Indian River County v. Department of Transportation, No. 19-5012 (D.C. Cir. 2019)Annotate this Case
The County and other parties filed a complaint in the district court claiming that DOT exceeded its authority under 26 U.S.C. 142(m)(1)(A) when it allocated $1.15 billion in Private Activity Bond (PABs) to fund Phase II of the AAF Project. The complaint also alleged that the allocation violated 26 U.S.C. 147(f), and challenged the adequacy of the Environmental Impact Statement (EIS) prepared by the FRA under the National Environmental Policy Act (NEPA).
The DC Circuit affirmed the district court's judgment, holding that the County's interest were within the zone of interests protected by section 142 and thus the complaint raised claims that were cognizable under the Administrative Procedure Act (APA). However, the court held that DOT permissibly and reasonably determined that the Project qualified for tax-exempt PAB financing under section 142(m), and that the EIS for the Project did not violate NEPA.