# Opposition Brief — Wetlands Action Network v. United States Army Corps of Engineers

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 2001
- **Citation:** 533 U.S. 946

## Text

by JUN 5+ 2001

No. 00-1692 : peace or THe CLERE

Jn the Supreme Court of the Gnited States :

WETLANDS ACTION NETWORK, ET AL., PETITIONERS
Vv.

UNITED STATES ARMY CORPS OF ENGINEERS, ET AL.

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

BRIEF FOR THE FEDERAL RESPONDENTS
IN OPPOSITION

PAUL D. CLEMENT
Acting Solicitor General
Counsel of Record

JOHN C. CRUDEN
Acting Assistant Attorney
General

ANDREW MERGEN

ANTHONY HOANG

MARK R. HAAG
Attorneys

Department of Justice
Washington, D.C. 20530-0001
(202) 514-2217

QUESTION PRESENTED

The National Environmental Policy Act of 1969
(NEPA), 42 U.S.C. 4321 et seg., requires federal
agencies to examine the environmental impacts of
proposed federal actions. Regulations promulgated by
the United States Army Corps of Engineers (Corps)
specify the appropriate scope of NEPA analysis when
the proposed federal action, such as obtaining a permit
to fill federally delineated wetlands, is merely one
component of a larger project that is not otherwise
within the Corps’ regulatory jurisdiction. Under those
regulations, the scope of the NEPA analysis of a
proposed federal action depends upon an examination of
a number of factors, including the “extent of cumulative
Federal control and responsibility” over the entire
project. 33 C.F.R. Pt. 325, App. B § 7(b)(iv). The
question presented is as follows:

Whether the Corps abused its discretion when it
determined that its NEPA analysis of a permit
authorizing the fill of 16 acres of wetlands should be
based on the direct, indirect, and cumulative impacts of
that federal action, rather than on the impacts of the
entire project of which the federal action was only a
small part.

(I)

TABLE OF CONTENTS

Page
Opinions below 1
Jurisdiction I
Statement 2 ;
Argument 13
Conclusion 22
TABLE OF AUTHORITIES
Cases: |
Baltimore Gas & Elec. Co. v. Natural Res. Def.
Council, Inc. 462 U.S. 87 (1983) 2
Natural Res. Def. Council, Inc. v. EPA, 859 F.2d
156 (D.C. Cir. 1988) 2
Resources Lid. v. Robertson, 35 F.3d 1300 (9th Cir.
1993) 18
Robertson v. Methow Valley Citizens Council,
490 U.S. 332 (1989) 16, 17
Sierra Club v. Forest Serv., 46 F.3d 835 (8th Cir.
1995) 18
Sierra Club v. Marsh, 769 F.2d 868 (1st Cir.
1985) 17, 18
Society Hill Towers Owners’ Ass'n v. Rendell,
210 F.3d 168 (3d Cir. 2000) 19, 20
Sylvester v. Army Corps of Eng’rs, 884 F.2d 394
(9th Cir. 1989) 6
Vermont Yankee Nuclear Power Corp. v. Natural
Res. Def. Council, Inc., 435 U.S. 519 (1978) .....sccseseesees 3,15
Vieux Carre Prop. Owners v. Pierce, 719 F.2d 1272
(5th Cir. 1983) 20, 21
Statutes and regulations:
Clean Water Act, 33 U.S.C. 1344 (§ 404) 7
National Environmental Policy Act of 1969, 42 U.S.C.
4321 et seq. 2

42 U.S.C. 4332(2)(C) 2,13

(IIT)

IV

Regulations—Continued: Page
33 C.F.R. Pt. 325, App. B:
Section 7(b) 3, 4, 11, 14,17
Section 7(b)(2) 5
Section 7(b)(3) 5, 12, 14
40 C.F.R.:
Section 1501.3 3
Section 1501.4 3
Section 1501.4(b) 3
Section 1508.7 18
Section 1508.13 3
Section 1508.18 3,14
Section 1508.25 18
52 Fed. Reg. 22,518 (1987) 18
53 Fed. Reg. (1988):
p. 3120 17
p. 3121 18
60 Fed. 20,975 (1995) 7

In the Supreme Court of the Gnited States

No. 00-1692
WETLANDS ACTION NETWORK, ET AL., PETITIONERS

vz.

UNITED STATES ARMY CORPS OF ENGINEERS, ET AL.

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

BRIEF FOR THE FEDERAL RESPONDENTS
IN OPPOSITION

OPINIONS BELOW

The opinion of the court of appeals (Pet. App. la-35a)
is reported at 222 F.3d 1105. The opinion of the district
court (Pet. App. 39a-92a) is unreported.

JURISDICTION

The judgment of the court of appeals was entered on
August 21, 2000. A petition for rehearing was denied
on January 10, 2001 (Pet. App. 38a). On March 30, 2001,
Justice O’Connor extended the time within which to file
a petition for a writ of certiorari to and including May
10, 2001, and the petition was filed on that date. The
jurisdiction of this Court is invoked under 28 U.S.C.
1254(1).

(1)

2

STATEMENT

This case involves a challenge to a permit issued by
the United States Army Corps of Engineers (Corps)
to Maguire Thomas Partners-Playa Vista (MTP-PV).
The permit authorizes MTP-PV to fill 16.1 acres
of scattered, highly degraded wetlands, and to create a
51-acre freshwater wetland system to mitigate that fill.
That federal action is a component of a much larger
project—MTP-PV’s construction of a multi-phase,
mixed-use development vn a 1000-acre property owned
by MTP-PV. Following extensive consideration, the
Corps determined that an environmental impact state-
ment for the challenged permit was not required under
the National Environmental Policy Act of 1969
(NEPA), 42 U.S.C. 4321 et seqg., and the Corps’ regula-
tions. The court of appeals upheld that determination
as a proper exercise of discretion.

1. NEPA requires federal agencies to examine the
environmental effects of proposed federal actions, and
to inform the public of the environmental concerns that
were considered in the agency’s decisionmaking. Balti-
more Gas & Elec. Co. v. Natural Res. Def. Council,
Inc., 462 U.S. 87, 97 (1983). Among other things,
NEPA requires agencies to prepare an environmental
impact statement (EIS) for any proposal involving a
“major Federal action[] significantly affecting the
quality of the human environment,” and establishes the
requirements of an EIS. 42 U.S.C. 4332(2)(C) (empha-
sis added). “NEPA does not, however, expand the
range of final decisions an agency is authorized to
make,” and “does not expand an agency’s substantive
powers.” Natural Res. Def. Council, Inc. v. EPA, 859
F.2d 156, 169 (D.C. Cir. 1988) (citing additional cases).

3

Accordingly, NEPA does not permit agencies to expand
their regulatory jurisdiction.

The Council on Environmental Quality (CEQ) has
promulgated regulations providing that an agency may
prepare an environmental assessment (EA) to deter-
mine whether a proposed action is likely to have a sig-
nificant impact on the environment. 40 C.F.R. 1501.3,
1501.4. The regulations define “major Federal action”
to include “actions with effects that may be major and
which are potentially subject to Federal control and
responsibility.” 40 C.F.R. 1508.18. If an agency finds
that a proposed action will not have a significant effect
on the quality of the human environment, no EIS is
required. 40 C.F.R. 1501.4(b), 1508.13. A reviewing
court may not substitute its judgment for that of the
agency as to the environmental consequences of a
challenged federal action. Vermont Yankee Nuclear
Power Corp. v. Natural Res. Def. Council, Inc., 435
U.S. 519, 555 (1978). Instead, the agency’s determina-
tion whether to proceed with an EIS must be upheld
unless it is arbitrary and capricious. Jd. at 554-555; Pet.
App. 16a-17a.

The Corps has its own regulations implementing
NEPA, which were approved by CEQ. 33 C.F.R. Pt.
325, App. B § 7(b). In particular, the regulations pro-
vide that, when the activity requiring a permit is
“merely one component of a larger project,” the EA or
EIS should “address the impacts of the specific activity
requiring a [Corps] permit and those portions of the
entire project over which the district engineer has
sufficient control and responsibility to warrant Federal

4

review.” Ibid. (emphasis added).'

In determining whether the degree of federal
“control and responsibility” over a project is sufficient
to require consideration of the environmental impacts
of the entire project, and not just the activity requiring
a permit, the regulations direct tne Corps to consider
the following factors:

(i) Whether or not the regulated activity
comprises “merely a link” in a corridor type project
(e.g., a transportation or utility transmission
project).

(ii) Whether there are aspects of the upland
facility in the immediate vicinity of the regulated
activity which affect the location and configuration
of the regulated activity.

1 33 C.F.R. Part 325, Appendix B § 7(b) provides:

Scope of Analysis. (1) In some situations, a permit appli-
cant may propose to conduct a specific activity requiring a
Department of the Army (DA) permit (e.g., construction of a
pier in a navigable water of the United States) which is merely
one component of a larger project (e.g., construction of an oil
refinery on an upland area). The district engineer should
establish the scope of the NEPA document (e.g., the EA or
EIS) to address the impacts of the specific activity requiring a
DA permit and those portions of the entire project over which
the district engineer has sufficient control and responsibility to
warrant Federal review.

(2) The district engineer is considered to have control and
responsibility for portions of the project beyond the limits of
Corps jurisdiction where the Federal involvement is sufficient
to turn an essentially private action into a Federal action.
These are cases where the environmental consequences of the
larger project are essentially products of the Corps permit
action.

5

(iii) The extent to which the entire project ‘will
be within Corps jurisdiction.

(iv) The extent of cumulative Federal control
and responsibility.

33 C.F.R. Pt. 325, App. B § 7(b)(2).

The Corps’ regulations include examples ‘of the
proper scope of NEPA analysis in various situations.
33 C.F.R. Pt. 325, App. B § 7(b)(3). For instance, tse
regulations state:

If a non-Federal * * * industrial facitity’ is
proposed to be built on an upland site and the only
DA permit requirement relates to a connecting
pipeline, supply loading terminal or fill road, that
pipeline, terminal or fill road permit, in and of itself,
normally would not constitute sufficient overall
Federal involvement with the project to justify
expanding the scope of a Corps NEPA document to
cover upland portions of the facility beyond the
structures in the immediate vicinity of the regulated
activity that would effect the location and configura-
tion of the regulated activity.

Ibid. Similarly, in the case of a 50-mile electric trans-
mission cable crossing a one and one-quarter mile-wide
river that is a navigable water of the United States, the
EA would require the agency to address the impacts of
the specific cable crossing, and not the “origin and
destination of the cable nor its route to and from the
navigable water, except as the route applies to the
location and configuration of the crossing,” because
those features of the project are not “within the control
or responsibility of the Corps.” Ibid.

The Ninth Circuit has upheld the Corps’ regulations
as “strik[ing] an acceptable balance between the needs

6

of NEPA and the Corps’ jurisdictional limitations.”
Sylvester v. Army Corps of Eng’rs, 884 F.2d 394, 399
(9th Cir. 1989). And petitioners have not challenged
those regulations in this case.

2.a. This case involves a 1000-acre parcel of property
known as Playa Vista, which is located in Los Angeles,
California, and contains 186 acres of federally deline-
ated wetlands. Pet. App. 5a-6a. For more than two
decades, MTP-PV has been planning to build a large-
scale, mixed-use development on that property, combin-
ing housing, offices, retail stores, hotels, recreation
areas, and open space in a design intended to reduce
dependence on automobiles. Jbid. The proposed
development has been the subject of close scrutiny by
federal, state, and local regulators, as well as extensive
environmental planning and permitting proceedings.
Id. at 6a & n.4; Gov’t C.A. Br. 8.

MTP-PV proposed to divide the overall project into
three separate phases. Phase I of the project involves
the development of approximately five million square
feet of office space, 13,000 residential units, and retail
and hotel space. Pet. App. 8a n.6. A small part of Phase
I calls for the filling of 16.1 acres of federally delineated
wetlands, and the creation of a 51.1-acre freshwater
wetland system to mitigate the impacts of the project
and provide stormwater management. The wetlands
subject to Phase I have been substantially degraded
from years of heavy industrial and agricultural use.
Eight acres of the wetlands subject to Phase I are
located on 17 isolated patches of land scattered across
the Playa Vista property; the remaining eight acres will
be used to create the freshwater wetland system (for
which four of those acres will be restored to wetlands).
Id. at 6a-7a, 8a. Phase II of the project provides for the
restoration and expansion of a remnant salt marsh,

7

from approximately 160 to 230 acres. Phase I11I—which
recently was combined with the proposed second
phase—calls for the development of a marina and
associated commercial and residential space. Id. at Ta.

The project was divided into those three phases for
purposes of permitting. The permit at issue in this case
governs only the filling of the 16.1 acres of wetlands in
connection with the first phase of the project. At the
time of the lower court proceedings in this case, MTP-
PV had not submitted a permit application for either
the second or the third phases of the project. The
Corps has determined, however, that an EIS will be
required in connection with the permit applications for
those phases (which, as noted, have since been merged
into one). 60 Fed. Reg. 20,975 (1995).

b. In August 1990, MTP-PV applied to the Corps
pursuant to Section 404 of the Clean Water Act,
33 U.S.C. 1344, for a permit to fill the Phase I wetlands.
After MTP-PV submitted an analysis of proposed alter-
natives to filling the wetlands, the Corps publicly
announced its preliminary determination that an EIS
would not be required for the proposed action, and
invited public comment. Numerous members of the
interested public, environmental groups, and pertinent
state and federal resource agencies commented on a
variety of issues in connection with MTP-PV’s permit
application, including the Corps’ compliance with
NEPA. Pet. App. 8a-9a.

In particular, the National Marine Fisheries Service
(NMFS), the United States Fish and Wildlife Service
(FWS), and the United States Environmental Protec-
tion Agency (EPA) (collectively, the “resource agen-
cies”) submitted comments raising certain concerns
about the permit application and project in general.
NMFS expressed concern about the decision to evalu-

4, A A AER ELC ALO LEAL AEE A TS

8

ate the Playa Vista project in three separate phases
and permit applications, and recommended that the
Corps reconsider its preliminary determination that an
EIS was not necessary. The FWS suggested in
conclusory fashion that an EIS was warranted. EPA
did not question the Corps’ preliminary determination
that an EIS was not required. Petitioners did not
submit any comments. Pet. App. 9a.

In 1991, MTP-PV submitted to the Corps a response
to the public comments, along with additional scientific
studies on the proposed development. MTP-PV ex-
plained that an EIS was neither necessary nor appro-
priate because the three project phases had inde-
pendent utility, were at different stages of planning,
and were subject to different governmental jurisdic-

tions. MTP-PV further explained that the wetlands fill.

constituted only a small portion of Phase I. Of the
5,025,000 square feet of office space, the 13,085 dwelling
units, and the retail and hotel space in the proposed
Phase I project, only 80,000 square feet of office space
(less than 1.6 %), only 450 dwelling units (3.4 %), and
none of the hotel and retail space would be built on
federally delineated wetlands. Given the limited scope
of the permitted action—especially relative to the
entire project—MTP-PV asserted that the federal
action for purposes of NEPA should not include the
upland impacts of the Playa Vista project, and thereby
bring the entire project within federal jurisdiction. Pet.
App. 8a n.6, 9a-10a; see 5 Admin. Record (AR) 2118-
2127.

In February 1992, the Corps completed initial drafts
of the permit and EA, and notified the resource
agencies that it intended to issue the permit approving
the filling of 16.1 acres of wetlands as part of Phase I.
After various meetings and exchanges of information

9

between the Corps, MTP-PV, and the resource
agencies, the Corps issued a second notice of intent to
issue the permit with new permit conditions, and the
resource agencies dropped their objections to the
permit. In July 1992, the Corps issued the permit
(including the agreed-upon conditions), along with the
associated EA and finding of no significant impact (or
FONSI). Pet. App. 10a-1la; Gov’t C.A. Br. 8-13 (dis-
cussing permitting process with federal and other
authorities).

ec. The EA contained a discussion of the comments
received by the Corps and the numerous factors con-
sidered by the Corps in deciding whether to approve
the permit, including possible alternatives to the Playa
Vista project; the impacts of the project on water
supplies, aesthetics, traffic and transportation patterns,
energy consumption, and air quality; and other factors.
The EA further discussed secondary and cumulative
effects of the entire project on the surrounding area.
Gov’t C.A. Br. 14. The Corps determined, however,
that “it did not need to include substantial considera-
tion of the development in the uplands area as part of
the NEPA review of [the] permit application because it
found that such development was outside its juris-
diction.” Pet. App. 1la.

The EA explained that MTP-PV’s three-phase ap-
proach to the Playa Vista project was appropriate
because of the independent utility of the project phases
and the large size and multi-faceted nature of the pro-
ject. In addition, the Corps explained that implementa-
tion of the entire project would be staged over several
years and would depend on changing market conditions,
diverse zoning controls, and permit authorizations
required by various local government agencies. The
Corps found that division of the project for permit

10

application purposes would help ensure that the appli-
cation would not be so large as to obscure its individual
components, and would not include future components
that were still in the early planning stages and
therefore not susceptible to meaningful consideration
and comment. Gov’t C.A. Br. 14-15.

The EA further determined that the proposed action
would actually result in a net increase in wetland
values, because, under the permit, 16.1 acres of highly
degraded wetlands would be replaced with 51 acres of
higher-value riparian and wetland habitat. The EA also
found that, even if the Corps denied the permit, the
development of the uplands would likely go forward,
resulting in the isolation and destruction of the wet-
lands while increasing the traffic-related impacts from
the project. The Corps concluded that the proposed
permit action does not have sufficient impacts to
warrant an EIS. Pet. App. 1la-12a; Gov’t C.A. Br. 14.

d. After the permit was issued, “MTP-PV performed
extensive filling, clearing, and grading in the wetlands
in the permit area.” Pet. App. 12a. Many of the wet-
lands covered by the permit have already been filled.
Gov't C.A. Br. 15.

3. In December 1996, more than four years after the
permit was issued and after substantial filling had
taken place, petitioners filed this action, alleging that
the Corps’ issuance of the Phase I permit violated
NEPA.’ Petitioners sought revocation of the permit
and a preliminary and permanent injunction enjoining
construction activity on the site. The district court
denied the request for a preliminary injunction. In June

2 Petitioners raised several additional claims under NEPA and
the Clean Water Act. But petitioners subsequently abandoned
those claims and they are not implicated here.

11

1998, however, the court granted summary judgment
for petitioners. In particular, the court found that the
Corps had violated NEPA by improperly limiting the
scope of its analysis to the impacts of the activities
covered by the permit rather than considering impacts
from the upland development. The district court
invalidated the permit and enjoined MTP-PV from any
further construction activities in the area covered by
the permit, but it denied petitioners’ request for an
injunction against further construction on the upland
portions of the site. The parties filed cross-appeals.
Pet. App. 12a-13a.

4, The court of appeals reversed the district court’s
decision to invalidate the permit and remanded with
instructions to vacate the injunction. Pet. App. 1a-35a.
The court explained at the outset that “[t]he Corps’
decision to prepare an EA rather than an EIS is
reviewed under the APA’s arbitrary and capricious
standard.” Id. at 16a. Because the Corps’ decision to
grant the permit was consistent with both the Corps’
regulations—which petitioners did not challenge—and
the record, the court held that “(t]he Corps’ determina-
tion of the scope of the NEPA review and its issuance
of a FONSI was not arbitrary and capricious.” Id. at
35a.

The court of appeals explained that, under the Corps’
NEPA regulations, “where the activity requiring a
* * * permit is ‘merely one component of a larger
project,” the scope of the Corps’ NEPA analysis
depends upon a multi-factored determination whether
federal “control and responsibility” exists over the
portions of the project not subject to the permit. Pet.
App. 17a (quoting 33 C.F.R. Pt. 325, App. B § 7(b)); see
id. at 17a-19a. The court then concluded that the record
supports the Corps’ determination that the Phase I

12

permit is functionally independent of the rest of the
project, and that the Corps “does not have independent
jurisdiction over the parts of the Phase I development
that do not require the filling of wetlands.” Jd. at 22a.
Indeed, “Phase I encompasses development of approxi-
mately 600 acres, only 16 of which are subject to direct
control by the corps through the permitting process”;
“the project is not financed by federal money”; and
“state and local, not federal, regulations control the
overall design” of the project. bid.

The court of appeals explained that the district
court’s contrary approach would greatly expand federal
jurisdiction over private development projects and
enlarge the Corps’ obligation to review the environ-
mental impacts of such projects in a manner that is
contradicted by the Corps’ regulations:

The linkage that the district court found between
the permitted activity and the specific project
planned is the type of “interdependence” that is
found in any situation where a developer seeks to fill
a wetland as part of a large development project. If
this type of connection alone were sufficient to
require a finding that an entire project falls within
the purview of the Corps’ jurisdiction, the Corps
would have jurisdiction over all such projects
including those which the Corps’ regulations cite as
examples of situations in which the Corps would not
have jurisdiction over the whole project.

Pet. App. 2la (citing 33 C.F.R. Pt. 325, App. B
§ 7(b)(3)).

The court of appeals also rejected the contention that
the potential environmental impacts of Phases II and
III of the Playa Vista project must be considered
together with the potential impacts of the permit

13

pertaining to Phase I in a single NEPA analysis. Pet.
App. 24a-27a. Again, the court emphasized that courts
owe “considerable discretion” to an agency’s determina-
tion whether multiple actions are sufficiently connected
to require that they be examined as part of a single EA
under the CEQ regulations. Jd. at 24a. Moreover, the
court found that “(t]he record supports the Corps’
_ conclusion” that each of the three phases has “inde-
pendent utility,” and they therefore are not “connected
actions” for purposes of the CEQ regulations, id. at 24a-
25a, and that the three phases are not “cumulative”
actions under either the CEQ regulations or Ninth
Circuit precedent. Jd. at 26a.

ARGUMENT

The court of appeals unanimously and correctly
determined that the Corps did not abuse its discretion
in assessing the environmental impacts of the chal- _
lenged permit based on the direct, indirect, and
cumulative impacts of that permit, and not those of the
entire Playa Vista project at large. That determination
is supported by the extensive record in this case and
squares with the scope of NEPA review called for by
the Corps’ regulations, which petitioners have not
challenged. The court of appeals’ fact-bound decision
does not conflict with any decision of this Court or of
any other court of appeals. Further review is not
warranted.

1. The scope of the NEPA analysis undertaken by
the Corps comports with the requirements of NEPA
and its implementing regulations. As discussed above,
NEPA requires an EIS for “major Federal actions
significantly affecting the quality of the human environ-
ment.” 42 U.S.C. 4332(2)(C). The CEQ’s NEPA regula-
tions define “major Federal action” to include “actions

14

with effects that may be major and which are poten-
tially subject to Federal control and responsibility.”
40 C.F.R. 1508.18. Similarly, the Corps’ regulations—
which were reviewed and approved by CEQ—provide
that where the activity requiring a permit is “merely
one component of a larger project,” the EA should
“address the impacts of the specific activity requiring a
[Corps] permit and those portions of the entire project
over which the district engineer has sufficient control
and responsibility to warrant Federal review.”
33 C.F.R. Pt. 325, App. B § 7(b).

Petitioners have not challenged the Corps’ NEPA
regulations and, as the court of appeals concluded, the
record in this case supports the Corps’ determination
that, among other considerations, the lack of federal
control and responsibility over the entire Playa Vista
project justified the Corps’ decision to limit its EA to
the particular federal action at issue—i.e., the permit
allowing the fill of 16.1 acres of wetlands in connection
with Phase I of the project. As the court explained,
“Phase I encompasses development of approximately
600 acres, only 16 of which are subject to direct control
by the corps through the permitting process.” Pet.
App. 22a. At the same time, the Playa Vista project is
not dependent on the permit at issue (and in fact
proceeded without it), the project “is not financed by
federal money,” and “state and local, not federal,
regulations control the overall design” of the project.
Ibid.

The Corps’ regulations give two examples of situa-
tions in which the action requiring a Corps’ permit (e.g.,
building a dock or running a pipeline or power line
across a river) is part of a larger project to be con-
structed on uplands. 33 C.F.R. Pt. 325, App. B § 7(b)(3).
Although the permit activity in those examples would

15

not be justified in the absence of the rest of the project,
the regulations provide that the upland portions of
those projects should not be deemed to be within the
control and responsibility of the Corps for purposes of
establishing the scope of NEPA review. The record in
this case supports the same conclusion. Indeed, as the
court of,appeals explained, if the type of connection
relied upon by petitioners (and the district court) to
establish federal control and responsibility over the
entire Playa Vista project—a permit to fill 16 acres of
wetlands as part of a much larger project—were suffi-
cient to bring the project within the Corps’ purview for
purposes of NEPA, “the Corps would have jurisdiction
over all such projects including those which the Corps’
regulations cite as examples of situations in which the
Corps would not have jurisdiction over the whole
project.” Pet. App. 21a.

More fundamentally, as discussed above, the Corps’
determination that its EA should not extend beyond
the federal activity that is the subject of the Corps’
permit is entitled to substantial deference and is
reviewable only for abuse of discretion. See Vermont
Yankee Nuclear Power Corp. v. Natural Res. Def.
Council, Inc., 485 U.S. 519, 555 (1978); Pet. App. 16a-
17a. Even if it were possible to second-guess the Corps’
determination on the extensive record in this case, the
court of appeals correctly determined that “the Corps’
decision to limit its review to the specific activity
requiring the permit is not arbitrary or capricious.”
Pet. App. 23a. That fact-bound conclusion does not
warrant further review.®

$ Although the Corps determined that “it did not need to in-
clude substantial consideration of the development in the uplands
area as part of the NEPA review of [the] permit application,” Pet.

16

2. Petitioners contend (Pet. 22) that the court of
appeals’ decision conflicts with Robertson v. Methow
Valley Citizens Council, 490 U.S. 332 (1989), arguing
that Robertson “recognize[s]” that an agency “is re-
quired to look at impacts outside its regulatory juris-
diction when preparing an EIS,” and therefore estab-
lishes that an agency is required to look at impacts
“outside this jurisdiction when determining whether to
prepare an EIS at all.” That contention is without
merit.

Robertson involved the question whether NEPA
requires agencies to include in an EIS a fully developed
plan to mitigate environmental harm, or “worst case”
analysis of potential harm. 490 U.S. at 335-336. There
was no question that the underlying federal action in
that case—the Forest Service’s issuance of a special-
use permit for the operation of a 3900-acre ski resort on
federal lands, id. at 338—was a major federal action
requiring an EIS under NEPA. As a result, Robertson
did not (and could not) decide how an agency should
define the scope of the federal action for purposes of
determining whether an EIS is required at all. With
respect to that issue (7.e., the one presented here), the
Corps’ regulations make clear that the Corps has no
obligation to define its action to include non-federal
actions—such as the construction of the upland portions

App. lla (emphasis added), the Corps’ EA nonetheless discussed
the environmental impacts of the project on water supplies,
aesthetics, traffic and transportation patterns, energy consump-
tion, and air quality, and other factors, as well as the secondary
and cumulative effects of the entire project on the surrounding
area. Gov't C.A. Br. 14. In addition, those portions of the project
that do not fall within federal jurisdiction remain subject to state
and local environmental controls, and have been and will be sub-

jected to regulatory scrutiny.

17

of the development in this case—over which the Corps
lacks “sufficient control and responsibility.” 33 C.F.R.
Pt. 325, App. B § 7(b). As discussed; petitioners donot
challenge those regulations and Robertson itself under-
scores that an agency’s interpretation of its own NEPA
regulations is entitled to considerable deference. 490
USS. at 358-359.

Furthermore, nothing in the court of appeals’
decision (or the Corps’ determination in this case) is
inconsistent with the principle that an agency may be
obliged to consider potential impacts that are beyond
its jurisdiction in deciding whether to prepare an EIS.
Indeed, the Corps’ regulations (33 C.F.R. Pt. 325, App.
B § 7(b)) require the Corps to consider the direct, in-
direct, and cumulative impacts—including extra-juris-
dictional impacts—that would result from its proposed
action: here, the issuance of the permit to fill 16 acres
of degraded wetlands and creation of a 51-acre wetland
system as mitigation. As the court of appeals con-
cluded, the Corps satisfied those requirements in this
case, in accordance with the approach established by its
own regulations. Pet. App. 20a-23a. At the same time,
however, the Corps is not obligated by NEPA or its
implementing regulations to define challenged federal
actions to include the actions of private parties that are
otherwise beyond federal control and responsibility,
and nothing in Robertson is to the contrary.

3. Petitioners allege (Pet. 22-25) that the court of
appeals’ decision also conflicts with the decisions of
other circuits. That contenticn is similarly unavailing.

There is no conflict with Sierra Club v. Marsh, 769
F.2d 868 (1st Cir. 1985). That case was decided three
years before the Corps’ adopted the NEPA regulations
utilized by it in determining the appropriate scope of
the EA challenged in this case. See 53 Fed. Reg. 3120,

18

3121 (1988); 52 Fed. Reg. 22,518 (1987). In addition,
Marsh is factually inapposite. There, the Corps and the
Federal Highway Administration had approved con-
struction of a causeway to, and a deep-water port on, a
previously-undeveloped island in Penobscot Bay,
Maine. The issue was whether the federal agencies
were obliged to consider, as an indirect impact of their
actions, the industrial development that would result
from the causeway and port. The First Circuit an-
swered that question in the affirmative, in part because
those impacts would be caused by the federal actions.
See 769 F.2d at 878 (“[T]he record makes it nearly
impossible to doubt that building the causeway and
port will lead to further development” on the island.)
(emphasis added). In this case, by contrast, the court of
appeals recognized that the upland impacts of the Playa
Vista project could occur—and indeed, were occurring
—even without the permit. Pet. App. 22a.

Nor does the decision below conflict with Sierra Club
v. Forest Service, 46 F.3d 835 (8th Cir. 1995). That case
involved a challenge to the Forest Service’s finding that
certain timber sales in a National Forest would have no
significant environmental impacts, and turned in
relevant part on whether the Forest Service’s analysis
of “connected” or “cumulative” actions was adequate.
Id. at 837-838. The Eighth Circuit, following the Ninth
Circuit’s analysis in an earlier Forest Service case, held
that the pertinent CEQ regulations (40 C.F.R. 1508.7,
1508.25) required the Forest Service to consider the
impacts that anticipated future activities on adjacent
private lands would have on the National Forest lands.
46 F.3d at 839 (citing Resources Ltd. v. Robertson,
35 F.3d 1300 (9th Cir. 1993)).

Petitioners argue (Pet. 24) that Sierra Club “clearly
held that analysis of activities outside the jurisdiction of

19

the federal agency must be considered in determining
whether to prepare an EIS.” Petitioners, however,
again confuse an agency’s duty to analyze the potential
impacts of the proposed federal action (even when those
impacts would be beyond the Corps’ jurisdiction) with
an agency’s obligation to include within the definition of
federal action the actions of third parties that are
beyond its jurisdiction. As explained above, under the
Corps’ regulations, the latter determination depends
upon the degree of federal control and responsibility
over the project at large. Petitioners suggest (Pet. 24)
that the court of appeals’ approval of the Corps’
analysis of connected and cumulative actions was based
on jurisdictional considerations. That is not so. The
court’s finding that the different project phases were
not sufficiently connected to require a global EIS for
the project was based on the pertinent CEQ regula-
tions, the long-standing “independent utility” test, and
Ninth Circuit case law, as applied to the extensive
record compiled by the Corps. See Pet. App. 25a-27a.‘
Society Hill Towers Owners’ Ass’n v. Rendell, 210
F.3d 168 (8d Cir. 2000), is also distinguishable. The
plaintiffs in that case argued that the Department of
Housing and Urban Development (HUD) had failed to

* Moreover, as discussed above, the court of appeals found that
the record supported the Corps’ conclusion that “the three phases
of the project are not connected actions because each [has] inde-
pendent utility.” As a result, the Corps “was not required to con-
sider the environmental impacts attributable to the three different
phases in a single NEPA analysis.” Pet. App. 25a. Similarly, the
court found that Phases II and III need not be analyzed together
with Phase I as “cumulative” actions, in part because the details
and planning decisions regarding Phases II and III had not yet
been completed when MTP-PV submitted its permit application.
Id. at 26a-27a. See Gov’t C.A. Br. 24-30.

20

consider the cumulative impacts of its approval of a
grant funding development of a hotel and parking
garage. Jd. at 172, 180. Petitioners argue (Pet. 25) that
Society Hill stands for the proposition that “impacts
outside HUD’s control must be considered under
NEPA, even if they are not within HUD’s jurisdiction,
if they are virtually certain to be completed as in the
present case.” Even that characterization, however,
does not conflict with the court of appeals’ decision
here. As explained above, the court of appeals’ ap-
proval of the Corps’ analysis of connected and cumula-
tive actions was not based on jurisdictional considera-
tions, but rather on its determination that the separate
phases of the Playa Vista project were functionally
independent. Pet. App. 24a, 26a-27a. In addition,
whereas the cumulative impacts of the project in
Society Hill were “virtually certain,” the opposite was
true here. As the court of appeals explained, at the
time MTP-PV applied for the Phase I permit at issue,
uncertainty clouded Phases II and III of the Playa
Vista project, including whether those phases would
receive approval from relevant federal, state, and local
regulatory bodies. Id. at 27a.

Vieux Carre Property Owners v. Pierce, 719 F.2d
1272 (5th Cir. 1983), likewise does not conflict with the
decision in this case. That case involves a straight-
forward application of the “independent utility” test
and, if anything, underscores that the court of appeals’
decision in this case is in step with the case law in other
courts of appeals. As the Fifth Circuit explained:

Confronted with a project that had independent
utility, the City properly determined that it should
be assessed independently of future speculative
phases. Not only was the decision imminently [sic]

21

reasonable under the facts before the City, it was
entirely consistent with this Court’s holdings that
“NEPA does not require an agency to consider the
possible environmental impacts of less imminent
actions when preparing the impact statement on
proposed actions.” South Louisiana Environmental
Council, Inc. v. Sand, 629 F.2d 1005, 1015 (5th Cir.
1980), quoting Kleppe v. Sierra Club, 427 U.S. 390,
96 S. Ct. 2718, 2730 n.20, 49 L.E.2d 576 (1976). As
was the situation in Environmental Defense Fund
v. Marsh, 651 F.2d 983 (5th Cir. 1981), “we are here
dealing with two projects that are historically
distinct, one of which is proposed and the other still
wm the process of study and design. In that situa-
tion, NEPA does not yet require the [agency] to
evaluate the environmental impact of the [second
project].” Id. at 999.

Id. at 1278 (emphasis added).

There is, in short, no conflict of authority in the lower
courts on the narrow question presented, and this
Court’s review accordingly is not warranted.

4, Petitioners argue (Pet. 25) that the court of
appeals’ decision conflicts with the CEQ regulations.
That is incorrect. The court of appeals specifically
acknowledged and applied the pertinent CEQ regula-
tions. Pet. App. 24a-25a. Petitioners’ claim of a conflict
with those regulations boils down to a disagreement
with the court of appeals’ application of the regulations
to the record in this case. Petitioners’ assertions (Pet.
27) regarding the importance of this case mischaracter-
ize the court of appeals’ decision. That decision breaks
no new legal ground. The court of appeals correctly
applied NEPA and its implementing regulations to the
particular facts of this case, and concluded that the

22

Corps did not abuse its discretion in determining that
the EA should be based on the federal permit action,
and not the entire project of which that federal action
was only a small and inessential part. That fact-bound
determination does not warrant further review.

CONCLUSION
The petition for a writ of certiorari should be denied.

Respectfully submitted.

PAUL D. CLEMENT
Acting Solicitor General

JOHN C. CRUDEN
Acting Assistant Attorney
General

ANDREW MERGEN
ANTHONY HOANG
MARK R. HAAG

Attorneys

JUNE 2001

* The Solicitor General is recused from participation in this
case.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386014_1786%3A4. Public record. Not legal advice.
