City of New York v. Train

494 F.2d 1033, 161 U.S. App. D.C. 114, 6 ERC 1177, 4 Envtl. L. Rep. (Envtl. Law Inst.) 20188, 6 ERC (BNA) 1177, 1974 U.S. App. LEXIS 10440
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 23, 1974
DocketNo. 73-1705
StatusPublished
Cited by22 cases

This text of 494 F.2d 1033 (City of New York v. Train) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of New York v. Train, 494 F.2d 1033, 161 U.S. App. D.C. 114, 6 ERC 1177, 4 Envtl. L. Rep. (Envtl. Law Inst.) 20188, 6 ERC (BNA) 1177, 1974 U.S. App. LEXIS 10440 (D.C. Cir. 1974).

Opinion

TAMM, Circuit Judge:

This suit was brought as a class action by the City of New York (hereafter “City”) on behalf of itself and all other similarly situated municipalities within the State of New York. The defendant below was Mr. Russell B. Train, Admin[116]*116istrator of the Environmental Protection Agency1 (hereafter, “The Administrator”). The City of Detroit, Michigan, was granted leave to intervene as party plaintiff. On May 8, 1973, the United States District Court for the District of Columbia granted City’s motions for summary judgment and to maintain this lawsuit as a class action, concurrently denying the Administrator’s motion to dismiss. The Administrator brings this appeal from the trial court’s ruling, and, for the reasons stated infra, we affirm.

I. BACKGROUND

This is but one of a number of cases 2 presently pending across the country concerning allocation of funds under the Federal Water Pollution Act Amendments of 1972 3 (hereafter, “Act”). In [117]*117order to place the instant dispute in its proper context it is necessary to understand the legislative history of the Act. The Act revised the procedures for funding federal aid to local governments for the purpose of the construction of sewage treatment plants. Prior to the Act’s passage, these expenditures were first authorized and then specifically funded by the normal Congressional appropriation process. Due to the nature of this process, local governmental recipients could not ascertain the exact amount they would receive until after the formal appropriation. As a result, local governments were hesitant to enter construction contracts with only a hope that federal monies would be ultimately passed to them.4

The Act was passed to insure that ultimate grantees could rely in advance on [118]*118the amounts available. Section 101(a) declares that to clean the nation’s waters “it is the national policy that Federal financial assistance be provided to construct publicly owned waste treatment works.” To this end, the Act created a funding mechanism known as “contract authority”.5 The technical operation of the sections of the Act relating to this “contract authority” spending is at the heart of this dispute and a thorough understanding of the mechanism is, therefore, imperative.

There are six distinct steps involved in funding under the Act: (1) Authorization by Congress to appropriate funds (§ 207); (2) “allotment” of these authorized sums among the various states, pursuant to formula (§ 205); (3) review by the Administrator of project proposals submitted by a particular municipality (§§ 203, 201(g)(2) and 204); (4) “obligation” by the Administrator of the federal share of an approved project (§§ 203 and 201(g) (1)); (5) appropriation by Congress of funds to pay obligated contracts as they fall due; and (6) disbursement of the funds (§ 203(b) and (c)).

After the Act was enacted into law, over Presidential veto,6 the President wrote to the Administrator, directing him to allot “$2 billion of the amount authorized for the fiscal year 1973, and no more than $3 billion of the amount authorized for the fiscal year 1974.”7 The Administrator followed orders and allocated a total of $5 billion8 for both fiscal years. It is this final action by the Administrator which has been labeled “Presidential impoundment” 9 and which was successfully challenged in the trial court by plaintiff-appellee City.

[119]*119II. THE TRIAL COURT’S RULING

Plaintiff-appellee City10 basically argued below that §§ 205(a) and 207 of the Act, read together, required the Administrator to allot among the states the sums of $5 billion and $6 billion in fiscal years 1973 and 1974 respectively. Once allotted, these amounts would then be available for obligation under the Act. By the allotment of only $5 billion total for fiscal years 1973 and 1974, it is argued that the Administrator violated the statute.

The Administrator, defendant-appellant, made several arguments in the trial court. He argued that (1) the trial court lacked jurisdiction, the suit being barred by the doctrine of Sovereign Immunity; and (2) that the claim failed to present a justiciable case or controversy because (a) it was “hypothetical and premature” and (b) it stated a “political question” thus beyond the jurisdiction of the court. The trial court found against the Administrator on all these arguments,11 but appellant brings before this court only two issues: (1) whether Sovereign Immunity bars this suit; (2) whether §§ 205(a) and 207 of the Act confer discretion on the Administrator to determine the sum to be allotted under the Act.

III. SOVEREIGN IMMUNITY

It is our opinion that the trial court was correct in holding that City’s suit is not barred by the principle of sovereign immunity. Counsel for the Administrator conceded at oral argument that the law of this circuit, Scanwell Laboratories, Inc. v. Shaffer, 137 U.S.App.D.C. 371, 424 F.2d 859, 873 (1970); Constructores Civiles de Centroamerica v. Hannah, 148 U.S.App.D.C. 159, 459 F.2d 1183, 1191 (1972), permits the maintenance of this suit with the Administrator as defendant.12 In view of this con[120]*120cession, we need do no more than state that we hold the suit is not barred. We agree with the reasoning of the trial court and here adopt the opinion below to the extent that it treats the Sovereign Immunity question.13

IV. THE MEANING OF §§ 205(a) AND 207

We now turn to the analysis which is central to resolution of the matter sub judice, i. e. the meaning of §§ 205(a) and 207 of the Act which are reproduced in the margin supra. Appellee-City relies upon the phrase “shall be allotted” in § 205(a), arguing that by the use of “shall”, rather than a word plainly conferring greater discretion (e. g. “may”), Congress intended that allotment under the Act be mandatory. The Administrator, on the other hand, asserts that changes in these sections of the Act, prior to its enactment, show a legislative intent to confer discretion upon the Administrator. H.R. 11896, the bill from which §§ 205 and 207 ultimately were derived, was amended in conference. The phrase “not to exceed” was inserted before each specified sum in § 207 and the word “all” was deleted from before the phrase “sums authorized to be appropriated” in § 205(a). Appellant argues that these changes indicate that Congress intended to give the Administrator absolute discretion over whether and how much to allot under the Act.

A. The Overall Intent of the Act

Initially, it is to be noted that a “plain meaning” analysis will not suffice here. As the Administrator admits “there is no happy marriage between the provisions of the statute . . . .”14

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494 F.2d 1033, 161 U.S. App. D.C. 114, 6 ERC 1177, 4 Envtl. L. Rep. (Envtl. Law Inst.) 20188, 6 ERC (BNA) 1177, 1974 U.S. App. LEXIS 10440, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-new-york-v-train-cadc-1974.