United States Court of Appeals
FOR THE DISTRICT OF COLUMBIA CIRCUIT
Filed July 3, 2001
No. 98-1497
State of Michigan,
Michigan Department of Environmental Quality and
State of West Virginia, Division of
Environmental Protection,
Petitioners
v.
U.S. Environmental Protection Agency,
Respondent
New England Council, Inc., et al.,
Intervenors
On Petitioner's Motion for Attorneys' Fees
---------
Before Williams, Sentelle, and Rogers, Circuit Judges.
Opinion for the Court filed Per Curiam.
Per Curiam: The Interstate Natural Gas Association of
America (hereinafter "INGAA" or "petitioner") moves for an
award of attorneys' fees in the amount of $107,551.95 incurred
in connection with its challenge to an Environmental Protec-
tion Agency ("EPA") regulation. See Michigan v. EPA, 213
F.3d 663 (D.C. Cir. 2000). Briefs with accompanying billing
records have been submitted by the petitioner, and the EPA
has filed its opposition. After examination of the billing
records and consideration of the EPA's objections, we find
that INGAA is entitled to an award of attorneys' fees but not
for the full amount sought. We conclude, for the reasons
stated below, that INGAA is entitled to an award in the
amount of $65,947.24.
I. BACKGROUND
In the underlying litigation, INGAA, a trade association
representing major interstate natural gas transmission com-
panies in the United States, and other petitioners challenged
promulgation of the EPA's "NOx SIP Call" final rule which
mandated that 22 states and the District of Columbia revise
their state implementation plans ("SIPs") to reduce emission
of nitrogen oxides ("NOx"). The revisions were to be based
upon state-specific NOx emissions "budgets" established by
the EPA. For its part, INGAA contended that the EPA, in
its determination of the state NOx budgets, did not provide
adequate notice and opportunity for comment on the control
level assumed for large stationary internal combustion ("IC")
engines (hereinafter referred to as the "control level" issue).
Additionally, INGAA challenged the EPA's definition of large
IC engines (hereinafter referred to as the "cut-off" issue).
We agreed with INGAA on the "control level" issue and
remanded it to the EPA for further consideration, but we
upheld the EPA on the "cut-off" issue. Id. at 693-94.
II. ANALYSIS
INGAA now seeks an award of attorneys' fees pursuant to
Section 307(f) of the Clean Air Act, which provides:
In any judicial proceeding under this section, the court
may award costs of litigation (including reasonable attor-
ney and expert witness fees) whenever it determines that
such award is appropriate.
42 U.S.C. s 7607(f). In our discussion below, we consider
INGAA's fee petition and make certain deductions from it in
light of the "reasonable" and "appropriate" standards set
forth in the statute.
Fees under Section 307(f). The EPA argues that INGAA
is not entitled to attorneys' fees in this matter because it did
not achieve a sufficient degree of success in Michigan. See
Ruckelshaus v. Sierra Club, 463 U.S. 680, 693-94 (1983); see
also Sierra Club v. EPA, 769 F.2d 796, 800 (D.C. Cir. 1985).
Of the two challenges made by INGAA to the EPA's NOx
SIP Call, the EPA argues that one, the IC engine "cut-off"
issue, was completely rejected by the Court, while the other,
the IC engine "control level" issue, was remanded, without
being vacated, for further consideration by the EPA and was
therefore a purely procedural victory insufficient to justify an
award of fees. The EPA further argues that even if it were
to be assumed that INGAA is eligible to receive a fee award
on the "control level" issue, since it lost on the "cut-off" issue
then any fee award should be reduced by 50% to reflect that
loss.
In reply, INGAA claims that fees should be awarded not
only for successful substantive challenges to rules, but also
for valid procedural claims, because if this were not the case
then "fees would become dependent on the essentially fortui-
tous presence or absence of a valid procedural claim" and "[i]t
would be counterproductive ... to deny attorneys' fees for
successful litigation to enforce" procedural regularity. Brief
of Petitioner at 5 (emphasis in original). INGAA further
claims that Kennecott Corp. v EPA, 804 F.2d 763 (D.C. Cir.
1986), governs the outcome here because the facts in that
case "completely parallel" the one before us. In Kennecott,
according to INGAA, fees and costs were awarded to Kenne-
cott in litigation establishing that the EPA did not provide
adequate notice and comment because certain data were not
provided during the notice and comment period.
The EPA argues in turn that the petitioner's reliance on
Kennecott is misplaced because in that case, unlike here, the
Court not only remanded the matter but also vacated the
challenged portion of the regulation. Instead, the EPA would
have us rely on Sierra Club v. EPA and Environmental
Defense Fund v. Reilly, 1 F.3d 1254 (D.C. Cir. 1993). In
Sierra Club, fees were denied for a remanded issue where no
substantive relief was granted and the agency could possibly
justify its position with no reformulation of the challenged
rule. 769 F.2d at 806. And the EPA relies on the Court's
statement in Environmental Defense Fund that "a plaintiff
that has obtained a remand for further proceedings is not at
that point a 'prevailing party' for the purpose of collecting its
attorney's fee." 1 F.3d at 1257.
We note that the Court in Environmental Defense Fund,
after making the statement relied on by the EPA quoted
above, went on to explain that attorneys' fees may be award-
ed only if the plaintiff ultimately succeeds on the merits and
that the rationale behind this rule was to avoid awarding fees
for "corrective efforts that yield no real world benefit." Id. at
1257 (internal citation and quotation omitted). Unlike Sierra
Club, the underlying litigation in Environmental Defense
Fund, as here, concerned a lack of public notice and com-
ment. Specifically, the merits panel there vacated an EPA
rule for want of notice and comment before promulgation.
Although the EPA opposed an award of attorneys' fees in
that case because it claimed, as it does here, that the petition-
er's victory was "purely procedural," the Court stated that
even though the petitioner was not assured of being able to
change the EPA's proposed regulation, having the chance to
comment on the proposal was "in itself something of value in
the real world." Id. So too here. By obtaining the right to
notice and comment on the IC engine "control level" issue,
INGAA has achieved a sufficient degree of success on the
merits to entitle it to an award of attorneys' fees.
We further note that this Court has previously determined
that a party is not entitled to attorneys' fees under Section
307(f) for time spent on an issue on which it was wholly
unsuccessful. See, e.g., Sierra Club, 769 F.2d at 802. IN-
GAA is therefore not entitled to an award of attorneys' fees
on the IC engine "cut-off" issue. INGAA does not dispute
this and calls our attention to the deduction it has already
made of 23% of the time spent on its merits and reply briefs
($6,199.42), which it argues constitutes the amount of time
spent on the briefs on the "cut-off" issue. We find this
amount to be a reasonable deduction and will make no further
deductions concerning this issue.
Fees for administrative proceedings. The government
claims that many of the attorneys' fees sought by INGAA
were incurred in connection with its administrative petition
filed with the EPA, and therefore fall outside the award
parameters of Section 307(f). We agree. In Ruckelshaus v.
Sierra Club, which also concerned a request for attorneys'
fees filed pursuant to Section 307(f), the Court reminded us
that "[e]xcept to the extent it has waived its immunity, the
Government is immune from claims for attorney's fees.
Waivers of immunity must be construed strictly in favor of
the sovereign ... and not enlarge[d] ... beyond what the
language requires." 463 U.S. at 685 (internal quotations and
citations omitted). As the language of Section 307(f) requires
awards only for "costs of litigation," then fees incurred in the
preparation of an administrative petition are excluded. See
Sierra Club v. Gorsuch, 672 F.2d 33, 42 (D.C. Cir. 1982), rev'd
on other grounds, Ruckelshaus v. Sierra Club, supra (peti-
tioners seeking fees under Section 307(f) "not entitled to an
award of attorneys' fees for their participation in the adminis-
trative proceedings preceding their appeal"). We will there-
fore make deductions for those entries referencing "petition."
As many of these entries are grouped with other entries for
the same date, for purposes of making the deductions we will
assume that each entry for that date took up an equal amount
of time. We will thus divide the number of entries for each
date into the amount billed, and deduct that amount from the
total amount petitioned. See In re Pierce (Abrams Fee
Application), 190 F.3d 586, 594 (D.C. Cir., Spec. Div., 1999).
The specific deductions are listed below.
Number of Entries Amount Billed Amount
Date Entry re "Petition" for Date for Date Deducted
1/21/99 "work on petition
for reconsidera-
tion" 2 $ 609.50 $ 304.75
1/22/99 "finalize draft peti-
tion for reconsid-
eration; tele-
phone conference
with INGAA re-
garding format
and petition is-
sues" 4 $ 627.00 $ 313.50
1/26/99 "telephone confer-
ences with S.
Schnee regarding
petition issues, L.
Beal regarding
petition and for-
mat issues" 4 $1,006.50 $ 503.25
2/11/99 "Write petition for
Reconsideration" 1 $1,404.50 $ 1,404.50
2/11/99 "Research and
draft revised pe-
tition" 2 $1,287.00 $ 643.50
2/12/99 "Write Petition for
Reconsideration" 2 $1,643.00 $ 812.50
2/15/99 "Draft petition" 3 $1,138.50 $ 379.50
2/16/99 "Draft petition
... ; research
same" 4 $ 610.50 $ 305.25
2/17/99 "Edit petition" 2 $ 330.00 $ 165.00
2/18/99 "Draft petition" 2 $ 742.00 $ 371.00
2/18/99 "Draft ... peti-
tion ... ; re-
search regarding
same" 4 $1,468.50 $ 734.25
2/19/99 "Edit and send out
... petition" 3 $1,457.50 $ 485.83
2/19/99 "Edit and revise
... petition" 2 $1,006.50 $ 503.25
2/24/99 "Work on ... pe-
tition" 2 $1,563.50 $ 781.75
2/25/99 "Finish brief peti-
tion; review and
edit" 3 $1,643.00 $ 1,095.33
2/25/99 "Revise petition" 4 $1,122.00 $ 280.50
2/26/99 "Revise petition" 3 $ 990.00 $ 330.00
2/28/99 "Revise petition" 5 $1,683.00 $ 336.60
3/1/99 "Review comments
on petition" 2 $ 148.50 $ 74.25
3/2/99 "Revise ... peti-
tion" 3 $ 841.50 $ 280.50
3/3/99 "Final revised ...
petition" 3 $ 214.50 $ 71.50
3/5/99 "revise petition" 3 $1,192.50 $ 397.50
3/5/99 "Research APA pe-
titions" 1 $ 49.50 $ 49.50
3/6/99 "Research APA pe-
titions" 1 $ 396.00 $ 396.00
3/8/99 "Revise petition for
reconsideration
to comply with
APA" 2 $ 412.50 $ 206.25
3/15/99 "Finalize petition
for reconsidera-
tion; review ed-
its from INGAA
members" 2 $ 462.00 $ 462.00
3/16/99 "Handle petition
for generation
and filing" 1 $ 462.00 $ 462.00
Total Deduction: $12,149.76
Fees for client service matters. The EPA objects to ap-
proximately 20 hours of attorney time for certain entries that
do not directly relate to litigation, i.e., entries having to do
with retainer agreements, conflicts checks, strategy memos,
and client updates. INGAA replies that time spent on litiga-
tion strategy is indistinguishable from litigation itself and that
time spent on keeping a client informed of the status of a
matter, and similar tasks, are necessary and directly related
to the litigation. We find INGAA's argument to be reason-
able and will make no deductions for these entries.
Fees for briefs. The government challenges approximately
110 hours that INGAA spent on researching and writing its
briefs. These hours are excessive, argues the government,
particularly considering the approximately 125 hours spent on
the preparation of INGAA's administrative petition which
presented essentially identical arguments. We agree that
over two and one-half weeks of attorney time spent on briefs
in this matter appears to be unduly high, and we will there-
fore make a downward adjustment for these fees.
According to the government, no more than 40 hours for
the opening brief and 20 hours for the reply brief should be
allowed. As we have already stated, many if not most of the
billing descriptions submitted in this matter are scanty, and
therefore it is difficult for us to make precise estimates of
time spent on individual tasks. It would appear, however,
that of the approximately 110 hours spent on the briefs, 90
were spent on the opening brief and 20 on the reply brief.
As 20 hours of reply brief time appears to be reasonable, we
will make no adjustment to it. We will, however, reduce by
one-half the 90 hours spent on the opening brief. See Ameri-
can Petroleum Inst. v. EPA, 72 F.3d 907, 917 (D.C. Cir. 1996)
(excessive time spent on brief reduced by one-half). In
calculating the amount to be deducted, we will take the
average of the billing rates of the two attorneys who worked
on this matter and multiply this number by 45, producing a
total deduction of $9,675.00.
Inadequate documentation. The government argues that
we should disallow much of INGAA's fee claim because the
work descriptions in its billing entries are vague and contain
no useful breakdown of professional time by task. A review
of the billings finds that there are indeed numerous deficient
entries, such as those listed only as "conference calls" with no
indication of who these calls were with or what they con-
cerned. We have stated previously that "[s]uch description
fails to provide the court with any basis to determine with a
high degree of certainty that the hours billed were reason-
able," and thus cannot be charged to the taxpayers. In re
Donovan, 877 F.2d 982, 995 (D.C. Cir. 1989) (quotation marks
omitted); see also American Petroleum Institute, 72 F.3d at
915. Additionally, there are several entries for conference
calls with individuals referenced as "L. Beal," "P. Torangeau,"
"D. Malzahn," or "Perciasepe," who are not further identified
in the petition. As such, the reasonableness of these calls
also cannot be determined. In re Donovan, 877 F.2d at 995.
We therefore must deduct the full amount of all these entries
from the fee request. We will make specific deductions using
the process utilized for making deductions for "petition"
references, supra.
Wholly Deficient Number of Entries Amount Billed Amount
Date Entry for Date for Date Deducted
1/20/99 "Conference call" 4 $1,616.50 $ 404.12
1/21/99 "Telephone confer-
ences" 2 $ 609.50 $ 304.75
1/25/99 "Prepare for and
take part in con-
ference call" 1 $ 450.50 $ 450.50
2/4/99 "Prepare for and
take part in con-
ference call" 1 $ 371.00 $ 371.00
2/5/99 "Prepare for and
take part in con-
ference call" 1 $ 344.50 $ 344.50
2/26/99 "review emails" 2 $ 79.50 $ 39.75
3/2/99 "write emails" 2 $ 265.00 $ 132.50
3/5/99 "Two conference
calls" 3 $1,192.50 $ 397.50
3/8/99 "review and com-
ment on fax;
send email" 3 $ 238.50 $ 159.00
3/16/99 "Conference call" 4 $ 927.50 $ 231.87
3/23/99 "conference call" 3 $1,484.00 $ 494.66
4/13/99 "Telephone confer-
ence with L.
Beal" 1 $ 79.50 $ 79.50
4/15/99 "Finish and send
out draft letter to
Perciasepe" 1 $ 291.50 $ 291.50
4/16/99 "email L. Beal" 3 $ 185.50 $ 61.83
4/20/99 "conference call;
review Percia-
sepe letter" 4 $ 556.50 $ 278.25
4/21/99 "Telephone confer-
ence with P. To-
rangeau" 3 $ 556.50 $ 185.50
4/22/99 "telephone confer-
ence with P.
Torangeau" 2 $ 556.50 $ 278.25
7/15/99 "Telephone confer-
ence with L.
Beal" 1 $ 79.50 $ 79.50
10/22/99 "Prepare for, take
part in confer-
ence call" 1 $ 185.50 $ 185.50
10/28/99 "write email" 3 $1,139.50 $ 379.83
11/8/99 "prepare for and
take part in con-
ference call" 2 $1,192.50 $ 596.25
11/10/99 "Telephone confer-
ence with ... D.
Malzahn" 2 $ 132.50 $ 66.25
11/14/99 "Prepare for con-
ference call" 1 $ 79.50 $ 79.50
11/15/99 "Conference call" 2 $ 265.00 $ 132.50
2/7/00 "Review and re-
spond to emails" 1 $ 110.00 $ 110.00
2/15/00 "Prepare for and
take part in con-
ference call" 2 $ 907.50 $ 453.75
2/28/00 "telephone confer-
ence with L.
Beal" 3 $ 330.00 $ 110.00
2/29/00 "Take part in 2
conference calls" 1 $ 495.00 $ 495.00
3/17/99 "Conference call" 4 $1,696.00 $ 424.00
3/19/99 "two conference
calls with C. L.
Beal" 2 $ 901.00 $ 450.50
Total Deduction: $8,067.56
Notwithstanding the deduction of these wholly deficient
entries, the billing documents are replete with instances of
inadequately detailed descriptions.1 There are, in particular,
__________
1 See, for example, time entries for 1/13/99 ("Telephone confer-
ence with client; conference with J. Knight"); 1/14/99 ("conference
with J. Knight; review record"); 1/15/99 ("Review materials; con-
ference with J. Knight; telephone conference with A. Field");
1/17/99 ("Review record; meet with J. Knight"); 1/18/99 ("Review
of record documents; meet with W. Pedersen"); 1/19/99 ("fax to J.
Dreskin"); 2/8/99 ("telephone conference with J. Dreskin"); 2/9/99
("telephone conference with P. Lacey and J. Dreskin"); 2/12/99
("confer with J. Knight"); 2/18/99 ("confer with J. Knight"); 2/23/99
("Review record"); 2/23/99 ("Record review"); 2/25/99 ("confer with
J. Knight"); 2/26/99 ("Confer with J. Knight"); 2/28/99 ("Confer
with J. Knight"); 3/4/99 ("telephone conference with A. Field of
Hunton & Williams"); 3/3/99 ("conference with J. Knight");
11/17/99 ("Email to J. Knight regarding conference call"); 11/18/99
numerous entries concerning meetings and conferences that,
although they include information concerning the identities of
the individuals involved, are nevertheless devoid of any de-
scriptive rationale for their occurrence. Therefore, as we
have done in similar circumstances in the past, after all other
deductions have been taken we will make a further deduction
of 10% of the remaining billings. See Abrams Fee Applica-
tion, 190 F.3d at 594; In re Meese, 907 F.2d 1192, 1204 (D.C.
Cir., Spec. Div., 1990) (per curiam).
Fees for clerical tasks. The EPA claims that certain of
INGAA's billing entries are for purely clerical tasks such as
copying and pick up or delivery of documents, and are
therefore not reimbursable because they ought to be consid-
ered part of normal administrative overhead. We agree that
four of INGAA's entries fall into this category. On January
28, 1999, Legal Assistant Lisa Edouard billed one and one-
half hours to "[f]ile documents at US Court of Appeals for J.
Knight." This is a task routinely performed by other less
expensive personnel, such as messengers, and cannot be
charged to the public fisc. On March 24, 1999, Edouard
billed one-half hour to "[r]eproduce and fed ex documents to
EPA personnel for J. Knight." She billed two hours on
October 28, 1999, to "[o]btain" documents from the EPA.
Likewise, on November 4, 1999, she entered a half-hour to
"obtain" a Federal Register notice. Again, such tasks could
be undertaken by clerical, not legal, personnel, and we will
deduct the full amount ($427.50) of these entries. See Ameri-
can Petroleum Inst., 72 F.3d at 913; In re Meese, 907 F.2d at
1202-03.
Fees for staff overtime. The government objects that fees in
the amount of $679.20 for "staff overtime" should be disal-
lowed because such fees should more properly be considered
as part of normal overhead. We agree, and will deduct this
amount from the fee request. See In re North (Bush Fee
__________
("Conference with J. Knight"); 4/2/01 ("Conference with J.
Knight"); 4/8/01 ("conference with J. Knight").
Application), 59 F.3d 184, 195 (D.C. Cir., Spec.Div., 1995)
(per curiam).
Fees for document production. The government objects to
INGAA's claim for $4,261.75 in "document production" costs
because no further explanation for this category is given in
the billing entries. In the past we have made deductions for
comparable fees because of a lack of supporting documenta-
tion, and we will do so here, reducing the amount by $2,000.
See In re North (Gregg Fee Application), 57 F.3d 1115, 1117
(D.C. Cir., Spec. Div., 1995); In re Meese, 907 F.2d at 1204.
Likewise, INGAA claims a total of $2,114.49 for computer
research, which also lacks any supporting documentation, and
we therefore will reduce this amount by $1,000. Id.
Fees for travel and long-distance expenses. The govern-
ment challenges INGAA's inclusion of $996.03 in travel and
$396.86 in long-distance expenses, arguing that it is unclear
how such fees could arise when INGAA and the EPA, as well
as their attorneys, are all located in Washington, D.C. In
reply, INGAA informs us that most of these fees were
incurred during the settlement negotiations, which included a
trip to North Carolina where the EPA's technical staff is
located. We find this explanation reasonable and will make
no deductions for these items.
Fees for local transportation. INGAA claims $278.22 for
"local transportation," with no explanation as to why this
transportation was needed. As we have stated in the past,
we cannot assess the reasonableness of this item when it is
otherwise not explained. In re North (Shultz Fee Applica-
tion), 8 F.3d 847, 852-53 (D.C. Cir., Spec. Div., 1993) (per
curiam). We will therefore make a reduction for the full
amount.
Fees for fees. In its fee petition, INGAA includes 43.5
hours of attorney time for work done in connection with its
fee petition, as well as 29.7 hours for time spent on its reply
brief. The government, although not disputing that "fees for
fees" are recoverable under the CAA, see, e.g., American
Petroleum Inst., 72 F.3d at 918, argues that the amount
prayed for is excessive because, of the 43.5 fee petition hours
billed, only nine were spent on preparing the petition per se
while the remaining hours were spent on preceding unsuc-
cessful fee negotiations with the EPA which should not be
reimbursable. INGAA replies that the time spent preparing
for the fee negotiation was also necessary to prepare the
petition after the negotiations failed, and that much of the
time spent negotiating was at the request of the government.
We find INGAA's argument to be persuasive and note that
the time requested is comparable to the amount of fee
petition time we have allowed elsewhere. Id. We will there-
fore not make any deductions from the requested amount.
Miscellaneous fees. The EPA objects to approximately 40
total hours of attorney time spent on various items that
according to the EPA "do not appear to be associated with
INGAA's claims in this litigation." First, the EPA argues
that fees for a stay motion that was never filed should not be
awarded. INGAA counters that the motion "was an integral
part of INGAA's litigation settlement strategy because it
increased INGAA's leverage with the agency," and that it was
never filed because the state petitioners' stay motion was
granted beforehand. The EPA also objects to time spent on
an economic incentives memo whose relationship to the case
was not explained. INGAA retorts that the memo concerned
an analysis of market-based approaches to control of IC
engines, and that such approaches were discussed during
settlement talks. Finally, the EPA takes issue with the time
spent on research on ripeness, standing, and delegation is-
sues, none of which were ever raised. INGAA replies that its
strategy required it to analyze not only the issues that were
eventually litigated but also issues that might be litigated,
such as a possible government claim that INGAA did not
have standing or that the case was not ripe since the SIP call
did not directly require states to regulate IC engines. For
each of these items we find the petitioner's response to be
reasonable and no deductions will be made.
CONCLUSION
For the reasons set forth above, it is ordered that petition-
er be awarded $65,947.24 in reasonable attorneys' fees it
incurred in connection with this Court's decision in Michigan
and this fee petition. The computation is set forth in the
appendix.
Appendix
Total Fee Request $107,551.95
Deductions in Opinion
1. Fees for administrative proceedings 12,149.76
2. Fees for briefs 9,675.00
3. Wholly inadequate documentation 8,067.56
4. Fees for clerical tasks 427.50
5. Fees for staff overtime 679.20
6. Fees for document production 2,000.00
7. Fees for computer research 1,000.00
8. Fees for local transportation 278.22
________
Total of specific deductions $ 34,277.24
Request minus specific deductions $ 73,274.71
9. 10% deduction for insufficient descriptions $ 7327.47
TOTAL AWARD $ 65,947.24