Opinion ID: 586835
Heading Depth: 2
Heading Rank: 2

Heading: Whether Substantial Evidence Supports FERC Findings.

Text: 25 Pursuant to the FPA, FERC's factual findings are conclusive if supported by substantial evidence. See 16 U.S.C. § 825l(b) (1988). Substantial evidence has been defined to mean  'such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.'  Allegheny Elec. Co-op, 922 F.2d at 80 (citation omitted). The FPA's substantial evidence test has therefore been described as the application of the arbitrary and capricious standard to factual findings. Id. In applying this standard, [a]lthough this inquiry into the facts is to be searching and careful, the ultimate standard of review is a narrow one. The court is not empowered to substitute its judgment for that of the agency. Citizens To Preserve Overton Park v. Volpe, 401 U.S. 402, 416, 91 S.Ct. 814, 824, 28 L.Ed.2d 136 (1971). 26 In the present case, Vermont claims that the following findings made by FERC are not supported by substantial evidence: (1) that required stream flow rates minimize to acceptable levels the adverse effects to the aesthetic qualities of the Great Falls caused by the Project's drain on water; (2) that swimming opportunities, as a result of mitigative measures, will not be lost to a significant degree; and (3) that the Project is economically viable. These findings will be discussed in turn. 27
28 It is uncontested that the demands of the hydroelectric facility will significantly tap into the water currently flowing over the Falls, thereby altering their appearance. However, to balance aesthetic values with Project needs, FERC required that from October 16 to May 31, a period during which FERC determined use of the Falls was at its lowest, 5 cubic feet per second (cfs) of water flow over the falls. As FERC reasoned in the EA, rather than run at uniformly low rates, winter storms and spring rains periodically will increase the flows during this time beyond the set minimum. Substantially higher flows of 32 cfs, which FERC contends will approximate natural flows, will be required during the summer and fall to accommodate recreation and foliage tours. 29 Contrary to petitioner's assertion that FERC uncritically accepted the minimum flow rates proposed by Balagur, the Commission carefully considered the appropriate minimum flow and arrived at a flow far higher than that proposed by Balagur. Indeed, FERC reviewed videotapes and photographs of the falls at flows ranging from 7 cfs to 123 cfs, as well as the recommendations of staff members who had actually visited the falls. After conducting its own study, FERC consulted with the U.S. Fish and Wildlife Service and the Vermont Department of Water Resources. On this basis, FERC determined that flow rates of 32 cfs be required over the falls during the summer months, rather than the 5 cfs flow Balagur had proposed. Although Vermont disagrees with FERC's decision, it is clear that FERC's conclusions regarding the adequacy of flow are not arbitrary and capricious. 30 Vermont also contends that FERC relied on insufficient data in determining the amount of recreational use during the winter and spring. According to Vermont, FERC overlooked people who simply drive by the Falls and appreciate the view, as opposed to those who actually engage in recreational activities. Failure to account for such sporadic and transient enjoyment does not, however, render FERC's ultimate findings infirm or make the balance struck inappropriate. 31
32 Vermont next argues that FERC clearly erred in finding that swimming opportunities would not be significantly curtailed. We conclude that although the swimming hole will be lost, FERC's finding that overall recreational swimming will not suffer significantly is supported by substantial evidence. 33 The license granted to Balagur not only requires access to the site where safety permits, but also requires Balagur to study potential sites both upstream and downstream of the project, and, after consulting with the Thetford Planning Commission, the Vermont Agency of Natural Resources, and the Corps of Engineers, to prepare a plan for the development of swimming and wading opportunities in the project area. Vermont nevertheless contends that a license should not have been granted until the outcome of the studies and plans were reviewed, i.e., there is no basis yet to say that adequate swimming will continue. FERC has, however, demonstrated commendable concern regarding the replacement of the swimming hole. Indeed, we view Balagur's obligation to develop plans for alternative swimming sites as entailing a further obligation to implement such plans if feasible, after consultation with the above named agencies. FERC assured this court at oral argument that since Balagur's license depended on fulfillment of that condition, FERC would assure Balagur's good faith compliance. Under these circumstances, we conclude there is a rational basis for FERC's finding that the envisaged measures will compensate adequately, though perhaps not completely, for the loss of one swimming hole. 34
35 Vermont next argues that FERC's decision that the Project would be economically viable is baseless because after this decision, Balagur was denied a particular rate structure by the Vermont Public Service Board. FERC responds that its decision was based on energy cost information submitted by Balagur, information gathered from New England Utilities, and on a comparison over 50 years between anticipated Project costs and fossil fuel costs. According to FERC, the denied rate did not enter into its economic feasibility calculations. 36 Resolving the issue of the economic viability of the Project requires technical expertise and is properly left to the informed discretion of the responsible federal agency. Friends of the River v. FERC, 720 F.2d 93, 102 (D.C.Cir.1983). The record reflects that FERC undertook a comprehensive study of energy costs and requirements, and, consequently, FERC's determination is not arbitrary or capricious. 37