circuit Judge.
    Opinion for the Court filed by Circuit Judge KATSAS.
    KATSAS, Circuit Judge: This appeal presents broad due-
    process challenges to how the Federal Energy Regulatory
    Commission conducts business. By statute, FERC is required
    to recover its costs from regulated industries. The appellants
    contend that this improperly incentivizes the Commission to
    approve new natural-gas pipelines, in order to ensure itself
    future funding sources. The appellants also challenge FERC’s
    use of tolling orders to meet its statutory deadlines for acting
    on applications for rehearing.
    I
    The Natural Gas Act requires companies to obtain a
    “certificate of public convenience and necessity” before
    constructing facilities to transport natural gas in interstate
    3
    commerce. 15 U.S.C. § 717f(c)(1)(A). FERC must issue a
    certificate to a qualified applicant if the proposed project is
    “required by the present or future public convenience and
    necessity,” subject to any reasonable terms and conditions
    imposed by the Commission. 
    Id. § 717f(e).
    FERC, a Commission within the Department of Energy,
    receives annual appropriations fixed by Congress. 42 U.S.C.
    § 7171(j). However, the Omnibus Budget Reconciliation Act
    of 1986 (“Budget Act”) requires FERC to “assess and collect”
    from the various industries that it regulates, including the
    natural-gas industry, “fees and annual charges in any fiscal year
    in amounts equal to all of the costs incurred by the Commission
    in that fiscal year.” 
    Id. § 7178(a)(1).
    These receipts must be
    “credited to the general fund of the Treasury.” 
    Id. § 7178(f).
    A party “aggrieved by an order issued by the Commission
    in a proceeding under” the Natural Gas Act may seek
    rehearing. 15 U.S.C. § 717r(a). “Unless the Commission acts
    upon the application for rehearing within thirty days after it is
    filed, such application may be deemed to have been denied.”
    
    Id. The aggrieved
    party then may seek judicial review, in the
    court of appeals, “within sixty days after the order of the
    Commission upon the application for rehearing.” 
    Id. § 717r(b).
    In 2015, intervenor PennEast Pipeline Co. sought a
    certificate to build a 114-mile natural-gas pipeline running
    through Pennsylvania and New Jersey. Appellants Delaware
    Riverkeeper Network and its director Maya van Rossum
    (collectively “Riverkeeper”) intervened to oppose the project.
    In 2016, while FERC was still reviewing the proposal,
    Riverkeeper filed a complaint seeking declaratory relief against
    the Commission and its members. The complaint alleges that
    FERC’s funding structure creates structural bias, in violation
    of the Due Process Clause of the Fifth Amendment, by
    4
    incentivizing the Commission to approve new pipelines in
    order to secure additional sources for its future funding. The
    complaint also challenges the Commission’s use of tolling
    orders to satisfy its 30-day deadline for acting on rehearing
    applications. Those tolling orders grant rehearing for the
    limited purpose of giving the Commission more time to
    consider pending applications. In the meantime, the complaint
    alleges, FERC routinely allows construction to proceed on
    approved projects. According to Riverkeeper, this frustrates
    judicial review, again in violation of the Due Process Clause.
    After PennEast intervened as a defendant in the district
    court, the Commission and PennEast moved to dismiss the
    complaint. They argued that Riverkeeper had not identified
    any liberty or property interest protected by the Due Process
    Clause and that, in any event, FERC provides all the process
    that is due. The district court agreed with both points and
    dismissed the complaint for failure to state a claim. Del.
    Riverkeeper Network v. FERC, 
    243 F. Supp. 3d 141
    (D.D.C.
    2017). This appeal followed.
    II
    Cases involving the Commission typically come to us as
    petitions for review of final agency orders, not as appeals from
    the district court. We therefore begin by explaining why this
    case is properly before us.
    In NO Gas Pipeline v. FERC, 
    756 F.3d 764
    (D.C. Cir.
    2014), this Court held that the judicial-review provision in the
    Natural Gas Act does not apply to the kind of structural-bias
    claim at issue here. We reasoned that such a claim “does not
    target any aspect of FERC’s actual decision” in any individual
    proceeding under the Natural Gas Act, but instead “centers
    wholly on” the Budget Act. 
    Id. at 769.
    Therefore, we
    concluded, such a claim may be brought only in district court.
    5
    See 
    id. We emphasized
    the “narrowness of our jurisdictional
    holding,” and we distinguished structural-bias claims from
    claims that a specific FERC decision “was tainted by actual
    bias or some other improper motivation.” 
    Id. Under NO
    Gas Pipeline, Riverkeeper properly filed this
    case in the district court. Its principal claim targets the Budget
    Act’s funding mechanism rather than any individual decision
    to award a certificate of public necessity. Therefore, the
    Natural Gas Act does not channel judicial review directly to the
    courts of appeals, and so the district court retained its federal-
    question jurisdiction under 28 U.S.C. § 1331.
    We also conclude that Riverkeeper established Article III
    standing. Although FERC does not renew its standing
    objections on appeal, Article III standing is an element of
    subject-matter jurisdiction, so we must consider that issue
    regardless. See Steel Co. v. Citizens for a Better Env’t, 
    523 U.S. 83
    , 94–95 (1998). As the district court explained, several
    named members of the Delaware Riverkeeper Network—
    including Ms. van Rossum—filed declarations alleging
    aesthetic, recreational, and property injuries that they would
    likely suffer if a specific, identified natural-gas pipeline were
    approved by FERC and built. 
    See 243 F. Supp. 3d at 150
    –51.
    At this stage of the case, these unchallenged declarations
    suffice to establish the individual standing of Ms. van Rossum
    and the representational standing of the Network. See, e.g.,
    Summers v. Earth Island Inst., 
    555 U.S. 488
    , 494 (2009); Nat’l
    Ass’n of Home Builders v. EPA, 
    667 F.3d 6
    , 12 (D.C. Cir.
    2011).
    Finally, we conclude that Riverkeeper has a viable cause
    of action. The Supreme Court has recognized an implied action
    for prospective relief against allegedly unconstitutional actions
    by federal officials, which FERC does not dispute extends to
    6
    it. See, e.g., Armstrong v. Exceptional Child Ctr., Inc., 135 S.
    Ct. 1378, 1384 (2015); Free Enter. Fund v. Pub. Co.
    Accounting Oversight Bd., 
    561 U.S. 477
    , 491 n.2 (2010).
    Moreover, Congress has waived federal sovereign immunity
    for claims seeking “relief other than money damages.” See 5
    U.S.C. § 702; Trudeau v. FTC, 
    456 F.3d 178
    , 187 (D.C. Cir.
    2006).
    III
    The Due Process Clause of the Fifth Amendment forbids
    the federal government from depriving a person of “life,
    liberty, or property, without due process of law.” To determine
    whether Riverkeeper has stated a valid due-process claim,
    “[w]e first ask whether there exists a liberty or property interest
    of which a person has been deprived.” Swarthout v. Cooke,
    
    562 U.S. 216
    , 219 (2011) (per curiam). If so, “we ask whether
    the procedures followed … were constitutionally sufficient.”
    
    Id. We review
    de novo the district court’s dismissal for failure
    to state a claim, and we accept the complaint’s well-pleaded
    factual allegations as true. Ralls Corp. v. Comm. on Foreign
    Inv. in the U.S., 
    758 F.3d 296
    , 314 (D.C. Cir. 2014).
    A
    Riverkeeper seeks to ground its due-process claim in
    environmental interests and in real-property interests created
    under Pennsylvania law. We examine each in turn.
    1
    In 1971, the Pennsylvania Environmental Rights
    Amendment inserted into the state constitution certain
    protections for the environment. The Amendment states:
    7
    The people have a right to clean air, pure water, and
    to the preservation of the natural, scenic, historic and
    esthetic values of the environment. Pennsylvania’s
    public natural resources are the common property of
    all the people, including generations yet to come. As
    trustee of these resources, the Commonwealth shall
    conserve and maintain them for the benefit of all the
    people.
    Pa. Const. art. I, § 27. Riverkeeper contends that this right to
    clean air, pure water, and preservation of the environment
    creates a protected liberty or property interest as a matter of
    federal due process. It further contends that this right
    constrains FERC in its administration of federal law. The
    district court rejected these contentions, as do we.
    To begin, the Environmental Rights Amendment creates
    no federally protected liberty interest. The Amendment bears
    no relationship to the quintessential liberty interest—“freedom
    from bodily restraint.” Bd. of Regents of State Colls. v. Roth,
    
    408 U.S. 564
    , 572 (1972) (quotation marks omitted). Nor does
    it protect activities that have been held to constitute federally
    protected liberty interests, such as “the right of the individual
    to contract, to engage in any of the common occupations of life,
    to acquire useful knowledge, to marry, establish a home and
    bring up children, to worship God according to the dictates of
    his own conscience, and generally to enjoy those privileges
    long recognized as essential to the orderly pursuit of happiness
    by free men.” 
    Id. (quotation marks
    and ellipses omitted).
    Riverkeeper believes that “a healthy environment” is a
    “necessary backdrop” for such rights to be “truly meaningful.”
    Appellants’ Br. 23. Perhaps so, but that hardly suggests that
    the right to a healthy environment can itself fairly be described
    as a “liberty” interest. Under Roth, it cannot.
    8
    As for property interests, they “are not created by the
    Constitution.” 
    Roth, 408 U.S. at 577
    . Instead, “their
    dimensions are defined by existing rules or understandings that
    stem from an independent source such as state law.” Town of
    Castle Rock v. Gonzales, 
    545 U.S. 748
    , 756 (2005) (quotation
    marks omitted). But despite these “state-law underpinnings,”
    the question whether the asserted interest “rises to the level of
    a ‘legitimate claim of entitlement’ protected by the Due
    Process Clause” is ultimately one of “federal constitutional
    law.” 
    Id. at 756–57
    (quoting Memphis Light, Gas & Water Div.
    v. Craft, 
    436 U.S. 1
    , 9 (1978)).
    The Supreme Court has established several guideposts
    bearing on when a state-created right or benefit qualifies as
    “property” for due-process purposes. For one thing, “‘a person
    clearly must have more than an abstract need or desire’ and
    ‘more than a unilateral expectation of [the benefit]. He must,
    instead, have a legitimate claim of entitlement to it.’” Town of
    Castle 
    Rock, 545 U.S. at 756
    (quoting 
    Roth, 408 U.S. at 577
    ).
    Even for entitlements, “[t]he hallmark of a protected property
    interest is the right to exclude others,” which is “one of the most
    essential sticks in the bundle of rights that are commonly
    characterized as property.” Coll. Sav. Bank v. Fla. Prepaid
    Postsecondary Educ. Expense Bd., 
    527 U.S. 666
    , 673 (1999)
    (quotation marks omitted). Moreover, the Due Process Clause
    does not protect rights that are vague or indeterminate—a
    person cannot be “safely deemed ‘entitled’ to something when
    the identity of the alleged entitlement is vague.” Town of
    Castle 
    Rock, 545 U.S. at 763
    . Furthermore, “an entitlement
    must have ‘some ascertainable monetary value’ in order to
    ‘constitute a “property” interest’” for due-process purposes.
    Roberts v. United States, 
    741 F.3d 152
    , 162 (D.C. Cir. 2014)
    (quoting Town of Castle 
    Rock, 545 U.S. at 766
    ). Finally, courts
    consider the extent to which the right “resemble[s] any
    9
    traditional conception of property.” Town of Castle 
    Rock, 545 U.S. at 766
    .
    Under these principles, the state-created right to clean air,
    pure water, and preservation of the environment does not
    qualify as a federally protected “property” interest.
    Most importantly, the Environmental Rights Amendment
    creates no right to exclude—or anything like it. To the
    contrary, its first sentence vests the single “right” at issue
    collectively in “[t]he people,” its second sentence confirms that
    “Pennsylvania’s public natural resources are the common
    property of all the people,” and its third sentence requires the
    Commonwealth to conserve and maintain environmental
    resources “for the benefit of all the people.” Pa. Const. art. I,
    § 27 (emphases added). Moreover, although the Supreme
    Court of Pennsylvania has held that the Amendment is
    judicially enforceable by private individuals, it has also
    confirmed that the right the Amendment creates is shared
    equally by all Pennsylvanians. See Penn. Envtl. Def. Found. v.
    Pennsylvania, 
    161 A.3d 911
    , 931 (Pa. 2017); Robinson Twp. v.
    Pennsylvania, 
    83 A.3d 901
    , 951 & n.39 (Pa. 2013) (plurality
    opinion). In other words, no Pennsylvanian may exclude any
    other from the right to clean air, pure water, and a preserved
    environment. So, the Amendment protects not private property
    rights, but public goods. In that respect, it is like “the right that
    we all possess to use the public lands”—which for due-process
    purposes “is not the ‘property’ right of anyone.” Coll. Sav.
    
    Bank, 527 U.S. at 673
    .
    The Amendment is also too vague and indeterminate to
    create a federally cognizable property interest. As the
    Pennsylvania Supreme Court has acknowledged, the
    Amendment articulates only “broad” and “relative” principles,
    so “the courts generally defer to agency expertise in making a
    10
    factual determination whether the benchmarks [of the
    Amendment] were met.” Robinson 
    Twp., 83 A.3d at 949
    , 953.
    To be sure, that Court also believes itself “equipped” to apply
    and enforce the Amendment in individual cases. See 
    id. at 953.
    But for federal due-process purposes, the question whether the
    Amendment is too vague to create a property right is a federal
    constitutional question. See Town of Castle 
    Rock, 545 U.S. at 763
    . In this case, moreover, Riverkeeper invokes nothing more
    than the bare text of the Amendment. Without further guidance
    on what constitutes sufficiently clean air, sufficiently pure
    water, and sufficient preservation of natural, scenic, historic
    and aesthetic environmental values, we cannot say that a FERC
    decision to authorize the construction of a natural-gas pipeline,
    as required by its view of the public convenience and necessity,
    implicates any federally protected property right. 1
    The Amendment is unlike traditional or even new property
    in yet other respects. For one thing, the right to a preserved
    environment cannot be bought or sold—and thus has no
    “ascertainable monetary value,” as the Supreme Court’s
    “property-as-entitlement cases have implicitly required.”
    Town of Castle 
    Rock, 545 U.S. at 766
    (quotation marks
    omitted). Moreover, environmental quality depends on many
    factors beyond Pennsylvania’s control—including acts of other
    governments, acts of millions of private parties, and natural
    phenomena ranging from catastrophic events to ordinary
    weather patterns. Whereas fair adjudicatory process can
    reliably protect state-created entitlements to a promised
    1
    Riverkeeper’s reliance on the bare text of the Amendment
    distinguishes this case from In re Application of Maui Electric Co.,
    
    408 P.3d 1
    (Haw. 2017). There, the plaintiffs invoked much more
    detailed state environmental statutes to support their due-process
    claim, see 
    id. at 13,
    and the Hawaii Supreme Court rooted its decision
    in those statutes rather than in some “freestanding interest in general
    aesthetic and environmental values,” 
    id. at 16.
                                     11
    government job, 
    Roth, 408 U.S. at 576
    –77, or a promised
    government welfare benefit, Goldberg v. Kelly, 
    397 U.S. 254
    (1970), it cannot guarantee a well-preserved environment.
    Finally, the rights created by the Amendment bind only
    state and local government, not the federal government. The
    Amendment appears within the Declaration of Rights of the
    Pennsylvania Constitution, which sets forth a “social contract”
    between the Commonwealth of Pennsylvania and its people.
    See Robinson 
    Twp., 83 A.3d at 947
    . The Declaration’s various
    provisions—many of which track the federal Bill of Rights—
    thus confer rights specifically as against the Commonwealth.
    See, e.g., Pa. Const. art. I, § 3 (religious freedom); 
    id. art. I,
    § 6
    (trial by jury); 
    id. art. I,
    § 7 (freedom of press and speech).
    Riverkeeper cites no precedent even remotely suggesting that
    these state constitutional rights purport to impose substantive
    obligations on the federal government. To the contrary, the
    Pennsylvania Supreme Court repeatedly has described the
    Declaration of Rights as limiting only the power of “state
    government,” Robinson 
    Twp., 83 A.3d at 948
    ; see also Penn.
    Envtl. Def. 
    Found., 161 A.3d at 930
    –31, and the Amendment
    likewise as binding only “state or local” government, Robinson
    
    Twp., 83 A.3d at 952
    ; see also Penn. Envtl. Def. 
    Found., 161 A.3d at 931
    .
    For all of these reasons, we conclude that the
    Environmental Rights Amendment does not create federally
    protected liberty or property interests, much less ones that
    FERC could infringe.
    2
    Riverkeeper also invokes the interests of its members who
    own real property along the path of proposed pipelines. Once
    FERC issues a certificate of public convenience and necessity,
    the pipeline company may acquire the necessary rights-of-way
    12
    through eminent domain. 15 U.S.C. § 717f(h). If and when
    that happens, the landowner will be entitled to just
    compensation, as established in a hearing that itself affords due
    process. See, e.g., Walker v. City of Hutchinson, 
    352 U.S. 112
    ,
    115 (1956). But the Natural Gas Act ensures such a hearing,
    in providing that any eminent-domain action “shall conform as
    nearly as may be with the practice and procedure in similar
    action or proceeding in the courts of the State where the
    property is situated.” 15 U.S.C. § 717f(h). Due process
    requires no more in the context of takings where, despite
    Riverkeeper’s suggestion to the contrary, there is no right to a
    pre-deprivation hearing. See, e.g., Bailey v. Anderson, 
    326 U.S. 203
    , 205 (1945); Presley v. City of Charlottesville, 
    464 F.3d 480
    , 489–90 (4th Cir. 2006).
    B
    Regardless of whether any protected liberty or property
    interests are implicated, the Commission is not a structurally
    biased adjudicator, and its use of tolling orders is not facially
    unconstitutional.
    1
    Riverkeeper’s structural-bias claim focuses on FERC’s
    statutory obligation to recover its expenses from the industries
    that it regulates. In NO Gas Pipeline, we described that claim
    as “novel, and even 
    creative.” 756 F.3d at 768
    . Today, we
    reject it.
    Like most federal agencies, FERC receives annual
    appropriations from Congress. See 42 U.S.C. § 7171(j);
    Consolidated Appropriations Act, 2018, div. D, tit. III, 132
    Stat. 348, 527. But the Budget Act requires FERC to “assess
    and collect” from the various industries that it regulates “fees
    and annual charges in any fiscal year in amounts equal to all of
    13
    the costs incurred by the Commission in that fiscal year.” 42
    U.S.C. § 7178(a)(1). These receipts must be “credited to the
    general fund of the Treasury.” 
    Id. § 7178(f).
    As the fees are
    received, FERC’s appropriation is reduced until the net
    expenditure from the Treasury is “not more than $0.” See, e.g.,
    Consolidated Appropriations Act, 2018, 132 Stat. at 527.
    FERC also must make yearly adjustments in its assessments to
    “eliminate any overrecovery or underrecovery of its total
    costs.” 42 U.S.C. § 7178(e).
    Due process requires an “impartial and disinterested”
    adjudicator, Marshall v. Jerrico, Inc., 
    446 U.S. 238
    , 242
    (1980), and prohibits structures that might lead the adjudicator
    “not to hold the balance nice, clear and true,” Tumey v. Ohio,
    
    273 U.S. 510
    , 532 (1927). Three Supreme Court decisions—
    each involving a mayor’s court—elaborate on this doctrine.
    In Tumey, the Court held that an adjudicator cannot have
    “a direct, personal, substantial pecuniary interest” in reaching
    a particular 
    outcome. 273 U.S. at 523
    . There, the mayor had
    executive duties and could also try certain crimes and fine those
    whom he found guilty. See 
    id. at 519,
    533. Part of each fine
    supplemented the mayor’s salary, and part was deposited into
    the village’s general fund, over which the mayor had
    significant control. See 
    id. at 518–21,
    532–33. The Court held
    that the mayor had impermissible personal and official interests
    in securing convictions, which would supplement both his
    individual income and his government budget. 
    Id. at 523,
    535.
    On the opposite end of the spectrum is Dugan v. Ohio, 
    277 U.S. 61
    (1928). There, the mayor served as one of five
    members of a city commission, and his individual duties were
    judicial but not executive. See 
    id. at 63.
    Fines were deposited
    into the same general fund from which the mayor’s salary was
    paid, but the Court stressed that the salary itself was “not
    14
    dependent on whether he convicts in any case or not.” 
    Id. at 65.
    Moreover, because the mayor individually lacked any
    executive duties, he had no direct incentive to build up the fund.
    
    Id. at 64–65.
    Finally, although the city commission on which
    the mayor served set his salary and itself had executive duties,
    those connections to the mayor’s “fines as a judge” were too
    “remote” to violate due process. See 
    id. at 65.
    Ward v. Village of Monroeville, 
    409 U.S. 57
    (1972),
    involved an intermediate situation—a mayor who individually
    performed both executive and judicial functions, but whose
    salary did not depend on fines from convictions. 
    Id. at 57–58.
    The revenue from the fines did constitute a “substantial portion
    of the municipality’s funds.” 
    Id. at 59.
    Focusing on the
    mayor’s “executive responsibilities for village finances,” the
    Court held that this structure created an impermissible
    incentive for the mayor “to maintain the high level of
    contribution from [his] court.” 
    Id. at 60.
    This case is controlled by Dugan. Here, as there, the
    adjudicator does not control the funds collected—FERC’s fees
    and charges are “credited to the general fund of the Treasury,”
    42 U.S.C. § 7178(f), not placed into its own coffers. Moreover,
    the Commission’s budget, like the mayor’s salary in Dugan, is
    fixed by a distinct legislative body. As explained above,
    Congress sets FERC’s annual appropriation, see 
    id. § 7171(j),
    and it is a criminal offense for agency officials to spend even
    one penny more, see 31 U.S.C. §§ 1341(a)(1)(A), 1350.
    Moreover, whereas the mayor in Dugan could have increased
    the city’s revenues by adjudicating more convictions, FERC
    can do nothing analogous, because Congress has specified the
    total amount it is to charge: Regardless of how many pipelines
    FERC may approve, it “shall” charge, for each year, a total
    amount “equal to all of the costs incurred by the Commission
    in that fiscal year.” 
    Id. § 7178(a)(1).
    Likewise, whereas the
    15
    mayor in Dugan sat on the five-member body that fixed his
    salary and exercised control over incoming fines, 
    see 277 U.S. at 65
    , FERC commissioners enjoy no comparable degree of
    influence over Congress. In light of Dugan, FERC’s funding
    structure is clearly constitutional.
    Riverkeeper worries about long-term incentives: the more
    pipelines that FERC approves in the present, the greater its
    ability to seek larger appropriations from Congress in the
    future. But similar theoretical concerns existed in Dugan,
    where the mayor could have sought future raises based on the
    amount of revenue that he had already secured for the city
    through fines. Yet the Court deemed it dispositive that (i) the
    mayor’s salary was not directly linked to individual fines and
    (ii) the mayor did not directly control the revenue generated by
    those fines. See 
    id. at 64–65.
    And as explained above, this case
    is even easier, given a yearly reimbursement amount not tied to
    individual pipeline approvals, as well as a greater degree of
    separation between FERC and Congress.
    Finally, Riverkeeper cites individual instances of alleged
    bias to support its view that the Commission has succumbed to
    temptation. Yet, Riverkeeper is not bringing a claim of actual
    bias in any particular case—and indeed could not have done so
    here. See NO Gas 
    Pipeline, 756 F.3d at 769
    . And its individual
    allegations of actual bias have little if any bearing on whether
    the funding mechanism itself establishes an unconstitutional
    structural bias.
    For these reasons, we reject Riverkeeper’s due-process
    challenge to the Commission’s funding mechanism.
    2
    Riverkeeper raises a separate due-process challenge to the
    Commission’s use of tolling orders to satisfy its deadlines for
    16
    acting on rehearing applications. The Natural Gas Act provides
    that unless FERC “acts upon [an] application for rehearing
    within thirty days after it is filed, such application may be
    deemed to have been denied.” 15 U.S.C. § 717r(a). According
    to Riverkeeper, FERC regularly fails to rule on the merits of
    rehearing applications within 30 days, issues tolling orders that
    extend their pendency indefinitely, and allows pipeline
    construction to proceed in the meantime, thereby preventing
    judicial review until it is too late.
    We have long held that FERC’s use of tolling orders is
    permissible under the Natural Gas Act, which requires only that
    the Commission “act upon” a rehearing request within 30 days,
    15 U.S.C. § 717r(a), not that it finally dispose of it. See Cal.
    Co. v. FPC, 
    411 F.2d 720
    , 722 (D.C. Cir. 1969) (per curiam);
    accord Kokajko v. FERC, 
    837 F.2d 524
    , 526 (1st Cir. 1988);
    Gen. Am. Oil Co. of Tex. v. FPC, 
    409 F.2d 597
    , 599 (5th Cir.
    1969). To prevail on its claim here, Riverkeeper would need
    to show that FERC’s statutorily authorized practice of taking
    more than 30 days to finally dispose of a rehearing petition
    violates due process in each and every instance, no matter the
    reasons for taking more time, the complexity of the application,
    or the amount of development allowed or blocked in the
    interim. The Constitution imposes no such categorical rule,
    and Riverkeeper makes no serious effort to contend otherwise.
    Instead, Riverkeeper attempts to distinguish cases
    upholding FERC’s use of tolling orders by describing allegedly
    “egregious facts” of individual certification proceedings.
    Reply Br. 27. However, we do not have before us the
    constitutionality of any particular tolling order. Nor could we
    in this case, as any final agency action in a certification
    proceeding would be subject to review only on a petition for
    review filed in the first instance in the court of appeals. See 15
    U.S.C. § 717r(b); NO Gas 
    Pipeline, 756 F.3d at 768
    –70.
    17
    Accordingly, any claim of unreasonable or unconstitutional
    delay—or any other claim designed to preserve the integrity of
    future judicial review in individual certification proceedings—
    would lie in a mandamus action filed directly in the court of
    appeals. See Telecomms. Research & Action Ctr. v. FCC, 
    750 F.2d 70
    , 75–79 (D.C. Cir. 1984). Riverkeeper could pursue
    such relief in an appropriate case, but it has not done so here.
    IV
    Because Riverkeeper’s due-process claims lack merit, we
    affirm the district court’s judgment.
    So ordered.
    

Document Info

Docket Number: 17-5084

Citation Numbers: 895 F.3d 102

Filed Date: 7/10/2018

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (21)

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the-california-company-v-federal-power-commission-union-texas-petroleum , 411 F.2d 720 ( 1969 )

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Tumey v. Ohio , 47 S. Ct. 437 ( 1927 )

Board of Regents of State Colleges v. Roth , 92 S. Ct. 2701 ( 1972 )

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Marshall v. Jerrico, Inc. , 100 S. Ct. 1610 ( 1980 )

Summers v. Earth Island Institute , 129 S. Ct. 1142 ( 2009 )

Walker v. City of Hutchinson , 77 S. Ct. 200 ( 1956 )

Goldberg v. Kelly , 90 S. Ct. 1011 ( 1970 )

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Steel Co. v. Citizens for a Better Environment , 118 S. Ct. 1003 ( 1998 )

College Savings Bank v. Florida Prepaid Postsecondary ... , 119 S. Ct. 2219 ( 1999 )

Swarthout v. Cooke , 131 S. Ct. 859 ( 2011 )

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