Source: https://supreme.justia.com/cases/federal/us/422/289/
Timestamp: 2019-04-25 13:58:29+00:00

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an "existing agency review process") before issuing its October, 1972, order, and should have started over again after it decided to issue a final impact statement, that court set aside the ICC order terminating the general revenue proceeding without declaring the rate increases unlawful, and ordered the ICC to reopen the proceeding, prepare a new impact statement under the NEPA, hold hearings, and reconsider, in light of the new statement, its determination to declare the rate increases on recyclables lawful. The railroads appealed, claiming that the District Court had no jurisdiction over the case, and that the ICC had, in any event, fully complied with the NEPA, and the ICC and the United States appealed, claiming only that the ICC had so complied with the NEPA.
1. This Court has jurisdiction over the appeals under 28 U.S.C. § 1253, which gives this Court jurisdiction to determine appeals from "an order granting or denying . . . an . . . injunction in any civil action . . . required . . . to be heard and determined" by a three-judge district court, since the District Court's order, which not only declared that the ICC had failed to comply with the NEPA but also directed the ICC to perform certain acts, was an "injunction" within the meaning of § 1253, and since, moreover, such order restrained "the enforcement, operation or execution" of the ICC order within the meaning of 28 U.S.C. § 2325, and hence could have been issued only by a three-judge court. Pp. 422 U. S. 306-309.
2. The District Court had jurisdiction to review the ICC's decision not to declare the increased rates unlawful, notwithstanding such decision was made in a general revenue proceeding. Pp. 422 U. S. 310-319.
(a) There is no merit to the railroads' argument that the ICC's decision is just as much an interim decision as a decision not to suspend a particular rate pending investigation, and hence is unreviewable under SCRAP I, supra. Since the District Court did not enjoin collection of the rates so as to come within the rule barring courts from entering disruptive injunctions against collection of rates not finally declared unlawful by the ICC, the rule of SCRAP I is not applicable even if what the railroads say is true. P. 422 U. S. 317.
and exhaustion of remedies, and (2) that the District Court's conclusion that the rule against review of general revenue proceedings does not apply to NEPA cases is contrary to the decision in SCRAP I that the NEPA does not change preexisting jurisdictional rules. Here, the issue as to whether the ICC had adequately considered under the NEPA environmental factors in the general revenue proceeding had already been finally decided by the ICC, and the relief sought from and granted by the District Court could not have been obtained from the ICC in a subsequent proceeding under § 13 of the Interstate Commerce Act. While the interim nature of a general revenue proceeding may be relevant to the extent of the consideration of environmental factors required, its nature does not prevent review of the question, finally decided by the ICC, whether the environmental impact statement prepared for that proceeding is adequate. When agency consideration of environmental factors in connection with major "federal action" is complete, notions of finality and exhaustion do not bar judicial review of the adequacy of such consideration, even though other aspects of the rate increase are not ripe for review. Pp. 422 U. S. 317-319.
3. The District Court erred in deciding that the oral hearing that the ICC held prior to its October, 1972, order was an "existing agency review process" during which a final environmental impact statement should have been available. The NEPA provides that a formal impact statement "shall accompany the proposal through the existing agency review processes," and hence does not affect the time when the "statement" must be prepared, but simply provides what must be done with the "statement" once it is prepared. Under this provision, the time at which the agency must prepare the final "statement" is the time at which it makes a recommendation or report on a proposal for federal action. Here, until the October, 1972, report, the ICC had made no proposal, and hence the earliest time at which the statute required a statement was the time of the October, 1972, report -- some time after the oral hearing. Pp. 422 U. S. 319-321.
impact statement had to be considered at a hearing, it is incorrect, since it appears that the consultation with environmentally expert agencies required by the NEPA occurred from the outset, that environmental issues pervaded the hearings held, and that all draft impact statements were circulated before the hearings, thus indicating that, procedurally, the NEPA was thoroughly complied with to the time of the October, 1972, report. And to the extent that such decision is based on the court's belief that the ICC did not in good faith reconsider its October, 1972, order in light of the impact statement, it is without support in the record, since the ICC (as it, in fact, proceeded to do) was in as good a position to correct a statutory error by integrating environmental factors into its reopened investigation and into its May, 1973, decision, as it would have been if the October, 1972, report had never been written. Pp. 422 U. S. 321-322.
5. The District Court further erred in concluding that the final environmental impact statement was deficient. Pp. 422 U. S. 322-328.
(a) As in most general revenue proceedings, the "action" taken by the ICC was in response to the railroads' claim of a financial crisis, and the inquiry was primarily into whether such a crisis -- usually entitling the railroads to a general increase -- existed, leaving primarily to more appropriate future proceedings the task of answering challenges to rates on individual commodities or categories thereof, the latter question -- usually involved in a general revenue proceeding only to a limited extent -- raising the most serious environmental issues, and the former question raising few such issues, none of which is claimed here to have been inadequately addressed in the impact statement. Pp. 422 U. S. 322-324.
proceeding and to postpone comprehensive consideration of discrimination claims, but it also loses force in view of the fact that the ICC had already begun an investigation of the underlying rate structure before commencing its investigation in the general revenue proceeding, and had started to consider environmental issues in the former investigation before the District Court's decision. Thus, even if the NEPA were read to require the ICC to address comprehensively the underlying rate structure at least once before approving a facially neutral general rate increase, no purpose could have been served by ordering it to explore the discrimination question in the general revenue proceeding when it was already doing so in a more appropriate proceeding. Pp. 422 U. S. 324-325.
(c) The District Court's decision to deem the "federal action" involved in the general revenue proceeding to include an implicit approval of the underlying rate structure was inaccurate, and led it to an entirely unwarranted intrusion into an apparently sensible decision by the ICC to take much more limited "action" in that proceeding and to undertake the larger action in a separate proceeding better suited to the task. P. 422 U. S. 326.
(d) In view of the scope of the "federal action" being taken by the ICC in the general revenue proceeding, the District Court was incorrect in holding that the final impact statement inadequately explored the underlying rate structure and the extent to which the use of recyclables will be affected by the rate structure. Pp. 422 U. S. 326-328.
WHITE, J., delivered the opinion of the Court, in which BURGER, C.J., and BRENNAN, STEWART, MARSHALL, BLACKMUN, and REHNQUIST, JJ., joined, and in Parts I, II, and III of which DOUGLAS, J., joined. DOUGLAS, J., filed an opinion dissenting in part, post, p. 422 U. S. 328. POWELL, J., took no part in the consideration or decision of the cases.
MR JUSTICE WHITE delivered the opinion of the Court.
through the existing agency review processes." Because we believe that the District Court erred in several respects, we reverse.
(CEQ), the Environmental Protection Agency (EPA), and the Department of Transportation. The statement discussed environmental consequences of rate increases with respect to recyclables in general terms, and concluded that the ICC had no basis yet to believe that the environment would be substantially affected thereby.
Thereafter, while the selective rates were suspended but the surcharge was being collected, a group of law students -- (SCRAP) -- and other environmental groups filed the instant lawsuit alleging that the ICC had made a decision not to suspend the 2.5% surcharge pending its investigation -- which decision would have a substantial effect on the environment -- without preparing an environmental impact statement or considering environmental issues, as required by the NEPA. Appellees claimed that the preexisting rate structure discriminated against recyclables and in favor of virgin materials, and that the across-the-board rate surcharge exacerbated this situation with the unfortunate consequence to the environment that use of recyclable materials would be inhibited, and use of virgin materials encouraged. The complaint sought to compel the ICC to suspend the rate surcharge and to enjoin the railroads from collecting it.
A three-judge court was therefore convened under 28 U.S.C. § 2325, which has since been repealed. Relief was granted. On direct appeal under 28 U.S.C. § 1253, this Court reversed, holding that, under the doctrine of Arrow Transportation Co. v. Southern R. Co., 372 U. S. 658 (1963), 49 U.S.C. § 15(7) lodges in the ICC exclusive power to suspend rate increases pending final determination of their lawfulness. United States v. SCRAP, 412 U. S. 669 (1973) (SCRAP I).
to declare unlawful the selective rate increases, and terminating the suspension order previously entered. The surcharge was canceled, those increases having been subsumed in the selective increases. The report, which was prepared after extensive written responses to the draft environmental impact statement had been submitted by various Government and nongovernment agencies and after oral hearings had been held, covers 92 printed pages, 17 of which deal with the question whether the railroads were in need of additional revenue; 15 of which deal with general environmental consequences which might flow from the increases; and 36 of which deal with the environmental consequences to flow from specific increases in rates on specific recyclable materials.
and concluded that there was no reason for finally determining in the context of a general revenue proceeding whether the rate structure, with or without the scheduled increases, was unjust and unreasonable or illegally discriminatory. The report also stated that, having given extensive consideration to environmental factors, SCRAP I, 412 U.S. at 412 U. S. 683 n. 11, the ICC would not file a separate, formal environmental impact statement under § 102(2)(C) of the NEPA.
The report indicated that the increases on nonrecyclables would become effective on 15 days' notice from the railroads, and that the increases on recyclables would become effective on 35 days' notice. The increased period for recyclables was set so that interested parties would have the opportunity to comment on the report. The ICC issued an order to that effect on October 4, 1972.
In response to comments which were filed by several parties, the ICC reopened Ex parte 281 on November 7, 1972, to reconsider the environmental effects of the new rates on recyclables in light of a fuller written consideration of these issues. The new rates on recyclables were suspended with the consent of the railroads for an additional seven months until June 10, 1973.
the District Court vacated the order of the ICC terminating Ex parte 281 without declaring the increases unlawful and ordered it to prepare a new impact statement, hold hearings on the statement, and reconsider its decision not to find the rates unlawful. It declined to enjoin collection of the rates in the interim.
The court first rejected the applicability of the line of lower court cases, beginning with Algoma Coal & Coke Co. v. United States, 11 F.Supp. 487 (ED Va.1935), holding decisions of the ICC not to declare proposed increased rates unlawful in general revenue proceedings to be unreviewable. The court noted that this Court had divided evenly in 400 U. S. 73 (1970) in affirming Atlantic City Electric Co. v. United States, 306 F.Supp. 338 (SDNY 1969), and Alabama Power Co. v. United States, 316 F.Supp. 337 (DC 1970), and that the rule against reviewability of general revenue proceedings was therefore of questionable vitality -- especially where the issue presented for review is not the reasonableness of a particular rate, but the general question whether the railroads' revenue needs justify environmental costs. However, the court rested its holding on the ground that this is a NEPA case. It said that, unlike shippers, who may properly be made to exhaust their remedies under 49 U.S.C. §§ 13 and 15 by seeking refunds, environmental groups may not have such remedies. Moreover, environmental issues are better considered at a single general revenue proceeding than at countless individual § 13 proceedings, and their resolution must be reviewed promptly in order to avoid irreparable damage to the environment. Environmental degradation occurring while a § 13 proceeding is pending is irreparable, unlike injury to shippers, which can be cured by reparations.
would develop new technology to utilize secondary materials if encouraged to do so by lower transportation costs.
The railroads appeal, claiming that the District Court had no jurisdiction over this case, and that the ICC had, in any event, fully complied with NEPA. The ICC and the United States appeal, claiming only that the ICC has fully complied with NEPA. We noted probable jurisdiction in both cases. 419 U.S. 822 (1974).
"[a]n interlocutory or permanent injunction restraining the enforcement, operation or execution, in whole or in part, of any order of the Interstate Commerce Commission."
"an order granting or denying . . . an . . . injunction in any civil action . . . required . . . to be heard and determined by a district court of three judges."
All parties agree that the action below was a civil action required to be heard and determined by a three-judge court, for appellees sought an injunction restraining collection of the increased rates which the ICC had refused to declare unlawful.
The railroads, but not the United States or the ICC, argue that the District Court had no jurisdiction to review the decision of the ICC, made in a general revenue proceeding, not to declare the increased rates unlawful. The argument is supported by a long line of District Court decisions; see, e.g., Algoma Coal & Coke Co. v. United States, 11 F.Supp. 487 (ED Va.1935); Koppers Co. v. United States, 132 F.Supp. 159 (WD Pa.1955); Florida Citrus Comm'n v. United States, 144 F.Supp. 517 (ND Fla.1956), aff'd per curiam, 352 U.S. 1021 (1957); Atlantic City Electric Co. v. United States, 306 F.Supp. 338 (SDNY 1969), and Alabama Power Co. v. United States, 316 F.Supp. 337 (DC 1969), both aff'd by an equally divided Court, 400 U. S. 73 (1970); Electronic Industries Assn. v. United States, 310 F.Supp. 1286 (DC 1970), aff'd, 401 U.S. 967 (1971); and its correctness in its application to this case turns in part on an understanding of just what a general revenue proceeding is.
"[I]n performing the duty broadly to increase carrier revenue, it is enough if the Commission, in the first instance, makes such inquiry and investigation as would enable it to say that the prescribed increases, when applied to members of the group, will generally not exceed a reasonable maximum."
by Commission action is to be in the exercise of its power to prescribe reasonable rates is, thus, observed but in conformity to the administrative necessities which the proviso contemplates."
"Thus, we do not attempt to determine whether the particular rates which result from the increases are maximum reasonable rates, nor does the order constitute a prescription of rates within the meaning of the decision in Arizona Grocery Co. v. Atchison, T. & S. F. Ry. Co., 284 U. S. 370. If individual rates or groups of rates are believed to be unjust and unreasonable, a shipper or other interested persons has [sic] an administrative remedy available in sections 13 and 15 of the Interstate Commerce Act, 49 U.S.C. §§ 13 and 15."
Ex parte No. 281, Increased Freight Rates and Charges, 1972 (Environmental Matters), 346 I.C.C. 88, 103 (1973).
all or some of the rates as just and reasonable. But under the Louisiana case, the general rule has been that the ICC may confine its attention in general revenue proceedings almost entirely to the need for revenue and to any other factors that relate to the legality of the general increase as a whole; and it follows a fortiori that, if attention is given to other issues, that attention may be of a limited nature.
The instant proceeding, in which substantially all of this country's railroads sought increases in substantially all of their rates based upon alleged cost increases which placed them in a financial crisis, plainly qualifies as a general revenue proceeding. Environmental issues aside, the ICC, true to form, devoted most of its investigation to the issue of the railroads' revenue needs, but did inquire to some extent into the reasonableness of the increases as applied to certain broad categories of charges.
refund and a declaration of unjustness or unreasonableness from the ICC -- in which it could cause the ICC to decide whether the new coal rates were just and reasonable. As the ICC had not yet addressed the question presented by the plaintiffs to the court, the court declined to decide it. [Footnote 16] The court also held that the decision of the ICC was, in essence, one not to suspend the rate increases, and that the courts had no power to suspend if the ICC did not do so. Board of Railroad Comm'rs v. Great Northern R. Co., 281 U. S. 412 (1930). See also SCRAP I, supra.
in general were justified, the courts, going beyond the Algoma decision, have declined review on the ground that the shipper had not exhausted his administrative remedies under §§ 13 and 15. Atlantic City Electric Co. v. United States, 306 F.Supp. 338 (SDNY 1969), and Alabama Power Co. v. United States, 316 F.Supp. 337 (DC 1969), both aff'd by an equally divided Court, 400 U. S. 73 (1970).
the railroads attack the conclusion of the District Court that the rule against review of general revenue proceedings does not apply in "NEPA cases" as being squarely contrary to this Court's decision in SCRAP I that NEPA does not effect a change in preexisting jurisdictional rules. We disagree with each of these arguments.
The railroads' first argument fails because the court below did not enjoin collection of the rates. The rule of Arrow Transportation Co. v. Southern R. Co., 372 U. S. 658 (1963), and SCRAP I is one barring courts from entering disruptive injunctions against collection of rates not finally declared lawful or unlawful by the ICC. No such injunction is involved here. Thus even if a decision not to declare rates unlawful in a general revenue proceeding is no more final for purposes of the rule of SCRAP I than a decision not to suspend an individual rate pending investigation, the rule of SCRAP I is not applicable here.
already been finally decided by the ICC, and the relief sought from and granted by the court below could not have been obtained from the ICC in a subsequent § 13 proceeding. The issue decided by the District Court was whether, under NEPA, the ICC had given adequate consideration to environmental factors in the general revenue proceeding. When the ICC terminated the general revenue proceeding, the one thing which it must certainly have finally decided was that it need give no further consideration to environmental factors in that proceeding; and no relief of the type sought from the District Court -- i.e., further consideration of environmental matters by the agency in that proceeding -- could thereafter be obtained from the agency. Whatever issues would remain open at a § 13 proceeding, one which would not remain open -- no matter who filed the complaint -- is whether or not sufficient consideration had been given to environmental factors at the general revenue proceeding. O f course, the ICC would give attention in the § 13 proceeding to whatever environmental factors it felt NEPA required at that proceeding.
impact statement so long as the proceeding has a substantial effect on the environment. This conclusion is clearly correct. Thus, whatever consideration of environmental matters is necessary or proper at the general revenue proceeding is over and done with when that proceeding terminates. The interim nature of a general revenue proceeding may be relevant to the question of the extent of the consideration of environmental factors required, but its nature does not prevent review of the question, finally decided by the ICC, whether the environmental impact statement prepared for that proceeding is adequate.
Our holding here is in no way inconsistent with our conclusion in SCRAP I that NEPA does not repeal by implication any other statute. We do not hold that NEPA supplies the courts with otherwise nonexistent power to prevent collection of rates; and we do not hold that NEPA permits review of the question of the justness or reasonableness of rate increases, either general or specific, at any earlier time than would otherwise have been permissible. NEPA does create a discrete procedural obligation on Government agencies to give written consideration of environmental issues in connection with certain major federal actions, and a right of action in adversely affected parties to enforce that obligation. When agency or departmental consideration of environmental factors in connection with that "federal action" is complete, notions of finality and exhaustion do not stand in the way of judicial review of the adequacy of such consideration, even though other aspects of the rate increase are not ripe for review.
hold prior to its October 4, 1972, order was an "existing agency review process" during which a final draft environmental impact statement (i.e., the one circulated in March, 1973) should have been available, and that it also erred in deciding that the ICC should have "started over again" after it decided to prepare a formal impact statement.
"To the fullest extent possible, all . . . hearings [on proposed agency action] shall include consideration of the environmental aspects of the proposed action. . . . Agencies should make any draft environmental [impact] statements to be issued available to the public at least fifteen (15) days prior to the time of such hearings."
40 CFR § 1500.7(d). (Emphasis added.) Such consultation occurred here from the outset; environmental issues pervaded the hearings held -- both oral and written; and all draft impact statements in existence were circulated before the hearings. Procedurally, NEPA was thus thoroughly complied with through October 4, 1972.
hearing, it is incorrect for the reasons stated above. To the extent that it is based on the District Court's belief that the ICC did not in good faith reconsider its October 4, 1972, order in light of the impact statement, the District Court's decision is without support in the record. The ICC was in as good a position to correct a statutory error by integrating environmental factors into its reopened Ex parte 281 and into its decision in May, 1973, as it would have been if the October 4, 1972, report had never been written; this it proceeded to do, and we perceive no basis for affirming the District Court's decision in this respect.
Emphasizing again the nonfinal and limited nature of the decision made by the ICC at a general revenue proceeding, the railroads and the ICC argue that the District Court erred in concluding that the environmental impact statement itself was deficient. They claim that, throughout the general revenue proceeding, the Commission gave environmental issues the "hard look" which is required by NEPA, Natural Resources Defense Council, Inc. v. Morton, 148 U.S.App.D.C. 5, 16, 458 F.2d 827, 838 (1972), and that appellees and the court below simply disagreed with their decision not to prevent the increase on recyclables. They also emphasize the fact that they were giving continuing and more extensive attention to environmental consequences flowing from the rate structure in another proceeding, Ex parte 270, which was more appropriate to the task. We substantially agree with this position.
it is the latter question -- usually involved in a general revenue proceeding only to a limited extent -- which may raise the most serious environmental issues. The former question -- the entitlement of the railroads to some kind of a general rate increase -- raises few environmental issues, and none which is claimed in this case to have been inadequately addressed in the impact statement.
Having defined the scope of the "federal action" being taken in Ex parte 281, our decision of this case becomes easy. The lower court held that the environmental impact statement inadequately explored the underlying rate structure and the extent to which the use of recyclables will be affected by the rate structure. Whatever the result would have been if the ICC had been approving the entire rate structure in Ex parte 281, [Footnote 28] given the nature of the action taken by the ICC, the lower court was plainly incorrect.
simply points up the limited nature of the decision made in Ex parte 281, and the absence of a need to reopen it.
* Together with No. 73-1971, United States et al. v. Students Challenging Regulatory Agency Procedures (SCRAP) et al., also on appeal from the same court.
The term recyclables will refer throughout this opinion to materials obtained from products which have already been put to one commercial use -- for example, iron or steel obtained from a junked automobile.
"[A]ll agencies of the Federal Government shall --"
"(A) utilize a systematic, interdisciplinary approach which will insure the integrated use of the natural and social sciences and the environmental design arts in planning and in decisionmaking which may have an impact on man's environment;"
"(B) identify and develop methods and procedures, in consultation with the Council on Environmental Quality . . . which will insure that presently unquantified environmental amenities and values may be given appropriate consideration in decisionmaking along with economic and technical considerations;"
None of the appellees nor the court below fault the ICC's analysis of this problem. It has, therefore, dropped out of the case.
The increases with respect to ferrous scrap were not held down.
Following the form implied by the statute, the statement included separate sections for each of the questions set forth in 42 U.S.C. §§ 4332(2)(C)(i)-(v). The statement concluded that the ICC's action would have no long-term or irreversible effects. It also concluded that, as an alternative, Congress might choose to subsidize recyclables in ways which did not place the burden of subsidies on the railroads or shippers of virgin materials.
Commissioner Brown felt that the statement gave ample consideration to environmental matters, but that the Commission should have decided, on the basis of the statement, to declare all increases on recyclables unlawful. Commissioner Deason also dissented.
Under the Interstate Commerce Act, increased rates which are suspended will never be collected for the period of the suspension. Increased rates which are collected are subject to refund if later determined to be unlawful. 49 U.S.C. §§ 15(7), 13.
In Wichita, the ICC had approved certain increased charges proposed by the railroad. Finding the reasons given by the ICC for its approval to be inadequate to explain a departure from a longstanding rule which would have invalidated the charges, the District Court vacated the ICC's order, remanded for further proceedings, and enjoined the collection of the increased charges pending such proceedings. Seven Justices of this Court voted to reverse the granting of the injunctive relief, four on the basis of equitable considerations related to the doctrine of primary jurisdiction and three on the ground that such relief is barred by the doctrine of Arrow Transportation Co. v. Southern R. Co., 372 U. S. 658 (1963), see discussion supra at 422 U. S. 298, absent a declaration of unlawfulness by the ICC.
In light of the fact that the court remanded to the ICC for further proceedings as to the lawfulness of the increase, injunctive relief was precluded by SCRAP I, which held that the district courts are without power to suspend rates pending a determination of lawfulness by the ICC.
After February 28, 1975, review of ICC orders other than orders for the payment of money or in connection with suits to enforce ICC orders will be by courts of appeals. Pub.L. 9584, § 5, 88 Stat. 1917.
Appellees argue that the order of the court below is not an injunction, because it is not enforceable by contempt. They cite nothing to support this claim, and we reject it. The court ordered the ICC, inter alia, to prepare another impact statement. Were the ICC to refuse to do so, the court would have no way of enforcing its order other than contempt, and it could not permit its order to be ignored. Moreover, we have repeatedly exercised jurisdiction under § 1253 over appeals from orders, unlike the one entered in this case, not cast in injunctive language, but which, by their terms, simply "set aside" or declined to "set aside" orders of the ICC. Chicago, M., St. P. & P. R. Co. v. United States, 366 U. S. 745, 366 U. S. 746 (1961); Ayrshire Collieries Corp. v. United States, 331 U. S. 132, 331 U. S. 141 (1947); Electronic Industries Assn. v. United States, 310 F.Supp. 1286 (DC 1970), aff'd, 401 U.S. 967 (1971). Indeed, in Electronic Industries, we requested separate briefs on the question whether there was a jurisdictional difference in ICC cases between "injunctions" and orders "setting aside" ICC determinations, and concluded that we had jurisdiction over the appeal.
"No interlocutory injunction suspending or restraining the enforcement, operation, or execution of, or setting aside, in whole or in part, any order made or entered by the Interstate Commerce Commission shall be issued or granted by any district court of the United States, or by any judge thereof, or by any circuit judge acting as district judge, unless the application for the same shall be presented to a circuit or district judge, and shall be heard and determined by three judges, of whom at least one shall be a circuit judge, and unless a majority of said three judges shall concur in granting such application . . . and upon the final hearing of any suit brought to suspend or set aside, in whole or in part, any order of said commission the same requirement as to judges and the same procedure as to expedition and appeal shall apply."
"will not be inferred that the legislature, in revising and consolidating the laws, intended to change their policy, unless such intention be clearly expressed."
No such intent is expressed here, and, in our view, 28 U.S.C. § 2325 required three judges for entering all orders for which they were required under the Urgent Deficiencies Appropriations Act, which includes orders setting aside ICC orders. In other words, an order "setting aside" an ICC order inevitably restrains its "enforcement, operation or execution," within the meaning of § 2325, now repealed.
At oral argument, SCRAP contended that, under United States v. Griffin, 303 U. S. 226, 303 U. S. 233 (1938), the Urgent Deficiencies Appropriations Act did not permit review "to set aside every kind of order issued by the Commission," and, in particular, did not permit review of an order such as the one set aside in this case, which simply involved a refusal by the Commission to change the existing status. Id. at 303 U. S. 234. Insofar as it rested on the negative order doctrine of Procter & Gamble Co. v. United States, 225 U. S. 282 (1912), Griffin is no longer the law. United States v. Jones, 336 U. S. 641, 336 U. S. 647 (1949); Rochester Tel. Corp. v. United States, 307 U. S. 125, 307 U. S. 145 (1939). Insofar as Griffin was based on the notion that the Urgent Deficiencies Appropriations Act does not apply to challenges to ICC orders entered under the Railway Mail Pay Act, which are, in essence, suits for money, see United States v. ICC, 337 U. S. 426, 337 U. S. 442 (1949), against the United States, it has no application to this case.
Failure to suspend does not always do irreparable harm to shippers who pay the increased rates. Unless the ICC has previously exercised its ancillary power to set rates or prescribe their maxima or minima, Arizona Grocery Co. v. Atchison, T. & S. F. R. Co., 284 U. S. 370 (1932), a shipper may always obtain a refund if he establishes that rates collected after refusal to suspend were unlawful. 49 U.S.C. § 13(1).
To prescribe the new rates would be to cut off refund claims by injured shippers. Arizona Grocery Co. v. Atchison, T. & S. F. R. Co., supra.
Insofar as the court's decision rested on the fact that the ICC's decision was a negative one, it is inconsistent with Rochester Tel. Corp. v. United States, 307 U. S. 125 (1939).
The court declined to term its holding in this regard jurisdictional. It also said that it would review a claim that the ICC's order in a general revenue proceeding deprived a plaintiff of an "independent legal right." 11 F.Supp. at 496. Moreover, the court did address on the merits the issue which the ICC did decide -- namely whether the evidence supported the need for a general rate increase. The ICC claims that courts do have jurisdiction to review its decision in this respect notwithstanding the plaintiff's failure previously to seek relief under § 13. We do not decide whether the ICC is correct. See n 18, infra.
The railroads contend that environmental groups may file complaints under § 13 challenging the justness and reasonableness of rates or groups of rates. The court below tentatively ruled otherwise. In light of our disposition of the issue dealt with in this part, we need not decide which is correct.
The position of the ICC seems to be that its decision that a General rate increase is justified by reason of revenue need is a final decision ripe for immediate review, and Algoma Coal & Coke Co. v. United States, supra, would seem to support it. The railroads claim that such a decision is unreviewable absent exhaustion of § 13 remedies, and they are supported in this contention by the lower court decisions in Atlantic City Electric Co. v. United States, 306 F.Supp. 338 (SDNY 1969), and Alabama Power Co. v. United States, 316 F.Supp. 337 (DC 1969), both aff'd by an equally divided Court, 400 U. S. 73 (1970). We need not resolve this issue.
"the policies, regulations, and public laws of the United States shall be interpreted and administered in accordance with the policies set forth in this chapter,"
42 U.S.C. § 4332(1), and one of the policies of the chapter is to "approach the maximum attainable recycling of depletable resources." The District Court expressly declined to review the question whether the ICC ultimately "gave insufficient weight to this environmental value" in reaching its conclusion that the general increase was justified. Therefore, this appeal does not involve reviewability of those substantive issues, including environmental issues, decided by the ICC at the general revenue proceeding.
The ICC did require the railroads to circulate a draft impact statement shortly after its proposal was made.
To the extent to which Calvert Cliffs' Coordination Committee v. AEC, 146 U.S.App.D.C. 33, 449 F.2d 1109 (1971); Greene County Planning Bd. v. FPC, 445 F.2d 412 (CA2), cert. denied, 409 U.S. 849 (1972); and Harlem Valley Transportation Assn. v. Stafford, 500 F.2d 328 (CA2 1974), read the requirement that the statement accompany the proposal through the existing agency review processes differently, they would appear to conflict with the statute.
The decision which the ICC makes in a general revenue proceeding is, by law, far more confined than, for example, that of an agency deciding whether and where to build a new prison. E.g., Hanly v. Mitchell, 460 F.2d 640 (CA2), cert. denied sub nom. Hanly v. Kleindienst, 409 U.S. 990 (1972). The ICC is permitted to act against proposed rate increases, for more than a seven-month period, only if, upon the basis of its investigation, it can find that the rates are unlawful, i.e., unjust or unreasonable, or otherwise in violation of the Interstate Commerce Act. The ICC has concluded, and we agree, that the standards of the Act are broad enough to permit consideration of environmental factors, even at general revenue proceedings, Dayton-Goose Creek R. Co. v. United States, 263 U. S. 456, 263 U. S. 480 (1924); Ex parte 265 and Ex parte 267, Increased Freight Rates, 1970 and 1971, 339 I.C.C. 125 and 209 (1971). At the same time, standard ratemaking criteria limit the power of the ICC to force railroads to transport recyclable materials at deficit rates no matter how much the environment would be benefited thereby and no matter how much environmental injury would be caused by not doing so. Under present statutes, for example, the railroads could not be required to reduce rates on recyclables to zero.
Appellants have not argued that consideration of the lawfulness of particular rates on particular recyclables was in no way before the ICC in Ex parte 281. We assume for the purposes of this case, therefore, that the "action" taken in Ex parte 281 included a decision not to declare rates on particular recyclables unlawful on the basis of the very limited inquiry appropriate to a general revenue proceeding.
A percentage increase increases a high rate a larger absolute amount than it does a low rate.
The Commission has concluded a thorough investigation, in Ex parte 270, of the underlying rate structure as it applies to ferrous scrap and the virgin ores with which it competes. In Ex parte 295, a subsequent general revenue proceeding, the Commission concluded on further investigation that the rates on waste paper and nonferrous metal scrap are high in comparison to the virgin materials with which they compete, and it refused to permit increases as to them. It also concluded that the environmental consequences of this situation are small. In Ex parte 310, the most recent general revenue proceeding, the ICC declined to permit increases on either ferrous or nonferrous scrap, citing general economic factors which had hurt those industries in particular.
See CEQ Guidelines, 40 CFR § 1500.6(d)(1).
The CEQ, on whose opposition to the impact statement appellees heavily rely, apparently recognizing the wisdom of exploring the underlying rate structure in a proceeding commenced expressly for that purpose, acquiesced in consideration of these issues in the context of Ex parte 270, provided only that the ICC suspend the increases on recyclables in the interim. The CEQ overlooked, however, the fact that the ICC was wholly without power to do this.
Apparently recognizing that the ICC's terminating of Ex parte 281 did not terminate its consideration of environmental issues relating to its rate structure and the consequent pointlessness of forcing the ICC to duplicate its efforts in the context of Ex parte 281, all of the appellees except NARI have filed suggestions of mootness. The case is not moot. The situation is not substantially different than it was at the time of the lower court's decision, and the ICC is under an order to prepare a new impact statement in Ex parte 281 and to hold hearings in Ex parte 281 and to write a final report in Ex parte 281 after the hearings. The ICC has not yet done so, and claims that it should not be required to do so. NARI claims that it should be required to do so. We must decide who is right. However, we agree with the thrust of the suggestions of mootness that the relief granted below was not in the best interests of anyone.
A large portion of each of the briefs in these cases is devoted to the question of the proper scope of review by a court of the adequacy of the treatment of environmental issues in an impact statement. Compare, e.g., Lathan v. Brinegar, 506 F.2d 677 (CA9 1974), with City of New York v. United States, 344 F.Supp. 929 (EDNY 1972). However, we need not resolve this question since, in light of the "action" taken, under any standard of review, the ICC gave an adequately "hard look" at environmental matters.
I agree with Parts I, II, and III of the Court's opinion that the cases are properly here and that the District Court had jurisdiction over appellees' complaint. On the merits, I would, however, affirm.
This litigation presents a history of foot dragging by the ICC, as other parties to proceedings before it, including other federal agencies, have attempted to prod it into compliance with the National Environmental Policy Act (NEPA). The "final impact statement" that the Court holds adequate presents a melange of statistics that purport to show that an increase on the transportation rates of recyclable materials will not have a significant adverse impact on the environment. The Commission's "analysis" has been thoroughly discredited by the comments of other federal agencies, including not only the Environmental Protection Agency and the Council on Environmental Quality, whose principal concerns are environmental, but also the Department of Commerce and the General Services Administration. The Commission has responded to the adverse comments by papering over the defects they identify, rather than dealing with the substance of the deficiencies.
"[S]crap prices are determined by a number of factors operating simultaneously; among them are the aggregate demand for steel, the price and transportation costs of iron ore, the supply of scrap, as well as the transportation cost of scrap and other factors. It would be surprising indeed if, in light of the number of factors constantly at work in the scrap market, a close and simple relationship existed between scrap price movements and freight rate changes."
"Nor does data which shows a constantly growing consumption of scrap despite rate increases prove that freight rate decisions are inconsequential. Growth might have been materially higher or lower had . . . rate decisions been different. What is needed in each instance is a multi-variate analysis to isolate the effect of transportation costs on scrap prices and the quantity consumed. [Footnote 2/1]"
recommended. See Ex parte No. 281, Increased Freight Rates and Charges, 1972, 346 I.C.C. 88, 145-149 (1973).
Appellees also argued to the Commission that the rate increases for recyclables exacerbated an existing discrimination against these materials in the rate structure. The Commission expressed doubt that any unjustified discrimination existed, arguing that any disparity was probably attributable to differing costs. But a Department of Transportation Study cited in the presentation made by the Environmental Protection Agency had concluded that ratios of revenue to cost were higher for certain recyclable commodities than for their virgin substitutes, causing the former to bear more than their "share" of the cost of service. The Commission's own statistics supported this conclusion to some extent. Comparing the revenue-cost ratios for ferrous scrap and for iron ore, the Commission found that the scrap bore the lesser share of variable costs, but a greater share of all costs -- fixed and variable -- than did ore. Id. at 124. The Commission did not inquire further into this disparity.
prompt illumination of the environmental issues was certainly remote. The Commission took no particular steps to expedite completion of that phase of the investigation that would embrace the environmental issues controverted in Ex parte 281. Instead, the Commission was content to put aside these issues, offering a vague assurance that they would be taken up again in the course of what promised to be a protracted proceeding. Today, nearly two years later, we are not apprised of any conclusions as to environmental issues reached as a result of Ex parte 270; we do not even know whether a completion date is in sight. Meanwhile, environmental damage -- irreversible damage -- which appellees alleged with considerable supporting evidence may be continuing, with its magnitude unknown.
The Court today excuses the Commission's performance. The District Court, following the spirit of NEPA, told the Commission to do better. I would affirm its judgment.
Attachment to letter from Russell E. Train, Chairman of Council on Environmental Quality, to ICC, Oct. 30, 1972. App. 572.
"utilize a systematic, interdisciplinary approach which will insure the integrated use of the natural and social sciences and the environmental design arts in planning and in decisionmaking which may have an impact on man's environment."

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