Consumer Energy Council of America v. Federal Energy Regulatory Commission

673 F.2d 425, 218 U.S. App. D.C. 34
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 29, 1982
DocketNos. 80-2184, 80-2312
StatusPublished
Cited by17 cases

This text of 673 F.2d 425 (Consumer Energy Council of America v. Federal Energy Regulatory Commission) 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
Consumer Energy Council of America v. Federal Energy Regulatory Commission, 673 F.2d 425, 218 U.S. App. D.C. 34 (D.C. Cir. 1982).

Opinion

Opinion for the Court filed by Circuit Judge WILKEY.

[42]*42OUTLINE OF OPINION

Page

I. Background------------------------------------------------434

A. Structure of the NOP A___________________________________ 434

B. Legislative History of Title II______________________________ 435

C. FERC’s Incremental Pricing Rules---------------------------436

D. The House Veto_________________________________________ 437

E. Rehearing Proceedings before the Commission-----------------438

II. Jurisdiction _______________________________________________ 439

III. Severability_______________________________________________ 440

IV. Mootness.................................................. 445

V. Constitutionality of the One-House Veto---------------------448

A. Federal Rulings on the Legislative Veto----------------------449

B. Political Question________________________________________ 451

C. The Necessary and Proper Clause___________________________ 454

D. The Constitutional Lawmaking Process-----------------------456

1. Exceptions to the requirements of Article I, Section 7 ------- 457

a. Legislative initiation of agency investigations-----------457

b. Presidential plans for executive reorganization----------458

c. Presidential foreign affairs and national defense decisions _ - 459

d. Congressional proposals for constitutional amendments____ 460

2. Purposes of the lawmaking procedures---------' —,-----r - - 461

a. Presentation to the President___________________ 461

b. Bicameralism__________________________________’— 464

3. The one-house veto under Article I, Section 7--------------> 464

E. Separation of Powers__________________________________— 470

1. Meaning of separation of powers ________________________ 471

2. Intrusion into the executive sphere_______________________ 472

a. Significance of FERC’s independence__________________ 472

b. Congressional disruption and control of the administrative process __________________________________________ 473

3. Intrusion into the judicial sphere_________________________ 477

F. Conclusion______________________________________________ 478

VI. Proceedings on Remand _____________________________________ 479

WILKEY, Circuit Judge:

Petitioners Consumer Energy Council of America, Consumer Federation of America, and Public Citizen (“CECA”) challenge the constitutionality of a legislative veto provision in the Natural Gas Policy Act of 1978 (“NGPA”).1 Title II of the NGPA directs the Federal Energy Regulatory Commission (“FERC”) to implement an “incremental pricing” program, which shifts part of the price increase resulting from the deregulation of new natural gas from residential users to industrial users. Phase I of the program directs the Commission to promulgate within one year a rule applying only to “boiler fuel use of natural gas by any industrial boiler fuel facility.”2 Phase II requires the Commission to issue within eighteen months a rule expanding the program to “any industrial facility which is within a category defined by the Commission” and not otherwise exempt.3 The statute provides, however, for the Phase II rule to take effect only if neither house of Congress adopts within thirty days a resolution disapproving the rule.4

FERC issued its Phase II rule on 6 May 1980, three days before the deadline. Two weeks later the House of Representatives voted its disapproval. CECA then filed a petition for rehearing asking the Commission to make the rule effective in spite of the House’s action, on the ground that the [43]*43one-house veto provision was unconstitutional. Refusing to pass on the constitutional question, the Commission denied the petition and revoked the Phase II rule. CECA sought review in this court, and also petitioned FERC for rehearing on the revocation order. This second petition was denied, and CECA filed another petition in this court. The two petitions for review were consolidated and are now before us.

FERC has not taken a position on petitioners’ constitutional claims, asserting that this court may dispose of the case on other grounds.5 It argues that the legislative veto provision is not severable from the provision authorizing the Commission to promulgate a Phase II rule, leaving petitioners with no claim for effective relief even if section 202(c) is declared unconstitutional. It also contends that the case is moot because the rule was properly revoked. The United States Senate and the Speaker of the House of Representatives have entered the case as amici curiae. In addition to supporting FERC’s position, they contend that this court lacks jurisdiction to hear the case, a contention both FERC and CECA dispute, and that the legislative veto provision is constitutional. The United States has also appeared as amicus curiae, taking the opposing view that the veto provision is unconstitutional. Finally, several industry groups have filed briefs as intervenors, arguing generally in favor of the positions of both FERC and Congressional amici.6

Having determined that we have jurisdiction and that the constitutional issue is properly presented, we hold that the one-house legislative veto provision in section 202(c) of the NGPA is unconstitutional. Accordingly, we reverse and remand the Commission’s orders and instruct it to reinstate the Phase II rule. The Commission is free, however, on its own motion and pursuant to the notice and comment requirements of the Administrative Procedure Act (“APA”),7 to consider amending the Phase II rule or changing its effective date.

I. BACKGROUND

A. Structure of the NGPA

Title I of the NGPA provides for the phased deregulation of natural gas prices. It sets allowable wellhead prices of gas considerably higher than under the cost-based system of rate regulation, and provides that “new” natural gas prices will be decontrolled on 1 January 1985.8 Title II of the Act provides for incremental pricing as a means of easing the transition to deregulation. Incremental pricing is a “mechanism for passing through to end users some of the increased prices for natural gas,” 9 so [44]*44that large industrial gas users will pay a disproportionate share of the increases in gas prices. The program’s goals are “to restrain the prices paid by pipelines for natural gas supplies, particularly after deregulation, and to protect residential consumers from higher prices resulting from deregulation.”10

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673 F.2d 425, 218 U.S. App. D.C. 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consumer-energy-council-of-america-v-federal-energy-regulatory-commission-cadc-1982.