Federal Endangered Species Act

Section 7 (Consultation, Jeopardy and Critical Habitat)

Digest of Recent Case Law

November, 2002

 

by

Tara L. Mueller, Esq.

Deputy Attorney General

California Office of the Attorney General

Land Law Section, Oakland CA

The views herein expressed are solely those of the author, and do not necessarily reflect the views of the California Attorney General, the California Department of Justice, or any other California state agency.

 

 

A.      Adverse Modification of Critical Habitat Standard: 2

1.   Fifth Circuit Holds Regulatory Definition of Adverse Modification Invalid.  Sierra Club v. U.S. Fish and Wildlife Service, 245 F.3d 434 (5th Cir. 2001). 2

B.      Reinitiation of Consultation. 4

1.   Ninth Circuit Holds That Reinitiation Not Required If New Species Listed in Area Affected By An Incidental Take Permit That Does Not Cover Such Species.  Environmental Protection Information Center v. Simpson Timber Co., 255 F.3d 1073 (9th Cir. 2001). 4

2.   Arizona District Court Holds Forest Service Required To Reinitiate Consultation on Its Failure to Immediately Implement Grazing Monitoring Requirements in National Forest Plan: Forest Guardians v. U.S. Forest Service, Case No. CV 00-612 TUC, D. AZ 2002. 5

C.     Incidental Take Statements. 6

1.   Ninth Circuit Holds Invalid Incidental Take Statement Issued Without Site-Specific Analysis.  Arizona Cattle Growers Assn. v. U.S. Fish and Wildlife Service, 273 F.3d 1229 (9th Cir. 2001). 6

2.   California District Court Enjoins Use of Navy Sonar Based on Invalid Biological Opinion: Natural Resources Defense Council v. Evans, __ F. Supp. 2d __ (N.D. Cal. 2002); 2002 WL 31445165. 8

D.     Substantive Challenges to Section 7 Consultations. 11

1.   Biological Assessments. 11

a.      Ninth Circuit Invalidates Biological Assessment for Timber Sale: Native Ecosystems Council v. Dombeck, 304 F.3d 886 (9th Cir. 2002). 11

b.   First Circuit Denies Preliminary Injunction to Halt Navy Training Exercises Alleged to Harm Endangered Species: Water Keeper Alliance v. U.S. Dept. of Defense, 271 F.3d 21 (1st Cir. 2001). 12

2.   Biological Opinions. 14

a.   New Mexico District Court Holds Biological Opinion for Endangered Fish Species Inadequate; Orders Release of Water to Prevent Extinction of Such Species: Rio Grande Silvery Minnow v. Keys, __ F.Supp.2d __ (D. N.M. 2002), Case No. Civ. 99-1230JP/RLP, Mem. Op. and Findings of Fact and Concl. Of Law. 14

b.   Massachusetts District Court Upholds Biological Opinion Closing Atlantic Longline Fishery to Protect Listed Sea Turtle: Blue Water Fishermen’s Association v. National Marine Fisheries Service, __ F.Supp.2d __ (D. Mass 2002); 2002 WL 3129801. 15

c.   Oregon District Court Enjoins Timber Sales Based on Invalid Biological Opinion: Cascadia Wildlands Project v. U.S. Fish and Wildlife Service, 219 F.Supp.2d 1142 (D. Or. 2002). 17

d.   California District Court Upholds Section 7 Consultation for Port Dredging and Berthing Project: San Francisco Baykeeper v. U.S. Army Corps of Engineers, 219 F.Supp.2d 1001 (N.D. Cal. 2002). 18

e.   Arizona District Court Holds No Jeopardy Biological Opinion Inadequate: Center for Biological Diversity v. Rumsfeld, 198 F. Supp. 2d 1139 (D. Ariz. 2002). 20

f.    D.C. District Magistrate Holds That Commercial Fishing Association Entitled to Copy of Draft Biological Opinion: Hawaii Longline Association v. National Marine Fisheries Service, __ F. Supp. 2d __, 2002 WL 732363 (D.D.C. 2002). 21

Section 7 and NEPA:   Eleventh Circuit Holds NEPA Documentation Adequate to Satisfy ESA’s Section 7 Consultation Requirements.  Sierra Club v. Army Corps of Engineers, 295 F.3d 1209 (11th Cir. 2002). 23

F.   Section 7(d): Ninth Circuit Refuses to Enjoin Ongoing Cattle Grazing Pending Section 7 Consultation: Southwest Center for Biological Diversity v. U.S. Forest Service, 307 F.3d 964 (9th Cir. 2002). 24

 

A.            Adverse Modification of Critical Habitat Standard:

1.       Fifth Circuit Holds Regulatory Definition of Adverse Modification Invalid.  Sierra Club v. U.S. Fish and Wildlife Service, 245 F.3d 434 (5th Cir. 2001).

 

         Case Summary

 

         In this highly significant case, the Fifth Circuit invalidated the Services’ definition of “adverse modification of critical habitat” in the section 7 regulations (50 C.F.R. § 402.02).  Plaintiff Sierra Club challenged the Services’ failure to designate critical habitat for the Gulf sturgeon.  The Services determined not to designate critical habitat because they found that such designation would not be prudent because it would not provide any additional benefit to the sturgeon.  In making this finding, the Services relied on their section 7 regulations, which define adverse modification of critical habitat in a manner virtually identical to the jeopardy standard.  “Adverse modification of critical habitat” is a “direct or indirect alteration that appreciably diminishes the value of critical habitat for both the survival and recovery of a listed species.”  Similarly, “jeopardize the continued existence of” means “to engage in an action that reasonably would be expected, directly or indirectly, to reduce appreciably the likelihood of both the survival and recovery of a listed species in the wild.”  50 C.F.R. § 402.02.  The Sierra Club contended that the regulatory definition of adverse modification facially conflicted with the ESA.

 

         The court first rejected the Sierra Club’s argument that the regulatory definitions of adverse modification and jeopardy impermissibly conflate the two statutory triggers for section 7 consultation.  The court stated “[t]he mere fact that both definitions are framed in terms on survival and recovery does not render them equivalent,” because the adverse modification standard focuses on the action’s effect on critical habitat, while the jeopardy standard addresses the action’s effect on the species itself.

 

         However, the court agreed with the Sierra Club that the definition of adverse modification “set the bar too high” in requiring that an action affect both the survival and recovery of the species.  The court noted that the ESA defined “critical habitat” as areas that are essential to the conservation (i.e. recovery) of listed species, not just survival.  Thus, the court concluded, “[r]equiring consultation only where an action affects the value of critical habitat to both the survival and recovery of a species imposes a higher threshold than the statutory language permits.” 

 

         The court also noted that the regulatory definition of adverse modification makes it less likely that critical habitat will be designated.  The court reasoned that:

 

[b]ecause of the higher threshold imposed by defining the [adverse modification] standard in terms of both survival and recovery, federal agencies would be required to consult with the Department of the Interior less frequently than if the standard were defined in terms of recovery alone.  Because the jeopardy standard already requires agencies to consult with the Department where their actions would affect both the survival and recovery of a species, it is less likely that the Services would discern additional benefit from designating critical habitat.  Consequently, the Services are more likely to find designation “not prudent.” 

 

The court found this result to be in conflict with Congress’ intent that a “not prudent” critical habitat finding only occur in “rare” or “limited” circumstances. Therefore, the court concluded that the definition of adverse modification was facially invalid.

 

         The court then overturned the Services’ “not prudent” finding with respect to the critical habitat designation for the Gulf sturgeon.  The invalid regulation “directly informed the Services’ conclusion that designation was not warranted because the Services concluded that designation of unoccupied habitat was only necessary for the recovery, not the survival, of the species.  Additionally, the Services’ evaluation of the merits of critical habitat designation was premised on the view that consultation under the jeopardy standard is functionally equivalent to consultation under the adverse modification standard, because both standards are defined in terms of survival and recovery.  Because the court had concluded that the regulatory definition of adverse modification was flawed, the court found the “functional equivalence” argument untenable.  Thus, the court concluded that the Services’ failure to designate critical habitat for the Gulf sturgeon was arbitrary and capricious.

 

         Analysis

 

         It is unclear how the Services intend to handle critical habitat designations and section 7 consultations in the aftermath of this opinion.  Thus far, the Services have not made any effort to revise their regulations.  The Sierra Club decision establishes a lower threshold for adverse modification than currently provided by the regulations.  After Sierra Club, the Services must conclude that adverse modification may or will occur if it may or will impair a species’ prospects of recovery, not just survival.  This means that formal section 7 consultation could be required in more instances, and the Services could be required to issue more jeopardy opinions, than under the current regulations.  The Sierra Club decision also clearly distinguishes the adverse modification threshold for consultation from the jeopardy threshold, lowering the bar for adverse modification below that of jeopardy.

 

         This raises the question whether the rationale the Fifth Circuit used to invalidate the adverse modification definition also could be applied to the Services’ definition of jeopardy.  This definition likewise requires impairment of both a species’ survival and recovery prospects.  The court’s reasoning that impairment of recovery alone is sufficient, however, is based on the fact that critical habitat designation is specifically designed to assist in species recovery.  Therefore, the court’s reasoning may not be readily applied to the jeopardy context.   

 

B.     Reinitiation of Consultation.

 

         1.       Ninth Circuit Holds That Reinitiation Not Required If New Species Listed in Area Affected By An Incidental Take Permit That Does Not Cover Such Species.  Environmental Protection Information Center v. Simpson Timber Co., 255 F.3d 1073 (9th Cir. 2001).

 

         Case Summary

 

         This case addresses the scope of the Services’ duty to reinitiate consultation on an incidental take permit (ITP) when a new species is listed in the area subject to the ITP.  The Environmental Protection Information Center (EPIC) challenged the FWS’ failure to reinitiate consultation on an ITP issued to Simpson Timber Company which authorized take of northern spotted owl in connection with Simpson’s timber operations.  After the FWS issued the ITP, it listed the marbled murrelet, and the NMFS listed the coho salmon, as threatened species under the ESA. EPIC argued that such reinitiation was required under the plain language of the FWS’ regulations, which require the FWS to reinitiate consultation on any federal agency action over which it has ongoing discretionary involvement or control, if a new species is listed that may be affected by the agency action.  See 50 C.F.R. § 402.16.

 

         The court held that when a federal agency has authorized a private activity (as with an ITP), the question whether reinitation of consultation is required when a new species is listed turns on whether the federal agency “has retained the power to implement measures that inure to the benefit of the protected species.”  Citing Sierra Club v. Babbitt, 65 F.3d at1502, 1509 (9th Cir. 1995).  The court rejected the argument that its decision in Pacific Rivers Council v. Thomas, 30 F.3d 1050 (9th Cir. 1994) provided the controlling standard for reinitiation, because Simpson’s ITP was not analogous to the federal land and resource management plans (LRMPs) at issue in Pacific Rivers Council.  LRMPs are comprehensive management plans that govern forest planning decisions on federal land.  In contrast, the ITP involves federal authorization of private action on private land, like the private right of way agreement at issue in Sierra Club v. Babbitt.

 

         Applying the Sierra Club v. Babbitt standard to the facts of the case, the court noted that, although the FWS had retained some general discretionary involvement and control over Simpson’s permit, “nowhere in the various permit documents did the FWS retain discretionary control to make new requirements to protect species that subsequently might be listed as endangered or threatened.”  This was true even though the permit required Simpson to include in its timber harvest plans “designs to modify silvicultural systems as appropriate to ensure compatibility with the habitat requirements of other species found within Simpson’s ownership that are considered sensitive by state and federal . . . agencies.”  The court interpreted this passage to be limited to currently listed species, not those that subsequently might be listed.

 

         In addition, the FWS had authority to monitor Simpson’s compliance with the permit and require Simpson to correct any deficiencies in permit compliance, to suspend the permit in the event of a significant permit violation, and to modify the ITP’s mitigation program to ensure that the program’s conservation goals were met.  None of these provisions, the court stated, “addresses the scope of the FWS’ authority to implement measures to benefit species other than the spotted owl.”  In sum, none of the permit provisions gave the FWS power to reinitiate consultation on Simpson’s northern spotted owl ITP to impose additional measures to protect the marbled murrelet or coho salmon.  The court noted that plaintiff’s remedy instead was to sue Simpson for an unlawful taking of species under section 9 of the ESA.

 

         Analysis

 

         This is an extremely result-oriented decision which is inconsistent with the reinitiation of consultation regulations, and with the purpose of the ESA.  Fortunately, the Services can circumvent the effects of this decision by including explicit provisions in ITPs and ITP implementing agreements that reinitiation is required whenever a new species is listed in any area covered by an ITP, regardless of whether that species is covered by the ITP.

 

         2.       Arizona District Court Holds Forest Service Required To Reinitiate Consultation on Its Failure to Immediately Implement Grazing Monitoring Requirements in National Forest Plan: Forest Guardians v. U.S. Forest Service, Case No. CV 00-612 TUC, D. AZ 2002.

 

         Case Summary

 

         In this case the Arizona District Court held that the U.S. Forest Service (USFS) violated the ESA by failing to reinitiate consultation when it determined not to immediately implement amendments to a national forest plan that required grazing allotments to be monitored for impacts to the Mexican spotted owl.    In 1996, the USFS had adopted amendments to its national forest plan for eleven national forests in the Southwest Region, which required the USFS to monitor forage use in certain specified areas to determine whether forage use exceeded forage utilization standards.  The amendments were intended to implement certain provisions of the Mexican spotted owl recovery plan.  The USFS consulted with the U.S. Fish and Wildlife Service (FWS) on the amendments in 1995, and the FWS issued a biological opinion which concluded that the prior forest plan did not comply with the ESA, but that the amended plan would comply if the amendments were implemented immediately. 

 

         Although the USFS initially agreed to apply the monitoring requirements to each grazing allotment immediately, it later determined to implement these requirements only after site-specific NEPA review of each grazing allotment.  Moreover, the USFS indicated that if NEPA analysis had not been completed at the time a grazing permit was due for renewal, the USFS would renew the permit under the terms of the prior permit, absent any monitoring requirement.

 

         The court held that the USFS was required to reinitiate consultation with the FWS on its failure to implement the monitoring requirements, because the USFS’ actions could affect the owl and its habitat in a manner not considered in the FWS’ biological opinion.  The court reasoned that:

 

While grazing may be only a small part of the overall recovery plan for the owl, the Court finds that failure to implement the new grazing standards not only in the interim period between the adoption of the amendments and site-specific analysis, as anticipated by the Biological Opinion, but also the failure to implement new standards even at the time of renewal of grazing permits, are actions by the Forest Service which may effect (sic) the owl and its habitat.  The Forest Service’s failure to reconsult is therefore contrary to the provisions of the ESA.

 

C.     Incidental Take Statements.

 

         1.       Ninth Circuit Holds Invalid Incidental Take Statement Issued Without Site-Specific Analysis.  Arizona Cattle Growers Assn. v. U.S. Fish and Wildlife Service, 273 F.3d 1229 (9th Cir. 2001).

 

         Case Summary

 

         This is a significant opinion that could have broad ramifications for how the federal government protects endangered and threatened species under section 7 of the ESA. The Ninth Circuit held that the FWS may not issue an incidental take statement (ITS) in connection with a biological opinion unless it can prove that a take will occur or is reasonably certain to occur.  Furthermore, the court held that the FWS can only prove that a take will occur when there is evidence that the listed species in question occupies the specific area of land to which the ITS applies.  Finally, the court held that, while the FWS need not precisely quantify the level of incidental take that is authorized, it nevertheless must articulate a connection between the amount of authorized incidental take and the impacts of the activity, and provide clear guidelines for determining when the level of take has been exceeded.

 

         Plaintiffs challenged the FWS’ issuance of ITSs associated with two “no jeopardy” biological opinions.  The FWS prepared these biological opinions in connection with the Bureau of Land Management’s (BLM’s) and U.S. Forest Service’s (USFS’) authorization of cattle grazing on BLM and national forest land allotments in Arizona.  The BLM biological opinion evaluated the impacts of cattle grazing on twenty species of plants and animals on 288 allotments covering 1.6 million acres.  The USFS biological opinion examined the impacts of cattle grazing on several species on 962 allotments.  However, the lawsuit only challenged the ITSs issued for two of the BLM allotments, and 22 of the USFS allotments.  Plaintiffs argued that the FWS’ issuance of ITSs for these allotments was arbitrary and capricious because: (1) the FWS did not prove that the species in question actually existed on these allotments and that take therefore was reasonably certain to occur, and (2) the terms and conditions of the ITSs were so vague and non-specific as to make compliance impossible.

 

         The Ninth Circuit agreed, upholding the district court’s decision, on cross-motions for summary judgment, invalidating all of the challenged ITSs.  The Ninth Circuit first rejected the FWS’ argument that “take” should be construed more broadly in the context of section 7 than in the context of section 9.  The court held that the structure of the ESA and its legislative history clearly evidence Congress’ intent to enact one standard for “take,” and that applying a broader definition of “take” in the context of section 7 “would allow the Fish and Wildlife Service to engage in widespread land regulation even where no Section 9 liability could be imposed.”

 

         The court also rejected the FWS’ argument that it should be permitted to issue an ITS whenever it is possible or likely that take will occur in the future.  Again, the Court felt that Congress had spoken to the precise question at issue, interpreting section 7(b)(4) of the ESA to require the FWS to make a predicate finding that take will occur or is reasonably certain to occur before it can issue an ITS.  According to the court, the mere “potential” for harm is insufficient.  The court then invalidated all but one of the ITSs in question on the ground that the FWS had failed to make the necessary showing of that incidental take would occur or was reasonably certain to occur.  In all except one case, the FWS had not proven that the species actually existed on the allotments.  The court dismissed the contention that the FWS should be able to issue an ITS if the land is capable of supporting the species, stating that the ESA’s mechanism for protecting unoccupied habitat is the critical habitat designation process.  The court rejected the argument that the Arizona Cattle Growers should be required to prove that the species does not exist on the permitted area, both because this would require them to meet the agency’s burden of proof, and because they would be required to prove a negative.

 

         The court invalidated the final ITS on a different basis.  The court held that, while section 7(b)(4) does not require an ITS to include a numerical limit on the level of authorized take, where no such numerical limit is specified, the FWS must show that it could not practicably be obtained.  Where habitat conditions are used as a surrogate for defining the amount or extent of authorized incidental take, the FWS must demonstrate a causal link between the impacts of the activity and the level of authorized take of species before establishing conditions on such take.  In this case, the court held, the FWS had not articulated a connection between a general requirement to improve habitat conditions and the level of incidental take that would occur.  In addition to the FWS’ failure to make this showing, the court held that the FWS’ vague analysis left the issue of compliance to the wildlife agency’s “unfettered discretion,” and did not allow the applicant or the federal action agency to gauge their own compliance.

 

         Analysis

 

         Some argue that the Arizona Cattle Growers case alters the standard for proving a violation of section 9, requiring a dispositive showing that take will in fact occur. Although there is some language in the opinion to support this contention, a careful reading of the opinion reveals that the court’s holding is not nearly so sweeping.  In fact, the court explicitly stated that the FWS is not required to provide evidence of an actual taking incident to the proposed land use.  Id. at 1243.  The court also upheld the district court’s ruling that an ITS is “appropriate only when take has occurred or is reasonably certain to occur.”  Id. at 1240; see also id. [“[a]bsent an actual or prospective taking under section 9, there is not situation that requires” an ITS]; id. at 1243 [before FWS can issue ITS, it must establish that take is reasonably certain to occur] (emphasis added). 

 

         The court cited with approval National Wildlife Federation v. Defenders of Wildlife, 23 F.3d 1508 (9th Cir. 1994), in which the Ninth Circuit held that a plaintiff may obtain injunctive relief to enforce the take prohibition by establishing a reasonable likelihood of a future violation.  Id. at 1511.  Finally, the decision turned in part upon an interpretation of section 7(b)(4), which only authorizes an ITS when  the Service concludes that the federal agency action and the “resultant” incidental take will not violate section 7.  Arizona Cattle Growers, 273 F.3d at 1242.  Thus, it is questionable whether the court’s reasoning can be applied to section 9 violations more generally.

 

         However, the decision will likely have an adverse effect on section 7 consultations.  Under the reasoning of the case, the Services will now be required to make some kind of showing that take will or is reasonably certain to occur on the particular land in question.  Given the broad geographic scope of many section 7 consultations (particularly those involving public land - such as the millions of acres involved in this case) and the agencies’ lack of resources to conduct site-specific review, such site-specific analysis will be difficult at best.  Instead, the Serivces may opt not to issue any ITS at all, leaving species unprotected by any mitigation measures or other conditions on implementation of the federal agency action. The opinion does leave the Services with one other option: issuance of a jeopardy opinion based on cumulative effect of the federal agency action as a whole, which would require the parties involved to implement reasonable and prudent alternatives to the entire action.  Ironically, such an approach could end up restricting land uses to a greater extent than would the issuance of a generic ITS.

 

         2.       California District Court Enjoins Use of Navy Sonar Based on Invalid Biological Opinion: Natural Resources Defense Council v. Evans, __ F. Supp. 2d __ (N.D. Cal. 2002); 2002 WL 31445165.

 

         Case Summary

 

         In a highly significant opinion, the U.S. District Court for the Northern District of California preliminarily enjoined the U.S. Navy’s use of Low Frequency Active Sonar (LFAS), which the Navy had approved for use in as much as 75% of the world’s oceans.  LFAS sends out intense low frequency sonar pulses that travel hundreds of miles in order to detect quiet enemy submarines.  Plaintiffs claimed that the approval of this new technology by the Navy and the National Marine Fisheries Service (NMFS) would cause irreparable injury to a host of marine mammals and other sea creatures, many of which are threatened and endangered, in violation of the Marine Mammal Protection Act, National Environmental Policy Act and Endangered Species Act (ESA).  This summary focuses on the district court’s ESA holding.  Plaintiffs raised three arguments as to why the Navy’s and NMFS’ approval of LFAS violated the ESA: (1) the biological opinion’s conclusion that LFAS would not destroy or adversely modify designated critical habitat was based on an illegal regulation; (2) the incidental take statement (ITS) in the biological opinion did not properly estimate the amount or extent of incidental take; and (3) the biological opinion’s conclusion that LFAS will not jeopardize the continued existence of listed marine species or destroy or adversely modify designated critical habitat was arbitrary and capricious and contrary to the best available science.  The court agreed with the plaintiff’s first two arguments and did not reach the third argument.

 

         With respect to the first argument, the court agreed with the Fifth Circuit’s holding in Sierra Club v. U.S. Fish and Wildlife Service, 245 F.3d 434 (5th Cir. 2001), in which the Court held that the regulatory definition of “destruction or adverse modification” of critical habitat illegally required consultation only where an action may affect the value of critical habitat for both species survival and recovery.  Instead, the Fifth Circuit held, the ESA requires consultation where an action may affect a species’ recovery prospects alone.  The district court found that, while the Fifth Circuit’s decision was not binding in the Ninth Circuit, its reasoning was “cogent and persuasive.”  The district court agreed with plaintiffs that NMFS had improperly relied on this illegal regulation in concluding that LFAS was unlikely to adversely affect critical habitat for the Steller sea lion, Hawaiian monk seal, and northern right whale.  Therefore, the court held, NMFS had failed to examine whether LFAS was likely to adversely affect the recovery of these species, even if LFAS would not affect their survival.

 

         Next, the court held that NMFS’ ITS was inadequate, for several reasons.  First, relying on Arizona Cattle Growers Assn. v. U.S. Fish and Wildlife Service, 273 F.3d 1229 (9th Cir. 2001), the court stated that NMFS was required to include a trigger that, when reached, would result in an unacceptable level of incidental take, thereby invalidating the “safe harbor” from section 9 liability and requiring the parties to reinitiate consultation.  Ideally, this trigger should be numeric, but where a numeric trigger is infeasible, the agency must establish that “no such numerical value could be practically obtained.” 

 

         Here, the court held that NMFS had made “no attempt at all to estimate the incidental take of threatened and endangered species,” and instead sought to defer such estimate until it issued annual letters of authorization for implementation of LFAS in specific regions and for specific species.  The court held that NMFS could not simply assert that it was impracticable for it to issue an ITS without more information about the times and locations of planned operations.  Rather, NMFS was required to establish, with supporting evidence, “that it would have been impractical to have included an ITS specifying the amount [or] the extent of the incidental take,” and that even where numerical values are impractical, an ITS “must include some surrogate for defining the amount or extent of incidental take.”  Since NMFS’ biological opinion for LFAS did not contain any evidentiary justification for its failure to include an ITS, the biological opinion violated the ESA.

 

         The court also held invalid NMFS’ supplemental biological opinion, which addressed the proposed letter of authorization for implementation of LFAS from August 16, 2002 through August 15, 2003.  While the supplemental biological opinion did include an ITS, it was incomplete because it did not attempt to estimate the numbers of Hawaiian monk seals, Pacific gray whales, and endangered and threatened sea turtles and salmon that might be taken.  The court held that NMFS failed to provide any evidence that it was impractical to obtain numeric estimates of take of these species.  Instead, NMFS had skipped “to the next step,” arguing that it had provided an adequate surrogate for estimating the level of incidental take.  In Arizona Cattle Growers, the Ninth Circuit held that the “use of ecological conditions as a surrogate for defining the amount or extent of incidental take is reasonable so long as these conditions are linked to the take of the protected species.”  273 F.3d at 1250. 

 

         Here however, NMFS had not attempted to link changes in environmental conditions to the taking of listed species.  Rather, “[i]nstead of estimating the incidental take, defendants essentially state that a taking of any individual of that species within the [2 km] LFA mitigation zone and buffer zone will be considered too much.”  The court held that

 

At first blush, it may appear that by setting [the] trigger at one animal, defendants satisfied the purpose of the ITS, even without attempting to provide an actual estimate of the likely amount of the incidental take.  On closer inspection, however, defendants’ limitation of the trigger to an animal taken within the 2 km mitigation and buffer zone defeats the purpose of an ITS and lacks a rational causal connection because it excludes most of the takes that will occur.  Just the other side of the 2 km border, the received level of LFA sonar is 173 dB, at which about 70-75 percent of the exposed animals would be taken.  And at forty miles away, the received level is still as high as 165 dB, at which 50 percent of exposed animals would be taken.  Yet, the causal connection to these takes is ignored under defendants’ ITS for these species.  Instead, defendants’ approach focuses solely on where the take occurs, not whether it was caused by LFA sonar.

 

         Thus, the court held that plaintiffs were likely to prevail on their argument that both the initial biological opinion and supplemental biological opinion violated the ESA.  Accordingly, the court issued a preliminary injunction.  However, the court held that the scope of the injunction should be narrowly tailored in light of the Navy’s arguments that a total ban on the use of LFAS would pose a hardship and in light of the public’s “compelling interest in protecting national security by ensuring military preparedness and the safety of those serving in the military from attacks by hostile submarines.” 

 

         The court ordered the parties to meet and confer on the precise terms of the preliminary injunction, keeping in mind the court’s admonition that the injunction should reduce the risk to marine mammals and endangered species “by restricting the sonar’s use in additional areas that are particularly rich in marine life, while still allowing the Navy to use this technology for testing and training in a variety of oceanic conditions.”  Additionally, the court ordered the preliminary injunction to extend the coastal buffer zone beyond 12 nautical miles in certain areas; to include additional, interim Biologically Important Areas; and to restrict sonar use in certain parts of the ocean and during certain seasons when marine mammals and endangered species are more likely to be present.

 

         Analysis

 

         This case is especially noteworthy for its concurrence with the Fifth Circuit’s reasoning in Sierra Club v. FWS that the regulatory definition of adverse modification of critical habitat is unlawful.  This issue has not yet been addressed by the Ninth Circuit.  The NRDC case is also noteworthy for its reliance on the Arizona Cattlegrowers case to invalidate an ITS that contained inadequate protections for listed species.  In contrast, the Arizona Cattlegrowers court applied the same reasoning to invalidate an ITS that contained more protections for listed species than the court felt could be justified under the facts of that case.  The NRDC case also contrasts with the Arizona Cattlegrowers case in that the parties do not appear to have addressed a threshold issue adjudicated by the Arizona Cattlegrowers court: whether an ITS could be justified at all.  In Arizona Cattlegrowers, the Ninth Circuit invalidated several ITS’s because the FWS had failed to establish that take would or was reasonably certain to occur based on the presence of listed species in the specific area in question.  In NRDC, it appears that the presence of listed species, and whether LFAS was reasonably certain to take listed species, was not in dispute.

 

D.     Substantive Challenges to Section 7 Consultations.

 

       1.     Biological Assessments.

 

         a.       Ninth Circuit Invalidates Biological Assessment for Timber Sale: Native Ecosystems Council v. Dombeck, 304 F.3d 886 (9th Cir. 2002).

 

         Case Summary

 

         This case involves a section 7 challenge to a timber sale on national forest lands in Montana.  The district court granted summary judgment for the federal defendants, and the Ninth Circuit reversed, holding that the U.S. Forest Service (USFS) failed adequately to analyze the cumulative effects of the sale under NEPA and did not comply with section 7 of the ESA.  The proposed sale involved 2.1 million board feet of timber on 226 acres on the boundary of Yellowstone National Park in the Gallatin National Forest.  The area is home to numerous endangered species and other wildlife.

 

         Plaintiffs challenged the adequacy of the Forest Service’s biological assessment (BA) for the proposed timber sale with respect to its evaluation of the impacts of the sale on grizzly bears.  In particular, plaintiffs alleged that the USFS and the U.S. Fish and Wildlife Service arbitrarily restricted the scope of the “action area” evaluated in the BA.  The ESA section 7 regulations require the action area to include all areas directly or indirectly affected by the proposed federal agency action, not just the immediate area.  In this case, the area did not include a sheep grazing allotment adjacent to the proposed sale.  The BA acknowledged that bears would likely be displaced by the proposed sale, but did not analyze the effects of the grazing allotment on the displaced bears.  The record established that grazing allotments are bear “population sinks” because bears that attempt to forage in these areas are routinely killed by livestock owners.  Instead of including the sheep grazing allotment in the “action area,” the Forest Service selected a “bear management subunit” that was originally designed to address the effects of motorized access on bear habitat.

 

         The Court agreed with plaintiffs that the BA’s exclusion of the sheep grazing allotment from the action area analyzed in the BA was arbitrary and capricious because there was no indication in the record “that the Forest Service considered which areas would actually be affected by the sale (by determining, for instance, where displaced bears might wander).”  Moreover, the USFS did not attempt to correlate the area it chose to analyze in the BA with the definition of “action area” in the ESA regulations.  The BA contained no discussion of scientific methodology, relevant facts, or rational connections linking the potential impacts of the sale with the boundaries of the bear management subunit.  Instead, the USFS’ decision to restrict its analysis to this area was “presented as a conclusion, without support.”  Thus, the USFS failed to establish that it considered the relevant factors in reaching its decision to restrict the action area to the bear management subunit.

 

         Analysis

 

         This case re-emphasizes the importance of federal agencies selecting an action area for purposes of a BA and biological opinion that is defensible and makes biological sense.

 

         b.       First Circuit Denies Preliminary Injunction to Halt Navy Training Exercises Alleged to Harm Endangered Species: Water Keeper Alliance v. U.S. Dept. of Defense, 271 F.3d 21 (1st Cir. 2001).

 

         Case Summary and Analysis

 

         In a somewhat narrow decision, the First Circuit Court of Appeals denied a preliminary injunction to halt Navy training exercises on the island of Vieques.  The plaintiffs challenged the Navy’s training exercises as a violation of section 7 of the Endangered Species Act (ESA), on the ground that the Navy had failed to prepare a biological assessment (BA) for exercises undertaken between August 2000 and December 2001.  The plaintiffs’ challenge was limited to this time frame because the Navy had already prepared a BA and initiated formal consultation with the U.S. Fish and Wildlife Service (USFWS) with respect to its long-term training operations, which consultation was pending at the time the court rendered its decision.  Additionally, the Navy had initiated, and the USFWS had completed, formal consultation on the training exercises for the interim period.  Plaintiffs’ sole argument, then, was that the Navy had violated section 7 by failing to prepare a BA prior to initiating formal consultation for the interim period.

 

         The Court held that the Navy was not required to prepare a BA, because the training exercises did not qualify as a “major construction activity” triggering the need to prepare a BA.  In reaching this conclusion, the Court relied on the federal wildlife agencies’ joint section 7 implementing regulations, and not the ESA itself.  Section 402.12(b) of the regulations limit the requirement to prepare a BA to “major construction activities,” but section 7 itself contains no such limitation.  (Cf. 50 C.F.R. § 402.12(b) and 16 U.S.C. § 1536(c).)

 

         In determining what qualifies as a “major construction activity,” the Court looked to the National Environmental Policy Act (NEPA), which defines the analogous term “major federal action” in part as an action requiring preparation of an environmental impact statement (EIS).  Plaintiffs argued that, because the Navy had prepared an EIS for its long-term training exercises, the interim exercises similarly should qualify as “major” activity.  The Court rejected this argument, holding that because no EIS had in fact been prepared for the interim training exercises, and because these exercises were materially different from the long term exercises analyzed in the prior EIS (utilizing no live ordnance), the interim exercises did not constitute a “major construction activity.”

 

         The Court further held that, even assuming the interim exercises did qualify as a “major construction activity” requiring preparation of a BA, the “consultation package” the Navy had submitted to the USFWS to initiate formal consultation on the interim exercises could qualify as the “functional equivalent” of a BA.  The Court observed that, under the section 7 implementing regulations, the contents of a BA are discretionary, and that the Navy’s consultation package contained much of the discretionary contents specified in the regulations.  The Court did not find the Navy’s failure to consider two available scientific studies, or its failure to complete several ongoing long-term studies, sufficient reason to conclude that the consultation package was inadequate, at least at the preliminary injunction stage of the proceedings.

 

         Finally, the Court held that plaintiffs had not adequately established the potential for irreparable harm.  The Court distinguished this case from Tennessee Valley Authority v. Hill, 437 U.S. 153 (1978), on the ground that here, unlike the situation in TVA v. Hill, there was a “serious question” as to whether plaintiffs would prevail on the merits.  Thus, the Court held, it was proper for the district court to require plaintiffs to “show potential for irreparable harm apart from the harm that they argue is inherent in a procedural violation of the ESA’s consultation requirements.”  (271 F.3d at 34.)  In this case, the Court felt that plaintiffs had only pointed to “vague concerns” as to long term damage to the species from the interim activities.  (Id.) 

 

         However, there are at least two problems with the Court’s reasoning regarding the inappropriateness of injunctive relief in this case.  First, the Court’s apparent holding that procedural harm alone may not be sufficient to warrant the granting of an injunction is inconsistent with the Ninth Circuit’s approach to procedural harm under the ESA.  (See Thomas v. Peterson, 753 F.3d 754, 764 [“[g]iven a substantial procedural violation of the ESA in connection with a federal project, the remedy must be an injunction of the project pending compliance with the ESA”] (emphasis added).)  Similarly, the Water Keeper Court’s holding is in tension with the courts’ approach to procedural harm in the NEPA context.  Because NEPA is a purely procedural statute, the requisite harm is always the failure to follow the requisite procedures.  (See Sierra Club v. Marsh, 872 F.2d 497, 500 (1st Cir. 1989).)

 

         Second, the Court seemed to be insisting on a heretofore unprecedented level of proof, contrary to the U.S. Supreme Court’s admonishment in TVA v. Hill that species protection is to be given the “highest of priorities,” and the balance of hardships always tips in favor of protecting endangered species.  This species-protective principle is designed to be applied in situations where the precise consequences to species are somewhat in doubt.  It is in just these kinds of situations where the exercise of caution is most required, before irreparable harm is done.  Yet, the Court stated that “[i]n the absence of a more concrete showing of probable deaths during the interim period and of how these deaths may impact the species, the district court’s conclusion that Water Keeper has failed to show potential for irreparable harm was not an abuse of discretion.”  (271 F.3d at 34 [emphasis added].)  This is arguably a higher standard for injunctive relief than is required even under section 9, which does not necessitate a showing of death to individual members of the species; rather, a showing of injury to species’ breeding, feeding or sheltering activities may suffice.  (See 50 C.F.R. § 17.3.)

 

         The next passage of the opinion is perhaps revelatory of the real motivations underlying the Court’s decision – and a foreshadowing of how courts may be inclined to address endangered species issues in a military context post-September 11.  The Court specifically rejected plaintiffs’ argument, based on TVA v. Hill, Strahan v. Coxe, 127 F.3d 155 (1st Cir. 1997) and National Wildlife Federation v. Burlington Northern R.R., 23 F.3d 1508 (9th Cir. 1994), that Congress has already pre-determined that the balance of hardships and public interest weighs heavily in endangered species’ favor and takes precedence over federal agencies’ “primary missions.”  The Court stated that “[w]hile these precedents direct us to give endangerment of species . . . the utmost of consideration, we do not think that they can blindly compel our decision in this case because the harm asserted by the Navy implicates national security and therefore deserves greater weight than the economic harm at issue in Strahan.”  (271 F.3d at 34.)  The Court declined to consider plaintiffs’ arguments that the training exercises in question did not use live ordnance (and therefore were less important for “military preparedness”), or that alternative sites could be used to provide the same training opportunities with fewer impacts to species.  Instead, the Court found the district court’s deference to the Navy’s judgment appropriate, notwithstanding “that these arguments could have some merit.”  (Id. at 35.)

        

2.     Biological Opinions.

 

         a.       New Mexico District Court Holds Biological Opinion for Endangered Fish Species Inadequate; Orders Release of Water to Prevent Extinction of Such Species: Rio Grande Silvery Minnow v. Keys, __ F.Supp.2d __ (D. N.M. 2002), Case No. Civ. 99-1230JP/RLP, Mem. Op. and Findings of Fact and Concl. Of Law.

 

         Case Summary

 

         In an opinion that has generated significant press and political fallout, the District Court for the District of New Mexico has invalidated a biological opinion (BO) issued by the U.S. Fish and Wildlife Service (USFWS).  The BO found that continued operation of a Bureau of Reclamation (Bureau) water project on the Rio Grande River would jeopardize the endangered silvery minnow, but did not include any reasonable and prudent alternatives (RPAs) to such operation.  The court chastised the Bureau and the USFWS for creating a crisis situation and for failing to consider reasonable options for preventing jeopardy that the court previously had indicated were available (namely, reducing deliveries to water districts served by the project and making releases from the Heron Reservoir).  Despite a serious drought, the Bureau had continued to make full contract deliveries to the water districts and had allowed the lower reaches of the Rio Grande to run dry, which the USFWS found would likely result in the extinction of the silvery minnow.

 

         The court stated that “[t]here appears to be no precedent, and the parties have presented none, for a Court to affirm a BO that has a finding of jeopardy with no RPA, especially where a Court has signaled an agency that it has discretionary authority that it previously had not considered using, and the agency then continued to refuse to utilize that authority without adequate explanation.”  The court observed that the agencies’ (especially the Bureau’s) continued footdragging had limited available options, and allowed the silvery minnow to continue its downward spiral to extinction.  The court held that “[w]hile it is acceptable under the ESA for the federal agencies to consider the interests of others besides an endangered species if they can at the same time avoid jeopardy to the endangered species, it is not allowable for agencies to give paramount weight to the interest of others when by doing so they have no proposal to avoid jeopardy.” 

 

         The court held that the agencies’ remedy was to invoke the “God Squad,” a seven-member cabinet-level committee that has authority to decide whether a federal agency action may cause a species to go extinct.  In the meantime, the court ordered the Bureau to release water for the endangered fish consistent with an earlier biological opinion, pending reinitiation of consultation with the USFWS and issuance of a new BO that includes RPAs which avoid jeopardy, or alternatively, pending an exemption from the God Squad.

 

         The case is now on appeal to the Tenth Circuit Court of Appeals, which has granted a stay of the district court’s decision pending a ruling on the merits.

 

         b.       Massachusetts District Court Upholds Biological Opinion Closing Atlantic Longline Fishery to Protect Listed Sea Turtle: Blue Water Fishermen’s Association v. National Marine Fisheries Service, __ F.Supp.2d __ (D. Mass 2002); 2002 WL 3129801.

 

         Case Summary

 

         An association representing pelagic longline fishermen sued the National Marine Fisheries Service (NMFS), seeking to enjoin NMFS regulations, promulgated pursuant to the Magnuson Stevens Act, closing off their access to certain Atlantic Ocean fisheries to protect the endangered leatherback sea turtle and threatened loggerhead sea turtle.  The closure was based on a NMFS biological opinion which concluded that continued operation of the Atlantic pelagic longline fishery would jeopardize the continued existence of the leatherback and loggerhead sea turtles.  Plaintiffs challenged the biological opinion on the ground that it ignored the best available science and arbitrarily concluded that longline pelagic fishing would cause jeopardy to the turtles.  Plaintiffs also argued that NMFS had arbitrarily and capriciously singled out long line fishing over other activities that harmed listed sea turtles, and that NMFS’ closure arbitrarily assigned the full burden of species recovery to the longline fishermen.  The court rejected all of these arguments and granted summary judgment in favor of NMFS.

 

         First, the court held that NMFS did not ignore the best available scientific and commercial information in arriving at its jeopardy conclusion.  Rather, the court stated, NMFS considered the opinions of each expert peer reviewer, and while it disagreed with one expert, it nevertheless altered the study to reflect the peer reviewers’ suggestions.   Moreover, NMFS’ conclusions plausibly followed from the data before it.  The court noted that an agency’s conclusion “need not be airtight or indisputable,” and that a court “may not champion a competing interpretation of the data over the agency’s conclusion that finds support in the record.”

 

         The court also rejected plaintiff’s substantive challenge to the biological opinion.  Plaintiffs first argued that the opinion’s jeopardy finding was arbitrary and capricious because NMFS applied its jeopardy analysis to all subpopulations of leatherback sea turtles, one of which was not listed under the Endangered Species Act (ESA).  The court held that “[r]easoned, scientific analysis support[s] NMFS’ conclusion that the continued loss of turtles in significant numbers to pelagic longline bycatch would leave a permanent dent in the loggerhead species.”  The court stated that it was not permitted to second-guess NMFS’ analysis.  Plaintiffs also argued that NMFS’ jeopardy finding was arbitrary and capricious because “the longline fishing industry is just one small contributor to the jeopardy of the leatherback and loggerhead turtle populations.”  The court held that, to pass muster under the ESA’s section 7 regulations, NMFS’ jeopardy finding “did not have to single out the pelagic longline fishery as the predominant activity jeopardizing the listed turtle populations.”  Rather, NMFS need only have found that pelagic longline fishing, together with other cumulative effects, would jeopardize the species, which is precisely what NMFS did in this case.

 

         Finally, the court rejected plaintiffs’ argument that the fishery closure required them to shoulder a disproportionate share of the burden of recovering the sea turtles.  Plaintiffs had cited no applicable authority in support of this argument.  The court found plaintiffs’ citation to Bennett v. Spear, 520 U.S. 154, 176-177 (1997), inapposite, stating that it does not stand for the proposition that agencies may not impose undue burdens on industry in implementing the ESA.  Rather, the court explained, Bennett simply requires decisions under the ESA to be grounded in hard science through application of the “best available science” requirement, in order to avoid “needless economic dislocation” that follows from unaccountable regulation.  The court found that the biological opinion amply met the best available science requirement.  Furthermore, the court noted, “[i]f the plaintiffs’ logic prevailed, recovery efforts under the ESA could never proceed incrementally, as the first party to suffer the adverse effect of a recovery effort could resist regulation on grounds of differential treatment.”  The court stated that “[n]othing in the ESA forecloses piecemeal or incremental pursuit of the goal of species protection.”

 

         c.       Oregon District Court Enjoins Timber Sales Based on Invalid Biological Opinion: Cascadia Wildlands Project v. U.S. Fish and Wildlife Service, 219 F.Supp.2d 1142 (D. Or. 2002).

 

         Case Summary and Analysis

 

         The court in this case enjoined several timber sales on national forest lands in Oregon, holding that plaintiffs had established a likelihood of success on the merits of their claim that the biological opinion for such sales was arbitrary and capricious.  The U.S. Fish and Wildlife Service’s biological opinion for the proposed timber sales concluded that the timber sales would not jeopardize the continued existence, or result in take, of any bull trout.  Plaintiffs argued that this biological opinion was invalid because the FWS failed to: ensure that the timber sales would comply with the aquatic conservation strategy (ACS) in the Northwest Forest Plan; rely on the best scientific evidence available in determining the impacts of the timber sales on bull trout; and analyze cumulative impacts of timber harvesting activities on private lands in the same watershed.

 

         As a threshold matter, the FWS contended that the “no jeopardy” opinion was not a final agency action subject to judicial review under the Administrative Procedures Act.  The FWS argued that, unlike the no jeopardy opinion found reviewable in Pacific Coast Federation of Fishermen’s Associations, Inc. v. National Marine Fisheries Services, 265 F.3d 1028 (9th Cir. 2001), this biological opinion did not authorize take, and therefore had no legal consequences.  The court disagreed, holding that the opinion did have legal consequences because the U.S. Forest Service could use the no jeopardy conclusion to defend its future actions.

 

         The court next held that plaintiffs were likely to succeed on the merits of their challenge to the biological opinion, because the opinion did not analyze whether the timber sales would comply with the ACS objectives.  For example, the court observed, the opinion did not examine the effect of short-term watershed degradation caused by the timber sales, or the consequences of an increase in road density, within the context of ACS objectives.  The court rejected the FWS’ assertion that its failure to analyze these impacts was reasonable because there were no bull trout or suitable bull trout habitat in the immediate vicinity of the proposed harvests.  The court noted that bull trout were five to twelve miles from the timber harvests, and road reconstruction would occur in areas adjacent to potential bull trout habitat.  The court stated that “[s]ince the construction, reconstruction, and use of roads associated with timber sales have been identified as major causes of the decline of bull trout, historically, it seems incongruous for the FWS to conclude that those activities, occurring as they will in the vicinity of potential bull trout habitat, will have no likelihood of causing harm to the bull trout.”

 

         Accordingly, the court granted a preliminary injunction, finding substantial issues as to whether FWS “may ignore the specific terms and conditions it previously has deemed necessary to impose . . . to protect endangered species,” and as to whether the FWS properly concluded that the timber sales were not located in the vicinity of any bull trout or bull trout habitat.

 

         d.       California District Court Upholds Section 7 Consultation for Port Dredging and Berthing Project: San Francisco Baykeeper v. U.S. Army Corps of Engineers, 219 F.Supp.2d 1001 (N.D. Cal. 2002).

 

         Case Summary and Analysis

 

         In this case, the court rejected plaintiffs’ section 7 challenge to a ship dredging and berthing project initiated by the Port of Oakland and authorized by the U.S. Army Corps of Engineers (Corps) in San Francisco Bay.  The dredging project proposed to deepen the Port channels and berths, to allow large container ships to enter the Port.  This project was proposed and funded jointly by the Port and the Corps.  The berthing project was proposed independently by the Port, and involved four new container berths, two new cargo terminals, and a shoreline park.  In order to complete the later project, however, the Port needed a dredge and fill permit from the Corps under section 404 of the Clean Water Act.  The harbor modifications were necessary to accommodate the new generation of container cargo ships.  The key concern was whether the projects would increase the probability of invasive species—i.e., unwanted "exotic marine and freshwater organisms"—being introduced into waters of San Francisco Bay through the discharge of the ships' ballast water.  The Corps had concluded that the projects, taken together, would actually decrease that risk. 

 

         Pursuant to section 7 of the ESA, the Corps consulted with both the U.S. Fish and Wildlife Service (FWS) and the National Marine Fisheries Service (NMFS) regarding the impacts of both projects on listed species.  The FWS issued a “no jeopardy” biological opinion with respect to both projects.  NMFS, on the other hand, engaged in informal consultation on the dredging project, concluding that the project was not likely to adversely affect any listed species or critical habitat, and issued a no jeopardy biological opinion regarding the berthing project.

 

         Plaintiffs contended that neither the FWS nor NMFS complied with their substantive obligations to ensure no jeopardy to listed species pursuant to section 7(a)(2) of the ESA.  Specifically, plaintiffs challenged the adequacy of the agencies= assessment of the projects= effects on the distribution of invasive species in the San Francisco Bay-Delta ecosystem, in a number of respects.  First, plaintiffs argued that the agencies improperly limited the scope of their analyses to the immediate vicinity of the proposed projects.  The court rejected this argument, holding that “[p]laintiffs’ proposed methodology would require the agencies to assess the indirect effects that changed shipping patterns at the Port of Oakland would have on all listed species in the Bay-Delta ecosystem, or potentially, the West Coast of the United States.  Such an analysis would require a degree of speculation not contemplated by section 7 of the ESA, which focuses on actions that are ‘likely to jeopardize’ the continued existence of listed species.”

 

         Plaintiffs next argued that the agencies arbitrarily based their analyses on the volume of ballast water discharged without considering other factors that may affect the extent of the projects= effects on listed species, such as time in transit, discharge location, and the risks associated with hull fouling.  The court agreed that these other factors were not considered in detail, but found that the agencies had reasonably relied on ballast water volume to quantify the highly uncertain effects that changes in shipping patterns would have on the Bay-Delta ecosystem, and to support their no jeopardy conclusions.  These conclusions were based on an assumption that the amount of ballast water discharged in port would decrease on account of a port ordinance requiring open ocean ballast water exchanges.  The court reasoned that “[b]ecause it was reasonable to emphasize ballast water volume over other less quantifiable factors, it was also reasonable to conclude that decreases in the volume of ballast water discharged would decrease the likelihood of jeopardy to listed species.”

 

         The court also rejected plaintiffs’ separate challenge to the NMFS no jeopardy finding for the berthing project.  The court held that NMFS did not violate section 7 by considering the impacts of the berthing project in conjunction with the dredging project because the ESA requires NMFS to evaluate the effects of the project together with the effects of interrelated or interdependent actions.  (The court did not explain however, how the dredging project was in fact interrelated or interdependent with the berthing project.)  Nor did NMFS violate section 7 by concluding that open ocean ballast water exchanges are “an appropriate and effective means for reducing the adverse ecological impact of invasive species.”  The court noted that open ocean exchange is the only currently available management tool to reduce the risk of introduction of invasive species through ballast water discharges.  (This of course begs the question whether this management tool is actually effective in mitigating the impacts of invasive species introduction.)

 

         In sum, the court concluded that “[f]aced with great uncertainty regarding the mechanisms of introduction, establishment, and dispersal of invasive species, the agencies reasonably declined to speculate as to what specific effects changed shipping patterns at the Port of Oakland might have.”  The court’s reasoning turns the precautionary principle of the ESA entirely on its head -- if the effects of a project are speculative or uncertain, there is no basis for a no jeopardy finding.  The court also found that the agencies reasonably concluded that the total amount of ballast water discharged would decrease relative to the Ano project@ alternative, and that open ocean exchanges would further decrease the risk of unintentional introduction of invasive species.

 

         Finally, the court rejected plaintiffs’ argument that the Corps violated its duty to conserve listed species under section 7(a)(1) of the ESA by failing to develop a Bay and delta wide conservation program for protecting species affected by ballast water discharges.  Relying on Pyramid Lake Paiute Tribe v. U.S. Dept. of the Navy, 898 F.2d 1410 (9th Cir. 1990), the court held that the Corps has broad discretion in carrying out its obligations under section 7(a)(1), so long as it satisfies its no jeopardy obligation under section 7(a)(2).  Thus, the Corps was entitled to rely on the FWS’ and NMFS’ no jeopardy findings when carrying out its section 7(a)(1) duties. 

 

         This holding fundamentally misconstrues the scope and extent of the Corps’ obligations under section 7(a)(1), conflating them with its duties under section 7(a)(2).  These two sections of the ESA impose separate and distinct obligations, with the former being broader and more extensive than the latter.  Unlike section 7(a)(2), section 7(a)(1) does not just apply with respect to a particular federal agency action, but requires each federal agency to affirmatively undertake comprehensive conservation programs for listed species, and to administer all of its projects and programs with species conservation firmly in mind.  See Sierra Club v. Glickman, 156 F.3d 616 (5th Cir. 1998).

 

         e.       Arizona District Court Holds No Jeopardy Biological Opinion Inadequate: Center for Biological Diversity v. Rumsfeld, 198 F. Supp. 2d 1139 (D. Ariz. 2002).

 

         Case Summary

 

         Plaintiffs sued the U.S. Fish and Wildlife Service (FWS) and the Department of the Army (Army) for violating section 7 of the Endangered Species Act (ESA), alleging that the final biological opinion for the Army’s activities at Fort Huachuca, Arizona, was arbitrary and capricious.  Among other requested relief, plaintiffs sought a declaration that the Army’s operations were likely to jeopardize the Huachuca water umbel (a semi-aquatic plant) and the southwestern willow flycatcher, and were likely to adversely modify or destroy their designated critical habitat, in violation of the Army’s substantive obligations under section 7 of the ESA.

 

         Plaintiffs alleged that the final biological opinion (BO) was inadequate because it did not include any specific, enforceable measures to control development or groundwater pumping resulting from the Army’s activities at Fort Huachuca.  The BO was based on a memorandum of agreement (MOA) between the Army and the FWS, and was intended to cover the Army’s activities for a ten year period.  The MOA and BO required the Army to develop a water resource management plan for the fort, and to participate in the development of a regional water management plan for the entire San Pedro River watershed in conjunction with a regional planning organization.

 

         The draft BO had included a number of measures to implement the MOA, which required the Army to undertake specific and quantifiable tasks to mitigate long term impacts to species and habitat both on base and in the region, and to be a leader in the effort to solve the region’s growth and water supply problems.  However, the final BO substituted general and qualitative species and habitat protection goals, and did not require the Army to undertake a leadership role in solving regional growth and water supply issues.  Instead, the Army was to prepare a water supply management plan for on base activities, and participate in developing the regional water supply management plan, within three years.  The “no jeopardy” conclusion in the final BO was based entirely upon the assumption that these regional efforts would be promptly and successfully implemented, and upon development of these future plans to address long term threats to species and critical habitat.

 

         The court held that the FWS’ final BO, and the Army’s reliance thereon, was arbitrary and capricious, finding no factual or rational basis in the record to support the BO’s “no jeopardy” conclusion.  The court noted that the FWS and the Army could not rely on unspecified future plans to prevent adverse impacts to the listed species and critical habitat and thereby support a no jeopardy opinion.  Rather, BO must include the plans themselves, or include specific, measurable performance standards and guidelines by which to measure the success of future plans, and remedial measures to address the long-term consequences of the agency action in question.

 

         In essence, what the FWS had done was improperly segment the agency action analyzed in the BO.  The court analogized this case to Conner v. Burford, in which the Ninth Circuit held that the FWS and the Mineral Management Service had violated the ESA in failing to analyze all phases of an oil and gas lease.  The agencies could not ignore the future aspects of the federal action by segmenting that action into phases.  Similarly here, the agencies had violated the ESA by failing to issue a comprehensive biological opinion covering both short term and long term consequences of the Army’s activities at Fort Huachuca.  The court distinguished Swan v. Turner, in which the court upheld a  biological opinion that envisioned future ESA evaluations at the developmental stages of specific projects.  In that case, unlike the instant case, the BO included specific standards and guidelines to protect species and habitat in the subsequent phases. 

 

         The court rejected the agencies’ argument that an annual review requirement, combined with the Army’s obligation to reinitiate consultation if mitigation measures prove ineffective, relieved the FWS of its obligation to issue a comprehensive BO at this time.  The court held that the FWS was required to consider the effects of the Army’s ongoing and planned operations at Fort Huachuca over the next ten years “based on the best scientific evidence available today, not three years from now.”  The court stated that, “[e]ssentially, the FWS has attempted to sidestep its obligation to make an accurate ‘no jeopardy’ decision based on the best available evidence and seeks to postpone, for three years, this assessment which must be made as part of the process of issuing the final BO.  This it cannot do.” 

 

         The court also held that the Army had violated its substantive section 7 obligations by relying on the final BO.  The court reasoned that the Army “knew of the need to take immediate and drastic measures to maintain flows in the San Pedro River,” but refused to commit to specific mitigation measures and instead relied on the FWS’ “arbitrary and capricious determination that its action was not likely to cause jeopardy.”  The court thus found the Army’s action likewise was arbitrary and capricious.

 

         f.       D.C. District Magistrate Holds That Commercial Fishing Association Entitled to Copy of Draft Biological Opinion: Hawaii Longline Association v. National Marine Fisheries Service, __ F. Supp. 2d __, 2002 WL 732363 (D.D.C. 2002).

 

         Case Summary

 

         The Hawaii Longline Fishing Association challenged the National Marine Fisheries Service’s (NMFS’) preparation of a final biological opinion for the Fishery Management Plan for Pelagic Fisheries of the Western Pacific Region pursuant to section 7 the Endangered Species Act (ESA).  Plaintiff argued that NMFS violated the ESA by excluding it from participating in the consultation process.  Among other things, NMFS’ section 7 implementing regulations require the agency to review all relevant information submitted by the “applicant,” and discuss the agency’s analysis and grounds for the biological opinion with the applicant.  50 C.F.R. § 402.14(d), (g).  The parties cross-moved for summary judgment, presenting two key legal issues for decision: (1) whether plaintiff and its members are “applicants” within the meaning of the section 7 regulations; and (2) whether an applicant is entitled to review and comment on the draft biological opinion.  The case was referred to a magistrate judge for a report and recommendation to the district judge.

 

         The magistrate judge concluded that plaintiff was an “applicant,” and that it was entitled to a draft BO.  The judge refused to defer to NMFS’ interpretation of its regulations because it found that interpretation was merely a post-hoc litigation position that did not reflect the agency’s “fair and considered judgment.”  Furthermore, the agency’s litigation position was inconsistent with its prior interpretation of the regulations.  The judge found NMFS’ earlier interpretation to be far more convincing, noting that the preamble to the final regulations states that the term “applicant,” as used in the section 7 regulations, is to be broadly construed. 

 

         In addition, the judge noted, NMFS’ section 7 consultation handbook states that a user of public resources who is a party to a discrete federal agency action (such as a successful bidder on a timber sale) is considered an “applicant” within the meaning of the section 7 regulations.  The judge believed the longline fishermen’s position to be analogous to that of a successful bidder on a timber sale, because the fishermen had already obtained licenses to fish from NMFS under the Magnuson Act, and these licenses would be directly affected by implementation of the Fishery Management Plan at issue.  Furthermore, the judge found that NMFS’ attempt to limit applicant status to consultations over a specific permit or license “contradicts the unambiguous and broad language of its regulations.”

 

         The judge rejected NMFS’ arguments that the longline fishermen could not be applicants under the FMP because NMFS was solely responsible for approving the plan, and because plan approval is distinct from other aspects of plan implementation.  The judge held that NMFS’ narrow interpretation of the term “applicant” unduly restricted the scope of the agency action in question, directly contradicting the handbook’s statement that actions requiring federal agency approval “involves the approval of a permit or license . . . together with the activities resulting from such permission.”  Moreover, NMFS had previously defined the proposed action as involving both management and operation of the fishery pursuant to the FMP.  The judge stated that “[t]he clear intent of the section 7 regulations is to allow input from those who are directly affected by ESA consultations.  It would undermine this intent to deny a party such a voice based on a technical distinction over the scope of the agency action.”  Thus, the judge concluded, the agency action at issue should include both management and operation of the fishery and plaintiff should be deemed an applicant for purposes of section 7.

 

The judge held, however, that applicant status only should be afforded to the plaintiff, and not to the Western Pacific Fishery Management Council, which is responsible for preparation of the FMP under the Magnuson Act.  The judge noted that the Council is a very different entity than the plaintiff organization, because it was created under the Magnuson Act and is treated like a federal agency for certain purposes.  In any event, the judge stated, it was beyond his authority to decide the question whether the Council should likewise be accorded applicant status.

 

         The judge next turned to the question whether NMFS was obligated to share a draft BO with the plaintiff applicant.  The section 7 regulations require NMFS to discuss its “review and evaluation,” the basis for any finding in the BO, and the availability of reasonable and prudent alternatives if a jeopardy opinion is to be issued.  The regulations also require NMFS to provide a copy of the draft BO to the federal action agency, but authorize the applicant to request a copy of the draft BO from the federal action agency.  Again, the judge did not defer to NMFS’ current interpretation of its regulations because this was inconsistent with NMFS’ earlier interpretation.  Relying on the earlier interpretation, the judge concluded that NMFS’ present position was insupportable, and that the language of the regulations, though ambiguous, indicates that the release of the draft BO to an applicant “was intended to be automatic.”  Further, NMFS offered no legitimate policy justification for why a draft BO should be released to the federal action agency and not to the applicant. 

 

         Though NMFS argued that such release would cause undue delays in the preparation of BOs, the judge did not find this persuasive.  The judge stated that “[o]ne way or another, NMFS must make the time and tailor the process accordingly.”  The judge also rejected the argument that release of the draft BO would compromise the agency’s internal discussions, because NMFS staff could still communicate behind closed doors prior to release of the draft BO.  The judge analogized the process to preparation of a draft environmental impact statement under the National Environmental Policy Act.

 

         Accordingly, the judge recommended that NMFS release a draft of its forthcoming BO to the plaintiffs and provide them with a fourteen day comment period.

 

Section 7 and NEPA:   Eleventh Circuit Holds NEPA Documentation Adequate to Satisfy ESA’s Section 7 Consultation Requirements.  Sierra Club v. Army Corps of Engineers, 295 F.3d 1209 (11th Cir. 2002).

 

         Case Summary

                                                                                

         Plaintiff Sierra Club sued the Army Corps of Engineers (Corps) and the Florida Department of Transportation to halt construction of the Suncoast Parkway, a 41.6 mile, four lane tollroad, on the ground that the Corps failed comply with section 7 of the Endangered Species Act (ESA).  The Corps initially had engaged in formal consultation on sixteen different alternatives to the project with the U.S. Fish and Wildlife Service (FWS) in 1993.  The FWS issued a no jeopardy biological opinion and accompanying incidental take statement with respect to the eastern indigo snake.  In August 1994, the Corps, the Federal Highway Administration and the Florida Department of Transportation issued a final environmental impact statement (EIS) selecting the location for the parkway among the sixteen alternatives and establishing an informal partnership between the Corps and several other state and federal agencies involved in project planning and implementation.  Subsequently, this group of agencies determined to realign and shorten the roadway in order to reduce its impacts on wetlands, and developed a wetland and wildlife mitigation plan for the project. 

 

         In August 1996, the Florida Department of Transportation submitted to the Corps four applications for dredge and fill permits for each segment of the parkway.  The Corps published a separate public notice on each permit application, but treated them as single permit application for purposes of section 7 consultation.  The Corps initiated informal consultation with the FWS and prepared environmental assessments (EAs) on these applications.  The FWS and the EAs concluded, based on the 1993 biological opinion and 1994 EIS, that the project was not likely to jeopardize the eastern indigo snake.  In December 1997, the Corps issued a finding of no significant impact (FONSI) and a single dredge and fill permit for the entire parkway project.

 

         Plaintiff argued that the Corps’ issuance of a permit was arbitrary and capricious because the Corps had failed to prepare a biological assessment (BA) for the project as originally proposed, and failed to prepare a supplemental EIS (SEIS) and new BA after the road’s alignment was changed.  The court rejected both of these arguments, observing that the ESA specifically provides that the BA requirement can be fulfilled by preparing an EIS under NEPA, provided the EIS discusses the project’s impact on threatened and endangered species.  Thus, the court held that the Corps satisfied its duty to prepare an initial BA by acting as a cooperating agency in preparing the 1994 EIS, participating in the development of the mitigation plan, and incorporating the 1993 biological opinion and 1994 EIS into its subsequent EAs.  The court acknowledged that the Corps would have been required to prepare a supplemental EIS or a BA if new information became available, or it became clear that the project’s impact on listed species had not been fully evaluated.  However, this was not the case here and the Corps did not act arbitrarily or capriciously in determining that no SEIS or BA was required.

 

         The court also held that the Corps did not need to prepare an SEIS or new BA on the new road alignment, because the changed alignment “did not create a new project,” but rather “altered the exiting project in such a way as to further minimize its environmental impact.”  The court further noted that the realigned parkway was entirely within the study area of the 1994 EIS, and that the environmental impacts of the changed alignment already had been addressed in that document.  The court also summarily rejected the Sierra Club’s claims that the Corps arbitrarily and capriciously: relied on the FWS’ 1993 no jeopardy determination, failed to initiate formal consultation on the project’s impacts on other listed species, and relied on the action area as defined in the 1994 EIS.  The court held that plaintiff had not met its burden of rebutting the presumption of regularity of agency action.  Although not specifically discussed in the court’s reasoning, the court’s decision seemed to be influenced at least in part by plaintiff’s failure to participate in the administrative process.  In summarizing the facts of the case, the court repeatedly noted that Sierra Club had not commented on any of the six public notices the Corps had issued in connection with this project.

 

 

F.       Section 7(d): Ninth Circuit Refuses to Enjoin Ongoing Cattle Grazing Pending Section 7 Consultation: Southwest Center for Biological Diversity v. U.S. Forest Service, 307 F.3d 964 (9th Cir. 2002).

 

         Case Summary

 

         Plaintiffs sued the U.S. Forest Service (USFS), seeking to enjoin cattle grazing on certain national forest lands pending the USFS’ consultation with the U.S. Fish and Wildlife Service (USFWS).  Consultation was required to determine the effects of grazing on the threatened loach minnow and other listed species on three national forest grazing allotments.  The district court refused to grant an injunction, finding that plaintiffs had not made a sufficient showing of irreparable harm.  Plaintiffs appealed, arguing that the court was required to enjoin all grazing activities pursuant to sections 7(a)(2) and 7(d) of the ESA.  Plaintiffs asserted that an injunction is mandatory given a substantial procedural violation of the ESA.  (The question whether the USFS had violated section 7 of the ESA was not at issue on appeal.)

 

         The Ninth Circuit Court of Appeals affirmed the district court’s denial of injunctive relief.  The court cited the U.S. Supreme Court’s landmark ruling in Tennessee Valley Authority v. Hill, 437 U.S. 153 (1978), holding that the ESA’s forecloses a court’s traditional equitable discretion in determining whether to grant injunctive relief.  Nevertheless, the Ninth Circuit held that “a violation of the ESA does not always lead to the automatic issuance of an injunction.”  Rather, the court stated, the test for determining whether injunctive relief is appropriate is “whether an injunction is necessary to effectuate the congressional purpose behind the statute.”  (Citing Biodiversity Legal Foundation v. Badgley, 284 F.3d 1046 (9th Cir. 2002).) The moving party also must establish a likelihood of success on the merits, and make “the requisite showing of irreparable injury.”

 

         The court held that the plaintiffs had not made a sufficient showing of irreparable injury under the factual circumstances of that case.  In so holding, the court distinguished this case from Thomas v. Peterson, 753 F.3d 754, 764 (9th Cir. 1985), in which the Ninth Circuit held that “[g]iven a substantial procedural violation of the ESA in connection with a federal project, the remedy must be an injunction of the project pending compliance with the ESA.”  The court found that Sierra Club v. Marsh, 816 F.3d 1376 (9th Cir. 1987), carves out a narrow exception to that rule for “non-jeopardizing” activities that are not precluded by section 7(d), and that this case met that exception.  Section 7(d) prohibits federal agencies and permit applicants from making an irreversible and irretrievable commitment of resources that would foreclose the formulation and implementation of reasonable and prudent alternatives and measures, pending section 7 consultation on a federal project.

 

         Here, the evidence established that continued cattle grazing would not adversely impact the loach minnow and would not cause an irreversible and irretrievable commitment of resources.  The district court had found that the USFS had implemented mitigation measures to ensure that cattle grazing would have little, if any impact on the loach minnow pending section 7 consultation.  For example, cattle had been excluded from riparian areas, and these areas were being monitored.  Indeed, the Ninth Circuit noted, there was evidence in the record that conditions for the loach minnow were actually improving given the protective measures that were being undertaken.  Furthermore, the court stated, “[t]his case is not one where once the action is initiated there can be no turning back,” like timber harvesting or cases where the action in question “will unquestionably make it unlikely that the species will survive.”  In contrast, cattle grazing is not irreversible because it is “flexible and can be altered during the [consultation] process if necessary.”

 

         The court also distinguished this case and Marsh from the Thomas case on the ground that, in the latter case, there was nothing from which the federal agency or the court could determine how the activity affected the species in question.  By contrast, here as in Marsh, there was “evidence in the record for the court to review the impact on the species during the consultation period.”

 

         The court emphasized that “[w]e do not hold today that in all cases where there has been a procedural violation during the consultation phase injunctive relief is not appropriate.  Instead, we limit our holding to the facts of this case.”  The court held that certain errors committed by the district court were merely harmless, and that its factual findings that continued grazing would not violate section 7(d) were not clearly erroneous.

 

         Finally, the court held that plaintiffs’ section 7 challenge was not moot, and rejected intervenor Arizona Cattle Growers’ challenge to the adequacy plaintiffs’ sixty-day notice letter.

 

         Justice Canby issued a persuasive dissent, reasoning that Marsh and Thomas preclude the district court from making an interim biological finding that a federal action will not harm listed species, and thereby deny injunctive relief.

 

         Analysis

 

         It is unclear what actions besides cattle grazing will fit within the court’s newfound “non-jeopardizing activities” exception to section 7(d).  Is this exception limited to ongoing activities that can be altered like cattle grazing or dam operation?  Or is it even broader in scope?  If so, what other kinds of activities are included?

 

         Even a narrow construction of this exception seems inconsistent with the purpose of sections 7(a)(2) and 7(d), as well as the court’s prior cases.  The agency action at issue was the USFS’ authorization of cattle grazing on federal lands.  The purpose of section 7(d) is to maintain the status quo pending section 7 consultation.  The court’s ruling allows the entire action to go forward pending consultation, based on the district court’s conclusion that the action would not jeopardize the loach minnow.  But, as Justice Canby points out in his dissent, this is a conclusion only the USFWS and USFS can reach after completion of the section 7 consultation process.  The court’s opinion thus puts the cart before the horse and allows the court to substitute its judgment for the agency’s.  Section 7(d) is intended to supplement, not weaken, the requirement of section 7(a)(2) that the agency action not be taken until consultation is completed.

 

         Moreover, the ruling ignores the fact that ongoing activities still can have significant impacts.  Even if one takes it at face value that on-site conditions actually were improving in this case, such “improvements” were only measured relative to whatever degraded baseline conditions then existed, but not relative to the species’ overall prospects for survival and recovery.  In other words, the “improvement” was actually a reduced rate of degradation, which may or may not have ensured no jeopardy to the loach minnow.  Complete cessation of cattle grazing would have ensured that any further degradation of baseline conditions would be avoided pending consultation, thus preventing any activities which might foreclose reasonable and prudent alternatives that would not jeopardize the species or adversely modify or destroy designated critical habitat, consistent with section 7(d).

 

         Additionally, section 7(d) is designed not only to prevent foreclosure of alternatives that would prevent jeopardy, but also mitigation measures to avoid or mitigate the effects of take of individual members of the species.  Therefore, the fact that a particular activity may be “non-jeopardizing” does not necessarily mean it is permissible under section 7(d).

 

         Finally, it is very hard to reconcile this opinion with court’s recent decision in Biodiversity Legal Foundation v. Badgley, 248 F.3d 1046 (9th Cir. 2002), as well as Thomas v. Peterson, and Sierra Club v. Marsh.