Louisiana State v. U.S. Army Corps of Engineers

After Hurricane Katrina, Congress directed the Corps to close the Mississippi River-Gulf Outlet (MR-GO) as a federal navigation project and restore the surrounding ecosystem. The Corps sought a cost-sharing arrangement with Louisiana. Louisiana objected and filed suit under the Administrative Procedure Act (APA), 5 U.S.C. 706(2), contending that the Corps’ decision, expressed in two Corps reports to Congress, was arbitrary and capricious and an abuse of discretion because the relevant statutes require the federal government to bear 100 percent of the costs. The district court agreed with Louisiana and rejected a statute of limitations challenge to the suit and concluded that the relevant statutes unambiguously require the Corps to bear all of the costs of deauthorizing the MR-GO. The court bifurcated the limitations issue and found Louisiana’s APA challenge to the closure portion of the deauthorization project timely filed, but dismissed the challenge to the Corps’ decision concerning the ecosystem restoration project because the agency has not taken final action under the APA. On the merits, the court reversed the district court’s judgment that overturned the required cost-sharing between Louisiana and the Corps, which constitutes a reasonable interpretation of ambiguous statutes. View "Louisiana State v. U.S. Army Corps of Engineers" on Justia Law