OPINION OF THE COURT
NATIONAL ASSN. OF HOME BUILDERS V. DEFENDERSOF WILDLIFE
551 U. S. ____ (2007)
SUPREME COURT OF THE UNITED STATES
NOS. 06-340 AND 06-549
NATIONAL ASSOCIATION OF HOME BUILDERS, et al.,
PETITIONERS
06–340
v.
DEFENDERS OF WILDLIFE et al.
ENVIRONMENTAL PROTECTION AGENCY,
PETITIONER
06–549 v.
DEFENDERS OF WILDLIFE et al.
on writs of certiorari to the united states
court of appeals for the ninth circuit
[June 25, 2007]
Justice Alito delivered
the opinion of the Court.
These cases concern the interplay
between two federal environmental statutes. Section 402(b) of the
Clean Water Act requires that the Environmental Protection Agency
transfer certain permitting powers to state authorities upon an
application and a showing that nine specified criteria have been
met. Section 7(a)(2) of the Endangered Species Act of 1973 provides
that a federal agency must consult with agencies designated by the
Secretaries of Commerce and the Interior in order to “insure that
any action authorized, funded, or carried out by such agency … is
not likely to jeopardize the continued existence of any endangered
species or threatened species.” The question presented is whether
§7(a)(2) effectively operates as a tenth criterion on which the
transfer of permitting power under the first statute must be
conditioned. We conclude that it does not. The transfer of
permitting authority to state authorities—who will exercise that
authority under continuing federal oversight to ensure compliance
with relevant mandates of the Endangered Species Act and other
federal environmental protection statutes—was proper. We therefore
reverse the judgment of the United States Court of Appeals for the
Ninth Circuit.
I
A
1
The Clean Water Act of 1972
(CWA), 86 Stat. 816, 33 U. S. C. §1251
et seq.,
established a National Pollution Discharge Elimination System
(NPDES) that is designed to prevent harmful discharges into the
Nation’s waters. The Environmental Protection Agency (EPA)
initially administers the NPDES permitting system for each State,
but a State may apply for a transfer of permitting authority to
state officials. See 33 U. S. C. §1342; see also §1251(b) (“It
is the policy of Congress that the Stat[e] … implement the permit
progra[m] under sectio[n] 1342 … of this title”). If authority is
transferred, then state officials—not the federal EPA—have the
primary responsibility for reviewing and approving NPDES discharge
permits, albeit with continuing EPA oversight.[
Footnote 1]
Under §402(b) of the CWA, “the
Governor of each State desiring to administer its own permit
program for discharges into navigable waters within its
jurisdiction may submit to [the EPA] a full and complete
description of the program it proposes to establish and administer
under State law or under an interstate compact,” as well as a
certification “that the laws of such State … provide adequate
authority to carry out the described program.” 33 U. S. C.
§1342(b). The same section provides that the EPA “shall approve
each submitted program” for transfer of permitting authority to a
State “unless [it] determines that adequate authority does not
exist” to ensure that nine specified criteria are satisfied.
Ibid. These criteria all relate to whether the state
agency that will be responsible for permitting has the requisite
authority under state law to administer the NPDES program.[
Footnote 2] If the criteria are met,
the transfer must be approved.
2
The Endangered Species Act of
1973 (ESA), 87 Stat. 884, as amended, 16 U. S. C. §1531
et
seq., is intended to protect and conserve endangered and
threatened species and their habitats. Section 4 of the ESA directs
the Secretaries of Commerce and the Interior to list threatened and
endangered species and to designate their critical habitats. §1533.
The Fish and Wildlife Service (FWS) administers the ESA with
respect to species under the jurisdiction of the Secretary of the
Interior, while the National Marine Fisheries Service (NMFS)
administers the ESA with respect to species under the jurisdiction
of the Secretary of Commerce. See 50 CFR §§17.11, 222.101(a),
223.102, 402.01(b) (2006).
Section 7 of the ESA prescribes
the steps that federal agencies must take to ensure that their
actions do not jeopardize endangered wildlife and flora. Section
7(a)(2) provides that “[e]ach Federal agency shall, in consultation
with and with the assistance of the Secretary [of Commerce or the
Interior], insure that any action authorized, funded, or carried
out by such agency (hereinafter in this section referred to as an
‘agency action’) is not likely to jeopardize the continued
existence of any endangered species or threatened species.” 16 U.
S. C. §1536(a)(2).
Once the consultation process contemplated by
§7(a)(2) has been completed, the Secretary is required to give the
agency a written biological opinion “setting forth the Secretary’s
opinion, and a summary of the information on which the opinion is
based, detailing how the agency action affects the species or its
critical habitat.” §1536(b)(3)(A); see also 50 CFR §402.14(h). If
the Secretary concludes that the agency action would place the
listed species in jeopardy or adversely modify its critical
habitat, “the Secretary shall suggest those reasonable and prudent
alternatives which he believes would not violate [§7(a)(2)] and can
be taken by the Federal agency … in implementing the agency
action.” 16 U. S. C. §1536(b)(3)(A); see also 50 CFR §402.14(h)(3).
Regulations promulgated jointly by the Secretaries of Commerce and
the Interior provide that, in order to qualify as a “reasonable and
prudent alternative,” an alternative course of action must be able
to be implemented in a way “consistent with the scope of the
Federal agency’s legal authority and jurisdiction.” §402.02.
Following the issuance of a “jeopardy” opinion, the agency must
either terminate the action, implement the proposed alternative, or
seek an exemption from the Cabinet-level Endangered Species
Committee pursuant to 16 U. S. C. §1536(e). The regulations
also provide that “Section 7 and the requirements of this part
apply to all actions in which there is discretionary Federal
involvement or control.” 50 CFR §402.03.
B
1
In February 2002, Arizona
officials applied for EPA authorization to administer that State’s
NPDES program.[
Footnote 3] The
EPA initiated consultation with the FWS to determine whether the
transfer of permitting authority would adversely affect any listed
species.
The FWS regional office concluded
that the transfer of authority would not cause any direct impact on
water quality that would adversely affect listed species. App. to
Pet. for Cert. in No. 06–340, p. 564. However, the FWS office was
concerned that the transfer could result in the issuance of more
discharge permits, which would lead to more development, which in
turn could have an indirect adverse effect on the habitat of
certain upland species, such as the cactus ferruginous pygmy-owl
and the Pima pineapple cactus. Specifically, the FWS feared that,
because §7(a)(2)’s consultation requirement does not apply to
permitting decisions by state authorities,[
Footnote 4] the transfer of authority would empower
Arizona officials to issue individual permits without considering
and mitigating their indirect impact on these upland species.
Id., at 565–566. The FWS regional office therefore urged
that, in considering the proposed transfer of permitting authority,
those involved in the consultation process should take these
potential indirect impacts into account.
The EPA disagreed, maintaining that “its
approval action, which is an administrative transfer of authority,
[would not be] the cause of future non-discharge-related impacts on
endangered species from projects requiring State NPDES permits.”
Id., at 564. As a factual matter, the EPA believed that
the link between the transfer of permitting authority and the
potential harm that could result from increased development was too
attenuated.
Id., at 654. And as a legal matter, the EPA
concluded that the mandatory nature of CWA §402(b)—which directs
that the EPA “shall approve” a transfer request if that section’s
nine statutory criteria are met—stripped it of authority to
disapprove a transfer based on any other considerations.
Id., at 654–655.
Pursuant to procedures set forth in a
memorandum of understanding between the agencies, the dispute was
referred to the agencies’ national offices for resolution. In
December 2002, the FWS issued its biological opinion, which
concluded that the requested transfer would not cause jeopardy to
listed species. The opinion reasoned that “the loss of section
7-related conservation benefits . . . is not an indirect effect of
the authorization action,”
id., at 117, because
“loss of any conservation benefit is not caused by
EPA’s decision to approve the State of Arizona’s program. Rather,
the absence of the section 7 process that exists with respect to
Federal NPDES permits reflects Congress’ decision to grant States
the right to administer these programs under state law provided the
State’s program meets the requirements of [§]402(b) of the Clean
Water Act.”
Id., at 114.
In addition, the FWS opined that
the EPA’s continuing oversight of Arizona’s permitting program,
along with other statutory protections, would adequately protect
listed species and their habitats following the transfer.
Id., at 101–107.
The EPA concluded that Arizona had met each of
the nine statutory criteria listed in §402(b) and approved the
transfer of permitting authority. In the notice announcing the
approval of the transfer, the EPA noted that the issuance of the
FWS’s biological opinion had “conclude[d] the consultation process
required by ESA section 7(a)(2) and reflects the [FWS’] agreement
with EPA that the approval of the State program meets the
substantive requirements of the ESA.”
Id., at 73.
2
On April 2, 2003, respondents
filed a petition in the United States Court of Appeals for the
Ninth Circuit seeking review of the transfer pursuant to 33 U.
S. C. §1369(b)(1)(D), which allows private parties to seek
direct review of the EPA’s determinations regarding state
permitting programs in the federal courts of appeals. The court
granted petitioner National Association of Homebuilders leave to
intervene as a respondent in that case. Respondent Defenders of
Wildlife also filed a separate action in the United States District
Court for the District of Arizona, alleging, among other things,
that the biological opinion issued by the FWS in support of the
proposed transfer did not comply with the ESA’s standards. The
District Court severed that claim and transferred it to the Court
of Appeals for the Ninth Circuit, which consolidated the case with
the suit challenging the EPA transfer. See 420 F. 3d 946
(2005).
A divided panel of the Ninth
Circuit held that the EPA’s approval of the transfer was arbitrary
and capricious because the EPA “relied during the administrative
proceedings on legally contradictory positions regarding its
section 7 obligations.”
Id., at 959. The court concluded
that the EPA “fail[ed] to understand its own authority under
section 7(a)(2) to act on behalf of listed species and their
habitat,”
id., at 977, because “the two propositions that
underlie the EPA’s action—that (1) it must, under the [ESA],
consult concerning transfers of CWA permitting authority, but (2)
it is not permitted, as a matter of law, to take into account the
impact on listed species in making the transfer decision—cannot
both be true,”
id., at 961. The court therefore concluded
that it was required to “remand to the agency for a plausible
explanation of its decision, based on a single, coherent
interpretation of the statute.”
Id., at 962.
The panel majority, however, did not follow
this course of action. Rather, the panel went on to review the
EPA’s substantive construction of the statutes at issue and held
that the ESA granted the EPA both the power and the duty to
determine whether its transfer decision would jeopardize threatened
or endangered species. The panel did not dispute that Arizona had
met the nine criteria set forth in §402(b) of the CWA, but the
panel nevertheless concluded that §7(a)(2) of the ESA provided an
“affirmative grant of authority to attend to [the] protection of
listed species,”
id., at 965, in effect adding a tenth
criterion to those specified in §402(b). The panel dismissed the
argument that the EPA’s approval of the transfer application was
not subject to §7(a)(2) because it was not a “discretionary action”
within the meaning of 50 CFR §402.03 (interpreting §7(a)(2) to
apply only to agency actions “in which there is discretionary
Federal involvement and control”). 420 F. 3d, at 967–969. It
viewed the FWS’s regulation as merely “coterminous” with the
express statutory language encompassing all agency actions that are
“ ‘authorized, funded, or carried out’ ” by the agency.
Id., at 969 (quoting 16 U. S. C. §1536(a)(2)). On
these grounds, the court granted the petition and vacated the EPA’s
transfer decision.
In dissent, Judge Thompson explained that the
transfer decision was not a “discretionary action” under 50 CFR
§402.03 because “[t]he Clean Water Act, by its very terms, permits
the EPA to consider only the nine specified factors. If a state’s
proposed permitting program meets the enumerated requirements,” he
reasoned, “the EPA administrator ‘shall approve’ the program. 33 U.
S. C. §1342(b). This [c]ongressional directive does not permit
the EPA to impose additional conditions.” 420 F. 3d, at
980.
The Ninth Circuit denied rehearing and
rehearing en banc. 450 F. 3d 394 (2006). Writing for the six
judges who dissented from the denial of rehearing en banc, Judge
Kozinski disagreed with the panel’s conclusion that the EPA’s
analysis was so internally inconsistent as to be arbitrary and
capricious. He further noted that, if the panel was correct on this
point, the proper resolution would have been to remand to the EPA
for further explanation.
Id., at 396–398. On the statutory
question, Judge Kozinski echoed Judge Thompson’s conclusion that
once the nine criteria set forth in §402(b) of the CWA are
satisfied, a transfer is mandatory and nondiscretionary.
Id., at 397–399. He rejected the panel majority’s broad
construction of ESA §7(a)(2), concluding that “[i]f the ESA were as
powerful as the majority contends, it would modify not only the
EPA’s obligation under the CWA, but
every categorical
mandate applicable to
every federal agency.”
Id.,
at 399, n. 4.
The Ninth Circuit’s construction of §7(a)(2)
is at odds with that of other Courts of Appeals. Compare 420
F. 3d 946 (case below), with
Platte River Whooping Crane
Critical Habitat Maintenance Trust v.
FERC, 962
F. 2d 27, 33–34 (CADC 1992), and
American Forest &
Paper Association v.
EPA, 137 F. 3d 291, 298–299
(CA5 1998). We granted certiorari to resolve this conflict, 549 U.
S. ___ (2007), and we now reverse.
II
Before addressing this question
of statutory interpretation, however, we first consider whether the
Court of Appeals erred in holding that the EPA’s transfer decision
was arbitrary and capricious because, in that court’s words, the
agencies involved in the decision “relied … on legally
contradictory positions regarding [their] section 7 obligations.”
App. to Pet. for Cert. in No. 06–340, at 23.
As an initial matter, we note
that if the EPA’s action was arbitrary and capricious, as the Ninth
Circuit held, the proper course would have been to remand to the
agency for clarification of its reasons. See
Gonzales v.
Thomas,
547
U. S. 183 (2006)
(per curiam). Indeed, the court below
expressly recognized that this finding required it to “remand to
the agency for a plausible explanation of its decision, based on a
single, coherent interpretation of the statute.” App. to Pet. for
Cert. in No. 06–340, at 28. But the Ninth Circuit did not take this
course; instead, it jumped ahead to resolve the merits of the
dispute. In so doing, it erroneously deprived the agency of its
usual administrative avenue for explaining and reconciling the
arguably contradictory rationales that sometimes appear in the
course of lengthy and complex administrative decisions. We need not
examine this question further, however, because we conclude that
the Ninth Circuit’s determination that the EPA’s action was
arbitrary and capricious is not fairly supported by the record.
Review under the arbitrary and capricious
standard is deferential; we will not vacate an agency’s decision
unless it
“has relied on factors which Congress had not
intended it to consider, entirely failed to consider an important
aspect of the problem, offered an explanation for its decision that
runs counter to the evidence before the agency, or is so
implausible that it could not be ascribed to a difference in view
or the product of agency expertise.”
Motor Vehicle Mfrs. Assn.
of United States, Inc. v.
State Farm Mut. Automobile Ins.
Co.,
463 U. S.
29, 43 (1983).
“We will, however, ‘uphold a decision of less than
ideal clarity if the agency’s path may reasonably be
discerned.’ ”
Ibid. (quoting
Bowman Transp.,
Inc. v.
Arkansas-Best Freight System, Inc.,
419 U. S. 281, 286
(1974)).
The Court of Appeals concluded that the EPA’s
decision was “internally inconsistent” because, in its view, the
agency stated—both during preliminary review of Arizona’s transfer
application and in the Federal Register notice memorializing its
final action—“that section 7 requires consultation regarding the
effect of a permitting transfer on listed species.” App. to Pet.
for Cert. in No. 06–340, at 23.
With regard to the various statements made by
the involved agencies’ regional offices during the early stages of
consideration, the only “inconsistency” respondents can point to is
the fact that the agencies changed their minds—something that, as
long as the proper procedures were followed, they were fully
entitled to do. The federal courts ordinarily are empowered to
review only an agency’s
final action, see 5 U. S. C.
§704, and the fact that a preliminary determination by a local
agency representative is later overruled at a higher level within
the agency does not render the decisionmaking process arbitrary and
capricious.
Respondents also point to the final Federal
Register notice memorializing the EPA’s approval of Arizona’s
transfer application. This notice stated that the FWS’s issuance of
its biological opinion had “conclude[d] the consultation process
required by ESA section 7(a)(2).” App. to Pet. for Cert. in No.
06–340, at 73. Respondents contend that this statement is
inconsistent with the EPA’s previously expressed position—and their
position throughout this litigation—that §7(a)(2)’s consultation
requirement is not triggered by a transfer application under §402
of the CWA.
We are not persuaded that this statement
constitutes the type of error that requires a remand. By the time
the Federal Register statement was issued, the EPA had already
consulted with the FWS about the Arizona application, and the
question whether that consultation had been
required, as
opposed to voluntarily undertaken by the agency, was simply not
germane to the final agency transfer decision. The Federal Register
statement, in short, was dictum, and it had no bearing on the final
agency action that respondents challenge. Mindful of Congress’
admonition that in reviewing agency action, “due account shall be
taken of the rule of prejudicial error,” 5 U. S. C. §706, we
do not believe that this stray statement, which could have had no
effect on the underlying agency action being challenged, requires
that we further delay the transfer of permitting authority to
Arizona by remanding to the agency for clarification. See also
PDK Labs., Inc. v.
United States Drug Enforcement
Admin., 362 F. 3d 786, 799 (CADC 2004) (“In
administrative law, as in federal civil and criminal litigation,
there is a harmless error rule”).[
Footnote 5]
We further disagree with respondents’
suggestion that, by allegedly altering its legal position while the
Arizona transfer decision and its associated litigation was
pending, the “EPA is effectively nullifying respondents’ rights to
participate in administrative proceedings concerning Arizona’s
application, and particularly respondents’ rights under EPA’s own
regulations to comment on NPDES transfer applications.” Brief for
Respondents 28 (citing 40 CFR §123.61(b); emphasis deleted).
Consistent with EPA regulations, the agency made available “a
comment period of not less than 45 days during which interested
members of the public [could] express their views on the State
program.” §123.61(a)(1). Respondents do not suggest that they were
deprived of their right to comment during this period.[
Footnote 6]
Respondents also contend that if the case were
remanded to the EPA, they would raise additional
challenges—including, for example, a challenge to the EPA’s
provision of financial assistance to Arizona for the administration
of its NPDES program. However, as explained below, any such agency
action is separate and independent of the agency’s decision to
authorize the transfer of permitting authority pursuant to §402(b).
See n. 11,
infra. We express no opinion as to the
viability of a separate administrative or legal challenge to such
actions.
III
A
We turn now to the
substantive statutory question raised by the petitions, a question
that requires us to mediate a clash of seemingly categorical—and,
at first glance, irreconcilable—legislative commands. Section
402(b) of the CWA provides, without qualification, that the EPA
“shall approve” a transfer application unless it determines that
the State lacks adequate authority to perform the nine functions
specified in the section. 33 U. S. C. §1342(b). By its terms,
the statutory language is mandatory and the list exclusive; if the
nine specified criteria are satisfied, the EPA does not have the
discretion to deny a transfer application. Cf. Lopez v.
Davis, 531
U. S. 230, 241 (2001) (noting Congress’ “use of a mandatory
‘shall’ … to impose discretionless obligations”); Lexecon
Inc. v. Milberg Weiss Bershad Hynes & Lerach,
523 U. S. 26, 35
(1998) (“[T]he mandatory ‘shall’ . . . normally creates an
obligation impervious to judicial discretion”); Association of
Civil Technicians v. FLRA, 22 F. 3d 1150, 1153
(CADC 1994) (“The word ‘shall’ generally indicates a command that
admits of no discretion on the part of the person instructed to
carry out the directive”); Black’s Law Dictionary 1375 (6th ed.
1990) (“As used in statutes … this word is generally imperative or
mandatory”). Neither respondents nor the Ninth Circuit has ever
disputed that Arizona satisfied each of these nine criteria. See
420 F. 3d, at 963, n. 11; Brief for Respondents 19,
n. 8.
The language of
§7(a)(2) of the ESA is similarly imperative: it provides that
“[e]ach Federal agency shall, in consultation with and with the
assistance of the Secretary, insure that any action authorized,
funded, or carried out by such agency . . . is not likely to
jeopardize” endangered or threatened species or their habitats. 16
U. S. C. §1536(a)(2). This mandate is to be carried out
through consultation and may require the agency to adopt an
alternative course of action. As the author of the panel opinion
below recognized, applying this language literally would
“ad[d] one [additional] requirement to the list of
considerations under the Clean Water Act permitting transfer
provision.” 450 F. 3d, at 404, n. 2 (Berzon, J.,
concurring in denial of rehearing en banc) (emphasis in original).
That is, it would effectively repeal the mandatory and exclusive
list of criteria set forth in §402(b), and replace it with a new,
expanded list that includes §7(a)(2)’s no-jeopardy
requirement.
B
While a later enacted
statute (such as the ESA) can sometimes operate to amend or even
repeal an earlier statutory provision (such as the CWA), “repeals
by implication are not favored” and will not be presumed unless the
“intention of the legislature to repeal [is] clear and manifest.”
Watt v. Alaska, 451 U. S. 259, 267
(1981) (internal quotation marks omitted). We will not infer a
statutory repeal “unless the later statute ‘ “expressly
contradict[s] the original act” ’ or unless such a
construction ‘ “is absolutely necessary . . . in order that
[the] words [of the later statute] shall have any meaning at
all.” ’ ” Traynor v. Turnage, 485 U. S. 535, 548
(1988) (quoting Radzanower v. Touche Ross &
Co., 426 U. S.
148, 153 (1976), in turn quoting T. Sedgwick, The
Interpretation and Construction of Statutory and Constitutional Law
98 (2d ed. 1874)); see also Branch v. Smith,
538 U. S. 254,
273 (2003) (“An implied repeal will only be found where provisions
in two statutes are in ‘irreconcilable conflict,’ or where the
latter Act covers the whole subject of the earlier one and ‘is
clearly intended as a substitute’ ”); Posadas v.
National City Bank, 296 U. S. 497, 503
(1936) (“[T]he intention of the legislature to repeal must be clear
and manifest”). Outside these limited circumstances, “a statute
dealing with a narrow, precise, and specific subject is not
submerged by a later enacted statute covering a more generalized
spectrum.” Radzanower, supra, at 153.
Here, reading
§7(a)(2) as the Court of Appeals did would effectively repeal
§402(b)’s statutory mandate by engrafting a tenth criterion onto
the CWA.[Footnote 7] Section
402(b) of the CWA commands that the EPA “shall” issue a permit
whenever all nine exclusive statutory prerequisites are met. Thus,
§402(b) does not just set forth minimum requirements for
the transfer of permitting authority; it affirmatively mandates
that the transfer “shall” be approved if the specified criteria are
met. The provision operates as a ceiling as well as a floor. By
adding an additional criterion, the Ninth Circuit’s construction of
§7(a)(2) raises that floor and alters §402(b)’s statutory
command.[Footnote 8]
The Ninth Circuit’s reading of
§7(a)(2) would not only abrogate §402(b)’s statutory mandate, but
also result in the implicit repeal of many additional otherwise
categorical statutory commands. Section 7(a)(2) by its terms
applies to “any action authorized, funded, or carried out by” a
federal agency—covering, in effect, almost anything that an agency
might do. Reading the provision broadly would thus partially
override every federal statute mandating agency action by
subjecting such action to the further condition that it pose no
jeopardy to endangered species. See, e.g., Platte
River Whooping Crane Critical Habitat Maintenance Trust v.
FERC, 962 F. 2d, at 33–34 (considering whether
§7(a)(2) overrides the Federal Power Act’s prohibition on amending
annual power licenses). While the language of §7(a)(2) does not
explicitly repeal any provision of the CWA (or any other statute),
reading it for all that it might be worth runs foursquare into our
presumption against implied repeals.
C
1
The agencies charged
with implementing the ESA have attempted to resolve this tension
through regulations implementing §7(a)(2). The NMFS and FWS, acting
jointly on behalf of the Secretaries of Commerce and the Interior
and following notice-and-comment rulemaking procedures, have
promulgated a regulation stating that “Section 7 and the
requirements of this part apply to all actions in which there is
discretionary Federal involvement or control.” 50 CFR
§402.03 (emphasis added). Pursuant to this regulation, §7(a)(2)
would not be read as impliedly repealing nondiscretionary statutory
mandates, even when they might result in some agency action.
Rather, the ESA’s requirements would come into play only when an
action results from the exercise of agency discretion. This
interpretation harmonizes the statutes by giving effect to the
ESA’s no-jeopardy mandate whenever an agency has discretion to do
so, but not when the agency is forbidden from considering such
extrastatutory factors.
We have recognized
that “[t]he latitude the ESA gives the Secretary in enforcing the
statute, together with the degree of regulatory expertise necessary
to its enforcement, establishes that we owe some degree of
deference to the Secretary’s reasonable interpretation” of the
statutory scheme. Babbitt v. Sweet Home Chapter,
Communities for Great Ore., 515 U. S. 687, 703
(1995). But such deference is appropriate only where “Congress has
not directly addressed the precise question at issue” through the
statutory text. Chevron U. S. A. Inc. v. Natural
Resources Defense Council, Inc., 467 U. S. 837, 843
(1984).
“If the intent of Congress is clear,
that is the end of the matter; for the court, as well as the
agency, must give effect to the unambiguously expressed intent of
Congress… . [However,] if the statute is silent or ambiguous
with respect to the specific issue, the question for the court is
whether the agency’s answer is based on a permissible construction
of the statute.” Id., at 842–843 (footnotes
omitted).
In making the
threshold determination under Chevron, “a reviewing court
should not confine itself to examining a particular statutory
provision in isolation.” FDA v. Brown & Williamson
Tobacco Corp., 529 U. S. 120, 132
(2000). Rather, “[t]he meaning—or ambiguity—of certain words or
phrases may only become evident when placed in context… . It
is a ‘fundamental canon of statutory construction that the words of
a statute must be read in their context and with a view to their
place in the overall statutory scheme.’ ” Id., at
132–133 (quoting Davis v. Michigan Dept. of
Treasury, 489
U. S. 803, 809 (1989)).
We must therefore read §7(a)(2) of
the ESA against the statutory backdrop of the many mandatory agency
directives whose operation it would implicitly abrogate or repeal
if it were construed as broadly as the Ninth Circuit did below.
When §7(a)(2) is read this way, we are left with a fundamental
ambiguity that is not resolved by the statutory text. An agency
cannot simultaneously obey the differing mandates set forth in
§7(a)(2) of the ESA and §402(b) of the CWA, and consequently the
statutory language—read in light of the canon against implied
repeals—does not itself provide clear guidance as to which command
must give way.
In this situation, it is
appropriate to look to the implementing agency’s expert
interpretation, which cabins §7(a)(2)’s application to “actions in
which there is discretionary Federal involvement or control.” 50
CFR §402.03. This reading harmonizes the statutes by applying
§7(a)(2) to guide agencies’ existing discretionary authority, but
not reading it to override express statutory mandates.
2
We conclude that this
interpretation is reasonable in light of the statute’s text and the
overall statutory scheme, and that it is therefore entitled to
deference under Chevron. Section 7(a)(2) requires that an
agency “insure” that the actions it authorizes, funds, or carries
out are not likely to jeopardize listed species or their habitats.
To “insure” something—as the court below recognized—means
“ ‘[t]o make certain, to secure, to guarantee (some thing,
event, etc.).’ ” 420 F. 3d, at 963 (quoting 7 Oxford
English Dictionary 1059 (2d ed. 1989)). The regulation’s focus on
“discretionary” actions accords with the commonsense conclusion
that, when an agency is required to do something by
statute, it simply lacks the power to “insure” that such action
will not jeopardize endangered species.
This reasoning is
supported by our decision in Department of Transportation
v. Public Citizen, 541 U. S. 752 (2004).
That case concerned safety regulations that were promulgated by the
Federal Motor Carrier Safety Administration (FMCSA) and had the
effect of triggering a Presidential directive allowing Mexican
trucks to ply their trade on United States roads. The Court held
that the National Environmental Policy Act (NEPA) did not require
the agency to assess the environmental effects of allowing the
trucks entry because “the legally relevant cause of the entry of
the Mexican trucks is not FMCSA’s action, but instead the
actions of the President in lifting the moratorium and those of
Congress in granting the President this authority while
simultaneously limiting FMCSA’s discretion.” Id., at 769
(emphasis in original). The Court concluded that “where an agency
has no ability to prevent a certain effect due to its limited
statutory authority over the relevant actions, the agency cannot be
considered a legally relevant ‘cause’ of the effect.” Id.,
at 770.
We do not suggest that Public
Citizen controls the outcome here; §7(a)(2), unlike NEPA,
imposes a substantive (and not just a procedural) statutory
requirement, and these cases involve agency action more directly
related to environmental concerns than the FMCSA’s truck safety
regulations. But the basic principle announced in Public
Citizen—that an agency cannot be considered the legal “cause”
of an action that it has no statutory discretion not to
take—supports the reasonableness of the FWS’s interpretation of
§7(a)(2) as reaching only discretionary agency actions. See also
California v. United States, 438 U. S. 645, 668, n.
21 (1978) (holding that a statutory requirement that federal
operating agencies conform to state water usage rules applied only
to the extent that it was not “inconsistent with other
congressional directives”).
3
The court below
simply disregarded §402.03’s interpretation of the ESA’s reach,
dismissing “the regulation’s reference to ‘discretionary …
involvement’ ” as merely “congruent with the statutory
reference to actions ‘authorized, funded, or carried out’ by the
agency.” 420 F. 3d, 968. But this reading cannot be right.
Agency discretion presumes that an agency can exercise “judgment”
in connection with a particular action. See Citizens to
Preserve Overton Park, Inc. v. Volpe, 401 U. S. 402, 415–416
(1971); see also Random House Dictionary of the English Language
411 (unabridged ed. 1967) (“discretion” defined as “the power or
right to decide or act according to one’s own judgment; freedom of
judgment or choice”). As the mandatory language of §402(b) itself
illustrates, not every action authorized, funded, or carried out by
a federal agency is a product of that agency’s exercise of
discretion.
The dissent’s
interpretation of §402.03 is similarly implausible. The dissent
would read the regulation as simply clarifying that discretionary
agency actions are included within the scope of §7(a)(2), but not
confining the statute’s reach to such actions. See post,
at 7–11. But this reading would render the regulation entirely
superfluous. Nothing in either §7(a)(2) or the other agency
regulations interpreting that section, see §402.02, suggests that
discretionary actions are excluded from the scope of the
ESA, and there is thus no need for a separate regulation to bring
them within the statute’s scope. On the dissent’s reading,
§402.03’s reference to “discretionary” federal involvement is mere
surplusage, and we have cautioned against reading a text in a way
that makes part of it redundant. See, e.g., TRW
Inc. v. Andrews, 534 U. S. 19, 31
(2001).
This history of the regulation
also supports the reading to which we defer today. As the dissent
itself points out, the proposed version of §402.03 initially stated
that “Section 7 and the requirements of this Part apply to all
actions in which there is Federal involvement or control,” 48
Fed. Reg. 29999 (1983) (emphasis added); the Secretary of the
Interior modified this language to provide (as adopted in the Final
Rule now at issue) that the statuory requirements apply to “all
actions in which there is discretionary Federal
involvement or control,” 51 Fed. Reg. 19958 (1986) (emphasis
added). The dissent’s reading would rob the word “discretionary” of
any effect, and substitute the earlier, proposed version of the
regulation for the text that was actually adopted.
In short, we read §402.03 to mean
what it says: that §7(a)(2)’s no-jeopardy duty covers only
discretionary agency actions and does not attach to actions (like
the NPDES permitting transfer authorization) that an agency is
required by statute to undertake once certain specified
triggering events have occurred. This reading not only is
reasonable, inasmuch as it gives effect to the ESA’s provision, but
also comports with the canon against implied repeals because it
stays §7(a)(2)’s mandate where it would effectively override
otherwise mandatory statutory duties.
D
Respondents argue
that our opinion in TVA v. Hill, 437 U. S. 153 (1978),
supports their contrary position. In that case, we held that the
ESA prohibited the Tennessee Valley Authority (TVA) from putting
into operation the Tellico Dam—despite the fact that the agency had
already spent over $100 million on the nearly completed
project—because doing so would have threatened the critical habitat
of the endangered snail darter. In language on which respondents
rely, the Court concluded that “the ordinary meaning” of §7 of the
ESA contained “no exemptions” and reflected “a conscious decision
by Congress to give endangered species priority over the ‘primary
missions’ of federal agencies.” Id., at 173, 185,
188.
TVA v.
Hill, however, had no occasion to answer the question
presented in these cases. That case was decided almost a decade
before the adoption in 1986 of the regulations contained in 50 CFR
§402.03. And in any event, the construction project at issue in
TVA v. Hill, while expensive, was also
discretionary. The TVA argued that by continuing to make lump-sum
appropriations to the TVA, some of which were informally earmarked
for the Tellico Dam project, Congress had implicitly repealed §7’s
no-jeopardy requirement as it applied to that project. See 437 U.
S., at 189–193. The Court rejected this argument, concluding that
“[t]he Appropriations Acts did not themselves identify the projects
for which the sums had been appropriated” and that reports by
congressional committees allegedly directing the TVA to complete
the project lacked the force of law. Id., at 189, n. 35.
Central to the Court’s decision was the conclusion that Congress
did not mandate that the TVA put the dam into operation;
there was no statutory command to that effect; and there was
therefore no basis for contending that applying the ESA’s
no-jeopardy requirement would implicitly repeal another affirmative
congressional directive.[Footnote
9]
TVA v. Hill thus
supports the position, expressed in §402.03, that the ESA’s
no-jeopardy mandate applies to every discretionary agency
action—regardless of the expense or burden its application might
impose. But that case did not speak to the question whether
§7(a)(2) applies to non-discretionary actions, like the
one at issue here. The regulation set forth in 50 CFR §402.03
addressed that question, and we defer to its reasonable
interpretation.
IV
Finally, respondents
and their amici argue that, even if §7(a)(2) is read to
apply only to “discretionary” agency actions, the decision to
transfer NPDES permitting authority to Arizona represented such an
exercise of discretion. They contend that the EPA’s decision to
authorize a transfer is not entirely mechanical; that it involves
some exercise of judgment as to whether a State has met the
criteria set forth in §402(b); and that these criteria incorporate
references to wildlife conservation that bring consideration of
§7(a)(2)’s no-jeopardy mandate properly within the agency’s
discretion.
The argument is
unavailing. While the EPA may exercise some judgment in determining
whether a State has demonstrated that it has the authority to carry
out §402(b)’s enumerated statutory criteria, the statute clearly
does not grant it the discretion to add another entirely separate
prerequisite to that list. Nothing in the text of §402(b)
authorizes the EPA to consider the protection of threatened or
endangered species as an end in itself when evaluating a transfer
application. And to the extent that some of the §402(b) criteria
may result in environmental benefits to marine species,[Footnote 10] there is no dispute
that Arizona has satisfied each of those statutory
criteria.
Respondents’ argument has been
disclaimed not only by the EPA, but also by the FWS and the NMFS,
the two agencies primarily charged with administering §7(a)(2) and
the drafters of the regulations implementing that section. Each
agency recently issued a formal letter concluding that the
authorization of an NPDES permitting transfer is not the kind of
discretionary agency action that is covered by §402.03. See App. to
Pet. for Cert. in No. 06–549, at 103a–116a. An agency’s
interpretation of the meaning of its own regulations is entitled to
deference “unless plainly erroneous or inconsistent with the
regulation,” Auer v. Robbins, 519 U. S. 452, 461
(1997) (internal quotation marks omitted), and that deferential
standard is plainly met here.[Footnote 11]
* * *
Applying
Chevron, we defer to the agency’s reasonable
interpretation of ESA §7(a)(2) as applying only to “actions in
which there is discretionary Federal involvement or control.” 50
CFR §402.03. Since the transfer of NPDES permitting authority is
not discretionary, but rather is mandated once a State has met the
criteria set forth in §402(b) of the CWA, it follows that a
transfer of NPDES permitting authority does not trigger §7(a)(2)’s
consultation and no-jeopardy requirements. Accordingly, the
judgment of the Court of Appeals for the Ninth Circuit is reversed,
and these cases are remanded for further proceedings consistent
with this opinion.
Footnote 1
The State must advise the EPA of
each permit it proposes to issue, and the EPA may object to any
permit. 33 U. S. C. §§1342(d)(1), (2); see also 40 CFR
§123.44(c) (2006). If the State cannot address the EPA’s concerns,
authority over the permit reverts to the EPA. 33 U. S. C.
§1342(d)(4).
Footnote 2
The State must demonstrate that
it has the ability: (1) to issue fixed-term permits that apply and
ensure compliance with the CWA’s substantive requirements and which
are revocable for cause; (2) to inspect, monitor, and enter
facilities and to require reports to the extent required by the
CWA; (3) to provide for public notice and public hearings; (4) to
ensure that the EPA receives notice of each permit application; (5)
to ensure that any other State whose waters may be affected by the
issuance of a permit may submit written recommendations and that
written reasons be provided if such recommendations are not
accepted; (6) to ensure that no permit is issued if the Army Corps
of Engineers concludes that it would substantially impair the
anchoring and navigation of navigable waters; (7) to abate
violations of permits or the permit program, including through
civil and criminal penalties; (8) to ensure that any permit for a
discharge from a publicly owned treatment works includes conditions
requiring the identification of the type and volume of certain
pollutants; and (9) to ensure that any industrial user of any
publicly owned treatment works will comply with certain of the
CWA’s substantive provisions. §§1342(b)(1)–(9).
Footnote 3
At the time when Arizona applied,
the EPA had already transferred permitting authority to local
authorities in 44 other States and several United States
Territories.
Footnote 4
By its terms, §7(a)(2)’s
consultation requirement applies only to “action[s] authorized,
funded, or carried out” by “Federal agenc[ies].”
Footnote 5
We also note that the agencies
involved have resolved any ambiguity in their positions going
forward. Following the issuance of the panel’s opinion below, the
EPA—in connection with the State of Alaska’s pending application
for transfer of NPDES permitting authority—requested confirmation
from the FWS and NMFS of the EPA’s position that “the no-jeopardy
and consultation duties of ESA Section 7(a)(2) do not apply to
approval of a State’s application to administer the NPDES program,”
in the apparent hope that obtaining those agencies’ views “in
advance of processing Alaska’s application may avoid a repetition
of” the confusion that occurred during the Arizona permitting
process. App. to Pet. for Cert. in No. 06–549, at 96a, 95a. In
response, both the FWS and the NMFS confirmed their understanding
that “there is no need to conduct Section 7 consultations on
proposed actions to approve State NPDES programs because such
actions are not the cause of any impact on listed species and do
not constitute discretionary federal agency actions to which
Section 7 applies.” Id., at 107a; see also id.,
at 116a (NMFS “concur[s] with EPA’s conclusion that EPA is not
required to engage in section 7 consultation on applications to
approve State programs in situations under Section 402(b) of the
CWA”).
Footnote 6
Nor is there any independent
right to public comment with regard to consultations conducted
under §7(a)(2)—a consultation process that we conclude, in any
case, was not required here. See 51 Fed. Reg. 19928 (1986)
(“Nothing in section 7 authorizes or requires the Service to
provide for public involvement (other than that of the applicant)
in the ‘interagency’ consultation process”).
Footnote 7
Justice Stevens’ dissenting
opinion attempts to paper over this conflict by suggesting that the
EPA and the agencies designated by the Secretary of the Interior
could reconcile the commands of the CWA and the ESA by
“generat[ing] an alternative course of action whereby the transfer
could still take place … but in such a way that would honor the
mandatory requirements of §7(a)(2).” Post, at 15. For
example, it suggests that the EPA could condition transfers of
permitting authority on the State’s acceptance of additional
continuing oversight by the EPA (presumably beyond that oversight
already contemplated by the CWA’s statutory language).
Post, at 17–19. But such a take-it-or-leave-it approach,
no less than a straightforward rejection of a transfer application,
would impose conditions on an NPDES transfer beyond those set forth
in §402(b), and thus alter the CWA’s statutory command.
Footnote 8
It does not matter whether this
alteration is characterized as an amendment or a partial repeal.
Every amendment of a statute effects a partial repeal to the extent
that the new statutory command displaces earlier, inconsistent
commands, and we have repeatedly recognized that implied amendments
are no more favored than implied repeals. See, e.g.,
Regional Rail Reorganization Act Cases, 419 U. S. 102, 134
(1974) (“ ‘A new statute will not be read as wholly or even
partially amending a prior one unless there exists a ‘positive
repugnancy’ between the provisions of the new and those of the old
that cannot be reconciled’ ”) (quoting In re Penn
Central Transportation Co., 384 F. Supp. 895, 943 (Sp.
Ct. R. R. R. A. 1974)); United States v.
Welden, 377
U. S. 95, 103, n. 12 (1964) (“Amendments by implication …
are not favored”); United States v. Madigan,
300 U. S. 500,
506 (1937) (“[T]he modification by implication of the settled
construction of an earlier and different section is not
favored”).
Footnote 9
The dissent is incorrect in
suggesting that “if the Secretary of the Interior had not declared
the snail darter an endangered species … the TVA surely would have
been obligated to spend the additional funds that Congress
appropriated to complete the project.” Post, at 4. To the
contrary, the Court in TVA v. Hill found that
there was no clear repugnancy between the ESA and the Acts
appropriating funds to the TVA because the latter simply did not
require the agency to use any of the generally
appropriated funds to complete the Tellico Dam project. 437 U. S.,
at 189–193.
Footnote
10
For example, §402(b) requires the
EPA to consider whether the State has the legal authority to
enforce applicable water quality standards—some of which, in turn,
are informed by the “judgment” of the EPA’s Administrator. 33 U.
S. C. §1342(b)(1)(A); see also, e.g., §1312. But the
permit transfer process does not itself require scrutiny of the
underlying standards or of their effect on marine or wildlife—only
of the state applicant’s “authority . . . [t]o issue
permits which . . . apply, and insure compliance with” the
applicable standards. §1342(b)(1)(A) (emphasis added). In any
event, respondents do not dispute that, as both the EPA and the FWS
determined, the transfer of permitting authority to Arizona
officials would have no adverse water quality related impact on any
listed species. See App. to Pet. for Cert. in No. 06–340, at
562–563, 615–617.
Footnote
11
Respondents also contend that the
EPA has taken, or will take, other discretionary actions apart from
the transfer authorization that implicate the ESA. For example,
they argue that the EPA’s alleged provision of funding to Arizona
for the administration of its clean water programs is the kind of
discretionary agency action that is subject to §7(a)(2). However,
assuming this is true, any such funding decision is a separate
agency action that is outside the scope of this lawsuit.
Respondents also point to the fact that, following the transfer of
permitting authority, the EPA will retain oversight authority over
the state permitting process, including the power to object to
proposed permits. But the fact that the EPA may exercise
discretionary oversight authority—which may trigger §7(a)(2)’s
consultation and no-jeopardy obligations—after the
transfer does not mean that the decision authorizing the transfer
is itself discretionary.
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