Alaska Survival v. Surface Transportation Board , 705 F.3d 1073 ( 2013 )


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  •                FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    ALASKA SURVIVAL; SIERRA CLUB;            No. 12-70218
    COOK INLETKEEPER,
    Petitioners,         STB No.
    FD-35095
    v.
    SURFACE TRANSPORTATION BOARD ;            OPINION
    UNITED STATES OF AMERICA ,
    Respondents,
    ALASKA RAILROAD CORPORATION ;
    MATANUSKA -SUSITNA BOROUGH ;
    STATE OF ALASKA ,
    Respondents-Intervenors.
    On Petition for Review of an Order of the
    Surface Transportation Board
    Argued and Submitted
    November 8, 2012—San Francisco, California
    Filed January 23, 2013
    2        ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    Before: Ronald M. Gould and Milan D. Smith, Jr., Circuit
    Judges, and Kevin Thomas Duffy, District Judge.*
    Opinion by Judge Gould
    SUMMARY**
    Surface Transportation Board
    The panel denied a petition for review challenging the
    Surface Transportation Board’s decision authorizing Alaska
    Railroad Corporation to construct a railroad line extension
    between Port MacKenzie and Wasilla, Alaska.
    The Surface Transportation Board granted the
    Corporation an exemption under 
    49 U.S.C. § 10502
     of the
    Interstate Commerce Commission Termination Act of 1995
    and authorized the Corporation to construct the rail line.
    Petitioners challenged the Board’s authority to exempt the
    Corporation from the full licensing provision of 
    49 U.S.C. § 10901
    , and the Board’s compliance with the National
    Environmental Policy Act.
    The panel held that petitioners were not procedurally
    barred from raising their challenge to the exemption under
    
    49 U.S.C. § 10502
     of the ICCTA. The panel further held that
    *
    The Honorable Kevin Thomas Duffy, United States District Judge for
    the Southern District of New York, sitting by designation.
    **
    This summary constitutes no part of the opinion of the court. It has
    been prepared by court staff for the convenience of the reader.
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .             3
    the procedures of the Board under the ICCTA were sufficient
    and were satisfied. The panel also held that there was no error
    under the National Environmental Policy Act because the
    purpose and need statement was adequate; the agency
    considered all viable, reasonable alternatives; and the
    environmental impact statement contained a detailed,
    thorough, and thoughtful discussion of the wetlands impacts
    and mitigation measures.
    COUNSEL
    James B. Dougherty (argued), Washington, D.C.; Jessica
    Yarnall Loarie, Sierra Club, San Francisco, California for
    Petitioners.
    Theodore L. Hunt (argued), Raymond A. Atkins, Evelyn G.
    Kitay, Surface Transportation Board, Washington, D.C.;
    Mary Gabrielle Sprague, Robert B. Nicholson, and John P.
    Fonte, Department of Justice, Washington D.C., for
    Respondents.
    Jay C. Johnson (argued) and Kathryn Kusske Floyd, Dorsey
    & Whitney LLP, Washington D.C., for Respondents-
    Intervenors Alaska Railroad Corporation and Matanuska-
    Susitna Borough.
    Michael C. Geraghty and Sean P. Lynch, State of Alaska,
    Department of Law, Juneau, Alaska for Respondent-
    Intervenor the State of Alaska.
    4      ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    OPINION
    GOULD, Circuit Judge:
    In this appeal we consider whether principles of
    administrative law and a controlling statute governing
    railroad extensions and applicable protections of
    environmental laws require us to grant a petition for review
    of a specialized agency’s decision to permit the extension of
    a railroad line to Port MacKenzie, Alaska. Petitioners Alaska
    Survival, Sierra Club, and Cook Inletkeeper seek review of
    the Surface Transportation Board’s (STB) decision
    authorizing Alaska Railroad Corporation (ARRC) to
    construct about thirty-five miles of new rail line between Port
    MacKenzie, located in Alaska’s Cook Inlet, and the railroad’s
    main line, located near Wasilla, Alaska. The STB granted
    ARRC an exemption under 
    49 U.S.C. § 10502
     of the
    Interstate Commerce Commission Termination Act of 1995
    (ICCTA) and authorized ARRC to construct the rail line.
    Petitioners challenge the STB’s authority to exempt the
    railroad from the full licensing provisions of 
    49 U.S.C. § 10901
     and the agency’s compliance with the National
    Environmental Policy Act (NEPA). Respondents claim that
    Petitioners did not administratively exhaust the issue of
    whether the STB properly granted the exemption and that the
    issue is not properly before us. We have jurisdiction under
    
    28 U.S.C. §§ 2321
    (a), 2342(5), and 2344, and we deny the
    petition for review.
    I. PARTIES
    We first identify the parties. Petitioners Alaska Survival,
    Sierra Club, and Cook Inletkeeper are nonprofit organizations
    dedicated to protecting wild lands, waters, and wildlife in
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .             5
    Susitna Valley and the Cook Inlet watershed. Respondent
    STB is a federal agency with exclusive licensing authority for
    the construction and operation of new rail lines.
    Respondents-Intervenors are the State of Alaska, a financial
    supporter of the project; the ARRC, a public corporation
    partially owned by the State of Alaska that will build and
    operate the railroad; and the Matanuska-Susitna Borough, the
    owner and operator of the Port MacKenzie dock and adjacent
    uplands.
    II. FACTUAL BACKGROUND
    We next review the factual background. ARRC seeks to
    build and operate thirty-five miles of rail line connecting Port
    MacKenzie, located 1.5 miles across the Cook Inlet from the
    Port of Anchorage, to ARRC’s main line near Wasilla. The
    proposed rail line would consist of a single-track rail line
    with a two-hundred-foot-wide right of way, buried utility
    lines, an access road, communication towers, and a terminal
    reserve area. The purpose of the rail line is to “provide rail
    service to Port MacKenzie and to connect it with the existing
    ARRC main line, providing Port MacKenzie customers with
    rail transportation between Port MacKenzie and Interior
    Alaska.” The proposed rail line will pass through the waters
    and wetlands of the Susitna Lowland that provides a home to
    wolves, bear, foxes, salmon, and other wildlife.
    In February 2008, the STB’s Office of Environmental
    Analysis (OEA) initiated the Environmental Impact
    Statement (EIS) public scoping process in anticipation of
    6        ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    ARRC’s request for authorization to construct the rail line.1
    ARRC filed its § 10502 petition in December 2008,
    requesting an exemption from the full licensing procedures
    required under 
    49 U.S.C. § 10901
    . OEA released the draft
    EIS (DEIS) in March 2010. Elected officials, organizations,
    citizens, and various agencies submitted around 160
    comments on the DEIS. The final EIS (FEIS) was released
    in March 2011. It recommended that ARRC employ one
    hundred mitigation measures to reduce environmental
    impacts but acknowledged that even with mitigation,
    construction of the rail line would increase erosion and
    sediment transport to water, cause nutrient loading, and likely
    leak petrochemicals to nearby waters. Construction would
    also lead to loss of wetland habitat, water degradation, and
    potentially a change in the hydrology of the wetland system.
    The FEIS identified the Mac East Variant-Connector 3
    Variant-Houston-Houston South Alternative as the
    environmentally preferable alternative for the proposed line.
    OEA did not request comment on the FEIS, but the
    Environmental Protection Agency (EPA), the Alaska
    Department of Natural Resources (ADNR), Sierra Club, and
    several citizens submitted comments noting various
    deficiencies. For example, the EPA expressed concern that
    the purpose and need statement did not contain sufficient
    information on the project’s need or public necessity. In
    response to these and other concerns, the OEA prepared an
    Environmental Memorandum (EM) addressing the post-FEIS
    1
    The agency conducted this public scoping process before ARRC filed
    its application, indicating that ARRC “plan[ned]” to file its petition for
    exemption under § 10502. The Alaska Railroad Corporation— Petition for
    Exemption To Construct and Operate a Rail Line Extension to Port
    MacKenzie, AK, 
    73 Fed. Reg. 8106
    -01 (Feb. 12, 2008).
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .                      7
    comments and concluding that a supplemental EIS was not
    necessary.
    After reviewing the entire environmental record,
    including the FEIS, the EM, and public comments, the STB
    issued a 2:1 decision on November 17, 2011, granting the
    § 10502 exemption and authorizing the rail line. The STB
    determined first that an exemption was appropriate because
    it was consistent with parts (2), (4), (5), and (7) of the
    transportation policy and second that full consideration under
    § 10901 was not necessary to protect shippers from abuse of
    market power. The STB concluded that the record showed
    that the EIS took a “hard look” at the potential environmental
    impacts of the proposed action and that it carefully
    considered alternatives to the planned action. The STB then
    adopted all of the OEA’s environmental review and
    conclusions, authorized construction of the environmentally
    preferable alternative, and imposed on ARRC the one
    hundred mitigation measures recommended by OEA to
    address the project’s adverse impacts on surface waters,
    wetlands, fisheries, and recreational trail access.
    Commissioner Mulvey dissented from the STB’s decision
    based on “the [project’s] likely substantial adverse impact on
    the environment and the poor showing of a purpose and need
    for the line” and on his belief that the project is not in the
    public interest.
    Petitioners seek review of the STB’s decision.2
    2
    In an October 1, 2012, Order, we granted Petitioners’ emergency
    motion for a stay pending the merits panel’s review of the STB order.
    Order, Alaska Survival v. Surface Transp. Bd., No. 12-70218 (9th Cir. Oct.
    1, 2012). After full briefing and oral argument, we lifted that emergency
    stay in an order published November 28, 2012, concluding that the
    8       ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    III. STATUTORY FRAMEWORK
    Before reaching the merits, we consider the statutory
    framework relevant to this petition for review.
    A. ICCTA
    The ICCTA amended existing railroad statutes, replaced
    the Interstate Commerce Commission (ICC) with the STB,
    and provided that ICC precedent applies to the STB. See N.
    Plains Res. Council, Inc. v. Surface Transp. Bd., 
    668 F.3d 1067
    , 1073 n.2 (9th Cir. 2011) [hereinafter NPRC]; Pub. L.
    No. 104–88, 
    109 Stat. 803
     (1995) (codified at 
    49 U.S.C. §§ 10101
    –16106 (2012)). Under 
    49 U.S.C. § 10901
    , the
    “Board has exclusive licensing authority for the construction
    and operation of new railroad lines” and may certify rail line
    construction and operation unless the STB finds the project
    to be “inconsistent with the public convenience and
    necessity.” NPRC, 
    668 F.3d at 1073
    . To determine public
    convenience and necessity, the STB looks at a “variety of
    circumstances” surrounding the proposed action, which can
    include consideration of the applicant’s financial fitness, the
    public demand or need for the service, and the potential harm
    to competitors. See 
    id. at 1092
     (quoting N.M. Navajo
    Ranchers Ass’n v. Interstate Commerce Comm’n, 
    702 F.2d 227
    , 232 (D.C. Cir. 1983)). As an alternative to the detailed
    balance of hardships no longer tipped in favor of Petitioners. Order,
    Alaska Survival v. Surface Transp. Bd., No. 12-70218, 2012 W L 5951297
    (9th Cir. Nov. 28, 2012).
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .                     9
    § 10901 procedures, 
    49 U.S.C. § 105023
     provides that the
    STB
    shall exempt a person, class of persons, or a
    transaction or service whenever the Board
    finds that the application in whole or in part of
    a provision of this part – (1) is not necessary
    to carry out the transportation policy of
    section 10101 of this title;4 and (2) either –
    3
    The ICCTA renumbered various provisions of the Interstate Commerce
    Act, including § 10502, which was formerly codified under 
    49 U.S.C. § 10505
    . See United Transp. Union v. Burlington N. Santa Fe R.R. Co.,
    
    528 F.3d 674
    , 677 n.2 (9th Cir. 2008).
    4
    The ICCTA specifies that the fifteen objectives of the Rail
    Transportation Policy are:
    (1) to allow, to the maximum extent possible,
    competition and the demand for services to establish
    reasonable rates for transportation by rail; (2) to
    minimize the need for Federal regulatory control over
    the rail transportation system and to require fair and
    expeditious regulatory decisions when regulation is
    required; (3) to promote a safe and efficient rail
    transportation system by allowing rail carriers to earn
    adequate revenues, as determined by the Board; (4) to
    ensure the development and continuation of a sound rail
    transportation system with effective competition among
    rail carriers and with other modes, to meet the needs of
    the public and the national defense; (5) to foster sound
    economic conditions in transportation and to ensure
    effective competition and coordination between rail
    carriers and other modes; (6) to maintain reasonable
    rates where there is an absence of effective competition
    and where rail rates provide revenues which exceed the
    amount necessary to maintain the rail system and to
    attract capital; (7) to reduce regulatory barriers to entry
    10      ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    (A) the transaction or service is of limited
    scope; or (B) the application in whole or in
    part of the provision is not needed to protect
    shippers from the abuse of market power.
    
    49 U.S.C. § 10502
     (2012). “Obtaining an exemption
    streamlines the regulatory process by eliminating notice and
    comment in some cases, by making a hearing unnecessary,
    and by expediting the final decision.” Vill. of Palestine v.
    Interstate Commerce Comm’n, 
    936 F.2d 1335
    , 1337 (D.C.
    Cir. 1991).
    into and exit from the industry; (8) to operate
    transportation facilities and equipment without
    detriment to the public health and safety; (9) to
    encourage honest and efficient management of
    railroads; (10) to require rail carriers, to the maximum
    extent practicable, to rely on individual rate increases,
    and to limit the use of increases of general applicability;
    (11) to encourage fair wages and safe and suitable
    working conditions in the railroad industry; (12) to
    prohibit predatory pricing and practices, to avoid undue
    concentrations of market power, and to prohibit
    unlawful discrimination; (13) to ensure the availability
    of accurate cost information in regulatory proceedings,
    while minimizing the burden on rail carriers of
    developing and maintaining the capability of providing
    such information; (14) to encourage and promote
    energy conservation; and (15) to provide for the
    expeditious handling and resolution of all proceedings
    required or permitted to be brought under this part.
    
    49 U.S.C. § 10101
     (2012).
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .          11
    B. NEPA
    “The National Environmental Protection Act of 1969,
    commonly known as NEPA, is ‘our basic national charter for
    protection of the environment.’” Barnes v. U.S. Dep’t of
    Transp., 
    655 F.3d 1124
    , 1131 (9th Cir. 2011) (quoting 
    40 C.F.R. § 1500.1
    (a) (2006)). “NEPA imposes procedural
    requirements designed to force agencies to take a ‘hard look’
    at environmental consequences” of major federal action. 
    Id.
    (quoting Earth Island Inst. v. U.S. Forest Serv., 
    351 F.3d 1291
    , 1300 (9th Cir. 2003)). “For any proposed major federal
    action . . . NEPA requires the agency to prepare an [EIS].”
    Lands Council v. Powell, 
    395 F.3d 1019
    , 1026 (9th Cir.
    2004). An EIS “shall provide full and fair discussion of
    significant environmental impacts and shall inform
    decisionmakers and the public of the reasonable alternatives
    which would avoid or minimize adverse impacts or enhance
    the quality of the human environment.” 
    40 C.F.R. § 1502.1
    .
    The Council on Environmental Quality has promulgated
    regulations governing the implementation of NEPA. See 
    40 C.F.R. §§ 1500.1
    –1508.28. The STB has also promulgated
    its own regulations governing how NEPA applies to railroad
    construction projects. See NPRC, 
    668 F.3d at 1072
    (regulations codified at 
    49 C.F.R. §§ 1105.1
    –1105.12).
    Under these regulations, the OEA generally prepares an EIS
    for new railroad construction proposals.       
    49 C.F.R. § 1105.6
    (a) (2012). The STB invites public comment on the
    scope of the environmental review and on the DEIS. 
    49 C.F.R. § 1105.10
    (a) (2012). The FEIS should discuss the
    comments received on the DEIS and note any changes made
    in response to them. 
    Id.
     When determining whether to
    authorize a construction project, the STB considers the
    environmental record, which includes the FEIS and any
    12     ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    comments and responses concerning environmental issues.
    
    49 C.F.R. § 1105.10
    (f); see also NPRC, 
    668 F.3d at 1073
    .
    C. APA
    Judicial review of agency action is governed by § 706 of
    the Administrative Procedure Act (APA). 
    5 U.S.C. § 706
    (2012); see also NPRC, 
    668 F.3d at 1074
    . Under
    § 706(2)(A), we will uphold an agency’s action unless it is
    “‘arbitrary, capricious, an abuse of discretion, or otherwise
    not in accordance with law.’” NPRC, 
    668 F.3d at 1074
    (quoting 
    5 U.S.C. § 706
    (2)(A)). Agency action is arbitrary
    and capricious if “‘the record plainly demonstrates that [the
    agency] made a clear error in judgment.’” 
    Id. at 1075
    (quoting Lands Council v. McNair, 
    537 F.3d 981
    , 994 (9th
    Cir. 2008) (en banc), overruled on other grounds by Winter
    v. Natural Res. Def. Council, Inc., 
    555 U.S. 7
     (2008)). We
    limit our review of agency action to the record, and we will
    not substitute our judgment for that of the agency. See 
    id.
     at
    1074–75 (citing McNair, 
    537 F.3d at 987
    ). Section 706
    controls our review of both the STB’s grant of the § 10502
    exemption and the STB’s actions pursuant to NEPA. See id.
    at 1074, 1076.
    IV. DISCUSSION
    Petitioners argue that the STB improperly exempted the
    proposed rail line from the procedural requirements of
    § 10901. Before we reach that issue, we must first address
    whether it is properly before us. Respondents and
    Respondents-Intervenors ARRC and Matanuska-Susitna
    Borough assert that it is not. They contend that Petitioners
    did not raise the issue of the agency’s use of the exemption
    “at the appropriate time under the agency’s practice,” and that
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .            13
    this failure to exhaust prevents us from deciding these issues
    now. Petitioners respond that the Supreme Court’s plurality
    decision in Sims v. Apfel, 
    530 U.S. 103
     (2000), makes issue
    exhaustion requirements inapplicable here. We conclude that
    Petitioners are not procedurally barred from raising their
    challenge to the § 10502 exemption.
    “The purpose of the exhaustion doctrine is to permit
    administrative agencies to utilize their expertise, correct any
    mistakes, and avoid unnecessary judicial intervention in the
    process.” Lands Council v. McNair, 
    629 F.3d 1070
    , 1076
    (9th Cir. 2010). But in Sims, the Supreme Court indicated
    that judicially created issue exhaustion is not always
    appropriate. Sims, 
    530 U.S. at 112
    . The Court considered
    whether a person claiming Social Security benefits waived
    judicial review of issues not raised before the agency’s
    appeals council. 
    Id.
     at 104–05. A plurality determined that
    when neither statute nor regulation requires issue exhaustion,
    judicially created issue exhaustion is inappropriate where the
    administrative proceeding was informal and “inquisitorial
    rather than adversarial,” and the claimant exhausted
    administrative remedies. 
    Id. at 108, 111, 112
    . Justice
    O’Connor concurred, noting that the issue exhaustion
    “inquiry requires careful examination of ‘the characteristics
    of the particular administrative procedure provided.’” 
    Id. at 113
     (O’Connor, J., concurring) (quoting McCarthy v.
    Madigan, 
    503 U.S. 140
    , 146 (1992)). Similarly, we have
    noted that “there is no bright-line test to determine whether a
    party has properly exhausted a claim to the [agency]; the
    determination must be made on a case-by-case basis.”
    Buckingham v. Sec’y of U.S. Dep’t of Agric., 
    603 F.3d 1073
    ,
    1080 (9th Cir. 2010). And it is a clear rule in our court “that
    the exhaustion requirement should be interpreted broadly.”
    Nat’l Parks & Conservation Ass’n v. Bureau of Land Mgmt.,
    14     ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    
    606 F.3d 1058
    , 1065 (9th Cir. 2010) [hereinafter NPCA].
    Because neither statute nor regulation required issue
    exhaustion in this matter, we must consider whether judicially
    imposed issue exhaustion is appropriate here.
    We have applied Sims in the adjudicatory context,
    Vaught v. Scottsdale Healthcare Corp. Health Plan, 
    546 F.3d 620
     (9th Cir. 2008), but determined that Sims “offers no
    guidance” in the notice-and-comment rulemaking context,
    Universal Health Servs., Inc. v. Thompson, 
    363 F.3d 1013
    ,
    1020 (9th Cir. 2004). Neither case is directly on point.
    Although the STB conducts rulemaking when it grants an
    exemption, see CMC Real Estate Corp. v. Interstate
    Commerce Comm’n, 
    807 F.2d 1025
    , 1030 (D.C. Cir. 1986),
    Universal Health Services is distinguishable because it
    addresses notice-and-comment rulemaking, which is not
    generally employed by the STB during the exemption
    process. See 
    49 C.F.R. § 1121.4
    (a) (2012) (stating that the
    “[e]xemption proceedings are informal, and public comments
    are generally not sought during consideration of exemption
    petition proposals”). Although the adjudicatory nature of the
    ERISA proceeding distinguishes Vaught from the STB’s
    grant of the exemption, Vaught is instructive because it
    concludes that when an agency engages in a non-adversarial,
    informal proceeding and does not provide notice of issue
    exhaustion requirements, then judicially created issue
    exhaustion is likely inappropriate. 
    546 F.3d at
    631–33.
    Similarly, the STB’s procedures were informal and provided
    no notice to interested parties that to later challenge the
    STB’s decision one must submit comments during the
    exemption process. In other cases, the STB, or its
    predecessor the ICC, explicitly requested public comment on
    exemptions. See, e.g., Or. Public Util. Comm’n v. Interstate
    Commerce Comm’n, 
    979 F.2d 778
    , 779 (9th Cir. 1992)
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .                    15
    [hereinafter OPUC] (noting that the ICC granted an
    exemption subject to public comment); Ill. Commerce
    Comm’n v. Interstate Commerce Comm’n, 
    787 F.2d 616
    , 622
    (D.C. Cir. 1986) (stating that the ICC issued a notice
    proposing a blanket exemption).5
    Respondents argue that Petitioners should have
    commented on the exemption during the EIS process, but the
    record does not show that the STB ever said that was the
    appropriate time in which to raise issues with the exemption
    process. Although the STB published notice of its EIS
    proceedings, which included reference to ARRC’s § 10502
    application, it never provided direct notice of or requested
    public comment on the exemption. See, e.g., The Alaska
    Railroad Corporation—Petition for Exemption To Construct
    and Operate a Rail Line Extension to Port MacKenzie, AK,
    
    73 Fed. Reg. 8106
    -01 (Feb. 12, 2008). Further, the agency
    has stated that it does not usually rely on comments to frame
    issues for its review of exemption petitions. See Modification
    of Procedure for Handling Exemptions Filed Under 49 U.S.C.
    10505, 
    45 Fed. Reg. 85180
    -02 (Dec. 24, 1980) (stating that
    “[c]omments have added very little to [the ICC’s]
    5
    Respondents do not contend that Petitioners failed to exhaust their
    administrative remedies, see 
    49 C.F.R. § 1115.6
     (stating that a party must
    exhaust administrative remedies before going to court), but only that they
    failed to raise the issue of the STB’s grant of the § 10502 exemption
    before the STB, see Sims, 
    530 U.S. at 107
     (distinguishing exhaustion of
    administrative remedies from issue exhaustion). Although Petitioners
    could have filed a petition for reconsideration of the STB’s decision, see
    
    49 C.F.R. § 1121.4
    (e), they were not required to do so, see 
    49 U.S.C. § 722
    (c)(d) (stating that parties may petition to reopen and reconsider an
    STB action or seek judicial review); 
    49 C.F.R. § 1115.3
     (same); see also
    
    5 U.S.C. § 704
     (stating that actions are final for purposes of review
    whether or not a request for reconsideration has been presented).
    16       ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    determination of exemption petitions”); cf. Sims, 
    530 U.S. at 112
     (stating that the Social Security Appeals Council “does
    not depend much, if at all, on claimants to identify issues for
    review”). Because this administrative process lacks an
    adversarial component, “the reasons for [us] to require issue
    exhaustion are much weaker.” Sims, 
    530 U.S. at 110
    .6
    Based on the informal nature of these proceedings and the
    lack of notice to interested parties of the “appropriate time”
    in which to raise their objections to the agency’s decision to
    apply the § 10502 exemption, we conclude that the question
    of whether the STB violated 
    49 U.S.C. §§ 10901
     or 10502 in
    granting the exemption for the Port MacKenzie rail line is
    properly before us.
    A. ICCTA Exemption From Public Convenience and
    Necessity Review
    Petitioners contend that the STB did not properly apply
    the standards set forth in §§ 10502 and 10901 when it granted
    ARRC’s application for an exemption to construct the
    proposed rail line. They challenge the STB’s decision not to
    6
    The D.C. Circuit has likewise refused to apply issue exhaustion in the
    rulemaking context when petitioners were unable to administratively raise
    their argument challenging lack of notice before the STB issued its final
    rule. See CSX Transp., Inc. v. Surface Transp. Bd., 
    584 F.3d 1076
    , 1079
    (D.C. Cir. 2009). W e note that the Eighth Circuit has applied judicially
    imposed issue exhaustion to a challenge to an STB decision. See Otter
    Tail Power Co. v. Surface Transp. Bd., 
    484 F.3d 959
    , 962 (8th Cir. 2007).
    But that decision is inapposite because the underlying administrative
    proceeding was adversarial in nature. See 
    id.
     at 961–62, 963 (describing
    that both Otter Tail and the Burlington Northern Santa Fe Railway
    presented briefing and other information to the STB in a dispute over the
    reasonableness of shipping rates).
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .            17
    consider the public convenience and necessity of the project
    and the STB’s assessment of the transportation policy under
    § 10101. We hold that it was not arbitrary, capricious, an
    abuse of discretion, or contrary to law for the STB to grant
    ARRC an exemption under § 10502 from the full licensing
    procedures required by § 10901. We further hold that
    substantial evidence supports the STB’s findings favoring its
    grant of the exemption.
    Section 10502(a) states that the STB “shall” grant an
    exemption from a provision of the statute if (1) application of
    that provision is not necessary to carry out the transportation
    policy and (2) the transaction is of limited scope or the
    application of the full statutory procedures is not needed to
    protect shippers from abuse of market power. 
    49 U.S.C. § 10502
    (a). This exemption procedure reflects Congress’s
    “determination that there be continuing evaluation of the
    appropriateness of regulation and continuing deregulation
    where consistent with the Act’s policies.” Coal Exps. Ass’n
    of the U.S., Inc. v. United States, 
    745 F.2d 76
    , 82 (D.C. Cir.
    1984). Section 10901 sets forth a more detailed procedure for
    authorizing construction and operation of rail lines, which
    requires a determination that the activities are consistent with
    the public convenience and necessity.               
    49 U.S.C. § 10901
    (a)–(c).
    We review the STB’s statutory construction of the ICCTA
    under Chevron U.S.A., Inc. v. Nat. Res. Defense Council,
    
    467 U.S. 837
     (1984). See NPRC, 
    668 F.3d at
    1075–76.
    “First, we inquire whether Congress has addressed directly
    the issue before the court,” and if so, “the agency ‘must give
    effect to the unambiguously expressed intent of Congress.’”
    
    Id.
     (quoting Chevron, 
    467 U.S. at
    842–43). If Congress has
    not unambiguously addressed the specific issue before us,
    18     ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    then we must determine whether the agency’s construction of
    the statute is permissible. Id. at 1076.
    Petitioners’ argument that we should review the STB’s
    action pursuant to the standards set forth in § 10901 lacks
    merit. Petitioners rely on vague extra-circuit precedent to
    argue that when the STB grants a § 10502 exemption “it
    summarily issues a certificate of public convenience and
    necessity” as required under § 10901. HolRail, LLC v.
    Surface Transp. Bd., 
    515 F.3d 1313
    , 1315 (D.C. Cir. 2008)
    (reviewing an STB decision concerning a railway’s right to
    cross another railway’s right of way). They contend that
    HolRail should be read to mean that the STB should have
    performed a full § 10901 analysis of public convenience and
    necessity. Petitioners also assert that the STB erred in not
    analyzing the public convenience and necessity of the
    proposed rail line when the project’s financial viability was
    called into question. These arguments are not persuasive.
    We do not read HolRail as requiring that the STB engage in
    a public convenience and necessity analysis before granting
    an exemption from that very procedure. Such a conclusion
    would run contrary to the plain language of § 10502(a),
    which mandates that the STB grant exemptions from the full
    proceedings required under the statute. See 
    49 U.S.C. § 10502
    (a). Further, neither § 10502 nor the STB’s
    implementing regulations indicate that an exemption
    proceeding is improper when the project’s financial viability
    is questioned. It might be argued with some force that it is
    not the best practice to employ the exemption process for a
    contentious project, but that is for the agency and not us to
    decide. See City of Carmel-By-The-Sea v. U.S. Dep’t of
    Transp., 
    123 F.3d 1142
    , 1150 (9th Cir. 1997) (stating that the
    court should not substitute its judgment for that of the
    agency).
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .            19
    Petitioners also argue that the STB does not have
    authority to exempt a project as large as the proposed spur.
    This argument misreads the statute. Section 10502(a)(2)
    allows the STB to grant an exemption if the project is either
    of limited scope or the full statutory proceedings are not
    necessary to protect shippers from abuse of market power.
    
    49 U.S.C. § 10502
    (a)(2). The plain language of the statute
    does not require the STB to consider both factors. Here, the
    STB chose to analyze the project’s impact on shippers instead
    of its scope. Because the STB concluded that the full
    statutory proceedings were not necessary to protect shippers
    from abuse of market power, the STB had no duty to consider
    whether the project was of limited size. The STB acted
    within its authority when it applied the analysis required by
    § 10502(a) without considering the public convenience and
    necessity under § 10901.
    Petitioners also contend that the STB did not consider
    relevant parts of the fifteen-part Rail Transportation Policy
    and that for those factors considered the STB failed to explain
    how the record supported its findings. We disagree. The
    STB did not act arbitrarily or capriciously in determining the
    applicable sections of the Rail Transportation Policy set out
    in § 10101, and substantial evidence supports the STB’s
    findings for those factors considered.
    “When the [STB] grants an exemption from a portion of
    the Interstate Commerce Act, the [STB] needs to take into
    account only the purpose of that portion of the statute from
    which exemption is granted.” OPUC, 
    979 F.2d at 781
    .
    Stated another way, “[t]he scope of the [STB’s] review in an
    exemption proceeding” is a “function of the relationship
    between the section from which an exemption is sought,”
    here § 10901, and the Rail Transportation Policy enumerated
    20      ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    in § 10101. Vill. of Palestine, 
    936 F.2d at
    1338–39 (internal
    quotations omitted). This rule ensures that the STB will not
    be “faced with the impossible task of reconciling a variety of
    different objectives of the [Rail] Transportation Policy.”
    OPUC, 
    979 F.2d at 781
    . “[T]he [STB] need not explicitly
    discuss in its decision each factor enumerated . . . . All that is
    necessary is that the essential basis of the [STB]’s rationale
    be clear enough so that a court can satisfy itself that the
    [STB] has performed its function.” Coal Exps., 
    745 F.2d at
    94 n.22 (quoting Alamo Express, Inc. v. Interstate Commerce
    Comm’n, 
    673 F.2d 852
    , 860 (5th Cir. 1982)).
    The STB did not act arbitrarily by failing to consider
    additional policy factors. Petitioners contend that the STB
    should have considered three additional factors: (3)
    promoting “a safe and efficient rail transportation system by
    allowing rail carriers to earn adequate revenues, as
    determined by the Board,” (9) encouraging “honest and
    efficient management of railroads,” and (14) encouraging and
    promoting energy conservation. 
    49 U.S.C. § 10101
    .
    Petitioners do not show how these factors relate to the
    purpose of § 10901. Such a showing would make it
    necessary for the STB to consider those provisions. See
    OPUC, 
    979 F.2d at 781
    . Nor do they show that the STB’s
    interpretation of which factors are relevant to the purpose of
    § 10901 is an unreasonable interpretation of the statute.
    Petitioners claim that Illinois Commerce Commission and
    Coal Exporters impose a heavy burden on the STB to identify
    all the relevant policies furthered by an exemption. But the
    STB does not have a duty to make “findings about each
    aspect of the rail transportation policy possibly affected” by
    its grant of the exemption. Vill. of Palestine, 
    936 F.2d at 1339
    . To require such analysis would make the exemption
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .            21
    process “broader and possibly more onerous than the
    proceeding from which exemption was sought.” 
    Id.
    Petitioners also contend that Illinois Commerce Commission
    and Coal Exporters show that the STB is not entitled to “wide
    deference” in choosing which factors of the policy apply.
    Such an assertion runs contrary to our standard of review
    under the APA. See NPRC, 
    668 F.3d at 1076
     (stating that the
    STB’s decision on railroad application approvals must be
    upheld unless arbitrary, capricious, an abuse of discretion, or
    not in accordance with law). We conclude that the STB’s
    decision to consider only factors (2), (4), (5), and (7) was
    reasonable.
    Likewise, the STB provided sufficient findings supporting
    its consideration of factors (2), (4), (5), and (7). The STB
    explained that the record supported its conclusion that
    construction would be consistent with factors (4), ensuring
    the development and continuation of a sound rail
    transportation system, and (5), fostering sound economic
    conditions in transportation and ensuring effective
    competition and coordination between rail carriers and other
    modes. The STB noted that the rail line would be more
    efficient than truck transportation and would enhance
    intermodal competition by providing an alternative to freight
    to meet the needs of shippers. Further, the EIS discussed the
    economic and transportation benefits of the rail line.
    The STB also found that the exemption would reduce the
    need for federal regulation and decrease regulatory barriers to
    entry in support of factors (2), minimizing the need for
    Federal regulatory control, and (7), reducing regulatory
    barriers. These findings are reasonable when the exemption
    made it unnecessary for ARRC to go through otherwise
    lengthy regulatory procedures under § 10901. The STB’s
    22     ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    explanations are sufficient for us to determine the STB’s
    rationale and satisfy ourselves that the STB performed its
    function as required by the statute. See Coal Exps., 
    745 F.2d at
    94 n.22. We conclude that substantial evidence supports
    the agency’s findings. See In re Transcon Lines, 
    89 F.3d 559
    ,
    564 (9th Cir. 1996) (describing the substantial evidence
    standard).
    B. NEPA
    Petitioners raise a second issue of whether the STB’s EIS
    complied with NEPA. They contend that the STB violated
    NEPA by adopting an unreasonable purpose and need
    statement, refusing to consider an alternative route without an
    access road, and inadequately assessing the project’s adverse
    effect on wetlands. We disagree.
    1. Purpose and Need Statement
    Petitioners argue that the STB erred by adopting a
    purpose and need statement focused exclusively on the goals
    stated by ARRC. They contend that the STB did not take into
    consideration public goals when defining the purpose and
    need. Respondents assert that the purpose and need statement
    properly focused on both the STB’s enabling statute and
    ARRC’s goals. We agree with Respondents, and we hold that
    the STB did not act arbitrarily or capriciously by generating
    the purpose and need statement based on the statutory context
    and ARRC’s objectives.
    A statement of purpose and need must “briefly specify the
    underlying purpose and need to which the agency is
    responding in proposing the alternatives including the
    proposed action.” 
    40 C.F.R. § 1502.13
     (2012). Courts
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .             23
    review purpose and need statements for reasonableness
    giving the agency considerable discretion to define a project’s
    purpose and need. Westlands Water Dist. v. U.S. Dep’t of
    Interior, 
    376 F.3d 853
    , 866 (9th Cir. 2004). A purpose and
    need statement will fail if it unreasonably narrows the
    agency’s consideration of alternatives so that the outcome is
    preordained. See NPCA, 
    606 F.3d at 1070
    . “Where an action
    is taken pursuant to a specific statute, the statutory objectives
    of the project serve as a guide by which to determine the
    reasonableness of objectives outlined in an EIS.” Westlands
    Water Dist., 
    376 F.3d at 866
    . An agency must look hard at
    the factors relevant to definition of purpose, which can
    include private goals, especially when the agency is
    determining whether to issue a permit or license. NPCA,
    
    606 F.3d at
    1070–71.
    Petitioners contend that the STB failed to articulate a
    purpose and need that reflected the agency’s perspective.
    They argue that STB erred when it adopted ARRC’s asserted
    goals without considering the “public convenience and
    necessity” under § 10901. Petitioners are correct that an
    agency must consider the statutory context of the proposed
    action and any other congressional directives in addition to a
    private applicant’s objectives. NPCA, 
    606 F.3d at 1070
    ; see
    also League of Wilderness Defenders-Blue Mountains
    Biodiversity Project v. U.S. Forest Serv., 
    689 F.3d 1060
    , 1070
    (9th Cir. 2012) (considering statutory context to determine
    reasonableness of purpose and need statement). But when
    granting a license or permit, the agency has discretion to
    determine the best way to implement its statutory objectives,
    see Westlands Water Dist., 
    376 F.3d at 867
    , in light of the
    goals stated by the applicant, see Citizens Against Burlington,
    Inc. v. Busey, 
    938 F.2d 190
    , 199 (D.C. Cir. 1991) (“Congress
    did not expect agencies to determine for the applicant what
    24      ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    the goals of the applicant’s proposal should be.”). We must
    consider whether the purpose and need statement is
    reasonable in light of the ARRC’s stated goals and the
    statutory context of the ICCTA. See NPCA, 
    606 F.3d at 1070
    .
    STB’s statutory authorization to grant this exemption is
    found in 
    49 U.S.C. §§ 10101
    , 10502, and 10901. These
    provisions indicate that Congress intended to privilege
    interests of the applicant by requiring the STB grant § 10502
    exemptions unless the exemption would be contrary to the
    Rail Transportation Policy, see Coal Exps., 
    745 F.2d at 82
    ,
    and by instructing the STB to authorize construction unless
    it would be inconsistent with the public convenience and
    necessity under § 10901, see NPRC, 
    668 F.3d at
    1091–92.
    Even given their emphasis on construction and private
    interests, these sections also require some consideration of the
    public need for the project. See 
    id. at 1092
     (discussing STB’s
    test for determining public convenience and necessity, which
    includes an analysis of “public demand or need”); see also
    
    49 U.S.C. § 10101
    (4) (stating that it is part of the Rail
    Transportation Policy to ensure that the rail line system meets
    the needs of the public). But “public need” can be interpreted
    broadly, and the STB has discretion to determine which
    public needs it will consider. See NPRC, 
    668 F.3d at
    1093–94 (concluding that the STB did not err by relying on
    support from farmers, coal producers, public utilities, and
    state officials to determine public need rather than the needs
    of shippers). Here, the purpose and need statement noted the
    State of Alaska’s financial support of the project and Port
    MacKenzie’s interest in a rail line to provide more efficient
    and cost-effective transport services to interior Alaska.
    Further, in its decision to grant the exemption, the STB
    connected ARRC’s goals to its enabling statute, stating that
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .            25
    “ARRC’s proposal to provide an additional freight
    transportation mode is consistent” with the relevant factors of
    the rail transportation policy. We conclude that the STB
    “thought hard” about the appropriate factors, including its
    enabling statute and the applicant’s needs, when it adopted
    the purpose and need statement. See Citizens Against
    Burlington, 
    938 F.2d at 198
    .
    Next, Petitioners argue that by “thoughtlessly adopt[ing]”
    ARRC’s narrow goals, the STB considered an impermissibly
    narrow range of alternatives. But Petitioners do not show that
    the STB’s adoption of ARRC’s goals led the agency to
    consider a too limited range of alternatives. They do not
    demonstrate that the purpose and need statement resulted in
    the agency’s failure to consider a non-access-road alternative
    nor do they point to any other deficiency in the alternatives
    considered in the FEIS. See Westlands Water Dist., 
    376 F.3d at
    867–68 (reversing the district court’s finding that the
    purpose and need statement was unreasonable when the
    statement did not improperly foreclose consideration of
    alternatives). The FEIS considered twelve build alternatives
    and one no-action alternative. The range of alternatives
    considered was sufficient to satisfy both the private and
    public objectives underlying the purpose of the project and to
    enable the STB to make an informed decision to grant the
    exemption. See City of Angoon v. Hodel, 
    803 F.2d 1016
    ,
    1022 (9th Cir. 1986) (concluding that the EIS was adequate
    when the alternatives discussed enabled the agency to make
    an informed decision).
    Petitioners also argue that there is no real need for this
    project. They point to Commissioner Mulvey’s dissent,
    which states that the purpose and need statement “relie[d] on
    little more than Port MacKenzie’s aspirations for an increase
    26       ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    in traffic, a generalized goal to increase economic
    development, and the prospect of a new mode of
    transportation from the port.” This argument ignores the
    people of Port MacKenzie and Matanuska-Susitna Borough’s
    legitimate interest in a rail line connecting their side of the
    inlet to the main rail line, even if there are other ports in the
    area.7 Further, the statement’s aspirational quality does not
    mean that the rail line will not serve a purpose as a catalyst
    for economic development. We have a classic chicken-or-
    the-egg conundrum, and we are not convinced that the
    shippers must stand in line before there is sufficient need
    demonstrated for a rail line. It is not for us to decide which
    communities are entitled to important railroad development
    projects. That decision is committed in the first instance to
    the discretion of the agency authorized by Congress to
    approve rail line construction projects, the STB. Moreover,
    the quasi-public nature of the ARRC shows that its views
    about development of railroad lines in Alaska should have
    been given due weight by the STB.
    We hold that the Statement of Purpose and Need
    reasonably defined the objectives of the project in light of
    both the applicant’s objectives and the agency’s statutory
    authorization.
    7
    For example, the history of the Puget Sound area shows the vigor with
    which Seattle residents fought for a rail line linking them both to nearby
    resources and to the East Coast. Tacoma, located thirty miles south of
    Seattle, was chosen as the terminus of the Northern Pacific Railroad, but
    the close proximity of the port and rail line in Tacoma did not dull
    Seattle’s desire and need for its own rail line. See Kurt E. Armbruster,
    Orphan Road: The Railroad Comes to Seattle, 1853–1911, at 51–58, 108
    (W ashington State University 1999).
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .            27
    2. No-Access-Road Alternative
    Petitioners contend that the STB impermissibly refused to
    consider an alternative rail design without a full-length access
    road adjacent to the rail line. They assert that a no-access-
    road alternative was a viable and reasonable option that
    should have been examined in the EIS. Respondents assert
    that the STB properly determined that a no-access-road
    alternative was not reasonable because an access road is
    necessary for modern rail line construction and maintenance.
    We conclude that the STB complied with NEPA when it
    determined that a no-access-road alternative was not feasible.
    NEPA requires an EIS to describe and analyze “every
    reasonable alternative within the range dictated by the nature
    and scope of the proposal.” Friends of Southeast’s Future v.
    Morrison, 
    153 F.3d 1059
    , 1065 (9th Cir. 1998).
    Consideration of alternatives “is the heart of the [EIS],” and
    agencies should “[r]igorously explore and objectively
    evaluate all reasonable alternatives” that relate to the
    purposes of the project and briefly discuss the reasons for
    eliminating any alternatives from detailed study. 
    40 C.F.R. § 1502.14
     (2012); see also Se. Alaska Conservation Council
    v. Fed. Highway Admin., 
    649 F.3d 1050
    , 1056 (9th Cir.
    2011). “The [EIS] need not consider an infinite range of
    alternatives, only reasonable or feasible ones.” Carmel-By-
    The-Sea, 
    123 F.3d at 1155
    . But failure to examine a
    reasonable alternative renders an EIS inadequate. Friends of
    Southeast’s Future, 
    153 F.3d at 1065
    . Those challenging the
    failure to consider an alternative have a duty to show that the
    alternative is viable. City of Angoon, 803 F.3d at 1021–22.
    We perceive several flaws in Petitioners’ contention that
    the agency acted arbitrarily and capriciously by refusing to
    28     ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    consider a no-access-road alternative. First, Petitioners
    merely contend but do not show that a no-access-road
    alternative is a feasible option that should have been
    considered by the STB. Id. Such an allegation begs the
    question of whether a no-access-road alternative is a feasible
    option. How could a railroad line effectively be built through
    rugged and undeveloped terrain without an access road for
    equipment and moving of supplies and personnel? Would a
    temporary access road cause more environmental harm in the
    Susitna wetlands than a permanent one? Without evidence to
    the contrary, we defer to the STB’s technical expertise
    regarding modern railroad construction. See NPRC, 
    668 F.3d at 1075
    .
    Second, Petitioners rely heavily on EPA’s comments
    expressing concern about the need for an access road. They
    seem to argue that because the EPA called the necessity of an
    access road into question, the STB is obligated to consider a
    no-access-road alternative based on NEPA’s mandate that
    STB consult with other agencies. They further contend that
    the concerns raised by the EPA and other agencies should
    reduce the deference we afford to the STB. But a lead agency
    does not violate NEPA when it does not defer to the concerns
    of other agencies. Akiak Native Cmty. v. U.S. Postal Serv.,
    
    213 F.3d 1140
    , 1146 (9th Cir. 2000). All that NEPA requires
    is that the lead agency consider these concerns and explain
    why it finds them unpersuasive. 
    Id.
     The STB satisfied that
    burden here. Not only did the STB respond to EPA’s
    concerns in the FEIS, it also addressed these concerns in its
    EM. We conclude that there is no error in STB’s reliance on
    ARRC’s explanation of modern railroad construction and
    maintenance practices to answer the EPA’s concerns. It was
    reasonable for the STB to gather information about rail
    construction from the entity that will build the rail line.
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .            29
    Moreover, Petitioners cite no case law for their assertion that
    we should not give deference to the STB’s decision. We
    conclude that STB did not act arbitrarily or capriciously in
    declining to consider the no-access-road alternative.
    3. Wetlands Delineation and Mitigation
    Lastly, Petitioners contend that the STB relied on
    improper methodology for its wetlands delineation.
    Petitioners further argue that the EIS did not provide
    sufficient detail about the wetlands impacts of the rail line,
    leading to insufficient discussion of mitigation measures.
    Respondents counter that they employed accepted wetland-
    delineation methodology that yielded detailed information
    and that the discussion of wetlands mitigation in the FEIS
    was sufficient under NEPA. We agree with Respondents.
    An EIS must contain a “reasonably complete discussion
    of possible mitigation measures.” Okanogan Highlands
    Alliance v. Williams, 
    236 F.3d 468
    , 473 (9th Cir. 2000)
    (quoting Robertson v. Methow Valley Citizens Council,
    
    490 U.S. 332
    , 352 (1989)). “Mitigation must ‘be discussed
    in sufficient detail to ensure that environmental consequences
    have been fairly evaluated.’” Carmel-By-The-Sea, 
    123 F.3d at 1154
     (quoting Robertson, 
    490 U.S. at 352
    ). Perfunctory
    descriptions or mere lists of mitigation measures are
    insufficient. Neighbors of Cuddy Mountain v. U.S. Forest
    Serv., 
    137 F.3d 1372
    , 1380 (9th Cir. 1998).
    Petitioners take issue with the STB’s use of “rapid
    assessment” survey methods, aerial photography, and
    computer generated information system data. They point to
    comments from both the National Marine Fisheries Service
    (NMFS) and the EPA that called for site-specific
    30     ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    examinations. Although we have held that the use of stale
    data based on aerial surveys does not constitute a “hard look”
    under NEPA, NPRC, 
    668 F.3d at
    1086–87, we are not
    convinced that the STB’s chosen methodology was deficient.
    Petitioners point to no evidence that the data was stale. Nor
    do they demonstrate how the methodology employed led to
    insufficient data on which to base mitigation measures. The
    record shows that the methodology used for wetlands
    delineation was performed in accordance with the Army
    Corps of Engineers’ delineation manual. Although NMFS
    and EPA expressed concern with the wetlands delineation and
    the information on the functions of wetlands, the record does
    not show that the STB’s reliance on this methodology was
    arbitrary and capricious. It is not the role of this court “to
    decide whether an [EIS] is based on the best scientific
    methodology available.” McNair, 
    537 F.3d at 1003
     (internal
    quotations omitted) (alterations in original). As long as the
    agency engages in a “reasonably thorough discussion,” we do
    not require unanimity of opinion among agencies.
    Carmel-By-The-Sea, 
    123 F.3d at 1151
     (internal quotations
    omitted).
    Petitioners contend that the STB’s analysis of wetland-
    damage mitigation is too cursory to meet NEPA’s “hard
    look” requirement. They argue that the STB did not consider
    bridging streams and elevating track to minimize the need for
    filling of streams and wetlands as urged by the EPA. The
    STB responded to the EPA’s concerns by explaining that the
    prohibitively high cost of constructing an elevated track
    makes it infeasible and discussing in the FEIS the positive
    and negative environmental impacts of bridges and culverts.
    The EM further addressed the EPA’s concerns by reiterating
    the high costs of elevated track and noting that the EPA did
    not present any evidence that an elevated track was feasible.
    ALASKA SURVIVAL V . SURFACE TRANSP . BD .            31
    Petitioners likewise present no evidence of the feasibility of
    the elevated track. We cannot say that failure to consider this
    alternative is improper without evidence showing the
    feasibility of the alternative. City of Angoon, 803 F.3d at
    1021–22. Further, although we give special weight to
    criticism from other federal agencies, see Save Our Sonoran,
    Inc. v. Flowers, 
    408 F.3d 1113
    , 1122 (9th Cir. 2004), the
    EPA’s criticisms alone are not sufficient to invalidate the
    discussion of environmental impacts and mitigation measures
    that is found in the record. See Carmel-By-The-Sea, 
    123 F.3d at
    1154–55.
    Petitioners further argue that the STB impermissibly
    referred to mitigation measures as a “future prospect” to be
    handled by ARRC. NEPA does not require the finalization or
    adoption of mitigation measures but mandates only that the
    agency engage in a “reasonably thorough” discussion of
    mitigation. Carmel-By-The-Sea, 
    123 F.3d at 1151, 1154
    .
    The FEIS contains a lengthy discussion of measures to
    mitigate impacts on water resources, which includes
    removing debris from wetlands as soon as practicable and
    constructing the railroad to maintain natural water flows by
    installing bridges or using equalization culverts. Further, the
    STB’s authorization of the exemption was conditional to
    ARRC’s adoption of one hundred mitigation measures,
    including ensuring that bridges and culverts are designed and
    maintained in accordance with NMFS guidance and
    implementing best management practices to be imposed by
    the Army Corps of Engineers under the Clean Water Act
    § 404 permit, which ARRC must obtain before construction.
    Nothing about the discussion of mitigation measures is
    perfunctory. And we see no error in the STB’s reliance on
    § 404’s substantive requirements as mitigation measures
    when the agency otherwise complied with NEPA’s
    32     ALASKA SURVIVAL V . SURFACE TRANSP . BD .
    requirement of a reasonably thorough analysis. See Carmel-
    By-The-Sea, 
    123 F.3d at 1152
    .
    V. CONCLUSION
    We hold that the procedures of the STB under the ICCTA
    were sufficient and were satisfied and that there was no error
    under NEPA because the purpose and need statement was
    adequate; the agency considered all viable, reasonable
    alternatives; and the EIS contains a detailed, thorough, and
    thoughtful discussion of the wetlands impacts and mitigation
    measures. Concluding that there was no violation of the
    ICCTA, NEPA, or the APA, we deny the petition for review.
    PETITION FOR REVIEW DENIED.
    

Document Info

Docket Number: 12-70218

Citation Numbers: 705 F.3d 1073, 43 Envtl. L. Rep. (Envtl. Law Inst.) 20016, 2013 U.S. App. LEXIS 1478, 2013 WL 264653

Judges: Gould, Smith, Duffy

Filed Date: 1/23/2013

Precedential Status: Precedential

Modified Date: 11/5/2024

Authorities (31)

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SOUTHEAST ALASKA CONSERV. v. Fed. Highway Admin. , 649 F.3d 1050 ( 2011 )

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okanogan-highlands-alliance-washington-environmental-council-colville , 236 F.3d 468 ( 2000 )

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