Air Transport Association v. AGRI, No. 21-5118 (D.C. Cir. 2022)Annotate this Case
Appellants brought an action contesting a Department of Agriculture rulemaking in the district court. Appellants argued that the rule violated both the Food, Agriculture, Conservation, and Trade Act of 1990, as well as the Administrative Procedure Act. The district court granted summary judgment in favor of Appellees.
Appellants contested four aspects of the Final Rule: (1) that collection of a reserve surcharge violates the FACT Act; (2) that the Final Rule violates the FACT Act’s prohibition on cross-subsidization; (3) that the Final Rule violates the FACT Act and the APA by charging both a per-passenger and a per aircraft fee; and (4) that APHIS violated the APA by withholding certain information during the rulemaking process.
The DC Circuit affirmed the district court’s judgment in part, reversed it insofar as the challenged rule authorizes collecting fees to fund a reserve after 2002. The court explained that Congress has directly addressed the question of whether APHIS may continue to collect fees to fund a reserve after fiscal year 2002. They may not do so. Thus, the court remanded this case to the district court for vacating insofar as the Final Rule authorizes collecting fees to maintain a reserve account. Further, the court wrote that all of Appellants’ arguments regarding the dual application of the Commercial Aircraft User Fee and the Commercial Air Passenger Fee fail. Moreover, Appellants’ argument that fees collected from multiple user classes cannot be comingled in a fund that pays for the inspections of fee-paying user classes fails because the FACT Act does not prohibit this form of cross-subsidization.