Federal Circuits, 2nd Cir. (August 22, 2006)
Docket number: 04-5337
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U.S. Court of Appeals for the 2nd Cir. - Nancy Sweet, Individually and as Mother and Natural Guardian of Thomas Sweet A/K/a Thomas Brown, Plaintiff-Appellee, v. Robert Sheahan, Defendant-Appellant, American Cyanamid Company, Successor in Interest To Macgreggor Lead Company, Atlantic Richfield Company, Eagle-Picher Industries, Inc., Lead Industries Associations, Inc., N.L. Industries, Inc., Scm Corporation, as Successor in Interest To the Glidden Company, Scm Chemicals, Inc., F/K/a Scm Pigments and Glidden Pigments, the Glidden Company, the O'Brien Corporation, D/B/a Fuller-O'Brien Paints, the Sherwin Williams Company, and E.I. Dupont de Nemours & Co., Defendants., 235 F.3d 80 (2nd Cir. 2000) Individually and as Mother and Natural Guardian of Thomas Sweet A/K/a Thomas Brown, Plaintiff-Appellee, v. Robert Sheahan, Defendant-Appellant, American Cyanamid Company, Successor in Interest To Macgreggor Lead Company, Atlantic Richfield Company, Eagle-Picher Industries, Inc., Lead Industries Associations, Inc., N.L. Industries, Inc., Scm Corporation, as Successor in Interest To the Glidden Company, Scm Chemicals, Inc., F/K/a Scm Pigments and Glidden Pigments, the Glidden Company, the O'Brien Corporation, D/B/a Fuller-O'Brien Paints, the Sherwin Williams Company, and E.I. Dupont de Nemours & Co., Defendants.
U.S. Supreme Court - Darby v. Cisneros, 509 U.S. 137 (1993)
U.S. Supreme Court - Japan Whaling Assn. v. American Cetacean Soc., 478 U.S. 221 (1986)
U.S. Supreme Court - Block v. Community Nutrition Institute, 467 U.S. 340 (1984)
UNITED STATES COURT OF APPEALS
FOR THE SECOND CIRCUIT August Term, 2005 (Argued: November 14, 2005 Decided: August 22, 2006) Docket No. 04-5337-cv Natural Resources Defense Council, Pesticide Action Network North America, The Breast Cancer Fund, Physicians for Social Responsibility, New York Public Interest Research Group, Farmworker Legal Services of New York, Citizens Campaign for the Environment, Neighborhood Network Research Center, Citizens Environmental Coalition, Mid-Hudson Catskill Rural and Migrant Ministry, Environmental Advocates of New York, Plaintiffs-Appellants, v. Stephen L. Johnson, Administrator, United States Environmental Protection Agency, Defendants-Appellees, Captan Task Force, Makhteshim-Agan of North America, Inc., Sygenta Crop Protection Inc., Monsanto Company, Gowan Company L.L.C., Bayer CropScience LP, CropLife America, Defendants-Intervenors-Appellees. B e f o r e: WINTER, STRAUB, and RAGGI, Circuit Judges. Appeal from a dismissal of a complaint for lack of subject matter jurisdiction, Fed. R. Civ. P. 12(b)(1), in the Southern District of New York (Gerard E. Lynch, Judge). We affirm. AARON S. COLANGELO (Erik D. Olson, Jon P. Devine, Jr., on the brief), Natural Resources Defense Council, Washington, D.C. (Patti A. Goldman, Earthjustice, Seattle, Washington, Shelley Davis, Farmworker Justice Fund, Washington, D.C., of counsel),for Plaintiffs Appellants. KATHY S. MARKS, Assistant United States Attorney (David N. Kelley, United States Attorney for the Southern District of New York, Sara L. Shudofsky, Assistant United States Attorney, of counsel), New York, New York (Jonathan J. Fleuchaus, Daniel M. Flores, United States Environmental Protection Agency, Washington, D.C., of counsel), for Defendants Appellees. DONALD B. MITCHELL (Stanley H. Abramson, Eric S. Baxter, on the brief), Arent Fox PLLC, Washington, D.C. (William J. McSherry, Jr., Janine M. Gargiulo, Arent Fox PLLC, New York, New York; David B. Weinberg, Wiley Rein & Fielding LLP, Washington, D.C., on the brief), for Defendants-Intervenors Appellees. WINTER, Circuit Judge: The appellants in this action are eleven public health, environmental, religious and farmworker organizations, including the Natural Resources Defense Council (collectively, the "NRDC Appellants"). They appeal from Judge Lynch's dismissal of their complaint for lack of subject matter jurisdiction. The complaint challenged the Environmental Protection Agency's ("EPA")1 decision to leave in effect certain pesticide "tolerances" (i.e., the maximum permissible amount of pesticide residues on food) for five pesticides after a systematic tolerance reassessment program required by the Food Quality Protection Act of 1996, Pub. L. No. 104-170, 110 Stat. 1489. Judge Lynch dismissed the complaint after concluding that 21 U.S.C. 346a(h)(5) required such challenges to be reviewed only in the courts of appeals after exhausting administrative review processes. On appeal, the NRDC Appellants argue that Section 346a(h)(5) governs judicial review only of EPA decisions to establish, modify, or revoke tolerances and that decisions to leave tolerances in effect are reviewable in the district courts pursuant to the Administrative Procedure Act ("APA"), 5U.S.C. §§ 701 et seq. We affirm. BACKGROUND a) Statutory and Regulatory Scheme The EPA regulates agricultural pesticides under two interrelated statutes: the Federal Food, Drug, and Cosmetic Act ("FFDCA"), 21U.S.C. §§ 301-394, and the Federal Insecticide, Fungicide, and Rodenticide Act ("FIFRA"), 7U.S.C. §§ 136-136y. FIFRA imposes a federal licensing scheme on the sale, distribution, and use of pesticides. 7U.S.C. § 136a(a) ("no person in any State may distribute or sell to any person any pesticide that is not registered" under FIFRA). A pesticide may not be registered unless the EPA determines that "it will not generally cause unreasonable adverse effects on the environment." Id. § 136a(c)(5)(D). These environmental effects are analyzed, in part, by referencing the FFDCA and the "human dietary risk" that might arise from pesticide residues in or on food. Id. § 136(bb)(2). To ensure the safety of consumers of pesticide-treated food, the FFDCA empowers the EPA to establish "tolerances," which set the maximum permissible level of pesticide residue on a particular food, or to grant exemptions from the tolerance requirement. 21U.S.C. §§ 346a(a)-(c). Before any agricultural commodity containing pesticide residue can be sold or distributed, a tolerance (or exemption) meeting certain safety standards must be promulgated by the EPA. 21U.S.C. §§ 331(a), 342(a)(2)(B), 346a(a)(1)-(2). If no tolerance or exemption is established, any food containing pesticide residue is deemed "unsafe" and "adulterated" and may not be moved in interstate commerce. Id. The EPA may "establish or leave in effect a tolerance for a pesticide chemical residue in or on a food only if the Administrator determines that the tolerance is safe." Id. § 346a(b)(2)(A)(i). The term "safe" is defined to mean that "there is a reasonable certainty that no harm will result from aggregate exposure to the pesticide chemical residue, including all anticipated dietary exposures and all other exposures for which there is reliable information." Id. § 346a(b)(2)(A)(ii). Any tolerance that is "not safe" must be modified or revoked. Id. § 346a(b)(2)(A)(i). If a pesticide is used on more than one food crop, a separate tolerance (or exemption) must be established for each pesticide-food combination. In 1996, both FIFRA and the FFDCA were amended by the Food Quality Protection Act ("FQPA"), Pub. L. No. 104-170, 110 Stat. 1489. The FQPA required that the EPA reassess the safety of all then-existing tolerances -- over 9,000 -- and added to the FFDCA a range of detailed, scientific factors to be considered in the assessment of pesticide risks. 21U.S.C. § 346a(b)(2)(C)-(D). Included in these factors were new requirements pertaining to the safety of infants, children, and other major identifiable subgroups. Id. § 346a(b)(2)(C) ("an additional tenfold margin of safety . . . shall be applied for infants and children" unless the EPA "on the basis of reliable data" establishes a "different margin of safety" that "will be safe for infants and children"); see also id. § 346a(b)(2)(D)(iv), (vi), (vii). Section 346a(q)(1) established a timetable for the reassessment of the preexisting tolerances: 33% were to be completed by August 3, 1999, 66% were to be completed by August 3, 2002, and 100% were to be completed by August 3, 2006. Id. § 346a(q)(1). Under Section 346a(j)(3), a tolerance pre-dating FQPA's enactment "shall remain in effect unless modified or revoked under subsection (d) or (e) of this section [346a], and shall be subject to review under" Section 346a(q). Id. § 346a(j)(3). In conducting its review of a particular tolerance under Section 346a(q), the EPA must determine whether it "meets the requirements of subsections [346a](b)(2) or (c)(2)," and if it does not, "issue a regulation under subsection (d)(4) or (e)(1) of this section [346a] to modify or revoke the tolerance or exemption." Id. § 346a(q)(1). A reassessment review under Section 346a(q), therefore, leads to one of two outcomes: if the EPA determines that the pre-existing tolerance meets the new safety standards of Section 346a(b)(2), the EPA leaves the tolerance in effect, and it is considered reassessed under Section 346a(q); if the EPA finds the pre-existing tolerance to be unsafe under Section 346a(b)(2), then it must modify or revoke the tolerance pursuant to Sections 346a(d)(4) or (e)(1). Id. § 346a(q)(1). The establishment, revocation, or modification of a tolerance occurs under the procedures set forth in Sections 346a(d)-(g). Id. § 346a(d)-(g). Section 346a(d) describes the procedures by which the EPA may establish, modify or revoke a tolerance in response to a petition from the general public. Id. § 346a(d) ("Any person may file with the Administrator a petition proposing the issuance of a regulation . . . establishing, modifying, or revoking a tolerance for a pesticide chemical residue in or on a food."). Upon receiving a petition, the EPA must first determine whether the petition meets the requirements governing petition contents. Id. § 346a(d)(2). If the requirements are met, the EPA must publish a notice of the petition's filing within thirty days. Id. § 346a(d)(3). After publishing the notice, the EPA must issue a final regulation establishing, modifying, or revoking the tolerance; issue a proposed regulation under the provisions of Section 346a(e) and follow the procedures therein; or issue an order denying the petition. Id. § 346a(d)(4)(A). Section 346a(e)(1) describes the procedures by which the EPA may, on its own initiative, "issue a regulation . . . establishing, modifying, suspending . . . or revoking a tolerance." Under Section 346a(e)(2), the EPA must issue a notice of proposed rulemaking and generally provide at least sixty days for public comment before issuing a final regulation. Once a regulation or order is issued pursuant to Sections 346a(d)(4) or 346a(e)(1), "any person" may file objections to the regulation or order within sixty days of its issuance, "specifying with particularity the provisions of the regulation or order deemed objectionable and stating reasonable grounds therefor." Id. § 346a(g)(2)(A). A public evidentiary hearing on the objections may be held, id. § 346a(g)(2)(B), but "[a]s soon as practicable after receiving the arguments of the parties, the Administrator shall issue an order stating the action taken upon each such objection and setting forth any revision to the regulation or prior order that the Administrator has found to be warranted." Id. § 346a(g)(2)(C). The only provision relating to judicial review in Section 346a is subsection (h). Id. § 346a(h). Under Section 346a(h)(1), [i]n a case of actual controversy as to the validity of any regulation issued under subsection (e)(1)(C) of [§ 346a], or any order issued under subsection (f)(1)(C) or (g)(2)(C) of [§ 346a] . . . any person who will be adversely affected by such order or regulation may obtain judicial review by filing [in the United States Courts of Appeals] . . . a petition praying that the order or regulation be set aside in whole or in part. Id. § 346a(h)(1). In sweeping language, Section 346a(h)(5) provides that "[a]ny issue as to which review is or was obtainable under this subsection shall not be the subject of judicial review under any other provision of law." Id. § 346a(h)(5). b) EPA's Implementation of the FQPA Amendments Much of the tolerance reassessment program has been conducted concurrently with a similar program under FIFRA to re evaluate pesticide registrations. See 7U.S.C. § 136a-1. The EPA has frequently used "Reregistration Eligibility Decisions" ("REDs") and "Interim Reregistration Eligibility Decisions" ("IREDs") to announce its decisions on tolerance reassessment and pesticide re-registration. See, e.g., 62 Fed. Reg. 42,020 (Aug. 4, 1997); 65 Fed. Reg. 37,375 (June 14, 2000). REDs for two pesticides at issue in this case, alachlor and captan, were issued in 1998 and 1999, respectively. U.S. EPA, Reregistration Eligibility Decision (RED): Alachlor (1998) (available at http://www.epa.gov/oppsrrd1/REDs/0063.pdf) [hereinafter "Alachlor RED"]; U.S. EPA, Reregistration Eligibility Decision (RED): Captan (1998) (available, as amended, at http://www.epa.gov/oppsrrd1/REDs/0120red.pdf) [hereinafter "Captan Red"]. Concluding "that the established tolerances for alachlor, with amendments and changes as specified in this document, meet the safety standards under the FQPA amendments," the EPA determined that of 38 tolerances, five should be revoked and six should be modified to contain an increased tolerance value. Alachlor RED at 181, 185-87. Making similar findings with respect to captan, the EPA found that 61 of the 66 tolerances needed some sort of adjustment. Captan RED at 62, 66-72. The three other pesticides at issue in this case, diazinon, disulfoton, and oxydemeton-methyl, are members of a large group of pesticides known as organophosphates, which share a common mechanism of toxicity and whose exposure can cause cumulative effects on humans. See 67 Fed. Reg. 56,557, 56,558 (Sept. 4, 2002). Because the EPA determined that the cumulative risks of several organophosphates, including diazinon, disulfoton, and oxydemeton-methyl, made at most minimal or negligible contributions to the overall risk associated with organophosphates, the tolerances for these organophosphates were maintained "regardless of the outcome of the [organophosphate] cumulative assessment and any potential regulatory action taken as a result of that assessment." 67 Fed. Reg. 56,557, 56,558 (Sept. 4, 2002); see also 67 Fed. Reg. 56,555 (Sept. 4, 2002); 67 Fed. Reg. 52,987 (Aug. 14, 2002); 67 Fed. Reg. 46,972, 46,974 (July 17, 2002); 67 Fed. Reg. 35,991, 35,993 (May 22, 2002). c) District Court Proceedings On September 15, 2003, the NRDC Appellants filed the present action.2 On December 23, 2003, an amended complaint was filed challenging the EPA's reassessment and retention of tolerances for 146 pesticide-food pairs involving five pesticides: alachlor, captan, diazinon, disulfoton, and oxydemeton-methyl. Specifically, the NRDC Appellants argued that the EPA's decision to leave these tolerances in effect after reassessment was improper because: (i) the EPA ignored its statutory duty under the FFDCA to include an additional tenfold margin on safety in order to protect infants and children; (ii) the EPA failed to designate the children of farmworkers as a major identifiable subgroup especially vulnerable to the reassessed pesticides; (iii) for eleven organophosphates, the EPA left in effect tolerances whose level exceeded the safe level for children; (iv) for 120 tolerances, the EPA erroneously reduced the acute dietary risk posed by the pesticide by relying on data based on the estimated percentage of the crop treated with the pesticide; and (v) in violation of FIFRA, the EPA unlawfully relied on a confidential, proprietary computer model developed by the pesticide industry to conduct 118 organophosphate tolerance reassessments. On March 25, 2004, the district court granted a motion to intervene on behalf of an association of pesticide manufacturers and distributors and several of its member companies (the "CropLife Appellees"). All appellees moved to dismiss the amended complaint on the ground that the district court lacked subject matter jurisdiction because the language of Section 346a(h)(5) specifically precluded district court review of the NRDC Appellants' challenges. After holding that the disputed tolerance reassessments were final agency actions, the district court granted the motions to dismiss. It held that Section 346a(h) established an exclusive procedure for obtaining judicial review and confined such review to the courts of appeals. New York v. United States EPA, 350 F. Supp. 2d 429, 437-46 (S.D.N.Y. 2004). Judicial review in the district courts under the APA was therefore unavailable. More specifically, the court found that the language of Section 346a(h)(5): clearly demonstrates Congress's intent to preclude other avenues of review for determinations issued under the subsections to which it applies. Moreover, the provision's broad language, specifying that it covers "any issue as to which review is or was obtainable," indicates an intention to sweep in any challenge to an agency action that could have been appealed through the procedures it references, regardless of whether such internal review was actually pursued. That is, subsection [346a](h) explicitly applies not merely to cases in which administrative review was pursued, such that appellate review is obtainable under subsection [346a](h)(1), but also to cases in which such review was obtainable had the appropriate steps been taken. A litigant challenging an administrative decision governed by these provisions thus cannot, by skipping the internal review procedures of subsection [346a](g), avoid the jurisdiction of the Courts of Appeals and proceed instead to the District Courts under the APA, by arguing that, in the absence of an order under subsection [346a](g)(2)(C), subsection [346a](h)(1) is inapplicable. Id. at 438. The district court concluded that the NRDC Appellants could have challenged the EPA's reassessment decisions using the procedures of Section 346a(d)(1) -- i.e., by filing a petition to establish, modify, or revoke a tolerance -- setting in motion a chain of events leading to judicial review under Section 346a(h). Because "a determination to leave an existing tolerance in effect would be reviewable in exactly the same manner as any existing tolerance," "determinations made pursuant to subsection (q) to leave tolerances in place should [not] be treated any differently than decisions to modify or revoke them." Id. at 441. The district court also dismissed the NRDC Appellants' claims of jurisdiction under FIFRA. Id. at 446-47. The district court held that because Section 346a(h)(5) limited review "under any other provision of law," "FIFRA's grant of jurisdiction is irrelevant." Id. at 446. Because the NRDC Appellants "challenge the registration of pesticides under FIFRA only through their challenge to the tolerances set under the FDCA," FIFRA did not represent an independent source of jurisdiction in this case. Id. at 446. DISCUSSION a) Standard of Review "When reviewing a district court's Rule 12(b)(1) determination of its subject matter jurisdiction, we review factual findings for clear error and legal conclusions de novo." Wake v. United States, 89 F.3d 53, 57 (2d Cir. 1996) (citation and internal quotation marks omitted). Moreover "the court must take all facts alleged in the complaint as true and draw all reasonable inferences in favor of plaintiff." Sweet v. Sheahan, 235 F.3d 80, 83 (2d Cir. 2000). b) Judicial Review under the APA The APA provides that "[a] person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of a relevant statute, is entitled to judicial review thereof." 5U.S.C. § 702. This provision permits review of "final agency action for which there is no other adequate remedy in a court." Id. § 704. However, review under the APA may be excepted where: (i) "statutes preclude judicial review;" or (ii) "agency action is committed to agency discretion by law." Id. § 701(a). These exceptions are construed narrowly and apply only if there is "clear and convincing evidence of legislative intention to preclude review." Japan Whaling Ass'n v. Am. Cetacean Soc'y, 478 U.S. 221, 230 n.4 (1986); see also Abbott Labs. v. Gardner, 387 U.S. 136, 141 & n.2 (1967), abrogated on other grounds by Califano v. Sanders,Try vLex for FREE for 3 days
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