Justia U.S. D.C. Circuit Court of Appeals Opinion Summaries

The union filed suit challenging the Authority's decision overturning an arbitrator's award in a dispute arising from a termination provision of a collective bargaining agreement (CBA).The DC Circuit granted the petition for review as to the Authority's disposition of the breach claim and denied the petition as to the Authority's disposition of the unfair labor practice claim. The court explained that, in vacating the arbitrator's breach determination, the Authority's thorough, substantive review failed to conform to the proper standard of review. The court explained that the Authority's sole inquiry under the proper standard of review should have been whether the arbitrator was even arguably construing or applying the CBA. However, the Authority engaged in a much more searching review of the arbitrator's decision than permitted by law. The court also held that the Authority's explanation of the unfair labor practice issue, although terse, was not arbitrary and capricious. In this case, the Authority reasonably applied its precedent to determine that the employer did not repudiate the CBA even if it breached it. The panel remanded for further proceedings. View "National Weather Service Employees Organization v. Federal Labor Relations Authority" on Justia Law

Hospitals and hospital associations filed suit challenging HHS's decision to reduce the reimbursement rates for 340B hospitals. The district court held that the rate cute exceeded HHS's statutory authority to adjust specified covered outpatient drugs (SCOD) rates.After determining that it had jurisdiction, the DC Circuit proceeded to the merits and held that HHS had statutory authority to impose its 28.5 percent cut to SCOD reimbursement rates for 340B hospitals. The court held that HHS reasonably interpreted 42 U.S.C. 1395l(t)(14)(A)(iii)(II)'s adjustment authority to enable reducing SCOD payments to 340B hospitals, so as to avoid reimbursing those hospitals at much higher levels than their actual costs to acquire the drugs. Applying Chevron deference, the court held that, at a minimum, the statute does not clearly preclude HHS from adjusting the SCOD rate in a focused manner to address problems with reimbursement rates applicable only to certain types of hospitals. View "American Hospital Ass'n v. Azar" on Justia Law

The DC Circuit denied petitions for review challenging FERC's orders concerning SFPP's tariffs. SFPP challenges FERC's decisions to deny SFPP an income tax allowance, to decline to reopen the record on that issue, and to deny SFPP's retroactive adjustment to its index rates. Shippers challenge FERC's disposition of SFPP's accumulated deferred income taxes (ADIT) and its temporal allocation of litigation costs.The court held that FERC's denial of an income tax allowance to SFPP was both consistent with the court's precedent and well-reasoned, and that FERC did not abuse its discretion or act arbitrarily in declining to reopen the record on that issue. Furthermore, FERC reasonably rejected retroactive adjustment to SFPP's index rates. The court also held that FERC correctly found that the rule against retroactive ratemaking prohibited it from refunding or continuing to exclude from rate base SFPP's ADIT balance, and that FERC reasonably allocated litigation costs. View "SFPP, LP v. Federal Energy Regulatory Commission" on Justia Law

Meritor filed suit challenging the EPA's listing of the Rockwell facility and surrounding areas to the National Priorities List, alleging that the listing is arbitrary, capricious, and contrary to governing regulations. The National Priorities List identifies hazardous waste sites in most urgent need of cleanup based on the threat that they pose to public and environmental health and to the public welfare.The DC Circuit denied the petition for review, holding that the EPA did not act arbitrarily and capriciously by evaluating the Rockwell Site based on measurements taken before the sub-slab depressurization system was installed; by relying on a residential health benchmark when evaluating the "targets" metrics; and in calculating the "waste characteristics" component of the subsurface intrusion pathway. View "Meritor, Inc. v. Environmental Protection Agency" on Justia Law

In three consolidated petitions for review, petitioners challenged five FERC orders on two intertwined El Paso rate cases under the Natural Gas Act, the 2008 Rate Case and the 2011 Rate Case.The DC Circuit denied the petitions for review, holding that FERC's removal of both the undistributed subsidiary earnings and the loan to El Paso's parent from the equity component of El Paso's capital structure was reasoned and supported by substantial evidence. The court also held that FERC's conclusion that El Paso had not demonstrated that its proposed rates would comply with the 1996 settlement was reasonable; FERC reasonably excluded the two compressor stations from El Paso's rate base; and FERC's approval of a zone-of-delivery rate design measured by contract-paths and its rejection of equilibration for lack of quantitative support were neither arbitrary nor contrary to law. View "El Paso Natural Gas Co., LLC v. Federal Energy Regulatory Commission" on Justia Law

Asylum seekers filed suit challenging executive-branch policies adopted to implement the expedited-removal provisions of the Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA). Asylum seekers principally argue that the policies raise the bar for demonstrating a credible fear of persecution far above what Congress intended and that the Attorney General and various agencies violated the Administrative Procedure Act (APA) by failing to adequately address important factors bearing on the policies' adoption. The district court found that the policies are inconsistent with the IIRIRA and the Immigration and Nationality Act (INA), enjoining their enforcement.After addressing jurisdictional issues, the DC Circuit held that the condoned-or-completely-helpless standard is arbitrary and capricious; the new choice-of-law policy is arbitrary and capricious due to USCIS's failure to acknowledge and explain its departure from past practice; when viewed as a whole, the Guidance accurately restates the circularity rule as described in Matter of A-B-, 27 I. & N. Dec. 316, 321 (2018); the record in this case does not support the asylum seekers' argument that USCIS and the Attorney General have erected a rule against asylum claims involving allegations of domestic and/or gang violence; and neither 8 U.S.C. 1252(f)(1) nor 1252(e)(1) prohibited the district court from issuing an injunction.Therefore, the court reversed the district court's grant of summary judgment with respect to the circularity rule and the statements regarding domestic- and gang-violence claims, vacated the injunction insofar as it pertains to those issues, and remanded to the district court for further proceedings. The court affirmed in all other respects. View "Grace v. Barr" on Justia Law

In these consolidated actions, a group of hospitals challenged HHS's rate reduction for off-campus provider-based departments (PBDs) falls outside of the agency's statutory authority. The district court agreed and set aside the regulation.Applying Chevron deference, the DC Circuit reversed and held that HHS's regulation rests on a reasonable interpretation of its statutory authority to adopt volume-control methods. In this case, Congress did not unambiguously forbid the agency from doing so and the agency reasonably read 42 U.S.C. 1395l(t)(2)(F) to allow a service specific, non-budget-neutral reimbursement cut in the circumstances the court considered here. View "American Hospital Assoc. v. Azar" on Justia Law

The ACAP and others challenged the Departments' Short-Term Limited Duration Insurance (STLDI) Rule defining STLDI as coverage with an initial contract term of less than one year and a maximum duration of three years counting renewals. The Departments also expanded disclosure requirements.The DC Circuit affirmed the district court's grant of summary judgment to the Departments and agreed with the district court that the STLDI Rule was a reasonable interpretation of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the Patient Protection and Affordable Care Act (ACA), and that the change from the 2016 Rule to the current STLDI Rule was not arbitrary and capricious. View "Association for Community Affiliated Plans v. Department of the Treasury" on Justia Law

The DC Circuit granted a petition for review of the EPA's denial of New York's petition challenging the EPA's asserted failure to address cross-border pollution under the Clean Air Act's Good Neighbor Provision, 42 U.S.C. 7410(a)(2)(D)(i). New York petitioned the EPA to find that power-generating and other facilities in nine different States were violating the Good Neighbor Provision by producing emissions that contributed significantly to New York's difficulty attaining or maintaining compliance with the 2008 and 2015 National Ambient Air Quality Standards for ozone.The court held that the EPA offered insufficient reasoning for the convoluted and seemingly unworkable showing it demanded of New York's petition. The court also held that the EPA's finding that New York did not have an air quality problem under the 2008 National Ambient Air Quality Standards for ozone relied on two faulty interpretations of the Clean Air Act that have since been invalidated. Accordingly, the court vacated the EPA's decision and remanded for further proceedings. View "New York v. Environmental Protection Agency" on Justia Law

The DC Circuit denied a petition for review of orders related to FERC's efforts to remove existing barriers to the participation of electric storage resources (ESRs) in the Regional Transmission Organization and Independent System Operator markets (RTO/ISO markets), independent, nonprofit companies that manage segments of the federal grid.The court held that petitioners failed to show that Order Nos. 841 and 841-A run afoul of the Federal Power Act's jurisdictional bifurcation or that they are otherwise arbitrary and capricious. After determining that petitioners have standing to bring their claims and that the matters are ripe for review, the court held that because the challenged orders do nothing more than regulate matters concerning federal transactions – and reiterate ordinary principles of federal preemption – they do not facially exceed FERC's jurisdiction under the Act. The court also held that FERC's decision to reject a state opt-out was adequately explained. View "National Association of Regulatory Utility Commissioners v. Federal Energy Regulatory Commission" on Justia Law