154
OCTOBER TERM, 1996
Syllabus
certiorari to the united states court of appeals for the ninth circuit
No. 95-813. Argued November 13, 1996—Decided March 19, 1997
The Endangered Species Act of 1973 (ESA) requires the Secretary of the Interior to specify animal species that are "threatened" or "endangered" and designate their "critical habitat," 16 U. S. C. § 1533, and requires federal agencies to ensure that any action they authorize, fund, or carry out is not likely to jeopardize a listed species or adversely modify its critical habitat, § 1536(a)(2). If an agency determines that a proposed action may adversely affect such a species, it must formally consult with the Fish and Wildlife Service, which must provide it with a written statement (the Biological Opinion) explaining how the proposed action will affect the species or its habitat. § 1536(b)(3)(A). If the Service concludes that such action will result in jeopardy or adverse habitat modification, § 1536(a)(2), the Biological Opinion must outline any "reasonable and prudent alternatives" that the Service believes will avoid that consequence, § 1536(b)(3)(A). If the Biological Opinion concludes that no jeopardy or adverse habitat modification will result, or if it offers reasonable and prudent alternatives, the Service must issue a written statement (known as the Incidental Take Statement) specifying the terms and conditions under which an agency may take the species. § 1536(b)(4). After the Bureau of Reclamation notified the Service that the operation of the Klamath Irrigation Project might affect two endangered species of fish, the Service issued a Biological Opinion, concluding that the proposed long-term operation of the project was likely to jeopardize the species and identifying as a reasonable and prudent alternative the maintenance of minimum water levels on certain reservoirs. The Bureau notified the Service that it would operate the project in compliance with the Biological Opinion. Petitioners, irrigation districts receiving project water and operators of ranches in those districts, filed this action against respondents, the Service's director and regional directors and the Secretary, claiming that the jeopardy determination and imposition of minimum water levels violated § 1536, and constituted an implicit critical habitat determination for the species in violation of § 1533(b)(2)'s requirement that the designation's economic impact be considered. They also claimed that the actions violated the Administrative Procedure Act (APA), which prohibits agency actions that are arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with
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