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Udall v. FPC (full text) :: 387 U.S. 428 (1967) :: Justia U.S. Supreme Court Center Log In
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Udall v. FPC 387 U.S. 428 (1967)
U.S. Supreme CourtUdall v. FPC, 387 U.S. 428 (1967)Udall v. Federal Power CommissionNo. 463Argued April 11, 1967Decided June 5, 1967*387 U.S. 428CERTIORARI TO THE UNITED STATES COURT OF APPEALS
Pacific Northwest Power Co. (a joint venture of four private power companies) and Washington Public Power Supply System, allegedly a "municipality," applied to the Federal Power Commission (FPC) for mutually exclusive licenses to construct hydroelectric power projects at High Mountain Sheep, on the Snake River. On the Snake-Columbia waterway between High Mountain Sheep and the ocean eight hydroelectric dams have been built and another authorized, all federal projects. Section 7(b) of the Federal Water Power Act of 1920 provides that, whenever, in the FPC's judgment, the development of water resources for public purposes should be undertaken by the United States itself, the FPC shall not approve any application for any project affecting such development, but shall cause to be made such necessary examinations, reports, plans, and cost estimates and "shall submit its findings to Congress with such recommendations as it may find appropriate concerning such development." Before a hearing on the license applications, the FPC asked for the views of the Secretary of the Interior, who urged postponement of either project until means of fish protection were studied. The hearings went forward, and after the record was closed, the Secretary wrote the FPC urging it to recommend to Congress the federal construction of the project. The FPC reopened the record to permit the parties to file supplemental briefs in response to the letter. The Examiner then recommended that Pacific Northwest receive the license. The Secretary, after asking for leave to intervene and file exceptions, filed exceptions and made oral argument. The FPC in 1964 affirmed the Examiner, stating that "the record supports no reason why federal development should be superior," and "there is no evidence in the record presented by [the Secretary] to support his position." The Secretary petitioned for a rehearing and a reopening of the Page 387 U. S. 429 record to permit him to supply the evidentiary deficiencies. A rehearing, but not a reopening, was granted, and the FPC reaffirmed its decision. The Court of Appeals upheld the FPC's decision.
123 U.S.App.D.C. 209, 358 F.2d 840, vacated and remanded in No. 462, and reversed and remanded in No. 463. Page 387 U. S. 430
The Federal Power Commission has awarded Pacific Northwest Power Company (a joint venture of four private power companies) a license to construct a hydroelectric power project at High Mountain Sheep, a site on the Snake River, a mile upstream from its confluence with the Salmon. 31 F.P.C. 247, 1051. The Court of Appeals approved the action, 123 U.S.App.D.C. 209, 358 F.2d 840, and we granted the petitions for certiorari. 385 U.S. 926, 927. Page 387 U. S. 431
The question turns on whether § 7(b) requires a showing that licensing of a private, state, or municipal agency [Footnote 1] Page 387 U. S. 432 is a satisfactory alternative to federal development. We put the question that way because the present record is largely silent on the relative merits of federal and nonfederal development. What transpired is as follows:
Both Pacific Northwest and Washington Public Power Supply System, allegedly a "municipality" under § 4(e) and under § 7(a) of the Act, [Footnote 2] filed applications for licenses on mutually exclusive sites, and they were consolidated for hearing. Before the hearing, the Commission solicited the views of the Secretary of the Interior. The Secretary urged postponement of the licensing of either project while means of protecting the salmon and other fisheries were studied. That was on March 15, 1961. But the hearings went forward, and on June 28, 1962, after the record before the Examiner was closed, but, before he rendered his decision, the Secretary wrote the Commission urging it to recommend to Congress the consideration of federal construction of High Mountain Sheep. The Commission reopened the record to allow the Secretary's letter to be incorporated and invited the parties to file supplemental briefs in response to it. On October 8, 1962, the Examiner rendered his decision, recommending that Pacific Northwest receive the license. He disposed of the Page 387 U. S. 433 issue of federal development on the ground that there
31 F.P.C. at 275. Page 387 U. S. 434
We indicate no judgment on the merits. We do know that, on the Snake-Columbia waterway between High Page 387 U. S. 435 Mountain Sheep and the ocean, eight hydroelectric dams have been built, and another authorized. These are federal protects, and if another dam is to be built, the question whether it should be under federal auspices looms large. Timed releases of stored water at High Mountain Sheep may affect navigability; they may affect hydroelectric production of the downstream dams when the river level is too low for the generators to be operated at maximum capacity; they may affect irrigation, and they may protect salmon runs when the water downstream is too hot or insufficiently oxygenated. Federal versus private or municipal control may conceivably make a vast difference in the functioning of the vast river complex. [Footnote 4] Page 387 U. S. 436
Section 10(a) of the Act [Footnote 5] provides that "the project Page 387 U. S. 437 adopted" shall be such
The objective of protecting "recreational purposes" means more than that the reservoir created by the dam will be the best one possible or practical from a recreational viewpoint. There are already eight lower dams on this Columbia River system and a ninth one authorized, and if the Secretary is right in fearing that this additional dam would destroy the waterway as spawning grounds for anadromous fish (salmon and steelhead) or seriously impair that function, the project is put in an entirely different light. The importance of salmon and steelhead in our out-door life as well as in commerce [Footnote 6] is so great that there certainly comes a time when their destruction might necessitate a halt in so-called "improvement" or "development" of waterways. The destruction of anadromous Page 387 U. S. 438 fish in our western waters is so notorious [Footnote 7] that we cannot believe that Congress, through the present Act, authorized their ultimate demise.
"to conduct such studies and make such recommendations as the Secretary determines to be appropriate regarding the development and management of any Page 387 U. S. 439 stream or other body of water for the conservation and enhancement of anadromous fishery resources."
Mr. Justice Holmes once wrote that "[a] river is more than an amenity, it is a treasure." [Footnote 8] New Jersey v. New York, 283 U. S. 336, 283 U. S. 342. That dictum is relevant here for the Commission, under § 10 of the 1920 Act, as amended, must take into consideration not only hydroelectric power, navigation, and flood control, but also the "recreational purposes" served by the river. And, as we have noted, the Secretary of the Interior has a mandate under the 1965 Act to study recommendations concerning water development programs for the purpose of the conservation of anadromous fish. Thus, apart from § 7(b) of the 1920 Act, as amended, the Secretary, by reason of § 2 of the 1965 Act, comes to the Federal Power Commission with a special mandate from Congress, a mandate that gives him Page 387 U. S. 440 special standing to appear, to intervene, to introduce evidence on the proposed river development program, and to participate fully in the administrative proceedings.
"A reservoir exhibits a peculiar thermal structure. During the winter, it is homogeneous with regard to temperature, but as the season advances, a horizontal stratification results with the colder water sinking lower. Since Salmon River water is colder than Snake River water, it is possible, if not probable, that, in the Nez Perce reservoir, the water from the two rivers would be found in separate layers and be drawn off at different times. Presumably the upstream migrants reaching fish ladders might at one time be presented with water from one river and at another time water from the other river. If water quality is important in attracting the upstream migrants to their proper streams, as many experts Page 387 U. S. 441 believe, this stratification would be a source of confusion and delay. Also a source of confusion to the upstream migrants would be the predicted tendency shown by the record for water from the Salmon River arm of the Nez Perce reservoir to flow up the Snake River arm and vice versa. Again, the fish are faced with a complicated problem in finding their way."
The Commission further noted that some salmon remain in the reservoir due to "loss of water velocity or accumulation of dissolved salts," and are lost "as perpetuators of the species." But it did not have statistics showing the loss of the downstream migrants as a result of passing through the turbines. We are told from studies of the Bureau of Commercial Fisheries that the greatest downstream migration occurs at night, when turbine loads Page 387 U. S. 442 are lower. [Footnote 9] We are told from these studies that the effect of dams on the downstream migration of salmon and steelhead may be disastrous. [Footnote 10] It is reported that, unless practical alternatives are designed, such as the collection of juvenile fish above the dams and their transportation below it, we may witness an inquest on a great industry and a great "recreational" asset of the Nation.
The Commission admitted that "high dams and reservoirs present major obstacles to anadromous fish," that it was not optimistic "as to the efficacy of fish passage facilities on high Page 387 U. S. 443 dams," and concluded with the forlorn statement that,
Section 2(a), 16 U.S.C. § 662(a), provides that an agency evaluating a Page 387 U. S. 444 license under which "the waters of any stream or other body of water are proposed . . . to be impounded"
"The action of Congress in the session just concluded has made provisions for new federal power producing facilities. Bruc[e]s Eddy Dam, with a Page 387 U. S. 445 peak capacity of 345,000 KW, was authorized and received an appropriation for the start of construction in Fiscal Year 1963. Asotin Dam, with a peak capacity of 331,000 KW, was also authorized. Little Goose Dam, with a peak capacity of 466,000 KW, which had previously been authorized, received an appropriation for the start of construction in 1963. Most important of all, generation at the Hanford Thermal Project, which would add approximately 905,000 kilowatts to the Northwest's power resources, was also approved."
"The total power resource of the area is therefore predictably in excess of all foreseeable requirements thereon for the period through 1968-1969 and sufficient to meet all requirements until at least 1972-1973, and potentially for years beyond that date. The addition of High Mountain Sheep Dam will not Page 387 U. S. 446 be needed until at least 1972-1973, and construction should be planned to bring it into production at that time or later as the developing power resource picture indicates."
Brown, The Next Hundred Years (1957), p. 113. Page 387 U. S. 447
By 1980, nuclear energy "should represent a significant proportion of world power production." Id. at 109. By the end of the century, "nuclear energy may account for about one-third of our total energy consumption." Ibid. "By the middle of the next century it seems likely that most of our energy needs will be satisfied by nuclear energy." Id. at 110. Page 387 U. S. 448
"Whenever the contemplated improvement is, in the judgment of the Commission, desirable and justified Page 387 U. S. 449 in the public interest for the purpose of improving or developing a waterway or waterways for the use or benefit of interstate or foreign commerce, a finding to that effect shall be made by the Commission and shall become a part of the records of the Commission."
which could use the power in the near future. 31 F.P.C. at 272. It added. "In summary as to the need for power, we conclude that the PNPC sponsoring companies will be able to use HMS power as soon as it is available." 31 F.P.C. at 273. On rehearing the Commission stated that "HMS power will be needed on a regional basis by 1970-1971. . . ." 31 F.P.C. 1051, 1052. Page 387 U. S. 450
We express no opinion on the merits. It is not our task to determine whether any dam at all should be built or whether if one is authorized it should be private or public. If the ultimate ruling under § 7(b) is that the decision concerning the High Mountain Sheep site should be made by the Congress, the factors we have mentioned will be among the many considerations it doubtless will appraise. If the ultimate decision under § 7(b) is the Page 387 U. S. 451 other way, the Commission will not have discharged its functions under the Act unless it makes an informed judgment on these phases of the cases.
"* * * *" "(e) To issue licenses to citizens of the United States, or to ally association of such citizens, or to any corporation organized under the laws of the United States or any State thereof, or to any State or municipality for the purpose of constructing, operating, and maintaining dams, water conduits, reservoirs, power houses, transmission lines, or other project works necessary or convenient for the development and improvement of navigation and for the development, transmission, and utilization of power across, along, from, or in any of the streams or other bodies of water over which Congress has jurisdiction under its authority to regulate commerce with foreign nations and among the several States, or upon any part of the public lands and reservations of the United States (including the Territories), or for the purpose of utilizing the surplus water or water power from any Government dam, except as herein provided. . . ."
I had thought it indisputable, first, that a court may not overturn a determination made by an administrative agency upon a question committed to the agency's judgment Page 387 U. S. 452 unless the determination is "unsupported by substantial evidence," [Footnote 2/1] and, second, that the substantiality of the evidence must be measured through, and only after, an examination of the "whole record." [Footnote 2/2]
The Commission has determined, on the basis of 14,327 pages of testimony and exhibits, of "extensive material" [Footnote 2/3] submitted after the close of the record by the Secretary of the Interior [Footnote 2/4] and of the Commission's own "general Page 387 U. S. 453 knowledge of the Columbia River System," 31 F.P.C. 247, 277, that the application of Pacific Northwest was "best adapted to a comprehensive plan," 49 Stat. 842, 16 U.S.C. § 03(a), of development for this portion of the Columbia River Basin, and that, as a consequence, this site should not now be reserved for later development by the United States. [Footnote 2/5]
The Court of Appeals unanimously concluded that this evidentiary record establishes that "the Commission was amply justified in refusing to recommend federal development and in issuing a license for private construction." Page 387 U. S. 454 123 U.S.App.D.C. 209, 217, 358 F.2d 840, 848. I agree. Doubtless much of the evidence was not, as it was submitted, labeled as pertinent to a determination of the Commission's responsibilities under § 7(b), but I had not before understood that evidence marshaled in support of an agency's finding must, if it is to be credited, have been tidily categorized at the hearing according to the purposes for which it might subsequently be employed.
I can only conclude that the Court, despite its self-serving disclaimer, ante pp. 387 U. S. 450-451, has, in its haste to give force to its own findings of fact on the breeding requirements of anadromous fish [Footnote 2/6] and on the likelihood that solar and nuclear power will shortly be alternative sources of supply, substituted its own preferences for the discretion given by Congress to the Federal Power Commission. In particular, it must be emphasized that the Court, alone among the Secretary of the Interior, the Commission, Pacific Northwest, the Washington Public Power Supply System, and the various other intervenors, apparently supposes that no dam at all may now be Page 387 U. S. 455 needed at High Mountain Sheep. [Footnote 2/7] Wherever the right lies on that issue, it need only be said that Congress has entrusted its resolution to the Commission's informed discretion, and that, on the basis of an ample evidentiary record, the Commission has determined that Pacific Northwest should now be licensed to construct the project.