HARRY T. EDWARDS, Circuit Judge:
The petitions for review in this case arise out of an adjudicatory proceeding before the Nuclear Regulatory Commission (“NRC” or “Commission”) concerning proposed amendments to the license of Nuclear Fuel Services, Inc., a facility in Erwin, Tennessee (“NFS-Erwin”) that produces a special nuclear fuel used by the Navy. Petitioner Natural Resources Defense Council, Inc. (“NRDC”) requested a full adjudicatory hearing on the license amendments, as provided for in the NRC regulations at that time. In response, the Commission promulgated, without notice and comment, an immediately effective rule authorizing the use of alternative hearing procedures for matters involving “military and foreign affairs functions.” The Commission simultaneously issued an order granting NRDC’s hearing request but providing, under the new “military functions” rule, only a “legislative” type of hearing with limited procedural rights.
NRDC has petitioned for review of both the Commission’s adoption of the “military functions” rule and its simultaneous application of the rule to the NFS-Erwin proceeding. NRDC contends that: (1) the “military functions” rule is invalid because it was initially promulgated without notice and comment; (2) the rule cannot be applied to the ongoing NFS-Erwin proceeding because it would substantially prejudice NRDC by eliminating its rights to,
inter alia,
cross-examination and discovery; and (3) the rule cannot properly be applied to
the NFS-Erwin proceeding because that proceeding does not involve “military or foreign affairs functions.” As explained in greater detail below, we conclude that none of these issues is properly before the court at this time. The first issue is now moot because the NRC has repromulgated the “military functions” rule in accordance with the notice and comment requirements of section 553 of the Administrative Procedure Act (“APA”), 5 U.S.C. § 553 (1976). The remaining two issues concern interlocutory actions by the Commission that are not yet subject to judicial review. Consequently, we dismiss the petitions so that the Commission may conclude the NFS-Erwin proceedings and reach a final decision on the proposed license amendments.
I. HISTORY OF THE PROCEEDINGS
Operating under a license issued by the NRC, the NFS-Erwin facility produces a special, highly enriched uranium fuel that is used in the nuclear reactors that power Navy nuclear vessels. Historically, NFS-Erwin has had difficulty meeting certain requirements in its license and in the NRC regulations for maintaining control over and accounting for special nuclear material.
See
10 C.F.R. § 70.51-.59 (1981). On more than one occasion the Commission has required the facility to shut down in order that a reinventory of its special nuclear materials might be conducted. This case has its genesis in a 1979 shutdown and reinventory of NFS-Erwin stemming from the inability of officials at the facility to account for amounts of nuclear material in excess of the limits specified in its license. After conducting an inquiry into the problems at NFS-Erwin, the Commission issued an order on January 21, 1980, J.A. 24, 109-11, authorizing the facility to resume operations under revised physical security measures and material control and accounting requirements. The order also amended the NFS-Erwin license by relaxing its reinven-tory and shutdown requirements, thereby increasing the permissible amounts of “unaccounted for” nuclear material in the facility.
On February 6, 1980, petitioner NRDC requested a hearing on the proposed license amendments, as provided for in the Atomic Energy Act of 1954
and in the NRC regulations. J.A. 29-64. At that time, the Commission regulations provided for full hearing procedures that included discovery and cross-examination.
See
10 C.F.R. § 2.740-.744 (1981). On June 26, 1980, however, the Commission promulgated, without notice and comment, an immediately effective rule allowing the agency to use alternative hearing procedures for matters involving “military and foreign affairs functions.” J.A. 178-89; 45 Fed.Reg. 45,-253 (July 3, 1980).
Essentially, the new rule incorporated the language of the “military and foreign affairs” exception to the formal adjudication requirements in the APA. 5 U.S.C. § 554(a)(4) (1976).
The Commission then issued an Order and a Notice of Hearing that granted NRDC’s hearing request but provided only a limited, “legislative” type hearing pursuant to the new “military functions” rule. J.A. 174-77, 190-93.
NRDC filed two petitions for review in this court. The petition in No. 80-1864 challenged the adoption and application by NRC of the “military functions” rule on the grounds that (1) it was unlawfully promulgated without the notice and comment procedures required by the APA, 5 U.S.C. § 553 (1976), and (2) it could not lawfully be applied to the ongoing NFS-Erwin proceeding because it would substantially prejudice NRDC by eliminating its rights to,
inter alia,
cross-examination and discovery. The petition in No. 80-1863 challenged the NRC order invoking the “military functions” rule to limit the procedures available to NRDC in the NFS-Erwin proceeding on the ground that the proceeding did not involve “military or foreign affairs functions” within the meaning of both section 554 of the APA and the NRC rule.
On September 29, 1980, a motions panel of this court granted NRDC’s motion in No. 80-1864 for a stay of both the “military functions rule” and the order granting NRDC a limited hearing under that rule.
On September 30,1981, the NRC initiated informal rulemaking proceedings to reconsider the “military functions” rule and its application to the NFS-Erwin proceeding. The Commission proposed a “military functions” rule that was essentially the same as the one it had previously issued. It asked for comments on whether the rule should be adopted in that form and on whether it should apply to ongoing proceedings in which a hearing already had been requested. 46 Fed.Reg. 47,799 (Sept. 30,1981). On January 26, 1982, the Commission adopted the “military functions” rule as proposed, with a section specifically making it applicable to ongoing proceedings. Supp.J.A. 91-106; 47 Fed.Reg. 4490 (Feb. 1, 1982) (to be codified at 10 C.F.R. § 2700a).
This court postponed consideration of the case while the NRC conducted its rulemak-ing.
Now that the Commission has completed that rulemaking, the NRDC petitions for review are once again before the court.
Free access — add to your briefcase to read the full text and ask questions with AI
HARRY T. EDWARDS, Circuit Judge:
The petitions for review in this case arise out of an adjudicatory proceeding before the Nuclear Regulatory Commission (“NRC” or “Commission”) concerning proposed amendments to the license of Nuclear Fuel Services, Inc., a facility in Erwin, Tennessee (“NFS-Erwin”) that produces a special nuclear fuel used by the Navy. Petitioner Natural Resources Defense Council, Inc. (“NRDC”) requested a full adjudicatory hearing on the license amendments, as provided for in the NRC regulations at that time. In response, the Commission promulgated, without notice and comment, an immediately effective rule authorizing the use of alternative hearing procedures for matters involving “military and foreign affairs functions.” The Commission simultaneously issued an order granting NRDC’s hearing request but providing, under the new “military functions” rule, only a “legislative” type of hearing with limited procedural rights.
NRDC has petitioned for review of both the Commission’s adoption of the “military functions” rule and its simultaneous application of the rule to the NFS-Erwin proceeding. NRDC contends that: (1) the “military functions” rule is invalid because it was initially promulgated without notice and comment; (2) the rule cannot be applied to the ongoing NFS-Erwin proceeding because it would substantially prejudice NRDC by eliminating its rights to,
inter alia,
cross-examination and discovery; and (3) the rule cannot properly be applied to
the NFS-Erwin proceeding because that proceeding does not involve “military or foreign affairs functions.” As explained in greater detail below, we conclude that none of these issues is properly before the court at this time. The first issue is now moot because the NRC has repromulgated the “military functions” rule in accordance with the notice and comment requirements of section 553 of the Administrative Procedure Act (“APA”), 5 U.S.C. § 553 (1976). The remaining two issues concern interlocutory actions by the Commission that are not yet subject to judicial review. Consequently, we dismiss the petitions so that the Commission may conclude the NFS-Erwin proceedings and reach a final decision on the proposed license amendments.
I. HISTORY OF THE PROCEEDINGS
Operating under a license issued by the NRC, the NFS-Erwin facility produces a special, highly enriched uranium fuel that is used in the nuclear reactors that power Navy nuclear vessels. Historically, NFS-Erwin has had difficulty meeting certain requirements in its license and in the NRC regulations for maintaining control over and accounting for special nuclear material.
See
10 C.F.R. § 70.51-.59 (1981). On more than one occasion the Commission has required the facility to shut down in order that a reinventory of its special nuclear materials might be conducted. This case has its genesis in a 1979 shutdown and reinventory of NFS-Erwin stemming from the inability of officials at the facility to account for amounts of nuclear material in excess of the limits specified in its license. After conducting an inquiry into the problems at NFS-Erwin, the Commission issued an order on January 21, 1980, J.A. 24, 109-11, authorizing the facility to resume operations under revised physical security measures and material control and accounting requirements. The order also amended the NFS-Erwin license by relaxing its reinven-tory and shutdown requirements, thereby increasing the permissible amounts of “unaccounted for” nuclear material in the facility.
On February 6, 1980, petitioner NRDC requested a hearing on the proposed license amendments, as provided for in the Atomic Energy Act of 1954
and in the NRC regulations. J.A. 29-64. At that time, the Commission regulations provided for full hearing procedures that included discovery and cross-examination.
See
10 C.F.R. § 2.740-.744 (1981). On June 26, 1980, however, the Commission promulgated, without notice and comment, an immediately effective rule allowing the agency to use alternative hearing procedures for matters involving “military and foreign affairs functions.” J.A. 178-89; 45 Fed.Reg. 45,-253 (July 3, 1980).
Essentially, the new rule incorporated the language of the “military and foreign affairs” exception to the formal adjudication requirements in the APA. 5 U.S.C. § 554(a)(4) (1976).
The Commission then issued an Order and a Notice of Hearing that granted NRDC’s hearing request but provided only a limited, “legislative” type hearing pursuant to the new “military functions” rule. J.A. 174-77, 190-93.
NRDC filed two petitions for review in this court. The petition in No. 80-1864 challenged the adoption and application by NRC of the “military functions” rule on the grounds that (1) it was unlawfully promulgated without the notice and comment procedures required by the APA, 5 U.S.C. § 553 (1976), and (2) it could not lawfully be applied to the ongoing NFS-Erwin proceeding because it would substantially prejudice NRDC by eliminating its rights to,
inter alia,
cross-examination and discovery. The petition in No. 80-1863 challenged the NRC order invoking the “military functions” rule to limit the procedures available to NRDC in the NFS-Erwin proceeding on the ground that the proceeding did not involve “military or foreign affairs functions” within the meaning of both section 554 of the APA and the NRC rule.
On September 29, 1980, a motions panel of this court granted NRDC’s motion in No. 80-1864 for a stay of both the “military functions rule” and the order granting NRDC a limited hearing under that rule.
On September 30,1981, the NRC initiated informal rulemaking proceedings to reconsider the “military functions” rule and its application to the NFS-Erwin proceeding. The Commission proposed a “military functions” rule that was essentially the same as the one it had previously issued. It asked for comments on whether the rule should be adopted in that form and on whether it should apply to ongoing proceedings in which a hearing already had been requested. 46 Fed.Reg. 47,799 (Sept. 30,1981). On January 26, 1982, the Commission adopted the “military functions” rule as proposed, with a section specifically making it applicable to ongoing proceedings. Supp.J.A. 91-106; 47 Fed.Reg. 4490 (Feb. 1, 1982) (to be codified at 10 C.F.R. § 2700a).
This court postponed consideration of the case while the NRC conducted its rulemak-ing.
Now that the Commission has completed that rulemaking, the NRDC petitions for review are once again before the court. As hereafter explained, we conclude that considerations of mootness and finality prevent us from reaching the issues raised in those petitions.
II. MOOTNESS
NRDC continues to press its argument that the NRC promulgated its “military functions” rule in violation of the notice and comment requirements of section 553 of the APA. In light of the Commission’s repromulgation of the rule after providing notice and opportunity for comment, we conclude that this issue is now moot.
The “judicial Power” under Article III extends only to “Cases” and “Controversies.” U.S.Const. art. Ill, § 2. We therefore lack jurisdiction to pass upon a question in the absence of a “justiciable” controversy. The Supreme Court has made it clear that “no justiciable controversy is presented . . . when the parties are asking for an advisory opinion, [or] when the ques
tion sought to be adjudicated has been mooted by subsequent developments .... ”
Flast v. Cohen,
392 U.S. 83, 95, 88 S.Ct. 1942, 1949, 20 L.Ed.2d 947 (1968) (footnotes omitted). Corrective action by an agency is one type of subsequent development that can moot a previously justiciable issue.
See, e.g., Commissioner v. Shapiro,
424 U.S. 614, 622-23 n.7, 96 S.Ct. 1062, 1068 n.7, 47 L.Ed.2d 278 (1976) (IRS’s proper service of new notice of deficiency and new notices of levy moots question whether previous levies and notice of deficiency were procedural!y defective under applicable statute);
Sannon v. United States,
631 F.2d 1247, 1250-51 (5th Cir. 1980) (case can be mooted by amendment of regulations or promulgation of new regulations providing relief requested).
NRDC has maintained that the promulgation by NRC of the “military functions” rule was unlawful because it deprived NRDC and other members of the public of the right to participate in the rulemaking process by not providing notice and an opportunity to comment on the rule. The Commission undeniably provided that opportunity, however, when it repromulgated the rule in accordance with the requirements of section 553 of the APA. Petitioner does not contend that there was any infirmity in the Commission’s repromulgation of the rule; rather, it continues to focus its attack on the initial adoption of the rule without notice and comment. Even if this attack was originally well-founded, we can hardly order the NRC at this point to do something that it has already done. As to this issue, NRDC
has obtained everything that it could recover ... by a judgment of this court in its favor. The duty of this court, as of every judicial tribunal, is limited to determining rights of persons or of property, which are actually controverted in the particular case before it. . . . But the court is not empowered to decide moot questions or abstract propositions, or to declare, for' the government of future cases, principles or rules of law which cannot affect the result as to the thing in issue in the case before it.
California
v.
San Pablo & Tulare Railroad,
149 U.S. 308, 314,13 S.Ct. 876, 878, 37 L.Ed. 747 (1893).
In effect, NRDC seeks a decla
ration from this court that the initial promulgation of the rule was unlawful, an advisory opinion which federal courts cannot provide.
III. FINALITY
NRDC vigorously presses its arguments that the NRC cannot apply the new “military functions” rule in the NFS-Erwin proceeding because no military functions are involved and because applying it in that proceeding would substantially prejudice NRDC. Our jurisdiction to review the NRC actions, however, is limited. Section 189(b) of the Atomic Energy Act of 1954, 42 U.S.C. § 2239(b) (1976), provides only for judicial review of “[a]ny final order” entered by the NRC in any proceeding “for the granting, suspending, revoking, or amending of any license .. .. ”
Id.
§ 2239(a). Under the corresponding jurisdictional provision, 28 U.S.C. § 2342(4) (1976), the court of appeals has exclusive jurisdiction to review “all final orders of the Atomic Energy Commission [now the Nuclear Regulatory Commission] made reviewable by section 2239 of title 42 ....”
Consequently, even if the parties agree that the issues raised are properly before the court, these review provisions mandate a jurisdictional inquiry into the finality of the agency actions being challenged.
Citizens for a Safe Environment v. Atomic Energy Commission,
489 F.2d 1018, 1020 (3d Cir. 1974).
Courts exercising jurisdiction under 28 U.S.C. § 2342 have narrowly construed the term “final order.” An order is final if it “imposes an obligation, denies a right, or fixes some legal relationship, usually at the consummation of an administrative process.”
Honicker v. NRC,
590 F.2d 1207, 1209 (D.C.Cir.1978),
cert, denied,
441 U.S. 906, 99 S.Ct. 1995, 60 L.Ed.2d 374 (1979);
accord, Illinois Citizens Committee for Broadcasting v. FCC,
515 F.2d 397, 402 (D.C.Cir.1975). “Normally in an adjudication a final order is one that disposes of all issues as to all parties. Viewed in this light a final order in a licensing proceeding under [42 U.S.C.] § 2239(a) would be an order granting or denying a license.”
Citizens for a Safe Environment v. Atomic Energy Commission,
489 F.2d 1018, 1021 (3d Cir. 1974) (citation omitted);
cf. Western Union International, Inc. v. FCC,
652 F.2d 136, 143 (D.C.Cir.1980) (“quintessential reviewable order” in rate proceeding is determination regarding the justness and reasonableness of proposed rates). Strictly interpreted, then, a final order in the adjudicatory proceedings in this case would be a decision on the license amendments challenged by NRDC. Obviously, the NRC has yet to issue such a final order.
While an agency
order in certain circumstances “may be ‘final’ even if it is not the last that may be entered,”
Ecology Action v. Atomic Energy Commission,
492 F.2d 998, 1000 (2d Cir. 1974),
the agency action challenged by NRDC in this case marks the very beginning of the adjudicatory process. Orders concerning the initiation of adjudicatory proceedings are generally viewed as interlocutory.
E.g., Western Union International, Inc. v. FCC,
652 F.2d 136, 144 (D.C.Cir. 1980) (FCC acceptance of a tariff not a final order because it “marks only the initiation of a proceeding in which the Commission might resolve satisfactorily all the claims of the parties”);
Gifford-Hill & Co. v. FTC,
523 F.2d 730, 732-33 (D.C.Cir.1975) (FTC decision to initiate proceeding against company is interlocutory).
Essentially, NRDC’s arguments challenge the decision of the Commission to limit the procedures available in the NFS-Erwin proceeding by invoking the “military functions” rule.
Ordinarily, however, “[a]n agency’s procedural or evidentiary rulings in the course bf a proceeding do not constitute a final order justifying judicial review except in extreme instances where the action is held to constitute an effective deprivation of appellant’s rights.”
Thermal Ecology Must Be Preserved v. Atomic Energy Commission,
433 F.2d 524, 526 (D.C.Cir. 1970).
Limiting at the outset the procedures available to petitioner in the NFS-Erwin proceeding does not constitute such an “extreme instance” justifying immediate judicial review.
Most importantly, the availability of relief on review of a final order in the license proceeding dictates against judicial review at this time.
E.g., Ecology Action,
492 F.2d at 1001;
Citizens for a Safe Environment,
489 F.2d at 1022;
Thermal Ecology,
433 F.2d at 526.
NRDC’s claims concerning the application of the “military functions” rule can be raised and addressed upon judicial review of a final NRC decision on the NFS-Erwin license amendments.
We are aware that deferring review until there has been a final agency decision may necessitate additional administrative proceedings if we find that the NRC improperly applied the “military functions” rule. That risk, however, is inherent in a system of judicial review that is limited to final orders. It cannot justify reviewing agency action that is otherwise interlocutory.
Moreover, while deferring review until the NRC issues a final order entails á risk of requiring additional administrative proceedings, it nonetheless has significant practical advantages. First, it is possible
that NRDC will obtain the relief it seeks from the agency, thereby avoiding judicial review entirely.
See Western Union International, Inc. v. FCC,
652 F.2d 136, 144 (D.C.Cir.1980). Second, if NRDC does not obtain the relief it seeks; it is likely to challenge the merits of the NRC decision on the license amendments in addition to renewing its arguments concerning application of the “military functions” rule. By deferring review now, the court may be able to consider all such issues in a single review proceeding. Finally, waiting until the NRC has completed the license proceeding will give the court the benefit of a fully developed factual record.
See id.
at 145. NRDC’s contention that applying the “military functions” rule to an ongoing proceeding would substantially prejudice NRDC is not a purely legal question that can easily be decided in the abstract.
On the contrary, by waiting until the administrative proceedings have been completed, the court can determine whether the limited, “legislative” hearing offered by the NRC in fact substantially prejudiced NRDC.
Similarly, the court will benefit from a more developed factual record in deciding whether the NFS-Erwin proceeding actually involves military functions. Indeed, it would be foolhardy for this court to reach out to decide this issue of virtual first impression on the basis of an incomplete factual record.
We are unpersuaded by NRDC’s contention that the hearing will produce little additional relevant information on the “military functions” question. In our view, the opposite result is more likely because the agency has every incentive to develop a sound factual record to support whatever final judgment it may reach in this case.
For the reasons set forth above, we conclude that the NRC determination that the NFS-Erwin proceeding involves “military functions” and its decision to limit the procedures in that adjudication pursuant to the “military functions” rule do not constitute final agency action that is subject to judicial review.
IV. CONCLUSION
NRDC’s contention that the “military functions” rule was invalidly promulgated has been mooted by the agency’s repromul-gation of the rule in accordance with the requirements of section 553 of the APA.
NRDC has also challenged the application of the rule by NRC to limit the procedures available in the NFS-Erwin proceeding. That decision, however, is not final agency action subject to judicial review. Consequently, we dismiss both petitions for review.
So ordered.