In the most recent decision of the almost 10 years of litigation on Virginia's prison medical center project, the U.S. Court of Appeals for the Fourth Circuit held on May 8 that the state of Virginia must either comply with the dictates of NEPA or lose federal funds allocated under LEAA's block grant program.¹

Section 102(2)(c) of NEPA requires impact statements to be filed on "major Federal actions significantly affecting the quality of the human environment." The degree of federal involvement in state projects necessary to bring NEPA's action-forcing mechanism into effect has frequently been litigated. As noted by Frederick R. Anderson in NEPA in the Courts, federal block grants and revenue sharing measures were intended by Congress to maximize states' authority to use funds as they saw fit, with minimal federal control and involvement. In the first appellate decision in Ely v. Velde (Ely I), the Fourth Circuit held notwithstanding congressional intention to ensure independence of federally assisted state projects, federal agency administration of block grant funding was sufficient "overall" federal involvement to require compliance with §102(2)(c). That decision indicated that although such federal involvement required LEAA preparation of an impact statement, no duties were imposed directly upon the states.²