# Record and brief — Crow Tribe of Indians v. Environmental Protection Agency

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Record and brief
- **Published:** January 1, 1981
- **Citation:** 454 U.S. 1081

## Text

uonned

Office Suoreme Court

81-312 FILED

No. AUG 17 198)
—
In THE 61

Supreme Court of the United States

OCTOBER TERM, 1981

Crow TRIBE OF INDIANS, MONTANA
Marcus L. NANCE, NANCE CATTLE Co.,
PEABODY COAL Co., THERMAL ENERGY, INC.,
WESTMORELAND RESOURCES, INC.,

. Petitioners
EViRONMENTAL PROTECTION AGENCY,
Respondent

PETITION FOR A WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

URBAN BEAR DON’T WALK WILLIAM A. WHITE
301 N. 27th Street Counsel of Record
Billings, Montana 59101 GEORGE J. MILLER
(406) 259-3080 DECHERT PRICE & RHOADS
Attorney for Petitioner 888 Seventeenth Street, N.W.
Crow Tribe of Indians, Washington, D.C. 20006
Montana (202) 872-8600
TERRY O’CONNOR Attorneys for Petitioner
12015 E. 46th Avenue Westmoreland Resources, Ine.
Denver, Colorado 80239 WILLIAM E. MuURANE
(303) 371-7990 PAUL D. PHILLIPS
Attorney for Petitioner HOLLAND & HART
Peabody Coal Co. P.O. Box 8479
Denver, Colorado 80201
(303) 575-8000
Attorneys for Petitioners
Marcus L. Nance,
Nance Cattle Co., and
Thermal Energy, Inc.
August 17, 1981

WILSON - EPES PRINTING Co.. INC. - 789-0096 - WASHINGTON. D.C. 20001

QUESTIONS PRESENTED

1. Was it not arbitrary and capricious for the En-
vironmental Protection Agency to ignore Indian tribe
and coal mining company objections to the designation
of a Class I area under the Clean Air Act on the theory
that the designation would not affect coal mining under
its then-current regulations, where EPA had reason to
know when it acted that coal mining would be adversely
affected by the designation under the 1977 Amendments
to the Act which had already passed both houses of
Congress and were awaiting Presidential signature?

2. Where the principal impact of the Class I designa-
tion on petitioners’ mining operations will occur in the
future, do not the preclusion of judicial review provi-
sions of the 1977 Clean Air Act Amendments require
the Court of Appeals to remand the proceedings to the
Envirormental Protection Agency for consideration of
the effect which the 1977 Amendments would have on
surface coal mining near the Northern Cheyenne Re-
servation?

3. Did the Environmental Protection Agency breach
the federal government’s fiduciary obligations to the
Crow Tribe of Indians in approving the redesignation
of a clean air area adjacent to Crow Tribe land without
considering the objections of the Crows that the re-
designation would adversely affect their ability to mine
coal on their land?

(i)

ii

PARTIES TO THE PROCEEDING IN THE COURT
WHOSE JUDGMENT IS SOUGHT TO BE REVIEWED

Amax Coal Co.

Crow Tribe of Indians, Montana

Environmental Protection Agency

ITT Resources
*Montana Power Co.

Marcus L. Nance

Nance Cattle Co.

Northern Cheyenne Tribe
*Pacific Power & Light Co.
Peabody Coal Co.

Portland General Electric Co.
*Puget Sound Power & Light Co.
Thermal Energy, Inc.

» Washington Water Power Co.
Westmoreland Resources, Inc.

* Parties dismissed after settlement agreement.

+ Peabody Holding Co., Washington Energy Co., and Westmore-
land Coal Co. are the parent companies of petitioners Peabody Coal
Co., Thermal Energy, Inc., and Westmoreland Resources, Inc.,
respectively. Penn-Virginia Corp. is an affiliate of Westmoreland
Coal Co. and Westmoreland Resources, Inc.

TABLE OF CONTENTS

Page
D . 1
9 8 2
Statutes and Regulations Involved 2
, ereeatsneethcniniaieingneleiin 3
Reasons for Granting the Writ 6
8c 17
% — ò[—— — la

(iii)

iv

TABLE OF AUTHORITIES CITED

Cases Page
Adamo Wrecking Co. v. United States, 434 U.S.
// 11
Alabama Power Co. v. Costle, 636 F.2d 323, 369-
. ee ae 7,8
Brandt v. Hickel, 427 F.2d 53, 57 (9th Cir. 1970) .. 16
Cramer v. United States, 261 U.S. 219 (1923)...... 14

Kawasaki Motors Corp. v. Train, No. 74-1697 (9th
Cir. August 9, 1974), cert. denied, 420 U.S. 926

n 12
Manchester Band of Pomo Indians, Inc. v. United

States, 363 F. Supp. 1238 (N. D. Cal. 1973) 14
Menominee Tribe v. United States, 101 Ct. Cl. 10

( 14
Moser v. United States, 341 U.S. 41 (1951) ............ 16
Oljato Chapter of Navajo Tribe v. Train, 515 F.2d

. 11. 12
Pyramid Lake Paiute Tribe of Indians v. Morton,

354 F. Supp. 252 (D. D.C. 1973) 14
Seminole Nation v. United States, 316 U.S. 286, 296

- | v 13. 14

Union Electric Co. v. Environmental Pro. Agcy.,
515 F.2d 206 (8th Cir. 1975), aff'd, 427 U.S. 246

EEE Re ST AE ETS, SRT na Te Pe ED 12
United States v. Creek Nation, 295 U.S. 103
aS ARTE AS PRES ne eon Nee aa oe TOE 14
United States v. Georgia-Pacific Company, 421
F.2d 92, 100 (9th Cir. 1970) 16
United States v. Lazy FC Ranch, 481 F.2d 985, 988
e SAREE tea 16
Statutes & Regulations
Administrative Procedure Act:
J SEER — 2-3, 10
Clean Air Act:
42 U.S.C. § 7401-7642 (Supp. III 1979) 2,8,
10, 12

42 U.S.C. § 7607 (b) (Supp. III 1979) 10-11

V

TABLE OF AUTHORITIES CITED—Continued

28 U.S.C. §1254(1) (1976) .............. — 2
t 2,8
OR ee 2,3
ee? fk . 1
42 Fed. Reg. 40,695, 40,697 (1977) 4, 5, 15
45 Fed. Reg. 52,676, 52,693 (1980 8
Administrative Rules of Montana § 16.8.822

— eines 8
[1980] Montana Administrative Register 2402,

2430 I 8-9

Miscellaneous

Comments of Westmoreland Resources, Inc. to the
Environmental Protection Agency (May 25,

—— itatinbintidinieeateia daniel aati 4,9
Gelhaus, Northern Cheyenne Reservation Diffusion
Modelling Analysis (1977) 9

Letter from James A. Joseph, Undersecretary of
the U.S. Department of the Interior, to Douglas

Costle, EPA Administrator (June 23, 1977)...... 5, 15
Terziev, PSD: New Regulations and Old Problems,
5 Harv. ENvr'L. L. REv. 130 (1981777777 3

Treaty with the Crows, 15 Stat. 649 (1868) 14

IN THE

Supreme Court of the United States

OCTOBER TERM, 1981

No.

Crow TRIBE OF INDIANS, MONTANA
Marcus L. NANCE, NANCE CATTLE Co.,
PEABODY COAL Co., THERMAL ENERGY, INC.,
WESTMORELAND RESOURCES, INC.,

2 Petitioners

EVIRONMENTAL PROTECTION AGENCY,
Respondent

PETITION FOR A WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

Petitioners Crow Tribe of Indians, Montana,
Marcus L. Nance, Nance Cattle Co., Peabody Coal
Co., Thermal Energy, Inc. and Westmoreland Resources,
Inc. pray that a writ of certiorari issue to review the
decree of the United States Court of Appeals for the
Ninth Circuit in these consolidated cases.

OPINIONS BELOW

The opinion of the Court of Appeals is reported at 645
F.2d 701 (9th Cir. 1981) and appears at pp. la-35a of
the Appendix. The decision of the Environmental Pro-
tection Agency Administrator was published at 42 Fed.
Reg. 40,695 (1977), was codified at 40 C.F.R. § 52.1382
(1980), and appears at pp. 36a to 45a of the Appendix.

2

JURISDICTION

The judgment of the Court of Appeals was entered
on May 18, 1981 and appears at p. 3la of the Appendix.
The jurisdiction of this Court is invoked under 28 U.S.C.
§ 1254(1) (1976).

STATUTES AND REGULATIONS INVOLVED

This case raises questions concerning the Clean Air
Act of 1970, Pub. L. No. 91-604, 84 Stat. 1676 (1970),
both before and after the enactment of the Clean Air
Act Amendments of 1977, Pub. L. No. 95-95, 91 Stat.
685 (1977), and concerning EPA’s interpretation of the
Act. The Clean Air Act, as amended, is now codified
at 42 U.S.C. §§ 7401-7642 (Supp. III 1979). The text
of the Act, in pertinent part, is set out in the Appendix
at pp. 46a-66a.

EPA’s regulatory interpretations of the Act are set
forth in the Code of Federal Regulations, 40 C. F. R.
§ 52.21 (1977); and 40 C.F.R. §51.24 (1980), as
amended by 45 Fed. Reg. 52,729-35 (1980). The text
of these regulations, in pertinent part, is set out in the
Appendix at pp. 82a-106a.

Section 10(e) of the Administrative Procedure Act,
5 U.S.C. § 706 (1976) provides, in pertinent part:

To the extent necessary to decision and when pre-
sented, the reviewing court shall decide all relevant
questions of law, interpret constitutional and statutory
provisions, and determine the meaning or applica-
bility of the terms of an agency action. The review-
ing court shall—

* * * *

(2) hold unlawful and set aside agency ac-
tion, findings, and conclusions found to be—

(A) arbitrary, capricious, an abuse of
discretion, or otherwise not in accordance
with law;

3

(B) contrary to constitutional right,
power, privilege, or immunity;

(C) in excess of statutory jurisdiction,
authority, or limitations, or short of statu-
tory right; [or]

(D) without observance of procedure re-
quired by law.

STATEMENT OF THE CASE

In 1976, the Northern Cheyenne Tribe of Indians
proposed to tighten the air quality classification of its
reservation from Class II to Class I under the Environ-
mental Protection Agency’s (EPA’s) 1974 Prevention
of Significant Deterioration (PSD) regulations.“ The
Chairman of the Crow Tribe and the surface mining

140 C.F.R. § 51.24 (1977). The PSD Programs involved in this
litigation were designed to prevent significant deterioration of air
quality in areas already meeting the National Ambient Air Quality
Standards (NAAQS). See generally Terziev, PSD: New Regula-
tions and Old Problems, 5 Harv. ENvt'L. L. REV. 130 (1981). EPA’s
1974 PSD Program was court-mandated. The Clean Air Act was
then amended to incorporate a statutory PSD program in 1977.
Major new and modified sources, as now defined in the Clean Air
Act, located in areas which comply with the NAAQS (attainment
areas) must show that they will not contribute to a violation of
either a NAAQS or exceed the increment by which levels of par-
ticulate matter or sulfur dioxide (SO,) may increase over pre-
existing or “baseline” levels. EPA’s PSD regulations employ a
classification system under which all attainment areas originaily
were designated Class II. Class II designation permits moderate
increases in particulate matter and SO, concentration above the
pre-existing levels. States, federal land managers and Indian gov-
erning bodies were empowered to redesignate their territories as
either Class I or Class III subject to the approval of EPA. A
Class I designation would permit substantially smaller increases in
air pollution than would a Class II designation. Consequently, few
if any new industrial facilities could be constructed in or near a
Class I area. A Class III designation would permit increases up to
the NAAQS.

4

petitioners objected to EPA’s approval of this reclassifi-
cation because of a concern that the proposed stringent
Class I requirements would unduly limit their ability
to mine coal on nearby coal land owned or leased by
them. The Northern Cheyenne Tribe and EPA dismissed
petitioners’ objections, taking the position that EPA’s
then-current PSD regulations, promulgated under the
existing Clean Air Act, would not affect mining opera-
tions. Before EPA finally approved the Northern Chey-
enne redesignation in 1977, however, Congress had passed
and sent to the President amendments to the Clean Air
Act which EPA has interpreted in its 1980 PSD regula-
tions to expand the PSD program to constrain seriously
coal mining operations like those of petitioners.

Petitioners had argued to EPA that the reclassifica-
tion would affect their operations under these pending
statutory amendments, and had requested deferral of
EPA action on the redesignation. Comments of West-
moreland Resources, Inc. to EPA (May 25, 1977), App.
at 112a. Nonetheless, even when presidential signature
on the 1977 Amendments was imminent, EPA continued
to insist that “strip mines . . . would not be directly
affected by a redesignation.” 42 Fed. Reg. 40,695, 40,697
(1977). The redesignation took effect on a Friday after-
noon, two days before the 1977 Amendments were signed
by the President. Thus, petitioners were and are faced
with having a Class I area neighboring their coal lands
and with EPA’s interpretation of the 1977 Amendments.
Contrary to EPA’s assurances in 1977, the Class I de-
signation does, under the Agency’s current interpretation
of the Amendments, have serious adverse consequences
on petitioners’ operations.

In the course of the redesignation approval process,
EPA not only ignored the objections of Indian and non-
Indian surface mining petitioners that they would be
affected; it also relied on technicalities to disclaim any

5

fiduciary obligation to the affected Crow Tribe to look
at the actual impacts on them. EPA found that a protest
of the Crow Tribal Chairman and of the attorney for
the Crow Tribe was not a protest of the Tribe itself
requiring review of tribal objections on the merits. 42
Fed. Reg. 40,697 (1977). Moreover, EPA ignored the
request of Undersecretary Joseph of the Department of
the Interior that EPA review the redesignation on the
merits to insure that the responsibility of the United
States to the conflicting interests of the Crow and North-
ern Cheyenne Tribes would be met. Letter from James
A. Joseph, Undersecretary of the U.S. Department of the
Interior, to Douglas Costle, EPA Administrater (June 23,
1977), App. at 113a.

The Court of Appeals found that [a]s a result of the
letters from the Undersecretary of the Interior, and the
Crow Tribe, and the failure of EPA to respond to those
letters before approving the redesignation, the responsi-
bility to exercise those fiduciary obligations is fairly
placed upon the EPA.” 645 F.2d at 711. The court also
found that EPA, in ignoring the Tribe’s objections to
the proposed redesignation, had not breached the govern-
ment’s fiduciary obligation to the Crow Tribe only be-
cause the Agency insisted that the Crows would not be
adversely affected by the Class I designation. The court
below sustained EPA’s approval of the redesignation
over surface mining petitioners’ and Tribal objections
even though it found that [t] he conclusion is . . . com-
pelled that on the date the EPA finally approved the
redesignation, it knew that the 1977 Clean Air Amend-
ments would be passe“ and signed into law.” App. at
lla; 645 F.2d at 707, 708 (9th Cir. 1981) (emphasis
added).

While petitioners are now seriously constrained in
their mining activities by the Class I designation, even
more serious harm may be suffered by them in the

future. Because the judicial review provisions of the
Clean Air Act may preclude a later review of the Class I
designation, important questions of the timing of the
review of the redesignation under the Clean Air Act
Amendments and the discharge of the government’s
fiduciary obligations to the Crow Tribe are presented
by these rulings. They require resolution by this Court
if petitioners are not to be deprived of the right to mine
coal on their lands without the protections of a rule-
making proceeding in which the actual impacts of the
redesignation on energy development are fully consid-
ered by EPA.

REASONS FOR GRANTING THE WRIT

EPA’s approval of the Class I redesignation on the
ground that it “would not” affect petitioners under exist-
ing law, when EPA had good reason to believe that peti-
tioners would be affected under the already enacted 1977
Amendments to the Clean Air Act, contrasted with
EPA’s later interpretation of the 1977 Amendments
which constrain wining substantially, raises novel and
fundamental questions relating to the conduct of admin-
istrative agencies. Novel and fundamental questions are
also raised by the Court of Appeals’ ruling against pe-
titioners based on EPA’s assurances that its PSD regu-
lations would not affect mining, when the judicial review
provisions of the Act may preclude later judicial review
of the Class I designation under EPA’s current regula-
tory interpretation, which severely constrains mining.
These questions have not been, but should be, decided by
this Court. If this Court does not issue a Writ of Cer-
tiorari now, the Indian tribe and surface mining peti-
tioners’ rights to have EPA consider their objections to
the actual impacts of a Class I redesignation may be lost
forever. EPA could not later change the designation
even if it so desired, unless the Northern Cheyenne them-

7

selves initiated another redesignation proceeding. More-
over, the Crow Tribe’s property rights will have been
affected without proper discharge of the fiduciary obliga-
tions of the United States.

I. IT IS ARBITRARY AND CAPRICIOUS FOR AN
ADMINISTRATIVE AGENCY TO AVOID DEALING
WITH PETITIONERS’ OBJECTIONS TO A PRO-
POSED ACTION ON THE THEORY THAT THE
ACTION WOULD NOT AFFECT PETITIONERS,
WHERE THE AGENCY KNEW WHEN IT AP-
PROVED THE PROPOSAL THAT PETITIONERS
MIGHT BE AFFECTED UNDER A STATUTORY
AMENDMENT WHICH HAD ALREADY PASSED
BOTH HOUSES OF CONGRESS AND WAS AWAIT-
ING PRESIDENTIAL SIGNATURE.

A. Petitioners Face Significant Hardship Because a
Class I Designation Imposes Immediate Adverse
Consequences for Surface Coal Mining Under the
1977 Amendments to the Clean Air Act.

Petitioners’ problem with EPA's actions is straight-
forward. The Agency approved the creation of a Class I
area in the midst of their coal reserves and coal mining
operations on the theory that this action would not affect
petitioners, when EPA has interpreted the 1977 Amend-
ments to constrain seriously petitioners’ mining activities.

The Court of Appeals’ position that petitioners may
not be injured because it is not now clear whether peti-
tioners’ coal mines will be subjected to pre-construction
review, Alabama Power Co. v. Costle, 636 F.2d 323, 369-
370 (D.C. Cir. 1979), is no answer to petitioners’ claim that
they will be affected by the Class I designation under
EPA’s interpretation of the 1977 Amendments. The
presence of this Class I area is having, and will continue
to have, serious effects on coal mining operations whether
or not pre-construction PSD review is required.

8

Whether or not petitioners’ mines are subject to pre-
construction review, they will remain subject to the
most stringent, Class I, PSD requirements if the North-
ern Cheyenne redesignation remains in effect. Petitioners
are affected, first, because EPA interprets the Act to
mean that the PSD increment? can be consumed by
fugitive dust. 45 Fed. Reg. 52,693 (1980). Class I
PSD increments are ceilings on ambient air quality.
If the increment is consumed, state permitting of sur-
face mine operations must become more restrictive.
For example, once the increment over the Northern
Cheyenne Reservation is consumed, under EPA’s present
regulations Montana must revise its state implementation
plan to protect the increment and correct any violation.
40 C.F.R. § 51.24 (a), (e) (1980); App. at 82a, 96a. EPA
ean force the state to adopt the “severe correctives of a
rollback in operation or the application of retrofit air
pollution control technology” to cure such a violation.
Alabama Power, 636 F.2d at 363. These effects occur
whether or not coal mines are required to obtain pre-
construction PSD permits.

Further, whether or not coal mines are required to
obtain pre-construction PSD permits, petitioners will be
encumbered by the visibility protection requirements of
the Montana state implementation plan. Montana’s strict
visibility rules apply automatically to this particular
Class I area, thereby restricting the range of possible
uses for nearby lands.“

2 In a Class I area, the maximum allowable increase of particulate
matter over pre-existing levels is 5 micrograms per cubic meter
(1 microgram is one-millionth of a gram). 42 U.S.C. § 7473(b) (1)
(Supp. III 1979); App. at 48a.

Administrative Rules of Montana § 16.8.822 (1980); [1980]
Montana Administrative Register 2402, 2430. Westmoreland Re-
sources objected to this requirement in comments to the Board of
Health and Environmental Services of the State of Montana (March
14, 1980). The State’s response effectively dismissed this objec-

EPA’s interpretation of the 1977 Amendments is that
particulate emissions from surface coal mines, whether
fugitive or not, will consume the Class I increment. Air
quality modeling of surface coal mines completed for the
Northern Cheyenne during the redesignation proceeding
shows that a mine located within fifteen kilometers of
the reservation is likely to consume all of the increment
for particulate matter. Gelhaus, Northern Cheyenne
Reservation Diffusion Modeling Analysis 1. Many of
petitioners’ properties are well within that distance.

On August 5, 1977, the day EPA approved the re-
designation, the 1977 Clean Air Act Amendments had
passed Congress and were sitting on President Carter’s
desk awaiting his signature. The Agency was aware of
the potential effects of these Amendments on petitioners
since petitioners had pointed them out to EPA. Com-
ments of Westmoreland Resources, Inc. to EPA (May 25,
1977); App. at 107a. Yet, EPA continued to act as
though the only impacts on petitioners would be those
under its 1974 regulations. EPA’s unequivocal statement
on August 5 that surface mining “would not“ be affected
by a redesignation had to be false when made. And,
after passage of 1977 Amendments, EPA proceeded to
realize petitioner’s worst fears by interpreting the
Amendments to produce severe adverse consequences for
surface coal mining on nearby lands.

B. Since EPA Knew It Was Likely That Petitioners
Would be Affected, It Was Required to Consider
Their Comments.

Since petitioners were likely to be adversely affected
by the Class I redesignation, they had a right to partici-
pate in the rulemaking and have EPA consider their

tion, but the State decided to apply automatically the strict visibil-
ity rules in the future only to Class I areas in which visibility is
deemed an important value. [1980] Montana Administrative Regis-
ter at 2430.

10

comments. 5 U.S.C. § 553 (1976). Petitioners on several
occasions had informed EPA of the joint impact of the
redesignation and the 1977 Amendments on surface
mining, and submitted comments which EPA continually
ignored. After Congress passed the 1977 Amendments,
EPA had a duty to reconsider its earlier flat statement
that coal mining “would not” be affected. Nonetheless,
it did not do so. Nor did EPA await enactment of the
Amendments as petitioners urged. Rather, EPA rushed
through the Class I designation the day after Congres-
sional approval of the bill reported from the Conference
Committee and two days before the President signed it
into law. EPA approved the redesignation knowing that
if it waited a moment longer, the Amendments would
become law and petitioners’ objections to the redesigna-
tion would have to be considered. By acting immediately,
petitioners’ objections could conveniently be ignored and
the redesignation would, by a “grandfather clause,” re-
main effective. 42 U.S.C. § 7472(a) (Supp. III 1979).
Unfortunately, petitioners’ rights to have their concerns
taken into account in an administrative decision affecting
their livelihood were trampled in the process. Under
these circumstances, it was arbitrary and capricious for
EPA not to consider the impacts of the redesignation on
surface mining on the theory that petitioners would not
be affected by the redesignation.

II. REVIEW OF THIS NOVEL QUESTION OF LAW
MUST COME NOW IF PETITIONERS ARE NOT
TO RISK LOSING FOREVER THEIR RIGHTS TO
HAVE EPA CONSIDER THE EFFECTS OF THE
REDESIGNATION ON THEM.

If the Court chooses not to issue a Writ of Certiorari
to the Ninth Circuit Court of Appeals, petitioners’ op-
portunities for later review of the Class I redesignation
regulation are likely to be foreclosed. Section 307(b) (1)
of the Clean Air Act, as amended, id. § 7607(b) (1),
requires:

11

Any petition for review.. . [to] be filed within
sixty days from the date notice of such promulgation,
approval or action appears in the Federal Register,
except that if such petition is based solely on grounds
arising after such sixtieth day, then any petition for
review. . shall be filed within sixty days after such
grounds arise. (emphasis supplied)

Section 307 (b) (2), id. § 7607 (b) (2), prohibits review in
a subsequent civil or criminal enforcement proceeding
of any final action of the administrator which, like the
Class I redesignation, was reviewable under Section
307 (b) (1).

Though the constitutionality of this preciusion provi-
sion has been questioned, at least in the criminal con-
text, Adamo Wrecking Co. v. United States, 434 U.S.
275, 289-91 (1978) (dissenting opinions of Justices
Powell and Stewart), such limitations on reviewability
may be relied upon to dismiss, with prejudice, “untimely”
petitions for review. Indeed, the Northern Cheyenne
argued in the court below that Section 307 bars review
of constitutional issues raised by petitioners, and the
United States took pains in its argument to avoid any
admission that the future review of EPA’s approval of
the Class I redesignation might not be barred by the
60 day rule.

Because any future petition for review must be based
solely on grounds arising after the initial sixty-day time
for review has passed, it is at least likely that petitioners
will not be able to obtain review of the Class I designa-
tion at some later time. Since the decided cases give
support to the claim that subsequent review may be
precluded, a real danger to petitioners has been created.

In Oljato Chapter of Navajo Tribe v. Train, 515 F.2d
654 (D.C. Cir. 1975), the court considered late petitions
under the Clean Air Act for review of standards of per-

12

formance for new coal-fired powerplants. The petitioners
in Oljato claimed to have new information to present.
The court stated:

. . . this case involves a general out-of-time challenge
to the validity of an EPA standard, exactly what
Congress intended to bar by limiting appeal (absent
new information) to within 30 days of the rule’s
promulgation).

515 F.2d at 659 n.6. Petitioners in Oljato were instructed
to present their new information to EPA. Their petition
for review was barred if the new information did not
present grounds adequate for a new evaluation of the
standard.

Similarly, a utility filed a late petition for a review of
emission standards in the Missouri SIP on the basis of
new information concerning technological and economic
infeasibility in Union Electric Co. v. Environmental Pro.
Agey., 515 F.2d 206 (8th Cir. 1975), aff'd, 427
U.S. 246 (1976), rehearing denied, 429 U.S. 873. The
court found that evidence of technological and economic
infeasibility is not “new information” within the meaning
of Section 307, and dismissed the petition as untimely
filed. Moreover, as noted in Union Electric, 515 F.2d at
209 n.9, in an unreported order the Ninth Circuit, too,
has dismissed a petition for review under Section 307 as
untimely led. Kawasaki Motors Corp. v. Train, No. 74-
1697 (9th Cir. August 9, 1974), cert. denied, 420 U.S.
926 (1975).

In short, if EPA’s actions are not reversed in this case
and remanded for reconsideration, the Act, as amended,
will permit EPA to argue that it can never be required
to consider the impacts of the Class I redesignation on
petitioners. Even worse, EPA is precluded by § 164(c)
of the Clean Air Act, 42 U.S.C. § 7474(c) (Supp. III
1979), from redesignating an Indian reservation. Peti-

13

tioners, including the Crow Tribe, are thus left at the
mercy of the Northern Cheyenne.

Avoidance of judicial review in this matter will result
in the approval of an arbitrary and capricious action:
EPA will have successfully misled the public by alleging
that petitioners would not be affected when it had reason
to know that petitioners would be harmed. As a conse-
quence, petitioners will be deprived of the only procedural
protections they have, and coal development on public or
tribal lands will be restrained without consideration of
the energy impacts of the redesignation at a time when
coal is needed to meet the nation’s energy demands.
Moreover, a novel and troublesome legal issue requiring
an early and definitive ruling by this Court will remain
unanswered.

III THE ENVIRONMENTAL PROTECTION AGENCY
BREACHED THE GOVERNMENT’S FIDUCIARY
OBLIGATIONS TO THE CROW TRIBE IN APPROV-
ING THE REDESIGNATION OF A CLEAN AIR
AREA ADJACENT TO CROW LAND WITHOUT
CONSIDERING THE OBJECTIONS OF THE TRIBE,
WHERE THE REDESIGNATION WILL ADVERSE-
LY AFFECT THE ABILITY OF THE TRIBE TO
MINE COAL ON THEIR LAND.

Even if EPA had no obligation to consider the effect
of the all-but-signed 1977 Amendments on the coal min-
ing petitioners, surely the “distinctive obligation of trust
incumbent upon the Government in its dealings with these
dependent and sometimes exploited people” imposes on
EPA a higher obligation to deal fairly with the Tribe.
Seminole Nation v. United States, 316 U.S. 286, 296
(1942). EPA’s “conduct, as disclosed in the acts of those
who represent it in dealing with the Indians, should there-
fore be judged by the most exacting fiduciary standards.”
Id. at 297. The right of the Crow Tribe to “the absolute
and undisturbed use and occupation” of tribal lands is

14

further provided for by treaty. Treaty with the Crows,
15 Stat. 649 (1868). This right is now abridged because
of restrictions placed on coal mining by the redesignation
of the Northern Cheyenne Reservation, and EPA allowed
this right to be abridged without proper exercise of the
government’s fiduciary obligations to the Crow Tribe.
First, even though the government had a fiduciary duty
to protect the Crows, EPA decided to ignore the objec-
tions of the Chairman of the Crow Tribe because the
technicality of a formal protest from the Tribe was lack-
ing. Second, the Agency used its own misleading asser-
tion that the Tribe would not be affected to justify not
listening to the Crow objection.

The government’s fiduciary duty to the Crows is like
the duty of any fiduciary. See generally Seminole Nation,
316 U.S. at 294-97; United States v. Creek Nation, 295
U.S. 103, 109-110 (1935); Cramer v. United States, 261
U.S. 219 (1923); Menominee Tribe v. United States, 101
Ct. Cl. 10 (1944); Manchester Band of Pomo Indians,
Inc. v. United States, 363 F. Supp. 1238 (N.D. Cal. 1973).
In particular, the government cannot carry on activities
on land adjacent to a reservation where the activity
serves to diminish the value of the reservation as a trust
asset and source of income. For example, in Pyramid
Lake Paiute Tribe of Indians v. Morton, 354 F. Supp. 252
(D. D.C. 1973), diversions of water for a federal dam proj-
ect reduced, downstream, the level of a lake and thus its
value as a trust asset; the water diversion also increased
the lake’s salinity and impeded upstream spawning, and
therefore, decreased the value of the lake as a fishery.
Even in the absence of a violation of any specific statute
or treaty, the operation of the project was held to violate
the government’s trust duty to the tribe. Like the dam
project in Pyramid Lake, the air quality restrictions
placed upon the Northern Cheyenne Reservation impede
the ability of the Crow Tribe to produce income from
their own land and decrease the value of the land as a
trust asset.

15

Under the amended Clean Air Act, the redesignation
of the Northern Cheyenne Reservation carries serious con-
sequences for the Crow Tribe in restricting the develop-
ment of the Crow’s coal resources. Yet, neither the De-
partment of the Interior nor EPA satisfied the govern-
ment’s fiduciary duty to the Crow Tribe. To avoid hav-
ing to weigh the conflicting interests of the Crow and
Northern Cheyenne Tribes, the Department of the In-
terior attempted to shift the government’s fiduciary duty
to EPA by declining to give its required approval to the
redesignation. Letter from James A. Joseph, Undersecre-
tary of the Department of the Interior to Douglas Costle,
EPA Administrator (June 23, 1977). App. at 113a.

EPA in turn attempted to free itself from its fiduciary
responsibility by using a technicality. See 42 Fed. Reg.
40,697 (1977). EPA claimed that because it had received
no official protest from the Crow Tribal Council, it could
ignore the protests which had been received from the
Chairman of the Tribe. Id. This failure to review the
merits of the redesignation because of a procedural tech-
nicality constituted a failure to execute the government’s
fiduciary duty to the Tribe.

Moreover, the fact that no formal protest was filed is
in no small measure attributable to EPA’s own miscon-
duct. Had EPA not falsely reassured the Tribe that their
surface mining activities would not be affected, the Crow
Tribal Council, comprised of all members of the tribe,
would have been better able to assess the effect of the
redesignation. Indeed, had it not been for EPA’s re-
assurances, the Council might have decided to file a for-
mal protest with the Secretary of the Interior on behalf
of the Council as a whole, rather than to act through the
Tribal Chairman. It should not be held against the Tribe
that no formal protest was filed when a primary reason
that the Council took no action was EPA’s representations
that surface mining would not be affected by the redesig-

16

nation. As the Ninth Circuit has stated in a non-Indian
tribe context, “[t]o say to these appellants, ‘The joke is
on you. You shouldn’t have trusted us,’ is hardly worthy
of our great government.” Brandt v. Hickel, 427 F.2d
53, 57 (9th Cir. 1970). See also United States v. Lazy
FC Ranch, 481 F.2d 985, 988 (9th Cir. 1973); United
States v. Georgia-Pacific Company, 421 F.2d 92, 100 (9th
Cir. 1970) ; Moser v. United States, 341 U.S. 41 (1951).
It is even less worthy of the government to mislead an
Indian tribe which looks to the government for protection
as its trustee.

Notwithstanding the formal aspects of the protest, the
government still had a substantive fiduciary duty to the
Tribe. As a result of EPA’s failure to respond to the
concerns of Undersecretary Joseph of the Department of
the Interior and of the Chairman of the Crow Tribe, as
the court below found, “the responsibility to exercise [the
government’s] fiduciary obligations is fairly placed upon
the EPA.” 645 F.2d at 711. EPA breached this duty by
refusing to consider the Tribe’s comments in approving
the redesignation. The reasoning of the Court of Ap-
peals, that EPA’s assertion that there were no effects
(even though it knew about the pending 1977 Amend-
ments) somehow freed the Agency from examining the
claims of the Crow Tribe, is circular argument at its
worst. The Agency’s claim that the redesignation would
have no effect on the Tribe cannot possibly justify the
Agency’s failure to consider the Tribe’s claim that effects
did exist.

Since the Crow and Northern Cheyenne are neighboring
tribes, one tribe’s clean air preference will necessarily
affect the land of the other tribe; that some choice among
preferences must be made is understood. EPA can not
make this choice in favor of one tribe, however, while re-
fusing even to listen to the arguments of the other tribe.
Further, such a choice should not be made based on a

17

procedural technicality. Herein lies EPA’s breach of its
fiduciary obligations to the Crows.

CONCLUSION

For the reasons stated, the petition for a Writ of Cer-
tiorari should be granted. Alternatively, the Court may
wish to consider summary reversal of the Court of Ap-
peals and remand to EPA.

URBAN BEAR DON’T WALK
301 N. 27th Street
Billings, Montana 59101
(406) 259-3080

Attorney for Petitioner
Crow Tribe of Indians,
Montana

TERRY O'CONNOR
12015 E. 46th Avenue
Denver, Colorado 80239
(303) 371-7990

Attorney for Petitioner
Peabody Coal Co.

August 17, 1981

Respectfully submitted,

WILLIAM A. WHITE
Counsel of Record

GEORGE J. MILLER
DECHERT Price & RHOADS
888 Seventeenth Street, N.W.
Washington, D.C. 20006
(202) 872-8600

Attorneys for Petitioner
Westmoreland Resources, Inc.

WILLIAM E. MuRANE
PAUL D. PHILLIPS
HOLLAND & HART
P.O. Box 8479
Denver, Colorado 80201
(303) 575-8000
Attorneys for Petitioners
Marcus L. Nance,
Nance Cattle Co., and
Thermal Energy, Inc.

APPENDICES

TABLE OF CONTENTS

Opinion of U.S. Court of Appeals for the Ninth
Deer

Decision of EPA to Approve Redesignation, Effec-
tive August 5, 1977, 42 Fed. Reg. 40,695 (1977)

Excerpts of PSD and Preclusion of Judicial Review
Provisions of Clean Air Act as Amended, 42 U.S.C.
EE

Excerpt of PSD Regulations in Effect at Time of
Redesignation, 40 C. F. R. § 52.21 (197777

Excerpts of PSD Regulation Currently in Effect,
40 C. F. R. § 51.24 (1980), as amended whi 45 Fed.
C

Comments of Westmoreland Resources, Inc. to the
Environmental Protection Agency (May 25, 1977)

Letter from James A. Joseph, Undersecretary of
the U.S. Department of the Interior, to Douglas
Costle, EPA Administrator (June 23, 1977) .........

Page

la

36a

46a

674

82a

107a

113a

la

APPENDIX A
Opinion of U.S. Court of Appeals for the Ninth Circuit

United States Court of Appeals
Ninth Circuit
Nos. 77-3058, 77-3301, 77-3305, 77-3356,
77-3374 and 79-7261

Marcus L. NANCE et al.,

¥ Petitioners,

ENVIRONMENTAL PROTECTION AGENCY,
Respondent.

NORTHERN CHEYENNE TRIBE et al.,
Intervenors.

THERMAL ENERGY, INC. et al.,
Petitioners,
v.

ENVIRONMENTAL PROTECTION AGENCY,

Respondent.

NORTHERN CHEYENNE TRIBE et al.,
Intervenors.

AMAx COAL COMPANY,

* Petitioners,
ENVIRONMENTAL PROTECTION AGENCY,
Respondent.

NORTHERN CHEYENNE TRIBE et al.,
Intervenors.

2a

Crow INDIAN TRIBE, MONTANA,

* Petitioner,

ENVIRONMENTAL PROTECTION AGENCY,

Respondent.

NORTHERN CHEYENNE TRIBE,
Intervenor.

WESTMORELAND RESOURCES,

* Petitioner,

ENVIRONMENTAL PROTECTION AGENCY,
Respondent.

NORTHERN CHEYENNE TRIBE,
Intervenor.

WESTMORELAND RESOURCES,
- Petitioner,

ENVIRONMENTAL PROTECTION AGENCY,
Respondent.
NORTHERN CHEYENNE TRIBE,

Intervenor.
Argued March 4, 1980
Submitted April 24, 1981
Decided May 18, 1981

Petition for Review of an Action of the
Environmental Protection Agency

3a

Before TANG, SCHROEDER and NELSON, Circuit
Judges.

NELSON, Circuit Judge:

In this case, petitioners challenge the approval by the
Environmental Protection Agency (EPA) of the North-
ern Cheyenne Tribe’s redesignation of its reservation
from Class II to Class I air quality standards. The major
issue presented con be rather simply described. When an
agency takes administrative action expressly on the then
correct assumption that the action will not affect the
rights of various parties, some of whom actively inter-
vene in the proceedings, and immediately after such ac-
tion becomes final a law is passed which causes the ad-
ministrative action to have a potential direct effect of the
sort it was previously expressly asserted it would not
have, is such administrative action thereby rendered arbi-
trary and capricious or otherwise invalid?

We hold that the EPA’s action was not arbitrary or
capricious and, therefore, affirm the Agency’s approval of
the Northern Cheyenne Tribe’s redesignation of its reser-
vation from Class II to Class I air quality standards.
Further, we affirm the denial by the EPA of the petition
by Westmoreland Resources to vacate EPA approval of
the redesignation and to remand the redesignation ques-
tion to the Northern Cheyenne for reconsideration. Peti-
tioners assert numerous other flaws in the proceedings
which, they contend, require this court to overturn the
EPA action. For reasons given below we are compelled
to reject these contentions.

Statement of Facts

The facts are particularly crucial in this case because
of the importance of the timing of the various events.
Pursuant to the decision in Sierra Club v. Ruckelshaus,
344 F.Supp. 253 (D.D.C.1972), aff'd 4 Envir.Rep. 1815

4a

(D.C.Cir.), aff'd by an equally divided court sub. nom.
Fri v. Sierra Club, 412 U.S. 541, 93 S.Ct. 2770, 37
L.Ed.2d 140 (1973), the EPA promulgated regulations
(PSD regulations) designed to prevent the significant
deterioration of the air quality in areas cleaner than re-
quired by the national secondary air quality standards.
40 C.F.R. § 52.21 (1975). These PSD regulations were
published on December 5, 1974. Under these regulations,
all areas of the country which had cleaner air than re-
quired by the national standards were to be designated
as Class I, Class II, or Class III. All clean air areas were
initially designated as Class II, under which a moderate
amount of deterioration of air quality would be allowed,
but procedures were provided by which such areas could
be redesignated Class I, under which very little deteriora-
tion and hence very little development is allowed, or Class
III, under which the quality of the air in the area may
deteriorate to the national secondary air quality stand-
ards. Specific procedures were provided by which an In-
dian Tribe governing body could redesignate its reserva-
tion from Class II to either Class I or III. 40 C.F.R.
§ 52.21(c) (1975).

The Tribal Council of the Northern Cheyenne Tribe,
Intervenors in this action, decided on May 3, 1976, to
request the EPA administrator to reclassify the reserva-
tion from Class II to Class I. On May 13, the Tribe ad-
vised the EPA of the proposed redesignation, and for-
mally confirmed its proposal by letter dated July 9, 1976.
After notifying various federal, state, and local officials,
as well as certain citizens’ groups, the Tribe began prepa-
ration of a report which was to discuss the social, en-
vironmental, and economic effects of the proposed redesig-
nation. Volume I of this report, “The Northern Cheyenne
Air Quality Redesignation Report and Request,” was is-
sued on December 11, 1976, and comprised well over 200
pages. Following distribution of this report to various

5a

agencies and interested parties, and notification of a pub-
lie hearing on the proposed redesignation, such hearing
was held in Lame Deer, Montana, on January 17, 1977.
On March 7, 1977, the Tribe formally submitted its pro-
posal for redesignation to the EPA, accompanied by a
final report, the hearing transcript, and written com-
ments and responses.

EPA regulations then in force required the agency to
take action on such a redesignation proposal within 90
days, 40 C.F.R. § 52.21(c) (3) (vi) (1975), in this case by
June 5, 1977. On April 29, 1977, EPA published notice
that it intended to approve the redesignation of the North-
ern Cheyenne Reservation to Class I, and solicited com-
ments on such redesignation through May 31, 1977. On
June 10, 1977, the EPA Administrator announced that
the time for receiving public comments would be extended
until June 30, 1977. On August 5, 1977, the Administra-
tor published his approval of the redesignation, effective
immediately, which was accompanied by a 5l-page “EPA
Support Document” detailing the reasons for such ap-
proval. 42 Fed.Reg. 40695 (1977).

Petitioners assert the following grounds for overturn-
ing the action of the EPA in this case: (1) The decision
of the Cheyenne Tribe to redesignate the reservation as a
Class I area and the EPA’s subsequent approval of that
proposal were arbitrary and capricious insofar as they
failed to consider the effects of such redesignation on strip
mining; (2) The redesignation was ineffective because of
lack of publication prior to the enactment of the 1977
Clean Air Act Amendments, and hence the purported re-
designation was not ratified by those amendments; (3)
The EPA violated its own regulations in failing to obtain
the Secretary of the Interior’s approval of the redesigna-
tion on behalf of Indian trust lands affected, or, in the
alternative, the EPA breached the United States’ trust
obligations to the Indians; (4) The Cheyenne Tribe sup-

6a

port document was insufficient under the EPA’s regula-
tions; (5) The Clean Air Act did not authorize the dele-
gation to Indian Tribes of the power to redesignate their
reservations, and if it did so authorize, it was unconsti-
tutional; (6) The redesignation effected a taking of the
petitioner’s coal mining interests without due process and
without just compensation in violation of the fifth amend-
ment to the Constitution; (7) The delegation to the In-
dian governing bodies of redesignation authority which
affected land use outside the reservation area violated the
tenth amendment to the Constitution.

Standard of Review

Judicial review of the Administrator’s action in this
case is governed by section 10(e) of the Administrative
Procedure Act, 5 U.S.C. § 706(2)(A)-(D). Under this
section, we must determine whether the EPA’s approval
of the redesignation proposal by the Northern Cheyenne
is invalid as arbitrary, capricious, or an abuse of discre-
tion, id. § 706 (2) (A), or unconstitutional, id. § 706(2)
(B), or in excess of legislative authority, id. § 706(2)
(C), or procedurally defective, id. § 706 (2) (D). With
respect to review under the “arbitrary and capricious”
standard, the reviewing court is limited to deciding
whether there has been a clear error of judgment by the
agency and whether the agency action was based on a
consideration of the relevant factors. Citizens to Pre-
serve Overton Park v. Volpe, 401 U.S. 402, 416, 91 S.Ct.
814, 823, 28 L.Ed.2d 136 (1970).

I

Were the Northern Cheyenne’s Decision to Redesignate
and the EPA’s Approval of that Proposal
Arbitrary and Capricious

Petitioner’s primary complaint is that it was arbitrary
and capricious for the Northern Cheyenne Tribe to re-
designate its reservation, and subsequently for the EPA

7a

to approve such redesignation, without considering the
impact of the redesignation on strip mining in the sur-
rounding area.

It is undisputed that under the regulations in effeet at
the time the redesignation was proposed, only 19 sources
of pollution were subject to permit procedures, and that
these sources did not include strip mines. In a meeting
sometime before the end of October, 1976, EPA repre-
sentatives assured the Coordinator of the Northern Chey-
enne Research Project that sources not specifically cov-
ered by the regulation would not be affected. On October
29, 1976, the Coordinator wrote to the EPA Regional Ad-
ministrator :

In a recent meeting with representatives of your
Office . . , we were assured that a Class I designation
. would affect only those point sources listed in
the regulations. Simply put, this would mean that
point sources not listed, such as mining operations,
. , ete., are not covered by PSD regulations. This
matter has been clouded in our minds for some time
and we feel relieved to know the agency’s position.

The Regional Administrator responded to a request for
written documentation of its position in a letter of No-
vember 4, 1976:

[The letter of October 29] asks for verifica-
tion of [the EPA representative’s] interpretation of
what sources are affected by the PSD regulation. As
was indicated verbally, operations such as mining,
highway construction, and slash burning are not
among the 19 point source categories requiring a per-
mit to construct under the PSD regulation. It should
be noted, however, that when one of the 19 PSD
sources is under consideration for a permit, the im-
pact of any operation, such as mentioned . . ., com-
ing into existence after January 2, 1975 must be in-
cluded in evaluating the increment available.

8a

It was repeatedly emphasized both in the December, 1976
“Northern Cheyenne Air Quality Redesignation Report
and Request” and at the January, 1977, hearings, as well
as in response to written comments, that mining would
not be covered by the PSD regulations. In the April 29
publication of the notice of proposed approval of the re-
designation the EPA specifically noted that “[s]ince coal
mining is not one of the nineteen source categories re-
quiring preconstruction review, and hence would not re-
quire a PSD construction permit, redesignation of the
Northern Cheyenne Reservation would not directly affect
mining either on the reservation or in areas adjacent to
the reservation,” 42 Fed.Reg. 21820 (1977), and in the
August 5, 1977, notice of approval reiterated that
Aslinee strip mines are not subject to the preconstruc-
tion review program of the PSD regulation, they would
not be directly affected by a redesignation.” 42 Fed.Reg.
40697 (1977). It is not disputed that, according to the
regulations then in force, the above statements were cor-
rect.

Thus, it is clear that the Northern Cheyenne Tribe and
the EPA did consider whether strip mining would be af-
fected by the redesignation. The EPA and the Tribe con-
cluded, on the basis of the regulations then in effect, that
strip mining would not be affected.

Petitioner’s real complaint is with the effect of the re-
designation when coupled with the Clean Air Act Amend-
ments of 1977. These amendments added to the sources
covered by the preconstruction review program any source
emitting in excess of 250 tons of any pollutant per year.
Section 162(a) of the Amendments provided that any
areas designated Class I prior to the enactment of the
statute would remain Class I under the statute. 42 U.S.C.
§ 7472. The Northern Cheyenne Reservation was the only
such area. Petitioners and intervenors (other than the
Cheyenne Tribe) assert that the EPA and Cheyenne Tribe

9a

should have taken account of the pending legislation in
redesignating the reservation and that their failure to do
so was arbitrary and capricious. Analysis of this claim
requires a chronology of the enactment of the Amend-
ments into law.

The origins of the 1977 Clean Air Act Amendments are
to be found in a 1976 bill which was reported by the con-
ference committee but died as a result of a filibuster in
the Senate. See 122 Cong.Rec. S17568-70, S17573-4. A
new bill was introduced in 1977 which passed the House
of Representatives on May 26, 1977. On June 10, 1977,
the Senate passed an amended version of the bill. See 123
Cong.Rec. 18515 (1977). The Conference Committee re-
ported the bill to both the House and the Senate on Au-
gust 4, 1977, and both houses approved it the same day.
123 Cong.Rec. 26856, 27079 (1977). The EPA approved
the redesignation on the following day, August 5. Actual
publication of EPA approval took place one week later.
The President signed the 1977 Clean Air Act Amend-
ments into law on August 7, 1977.

There are several flaws in the petitioners’ theory that
the Tribe and the EPA were required to take this legis-
lation into account in considering the proposed redesigna-
tion by the Cheyenne Tribe. First, it is far from clear
that strip mining will ever be subject to PSD regulation.
The PSD permit procedure applies to any source which
emits more than 250 tons per year of any pollutant, but
there has been considerable dispute as to the meaning of
“source” and whether it includes such facilities as strip-
mines. Furthermore, it is not clear to what extent the
EPA is required or has discretion to consider fugitive
emissions as part of this 250 tons. The inclusion of fugi-
tive emissions (i.e. emissions from a facility that escape
other than from a point source) in meeting the 250 tons
per year threshold is important to this case because fugi-
tive particulate emissions are the primary pollutant re-

10a

leased from surface mines. If fugitive emissions are ex-
cluded, it is doubtful that strip mining will be subject to
PSD review.

Two recent events make these ambiguities in the legis-
lation manifest. First, the District of Columbia Court of
Appeals decided Alabama Power Co. v. Costle, 636 F.2d
323 (D.C.Cir. 1979). In Alabama Power, the court con-
sidered, inter alia, whether the EPA may include fugitive
emissions in determining whether a source emits more
than 250 tons a year of pollutants. Although the court
upheld EPA’s position that sources of fugitive emissions
were encompassed in the PSD provisions, it found that
section 302(j) “specifically attaches a rule-making re-
quirement for the inclusion of fugitive emissions” in the
calculation whether an emitting facility qualifies as
“major”. At 369. This rulemaking requirement was
found to apply to the “catch-all” provision of section
169(1), which subjects sources producing greater that
250 tons of fugitive emissions per year to PSD permit
procedures. Id. at 369-370. The effect of Alabama Power
is to require the EPA to engage in legislative rulemaking
before fugitive emissions from strip mining can be con-
sidered in determining whether the source emits more
than 250 tons per year.

Alabama Power, therefore, lends support to the con-
clusion tuat the 1977 Clean Air Act Amendments were in-
deed ambiguous as to whether strip mining is subject to
PSD regulations. This conclusion is buttressed by the
EPA’s response to the Alabama Power decision. The
EPA has issued a rule that includes fugitive emissions in
determining whether a source is major only for 26 speci-
fied types of sources. Strip mining is not one of these
26 sources. 45 Fed.Reg. 52690 (1980). Thus, under pres-
ent regulations governing fugitive emissions, strip mines
are not to be subject to PSD review unless non-fugitive
emissions exceed 250 tons per year. See 45 Fed.Reg.
52690 (1979).

lla

A second reason why it is unclear that the EPA should
have taken the proposed Amendments into account is the
uncertainty as to when enactment became sufficiently
probable as to require its consideration. The earliest date
at which the bill took a fairly final form was upon its
reporting by the Conference Committee on August 4,
1977. Even then, the bill might have been subject to fur-
ther amendment, filibuster, or even defeat. It does not
appear either from the record or from the many briefs
presented to this court that passage of the Clean Air Act
Amendments in their final form was assured at any time
significantly before August 4.

On the other hand, the fact remains that EPA approval
was not filed until August 5, 1977, the day after both
houses of Congress had approved the amendments. More-
over, contrary to usual procedure, the approval was made
effective immediately, even though notice was not pub-
lished until August 11, four days after the President had
signed the bill.

The conclusion is thus compelled that on the date the
EPA finally approved the redesignation, it knew that the
1977 Clean Air Act Amendments would be passed and
signed into law. The question before this court is whether,
in light of that knowledge, the EPA’s approval of the re-
designation was arbitrary and capricious. Two reasons
for concluding that it was not were stated above: (1)
strip mining is still not subject to PSD regulation under
the 1977 Amendments to the Clean Air Act, and (2) the
final form of the 1977 Amendments was not assured until
the bill was reported from the Conference Committee on
August 4, 1977.

A third reason is that the EPA was not certain the
Amendments would be passed and signed into law until
well after all agency action preliminary to final approval,
all comments, and all hearings had occurred, and well

12a

after final agency action was both expected and required
by regulations. The decision of the Supreme Court in
Vermont Yankee Nuclear Power Corp. v. NRDC, 435 U.S.
519, 98 S.Ct. 1197, 55 L.Ed.2d 460 (1978), makes clear
that there must be an end to the period during which the
agency must reopen the record to consider new facts. The
Court quoted from its earlier opinion in JCC v. Jersey
City, 332 U.S. 503, 514, 64 S.Ct. 1129, 1134, 88 L.Ed.
1420 (1944):

Administrative consideration of evidence . . . always
creates a gap between the time the record is closed
and the time the administrative decision is promul-
gated [and, we might add, the time the decision is
judicially reviewed] .... If upon the coming down
of the order litigants might demand rehearings as a
matter of law because some new circumstance has
arisen, some new trend has been observed, or some
new fact discovered, there would be little hope that
the administrative process could ever be consum-
mated in an order that would not be subject to re-
opening.

435 U.S. at 554-55, 98 S.Ct. at 1217. This is not to say
that pending legislation should never delay or influence
the administrative process. But it is for the agency, not
for this court, to decide whether the proceeding should be
reopened to consider such pending legislation, unless the
failure to reconsider is “arbitrary and capricious.” See
Northern Lines Merger Cases, 396 U.S. 491, 520-21, 90
S.Ct. 708, 722, 24 L.Ed.2d 700 (1949); City of Santa
Rosa v. EPA, 534 F.2d 150, 153 (9th Cir. 1976). All
that need be held here is that there the effect of legisla-
tion on future agency action is unclear, and passage of
the legislation is not assured until after all action pre-
liminary to the agency rendering a final decision has been
taken, and the time has passed during which the agency
would normally be required to render that final decision,

13a

it was not arbitrary and capricious for the agency to ap-
prove a proposed change in air quality standards that did
not take account of pending legislation.

II
Was the Redesignation Effectivce on Approval

Petitioners argue that the redesignation was not ef-
fective prior to the enactment of the 1977 Clean Air Act
Amendments and was, therefore, not ratified by those
amendments. This dispute revolves around whether the
redesignation could be made effective immediately upon
approval, and before actual publication and a 30 day pe-
riod for notice. Under the Administrative Procedure Act,
a substantive rule must be published 30 days before its
effective date except “as otherwise provided by the agency
for good cause found and published with the rule.” 5
U.S.C. § 553 (d).

The legislative history of 5 U.S.C. § 553(d) indicates
that the primary purpose of the provision was not to en-
courage prepublication dialogue, but rather to permit
petitions for reconsideration and “to ‘afford persons af-
fected a reasonable time to prepare for the effective date
of a rule or rules or to take other action which the issu-
ance may prompt.’” United States v. Gavrilovic, 551
F.2d 1099, 1104 (8th Cir. 1977) (quoting S. Rep.No. 752,
79th Cong., Ist Sess. 15 (1946); H.R. Rep.No.1980, 79th
Cong., 2d Sess. 25 (1946)). In determining whether good
cause exists, an agency, and a reviewing court, should
consider whether the necessity for immediate implemen-
tation outweighs any hardship affected persons might ex-
perience because of the reduced time to adjust to the new
rule. See id. at 1105.

In the publication of its approval, the EPA asserted
that there was good cause for making the action effective
immediately because the EPA had “been holding in abey-

l4a

ance a preconstruction permit request pending final ac-
tion” and “no useful purpose would be served by defer-
ring the effectiveness of this action for thirty days be-
cause new applications for construction would have to be
evaluated in light of this action in any event.” 42 Fed.
Reg. 40695 (1977). Petitioners argue that these reasons
given by the EPA are insufficient to constitute good
cause.

The EPA, however, neglected to mention what was un-
doubtedly its primary motivation: to assure that the re-
designation was effective prior to enactment and thus re-
mained effective under the amendments. This latter pur-
pose may be considered by the court inasmuch as it was
implicit in the explicitly stated justification and was ad-
ditionally, as asserted by the petitioners, obvious from
the circumstances. See Texaco Inc. v. FEA, 531 F.2d
1071, 1082-83 (Em.App. 1976); State of California v.
Simon, 504 F.2d 430, 439 (Em.App. 1974). Much time
and effort had gone into these redesignation proceedings,
and if the redesignation were not effective immediately,
the proceedings would have to be undertaken again. Fur-
thermore, immediate effectiveness was necessary to avoid
undue prejudice and hardship to the Northern Cheyenne
Tribe, since, according to the EPA’s own regulations the
redesignation should have been approved long before.

Because the petitioners in this case were aware of the
proposed redesignation and suffered almost no adverse
effects as a result of the noncompliance with the thirty-
day requirement, their hardship was outweighed by the
Agency’s need to put the order into immediate effect. See
Kollett v. Harris, 619 F.2d 134, 144-45 & n. 15 (1st Cir.
1980) (despite complete noncompliance with 5 U.S.C.
§ 553(d), good cause was found where regulations were
needed to implement new legislation and no prejudice was
demonstrated). Thus, good cause existed excusing the
failure to comply with 553(d) and the redesignation was
effective on the date of publication.

15a

Petitioners cite Texaco Inc. v. FPC, 412 F.2d 740 (3rd
Cir. 1969) for the proposition that when major legisla-
tion is imminent that promises to alter significantly the
impact of a proposed administrative rule, the agency
should be charged with a duty to utilize the 30-day period
to “educate itself” about the combined effect of the rule
and the legislation. As Respondents point out, however,
Texaco can be distinguished because in that case the Fed-
eral Power Commission failed to provide notice or a hear-
ing before promulgating an order, 412 F.2d at 742-43.
In this case, petitioners suffered no adverse effect because
of their failure to receive notice of the final ruling im-
mediately, and indeed had been notified in advance that
the redesignation would be effective upon approval. 42
Fed.Reg. 21819 (1977). For these reasons we hold that
the EPA could make its decision effective upon approval
on August 5, 1977.

III

(a) Did the EPA violate its own Regulations by Fail-
ing to Obtain the Approval of the Secretary of the
Interior

Several intervenors, and in particular the Crow Tribe,
argue that the EPA did not follow its own regulations
requiring it to obtain approval from the Department of
the Interior for actions affecting Indian Trust lands. 40
C. F. R. § 52.21 (e) (3) ( (1975) provides in part:

Where a State has not assumed jurisdiction over an
Indian Reservation the appropriate Indian Govern-
ing Body may submit to the Administrator a pro-
posal to redesignate areas Class I, Class II, or Class
III, provided that:

(b) Such redesignation is proposed after consulta-
tion with the State(s) in which the Indian Reserva-

16a

tion is located or which border the Indian Reserva-
tion and, for those lands held in trust, with the ap-
proval of the Secretary of the Interior.

The Crow contend that the EPA failed to obtain the
requisite approval by the Secretary of the Interior. The
facts appear to be as follows. On March 21, 1977, two
weeks after formal submission of the redesignation pro-
posal, the EPA received a letter from the Northern Chey-
enne Agency of the Bureau of Indian Affairs, Depart-
ment of the Interior, which noted that EPA regulations
required approval of the Secretary of the Interior for the
proposed redesignation. In that letter, the Superintendent
of the Northern Cheyenne Reservation reaffirmed the
“Agency’s endorsement of the subject Tribal resolution”,
and added that if such action did not meet the EPA re-
quirements, clarification should be sought from the Office
of the Secretary of the Interior. In its April 29, 1977,
notice of proposed approval of the redesignation, the EPA
noted its doubts that this communication satisfied the pro-
cedural requirements and added that it was seeking fur-
ther clarification before reaching a final decision. 42
Fed.Reg. 21820 (1977).

On May 9, 1977, the Administrator wrote to the Secre-
tary of the Interior requesting such clarification. The
letter stated that the EPA was “requesting clarification
regarding whether the Tribal Council is proposing the re-
designation with the approval of the Secretary of the In-
terior as required by our regulation.” Undersecretary
James A. Joseph responded to this letter on June 23,
1977. The key passage follows:

In the instant case the tribal council sought and re-
ceived the consent of the Agency Superintendent to
forward the proposal to EPA to satisfy the require-
ment of 40 CFR 52.21 that the Secretary of the In-
terior approve submission of the proposal. The

17a

Agency Superintendent has the authority to act in
behalf of the Secretary in approval of tribal leases,
acceptance of tribal resolutions and ordinances, and
approval of matters such as the one at issue, by vir-
tue of a series of delegations of authority from the
Secretary. [citations omitted]

We hold the above communications sufficient to meet the
requirement that the redesignation be approved by the
Secretary of the Interior.

(b) Did the EPA Fulfill the United States’ Trust Ob-
ligations to the Crow Tribe

A separate question is whether the EPA violated the
federal government’s trust obligations to the Indians. Su-
preme Court decisions require the trust obligation owed
by the United States to the Indians be exercised accord-
ing to the strictest fiduciary standards, United States v.
Mason, 412 U.S. 391, 398, 93 S.Ct. 2202, 2207, 37 L.Ed.2d
22 (1973); Seminole Nation v. United States, 316 U.S.
286, 296-97, 62 S.Ct. 1049, 1054, 86 L.Ed. 1480 (1942).
The Crow Tribe claims that the EPA, in failing to con-
sider the interests of the Crow, neglected these fiduciary
obligations. The following facts are relevant to this claim.

In the above mentioned letter of June 23, 1980, Under-
secretary of the Interior, James A. Joseph, also informed
the EPA of certain concerns of the Crow Tribe regard-
ing the potential effect of a redesignation of the Northern
Cheyenne territory.

The Crow Tribe has raised certain trust concerns
regarding the effect on the Crow Reservation of the
Northern Cheyenne proposal to redesignate their air
quality standards. The United States has a trust re-
sponsibility to Indian Tribes, separate and apart
from the requirements of 40 CFR 25.21.

18a

The Crow Tribe is concerned about the effect the
Northern Cheyenne redesignation will have on Crow
development, and whether they will have to seek
Northern Cheyenne approval before implementing de-
velopment plans. Inasmuch as EPA has the neces-
sary technical expertise to review the impacts on both
Tribes as interrelated actions, this Department feels
that the United States’ obligation to the Tribes
would best be satisfied by such review.

If a redesignation is to be made, we would appreciate
being informed of the impact and alternatives avail-
able to the respective Tribes before final action is
taken.

Furthermore, counsel to the Crow Tribe wrote to the
Regional Office of the EPA on June 12, 1977, requesting
that the EPA “proceed in a trustee or fiduciary relation-
ship with regards to the {Northern Cheyenne] redesig-
nation as to the Crow Tribe.” Although no response to
this letter is in the record, on August 5, the date the
EPA approved the redesignation, the Administrator wrote
to the Secretary of the Interior as follows:

In his June 22, 1977, letter Undersecretary James
A. Joseph suggested that EPA review the impacts of
the redesignation upon Crow development. In the ab-
sence of an official protest from the Crow Tribe,
EPA’s authority to review these impacts and use
the results as criteria for approval or disapproval of
the proposed redesignation are limited. However, the
Northern Cheyenne did evaluate the potential im-
pacts and, as discussed in the enclosed documenta-
tion, the impacts upon Crow development should not
be significant.

Two questions are presented by this set of facts. First,
was the EPA required to proceed in a Trustee capacity
vis a vis the Crow Tribe, and second, if it was so re-
quired, did it fulfill that obligation? It is fairly clear

19a

that any Federal government action is subject to the
United States’ fiduciary responsibilities toward the Indi-
an tribes. See Seminole Nation v. United States, 316 U.S.
286, 297, 62 S.Ct. 1049, 1054, 86 L.Ed. 1480 (1942). As
a result of the letters from the Undersecretary of the In-
terior, and the Crow Tribe, and the failure of the EPA
to respond to those letters before approving the redesig-
nation, the responsibility to exercise those fiduciary obli-
gations is fairly placed upon the EPA.

So, we must consider whether the EPA fulfilled the
United States’ fiduciary obligations toward the Crow
Tribe. Preliminarily, we note that adequate procedures
were provided by the Clean Air Act and the EPA regu-
lations to fulfill this responsibility. The Crow Tribe was
consulted by the Northern Cheyenne before redesignation
was proposed and it had full opportunity to participate in
the public hearing. Moreover, all the Crow Tribe was re-
quired to do activate the full panoply of protection against
a redesignation that would adversely affect its interest
was to lodge an official protest against such redesignation.
40 C. F. R. § 52.21 (e) (3) (vi) (e) (1975). This they did
not do

Despite the adequacy of procedural protections, the
question remains whether the EPA in substance fulfilled
its trust obligations. The primary concern of the Crow
from the beginning of the redesignation procedure was
clearly the potential impact of such a redesignation on
their ability to mine coal. It is in this respect that they
now claim that the EPA failed to exercise its trust re-
sponsibilities. However, in specifically finding that the
redesignation would not, under the law as it stood at that
time, have any effect on strip mining, the EPA adequately
addressed the Crow’s interest in this regard. That the
assumption may have turned out as a result of subsequent
events to have been wrong does not affect the answer to

20a

the question of whether the fiduciary responsibilities were
fulfilled in the first place.

In addition, it must be noted that the Government also
has a fiduciary relationship with the Northern Cheyenne
Tribe. That tribe has an interest in avoiding further de-
lay before EPA action on the proposed redesignation. In
light of these conflicting fiduciary responsibilities and the
strong possibility that the Crow tribe would not be preju-
diced at all by EPA approval of the redesignation, we
cannot say that there was a breach of the fiduciary duty
to the Crow.

IV

Was the Cheyenne Tribe Support
Document Insufficient under
EPA Regulations

Petitioner Westmoreland Resources argues extensively
that the PSD Analysis Document prepared by the Tribe
in support of the redesignation failed to comply with the
regulations of the EPA. Westmoreland argues in par-
ticular that the Analysis Document failed to consider the
effect of the redesignation on energy development, that
it failed to quantify the effect on air quality, that it gave
inadequate consideration to the growth anticipated in the
area, and that it failed to consider alternatives such as
delay. No claim is made that these factors were not con-
sidered at all, only that they were not “adequately con-
sidered”. Thus, the standard of review on appeal is
limited to whether the Tribe’s consideration of those
factors was somehow “arbitrary or capricious.” Under
that standard of review, the Tribe has met its obligations.

Westmoreland relies heavily on various exacting re-
quirements that have been imposed for the preparation
of Environmental Impact Statements (EIS) under the

21a

National Environmental Policy Act (NEPA). Actions
under the Clean Air Act, however, are expressly ex-
empted from the requirement of the preparation of an
EIS. 15 U.S.C. § 793 (e) (1). Furthermore, the Clean
Air Act contains a strong presumption in favor of the
maintenance of clean air, and the nature of a decision
which simply requires that the air quality be maintained
at a certain level prevents any exact prediction of its
consequ neces. The Tribe has considered the factors
enumerated in EPA regulations, and its choice in favor
of the certainty of clean air is a choice supported by the
preferences embodied in the Clean Air Act.

V

(a) Did the EPA Violate the Clean Air Act by Dele-
gating Redesignation Authority to the Indian
Governing Bodies

Certain petitioners argue that the delegation of au-
thority to the Indian governing bodies was a violation of
the Clean Air Act, and if it was not a violation then it
was unconstitutional. The statutory question was found
not ripe for review in Sierra Club v. EPA, 540 F.2d
1114, 1139 (D.C.Cir.1976), vacated and remanded 434
U.S. 809, 98 S.Ct. 40, 54 L.Ed.2d 66 (1977). Both the
EPA and the Tribe argue that this court does not have
jurisdiction to review the validity of the redesignation
regulations either under the statute or the Constitution.
First, they point to section 307(b)(1) of the 1977
Amendments, which requires that petitions for review of
any nationally applicable regulations promulgated by the
EPA Administrator be filed in the United States Court
of Appeals for the District of Columbia. 42 U.S.C.
§ 7607(b) (1). But there is no indication in either the
wording of the provision or its legislative history, that
it applies to regulations promulgated before the enact-
ment of the 1977 amendments. We think that review

22a

of the pre-1977 regulations may be undertaken in ac-
cordance with the provisions then in force. Moreover,
the EPA recognizes this by its reliance upon the Sixth
Circuit’s decision in Dayton Power & Light Co. v. EPA,
520 F.2d 703 (6th Cir. 1975). The EPA cites that case
for the proposition that only the District of Columbia
Circuit has jurisdiction to review the PSD regulations.
This seriously misstates the holding. The Sixth Circuit
ruled that review of the PSD regulations was governed
by the second sentence of then 42 U.S.C. § 1857h-5(b) (1),
which provides that review “may be filed only in the
United States Court of Appeals for the appropriate cir-
cuit.” 520 F.2d at 706. The Court then determined that,
because of the potential for conflicts between the circuits
and the need for uniform national laws, the District of
Columbia Circuit was the appropriate circuit to review
the PSD regulations, particularly in light of the fact
that the regulations were promulgated in response to a
decision by that court. 520 F.2d at 708. While the
District of Columbia Circuit subsequently upheld the
validity of the PSD regulations applicable to the states,
it declined to decide the question of the Indian lands
redesignation provisions on grounds of ripeness. Sierra
Club v. EPA, 540 F.2d at 1114. That question is un-
doubtedly now ripe for adjudication, the actual redes-
ignation of an area by an Indian Tribe being the very
issue in this case.* Under Dayton Power this Court
must decide whether it is the appropriate Court of Ap-
peals to review the PSD regulations applying to Indian
Tribes.

Judge Schroeder finds this entire case unripe as a general
proposition. Contrary to the dissent’s assertions, however, this case
became ripe at the time the redesignation, which is the only sub-
ject of this case, was approved. The crucial issue before us is the
correctness of the Agency’s behavior during that process of ap-
proval. Once that process was complete, no additional events were
necessary to enable this court to examine whether the agency prop-
erly exc eised its authority under the law as it then existed.

23a

It should be noted at the outset that, accepting the
ripeness requirement imposed by the D.C. Circuit in
Sierra Club, the redesignation of the Northern Cheyenne
Reservation is the only context in which the pre-1977
regulations applicable to tribal redesignation may ever
be challenged. As noted above, this reservation was the
only area in the country actually redesignated under
those regulations, and thus also the only Indian land so
redesignated. So, there will be no opportunity for con-
flict among the circuits, or for the wasting of judicial
resources, the factors which were determinative in
Dayton Power. Moreover, the only land that has been
affected or that can be affected (since the regulations
are no longer applicable) is located in this circuit. These
facts suggest that this is the appropriate circuit to review

this appeal.

Petitioners’ argue that the PSD regulations delegating
redesignation authority to Indian governing bodies vio-
lated the Clean Air Act. Petitioners urge that section
107 (a) of the Clean Air Act, 42 U.S.C. § 7407 (a), dele-
gated the responsibility to the states for assuring air
quality within the entire geographic area comprising the
State. Thus they argue that the EPA could not, con-
sistent with the Clean Air Act, authorize Indian govern-
ing bodies to control air quality standards in the Indian
reservations.

This line of reasoning must be rejected. The EPA
instituted PSD regulations pursuant to Sierra Club v.
Ruckelshaus, 344 F.Supp. 253 (D.D.C.1972), aff'd, 4
Envir. Rep. 1815 (D.C.Cir.), aff'd by an equally divided
court sub nom. Fri v. Sierra Club, 412 U.S. 541, 93 S.Ct.
2770, 37 L.Ed.2d 140 (1973). One question was what
procedures were appropriate for Indian tribal lands.
The EPA was faced with the choice of granting the
states the authority to redesignate Indian lands within
their borders of exempting Indian lands from the PSD

24a

regulations, or of allowing the Indian governing bodies
the same authority as the states, namely the power to
redesignate their lands.

The Indian Tribes have traditionally been regarded as
possessing important attributes of sovereignty, and the
power of the states to regulate Indians and Indian lands
has been sharply curtailed. See Bryan v. Itasca County,
426 U.S. 373, 392, 96 S.Ct. 2102, 2112, 48 L.Ed.2d 710
(1976); Williams v. Lee, 358 U.S. 217, 220, 79 S.Ct.
269, 270, 3 L.Ed.2d 251 (1959); Santa Rosa Band of
Indians v. Kings County, 532 F.2d 655, 658 (9th Cir.
1975). As this Court stated in Santa Rosa Band of
Indians, “we have little doubt that Congress assumed
and intended that states had no power to regulate the
Indian use or governance of the reservation provided,
except as Congress chose to grant that power.” 532 F.2d
at 658. And it is well recognized that “Indian tribes
possess an inherent sovereignty except where it has been
specifically taken away from them by treaty or act of
Congress.” Ortiz-Barraza v. United States, 512 F.2d
1176, 1179 (9th Cir. 1975).

Agency interpretations of federal statutes are entitled
to great weight. Brubaker v. Morton, 500 F.2d 200 (9th
Cir. 1974). “[T]he construction of a statute by those
charged with its execution should be followed unless there
are compelling indications that it is wrong.” Red Lion
Broadcasting Co. v. FCC, 395 U.S. 367, 381, 89 S.Ct.
1794, 1802, 23 L.Ed.2d 371 (1969). Moreover, tribal
sovereignty provides “a backdrop against which .. .
applicable treaties and statutes must be read.” Me-
Clanahan v. Arizona State Tax Comm’n, 411 U.S. 164,
172, 93 S.Ct. 1257, 1263, 36 L.Ed.2d 129 (1973).
Finally, the EPA regulations allowed this “self-
redesignation” only for Indian reservations which had
not been subjected to state jurisdiction. 40 C.F.R
§ 52.21 (e) (3) (v) (1975).

25a

The conclusion can be drawn, therefore, that within
the present context of reciprocal impact of air quality
standards on land use, the states and Indian tribes
occupying federal reservations stand on substantially
equal footing. The effect of the regulations was to grant
the Indian tribes the same degree of autonomy to deter-
mine the quality of their air as was granted to the states.
We cannot find compelling indications that the EPA’s
interpretation of the Clean Air Act was wrong. Nor
can we say that the Clean Air Act constitutes a clear
expression of Congressional intent to subordinate the
tribes to state decisionmaking.

Furthermore, while the 1977 Clean Air Act Amend-
ments may not be viewed as “ratifying” the EPA action,
they do indicate Congress’s view that such Indian au-
thority to redesignate their lands is appropriate. Indeed,
in passing the 1977 amendments Congress was well aware
that the only area that had seen substantial progress
toward redesignation was an Indian Reservation. The
Senate Report explicitly states:

Under existing EPA regulations, Indian tribes
are authorized to designate any of their lands as
class I areas. If any such designations are approved
by EPA prior to the enactment of these amendments
such redesignation to class I status shall not be
altered by the passage of these amendments. Such a
request by the Northern Cheyenne Tribe is pending
and may be approved before enactment.

S.Rep.No.95-127, 95th Cong., Ist Sess. 35, reprinted in
Senate Committee on Environment and Public Works, 3
A Legislative History of the Clean Air Act Amendments
of 1977, at 1409 (1977).

Was the Delegation of Redesignation Authority to
the Indian Governing Bodies Unconstitutional

Petitioners further contend that if the Clean Air Act
is construed to delegate redesignation authority to the

26a

Indian governing bodies, both the Act and the regulations
would to that extent be unconstitutional. Petitioners’
basic argument is similar to the due process contention
discussed below, namely that such a delegation gives the
Indian tribes authority to affect land use by non-Indians
outside the reservation area. This argument is seriously
flawed. First, it hinges on the view that while Indian
tribes possess attributes of sovereignty within the reser-
vation, they are mere “private voluntary organizations”
with respect to any effects outside the reservation. This
seems to be an untenably grudging interpretation of the
applicable Supreme Court precedents. On the specific
issue of delegation of congressional legislative power, the
Supreme Court has stated:

This Court has recognized limits on the authority
of Congress to delegate its legislative power. Pan-
ama Refining Co. v. Ryan, 293 U.S. 388 [55 S.Ct.
241, 79 L.Ed. 446] (1935). Those limitations are,
however, less stringent in cases where the entity
exercising the delegated authority itself possesses
independent authority over the subject matter.
United States v. Curtiss-Wright Export Corp., 299
U.S. 304, 319-322 [57 S.Ct. 216, 220, 221, 81 L.Ed.
255] (1936). Thus it is an important aspect of
this case that Indian tribes are unique aggregations
possessing attributes of sovereignty over both their
members and their territory, Worcester v. Georgia,
6 Pet. 515, 557 [8 L.Ed. 483] (1832); they are a
“separate people” possessing “the power of regulat-
ing their internal and social relations. United
States v. Kagama, 118 U.S. 375, 381-382 [6 S.Ct.
1109, 1112-1113, 30 L.Ed. 228] (1886) ; McClanahan
v. Arizona State Tax Comm’n, 411 U.S. 164, 173
[93 S.Ct. 1257, 1262, 36 L.Ed.2d 164] (1973).

United States v. Mazurie, 419 U.S. 544, 556-57, 95 S.Ct.
710, 717, 42 L.Ed.2d 706 (1975). Petitioners agree that

27a

the Indian tribes possess “attributes or sovereignty” over
their members and their territory, id., but would dis-
tinguish the present case because the redesignation
affects land use outside the reservation. Certainly the
exercise of sovereignty by the Northern Cheyenne will
have extraterritorial effect. But another element must
be considered, namely the effect of the land use outside
the reservation on ‘he reservation itself. This case in-
volves the “dumping” of pollutants from land outside
the reservation onto the reservation. Just as a tribe has
the authority to prevent the entrance of non-members
onto the reservation, Quechan Tribe of Indians v. Rowe,
531 F.2d 408, 410-11 (9th Cir. 1976), cf. Washington v.
Confederated Tribes of the Colville Indian Reservation,
447 U.S. 134, 100 S.Ct. 2069, 2085-86, 65 L.Ed.2d 10
(question reserved whether state officials may enter res-
ervation), a tribe may exercise control, in conjunction
with the EPA, over the entrance of pollutants onto the
reservation. We do not, however, decide whether the
Indians would possess independent authority to maintain
their air quality. “It is necessary only to state that the
independent tribal authority is quite sufficient to protect
Congress’ decision to vest in tribal councils this portion
of its own authority .. .” United States v. Mazurie, 419
U.S. at 557, 95 S.Ct. at 717.

We note further that while the Clean Air Act permits
delegation of redesignation authority to the Indian tribes,
the EPA maintains certain checks on the exercise of
that authority. EPA regulations require approval of a
proposed reclassification by the EPA Administrator; the
tribes must prepare a report discussing the social, en-
vironmental, and economic effects of the redesignation;
a public hearing must be held on the Report; and con-
sultation is required with states and tribes that border
the reservation of the tribe proposing the redesignation.

28a

VI
The Fifth Amendment Takings Claim

Petitioners also contend that the redesignation by the
Northern Cheyenne Tribe constituted a taking without
due process and without just compensation in violation
of the fifth amendment of the United States Constitution.
These claims are not ripe for adjudication.

First, it is not yet established that strip mines are
indeed subject to PSD permit procedures under the 1977
amendments. On the contrary, it appears at the very
least that the EPA will have to engage in rule-making
in order to subject the strip mines to those provisions,
Alabama Power Co. v. Costle, 636 F.2d 323 (D.C. Cir.
1979), and the regulations recently proposed by EPA
would not result in requiring PSD permits for strip
mines. Since any future application of the PSD regula-
tions to strip mines would be based on agency action
other than the redesignation under the pre-1977 regula-
tions, the 30-day time limit for appealing that redesigna-
tion would not preclude the assertion of petitioners’ fifth
amendment claims.

Furthermore, there is no evidence in the record that
even if full Class I restrictions are applied to petitioner’s
coal mining properties that the petitioners will be unable
to engage in any profitable coal mining whatsoever. Cf.
Pennsylvania Coal Co. v. Mahon, 260 U.S. 393, 43 S.Ct.
158, 67 L.Ed. 322 (1922). The mere regulation of the
use of property, even if it results in the diminution of
its value and profitability does not constitute a taking
within the meaning of the fifth amendment. See gen-
erally Penn Central Transportation Co. v. City of New
York, 438 U.S. 104, 98 S.Ct. 2646, 57 L.Ed.2d 631
(1978). Thus even assuming that strip mines are subject
to the PSD permit procedure, the takings issue is not
ripe for adjudication until the effect of the redesignation

on the coal mining interests of the petitioners has been
determined by the EPA.

Petitioners’ claim that the redesignation violated due
process because it was for the “private” benefit of the
Cheyenne Tribe is without merit. Not only is it well
recognized that the Indian tribes possess attributes of
sovereignty in many respects comparable to those of the
states, United States v. Mazurie, 419 U.S. 544, 95 S.Ct.
710, 42 L.Ed.2d 706 (1975), but Congress has recognized
that clean air, wherever located, is in the public interest.
To the extent that the redesignation limits polluting ac-
tivities outside the area of the Northern Cheyenne reser-
vation, a benefit is also conferred upon people living in
those areas. It is noteworthy in this respect that the
affected states, Wyoming and Montana, have chosen not
to challenge the EPA’s action. Petitioners’ argument
that the Indians have been allowed to regulate the use of
property outside the reservation area, in violation of
due process requirements, is also without merit insofar
as it assumes an inherent right on their part to deposit
pollutants on the property of the Indians. It was Con-
gress and the EPA, not the Indian tribes, that decided
in the first instance that the interest in clean air gen-
erally was superior to that interest represented by the
polluting activity.

VII

The Tenth Amendment Claim

Petitioners also claim that allowing the Indians to
redesignate their lands and, in so doing, to affect the use
to which lands outside the reservation may be put is a
violation of the tenth amendment. While the standing
of petitioners to assert this claim, insofar as the tenth
amendment is designed to protect the interest of the
states qua states, may be seriously questioned, this claim
is so patently without merit that the standing question
can be left for another day. (See Note, Assuming Juris-

30a

diction Arguendo: Rationale and Limits of Hypothetical
Jurisdiction, 127 U. Pa. L. Rev. 712, 733-34 (1979) ).

Basically, petitioners argue that allowing redesignation
by Indian tribes to have extraterritorial effects uncon-
stitutionally limits the state’s interest in planning and
enforcing land use policies. This view implies that Con-
gress is without authority to regulate directly the pollut-
ing activities of private parties. Were the court to adopt
the view urged by petitioners, it is hard to see what fed-
eral activity under the commerce clause would be per-
mitted. Here, the states have not been required to take
any affirmative action, Cf. Brown v. EPA, 521 F.2d 827
(9th Cir. 1975), vacated and remanded, 431 U.S. 99, 97
S. Ct. 1635, 52 L.Ed.2d 166 (1977), nor has the state’s
ability to regulate its own governmental affairs or
allocate its own resources been affected. Cf. National
League of Cities v. Usery, 426 U.S. 833, 96 S.Ct. 2465,
49 L.Ed.2d 245 (1976). The power to allow private
citizens to engage in strip mining is hardly one of those
“functions essential to separate and independent ex-
istence.” 426 U.S. at 845, 96 S.Ct. at 2471. Indeed, the
Supreme Court in National League of Cities drew an
express distinction between regulations aimed at private
enterprises and those aimed at states:

It is one thing to recognize the authority of Congress
to enact laws regulating individual businesses nec-
essarily subject to the dual sovereignty of the gov-
ernment of the Nation and of the State in which
they reside. It is quite another to uphold a similar
exercise of congressional authority directed, not to
private citizens, but to the States as States.

426 U.S. at 845, 96 S.Ct. at 2471.

Other Claims

Petitioner Westmoreland Resources additionally ap-
peals the EPA’s denial of its petition to vacate EPA

31a

approval of the redesignation and to remand the re-
designation question to the Northern Cheyenne for re-
consideration. Westmoreland argues that the EPA’s re-
fusal to vacate was an abuse of its discretion because
the original approval was based upon an incorrect finding
that the redesignation proposal would not affect coal
mining. This is essentially the same argument we re-
jected above. Because the EPA’s action in approving the
redesignation proposal was not arbitrary and capricious,
and because petitioner fails to demonstrate that the
original approval was based on a clearly incorrect find-
ing, the Administrator’s denial of Westmoreland’s peti-
tion cannot be found an abuse of discretion.

The administrative process cannot provide for the
constant reopening of the record to consider new facts,
Vermont Yankee Nuclear Power Corp. v. NRDC, 435
U.S. 519, 555, 98 S.Ct. 1197, 1217, 55 L.Ed.2d 466
(1978), and it is for the agency, not this court to deter-
mine when such reopening is appropriate, unless the
failure to reconsider can be characterized an abuse of
discretion. See City of Santa Rosa v. EPA, 534 F.2d
150, 153 (9th Cir. 1976). Moreover Westmoreland can
request the Northern Cheyenne to apply for a further
reclassification back to Class II standards in light of the
adverse effect of the 1977 Amendments on strip mining,
if there is such an effect. We therefore affirm the EPA’s
denial of Westmoreland’s petition to vacate.

Conclusion

For the reasons given above we hold that the EPA’s
action in approving the Northern Cheyenne Tribe’s re-
designation of its reservation from Class II to Class I
air quality standards was not arbitrary or capricious.
We sim larly reject the numerous other arguments which
Petitioners contend require us to overturn the redesigna-
tion. The Agency’s action in this case is, therefore,
affirmed.

32a

SCHROEDER, Cireuit Judge, dissenting:

I respectfully dissent from the majority’s decision to
decide this case.

The majority opinion covers a far ranging and boulder
strewn field of issues. It decides, for example, that the
EPA acted properly when it dispensed with require-
ments of the Administrative Procedure Act, 5 U.S.C.
§ 553(d) (3) in order to avoid having to consider the
redesignation under the 1977 Clean Air Act Amend-
ments which were then awaiting the President’s signa-
ture. That conclusion seems dubious at best.

An important reason advanced by the majority for
reaching that conclusion is that the EPA has not yet
promulgated regulations under the amended act which
require strip mines to have PSD permits, and the re-
designation thus has not had any measurable adverse
impact upon the petitioners in this case, all of whom
represent strip mining interests. That reason is precisely
the reason I believe the Court should reach no decision
in this case and dismiss on the ground that the case is
not ripe.

As the Supreme Court has summarized:

Without undertaking to survey the intricacies of the
ripeness doctrine it is fair to say that its basic
rationale is to prevent the courts, through avoidance
of premature adjudication, from entangling them-
selves in abstract disagreements over administrative
policies, and also to protect the agencies from judi-
cial interference until an administrative decision has
been formalized and its effects felt in a concrete way
by the challenging parties. The problem is best seen
in a twofold aspect, requiring us to evaluate both the
fitness of the issues for judicial decision and the
hardship to the parties of withholding court con-
sideration.

33a

Abbott Laboratories v. Gardner, 387 U.S. 136, 148-149,
87 S.Ct. 1507, 1515, 18 L.Ed.2d 681 (1967) (footnote
omitted). See also Toilet Goods Association v. Gardner,
387 U.S. 158, 87 S.Ct. 1520, 18 L.Ed.2d 697 (1967) in
which the Court declined to review a final agency action
stating “this is not a situation in which primary conduct
is affected... .” Id. at 165, 87 S.Ct. at 1525.

One leading authority has compiled a catalog of prob-
lems which courts avoid when they decide that a case is
not ripe. For example, issues presented may prove ir-
relevant to the actual conflict which develops; sensitive
constitutional issues may be better avoided; there may
be dangers of intruding into administrative programs
before agency views have crystalized; premature deci-
sions may lead to ill-advised decisions. 13 Wright,
Miller & Cooper, Federal Practice and Procedure § 3532
(1975). This case illustrates all of those problems.

This Court has recently held that a case was not ripe
for decision when a potential to regulate had never been
exercised, when the challenger had not been denied any
privilege and had never been prosecuted, and when there
was real doubt as to whether there would ever be an
assertion of power. International Society for Krishna
Consciousness v. Kleppe, 592 F.2d 529 (9th Cir. 1979).
In the environmental field, the Seventh Circuit has held
that a challenge to an EPA designation of “air quality
maintenance areas” was not ripe for review where the
challengers were “not required to do anything nor to
refrain from doing anything” as a result of the des-
ignation. Bethlehem Steel v. EPA, 536 F.2d 156, 162
(7th Cir. 1976). The D.C. Circuit cited that case when
it also rejected, on ripeness grounds, a challenge to
EPA action. Diamond Shamrock Corp. v. Costle, 580
F.2d 670, 673 n.1 (D.C. Cir. 1978). See also the exten-
sive discussion of ripeness which this Court has approved
in American Petroleum Institute v. Knecht, 456 F.Supp.

34a

889 (D.C. Cal. 1978), affd 609 F.2d 1306 (9th Cir.
1979), stressing the importance of considering the extent
of the hardship on the parties if a case is not decided.
In both Bethlehem Steel and Diamond, a claim of eco-
nomic harm in the nature of long range planning needs
was asserted as necessitating a prompt decision. The
Courts both rejected such claims as insufficient for ripe-
ness purposes. The claim of harm here is even more
attenuated.

This Court requested supplemental briefs in this case
specifically directed to the question of ripeness. In those
briefs, the Northern Cheyenne Tribe takes the position
that the case is not ripe because there is no threatened
or existing harm to strip mining interests as a result
of the challenged designation. The government and the
petitioners agree that strip mines are not now subject
to PSD permit requirements and it is unlikely that they
ever will be. The only claim of possible harm they
present is a contention that fugitive emissions of the
strip mines would be considered in a general assessment
of Class I air quality deterioration, and that violation
of those overall standards might trigger increased state
controls under the State Implementation Plan. The
nature of such controls or their effect on these petitioners
cannot be known at this time. No such controls are
asserted to be imminent. The State of Montana is not
a party here, and the existence of an absent party whose
presence might affect the resolution of issues is still
another factor militating against deciding this case.
If we further consider that the authorization of appro-
priations for the Clean Air Act itself will expire in 1981,
42 U.S.C. § 7404(c), thus necessitating a reconsideration
of the Act in its entirety by Congress this year, the
unnecessary character of today’s decision becomes almost
palpable. See generally the Clean Air Act Debate, 126
Cong. Rec. $14792 (daily ed. Nov. 21, 1980).

35a

Petitioners have expressed fear that the provisions of
the Act, requiring a petition for review to be filed within
60 days after final agency action, would leave them
without the possibility of future recourse to the courts.
42 U.S.C. § 7607 (b) (1) and (2). However, that section
does not ring down a final curtain on review of agency
action after 60 days. The section provides:

Any petition for review under this subsection shall
be filed within sixty days from the date notice of
such promulgation, approval, or action appears in
the Federal Register, except that if such petition is
based solely on grounds arising after such sixtieth
day, then any petition for review under this subsec-
tion shall be filed within sixty days after such
grounds arise.
42 U.S.C. § 7607(b) (1).
I would construe this clause as permitting the peti-

tioners to seek review in this Court when and if future
events establish grounds to create a meaningful con-

troversy.

36a

APPENDIX B

EPA Decision to Approve Redesignation
42 Fed. Reg. 40,695 (1977)

Title 40—Protection of Environment

CHAPTER I—ENVIRONMENTAL
PROTECTION AGENCY

SUBCHAPTER C—AIR PROGRAMS
([FRL 775-7]

PART 52—APPROVAL AND PROMULGATION
OF IMPLEMENTATION PLANS

Montana: Redesignation of Northern Cheyenne Indian
Reservation for Prevention of Significant Deterioration

AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.

SUMMARY: The purpose of this action is to approve
the March 7, 1977, request of the Northern Cheyenne
Tribal Council to redesignate the Northern Cheyenne
Indian Reservation to Class I under EPA’s regulations
for prevention of significant air quality deterioration
(PSD). Class I applies to areas in which practically any
charge in air quality would be considered significant.
On April 29, 1977, EPA published a notice announcing
EPA’s tentative decision to approve the proposed re-
designation and soliciting written public comments.
Neither the comments nor EPA’s detailed review sur-
faced any deficiencies in the proposal. Thus, EPA is
approving the redesignation of the reservation to Class I
as a revision to the Montana implementation plan.

EFFECTIVE DATE: August 5, 1977.

37a

ADDRESSES: Copies of the Northern Cheyenne analysis
and EPA support document are available at: U.S. Envi-
ronmental Protection Agency, Region VIII, Office of
Public Affairs, Suite 900, 1860 Lincoln Street, Denver,
Colorado 80295.

U.S. Environmental Protection Agency, Room 2922, 401
M Street SW., Washington, D.C. 20460.

FOR FURTHER INFORMATION CONTACT:

Louis W. Johnson, Chief, Planning & Operations
Section, Air Programs Branch, U.S. Environmental
Protection Agency, Region VIII, 1860 Lincoln Street,
Denver, Colorado 80295. 303-837-3711.

SUPPLEMENTARY INFORMATION: On December 5,
1974 (39 FR 42510), EPA promulgated regulations for
the prevention of significant air quality deterioration
(PSD). The intent of these regulations is to prevent
deterioration of existing air quality, particularly in areas
currently considered to be pristine. The regulations pro-
vide for three basic classifications applicable to all lands
of the United States. Associated with each classification
are increments which represent the increase in air pol-
lutant concentration that would be considered significant.
Class I applies to areas in which practically any change
in air quality would be considered significant; Class II
applies to areas in which deterioration normally accom-
panying moderate well-controlled growth would be con-
sidered insignificant; and Class III applies to those areas
in which deterioration up to the national standard would
be considered insignificant. Under the regulations, all
areas of the country were initially designated Class II.
The regulations allow States, Federal Land Managers,
and Indian Governing Bodies to reclassify areas under
their jurisdiction to accommodate the social, economic,
and environmental needs and the desires of the local
population.

38a

The PSD regulation is implemented through a precon-
struction review program affecting nineteen categories of
major sources. Such sources cannot receive permission
to construct if their emissions, together with other emis-
sion changes since January 1, 1975, would violate the ap-
plicable increment.

On March 7, 1977, EPA received an official proposal
from the Northern Cheyenne Tribal Council to redesig-
nate the Northern Cheyenne Indian Reservation to Class
I. The request was accompanied by an analysis of the
reasons for the proposed redesignation and the associated
social, economic, and environmental impacts as well as the
regional and national impacts of the proposed redesigna-
tion.

The Northern Cheyenne’s primary reasons for propos-
ing redesignation were stated as follows:

A desire to preserve the lifestyle of the reservation and
the existing culture without disruption caused by further
air quality deterioration.

Adverse effects on human health caused by further
degradation of air quality. The Northern Cheyenne cite
the existing high rate of respiratory illness among resi-
dents of the reservation.

Impacts of further air quality degradation on the
growth of vegetation, especially the ponderosa pine forest.

Potential impacts on visibility of further air quality
degradation.

On April 29, 1977 (42 FR 21819), EPA published a
notice in the FEDERAL REGISTER announcing receipt of the
proposal and soliciting public comment on the request
with respect to the review criteria set forth in 40 CFR
52.21. On June 10, 1977 (42 FR 29937), in response to
requests by interested parties, EPA extended that public
comment period until June 30, 1977.

39a

The April 29, 1977, notice presented a brief discussion
of the requirements for redesignation and the efforts of
the Northern Cheyenne to comply with those require-
ments. That discussion raised one potential cause for dis-
approval of the request—the requirement that an Indian
Governing Body propose the redesignation with the
approval of the Secretary of Interior. As indicated in the
notice, EPA had received a communication from an offi-
cial of the Bureau of Indian Affairs. EPA was uncertain
of the authority of the BIA official and requested a clari-
fication from the Office of the Secretary of Interior. The
Secretary’s office responded that the BIA official had been
delegated authority to give Secretarial approval in such
matters. Thus, EPA has determined that this require-
ment was met by the Northern Cheyenne Tribal Council.

COMMENTS

There were 62 comments submitted to EPA. While it is
not practical to discuss every comment here, the major
points are discussed below. The comments are discussed
in more detail in the document entitled “EPA Support
Document for Northern Cheyenne Redesignation Re-
quest,” referenced at the end of this preamble.

MORE PUBLIC INPUT

Some argued that EPA should hold extensive public
hearings and solicit additional public comment before
taking final approval action on the redesignation. The
PSD regulation, which has been upheld in “Sierra Club
v. EPA.” 540 F.2d 1114 (D.C. Cir. 1976),' contains pro-

The Supreme Court agreed to review this decision on April 4,
1977. EPA strongly supports the validity of the PSD regulations
and will fully implement and enforce them unless EPA's position is
overturned in the Supreme Court. Several other U.S. Courts of
Appeal have agreed with the D.C. Circuit; none have disagreed.
Moreover, Congress has on several occasions rejected attempts to
delete PSD authority from the Clean Air Act.

40a

cedures providing full opportunity for public hearings
and comment. Such procedures have been complied with
in this case.

The Northern Cheyenne held a public hearing on Janu-
ary 17, 1977, in Lame Deer, Montana, which is accessible
to people living in the area affected by the redesignation.
They also held the record open following the hearing to
permit further public comments. There was a great
amount of interest and comments (both pro and con)
were submitted and integrated into the Northern Chey-
enne’s final analysis.

EPA also provided its own period for public comment
on the Northern Cheyenne proposal and even extended the
period an additional 30 days. Because the regulation
limits EPA’s scope of review on this proposal to deter-
mining whether procedural requirements were complied
with and whether the Tribe arbitrarily or capriciously
disregarded certain factors, nothing would be gained by
further prolonging the comment period. In fact, doing so
would be unfair to the Northern Cheyenne, who have
completed the lengthy task of complying with all of the
redesignation procedures and are now entitled to a resolu-
tion of their request.

MONTANA LAWS ADEQUATE

There were several comments that the Montana Sitting
Act and/or the Montana environmental rules are adequate
to protect the environment. Montana’s rules and regula-
tions contain no provisions for prevention of significant
deterioration. Therefore, in December 1974, EPA, pur-
suant to a court decision, disapproved the State’s imple-
mentation plan and promulgated the PSD regulations. As
noted above, these regulations have been upheld by the
D.C. Circuit Court of Appeals.

4la

EXISTING LIFE STYLE ALTERED

Many expressed concern that farming activities on or
near the reservation would be adversely affected or that
the redesignation could hinder the ways of life of people
holding land. Another individual stated that he could not
understand why Class I designation was needed in an
area not currently experiencing air pollution problems.
The intent of the PSD regulations is to maintain as
nearly as practicable the existing air quality in desig-
nated areas where local priorities so require. As such,
they are effective in clean air areas—not in areas that
are violating ambient standards. They are implemented
through a new source review program to restrict the
emissions from certain major industrial sources if they
would cause significant air quality degradation. The regu-
lation would have no effect upon the operation of existing
facilities or upon minor sources. Since farming is not a
major source of industrial pollution, farming activities
would also not be affected. Thus, the PSD regulation and
the redesignation would not inhibit farming activities or
alter anyone’s existing way of life. On the contrary, Class
I designation would more effectively maintain the existing
way of life than any other designation.

EIS REQUIRED BY NEPA

Some argued that EPA must comply with the require-
ments of the National Environmental Policy Act
(NEPA) prior to any decision on the Northern Cheyenne
redesignation request. Congress, however, has made its
intentions abundantly clear in this regard: “No action
taken under the Clean Air Act shall be deemed a major
Federal action significantly affecting the quality of the
human environment within the meaning of the National
Environmental Policy Act of 1969.” 15 U.S. C. A. 793(c)
(1). In any event, the Northern Cheyenne analysis of the
social, environmental and economic effects of the redesig-

42a

nation, the extensive public comments both to the tribe
and EPA, and the agency’s own evaluation of all this in-
formation, adequately accomplish the goals and purposes
of NEPA.

CoLsTRiP 3 & 4 AFFECTED

Several comments expressed concern that a Class I
designation would prevent the construction of electric
power plant units known as Colstrip 3 & 4, which are
planned for a site near the Northern Cheyenne reserva-
tion. The commentors argued that the result would be a
shortage of power in Montana and the Pacific Northwest.
While dispersion modeling presented in the analysis and
performed by EPA indicates that the units, as proposed,
would violate the Class I increments for SO, on the reser-
vation, the rédesignation would not necessarily prevent
their construction. EPA’s analysis indicates that approxi-
mately 90 percent capture of the SO, emissions from the
new units would reduce emissions sufficiently to avoid
violation of the increment. Therefore, redesignation of
the reservation should require additional control efforts
which are achievable by currently available control tech-
nology for the proposed new units.

REVERSIBILITY

One individual expressed doubts that the Class I desig-
nation could be reversed. The Northern Cheyenne could,
if their priorities were to change in the future, seek re-
designation back to Class II or Class III through the same
procedures implemented in their effort to reclassify to
Class I. However, as was pointed out in the Northern
Cheyenne’s analysis, Class II and Class III designations
are not nearly so reversible. Once the air quality on the
reservation is deteriorated, it would be extremely difficult
to renew it to its original quality.

43a

NATIONAL IMPACTS

Many argued that the redesignation would have signifi-
cant impacts on national interests, specifically by restrict-
ing energy production. As discussed in EPA’s proposal of
April 29, there are two major concerns related to energy
production; (a) strip mining of coal, and (b) conversion
of coal to electric power or gas. Since strip mines are
not subject to the preconstruction review program of the
PSD regulation, they would not be directly affected by a
redesignation. On the other hand, coal conversion facili-
ties would be affected. The Northern Cheyenne analyzed
the impacts of various development scenarios and reported
that large facilities located within ten to thirty miles of
the reservation border might violate the Class I incre-
ment. Therefore, the planning of such facilities would have
to be done more carefully with regard to location and,
pollution control. However, the redesignation would not
prevent the construction of new facilities in the general
area. Given the relatively small area of the reservation
(700 square miles), the redesignation should not signifi-
cantly affect national energy interests.

REGIONAL IMPACTS

There were comments that the potential restrictions
upon energy development may affect regional interests.
The potential regional impacts primarily involve energy
development on the Crow Reservation, which is adjacent
to the western border of the Northern Cheyenne Reser-
vation. EPA received comments from eleven members of
the Crow Tribe and from the law offices of Lynaugh and
Fitzgerald, which serves as designated legal counsel for
the Crow Tribe.

In discussing comments related to the potential impacts
of the redesignation upon the Crow Tribe it should be
noted that the Crow Tribal Constitution and By-laws pro-
vide that only the Crow Tribal Council which consists of

44a

all voting members of the Crow Tribe, can determine a
Tribal position or empower a representative to speak for
the Tribe on a matter such as redesignation. There has
been no indication to date that the Tribal Council has
developed a position on the Northern Cheyenne redesig-
nation proposal or empowered anyone to represent the
Council in this matter. While some tribal members and
their legal counsel have expressed opposition to the re-
designation because of its potential impact upon develop-
ment of coal reserves, several members of the Crow Tribe
have also expressed support for the redesignation.

As discussed previously, coal mining in the eastern
portion of the Crow Reservation would be under no addi-
tional restriction as a result of this reclassification. How-
ever, coal conversion facilities could be restricted depend-
ing upon size, spacing, and control technology. The exact
nature of the restriction is difficult to determine since
final development plans have not been made and the only
proposed development to date is for coal mines producing
coal for export.

APPROVAL

Section 52.21(c) (3) (vi) states that the Administrator
will approve a request for redesignation by an Indian
Governing Body unless (1) the procedural requirements
previously discussed have not been followed; or (2) the
Indian Governing Body has arbitrarily and capriciously
disregarded the considerations of growth, environmental,
and economic effects, or national or regional interests.
Both the Northern Cheyenne analysis and the EPA sup-
port document show that the Northern Cheyenne have
fully complied with all of the procedural requirements,
and that the Northern Cheyenne have considered all of
the relevant factors and have not arbitrarily and caprici-
ously disregarded them.

EPA therefore approves the Northern Cheyenne pro-
posal and herein promulgates a revision to the Montana

45a

State Implementation Plan which redesignates the
Northern Cheyenne Indian Reservation as Class I. Addi-
tional support for this approval can be found in the docu-
ment entitled “EPA Support Document for Northern
Cheyenne Redesignation Request,” which is part of this
rulemaking action. This document is available for in-
spection and copying at the addresses listed in the intro-
duction to this notice.

This action is effective immediately. There is good
cause for making the action immediately effective since
EPA has been holding in abeyance a preconstruction per-
mit request pending final action on the redesignation.
Furthermore, no useful purpose would be served by
deferring the effectiveness of this action for thirty days
because new applications for construction would have to
be evaluated in light of this action in any event.

(Sees. 110, 301, Clean Air Act, as amended (42 U.S.C.
1857c-"_ 1857g).)

Dated: August 5, 1977.
DouGLas M. CosrLx,
Administrator.
Part 52 of Chapter I, Title 40 of the Code of Federal
Regulations is amended as follows:
Subpart BB—Montana

In § 52.1382, paragraph (c) is added as follows:
§ 52.1382 Significant deterioration of air quality.

(e) () Except as set forth in this paragraph, all areas
of Montana are designated Class II.

(2) The Northern Cheyenne Indian Reservation is des-
ignated Class I.

[FR Doc. 77-23111 Filed 8-5-77 ; 5:16 pm]

46a
APPENDIX C
Clean Air Act as Amended

42 U.S.C. §§ 7470-7479 (Supp. III 1979) provide, in pertinent
part:

PART C—PREVENTION OF SIGNIFICANT
DETERIORATION OF AIR QUALITY

SUBPART I—CLEAN AIR

§ 7470. Congressional declaration of purpose

The purposes of this part are as follows:

(1) to protect public health and welfare from any
actual or potential adverse effect which in the Ad-
ministrator’s judgment may reasonably be antici-
pate to occur from air pollution or from exposures
to pollutants in other media, which pollutants origi-
nate as emissions to the ambient air), not with-
standing attainment and maintenance of all national
ambient air quality standards;

(2) to preserve, protect, and enhance the air
quality in national parks, national wilderness areas,
national monuments, national seashores, and other
areas of special national or regional natural, recrea-
tional, scenic, or historic value;

(3) to insure that economic growth will occur in
a manner consistent with the preservation of exist-
ing clean air resources;

(4) to assure that emissions from any source in
any State will not interfere with any portion of the
applicable implementation plan to prevent significant
deterioration of air quality for any other State; and

(5) to assure that any decision to permit in-
creased air pollution in any area to which this sec-

1 So in original. Probably should read “anticipated”.
2So in original. Section was enacted without an opening
parenthesis.

47a

tion applies is made only after careful evaluation of
all the consequences of such a decision and after ade-
quate procedural opportunities for informed public
participation in the decisionmaking process.
(July 14, 1955, ch. 360, title I, § 160, as added Aug. 7,
1977, Pub. L. 95-95, title I, § 127(a), 91 Stat. 731.)

§ 7471. Plan requirements

In accordance with the policy of section 7401(b) (1)
of this title, each applicable implementation plan shall
contain emission limitations and such other measures as
may be necessary, as determined under regulations
promulgated under this part, to prevent significant de-
terioration of air quality in each region (or portion there-
of) identified pursuant to section 7407(d) (1) (D) or (E)
of this title.

(July 14, 1955, ch. 360, title I, § 161, as added Aug. 7,
1977, Pub. L. 95-95, title I, §127(a), 91 Stat. 731.)

§ 7472. Initial classifications.
(a) Areas designated as class I
Upon the enactment of this part, all—

(1) international parks,
(2) national wilderness areas which exceed 5,000
acres in size.
(3) national memorial parks which exceed 5,000
acres in size, and
(4) national parks which exceed six thousand
acres in size,
and which are in existence on August 7, 1977, shall be
class I areas and may not be redesignated. All areas
which were redesignated as class I under regulations
promulgated before August 7, 1977, shall be class I areas
which may be redesignated as provided in this part.

(b) Areas designated as class II

All areas in such State identified pursuant to section
7407 (d) (1) (D) or (E) of this title which are not estab-

48a

lished as class I under subsection (a) of this section shall
be class II areas unless redesignated under section 7474
of this title.

(July 14, 1955, ch. 360, title I, § 162, as added Aug. 7,
1977, Pub. L. 95-95, title I, § 127(a), 91 Stat. 731, and
amended Nov. 16, 1977, Pub. L. 95-190. § 14(a) (40),
91 Stat. 1401.)

§ 7473. Increments and ceilings

(a) Sulfur oxide and particulate matter; requirement
that maximum allowable increases and maximum
allowable concentrations not be exceeded

In the case of sulfur oxide and particulate matter, each
applicable implementation plan shall contain measures as-
suring that maximum allowable increases over baseline
concentrations of, and maximum allowable concentrations
of, such pollutant shall not be exceeded. In the case of
any maximum allowable increase (except an allowable
increase specified under section 7475 (d) (2) (C) (iv) of
this title) for a pollutant based on concentrations per-
mitted under national ambient air quality standards for
any period other than an annual period, such regulations
shall permit such maximum allowable increase to be ex-
ceeded during one such period per year.

(b) Maximum allowable increases in concentrations over
baseline concentrations

(1) For any class I area, the maximum allowable
increase in concentrations of sulfur dioxide and particu-
late matter over the baseline concentration of such pollu-
tants shall not exceed the following amounts:

Maximum allowable increase (in

Pollutant micrograms per cubic meter)
Particulate matter:
Annual geometric mean pe tes 5
Twenty-four-hour maximum 8 10

Sulfur dioxide:
Annual arithmetic mean 2
Twenty-four hour maximum eit 5
Three-hour maximum 25

49a

(2) For any class II area, the maximum allowable
increase in concentrations of sulfur dioxide and particu-
late matter over the baseline concentration o

[Text truncated at 120,000 characters. The full text is on the page linked above.]

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385008_0159%3A0. Public record. Not legal advice.
