Center for Biological Diversity v. U.S. Intl. Dev. Finance Corp

77 F.4th 679
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 7, 2023
Docket22-5095
StatusPublished
Cited by9 cases

This text of 77 F.4th 679 (Center for Biological Diversity v. U.S. Intl. Dev. Finance Corp) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Center for Biological Diversity v. U.S. Intl. Dev. Finance Corp, 77 F.4th 679 (D.C. Cir. 2023).

Opinion

United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued March 16, 2023 Decided July 7, 2023

No. 22-5095

CENTER FOR BIOLOGICAL DIVERSITY, ET AL., APPELLANTS

v.

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION, APPELLEE

Appeal from the United States District Court for the District of Columbia (No. 1:21-cv-01491)

William J. Snape, III argued the cause for appellants. With him on the briefs was Margaret A. Coulter.

Michelle Harrison was on the brief for amicus curiae Accountability Counsel in support of appellants.

Nicholas S. Crown, Attorney, U.S. Department of Justice, argued the cause for appellee. On the brief were Brian M. Boynton, Principal Deputy Assistant Attorney General, and Mark B. Stern and Samantha L. Chaifetz, Attorneys.

Before: MILLETT, PILLARD, and CHILDS, Circuit Judges. 2 Opinion for the Court filed by Circuit Judge CHILDS.

CHILDS, Circuit Judge: The Sunshine Act’s “agency” definition only encompasses those with a majority of Board members whom the President appoints, and the Senate confirms, to such position. Government in the Sunshine Act (Sunshine Act), Pub. L. No. 94-409, 90 Stat. 1241, 1241 (1976) (codified at 5 U.S.C. § 552b(a)(1)). For years, the Center for Biological Diversity, Friends of the Earth, and the Center for International Environmental Law (collectively, CBD) enjoyed the sunlight from the Sunshine Act’s application to the Overseas Private Investment Corporation (OPIC). It provided CBD, with, among other things, notice, transcripts, and minutes of OPIC’s various meetings. See 5 U.S.C. § 552b(e)(1)–(f)(2).

But in 2018, Congress arguably switched off OPIC’s lights. By statute, it reorganized OPIC into the International Development Finance Corporation (DFC). Relative to its OPIC predecessor, Congress shrunk DFC’s Board of Directors (the Board) from fifteen members to nine. DFC’s Chief Executive Officer (CEO) serves by virtue of their appointment to DFC instead of to the Board itself, like four other Board members appointed to other agencies. Thus, DFC thought its Board majority was composed only of ex officio members. Accordingly, it promulgated a rule exempting itself from the Sunshine Act without notice-and-comment.

CBD sued. The district court granted DFC’s motion to dismiss, deciding that: CBD had informational standing, DFC was not subject to the Sunshine Act, and it was harmless error for DFC to promulgate a rule without notice-and-comment. We affirm. 3 We first hold that CBD clearly had informational standing under Federal Election Commission v. Akins, 524 U.S. 11, 19– 21 (1998), because the information it statutorily sought is from the agency itself. Next, we hold that the Sunshine Act does not apply to DFC because a majority of its Board members serves ex officio by virtue of their appointments to other positions. Finally, we hold that CBD’s claim that DFC violated the Administrative Procedure Act (APA) by not engaging in notice-and-comment rulemaking fails because CBD did not demonstrate any prejudice arising from the asserted APA violation distinct from the legal question of Sunshine Act compliance.

I.

A.

In 1976, Congress enacted the Sunshine Act to ensure that multi-member federal agencies hold their deliberations open and accessible to the public. See Common Cause v. Nuclear Regul. Comm’n, 674 F.2d 921, 928 (D.C. Cir. 1982). The Sunshine Act requires that every “meeting” of a covered “agency” be conducted publicly, with only a few exceptions. See 5 U.S.C. § 552b(b), (c). But it only applies to “any agency . . . headed by a collegial body composed of two or more individual members, a majority of whom are appointed to such position by the President with the advice and consent of the Senate . . . .” Id. § 552b(a)(1) (emphasis added).

Until 2018, OPIC was a United States government agency that complied with the Sunshine Act. Foreign Assistance Act of 1969, Pub. L. No. 91-175, 83 Stat. 805, 810 (1969) (codified as amended in 22 U.S.C. § 2191 et seq.) (repealed 2018); see also 22 C.F.R. § 708 (1977). OPIC’s primary mission was to provide financing to support private-sector investment in 4 developing countries and emerging markets. CONG. RSCH. SERV., IF10659, OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC) 1 (2017). With fifteen Board members, eight of whom were appointed by the President and confirmed by the Senate to the Board itself, the Sunshine Act applied to OPIC. 22 U.S.C. § 2193(b) (repealed 2018). In the 2018 BUILD Act, however, Congress combined OPIC with the Development Credit Authority (DCA) of the United States Agency for International Development to create DFC. 85 Fed. Reg. 20,423, 20,423/1 (Apr. 13, 2020); see also Better Utilization and Investments Leading to Development Act (BUILD Act), Pub. L. No. 115-254, div. F, 132 Stat. 3485, 3485-519 (2018) (codified as amended at 22 U.S.C. §§ 9601– 9689).

DFC’s Board contains nine members. With Senate confirmation, the President appoints four out of DFC’s nine Board members to the Board itself. 22 U.S.C. § 9613(b)(2)(A). Four other Board members serve by virtue of their appointment and confirmation to other offices. That includes the Secretary of State, the Administrator of the United States Agency for International Development, the Secretary of Treasury, and the Secretary of Commerce. Id. § 9613(b)(2)(B). As for DFC’s CEO, the last remaining Board member, they are only appointed “in the Corporation.” Id. § 9613(d)(1).

On April 13, 2020, DFC promulgated a rule (Sunshine Act Rule) that exempted itself from Sunshine Act compliance without notice-and-comment. Compl. ¶ 9, J.A. 27; 85 Fed. Reg. 20,423, 20,423/1–2 (Apr. 13, 2020). In the rule, the agency stated that “the Sunshine Act . . . is not applicable to DFC,” 85 Fed. Reg. 20,423, 20,423/1 (Apr. 13, 2020), because “[o]nly four of the nine DFC board members are appointed by the President with the advice and consent of the Senate solely for the purpose of serving on DFC’s Board.” Id. at 20,423/2. 5 Thus, the majority of its Board serves ex officio, that is by virtue of the Board members’ appointments either to a non- Board position within the same agency or other agencies.

B.

DFC’s conclusion was guided by an opinion and a letter from the Department of Justice’s Office of Legal Counsel (OLC). Letter from Liam P. Hardy, Deputy Assistant Att’y Gen., Dep’t of Justice, to Kevin L. Turner, Vice President & Gen. Counsel, DFC (Feb. 25, 2020) [hereinafter 2020 O.L.C. Ltr.]; Whether the Millennium Challenge Corporation is Subject to the Open Meeting Requirements of the Sunshine Act, 37 Op. O.L.C. 27, 27–32 (2013) [hereinafter 2013 O.L.C. Op.]. The 2013 OLC opinion related to a different agency posing a similar Sunshine Act issue: the Millennium Challenge Corporation (MCC). 2013 O.L.C. Op. 27. The 2020 OLC letter concerned DFC, which had solicited OLC’s view.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
77 F.4th 679, Counsel Stack Legal Research, https://law.counselstack.com/opinion/center-for-biological-diversity-v-us-intl-dev-finance-corp-cadc-2023.