Solar Energy Industries Association v. United States
U.S. Court of Appeals for the Federal Circuit
Solar Energy Industries Association v. United States, 86 F.4th 885 (Fed. Cir. 2023)
Solar Energy Industries Association v. United States
Opinion
Case: 22-1392 Document: 73 Page: 1 Filed: 11/13/2023
United States Court of Appeals
for the Federal Circuit
______________________
SOLAR ENERGY INDUSTRIES ASSOCIATION,
NEXTERA ENERGY, INC., INVENERGY
RENEWABLES LLC, EDF RENEWABLES, INC.,
Plaintiffs-Appellees
v.
UNITED STATES, UNITED STATES CUSTOMS
AND BORDER PROTECTION, TROY MILLER,
ACTING COMMISSIONER FOR U.S. CUSTOMS
AND BORDER PROTECTION,
Defendants-Appellants
______________________
2022-1392
______________________
Appeal from the United States Court of International
Trade in No. 1:20-cv-03941-GSK, Judge Gary S.
Katzmann.
______________________
Decided: November 13, 2023
______________________
MATTHEW R. NICELY, Akin Gump Strauss Hauer &
Feld LLP, Washington, DC, argued for plaintiffs-appellees
Solar Energy Industries Association, NextEra Energy, Inc.
Also represented by JULIA K. EPPARD, DEVIN S. SIKES,
JAMES EDWARD TYSSE, DANIEL MARTIN WITKOWSKI.
AMANDA SHAFER BERMAN, Crowell & Moring, LLP,
Case: 22-1392 Document: 73 Page: 2 Filed: 11/13/2023
2 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US
Washington, DC, argued for plaintiff-appellee Invenergy
Renewables LLC. Also represented by JOHN BOWERS
BREW, LARRY EISENSTAT, ROBERT L. LAFRANKIE; FRANCES
PIERSON HADFIELD, New York, NY.
CHRISTINE STREATFEILD, Baker & McKenzie LLP,
Washington, DC, for plaintiff-appellee EDF Renewables,
Inc.
JOSHUA E. KURLAND, Commercial Litigation Branch,
Civil Division, United States Department of Justice, Wash-
ington, DC, argued for all defendants-appellants. Defend-
ants-appellants United States, United States Customs and
Border Protection, Troy Miller also represented by BRIAN
M. BOYNTON, TARA K. HOGAN, PATRICIA M. MCCARTHY. De-
fendant-appellant United States also represented by
MICHAEL THOMAS GAGAIN, Office of the General Counsel,
Office of the United States Trade Representative, Wash-
ington, DC.
JONATHAN STOEL, Hogan Lovells US LLP, Washington,
DC, for amici curiae Chamber of Commerce of the United
States of America, American Clean Power Association.
Also represented by MICHAEL JACOBSON, MOLLY NEWELL;
KATHERINE BOOTH WELLINGTON, Boston, MA. Amicus cu-
riae Chamber of Commerce of the United States of America
also represented by TARA S. MORRISSEY, United States
Chamber Litigation Center, Washington, DC.
______________________
Before LOURIE, TARANTO, and STARK, Circuit Judges.
STARK, Circuit Judge.
In 2018, the President adopted certain safeguard
measures to protect the domestic solar panel industry. In
particular, the President issued Proclamation 9693, which
imposed duties on imports of solar panels into the United
States. See Proclamation 9693: To Facilitate Positive
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SOLAR ENERGY INDUSTRIES ASSOCIATION v. US 3
Adjustment to Competition from Imports of Certain Crys-
talline Silicon Photovoltaic Cells (Whether or Not Partially
or Fully Assembled into Other Products) and for Other Pur-
poses, 83 Fed. Reg. 3541(Jan. 23, 2018). The duties of Proc- lamation 9693 began at 30% and were scheduled to decrease each year to 25%, 20%, and then, in their final, fourth year, 15%. Seeid. at 3548
. Importers of a certain
type of solar panel – called bifacial solar modules, which
“consist of cells that convert sunlight into electricity on
both the front and back of the cells,” J.A. 4 – petitioned the
United States Trade Representative (“USTR”) for an exclu-
sion, asking that bifacial solar panels not be subjected to
the duties. The USTR granted the exclusion, but then
quickly reversed course, with the consequence that the du-
ties of Proclamation 9693 remained scheduled to be im-
posed on bifacial panels. Following litigation in the Court
of International Trade (“trade court”), and additional ac-
tions by the USTR, bifacial solar panels were again ex-
cluded from the duties.
In October 2020, the President issued Proclamation
10101, “modifying” Proclamation 9693 to withdraw the ex-
clusion of bifacial solar panels from the scheduled duties,
and also to increase the fourth-year duty rate from 15% to
18%. See Proclamation 10101: To Further Facilitate Posi-
tive Adjustment to Competition from Imports of Certain
Crystalline Silicon Photovoltaic Cells (Whether or Not Par-
tially or Fully Assembled into Other Products), 85 Fed. Reg.
65639 (Oct. 16, 2020). In response to Proclamation 10101,
importers of bifacial solar panels brought suit against the
United States in the trade court on the grounds that the
proclamation exceeded the power of the President. Their
principal contention was that the statute authorizing the
President to “modify” Proclamation 9693 only allowed him
to make previously adopted safeguard measures more
trade-liberalizing, but eliminating the exclusion of bifacial
panels and raising the fourth-year duty were trade-restric-
tive. The suing parties further argued that even if the
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4 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US
President had the authority to “modify” safeguards in a
trade-restrictive direction, he failed to follow appropriate
procedures in doing so.
The trade court agreed with the importers that the
statutory authority to “modify” a safeguard is limited to
trade-liberalizing changes. While the trade court rejected
the importers’ procedural challenges, it nonetheless set
aside Proclamation 10101 for exceeding the President’s au-
thority. The government now appeals from the trade
court’s judgment in favor of the importers.
We conclude that the President’s interpretation of the
applicable statute, which allows him to “modify” an exist-
ing safeguard, is not a clear misconstruction. That is, the
President’s view that a “modification” may include a
change in a trade-restricting direction, and is not limited
to trade-liberalizing changes, is not unreasonable. We fur-
ther determine that, in adopting Proclamation 10101, the
President did not commit any significant procedural viola-
tion of the Trade Act. Accordingly, we reverse the judg-
ment of the trade court.
I
A
Section 201 of the Trade Act of 1974, codified at 19
U.S.C. § 2251, provides the President of the United States with the power to impose “safeguards” (also referred to as “safeguard measures”) that protect domestic industries from serious injury caused by imports. Statutory Section 2251 broadly directs the President to “take all appropriate and feasible action within his power which the President determines will facilitate efforts by the domestic industry to make a positive adjustment to import competition and provide greater economic and social benefits than costs.”19 U.S.C. § 2251
(a).
Imposition of a new safeguard is governed by 19 U.S.C.
§§ 2252and 2253, which set out a process that typically Case: 22-1392 Document: 73 Page: 5 Filed: 11/13/2023 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US 5 includes: (i) a petition from the domestic industry filed with the International Trade Commission (“Commission”), set- ting out the purposes for which the safeguard is sought, “which may include facilitating the orderly transfer of re- sources to more productive pursuits, enhancing competi- tiveness, or other means of adjustment to new conditions of competition”; (ii) an investigation and determination by the Commission as to “whether an article is being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing an article like or di- rectly competitive with the imported article”; (iii) the sub- mission of a report by the Commission to the President, which may include a recommendation of presidential ac- tion to “address the serious injury, or threat thereof, to the domestic industry,” such as the imposition of or increase in duty on the imported article or a modification or imposition of a quantitative restriction on the importation of the arti- cle into the United States; and (iv) a decision by the Presi- dent “to take all appropriate and feasible action” that will provide “greater economic and social benefits than costs” and will assist domestic industry. Generally, safeguards adopted pursuant to these procedures may not be in effect for longer than four years without an additional petition from the domestic industry. Seeid.
§§ 2253(e)(1)(A)-(B),
2254(c). Certain types of safeguards, including imposition
of duties lasting more than one year, must be “phased down
at regular intervals during the period in which the action
is in effect.” Id. § 2253(e)(5).
Once a particular safeguard is in place, Section 2254
governs efforts to change the existing measure. Section
2254(a)(1) requires, among other things, that the Commis-
sion “monitor developments with respect to the domestic
industry, including the progress and specific efforts made
by workers and firms in the domestic industry to make a
positive adjustment to import competition.” Id.
§ 2254(a)(1). If a safeguard is imposed for longer than
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6 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US
three years, the Commission must, no later than the mid-
point of the period for which it is adopted, “submit a report
[“Commission Report”] on the results of the monitoring . . .
to the President and to the Congress” Id. § 2254(a)(2). Af-
ter receiving the Commission Report, the President is em-
powered to take certain actions with respect to the
safeguard, with different statutory provisions applying de-
pending on whether the domestic industry has or has not
made a positive adjustment to import competition.
Specifically, 19 U.S.C. § 2254(b), entitled “Reduction,
modification, and termination of action,” provides that
“[a]ction taken under section 2253 of this title,” i.e., a safe-
guard, “may be reduced, modified, or terminated by the
President,” after receiving the Commission Report,
if the President . . .
(A) . . . determines, on the basis that either –
(i) the domestic industry has not made
adequate efforts to make a positive ad-
justment to import competition, or
(ii) the effectiveness of the action taken
under section 2253 of this title has been
impaired by changed economic circum-
stances,
that changed circumstances warrant such re-
duction, or termination; or
(B) determines, after a majority of the rep-
resentatives of the domestic industry submits
to the President a petition requesting such re-
duction, modification, or termination on such
basis, that the domestic industry has made a
positive adjustment to import competition.
Id. § 2254(b)(1) (emphasis added). While subparagraph
(b)(1)(B) permits the President to “reduc[e], modif[y], or
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SOLAR ENERGY INDUSTRIES ASSOCIATION v. US 7
terminat[e]” a safeguard when the domestic industry has
made a positive adjustment to import competition, subpar-
agraph A more narrowly describes the President’s power as
extending only to a “reduction, or termination” (and not
also a “modification”) of an existing safeguard where do-
mestic industry has not made such an adjustment.
B
On January 23, 2018, President Trump issued Procla-
mation 9693, which imposed duties on imports of certain
quantities of Crystalline Silicon Photovoltaic (CSPV) solar
panels for a period of four years, beginning at 30% ad val-
orem in the safeguard’s first year and phasing down to 25%,
20%, and 15% in the ensuing years. Proclamation 9693, 83
Fed. Reg. at 3548-49. Proclamation 9693 further delegated
to the USTR authority to grant “exclusion of a particular
product from the safeguard measure.” Id. at 3543. Acting
under this authority, in June 2019 the USTR granted an
exclusion for solar panels consisting of bifacial solar cells.
See Exclusion of Particular Products From the Solar Prod-
ucts Safeguard Measure, 84 Fed. Reg. 27684, 27685 (June
13, 2019). This exclusion had the effect of not imposing the
new tariffs on bifacial solar panels.
However, just months later, in October 2019, the USTR
withdrew the exclusion, re-imposing the duties on these
same bifacial products. See Withdrawal of Bifacial Solar
Panels Exclusion to the Solar Products Safeguard Measure,
84 Fed. Reg. 54244(Oct. 9, 2019). Litigation followed. Cases (which are not directly at issue here) brought by con- sumers, purchasers, and importers of bifacial solar panels resulted in the October 2019 withdrawal of the exclusion never becoming effective. See Invenergy Renewables LLC v. United States,422 F. Supp. 3d 1255
(Ct. Int’l Trade 2019). That meant that bifacial solar panels remained ex- empted from imposition of the new duties. Thereafter, in April 2020, the USTR again withdrew the exclusion, seek- ing thereby to impose the duties on bifacial products. See Case: 22-1392 Document: 73 Page: 8 Filed: 11/13/2023 8 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US Determination on the Exclusion of Bifacial Solar Panels from the Safeguard Measure on Solar Product,85 Fed. Reg. 21497
(Apr. 17, 2020). After more litigation, the trade court enjoined the April 2020 withdrawal. See Invenergy Renewables LLC v. United States,552 F. Supp. 3d 1382
(Ct. Int’l Trade 2021); Invenergy Renewables LLC v. United States,476 F. Supp. 3d 1323
(Ct. Int’l Trade 2020).
In the meantime, the Commission completed its statu-
torily required midpoint review of the safeguards imposed
by Proclamation 9693 and, in February 2020, provided the
Commission Report to the President and Congress. See
Crystalline Silicon Photovoltaic Cells, Whether or Not Par-
tially or Fully Assembled Into Other Products: Monitoring
Developments in the Domestic Industry, Inv. No. TA-201-
075, USITC Pub. 5021, at 2 (Feb. 2020). In March 2020,
pursuant to 19 U.S.C. § 2254(a)(4) and in response to the USTR’s request, the Commission additionally published a report containing its advice “regarding the probable eco- nomic effect on the domestic crystalline silicon photovoltaic (CSPV) cell and module manufacturing industry of modify- ing the safeguard measure on CSPV products.” Crystalline Silicon Photovoltaic Cells, Whether or Not Partially or Fully Assembled Into Other Products: Advice on the Proba- ble Economic Effect of Certain Modifications to the Safe- guard Measure, Inv. No. TA-201-075, USITC Pub. 5032, at ES-1 (Mar. 2020). That report contained the Commission’s determination that the “exclusion for imports of bifacial modules . . . is likely to have significant effects on prices and trade in both modules and cells,” having the effect of limiting the positive impact of the safeguard adopted in Proclamation 9693.Id.
at ES-4. In the wake of these two
reports, the President, through the USTR, received a peti-
tion, consisting of three letters, 1 from representatives of a
1 The trade court held these “letters submitted to the
Trade Representative are, taken collectively, sufficient to
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SOLAR ENERGY INDUSTRIES ASSOCIATION v. US 9
majority of the bifacial solar panel domestic industry re-
questing, among other things, that the President (1) with-
draw the bifacial exclusion and (2) slow down the rate of
reduction of the safeguard duty for the remainder of the
scheduled term.
On October 16, 2020, the President issued Proclama-
tion 10101. See Proclamation 10101, 85 Fed. Reg. at 65640.
As pertinent here, Proclamation 10101 modified safe-
guards that had been implemented in Proclamation 9693,
including by withdrawing the exclusion of bifacial solar
panels, thereby again re-imposing the duties on these pan-
els. Proclamation 10101 further provided that the fourth-
year duty rate on CSPV modules, including bifacial solar
panels, would be increased from 15% to 18%. See 85 Fed.
Reg. at 65540-42. In particular, Proclamation 10101 pro-
vided that:
[T]he domestic industry has begun to make positive
adjustment to import competition, shown by the in-
creases in domestic module production capacity,
production, and market share. . . .
[T]he exclusion of bifacial panels from application
of the safeguard tariff has impaired and is likely to
continue to impair the effectiveness of the action I
proclaimed in Proclamation 9693 in light of the in-
creased imports of competing products such exclu-
sion entails, and that it is necessary to revoke that
exclusion and to apply the safeguard tariff to bifa-
cial panels; . . .
[T]he exclusion of bifacial panels from application
of the safeguard tariffs has impaired the effective-
ness of the 4-year action I proclaimed in Proclama-
tion 9693, and that to achieve the full remedial
constitute a petition to the President.” J.A. 13. Appellees
do not challenge this finding on appeal.
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10 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US
effect envisaged for that action, it is necessary to
adjust the duty rate of the safeguard tariff for the
fourth year of the safeguard measure to 18 percent.
Proclamation 10101, 85 Fed. Reg. at 65640. The appeal
now before us requires us to determine whether the Presi-
dent had authority to make these modifications to Procla-
mation 9693 by adoption of Proclamation 10101. 2
C
On December 29, 2020, Plaintiffs-Appellees – Solar En-
ergy Industries Associates (“SEIA”) as well as Nextera En-
ergy Inc., Invenergy Renewables LLC, and EDF
Renewables, Inc. – filed suit at the trade court challenging
Proclamation 10101’s modifications to the safeguards im-
posed by Proclamation 9693. See Solar Energy Indus. Ass’n
v. United States, 553 F. Supp. 3d 1322 (Ct. Int’l Trade 2021)
(“SEIA Decision”). Defendants-Appellants – the United
States, the United States Customs and Border Protection
(“CBP”), and Christopher Magnus in his capacity as Com-
missioner of CBP (collectively, the “government”) – moved
to dismiss, and Appellees cross-moved for summary judg-
ment. The trade court granted summary judgment to Ap-
pellees and set aside the modifications contained in
Proclamation 10101.
2 In February 2022, President Biden, acting pursu-
ant to his authority under Section 2253, extended the safe-
guard measure and excluded bifacial panels from the
extended measure. See Proclamation 10339, To Continue
Facilitating Positive Adjustment to Competition From Im-
ports of Certain Crystalline Silicon Photovoltaic Cells
(Whether or Not Partially or Fully Assembled Into Other
Products), 87 Fed. Reg. 7357 (Feb. 9, 2022). Thus, as the
parties agree, this appeal only affects bifacial panels that
were imported into the U.S. after October 25, 2020 and be-
fore February 7, 2022.
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SOLAR ENERGY INDUSTRIES ASSOCIATION v. US 11
In reaching its decision, the trade court concluded that
“while Proclamation 10101 complied with the procedural
requirements of the safeguard statute, it nevertheless
clearly misconstrued the reach of Section [2254](b)(1)(B) of
the Trade Act, and thus constituted an action outside the
President’s delegated authority.” 3 J.A. 34. More specifi-
cally, the trade court reasoned that Section 2254(b)(1)(B)
“permits only trade-liberalizing modifications to existing
safeguard measures,” yet “Proclamation 10101’s with-
drawal of the exclusion of bifacial solar panels and increase
of the safeguard duties on CSPV modules” were trade-re-
strictive. J.A. 6. Therefore, the trade court held that the
modifications of Proclamation 10101 were based on a clear
misconstruction of the statute. See J.A. 6, 28. The trade
court was persuaded that, as Appellees argued, Section
2254(b)(1)(B) “was intended to provide an escape hatch”
from previously imposed safeguards “where domestic in-
dustry has adequately adapted to import competition.”
J.A. 32. It was not, in the court’s view, Congress’s intent
to allow for a safeguard to be “modified” so as to make it
more restrictive of free trade when domestic industry had
already adjusted to such competition. See id. Hence, the
3 The trade court found the President acted outside
his delegated authority solely because it found the Presi-
dent’s interpretation of Section 2254(b)(1)(B) was a clear
misconstruction. See J.A. 33. There was no separate anal-
ysis of the “acting outside of authority” issue. Nor do the
parties identify any other basis, besides the construction of
Section 2254(b)(1)(B) and its associated procedural re-
quirements, on which Proclamation 10101 could be deemed
an action taken outside of the President’s delegated au-
thority. Thus, our conclusion that the President did not
clearly misconstrue his statutory authority leads to the
conclusion that the President also did not act outside of his
delegated authority.
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12 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US
trade court set aside Proclamation 10101 and enjoined the
government from enforcing it. See J.A. 6.
The government timely appealed. Before us, the gov-
ernment challenges the trade court’s holding that the Pres-
ident clearly misconstrued Section 2254(b)(1)(B) when he
interpreted it as permitting trade-restrictive modifications
to safeguard measures. The government also disputes the
trade court’s conclusion that Proclamation 10101’s modifi-
cations were actually trade-restrictive. Appellees ask us to
affirm the trade court’s determination that the President’s
interpretation of “modify” in Section 2254(b)(1)(B) as per-
mitting trade-restrictive changes is a clear misconstruction
of the statute. 4 Appellees also propose alternative grounds
for affirmance, namely that the President failed to comply
with the procedural requirements of the safeguard statute.
We conclude that the President did not clearly miscon-
strue Section 2254(b)(1)(B) when he interpreted it as per-
mitting trade-restrictive modifications. We further
conclude that, in issuing Proclamation 10101, the Presi-
dent did not commit any significant procedural violation of
the Trade Act. Accordingly, we reverse and remand for the
trade court to enter judgment for the government.
II
The trade court had jurisdiction pursuant to 28 U.S.C.
§ 1581(i). We have jurisdiction under28 U.S.C. § 1295
(a)(5).
“We review the Court of International Trade’s grant of
summary judgment de novo, including by deciding de novo
4 Appellees SEIA and Nextera Energy, Inc. filed a
joint brief (ECF No. 35) which we refer to as the “SEIA
Brief” or “SEIA Br.” Appellees Invenergy Renewables LLC
and EDF Renewables, Inc. filed a separate brief (ECF No.
34) which we refer to as the “EDF Brief” or “EDF Br.”
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SOLAR ENERGY INDUSTRIES ASSOCIATION v. US 13
the proper interpretation of governing statutes and regula-
tions.” Shinyei Corp. of Am. v. United States, 524 F.3d
1274, 1282(Fed. Cir. 2008). In the absence of any genuine dispute of facts, we apply de novo review to the question of whether statutory prerequisites for presidential action un- der the safeguard statute were satisfied. See Corus Grp. PLC v. Int’l Trade Comm’n,352 F.3d 1351
, 1359-61 (Fed. Cir. 2003). “Although we apply a de novo standard of re- view, we give great weight to the informed opinion of the Court of International Trade.” Aspects Furniture Int’l, Inc. v. United States,42 F.4th 1366
, 1369 (Fed. Cir. 2022).
Summary judgment is appropriate “if the movant shows
that there is no genuine dispute as to any material fact and
the movant is entitled to judgment as a matter of law.”
U.S. CIT R. 56(a).
Notwithstanding the de novo standard we generally
apply to review of grants of summary judgment, “[i]n inter-
national trade controversies of th[e] highly discretionary
kind” we confront today, which “involv[e] the President and
foreign affairs,” this court has a “very limited role . . . .”
Maple Leaf Fish Co. v. United States, 762 F.2d 86, 89(Fed. Cir. 1985). We may only set aside presidential action taken pursuant to statutory Sections 2251-53 of the Trade Act if it involves “a clear misconstruction of the governing stat- ute, a significant procedural violation, or action outside delegated authority.” Id.; see also USP Holdings, Inc. v. United States,36 F.4th 1359
, 1366 n.3 (Fed. Cir. 2022). “[T]he President’s findings of fact and the motivations for his action are not subject to review.” Maple Leaf,762 F.2d at 89
(citation omitted); see also Silfab Solar, Inc. v. United States,892 F.3d 1340, 1349
(Fed. Cir. 2018).
III
The trade court granted summary judgment to Appel-
lees based on its determination that the President clearly
misconstrued Section 2254(b)(1)(B) by interpreting it as
permitting trade-restricting modifications. On appeal, the
Case: 22-1392 Document: 73 Page: 14 Filed: 11/13/2023
14 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US
government challenges this conclusion on two grounds.
First, the government contends that “[n]othing in the safe-
guard statute limits the President’s authority under sec-
tion [2254(b)(1)(B)] only to making modifications that
liberalize trade.” Opening Br. at 26. Second, the govern-
ment argues that even if Section 2254(b)(1)(B) does not ex-
tend to trade-restricting modifications, the modifications
that Proclamation 10101 makes to Proclamation 9693 do
not “increase” restrictions and, hence, are permitted by the
statute. We agree with the government’s first contention
and find it unnecessary to address the second.
A
It is important to stress at the outset that our review
of Proclamation 10101 is limited to whether the President
clearly misconstrued Section 2254(b)(1)(B). Because presi-
dential action to impose a safeguard measure, as well as
the decision to modify such a measure, involves presiden-
tial action in the context of foreign affairs, our review is
“very limited.” Maple Leaf, 762 F.2d at 89. We are not
called upon to decide whether the government’s interpreta-
tion of the statute is correct or how we would have con-
strued the statute as an original matter. Nor do we
evaluate the relative merits of the parties’ competing inter-
pretations. Rather, our sole inquiry is whether the Presi-
dent’s interpretation, that he is permitted to make trade-
restricting modifications and not just trade-liberalizing
ones, is a clear misconstruction of the statute. Applying
this standard of review, we hold the President did not
clearly misconstrue Section 2254(b)(1)(B).
Our review “begins with the language of the statute”
itself. Hughes Aircraft Co. v. Jacobson, 525 U.S. 432, 438(1999) (internal quotation marks omitted); see also PDS Consultants, Inc. v. United States,907 F.3d 1345, 1357
(Fed. Cir. 2018). Section 2254(b)(1)(B) provides that safe- guards previously adopted under Section 2253 “may be re- duced, modified, or terminated” by the President. The Case: 22-1392 Document: 73 Page: 15 Filed: 11/13/2023 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US 15 statute does not expressly indicate whether “modify” in- cludes trade-restrictive changes or is limited to trade-liber- alizing alterations. We view this statutory silence as favoring the government’s broader view, as the statute simply does not contain the narrowing limitation the trade court read into it. See generally Jama v. Immigr. & Cus- toms Enf’t,543 U.S. 335, 341
(2005) (“We do not lightly as-
sume that Congress has omitted from its adopted text
requirements that it nonetheless intends to apply . . . .”). 5
Ordinarily, Congress uses words consistent with their
well-understood meaning. See Perrin v. United States, 444
U.S. 37, 42 (1979) (“A fundamental canon of statutory con-
struction is that, unless otherwise defined, words will be
interpreted as taking their ordinary, contemporary, com-
mon meaning.”). Here, both sides find support for their in-
terpretations of “modify” in dictionary definitions.
Appellees direct us to a definition of “modify” as “to make
‘less extreme.’” SEIA Br. at 17 (quoting J.A. 30). The gov-
ernment, by contrast, points us to a dictionary definition of
“modify” as “making of a limited change in something.”
Opening Br. at 24 (citing J.A. 30). Other courts, including
the Supreme Court, have applied the government’s non-
5 By contrast, an earlier, unenacted version of the
legislation that ultimately became Section 2254(b)(1)(B)
would have expressly restricted the President’s authority,
upon receiving the Commission Report, as being to “reduce,
modify (but not increase) or terminate any action.” H.R.
Conf. Rep. 100-576, at 687, reprinted in 1988 USCCAN
1547, 1720 (emphasis added). The parenthetical prohibit-
ing trade-restrictive modifications was deleted during the
legislative process. Generally, “[w]here Congress includes
limiting language in an earlier version of a bill but deletes
it prior to enactment, it may be presumed that the limita-
tion was not intended.” Russello v. United States, 464 U.S.
16, 23-24(1983). Case: 22-1392 Document: 73 Page: 16 Filed: 11/13/2023 16 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US directionally restricted definition of “modify” in other con- texts. See MCI Telecomm. Corp. v. AT&T Co.,512 U.S. 218, 225
(1994) (collecting definitions and noting that
“modify” typically connotes moderate change without indi-
cating which direction such change must take). Appellees
concede that the government’s definition is a correct one
but then attempt to persuade us that their preferred defi-
nition is better supported by the broader structure and pur-
pose of the safeguard statute. See SEIA Br. at 17-18
(“‘[M]odify’ can also mean ‘to change moderately or in mi-
nor fashion.’”). With our review restricted to whether the
President’s interpretation of “modify” is a clear miscon-
struction, we view the government’s dictionary support,
other courts’ precedents, and Appellees’ concession as
strong indicators that Appellees have failed to show the
President’s interpretation of “modification” is a clear mis-
construction.
Appellees emphasize that the meaning of “modify” in
Section 2254(b)(1)(B) can only be properly understood in
the context of “[t]he broader structure and stated purpose
of the statute.” SEIA Br. at 18-19, 26. While we agree that
structure and purpose should be taken into account, here
these considerations only solidify our conclusion that Sec-
tion 2254(b)(1)(B) was not clearly misconstrued to permit
trade-restricting modifications to existing safeguards.
First, Section 2251 provides that the safeguard statute
has a broad remedial purpose, directing the President to
“take all appropriate and feasible action within his power”
to meet the statute’s objectives and provide relief to domes-
tic industry. 19 U.S.C. § 2251 (emphasis added). This ex-
pansive directive supports the view that the President is
empowered to make modifications as necessary to provide
continued relief to domestic industry, regardless of
whether that modification is in the direction of trade-re-
striction or trade-liberalization. Certainly, there is no sug-
gestion in Section 2251 that if the President determines a
slightly more restrictive safeguard is necessary, he is,
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SOLAR ENERGY INDUSTRIES ASSOCIATION v. US 17
nevertheless, permitted only to adopt a trade-liberalizing
modification.
Second, the Trade Act has its own general definition of
“modification.” It provides: “[t]he term ‘modification’, as
applied to any duty or other import restriction, includes the
elimination of any duty or other import restriction.” Id.
§ 2481(6). Plainly, this is an open-ended definition and
does not exclude anything, including further restrictions.
Nor does it even suggest that assessment of whether a
change qualifies as a “modification” is based to any extent
on the direction of the change (i.e., trade-liberalizing or -
restricting).
Other provisions of the Trade Act are similarly sup-
portive of the government’s interpretation. Section
2254(b)(3), for example, provides that the President may
“modify” a safeguard to bring it into conformity with a de-
cision of the World Trade Organization (“WTO”), which
could require a trade-liberalizing or trade-restricting mod-
ification, depending on the relative relationship between
an existing U.S. safeguard and a WTO determination. See
id. § 2254(b)(3). Similarly, Sections 2252(e)(2)(C) and
2253(a)(3)(C) authorize the Commission to recommend,
and the President to impose, “modification . . . of any quan-
titative restriction on importation,” modifications which
Appellees do not dispute may include changes in a more
trade-restrictive direction.
Because the Trade Act clearly uses “modify” and “mod-
ification” in ways that permit trade-restricting changes,
Appellees next insist that “Congress clearly did not give the
word ‘modification’ the same connotation throughout the
Trade Act.” SEIA Br. at 32. We are not persuaded. “[A]
term appearing in several places in a statutory text is gen-
erally read the same way each time it appears.” Ratzlaf v.
United States, 510 U.S. 135, 143 (1994). Appellees insist
that Section 2254(b)(3)’s inclusion of the phrase “notwith-
standing paragraph (1)” signifies that Section 2254(b)(1)’s
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18 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US
modification power is different from that power as deline-
ated in Section 2254(b)(3). But we agree with the govern-
ment that “[n]otwithstanding paragraph (1)” means that
modifications under Section 2254(b)(3) may be accom-
plished without having to fulfill the procedural require-
ments of Section 2254(b)(1) (e.g., receipt of the Commission
Report or a domestic industry petition). See Reply Br. at
10.
Appellees, echoing the trade court, further contend
that permitting the President to make trade-restrictive
modifications pursuant to Section 2254(b)(3) creates a loop-
hole through which the President can bypass the proce-
dural requirements Section 2253 establishes for adopting a
safeguard measure in the first place. See SEIA Br. at 25;
J.A. 32. We disagree. Even under the government’s read-
ing of Section 2254(b)(1)(B), the President’s modification
power is far from unbounded. For instance, Section
2253(e)(5) requires duties to be “phased down at regular
intervals,” ensuring that any duty rate modification cannot
exceed the highest rate imposed by the original safeguard
measure. Thus, here, because the maximum tariff rate im-
posed by Proclamation 9693 was 30% – a measure adopted
only after the President followed all of the procedures set
out in Section 2253 – the President could not, through his
modification power under Section 2254, impose a tariff
greater than 30%. Additionally, the President may not
modify a safeguard pursuant to Section 2254 any time he
wishes; instead, he must wait until after receiving the
Commission Report as well as a petition from the majority
of domestic industry (which may not ever be forthcoming). 6
6 As we explain below, however, the President’s
power is not limited to making the modifications that are
advocated by the Commission Report and requested by the
petition. Still, the receipt of the Commission Report and of
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SOLAR ENERGY INDUSTRIES ASSOCIATION v. US 19
Furthermore, because the power to “modify” a safeguard is
included only in subparagraph (b)(1)(B), and not also in
(b)(1)(A), the President may only make a modification after
determining that domestic industry is making a positive
adjustment to import competition. See infra at pp. 21, 23-
26. While Congress is free to create a “loophole” if it
wishes, here we think it has, instead, cabined the Presi-
dent’s modification authority – just not with the further
constraint of limiting modifications to only trade-liberaliz-
ing changes.
As yet another argument, Appellees contend that “[t]he
total lack of historical usage” of Section 2254(b)(1)(B) “to
restrict trade is further evidence weighing in favor of the
trade court’s interpretation.” SEIA Br. at 26. Even assum-
ing historical practice, or the lack of it, could transform an
otherwise-reasonable reading of a statute into a clear mis-
construction, the government has directed us to one in-
stance in which it appears President Clinton acted
pursuant to Section 2254(b)(1) to take trade-restrictive ac-
tion. See Opening Br. at 39-40 & n.8 (citing Proclamation
7314: To Modify the Quantitative Limitations Applicable to
Imports of Wheat Gluten, 65 Fed. Reg. 34899 (May 26,
2000)); Reply Br. at 17-18. Hence, there does appear to be
historical support for President Trump’s construction of
presidential authority under Section 2254(b)(1)(B).
Finally, Appellees point to the distinction between sub-
section (b)(1)(A), which applies where “domestic industry
has not made adequate efforts to” adjust to import compe-
tition, and subsection (b)(1)(B), which applies where “do-
mestic industry has made a positive adjustment to import
competition.” SEIA Br. at 20-21 (emphasis added). In the
former circumstance, where domestic industry has not re-
sponded positively, Section 2254(b)(1)(A) provides the
a domestic industry petition are the prerequisites to a Pres-
idential modification of a safeguard.
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20 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US
President authority only to “reduce” or “terminate” the
safeguard while in the latter scenario, where domestic in-
dustry “has made a positive adjustment, Section
2254(b)(1)(B) more broadly provides the President author-
ity to “reduce, modify, or terminate” a safeguard. Appellees
insist it would be backwards for Congress to permit the
President to “modify” trade restrictions to become more re-
strictive where domestic industry has positively adjusted
to competition while depriving the President of such trade-
restricting power where domestic industry has not. See,
e.g., SEIA Br. at 18 (“It would make no sense for Congress
to authorize further trade restrictions after the domestic
industry already ‘has made’ a positive adjustment . . . .”).
We side with the government on this point, agreeing with
it that “[t]his distinction logically suggests that Congress
intended to give the President greater flexibility to take ac-
tion when progress is being made, to protect and ensure the
continuation of that progress.” Opening Br. at 34. In sum,
we find this argument of Appellees no more persuasive
than their many other contentions.
For all of these reasons, we conclude it was not a clear
misconstruction for the President to interpret his authority
under Section 2254(b)(1)(B) as permitting him to adopt
trade-restrictive modifications, as well as trade-liberaliz-
ing modifications.
B
The government additionally argues that “even if ‘mod-
ification’ in Section 2254(b)(1)(B) were construed as prohib-
iting the President from implementing an ‘increase’ to the
safeguard measure, Proclamation 10101 should still be
sustained as lawful because the modifications at issue are
neutral in relation to the original safeguard measure.”
Opening Br. at 20. In the government’s view, all that Proc-
lamation 10101 accomplished was “to restore application of
the safeguard measure to bifacial panels and to slow the
rate at which the measured phased down in its fourth
Case: 22-1392 Document: 73 Page: 21 Filed: 11/13/2023
SOLAR ENERGY INDUSTRIES ASSOCIATION v. US 21
year,” neither of which were trade-restricting “increases”
in measures imposed on imports. Id. at 2. Because we find
it was not a clear misconstruction to interpret Section
2254(b)(1)(B) as permitting trade-restrictive modifications
to safeguard measures, we need not, and do not, reach this
issue.
IV
Our siding with the government on whether the Presi-
dent’s statutory interpretation was a clear misconstruction
is not enough to resolve this appeal. Appellees offer, as al-
ternative grounds for affirmance, the arguments they pre-
sented to the trade court for a finding that, in adopting
Proclamation 10101, the President failed to comply with
the procedural requirements of the safeguard statute. In
particular, Appellees renew their contentions that: (1) the
petition leading to Proclamation 10101 was inadequate to
meet the “on such basis” requirement of Section
2254(b)(1)(B); (2) the President’s finding that the domestic
industry “has begun to make” a positive adjustment to im-
port competition does not meet the statutory requirement
that domestic industry “has made” such adjustment; and
(3) the President failed to meet his obligation to weigh the
economic and social costs and benefits of his alterations to
the safeguard tariffs imposed by Proclamation 9693 before
issuing Proclamation 10101. SEIA Br. at 4, 20 n.1 (adopt-
ing arguments from EDF Brief); EDF Br. at 15-16. The
trade court rejected each of these positions and we do so as
well.
A
Appellees argue that the President lacked authority
under Section 2254(b)(1)(B) to modify the safeguards im-
posed by Proclamation 10101 because the petition submit-
ted by domestic industry did not base the modification
request on domestic industry having made a positive ad-
justment to import competition. The portion of Section
2254(b)(1)(B) on which this argument is based provides:
Case: 22-1392 Document: 73 Page: 22 Filed: 11/13/2023
22 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US
Action taken under section 2253 [i.e., a safeguard]
. . . may be reduced, modified, or terminated by the
President (but not before the President receives the
[Commission] report . . .) . . . if the President . . .
determines, after a majority of the representatives
of the domestic industry submits to the President a
petition requesting such reduction, modification, or
termination on such basis, that the domestic indus-
try has made a positive adjustment to import com-
petition.
19 U.S.C. § 2254(b) (emphasis added). Appellees contend
that the phrase “on such basis” refers to the petition, such
that the petition itself must be based on domestic indus-
try’s view that it has made a positive adjustment to import
competition. The trade court, agreeing with the govern-
ment, held instead that “on such basis” refers to the Presi-
dent’s determination, which may be based on the
Commission Report’s finding that domestic industry has
made a positive adjustment, regardless of whether the pe-
tition also contends the same. In other words, the parties
agree that “such” in “on such basis” refers back to some-
thing indicated or implied earlier in the provision, but the
government contends that the thing being referred to is the
Commission mid-point Report while Appellees insist the
thing is, by contrast, the domestic industry petition.
We find both views to be reasonable. Section 2254(b)
expressly refers to both the Commission Report and the do-
mestic industry petition before it sets out the requirement
that the President make a determination, that domestic in-
dustry has made a positive adjustment, “on such basis.”
That “basis” could be the Commission Report or could just
as easily be the industry petition. See J.A. at 20 (trade
court explaining that “a determination made on the basis
of the [Commission] report would reflect the views of an
independent body based on information and argument pro-
vided by all market participants, and would therefore align
with . . . Section [2254](b)(1)(B)’s overall aim of permitting
Case: 22-1392 Document: 73 Page: 23 Filed: 11/13/2023
SOLAR ENERGY INDUSTRIES ASSOCIATION v. US 23
the adjustment of safeguard measures when the industry
as a whole begins to adapt to competition”) (internal quo-
tation marks omitted). It follows, then, that the govern-
ment’s interpretation is not a clear misconstruction and,
hence, we must affirm the trade court’s conclusion on this
point. See Maple Leaf, 762 F.2d at 89. We agree with the
trade court that the President did not violate the “on such
basis” procedural requirement for adopting a modification.
The trade court also concluded that even if Appellees’
interpretation on this point were a clear misconstruction,
“the failure of petitioners to comply with [the petition] re-
quirement would not render Proclamation 10101 unlaw-
ful.” J.A. 21. Given our other conclusions, it is unnecessary
for us to review this determination of the trade court.
B
Appellees next argue that the President failed to com-
ply with Section 2254(b)(1)(B)’s requirement to determine
that “the domestic industry has made a positive adjust-
ment to import competition” (emphasis added). As Appel-
lees correctly observe, in Proclamation 10101 the President
found that “the domestic industry has begun to make posi-
tive adjustment to import competition.” Proclamation
10101, 85 Fed. Reg. at 65640 (emphasis added). According
to Appellees, this is insufficient, as the President merely
made a finding that positive adjustment had started but
did not make the purportedly required finding that such
positive adjustment be completed. Appellees insist that
“‘[h]as made’ and ‘has begun to make’ do not mean the same
thing.” SEIA Br. 58.
Once again, we are not required to decide if Appellees’
interpretation is reasonable or even the better view. In-
stead, we are asked only to determine if the government’s
view, that the statutory language “has made a positive ad-
justment” is broad enough to include circumstances in
which domestic industry “has begun to make a positive ad-
justment,” is a clear misconstruction. Like the trade court,
Case: 22-1392 Document: 73 Page: 24 Filed: 11/13/2023
24 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US
we hold that “the distinction between ‘has made’ and ‘has
begun to make’ is too narrow to rise to the level of a clear
misconstruction.” J.A. 22.
It is reasonable to interpret “has made a positive ad-
justment” as relating to a process, which might be ongoing,
rather than being limited to periods following a completed,
successful adjustment. As the government notes, the stat-
utory phrase is written in the present perfect tense, which
can be used to refer to an action completed entirely in the
past and also to action still in process. See Reply Br. at 36
(citing Kenneth G. Wilson, The Columbia Guide to Stand-
ard American English 342 (1993)). This plain meaning un-
derstanding of “has made” is supported by other parts of
the Trade Act, which recognize that “positive adjustment”
to import competition will occur over time and not on a sin-
gle date. See, e.g., 19 U.S.C. § 2254(c)(1) (“[T]here is evi- dence that the industry is making a positive adjustment to import competition.”) (emphasis added);id.
§ 2254(d)(1)
(“[T]he Commission shall evaluate the effectiveness of the
actions in facilitating positive adjustment by the domestic
industry to import competition.”). Indeed, two of the con-
ditions that the statute expressly identifies as constituting
components of “a positive adjustment” – when “the domes-
tic industry experiences an orderly transfer of resources”
and “workers in the industry experience an orderly transi-
tion,” id. § 2251 (emphasis added) – use the present tense,
again reflecting that positive adjustment by domestic in-
dustry can involve an ongoing process.
Thus, we agree with the trade court that the President
did not violate the procedural requirement that he deter-
mine that domestic industry “has made” a positive adjust-
ment to competition from imports.
C
Finally, we consider whether the President is required
to re-weigh costs and benefits when modifying a safeguard
pursuant to Section 2254(b)(1). The trade court concluded
Case: 22-1392 Document: 73 Page: 25 Filed: 11/13/2023
SOLAR ENERGY INDUSTRIES ASSOCIATION v. US 25
that the President must do so and also that, in connection
with Proclamation 10101, he did so. J.A. 27-28. We con-
clude, by contrast, that the President is not required to re-
weigh costs and benefits when modifying a safeguard
measure. Thus, we need not decide whether the President
complied with this non-requirement in issuing Proclama-
tion 10101.
Two statutory provisions mention the President’s obli-
gation to weigh costs and benefits. The first is Section
2251(a), which provides:
If the United States International Trade Commis-
sion (hereinafter referred to in this part as the
“Commission”) determines under [S]ection 2252(b)
of this title that an article is being imported into
the United States in such increased quantities as
to be a substantial cause of serious injury, or the
threat thereof, to the domestic industry producing
an article like or directly competitive with the im-
ported article, the President, in accordance with
this part, shall take all appropriate and feasible ac-
tion within his power which the President deter-
mines will facilitate efforts by the domestic industry
to make a positive adjustment to import competition
and provide greater economic and social benefits
than costs.
19 U.S.C. § 2251(a) (emphasis added). Section 2253(a) re- states the President’s authority to take safeguard action under Section 2251(a), reciting the requirement that the President must consider both long- and short-term benefits and costs. See19 U.S.C. § 2253
(a)(2)(E) (“In determining
what action to take . . ., the President shall take into ac-
count . . . the short- and long-term economic and social
costs of the actions authorized . . . relative to their short-
and long-term economic and social benefits.”).
These provisions expressly apply to the initial adoption
of a safeguard measure and make no reference to
Case: 22-1392 Document: 73 Page: 26 Filed: 11/13/2023
26 SOLAR ENERGY INDUSTRIES ASSOCIATION v. US
modification of such measures. The President’s power to
reduce, modify, or terminate an existing safeguard is gov-
erned by Section 2254(b)(1), which makes no mention
whatsoever of cost-benefit determinations. Nor does any
portion of the safeguard statute tie the requirement of a
cost-benefit analysis, set out in Sections 2251(a) and
2253(a)(1)(A), to the President’s power to reduce, modify,
or terminate a safeguard, as provided for in Section 2254.
The trade court seems to have been persuaded to adopt
the contrary view due, at least in part, to its concern that
the government’s interpretation “risks permitting absurd
results” (e.g., a 1% initial tariff followed by a 50% modified
tariff, with no cost-benefit analysis of the 50% rate) and
might allow the modification “exception” of Section 2254 to
“swallow . . . the rule” of Section 2251. J.A. 27. We do not
share this fear. On any reading, a “modification” must be
a relatively minor adjustment; expansion of a 1% duty to a
50% duty is obviously not a minor change. And any modi-
fication to a duty rate must comply with the phase-down
requirement, preventing the modified tariff from being any
higher than the tariff that was imposed in the preceding
year. See Reply Br. at 42 (Government conceding “[t]he
President’s modification authority remains subject to the
section 2253(e)(5) phase-down requirement”). More im-
portantly, the trade court failed to explain how its conclu-
sion is consistent with the actual language of the statute,
or how the government’s interpretation is a clear miscon-
struction.
We conclude that the President’s view that he was not
required to re-weigh the costs and benefits when modifying
the safeguard pursuant to Section 2254(b)(1) is not a clear
misconstruction. Thus, Appellees have failed to show that
the President committed any procedural violation in issu-
ing Proclamation 10101.
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SOLAR ENERGY INDUSTRIES ASSOCIATION v. US 27
V
Because the President’s interpretation of 19 U.S.C.
§ 2254(b)(1)(B) as permitting trade-restricting modifica-
tions is not a clear misconstruction, and because the Pres-
ident did not violate the procedural requirements of the
statute, we reverse the trade court’s judgment. Proclama-
tion 10101 is not invalid.
REVERSED AND REMANDED
COSTS
No costs.
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