Gila River Indian Community v. United States , 697 F.3d 886 ( 2012 )


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  •                    FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    GILA RIVER INDIAN COMMUNITY, a            
    federally recognized Indian Tribe;
    DELVIN JOHN TERRY; CELESTINO
    RIOS; BRANDON RIOS; DAMON RIOS;
    CAMERON RIOS,
    Plaintiffs,
    JOHN MCCOMISH, Arizona
    Legislature, Majority Leader;
    CHUCK GRAY, Arizona Legislature,
    Senate Majority Leader; STATE OF
    ARIZONA; KIRK ADAMS, Arizona
    Legislature, Speaker of the House,
    Intervenor-Plaintiffs,
    and                             No. 11-15631
    D.C. Nos.
    CITY OF GLENDALE; MICHAEL
    SOCACIU; GARY HIRSCH,                        2:10-cv-01993-DGC
    Plaintiffs-Appellants,        2:10-cv-02017-DGC
    2:10-cv-02138-DGC
    v.
    UNITED STATES OF AMERICA; UNITED
    STATES DEPARTMENT OF THE
    INTERIOR; KENNETH LEE SALAZAR,
    in his official capacity as United
    States Secretary of the Interior;
    LARRY ECHO HAWK, in his official
    capacity as the Assistant Secretary
    for Indian Affairs of the United
    States Department of the Interior,
    Defendants-Appellees,
    TOHONO O’ODHAM NATION,
    Intervenor-Defendant-Appellee.
    
    10951
    10952              GLENDALE v. UNITED STATES
    GILA RIVER INDIAN COMMUNITY, a            
    federally recognized Indian Tribe;
    CITY OF GLENDALE; MICHAEL
    SOCACIU; DELVIN JOHN TERRY;
    CELESTINO RIOS; BRANDON RIOS;
    DAMON RIOS; CAMERON RIOS; GARY
    HIRSCH,
    Plaintiffs,
    JOHN MCCOMISH, Arizona
    Legislature, Majority Leader;
    CHUCK GRAY, Arizona Legislature,
    Senate Majority Leader; KIRK
    ADAMS, Arizona Legislature,
    Speaker of the House,
    Petitioners-intervenors,
    No. 11-15633
    and
            D.C. No.
    STATE OF ARIZONA,                             2:10-cv-01993-DGC
    Intervenor-Plaintiff-Appellant,
    v.
    UNITED STATES OF AMERICA; UNITED
    STATES DEPARTMENT OF THE
    INTERIOR; KENNETH LEE SALAZAR,
    in his official capacity as United
    States Secretary of the Interior;
    LARRY ECHO HAWK, in his official
    capacity as the Assistant Secretary
    for Indian Affairs of the United
    States Department of the Interior,
    Defendants-Appellees,
    TOHONO O’ODHAM NATION,
    Intervenor-Defendant-Appellee.
    
    GLENDALE v. UNITED STATES              10953
    GILA RIVER INDIAN COMMUNITY, a            
    federally recognized Indian Tribe,
    Plaintiff-Appellant,
    and
    CITY OF GLENDALE; MICHAEL
    SOCACIU; DELVIN JOHN TERRY;
    CELESTINO RIOS; BRANDON RIOS;
    DAMON RIOS; CAMERON RIOS, GARY
    HIRSCH,
    Plaintiffs,
    JOHN MCCOMISH, Arizona
    Legislature, Majority Leader;
    CHUCK GRAY, Arizona Legislature,                 No. 11-15639
    Senate Majority Leader; STATE
    D.C. Nos.
    OF ARIZONA, KIRK ADAMS, Arizona
    Legislature, Speaker of the House,           2:10-cv-01993-DGC
    Intervenor-Plaintiffs,        2:10-cv-02017-DGC
    2:10-cv-02138-DGC
    v.
    UNITED STATES OF AMERICA; UNITED
    STATES DEPARTMENT OF THE
    INTERIOR; KENNETH LEE SALAZAR,
    in his official capacity as United
    States Secretary of the Interior;
    LARRY ECHO HAWK, in his official
    capacity as the Assistant Secretary
    for Indian Affairs of the United
    States Department of the Interior,
    Defendants-Appellees,
    TOHONO O’ODHAM NATION,
    Intervenor-Defendant-Appellee.
    
    10954              GLENDALE v. UNITED STATES
    GILA RIVER INDIAN COMMUNITY, a            
    federally recognized Indian Tribe;
    CITY OF GLENDALE; MICHAEL
    SOCACIU, GARY HIRSCH,
    Plaintiffs,
    JOHN MCCOMISH, Arizona
    Legislature, Majority Leader;
    CHUCK GRAY, Arizona Legislature,
    Senate Majority Leader; STATE
    OF ARIZONA, KIRK ADAMS, Arizona
    Legislature, Speaker of the House,
    Intervenor-Plaintiffs,
    and
    No. 11-15641
    DELVIN JOHN TERRY; CELESTINO
    D.C. Nos.
    RIOS; BRANDON RIOS; DAMON RIOS;
    CAMERON RIOS,                                2:10-cv-01993-DGC
    Plaintiffs-Appellants,        2:10-cv-02017-DGC
    2:10-cv-02138-DGC
    v.
    UNITED STATES OF AMERICA; UNITED
    STATES DEPARTMENT OF THE
    INTERIOR; KENNETH LEE SALAZAR,
    in his official capacity as United
    States Secretary of the Interior;
    LARRY ECHO HAWK, in his official
    capacity as the Assistant Secretary
    for Indian Affairs of the United
    States Department of the Interior,
    Defendants-Appellees,
    TOHONO O’ODHAM NATION,
    Intervenor-Defendant-Appellee.
    
    GLENDALE v. UNITED STATES              10955
    GILA RIVER INDIAN COMMUNITY, a            
    federally recognized Indian Tribe;
    CITY OF GLENDALE; MICHAEL
    SOCACIU; DELVIN JOHN TERRY;
    CELESTINO RIOS; BRANDON RIOS;
    DAMON RIOS; CAMERON RIOS, GARY
    HIRSCH,
    Plaintiffs,
    STATE OF ARIZONA,
    Intervenor-Plaintiff,
    and
    JOHN MCCOMISH, Arizona
    Legislature, Majority Leader,
    CHUCK GRAY, Arizona Legislature,                 No. 11-15642
    Senate Majority Leader, KIRK                       D.C. Nos.
    ADAMS, Arizona Legislature,
    Speaker of the House, Andy                   2:10-cv-01993-DGC
    2:10-cv-02017-DGC
    Tobin, House Majority Whip,                   2:10-cv-02138-DGC
    Intervenor-Plaintiff-Appellants,              OPINION
    v.
    UNITED STATES OF AMERICA; UNITED
    STATES DEPARTMENT OF THE
    INTERIOR; KENNETH LEE SALAZAR,
    in his official capacity as United
    States Secretary of the Interior;
    LARRY ECHO HAWK, in his official
    capacity as the Assistant Secretary
    for Indian Affairs of the United
    States Department of the Interior,
    Defendants-Appellees,
    TOHONO O’ODHAM NATION,
    Intervenor-Defendant-Appellee.
    
    10956                 GLENDALE v. UNITED STATES
    Appeal from the United States District Court
    for the District of Arizona
    David G. Campbell, District Judge, Presiding
    Argued and Submitted
    April 16, 2012—San Francisco, California
    Filed September 11, 2012
    Before: M. Margaret McKeown, N. Randy Smith, and
    Jacqueline H. Nguyen,* Circuit Judges
    Opinion by Judge McKeown;
    Dissent by Judge N.R. Smith
    *The Honorable Jacqueline H. Nguyen was a District Judge for the U.S.
    District Court for the Central District of California sitting by designation
    at the time of argument and submission.
    10958             GLENDALE v. UNITED STATES
    COUNSEL
    Patricia A. Millet, Akin Gump Strauss Hauer & Feld, Wash-
    ington, D.C., for plaintiff-appellant Gila River Indian Com-
    munity; Catherine E. Stetson, Hogan Lovells, Washington,
    D.C., for plaintiff-appellant City of Glendale; David R. Cole,
    Dep. State Atty. Gen., Phoenix, Arizona, for plaintiff-
    intervenor-appellant State of Arizona.
    Aaron P. Avila, Dep’t of Justice, Washington, D.C., for
    defendants-appellees the United States of America, et. al.;
    Seth P. Waxman, Wilmer Cutler Pickering Hale and Dorr,
    Washington, D.C., for defendant-intervenor-appellee the
    Tohono O’Odham Nation.
    GLENDALE v. UNITED STATES               10959
    OPINION
    McKEOWN, Circuit Judge:
    This case illustrates the nuances of our federalist system of
    government, pitting Indian tribe against Indian tribe, and State
    and local governments against the federal government and an
    Indian tribe. The City of Glendale and various other parties
    (“Glendale”) seek to set aside the Department of the Interior’s
    decision to accept in trust, for the benefit of the Tohono
    O’odham Nation (“the Nation”), a 54-acre parcel of land
    known as Parcel 2. The Nation hopes to build a destination
    resort and casino on Parcel 2, which is unincorporated county
    land, entirely surrounded by the City of Glendale. To say this
    plan has been controversial is an understatement. But the
    strong feelings and emotional drama of the casino fight do not
    dictate the outcome here. This appeal relates only to the status
    of the land as trust land and does not involve the particulars
    of Indian gaming, which are the subject of separate proceed-
    ings and pending legislation. The district court granted sum-
    mary judgment for the government after concluding that the
    Secretary of the Interior reasonably applied the Gila Bend
    Indian Reservation Lands Replacement Act (“Gila Bend
    Act”), and that the Act did not violate the Indian Commerce
    Clause or the Tenth Amendment. We affirm.
    BACKGROUND
    I.   THE GILA BEND ACT
    The Nation, earlier known as the Papago Tribe of Arizona,
    is a federally recognized Indian Tribe with over 28,000 mem-
    bers. The Gila Bend Reservation was established as early as
    1882. Today, the reservation includes non-contiguous land
    located near Tucson, Phoenix, and the town of Gila Bend, as
    well as points in between. In 1960, the federal government
    completed construction of the Painted Rock Dam ten miles
    downstream from the Gila Bend Reservation. During the late
    10960                 GLENDALE v. UNITED STATES
    1970s and early 1980s, the reservation was plagued by flood-
    ing from the dam, which eventually destroyed a large farm
    developed by the Nation, leaving the land unsuitable for eco-
    nomic use.
    Congress responded to the flooding and the Nation’s peti-
    tion for a new reservation with the Gila Bend Act. The pur-
    pose of the Act was to “facilitate replacement of reservation
    lands with lands suitable for sustained economic use which is
    not principally farming . . . and promote the economic self-
    sufficiency of” the Nation. Pub. L. No. 99-503, 
    100 Stat. 1798
    , § 2(4). Under § 4 of the Act, the Nation transferred
    9,880 acres of reservation land to the United States in return
    for $30 million and the right to replace the lost reservation
    acre-for-acre. Id. at §§ 4(a), 6(c). Subject to the requirements
    and limitations of the Act, the Secretary of the Interior is
    required to take up to 9,880 acres of land into trust for the
    benefit of the Nation, effectively making the land part of the
    Nation’s reservation. Id. at § 6(d).
    The Act permits the Nation to use the funds for various
    purposes, including the purchase of land, and economic and
    community development. § 6(a).1 Section 6(c) imposes acre-
    age limits.2 Section 6(d) establishes that trust land refers to
    land under subsection (c), and that such land cannot be taken
    into trust as reservation land if it is (i) outside certain coun-
    ties, or (ii) “within the corporate limits of any city or town.”3
    1
    “The Tribe shall invest sums received under section 4 in interest bear-
    ing deposits and securities until expended. The . . . [Nation] may spend the
    principal and the interest and dividends accruing on such sums . . . for land
    and water rights acquisition, economic and community development, and
    relocation costs.” § 6(a).
    2
    “The Tribe is authorized to acquire by purchase private lands in an
    amount not to exceed, in the aggregate, nine thousand eight hundred and
    eighty acres.” § 6(c).
    3
    “The Secretary, at the request of the Tribe, shall hold in trust for the
    benefit of the Tribe any land which the Tribe acquires pursuant to subsec-
    GLENDALE v. UNITED STATES                        10961
    Over the decades after passage of the Act, the Nation
    acquired land in Arizona but only one parcel has been taken
    into trust. Then, in 2003, the Nation purchased the disputed
    land as part of a 135-acre acquisition. The land is a “county
    island,” surrounded entirely by the City of Glendale. A county
    island is unincorporated land surrounded entirely by lands
    incorporated by the municipality. See Town of Gilbert v.
    Maricopa Cnty., 
    141 P.3d 416
    , 418 n.1 (Ariz. Ct. App. 2006)
    (describing county island).
    In 2009, the Nation announced plans to use the land for
    gaming purposes and filed an application with the Department
    of the Interior to have the land held in trust under the Gila
    Bend Act. In response, the City of Glendale sought to annex
    a portion of the 135 acres. The Nation filed suit in state court
    challenging the annexation effort.4 Due to ongoing state litiga-
    tion, without relinquishing its claim to the full 135 acres, the
    Nation requested that the Department of the Interior accept
    into trust only a 54-acre portion of the land not at issue in
    state court: Parcel 2, the subject of this appeal.5
    tion (c) which meets the requirements of this subsection. Any land which
    the Secretary holds in trust shall be deemed to be a Federal Indian Reser-
    vation for all purposes. Land does not meet the requirements of this sub-
    section if it is outside the counties of Maricopa, Pinal, and Pima, Arizona,
    or within the corporate limits of any city or town.” § 6(d).
    4
    The Nation ultimately prevailed on appeal. See Tohono O’odham
    Nation v. City of Glendale, 
    253 P.3d 632
     (Ariz. Ct. App. 2011), petition
    for review denied Oct. 25, 2011.
    5
    The dissent recounts various facts at length to provide, in its view, “the
    rest of the story.” In effect, the dissent along with the parties opposing the
    trust designation, infuse the appeal with the Nation’s economic motives
    and plans for Indian gaming on the trust land. But those issues are not on
    appeal. We do not and are not called upon to express an opinion as to the
    availability of the trust land for use as a casino. That question is tied up
    in other litigation and the legislation that recently passed the House of
    Representatives. See Gila Bend Indian Reservation Lands Replacement
    Clarification Act. H.R. REP. No. 112-440 (2012). This issue does not bear
    on our interpretation of the Gila Bend Act.
    10962                 GLENDALE v. UNITED STATES
    II.   PRIOR PROCEEDINGS AND DECISIONS
    Although the Department of the Interior treated the
    Nation’s trust application as an ex parte filing, in March 2009,
    both the City of Glendale and the Gila River Indian Community6
    filed lengthy submissions opposing the trust application. Their
    submissions argued that Parcel 2 fell “within the corporate
    limits” of the City of Glendale and was therefore ineligible for
    trust status under § 6(d) of the Gila Bend Act.
    The Secretary of the Interior concluded that the require-
    ments of the Gila Bend Act were met. Specifically, Parcel 2
    is wholly within Maricopa County and is outside the City of
    Glendale’s corporate limits. In considering whether the land
    qualified for trust status under § 6(d), the Secretary explained
    that “[t]he Western Regional Director of the BIA, acting
    under authority of the Secretary, issued a waiver under Sec-
    tion 6(d) . . . that allowed the Nation to purchase up to five
    (5) separate areas of replacement land, rather than three, and
    further waived the requirement that one of these areas be con-
    tiguous to the San Lucy reservation.” In any event, since Par-
    cel 2 is only the second replacement land area to be held in
    trust under the Act, those waivers do not directly implicate the
    analysis here. Thus, in accord with the mandate of the Act, the
    Secretary determined that Parcel 2 must be held in trust for
    the Nation.
    In upholding the Secretary of the Interior’s decision, in a
    careful, comprehensive opinion, the district court concluded
    that Glendale had waived its argument regarding a total acre-
    age cap under § 6(c) of the Act, because it failed to raise the
    issue in the administrative proceeding.7 The district court then
    6
    The Gila River Indian Community is a separate tribe whose gaming
    interests are implicated by the Nation’s plans to develop a casino on Parcel
    2.
    7
    We note that, according to the Secretary, the normal “notice and com-
    ment provisions of 
    25 C.F.R. §§ 151.10
     and 151.11(d), requiring that the
    BIA [Bureau of Indian Affairs] notify state and local governments of the
    land-into-trust application, are not applicable” to this transaction.
    GLENDALE v. UNITED STATES                     10963
    deemed the statutory language “within the corporate limits” in
    § 6(d) to be ambiguous as to county islands like Parcel 2, and
    concluded that Arizona law was inconclusive. Applying
    Chevron, the court deferred to the agency’s interpretation of
    the statute and affirmed the trust decision as “based on a per-
    missible construction of the statute.” See Chevron, U.S.A.,
    Inc. v. Natural Res. Defense Council, Inc., 
    467 U.S. 837
    , 843
    (1984). Finally, the district court rejected the constitutional
    arguments under the Tenth Amendment and the Indian Com-
    merce Clause.
    “We review the grant of summary judgment de novo, thus
    reviewing directly the agency’s action under the Administra-
    tive Procedure Act’s (APA) arbitrary and capricious stan-
    dard.” Gifford Pinchot Task Force v. U.S. Fish & Wildlife
    Serv., 
    378 F.3d 1059
    , 1065 (9th Cir. 2004).
    ANALYSIS
    We first consider two questions of statutory interpretation:
    Whether the Gila Bend Act’s trust land acreage limits are
    implicated, and whether Parcel 2 is “within” the corporate
    limits of the City of Glendale. The remaining issues pertain
    to the limits of congressional power under the Indian Com-
    merce Clause and the Tenth Amendment.8
    I.       THE ACREAGE LIMIT IN SECTION 6(C)
    Section 6(c) of the Gila Bend Act provides that the Nation
    “is authorized to acquire by purchase private lands in an
    amount not to exceed, in the aggregate, 9,880 acres.” In turn,
    the following subsection, 6(d), describes trust land as being
    land acquired “pursuant to subsection (c).” Before the district
    8
    The Gila River Indian Community and the Terry and Rios appellants
    appeal only as to the acreage issue. The City of Glendale and the various
    Arizona appellants (collectively “Arizona appellants”) appeal as to all of
    the issues.
    10964             GLENDALE v. UNITED STATES
    court, Glendale argued for the first time that § 6(c) precludes
    the Nation from acquiring more than 9,880 acres with money
    from the Act and that the Nation already had exceeded that
    acreage cap before acquiring Parcel 2. The Nation responds
    that the cap only applies to land held in trust via § 6(d), and
    not to land remaining in fee status.
    While the Secretary of the Interior did not squarely con-
    sider the acreage cap because the issue was never framed as
    a barrier to taking Parcel 2 in trust, reading the Secretary’s
    decision in context is telling. In determining whether the
    § 6(d) trustee requirements were met, the Secretary read the
    statute as creating a cap on land that could be held in trust
    under the Gila Bend Act, not as a cap on the total acreage that
    the Nation could acquire. The Secretary explained the basis of
    this reading, noting that “[t]he first, and so far only, land
    acquired in trust for the Nation” was 3,200.53 acres acquired
    in September 2004. The decision goes on to state that there
    was another trust application for 3,759.52 acres but that the
    land was still held in fee. Therefore, the Secretary did not
    consider land held in fee as relevant to the analysis of the
    acquisition limitations under the Gila Bend Act. The decision
    explicitly counts only the fee-to-trust lands, not lands remain-
    ing in fee status.
    During agency proceedings, the Gila River Indian Commu-
    nity, one of the parties now raising the acreage cap argument,
    noted, in contrast to its current position, that “[s]ection 6(c)
    limits the number of acres that may be placed into trust to no
    more than 9,880 acres.” Appellants, including the Gila River
    Indian Community, now take the opposite position and argue
    that because the agency proceedings were non-adversarial, the
    issue should be considered on the merits. The Nation and the
    government maintain that the acreage cap argument was
    waived. The ultimate question is one of statutory construction.
    [1] Assuming, without deciding, that the argument was not
    waived, we hold that the statute read as a whole is unambigu-
    GLENDALE v. UNITED STATES               10965
    ous and that § 6(c) creates a cap only on land held in trust for
    the Nation, not on total land acquisition by the tribe under the
    Act.
    Our goal is to understand the statute “as a symmetrical and
    coherent regulatory scheme” and to “fit, if possible, all parts
    into a harmonious whole.” FDA v. Brown & Williamson
    Tobacco Corp., 
    529 U.S. 120
    ,133 (2000) (citations omitted).
    Section 6(a) authorizes the Nation to use funds received under
    the Gila Bend Act “for land and water rights acquisition, eco-
    nomic and community development, and relocation costs.”
    This authorization is broader than land acquisition and does
    not address trust acreage to replace the Nation’s lost reserva-
    tion land.
    Apart from the general provisions of § 6(a), three provi-
    sions of the Act concern the divestment and replacement of
    reservation land. Section 4 concerns the original 9880-acre
    reservation, and specifies the conditions under which the
    Nation would forfeit its “right, title, and interest . . . in nine
    thousand eight hundred and eighty acres of [reservation]
    land.” Subsections 6(c) and 6(d) provide for the replacement
    of this precise number of acres of reservation land. Section
    6(d) explains the mechanism for restoring reservation land,
    which requires placing land in trust, and limits the location of
    reservation land. More specifically, § 6(d) provides:
    The Secretary, at the request of the Tribe, shall hold
    in trust for the benefit of the Tribe any land which
    the Tribe acquires pursuant to subsection (c) which
    meets the requirements of this subsection. Any land
    which the Secretary holds in trust shall be deemed to
    be a Federal Indian Reservation for all purposes.
    Section 6(c), in turn, limits the size of newly acquired trust
    land to that of the previous reservation: 9880 acres. Thus,
    § 6(c) imposes a limit upon the size of land placed in trust for
    reservation purposes, under § 6(d), rather than upon total land
    10966             GLENDALE v. UNITED STATES
    acquisition under § 6(a). Subsection 6(c) and 6(d) are inter-
    nally cross-referenced and must be read together.
    Aside from its inapplicability to non-reservation land, treat-
    ing § 6(c) as a limit on land acquired under § 6(a) is problem-
    atic for other reasons. Congress crafted the Gila Bend Act to
    allow the Nation substantial autonomy in the use of funds and
    the acquisition of new reservation land. Because Congress did
    not expect the Nation to spend the Gila Bend Act funds
    immediately or all at once, Congress provided that the funds
    be invested in “interest bearing deposits and securities until
    expended.” § 6(a). This requirement underscores that Con-
    gress did not intend for the tribe to spend a fixed dollar
    amount, or to spend a specific amount on land, or to acquire
    the land at any particular time. Rather, the Nation was to have
    broad discretion in the use of Gila Bend Act funds, and the
    yield on those funds. The ability to buy land without regard
    to the cap on trust acreage and then designate the parcels for
    conversion to trust is well within the “great flexibility” Con-
    gress authorized for the Nation. See H.R. Rep. No. 99-851, at
    10 (1986) (envisioning the Nation to “have great flexibility in
    determining the use of funds provided under the Act.”).
    Of course, the Nation does not need statutory authorization
    to acquire and hold land in fee simple. The Nation has the
    right to buy and sell land just like other persons or entities.
    Cohen’s Handbook of Federal Indian Law § 15.04 (describ-
    ing various forms of tribal land acquisition, including the pur-
    chase of fee simple title). Glendale’s reading would mean that
    the Gila Bend Act purported to curtail the Nation’s indepen-
    dent right to buy and sell land, an outcome we do not endorse
    and one that is inconsistent with decades of Indian law.
    Further, § 6(b) relieves the Secretary of any audit or over-
    sight responsibility for expenditure of funds under § 6(a):
    “The Secretary [of the Interior] shall not be responsible for
    the review, approval, or audit of the use and expenditure” of
    the replacement land funds. § 6(b). If § 6(a) were cabined by
    GLENDALE v. UNITED STATES                        10967
    § 6(c), the Secretary would necessarily undertake a monitor-
    ing function as to expenditure of money for trust lands, a
    responsibility specifically disclaimed by the Act.
    Finally, as a practical matter, even Glendale’s interpretation
    would permit the Secretary to accept Parcel 2 in trust. This
    argument boils down to the view that the first 9,880 acres
    acquired must go into trust. Nothing in the Act specifies that
    the lands must go into trust in a chronological order pegged
    to the time of acquisition. There is no FIFO (first in, first out)
    principle incorporated in the Act. The Act allows the Nation
    to replace, acre-for-acre, the 9,880 acres of reservation land
    it relinquished to federal control under § 4(a). To date, the
    Secretary of the Interior has taken just one parcel into trust for
    the Nation, a 3,200 acre parcel known as San Lucy Farms.
    Acquisition in trust of the 54 acres in Parcel 2 would be the
    Nation’s second trust acquisition and, after acquisition, the
    Nation would remain well below the 9,880 acre cap on trust
    land. That the Nation may have purchased other land is irrele-
    vant to the clear limitation that only 9,880 acres may be held
    in trust.
    [2] Even if the statute were ambiguous, the Secretary of
    the Interior’s implicit reading of the 9,880 acre limit as a cap
    on land-to-trust rather than on land acquisition is supported by
    the text, structure, history, and factual background of the Act.
    The Supreme Court teaches that courts should “defer to an
    interpretation which was a necessary presupposition of the
    [agency]’s decision.” Nat’l R.R. Passenger Corp. v. Boston &
    Maine Corp., 
    503 U.S. 407
    , 420 (1992). The Secretary of the
    Interior’s implicit interpretation was a reasonable one and
    enjoys Chevron deference. 
    467 U.S. at 842-43
    .9
    9
    The Nation also argues that the Department of the Interior’s trust deci-
    sion is compelled by the Indian Canon which requires that when there is
    doubt as to the proper interpretation of an ambiguous provision in a fed-
    eral statute enacted for the benefit of an Indian tribe, “the doubt [will] ben-
    efit the Tribe.” (quoting Artichoke Joe’s Cal. Grand Casino v. Norton, 
    353 F.3d 712
    , 729 (9th Cir. 2003)). Because we affirm on alternate grounds,
    we need not reach this argument or the Gila River Indian Community’s
    claim that the canon is inapplicable when there are competing tribal inter-
    ests.
    10968                  GLENDALE v. UNITED STATES
    II.    THE CORPORATE LIMITS RESTRICTION IN SECTION 6(D)
    [3] Section 6(d) of the Gila Bend Act prohibits the Secre-
    tary of the Interior from taking land into trust “if it is outside
    the counties of Maricopa, Pinal, and Pima, Arizona, or within
    the corporate limits of any city or town.” (emphasis added).
    It is undisputed that Parcel 2 is in Maricopa county; the issue
    is whether Parcel 2, located on a county island fully sur-
    rounded by city land, is within the City of Glendale’s corpo-
    rate limits.
    The Arizona appellants contend the phrase “within the cor-
    porate limits” should have a geographical meaning: Any land
    entirely surrounded by a city’s corporate limits is “within” the
    city. The government argues for a jurisdictional meaning:
    Any land not subject to a city’s corporate jurisdiction is not
    “within” the city.10 Giving the key phrase “within the corpo-
    rate limits” its plain, natural, and common meaning does not
    solve the dilemma. United States v. Romo-Romo, 
    246 F.3d 1272
    , 1275 (9th Cir. 2001) (“[W]e should usually give words
    their plain, natural, ordinary and commonly understood mean-
    ings.”). Here, either reading of the term as used in the statute
    is plausible, so we conclude that the statute is ambiguous.
    [4] In the trust decision, the Secretary opted to analyze the
    corporate limits restriction based on the jurisdictional nature
    of fee land rather than its geographical location, and found the
    term “corporate limits” to have a plain meaning: “The use of
    ‘corporate limits’ shows a clear intent to make a given piece
    of property eligible under the [Gila Bend] Act if it is on the
    unincorporated side of the city’s boundary line.” The Secre-
    tary reasoned that, had Congress intended to exclude county
    10
    The dissent’s suggestion that the government took a differing view in
    prior litigation is not borne out by the record. In totally unrelated litigation
    the government made passing reference to geographical restrictions on
    trust land. But, in doing so, the brief did not consider the distinction under
    § 6(d) nor was this section at issue in the litigation.
    GLENDALE v. UNITED STATES                10969
    islands from possible trust acquisition, it could have done so
    by using language such as “exterior boundary,” “within one
    mile of any city” or “city limits.” Congress knows how to use
    the phrase “exterior boundaries” when it intends to include
    jurisdictional “islands” within another entity’s borders. See,
    e.g., 
    16 U.S.C. § 485
     (Secretary of Agriculture may accept
    “title to any lands within the exterior boundaries of the
    national forests”); 
    25 U.S.C. § 465
     (certain funds may not be
    “used to acquire additional land outside of the exterior bound-
    aries of the Navajo Indian Reservation”). Significantly, the
    trust decision also considered the possibility that the language
    was ambiguous. The Secretary concluded, in the alternative,
    that “[e]ven if Congress’s intent was less clear . . . we inter-
    pret the term not to support a conclusion that Parcel 2 is ineli-
    gible under the Act, with or without consideration of the
    [Indian] canon.”
    We defer to the agency’s interpretation as long as it is a
    reasonable one. Chevron, 
    467 U.S. at 842-43
    . The Supreme
    Court has clarified that where an agency interpretation is rea-
    sonable, courts may invoke Chevron step two at the outset to
    uphold the agency decision. See Entergy Corp. v.
    Riverkeeper, Inc., 
    556 U.S. 208
    , 218 (2009). In considering an
    Environmental Protection Agency final rule, the Court in
    Entergy Corp. explained that the presumption of deference to
    a reasonable agency opinion applies at the outset of the
    reviewing court’s analysis: “[W]e invoke this proposition
    (that a reasonable agency interpretation prevails) at the outset,
    omitting the supposedly prior inquiry of whether Congress
    has directly spoken to the precise question at issue. . . .
    [S]urely if Congress has directly spoken to an issue then any
    agency interpretation contradicting what Congress has said
    would be unreasonable.” 
    Id.
     at 218 n.4 (internal quotations
    and citations omitted).
    The fact that the Secretary of the Interior found the statute
    to be clear and unambiguous is of no moment and does not
    undermine the scope of our deference. Not only did the Secre-
    10970                 GLENDALE v. UNITED STATES
    tary exercise his judgment and discretion on that point, he
    affirmatively considered and invoked his expertise on an
    alternate basis, construing the statute as ambiguous.11 See
    Local Union 1261, United Mine Workers of Am. v. FMSHRC,
    
    917 F.2d 42
    , 47 (D.C. Cir. 1990) (upholding agency’s inter-
    pretation at Chevron step two even where the court disagreed
    with the agency’s conclusion that the meaning of the statute
    was “plain” because the agency reasonably construed the stat-
    ute and “exercise[d] its discretion in interpreting the statutory
    scheme in light of its policy judgment and expertise.”). Chev-
    ron deference is based, in part, on the “long recognized [prin-
    ciple] that considerable weight should be accorded to an
    executive department’s construction of a statutory scheme it
    is entrusted to administer.” Chevron, 
    467 U.S. at 844
    . Here,
    the agency entrusted to administer the Gila Bend Act faced an
    issue of pure statutory interpretation, carefully considered
    alternative approaches in construing the statutory scheme, and
    reached a reasonable interpretation.
    [5] The Secretary’s construction of § 6(d) is consistent
    with congressional intent and the structure of the statute itself,
    and is supported by the City of Glendale’s laws and conduct,
    and Arizona state law. By precluding the Nation from obtain-
    ing in trust land within a city’s jurisdiction, Congress took a
    step to protect municipal interests. The Act protects cities
    from losing territory over which they exercise authority and
    from which they generate tax revenue once the Nation obtains
    such land. But this protection only applies to land actually
    incorporated by a city or town. When a city surrounds a
    county island, there are two relevant boundaries: The city’s
    exterior boundary and the interior boundary between the city
    and the county island. Both of these boundaries are corporate
    11
    The dissent takes the view that § 6(d) is not ambiguous but surpris-
    ingly comes to an interpretation at odds with the Secretary. Were we to
    go that route, we would agree with the Secretary—the “corporate limits”
    restriction means property is eligible for trust status “if it is on the unin-
    corporated side of the city’s boundary line.”
    GLENDALE v. UNITED STATES               10971
    limits, because both divide incorporated city land from unin-
    corporated county land. Only land that is between the inner
    and outer corporate boundaries, incorporated land is “within”
    the city’s “corporate limits.” Even under the Arizona appel-
    lants’ reading, nothing would prevent the Secretary from
    holding in trust for the Nation land immediately adjacent to
    a city’s outermost boundary, or even an octagonally shaped
    parcel that was encircled by corporate land on seven of its
    eight sides. A county island is no different in principle or
    practice. Finally, the Secretary’s interpretation gives meaning
    to the term “corporate” as part of the phrase “within the cor-
    porate limits” and also avoids the sovereignty issues raised by
    the dissent.
    The trust decision discusses in detail the Secretary’s con-
    sideration of city and state provisions affecting county
    islands. In practice, Glendale’s own local treatment of county
    islands strongly supports the Secretary’s view that county
    islands are not “within the corporate limits.” The City of
    Glendale does not treat county islands as falling within its
    control: County islands are not assessed municipal tax and
    receive no municipal services.
    Until this litigation, the City of Glendale characterized
    county islands as lying outside its corporate limits and requir-
    ing annexation to be included within the City’s limits. For
    example, when the City of Glendale incorporated a strip of
    land that surrounds Parcel 2 and other unincorporated terri-
    tory, the annexation ordinance provided that “the present cor-
    porate limits [are] extended and increased to include” only the
    strip of land precisely described with metes and bounds. City
    of Glendale, AZ, Ordinance 986 New Series, (July 26, 1977).
    Similarly, numerous City of Glendale annexation ordinances
    addressing county islands use the language “located within an
    existing county island” and confirm that as a result of the
    annexation, the newly annexed county island land is “to be
    included within the corporate limits of the City of Glendale.”
    See, e.g., City of Glendale, AZ, Ordinance 2693 New Series,
    10972                GLENDALE v. UNITED STATES
    (Sept. 23, 2009); City of Glendale, AZ, Ordinance 2674 New
    Series, (Mar. 18, 2009); City of Glendale, AZ, Ordinance
    2668 New Series, (Mar. 11, 2009).
    As the Secretary observed, Arizona statutes also refer to
    county islands as falling outside corporate limits.12 See, e.g.,
    
    Ariz. Rev. Stat. Ann. § 9-500.23
     (authorizing a city to “pro-
    vide fire and emergency medical services outside its corporate
    limits to a county island.”). Finally, the Secretary considered
    an Arizona Supreme Court case that Glendale relies on heav-
    ily in this appeal. In Flagstaff Vending Co. v. City of Flag-
    staff, the Arizona Supreme Court held that Northern Arizona
    University is “within” the city limits of Flagstaff for the pur-
    poses of local tax ordinances. 
    578 P.2d 985
    , 987 (Ariz. 1978).
    However, that case is not instructive in interpreting § 6(d) or
    the land configuration of Parcel 2.
    To begin, Flagstaff did not consider a county island.
    Rather, the land in question had undisputedly been incorpo-
    rated by the city. The issue was whether a municipal tax could
    extend to activity conducted on a university campus owned by
    the state. For that limited question, the record did “not make
    it clear whether the campus of Northern Arizona University
    [was] part of the City of Flagstaff.” Id. at 990 (Cameron, C.J.
    concurring). The record did make clear, however, that unlike
    Parcel 2 the campus received services from the city. Id. at
    989. Finally, the ordinances at issue referred primarily to the
    phrases “within this city,” “without the city” and on one occa-
    sion “without the corporate limits” of the city. The term
    “within the corporate limits of any city or town” does not
    appear and was not construed. The Flagstaff opinion, like the
    ordinances, appears to use without precision or definition the
    various terms referring to city boundaries. In the end, the
    12
    Although Arizona appellants cite other Arizona and out-of-state
    authorities that suggest an alternate reading, Chevron deference requires
    that the agency interpretation be permissible, not the only plausible con-
    struction. See Entergy Corp., 
    556 U.S. at 218
    .
    GLENDALE v. UNITED STATES                      10973
    issue of statutory interpretation may not be crystal clear but
    the outcome is made easy by our adherence to Chevron defer-
    ence, and the Secretary’s reasonable interpretation.13
    We are puzzled by the dissent’s invocation of the clear
    statement rule. To begin, in the nine briefs filed with the
    court, it is no surprise that not a single brief referenced this
    argument.14 It is also telling that no party argued that the Sec-
    retary’s construction of § 6(d), in particular, raised serious
    constitutional problems or implicated state sovereignty. Ari-
    zona appellants’ effort at oral argument to reframe the rule to
    one of constitutional avoidance is unavailing because § 6(d)
    does not implicate constitutional sovereignty concerns. Not
    only is this recharacterization of the claim an eleventh hour
    effort to change gears, but this canon of construction does not
    bear on our interpretation of the Gila Bend Act.
    The clear statement rule, which is a canon of statutory con-
    struction, not a rule of constitutional law, applies where courts
    “confront[ ] a statute susceptible of two plausible interpreta-
    tions, one of which . . . alter[s] the existing balance of federal
    and state powers.” Salinas v. United States, 
    522 U.S. 52
    , 59
    (1997); see also Hilton v. South Carolina Pub. Ry. Comm’n,
    
    502 U.S. 197
    , 205-06 (1991) (distinguishing between a rule
    of constitutional law and a rule of statutory construction and
    using the plain statement rule as an example of a rule of statu-
    tory construction).
    [6] Neither the dissent nor the Arizona appellants have
    articulated a state sovereignty or constitutional interest vis-a-
    vis § 6(d). Whatever our interpretation of the phrase “within
    the corporate limits of any city or town,” it does not raise a
    13
    As with the acreage cap issue under § 6(c), because we affirm under
    Chevron, we need not consider the alternative basis of the Indian Canon
    of construction.
    14
    In an order from the panel after briefing and just before argument, the
    parties were asked to discuss the clear statement rule at oral argument.
    10974                 GLENDALE v. UNITED STATES
    question of federal encroachment on state power. In short, the
    Gila Bend Act does not implicate an “existing balance of fed-
    eral and state powers.” In Gregory, the Court does not indi-
    cate that the clear statement rule applies to any and all
    regulation of state governmental functions. Justice White, in
    his partial concurrence, partial dissent in Gregory raises this
    issue explicitly: “The majority’s approach is also unsound
    because it will serve only to confuse the law. First, the major-
    ity fails to explain the scope of its rule. . . . Second, the major-
    ity does not explain its requirement that Congress’ intent to
    regulate a particular state activity be ‘plain to anyone reading
    [the federal statute].’ ” 501 U.S. at 478. Virtually any federal
    legislation could be construed to have at least minor, deriva-
    tive implications for traditional state functions. For example,
    does federal legislation appropriating funds for building and
    maintaining interstate highways require a plain statement of
    Congressional intent to interfere with the traditional state
    functions of zoning and land use that the dissent flags in this
    case? The plain statement rule should not be applied in a way
    that makes it into a useless tautology. To the extent one is
    searching for a clear statement, Congress was clear: The
    Nation is entitled to swap out 9,880 acres of trust land ceded
    to the federal government for land of equivalent total acreage.
    This swap does not implicate state interests nor can Arizona
    appellants seriously argue that state sovereign interests restrict
    the Secretary from establishing a reservation on trust land.15
    As we know, “[s]tate sovereignty does not end at a reserva-
    tion’s border.” Nevada v. Hicks, 
    533 U.S. 353
    , 361 (2001).
    See also Surplus Trading Co. v. Cook, 
    281 U.S. 647
    , 651
    (1930) (citing Indian reservations as examples of federally
    managed land within state territory).
    15
    To the extent the Arizona appellants argue that the Gila Bend Act
    impermissibly interferes with the state’s interest in maintaining its taxable
    land base, the text of the Act provides a definitive answer: “With respect
    to any private land acquired by the Tribe under section 6 and held in trust
    by the Secretary, the Secretary shall make payments to the State of Ari-
    zona and its political subdivisions in lieu of real property taxes.” § 7(a).
    GLENDALE v. UNITED STATES                10975
    Even under the dissent’s reading of the statute, nothing
    would prevent the Nation from acquiring land in trust imme-
    diately adjacent to a city’s outermost boundary or even land
    that was almost, but not entirely encircled by corporate land.
    This circumstance is not one in which “an administrative
    interpretation of a statute invokes the outer limits of Con-
    gress’ power.” Solid Waste Agency of N. Cook County v. U.S.
    Army Corps of Engineers, 
    531 U.S. 159
    , 172 (2001). Neither
    plausible construction of the statute “raise[s] serious constitu-
    tional problems” that counsel invocation of the clear state-
    ment rule. 
    Id.
     The dissent’s real concern about a casino
    abutting the City of Glendale is revealed in its effort to trans-
    form statutory interpretation of a federal trust land provision
    into a blocking effort by the city. At this stage, no one knows
    whether a casino will be approved. The Nation faces regula-
    tory and court battles that are beyond the scope of this appeal.
    To convert this issue from one of Chevron deference to a sov-
    ereignty battle over regulation of Indian gaming distorts the
    clear statement rule.
    III.   THE INDIAN COMMERCE CLAUSE             AND   THE   TENTH
    AMENDMENT
    The final issue is the claim that the Gila Bend Act exceeds
    Congress’s power under the Indian Commerce Clause and
    violates the Tenth Amendment. In rejecting this argument, the
    district court noted that “counsel for Glendale agreed during
    oral argument [that] Plaintiffs ask the Court to break new
    ground on this issue—to depart from every court decision that
    has previously addressed it.” See, e.g., Carcieri v. Kemp-
    thorne, 
    497 F.3d 15
    , 39-40 (1st Cir. 2007) (en banc), rev’d on
    other grounds, 
    555 U.S. 379
     (2009) (emphasizing that powers
    expressly delegated to Congress do not implicate the Tenth
    Amendment, and that “[b]ecause Congress has plenary
    authority to regulate Indian affairs, [the challenged act] does
    not offend the Tenth Amendment.”). On appeal, the Arizona
    appellants offer no such acknowledgment. The gist of their
    argument is that the Gila Bend Act infringes on Arizona’s
    10976              GLENDALE v. UNITED STATES
    sovereignty. Their effort to invoke Seminole Tribe of Florida
    v. Florida, 
    517 U.S. 44
     (1996), which considered the Eleventh
    Amendment’s express grant of state sovereign immunity, is
    unpersuasive and fails in the face of the broad powers dele-
    gated to Congress under the Indian Commerce Clause. U.S.
    Const. art. I, § 8, cl. 3.
    [7] The Tenth Amendment provides that “powers not dele-
    gated to the United States by the Constitution, nor prohibited
    by it to the States, are reserved to the States respectively, or
    to the people.” U.S. Const. amend. X. The Supreme Court has
    read this Amendment as a “tautology”: “If a power is dele-
    gated to Congress in the Constitution, the Tenth Amendment
    expressly disclaims any reservation of that power to the
    States.” New York v. United States, 
    505 U.S. 144
    , 156-57
    (1992). The question here is straightforward: Did Congress
    act within its powers under the Indian Commerce Clause in
    passing the Gila Bend Act? If so, the Tenth Amendment is not
    implicated, and the constitutional challenge fails.
    [8] The Indian Commerce Clause empowers Congress
    “[t]o regulate Commerce . . . with the Indian Tribes.” U.S.
    Const. art. I, § 8, cl. 3. The Supreme Court has interpreted this
    clause broadly: “the central function of the Indian Commerce
    Clause is to provide Congress with plenary power to legislate
    in the field of Indian affairs.” Cotton Petroleum Corp. v. New
    Mexico, 
    490 U.S. 163
    , 192 (1989). That “Indian relations
    [are] the exclusive province of federal law” is beyond dispute.
    Cnty. of Oneida v. Oneida Indian Nation of New York State,
    
    470 U.S. 226
    , 234 (1985). See also Morton v. Mancari, 
    417 U.S. 535
    , 552 (1974) (holding that the Indian Commerce
    Clause empowers Congress to “single[ ] Indians out as a
    proper subject for separate legislation.”).
    [9] In passing the Gila Bend Act, Congress acted within its
    authority and expressly stated that it was fulfilling “its respon-
    sibility to exercise plenary power over Indian affairs to find
    alternative land for the [Nation].” H.R. Rep. 99-851 at 7. As
    GLENDALE v. UNITED STATES                  10977
    we learned from Garcia v. San Antonio Metro. Transit Auth.,
    courts “have no license to employ freestanding conceptions of
    state sovereignty when measuring congressional authority
    under” a constitutionally enumerated power. 
    469 U.S. 528
    ,
    550 (1985). Passage of the Gila Bend Act was well within
    congressional power under the Indian Commerce Clause and
    is not trumped by the Tenth Amendment.
    AFFIRMED.
    N.R. SMITH, Circuit Judge, dissenting:
    “Of all the attributes of sovereignty, none is more indispu-
    table than that of [a State’s] action upon its own territory.”
    Green v. Biddle, 
    21 U.S. 1
    , 43 (1823). Yet today, the majority
    holds that it was permissible for an agency to exercise what
    Chief Justice Roberts has called “an extraordinary assertion of
    power”1 by taking land into trust for an Indian reservation in
    the middle of one of Arizona’s most populated cities, contrary
    to the plain language of the Gila Bend Indian Reservation
    Lands Replacement Act, Pub. L. No. 99-503, 
    100 Stat. 1798
    (1986) (“Gila Bend Act”). The statutory text of the Gila Bend
    Act clearly prohibits the Secretary’s ability to take land, that
    is “within the corporate limits” of a city, into trust when the
    city’s limits wholly surround that land, such as the parcel at
    issue in this case.
    Furthermore, even if the Gila Bend Act is “ambiguous,” as
    the majority argues, the Supreme Court has made clear that
    courts should “not extend Chevron deference” to an agency
    decision where the “administrative interpretation alters the
    federal-state framework by permitting federal encroachment
    upon a traditional state power” such as the regulation of a
    1
    Carcieri v. Kempthorne, No. 07-526, Oral Arg. Tr. 36:13-17 (Nov. 3,
    2008).
    10978             GLENDALE v. UNITED STATES
    State’s land not authorized by “a clear statement from Con-
    gress.” Solid Waste Agency of N. Cook Cnty. (SWANCC) v.
    U.S. Army Corps of Engineers, 
    531 U.S. 159
    , 172-74 (2001);
    see also Gregory v. Ashcroft, 
    501 U.S. 452
    , 460-64 (1991).
    Rather, courts should assume that, “the background principles
    of our federal system . . . belie the notion that Congress would
    use . . . an obscure grant of authority to regulate areas tradi-
    tionally supervised by the States’ police power.” Gonzalez v.
    Oregon, 
    546 U.S. 243
    , 274 (2006). These concerns are partic-
    ularly relevant here, where the Department of Interior made
    its decision in an ex-parte proceeding that did not involve the
    participation of the State of Arizona and without formal pro-
    ceedings or a hearing for any other protesting parties.
    Because the majority’s decision upholds an agency inter-
    pretation (1) that is contrary to the plain language of a statute
    and (2) that effectively renders political protections afforded
    to States in our federalism system virtually nonexistent, I
    must respectfully dissent.
    I.
    I generally agree with the facts and procedural history as
    set forth by the majority. Nevertheless, additional facts are
    relevant to my analysis in Part II. Thus, as the late Paul Har-
    vey would say, “here’s the rest of the story.”
    A.
    The Tohono O’odham Nation (“the Nation”) is a federally
    recognized Indian tribe with the second largest Tribal land
    base in the United States at 2.8 million acres. That land base
    amounts to 4,375 square miles of reservation in South and
    Central Arizona. To put this size in perspective, the State of
    Connecticut is only slightly larger, at 5,006 square miles in
    area. The State of Delaware is less than half the size, at 2,026
    square miles.
    GLENDALE v. UNITED STATES                10979
    The Gila Bend Reservation had previously been part of the
    Nation’s land base. The reservation was nearly 10,000 acres
    —less than .4 percent of the Nation’s total land holdings.
    When part of the Nation’s land was flooded as a result of
    problems with a federal dam project, Congress enacted the
    Gila Bend Act in 1986 to “replace[ ] . . . [Gila Bend Indian
    Reservation] lands with lands suitable for sustained economic
    use which is not principally farming . . . .” Pub. L. No. 99-
    503, § 2(4) 
    100 Stat. 1798
    . Under this Act, the Nation
    assigned to the United States all rights and title to 9,880 acres
    of the Gila Bend Reservation for $30 million. 
    Id.
     at § 4(a).
    The Nation was then authorized to purchase replacement land,
    and the Secretary was authorized to take 9,880 acres of
    replacement land into trust, which would create a new Indian
    reservation. Id. at § 6.
    In 2002, the Nation, along with many other tribes, publicly
    supported Proposition 202—a ballot measure designed to pre-
    vent construction of new casinos in Arizona cities. The Nation
    publicly asserted that it would not authorize additional Indian
    casinos in any cities.
    Then in 2003, the Nation bought Parcel 2 within the City
    of Glendale through a series of complex transactions using a
    shell company with an out-of-state address. Parcel 2 is land
    that is physically within Glendale’s corporate limits, but as a
    “county island,” it is unincorporated land under the jurisdic-
    tion of Maricopa County. County islands stem from a once-
    common practice called “strip annexation.” This type of
    annexation occurs when a city “extend[s its] boundaries by
    annexing long strips of property” that encircle other, unincor-
    porated areas. Republic Inv. Fund I v. Town of Surprise, 
    800 P.2d 1251
    , 1254-55 (Ariz. 1990) (en banc).
    The practical benefits a city enjoys once unincorporated
    land is surrounded by the city’s jurisdictional boundaries are
    two-fold. First, cities are able to “exercise a strong degree of
    control over zoning and development” of county islands,
    10980             GLENDALE v. UNITED STATES
    because a city’s land-use planning documents and zoning
    ordinances are able to guide the zoning and subdivision of
    county islands. Carefree Improvement Ass’n v. City of Scotts-
    dale, 
    649 P.2d 985
    , 986-87, 992 (Ariz. Ct. App. 1982); 
    Ariz. Rev. Stat. § 11-814
    (G) (“The rezoning or subdivision plat of
    any unincorporated area completely surrounded by a city or
    town shall use as a guideline the adopted general plan and
    standards as prescribed in the subdivision and zoning ordi-
    nances of the city or town after April 10, 1986.” (emphasis
    added)). Second, generally no other municipality can annex
    unincorporated land such as Parcel 2 that is within a city’s
    geographic limits. See Carefree Improvement Ass’n, 
    649 P.2d at 986
    ; 
    Ariz. Rev. Stat. § 9-101.01
    .
    The City of Glendale’s exterior corporate boundary was
    extended to encircle Parcel 2 in 1977. Since that time, Glen-
    dale has controlled and guided the zoning and subdivision
    development of Parcel 2 and the surrounding land. Indeed,
    Parcel 2 is part of Glendale’s Municipal Planning Area and is
    included in Glendale’s General Plan. Currently, Parcel 2 has
    a rural zoning designation (R-43) that would allow only lim-
    ited development.
    The City of Glendale developed the surrounding area in
    reliance on its ability to control the zoning designation and
    land-use of Parcel 2 under this legal scheme. For instance, in
    2005 Glendale finished building a new public high school
    directly across the street from what Glendale later learned was
    the Nation’s acreage. Glendale, as well as private parties, has
    also invested significant resources in the area by building a
    $450 million stadium, a $240 million arena, and a $120 mil-
    lion Major League Baseball training facility.
    In January 2009, the Nation transferred ownership of Parcel
    2 to itself. Only days later, it filed its application asking the
    Secretary to take the property into trust and grant the Nation
    permission to establish a Class III, Las Vegas-style gambling
    facility. 
    25 U.S.C. § 2703
    . The Nation has advertised that this
    GLENDALE v. UNITED STATES               10981
    “new casino will be the largest in the state.” There are cur-
    rently no gaming facilities within the City of Glendale. More
    than 30,000 people live within two miles of the proposed
    casino in what is currently described as a “family friendly”
    area.
    B.
    Pursuant to usual practices, the Department of Interior
    treated the Nation’s land-into-trust application as an ex parte
    filing. It never notified the public of the application, created
    a docket, set a pleading schedule, or held a hearing, because
    it was not required to do so under the notice and comment
    provisions of 
    25 C.F.R. §§ 151.10
     and 151.11(d). Opponents
    of the application (who happened to be aware of the proceed-
    ings) were able to submit arguments against the application
    by letter only. Though the majority makes much of these
    “lengthy submissions,” Maj. Op. 10962, the length of the let-
    ters submitted by these parties hardly improved the process by
    which these parties could contest the Secretary’s actions. The
    opposing parties were never alerted when the Secretary filed
    amendments to its application. Further, the State of Arizona
    did not even participate in this limited fashion.
    In 2010, the Secretary concluded that Parcel 2 was eligible
    to be taken into trust under the Gila Bend Act. The Secretary
    determined that “the meaning of ‘corporate limits’ is plain”
    and “shows a clear intent to make property eligible under the
    Act if it is on the unincorporated side of a city’s boundary
    line.” The Department of Interior then published a Federal
    Register notice announcing its final determination “to acquire
    Parcel 2 consisting of 53.54 acres of land into trust for the
    Tohono O’odham Nation . . . .” 75 Fed.Reg. 52550-01, 52550
    (Aug. 26, 2010). The Secretary has stayed the acquisition for
    litigation proceedings.
    Plaintiffs sought review in district court. There, they raised
    both statutory and constitutional arguments that had been
    10982                 GLENDALE v. UNITED STATES
    raised before the agency. The district concluded that the
    “within the corporate limits” phrase was “ambiguous” and
    applied Chevron deference to uphold the agency’s decision.
    See Chevron U.S.A. Inc. v. Natural Res.Def. Council, Inc.,
    
    467 U.S. 837
     (1984).2 Plaintiffs sought an injunction to block
    the Secretary from taking Parcel 2 into trust during the appeal;
    the district court granted the injunction, concluding that Plain-
    tiffs raised “difficult” and “substantial legal questions war-
    ranting more deliberative consideration on appeal.” The
    district court also concluded there would be irreparable harm,
    because Glendale would lose its right to annex the land if it
    were taken into trust, which would lead to “irreparable
    quality-of-life injuries from gaming activities on Parcel 2.”3
    II.
    The majority concludes that the phrase “within the corpo-
    rate limits” in the Gila Bend Act is “ambiguous,” and thus
    that deference was owed to the Secretary’s interpretation of
    an ambiguous statute. Maj. Op. 10968-69. I disagree for two
    reasons.
    A.
    First, as the Supreme Court has held, “the susceptibility of
    2
    The majority says that the district court “conclud[ed] that the Secretary
    of the Interior correctly applied the” Gila Bend Act. Majority Op. 10959.
    This is a slight misstatement. The district court found “the meaning of
    ‘within the corporate limits’ to be ambiguous” in the Gila Bend Act. Gila
    River Indian Cmty. v. United States, 
    776 F. Supp. 2d 977
    , 987 (D. Ariz.
    2011). After conducting its own analysis and finding both parties’ inter-
    pretation plausible, the district court contemplated what it must do when
    “both sides advocate reasonable interpretations” and concluded that it
    “must defer to the agency’s interpretation.” 
    Id. at 989
    . Thus, the court
    deferred to the agency’s interpretation because it was reasonable, but it did
    not necessarily find that it was the correct interpretation.
    3
    The district court also enjoined Glendale from annexing Parcel 2 to
    preserve the status quo.
    GLENDALE v. UNITED STATES               10983
    [a] word . . . to alternative meanings does not render the word
    whenever it is used, ambiguous, particularly where all but one
    of the meanings is ordinarily eliminated by context.” Carcieri
    v. Salazar, 
    555 U.S. 379
    , 390 (2009) (alterations and internal
    quotation marks omitted). In Carcieri, the Supreme Court
    ruled in favor of the State and prevented an Indian tribe from
    taking land into trust in the middle of a city by concluding
    that the statute was “clear.” 
    Id.
     The Court arrived at this con-
    clusion despite the conclusion of the court of appeals below
    that the statute was ambiguous.
    Here, as in Carcieri, the statutory context makes clear that
    “within the corporate limits” refers to land that is geographi-
    cally enclosed in the jurisdictional limits of a city. Under the
    Gila Bend Act, the Secretary can only take land into trust
    upon the completion of certain statutory conditions, the most
    important of which are in Section 6(d) and relate to the size
    and location of land parcels:
    The Secretary, at the request of the Tribe, shall hold
    in trust for the benefit of the Tribe any land which
    the Tribe acquires pursuant to subsection (c) which
    meets the requirements of this subsection. . . . Land
    does not meet the requirements of this subsection if
    it is outside the counties of Maricopa, Pinal, and
    Pima, Arizona, or within the corporate limits of any
    city or town. Land meets the requirements of this
    subsection only if it constitutes not more than three
    separate areas consisting of contiguous tracts, at
    least one of which areas shall be contiguous to San
    Lucy Village. The Secretary may waive the require-
    ments set forth in the preceding sentence if he deter-
    mines that additional areas are appropriate.
    Pub. L. No. 99-503, § 6(d) 
    100 Stat. 1798
     (emphasis added).
    Thus, the plain language of the Gila Bend Act makes clear
    that it was aimed at allowing the Nation to assemble new res-
    10984                 GLENDALE v. UNITED STATES
    ervation land consisting of a few large tracts of land, none of
    which were within a city. While the Secretary could waive the
    contiguity and three-tract requirements where “appropriate,”
    the committee report indicates that Congress anticipated “ap-
    propriate” circumstances to include only those situations
    where parcels were “not entirely contiguous,” but were “suffi-
    ciently close to be reasonably managed as a single economic
    unit or residential unit.” H.R. Rep. No. 99-851, at 11 (1986).
    Parcel 2 is more than 100 miles from the Nation’s existing
    reservation. Nothing in the text of Section 6(d) anticipates that
    Arizona expected trust land to be purchased in little patches
    sprinkled throughout the State, and particularly not inside the
    exterior boundary of cities. Rather, the Gila Bend Act makes
    land ineligible to be taken into trust if it lies physically inside,
    or within, the boundary, or limits of a city.
    When there is “no evidence that the words . . . have
    acquired any special meaning in trade or commerce, they
    must receive their ordinary meaning” based on “the common
    language of the people . . . .” Nix v. Hedden, 
    149 U.S. 304
    ,
    306-07 (1893). The ordinary meaning of “within” is defined
    as “[i]n or into the inner part; inside.” The American Heritage
    Dictionary 1471 (1976). “Limit” means “the final or furthest
    confines, bounds, or restriction of something.” Id. at 758.
    Thus, Parcel 2 is within Glendale’s corporate limits, because
    it is “inside” the “final or furthest confines” or “bounds” of
    the City.4 This is the obvious, plain meaning of the text that
    Congress likely understood when enacting Section 6(d) of the
    Gila Bend Act.
    4
    In its cross motion for summary judgment, the United States also
    agreed to the Black’s Law Dictionary definition “within” and “limit.”
    “Within” is defined as “[i]n inner or interior part of.” Black’s Law Dictio-
    nary 1602 (6th ed. 1990). “Limit” is defined as “[b]oundary, border, or
    outer line of a thing.” Id. at 926. These definitions also support a plain
    meaning interpretation of the Gila Bend Act supporting the City’s inter-
    pretation, because Parcel 2 is in the “inner or interior part of” the City’s
    “[b]oundary, border, or outer line.”
    GLENDALE v. UNITED STATES                10985
    In contrast to this natural reading of the statute, the United
    States and the Nation argue that there are “two relevant
    boundaries: the city’s exterior boundary and the interior
    boundary,” and “only land that is between those two bounda-
    ries” is within corporate limits. Such an interpretation strains
    common sense, and is certainly not the obvious reading of the
    statute based on the “common language of the people.” Nix,
    
    149 U.S. at 307
    . If Congress had wanted to refer to two
    boundaries, or to incorporated land only, it could have easily
    made that distinction.
    Indeed, other statutes by Congress in similar circumstances
    indicate that, if Congress only wished to refer to a municipali-
    ty’s incorporated or annexed land, it knew how to do so. See,
    e.g., 
    25 U.S.C. § 1724
    (i)(2) (allowing Indian tribe to use
    government-provided funds to purchase “acreage within . . .
    unincorporated areas of the State of Maine” (emphasis
    added)); see also Pub. L. No. 102-402, § 4(d)(1), 
    106 Stat. 1961
    , 1965 (1992) (referring to “annexation of lands within
    the refuge by any unit of general local government” (empha-
    sis added)); Pub. L. No. 101-514, 
    104 Stat. 2074
    , 2076 (1991)
    (referring to “all incorporated units within the town of Mate-
    wan” (emphasis added)); Pub. L. No. 100-693, § 3(a), 
    102 Stat. 4559
     (1988) (referring to “the incorporated area of the
    cities of Union City and Fremont” (emphasis added)). This
    contradicts the argument of the United States and the Nation
    that “within the corporate limits” means both within the exte-
    rior and the interior corporate limits of a city.
    Furthermore, even if the “within the corporate limits”
    phrase does have a specific “settled meaning,” (as the United
    States and the Nation contend), the background legal norms,
    against which Congress is presumed to be aware when it leg-
    islates, most clearly supports the City of Glendale’s interpre-
    tation of the statute. The most relevant background legal norm
    to the Gila Bend Act is Arizona state law, because the Gila
    Bend Act only affects Arizona, and it is “a fair and reasonable
    presumption . . . that [C]ongress” is aware of “state legisla-
    10986             GLENDALE v. UNITED STATES
    tion” when the act of Congress has an effect on that law. See
    Prigg v. Commw. of Pa., 
    41 U.S. 539
    , 598-99 (1842); see also
    Brock v. Writers Guild of Am., W., Inc., 
    762 F.2d 1349
    , 1358
    n.8 (9th Cir. 1985) (“[B]ecause Congress is composed pre-
    dominately of lawyers, court[s] may assume that Congress is
    aware of existing law.”).
    Notably, Arizona’s zoning ordinances use the “within cor-
    porate limits” phrase in the geographical sense. For instance,
    Arizona Revised Statutes Section 9-461.11(A) allows a
    municipality to exercise its “planning powers” over “unincor-
    porated territory” that is “within its corporate limits . . . .”
    (emphasis added). See also 
    id.
     § 9-462.07(A) (same).
    The Arizona Supreme Court has also interpreted the words
    “corporate limits” to refer to a municipality’s “exterior boun-
    dar[ies],” holding that a state university campus was located
    “within” the City of Flagstaff’s corporate limits, because it
    was “completely surround[ed]” by the “exterior boundary of
    Flagstaff.” Flagstaff Vending Co. v. City of Flagstaff, 
    578 P.2d 985
    , 987 (Ariz. 1978) (in banc). The court emphasized
    that “the ordinary meaning of ‘within’ ” is “on the innerside
    . . . inside the bounds of a region.” 
    Id.
     (internal quotation
    marks omitted) (quoting Webster’s Third New International
    Dictionary 2627 (1965)). Notably, the Arizona Supreme
    Court’s interpretation turned on the geographic location of the
    campus, not its jurisdictional status.
    The majority’s attempt to distinguish this case, based on the
    fact that the campus had previously been annexed, is unavail-
    ing, because the campus’s jurisdictional status was irrelevant
    to the Arizona Supreme Court’s analysis. As a concurring jus-
    tice observed, “[t]he record . . . d[id] not make it clear
    whether the campus of Northern Arizona University is part of
    the City of Flagstaff.” Flagstaff Vending, 
    578 P.2d at 990
    (Cameron, C.J., concurring). That justice was willing to con-
    cur in the opinion even if the land at issue was “beyond the
    corporate limits” of Flagstaff. 
    Id. at 991
    .
    GLENDALE v. UNITED STATES                    10987
    While not binding on this court, Flagstaff Vending is per-
    suasive authority that Congress understood “within the corpo-
    rate limits” to refer to the geographic boundaries of a city
    when the Gila Bend Act was passed. This is particularly
    likely, because Flagstaff Vending was decided only eight
    years before two of Arizona’s representatives (Representative
    Morris K. Udall and then Representative John McCain) spon-
    sored the Gila Bend Act.
    Though the majority relies on situations where Congress
    has used the phrase “exterior boundaries,” these statutes are
    completely inapposite. Maj. Op. 10969 (citing 
    16 U.S.C. § 485
    ; 
    25 U.S.C. § 465
    ). These statutes are in no way refer-
    ring to unincorporated islands of land surrounded by an outer
    corporate limit, and thus there is nothing to indicate these stat-
    utes would have any bearing on this factually distinct situa-
    tion. Rather, they merely refer to the “exterior boundary” of
    an area, such as a national forest. Furthermore, as discussed
    above, the Arizona Supreme Court had already interpreted
    “corporate limit[ ]” to be synonymous with “exterior bounda-
    ry.” Flagstaff Vending Co., 
    578 P.2d at 987
    . It is likely that
    Congress also viewed these phrases as synonymous, so there
    is nothing significant about Congress using the “exterior
    boundaries” phrase in these statutes.
    The Nation is correct that Arizona’s 1977 annexation ordi-
    nance “extended” the City of Glendale’s “present corporate
    limits . . . to include” a strip of land surrounding Parcel 2. But
    that merely meant that the annexed strip then formed part of
    the “corporate limits.” The encircled land (Parcel 2) still fell
    within those limits. Nothing about this ordinance defined the
    term “within” in a way that would detract from this plain mean-
    ing.5
    5
    The majority cites to Arizona Revised Statutes Section 9-500.23, a
    non-zoning ordinance about fire and safety, which “outside corporate lim-
    its” in a jurisdictional sense. However, the jurisdictional usage makes
    sense in this context, because which entity is authorized to provide fire
    10988                 GLENDALE v. UNITED STATES
    Notably, in a 1992 Legal Brief, the Department of the Inte-
    rior itself recognized that Section 6(d) created “geographical
    requirements” to take the land into trust only if it was “outside
    the corporate limits of any city or town.” Brief for Appellee
    at 4, Tohono O’Odham Nation v. Bureau of Indian Affairs, 22
    IBIA 220 (I.B.I.A. Aug. 14, 1992). This position is directly
    contrary to the Department’s July 2010 position in this case
    that the “within the corporate limits” phrase is “jurisdictional
    in nature.”
    “If the plain language of [the Act] renders its meaning rea-
    sonably clear,” the court “will not investigate further unless
    its application leads to unreasonable or impracticable results.”
    United States v. Fei Ye, 
    436 F.3d 1117
    , 1120 (9th Cir. 2006)
    (internal quotation marks omitted). Therefore, because the
    meaning of the Act is clear at step one of the Chevron analy-
    sis, no deference is owed to the Secretary’s interpretation. See
    Gen. Dynamics Land Sys., Inc. v. Cline, 
    540 U.S. 581
    , 600
    (2004) (“Even for an agency able to claim all the authority
    possible under Chevron, deference to its statutory interpreta-
    tion is called for only when the devices of judicial construc-
    and safety services is an issue of authority and jurisdiction. In fact, this
    ordinance is entitled “Authority to provide fire protection and emergency
    services outside corporate limits.” Thus, the jurisdictional nature of the
    “corporate limits” phrase used there is distinguishable from the geographic
    nature of the phrase used in a zoning context, and the majority’s reliance
    on this ordinance is misplaced.
    Other state cases interpreting identical “within the corporate limits” lan-
    guage have come to the same conclusion as the Supreme Court of Ari-
    zona. See, e.g., Village of Frankfort v. Ill. EPA, 
    852 N.E.2d 522
    , 524 (Ill.
    App. Ct. 2006) (referring to unincorporated land “within the corporate
    limits of Frankfort”); City of Des Moines v. City Dev. Bd., 
    335 N.W.2d 449
    , 450 (Iowa Ct. App. 1983) (city “notified respondent . . . that the city
    would not provide essential services to isolated unincorporated areas
    within the corporate limits of the city”); Town of Germantown v. Village
    of Germantown, 
    235 N.W.2d 486
    , 491 (Wis. 1975) (interpreting statute as
    giving municipalities an opportunity to annex islands “lying within the
    corporate boundaries”).
    GLENDALE v. UNITED STATES                        10989
    tion have been tried and found to yield no clear sense of
    congressional intent.”).
    B.
    Even if the majority is correct that the statute is ambiguous,
    there is a second reason that the majority’s decision to defer
    to the Secretary is incorrect. The Supreme Court’s federalism
    canon of construction,6 which operates at step one of the
    Chevron analysis7 as a normal tool of judicial interpretation,8
    6
    The United States argues that the Indian canon of construction, requir-
    ing a liberal interpretation of statutes in favor of Indians, requires a ruling
    for the Nation if the Gila Bend Act is ambiguous. See Montana v. Black-
    feet Tribe of Indians, 
    471 U.S. 759
    , 766 (1985). However, the district
    court found that the Secretary’s interpretation would adversely affect the
    economic interests of other Indian tribes in Arizona. This canon does not
    appear to apply when it will benefit one tribe at the expense of other
    Indian tribes. See Confederated Tribes of Chehalis Indian Reservation v.
    Washington, 
    96 F.3d 334
    , 340 (9th Cir. 1996) (declining to apply canon
    where multiple tribes dispute fishing rights); see also Northern Cheyenne
    Tribe v. Hollowbreast, 
    425 U.S. 649
    , 655 n.7 (1976) (declining to apply
    canon because the “contesting parties are an Indian tribe and a class of
    individuals consisting primarily of tribal members”).
    Furthermore, Supreme Court precedent suggests that when the Indian
    canon conflicts with the federalism canon, the federalism canon prevails.
    See, e.g., William N. Eskridge, Jr. et. al., Legislation and Statutory Inter-
    pretation 374-75 (2d ed. 2006) (“[T]he canon promoting interpretations
    favoring Native Americans has weakened considerably in recent years, in
    the aftermath of jurisdictional disputes where states have prevailed over
    tribes.” (citing South Dakota v. Yankton Sioux Tribe, 
    522 U.S. 329
     (1998);
    Blatchford v. Native Village of Noatak, 
    501 U.S. 775
     (1991); Cotton
    Petroleum Corp. v. New Mexico, 
    490 U.S. 163
     (1989)); Philip P. Frickey,
    A Common Law for Our Age of Colonialism: The Judicial Divestiture of
    Indian Tribal Authority over Nonmembers, 
    109 Yale L.J. 1
     (1999)); Wil-
    liam N. Eskridge, Jr. & Philip P. Frickey, Quasi-Constitutional Law:
    Clear Statement Rules As Constitutional Lawmaking, 
    45 Vand. L. Rev. 593
    , 628 (1992) (“Gregory, and the federal criminal cases also may have
    dramatically deflated the longstanding canon presuming that states have
    no regulatory role in Indian country.”).
    7
    Generally, “canons of interpretation are considered to be part of the tra-
    ditional tools available to the Court at Step One” of the Chevron analysis.
    10990                 GLENDALE v. UNITED STATES
    makes clear that this court is required to interpret an ambigu-
    ous statute in favor of substantial state interests absent a clear
    indication that Congress intended otherwise. See SWANCC,
    
    531 U.S. at 172-74
    ; Pa. Dep’t of Corr. v. Yeskey, 
    524 U.S. 206
    , 208-09 (1998); BFP v. Resolution Trust Corp., 
    511 U.S. 531
    , 544-45 (1994); Gregory v. Ashcroft, 
    501 U.S. 452
    ; see
    also Gonzalez v. Oregon, 
    546 U.S. at 295-300
     (discussing the
    clear statement rule); Will v. Mich. Dep’t of State Police, 
    491 U.S. 58
    , 65 (1989) (“The language of § 1983 also falls far
    short of satisfying the ordinary rule of statutory construction
    that if Congress intends to alter the usual constitutional bal-
    ance between the States and the Federal Government, it must
    make its intention to do so unmistakably clear in the language
    of the statute.” (internal quotation marks omitted)); United
    States v. Bass, 
    404 U.S. 336
    , 349 (1971) (“[U]nless Congress
    conveys its purpose clearly, it will not be deemed to have sig-
    nificantly changed the federal-state balance.”). A discussion
    of the background justifications for this clear statement rule
    illustrates the relevance of this canon here.
    The debate over what constitutes the appropriate balance of
    power between the states and federal government and—more
    relevant to this case—how that balance of power should be
    enforced, dates back to the founding of this nation. Regarding
    the specific interpretation that should be given to the Tenth
    Amendment, one position in this debate has been that it is the
    See William N. Eskridge, Jr. et al., Legislation and Statutory Interpreta-
    tion 335 (2d ed. 2006); see also Kenneth A. Bamberger, Normative Can-
    ons in the Review of Administrative Policymaking, 
    118 Yale L.J. 64
    , 77
    (2008) (“The largest group of cases to consider the place of normative
    canons in review of agency interpretations treats them as the type of ‘tradi-
    tional tools’ that courts may use to resolve textual ambiguity, even when
    faced with an agency construction that might otherwise be entitled to def-
    erential Chevron review.”).
    8
    “In determining if Congress has ‘an intention on the precise question
    at issue,’ [the Court] employ[s] ‘traditional tools of statutory construc-
    tion.’ ” Hamilton v. Madigan, 
    961 F.2d 838
    , 840 n.3 (9th Cir. 1992) (quot-
    ing Chevron, 
    467 U.S. at
    843 n.9).
    GLENDALE v. UNITED STATES                      10991
    role of the judiciary to protect state interests by interpreting
    the Tenth Amendment as a substantive limit on federal power.
    The competing argument is that States are able to adequately
    protect their interests through the political process, so no addi-
    tional judicial protections should be provided. Over the course
    of American history, federal courts have not always taken
    consistent positions on this issue.9
    For instance, prior to Garcia v. San Antonio Metropolitan
    Transit Authority, 
    469 U.S. 528
     (1985), the Supreme Court
    had, from time to time, employed the Tenth Amendment as a
    substantive limit on the federal government’s ability to exer-
    cise power.10 The case of National League of Cities v. Usery,
    
    426 U.S. 833
     (1976) was a Supreme Court case that used the
    Tenth Amendment in this manner.
    In Garcia, the Court expressly overruled National League
    of Cities, because using the Tenth Amendment as a substan-
    tive limit on Congress proved “unworkable in practice,” even
    if it had some basis in Constitutional theory. 
    469 U.S. at
    545-
    47. The Court in Garcia did argue for judicial restraint when
    it came to rules that “look[ed] to the ‘traditional,’ ‘integral,’
    or ‘necessary’ nature of governmental functions . . . .” 
    Id. at 546
    . The Court also emphasized that States continue to “oc-
    9
    Compare Hammer v. Dagenhart, 
    247 U.S. 251
     (1918) (holding that a
    federal law prohibiting interstate shipment of goods that utilized child
    labor violated the Constitution, because “[t]he power of the States to regu-
    late their purely internal affairs by such laws as seem wise to the local
    authority is inherent and has never been surrendered to the general govern-
    ment”); Bailey v. Drexel Furniture Co., 
    259 U.S. 20
    , 38 (1922) (same),
    with United States v. Darby, 
    312 U.S. 100
    , 124 (1941) (holding that a fed-
    eral law prohibiting shipment of goods made by children was Constitu-
    tional, because the Tenth Amendment was merely a reminder that “all is
    retained which has not been surrendered”).
    10
    See, e.g., Carter v. Carter Coal Co., 
    298 U.S. 238
     (1936) (invalidating
    the Bituminous Coal Conservation Act of 1935 on federalism grounds);
    United States v. Butler, 
    297 U.S. 1
     (1936) (striking down part of the Agri-
    cultural Adjustment Act that imposed taxes on agricultural processors
    under the Tenth Amendment).
    10992             GLENDALE v. UNITED STATES
    cupy a special and specific position in our constitutional sys-
    tem and that the scope of Congress’ authority under the
    Commerce Clause must reflect that position.” Id. at 556.
    However, the Court explained that the protection of State
    interests occurred through the political process and not the
    judiciary. “[T]he principal and basic limit on the federal com-
    merce power is that inherent in all congressional action—the
    built-in restraints that our system provides through state par-
    ticipation in federal governmental action. The political pro-
    cess ensures that laws that unduly burden the states will not
    be promulgated.” Id. (emphasis added) The Court observed
    that “[i]n the factual setting of these cases the internal safe-
    guards of the political process have performed as intended.”
    Id.
    Only six years after Garcia, the Supreme Court apparently
    sought to strike a compromise between these competing posi-
    tions when it decided Gregory v. Ashcroft, 
    501 U.S. 452
    .
    There, the Court used the Tenth Amendment and federalism
    considerations as a rule of construction preventing federal
    laws from being interpreted in a way that burdened substantial
    state interests unless Congress clearly authorized such an
    interpretation of the law. The Court explained, “inasmuch as
    this Court in Garcia has left primarily to the political process
    the protection of the States against intrusive exercises of Con-
    gress’ Commerce Clause powers, we must be absolutely cer-
    tain that Congress intended such an exercise.” 501 U.S. at
    464; see also 1 Laurence Tribe, American Constitutional Law
    1176 (3d ed. 2000) (“[T]o give the state-displacing weight of
    federal law to mere constitutional ambiguity would evade the
    very procedure for lawmaking on which Garcia relied to pro-
    tect states’ interests.”).
    In other words, to the extent that Garcia anticipated that
    States would be protected by “the internal safeguards of the
    political process” when the political process “performed as
    intended,” Gregory created a rule of construction aimed at
    GLENDALE v. UNITED STATES                       10993
    ensuring that these political safeguards actually had “per-
    formed as intended” before significant state interests would be
    burdened. Garcia, 
    469 U.S. at 556
    . Thus, the Gregory Court
    explained that Congress’s authority under the Supremacy
    Clause to preempt state law “in areas traditionally regulated
    by the States” is “an extraordinary power in a federalist sys-
    tem” that “we must assume Congress does not exercise light-
    ly.” 501 U.S. at 460.
    A canon of construction favoring a State’s sovereign inter-
    ests is not new. The Supreme Court has long explained that
    when federal law is arguably inconsistent with state law,
    courts must “start with the assumption that the historic police
    powers of the States were not to be superseded by the Federal
    Act unless that was the clear and manifest purpose of Con-
    gress.” Rice v. Santa Fe Elevator Corp., 
    331 U.S. 218
    , 230
    (1947).11 However, the Supreme Court’s decision in Gregory
    appears to have transformed this presumption into a much
    more exacting clear statement rule requiring additional clarity
    from Congress.12
    As the dissent in Gregory noted, to overcome a federalism
    presumption, Congress would be required both to make clear
    1) that the statute was intended to extend “to the States” at all,
    and 2) Congress must also be clear as to whether “the precise
    details of the statute’s application” were meant to apply to the
    11
    See also Employees of the Dep’t of Pub. Health & Welfare v. Dep’t
    of Pub. Health & Welfare, 
    411 U.S. 279
    , 284-85 (1973); Bass, 
    404 U.S. at 349
    .
    12
    See William N. Eskridge, Jr. et al., Legislation and Statutory Interpre-
    tation 368 (2d ed. 2006); Note, Federalism—Clear Congressional Man-
    date Required to Preempt State Law: Gregory v. Ashcroft, 
    105 Harv. L. Rev. 196
    , 201-02 (1991) (“The Court has long required Congress to state
    clearly its intent to upset the usual balance of power between the states
    and the federal government. . . . Gregory’s plain statement rule, however,
    represents a new, more exacting rule of statutory construction.”).
    10994                 GLENDALE v. UNITED STATES
    specific state activities at issue. 501 U.S. at 476 (White, J., dis-
    senting).13
    Thus, even if the Gila Bend Act is, as the majority con-
    cludes, “ambiguous” and “less than crystal clear,” this only
    means that Congress never actually considered the issue of
    creating an Indian reservation on an unincorporated island
    within the geographic limits of a city. While statutory
    ambiguity in other contexts generally requires courts to defer
    13
    See also Federalism—Clear Congressional Mandate Required to Pre-
    empt State Law: Gregory v. Ashcroft, 
    supra note 11
    , at 202 (“In Gregory,
    the Court created a two-tier inquiry. First, Congress must clearly intend to
    extend a law to the states . . . . Second, Congress must delineate which
    specific state governmental functions it wishes to include within the sweep
    of the federal law.”).
    That this two-tier analysis exists is demonstrated by the fact that the
    Supreme Court has upheld the imposition of the exact same federal statute
    against states in some instances where the statute’s application was clear,
    but not in other instances where the statute’s application was less than
    clear. For example, in SWANCC, 
    531 U.S. at 162
    , the statutory interpreta-
    tion question was whether an abandoned sand and gravel pit constituted
    “navigable waters,” as interpreted by the United States Army Corps of
    Engineers. The Supreme Court struck down the application of the “naviga-
    ble waters” provision in the Clean Water Act to a land-locked gravel pit
    in one instance. 
    531 U.S. at 162
     (“We are asked to decide whether the pro-
    visions of § 404(a) may be fairly extended to these waters . . . .” (emphasis
    added)). This was because, though it was clear that the Clean Water Act
    could be applied by agencies against the states in general, the intrusive
    application in SWANCC was not clearly authorized by Congress in that
    case, where the application raised heightened federalism concerns. But the
    Court noted that, in United States v. Riverside Bayview Homes, Inc., 
    474 U.S. 121
    , 134 (1985), the Court upheld the application of the exact same
    statute to water that was adjacent to and “inseperably bound up with” nav-
    igable waters. 
    Id. at 167
    .
    Similarly, in Gregory, the Supreme Court struck down the application
    of the ADEA to potentially include retirement requirements on state
    judges. 
    501 U.S. 452
    . But in Kimel v. Florida Bd. of Regents, 
    528 U.S. 62
    (2000), the Supreme Court found the same statute, the ADEA, satisfied the
    clear statement rule regarding Congress’s intention to abrogate states’
    Eleventh Amendment immunity.
    GLENDALE v. UNITED STATES                    10995
    to an agency’s interpretation, Chevron, 
    467 U.S. 837
    , the fed-
    eralism clear statement rule prevents Congress from punting
    this highly charged political decision to the less politically
    accountable agency, SWANCC, 
    531 U.S. at 172
    ; Gregory,
    
    501 U.S. 452
    .14
    For instance, in SWANCC, the agency specifically
    requested that Chevron deference be provided, because Con-
    gress “did not address the precise question of [the statute’s]
    scope with regard to nonnavigable, isolated, intrastate waters,
    and that, therefore, [the Court] should give deference to the
    [agency’s] ‘Migratory Bird Rule.’ ” 
    531 U.S. at 172
    . The Sev-
    enth Circuit had deferred to the agency’s interpretation after
    determining that the interpretation was “reasonable.” 
    Id. at 166
    . However, the Court reversed the Seventh Circuit and
    explicitly stated that, “even were we to agree with respon-
    dents, we would not extend Chevron deference here.” 
    Id. at 172
    . The Court invoked the federalism cannon of statutory
    interpretation and explained that its concern with the agency’s
    interpretation was “heightened where the administrative inter-
    pretation alters the federal-state framework by permitting fed-
    eral encroachment upon a traditional state power.” 
    Id.
     at 173
    (citing Bass, 
    404 U.S. at 349
     (“[U]nless Congress conveys its
    purpose clearly, it will not be deemed to have significantly
    changed the federal-state balance.”)). Thus, because the Court
    found “nothing approaching a clear statement from Congress
    that it intended” the statute to be applied as it was in the pres-
    ent case, the Court “read the statute as written to avoid the
    significant constitutional and federalism questions . . . and
    therefore reject[ed] the request for administrative deference.”
    
    Id.
     (emphasis added).
    14
    Clear statement canons “trump Chevron,” because “Executive inter-
    pretation of a vague statute is not enough when the purpose of the canon
    is to require Congress to make its instructions clear.” Bamberger, supra
    note 6, at 80 (quoting Cass R. Sunstein, Nondelegation Canons, 
    67 U. Chi. L. Rev. 316
    , 331 (2000)).
    10996                 GLENDALE v. UNITED STATES
    Similarly, in Gregory, 
    501 U.S. 452
    , the majority rejected
    the EEOC’s interpretation of the statute without even men-
    tioning deference to the agency. It was only in Justice Black-
    man’s dissent where Chevron was discussed, and he argued
    that the Court should have deferred to the EEOC’s interpreta-
    tion of a vague statute. 
    Id. at 493
     (Blackmun, J., dissenting);
    see also Gonzalez v. Oregon, 
    546 U.S. at 264, 274
     (finding
    that the Attorney General’s interpretive rule was “not
    entitle[d] . . . to Chevron deference,” based on, inter alia,
    “background principles of our federal system”). In other
    words, in areas where federalism concerns are implicated, it
    appears that a clear authorization of Congressional authority
    is a preliminary requirement for any deference to be accorded
    to the agency’s interpretation of a statute.15
    Contrary to the majority’s concerns about hypothetical
    applications of this rule, the federalism canon of construction
    does not preclude deference to any agency interpretation of
    “any and all . . . federal legislation [that] could be construed
    to have at least minor, derivative implications for traditional
    state functions.” Maj. Op. 10974. Rather, the Supreme Court
    has only applied this rule in narrow circumstances when the
    following three types of specific concerns arise. First, this rule
    has only been used by the Supreme Court in particular sub-
    stantive legal “areas traditionally supervised by the States’
    police power.” Gonzalez v. Oregon, 
    546 U.S. at 274
    . The
    Supreme Court has demonstrated its commitment to protect-
    ing a State’s ability to regulate the land use and private prop-
    15
    Clear statement “canons reflect a singular requirement that certain
    important issues be addressed by legislative deliberation alone. More spe-
    cifically, they operate as clear statement rules that bar the interpretation of
    a statute to push the bounds of federal power absent an unambiguous dec-
    laration of intent by Congress.” Bamberger, supra note 6, at 79 (citing
    Cass R. Sunstein, Beyond Marbury: The Executive’s Power To Say What
    the Law Is, 
    115 Yale L.J. 2580
    , 2607 (2006)). The canons also “force a
    democratically elected Congress to deliberate on, and then raise, a ques-
    tion via explicit statement by operating in a manner that constrains any
    interpretive discretion on the part of courts and agencies.” Id. at 80.
    GLENDALE v. UNITED STATES               10997
    erty rights within its own territory. For instance, in SWANCC,
    the Supreme Court recognized that the agency’s interpretation
    would result in “a significant impingement of the States’ tra-
    ditional and primary power over land and water use” as a jus-
    tification for invoking the clear statement rule. 
    531 U.S. at 174
    ; see also Hess v. Port Auth. Trans-Hudson Corp., 
    513 U.S. 30
    , 44 (1994) (“[R]egulation of land use [is] a function
    traditionally performed by local governments.”). Similarly, in
    BFP, 
    511 U.S. at 544-45
    , the majority opinion invoked the
    Gregory clear statement rule in support of a reading that pre-
    vented federal law from trumping state law concerning the
    regulation of private property rights.
    Second, the clear statement rule only applies when “a stat-
    ute [is] susceptible of two plausible interpretations, one of
    which would have altered the existing balance of federal and
    state powers.” Salinas v. United States, 
    522 U.S. 52
    , 59, 
    118 S. Ct. 469
    , 474, 
    139 L. Ed. 2d 352
     (1997); see also United
    States v. Nordic Vill., Inc., 
    503 U.S. 30
    , 34 (1992) (applying
    a similar rule of construction where a was “susceptible of at
    least two interpretations,” one of which was more intrusive on
    a state’s interests). For instance, in Coeur Alaska, Inc. v.
    Southeast Alaska Conservation Council, 
    557 U.S. 261
    , 265,
    273 (2009), the clear statement rule did not apply, because the
    question was merely about which agency had authority to
    issue discharge permits, rather than whether an agency had
    authority to perform the action at all. Though the Court
    explained that the statute may be ambiguous, either interpreta-
    tion had a similar effect on the State’s interests, and thus the
    Court deferred to the agency’s interpretation rather than
    applying the clear statement rule. 
    Id. at 274-75
    .
    In contrast, in Gregory, one interpretation of the ADEA
    would have allowed an agency to regulate retirement require-
    ments for state judges—a significant intrusion on state inter-
    ests, whereas the other interpretation would not allow such
    regulation. 501 U.S. at 469. Similarly in SWANCC, the poten-
    tial ambiguity in the Clean Water Act was over whether or not
    10998              GLENDALE v. UNITED STATES
    the Army Corps could regulate a land-locked, abandoned
    gravel pit “wholly located within two Illinois counties,”
    despite the fact that the agency did clearly have authority
    under the same statute to regulate other state land that “actu-
    ally abutted on a navigable waterway.” 
    531 U.S. at 167, 171
    .
    The Court noted that, while the text of the Clean Water Act
    supported the latter interpretation, there was nothing to indi-
    cate that Congress had supported the former “more expan-
    sive” interpretation of “navigable waters.” 
    Id. at 168-171
    . In
    other words, the type of ambiguity in the statute must be such
    that it is not clear that the State was able to protect its signifi-
    cant interests through the political process, because the State
    may not have been on notice that its important interests were
    at stake.
    Third (and this factor applies only in the administrative
    context), the Supreme Court seems more likely to apply this
    clear statement requirement when the agency interprets the
    scope of its own statutory authority to regulate in the tradi-
    tional state realm at issue. For instance, in Gonzalez v. Ore-
    gon, the Supreme Court explained that it is a “commonsense
    conclusion” that “[j]ust as the conventions of expression indi-
    cate that Congress is unlikely to alter a statute’s obvious
    scope and division of authority through muffled hints, the
    background principles of our federal system also belie the
    notion that Congress would use such an obscure grant of
    authority to regulate areas traditionally supervised by the
    States’ police power.” 
    546 U.S. at 274
    . The Court thus
    explained that “[t]he idea that Congress gave the Attorney
    General such broad and unusual authority through an implicit
    delegation . . . is not sustainable.” 
    Id. at 267
    . The Court
    quoted Whitman v. American Trucking Associations, Inc., 
    531 U.S. 457
    , 468 (2001), where it had previously explained that
    “Congress, we have held, does not alter the fundamental
    details of a regulatory scheme in vague terms or ancillary
    GLENDALE v. UNITED STATES                      10999
    provisions—it does not, one might say, hide elephants in
    mouseholes.” Id.16
    This concern regarding the agency’s interpretation of its
    own statutory authority compounds when the agency’s inter-
    pretation of the authority-granting statute itself strains the
    bounds of Congress’s constitutional authority. For example,
    in SWANCC, the Court explained that “[w]here an administra-
    tive interpretation of a statute invokes the outer limits of Con-
    gress’ power, we expect a clear indication that Congress
    intended that result.” 531 U.S. at 172. The Court explained
    that this concern stems from the “assumption that Congress
    does not casually authorize administrative agencies to inter-
    pret a statute to push the limit of congressional authority.” Id.
    at 172-73. However, while constitutional limits may heighten
    concerns about authority, clear statement rules “cannot be
    defended as a simple invocation of the rule about avoiding
    serious constitutional questions,” because these rules apply
    even in situations where, “if Congress acted with the requisite
    clarity, the statute would be constitutional.” William N.
    Eskridge, Jr., et. al., Legislation and Statutory Interpretation
    368 (2d ed. 2006).
    Under this third concern, the federalism clear statement
    rule is satisfied when a statutory grant of authority to an
    16
    See also Wyeth v. Levine, 
    555 U.S. 555
    , 576-77 (2009) (the Court
    gave no weight to the agency’s conclusion that state law is pre-empted);
    FDA v. Brown & Williamson Tobacco Corp., 
    529 U.S. 120
    , 160 (2000)
    (“[W]e are confident that Congress could not have intended to delegate a
    decision of such economic and political significance to an agency in so
    cryptic a fashion.”); Robin Kundis Craig, Administrative Law in the Rob-
    erts Court: The First Four Years, 
    62 Admin. L. Rev. 69
    , 171 (2010) (“The
    Roberts Court’s track record to date indicates that it will generally accord
    far less deference to a federal agency when the agency is determining the
    scope of its own jurisdictional authority. This inclination is particularly
    strong when the agency is expanding its authority into realms that the
    Court perceives as the states’—for example, regulation of doctors, reten-
    tion of legal authority over land, and land-use planning.” (emphasis
    added)).
    11000              GLENDALE v. UNITED STATES
    agency is without reservation and clearly encompasses the
    scope of the subject matter. See Yeskey, 
    524 U.S. at 208-210
    .
    But when there is some reservation of authority and it is not
    clear if the agency’s interpretation is statutorily authorized,
    the clear statement rule applies in full force. SWANCC, 531
    U.S. at 172-74; Gregory, 
    501 U.S. 452
    ; see also Gonzalez v.
    Oregon, 
    546 U.S. at 295-300
    .
    All three of the specific concerns related to the federalism
    canon are present in this case. First, the Secretary’s interpreta-
    tion of the Gila Bend Act clearly implicates Arizona’s “tradi-
    tional and primary power over land . . . use” and private
    property rights within its territory. See SWANCC, 531 U.S. at
    174. I am surprised by the majority’s argument that no “en-
    croachment on state power” is at issue in this case. Maj. Op.
    10973-74 (emphasis added). Although the City of Glendale is
    a municipality, in SWANCC, the land at issue was only a “mu-
    nicipal landfill,” and yet the Supreme Court still determined
    that the federal government’s attempt to regulate this land
    constituted “a significant impingement of the States’ tradi-
    tional and primary power.” Id. at 173-74 (emphasis added).
    Moreover, as discussed below, it is Arizona’s state-wide zon-
    ing scheme created under Arizona state law (a scheme that
    allows cities to develop and lay claim to land enclosed within
    a cities corporate limits, even if that land is not incorporated)
    that will be interrupted by the Secretary’s application of the
    Gila Bend Act in this case. It is Arizona state citizens that will
    be affected by Parcel 2 being taken into trust just across the
    street from their neighborhoods. It is also land located within
    Arizona’s “own territory” that will be effectively transferred
    to another sovereign. Green v. Biddle, 
    21 U.S. at 43
    . Even the
    Federal Government’s brief recognizes that “jurisdiction over
    Indian lands involves ‘an accommodation between the inter-
    ests of the Tribes and the federal government, on the one
    hand, and those of the State, on the other.’ ” Federal Appel-
    lees’ Answering Br. 48 (emphasis added) (quoting Nevada v.
    Hicks, 
    533 U.S. 353
    , 361-62 (2001)). The Federal Govern-
    ment’s brief also notes that the Secretary’s decision to take
    GLENDALE v. UNITED STATES                      11001
    Parcel 2 into law will result in a “[d]isplacement of state law
    . . . .” Id. at 50 (emphasis added).
    The majority’s argument that Arizona never “articulated a
    state sovereignty or constitutional interest vis-a-vis § 6(d)”
    also “puzzled” me. Maj. Op. 10973. Arizona clearly argued
    (multiple times throughout both the opening and reply brief)
    that the Gila Bend Act, which includes Section 6(d), “as
    applied violates the Tenth Amendment” and invades “essen-
    tial attributes inhering in [Arizona’s] sovereign status.” Ari-
    zona Appellants’ Opening Br. 49, 51. All parties were also
    ordered by our panel to discuss the application of the federal-
    ism clear statement rule to this case at oral argument, at which
    time Arizona argued that the clear statement rule specifically
    applies to an interpretation of Section 6(d), and state sover-
    eignty concerns require construing any ambiguity in the Gila
    Bend Act in Arizona’s favor.17 I do not address Arizona’s
    argument that the Tenth Amendment and state sovereignty
    concerns create a substantive constitutional limit that prevents
    the Secretary from “tak[ing Parcel 2] into trust in the first
    place,” Arizona Appellants’ Reply Br. 27, nor do I address
    Arizona’s other concerns with the Gila Bend Act and the Sec-
    retary’s interpretation of it, because I conclude that the feder-
    alism canon’s procedural requirement for added clarity, as
    17
    It is worth noting that, in BFP, 
    511 U.S. 531
    , the Supreme Court
    invoked the clear statement canon in favor of the State despite the fact that
    neither the Ninth Circuit nor any party had discussed the clear statement
    rule. Our precedent is also clear that, even if Arizona did make a conces-
    sion about a question of law, there is “no reason why we should make
    what we think would be an erroneous decision, because the applicable law
    was not insisted upon by one of the parties.” United States v. Miller, 
    822 F.2d 828
    , 832 (9th Cir. 1987) (quoting Smith Engineering Co. v. Rice, 
    102 F.2d 492
    , 499 (9th Cir.1938)). “The rule has been repeated in a variety of
    circumstances. Even if a concession is made by the government, we are
    not bound by the government’s ‘erroneous view of the law.’ ” 
    Id.
     (quoting
    Flamingo Resort, Inc. v. United States, 
    664 F.2d 1387
    , 1391 n. 5 (9th
    Cir.1982)). This is particularly true where all parties had the chance to
    address this issue at oral argument.
    11002              GLENDALE v. UNITED STATES
    applied to Section 6(d)’s language alone, requires a ruling for
    Arizona and Glendale.
    Second, the statutory interpretation debate over the Gila
    Bend Act is over one interpretation that would significantly
    burden Arizona’s substantial state interests and another inter-
    pretation that is much less intrusive. The Secretary’s applica-
    tion of the Gila Bend Act would interfere with Arizona’s
    sovereign powers more than the typical creation of an Indian
    reservation, regardless of whether a casino is ever actually
    built on Parcel 2. It is a commonsense conclusion that a state
    has a greater concern about how land within its cities is used
    than land outside its cities. SWANCC, 531 U.S. at 167, 171
    (recognizing a heightened concern over land “wholly located
    within two Illinois counties” compared to land that “actually
    abutted on a navigable waterway”).
    Furthermore, ordinary land use concerns are heightened by
    the fact that in Arizona, municipalities expect to be able to
    “exercise a strong degree of control over zoning and develop-
    ment” over land within their geographic boundaries, even if
    the land is not incorporated. Carefree Improvement Ass’n, 
    649 P.2d at 987
    ; 
    Ariz. Rev. Stat. § 11-814
    (G). A city’s land-use
    planning documents and zoning ordinances are able to guide
    the zoning and subdivision of county islands. Carefree
    Improvement Ass’n, 
    649 P.2d at 986-987, 992
    . In addition, in
    Arizona, generally no other municipality can annex unincor-
    porated land such as Parcel 2 that is within a city’s geographic
    limits. 
    Id. at 986
    ; 
    Ariz. Rev. Stat. § 9-101.01
    ; see also Kane
    v. City of Beaverton, 
    122 P.3d 137
    , 142 (Or. Ct. App. 2005)
    (“[T]here are a number of rational and legitimate reasons for
    disparate treatment of ‘island’ territories . . . .”). Thus, Glen-
    dale had reasonable expectations that it would be able to
    guide and control Parcel 2’s development, and that this land
    could not be claimed by any other entity capable of changing
    the land use development. In reliance on this zoning scheme,
    the City of Glendale zoned Parcel 2 as residential and devel-
    oped the surrounding area consistent with that zoning desig-
    GLENDALE v. UNITED STATES                      11003
    nation. These reliance interests would not exist to the same
    extent in the hypothetical the majority poses, regarding “ac-
    quiring land in trust immediately adjacent to a city’s outer-
    most boundary or even land that was almost, but not entirely
    encircled by corporate land.”18 Maj. Op. 10975.
    The State’s territorial control—the ability to tax, to regu-
    late, and to control land use—is effectively eliminated when
    state land is taken into trust. As courts have noted, “federally-
    recognized reservations . . . are, in many ways, separate juris-
    dictions from the state in which they are located.” Tworek v.
    United States, 
    46 Fed. Cl. 82
    , 87 (2000). Importantly for this
    case, tribal sovereignty blocks “state action that impairs the
    ability of a tribe to exercise traditional governmental func-
    tions such as zoning . . . or the exercise of general civil juris-
    diction over the members of the tribe.” Crow Tribe of Indians
    v. Montana, 
    650 F.2d 1104
    , 1110 (9th Cir. 1981) (emphasis
    added); see also Segundo v. City of Rancho Mirage, 
    813 F.2d 1387
    , 1390-94 (9th Cir. 1987) (rejecting a State’s attempts to
    apply local laws such as zoning ordinances to reservation
    lands). The Supreme Court has explained that one of the inde-
    pendent “barriers to the assertion of state regulatory authority
    over tribal reservations and members” is the sovereign “right
    of reservation Indians to make their own laws and be ruled by
    them.” White Mountain Apache Tribe v. Bracker, 
    448 U.S. 136
     (1980); see also United States v. Wheeler, 
    435 U.S. 313
    ,
    322 (1978) (“The powers of Indian tribes are, in general,
    inherent powers of a limited sovereignty which has never
    been extinguished.”). Thus, upholding the Secretary’s inter-
    18
    Furthermore, the question of whether land immediately adjacent to
    Parcel 2 and outside Glendale’s city limits could be taken into trust is not
    a question before this court, given that it is not clear whether such land
    would meet other requirements of the Gila Bend Act, including that the
    land be “three separate areas consisting of contiguous tracts, at least one
    of which areas shall be contiguous to San Lucy Village,” Pub. L. No. 99-
    503, § 6(d) 
    100 Stat. 1798
    , or else that non-contiguous parcels are “suffi-
    ciently close to be reasonably managed as a single economic unit or resi-
    dential unit.” H.R. Rep. No. 99-851, at 11 (1986).
    11004              GLENDALE v. UNITED STATES
    pretation would strip Glendale of its long-standing authority
    to control land use on Parcel 2 and transfer that control to a
    separate sovereign.
    The transfer of Arizona’s sovereign authority, over land
    enclosed within one of its major cities, is a significant
    encroachment on Arizona’s state interests, regardless of how
    Parcel 2 is ultimately developed. Moreover, the fact that tak-
    ing Parcel 2 into trust would create the very real potential that
    a new casino would be built across the street from a high
    school, a quarter-mile from churches, and within Glendale’s
    carefully developed residential area (where millions of dollars
    have been invested) understandably heightens the State’s con-
    cerns.
    Furthermore, not only would the Secretary’s decision affect
    the State’s ordinary land use powers, the agency’s decision
    here will likely implicate major budgetary decisions. For
    example, if a casino is built, city officials estimate that the
    casino complex will require Glendale to build significant
    additional infrastructure in the area (e.g., fire, police, etc.), as
    well as to spend millions of additional dollars of expenditures
    for public safety outlays. The Supreme Court has explained
    that “[f]ederalism concerns are heightened when, as in these
    cases, a federal court decree has the effect of dictating state
    or local budget priorities.” Horne v. Flores, 
    557 U.S. 433
    , 448
    (2009).
    The political process justifications for the federalism clear
    statement rule are also particularly relevant here. In contrast
    to Garcia, “[i]n the factual setting of [this case] the internal
    safeguards of the political process” have not “performed as
    intended.” Garcia, 
    469 U.S. at 556
    . As discussed above, the
    text of the Gila Bend Act readily lends itself to an interpreta-
    tion that would prevent any reservations from being created
    within the geographic boundaries of a city. Thus, when two
    of Arizona’s own representatives sponsored the Gila Bend
    Act in the House of Representatives, there was nothing from
    GLENDALE v. UNITED STATES               11005
    the text of the statute that would have alerted Arizona to the
    fact that it was consenting, through the political process, to
    legislation that would be adverse to its significant state inter-
    ests. Indeed, the Arizona Supreme Court’s recent decision in
    Flagstaff Vending, 
    578 P.2d at 987
    , as well as Arizona’s zon-
    ing ordinances discussing unincorporated territory “within the
    corporate limits,” 
    Ariz. Rev. Stat. § 9-461.11
    (A); 
    id.
     § 9-
    462.07(A), likely reinforced Arizona’s understanding that
    land like Parcel 2 would not be eligible to be taken into trust.
    To further complicate Arizona’s dilema, when the Depart-
    ment of Interior was considering the Nation’s land-into-trust
    application, Arizona did not participate in this ex parte filing
    and had no way to formally do so. There was no public notifi-
    cation, no docket, no pleading schedule, and no hearing for
    interested parties. Opponents of the application who happened
    to be aware of the proceedings were able to submit arguments
    against the application by letter only, but they were not
    alerted when the Secretary filed amendments to its applica-
    tion. Thus, the statutory interpretation tools and facts of this
    case indicate that the ambiguity at issue in the “within the cor-
    porate limits” phrase was of the type that prevented Arizona
    from adequately protecting its state interests through the polit-
    ical process.
    Third and lastly, the Secretary’s interpretation here con-
    cerns the scope of its own authority to take this land into trust.
    While the Gila Bend Act clearly provides authority for the
    Secretary to take land into trust to create Indian reservations
    in certain locations, this grant of authority is based on signifi-
    cant limitations, including that such reservations not be cre-
    ated “within the corporate limits” of a city. The majority
    concedes that the Gila Bend Act is “ambiguous” regarding
    whether the “within the corporate limits” language was meant
    to authorize the Secretary’s action of taking Parcel 2 into
    trust. Maj. Op. 10968. As in Gregory, SWANCC, and Gonza-
    lez v. Oregon, courts should not defer to an agency’s interpre-
    tation of an ambiguous grant of authority when the
    11006             GLENDALE v. UNITED STATES
    interpretation buts up against the limit of the agency’s own
    authority. This is especially true where such an interpretation
    may also press the outer limits of Congress’s authority under
    the Indian Commerce Clause. See United States v. Lara, 
    541 U.S. 193
    , 205 (2004) (indicating that Congress could run up
    against “constitutional limits” if its Indian legislation “inter-
    fere[d] with the power or authority of any State”).
    Therefore, even assuming the Gila Bend Act is ambiguous,
    ambiguity of this nature can only be interpreted in a State’s
    favor. Though the majority is correct that this “case illustrates
    the nuances of our federalist system of government,” Maj. Op.
    10959, the majority misunderstands that Arizona’s sovereign
    interests must prevail in this case, and this court is precluded
    from applying Chevron deference to the Secretary’s interpre-
    tation. The majority’s ruling to the contrary eviscerates the
    very political protections on which the Supreme Court relied
    when it decided in Garcia that States can protect their sover-
    eign interests through the political process.
    III.
    Because both the plain language of the Gila Bend Act and
    the canon of construction favoring a State’s interests requiring
    an interpretation of “within the corporate limits” contrary to
    that of the Secretary, I must respectfully dissent.
    

Document Info

Docket Number: 11-15631, 11-15633, 11-15639, 11-15641, 11-15642

Citation Numbers: 697 F.3d 886

Judges: Jacqueline, Margaret, McKEOWN, Nguyen, Randy, Smith

Filed Date: 9/11/2012

Precedential Status: Precedential

Modified Date: 8/5/2023

Authorities (67)

Republic Investment Fund I v. Town of Surprise , 166 Ariz. 143 ( 1990 )

Carefree Improvement Ass'n v. City of Scottsdale , 133 Ariz. 106 ( 1982 )

William E. Brock, Iii, Secretary of Labor, United States ... , 762 F.2d 1349 ( 1985 )

Carcieri v. Kempthorne , 497 F.3d 15 ( 2007 )

Town of Gilbert v. Maricopa County , 213 Ariz. 241 ( 2006 )

Gila River Indian Community v. United States , 776 F. Supp. 2d 977 ( 2011 )

United States v. Fei Ye, AKA Ye Fei Ming Zhong, AKA Zhong ... , 436 F.3d 1117 ( 2006 )

Juan Segundo v. City of Rancho Mirage, a Municipal ... , 813 F.2d 1387 ( 1987 )

monica-hamilton-laura-stroy-wanda-valeck-individually-and-on-behalf-of-all , 961 F.2d 838 ( 1992 )

United States v. Manuel Romo-Romo , 246 F.3d 1272 ( 2001 )

Crow Tribe of Indians v. State of Montana, and Ramon Dore, ... , 650 F.2d 1104 ( 1981 )

United States v. Michael Frank Miller , 822 F.2d 828 ( 1987 )

gifford-pinchot-task-force-an-oregon-non-profit-organization-cascadia , 378 F.3d 1059 ( 2004 )

96-cal-daily-op-serv-6678-96-daily-journal-dar-10923-confederated , 96 F.3d 334 ( 1996 )

No. 89-1637 , 917 F.2d 42 ( 1990 )

Horne v. Flores , 129 S. Ct. 2579 ( 2009 )

City of Des Moines v. City Development Board , 335 N.W.2d 449 ( 1983 )

Village of Frankfort v. Environmental Protection Agency , 366 Ill. App. 3d 649 ( 2006 )

Kane v. City of Beaverton , 202 Or. App. 431 ( 2005 )

artichoke-joes-california-grand-casino-fairfield-youth-foundation-lucky , 353 F.3d 712 ( 2003 )

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