Document: 490 U.S. 212 109 S.Ct. 1726 104 L.Ed.2d 250 Samuel K. SKINNER, Secretary of Transportation, Appellant,v.MID-AMERICA PIPELINE COMPANY. No. 87-2098. Argued March 1, 1989. Decided April 25, Thomas W. Merrill, Washington, D.C., for appellant. Richard McMillan, Jr., appellee. Syllabus Section 7005 the Consolidated Omnibus Budget Reconciliation Act 1985 (COBRA) directs Transportation (Secretary) to establish a schedule pipeline safety user fees based on usage hazardous pipelines and collect such annually from persons operating facilities subject Hazardous Liquid Pipeline Safety 1979 (HLPSA) Natural Gas 1968 (NGPSA). 7005—designed make administration HLPSA NGPSA self-financing—provides that assessed be used finance activities authorized by may not exceed 105 percent aggregate congressional appropriations fiscal year funded fees. Pursuant this mandate, published fee schedules 1986. Appellee Mid-America Co.—which owns operates transport liquids is, therefore, HLPSA—paid its under protest filed suit against in District Court declaratory injunctive relief. On cross-motions summary judgment, court adopted conclusions Magistrate recommending § struck down as an unconstitutional delegation Department Congress' taxing power grounds assessments were taxes rather than fees, that, enacting 7005, Congress did give kind guidance necessary avoid conclusion had unconstitutionally delegated Executive Branch. Held: COBRA is Pp. 218-224. (a) The multiple restrictions placed Secretary's discretion assess meet normal requirements nondelegation doctrine, which requires provide administrative agency with standards guiding actions can ascertain whether will has been obeyed. In delimited scope greater specificity other delegations upheld. firms either two Acts or use funds purposes administering Acts; he set case-by-case basis, apply fee-setting criteria one those delineated Congress, does bear reasonable relationship these criteria; no expand budget because ceiling. Pp.218-220. (b) Even if are form taxation, neither Constitution nor practices require application different stricter doctrine cases where delegates discretionary authority power. There nothing placement Taxing Clause—first place among powers enumerated Art. I, 8, Constitution—that would distinguish tax terms degree delegate Branch execute laws. Moreover, Origination Clause all revenue bills originate House Representatives—implies about once bill properly enacted. when legislation remarkable specificity, it done Internal Revenue Code, prescribe, determine retroactivity of, rul regulations enforcement Code. relies administrators courts implement legislative since cannot expected anticipate every conceivable problem arise carry out day-to-day oversight. 220-223. (c) This Court's decisions National Cable Television Assn., Inc. v. United States, 415 336, 94 1146, 39 370, FPC New England Power Co., 345, 1151, 383, contrary, they stand only proposition must indicate clearly intention recover costs inuring directly benefit regulated parties imposing additional financial burdens, characterized "fees" "taxes," parties. explicitly reflects intent total recovered through assessment charges Acts. 223-224. Reversed. O'CONNOR, J., delivered opinion unanimous Court. Justice O'CONNOR 1 We decide today 1985, system cover certain federal programs, hold not. 2 * A. 3 1986, enacted (COBRA), Pub.L. 99-272, 100 Stat. 82. COBRA, codified at 49 U.S.C.App. 1682a (1982 ed., Supp. IV), entitled "Pipeline fees," "establish usage, volume-miles, miles, revenues, appropriate combination thereof, natural gas liquid pipelines." 7005(a)(1). These collected annually, 7005(b), "persons operating—(A) (49 2001 et seq.); (B) transmission liquified jurisdiction 1671 seq.)." 7005(a)(3). regulates interstate intrastate carrying petroleum, petroleum products, anhydrous ammonia. See CFR pt. 195 (1987). (NGPSA), turn, (LNG) facilities, see 193 (1987), well gas, flammable toxic corrosive, pts. 191, 192 4 "to extent provided advance appropriation Acts, only— 5 "(1) case . .; 6 "(2) 1979. ." 7005(c). 7 "activities" include expenses incurred salaries, travel, printing, communication, supplies, "regulatory, enforcement, training research costs, State grants-in-aid." 51 Fed.Reg. 25783 (1986). "sufficient [these] but time shall received any made 7005(d). number recent enactments designed various regulatory programs partially entirely self-financing. E.g., 3401 1890, 42 U.S.C. 7178 IV) (entire Federal Energy Regulatory Commission); 7601, 2213 (33 Nuclear Commission; 45 years 1988 1989). 8 mandate (FY) 1986 July 16, 25782 Prior publication, consulted industry's major trade associations assistance determining basis assessing within range options permitted consensus associations—the American Petroleum Institute, Association, Interstate Association America, Oil Pipe Lines was mileage (referred simply "miles" 7005) "the most agreed FY schedules. comments submitted consideration possible changes 1987, one-third commenting objected arguing volume-miles more accurate indicator term "usage" alone fairly reflect Transportation's expenditures. decided continue ease "long small diameter just much effort shorter large diameter." Id., 46978. 9 also determined program excluding grants-in-aid, should allocated 80 20 HLPSA. grants 95 Five borne LNG facility operators function storage capacity plants. 25783, 46976. Finally, estimated 23 Nation's less 10 miles 17 30 value assessed. Accordingly, exempted Ibid. framework, $23.99 per mile $6.41 Operators lump sums ranging $1,250 $7,500 plant. 25783. both $7.773 million, $8.523 $8.550 million FY's respectively. Brief Appellant 4, n. 2. Expenses 1989 $9.3 million. Related Agencies Appropriations Act, 1989, 100-457, 102 2143-2144. B 11 Company, Tulsa, Oklahoma, strictures 28, pursuant recently schedule, $ 3,023.52 share cost paid sum States Northern Oklahoma seeking assigned recommended Relying primarily our 370 (1974), 383 concluded then light J.W. Hampton, & Co. 276 394, 48 348, 72 L.Ed. 624 (1928), Light SEC, 329 90, 67 133, 91 103 (1946), 12 entered judgment February 9, 1988. Invoking appellate 28 1252, appealed decision we noted probable jurisdiction. Sub nom. Burnley 488 814, 50, 29 (1988). Because district before September 1988, repeal 1252 Public Law 100-352, 662, affect case. Appeals judgments finding after repealer's effective date, however, now taken appeals, 1291. II 13 Earlier Term, Mistretta 361, 647, 714 (1989), revisited reaffirmed longstanding principle so long provides could " 'ascertain obeyed,' trenching separation occurred. 379, 658, quoting Yakus 321 414, 426, 64 660, 668, 88 834 (1944). supra, U.S., 105, S.Ct., 142 (It "constitutionally sufficient delineates general policy, public it, boundaries authority. Private rights protected access test policy declarations"). 14 seriously contend guidelines do have applied it. Nor support contention. upheld past. Cf. Lichter 334 742, 778-786, 68 1294, 1313-1318, 92 1694 (1948) (upholding War "excessive profits" earned military contracts); Yakus, 420, 426-427, 665, 668-669 Price Administrator fix prices commodities "will generally fair equitable effectuate purposes" enactment); Hope 320 591, 600-601, 281, 286-287, 333 (1944) Commission rates); Broadcasting 319 190, 194, 225-226, 63 997, 999, 1013-1014, 87 1344 (1943) Communications regulate broadcast licensing "public interest, convenience, necessity" require). 15 Under 7005(a)(3); 7005(c); 7005(a); setting "reasonable relationship" criteria, 7005(a). Furthermore, whatsoever ceiling year. doubt satisfy constitutional previously articulated them. 16 contends—and agreed—that, notwithstanding soundness ordinary analysis, scrutinized exacting lens. When scrutinized, argues, revealed constitutionally inadequate. Mid-America's view, although labeled "user actually levied NGPSA. power, further contends, unlike powers, delegable all, required purports derive two-tiered theory text history Constitution, past practice, Article enumerates Congress. First "Power To lay Taxes, Duties, Imposts Excises. discern powers—such commerce "raise Armies," borrow money, "make Rules Government"—in order President "take Care Laws faithfully executed." II, 3. (1928) broad Commerce impose duties foreign imports). It course, true "[a]ll Bills raising [must] Representatives. 7. But Clause, while embodying Framers' concern elected people initial responsibility over taxation (until ratification Seventeenth Amendment 1913, Senators chosen state legislatures, 3), implies failed originat House. Committee drafted provision, included H.R. 3500, 99th Cong., 1st Sess. H.R.Rep. 99-300, p. 492 (1985). 18 From earliest days present, legislation, varied consequent enactments. See, e.g., Mar. 3, 1791, ch. 15, 43, 209 (in fines nonpayment liquor taxes, secretary treasury [has] mitigate remit penalty forfeiture upon conditions appear him reasonable") (First Congress); 6, 1797, 11, 2, 528 lieu collecting stamp duty Treasury "agree annual composition amount duty, said banks, centum dividend banks") (Fifth Congress). Field Clark, 143 649, 683-689, 495, 501-504, 36 294 (1892) (longstanding practice delegating "is great weight"). 19 legislates "prescribe needful rules [the Code], including reason alteration law relation internal revenue" extent, any, ruling regulation, relating laws, without retroactive effect." 26 §§ 7805(a), (b). Such regulations, undoubtedly individual taxpayer liability, equally result As observed Bob Jones University 461 574, 2017, 76 157 (1983): "In area complex system, vests able exercise changing new problems. 21 "Congress, source IRS authority, modify rulings considers improper; review actions. first instance, construing [Internal Revenue] Code falls IRS. Since oversight, will." 596-597, 2031. 22 Muffler Dealers 440 472, 488, 99 1304, 1312, 59 519 (1979) ("The choice interpretations [of Code] Commissioner, courts"). find support, then, contention conclusion, need ourselves threshold question exercised users created thought some inure scrutiny applie challenges. wisely choose circumspect heightened prudence Constitution. 24 Our contrary. considered provision Independent Offices Appropriation (IOAA), 1952, 65 290, recodified 31 9701, allows agencies "(A) Government; service thing recipient; (C) interest served; (D) relevant facts." 9701(b)(2). respectively sought recoup their regulating community antenna television systems Recognizing issue "inured public," 343, 1150, parties, expressed intended IOAA benefits conferred "besto[w] [regulated party], shared members society," might better Given least possibility difficulty arising chose interpret "narrowly problems." 342, 1150. agencies' efforts generally. 25 FEA Algonquin SNG, Inc., 426 548, 96 2295, (1976), challenge Trade Expansion 1962, 872, raise license imports protect national security. rejecting challenge, clear 560, 10, 2302, 10. Of doctrine. indicated, intelligible assessments. Finding reverse ordered.

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