ELR Citation: ELR 20921
No(s). 249-88L (Cl. Ct. Feb 7, 1991)

In a claim for money damages under the Tucker Act, the court holds that the Environmental Protection Agency (EPA) acted within its discretion under the Federal Water Pollution Control Act (FWPCA) in withholding additional funding from a municipality for the acquisition of an existing wastewater treatment facility. The court first holds that it has jurisdiction, because the Claims Court historically has asserted jurisdiction under the Tucker Act over cases involving federal grant funds. Further, the court finds that the plaintiff maintains no continuing grant relationship with EPA and seeks monetary compensation only for past injury. The court next holds that the municipality's purchase of the wastewater treatment facility does not satisfy EPA's regulatory criteria for allowable wastewater treatment funding under the FWPCA, because the facility does not provide new pollution control benefits. Congress provided EPA with considerable latitude to allocate funds in a manner that will achieve the most progress in water quality at the least cost. EPA reasonably concluded that the purchase of treatment facilities that add nothing to overall wastewater treatment is not eligible for grant funding. Deferring to EPA's interpretation of its regulations on funding eligibility, the court holds that EPA properly applied those regulations to the municipality's acquisition of the treatment facility. Finally, the court holds that, although the state required the municipality to acquire the facility as a condition to funding, it did so to regionalize wastewater treatment systems, not to improve local pollution control.

Counsel for Plaintiff
Mark W. Comley
Brydon, Swearengen & England
Hammond Bldg., 312 E. Capitol Ave., P.O. Box 456, Jefferson City MO 65102
(314) 635-7166

Counsel for Defendant
Jon M. Lipshultz
U.S. Department of Justice, Washington DC 20530
(202) 514-2000