STENGEL, District Judge.
Plaintiffs Maiden Creek Associates, L.P. and the Board of Supervisors of Maidencreek Township bring this action against the United States Department of Transportation (USDOT), Federal Highway Administration (FHWA), Pennsylvania Department of Transportation (PADOT), and their agents. They seek to enjoin proposed changes to Pennsylvania State Road Route 222 because the defendants allegedly did not follow appropriate procedures under the National Environmental Policy Act (NEPA) and the Administrative Procedures Act (APA). The defendants have moved to dismiss based on a lack of standing. The plaintiffs moved for leave to amend their complaint to add facts that may cure any deficiencies. For the reasons stated below, I will grant the defendants' motion to dismiss and deny the plaintiffs leave to amend their complaint.
Route 222 is a state highway that runs through Berks County, connecting Allentown, Pennsylvania to Lancaster, Pennsylvania. The defendants are all involved with the Route 222 Corridor Improvement Project. The Project plans to make several changes to Route 222: 1) widening the roadway to include two lanes in each direction and a center turning lane; 2) improving
PADOT plans to use about $14.5 million dollars in federal funds to complete the Project. The FHWA is an agency of the USDOT and is the lead agency on the Project. The PADOT is serving as the FHWA's delegated agent. FHWA is funding the Project while PADOT is constructing it.
Plaintiff Maiden Creek Associates, L.P. (MCA) is a Pennsylvania limited partnership. MCA owns approximately 85 acres of commercially-zoned land located adjacent to Route 222, between Tamarack Boulevard and Evansville Road in Maidencreek Township, Berks County. MCA has proposed developing that parcel into a commercial shopping center. The Board of Supervisors of Maidencreek Township (Board) is the governing body for Maidencreek Township, a second class township of the Commonwealth of Pennsylvania in Berks County, Pennsylvania.
MCA's property is located directly across from Schaeffer Road on Route 222. As part of its shopping center plans, MCA has proposed adding a traffic signal to the intersection of Route 222 and Schaeffer Road. The Route 222 Project will require the defendants to take part of MCA's property in order to widen the road and construct the Schaeffer roundabout. MCA had several meetings with PADOT and provided its officials with information about its proposed shopping center and traffic counts. Both MCA and the Board have voiced their disapproval of the Project's proposed design.
NEPA requires federal agencies to consider the environmental impacts of any major federal action.
An EIS is a detailed written statement concerning the environmental impacts of a proposed action which must consider alternatives that would result in less detrimental environmental effects. An EA is a concise public document which provides evidence and analysis for whether an EIS is needed. Categorical Exclusion projects "do not individually or cumulatively have a significant effect on the human environment...."
The USDOT has promulgated rules about when its projects require a certain level of review under NEPA. See 23 C.F.R. § 771.115. For an FWHA project to be considered a Categorical Exclusion, it cannot: 1) "induce significant impacts to planned growth or land use for the area;" 2) "require the relocation of significant numbers of people;" 3) "have a significant impact on any natural, cultural, recreational, historic or other resource;" 4) "involve significant air, noise, or water quality impacts;" 5) "have significant impacts on travel patterns;" or 6) "either individually or cumulatively, have any significant environmental impacts." 23 C.F.R. § 771.117(a).
On August 6, 2014, FHWA and PADOT approved a Categorical Exclusion (CE) for the Project. Because the CE was approved, the defendants have not conducted an EIS. They will not be required to conduct further environmental review of the Project under NEPA before it is funded and constructed. Public meetings about the Project have been held. MCA's counsel has been involved and expressed comment as part of these meetings. See id. at ¶ 52.
On January 20, 2015, the plaintiffs filed this action against the USDOT, Secretory of the USDOT Anthony Foxx, the FHWA, Administrator of the FHWA Gregory Nadeau, the PADOT, and the Secretary of the PADOT Barry Schoch.
The defendants answered the complaint. They then moved to dismiss the complaint under Rule 12(b)(1), claiming that the plaintiffs lack standing.
Article III of the United States Constitution limits the scope of this court's jurisdiction to "cases" and "controversies." U.S. Const. art. III, § 2. In order for a court to hear a "case" or "controversy," the party asserting a claim must have "standing" or the right to bring the action. See Constitution Party of Pennsylvania v. Aichele, 757 F.3d 347, 356-57 (3d Cir.2014)(citing Lujan v. Defenders of Wildlife, 504 U.S. 555, 560, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992)). "A motion to dismiss for want of standing is ... properly brought pursuant to Rule 12(b)(1), because standing is a jurisdictional matter." Constitution Party, 757 F.3d at 357 (quoting Ballentine v. United States, 486 F.3d 806, 810 (3d Cir.2007)). The allegations contained in the plaintiffs' complaint must be accepted as true and all reasonable inferences must be viewed in the light most favorable to the plaintiffs. See id. at 358.
The plaintiff has the burden to establish jurisdiction. Mortensen v. First Federal Sav. and Loan Ass'n, 549 F.2d 884, 891 (3d Cir.1977). To establish standing, a plaintiff must establish three elements: 1) "injury in fact — an invasion of a legally protected interest which is (a) concrete and particularized, and (b) actual or imminent, not conjectural or hypothetical," 2) "a causal connection between the injury and the conduct complained of — the injury has to be fairly traceable to the challenged action of the defendant, and not the result of the independent action of some third party not before the court," and 3) "that the injury will [likely] be redressed by a favorable decision." Lujan v. Defenders of Wildlife, 504 U.S. 555, 560-61, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992).
Plaintiffs asserting jurisdiction based on a violation of the APA also have the burden of showing prudential standing. See Bennett v. Spear, 520 U.S. 154, 161-62, 117 S.Ct. 1154, 137 L.Ed.2d 281 (1997). The plaintiff must demonstrate that its complaint falls within the "zone of interests"
MCA alleges the following harm:
The Board alleges the following injuries:
The Board also alleges that commercial development is vital to the economic well-being of the Township and its residents. It implies that any hindrance of this commercial development would affect jobs, tax revenues, and businesses in the Township. Id. at ¶¶ 40-44.
Several of the allegations made by MCA and the Board involve injuries to third parties. "[T]he plaintiff generally must assert his own legal rights and interests, and cannot rest his claim to relief on the legal rights or interests of third parties." Warth v. Seldin, 422 U.S. 490, 499-500, 95 S.Ct. 2197, 45 L.Ed.2d 343 (1975). See also Lujan v. Defenders of Wildlife, 504 U.S. 555, 578, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992). An association or organization may have standing to bring suit on behalf or others in a representative capacity if three elements are met: 1) group members would otherwise have standing to sue as individuals, 2) the interests at stake are germane to the group's purpose, and 3) neither the claim made nor the relief requested requires the individual members to participate in the lawsuit. Blunt v. Lower Merion School Dist., 767 F.3d 247, 279 (3d Cir.2014)(citing Hunt v. Wash. State Apple Adver. Comm'n, 432 U.S. 333, 343, 97 S.Ct. 2434, 53 L.Ed.2d 383 (1977)).
MCA alleges that the Project as planned will create unsafe conditions for vehicles, travelers along Route 222, and hypothetical consumers of MCA's proposed shopping center. MCA has offered no evidence that that it has standing in a representative capacity. It cannot allege harm on behalf of these other individuals.
The Board also makes similar allegations regarding the "safety of motorists, bicycles, horse and buggies and pedestrians traveling within the Route 222 Corridor" and about the economic well-being of residents. The Board represents the Township and its citizens. In this sense, the case for representative standing can more easily be made than for MCA. However, the Board does not offer information about how Township residents would have standing to sue (i.e. what particularized injuries they have or will experience), how this action is "germane" to its purpose, and why its individual members would not be required to take part in the lawsuit.
MCA also makes allegations of personalized harm. Specifically, MCA alleges that the Project will require condemnation to part of its property and will prevent it from developing the property as it had planned. I find that these allegations are enough to establish constitutional standing.
The Board also makes similar allegations. It claims that the Project will prevent it from carrying out its economic plans for the Township. These allegations are enough to establish constitutional standing for the Board.
Even if the plaintiffs can show constitutional standing, the defendants argue that the plaintiffs cannot establish they have prudential standing because the plaintiffs do not allege environmental injuries. Instead, their alleged harm centers on economic concerns.
"NEPA addresses environmental effects of federal actions." Metropolitan Edison Co. v. People Against Nuclear Energy, 460 U.S. 766, 778, 103 S.Ct. 1556, 75 L.Ed.2d 534 (1983). "The purpose of NEPA is to protect the environment, not the economic interests of those adversely affected by agency decisions." Nevada Land Action Ass'n v. U.S. Forest Service, 8 F.3d 713 (1993) (citation omitted). "To establish an injury-in-fact from failure to perform a NEPA analysis, a litigant must show: 1) that in making its decision without following the NEPA's procedures, the agency created an increased risk of actual, threatened or imminent environmental harm; and 2) that this increased risk of environmental harm injures its concrete interest." Comm. to Save Rio Hondo v. Lucero, 102 F.3d 445, 449 (10th Cir.1996). See also Wyoming v. U.S. Dept. of the Interior, 674 F.3d 1220, 1237 (10th Cir.2012); Hartz Mountain Industries, Inc. v. Polo, No. Civ.A. 05-2530(JAP), 2005 WL 2807355, at *3 (D.N.J. Oct. 26, 2005).
As the Supreme Court explained in Metropolitan Edison Co. v. People Against Nuclear Energy, protection of human health and welfare was not the primary focus of NEPA. 460 U.S. 766, 773, 103 S.Ct. 1556, 75 L.Ed.2d 534 (1983). "[A]lthough NEPA states its goals in sweeping terms of human health and welfare, these goals are ends that Congress has chosen to pursue by means of protecting the physical environment." Id. (emphasis in original). The legislative history of NEPA shows that the types of harm it is intended to prevent are "irreparable damage to the air, land and water." Id.
The Third Circuit has not addressed the issue of whether an economic injury alone is within NEPA's zone of interests. Courts in this Circuit are split on the issue. See Lake Erie Alliance for Protection of Coastal Corridor, et al., v. United States Army Corps of Engineers, et al., 486 F.Supp. 707 (W.D.Pa.1980)(finding that secondary economic effects of a project
Other Circuit courts have consistently denied standing under NEPA based solely on a threat of economic injury from federal agency actions. See Churchill Truck Lines, Inc. v. U.S., 533 F.2d 411, 416 (8th Cir.1976)("Petitioners, whose sole motivation in this case was their own economic self-interest and welfare, are singularly inappropriate parties to be entrusted with the responsibility of asserting the public's environmental interest in proceedings concerning the issuance of operating authority to motor carriers. Petitioners do not allege any environmental injury to themselves. Their interest in their economic well-being vis-a-vis their competitors is clearly not within the zone of interests to be protected by the National Environmental Policy Act."); Western Radio Services Co., Inc. v. Espy, 79 F.3d 896, 902-03 (9th Cir.1996)("Western now attempts to characterize the alleged interference as an `environmental impact,' yet Oberdorfer admitted that Western's sole complaint was alleged interference, which we have held is purely economic."); Ashley Creek Phosphate Co. v. Norton, 420 F.3d 934, 945 (9th Cir.2005)("In light of the purpose of § 102(2)(C) — protection of the environment — and the specific statutory requirements for the content of an EIS, we hold that a purely economic injury that is not intertwined with an environmental interest does not fall within § 102's zone of interests."); Town of Stratford, Conn. v. FAA, 285 F.3d 84, 88-89 (D.C.Cir.2002)("But we have squarely held that a NEPA claim may not be raised by a party with no claimed or apparent environmental interest.... It cannot be used as a handy stick by a party with no interest in protecting against an environmental injury to attack a defendant.") (citation omitted).
In Borough of Carlstadt v. U.S. Army Corps of Engineers, No. Civ.A. 05-2771(JAP), 2006 WL 305314, at *6 (D.N.J. Feb. 8, 2006), the Borough of Carlstadt brought suit against the Army Corps of Engineers for alleged NEPA violations related to the redevelopment of the Continental Airlines Arena in the New Jersey Meadowlands complex. Id. at *1. The court found that the plaintiff's alleged injuries — anticipated loss of tax revenue or increased expenditures — did not fall within NEPA's zone of interest. Id. at *6. "Because Plaintiff asserts purely economic injuries, Plaintiff does not have standing to challenge the Army Corps's action under NEPA." Id.
I find the reasoning in these cases to be persuasive. NEPA was enacted to address environmental concerns. It was not meant to address the economic consequences of federal actions. The plaintiffs' allegations of personal injury cannot confer prudential standing because they assert economic injuries, not environmental ones. These injuries are not within NEPA's zone of interests.
The plaintiffs argue that harm under NEPA to the "human environment" can include economic, aesthetic, health, and safety injuries. While these injuries may help establish standing under NEPA, they alone cannot require the preparation of an EIS, the ultimate relief which the plaintiffs seek. See 40 C.F.R. § 1508.14 ("Human environment shall be interpreted comprehensively to include the natural and physical environment and the relationship of people with that environment.... This means that economic or social effects are not intended by themselves to require preparation of an environmental impact statement."). See also Town of Stratford, Conn. v. FAA, 285 F.3d 84, 88-89 (D.C.Cir.2002); Taubman Realty Group Ltd. Partnership v. Mineta, 320 F.3d 475, 481 (4th Cir.2003). This argument does not help the plaintiffs.
The plaintiffs also argue that the Third Circuit's decision in Society Hill Towers Owners' Ass'n v. Rendell, 210 F.3d 168 (3d Cir.2000), warrants a finding of standing.
The plaintiffs' injuries in this case are distinguishable in two respects: 1) they are not the residents themselves who potentially may be subject to negative effects in their environment, and 2) they are not trying to preserve the historic character or ambiance of the Route 222 Corridor. In fact, their goals are to develop the area and make it more commercial. Even if the plaintiffs were trying to preserve the "character" and "ambiance" of the Route 222 Corridor, they would be unable to establish standing because they would not be the ones whose recreational use or enjoyment of the environment would be impaired. MCA is a commercial entity, which by its very nature can't "enjoy" the aesthetics of its surroundings. See Rock Creek Pack Station, Inc. v. Blackwell, 344 F.Supp.2d 192, 205 (D.D.C.2004)("The plaintiffs do not provide, nor can this Court find, authority for the proposition that a commercial entity itself can enjoy the recreational use and aesthetic enjoyment of the environment. Consequently, such a commercial entity cannot establish standing under a recreational use and aesthetic enjoyment of the environment rationale."). The Board as individuals may have their enjoyment impaired, but this is not what they are asserting. Instead, their alleged injuries involve economic concerns or concerns about the safety and well-being of third parties. This is not enough to establish standing. See Society Hill Towers, 210 F.3d at 177 (explaining that one of the requirements of prudential standing is that "the plaintiff generally must assert his own legal rights and interests, and cannot rest his claim to relief on the legal rights or interests of third parties").
In the alternative, the plaintiffs have moved for leave to file an amended complaint with additional allegations of injuries. The plaintiffs claim these new allegations stem from information discovered after their initial complaint was filed.
In addition to the allegations already made, the amended complaint would also
Beyond what the Board has already alleged, they also assert that the Project:
Federal Rule of Civil Procedure 15 provides that courts "should freely give leave" to amend a pleading "when justice so requires." FED. R. CIV. P. 15(a)(2). In considering when leave to amend should be granted, a court must consider: 1) circumstances such as undue delay, bad faith or dilatory motive, 2) whether there would be undue prejudice to the opposing party, or 3) whether the amendment would be futile. Jablonski v. Pan Am. World Airways, Inc., 863 F.2d 289, 292 (3d Cir.1988)(citing Foman v. Davis, 371 U.S. 178, 83 S.Ct. 227, 9 L.Ed.2d 222 (1962)).
Delay is undue where a plaintiff attempts to replead facts which could earlier have been pleaded. See Cureton v. Nat'l Collegiate Athletic Ass'n, 252 F.3d 267, 273 (3d Cir.2001) (citing Rolo v. City Investing Co. Liquidating Trust, 155 F.3d 644, 654-55 (3d Cir.1998)). "A finding of dilatory motive is justified where the plaintiff acts `in an effort to prolong litigation.'" Breyer v. Meissner, 23 F.Supp.2d 540, 542 (E.D.Pa.1998). Such efforts are apparent when the motion attempts to plead additional information that was previously available, and the plaintiff fails to provide an explanation as to why the information was not included in the original complaint. See id. at 543 (citing Scattergood v. Perelman, 945 F.2d 618, 627 (3d Cir.1991)). Amendment of the complaint is futile if the amendment will not cure the deficiency in the original complaint or if the amended complaint cannot withstand a renewed motion to dismiss. Jablonski, 863 F.2d at 292.
The defendants argue that the plaintiffs' should not be permitted to amend their complaint because amendment would be futile.
At issue in this case is the plaintiffs' disagreement with the defendants' proposed plans for roundabouts instead of traffic signals along Route 222. Unfortunately, NEPA was not intended to resolve these sorts of design-based disputes. The plaintiffs' claims are more properly addressed in the context of condemnation or other non-NEPA actions.
For the reasons explained above, I will grant the defendants' motion to dismiss for lack of standing and deny the plaintiffs' motion for leave to amend their complaint.
An appropriate Order follows.
The parties do not address whether the challenge is facial or factual. Though the motion was filed after the defendants answered, the defendants do not rely on outstanding facts to contradict those alleged in the complaint. The defendants themselves cite the facial standard of review (i.e. that all factual allegations should be taken as true and reasonable inference drawn in the light most favorable to the plaintiffs).
While I will not go so far as saying that this information points to a dilatory motive on the part of the plaintiffs, it does raise a specter of impropriety. "The N.E.P.A. simply was not meant to be used as a device whereby plaintiffs with strictly economic interests would be allowed to thwart governmental activity under the guise of environmental interest." Presidio Bridge Co. v. Secretary of State, 486 F.Supp. 288, 294 (W.D.Tex.1978)(quoting Hiatt Grain & Feed, Inc. v. Bergland, 446 F.Supp. 457, 487 (D.Kan.1978))(quotation marks omitted). See also Gunpowder Riverkeeper v. Federal Energy Regulatory Com'n, 807 F.3d 267, 274, No. 14-1062, 2015 WL 4450952, at *5 (D.D.C.2015)("Although the affidavits of Gunpowder's members contain some assertions of injury that could be construed as environmental, see, e.g., Affidavit of SallyAnn & Michael Mickel, (stating affiants `feel the aesthetic, emotional, and physical loss of our trees'), the petitioner itself does not offer them in that spirit ...").