ALLIANCE FOR THE WILD ROCKIES V. CARL PETRICK, ET AL, No. 21-35504 (9th Cir. 2023)
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The United States Forest Service designated several thousand acres of national forest for various treatments, including commercial logging, to reduce the risk of wildfires and disease. The Forest Service invoked a categorical exclusion from National Environmental Policy Act (NEPA) review for projects in the wildland-urban interface. In Hanna Flats I, the district court granted summary judgment for Alliance for the Wild Rockies based on the reasoning that the record did not show that the Project fell within the statutory definition of the wildland-urban interface. Subsequently, the Forest Service issued a Supplement to the Decision Memo, further justifying the categorical exclusion. In Hanna Flats II, the district court issued a preliminary injunction based on the reasoning that the Forest Service could not invoke the categorical exclusion.
The Ninth Circuit vacated the district court’s grant of summary judgment in Hanna Flats I, and vacated the district court’s preliminary injunction in Hanna Flats II. The panel held that in Hanna Flats I, the district court erred in finding that Alliance’s public comments adequately put the Forest Service on notice of its eventual claim. The panel concluded that it had appellate jurisdiction. The panel held that the Forest Service sufficiently preserved its notice argument, even though it framed notice as an exhaustion requirement below and as a waiver issue on appeal. Second, the panel held that Alliance’s comments did not put the Forest Service on notice of the wildland-urban interface issue. The panel held that there was no reason to conclude that it should exercise its equitable discretion to leave an injunction in place that was wrongly granted.
Court Description: Environmental Law / Timber Projects The panel vacated the district court’s grant of summary judgment in Hanna Flats I, and vacated the district court’s preliminary injunction in Hanna Flats II, in two appeals involving an ongoing dispute over the Hanna Flats logging project in the Idaho panhandle (the “Project”).
The United States Forest Service designated several thousand acres of national forest for various treatments, including commercial logging, to reduce the risk of wildfires and disease. The Forest Service invoked a categorical exclusion from National Environmental Policy Act (NEPA) review for projects in the wildland-urban interface. In Hanna Flats I, the district court granted summary judgment for Alliance for the Wild Rockies, based on reasoning that the record did not show that the Project fell within the statutory definition of wildland-urban interface, and ordered further analysis supporting the categorical exclusion on remand. Subsequently, the Forest Service issued a Supplement to the Decision Memo further justifying the categorical exclusion. In Hanna Flats II, the district court issued a preliminary injunction based on the reasoning that the Forest Service could not invoke the categorical exclusion. The panel held that in Hanna Flats I, the district court erred in finding that Alliance’s public comments adequately put the Forest Service on notice of its eventual claim.
The panel concluded that it had appellate jurisdiction.
First, the panel held that the appeal was not moot. The parties did not intend to settle this matter; and the government’s compliance with the judgment of a lower court—even where compliance involved a new agency decision—did not necessarily moot the appeal, especially where some redress remained possible. Second, the Forest Service had standing to pursue this appeal. The Forest Service remains injured by the final judgment in Hanna Flats I, and this court can redress that injury with a favorable decision.
The panel next evaluated whether the doctrine of administrative waiver barred Alliance’s challenge in Hanna Flats I because Alliance did not raise its arguments during the public-comment period. First, the panel held that the Forest Service sufficiently preserved its notice argument, even though it framed notice as an exhaustion requirement below and as a waiver issue on appeal. Second, the panel held that Alliance’s comments did not put the Forest Service on notice of the wildland-urban interface issue. Alliance’s vague and generalized statement that the district court cited, contained within more than a hundred pages of comments, did not provide sufficient notice to the government of Alliance’s current concerns. Alliance therefore never gave the Forest Service an opportunity to consider the issue presented by Alliance’s eventual claim in federal court. Alliance’s comment did not identify any violation of the Healthy Forests Restoration Act (“HFRA”), nor did it allege that the Project fell outside the wildland-urban interface. In addition, Alliance’s other comments were even more removed from Alliance’s claim. The panel remanded for the district court to consider Alliance’s unaddressed argument that there was no administrative-objection requirement in this context.
In Hanna Flats II, which Alliance brought after the Forest Service complied with the remand order and issued the Supplement, the district court enjoined the implementation of the Project because it found serious questions about whether the Forest Service validly applied HFRA’s categorical exclusion to the Project. First, the parties disagreed on the standard of review that should be applied to the Forest Service’s decision to rely on a categorical exclusion. Pursuant to the text of the Administrative Procedures Act (“APA”) and precedent, the panel reviewed the Forest Service’s reliance on HFRA’s categorical exclusion under the familiar arbitrary or capricious standard. Next, the panel considered the district court’s ruling that there were serious questions about the application of the categorical exclusion. The panel held that the district court did not, as the Forest Service contended, impermissibly create and impose new procedural duties on the Forest Service. It simply held the Forest Service to the strictures already required by the APA (and, by extension, HFRA). Turning to the district court’s analysis, the panel agreed with the district court that, under these facts, the Project’s location within the area designated as wildland-urban interface by the Bonner County community plan was not enough to establish the valid application of the categorical exclusion. However, the district court’s conclusion—that there were serious questions whether the categorical exclusion applied—was based on an erroneous interpretation of the HFRA. Because the preliminary injunction was based on faulty legal premises, the panel vacated and remanded. Finally, the panel held that there was no reason to conclude that it should exercise its equitable discretion to leave an injunction in place that was wrongly granted, and where there was no clear likelihood of success on another claim.
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