ELR Citation: ELR 20445
No(s). 2:96cv1204 (E.D. Va. Nov 26, 1997)

A district court holds that civil penalties paid under the Federal Water Pollution Control Act (FWPCA) in actions brought by the government must be paid to the U.S. Treasury. In an earlier proceeding, the court ordered $12.6 million in civil penalties against defendants for FWPCA violations. The court first holds that a penalty, which is imposed pursuant to a federal statute, in a suit brought by the federal government constitutes public money. As such, it must be deposited with the Treasury in accordance with the Miscellaneous Receipts Act, unless otherwise specified by Congress. The court next holds that under current law, once a penalty has been assessed by the court, the penalty must be paid into the Treasury. Absent a change in law or further direction from the court of appeals, the government cannot legally direct money to local environmental projects.

Counsel for Plaintiff
Susan L. Watt, Ass't U.S. Attorney
U.S. Attorney's Office
101 W. Main St., Ste. 8000, Norfolk VA 23510
(757) 441-6331

Counsel for Defendants
Anthony F. Troy
Mays & Valentine
NationsBank Center
1111 E. Main St., Richmond VA 23208
(804) 697-1200