# Appendix — Michigan v. Environmental Protection Agency

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386014_1310%3A2

## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 2001
- **Citation:** 532 U.S. 970

## Text

o ©O0-W

No. ——

IN THE
Supreme Court of the Anited States

STATE OF MICHIGAN, et al.,

Petitioners,
Vv.

U.S. ENVIRONMENTAL PROTECTION AGENCY,
Respondent.

On Petition for a Writ of Certiorari
to the United States Court of Appeals
for the District of Columbia Circuit

APPENDIX TO PETITION
FOR A WRIT OF CERTIORARI

JENNIFER M. GRANHOLM HENRY V. NICKEL
ATTORNEY GENERAL (Counsel of Record)
THOMAS L. CASEY DAVID S. HARLOW
SOLICITOR GENERAL HUNTON & WILLIAMS
JOHN FORDELL LEONE 1900 K Street, N.W.
ASSISTANT ATTORNEY GENERAL Washington, D.C. 20006
300 S. Washington Square (202) 955-1500

Suite 315 Counsel for Salt River

Lansing, Michigan 48913 Project Agricultural

(517) 373-7540 . Improvement and Power
Counsel for the State of District and Public Service
Michigan

November 9, 2000

Company of New:Mexico

[Additional Counsel Listed Inside]

WILSON-EPES PRINTING Co., INC. — (202) 789-0096 -— WASHINGTON, D. C. 20001

JOHN B. WELDON, JR.

KAREN S. GAYLORD

SALMON, LEWIS & WELDON, P.L.C.

4444 North 32nd Street

Phoenix, Arizona 85018

(602) 801-9060

Counsel for Salt River Project
Agricultural Improvement and
Power District

BRIAN J. RENAUD

HOWARD & HOWARD ATTORNEYS, P.C.

Pinehurst Office Center

39400 Woodward Avenue, Suite i01

Bloomfield Hills, Michigan 48304

(248) 645-1483

Counsel for the National Association of
Manufacturers, the Michigan Chemical
Council, the Timber Producers Association
of Michigan and Wisconsin, Inc., and the
Rhinelander Area Chamber of C ommerce, Inc.

mieten

APPENDIX TABLE OF CONTENTS

Arizona Public Service Co., et al., v. U.S.
Environmental Protection Agency, 211 F.3d

1280 (D.C. 2000)........cccesceeeeseeseeseseeeeseessenetneneteenenens la
Tribal Authority Rule, 63 Fed. Reg. 7254,

et seg. (February 12, 1998)........::ssceesereeseseersesseeeee 50a
Order (Denying Petition for Rehearing)......... Salata 135a
Order (Denying Petition for

Rehearing €71 DAN) ......ccccccceceseseseeseseneeeneesenetseneees 137a
JUd GME ............secseseeeeceeesesesseeeseneneesenenensesseeeeneees 139a
Relevant Statutory ProviSiOns ...........::::seseeeereeees 14la

la

APPENDIX A

UNITED STATES COURT OF APPEALS
For the District of Columbia Circuit

Argued January 27, 2000 Decided May 5, 2000
No. 98-1196

Arizona Public Service Company,
Petitioner

Environmental Protection Agency,
Respondent

State of Michigan, et al.,
Intervenors

Consolidated with
98-1208, 98-1206, 98-1207, 98-1208

On Petitions for Review of an Order of the
Environmental Protection Agency

Thomas Sayre Llewellyn argued the cause for petitioner
Arizona Public Service Company. With him on the briefs
were Michael B. Wood and George Y. Sugiyama.

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Henry V. Nickel argued the cause for petitioners National
Association of Manufacturers, et al. and Intervenors State of
Michigan and Central and South West Services, Inc. With
him on the briefs were David S. Harlow, John B. Weldon, Jr.,
Brian J. Renaud, Jennifer M. Granholm, Attorney General
for the State of Michigan, and John Fordell Leone, Assistant
Attorney General for the State of Michigan. Norman W.
Fichthorn, Cynthia H. Evans, Roy S. Belden, Janice S.
Amundson, Donald D. Skypeck, Harold P. Quinn, Jr., and
Thomas L. Casey, Solicitor General for the State of
Michigan, entered appearances.

Thomas A. Lorenzen and Cynthia A. Drew, Attorneys,
United States Department of Justice, argued the cause for
respondent. With them on the briefs were Lois Schiffer,
Assistant Attorney General, Anthony F. Guadagno and
Michael W. Thrift, Attorneys, United States Environmental
Protection Agency.

Jill E. Grant argued the cause for intervenors Gila River
Indian Community, et al. With her on the brief were William
W. Quinn and Jeanette Wolfley. Reid P. Chambers entered
appearances.

Before: Edwards, Chief Judge, Ginsburg and Rogers,
Circuit Judges.

Opinion for the Court filed by Chief Judge Edwards.

Opinion concurring in part and dissenting from Part II.A.
filed by Circuit Judge Ginsburg.

Edwards, Chief Judge: In 1990, Congress passed a
compendium of amendments to the Clean Air Act (““CAA” or
“the Act”). This case concerns those amendments that
specifically address the power of Native American nations

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(or “tribes”) to implement air quality regulations under the
Act. Petitioners challenge the Environmental Protection
Agency’s (“EPA” or “the Agency”) regulations, promulgated
in 1998, implementing the 1990 Amendments. See Indian
Tribes: Air Quality Planning and Management, 63 Fed. Reg.
7254 (1998) (to be codified at 40 C.F.R. pts. 9, 35, 49, 50,
and 81) (“Tribal Authority Rule”). Petitioners’ principal
contention is that EPA has granted too much authority to
tribes.

Petitioners’ primary challenges focus on two issues. The
first is whether Congress expressly delegated to Native
American nations authority to regulate air quality on all land
within reservations, including fee land held by private
landowners who are not tribe members. The second is
whether EPA has properly construed “reservation” to include
trust lands and Pueblos.

Petitioners also raise several other challenges to the
Tribal Authority Rule. They argue: (1) that EPA violated
the Act in authorizing tribes to administer programs affecting
non-reservation “allotted lands” and “dependent Indian
communities”; (2) that EPA unlawfully declined to accept
public comments on applications to regulate by Native
American nations; (3) that EPA improperly held that the
1990 Amendments abrogated preexisting contracts under
which tribes agreed not to regulate certain privately-held
land; and (4) that EPA improperly interpreted the 1990
Amendments to exempt Native American nations from
certain of the Act’s judicial review requirements.

We find petitioners’ challenges to be mostly meritless.
We hold that the Agency did not err in finding delegated
authority to Native American nations to regulate all land
within reservations, including fee land owned by

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nonmembers. We also uphold EPA’s construction of
“reservation” to include trust lands and Pueblos. Likewise,
we reject the challenge to the Agency’s decision to exempt
Native American nations from some of the Act’s judicial
review requirements. Petitioners’ complaint regarding the
adequacy of public comment on tribal applications is moot.
And petitioners’ claim that EPA has abrogated preexisting
agreements not to regulate is unripe for review, as is one of
petitioners’ arguments challenging the Agency’s decision on
the Act’s judicial review requirements.

I. BACKGROUND
A. Statutory Background

The Act establishes a framework for . federal-state
partnership to regulate air quality. The provisions of the
1990 Amendments under review, fairly read, constitute an
attempt by Congress to increase the role of Native American
nations in this partnership. There are three areas of
regulation under the Act particularly relevant to this case.

First, the Act grants states primary responsibility for
assuring that air quality meets national standards. See 42
U.S.C. § 7407(a) (1994). States meet this burden by
submitting state implementation plans (“SIPs”) _ that
“provide[ ] for implementation, maintenance, and
enforcement” of these standards. /d § 7410(a)(1) (1994).
SIPs must be approved by the Agency before they may be
federally enforced. In 1990, § 7410 was amended to
authorize Native American nations to submit tribal
implementation plans (““TIPs”) “applicable to all areas . . .
located within the exterior boundaries of the reservation.” /d

§ 7410(0).

Sa

Second, the Act permits states and Native American
nations to “redesignate” lands pursuant to the Act’s
Prevention of Significant Deterioration (“PSD”) program.
See id. § 7474(a), (c) (1994). Under the PSD program, land
is classified as Class I, II, or Ill. The land’s classification
determines the maximum allowable increase over the
baseline by which concentrations of sulfur dioxide and other
particulate matter shall not be exceeded. See id § 7473
(1994). Land may, under certain circumstances, be
redesignated as Class I, II, or Ill. See id § 7474(a). Since
1977, Native American nations have had authority to
redesignate land “within the exterior boundaries of
reservations.” Jd. § 7474(c).

Finally, under Title V of the Act, states must develop a
comprehensive permitting program applicable to major air
pollution sources. See id. § 7661a (1994). The Agency must
approve the permitting program; if none is approved, EPA
must promulgate a permitting program that will be federally
enforceable. See id. § 7661a(d)(3). One of the requirements
for approval is that the program provide for judicial review of
permitting actions. See id § 7661a(b)(6), (7). Petitioners
claim that the Agency has improperly interpreted the 1990
Amendments to give Native American nations the possibility
of exemption from some portions of the judicial review
requirements.

Importantly, the 1990 Amendments added language to
the Act granting EPA the “author[ity] to treat Indian tribes as
States under this chapter,” id § 7601(d)(1)(A) (1994),
provided tribes meet the following requirements:

(A) the Indian tribe has a governing body carrying out
substantial governmental duties and powers;

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(B) the functions to be exercised by the Indian tribe
pertain to the management and protection of air
resources within the exterior boundaries of the
reservation or other areas within the tribe’s
jurisdiction; and

(C) the Indian tribe is reasonably expected to be
capable, in the judgment of the Administrator, of
carrying out the functions to be exercised in a manner
consistent with the terms and purposes of this chapter
and all applicable regulations.

id. § 7601(d)(2).

The 1990 Amendments also directed EPA to promulgate
regulations “specifying those provisions of this chapter for
which it is appropriate to treat Indian tribes as States.” Jd. If
the Agency “determines that the treatment of Indian tribes as
identical to States is inappropriate or administratively
infeasible,” EPA may announce other ways for the Agency to
administer the program “so as to achieve the appropriate
purpose.” /d. § 760i(d)(4).

B. The Challenged Rule

On August 25, 1994, EPA , -oposed rules to implement
the 1990 Amendments. See Proposed Tribal Authority Rule,
59 Fed. Reg. 43,956 (1994) (proposed Aug. 25, 1994). On
February 12, 1998, after receiving and responding to public
comments, EPA issued the final Tribal Authority Rule. See
Tribal Authority Rule, 63 Fed. Reg. at 7254. The Agency
first found that the 1990 Amendments constitute a delegation
of federal authority to regulate air quality to Native American
nations within the boundaries of reservations, regardless of
whether the land is owned by the tribes. See id) The Agency

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read the statute to support this “territorial view of tribal
jurisdiction,” authorizing a “tribal role for all air resources
within the exterior boundaries of Indian reservations without
distinguishing among various categories of on-reservation
land.” Jd. EPA believed that this “territorial approach . . .
best advances rational, sound, air quality management.” /d. at
7255. Thus, the Agency determined that Congress delegated
to tribes the authority to regulate air quality in areas within
the exterior boundaries of a reservation.

The Act does not define “reservation” for the purposes of
tribal regulation. EPA interpreted “reservation” to include
“trust lands that have been validly set apart for the use of a
tribe even though the land has not been formally designated
as a reservation.” Jd. at 7258. The Agency explained that
this interpretation was consistent with the Supreme Court’s
definition of “reservation” in Oklahoma Tax Commission v.
Citizen Band Potawatomi Indian Tribe of Oklahoma, 498
U.S. 505 (1991). EPA held that it would decide on a case-
by-case basis whether other types of land may be considered
“reservations” under the Act. See Tribal Authority Rule, 63
Fed. Reg. at 7258.

ee

For areas not within a “reservation,” the Agency
determined that a tribe would be allowed to regulate such
areas if the tribe could demonstrate inherent jurisdiction over
the particular non-reservation area under general principles of
federal Indian law. See id. at 7259. This means that tribes
may propose air quality regulations in “allotted land” and
“dependent Indian communities” provided they can
otherwise demonstrate inherent jurisdiction over these areas.
Allotted land is land “owned by individual Indians and either
held in trust by the United States or subject to a statutory
restriction on alienation.” Felix S. Cohen, Handbook of
Federal Indian Law 40 (1982). Dependent Indian

Sree Sand DR OD OE

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communities include “those tribal Indian communities under
federal protection that did not originate in either a federal or
tribal act of ‘reserving,’ or were not specifically designated a
reservation.” /d. at 38.

Some commenters claimed that the Act precludes tribal
regulation in the form of TIPs in non-reservation areas.
These parties argued that the section of the Act authorizing
TIPs includes a specific provision limiting such regulation
within reservations lands. See 42 U.S.C. § 7410(0)
(providing that TIPs “shall become applicable to all areas . . .
located within the exterior boundaries of the reservation”).
EPA, however, interpreted “reservation” in § 7410(0) to be
“simply a description of the type of area over which a TIP
may apply,” and ruled that “the provision was [not] intended
to limit the scope of TIPs to reservations.” Tribal Authority
Rule, 63 Fed. Reg. at 7259. EPA’s ruling was informed by
§ 7601(d)(1) under which the Agency “decided to include
most of the provisions of [§ 7410] in the group of provisions
for which treatment of tribes in the same manner as a state is
appropriate.” /d.

The final aspect of the Tribal Authority Rule under
review relates to the provisions covering judicial review of
permitting programs. Title V of the Act authorizes regulating
authorities to establish permitting programs for pollution
sources. Section 7661a(b)(6) requires the authority to afford
“an opportunity for judicial review in State court of the final
permit action.” 42 U.S.C. § 7661a(b)(6). In its proposed
rule, EPA indicated an intention to treat tribes like states with
respect to judicial review. See Proposed Tribal Authority
Rule, 59 Fed. Reg. at 43,972. In its final rule, EPA withdrew
this proposal, requiring instead that, for Title V programs,
tribes must meet all of the requirements of § 7661a(b)(6) and
(7) “except those provisions that specify that review of final

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action under the Title V permitting program be ‘judicial’ and
‘in State court.”” Tribal Authority Rule, 63 Fed. Reg. at
7261. EPA adopted this provision in response to concerns
over tribal sovereign immunity. See Jd. Thus, EPA indicated
its willingness “to consider alternative options, developed
and proposed by a tribe in the context of a tribal CAA Title V
program submittal, that would not require tribes to waive
their sovereign immunity to judicial review but, at the same
time, would provide for an avenue for appeal of tribal
government action or inaction to an independent review body
and for injunctive-type relief to which the Tribe would agree
to be bound.” /d. at 7262.

Petitioner Arizona Public Service Company (“APS”)
filed a petition for review on April 10, 1998. The remaining
petitions for review were filed shortly thereafter; the petitions
were subsequently consolidated for consideration by this
court.

IT. ANALYSIS

Petitioners raise -several challenges to EPA’s final rule.
First, petitioners claim that the 1990 Amendments cannot be
interpreted to constitute an express delegation of authority to
Native American nations to regulate privately owned fee land
located within a reservation. Second, petitioners argue that
EPA impermissibly interpreted the word “reservation” to
include lands held in trust and Pueblos. Third, petitioners
contend that EPA impermissibly interpreted the Act to permit
Native American nations to issue TIPs and redesignations for
land outside the boundaries of a reservation. Fourth,
petitioners assert that EPA has failed to allow public
comment on tribal applications to issue regulations under the
Act. Fifth, petitioners argue that EPA’s interpretation of the
1990 Amendments effectively abrogates preexisting

an

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agreements between tribes and regulated industry. Finally,
petitioners contend that EPA’s final rule covering judicial
review procedures for Title V programs was promulgated
with insufficient notice to affected parties and that it rests on
an impermissible interpretation of the Act.

We analyze EPA’s interpretation of the Act under
familiar principles. “Where congressional intent is
ambiguous, . . . an agency’s interpretation of a statute
entrusted to its administration is entitled to deference, so long
as it is reasonable.” Shell Oil Co. v. EPA, 950 F.2d 741, 747
(D.C. Cir. 1992) (per curiam) (citing Chevron U.S.A. Inc. v.
Natural Resources D-fense Council, Inc., 467 U.S. 837, 842-
43 (1984)). Our primary concern under Chevron is to ensure
that an agency acts within the bounds of congressional
delegation. “[A]s long as the agency stays within
[Congress’] delegation, it is free to make policy choices in
interpreting the statute, and such ‘interpretations are entitled
to deference.” Arent v. Shalala, 70 F.3d 610, 615 (D.C. Cir.
1995S).

In evaluating the extent of congressional delegation, a
reviewing court first exhausts the traditional tools of statutory
construction to determine whether a congressional act admits
of plain meaning. See Bell Atlantic Tel. Cos. v. FCC, 131
F.3d 1044, 1047 (D.C. Cir. 1997). If, in light of its text,
legislative history, structure, and purpose, a statute is found
to be plain in its meaning, “then Congress has expressed its
intention as to the question, and deference is not
appropriate.” /d. If congressional intent is ambiguous, then
we move to the second step of the Chevron analysis, and
uphold an agency’s interpretation if it is reasonable. The
reasonableness prong includes an inquiry into whether the
agency reasonably filled a gap in the statute left by Congress.
See United Techs. Corp. v. EPA, 821 F.2d 714, 723 (D.C.

lla

Cir. 1987) (upholding filling of gap that is rational and “not
inconsistent” with amendments to the Resource Conservation
and Recovery Act of 1976).

A. Express Delegation of Authority to Native American
Nations

It is undisputed that Native American nations retain
significant sovereign power. Native American nations have
inherent power to determine forms of tribal government, to
determine tribal membership, to make substantive criminal
and civil laws governing internal matters, to administer tribal
judicial systems, to exclude others from tribal lands, and, to
some extent, to exercise civil jurisdiction over nonmembers,
including non-Indians. See Cohen, Handbook of Federal
Indian Law, at 247-53; Montana v. United States, 450 U.S.
544, 564 (1981). It is this last category of power that is at
issue in the instant case, because petitioners claim that the
1990 Amendments to the Act do not authorize tribes to
administer the Act over fee land within a reservation that is
owned by nonmembers. As the Supreme Court has held,

exercise of tribal power beyond what is necessary to
protect tribal self-government or to control internal
relations is inconsistent with the dependent status of
the tribes, and so cannot survive without express
congressional delegation.

Montana, 450 U:S. at 564.

There is no doubt that tribes hold “inherent sovereign
power to exercise some forms of civil jurisdiction over non-
Indians on their reservations, even on non-Indian fee lands.”
Id. at 565. For instance, if the behavior of non-Indians on fee
lands within the reservation “threatens or has some direct

12a

etfect on the political integrity, the economic security, or the
health or welfare of the tribe,” the tribe may regulate that
activity. /d. at 566. To satisfy this standard, however, a tribe
must show, on a case-by-case basis, that the disputed activity
constitutes a “demonstrably serious” impact that “imperil[s]
the political integrity, the economic security, or the health
and welfare of the tribe.” Brendale v. Confederated Tribes
and Bands of the Yakima Indian Nation, 492 U.S. 408, 431
(1989) (plurality opinion). EPA suggests, not implausibly,
that “inherent sovereign power” may apply to tribal
regulation under the Act of fee lands within a reservation, see
Proposed Tribal Authority Rule, 59 Fed. Reg. at 43,598 n.5,
but the Agency does not press this argument on appeal.
Rather, EPA contends that the 1990 Amendments constitute
an express congressional delegation to the tribes of the
authority to regulate air quality on fee lands located within
the exterior boundaries of a reservation.

“There are few examples of congressional delegation of
authority to tribes.” Cohen, Handbook of Federal Indian
Law, at 253. However, as is the case in any situation in
which we are called upon to find congressional intent in
construing a contested statute, we start with traditional
sources of statutory interpretation, including the statute’s
text, structure, purpose, and legislative history. See, e.g.,
Block v. Community Nutrition Inst., 467 U.S. 340, 345 (1984)
(“Whether and to what extent a particular statute precludes
judicial review is determined not only from its express
language, but also from the structure of the statutory scheme,
its objectives, its legislative history, and the nature of the
administrative action involved.”). Our review of the CAA
indicates that EPA’s interpretation comports with
congressional intent.

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Section 7601(d), in pertinent part, authorizes EPA to treat
otherwise eligible tribes as states if “the functions to be
exercised by the Indian tribe pertain to the management and
protection of air resources within the exterior boundaries of
the reservation or other areas within the tribe’s jurisdiction.”
42 U.S.C. § 7601(d)(2)(B). The statute’s clear distinction
between areas “within the exterior boundaries of the
reservation” and “other areas within the tribe’s jurisdiction”
carries with it the implication that Congress considered the
areas within the exterior boundaries of a tribe’s reservation to
be per se within the tribe’s jurisdiction. Thus, EPA correctly
interpreted § 7601(d) to express congressional intent to grant
tribal jurisdiction over nonmember owned fee land within a
reservation without the need to determine, on a case-specific
basis, whether a tribe possesses “inherent sovereign power”
under Montana.

Petitioners do not dispute that an important purpose of
the Act is to ensure effective enforcement of clean air
standards. Obviously, this is best done by allowing states
and tribes to establish uniform standards within their
boundaries. As EPA explained in its proposed rule,

[aJir pollutants disperse over areas several and
sometimes even hundreds of miles from their source
of origin, as dictated by the physical and chemical
properties of the pollutants at issue and the prevailing
winds and other meteorological conditions. The high
mobility of air pollutants, resulting areawide effects
and the seriousness of such impacts, underscores the
undesirability of fragmented air quality management
within reservations.

Proposed Tribal Authority Rule, 59 Fed. Reg. at 43,959.

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——— Tt... -

Accepting petitioners’ interpretation of the 1990
Amendments would result in a “checkerboard” pattern of
regulation within a reservation’s boundaries that would be
inconsistent with the purpose and provisions of the Act.
Indeed, the Supreme Court has condemned such an approach.
See Moe v. Confederated Salish and Kootenai Tribes of
Flathead Reservation, 425 U.S. 463, 479 (1976) (rejecting
checkerboard approach in interpreting § 6 of the General
Allotment Act, 25 U.S.C. § 349); Seymour v. Superintendent
of Washington State Penitentiary, 368 U.S. 351, 358 (1962)
(terming “impractical” a pattern of checkerboard jurisdiction
under 18 U.S.C. § 1151).

Finally, we note that the legislative history of the 1990
Amendments supports EPA’s interpretation. As originally
introduced, 42 U.S.C. § 7601(d) differed in significant
respect from the final adopted version. The original
§ 7601(d)(2)(B) provided that treatment of tribes as states
was authorized if “the functions to be exercised by the Indian
tribe are within the area of the tribal government's
Jurisdiction.” §. 1630, 101st Cong. § 113(a) (1990),
reprinted in Senate Comm. On Env’t and Pub. Works, 103D
Cong., Legislative History of the Clean Air Act Amendments
of 1990, at 4283 (1993) (emphasis added); see also H.R.
2323, 101" Cong. § 604 (1989), reprinted in Legislative
History of the Clean Air Act Amendments of 1990, at 4101.
The statute as finally enacted, however, treats tribes and
states as equivalent if the tribe is to exercise functions
“within the exterior boundaries of the reservation or other
areas within the tribe’s jurisdiction.” 42 U.S.C.
§ 7601(d)(2)(B).

Thus, Congress moved from authorizing tribal regulation

over the areas “within the tribal government’s jurisdiction” |
(an admittedly general category) to a bifurcated classification |

—— lr

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of all areas within “the exterior boundaries of the
reservation” and “other areas within the tribe’s jurisdiction.”
This change strongly suggests that Congress viewed all areas
within “the exterior boundaries of the reservation” to be
“within the area of the tribal government’s jurisdiction.” The
change also indicates that Congress knew how to draft the
1990 Amendments to support petitioners’ interpretation. The
fact that Congress specifically rejected language favorable to
petitioners’ position and enacted instead language that is
consistent with EPA’s interpretation only strengthens our
conclusion that the Agency has correctly ascertained
Congress’ intent in passing the 1990 Amendments.

The dissent’s contrary contentions regarding the meaning
of the 1990 Amendments do not cause us to question this
conclusion. The dissent’s argument that Congress would not
use a “never-before-attempted” formulation to accomplish an
express delegation when it could use the “formulaic
‘notwithstanding’ proviso [used in § 7410(0)]—the gold
standard for such delegations,” cannot carry much weight.
Dissent Op. ai 5-6. That a provision uses a new formulation
is not dispositive of the question as to whether it constitutes
an express delegation. Indeed, it is noteworthy that, in
construing 33 U.S.C. § 1337(h)(1), which uses the disseut’s
so-called “gold standard,” EPA has declined to find an
express delegation in such language. We can assume that
Congress was aware of EPA’s contemporaneous
interpretation of the Clean Water Act, first proposed in 1989
(while Congress contemplated the 1990 Amendments). See
Amendments to the Water Quality Standards Regulations
That Pertain to Standards on Indian Reservations, 54 Fed.
Reg. 39,098, 39,101 (1989) (proposed Sept. 22, 1989) (to be
codified at 40 C.F.R. pt. 131) (“EPA may treat an Indian
Tribe as a State . . . only where the Tribe already possesses
and can adequately demonstrate authority to manage and

l6a

protect water resources within the borders of the reservation.
The Clean Water Act . . . does not grant additional authority
to Tribes.”). Thus, Congress’ failure to use the same
language in § 7601(d) does not at all imply that it meant to
avoid delegation to the tribes; rather, it may suggest just the
opposite.

The dissent’s argument resting on Congress’ omission of
a “literal delegation” to tribes is seductive, but, ultimately,
also unconvincing. It is true that, as originaliy introduced,
the bills in the Senate and the House contained language
providing that “the Administrator . . . may delegate to [ |
iribes [that the Administrator is authorized to treat as States]
primary responsibility for assuring air quality and
enforcement of air pollution control.” H.R. 2323, 101st
Cong. § 604 (1989), reprinted in Legislative History of the
Clean Air Act Amendments of 1990, at 4101. The absence
of this language from the final bill, however, does not compel
the dissent’s conclusion that Congress “specifically rejected”
language favorable to EPA’s position. Neither the majority
nor the dissent can call upon determinative legislative history
to illuminate the motivations behind this unexplained change
to the provisions at issue. We suggest, however, that there
are at least two other expianations that account for the
absence of the cited language from the final bill. First,
Congress simply may have deemed the language to be
redundant and confusing in light of § 7601(d)(2)(B). It
would have been redundant because § 7601(d)(2)(B) already
accomplishes an express delegation. It would have been
confusing because the omitted language can be read to apply
to areas both outside and inside the boundaries of the
reservation, and, as we hold, Congress intended to expressly
delegate only with respect to areas within the boundaries of a
reservation.

ae ee eee pa ee

— ee ee ee el

17a

Second, the language contained in the original bills
hardly represents, as the dissent declares ipse dixit, a “literal
delegation.” Providing that the “Administrator . . . may
delegate” authority to tribes reads less like an express
delegation from Congress to the tribes than a permissive
instruction to the Administrator. Moreover, the omitted
language did not expressly expand tribal jurisdiction to
include those areas within the boundaries of a reservation
owned by non-members—which is what is necessary for
express delegation—as does the language in the adopted
§ 7601(d)(2)(B). In other words, the language used in the
progenitors to § 7601(d) that the dissent claims is a “literal
delegation” is not easily manipulated to fit the contours of the
traditional express delegation inquiry. We also note, as an
aside, that by treating the original bills’ language as an
express delegation, our colleague seemingly abandons the
“gold standard” that he claims Congress consistently has
utilized expressly to delegate authority to Indian tribes. In
short, we take more from the language used in the adopted
§ 7601(d)(2)(B) than from the language omitted.

What little precedent there is addressing express
delegations of authority to Native American nations in other
contexts supports our interpretation of § 7601(d). In United
States v. Mazurie, the Supreme Court reviewed 18 U.S.C.
§ 1161 and concluded that the statute was an express
delegation to tribes of the authority to regulate alcohol
transactions. 419 U.S. 544, 556-57 (1975). The Court
reaffirmed this holding almost a decade later. See Rice v.
Rehner, 463 U.S. 713, 728-29 (1983). Section 1161 provides
in pertinent part that various federal! liquor laws applicable to
transactions within Indian country shall not apply

within any area of Indian country provided such act or
transaction is in conformity both with the laws of the

l8a

State in which such act or transaction occurs and with
an ordinance duly adopted by the tribe having
jurisdiction over such area of Indian country, certified
by the Secretary of the Interior, and published in the
Federal Register.

18 U.S.C. § 1161 (1994). The Court read this language to
make

clear that Congress contemplated that its absolute but
not exclusive power to regulate Indian liquor
transactions would be delegated to the tribes
themselves, and to the States, which historically
shared concurrent jurisdiction with the Federal
Government in this area.

Rehner, 463 U.S. at 728-29.

The decisions in Mazurie and Rehner are significant
because the Court found an express delegation despite the
absence of any “we hereby delegate” language in the statute.
The Court did not find any precise language of delegation in
the disputed statute, but, rather, rested on the implication
inherent in recognizing the power of tribes to adopt an
ordinance pertinent to liquor transactions on Indian country.
See Rehner, 463 U.S. at 730-31. Similarly, in this case, we
find an express congressional delegation from the implication
inherent in the distinction between areas “within the exterior
boundaries of the reservation” and “other areas within the
tribe's jurisdiction.”

Petitioners claim that the 1990 Amendments delegate
authority to EPA to approve state or tribal air quality
programs for federal enforcement, not authority to tribes to
“adopt regulatory programs that the tribes could not adopt

ee ee es ee ee ee

19a

under tribal and federal Indian law prior to the 1960
Amendments.” Br. for Petitioners National Ass’n of Mfrs.
(“NAM”) at 23. Petitioners’ claim misses a crucial point,
however, that there are two different powers at issue here: (1)
the authority to regulate and (2) the derivative authority to
enforce specific provisions of the Act. Petitioners focus on
the derivative authority. Of course the 1990 Amendments do
not constitute an express delegation to the tribes to enact
regulatory provisions absent any federal oversight or
approval. Rather, the 1990 Amendments simply establish the
palette with which tribes are permitted to paint their
regulatory picture.

Petitioners additionally argue that although states are
authorized under 42 U.S.C. § 7407(a) to enact programs
“within the entire geographic area comprising such State,”
EPA has never interpreted this provision as allowing states to
promulgate air quality regulations applicable to Native
American reservations located within a state’s geographic
area. In other words, petitioners claim that because states
may not promulgate regulations affecting Native American
reservations, tribes may not promulgate regulations covering
lands held in fee by persons other than tribal members. This
argument is obviously flawed, because it fails to recognize
that the relationship between fee holders and tribes is quite
different from the relationship between tribes and states. As
the Supreme Court noted in Mazurie,

Indian tribes are unique aggregations possessing
attributes of sovereignty over both their members and
their territory; they are “a separate people” possessing
“the power of regulating their internal and social
relations ... .”

419 U.S. at 557 (citations omitted). And there is no doubt

20a

that Congress may delegate authority to tribes “even though
the lands [are] held in fee by non-Indians, and even though
the persons regulated [are] non-Indians.” /d. at 554.

Finally, petitioners note that the Agency declined to find
an express delegation of power to regulate fee lands under
§§ 518(e) and (h) of the Clean Water Act; this is noteworthy
to petitioners, because they can glean no difference between
the cited provisions under the Clean Water Act and the
disputed provisions in this case under the Clean Air Act. We
find no merit in this argument. The Clean Water Act states
that “[t}he Administrator is authorized to treat an Indian tribe
as a State... if... the functions to be exercised by the
Indian tribe pertain to the management and protection of
water resources which are held by an Indian tribe . . . within
the borders of an Indian reservation.” 33 U.S.C. § 1377(e)(2)
(1994). “Reservation” is defined as “all land within the
limits of any Indian reservation under the jurisdiction of the
United States Government, notwithstanding the issuance of
any patent, and including rights-of-way running through the
reservation.” Id. § 1377(h)(1). In construing these
provisions, EPA concluded that because the legislative
history was “ambiguous and inconclusive,” it would not find
that the Clean Water Act expanded or limited the scope of
tribal authority beyond that inherent in_ the tribe.
Amendments to the Water Quality Standards Regulation That
Pertain to Standards on Indian Reservations, 56 Fed. Reg.
64,876, 64,880 (1991) (codified at 40 C.F.R. pt. 131).

The situation here is quite different from what EPA found
with respect to the Clean Water Act. Although the disputed
language in the Clean Air Act and the Clean Water Act is
somewhat similar, it is far from identical. As noted above,
EPA correctly relied on the CAA’s clear distinction between
areas “within the exterior boundaries of the reservation” and

2la

“other areas within the tribe’s jurisdiction” to find a
congressional intention to define the areas within the exterior
boundaries of a tribe’s reservation to be per se within the
tribe’s jurisdiction. Furthermore, as we have already
indicated, the legislative history of the 1990 Amendments
plainly supports EPA’s interpretation. Thus, the legislative
history underlying the Clean Air Act is not “ambiguous and
inconclusive,” as was found to be the case with respect to the
Clean Water Act.

It is also of some significance that EPA’s interpretation of
the Clean Water Act never has been subject to judicial review
on the question of the presence or absence of an express
delegation to tribes to regulate fee lands within the bounds of
reservations. One federal court has observed, in dicta, that
“the statutory language [in the Clean Water Act] seems to
indicate plainly that Congress did intend to delegate...
authority to tribes.” State of Montana v. EPA, 941 F. Supp.
945, 951 (D. Mont. 1996). The court noted, however, that in
construing the provisions of the Clean Water Act, “EPA
determined that it would take the more cautious view, that
Congress did not expressly delegate jurisdiction to tribes over
non-Indians and that tribes would have to prove on a case-by-
case basis that they possess such jurisdiction.” Jd at 952.
There was no reason for EPA to take a similarly “cautious
view” with respect to the Clean Air Act, because the
language and legislative history of the 1990 Amendments
differ from that of the Clean Water Act.

B. EPA's Interpretation of “Reservation”

Given that EPA correctly interpreted § 7601(d) to
expressly delegate jurisdiction to otherwise eligible tribes
over all land within the exterior boundaries of reservations,
including fee land, the next question is what areas are

22a

covered by a “reservation.” EPA interprets “reservation” as
used in three different statutory provisions (42 U.S.C.
§§ 7410(0), 7474(c), 7601(d)\(2)(B)) to mean _ formally
designated reservations as well as “trust lands that have been
validly set apart for the use of a tribe even though the land
has not been formally designated as a reservation.” Tribal
Authority Rule, 63 Fed. Reg. at 7258. This includes what
EPA terms “Pueblos” and tribal trust land. Pueblos are
villages, primarily located in New Mexico, held by tribes in
communal fee-simple ownership, originally acquired under
grants from Spain and Mexico, and confirmed by Congress in
the late 1800s. See United States v. Sandoval, 231 U.S. 28,
38-39 (1913). Petitioners ignore the status of Pueblos and
concentrate their attack on EPA’s interpretation of
“reservation” to include tribal trust land.

The Secretary of the Interior is authorized to acquire land
in trust for a tribe under 25 U.S.C. § 465 (1994), and such
land can only formally be designated a reservation via the
process provided by 25 U.S.C. § 467 (1994). Petitioners
claim that EPA’s interpretation contravenes the Act’s plain
language and renders 25 U.S.C. § 467 superfluous by
ignoring the distinction between “trust lands” and
“reservations.” EPA counters that the statute is ambiguous,
and that its reasonable interpretation is entitled to Chevron
deference.

We start with Chevron step one and rely on traditional
principles of statutory construction to determine whether
EPA’s interpretation contravenes congressional intent as
manifested by the 1990 Amendments. Significantly, the Act
nowhere defines “reservation.” Therefore, we look to the
term’s ordinary and natural meaning, and the context in
which the term is used. See Smith v. United States, 508 '5.S.
223, 228-30 (1993). And we must remain cognizant of the

ve) eS?

23a

rule that courts construe federal statutes liberally to benefit
Native American nations. See Montana v. Blackfeet Tribe of
Indians, 471 U.S. 759, 766 (1985).

The dictionary defines “reservation” to be a “tract of
public land set aside for a particular purpose (as schools,
forest, or the use of Indians).”” WEBSTER’S THIRD NEw INT’L
DICTIONARY 1930 (1993). This definition surely
encompasses both trust lands and formally designated
reservations. Nothing in the United States Code is clearly to
the contrary, for the term “reservation” has no rigid meaning
as suggested by petitioners. See 7 U.S.C. § 1985(e)(1)(A)(ii)
(Supp. IV 1998) (defining “reservation” to include land
“within the limits of any Indian reservation under the
jurisdiction of the United States, . . . trust or restricted land
located within the boundaries of a former reservation of a
federally recognized Indian tribe in the State of Oklahomaf,]
.. . [and] all Indian allotments the Indian titles to which have
not been extinguished if such allotments are subject to the
jurisdiction of a federally recognized Indian tribe”); id.
§2012G) (1994) (defining “reservation” as “the
geographically defined area or areas over which a tribal
organization . . . exercises governmental jurisdiction”); 25
U.S.C. § 1452(d) (1994) (defining “reservation” to include
Indian reservations, public domain Indian aliotments, former
Indian reservations in Oklahoma, and land held by
incorporated Native groups, regional corporations, and
village corporations under the provisions of the Alaska
Native Claims Settlement Act); id § 1903(10) (1994)
(defining “reservation” to be “Indian country as defined in
section 1151 of Title 18” and any trust land not encompassed
by § 1151); id. § 3103(12) (1994) (“*[R]eservation’ includes
Indian reservations established pursuant to treaties, Acts of
Congress or Executive orders, public domain Indian
allotments, and former Indian reservations in Oklahoma”); 33

24a

U.S.C. § 1377(h)(1) (defining “Federal Indian reservation” to
mean “all land‘ within the limits of any Indian reservation
under the jurisdiction of the United States Government,
notwithstanding the issuance of any patent, and including
rights-of-way running through the reservation”).

These varying definitions of “reservation” lay to waste
petitioners’ argument. Petitioners appear to assert that, in the
absence of any specific definition, “reservation” as used in
the 1990 Amendments to the Act can only mean the formal
reservation contemplated by 25 U.S.C. § 467. This is a
specious contention. First, § 467 does not purport to offer an
exclusive definition of “reservation”; it simply defines the
terms under which federal land is formally designated a
reservation. Second, if Congress had wanted to limit the
term “reservation” as petitioners suggest, Congress could
have done so. Indeed, Congress on many occasions has
defined “reservation” in terms of other statutes. See 12
U.S.C. § 4702(11) (1994) (defining “reservation” according
to 25 U.S.C. § 1903(10)); 22 U.S.C. § 2124c(m)(1) (1994)
(defining “Indian reservation” with reference to 25 U.S.C.
§ 1452(d)); 25 U.S.C. § 1903(10) (defining “reservation”
with reference to 18 U.S.C. § 1151, as well as trust land); 26
U.S.C. § 168(4)(6) (1994 & Supp. III 1997) (defining “Indian
reservation” with reference to 25 U.S.C. § 1452(d) and 25
U.S.C. § 1903(10)); 42 U.S.C. § 10101(19) (1994) (defining
“reservation” to include communities referred to in 18 U.S.C.
§ 1151(a), (b)); id. § 11332(a)(1994) (defining “reservation”
according to 25 U.S.C. § 1452(d)). Moreover, given the
varying definitions of the term used throughout the Code, it
would be a curious result indeed for this court to insist that
the absence of a definition requires EPA to advance the most
restrictive definition as put forth by petitioners.

25a

Aside from the statute’s plain meaning and its context,
other sources of statutory interpretation offer no insight into
congressional intent with respect to the meaning of
“reservation.” The Report of the Senate Committee on
Environment and Public Works refers to the authority of
Indian tribes to “administer and enforce the Clean Air Act in
Indian lands,” as well as enforcement of the Act in “Indian
country.” S. Rep. No. 101-228, at 79, 80 (1989), reprinted in
LEGISLATIVE HISTORY OF THE CLEAN AIR ACT AMENDMENTS
of 1990, at 8419-20. These terms are arguably broader than
the definition of “reservation” urged by petitioners, and
simply confirm the term’s ambiguity as used by Congress.

Accordingly, we turn to step two of the Chevron inquiry.
That is, did the Agency reasonably interpret the term
“reservation” to include formal reservations, Pueblos, and
trust lands? EPA supported its interpretation of “reservation”
by looking to relevant case law, in particular Supreme Court
precedent holding that there is no relevant distinction
between tribal trust land and reservations for the purpose of
tribal sovereign immunity. See Oklahoma Tax Comm'n, 498
U.S. at 511. This view is consonant with other federal court
holdings that an Indian reservation includes trust lands. See
United States v. John, 437 U.S. 634, 649 (1978) (finding “no
apparent reason” why lands held in trust should not be
considered a “reservation” under §1151(a)); HRI. Inc. v.
EPA, 198 F.3d 1224, 1249-54 (10th Cir. 2000) (same):
United States v. Azure, 801 F.2d 336, 339 (8th Cir. 1986)
(considering tribal trust land to be Indian country under either
§ 1151(a) as a “de facto” reservation or §1151(b) as a
dependent Indian community); United States v. Sohappy, 770
F.2d 816, 822-23 (9th Cir. 1985) (holding that trust land is a
“reservation” under § 1151(a)).

26a

Petitioners note that, for several years, EPA has defined
reservation, for the purposes of the PSD program, to be “any
federally recognized reservation established by Treaty,
Agreement, executive order, or act of Congress.” 40 C.F.R.
§2.21(b)(27) (1999). Given the Agency’s reasoned
justification for a broader definition of “reservation” in the
Tribal Authority Rule, and its proposal to amend the PSD
definition to ensure consistency with the Tribal Authority
Rule, EPA’s departure from the PSD definition does not
preclude this court from upholding EPA’s new definition. In
light of the ample precedent treating trust land as reservation
land in other contexts, and the canon of statutory
interpretation calling for statutes to be interpreted favorably
towards Native American nations, we cannot condemn as
unreasonable EPA’s interpretation of “reservations” to
include Pueblos and tribal trust land.

C. Areas over which Tribes May Exercise Jurisdiction to
Propose TIPs and Redesignations

The next issue that arises in this case is whether EPA
defensibly interprets the extent of Native American authority
to redesignate geographic areas and propose TIPs under the
Act. Native American nations are authorized to redesignate
“[l]ands within the exterior boundaries of reservations of
federally recognized Indian tribes.” 42 U.S.C. § 7474(c).
Similarly, Indian tribes may submit TIPs “applicable to all
areas . . . located within the exterior boundaries of the
reservation, notwithstanding the issuance of any patent and
including rights-of-way running through the reservation.” 42
U.S.C. § 7410(0).

EPA interpreted both of these provisions to authorize
tribal redesignation and implementation of TIPs not just
within the limits of reservations (including trust lands and

27a

Pueblos), but also within allotted lands and dependent Indian
communities. No one argues that allotted Jands and
dependent Indian communities are within the compass of a
“reservation.” Instead, EPA contends that so long as a tribe
demonstrates inherent jurisdiction over non-reservation areas,
it may issue redesignations and TIPs for those lands. In other
words, although tribes do not have express delegated
authority to issue redesignations and TIPs for non-reservation
areas, neither does the Act bar tribes from acting on a Case-
by-case basis pursuant to demonstrated inherent sovereign

power.

Petitioners contend that both § 7474(c) and 7410(0)
operate as geographical limitations on the power of tribes to
redesignate areas and issue TIPs. Petitioners’ argument with
respect to § 7474(c) falls flat. This provision says that
“[l]Jands within the exterior boundaries of reservations of
federally recognized Indian tribes may be redesignated only
by the appropriate Indian governing body.” 42 U.S.C.
§ 7474(c). Petitioners seek to twist this language into the
following: “Indian tribes may only redesignate lands within
the exterior boundaries of reservations.” All § 7474(c)
establishes, however, is the exclusive power of Indian tribes
to redesignate land within a reservation; it does not address
the inherent power of tribes to redesignate land in non-
reservation areas.

Nor do petitioners fare better with respect to § 7410(o),
which states that EPA-approved TIPs “shall become
applicable to all areas (except as expressly provided
otherwise in the plan) located within the exterior boundaries
of the reservation, notwithstanding ile issuance of any patent
and including rights-of-way running through the reservation.”
42 U.S.C. § 7410(0). Petitioners read this to mean that EPA
may only approve a TIP if it applies within reservation areas.

28a

As EPA points out, petitioners’ interpretation cannot stand
for several reasons. First, § 7410(0) cross-references
§ 7601(d), which allows for tribes to exercise jurisdiction
over reservation areas or “other areas within the tribe's
jurisdiction.” 42 U.S.C. § 7601(d)(2)(B). Most importantly,
§ 7410(0) provides that TIPs apply to all areas within the
borders of a reservation once the plan “becomes effective in
accordance with the regulations promulgated under section
7601(d) of this title.” 42 U.S.C. § 7410(0). Therefore, it is
permissible for EPA to give § 7410(o) the reading it proffers:
a reinforcement of tribes’ jurisdiction to implement TIPs in
reservation land. Petitioners would instead read the statute as
an express limitation of tribal jurisdiction. Under step one of
Chevron, we cannot say that congressional intent is free of
ambiguity on this question.

Accordingly, we turn to whether EPA’s interpretation is
reasonable. We believe that it is undoubtedly so. To read the
statute otherwise would result in several anomalies. First,
EPA notes without dispute that petitioners’ interpretation
would allow a state’s implementation plan to apply to non-
reservation areas, even where a tribe has demonstrated
inherent jurisdiction over those areas. Second, petitioners’
reading would disable a tribe from comprehensively
administering the Act. A tribe could implement, in non-
reservation areas, new source performance standards under
the Act, but not administer a TIP, even though the regulated
activity “threatens or has some direct effect on the .. . health
or welfare of the tribe.” Montana, 450 U.S. at 566. EPA’s
reading of the statute to allow such regulation is a reasonable
interpretation of §§ 7410(0) and 7601(d).

29a

D. The Right of The Public To Comment on Tribal
Applications to Regulate

EPA's final rule limited the opportunity of the public to
comment directly to the Agency on “competing claims over
tribes’ reservation boundary assertions and assertions of
jurisdiction over non-reservation areas,” allowing only
“appropriate governmental entities” to submit comments.
Tribal Authority Rule, 63 Fed. Reg. at 7267. Petitioners
challenge this limitation of the public’s opportunity to
comment directly to EPA. Before this court, however, EPA
indicated its intent to clarify that the Agency will accept
comments directly from all commenters on the determination
of a tribe's eligibility to be treated as a state. See Br. for
Respondent at 43. Subsequently, EPA issued a clarification
to this effect. See Indian Tribes: Air Quality Planning and
Management, 65 Fed. Reg. 1322, 1323 (2000).

Therefore, this issue is moot. See Motor & Equip. Mfrs.
Ass'n v. Nichols, 142 F.3d 449, 458 (D.C. Cir. 1998) (finding
challenge to EPA’s waiver for state’s program was moot
where actions complained of were revised after lawsuit was
filed). A dispute may be rendered moot where the
complained of conduct has been voluntarily discontinued if
“(1) there is no reasonable expectation that the conduct will
recur and (2) ‘interim relief or events have compietely and
irrevocably eradicated the effects of the alleged violation.””
Id. at 459 (quoting County of Los Angeles v. Davis, 440 U.S.
625, 631 (1979)). In this case, there is no indication that
EPA will revert to its past proposal only to receive direct
comments from “appropriate governmental units,” and all of
the adverse effects of the Agency’s alleged illegal action
have been remedied by EPA’s clarification.

30a

E. Abrogation of Existing Agreements By Tribes Not to
Regulate Certain Land

Petitioners argue that EPA’s final rule abrogates
preexisting agreements by Native American nations not to
regulate certain individual parties. Specifically, petitioner
APS points to its 1960 lease with the Navajo Nation that APS
claims prohibits the Nation from regulating the operation of
the Four Corners Power Plant. See Br. of Petitioner APS at
2. APS further claims that the Secretary of the Interior
covenanted to protect APS from tribal regulation. See id. at
:

Petitioners point to footnote 5 in the final rule which
states, in response to industry comments that preexisting
agreements may limit the extent of a tribe’s regulatory
jurisdiction, that “EPA believes that the CAA generally
would supersede pre-existing treaties or binding agreements
that may limit the scope of tribal authority over reservations. ”
Tribal Authority Rule, 63 Fed. Reg. at 7256 n.5. Petitioners
ignore the sentence following footnote 5, however, in which
EPA states that it “will consider on a case-by-case basis
whether special circumstances exist that would prevent a
tribe from implementing a CAA _ program over its
reservation.” Jd. at 7256 (emphasis added). EPA maintains
in its brief that it has made no judgment on the scope and
effect of the specific agreements to which petitioners refer,
and that it will consider such questions as they arise. As
counsel for APS acknowlgdged at oral argument, it is quite
possible that the abrogation issue never will arise. For
instance, if the Navajo Nation agrees that it will not regulate
the Four Corners Plant, there will be no controversy in need
of resolution.

3la

There is still a concern, however. In EPA’s preamble to a
proposed federal implementation plan, promulgated after the
Tribal Authority Rule, the Agency stated that,

[u]pon review of the circumstances surrounding the
location and operation of [the Four Corners Power
Plant} on the Navajo Indian Reservation, EPA
concluded that jurisdiction under the Act over this
facility lies with EPA and the Navajo Nation.

64 Fed. Reg. 48,731, 48,732 (1999); see also 64 Fed. Reg.
48,725, 48,726 (1999) (taking same position with respect to
the Navajo Generating Station). EPA now acknowledges
that, to the extent these preambles imply that the Agency has
determined that the indicated plants are subject to regulation
by the Navajo Nation, these statements were incorrect. See
Supp. Br. of Respondent at 4. In fact, EPA has confirmed
this position by publishing an official notice in the Federal
Register clearly indicating that it has not yet determined
whether the Navajo Nation my regulate the indicated power
plants under the Act. See id. at 4-5.

This issue, therefore, is not ripe for review before this
court. The ripeness doctrine seeks to balance institutional
interests in delaying review against litigants’ interests in
promptly reviewing allegedly unlawful government actions.
See Florida Power & Light Co. v. EPA, 145 F.3d 1414.
1420—21 (D.C. Cir. 1998). First a court must ask if the
disputed issues are fit for judicial review. See Abbot Labs. v.
Gardner, 387 U.S. 136, 149 (1967). If the institutional
interests of the agency or reviewing court favor postponing
review, then a party must demonstrate “hardship” in order to
show that the issue should nonetheless be made subject to
judicial review. See City of Houston v. HUD, 24 F.3d 1421,
1431 (D.C. Cir. 1994).

32a

The fitness inquiry asks if a case “presents a concrete
legal dispute [and] no further factual development is essential
to clarify the issues . . . [and] there is no doubt whatever that
the challenged [agency] practice has “crystallized”
sufficiently for purposes of judicial review.” Rio Grande
Pipeline Co. v. FERC, 178 F.3d 533, 540 (D.C. Cir. 1999)
(quoting Payne Enters., Inc. v. United States, 837 F.2d 486,
492-93 (D.C. Cir. 1988)) (alterations in original). Here,
petitioners cannot satisfy this prong because EPA has not
issued any order relating to the preexisting covenants
prohibiting regulation by Native American nations. See
Florida Power & Light, 145 F.3d at 1421 (finding lack of
fitness for review where it was unclear “whether, or on what
grounds, EPA would even apply” the challenged rule to
petitioners).

Additionally, petitioners cannot point to any hardship
they would suffer from deferred judicial review. It is
axiomatic that mere delay, absent other extenuating
circumstances, in adjudication of a dispute cannot satisfy the
hardship prong. See Clean Air Implementation Project v.
EPA, 150 F.3d 1200, 1205-06 (D.C. Cir. 1998); Florida
Power & Light, 145 F.3d at 1421 (burden of participating in
further proceedings does not constitute a hardship).

Contrary to petitioners’ argument, this case is not on all
fours with Better Government Association v. Department of
State, 780 F.2d 86 (D.C. Cir. 1986). In Better Government,
petitioners challenged Department of Justice regulations
applied by the Department of State and the Department of the
Interior to evaluate fee waiver applications for Freedom of
Information Act requests. The court found that the claim was
ripe for review because the departments relied on the
Department of Justice guidelines, and the government agreed
that the regulations “govern| | and will continue to govern its

33a

decisions.” /d at 93. Here, EPA has made no decision that
will govern its analysis of whether the preexisting
agreements are abrogated by its interpretation of the Act.
Until the Agency takes a position on the enforceability of the
covenants not to regulate, there is no concrete issue for this
court to consider.

F. Judicial Review of Tribal Permitting Programs

Under Title V of the Act, states must develop a
comprehensive permitting program applicable to major air
pollution sources. See 42 U.S.C. § 766la. Section 766la
enunciates the requirements for administering permitting
programs, including elements of judicial review. Pursuant to
§ 7661a,

[t}hese elements shall include . . .

(6) Adequate, streamlined, and reasonable procedures
for . . . expeditious review of permit actions, .. .
including an opportunity for judicial review in State
court of the final permit action... .

(7) To ensure against unreasonable delay by the
permitting authority, adequate authority and
procedures to provide that a failure of such permitting
authority to act on a permit application or permit
renewal application . . . shall be treated as a final
permit action solely for purposes of obtaining judicial
review in State court of an action brought by any
person referred to in paragraph (6) to require that
action be taken by the permitting authority on such
application without additional delay.

Id § 7661a(b)(6), (7).

34a

EPA initially proposed that tribes “will have to meet the
same requirements” as states in providing an opportunity for
judicial review of a final permit action. Proposed Tribal
Authority Rule, 59 Fed. Reg. at 43,972. EPA withdrew this
proposal in its final rule. Instead, EPA required tribes to
meet all the requirements of § 7661a(b)(6) and (7) except that
review of a tribe’s Title V permitting program need not be
“judicial” or “in State court.” See Tribal Authority Rule, 63
Fed. Reg. at 7261. Petitioners present two challenges to the
final rule on judicial review: (1) that EPA had no authority to
exempt tribes from the Act's judicial review requirements;
and (2) that interested parties received insufficient notice of
the final rule’s content.

EPA promulgated its final rule in response to comments
that expressed concern over “waivers of tnbal sovereign
immunity to judicial review.” /d Some Native American
representatives observed that requiring a waiver of sovereign
immunity for a tribe to administer a Title V permit program
would operate as a disincentive to a tribe's establishing such
programs. Industry commenters also sought assurances that
nonmembers of tribes would have access to tribal courts for
judicial review.

EPA identified two alternatives for ensuring that “some
form of citizen recourse be available for applicants and other
persons affected by permits issued under tribal Title V
programs.” /d One option was for tribes to voluntarily
waive their sovereign immunity in tribal courts. A second
possibility was for the Agency to consider “alternative
options . . . that would not require tribes to waive their
sovereign immunity to judicial review but, at the same time,
would provide for an avenue for appeal of tribal government
action or inaction to an independent review body and for
injunctive-type relief to which the Tribe would agree to be

35a

bound.” /d at 7262. EPA interpreted 42 U.S.C. § 7601(d) to
“provide[ | EPA with the discretion to balance the goals of
ensuring meaningful opportunities for public participation
under the CAA and avoiding undue interference with tribal
sovereignty when determining those provisions for which it

is appropriate to treat tribes in the same manner as states.”
Id

Section 7601(d) authorizes EPA to treat Native American
nations as states for the purposes of the Act. However, if
EPA determines “that the treatment of Indian tribes as
identical to states is inappropriate or administratively
infeasible, the Administrator may provide, by regulation,
other means by which the Administrator will directly
administer such provisions so as to achieve the appropriate
purpose.” 42 U.S.C. § 7601(d)(4). EPA relies on this
Statutory provision to justify the approach taken on judicial
review.

Petitioners argue that EPA lacks authority to exempt
tribes from the judicial review requirements, because
§ 7601(d) does not affect the operation of CAA provisions
“that define rights that must be afforded to those affected by
a program in order [for either a tribe or a State] to receive
EPA approval to administer a federally enforceable
program.” Br. for Petitioners NAM at 42. We see no merit
in this claim. EPA’s interpretation is not clearly contradicted
by the statute. In fact, § 7601(d)(4) allows the Agency the
discretion to determine whether it is “inappropriate or
administratively infeasible” to treat Indian tribes exactly the
same as states in administering the Act. Petitioners offer no
support for their assertions that the judicial review
requirements do not come within the EPA’s discretion under
this section. It is obvious, then, that the Agency had a choice
as to whether to treat Indian tribes identical to states with

36a

regard to the judicial review elements of § 766la(b). The
clear meaning of the statute does not foreclose the Agency’s
interpretation.
ya

~~ Nor is the Agency’s interpretation unreasonable. EPA
understandably was concerned that the effect of requiring
tribes to submit their permitting disputes to state courts
would conflict with policies supporting tribal sovereignty and
also discourage the institution of tribal permitting programs.
The Agency’s decision to allow tribes to submit alternatives
to waiving sovereign immunity accomplishes a reasonable
balancing of these interests. This is bolstered by EPA’s
expressed intention to ensure that any alternative to a waiver
of sovereign immunity nonetheless provides an impartial
forum allowing for “injunctive-type relief.” Tribal Authority
Rule, 63 Fed. Reg. at 7262.

Petitioners also argue that, assuming that EPA could
exempt tribes from judicial review requirements,
§ 7601(d)(4) requires that EPA provide an alternative means
of ensuring effective judicial review. Petitioners suggest that
EPA must at least “provide for review by the Regional
Administrator of all tribal permit decisions, and resolve all
federal or tribal challenges to the tribe’s actions.” Br. for
Petitioners NAM at 44. To the extent that this argument
merely reiterates the contention that EPA has no authority to
alter tribes’ judicial review responsibilities, nothing more
need be said. To the extent that this argument challenges the
alternative tribal review procedures to be approved by EPA
in lieu of judicial review in state court, this issue is not ripe
for review. EPA has not yet approved any alternative tribal
judicial review procedures. See Tribal Authority Rule, 63
Fed. Reg. at 7262 (“EPA will develop guidance in the future
on acceptable alternatives to judicial review.”). As such,

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there is no decision “fit” for judicial review, nor have
petitioners demonstrated any hardship from deferred review.

Petitioners advance a separate contention in support of
vacating the rule: that interested parties did not receive
sufficient notice of the substance of the final rule. The
Administrative Procedure Act requires that an agency publish
notice of its proposed rulemaking that includes “either the
terms or substance of the proposed rule or a description of the
subjects and issues involved.” 5 U.S.C. § 553(b)(3) (1994).
An agency satisfies this notice requirement if the final rule is
a “logical outgrowth” of the proposed rule. See Aeronautical
Radio, Inc. v. FCC, 928 F.2d 428, 445-46 (D.C. Cir. 1991).
In other words, we consider “‘whether . . . [the party], ex
ante, should have anticipated that such a requirement might
be imposed’” in determining whether adequate notice was
given in a notice of proposed rulemaking. /d. at 446 (quoting
Small Refiner Lead Phase-Down Task Force v. EPA, 705
F.2d 506, 549 (D.C. Cir. 1983)) (alterations in original).

“In most cases, if the agency . . . alters its course in
response to the comments it receives, little purpose would be
served by a second round of comment.” American Water
Works Ass'n v. EPA, 40 F.3d 1266, 1274 (D.C. Cir. 1994).
Thus, the “logical outgrowth” test normally is applied to
consider “whether a new round of notice and comment would
provide the first opportunity for interested parties to offer
comments that could persuade the agency to modify its rule.”
Id. (emphasis added). In this case, there was more than
enough notice for interested parties to offer comments on
EPA’s treatment of the judicial review provisions of the Act
vis a vis Indian tribes. The parties were not asked to “divine
the EPA’s unspoken thoughts.” Shell Oil Co., 950 F.2d at
751. And the final rule was not wholly unrelated or
surprisingly distant from what EPA initially suggested. In

38a

first proposing that tribes would have to meet the “same
requirements” as states, EPA effectively raised the question
as to whether this made sense. EPA’s proposal was not a
“bureaucratic game of hide and seek,” MC/ Telecomm. Corp.
v. FCC, 57 F.3d 1136, 1142 (D.C. Cir. 1995); the proposal
raised a highly visible and controversial issue and elicited
responses from both tribal and industry commenters.
Furthermore, any reasonable party should have understood
that EPA might reach the opposite conclusion after
considering public comments. In short, it is fair to say that
the purpose of notice and comment rulemaking has been
served, and that the Agency’s change of heart on this issue
only demonstrates the value of the comments it received.

Ill. CONCLUSION

Consistent with the foregoing opinion, we deny the
petitions for review in part, and dismiss in part for want of
jurisdiction and for lack of ripeness. Petitioners’ motions for
vacatur and remand are dismissed as moot.

** * *

GINSBURG, Circuit Judge, dissenting in part: With
certain exceptions, of which more later, an Indian tribe lacks
inherent authority to regulate the conduct of a nonmember on
land he owns within the boundaries of the tribe’s reservation.
Lacking inherent authority, a tribe may exercise regulatory
authority over such non-Indian lands only by express
congressional delegation. The court today determines that
§ 301(d)(2)(B) of the Clean Air Act, 42 USC.
§ 7601(d)(2)(B), expressly delegates to tribes—contingent
upon approval by the EPA Administrator—authority to
enforce the Clean Air Act on nonmembers’ lands within a
reservation. Finding no such express delegation in

39a

§ 301(d)(2)(B), I dissent from Part I.A of the opinion for the
court.

I. Background

In State of Montana v. United States, 450 U.S. 544
(1981), the Crow tribe had sought to regulate nonmembers’
hunting and fishing upon lands owned in fee by the State of
Montana but lying within the boundaries of the Crow
reservation. The Supreme Court, unanimous upon this point,
held that a tribe generally lacks authority to regulate the
conduct of nonmembers upon lands owned in fee by
nonmembers (“fee lands”); of the two exceptions the Court
noted, the only one arguably relevant here is that “[a] tribe
may . . . retain inherent power to exercise civil authority over
the conduct of non-Indians on fee lands within its reservation
when that conduct threatens or has some direct effect on the
political integrity, the economic security, or the health or
welfare of the tribe.” Jd. at 566. Absent such a threat or
effect, tribal regulation of fee lands within a reservation
requires an “express congressional delegation.” /d. at 564.

The two provisions of the Clean Air Act relevant to the
question of tribal authority to enforce the Act on fee lands
were added by § 107 of the 1990 Amendments, Pub. L. No.
101-549, 104 Stat. 2399, 2464. Section 301(d) of the Act, 42
U.S.C. § 7601(d). provides in relevant part:

(1) Subject to the provisions of paragraph (2), the
Administrator . . . is authorized to treat Indian tribes
as States under this chapter . . .

(2) The Administrator shall promulgate regulations
- . . Specifying those provisions of this chapter for
which it is appropriate to treat Indian tribes as States.

40a

Such treatment shall be authorized only if—

(A) the Indian tribe has a governing body carrying
out substantial governmental duties and powers;

(B) the functions to be exercised by the Indian
tribe pertain to the management and protection of
air resources within the exterior boundaries of the
reservation or other areas within the tribe's
jurisdiction; and

(C) the Indian tribe is reasonably expected to be
capable, in the judgment of the Administrator, of
carrying out the functions to be exercised in a
manner consistent with the terms and purposes of
this chapter and all applicable regulations.

Section 110(0) of the Act, 42 U.S.C. § 7410(0), provides in
its entirety:

If an Indian tribe submits an implementation plan to
the Administrator pursuant to section [301(d), above],
the plan shall be reviewed in accordance with the
provisions for review set forth in this section for State
plans, except as otherwise provided by regulation
promulgated pursuant to section [301(d)(2)]. When
such plan becomes effective in accordance with the
regulations promulgated under section [301(d)], the
plan shall become applicable to all areas (except as
expressly provided otherwise in the plan) located
within the exterior boundaries of the reservation,
notwithstanding the issuance of any patent and
including rights-of-way running through _ the
reservation.

The EPA’s Tribal Authority Rule (TAR) allows a tribe
(subject to approval by the Administrator of the EPA) to

4la

enforce the Clean Air Act on all land within the boundaries
of a reservation without having to demonstrate its inherent
authority over all such land. Under the clear rule of
Montana, however, a tribe lacks inherent sovereign authority
to regulate fee lands (and rights of way, see Strate y. A-]
Contractors, 520 US. 438, 456 (1997)) within a reservation
except under the aforementioned exception announced in that
case. Therefore, the TAR must be set aside as contrary to
law unless the 1990 Amendments expressly delegate to tribes
authority over fee lands and rights of way within a
reservation. Upon that Starting point for analysis the parties,
the court, and I agree.

The EPA claims to find a delegation of authority in
§ 301(d)(2)(B) of the Clean Air Act. In evaluating this claim,
the court is to accord no deference to the EPA’s interpretation
of that section because Montana requires an “express
congressional delegation” in order to expand tribal authority.
In other words, the EPA cannot prevail merely by
demonstrating that its interpretation of § 301(d)(2)(B) is
reasonable: the agency’s interpretation must be correct if the
TAR is to stand. Therefore, although we are reviewing an
EPA rule-making, on this issue the focal point for our inquiry
is not the EPA’s interpretation but the Statute itself. Upon
this methodological point, too, all agree.

II. Analysis

With these agreed upon principles in mind, it seems to
me clear that the 1990 Amendments do contain an express
delegation of authority over fee lands and rights of way—but
not in § 301(d), which governs tribal enforcement of all
Clean Air Act programs specified by the Administrator.
Rather, the delegation is in § 110(0), which governs only
tribal implementation plans (TIPs). Because the specific

42a

delegatory text in § 110(0) is significant to my conclusion
that § 301(d) is not a delegation, I consider § 110(o) first.

A. Section 110(0) and the “Notwit*standing” Proviso

The petitioners’ convoluted argument to the contrary
notwithstanding, § 110(0) is self-evidently an express
congressional d2legation of authority to enforce TiPs on fee
lands and rights of way within a reservation: “the [TIP] shall
become applicable to all areas . . . located within the exterior
boundaries of the reservation, notwithstanding the issuance
of any patent and including rights-of-way running through
the reservation.” The same “notwithstanding” proviso has
been a feature in the only two cases in which the Supreme
Court has found an express delegation of authority to tribes.
In United States v. Mazurie, 419 U.S. 544 (1975), and in Rice
v. Rehner, 463 U.S. 713 (1983), the Court found an express
delegation of authority over fee lands within a reservation
based upon two statutory provisions: 18 U.S.C. § 1161,
which authorizes the tribes to enact ordinances regulating
liquor in “Indian country”; and 18 U.S.C. § 1151, which
defines “Indian country” to include “all land within the limiis
of any Indian reservation under the jurisdiction of the United
States Government, notwithstanding the issuance of any
patent, and, including rights-of-way running through the
reservation.” See Rice, 463 U.S. at 715 & n.1 (“Congress has
delegated authority . . . in Indian country [as defined in] 18
U.S.C. § 1151”); see also Brendale v. Confederated Tribes &
Bands of the Yakima Indian Nation, 492 U.S. 408, 428
(1989) (citing 18 U.S.C. §§ 1151 and 1161 together as an

pare es

43a

express congressional delegation of authority over fee
lands).”

B. Section 301(d)

The express congressional delegation just identified in
§ 110(0) cannot by itself support the TAR, however:.
Because the TAR allows a tribe to enforce all applicable
Clean Air Act programs—rather than just the TIP—on
nonmember lands within its reservation, the EPA must
dernonstrate that § 301(d) likewise contains an express
congressional deiegation of authority.

The EPA argues the following text distilled from
§ 301(d) contains an express delegation to tribes of authority
to regulate fee lands within a reservation:

[T]he Administrator . . . is authorized to treat Indian
tribes as States... . Such treatment shall be
authorized only if . . . the functions to be exercised by
the Indian tribe pertain to the management and
protection of -air resources within the exterior

* In a dictum, the Brendale Court noted as a second example of
an express Congressional delegation of authority §§ 518(e), (h)(1) of the
Clean Water Act, 33 U.S.C. §§ 1377(e), (h)(1), the latter of which,
significantly, contains the notwithstanding clause so glaringly absent
from § 301(d). 492 U.S. at 428. In terms that otherwise track § 301(d)
of the Clean Air Act, § 518(e) provides for conditionally treating a tribe
as a state with regard to water resources “within the borders of an Indian
reservation,” defined in § 518(h)(1) as “all land within the limits of any
Indian reservation under the jurisdiction of the United States
Government, notwithstanding the issuance of any patent, and including
rights-of-way running through the reservation.” In spite of the Brendale
dictum, the EPA has concluded § 518 is not an express congressional
delegation of authority, see 56 Fed. Reg. 64,876, 64,880 (1991), but no
court has yet resolved the issue.

44a

boundaries of the reservation or other areas within the
tribe’s jurisdiction.

42 U.S.C. § 7601(d)(1)-(d)(2)(B) (emphasis added). The gist
of the agency’s argument, which the court accepts, is that the
Congress expressly delegated authority over all lands within
a reservation by linking “within the exterior boundaries of the
reservation” disjunctively to “other areas within the tribe’s
jurisdiction.” For the following reasons, I do not agree.

As the petitioners emphasize, when one reads the relevant
sentence as a whole—rather than focusing solely upon the
last phrase—one sees that, rather than expressing a
delegation of authority over fee lands and rights-of-way
within a reservation, the sentence by its terms merely lays
down a precondition to the Administrator’s treating a tribe as
a state. Even more certainly, there is no way to read the
phrase deemed crucial by the court (“within the exterior
boundaries of the reservation or other areas within the tribe’s
jurisdiction”) as an express delegation of authority.

One important indication that the Congress did not intend
this phrase as an express delegation is that it used the Court-
tested “notwithstanding” proviso in § 110(0) but not in
§ 301(d)(2)(B). Sections 110(0) and 301(d)(2)(B) were
enacted at the same time, in the same section of the same bill,
so the different phrasing should not be thought just an artifact
of legislative haphazardry. I do not believe that the
Congress, obviously aware that it could enlarge tribal
authority over nonmember lands only through an express
delegation, would include the formulaic “notwithstanding”
proviso—the gold standard for such delegations—in the
narrower of the two sections, and then use an obscure and
never-before-attempted formulation to accomplish the same
result in the broader of the two sections. Further, the court’s

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interpretation of § 301(d)(2)(B) renders the
“notwithstanding” proviso in § 110(0) surplusage—a point
the court euphemistically acknowledges, Slip Op. at 23 (“a
reinforcement of tribes’ . . . [§ 301(d)(2)(B) authority] to
implement TIPs in reservation land”). If § 301(d)(2)(B) is so
clear as to constitute an express congressional delegation, it
is difficult to believe that the Congress would "reinforce" this
point in a narrower provision enacted at the same time as and
expressly cross-referencing § 301(d).°

Finding an express congressional delegation in § 301(d)
is made even more difficult, as the petitioners contend, by the
Congress's having deleted a literal delegation to tribes that
was included in the corresponding section of the bills by
which the 1990 Amendments were first introduced in the
House and the Senate: "the Administrator . . . may delegate to
{ ] tribes primary responsibility for assuring air quality and
enforcement of air pollution control.” H.R. 2323, 101st Cong.
§ 604, reprinted in 2 Legislative History of the Clean Air Act

* The court suggests the Congress may well have intentionally
avoided using the “notwithstanding” proviso in § 301(d) in response to
the EPA's having interpreted § 518 of the Clean Water Act as not being a
delegation. Slip Op. at 13. The EPA's interpretation of the CWA was not
adopted, however, until December 1991, more than a year after
enactment of the 1990 Amendments. See 56 Fed. Reg. 64,876, 64,880. |
am not willing blithely to “assume that Congress was aware of,” much
less responded to, the EPA's mere proposal to adopt that interpretation.
When the 1990 Amendments were enacted, the EPA's unexplained
proposal was still subject to change in the light of public comments, and
even if finally adopted would not receive deference from a reviewing
court charged with determining whether the Congress had made an
express delegation to tribes. In contrast, we know for a certainty that the
Congress was aware of Brendale, in which the Supreme Court instanced
CWA § 518(h)(1) as an express congressional delegation: That case had
been decided in June 1989, and is cited in the Senate Report on an earlier
version of the 1990 Amendments, see S. Rep. No. 101-228, at 79.

46a

Amendments of 1990, at 4053, 4101 (1993) /hereinafter
1990 Leg. Hist.}; S. 1630, 101st Cong. 111, reprinted in 5
1990 Leg. Hist. 9050, 9145. The Senate passed S. 1630 with
this express delegation intact; the House, however, did not
act upon H.R. 2323 but instead passed H.R. 3030, in which
the delegation provision did not appear. See 2 1990 Leg.
Hist. 1809, 1972-73 (House passage of S. 1630, amended in
the nature of a substitution of H.R. 3030). The House
version prevailed in conference, see id at 478-79, so the
1990 Amendments as finally enacted into law do not contain
this literal delegation provision. The court is of course
correct that the Congress need not use the word “delegate” in
order to effect an express delegation, Slip Op. at 15; § 110(o0)
illustrates the point. That the Congress “specifically rejected
language favorable to [EPA’s] position,” Slip Op. at 12,
however, is further evidence that the legislature did not mean
to enact a delegation of authority. Indeed, to believe that the
Congress meant § 301(d)(2)(B) to serve as a delegation, after
it had included the “notwithstanding” proviso in the narrower
§ 110(0) and removed from § 301(d) a provision that
expressly provided a delegation to tribes, would require one
to believe the Congress was more interested in testing our
interpretive acumen than in clearly expressing its will upon
the important issue of tribal authority over nonmembers.

The court claims support for its contrary conclusion in the
Congress having “moved from authorizing tribal regulation
over the areas ‘within the tribal government’s jurisdiction’ . .
. to a bifurcated classification of all areas within “the exterior
boundaries of the reservation’ and ‘other areas within the
tribe’s jurisdiction.”” Slip Op. at 12. Putting aside the
question-begging interpolation of “all” into the quoted
passage, | think the court misapprehends the significance of
the phrase “within the exterior boundaries of the reservation
or other areas within the tribe’s jurisdiction.” As originally

47a

introduced, H.R. 3030 referred only to air resources “within
the exterior boundaries of the reservation.” 2 1990 Leg. Hist.
3737, 3853. The House Committee on Energy and
Commerce without comment added the phrase “or other areas
within the tribe’s jurisdiction,” id at 3021, 3069, and as
mentioned, the House version later prevailed in conference.
The legislative record is silent about why the Committee
added that phrase. The most straightforward interpretation of
the addition is that the Committee wanted to ensure that the
treatment of tribes as states extended beyond the reservation
to non-contiguous areas of tribal authority, such as dependent
Indian communities. This seems far more likely than that a
House committee, with no discussion, inserted the phrase “or
other areas within the tribe’s jurisdiction” in order to turn a
simple reference to reservations into a delegation of authority
over non-Indian lands within reservations.

Finally, | cannot agree with the court that we should find
an express congressional delegation of authority in
§ 301(d\(2)(B) in any part because the contrary reading
“would result in a ‘checkerboard’ pattern of regulation within
a reservation’s boundaries that would be inconsistent with the
purpose and provisions of the [Clean Air] Act.” Slip Op. at
11-12. First, it is not at all clear that a “checkerboard”
pattern—really a matter of certain fee lands remaining
subject to State (or federal) rather than tribal authority, while
surrounding areas go tribal—would result: a tribe remains
free to demonstrate its inherent authority over any activity on
fee lands that “threatens or has some direct effect on . . . the
health or welfare of the tribe,” Montana, 450 U.S. at 566.
Therefore, if a tribe does find itself without authority over
certain fee lands for want of an express delegation, that is
only because no activities on those fee lands threaten or
directly affect the health or welfare of the tribe.

48a

Second, tribal authority over less than all lands within the
boundaries of a reservation is the logical result of the tribes’
“diminished status as sovereigns,” Montana, 450 U.S. at 565.
The Montana rule on its face contemplates less than uniform
authority within a reservation; unless an exception applies,
the tribe cannot regulate a parcel owned by a nonmember
even though it retains authority over the surrounding lands
owned by the tribe. See, e.g, Brendale, 492 U.S. at 428
(White, J., for the Court in part and dissenting in part), 443,
445 (Stevens, J., for the Court in part and concurring in the
judgment in part) (each affirming non-uniform zoning
authority). While the Congress could have chosen to sweep
away such non-uniformity in § 301(d), as it did in § 110(o),
the court’s evident sense that the Congress should have done
so is no basis for reading an express delegation into the
statute where the Congress has not written one.”

* Seymour v. Superintendent of Washington State Penitentiary,
368 U.S. 351 (1962) and Moe v. Confederated Salish and Kootenai
Tribes of Flathead Reservation, 425 U.S. 463 (1976), cited by the court
today, certainly do not counsel reading an express delegation into a
statute in order to avoid non-uniform tribal authority within a reservation.
In Seymour, the Court held that “an impractical pattern of checkerboard
jurisdiction was avoided by the plain language of [18 U.S.C.] § 1151,”
namely, the “notwithstanding” proviso. 368 U.S. at 358. And in Moe,
the Court determined that because the Congress had “repudiated” but
never formally repealed § 6 of the General Allotment Act, 25 U.S. § 349,
the court would read §6 narrowly in order to avoid creating an
inconsistency with later-enacted statutes. 425 U.S. at 477-79. Thus, the
Court was merely “follow{ing}] Congress’ lead in this area.” /d. at 479.
So, too, where the Congress has expressly delegated authority, as in
§ 110(0). we should certainly give its command full rein; but where it has
not, we shouid not undertake to do so for it.

49a

Ill. Conclusion

In my view, . 301(d)(2)(B) is not an express delegation
of authority for Indian tribes to regulate the conduct of
nonmembers on fee lands within the boundaries of a
reservation. A tribe may be able, of course, to demonstrate
its authority over such fee lands under the exception
recognized in Montana. Without making such a showing,
however, I do not believe the tribe may regulate the conduct
of nonmembers on fee lands and rights-of-way except as
provided by § 110(0). I therefore respectfully dissent from
Part II.A. of the opinion for the court.

50a

APPENDIX B

Tribal Authority Rule
63 Fed. Reg. 7254 (February 12, 1998)

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 9, 35, 49, 50, and 81

[OAR-FRL-5964-2]

RIN 2060-AF79

Indian Tribes: Air Quality Planning and Management
AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

SUMMARY: The Clean Air Act (CAA) directs EPA to
promulgate regulations specifying those provisions of the Act
for which it is appropriate to treat Indian tribes in the same
manner as states. For those provisions specified, a tribe may
develop and implement one or more of its own air quality
programs under the Act. This final rule sets forth the CAA
provisions for which it is appropriate to treat Indian tribes in
the same manner as states, establishes the requirements that
Indian tribes must meet if they choose to seek such treatment,
and provides for awards of federal financial assistance to
tribes to address air quality problems.

EFFECTIVE DATE: March 16, 1998.

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FOR FURTHER INFORMATION CONTACT: David R.
LaRoche, Office of Air and Radiation (OAR 6102), U.S.
Environmental Protection Agency, 401 M Street, S.W..
Washington D.C. 20460 at (202) 260-7652.

SUPPLEMENTARY INFORMATION: Supporting
information used in developing the final rule is contained in
Docket No. A-93-3087. The docket is available for public
inspection and copying between 8:30 a.m. and 3:30 p.m.
Monday through Friday, at EPA’s Air Docket, Room M-
1500, Waterside Mall, 401 M Street SW, Washington, D.C.
20460. A reasonable fee may be charged for copying.

This preamble is organized according to the following
outline:

I. Background of the Final Rule
If. Analysis of Major Issues Raised by Commenters
A. Jurisdiction
B. Sovereign Immunity and Citizen Suit
te Air Program Implementation in Indian
Country

D. CAA Sections 110(c)(1) and 502(d)(3)

Authority
II. Significant Changes from the Proposed Regulations
IV. Miscellaneous

A. Executive Order (EO) 12866

52a

B. Regulatory Flexibility Act (RFA)

c. Executive Order (EO) 12875 and the
Unfunded Mandates Reform Act (UMRA)

1). Paperwork Reduction Act

E. Submission to Congress and the General
Accounting Office

I. Background of the Final Rule
Summary of Issues Raised by the Proposal

EPA proposed rules on August 25, 1994 (59 FR
43956) to implement section 301(d) of the Act. The proposal
elicited many comments from state and tribal officials,
private industry, and the general public. A total of 69
comments were received, of which 44 were from tribes or
tribal representatives; 13 from state and local governments or
associations; 10 from = industry (primarily utilities and
mining); and, | from Department of Energy (DOF) and |
from an environmental interest group in Southern California.
The tribes and several other commenters generally express
support for the proposed rule and the delegation of CAA
authority to eligible tribes to manage reservation air
resources. Tribes especially urge EPA to expedite the
finalization of this rule to enable tribes to begin to implement
their air quality management programs and encourage PA
to recognize that the development of tribal air programs will
be an evolving process requiring both time and significant
assistance from EPA.

Most of the tribal commenters express concern with
the inclusion of the citizen suit provisions which, they

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believed, effected a waiver of their sovereign immunity; they
recommend that this provision be deleted in the final rule.
This is a major issue for tribes. State and local government
and industry commenters are primarily concerned that the
proposed rule would create an unworkable scheme for
implementing tribal air quality programs, and many of these
commenters question the scope of tribal regulatory
jurisdiction.

Responses to many of the comments related to issues
of jurisdiction and sovereign immunity are included in
sections II.A and II.B in the analysis of comments below.
Responses to comments on the issues raised concerning
federal implementation in Indian country are addressed in
sections II.C and II.D of this document. All other comments
are addressed in a document entitled “response to comments”
that can be found in the docket for this rule cited above.

il. Analysis of Major Issues Raised by Commenters
A. Jurisdiction
5 Delegation of CAA Authority to Tribes

It is a settled point of law that Congress may, by
statute, expressly delegate federal authority to a tribe. United
States v. Mazurie, 419 U.S. 544, 554 (1975). See also South
Dakota v. Bourland, 113 S. Ct. 2309, 2319-20 (1993),
Brendale v. Confederated Tribes and Bands of the Yakima
Indian Nation, 492 U.S. 408, 426-28 (1989) (White, J., for
four Justice plurality). Such a delegation or grant of
authority can provide a federal statutory source of tribal
authority over designated areas, whether or not the tribe's
inherent authority would extend to all such areas. In the
August 25, 1994 proposed tribal authority rule, EPA set forth
its interpretation that the CAA is a delegation of federal

S4a

authority, to tribes approved by EPA to administer CAA
programs in the same manner as states, over all air resources
within the exterior boundaries of a reservation for such
programs. Today, EPA is finalizing this approach. This
grant of authority by Congress enables eligible tribes to
address conduct relating to air quality on all lands, including
non-Indian-owned fee lands, within the exterior boundaries
of a reservation.

EPA’s position that the CAA constitutes a statutory
grant of jurisdictional authority to tribes is consistent with the
language of the Act, which authorizes EPA to treat a tribe in
the same manner as a state for the regulation of “air resources
within the exterior boundaries of the reservation or other
areas within the tribe’s jurisdiction.” CAA _ section
301(d)(2)(B). EPA believes that this statutory provision,
viewed within the overall framework of the CAA, establishes
a territorial view of tribal jurisdiction and authorizes a tribal
role for all air resources within the exterior boundaries of
Indian reservations without distinguishing among various
categories of on-reservation land. See also CAA sections
110(0), 164(c).

In light of the statutory language and the overall
statutory scheme, EPA is exercising the rulemaking authority
entrusted to it by Congress to implement the CAA provisions
granting approved tribes authority over all air resources
within the exterior boundaries of a reservation. See generally
Chevron U.S.A., Inc. v. NRDC, 467 U.S. 837, 842-45 (1984).
This interpretation of the CAA as generally delegating such
authority to approved tribes is also supported by the
legislative history, which provides additional evidence of
Congressional intention regarding this issue. See S. Rep. No.
228, 101st Cong., Ist Sess. 79 (1989) (“the Act constitutes an
express delegation of power to Indian tribes to administer and
enforce the Clean Air Act in Indian lands” (citation to
Brendale omitted)) (hereinafter referred to as “Senate

RARER AR

55a

Report”).' EPA also believes this territorial approach to air
quality regulation best advances rational, sound, air quality
management.

(a) Support for the delegation approach. _ Tribal
commenters and several industry commenters support EPA’s
interpretation that the CAA constitutes a delegation of
Congressional authority to eligible tribes to implement CAA
programs over their entire reservations. Numerous tribal
commenters assert that EPA’s territorial delegation approach
is consistent with federal Indian law and the intent of
Congress as expressed in several provisions of the CAA.
Several tribal commenters note that, while tribes have
inherent sovereign authority over all air resources within the
exterior boundaries of their reservations, EPA should finalize
the delegation approach to avoid case-by-case litigation
concerning inherent authority and to eliminate the disruptive
potential of a “checkerboarded” pattern of tribal and state
jurisdiction on reservations. Several tribal commenters assert
that the delegation approach is compelled by the language of
the CAA and federal Indian law principles. One tribal
commenter states that the delegation approach is consistent
with the federal government’s trust responsibility to
federally-recognized Indian tribes.

(b) Statutory Interpretation. Several _ state
commenters assert that the CAA does not constitute an
“express congressional delegation” of authority to tribes as

' Further, it is a well-established principle of statutory

construction that statutes should be construed liberally in favor of
Indians, with ambiguous provisions interpreted in ways that benefit
tribes. County of Yakima v. Confederated Tribes and Bands of the
Yakima Indian Nation, 112 S.Ct. 683, 693 (1992). In addition, statutes
should be interpreted so as to comport with tribal sovereignty and the
federal policy of encouraging tribal independence. Ramah Navajo
School Board, Inc. v. Bureau of Revenue of New Mexico, 458 U.S. 832,
846 (1982).

S6a

required by the Supreme Court's decisions in Montana v
United States, 450 U.S. 544 (1981) and Brendale, 492 U.S.
408. Several state and industry commenters dispute EPA’s
interpretation of CAA section 301(d)(2)(B), which states that
EPA may treat a tribe in the same manner as a state if, among
other things, “the functions to be exercised by the Indian tribe
pertain to the management and protection of air resources
within the exterior boundaries of the reservation or other
areas within the tribe’s jurisdiction.” One commenter asserts
that the “or” in “or other areas within the tribe's jurisdiction”
means that treatment of a state is authorized for a tribe as to
air resources over which the tribe has jurisdiction, whether or
not those areas fall within its reservation boundaries. In other
words, tribes would not necessarily have jurisdiction over all
sources within reservation boundaries. The commenter states
that EPA has improperly read the “or” in_ section
301(d)(2)(B) as an “and.”

EPA believes the plain) meaning of — section
301(d)(2)(B) is that a tribe can implement a CAA program
for air resources if: (1) the air resources are within a
reservation; or (2) the air resources are within a non-
reservation area over which the tribe can demonstrate
jurisdiction. The most plausible reading of the phrase
“within * * * the reservation or other areas within the tribe's
jurisdiction” is that Congress intended to grant to an eligible
tribe jurisdiction over its reservation without requiring the
tribe to demonstrate its own jurisdiction, but to require a tribe
to demonstrate jurisdiction over any other areas, i.¢., non-
reservation areas, over which it seeks to implement a CAA
program. Under section 301(d)(2)(B), eligible tribes may be
treated in the same manner as states for protecting “air
resources” within “the reservation” or in “other areas within
the tribe’s jurisdiction.” Both the term “reservation” and the
phrase “other areas within the tribe’s jurisdiction” modify the
phrase “air resources.” In addition, it is clear from the

57a

structure of the provision and the CAA and legislative history
taken as a whole that the phrase “within the tribe's
jurisdiction” modifies the phrase “other areas” and not the
term “reservation” or the phrase “air resources.” If Congress
intended to require tribes to demonstrate jurisdiction over
reservations, Congress would have simply stated that EPA
may approve a tribal program only for air resources over
which the tribe can demonstrate jurisdiction.’

One commenter states that EPA's interpretation of
CAA section 301(d)(2)(B) has made CAA section 301(d)(4),
which allows EPA to administer provisions of the Act
directly if treatment of a tribe as identical to a state is found
to be “inappropriate or administratively infeasible,”
extraneous. The commenter asserts that if CAA section
301(d(2)(B) is a delegation of authority to a tribe, EPA
would never have cause to find treatment of a tribe as a state
“inappropriate or administratively infeasible.” EPA
disagrees that its interpretation has made _ section
301(d)(2)(B) superfluous because, even with the delegation
of federal authority to tribes for reservation areas, it is not
appropriate or administratively feasible to treat tribes as
states for all purposes. In such cases, section 301(d)(4)
allows EPA, through rulemaking, to “directly administer
such provisions [of the Act] so as to achieve the appropriate
purpose” either by tailoring the provisions to tribes or
conducting a federal program.

* Contrary to the commenter’s assertion, EPA does not interpret
the “or” in this section as an “and”. If the “or” were an “and”, under
section 301(d2) EPA would be authorized to approve a tribal program
“only if” the functions to be exercised by the tribe pertain to air resources
that are both within a reservation and within non-reservation areas over
which the tribe can demonstrate jurisdiction. This interpretation is
nonsensical. Moreover, nothing in the Act or legislative history suggests
that Congress intended to limit so severely the universe of tribes eligible
for CAA programs

S8a

An industry commenter states that CAA section
110(0), which provides that when a tribal implementation
plan (TIP) becomes effective under CAA section 301(d) “the
plan shall become applicable to all areas (except as expressly
provided otherwise in the plan) located within the exterior
boundaries of the reservation * * *,” does not support EPA’s
interpretation of the CAA as a delegation because section
110(0) is only applicable to plans EPA approved pursuant to
regulations under section 301(d).

EPA believes that section 110(0) recognizes that
approved tribes are authorized to exercise authority over all
areas within the exterior boundaries of a reservation for the
purposes of TIPs. EPA notes that the commenter omitted the
following remaining language in the quoted sentence from
CAA section 110(0): “located within the exterior boundaries
of the reservation, notwithstanding the issuance of any patent
and including rights-of-way running through the reservation.”
EPA believes that this additional language makes clear that

TIPs may apply to al) areas within the exterior boundaries of

reservations. EPA believes that the phrase “except as
expressly provided otherwise in the plan” refers to a situation
where a tribe seeks to have its TIP apply only to specific
areas within a reservation.

An industry commenter states that the CAA does not
depart from other Congressional provisions regarding
“treatment as a state” in the Clean Water Act (CWA) and the
Safe Drinking Water Act (SDWA) and EPA has already
determined that these other statutes do not constitute a
delegation of authority to tribes. EPA notes that the CAA
“treatment as a state” provision is notably different from the
SDWA “treatment as a state” provision. Compare CAA §
301(d)(2) (“the functions to be exercised by the Indian tribe
[must] pertain to the management and protection of air
resources within the exterior boundaries of the reservation or
other areas within the tribe’s jurisdiction”) with SDWA §

CMAN, Wily Sait ar

59a

1451(b)(1)(B) (“the functions to be exercised by the Indian
tribes [must be] within the area of the Tribal Government’s
jurisdiction”). In addition, although CWA section 518(e) and
CAA section 301(d) both contain language regarding tribal
programs over “Indian reservations,” EPA believes that the
overall statutory scheme and legislative history of the CAA
represent a clearer expression than that of the CWA that
Congress intended to effectuate a delegation to tribes over
reservations.’ EPA notes that, except for the provisions in
CWA section 518(e) and SDWA section 1451(b)(1)(B), the
Water Acts do not otherwise indicate what areas are subject
to tribal regulatory authority. By contrast, several provisions
of the CAA expressly recognize that tribes may exercise
CAA authority over all areas within the exterior boundaries
of the reservation. See CAA sections | 10(0) and 164(c).

One industry commenter states that EPA should make
clear that the CAA does not supersede other laws that may
define or limit the extent of trival regulatory jurisdiction.’

‘ EPA also notes that a federal district court has Stated that CWA
section 518(e) may be read as an express delegation of authority to tribes
over all reservation water resources. Montana v. US EPA, 941 F. Supp.
945, 951, 957 n.10 & n.12 (D. Mont. 1996) citing Brendale, 492 U.S. at
428 (White, J.). In the preamble to its 1991 CWA regulation, EPA found
the statutory language and legislative history of the CWA too
inconclusive for the Agency to rely on the delegation theory, but noted
that “the question of whether section 518(e) is an explicit delegation of
authority Over non-Indians is not resolved.” 56 FR 64876, 64880-88 |
(December 12, 1991).

* This commenter also asserts that the Chevron doctrine does not
support EPA’s interpretation that the CAA settles all jurisdictional issues
on lands within reservations. While EPA believes that the CAA
represents a clear delegation of authority to eligible tribes over
reservation resources, EPA notes that, to the extent the Statute is
ambiguous, EPA’s interpretation would be entitled to deference. In
addition, the Agency has broad expertise in reconciling federal

60a

The commenter states that, given that the CAA does not
supersede all other laws regarding tribal jurisdiction, EPA
should follow a case-by-case approach for addressing
jurisdiction within reservation boundaries. One state
association notes that some states have statutory jurisdiction
over non-Indian fee lands located on reservations and EPA
does not address how conflicts between the CAA and these
statutes will be addressed.

EPA believes that the CAA delegation of authority to
eligible tribes over reservations represents a more recent
expression of Congressional intent and will generally
supersede other federal statutes. See Adkins v. Arnold, 235
U.S. 417, 420 (1914) (noting that “later in time” statutes
should take precedence). There may be, however, rare
instances where special circumstances may preclude EPA
from approving a tribal program over a reservation area. For
example, in rare cases, there may be another federal statute
granting a state exclusive jurisdiction over a reservation area
that may not be overridden by the CAA. There may also be
cases where a current tribal constitution may limit tribal
exercise of authority.”

EPA will consider on a case-by-case basis whether
special circumstances exist that would prevent a tribe from
implementing a CAA _ program over its reservation.
Appropriate governmental entities will have an opportunity
to raise these unique issues on a case-by-case basis during
EPA’s review of a tribal application. Where tribes are aware

environmental and Indian poiicies. Washington Department of Ecology,
752 F.2d 1465, 1469 (9th Cir. 1985).

* Among other things, the commenter questions whether pre-
existing treaties or binding agreements may limit the extent of regulatory
jurisdiction. EPA believes that the CAA generally would supersede pre-
existing treaties or binding agreements that may limit the scope of tribal
authority over reservations.

6la

of such issues, they should bring the issues to EPA’s
attention by including them in the tribe’s “descriptive
statement of the Indian tribe’s authority to regulate air
quality” under 40 CFR 49.7(a\(3). If EPA determines that
there are special circumstances that would preclude the
Agency from approving a tribal program over a reservation
area, the Regional Administrator would limit the tribal
approval accordingly under 40 CFR 49.9%e) and (g).

(c) Legislative History. Several industry and local
government commenters assert that the legislative history
does not support EPA's interpretation of the CAA as a
delegation. They state that Senate Report No. 101-228, pp.
78-79, 1990 U.S. Code Cong. Admin. News at 3464-65
(Senate Report) evidences Congress’ intent that the CAA
authorizes tribal programs in the same manner as had been
authorized under the CWA and SDWA, both of which EPA
has interpreted to authorize tribal programs only in areas over
which a tribe can demonstrate inherent jurisdiction. The
commenter also states that the Senate Report made clear that
treatment as a state is only authorized for areas within a
tribe's jurisdiction. Ip addition, one commenter states that
Congress in 1990 knew how similar provisions of the CWA
and SDWA had been interpreted and “Congress can normally
be presumed to have had knowledge of the interpretation
given to the incorporated law. * * *” citing St. Regis Mohawk
Tribe, New York v. Brock, 769 F.2d 37, 50 (2nd Cir. 1985).
One commenter further argues that the Senate Report refers
to Brendale, which requires a case-by-case approach to tribal
inherent jurisdiction.

EPA acknowledges that the summary of the treatment
as a state provisions in the Senate Report contains a general
Statement suggesting that tribes are to demonstrate
jurisdiction for all areas for which they seek a program,
including reservation areas. However, the summary is
followed by a detailed discussion that makes clear that

62a

Congress intended to provide an express delegation of power
to Indian tribes for all reservation areas and to require a
jurisdictional showing only for non-reservation areas. Senate
“Report at 79.

In addition, the Senate Report cited Brendale for the
proposition that Congress may delegate federal authority to
tribes. Moreover, although Brendale does support a case-by-
case approach to evaluating tribal inherent authority over
non-members of the tribe, EPA notes that the Senate Report
cites the section of the Brendale opinion (pages 3006-07) in
which Justice White recognizes that Congress may expressly
delegate to a tribe authority over non-members. See
Brendale, 109 S.Ct. 2994, 3006-07 (1989). EPA believes
that this statement in the Senate Report further supports
EPA’s view that the CAA was intended to be a delegation.
EPA also notes that in 1989, when the Senate Report was
written, EPA had not yet finalized its interpretation that
Congress, in the CWA, did not clearly intend a delegation to
tribes. See 56 FR 64876, 64880-881 (December 12, 1991);
see also Montana v. EPA, 941 F. Supp. 945, 951, 957 n.10 &
n.12 (noting that the CWA may be read as a delegation of
CWA authority to tribes over reservations). Thus, read as a
whole, the Senate Report supports EPA’s interpretation that
the CAA is a delegation.

(d) Limitations on Congressional delegations of
authority. Several state and municipal commenters state that
Montana, Brendale, and Bourland establish that tribes
generally do not have authority to regulate the activities of
nonmembers on nonmember-owned fee lands. Several
commenters also assert that tribes generally will not have
inherent authority over sources of air pollution on non-Indian
owned fee lands within a reservation. As discussed in detail
in the preamble to the proposed rule (59 FR 43958 ef seq.),
EPA believes that tribes generally will have inherent
authority over air pollution sources on fee lands. 59 FR at

63a

43958 n.5; see also Montana v. EPA, 94) F.Supp. 945 (D.
Mont. 1996\(upholding EPA’s determination that the
Confederated Salish and Kootenai Tribes possess inherent
authority over nonmember activities on fee lands for
purposes of establishing water quality standards under the
CWA). Nonetheless, because the Agency is interpreting the
CAA as an explicit delegation of federal authority to eligible
tribes, it is not necessary for EPA to determine whether tribes
have inherent authority over all sources of air pollution on
their reservations.

Several commenters state that only delegations over
lands and activities subject to inherent tribal power are
permissible. One commenter states that the proposed rule
should be modified to require tribes to establish preexisting
authority for on-reservation CAA programs, at least with
regard to fee lands heid by nonmembers within reservations.
Two commenters, one citing the United States Constitution
and the other citing U.S. v. Morgan, 614 F.2d 166 (8th Cir.
1980), also assert that a tribe cannot have delegated authority
over nonmembers on fee lands living in a non-Indian
community within a reservation. A state commenter asserts
that these two factors, i.e., whether a tribe possesses inherent
authority and whether the delegation is over nonmembers
living on fee lands within a non-Indian community, were
factors considered by the Supreme Court in Mazurie in
evaluating whether Congress had validly delegated federal
authority to tribes to regulate the introduction of alcoholic
beverages into Indian country.

EPA believes that Indian tribes have sufficient
independent authority to assume a Congressional delegation
of authority to implement CAA programs. The Supreme
Court in Mazurie acknowledged that Indian tribes have
sovereignty over “both their members and their territory.”
419 U.S. at 557. As discussed above, EPA believes that
tribes generally will have inherent authority to regulate

64a

sources of air pollution on nonmember-owned iee lands
within reservations as well. However, EPA notes that the
Court in Mazurie held that it is not necessary for a tribe to
have independent authority over all matters that would be
subject to the delegated authority; rather “[ijt 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 ‘to regulate
Commerce * * * with the Indian tribes.” 419 U.S. at 557
(citation omitted).

In addition, while the Court in Mazurie noted that
Constitutional limits on the authority of Congress to delegate
its legislative power are “less stringent in cases where the
entity exercising the delegated authority itself possesses
independent authority over the subject matter,” the Court did
not say that some independent source of authority was an
absolute prerequisite for a Congressional delegation. 419
U.S. at 556-57.° Even in a case where a particular tribe's
inherent authority is markedly limited, the detailed
parameters outlined in the CAA and EPA’s oversight role
over tribal exercise of authority delegated by the CAA are
sufficient to ensure that Constitutional limitations on the
delegated authority have not been exceeded.

° One industry commenter asserts that delegations of federal
authority from Congress must “clearly delineate” policy and standards to
be effective or valid, citing American Power & Light Co. v. Securities
and Exchange Commission, 329 U.S. 90, 105 (1946). According to this
commenter, EPA’s proposed interpretation does not meet this standard.
EPA agrees that the non-delegation doctrine does include a limitation on
the devolution of legislative power under terms so vague as to be
standardless, but that limitation has become a very low threshold, see
Mistretta v. United States, 488 U.S. 361 (1989)(Scalia, J., dissenting);
Industrial Union Dep't v. American Petroleum Inst., 448 U.S. 607 (1980)
(Rehnquist, J., concurring in the judgment), and is easily met by the
CAA. The CAA provides detailed direction to tribes on the parameters
under which CAA programs are to be implemented.

65a

Furthermore, EPA disagrees with the commenter’s
assertion that the United States Constitution and federal court
precedent prohibit Congress from delegating authority to a
tribe over nonmembers on fee land living in a non-Indian
community within a reservation. See City of Timber Lake v.
Cheyenne River Sioux Tribe, 10 F.3d 554 (8th Cir. 1993),
reh'g en banc denied, 1994 U.S. App. Lexis 501 (1994), cert
denied, 512 U.S. 1236 (1994): see also Rice v. Rehner, 463
U.S. 713, 715 (1983) (noting that Congress, in 18 U.S.C.
1161, delegated to tribes authority to regulate liquor
throughout Indian country, including in non-Indian
communities). The discussion in Morgan and Mazurie about
“non-Indian communities” was centered around the specific
language of 18 U.S.C. sections 1154 and 1156 regarding
introduction of alcoholic beverages into Indian country, and
is not relevant to an interpretation of the CAA. In addition.
EPA notes that the Eighth Circuit Court of Appeals, in City
of Timber Lake, 10 F.3d 554, declined to follow its prior
decision in Morgan, and concluded that 18 U.S.C. section
1161 delegated authority to tribes to regulate liquor in all of
Indian country, including non-Indian communities.

One industry commenter asserts that, if EPA finalizes
its position that Congress has delegated federal authority to
tribes, EPA should state explicitly in its rule that the Bill of
Rights and other federal protections for regulated entities
apply to tribal air programs. EPA notes that the Indian Civil
Rights Act imposes tribal on governments restrictions similar
to those contained in the Bill of Rights and the Fourteenth
Amendment, including the prohibitions against the denial of
due process and equal protection, and the taking of private
property without just compensation. 25 U.S.C. 1302: Santa
Clara Pueblo vy. Martinez, 436 U.S. 49, 57 (1978). These
protections extend to all persons subject to tribal jurisdiction,
whether Indians or non-Indians. Jowa Mutual Insurance Co.
v. LaPlante, 480 U.S. 9, 19 (1987). EPA believes that

66a

whether or not the Bill of Rights applies to tribes
implementing the CAA on reservations is an issue for the
courts to decide when and if the issue arises in a particular
case. See Mazurie, 419 U.S. at 558 n. 12.

(e) Use of the word “reservation.” Several tribal
commenters supported EPA’s proposal to construe the term
“reservation” to include trust land that has been validly set
apart for use by a tribe, even though that land has not been
formally designated as a “reservation.” See 59 FR at 43960;
56 FR at 64881; see also Oklahoma Tax Comm'n y. Citizen
Band Potawatomi Indian Tribe of Oklahoma, 111 S.Ct. 905,
910 (1991). Some tribal commenters suggested that the
definition of “reservation” in proposed § 49.2 be broadened
specifically to include “trust land that has been validly set
apart for use by a Tribe, even though the land has not been
formally designated as a reservation.”

A state commenter states that EPA has not provided
an analysis of relevant provisions in the CAA to support its
proposition that the term “reservation” includes “trust land
that has been validly set apart for the use of a Tribe.” In
addition, this commenter questions EPA’s reliance on
Oklahoma Tax Comm'n because that case deals with trust
lands in Oklahoma and may not be universally applicable.
Several commenters express concern that the phrase “exterior
boundaries of the reservation” could encompass lands held in
fee by nonmembers outside of areas formally designated as
“reservations.” A state commenter suggests that EPA should
require a case-by-case demonstration in cases where non-
Indian-owned lands exist which may be surrounded by the
exterior boundaries of 1 Pueblo. The commenter asserts that
in these circumstances there is no evidence that the non-
Indian lands were “validly set apart for the use of the Indians
as such, under the superintendence of the Government.” The
State of Oklahoma objects to EPA’s use of the word
“reservation” because, by federal law, the term “reservation”

67a

can include former reservations in Oklahoma, which include
approximately the entire State. See 25 U.S.C. 1425. The
State suggests that EPA should limit the term reservation to
include only tribal trust land in Oklahoma; lands held in trust
for individual Indians, Oklahoma asserts, should not be
considered “reservations.”

It is the Agency’s position that the term “reservation”
in CAA section 301(d)(2)(B) should be interpreted in light of
Supreme Court case law, including Oklahoma Tax Comm'n.
in which the Supreme Court held that a “reservation,” in
addition to the common understanding of the term, also
includes trust lands that have been validly set apart for the
use of a tribe even though the land has not bee

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386014_1310%3A2. Public record. Not legal advice.
