Aberdeen & Rockfish R. Co. v. Students Challenging Regulatory Agency Procedures (SCRAP)

422 U.S. 289, 95 S. Ct. 2336, 45 L. Ed. 2d 191, 1975 U.S. LEXIS 114, 5 Envtl. L. Rep. (Envtl. Law Inst.) 20418, 7 ERC (BNA) 2009
CourtSupreme Court of the United States
DecidedJune 24, 1975
Docket73-1966
StatusPublished
Cited by211 cases

This text of 422 U.S. 289 (Aberdeen & Rockfish R. Co. v. Students Challenging Regulatory Agency Procedures (SCRAP)) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aberdeen & Rockfish R. Co. v. Students Challenging Regulatory Agency Procedures (SCRAP), 422 U.S. 289, 95 S. Ct. 2336, 45 L. Ed. 2d 191, 1975 U.S. LEXIS 114, 5 Envtl. L. Rep. (Envtl. Law Inst.) 20418, 7 ERC (BNA) 2009 (1975).

Opinions

Mr. Justice White

delivered the opinion of the Court.

The Nation’s railroads, the United States, and the Interstate Commerce Commission (ICC) appeal from the judgment of a three-judge federal court which set aside an ICC order terminating a general revenue proceeding without declaring unlawful certain rate increases filed by the Nation’s railroads with the ICC. The order directed the ICC to reopen the proceeding, prepare a better environmental impact statement under § 102 (2) (C) of the National Environmental Policy Act (NEPA), 83 Stat. 853, 42 U. S. C. §4332 (2)(C), hold hearings, and reconsider, in light of the new impact statement, its determination not to declare the rate increases applicable to recyclables1 unlawful.

The impact statement involved is that required by § 102 (2) of NEPA, 42 U. S. C. § 4332 (2), set out in the margin.2 The judgment was based on the three-judge [296]*296court’s view that the 150-printed-page impact statement prepared by the ICC in connection with the general revenue proceeding insufficiently considered certain environmental issues and thus failed to comply with the mandate of subsection (2)(C) of §102 of NEPA; and that failure of the ICC to hold hearings after preparing a draft of the statement violated the command of the statute that the statement “accompany the proposal [297]*297through the existing agency review processes.” Because we believe that the District Court erred in several respects, we reverse.

I

This lawsuit has a lengthy history, a brief summary of which is necessary to an understanding of the issues presented by this appeal. In December 1971, citing sharply increasing costs and decreasing or negative profits, substantially all of the Nation’s railroads collectively proposed to file tariffs increasing their freight rates by 2.5 % across the board. The “surcharge” was stated to be temporary and was to be followed by a filing for larger, somewhat selective rate increases. Finding that the railroads had a critical and immediate need for revenue, the ICC declined to exercise its power to suspend proposed rate increases under 24 Stat. 384, as amended, 49 U. S. C. § 15 (7), and the surcharge became effective on February 5, 1972. On March 17, 1972, the railroads filed their selective-increase proposal, which would result in an average increase across the board of 4.1% over the rates antedating the surcharge — these new selective increases to become effective on May 1, 1972. Meanwhile, the ICC had directed the railroads to file an environmental impact statement with respect to the rate increases and to serve it on interested parties. This was done on January 3, 1972, and those served included appellee SCRAP. Numerous comments were received in response to this statement. On April 24, 1972, the ICC suspended the effectiveness of the selective increases for the maximum allowable seven-month period under 49 U. S. C. § 15 (7), until November 30, 1972, pending its investigation, styled Ex parte @81, into their lawfulness. On March 6, 1972, the ICC served a brief draft environmental impact statement of its own on all parties to Ex parte @81, including appellees and the Council on Environmental Quality [298]*298(CEQ), the Environmental Protection Agency (EPA), and the Department of Transportation. The statement discussed environmental consequences of rate increases with respect to recyclables in general terms and concluded that the ICC had no basis yet to believe that the environment would be substantially affected thereby.

Thereafter, while the selective rates were suspended but the surcharge was being collected, a group of law students — (SCRAP)—and other environmental groups filed the instant lawsuit alleging that the ICC had made a decision not to suspend the 2.5% surcharge pending its investigation — which decision would have a substantial effect on the environment — without preparing an environmental impact statement or considering environmental issues, as required by the NEPA. Appellees claimed that the pre-existing rate structure discriminated against recyclables and in favor of virgin materials, and that the across-the-board rate surcharge exacerbated this situation with the unfortunate consequence to the environment that use of recyclable materials would be inhibited and use of virgin materials encouraged. The complaint sought to compel the ICC to suspend the rate surcharge and to enjoin the railroads from collecting it.

A three-judge court was therefore convened under 28 U. S. C. § 2325, which has since been repealed. Relief was granted. On direct appeal under 28 U. S. C. § 1253, this Court reversed, holding that under the doctrine of Arrow Transportation Co. v. Southern R. Co., 372 U. S. 658 (1963), 49 U. S. C. § 15 (7) lodges in the ICC exclusive power to suspend rate increases pending final determination of their lawfulness. United States v. SCRAP, 412 U. S. 669 (1973) (SCRAP I).

Meanwhile, on October 4, 1972, the ICC issued a final report dated September 27, 1972, declining, in the main, [299]*299to declare unlawful the selective rate increases, and terminating the suspension order previously entered. The surcharge was canceled, those increases having been subsumed in the selective increases. The report, which was prepared after extensive written responses to the draft environmental impact statement had been submitted by various Government and nongovernment agencies and after oral hearings had been held, covers 92 printed pages, 17 of which deal with the question whether the railroads were in need of additional revenue; 15 of which deal with general environmental consequences which might flow from the increases; and 36 of which deal with the environmental consequences to flow from specific increases in rates on specific recyclable materials.

The report noted that the “principal issue” in a general revenue proceeding is whether the railroads are in need of additional revenue; and concluded that the railroads had demonstrated overwhelmingly that they were. It then stated that there were two possible adverse affects on the environment which might flow from failure to declare the increases unlawful. First, the increase in rail rates might divert traffic to trucks, which are allegedly heavier polluters than trains. Second, the increase in rates for recyclables might discourage their use resulting in increased solid waste — disposal of which creates environmental problems — and an accelerated depletion of the country’s natural resources.

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422 U.S. 289, 95 S. Ct. 2336, 45 L. Ed. 2d 191, 1975 U.S. LEXIS 114, 5 Envtl. L. Rep. (Envtl. Law Inst.) 20418, 7 ERC (BNA) 2009, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aberdeen-rockfish-r-co-v-students-challenging-regulatory-agency-scotus-1975.