Sierra Club v. Perry
Sierra Club v. Perry
Opinion of the Court
In this action the plaintiff, Sierra Club, asks the Court to declare unlawful the failure of Defendant Rick Perry, in his official capacity as the Secretary of the United States Department of Energy (the "Secretary"), to promulgate final regulations establishing standards for energy efficiency in manufactured housing pursuant to the Energy Independence and Security Act of 2007 ("EISA"),
Pending before the Court is the Secretary's motion to dismiss the amended complaint. Upon careful consideration of the Secretary's motion, the opposition, and the reply thereto, the applicable law, and the entire record, the Secretary's motion to dismiss is DENIED . For the reasons stated below, the Court finds that Plaintiff Sierra Club has standing to sue on behalf of its members.
I. Background
Roughly six percent of all homes in the United States are manufactured homes.
A. Energy Independence and Security Act
In 2007, Congress enacted the EISA to, among other things, "increase the efficiency of products, buildings, and vehicles," with an energy code improvements provision for manufactured homes. Pub. L. 110-140,
The energy conservation standards established under this section shall be based on the most recent version of the International Energy Conservation Code ["IECC"] (including supplements), except in cases in which the Secretary finds that the code is not cost-effective, or a more stringent standard would be more cost-effective, based on the impact of the code on the purchase price of manufactured housing and on total life-cycle construction and operating costs.
More than nine years ago, the United States Department of Energy ("DOE") took steps to fulfill its obligations under the EISA by attempting to promulgate the required regulations. See, e.g. , Am. Compl., ECF No. 14 ¶ 15 ; Energy Efficiency Standards for Manufactured Housing,
B. Plaintiff Sierra Club and Its Members
Sierra Club is a national, non-profit environmental organization. Am. Compl., ECF No. 14 ¶ 4 ; see also Ex. 9, ECF
*133No. 22-1 at 46, ¶ 5 [hereinafter "Levenshus Decl."]. It has 822,930 members in all fifty states and Puerto Rico. Ex. 2, ECF No. 22-1 at 7, ¶ 4 [hereinafter "Fashho Decl."]. According to Sierra Club, its "purposes include enhancing public health and the environment and practicing and promoting the responsible use of the Earth's ecosystems and resources." Am. Compl., ECF No. 14 ¶ 4. It states that "Club members are greatly concerned about air quality and energy efficiency[.]" Fashho Decl. ¶ 2.
Sierra Club identifies some of its members as residents, owners, and prospective purchasers of manufactured homes. E.g. , Ex. 3, ECF No. 22-1 at 11-12, ¶¶ 5-8 [hereinafter "Fineran Decl."] ; Ex. 5, ECF No. 22-1 at 26-28, ¶¶ 4-6, 13 [hereinafter "Flournoy Decl."] ; Ex. 8, ECF No. 22-1 at 40-42, ¶¶ 9-12 [hereinafter "Land Decl."]. It alleges that these members include individuals "who reside in older manufactured homes needing replacement and those who regularly purchase manufactured homes as part of their business or who plan to purchase a manufactured home[.]" Am. Compl., ECF No. 14 ¶ 30. It avers that "[e]fficency standards save energy and lower energy bills, saving consumers money over the life of the manufactured home," Levenshus Decl. ¶ 8, and "standards for new manufactured homes will assist Sierra Club's members as consumers" to (1) "reduce[ ] the members' consumption of electricity and natural gas[,]"; (2) "ensur[e] that there is a wide range of efficient models readily available[,]" and (3) "push the market to produce higher efficiency, premium models." Id. ¶ 10.
C. Procedural History
On December 18, 2017, Sierra Club filed this action against the Secretary under the EISA and the APA seeking declaratory relief and an order to compel "the Secretary to complete a final rule establishing standards for energy efficiency in manufactured housing in accordance with section 413 of EISA,
On April 23, 2018, Sierra Club filed an amended complaint seeking declaratory and injunctive relief. See generally Am. Compl., ECF No. 14. Sierra Club asserts a single claim under Section 17071 (a)(1) of the EISA and Section 706(1) of the APA, alleging that the "Secretary's failure to complete a final rule establish[ing] standards for energy efficiency in manufactured housing ... constitutes an agency action unlawfully withheld under the [APA]." Am. Compl., ECF No. 14 ¶ 41 (citation and internal quotation marks omitted). Sierra Club seeks a declaration stating the same.
On May 29, 2018, the Secretary moved to dismiss the amended complaint on the basis that the Court lacked jurisdiction over Sierra Club's claim because it failed to establish standing. See Def.'s Mot. to Dismiss, ECF No. 18 ; see also Def.'s Mem., ECF No. 18-1. Sierra Club filed its opposition on June 29, 2018.
II. Legal Standard
A. Rule 12(b)(1)
A federal district court may only hear a claim over which it has subject-matter jurisdiction; therefore, a Rule 12(b)(1) motion for dismissal is a threshold challenge to a court's jurisdiction. See Fed. R. Civ. P. 12(b)(1). On a motion to dismiss for lack of subject-matter jurisdiction, the plaintiff bears the burden of establishing that the Court has jurisdiction. Lujan v. Defs. of Wildlife ,
B. Standing
Article III of the United States Constitution restricts the power of federal courts to the adjudication of actual "Cases" and "Controversies." U.S. Const. Art. III, § 2; see also Lujan ,
To establish the "irreducible constitutional minimum" of standing, a plaintiff must demonstrate three prongs: (1) "injury in fact," which is (a) concrete and particularized and (b) actual or imminent; (2) that there is a causal connection between the complained of conduct and the injury alleged that is fairly traceable to the defendant; and (3) that it is likely, and not merely speculative, that a favorable decision will serve to redress the injury alleged. See Lujan ,
III. Analysis
The Secretary contends that Sierra Club lacks both associational and organizational standing. Def.'s Mem., ECF No. 18-1 at 12-19. The Secretary argues that Sierra *135Club fails to allege a sufficient injury-in-fact to serve as the basis for Article III standing under both theories. Id. at 12. According to the Secretary, Sierra Club identifies no economic injury, health injury, or procedural injury to support standing. Id. at 14-21; see also Def.'s Reply, ECF No. 26 at 1. The Secretary contends that "Sierra Club vaguely alleges the ongoing lack of energy-efficiency standards causes harm to the 'consumer, [procedural,] environmental, and health interests' of it and certain of its members." Def.'s Mem., ECF No. 18-1 at 10 (quoting Am. Compl., ECF No. 14 ¶ 38).
Sierra Club maintains that it has standing to sue on behalf of its members. See Pl.'s Opp'n, ECF No. 22 at 18-19. Sierra Club avers that "DOE's delay [in establishing energy-efficiency standards for manufactured housing] harms the interests of [its] members as consumers of manufactured housing by restricting their opportunities to purchase energy efficient manufactured homes[.]" Pl.'s Opp'n, ECF No. 22 at 19. It further alleges that the lack of these standards "extends and worsens health and welfare harms endured by Sierra Club members who are impacted by the production of the energy wasted in inefficient manufactured homes" and "it deprives Sierra Club and its members of procedural rights that Congress granted them to protect their concrete interests." Id.
Because Sierra Club is an association, it may sue on behalf of its members if the Court finds that it meets the Article III standing requirements. See Sierra Club v. Fed. Energy Regulatory Comm'n ,
A. Associational Standing
"[A]n association may have standing to assert the claims of its members even where it has suffered no injury from the challenged activity." Hunt v. Wash. State Apple Adver. Comm'n ,
The Secretary does not dispute that Sierra Club satisfies the last two requirements, see generally Def.'s Mem., ECF No. 18-1 ; Def.'s Reply, ECF No. 26, and it is clear that Sierra Club satisfies those requirements. Specifically, Sierra Club seeks the establishment of energy-efficiency standards in manufactured housing to protect its individual members' interests and afford them with (1) the option of accessible and affordable new manufactured homes and (2) the benefits of lower utility bills and less exposure to air pollutants and other environmental harms. Pl.'s Opp'n, ECF No. 22 at 20-21. Its members' interests are germane to Sierra Club's purposes, which include "the protection and improvement of air quality and public health and the reduction of adverse environmental impacts from energy production and usage." Id. at 20. Furthermore, there is no reason presented in this case to require one of its members to participate in this lawsuit. See Ctr. for Auto Safety v. Nat'l Highway Traffic Safety Admin. ,
Here, "the crux of the standing issue" is "whether the members of [Sierra Club] would have standing to sue in their own right."
1. Economic Injury
Sierra Club satisfies the injury requirement in the first prong of associational standing because at least three of its members are prospective purchasers and consumers of energy-efficient manufactured homes who have alleged a sufficient injury-in-fact. See, e.g. , Land Decl. ¶¶ 9-12; Flournoy Decl. ¶¶ 4-6; Fineran Decl. ¶¶ 5-8. These members have alleged that they either cannot find, or it is difficult to find, energy-efficient manufactured homes, and their ability to search for such homes will continue to be adversely impacted by DOE's inaction. See, e.g. , Land Decl. ¶¶ 9-12; Flournoy Decl. ¶¶ 4-6; Fineran Decl. ¶¶ 5-8.
The Secretary contends that Sierra Club has not demonstrated standing based on an economic injury because it cannot show "any particular member is unable to find a readily available efficient manufactured home on the current market[.]"
*137purchases of manufactured homes constitute a "defect" that is fatal to standing. See Def.'s Mem., ECF No. 18-1 at 16.
The Secretary's arguments are unavailing. Sierra Club is in a similar position as the organizations found to have standing in Center for Auto Safety v. National Highway Traffic Safety Administration ,
The parties do not dispute that the D.C. Circuit "has permitted consumers of a product to challenge agency action that prevented the consumers from purchasing a desired product." Coal. for Mercury-Free Drugs , 671 F.3d at 1281 ; see also Orangeburg, S.C. v. Fed. Energy Regulatory Comm'n ,
Sierra Club points out that "the price mark-ups for the non-standard energy efficient features make [energy-efficient manufactured homes] difficult to afford." Pl.'s Opp'n, ECF No. 22 at 21 (citing Fineran Decl. ¶¶ 5-8; Land Decl. ¶¶ 9-12). At least one member of Sierra Club avers that she and her husband purchased a manufactured home in 2018 after finding "a manufactured home dealer with a home specifically retrofitted for energy efficiency." Land Decl. ¶¶ 9-10. She states that "finding it was like finding a needle in a haystack." Id. ¶ 10. According to her, she would like to purchase a second manufactured home for their rural property in Texas, but "it is so difficult to find one that is energy-efficient[.]" Id. ¶ 12. Other members also plan to purchase new, energy-efficient manufactured homes in the future, but they allege that it is difficult to find them. See, e.g. , Ex. 4, ECF No. 22-1, at 18, ¶ 15 ("Sierra Club members ... will acquire ... manufactured housing[.]"); Flournoy Decl. ¶ 5; Fineran Decl. ¶ 6.
The Secretary urges the Court to not consider these declarations because they fail to allege "any concrete plans to purchase a manufactured home by any specific date." Def.'s Mem., ECF No. 18-1 at 16. The Secretary's suggestion that the declarations must include specific details about the potential purchases has been foreclosed by D.C. Circuit precedent. See Sierra Club v. Fed. Energy Regulatory Comm'n ,
Sierra Club's members have alleged an economic injury that is "concrete" and "particularized" because it "actually exist[s]" and impacts the members "in a personal and individual way." Spokeo, Inc. v. Robins , --- U.S. ----,
Sierra Club's members' economic injury is "actual [and] imminent, not conjectural or hypothetical." Lujan ,
2. Health Injury
Sierra Club alleges that standards for energy efficiency in manufactured housing will "benefit [its] members living, working, and engaging in outdoor activities in communities with harmful levels of air pollution and in communities where natural gas and other fuels are extracted, produced, and transported." Am. Compl., ECF No. 14 ¶ 35 ; see also Fisher Decl. ¶ 9 (citing research that shows manufactured homes are "often sited in areas zoned for commercial and industrial use (rather than residential) and are thus disproportionately impacted by environmental harms."). At least seven members of Sierra Club aver in declarations that their exposure to air pollution and harmful emissions negatively impacts their health. See, e.g. , Land Decl. ¶¶ 3-8; Ex. 1, ECF No. 22-1 at 3-5 [hereinafter "Blake Decl."] ; Ex. 6, ECF No. 22-1 at 31-32 [hereinafter "Frantz Decl."] ; Ex. 7, ECF No. 22-1 at 34-36 [hereinafter "Guldi Decl."] ; Ex. 10, ECF No. 22-1 at 138-40 [hereinafter "McNall Decl."] ; Ex. 11, ECF No. 22-1 at 142-43 [hereinafter "Nipp Decl."] ; Ex. 13, ECF No. 22-1 at 148-49 [hereinafter "Stewart Decl."].
For example, Sierra Club member Shirley McNall states that her home is "within one mile of [twenty-five] gas wells[,]" McNall Decl. ¶ 4, and the "emissions from the gas well are harming [her] health." Id. ¶ 6. According to her, she "suffered a hydrogen sulfide 'hit' " on her property from the pollution. Id. ¶ 7. She goes on to explain *139that her "legs began to wobble, [her] throat became sore, [her] tongue was beginning to swell, and [she] became extremely confused." Id. She maintains that "[t]he delay of publishing these energy efficiency standards and resulting increase in demand for natural gas threaten [her] family's health and [her] own." Id. ¶ 13.
The Secretary asks the Court to find that "[t]hese alleged injuries are entirely too vague[.]" Def.'s Mem., ECF No. 18-1 at 18 ; see also Def.'s Reply, ECF No. 26 at 6-7. The Court, however, finds that these members' declarations sufficiently demonstrate a concrete injury to their health from exposure to air pollutants and other harmful emissions. See Friends of the Earth, Inc. v. Laidlaw Envtl. Servs. (TOC), Inc. ,
Sierra Club's members have also demonstrated a concrete, particularized, and imminent health injury. See, e.g., Spokeo ,
3. Procedural Injury
Finally, Sierra Club alleges that the Secretary's failure to promulgate regulations pursuant to the EISA deprives it and its members of "procedural rights and protections to which they would otherwise be entitled[.]" Am. Compl., ECF No. 14 ¶ 37. Sierra Club argues that Congress granted its members these procedural rights, including the right to challenge the agency's final action, "to protect their concrete interests." Pl.'s Opp'n, ECF No 22 at 29-30. And Sierra Club asserts that the Secretary's failure to act deprives it and its members of the right to have updated "standards within one year after each future edition of the IECC, in compliance with [ Section 17071(b)(3).]" Id. at 30.
The Secretary contends that "these allegations are not enough to establish standing[,]" because the rulemaking procedures identified by Sierra Club were "not designed to protect any identified concrete interest, nor has Sierra Club shown that the failure to adhere to those procedures creates a substantial risk to such an interest." Def.'s Mem., ECF No. 18-1 at 19-20. The Secretary maintains that Sierra Club does not have a procedural right since "DOE has not violated any of the rulemaking procedures identified by Sierra Club because those procedures have yet to be triggered." Id. at 20. The Secretary maintains that Sierra Club has not identified a "ripe" procedural injury. Id. at 21.
An association need only make a showing of "concrete harm" to enforce the procedural rights of its members, see Lujan ,
*140U.S. Women's Chamber of Commerce v. U.S. Small Bus. Admin. , No. 1:04-CV-01889,
An individual may "enforce procedural rights ... so long as the procedures in question are designed to protect some threatened concrete interest of his that is the ultimate basis of his standing." Lujan ,
Sierra Club alleges that its members' concrete interests are frustrated by the Secretary's delay in promulgating regulations and failure to establish standards as required by the EISA. Am. Compl., ECF No. 14 ¶ 38. The Court finds that the Secretary has compromised Sierra Club's members' "concrete and particularized procedural rights," U.S. Women's Chamber of Commerce ,
The Court rejects the Secretary's argument that Sierra Club has not identified a ripe procedural injury. See Def.'s Mem., ECF No. 18-1 at 21. Sierra Club asserts a single claim under
B. Causation and Redressability
As to the causation and redressability prongs of standing, DOE's own words provide the required causal connection. See Air All. Houston ,
Sierra Club satisfies the causation and redressability prongs. See Sierra Club v. Fed. Energy Regulatory Comm'n ,
*142IV. Conclusion
For the reasons set forth above, the Court DENIES the Secretary's motion to dismiss. A separate Order accompanies this Memorandum Opinion.
SO ORDERED.
Congress has defined a "manufactured home" as:
[A] structure, transportable in one or more sections, which, in the traveling mode, is eight body feet or more in width or forty body feet or more in length, or, when erected on site, is three hundred twenty or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein[.]
When citing electronic filings throughout this Opinion, the Court cites to the ECF page number, not the page number of the filed document.
On August 3, 2018, DOE announced a proposed rule and solicited public input to develop energy conservations standards. See Energy Conservation Program: Energy Conservation Standards for Manufactured Housing,
On the same day, Sierra Club filed a Motion for Partial Summary Judgment on Standing and Liability and a Request for a Hearing regarding the same under Local Civil Rule 7(f). Pl.'s Mot. for Partial Summ. J., ECF No. 23. On July 5, 2018, the Court temporarily stayed the summary judgment briefing schedule pending the resolution of the Secretary's forthcoming motion to hold in abeyance the summary judgment briefing while the Court considered the Secretary's motion to dismiss. Minute Order of July 5, 2018. After considering the Secretary's motion to hold in abeyance the summary judgment briefing, ECF No. 27, and Sierra Club's response, ECF No. 28, the Court denied without prejudice and held in abeyance Sierra Club's partial motion for summary judgment, allowing it to refile the motion if the Court denied the Secretary's motion to dismiss. August 16, 2018 Minute Order.
The Secretary relies on Coalition for Mercury-Free Drugs for this proposition. See Def.'s Reply, ECF No. 26 at 3-4. There, the D.C. Circuit held that the plaintiffs alleging physical harm from vaccines with mercury-based preservative thimerosal lacked standing to challenge the agency's rule finding that those vaccines were safe because the "complaint and declarations [did] not allege that mercury-free vaccines [were] 'not readily available' " and those vaccines were "unreasonably priced as a result of [the agency's] decision to allow thimerosal-preserved vaccines[.]" Coal. for Mercury-Free Drugs v. Sebelius ,
Sierra Club contends that "DOE cannot lawfully adopt the negotiated standards it proposed" because the proposed standards were based on the 2015 version of the IECC and a "2018 version of the IECC has not been published[.]" Pl.'s Opp'n, ECF No. 22 at 17 (citing
Because the Court finds that Sierra Club has associational standing, it need not consider whether Sierra Club also has organizational standing. Metro. Wash. Chapter v. District of Columbia ,
Reference
- Full Case Name
- SIERRA CLUB v. Rick PERRY, Secretary, U.S. Department of Energy
- Cited By
- 2 cases
- Status
- Published