Public Utility District No. 1 v. Bonneville Power Administration

947 F.2d 386
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 17, 1991
DocketNo. 89-70381
StatusPublished
Cited by1 cases

This text of 947 F.2d 386 (Public Utility District No. 1 v. Bonneville Power Administration) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Public Utility District No. 1 v. Bonneville Power Administration, 947 F.2d 386 (9th Cir. 1991).

Opinions

LEAVY, Circuit Judge:

The Pacific Northwest Electric Power Planning and Conservation Act, 16 U.S.C. § 839-839h (1988), commonly known as the Northwest Power Act (the Act), authorized the States of Idaho, Montana, Oregon and Washington to enter into an interstate compact to create a policy-making and planning body for the management of electrical power and the preservation of fish and wildlife in the Columbia River Basin. The Pacific Northwest Electric Power and Conservation Planning Council (the Council) resulted. 16 U.S.C. § 839b.

The Act directed the Council to develop a Columbia River Basin Fish and Wildlife Program (the Program). 16 U.S.C. § 839b(h)(l)(A). The Program is implemented by the Bonneville Power Administration (BPA), the Corps of Engineers, the Bureau of Reclamation, and the Federal Energy Regulatory Commission (FERC) and its licensees. See Columbia River Basin Fish and Wildlife Program, as amended Feb. 11, 1987, (1987 Program) at § 104.

As part of its Program, the Council adopted a water budget that provides for additional releases of water from federal dams each spring to facilitate the migration of juvenile salmon and steelhead to the ocean. 1987 Program at § 300. The water budget limits water releases to 140 kefs in that portion of the Columbia River upstream from the inflow of the Snake River, measured at Priest Rapids Dam. 1987 Program at § 302.

During the 1987 water budget period, the Corps of Engineers released in excess of 140 kefs from the reservoirs at the Grand Coulee and Chief Joseph Dams, which are upstream from the Snake River inflow. These releases were made pursuant to a request by the Fish Passage Center, an office established by the Council for the management and operation of the annual water budget. 1987 Program § 303(b). The additional water was needed to assist juvenile salmon and steelhead to reach the ocean because of unusually low flows in the Snake River. As a result of the increased flows, four of the five mid-Columbia non-federal hydroelectric dams were required to spill water because the flow rates exceeded the hydraulic capacity of available generators.

The Act entitles non-federal electric power projects on the Columbia River and its tributaries to compensation for monetary costs and power losses resulting from “measures to protect, mitigate, and enhance fish and wildlife” which are “impose[d]” on the non-federal projects by federal agencies and which are “not attributable to the development and operation of such project[.]” 16 U.S.C. § 839b(h)(ll)(A)(ii). In July 1987, the BPA received the first claims for compensation pursuant to the Act, for losses incurred as a result of the additional release of water that spring. Douglas County PUD claimed a loss of 2,087 megawatt hours of electricity; Chelan PUD claimed a loss of $195,870; and Grant PUD claimed a loss of $591,279. See Final Policy, 54 Fed.Reg. 31,074, 31,075 (1989). In 1989, the BPA negotiated settlements with these three PUDs. Douglas County PUD received 1,315 megawatt hours of energy; Chelan PUD received $163,134; and Grant PUD received $451,-495. Id.

A draft policy for handling future compensation claims was published for public comment in the Federal Register on June 10, 1988. 53 Fed.Reg. 21,888 (1988). The BPA received comments from numerous individuals and entities, including the PUDs and the intervenors. The policy was published in its final form on July 26, 1989. 54 Fed.Reg. 31,074 (1989). It was declared effective August 28, 1989. The Final Policy states that the claims of the Douglas County, Chelan, and Grant PUDs will not form a precedent for future compensation decisions. See Final Policy, 54 Fed.Reg., at 31,074 [hereinafter “Final Policy”].

At issue in this case are definitions provided by the BPA in the Final Policy; specifically, the definitions of “measure” and [390]*390“impose.” Those terms are found in that portion of the Act that provides for compensation to non-federal hydroelectric projects under certain circumstances:

The Administrator and other Federal agencies responsible for managing, operating, or regulating Federal or non-Federal hydroelectric facilities located on the Columbia River or its tributaries shall—
(ii) exercise such responsibilities, taking into account at each relevant stage of decisionmaking processes to the fullest extent practicable, the program adopted by the Council under this subsection. If, and to the extent that, such other Federal agencies as a result of such consideration impose upon any non-Federal electric power project measures to protect, mitigate, and enhance fish and wildlife which are not attributable to the development and operation of such project, then the resulting monetary costs and power losses (if any) shall be borne by the Administrator in accordance with this subsection.

16 U.S.C. § 839b(h)(ll)(A)(ii) (emphasis added).

The PUDs and intervenors contend the Final Policy adopted by the BPA for implementation of the Program is unreasonable and contrary to the Act because it improperly limits the meaning of “measure” and “impose” so as to nullify, or at least unreasonably restrict, compensation rights to which they otherwise would be entitled.

We have jurisdiction under 16 U.S.C. § 839f(e)(5).1 We affirm in part and reverse in part.

ANALYSIS

Standard of Review

Section 839f(e)(2) of the Act allows the BPA’s interpretation of the Act to be set aside if it is arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law; in excess of statutory jurisdiction, authority, or limitations; or short of statutory right. See 5 U.S.C. § 706(2)(A), (C) & (E) (1988). “This standard of review is highly deferential and assumes the agency action to be valid.” Department of Water & Power of Los Angeles v. Bonneville Power Admin., 759 F.2d 684, 690 (9th Cir.1985) (citations omitted). “We accord substantial deference to the interpretation given statutes by the officers or agencies charged with their administration.” Central Montana Elec. Power Coop., Inc. v. Administrator of the Bonneville Power Admin., 840 F.2d 1472, 1476 (9th Cir.1988); see Aluminum Co. of Am. v. Bonneville Power Admin., 903 F.2d 585, 590 (9th Cir.1989), cert. denied, — U.S. —, 111 S.Ct. 672, 112 L.Ed.2d 665 (1991). We defer to the BPA for three reasons: “First, the enabling legislation is highly technical and complex. Second, the agency was intimately involved in the drafting and consideration of the legislation, ... [and third] Congress has, for nearly half a century, monitored BPA performance in electricity regulation and allocation.” Department of Water & Power, 759 F.2d at 691;

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