ELR Citation: ELR 20369
No(s). 73-1889 (4th Cir. May 8, 1974)

The U.S. Court of Appeals for the 4th Circuit, in its second opinion in Ely v. Velde, reverses the district court's holding that NEPA's requirements do not apply to a state medical center for prisoners once the state had indicated that it will not use any federal funds for construction of the center. The district court held that the state of Virginia's transferral of federal funds to other projects was not a mere bookeeping change designed to release for the project state funds which otherwise would not have been available. The appeals court, however, finds that allowing the state to avoid the dictates of NEPA and the National Historic Preservation Act while retaining federal funds initially allocated through the LEAA block grant system is a subversion and circumvention of Acts of Congress. The court's holding indicates that block grant funding is not free of federal conditions; state use of these federal funds in conditioned upon compliance with federal law. The court denies plaintiff's request for an injunction, stating that as of yet the medical center has not become an irrevocably federal project. The state may therefore proceed with its construction without NEPA compliance so long as it reimburses the federal government for the funds originally allocated for the center and used for other projects. For prior opinions in the case, see 1 ELR 20082, 1 ELR 20612, and 3 ELR 20764.

Counsel for Petitioners
Emmanuel Emroch
Emmanuel Emroch and Associates
Suite 1119, Central National Bank Building
Richmond, VA 23219

Counsel for Respondents
Vann H. Lefcoe Asst. Attorney General
911 E. Broad Street
Richmond, VA 23219