Sayles Hydro Associates v. Maughan

985 F.2d 451, 1993 WL 17730
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 1, 1993
DocketNo. 91-15934
StatusPublished
Cited by17 cases

This text of 985 F.2d 451 (Sayles Hydro Associates v. Maughan) 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
Sayles Hydro Associates v. Maughan, 985 F.2d 451, 1993 WL 17730 (9th Cir. 1993).

Opinion

KLEINFELD, Circuit Judge:

This case involves the scope of federal preemption of state regulatory authority under the Federal Power Act. The district court granted summary judgment to the federal licensees on the ground that Congress has occupied the field, and therefore the state lacks the power to do anything but determine proprietary water rights. The district judge thought that a recent decision of the Supreme Court, California v. FERC, 495 U.S. 490, 110 S.Ct. 2024, 109 L.Ed.2d 474 (1990), left room for no other conclusion. We agree, and affirm.

Keating and Sayles have a license from the Federal Energy Regulatory Commission to build and operate a small hydroelectric power project (a 130’ long, 8.4’ high dam, with a 2.3 acre reservoir) in a national forest in California. They could not operate it, because the California State Water Resources Control Board (State Board) would not issue a permit. Keating and Sayles sued for and won a declaratory judgment and injunction, which the members of the State Board now appeal.

No one else claims any conflicting water rights, and the Board knows of no impact the project would have on any prior water rights within the watershed. The problem has been that the State Board has required a shifting, expanding range of reports and studies, to assure that the project satisfies the State Board’s concerns regarding recreation, aesthetics, archaeology, sport fishing, and cultural resources, and that the project meets the State Board’s standards regarding cost of capital and estimated revenues.1 Most or all of these same concerns were addressed by the Federal Energy Regulatory Commission, which conditioned the license on compliance with numerous environmental requirements. Keating and the State Water Board have been working at these issues since 1980. The State Board and Keating have reached an impasse. He will not undertake any more studies, and the State Board will not hold hearings on his water rights application without them.

We review a grant of summary judgment de novo. Kruso v. Int’l Telephone & Telegraph Corp., 872 F.2d 1416, 1421 (9th Cir.1989), cert. denied, 496 U.S. 937, 110 S.Ct. 3217, 110 L.Ed.2d 664 (1990).

I. RIPENESS.

We would have no jurisdiction to decide the preemption controversy, were it not ripe. Pacific Gas & Electric Co. v. State Energy Resources Cons. and Dev. Comm., 461 U.S. 190, 200-203, 103 S.Ct. 1713, 1720-1722, 75 L.Ed.2d 752 (1983). The State Board argues that Sayles’ claim is premature. Because no permit requirements will be imposed by the State Board until the completion of the state water rights permit process, it argues that we cannot determine at this stage whether its requirements would conflict with federal requirements. This argument fails for two reasons. First, as we explain below, Congress has occupied the entire field, so preemption will not depend on whether the state requirements conflict with the federal requirements. Second, occupation of the field implies as a corollary that the state process itself, regardless of the results, is preempted.

As Sayles characterizes the State Board’s position,

a FERC licensee must jump through hoop after hoop that the State Board holds up, preparing environmental impact reports for the licensed project and additional environmental, economic, and other studies, regardless of the time and expense involved. If and when the licensee has jumped through the hoops to the State Board’s satisfaction, and if and when the State Board issues a permit, only then can the licensee argue that the State Board may not force the licensee to jump through the hoops or challenge binding conditions of the permit that are based on the analyses.

Appellee’s brief at 30.

Ripeness of an issue depends on two things, its current fitness for judicial deci[454]*454sion, and the hardship to the parties of withholding judicial consideration. Pacific Gas, 461 U.S. at 201, 103 S.Ct. at 1720-1721. The question of whether the Federal Power Act “occupies the field” and thereby preempts state law is “purely legal” and does not depend on what the State Board may do at the end of its process, so it is currently fit for judicial decision. Cf. Leslie Salt Co. v. Froehlke, 578 F.2d 742, 747 (9th Cir.1978). If Congress has “occupied the field,” anything the State Board does except for deciding proprietary water rights conflicts with federal law.

The hardship is the process itself. Process costs money. If a federal licensee must spend years attempting to satisfy an elaborate, shifting array of state procedural requirements, then he must borrow a fortune to pay lawyers, economists, accountants, archaeologists, historians, engineers, recreational consultants, environmental consultants, biologists and others, with no revenue, no near-term prospect of revenue, and no certainty that there ever will be revenue. Meanwhile, politics, laws, interest rates, construction costs, and costs of alternatives change. Undue process may impose cost and uncertainty sufficient to thwart the federal determination that a power project should proceed. As the Supreme Court explained in an analogous context, “[t]o require the industry to proceed without knowing whether the [state regulation] is valid would impose a palpable and considerable hardship on the utilities, and may ultimately work harm on the citizens of California.” Pacific Gas, 461 U.S. at 201-202, 103 S.Ct. at 1721.

II. PREEMPTION.

On its face, the language of the Federal Power Act is capable of different interpretations concerning the preemption issue. The statute authorizes the Federal Energy Regulatory Commission, formerly the Federal Power Commission, to issue licenses for dams to generate electrical power. 16 U.S.C. § 797(e). Yet state authority is preserved over control, appropriation, use and distribution of water:

Nothing contained in this chapter shall be construed as affecting or intending to affect or in any way to interfere with the laws of the respective States relating to the control, appropriation, use, or distribution of water used in irrigation or for municipal or other uses, or any vested right acquired therein.

16 U.S.C. § 821. We cannot, however, construe this statute on a blank slate. The Supreme Court has read the broadest possible negative pregnant into this “savings clause.” First Iowa Hydro-Electric Coop. v. Federal Power Comm’n, State of Iowa, 328 U.S. 152, 176, 66 S.Ct. 906, 917, 90 L.Ed. 1143 (1946). The rights reserved to the states in this provision are all the states get. The State Board before us in this case has litigated this very matter before the United States Supreme Court and lost. California v. FERC,

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

Related

County of Butte v. Dept. of Water Resources
California Court of Appeal, 2019
Hackett v. J.L.G. Properties, LLC
940 A.2d 769 (Supreme Court of Connecticut, 2008)
Ne Hub Partners, L.P. v. CNG Transmission Corp.
239 F.3d 333 (Third Circuit, 2001)
County of Amador v. El Dorado County Water Agency
91 Cal. Rptr. 2d 66 (California Court of Appeal, 1999)
Hawaii Newspaper Agency v. Bronster
103 F.3d 742 (Ninth Circuit, 1996)
Wisconsin Valley Improvement Co. v. Meyer
910 F. Supp. 1375 (W.D. Wisconsin, 1996)
Sayles Hydro Associates v. Maughan
985 F.2d 451 (Ninth Circuit, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
985 F.2d 451, 1993 WL 17730, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sayles-hydro-associates-v-maughan-ca9-1993.