Institute for Energy Research v. Department of the Treasury

CourtDistrict Court, District of Columbia
DecidedDecember 16, 2024
DocketCivil Action No. 2022-3653
StatusPublished

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Institute for Energy Research v. Department of the Treasury, (D.D.C. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

INSTITUTE FOR ENERGY RESEARCH,

Plaintiff,

v. No. 22-cv-03653 (DLF) DEPARTMENT OF THE TREASURY, et al.,

Defendants.

MEMORANDUM OPINION

Before the Court are the plaintiff’s Motion for Attorney’s Fees, Dkt. 22, and the

defendants’ Motion to Strike, Dkt. 25. For the reasons that follow, the Court will deny both

motions.

I. BACKGROUND

Plaintiff Institute for Energy Research (“IER”) submitted six Freedom of Information Act

(“FOIA”) requests to the Internal Revenue Service (“IRS”) in the fall of 2022. See Mielke Decl.

¶ 10, Dkt. 23-1. The plaintiff sought correspondence between IRS employees and certain lobbyists

and congressional staff members responsible for implementing the Inflation Reduction Act of

2022. Id. IRS received Requests 1, 2, and 3 between the end of October and mid-November 2022.

Id. The agency acknowledged receipt of Requests 1 and 3 and denied both requests under FOIA

exemption 3, for requesting statutorily exempt “third party return information.” Id. ¶¶ 5, 7 (citing

FOIA exemption 3(b)(3) and 26 U.S.C. § 6103(a)). IRS received Request 2 on November 4, 2022,

but the request was lost in transmission internally before being assigned to a disclosure specialist

for processing. Id. ¶ 6a. IER administratively appealed the denials of Requests 1 and 3. Id. ¶¶ 5d–e, 7d–e. On

December 1, 2022, IER counsel and IRS officials discussed the denials of Requests 1 and 3 on a

conference call. Id. ¶¶ 5e–f, 7e–f. On the call, IER counsel clarified the scope of its requests, but

the parties did not discuss the misplaced Request 2. See id. ¶ 6b; Compl. ¶ 30 n.1, No. 23-cv-102,

Dkt. 1.

IRS received Requests 4, 5, and 6 on December 3, 2022—a few days after the conference

call clarifying the scope of IER’s original requests. See Opp’n to Fees at 6, Dkt. 23. Requests 4,

5, and 6 were identical to Requests 1, 2, and 3, except that the new requests explicitly stated that

they did not seek information the agency had determined was categorically exempt from release

under FOIA. 1 See, e.g., Mielke Decl., Ex. D at 1, Dkt. 23-5 (“We seek correspondence on topics

other than taxpayer information.” (emphasis omitted)). The new requests also extended the search

timeframe. See Mielke Decl., Ex. A–F, Dkts. 23-2–23-7.

On December 6, 2022, IER counsel emailed IRS to follow up on the December 1

conference call and to reaffirm that the requests did not seek categorically exempt information.

Compl. ¶ 30 n.1, No. 23-cv-102. In that email, IER mentioned for the first time that the agency

had not responded to Request 2. Id. Aside from a brief parenthetical reference in that email, IER

did not otherwise inquire into the status of the misplaced Request 2. See id.; Mielke Decl. ¶ 6b.

IRS began processing Requests 4, 5, and 6 by assigning each to an IRS disclosure

specialist. Id. ¶ 8a. IRS did not raise any objections to these requests, as they explicitly clarified

that they did not seek any exempt information. On December 7, 2022, the assigned disclosure

specialist discussed Requests 4, 5, and 6 with her manager. Id. ¶ 8b. Because IER sought the

1 Each new request corresponded to a request from the first batch: Request 4 was materially identical to Request 1; Request 5 was materially identical to Request 2; and Request 6 was materially identical to Request 3. Compare Mielke Decl., Ex. A–C with id., Ex. D–F.

2 emails of the IRS Chief Counsel’s employees, and because IER was categorized as a “media”

requester, the disclosure specialist emailed the Chief Counsel’s office for advice on how to proceed

searching for responsive records. Id. Also on December 7, IER filed the instant suit against

defendants IRS and the Department of Treasury to compel the production of the documents sought

in Request 2. 2 On December 8th, IRS identified and notified the five Chief Counsel attorneys who

were potential custodians of records responsive to Requests 4, 5, and 6. Id. ¶ 8c. IRS received

service of IER’s lawsuit regarding Request 2 on December 8, 2022. 3 Stipulation, at 1, Dkt. 6.

After receiving the internal notifications about the requests, the five custodians began their

searches. Mielke Decl. ¶ 8f. One custodian began searching on December 9, 2022. Another began

on December 12th. Id. On December 16th, a disclosure support attorney in the Chief Counsel’s

office prepared search memoranda about Requests 4, 5, and 6, which were then forwarded to the

custodians. Id. ¶ 8e. The same day, another custodian conducted her search and submitted all her

responsive records. Id. ¶ 8f. Another custodian conducted a preliminary search around this time

but could not recall when exactly. Id. ¶ 8f.

On January 3, 2023, IRS notified IER that the agency would not be able to provide a

substantive response to Requests 4, 5, and 6 by the end of the 20 business-day response period.

Id. ¶ 8. The letter then invoked FOIA’s 10-day statutory extension to search for and collect the

requested records, which extended the deadline to January 18, 2023. Id. The letter stated that IRS

2 IER later filed suits for Requests 1 and 3, see No. 23-cv-102, and Requests 4, 5, and 6, see No. 23-cv-172. The Court consolidated these later cases with the original case regarding Request 2 under Federal Rule of Civil Procedure 42(a). See Minute Order of April 26, 2023; Joint Status Report of May 5, 2023, at 1, Dkt. 14. 3 The parties stipulated that, while the lawsuit was filed on December 7, 2022, service upon the U.S. Attorney’s Office and the agency-defendants “was made on December 8, 2022.” Stipulation, at 1, Dkt. 6.

3 expected to provide a final response by April 3, 2023, but noted that IER would be able to file suit

regarding Requests 4, 5, and 6 after the response deadline on January 18th. Id.

On January 13, 2023, IER filed suit to enforce Requests 1 and 3. See No. 23-cv-102. On

January 17th, another custodian began searching for records responsive to Requests 4, 5, and 6.

Mielke Decl. ¶ 8f. On January 20th, two days after the statutory deadline—which IRS previously

acknowledged it would miss—IER filed suit over Requests 4, 5, and 6. Id. ¶ 10.

Over the next few months, the government continued to receive, review, and process

additional responsive records from the agency custodians. Id. By mid-summer of 2023, the

disclosure specialist received the final batch of potentially responsive records. Id. ¶ 9. By mid-

September, IRS had reviewed 847 documents consisting of 3,455 pages and determined none of

the records were responsive. See Joint Status Report of September 13, 2023, Dkt. 17. In

November, IRS completed reviewing a total of 1,471 records—consisting of 5,638 pages—

identified as potentially responsive. See Joint Status Report of November 13, 2023, Dkt. 18. Of

those records, IRS determined only 44 were responsive—25 of which it released in full. Id. The

Department of Energy and Department of Treasury “had equities” in the remaining potentially

responsive records, which delayed processing while those agencies reviewed the records and

provided their views to IRS. Id. at 1–2; Mielke Decl. ¶ 9.

By January 16, 2024, IRS completed processing after it heard back from the other agencies

and produced all responsive, non-exempt records.

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