BUDD-FALEN

LAW OFFICES, P.C.

Cheyenne, Wyoming 82003

June 9, 2003

Michael Coffman

1229 Broadway, Suite 313

Bangor, ME 04401

            Re:       State Agency Compliance with National Environmental Policy Act

Dear Michael:

            This letter responds to your request for information regarding stage agency compliance with the National Environmental Policy Act (“NEPA”).  In short, the courts have determined that state and local agencies and private individuals must comply with the NEPA if there exists a “federal nexus” between a federal agency and a state or local agency and private individual.  Generally a federal nexus is present when (1) a  federal permit or approval is required or (2) a federal agency provides federal financial assistance for a specific project.  See e.g. Historic Preservation Guild v. Burnley, 896 F.2d 985 (5^th Cir. 1989); Save Barton Creek Assn. v. Federal Highway Administration, 950 F.2d 1129 (5^th Cir. 1992); Ramsey v. Kantor, 96 F.3d 434 (9^th Cir. 1996).  Note however that a state’s receipt of a federal block grant does not necessarily require the state to comply with NEPA unless it can be shown that part of that block grant funded a specific project.  Citizen’s for Better St. Clair County v. James, 648 F.2d 246 (5^th Cir. 1981).

            Please let me know if you have any additional questions.

                                                                        Sincerely,

                                                                        Karen Budd-Falen

                                                                        BUDD-FALEN LAW OFFICES, P.C.

KBF:lmk

300 East 18^th Street  •  P.O. 346  •  Cheyenne, Wyoming 82003- 0346  •  Phone 307-632-5105  •  Fax 307-637-3891  •  main@buddfalen.com