1 RECOMMENDED FOR FULL-TEXT PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 16a0151p.06 

### UNITED STATES COURT OF APPEALS

FOR THE SIXTH CIRCUIT

_________________

S IERRA C LUB , Plaintiff-Appellant ,

v

.

U

NITED S TATES F OREST S ERVICE , Defendant-Appellee ,

E NBRIDGE E NERGY , L IMITED P ARTNERSHIP , Intervenor-Appellee

. ┐ │ │ │ │ │ │ │ │ │ │ │ ┘ No. 15-2457

Appeal from the United St ates District Court for the Eastern District of Michigan at Bay City. No. 1:15-cv-10154—Thomas L. Ludington, District Judge. Argued: June 16, 2016
Decided and Filed: June 30, 2016
Before: MOORE, SUTTON, a nd DONALD, Circuit Judges.

_________________ COUNSEL

ARGUED: Marianne G. Dugan, Eugene, Oregon, fo r Appellant. Lane N. McFadden, UNITED STATES DEPARTMENT OF JUSTICE, Washingt on, D.C., for Federal Appellee. David H. Coburn, STEPTOE & JOHNSON LLP, Washingt on, D.C., for Appellee Enbridge Energy. ON BRIEF: Marianne G. Dugan, Eugene, Oregon, for Appellant. Lane N. McFadden, UNITED STATES DEPARTMENT OF JUSTICE, Washingt on, D.C., for Federal Appellee. David H. Coburn, Joshua Runyan, STEPTOE & JOHNSON LLP, Washington, D.C., for Appellee Enbridge Energy. 

### >No. 15-2457 Sierra Club v. U.S. Forest Serv. et al. Page 2

_________________ OPINION

_________________ KAREN NELSON MOORE, Circuit Judge. Plain tiff-Appellant Sierra Club appeals from
the district court’s decision granting summary judgment in fa vor of Defendants-Appellees United States Forest Service (“USFS”) and Enbri dge Energy Limited Part nership (“Enbridge”). Sierra Club argues that the USFS violated the National Environm ental Policy Act (“NEPA”), 42 U.S.C. § 4332(2)(C), in failing to prepare an Environmental Im pact Statement (“EIS”) or an Environmental Assessment (“EA”) prior to rei ssuing a permit to Enbridge to operate and maintain an oil pipeline on federal land. In granting summary judgmen t, the district court concluded that the USFS appropria tely found that the re issuance of Enbridge’s permit fell within a “categorical exclusion” and thus the agency was not required to prepare an EIS or an EA. For the reasons discussed below, we AFFIRM the judgment of the district court.

I. BACKGROUND

A. Factual Background
The federal government may grant a right-o f-way through federal land “for pipeline purposes for the transportation of oil.” 30 U. S.C. § 185(a). Beginning in 1953, the USFS issued a “special use permit” to Lakehead Pipeline Company, Inc. (“Lakehead”), permitting the company to use an 8.10 mile strip of governme nt land within the Lower Michigan National Forest “for the purpose of[] [c ]onstructing, operating and mainta ining a pipeline to transport crude oil.” R. 20-8 (1954 Perm it at 1) (Page ID #1639). The pi peline (“Line 5”) extends from Superior, Wisconsin to Sarnia, Ontario. Id.
In 1992, Lakehead changed its name to Lakehead Pipe Line Company, Limited Partnership, and the USFS reissued the special-use permit to this entity. R. 17-24 (1992 Permit at 1) (Page ID #1323). The 1992 permit authorized the use of the right-of-way until December 31, 2012, and noted that the USFS “shall renew the au thorization” for a reasonable term “[i]f the right-of-way project or faci lity is still being used for the purpo se(s) previously authorized and isNo. 15-2457 Sierra Club v. U.S. Forest Serv. et al. Page 3

being operated and maintained in accordance with all the provisi ons of the authorization” and other applicable laws and resource-management plans. Id. at 6 (Page ID #1328).
The 1992 permit was amended in 2002 when Lakehead changed its name to Enbridge Energy, Limited Partnership. R. 17-26 (20 02 Amendment at 1) (Page ID #1337). The amendment noted that “only the name of the co mpany has changed not th e ownership” and that “[a]ll other conditions of the permit as amended, remain unchanged.” Id. In 2011 and 2012, after a different Enbridge pipeline ruptured and spilled oil into the Kalamazoo River, Enbridge sought and received amendments to the 1992 permit in order to install “emergency flow release device[s]” on Line 5. R. 18-1 (2011 Amendment) (Page ID #1394); see R. 18-3 (2012 Amendment) (Page ID #1407).
In September 2012, Enbridge requested that the USFS renew the special-use permit for
Line 5. See R. 14-14 (Decision Memo at 1) (Page ID #336); R. 14-16 (9/26/12 Email at 1) (Page ID #400). The USFS reviewed Enbridge’s requ est in 2013 and conducte d field studies on the potential impact on certain wildlife and vegetation in the area. See R. 17-12 (4/2/13 Letter at 1– 2) (Page ID #1219–20); R. 14-14 (Decision Memo at App’x C) (Page ID #354); id. at App’x D (Page ID #377). In 2014, the USFS contacted th e United States Department of Transportation’s (“DOT”) Pipeline and Hazardous Materials Safe ty Administration (“PHMSA”) in order to confirm that Enbridge and Line 5 were in complia nce with state and federa l pipeline regulations.
See R. 15-32 (2/28/14 Email at 1) (Page ID #1007).
On January 29, 2014, the USFS began a public comment period for the proposed renewal of Enbridge’s spec ial-use permit. See R. 14-2 (Public Notice at 1–3) (Page ID #228–30). The USFS proposed that a categorical exclusion to the documentati on required by an EIS or EA applied. Id. at 2 (Page ID #229). Specifi cally, the USFS proposed that the renewal fell into category 15 (“CE-15”), which applies to the
[i]ssuance of a new special use authoriza tion for a new term to replace an existing or expired special use authorization wh en the only changes are administrative, there are not changes to the authorized facilities or increases in the scope or intensity of authorized activities, and the applicant or holder is in full compliance with the terms and conditions of the special use authorization.

Id. at 2 (Page ID #229) (quoting 36 C.F.R. § 220.6(e)(15)).No. 15-2457 Sierra Club v. U.S. Forest Serv. et al. Page 4

The USFS received comments from the public in response, including a letter from Marvin Roberson, a Sierra Club Forest Ecol ogist, sent on behalf of Sierra Club. See R. 14-9 (Roberson Letter at 1–3) (Page ID #318–20). Sierra Club’s letter obje cted to the application of
CE-15 for three reasons. Id. at 1 (Page ID #318). First, Sierra Club stated that no EA or EIS had ever been completed for Line 5 because the origin al permit was issued “prior to the enactment of
NEPA.” Id. at 2 (Page ID #319). Second, Sierra Club ar gued that intensity of activities along the pipeline had increased over the past two y ears because oil flow within the pipeline had “increased by over 10%,” and thus the exclusion did not apply. Id. Finally, Sierra Club contended that Enbridge’s prior permit expi red on December 31, 2012; because Enbridge was therefore not “renew[ing]” its prio r permit request, Sierra Club asse rted that the USFS must treat the application as a new permit reque st and prepare an EA or EIS. Id.
The USFS responded on March 31, 2014. See R. 15-40 (3/31/14 Letter) (Page ID #1023). The USFS explained that Enbridge’s renewal “made no request to change the pipeline operations” as authorized by the existing permit, a nd that the existing “permit is for the operation and maintenance of the pipeline,” not for any pa rticular oil flow through the pipeline, which “is regulated by the [PHMSA] of the [DOT] a nd outside the scope of this project.” Id. at 1–2 (Page ID #1023–24). The USFS also noted that the language of CE-15 explicitly referred to expired permits. Id. at 3 (Page ID #1025).

On December 10, 2014, the USFS issued a “Decision Memo,” concluding that Enbridge should be reissued a permit to continue its exis ting operations and “that th is decision qualifies for categorical exclusion from documentation in an [EIS] or [EA]” under CE-15. R. 14-14 (Decision Memo at 13) (Page ID #348). In r eaching this conclusion, the memo evaluated whether any “extraordinary circumstances” applie d such that an EA or EIS was necessary regardless of the otherwis e applicable exclusion. Id. at 5 (Page ID #340). Accordingly, the memo discussed the impact that the reissuance w ould have on certain flora and fauna in the area, and specifically, whether the reissuance would a ffect the Kirtland’s warbler, an endangered songbird. Id. at 5–6 (Page ID #340–41). The USFS conclude d that the reissuance “[w]ould have
no effect on the Kirt land’s warbler.” Id. at 6 (Page ID #341). The USFS attached the biological assessment reports prepared by a biologist and a botanist. See id. at App’x C (Page ID #354–No. 15-2457 Sierra Club v. U.S. Forest Serv. et al. Page 5

68); id. at App’x D (Page ID #377–80). The memo concluded that “no extraordinary circumstances which may result in significant i ndividual or cumulative effects on the quality of
the environment” existed. Id. at 13 (Page ID #348).
The USFS subsequently re-issued Enbridge’s special-use permit. R. 51-2 (2015 Permit) (Page ID #2385).
B. Procedural History
The Sierra Club filed suit against the USFS in the United States District Court for the Eastern District of Michigan on January 14, 2015, alleging that the USFS violated NEPA by not preparing an EA or EIS. R. 1 (Compl. at 1, 7–13) (Pag e ID #1, 7–13). Enbri dge intervened as a defendant on February 25, 2015. R. 7 (Order Gran ting Mot. to Intervene) (Page ID #116). The parties filed cross-motions for summary judgment, see R. 27 (Pl. Mot. for Summ. J.) (Page ID #1970); R. 37 (USFS Cross-Mot. for Summ. J.) (P age ID #2092); R. 40 (Enbridge Cross-Mot. for Summ. J.) (Page ID #2214), and each party also filed a response. See R. 36 (USFS Resp. to Pl. Mot. for Summ. J.) (Page ID #2051); R. 39 (Enbridge Resp. to Pl. Mot. for Summ. J.) (Page ID #2137); R. 44 (Pl. Resp. to Cross-Mot. for Summ. J.) (Page ID #2301).
The district court granted the defendants’ cross-motions for summary judgment on September 30, 2015, concluding that the USFS properl y applied CE-15 in re issuing Enbridge’s permit without conducting an EIS or EA. See R. 52 (09/30/15 D. Ct. Or der at 12–21) (Page ID #2673–82). Judgment was entered in favor of th e USFS and Enbridge, R. 53 (Judgment) (Page ID #2684), and Sierra Club timely appealed. R. 54 (Notice of Appeal) (Page ID #2685).

II. DISCUSSION

A. Standard of Review
The Administrative Procedure Act (“APA”) provi des for judicial review of final agency actions. 5 U.S.C. § 702. “When a district c ourt upholds on summary judgment an administrative agency’s final decision under the APA,” this Circ uit reviews the district court’s decision de novo but reviews the agency’s action under the AP A’s arbitrary or cap ricious standard. Ky. Waterways All. v. Johnson , 540 F.3d 466, 473 (6th Cir. 2008). “T he APA directs courts to ‘holdNo. 15-2457 Sierra Club v. U.S. Forest Serv. et al. Page 6

unlawful and set aside agency action, findings, a nd conclusions found to be arbitrary, capricious, an abuse of discretion, or otherwise not in acco rdance with law.’” Ky. Riverkeeper, Inc. v.
Rowlette , 714 F.3d 402, 407 (6th Cir. 2013) (quoting 5 U.S.C. § 706(2)(A)). A decision is arbitrary or capricious under the APA if the agency
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 c ounter to the evidence befo re the agency, or is so implausible that it could not be ascribed to a difference in view or the product of agency expertise.
Nat’l Ass’n of Home Builders v. Defs. of Wildlife , 551 U.S. 644, 658 (2007) (quoting Motor Vehicle Mfrs. Ass’n, Inc. v. State Farm Mut. Auto. Ins. Co. , 463 U.S. 29, 43 (1983)).
B. Statutory and Regulatory Framework
Congress enacted NEPA “to reduce or eliminate environmental damage.” Dep’t of Transp. v. Pub. Citizen , 541 U.S. 752, 756 (2004). “NEPA its elf does not mandate particular results in order to accomplish these ends,” but rather “imposes only procedural requirements on federal agencies with a particular focus on re quiring agencies to undertake analyses of the environmental impact of their proposals and actions.” Id. at 756–57 (internal quotation marks omitted). NEPA’s “‘action-forcing’ procedures . . . require that agencies take a ‘hard look’ at environmental consequences.” Robertson v. Methow Valley Citizens Council , 490 U.S. 332, 350 (1989) (internal quotations omitted).
In forcing agencies to “take a ‘hard look’ at environmental consequences,” id. (internal quotations omitted), NEPA requires federal agen cies to prepare an EIS when the agency proposes “‘major Federal actions significantly affec ting the quality of the human environment.’” Pub. Citizen , 541 U.S. at 757 (quoting 42 U.S.C. § 4332( 2)(C)). An EIS must detail, among other things, “the environmental impact of th e proposed action,” “any adverse environmental
effects which cannot be avoided” in implementing the proposal, a nd any available alternatives. 42 U.S.C. § 4332(2)(C). Under regulations promulgated by the Council of Environmental Quality (“CEQ”) an agency may “prepare a more limited document, an Environmental Assessment (EA),” in some circumstances. Pub. Citizen , 541 U.S. at 757. An EA “is a highly significant ‘first step’ that determines whether the ne xt step will or will not be the preparation ofNo. 15-2457 Sierra Club v. U.S. Forest Serv. et al. Page 7

a fully polished, high-budget envi ronmental impact statement.” Friends of Fiery Gizzard v.
Farmers Home Admin ., 61 F.3d 501, 504 (6th Cir. 1995). If the EA demonstrates “that the project will have no significant adverse environmental consequences,” then the agency is not required to prepare an EIS but “must publish a finding of no significant impact.” Id. at 504–05 (internal quotation marks omitted); see also 40 C.F.R. §§ 1501.4(e), 1508.13.
“In some cases, however, neither an EA nor an EIS is required.” West v. Sec’y of Dep’t of Transp. , 206 F.3d 920, 927 (9th Cir. 2000). CEQ regul ations allow an agency to adopt a “categorical exclusion” for a “category of acti ons which do not individually or cumulatively have a significant effect on the human environmen t and which have been found to have no such effect in procedures adopted by a Federal agen cy in implementation of these regulations.’” Id. (quoting 40 C.F.R. § 1508.4). The procedures adopted by an agency to establish a categorical exclusion, however, must “provide for extrao rdinary circumstances in which a normally excluded action may have a significant environmen tal effect” and thus require further action. 40 C.F.R. § 1508.4; see also Ctr. for Biologi cal Diversity v. Salazar , 706 F.3d 1085, 1096 (9th Cir. 2013); California v. Norton , 311 F.3d 1162, 1168 (9th Cir. 2002).
“Pursuant to CEQ regulations, each agency deve lops criteria to determine the appropriate
level of environmental review fo r different types of actions,” West , 206 F.3d at 927 (citing 40 C.F.R. § 1507.3(b)(2)), and the USFS has accordingly established several CEs. See 36 C.F.R. § 220.6(a), (d)–(e). The USFS has promulgated ni neteen categories of ag ency action, such as CE-15, for which the agency must prepare “a projec t or case file and decision memo,” but not an EA or EIS. 36 C.F.R. § 220.6(e) . A decision memo must in clude the agency’s reason for invoking the CE as well as “[a] finding that no extraordinary circumstances exist.” 36 C.F.R. § 220.6(f)(2)(iii). “To determine whether extraordinary circumst ances exist,” USFS regulations direct the agency to “consider if the proposed ac tion may have a potentially significant impact on
certain ‘resource conditions.’” Utah Envtl. Cong. v. Bosworth , 443 F.3d 732, 741 (10th Cir. 2006); see 36 C.F.R. § 220.6(b). These “resource co nditions” include the presence of “[f]ederally listed threatened or endangered spec ies or designated critical habitat.” 36 C.F.R. § 220.6(b)(1)(i). USFS regulations specify, however, that “[t]he me re presence of one or more of these resource conditions does not preclude use of a categorical excl usion,” but rather theNo. 15-2457 Sierra Club v. U.S. Forest Serv. et al. Page 8

agency must consider whether “a cause-effect re lationship between a proposed action” and these resource conditions exists and, if so, “the degree of the potential effect.” 36 C.F.R. § 220.6(b)(2).
Agencies engage in a “scoping” process to identify significan t issues. 40 C.F.R. § 1501.7. USFS regulations on CEs require that th e agency prepare an EA if an “official determines, based on scoping, that it is uncerta in whether the proposed action may have a significant effect on the environment,” and the ag ency must prepare an EIS if “the proposed action may have a signifi cant environmental effect.” 36 C.F.R. § 220.6(c).
C. The USFS Did Not Arbitrarily Apply CE-15 in Reissuing Enbridge’s Permit
Sierra Club argues that the USFS acted arbi trarily in applying CE-15 and not conducting an EA or EIS. Sierra Club’s objections can be grouped into two sets of arguments: first, those
that contend that the reissuance of Enbridge’s permit falls outside of the plain language of CE15, and second, those that assert that “extraordinary circumstances ” apply such that an EA and EIS were required even if th e action might normally be ex cluded from documentation.
1. The Renewal of Enbridge’s Permit Falls Within the Text of CE-15
Sierra Club contends that the plain language of CE-15 does not apply to the reissuance of Enbridge’s permit because (1) Enbridge has increas ed the oil flow on Line 5 and (2) Enbridge’s 1992 permit expired prior to the issuance of the 2015 permit. Neither of these arguments are persuasive.
Sierra Club first asserts that Enbridge has dr amatically increased “the scope and intensity of use of the pipeline with in the past two years.” See Appellant Br. at 14. CE-15 applies to the reissuance of a permit “when the only changes are administrative” and “there are not changes to the authorized facilities or increases in the scope or intensity of authorized activities.” 36 C.F.R. § 220.6(e)(15). Accordingly, Sierra Club argues, the USFS cannot invoke CE-15 here. Contrary to Sierra Club’s assertions, however , there have been no “increases in the scope or intensity” of activities authorized by Enbridge’s 1992 permit. Id. The 2015 permit grants Enbridge an 8.10 mile right-of-way through the Huron-Manistee Nationa l Forest to “operat[e] and maintain[] a . . .No. 15-2457 Sierra Club v. U.S. Forest Serv. et al. Page 9

steel pipeline . . . and associ ated facilities.” R. 51-2 (2015 Permit) (Page ID #2385). 1 This is the same use authorized by the original permit, whic h granted Lakehead Pipeline an 8.10 mile rightof-way “for the purpose of[] [c]onstructing, oper ating and maintaining a pipeline to transport
crude oil across Government owne d land within the Lower Michigan National Forest.” R. 20-8 (1953 Permit at 1) (Page ID #1639). Although Sierra Club contends that E nbridge has increased the volume of oil flow within the pipes, “[t]he Forest Service does not and never has regulated the flow of oil inside the pipeline.” USFS Appellee Br. at 22. The PHMSA has authority to regulate oil pipeline flow and pressure. See, e.g. , 49 C.F.R. § 195.106. Accordingly, Enbridge has not varied the “scope or intensity of authorized activities,” 36 C.F.R. § 220.6(e)(15), between the earlier permit and the 2015 permit because the permit only authorizes use of a right-of-way and the scope of the right-of-way has not changed.

Next, Sierra Club contends th at the 2015 permit is not an ad ministrative continuation of the 1992 permit because “[t]he previous permit expired December 31, 2012” and the new permit “was issued to a new company, not to the original permittee.” Appellant Br. at 17. This is not persuasive. First, the plain language of CE-15 refers to the “[i]ssuance of a new special use authorization . . . to replace an existing or expired special use authoriz ation.” 36 C.F.R. § 220.6(e)(15) (emphasis added); see USFS Appellee Br. at 33. Accord ingly, it is irrelevant that the 1992 permit may have “expired” two years earlier, because CE- 15 applies to expired permits. Second, as the USFS points out, “[t]he APA provi des that ‘[w]hen the licensee has made timely and sufficient application for a renewal or a ne w license in accordance with agency rules, a
license with reference to an ac tivity of a continuing na ture does not expire until the application has been finally determined by the agency.’ ” USFS Appellee Br. at 34 (quoting 5 U.S.C. § 558(b)). The record shows that Enbridge applied for a renewal prior to the expiration of the 1992 permit and Enbridge continued to pay fees for the right-of-way during the time that the USFS was considering their application. See, e.g. , R. 14-16 (9/26/12 Emai l) (Page ID #400); R.

1 Sierra Club asserts that the new permit provides a la rger, 61.09 acre or 8.4 mile, right-of-way. Appellant Br. at 15. In support of this statement, Sierra Club cites a final draft of the special-use permit in the record that provides the “permit covers 61.09 acres . . . or 8.4 miles,” R. 14-18 (Final Permit Draft at 1) (Page ID #409), but the other documents attached to this draft state that the permit covers only 58.98 acres or 8.1 miles. Id. at 12 (Page ID #420). The USFS later issued the permit to Enbridge, see R. 51 (Notice at 1–2) (Page ID #2381–82), and this final permit document states that the right-of -way is 58.98 acres or 8.1 miles. See R. 51-2 (2015 Permit at 1) (Page ID #2385). According to the USFS, the discrepancy wa s a typographical error. USFS Appellee Br. at 25.No. 15-2457 Sierra Club v. U.S. Forest Serv. et al. Page 10

19-55 (02/01/2013 Bill) (Page ID #1576). Enbri dge’s 1992 permit was thus not “expired” under the APA. Lastly, Sierra Club is also incorrect in asserting that the new permit “was issued to a new company.” Appellant Br. at 17. The 1992 permit was issued to Lakehead, but the USFS amended the 1992 permit in 2002 when Lakehead changed its name to Enbridge. See R. 17-26 (2002 Amendment) (Page ID #1337). The 2002 amen dment states that “o nly the name of the company has changed not the ownership” and “[a]ll other conditions of the permit as amended, remain unchanged.” Id. ; see also USFS Appellee Br. at 36. A ccordingly, Sierra Club’s arguments that the 2015 permit “is a brand-new permit to a new permittee” are without merit. Appellant Br. at 17.
2. The USFS Did Not Act Arbitrarily in Determining That No “Extraordinary Circumstances” Existed Sierra Club also advances several argum ents that relate to whether the USFS appropriately determined that no “extraordinarycircumstances” exist precluding the use of CE15. These arguments are similarly unavailing.
Sierra Club first argues that the USFS cannot utilize CE-15 because “[t]he project may impact an endangered species, Kirtland’s warbler. ” Appellant Br. at 16. As discussed above, even if a proposed agency action would normally fall within a CE, the USFS is required to consider whether “extraordinary circumstances re lated to the proposed action” preclude the use
of the CE. See 36 C.F.R. § 220.6(a). To make this dete rmination, USFS regulations require the agency to consider certain “[r]esource conditions ,” including whether there are “[f]ederally listed threatened or endangered spec ies” in the area. 36 C.F.R. § 220.6(b)(1)(i). Although it is undisputed that Kirtland’s warble r, an endangered songbird, is “know n to occur” in the area of national forest where Line 5 is located, s ee R. 14-14 (Decision Memo at App’x C, p.5) (Page ID #358), this does not preclude the USFS from a pplying CE-15. Under USFS regulations, the “mere presence” of an endangered species does not preclude the use of a CE. 36 C.F.R. § 220.6(b)(2). Rather, the USFS must consider wh ether there is “a cause-effect relationship between a proposed action” and the species, and if so, “the degree of the potential effect” of the agency action on the species. Id. Here, the USFS’s decision memo on the 2015 permit includes a biologist’s report that unambi guously concludes that “the Enbr idge Special Use AuthorizationNo. 15-2457 Sierra Club v. U.S. Forest Serv. et al. Page 11

would have no effect on Kirtland’s warbler.” R. 14-14 (Decision Memo at App’x D, p.9) (Page ID #362). The reasons behind th is conclusion are documented in the biologist’s report and summarized in the agency’s decision memo. Sie rra Club has not raised any arguments that undermine the biologist’s report, and it has not dem onstrated that the agency acted arbitrarily in relying on the biologist’s conclusion in dete rmining that no “extraordinary circumstances” existed such that CE-15 could not apply. Accord ingly, Sierra Club is not entitled to relief on the basis of this argument.

Sierra Club advances two fi nal arguments. In its openi ng brief, Sierra Club cites 40 C.F.R. § 1508.25(a) for the proposition that the USFS was required to assess the “cumulative impacts” of its actions prior to applying the CE. Appellant Br. at 18. Section 1508.25, however, relates to the types of actions that an agency must consider “[t]o determine the scope of environmental impact statements.” 40 C.F.R. § 1508.25(a). As discusse d above, a categorical exclusion is defined as “a category of actions which do not individually or cumulatively have a significant effect on the human environment,” and thus no EIS is required. 40 C.F.R. § 1508.4 (emphasis added). Because a categorical exclusion defines a type of agency action that has no cumulative significant effect on the environmen t, courts have “conclude[d] that section 1508.25’s requirements do not apply to [an agency ’s] categorical exclusion analysis.” See, e.g. , Ctr. for Biological Diversity , 706 F.3d at 1097; Utah Envtl. Cong. , 443 F.3d at 741. Rather, in order to comply with NEPA, the agency must determine whether a CE applies and whether an “extraordinary circumstance” exists that precludes the use of a CE; the agency is not required to independently evaluate cumulative impacts b ecause this process already takes cumulative impacts into account. See Ctr. for Biological Diversity , 706 F.3d at 1097; Utah Envtl. Cong. , 443 F.3d at 741–42.
Relatedly, Sierra Club argues that the agency must independently consider the factors set forth in 40 C.F.R. § 1508.27(b) in determ ining whether an EIS is required. See Appellant Br. at 22–25. Section 1508.27 defines “significantly” for th e purposes of NEPA. The regulation states that “[s]ignificantly as used in NEPA requires considerations of both co ntext and intensity” and the regulation directs agencies to consider several factors in ev aluating the “intensity” of an action, including “[t]he degree to which the proposed action affect s public health or safety” andNo. 15-2457 Sierra Club v. U.S. Forest Serv. et al. Page 12

“[t]he degree to which the effects on the quality of the human environment are likely to be highly controversial.” 40 C.F.R. § 1508.27( a)–(b). Sierra Club asserts th at the USFS failed to discuss these factors in applying CE-15, but, as with the “cumulative impact” analysis discussed above, the USFS was not required independently to evaluate these factors. As stated above, a CE is defined as a category of agency ac tion that has no “significant effect on the human environment.” 40 C.F.R. § 1508.4. And, in order fo r the agency to establis h CEs, agencies must “provide for extraordinary circumstances in which a normally excluded action may have a significant environmental effect.” Id . The USFS has promulgated CE regulations that require the USFS to consider certain “[ r]esource conditions” in determin ing whether an extraordinary circumstance exists. 36 C.F.R. § 220.6(b). Ac cordingly, USFS regulati ons—which set forth the agency’s CEs and how the agency must determine whether an extraordinary circumstance exists—necessarily take into a ccount the NEPA-wide definition of “[s]ignificantly” provided in § 1508.27. Because Sierra Club does not challenge the substance of U SFS’s regulations here, the question is whether the record demonstrat es that the USFS appropr iately evaluated the present facts against its regulations and whethe r the USFS reached a non-arbitrary conclusion. See, e.g. , Ctr. for Biological Diversity , 706 F.3d at 1097–98; U.S. v. Coal. for Buzzards Bay , 644 F.3d 26, 34–35 (1st Cir. 2011); Utah Envtl. Cong. , 443 F.3d at 741–42.
The USFS did so here. The USFS publicly promulgated its intent to apply CE-15, accepted public comments, and responded to the comments that it received. See R. 14-2 (Public Notice at 1–3) (Page ID #228–30); R. 15-40 (3/31/14 Letter) (Page ID #1023). The USFS determined that Enbridge was in compliance with pipeline regulations, see R. 15-32 (2/28/14 Email at 1) (Page ID #1007), and evaluated whet her any “resource conditions” existed such that an extraordinary circumstance may apply. See, e.g. , R. 14-14 (Decision Memo at 5–6) (Page ID #340–341). It set forth this discussion in its De cision Memo and attached evaluations from both a biologist and a botanist that c oncluded that reissuing the permit would not have an impact on sensitive flora or fauna populations in th e area, including Kirtland’s warbler. Id. at 13; App’x C; App’x D (Page ID #348, 354–80). This is not a cas e in which the agency “failed entirely to consider the potential environmental consequen ces of its decision at the time the decision was made” and instead used a CE as a “post-hoc rationalization” for the agency’s actions. See, e.g. , Norton , 311 F.3d at 1175–76; Jones v. Gordon , 792 F.2d 821, 828–29 (9th Ci r. 1986). Rather,No. 15-2457 Sierra Club v. U.S. Forest Serv. et al. Page 13

the record demonstrates that the USFS followe d the appropriate decision-making process and reached a non-arbitrary conclusion.

III. CONCLUSION

For the reasons set forth above, we AFFIRM the judgment of the district court.