Opinion ID: 380807
Heading Depth: 2
Heading Rank: 2

Heading: Recyclable Materials.

Text: 29 The National Association of Recycling Industries, Inc., (NARI), contends the decision is reviewable as it relates to recyclables, because the ICC did make a lawfulness determination on recyclable rates. NARI argues increases authorized for recyclables were unreasonable and discriminatory. 30 The ICC stated in its decision that it would allow the general rate increases proposed for recyclables, on the condition that criteria set recently in a special, statutorily mandated investigation of rates for recyclables, Ex Parte 319, were met. Under Ex Parte 319, a reasonable recyclable rate could not exceed the revenue-to-variable-cost ratio of 180%; a recyclable's variable-cost ratio had to be less than or equal to that for the corresponding virgin commodity for the rate to be nondiscriminatory. 31 This decision is clearly not merely a refusal to investigate under section 10707(a). It is not a decision on general reasonableness, because it pertains only to a specific commodity group's rate. It is not a ruling on probable reasonableness, because a precise maximum figure was set, a figure that was the final determination of reasonable recyclable rates, established after a recent and thorough investigation. While the ICC did not commence a proceeding to determine lawfulness of rates for recyclables in this general increase proceeding, it also did not merely refuse to investigate: relying entirely upon its former investigation and decision, it affirmatively approved rates within that reasonable maximum. 32 Thus, the reasoning underlying the Seaboard bar to reviewability does not apply. However, the policy and reasoning of precedent against review of the effect on a particular commodity of a general increase proceeding order does apply, and it precludes NARI's petition. 33 The law is uncertain on review of orders entered in general increase proceedings, even final orders entered after an actual investigation. Courts have even withheld review of the narrow decision that evidence of revenue need justified a general increase, on the ground that a shipper must exhaust administrative remedies under sections 11701(b) and 10704(a). 10 However, it is of greater significance for NARI's challenge that there is uniform precedent against review of a general increase's effect on a particular commodity. See Algoma Coal & Coke Co. v. United States, 11 F.Supp. 487 (E.D.Va.1935); Koppers Co. v. United States, 132 F.Supp. 159 (W.D.Pa.1955); Florida Citrus Commission v. United States, 144 F.Supp. 517 (N.D.Fla.1956), aff'd mem., 352 U.S. 1021, 77 S.Ct. 589, 1 L.Ed.2d 595 (1957); Electronic Industries Association v. United States, 310 F.Supp. 1286 (D.D.C.1970), aff'd mem., 401 U.S. 967, 91 S.Ct. 1188, 28 L.Ed.2d 318 (1971). See also Council of Forest Industries v. ICC, 570 F.2d 1056, 1060-62 (D.C.Cir.1978); National Association of Recycling Industries, Inc. v. ICC., 627 F.2d 1341, at 1344 (NARI III) (D.C.Cir. 1980). The reasoning is that normally the ICC does not finally rule on the reasonableness of a specific commodity's rate in a general revenue proceeding, and it is not an appropriate issue to resolve on the limited record of such a proceeding. Since the ICC does not decide it, it is not ripe for review. To obtain a final and reviewable ruling, an individual, post-effective complaint must be brought under sections 11701(b) and 10704(a) seeking a refund and a declaration of reasonableness. 34 This precedent would seem to preclude NARI's petition, as NARI challenges the general increase order only insofar as it relates to recyclables. However, the reasoning loses its force when, as here, the ICC does not merely decide to refrain from declaring a general increase lawful or unlawful. As NARI points out, the ICC actually did pass on the specific issue of reasonable and nondiscriminatory rates for recyclables. It did not use a limited and general record compiled for evaluation of a general, across-the-board increase, but relied on a prior, specific investigation of recyclable rates. This weakens policy arguments against immediate review. See Council of Forest Industries v. ICC, 570 F.2d at 1063; NARI III, at 1344. 35 However, we conclude that the circumstances of this case do not warrant making an exception to the rule of nonreviewability. It is simply not necessary, and perhaps undesirable, to review NARI's contentions in this general revenue proceeding. While the ICC decision on recyclable rates did in fact rest upon an investigation of lawfulness, it was not an investigation initiated in this general revenue proceeding, but the Ex Parte 319 investigation. The decision following that investigation, adhered to by the ICC here, was reviewable and has been reviewed by the District of Columbia Circuit. Furthermore, court-ordered remand of Ex Parte 319 illustrates that NARI's contentions are not best addressed on review of a general increase order. 36 As NARI points out, the 180% ratio that is the standard of reasonableness set in Ex Parte 319 and adhered to by the ICC in its order here, was vacated on review. National Association of Recycling Industries, Inc. v. ICC, 627 F.2d 1328, at 1340 (NARI II ) No. 79-1393 and consolidated cases (D.C.Cir. April 25, 1980). The court held selection of the 180% figure was completely unsupported by explanatory discussion of fundamental considerations such as justification for the resulting higher-than-normal profit levels. Id. It remanded to the ICC for further proceedings to define what rates for recyclables are reasonable; and until that decision is issued, it ordered revoked any published increases approaching the 180% standard. 37 Simultaneously, the District of Columbia Circuit decided NARI III, a case with a factual situation nearly identical to the one before us. In it, NARI petitioned for review of general revenue proceedings conducted after Ex Parte 319 was decided, and in which specific rulings on the reasonableness of rates for recyclables were made. The court discussed, but did not decide, whether the general increase order, insofar as it pertained to recyclables, could be reviewed. At 1333. It held NARI could get full relief through the Ex Parte 319 proceedings on remand, because the Ex Parte 319 record had been updated with revenue data from the general increases that NARI sought to challenge. At 1332-1333. Therefore, it held NARI's challenge to the general revenue proceeding order was moot. 38 Whether or not the revenue data in Ex Parte 319 has been or can be updated to reflect the general increase at issue here, the remand of Ex Parte 319 illustrates that NARI's contentions are not best resolved by review of this general increase order. The ICC did not investigate rates on recyclables in this proceeding, but relied upon Ex Parte 319 and briefly restated the conclusion it had reached there. Both review of the order, and the continuing jurisdiction NARI urges we maintain if we remand, would take our review beyond the record here to the record in Ex Parte 319. That task has already been undertaken and completed by the District of Columbia Circuit. The fact that the ICC may change its decision on remand of Ex Parte 319 in light of NARI II and new knowledge, is further evidence of the limited decision made here and the absence of a need to reopen the proceedings. See SCRAP II, 422 U.S. at 327, 95 S.Ct. at 2359. Proceeding either within Ex Parte 319 on remand, if possible, or by a section 11701(b) complaint, NARI will have the benefit of a more complete record than that compiled in this proceeding. It also can obtain a final ruling, the reviewability of which would not be subject to question. 39