National Ass'n of Regional Councils v. Costle

564 F.2d 583, 184 U.S. App. D.C. 98, 10 ERC 1633
CourtCourt of Appeals for the D.C. Circuit
DecidedSeptember 8, 1977
DocketNo. 76-1970
StatusPublished
Cited by20 cases

This text of 564 F.2d 583 (National Ass'n of Regional Councils v. Costle) 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
National Ass'n of Regional Councils v. Costle, 564 F.2d 583, 184 U.S. App. D.C. 98, 10 ERC 1633 (D.C. Cir. 1977).

Opinion

Opinion for the court filed by TAMM, Circuit Judge.

TAMM, Circuit Judge:

The Administrator of the Environmental Protection Agency (EPA) has appealed from a judgment of the United States District Court for the District of Columbia which orders that the unobligated balance of EPA budget authority provided by subsection 208(f)(3) of the Federal Water Pollution Control Act Amendments of 1972 (hereinafter 1972 FWPCA Amendments) for fiscal years 1973 and 1974 should remain available until September 30,1977, and that those funds should be used to finance 100 rather than 75 percent of the reasonable cost of section 208 planning agencies. We hold that the 1973 and 1974 subsection 208(f)(3) budget authority lapsed before this suit was filed and that the district court had no power to revive it. We therefore reverse that part of the court’s order. We agree that the court can and should have suspended the effective date of the provision in subsection 208(f)(2) lowering the proportion of federal funding from 100 to 75 percent. Since the court’s order as it now stands, however, provides that the 100 percent financing should come from the lapsed 1973 and 1974 contract authority rather than current or future appropriations by Congress, we remand this case for modifications of that part of the district court order.

I. BACKGROUND

As part of a comprehensive nationwide attack on the problems of water pollution, the 1972 FWPCA Amendments include an action-forcing provision, section 208, designed to encourage and facilitate the development of area-wide waste treatment management plans. Subsection 208(a) outlines a statutory timetable for the designation of local planning agencies responsible for the actual planning to be funded by federal grants. The Administrator of the Environmental Protection Agency was directed to publish guidelines for the identification of areas with substantial water quality control problems within ninety days of enactment of the Act. Within sixty days of the publication of those guidelines, the Governors of the States, or the chief local elected officials if a Governor fails to act, were authorized to identify areas with substantial water quality control problems and within an additional 120 days to define the boundaries of those areas and designate a single organization for each area capable of developing an effective area-wide waste treatment management plan. For any area which is not assigned to a planning agency by this designation process, the Act provides that the States shall act as the planning agency. To finance these planning agencies, subsection 208(f) provides that the Administrator shall make grants to them for the reasonable costs of developing and operating the planning process required by the Act.

The 1972 FWPCA Amendments became law on October 18, 1972, and the following schedule indicates the latest possible date for the designation of planning agencies to whom planning grants could be made if each of its specified time limits were met:

January 10,1973: last day for issuance of guidelines by EPA
March 11,1973: last day for identification of areas with substantial water quality control problems by Governors
July 9,1973: last day for designation of boundaries of identified areas and responsible planning agency-

Actual implementation of section 208 has fallen short of this statutory schedule. The EPA did not begin to promulgate any guidelines for the designation of planning agencies for areas with substantial water quality control problems until September 14, 1973, more than nine months after the statutory deadline, and these guidelines were declared invalid for inadequately im[101]*101plementing the requirements of the Act.1 Revised regulations were not issued until November 28, 1975.2 Only approximately $13 million of the $150 million in contract authority authorized for 100 percent financing of section 208 planning agencies during fiscal years 1973 and 1974 has actually been obligated.3 Nevertheless, EPA has taken the position that the expiration of those fiscal years, on June 30, 1973, and June 30, 1974, respectively,4 deprives it of any authority to obligate those funds and has indicated its intention to adhere to the 75 percent limitation of subsection 208(f) applicable to all funding of planning agencies awarded after June 30, 1975.

On October 16, 1975, the National Association of Regional Councils (NARC) filed suit in the United States District Court for the District of Columbia challenging the Administrator’s interpretation of his funding authority and seeking a declaratory judgment that the $137 million unobligated balance of the contract authority for fiscal years 1973 and 1974 should be made available for 100 percent financing of section 208 planning agencies. The district court entered summary judgment in favor of NARC, reasoning that, but for the EPA’s illegal delay of implementing regulations, the authorizations for fiscal years 1973 and 1974 would have been obligated. The final order of the district court directs that the unobligated balance of the contract authority provided by subsection 208(f) for fiscal years 1973 and 1974 shall remain available until September 30, 1977, and that the amount granted to planning agencies from this fund shall be 100 percent of their reasonable costs.

As a necessary, though not sufficient, condition to affirming the district court’s order, we would have to hold either that the Administrator’s contract authority for fiscal years 1973 and 1974 did not lapse at the end of those years, or that the district court had the power to revive the spending authority which had terminated. In the particular circumstances of this case, we cannot accept either proposition, and therefore we must reverse the district court.

II. BUDGET AUTHORITY OF EPA

Government agencies may only enter into obligations to pay money if they have been granted such authority by Congress.5 Amounts so authorized by Congress are termed collectively “budget authority” and can be subdivided into three conceptually distinct categories — appropriations, contract authority, and borrowing authority.6 Appropriations permit an agency to incur obligations and to make payments on obligations. Contract authority is legislative authorization for an agency to create obligations in advance of an appropriation. It requires a subsequent appropriation or some other source of funds before the obligation incurred may actually be liquidated by the outlay of monies. Borrowing authority permits an agency to spend debt receipts.7

[102]*102Subsection 208(f) of the 1972 FWPCA Amendments granted the Administrator of the EPA contract authority to create obligations upon his approval of grant applications for support of planning agencies. Although the exact amount of an agency’s budget authority may be left indefinite, subsection 208(f) follows the more typical pattern and sets definite limits on the Administrator’s contract authority. It states:

There is authorized to be appropriated to carry out this subsection not to exceed $50,000,000 for the fiscal year ending June 30, 1973, not to exceed $100,000,000 for the fiscal year ending June 30, 1974, and not to exceed $150,000,000 for the fiscal year ending June 30, 1975.

33 U.S.C.

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Bluebook (online)
564 F.2d 583, 184 U.S. App. D.C. 98, 10 ERC 1633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-assn-of-regional-councils-v-costle-cadc-1977.