Scenic America, Inc. v. United States Department of Transportation

836 F.3d 42, 2016 U.S. App. LEXIS 16330, 2016 WL 4608153
CourtCourt of Appeals for the D.C. Circuit
DecidedSeptember 6, 2016
Docket14-5195
StatusPublished
Cited by83 cases

This text of 836 F.3d 42 (Scenic America, Inc. v. United States Department of Transportation) 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
Scenic America, Inc. v. United States Department of Transportation, 836 F.3d 42, 2016 U.S. App. LEXIS 16330, 2016 WL 4608153 (D.C. Cir. 2016).

Opinion

WILKINS, Circuit Judge:

The Highway Beautification Act (“HBA”), 23 U.S.C. §131, requires the Federal Highway Administration (“FHWA”) and each state to develop and implement individual federal-state agreements (“FSAs”), detailing, among other things, “size, lighting and spacing” standards for the billboards now found towering over many of our country’s interstate highways. One of those adopted standards, included in most states’ FSAs, prohibits those states from erecting.any billboard with “flashing, intermittent or moving” lights (the “FSA lighting standards”).

Plaintiff-Appellant Scenic America is a non-profit organization which “seeks to preserve and improve the visual character of America’s communities and countryside.” Compl. ¶ 7, J.A. 10. It challenges a guidance memorandum issued -by the FHWA in 2007, which interpreted that prohibition on “flashing, intermittent or moving” lights to permit state approval of those digital billboards that met certain timing and brightness requirements. Scenic argues that the guidance memorandum must be invalidated because it (1) was not promulgated using notice-and-comment procedures, and (2) violates the HBA, and was therefore promulgated “contrary to law” in violation of § 706 of the Administrative Procedure Act (“APA”), 5 U.S.C. §§ 551 et seq.

We hold that we lack jurisdiction to hear Scenic’s notice-and-comment claim because Scenic has failed to demonstrate that it has standing to' bring that challenge, and deny its § 706 claim on the merits.

I.

A.

In 1965, Congress enacted the Highway Beautification Act to control “the erection and maintenance of outdoor advertising signs, displays, and devices in areas adjacent to the Interstate System ... in order to protect the public investment in such highways, to promote the safety and recreational value of public travel, and to preserve natural beauty.” 23 U.S.C. § 131(a). The HBA penalizes those states that fail to maintain “effective control” over their advertising signs by permitting the Secretary of Transportation to reduce their federal highway funds by ten percent. Id. § 131(b).

To maintain effective control, each state is required to, among other things, negoti *46 ate an FSA with the Secretary that establishes standards for the “size, lighting and spacing” of billboards that come within 660 feet of the Interstate. Id. § 131(d). The HBA requires that those standards be “consistent with customary use.” Id. All fifty states entered into such FSAs, most of which were written in the 1960s and 1970s. See Scenic Am., Inc. v. U.S. Dep’t of Tramp. (Scenic II), 49 F.Supp.3d 53, 57 (D.D.C. 2014). FHWA regulations, promulgated under the HBA, require that states “[djevelop laws, regulations, and procedures” that implement the standards contained in each state’s FSA. 23 C.F.R. § 750.705(h). States must submit these laws, regulations, and procedures to the FHWA’s regional offices, known as Division Offices, for approval. Id. § 750.705(j). The FHWA has one Division Office located in each state.

Although each of the FSAs was individually negotiated, most contain similar terms. Nearly all of the FSAs contain a prohibition against “flashing,” “intermittent,” and “moving” lights. See, e.g., J.A. 120 (New York FSA); J.A. 131 (Colorado FSA); J.A. 139 (North Carolina FSA).

As billboard technology changed, states began considering or passing laws that permitted digital billboards to be displayed along the Interstate. See, e.g., J.A. 422-23 (letter from Indiana Department of Transportation to Indiana FHWA Division. Office informing the Division Office that Indiana had passed a law permitting certain digital billboards); J.A. 424 (letter from the Indiana FHWA Division Office to the Indiana Department of Transportation acknowledging the letter and agreeing that the digital billboards discussed in Indiana’s previous letter “do[ ] not constitute flashing, intermittent or moving lights”); J.A. 437 (letter from Arkansas Highway Commission to Arkansas FHWA Division Office noting new regulations permitting digital billboards); J.A. 183 (United States Department of Transportation memorandum discussing digital billboard in Nebraska). These billboards, sometimes referred to as “commercial electronic variable message signs” (“CEVMS”), typically use LED lights to display a static advertisement that remains on the screen for a specified period of time before quickly transitioning to a different static advertisement. Advertisements typically remain visible for around ten seconds, and usually take approximately two seconds to transition to the next ad.

The FHWA’s Division Offices differed on whether digital billboards complied with the FSA lighting standards. Compare, e.g., J.A. 424 (Indiana Division Office agreeing that digital billboards • “do[ ] not constitute flashing, intermittent or moving lights”), with, e.g., J.A. 263 (Texas Division Office stating that “[wjhile the technology for LED displays did not exist at the time of the [FSA], the wording in the [FSA] clearly prohibits such signs”). In 2007, the national FHWA office weighed in. It issued to its Division Offices a memorandum entitled “Guidance on Off-Premise Changeable Message Signs” (the “Guidance” or “2007 Guidance”), a portion of which stated as follows:

Proposed laws, regulations, and procedures that would allow permitting CEVMS subject to acceptable criteria (as described below) do not violate a prohibition against “intermittent” or “flashing” or “moving” lights as those terms are used in the various FSAs that have been entered into during the 1960s and 1970s.

J.A. 535. The FHWA went on to identify those “acceptable criteria” based on “certain ranges of acceptability that have been adopted in those States that do allow CEVMS.” J.A. 534, 537 (recommending, among other things, that each display generally remain static for between four and *47 ten seconds, and transition to a new display in one to four seconds).

According to a survey the FHWA distributed to states shortly before issuing the 2007 Guidance, many states with FSAs that included a ban on intermittent, flashing, or moving lights permitted digital billboards before the FHWA issued, the Guidance. J.A. 531-32. The Division Office for at least two states, Texas and Kentucky, did not permit digital billboards prior to the 2007 Guidance. See Scenic Am., Inc. v. U.S. Dep’t of Transp. (Scenic I), 983 F.Supp.2d 170, 179-80 (D.D.C. 2013). After the Guidance, Texas began to permit the use of digital billboards. Lloyd Decl. ¶ 9, J.A. 41.

B.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
836 F.3d 42, 2016 U.S. App. LEXIS 16330, 2016 WL 4608153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scenic-america-inc-v-united-states-department-of-transportation-cadc-2016.