City of Rochester and Genessee-Finger Lakes Regional Planning Board v. United States Postal Service and Benjamin F. Bailar, United States Postmaster General, 541 F.2d 967, 2d Cir. (1976)
City of Rochester and Genessee-Finger Lakes Regional Planning Board v. United States Postal Service and Benjamin F. Bailar, United States Postmaster General, 541 F.2d 967, 2d Cir. (1976)
City of Rochester and Genessee-Finger Lakes Regional Planning Board v. United States Postal Service and Benjamin F. Bailar, United States Postmaster General, 541 F.2d 967, 2d Cir. (1976)
2d 967
9 ERC 1362, 6 Envtl. L. Rep. 20,723
This appeal challenges the rather surprising Postal Service ruling that the
construction of a $12 million postal facility in the town of Henrietta, New York,
a suburb of Rochester, which construction contemplates the ultimate
abandonment, in whole or in substantial part, of an older large facility in the
city, is not a "major Federal actio(n) significantly affecting the quality of the
human environment" within the meaning of the National Environmental Policy
Act, 42 U.S.C. 4332(2)(C) (NEPA). The appeal is also based on the failure of
the Postal Service, in proceeding with this project, to consult with and consider
the views of local planning authorities as appellants claim the
Intergovernmental Cooperation Act, 42 U.S.C. 4231(b) (ICA),1 requires the
Service to do. The action was filed in the United States District Court for the
Western District of New York by the City of Rochester and the GenesseeFinger Lakes Regional Planning Board, an eight-county planning board which
is the designated clearinghouse for purposes of Office of Management and
Budget Circular A-95.2 The decision of the district court, Harold P. Burke,
Judge, dismissed the complaint on a number of grounds, ruling that appellants
lack standing, that their suit is barred by laches, that the claims of injury as to
the abandonment of the main Post Office are "social" and "economic" rather
than "environmental," that the Postal Service has fully complied with the
requirements of NEPA, and that the Service is exempt from the requirements of
the ICA. Judge Burke found specifically that the preliminary determination of
the Postal Service that the construction of its new "mail facility" in the town of
Henrietta (the HMF) would not significantly affect the quality of the human
environment was not arbitrary, capricious or an abuse of discretion.
2
Since the appellants delayed in instituting suit until the construction project was
well under way,3 we affirm the judgment of the district court insofar as it
refuses to enjoin further work at the Henrietta construction site. In all other
respects, the judgment of the district court must be reversed.
The City's present Main Post Office (MPO) is located on Cumberland Street at
the northern perimeter of the Rochester central business district, and is housed
in a one- and two-story building of approximately 72,800 square feet.
Rochester, a city of approximately 300,000 people, has already spent
considerable sums (much by way of federal grant) to improve the adjacent
central business district, by making certain highway system modifications and
acquiring the old Penn Central Railroad terminal and its land; at least as of the
beginning of 1976, the City was in the midst of preparing a new downtown
development plan.
The Postal Service has determined that the city MPO is inadequate to handle
anticipated mail processing needs. The Service is also of the view that the MPO
has provided substandard working conditions for quite some time. As early as
1968 the Postal Service leased a building in the town of Henrietta,4 some seven
or eight miles from the city, for use as a sectional handling center.
Approximately 300 employees were transferred at that time from the MPO to
the leased Henrietta facility. In 1970, the Rochester Postmaster requested
consideration of a plan to construct a general mail and vehicle maintenance
facility to serve the entire Rochester metropolitan area. Over a four-year period
the Postal Service determined that a new facility would be required and that a
site of no less than 36 acres was necessary. A large portion of this area was to
be used exclusively for "vehicle maintenance" purposes. No site of that size
was available inside the city, and it was finally determined by the Postal
Service, without informing either the City of Rochester or the regional planning
board, that the best available site for the new facility was in the town of
Henrietta.
5I. Standing.
6
The conclusion of the district court that neither the City of Rochester nor the
regional planning board has standing to seek enforcement of NEPA and the
ICA is out of harmony with settled law. Well-reasoned cases have uniformly
held that a municipality has standing to challenge federal agency action
resulting in environmental damage within the city. See, e. g., City of Boston v.
Volpe, 464 F.2d 254 (1st Cir. 1972); Town of Groton v. Laird,353 F.Supp. 344,
348 (D.Conn.1972). Similarly, a regional planning board which is designated
under the ICA as the area-wide clearinghouse for regional planning, see 42
U.S.C. 4231(b), (c), must be considered to have standing to seek review of
federal projects in variance with the regional plan.
Appellees urge, however, that the issue of construction of the new facility at
Henrietta and abandonment of the old in Rochester are "entirely separate and
apart." The Postal Service view is that there are no adverse environmental
effects to the City of Rochester stemming from the construction in Henrietta,
and that only the HMF construction decision is proper for review at this time.5
There being no injury to Rochester or the regional planning board from the
Henrietta construction, it is argued, the appellants lack standing to raise the
NEPA claim regarding that construction. This reasoning, however, is
insufficient. The Postal Service has admitted that "the HMF is designed to
accommodate all mail processing requirements of the metropolitan Rochester
area. To effect this the USPS will transfer the job site of approximately 1400
employees from the (Rochester) MPO approximately seven miles to the HMF."
Thus while construction of the new facility and termination of employment at,
and potential abandonment of, see text accompanying notes 8, 9 and 10 infra,
the old MPO are separable from the standpoint of construction, they are
intimately related, interconnected so to speak, in terms of Postal Service usage.
As will be discussed below, the environmental effects of the employee transfer
may well be substantial, and their primary incident would be in the city of
Rochester itself. Furthermore, the cases in this circuit and elsewhere have
consistently held that NEPA mandates comprehensive consideration of the
effects of all federal actions. 42 U.S.C. 4332(2)(a). To permit
noncomprehensive consideration of a project divisible into smaller parts, each
of which taken alone does not have a significant impact but which taken as a
whole has cumulative significant impact would provide a clear loophole in
NEPA. Scientists Institute for Public Information v. Atomic Energy
10
11
The Postal Service contests the impact of only the latter of these three effects. 8
The Service maintains that it will continue some services at the MPO, and
maintenance of the entire building, even after it transfers the bulk of the
activities and employees from the MPO to the HMF. This position differs from
that previously asserted by Mr. Kenyon, the General Manager of the Eastern
Regional Real Estate Division of the Postal Service, who informed the
appellants that the Postal Service would abandon the downtown building and
attempt to sell it.9 Even accepting, as did the district court, the current position
of the Service that the MPO building will not be abandoned,10 it is apparent that
substantial issues of environmental importance have not been canvassed in the
EIA. This, in combination with the importance of those factors concerning the
environmental impact at the construction site which were discussed in the EIA,
indicate that an Environmental Impact Study is required under 42 U.S.C.
4332(2)(B), and should have been performed prior to initiation of the project.
See, e. g., Maryland-National Capital Park and Planning Commission v. United
States Postal Service, 159 U.S.App.D.C. 158, 487 F.2d 1029 (1973). In our
view, therefore, the Postal Service has failed to comply with NEPA
requirements.
III. ICA.
13
14
This immunity argument has been rejected in the analogous context regarding
the applicability of NEPA to the Postal Service. See Chelsea Neighborhood
Associations v. United States Postal Service, 516 F.2d 378 (2nd Cir. 1975). We
believe the result should be the same here. As Judge Feinberg pointed out in
Chelsea Neighborhood, the Postal Reorganization Act is " managerial" in
orientation. 516 F.2d at 384. NEPA, on the other hand, and, we might add,
ICA, are "policy-oriented." As in the case of NEPA, it is most unlikely that
Congress had the recent, development-planning provisions of the ICA in mind
as one of the "ancient accretions of 'legislative, budgetary, financial, and
personnel policies that . . . (were) outmoded, unnecessary, and inconsistent with
. . . modern management and business practices,' " from which it wanted to
exempt the Postal Service. 516 F.2d at 384, quoting H.R.Rep. No. 91-1104,
91st Cong., 2nd Sess. 2 (1970). The declared purpose of the ICA is to set forth
a policy recognizing the importance of the sound and orderly development of
all areas within the nation, both urban and rural, and to provide "as a matter of
congressional policy, that agencies, to the extent possible, will take into
account all viewpoints national, regional, State and local in the formulation and
administration of (federal and federally assisted) projects." H.R.Rep. No. 1845,
90th Cong., 2nd Sess. (1968), 1968 U.S.Code Cong. & Ad.News, pp. 4226-27.
See also Conservation Society of Southern Vermont, Inc. v. Secretary of
Transportation, supra, 362 F.Supp. at 638. The ICA is a new developmental
policy, passed by the Congress in October, 1968, only three months before the
genesis of the Postal Reorganization Act. Cf. Chelsea Neighborhood, supra,
516 F.2d at 384. The Act simply cannot be characterized as one of the
outmoded managerial statutes which the Postal Service was intended to be
freed from by Section 410. Common sense as well as statutory history supports
this understanding of the ICA; one should suppose, in the abstract, that the
principal aim of the Postal Service being to serve the needs of people spread
over the entire country, cooperation with regional or intergovernmental
planning agencies would be an important objective for it as a responsible
federal instrumentality.12 We conclude, therefore, that the Service must comply
with the ICA requirements, unless we read the ICA as an exercise in
meaningless legislative futility.
16
The Postal Service argues, to the contrary, that it has substantially complied
with the ICA because that Act requires only that local and regional viewpoints
"shall to the extent possible, be fully considered and taken into account in
planning Federal . . . projects." 42 U.S.C. 4231(b) (emphasis added by
appellee). The Service seriously urges that its specific contacts with the City of
Rochester and representatives of several towns constitute compliance "to the
extent possible." Those contacts, however, consisted principally of a trip by
Milford C. Beers, a realty specialist with the Department of Army Corps of
Engineers which was engaged by the Postal Service to perform real estate and
engineering functions under an order by the Office of Management and Budget.
Mr. Beers made a trip to Rochester and a survey of the area by stopping in at
the City's assessor's office and the Town assessor's office and the towns of
Gates, Brighton and Henrietta. The Assistant Postmaster General, Real Estate
and Buildings Department, was also in contact with the Rochester mayor and
county manager. On March 15, 1974, at the request of Rochester city officials
he attended a meeting with the Rochester city manager at which it was
established that there was no site offered by the City which would meet the
Postal Service's 36 acre requirement.
18
But this falls far short of indicating that the Postal Service did anything to
promote the purposes of, or to comply with the language of, the ICA. While the
ICA does not expressly provide that the Postal Service necessarily must confer
with, much less incorporate the views of, local planning agencies regarding its
development decisions, it does require that the local views be "fully
considered" for the purposes of "plan formulation, evaluation, and review." 42
U.S.C. 4231(b). Nothing in the record before us indicates that the Service
gave full consideration to the interests of the local agencies, all of which have
rejected the current development plan. Under the ICA, as in the case of NEPA,
the agency has an affirmative obligation to develop a reviewable record,
including a list of the factors which support its decision to act in disharmony
with local planning objectives, so that a reviewing court can determine whether
The Postal Service's failure to comply with NEPA would ordinarily in and of
itself be sufficient to require preliminary injunctive relief. See Hanly v.
Mitchell (Hanly I), 460 F.2d 640 (2nd Cir.), cert. denied, 409 U.S. 990, 93 S.Ct.
313, 34 L.Ed.2d 256 (1974); Hanly v. Kleindienst (Hanly II), 471 F.2d 823
(2nd Cir. 1972), cert. denied, 412 U.S. 908, 93 S.Ct. 2290, 36 L.Ed.2d 974
(1973). This is true at least where there is imminent and irreparable harm
threatened and the action is likely to have direct, tangible consequences of an
environmental character. See Jones v. District of Columbia Redevelopment
Land Agency, 162 U.S.App.D.C. 366, 499 F.2d 502, 511 (1974), cert. denied,
423 U.S. 937, 96 S.Ct. 299, 46 L.Ed.2d 271 (1975). The record in this case
supports an indication that the threatened injury stemming from construction of
the HMF and relocation of the MPO employees is irreparable in its potential
effects on the physical well-being at least of Rochester, if not of Henrietta.
Accordingly, it would have been proper for the district court to order an
injunction against the construction and transfer decisions, absent laches.
21
The district court, however, ruled that since this suit was not filed by appellants
until January 14, 1976, when construction of the HMF was 18 per cent
completed, see note 3, supra, and since appellants are chargeable with
knowledge of the Service's decision in this matter as of a far earlier date, the
suit should be barred for laches. The view of the district court was that "(t)he
cost of abandoning or altering the proposed project outweigh (sic) any benefits
that might accrue to the general public (from the proposed injunction)." While
laches is a doctrine of equity that is only rarely invoked in environmental cases,
but see East 63rd Street Association v. Coleman, 414 F.Supp. 1318 (S.D.N.Y.),
aff'd by order, 538 F.2d 309 (2nd Cir. 1976), on account of the strong public
interest in effecting compliance with NEPA, Steubing v. Brinegar, 511 F.2d
489, 495 (2nd Cir. 1975), we are reluctantly forced to conclude that the
appellants are barred from enjoining the construction of the new Henrietta
facility.
22
Both the City of Rochester and at least one member of the board of directors of
the planning board knew of the Postal Service plan to relocate the area's major
postal facility outside of Rochester as early as March 1974. The Postal Service
announced in June of 1974 that it had "agreed to purchase" the Henrietta site
Thus, during the delay that occurred prior to suit and after notice of the Postal
Service's intention to proceed with the Henrietta project, construction has
proceeded to a point where it is impractical for economic reasons to enjoin
further development of the Henrietta site. We would surely have the power to
enjoin further construction if it appeared that such a stay, pending preparation
of the required EIS, would best serve the public interest. Steubing v. Brinegar,
supra. But we are not persuaded that the further construction, in and of itself,
will create such an adverse environmental impact, beyond that already incurred
by partial construction, as to override the public interest in averting the
economic waste involving penalties under or renegotiation of the construction
contract entailed from a mid-stream termination of that contract. Compare
Natural Resources Defense Council, Inc. v. United States Nuclear Regulatory
Commission, 539 F.2d 824, 843 (2nd Cir. 1976).
24
V. Relief.
25
26
It remains our view, however, that the construction at the Henrietta site in
conjunction with the transfer of employees to that location has substantial
environmental effects which must be explored by the Postal Service by means
of an environmental impact study. While much of the environmental damage
may be "water over the dam" in the view of the application of laches to the
construction project itself, there remain for further study the effects of the
planned use of the new facility on the Henrietta environment and of the transfer
28
In accordance with the above, it is the judgment of this court that appellee
should be preliminarily enjoined, pending the preparation and filing with the
district court of an environmental impact statement which sufficiently examines
alternatives and complies fully with other NEPA requirements, from the
transfer of mail processing activities or Postal Service employees from the
Rochester Main Post Office to the Henrietta Mail Facility. 14 Since the Postal
Service is evidently committed in a very real sense to the movement of its
facilities and the transfer of its employees to Henrietta, there is danger that an
after-the-fact EIS such as we are ordering could result in pro forma, automatic
reconfirmation of the presently contemplated plan. Our order is intended,
however, to ensure that the agency does more than give the present plan
rubber-stamp approval. The agency must at least take a "hard look" at the
environmental consequences and alternatives, Kleppe v. Sierra Club, --- U.S. ---, 96 S.Ct. 2718, 49 L.Ed.2d --- n.21 (1976); it must not act arbitrarily or
capriciously in its decisionmaking process, Hanly II, supra.
29
Our opinion should aid the Postal Service in its effort to determine how best to
meet the demands of NEPA in evaluating the contemplated removal of facilities
from the central city. The input of the appellants' planning agencies, moreover,
may permit some reconciliation between local goals and federal planning, in an
effort to achieve the most satisfactory solutions to the problems such major
federal action engenders. It is our judgment, then that appellee be, and it hereby
is, preliminarily enjoined from transferring mail processing activities or Postal
Service employees or their positions from the Rochester Main Post Office to
the Henrietta Mail Facility pending compliance with NEPA and the ICA.
30
The district court found that at the time suit was brought (on January 14, 1976),
18 months after the site for the HMF was purchased, the new building, to
consist of 366,000 square feet, was 18 per cent complete and, exclusive of
the.$1.6 million cost of the site, about $8 million had been spent
The rent for the Henrietta "Sectional Center Facility," which employs 400
people and is located one mile from the HMF, is $127,893.69. This amount
could be saved if the facility were moved to the HMF building now under
construction
It should be noted that while Henrietta itself ultimately objected to the Postal
Service plans, it is not a party to this litigation
Kleppe v. Sierra Club, --- U.S. ----, 96 S.Ct. 2718, 49 L.Ed.2d --- (1976) (EIS
on use of federal coal reserves in Northern Great Plains Region not required
where there is no proposal for a regional development plan), is not to the
contrary. The Court there stated:
We begin by stating our general agreement with respondents' basic premise that
102(2)(C) may require a comprehensive impact statement in certain situations
where several proposed actions are pending at the same time. . . . A
comprehensive impact statement may be necessary in some cases for an agency
to meet this duty. Thus, when several proposals for coal-related actions that will
have cumulative or synergistic environmental impact upon a region are pending
concurrently before an agency, their environmental consequences must be
considered together. Only through comprehensive consideration of pending
proposals can the agency evaluate different courses of action.
Id. at ----, 96 S.Ct. at 2730.
The environmental factors mentioned in the EIA all pertain to the effects of the
construction of the HMF on the Henrietta environment. They include (1)
alteration of 36 acres of land consisting of "trees, some brush and shrub growth,
and weed or grass vegetation" into a paved parking area of 14.3 acres and a
building and appurtenances covering 8.9 acres; (2) inclusion of the 36-acre
project into an area which, though industrially zoned, "is suburban in nature
(with) the remaining open green spaces add(ing) to this effect"; (3) addition of
thousands of car and truck transfers per day along a Henrietta street where
noise levels have already reached 90 decibels, a level at which "prolonged
exposure . . . can result in hearing damage"; (4) additional local traffic from
operation and construction of the facility which "could cause degradation of
ambient air quality"; (5) gasoline and oil drippings from the parking areas and
maintenance facilities which may be washed into adjacent creek; and (6) the
irrevocable destruction of "the habitat of the small animals the site now
supports." The EIA, after superficial discussion of these adverse effects, merely
concludes that none will be "significant."
On September 10, 1975, Mr. Kenyon wrote Margaret Ely, associate planner
with the Genessee-Finger Lakes Regional Planning Board, in part as follows:
(d) In answering your question relative to the proposed disposition of the
existing Postal facility, one must also consider that this is likely the real
concern of the downtown area and perhaps the Chamber of Commerce.
Whenever the Postal Service locates the Mail Processing Facility on the
periphery of a community of the size of Rochester, it is always conscious of the
fact that the downtown area must continue to have the same financial and
customer services that it has been accustomed to. A facility adequate to serve
the downtown area will be available to the community. It will be an improved
facility that will offer better service to the downtown community.
The existing Postal-owned building most certainly will be surplus to the needs
of the Service and as such will be offered for disposition under a standard
procedure. Federal Government Agencies are solicited to determine whether or
not they have a need. This is followed by an inquiry to the State, County, and
local Government. If all have no interest in the building, it is then placed on the
market for public bid.
10
11
39 U.S.C. 410(a) provides, with exceptions not here pertinent, that "no
Federal law dealing with public or Federal contracts, property, works, officers,
employees, budgets, or funds . . . shall apply to the exercise of the powers of
the Postal Service."
12
The Postal Service, to some degree, has recognized its responsibility in this
area. While its regulations incorrectly state that NEPA and other environmental
acts do not apply to it, 39 C.F.R. 775.1(b) (1975); see Chelsea Neighborhood
Associations v. United States Postal Service, 516 F.2d 378 (2nd Cir. 1975), the
regulations do go on to say that
it is the policy of the Postal Service to comply voluntarily with such statutes,
orders and regulations (including all State and local requirements made
applicable to Federal agencies by virtue of, or pursuant to, Federal statutes) to
the extent practical and feasible consistent with the public interest and
fulfillment of the primary mission of the Postal Service.
39
C.F.R. 775.1(b) (1975). The regulations also treat consultation with the
regional clearinghouses as "advisable." Id. 775.6(a)
13
14
This order will not deprive the service of all economic use of the HMF pending
completion of the EIS because it does not prevent transfer to the HMF of the
400 employees presently located in rented space at the Henrietta sectional
handling center, note 4 supra. No one has objected to this transfer or suggested
that it is a major federal action with substantial environmental effects, 42
U.S.C. 4332(2)(c)