ELR Citation: ELR 20319
No(s). s. 82-5203, -5326 (3d Cir. Jan 10, 1983)

The Third Circuit reverses the district court's decision and holds that the Environmental Protection Agency (EPA) acted arbitrarily and capriciously in requiring a ban on sewer hookups in floodplain areas as a condition to receiving a municipal sewage treatment grant. First, the court determines that it has jurisdiction even though the district court's orders were not final when the appeal was taken. It then concludes that neither the Federal Water Pollution Control Act, the National Environmental Policy Act, nor Executive Order No. 11988, which directs federal agencies to minimize floodplain development, clearly authorizes EPA to condition funding that in effect imposes land use controls and bans floodplain development. Without deciding whether EPA has authority to enforce the land use restrictions, the court holds the Agency's action arbitrary under the circumstances. The Agency failed to give sufficient consideration to the consistency requirements of §307 of the Coastal Zone Management Act (CZMA) and applicable regulations. The CZMA and regulations direct federal agencies to give priority to state policies in the state coastal plan. New Jersey's federally approved plan allows limited development in floodphlain areas. In addition, the court holds that EPA unreasonably rejected the sewerage authority's compromise plan, which proposed to tighten controls and was consistent with the state plan and the CZMA.

Counsel for Appellant
Robert V. Zener
Pepper, Hamilton & Schwartz
1777 F St. NW, Washington DC 20006-5279
(202) 842-8100

Norman Zlotnick
Bloom & Zlotnick
1125 Atlantic Ave., Atlantic City NJ 08401
(609) 348-4511

Counsel for Appellees
Rosanne Mayer, Donald W. Stever Jr., Jacques B. Gelin; Carol E. Dinkins, Ass't Attorney General
Land and Natural Resources Division
Department of Justice, Washington DC 20530
(202) 633-5409

Lee A. Dehihns
Office of Regional Counsel
Environmental Protection Agency, 1860 Lincoln St., Denver CO 80295
(303) 382-5320

James J. Seeley
Stanger & Seeley
200 W. Commerce St., Bridgeton NY 08302
(609) 451-3611

John V. Van Dalen, Deputy Attorney General
Richard J. Hughes Justice Complex, Trenton NJ 08625
(609) 292-4919

Counsel for Appellees-Intervenors
Norton F. Tennille Jr.
Arnold & Porter
1660 Lincoln St., Denver CO 80203
(303) 832-2900

Gerald E. Haughey
Brandt, Haughey, Penberthy & Lewis
4 Kings Highway E., Haddonfield NJ 08033
(609) 428-4333

Weis, J. joined by Becker and Van Dusen, JJ.