American Whitewater v. FERC
CourtCourt of Appeals for the D.C. Circuit
Date FiledJuly 24, 2026
Docket25-1092
StatusPublished
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Full Opinion
United States Court of Appeals
FOR THE DISTRICT OF COLUMBIA CIRCUIT
Argued March 12, 2026 Decided July 24, 2026
No. 25-1092
AMERICAN WHITEWATER,
PETITIONER
v.
FEDERAL ENERGY REGULATORY COMMISSION,
RESPONDENT
On Petition for Review of Orders of the
Federal Energy Regulatory Commission
Haley Nicholson argued the cause for petitioner. With her
on the briefs were Robert A. Nasdor and Kevin Cassidy.
J. Houston Shaner, Attorney, Federal Energy Regulatory
Commission, argued the cause for respondent. With him on
the brief were James T. Dawson, General Counsel, and Robert
H. Solomon, Solicitor.
Before: MILLETT and PAN, Circuit Judges, and ROGERS,
Senior Circuit Judge.
Opinion for the Court by Senior Circuit Judge ROGERS.
Opinion concurring in part and dissenting in part by
Circuit Judge PAN.
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ROGERS, Senior Circuit Judge: American Whitewater
petitions for review of the orders of the Federal Energy
Regulatory Commission denying its motion to intervene out of
time in a license surrender proceeding pursuant to 18 C.F.R.
§ 385.214(b)(3) (“Rule 214”), and its request for rehearing.
Petitioner contends that the Commission’s action was arbitrary
and capricious for two reasons: First, the Commission erred
by conflating the Rule’s good cause provisions because
Petitioner’s motion satisfied the requirements of the Rule,
which by its plain terms only requires a late intervenor to
establish good cause for why the time limitation on filing
should be waived under subsection (b)(3), and not good cause
for filing late under subsection (d)(1)(i). Petitioner’s Br. 7–8.
Second, the Commission compounded the error in denying
rehearing by failing to reconcile its decision with its precedent
on late intervention. Id. at 8.
For the following reasons, the court concludes that
Petitioner fails to show that the Commission erred by
interpreting Rule 214 to require more than administrative
oversight under subsection (d)(1)(i) to show good cause under
subsection (b)(3), and absent that mandatory requirement, the
Commission had discretion whether to consider other factors
under subsection (d)(1). But Petitioner has shown that the
Commission acted arbitrarily and capriciously in denying
rehearing by inconsistently applying its precedent on late
intervention without a reasoned explanation, contrary to a
fundamental principle of administrative law that agencies must
treat similarly situated parties similarly. Accordingly, the court
vacates the orders and remands the case to the Commission.
The Commission retains jurisdiction, notwithstanding the
conditional approval of surrender of license and
decommissioning leaving the dam in place, to reconsider
petitioner’s motion to intervene and provide a reasoned
explanation for its determination consistent with its precedent.
3
I.
Petitioner is a national non-profit river conservation and
recreation organization whose members include whitewater
paddlers of kayaks and canoes, many of whom live or engage
in recreational boating in Missouri. It recently intervened in a
license surrender proceeding of a hydroelectric project on a
river between Maine and New Hampshire, urging that two
dams be removed to restore whitewater boating and related
recreational activities. Am. Whitewater v. FERC, 125 F.4th
1139, 1145, 1153 (D.C. Cir. 2025). Here, too, Petitioner sought
to intervene, filing a motion for intervention out of time in the
license surrender proceeding for the Niangua Hydroelectric
Project in Missouri that was proceeding without requiring
removal of a dam. The Niangua Project was completed in
1930, impounded the Niangua River, creating Lake Niangua,
and had been operated by the Missouri Electric Power
Company before it was acquired by the Sho-Me Power Electric
Cooperative in the mid-twentieth century.
In 1994, the Commission approved Sho-Me’s application
for relicensing of the Niangua Project for a term of thirty years,
to June 1, 2024. As the end of the license term neared, on May
30, 2019, Sho-Me filed a Notice of Intent to file an application
for a new forty-year license. Sho-Me conducted various
technical studies of the Niangua Project, including studies for
water quality, lake floor mapping, and cultural resources. After
consulting the stakeholders, however, Sho-Me determined that
the Project’s “contribution to their core business commitment
of providing safe, reliable, and low-cost power to rural
Missourians did not justify relicensing.” License Surrender
Application, Ex. A at A-10. On December 3, 2021, Sho-Me
filed a request to withdraw its Notice of Intent. The
Commission received no applications from other licensees to
operate the Niangua Project, see 18 C.F.R. § 16.25(a), and on
May 17, 2022, requested Sho-Me to file a plan and schedule
for a formal license surrender application. On July 15, 2022,
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Sho-Me filed a plan and schedule for the license surrender
application.
On June 29, 2023, Sho-Me filed an application for
surrender of its license, proposing to decommission the project
and leave the dam and surrounding power structures in place to
maintain the impoundment level of Lake Niangua. The
application stated that the proposal “balances various
interests,” acknowledging the preference of various federal and
state resource agencies for dam removal and river restoration,
and “a strong preference” of “the local community surrounding
the Niangua Project . . . for maintaining Lake Niangua and
keeping the dam in place” because of aesthetic and recreational
interests. License Surrender Application, Ex. A at A-11. As a
next step, on July 6, 2023, Sho-Me provided notice of its
application to landowners near the Project by certified mail,
with a deadline for filing comments, motions to intervene, and
protests by August 31, 2023. Notice of Sho-Me’s license
surrender application was placed on the Commission’s website
on August 1, 2023, and in the Federal Register six days later,
88 Fed. Reg. 52,153 (Aug. 7, 2023). Under the Commission’s
regulations, “[o]nly . . . filings made within the time prescribed
in the notice will be considered timely.” 18 C.F.R.
§ 385.210(b).
On March 28, 2024, the Commission published a Notice
of Intent to prepare an Environmental Assessment (“EA”) for
Sho-Me’s application for license surrender pursuant to the
National Environmental Policy Act, 42 U.S.C. §§ 4321 et seq.
(“NEPA”). See 89 Fed. Reg. 21,510 (Mar. 28, 2024). The
Notice invited federal, state, local, and Tribal agencies affected
by the proposal to cooperate in the preparation of the EA
planned to be issued in July 2024. Id. at 21,510–11. The EA
was to be “made available for review by all interested parties”
and “comments filed on the EA will be reviewed by staff and
considered in the Commission’s final decision on the
proceeding.” Id. at 21,510. The schedule called for completion
5
of the EA on September 30, 2024. Id. The Commission set a
comment deadline of August 29, 2024, and later extended it to
September 30, 2024.
Petitioner filed a motion to intervene out of time in the
license surrender proceeding on May 28, 2024, pursuant to
Rule 214(b)(3). The motion identified Petitioner and its
mission to protect and restore the Nation’s whitewater
resources and stated its members included kayakers and
canoers in Missouri; many of whom would be directly affected
by the outcome of the license surrender proceedings. Mot. to
Intervene at 1. The motion described the dependent
relationship between the dam and Lake Niangua, “a shallow
impoundment with limited recreational use,” and the “quiet
stretches” for ample boating activities on 125 miles of Niangua
River. Id. at 2. Pointing to the Commission’s use of a “broad
‘public interest’” standard in assessing hydropower surrender
applications, the motion argued that Petitioner’s “participation
in this proceeding will ensure that the interests of the public are
represented,” id. (citing 16 U.S.C. § 799). Further, the motion
explained: (1) “The organization only recently became aware
of this proceeding and was unaware that the deadline for
intervention had passed,” (2) “No party to this proceeding will
be prejudiced by granting late intervention,” (3) “[N]or will
granting [Petitioner’s] Motion to Intervene Out of Time delay
this proceeding,” and (4) “No other party to this proceeding can
adequately represent [Petitioner’s] interest in this proceeding
as the organization’s primary focus is on recreational boating.”
Id. at 3.
The EA issued on July 30, 2024, shortly after Sho-Me’s
30-year license expired on June 1 and the Project began
operating under annual licenses. It considered full removal and
staged partial removal of the Project’s dam as alternative
actions, ultimately recommending approval of the application
for license surrender with the dam, power tunnel, and
powerhouse left in place. The EA listed Petitioner, Ameren
6
Missouri (an electric utility company), and several state and
federal resource and conservation agencies as having filed
notices of intervention or motions to intervene. On September
30, 2024, Petitioner and Great Rivers Environmental Law
Center filed comments on the EA stating, as relevant, the EA
was arbitrary and capricious and violated NEPA and other
statutes because it ignored “foreseeable cumulative effects”
and “relied on speculative conclusions based on incomplete
data” in recommending surrender of license without dam
removal. EA Comments at 15.
Over a year later, while this appeal was pending, the
Commission approved the surrender of Sho-Me’s license with
the dam in place, subject to terms and conditions and having
considered and rejected the arguments in Petitioner’s
comments. Order Approving Surrender of License, Sho-Me
Power Electric Cooperative, 193 F.E.R.C. ¶ 61,216 (Dec. 18,
2025) (“Surrender Order”).
Previously, over a year before, the Commission denied, on
October 15, 2024, Petitioner’s unopposed motion to intervene
out of time because it “failed to demonstrate good cause for its
inability to intervene in a timely manner.” Notice Denying
Late Intervention at 1 (Oct. 15, 2014) (“Motion Order”).
Petitioner sought rehearing of the Commission’s denial, and on
December 13, 2024, the Commission denied Petitioner’s
request by operation of law, 16 U.S.C. § 825l(a), subject to a
further order (“Denial Order”). On January 16, 2025, the
Commission addressed Petitioner’s arguments, reaching the
same result while “modifying the discussion” in the Motion
Order. 190 F.E.R.C. ¶ 61,028, at P 2 (2025) (“Rehearing
Order”).
In denying rehearing, the Commission stated that “[u]nder
the Commission’s regulations, a movant seeking late
intervention must establish that there is good cause for its late
filing,” namely, “any explanation by the movant of why it was
unable to intervene in a timely manner.” Id. at P 8–9 & nn.16–
7
19 (citing 18 C.F.R. § 385.214(b)(3), (d)(1)(i); Broadview
Solar LLC, 174 F.E.R.C. ¶ 61,199, at P 16 (2021); Double E
Pipeline, LLC, 173 F.E.R.C. ¶ 61,074, at P 18 (2020)).
Petitioner had failed to establish good cause because under
Commission precedent a “[l]ack of awareness of a publicly-
noticed proceeding, without more, does not constitute good
cause.” Id. at P 10 & n.25 (citing Dakota Nat. Gas, LLC,
Notice Denying Late Interventions, Dkt. No. CP18-511-000
(Oct. 30, 2018)). Rejecting Petitioner’s argument that “even if
it failed to demonstrate good cause, other factors under Rule
214(d) weigh in favor of granting its motion,” the Commission
stated that “failure to establish good cause is a sufficient
condition to deny intervention and no other factors need be
examined where good cause does not exist.” Id. at P 11 & n.27
(citing Double E Pipeline, 173 F.E.R.C. ¶ 61,074, at P 23;
Power Co. of Am. v. FERC, 245 F.3d 839, 843 (D.C. Cir. 2001);
Cal. Trout v. FERC, 572 F.3d 1003, 1023 (9th Cir. 2009)). The
Commission acknowledged that although it “has granted
petitions for late intervention with differing rationale, in each
instance it has weighed the requirements of Rule 214 only after
focusing on whether good cause has been shown for the late
filing.” Id. at P 13 & n.36 (citing Venture Glob. CP2 LNG,
LLC, 189 F.E.R.C. ¶ 61,148, at P 13 (2024); STS Hydropower,
LLC, Notice Denying Late Intervention, Project No. P-7242-
060 (Oct. 16, 2024); Double E Pipeline, 173 F.E.R.C. ¶ 61,074,
at PP 17–23)). The Commission added: “In each case, the
Commission makes a fact-specific determination.” Id. at P 13
& n.37 (citing Woodland Pulp, LLC, Notice Granting Late
Intervention, Project No. P-2660-038 (Aug. 22, 2024)
(unreported)).
Petitioner seeks review of the Motion Order, Denial Order,
and Rehearing Order pursuant to 16 U.S.C. § 825l(b).
II.
The Federal Power Act authorizes the Commission to
regulate the licensing of hydropower projects on “navigable
8
waters of the United States.” 16 U.S.C. § 817(1). Once
granted, a license may be “surrendered only upon mutual
agreement between the licensee and the Commission.” Id.
§ 799; see 18 C.F.R. § 6.2. To initiate surrender, a licensee
must file an application stating the reasons for surrender, 18
C.F.R. § 6.1, and the Commission may condition surrender of
the license, including with respect to decommissioning any
project works that have been built, id. § 6.2. Under
Commission policy, decommissioning can range from “simply
shutting down the power operations” to “tearing out all parts of
the project, including the dam, and restoring the site to its pre-
project condition.” Project Decommissioning at Relicensing;
Policy Statement, 60 Fed. Reg. 339, 340 (Jan. 4, 1995)
(“Decommissioning Policy”). Once a project is “no longer
licensed,” and the Commission considers its jurisdiction over
the project to end, “future operation of any remaining works is
then the responsibility of whoever next assumes regulatory
authority,” typically, the State in which the project is located.
Id. at 346.
On review, Petitioner presents textual and procedural
challenges to the Commission’s orders on intervention in the
Niangua Project license surrender proceedings. Petitioner
contends, first, the denial of its motion to intervene was
arbitrary and capricious because it was based on a
misinterpretation of the plain text of Rule 214, contrary to the
regulatory history, and insufficiently explained, Petitioner’s Br.
8, 18, and second, in denying rehearing the Commission
compounded its error by “grossly inconsistent and fluctuating
interpretations of Rule 214,” id. at 8; see id. at 11, 20.
Petitioner presents no separate argument regarding the Denial
Order.
The court’s review of these challenges under the
Administrative Procedure Act is limited. The court is to
determine whether the Commission’s action was “arbitrary,
capricious, an abuse of discretion, or otherwise not in
9
accordance with law.” Am. Whitewater, 125 F.4th at 1150
(quoting 5 U.S.C. § 706(2)(A)). A decision to deny a motion
to intervene is neither arbitrary nor capricious so long as it is
“reasonable and reasonably explained.” FCC v. Prometheus
Radio Project, 592 U.S. 414, 423 (2021). And the Commission
“enjoys broad discretion” when managing its own docket.
Mobil Oil Expl. & Producing Se. Inc. v. United Distrib. Cos.,
498 U.S. 211, 230 (1991). Additionally, when the Commission
applies procedural Rule 214(d)(1), the court inquires only
whether “the Commission abused its discretion,” i.e., “whether
the [Commission’s] decision was based on a consideration of
the relevant factors and whether there has been a clear error of
judgment.” City of Orrville v. FERC, 147 F.3d 979, 991 (D.C.
Cir. 1998) (quoting Citizens to Pres. Overton Park, Inc. v.
Volpe, 401 U.S. 402, 416 (1971)). The Commission, however,
“cannot depart from [its] rulings without ‘provid[ing] a
reasoned analysis indicating that prior policies and standards
are being deliberately changed.’” W. Deptford Energy, LLC v.
FERC, 766 F.3d 10, 17 (D.C. Cir. 2014) (second alteration in
original) (quoting Alcoa Inc. v. FERC, 564 F.3d 1342, 1347
(D.C. Cir. 2009)).
A.
A threshold question concerns the court’s jurisdiction now
that the Commission has issued the Surrender Order granting
Sho-Me’s application for license surrender and
decommissioning. The court, in accord with “an independent
duty to assure [itself] that the petitioners and their claims
satisfy the requirements of Article III” of the Constitution,
TikTok Inc. v. Garland, 122 F.4th 930, 947 (D.C. Cir. 2024)
(citing Exelon Corp. v. FERC, 911 F.3d 1236, 1240 (D.C. Cir.
2018)), considers whether Petitioner has standing to bring its
case and whether the case is moot.
To establish standing, a petitioner must show that (i) it
“suffered an injury in fact that is concrete, particularized, and
actual or imminent”; (ii) the “injury was likely caused by the
10
defendant”; and (iii) the injury “would likely be redressed by
judicial relief.” TransUnion LLC v. Ramirez, 594 U.S. 413, 423
(2021) (citing Lujan v. Defs. of Wildlife, 504 U.S. 555, 560–
561 (1992)). The declarations filed by Petitioner’s members
state that they would engage in recreational activities on the
Niangua River if the dam was removed from the Project area.
See, e.g., Decl. of Laura Sievert ¶¶ 19–24; Decl. of Casey
Tortorige ¶ 18. Petitioner’s inability to intervene in the license
surrender proceedings to seek removal of the dam is an injury
in fact caused by the challenged orders that would be
redressable by an opinion from the court instructing the
Commission to reconsider the intervention motion. See City of
Orrville, 147 F.3d at 990 n.12; Beyond Nuclear, Inc. v. Nuclear
Regul. Comm’n, 113 F.4th 956, 962–63 (D.C. Cir. 2024), cert.
denied sub nom. Beyond Nuclear, Inc. v. NRC, 223 L. Ed. 2d
513 (Jan. 12, 2026). Further, Petitioner satisfies the
requirements of associational standing: (1) its members would
have standing to sue in their own right, (2) the interest
Petitioner seeks to protect are “germane to [its] purpose” as a
nonprofit organization advocating for river conservation and
recreation, and (3) individualized participation is not necessary
for the challenge to denial of intervention or for the court to
provide relief. Hunt v. Wash. State Apple Advert. Comm’n, 432
U.S. 333, 343 (1977).
This case also is not moot even though the Commission
has approved Sho-Me’s application to surrender the Project
license with the dam in place. A case is moot if “the issues
presented are no longer ‘live’ or the parties lack a legally
cognizable interest in the outcome.” Already, LLC v. Nike, Inc.,
568 U.S. 85, 91 (2013) (quoting Murphy v. Hunt, 455 U.S. 478,
481 (1982)). The Commission typically loses jurisdiction over
a project once the party surrendering its license completes the
decommissioning in compliance with the Surrender Order.
See Am. Whitewater, 125 F.4th at 1147, 1152;
Decommissioning Policy at 346. Here, the Surrender Order
states that the license continues in effect “until the
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Commission’s Division of Dam Safety and Inspections –
Chicago Regional Engineer has issued a letter stating that the
project facilities have been decommissioned in accordance
with this surrender order.” Surrender Order at P 66(E).
According to the Commission’s docket, that letter had not yet
issued as of the date of this opinion. See Sho-Me
Power Elec. Cooperative, Fed. Energy Reg. Comm’n Dkt. No.
P-2561-000. Nor have the parties advised the court otherwise.
The Commission, therefore, has jurisdiction to grant the relief
sought: to reconsider the denial of Petitioner’s motion to
intervene out of time. See Pub. Serv. Comm’n of State of N.Y.
v. Fed. Power Comm’n, 284 F.2d 200, 205–206 (D.C. Cir.
1960); cf. Am. Whitewater, 125 F.4th at 1152. Were
intervention granted, then Petitioner could move for reopening
or reconsideration of the Surrender Order. See Fla. Gas
Transmission Co., 100 F.E.R.C. ¶ 61,282, at 62,225 (2002); cf.
Pub. Serv. Comm’n, 284 F.2d at 205–206.
B.
Turning to Petitioner’s challenges to the Commission’s
denial of its motion to intervene out of time, Petitioner
contends that the Commission misinterpreted the plain text of
Rule 214(b)(3), acted contrary to its regulatory history, and
insufficiently explained its interpretation. Petitioner’s Br. 18.
This contention is unpersuasive.
Section 313(b) of the Federal Power Act provides that only
“part[ies]” to Commission proceedings may seek
administrative or judicial review of the Commission’s final
orders. 16 U.S.C. § 825l(b). Pursuant to its rulemaking
authority, id. § 825g(a), the Commission promulgated Rule
214 on intervention, see 47 Fed. Reg. 19,014 (May 3, 1982),
whereby anyone (with the exception of certain governmental
and tribal entities) seeking to become a party “must file a
motion to intervene.” 18 C.F.R. § 385.214(a)(3).
12
Rule 214 establishes different requirements for timely and
untimely motions to intervene. A timely motion must state “the
position taken by the movant and the basis in fact and law for
that position,” id. § 385.214(b)(1), and demonstrate sufficient
facts showing that the movant either has a statutory or
regulatory right to participate, “represents an interest which
may be directly affected by the outcome of the proceeding,” or
that its participation would be “in the public
interest.” Id. § 385.214(b)(2). An untimely motion must
additionally show “good cause why the time limitation should
be waived.” Id. § 385.214(b)(3). A movant filing a timely
unopposed motion to intervene automatically becomes a party
fifteen days after the motion is filed. Id. § 385.214(c)(1). An
opposed or untimely motion to intervene must be approved by
the Commission. Id. § 385.214(c)(2). Subsection (d) provides:
(1) In acting on any motion to intervene filed after
the period prescribed under Rule 210, the decisional
authority may consider whether:
(i) The movant had good cause for failing to file
the motion within the time prescribed;
(ii) Any disruption of the proceeding might
result from permitting intervention;
(iii) The movant’s interest is not adequately
represented by other parties in the proceeding;
(iv) Any prejudice to, or additional burdens
upon, the existing parties might result from permitting
the intervention; and
(v) The motion conforms to the requirements of
paragraph (b) of this section.
Id. § 385.214(d) (emphasis added).
13
The Commission concluded that Petitioner did not
establish good cause under Rule 214(b)(3) because its motion
to intervene merely stated that Petitioner “recently became
aware of the proceeding and was unaware the deadline to
intervene had passed” and “administrative oversight” was “not
persuasive.” Motion Order at 1. On rehearing, the
Commission elaborated, additionally stating that “[t]o
determine whether a late intervenor established good cause
[under Rule 214(b)(3)], the Commission considers any
explanation by the movant of why it was unable to intervene in
a timely manner [under Rule 214(d)(1)(i)].” Rehearing Order
at P 9 & n.19 (citing Double E Pipeline, 173 F.E.R.C. ¶ 61,074,
at P 18); see id. at P 8 & n.16 (citing 18 C.F.R. § 385.214(b)(3),
(d)(1)). Because “[l]ack of awareness of a publicly-noticed
proceeding, without more, does not constitute good cause,” the
Commission denied the motion. Id. at P 10 & n.25 (citing
Dakota Nat. Gas, LLC, Notice Denying Late Interventions,
Dkt. No. CP18-511-000 (Oct. 30, 2018)).
Petitioner’s plain text challenge stands or falls on whether
the Commission “conflated” the mandatory good-cause
requirement under subsection (b)(3) with the discretionary
good-cause factor under subsection (d)(1)(i) by deeming the
latter mandatory. Petitioner’s Br. 16. In Petitioner’s view, the
“plain text” of Rule 214 did “not require[] [it] to show good
cause for failing to file within the time prescribed [under
subsection (d)(1)(i)],” but only “good cause for why the time
limitation should be waived [under subsection (b)(3)].” Id. at
17. Petitioner thus contends that the Commission erred by
deeming the failure to satisfy subsection (d)(1)(i) fatal to its
intervention motion. Id. at 15–17.
This interpretation overlooks the relationship between the
subsections (b)(3) and (d)(1) of Rule 214. See Respondent’s
Br. 26. Petitioner acknowledges that subsection (b)(3) requires
a movant to establish “good cause why the time limitation
should be waived,” and is thereby mandatory. Petitioner’s Br.
14
18. It does not follow, however, that a movant can disregard
any of the (d)(1) factors at will. Good cause is not defined in
the Rule, and subsection (d) provides notice that in acting on
an untimely motion, “the decisional authority may consider”
any of the five listed factors, including good cause for failing
to file within the prescribed time, 18 C.F.R. § 385.214(d)(1)(i)
(emphasis added). See Rehearing Order at P 11 n.29 (citing
Tenn. Gas Pipeline Co., 162 F.E.R.C. ¶ 61,167, at P 50 (2018)).
“The word ‘may’ customarily connotes discretion,” Jama v.
Immigr. & Customs Enf’t, 543 U.S. 335, 346 (2005), and this
court has held that “the text of 18 C.F.R. § 385.214(d)(1) does
not compel consideration of each of the factors.” City of
Orrville, 147 F.3d at 991 (citing Citizens to Pres. Overton Park,
401 U.S. at 416). The plain text of the Rule does not bar the
Commission from relying solely on the first (d)(1)(i) factor –
“good cause for failing to file the motion within the time
prescribed” – to the exclusion of the rest to determine whether
a movant “show[ed] good cause why the time limitation should
be waived” under subsection (b)(3). 18 C.F.R. § 385.214(b)(3),
(d)(1)(i); see City of Orrville, 147 F.3d at 991; Cal. Trout v.
FERC, 572 F.3d 1003, 1014–1015 (9th Cir. 2009); cf. Power
Co. of Am., 245 F.3d at 843.
The Commission’s interpretation does not make the two
good cause provisions “superfluous,” as Petitioner maintains.
Petitioner’s Br. 17. The subsections serve different purposes.
Subsection (b)(3) requires a movant to establish good cause
why the filing time limitation should be waived. Subsection
(d)(1) specifies the factors that the Commission may, but is not
required to, rely on in evaluating whether the movant
established good cause under subsection (b)(3), including
whether the movant provided a persuasive explanation of why
it missed the deadline in the first place under factor (d)(1)(i).
Further, contrary to Petitioner’s view, the regulatory
history of Rule 214 is consistent with the Commission’s
interpretation. Petitioner’s Br. 17–18. The regulatory history
15
merely states that “Rule 214(d) sets forth . . . general criteria to
be applied by the decisional authority in exercising discretion
to grant late intervention.” 47 Fed. Reg. at 19018 (emphasis
added). Nothing in the text or regulatory history of Rule 214
requires the Commission to consider any or all of the (d)(1)
factors in assessing “good cause.” Nor, as Petitioner suggests,
is Swanson Mining Corp. v. FERC, 790 F.2d 96 (D.C. Cir.
1986), to the contrary. Petitioner’s Br. 22–23. There, the court
upheld the Commission’s reliance on the other (d)(1) factors to
find good cause to grant intervention but did not hold that the
Commission was required to consider these factors. Swanson,
790 F.2d at 105.
As is clear, Petitioner is incorrect that the Commission
failed “to cite prior orders that deny late intervention based on
a failure to prove good cause under Rule 214(d)(1)(i).”
Petitioner’s Br. 18. In the Rehearing Order, the Commission
relied on Double E Pipeline, 173 F.E.R.C. ¶ 61,074 (2020),
explaining that “[t]o determine whether a late intervenor
established good cause, the Commission considers whether the
movant explains why it was unable to intervene in a timely
manner” – a factor under Rule 214(d)(1)(i). Rehearing Order
at P 9 & n.19 (quoting Double E Pipeline, 173 F.E.R.C.
¶ 61,074, at P 18). As here, because the intervenors in Double
E Pipeline failed to provide justification for their late filing, the
Commission concluded they failed to demonstrate “that good
cause existed to justify waiving the time limitation for
interventions” under Rule 214(b)(3) without considering “the
other factors in Rule 214(d).” 173 F.E.R.C. ¶ 61,074, at P 25.
Petitioner fails, therefore, to show that the Commission
arbitrarily and capriciously interpreted Rule 214 in denying
Petitioner’s motion to intervene.
C.
But Petitioner also contends that the Commission was
arbitrary and capricious when it applied “inconsistent and
16
fluctuating interpretation of Rule 214” in denying Petitioner’s
request for rehearing of the denial of the motion to intervene
out of time. Petitioner’s Br. 15. Petitioner is correct.
The Commission concluded on rehearing that Petitioner
“failed to demonstrate that good cause exists to grant its motion
to intervene out of time” because administrative oversight is
insufficient to establish good cause, and “failure to establish
good cause is a sufficient condition to deny intervention and no
other factors need be examined.” Rehearing Order at PP 6, 10–
11. The Commission added: “Although [it] has relied on
differing rationales to grant late intervention petitions, in each
instance the Commission has weighed the requirements of Rule
214 only after focusing on whether good cause has been shown
for the late filing.” Id. at P 13 (emphasis added). In so
concluding, the Commission relied on Tennessee Gas, LLC,
162 F.E.R.C. ¶ 61,167 (2018), where it announced that “going
forward” it would be “less lenient in the grant of late
interventions” due to a “pattern” of “failures” by movants to
address Rule 214’s requirements, id. at PP 49–51; see
Rehearing Order at 11 & n.27.
In Double E Pipeline, LLC, 173 F.E.R.C. ¶ 61,074 (2020),
the Commission explained, in reliance on Tennessee Gas, that
“[t]o determine whether a late intervenor established good
cause, the Commission considers whether the movant explains
why it was unable to intervene in a timely manner” and that
“good cause must be established before the other factors in
Rule 214(d) will be considered.” Id. at PP 18, 25. The
Commission re-affirmed in Venture Global CP2 LNG, LLC,
189 F.E.R.C. ¶ 61,148 (2024), that “the Tennessee Gas decision
. . . represents current Commission policy.” Id. at P 14. Even
though in Venture Global the Commission distinguished
Tennessee Gas as only applying to certain Natural Gas Act
proceedings, id., that distinction does not make a difference
here because the Commission relied on Tennessee Gas and its
17
progeny in the Rehearing Order at P 11 & n.27 (citing Double
E Pipeline, 173 F.E.R.C. ¶ 61,074, at P 18).
“It is textbook administrative law that an agency must
‘provide[] a reasoned explanation for departing from precedent
or treating similar situations differently,’” W. Deptford Energy,
766 F.3d at 20 (quoting ANR Pipeline Co. v. FERC, 71 F.3d
897, 901 (D.C. Cir. 1995)) (alteration in original). “If the
agency makes an exception in one case, then it must either
make an exception in a similar case or point to a relevant
distinction between the two cases.” Westar Energy, Inc. v.
FERC, 473 F.3d 1239, 1241 (D.C. Cir. 2007) (citations
omitted). “Without any explicit recognition by the
Commission that the standard has been changed, or any attempt
to forthrightly distinguish or outrightly reject apparently
inconsistent precedent, [the court is] left with no guideposts for
determining the consistency of administrative action in similar
cases, or for accurately predicting future action by the
Commission.” Hatch v. FERC, 654 F.2d 825, 834–35 (D.C.
Cir. 1981).
Petitioner maintains that the Commission’s interpretation
of Rule 214 has been “inconsistent” in three ways: (1) the
Commission has not always required a showing of “good cause
. . . for the late filing.” (2) Relatedly, the Commission “has not
consistently determined that administrative oversight will be
fatal to a late intervention motion under Rule 214.” (3) And the
Commission “has found ‘good cause’ based on an evaluation
of the Rule 214(d) factors” beyond good cause for filing late
under (d)(1)(i). Petitioner’s Br. 20–22. Petitioner’s third
example is, in essence, duplicative of its textual challenge to
the Commission’s interpretation that if (d)(1)(i) “‘good cause’
is not established, it need not consider the factors listed under
Rule 214(d),” Petitioner’s Br. 22, which the court has rejected
in Part II.B, supra. The additional regulatory history involving
the Natural Gas Policy Act advanced by the Petitioner,
Petitioner’s Br. 23, is not to the contrary, offering an
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unremarkable observation that one of the (d)(1) factors “may
[but does not have to] be considered when” the Commission
“rules on late interventions.” 49 Fed. Reg. 21,701, 21,702
(May 23, 1984). Neither are the FEDERAL RULES OF CIVIL
PROCEDURE authoritative in interpreting the Commission’s
intervention rule. Petitioner’s Br. 24. Because Petitioner
raised its textual challenge to interpretation of Rule 214, the
Commission’s position that this argument is forfeit,
Respondent’s Br. 33, lacks merit.
The question remains whether the Commission has
applied Tennessee Gas and its progeny inconsistently to
similarly situated movants seeking to intervene pursuant to
Rule 214. In this regard, the Commission maintains that
Petitioner “identifies no conflict with Commission precedent”
because four of the decisions noted by Petitioner are
“distinguishable” as either post-dating the Rehearing Order,
see, e.g., Valley Link Transmission Maryland, LLC, 191
F.E.R.C. ¶ 61,113, at P 22 (2025), or as non-precedential
decisions of administrative law judges, see, e.g., Basin Elec.
Power Coop., Order Granting Late Intervention, Dkt. No.
ER22-137-000 (Apr. 15, 2025) (unreported). Respondent’s Br.
27–32. Further, the Commission maintains that in two cases
the movants demonstrated good cause for filing late because
they were not located in the United States or because they filed
timely in one proceeding and only later did it become clear that
intervention was necessary in a related proceeding.
Respondent’s Br. 29–31 (citing Woodland Pulp, LLC, Notice
Granting Late Intervention, Project No. P-2660-038 (Aug. 22,
2024); Erie Boulevard Hydropower, L.P., 188 F.E.R.C.
¶ 61,057, at P 11 (2024)). And the Commission intimates that
it made “fact-specific determination[s]” to grant out-of-time
intervention where the parties moved “more quickly than”
Petitioner. Respondent’s Br. 29–30 (citing Woodland Pulp).
Petitioner responds with even more cases demonstrating
the Commission’s inconsistent application of its late-
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intervention precedent. Specifically, Petitioner points to four
cases where the Commission granted out-of-time motions to
intervene despite the movants’ failure to specify good cause for
late filing beyond administrative oversight. See Athens Utils.
Bd. v. TVA, 177 F.E.R.C. ¶ 61,021, at P 87 (2021) (failing to
consider good cause for filing late); DTE Energy Trading, Inc.,
182 F.E.R.C. ¶ 61,207, at P 21 (2023) (same); Duquesne Light
Co. v. PJM Interconnection, LLC, 176 F.E.R.C. ¶ 61052, at
P 13 (2021) (same); W. Tex. LPG Pipeline Ltd. P’ship, 162
F.E.R.C. ¶ 61,252, at P 34 (2018) (considering other (d)(1)
factors despite asserted good cause based on administrative
oversight). Reply Br. 21–22, 24. In these cases, the
Commission departed from its precedent in Tennessee Gas and
its progeny requiring that “good cause must be established
before the other factors in Rule 214(d) will be considered,”
Double E Pipeline, 173 F.E.R.C. ¶ 61,074, at P 25, by ignoring
whether movants demonstrated good cause for filing late, and
considering instead whether they met some of the other (d)(1)
factors — the same factors that Petitioner urged the
Commission to consider in moving to intervene. Mot. to
Intervene at 3. The Commission never explained why
Petitioner’s out-of-time motion to intervene should be treated
differently.
The inconsistency in the application of Rule 214 is no
news to the Commission. Former Commissioners disagree
about whether Tennessee Gas still applies and to whom. For
example, in Northern Natural, 175 F.E.R.C. ¶ 61,052 (2021),
predating Petitioner’s motion, the Commission granted a
motion to intervene filed seven months after the deadline
without addressing any good cause. Id. at 61,341. Then-
Chairman Glick “wr[o]te separately to highlight the extent to
which [the] order abandons the harsh approach to late
interventions in natural gas proceedings that the Commission
adopted in Tennessee Gas.” Id. at 61,342. Former
Commissioner Clements concurred on similar grounds. Id. at
61,344. Former Commissioner Danly dissented from the grant
20
of the motion, stating that “the Commission is still dependably
inconsistent in the application of its regulations, routinely
granting late interventions in natural gas rate, electric, and oil
proceedings without requiring a showing of good cause, while
demanding that good cause be shown in hydropower and
natural gas certificate proceedings.” Id. at 61,343. (The
Commission later distinguished Northern Natural because the
petitioners responded to a potentially large shift in
Commission-wide policy not apparent at the beginning of the
proceedings. Broadview Solar, LLC, 175 F.E.R.C. ¶ 61,228, at
P 9–10 (2021)). Nowhere in Northern Natural or other cases
cited by Petitioner does the Commission explain why it
allowed these exceptions in light of its strict intervention
precedent.
Moreover, decisions of the Commission’s administrative
law judges cited in Petitioner’s opening brief as well as
multiple decisions of the Commission post-dating the
Rehearing Order, although not alone persuasive, are illustrative
of the inconsistency in the Commission’s intervention practice
that apparently permeate multiple levels of its decision-
making. The Commission does not address the ALJ decisions
except by summarily stating that they do not “control[].”
Respondent’s Br. 30.
Instead, the Commission attempts to “distinguish” certain
cases adduced by Petitioner because they “involve[d] much
less egregious delay.” Respondent’s Br. 32. Perhaps, but the
Commission has not shown that it has adopted an “official
policy or practice regarding the length of time in between the
intervention deadline and the late intervention motion,” Reply
Br. 21, nor was the length of delay a stated reason for denying
Petitioner’s intervention. “[A]n agency’s action must be
upheld, if at all, on the basis articulated by the agency itself,”
Motor Vehicle Mfrs. Ass’n of the U.S., Inc. v. State Farm Mut.
Auto. Ins., 463 U.S. 29, 50 (1983). Here, the Commission
denied intervention because the “failure to establish good cause
21
is a sufficient condition to deny intervention and no other
factors [presumably including