## Facts

- Environmental groups and individuals challenged the U.S. Forest Service’s approval of the “East Side Project,” a timber-harvest project in the Allegheny National Forest in Pennsylvania.
- The project covered roughly 8,000 acres and used even-aged management methods, including clearcutting.
- The Forest Service justified the project as improving forest health, addressing tree decline, and regenerating early-successional species.
- A major focus was regeneration of black cherry, a commercially valuable hardwood that the agency also described as ecologically beneficial (including resistance to drought, insects, and pests).
- Plaintiffs alleged the Forest Service selected the harvest methods primarily to increase black cherry timber revenues, contrary to the National Forest Management Act (NFMA) and the applicable Forest Plan.
- The agency prepared project-level environmental documentation and approved the project through the administrative process.
- The district court granted summary judgment for the Forest Service, rejecting plaintiffs’ NFMA/APA claims.
- Plaintiffs appealed.

## Issues

1. Whether the Forest Service’s selection of harvest methods violated NFMA’s prohibition on choosing methods primarily to obtain the greatest dollar return or unit output of timber, and whether the decision was consistent with the governing Forest Plan.
2. Whether the approval was arbitrary and capricious under the Administrative Procedure Act (APA) because the agency allegedly relied on an impermissible profit-maximization rationale or inadequately explained its decision in the administrative record.

## Decision

- The Third Circuit vacated the district court’s judgment in part and remanded for further proceedings.
- The court held that the record and the district court’s analysis did not adequately resolve whether economic gain was the primary reason for the chosen harvest methods.
- The court required a more careful inquiry into the Forest Service’s stated ecological reasons versus record evidence suggesting profit-driven selection.
- The court did not categorically invalidate the project, but directed further NFMA/APA analysis on remand.

## Legal Principles

- NFMA permits consideration of economic factors, but prohibits selecting timber-harvest methods primarily because they provide the greatest dollar return or greatest unit output of timber. (16 U.S.C. § 1604(g)(3)(B))
- Under the APA, agency action must be set aside if arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law; the agency must consider relevant factors and provide a reasoned explanation supported by the record.
- Technical deference to the Forest Service does not extend to decisions that may rest on legally impermissible controlling factors; courts must examine whether statutory limits were actually respected in the agency’s reasoning and documentation.

## Conclusion

The Third Circuit required a more searching review of whether the Forest Service’s timber-harvest methods were chosen primarily for economic return, holding that ambiguous or under-examined record support on that NFMA constraint warrants vacatur in part and remand under APA standards.


Allegheny Def. Project, Inc. v. U.S. Forest Serv., 423 F.3d 215 (3d Cir. 2005)